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| Legal proceedings | ||||||||||||
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| Item 17: | |||||||||||||||||
| Item 18: | F- | ||||||||||||||||
| Item 19 | E- | ||||||||||||||||
5
PRESENTATION OF INFORMATION
AngloGold Ashanti Limited
In this annual report on Form 20-F, unless the context otherwise requires, references to AngloGold, AngloGold Ashanti, AGA, the company, the Company, we, us, our, the group and the groupGroup are references to AngloGold Ashanti Limited including, as appropriate, subsidiaries and associate companies of AngloGold Ashanti Limited.
IFRS financial statements
As a company incorporated in the Republic of South Africa, AngloGold Ashanti prepares annual audited consolidated financial statements and unaudited consolidated half-year financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) in the English language.. These financial statements are distributed to shareholders and are submitted to the JSE Limited (JSE), as well as the New York, Australian and Ghana stock exchanges.
Currency
AngloGold Ashanti presents its consolidated financial statements in United States dollars.
In this annual report, references to rands,rand, ZAR andor R are to the lawful currency of the Republic of South Africa, references to US dollars, dollar, dollar, USD, US$ or $ are to the lawful currency of the United States, references to € and or Euro are to the lawful currency of the European Union, references to ARS andor Argentinean peso are to the lawful currency of Argentina, references to AUD, Australian dollars anddollar or A$ are to the lawful currency of Australia, references to BRL or Brazilian real are to the lawful currency of Brazil, references to TshTZS or Tanzanian shilling are to the lawful currency of the United Republic of Tanzania, and references to GHC,Ghanaian cedi, GHS, cedi or Gh¢ are to the lawful currency of Ghana.Ghana, references to CDF or Congolese franc are to the lawful currency of the Democratic Republic of the Congo, references to GBP, British pounds or £ are to the lawful currency of the United Kingdom, references to Canadian dollar, CAD or C$ are to the lawful currency of Canada and references to Colombian peso or COP are to the lawful currency of Colombia.
Non-GAAP financial measures
In this annual report on Form 20-F, AngloGold Ashanti presents the financial items “total cash costs”costs net of by-product revenue”, “total cash costs per ounce”, “all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce” and “all-in costs“average gold price received per ounce”, which are not IFRS measures. An investor should not consider these items in isolation or as alternatives to cost of sales, profit/(loss) applicable to equity shareholders, profit/(loss) before taxation, cash flows from operating activities or any other measure of financial performance presented in accordance with IFRS.IFRS or as an indicator of the Company's performance.
While the Gold Institute has provided definitions for the calculation of total cash costs net of by-product revenue, and during June 2013, the World Gold Council (WGC) published a Guidance Note (which was updated in November 2018) on “all-in sustaining costs” and “all-in costs” metrics, the calculation of total cash costs net of by-product revenue, total cash costs per ounce, all-in sustaining costs, all-in sustaining costs per ounce, all-in costs and all-in costs per ounce may vary significantly among gold mining companies, and by themselves do not necessarily provide a basis for comparison with other gold mining companies. See “—Glossary of selected terms—Financial terms—Total cash costs net of by-product revenue”, “—Glossary of selected terms–terms—Financial terms–Total cash costs”, “ —Glossary of selected terms–Financial terms–terms—All-in sustaining costs” and “—Glossary of selected terms–terms—Financial terms–terms—All-in costs”. Nevertheless, AngloGold Ashanti believes that total cash costs net of by-product revenue, all-in sustaining costs and all-in costs in total and per ounce as well as “average gold price received per ounce” are useful indicators to investors and management as they provide:
•an indication of profitability, efficiency and cash flows;
•the trend in costs as the mining operations mature over time on a consistent basis; and
•an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti group and at other gold mining companies.
Management prepares its internal management reporting documentation, for use and decision making by the Chief Operating Decision Maker, on an attributable basis. The key metrics are based on the attributable ounces, gold income, total cash costs net of by-product revenue, all-in costs and all-in sustaining costs from each operation and as a consequence includes our share of the total cash costs net of by-product revenue, all-in costs and all-in sustaining costs of our joint ventures that are accounted for on the equity method. In a capital intensive industry, this basis allows management to make operating and resource allocation decisions on a comparable basis between mining operations irrespective of whether they are consolidated or accounted for under the equity method. This basis of calculating the metrics, where costs should be reported on the same basis as sales (i.e., if sales are reported on an attributable basis, then costs should be reported on an attributable basis), is also consistent with the World Gold Council’s Guidance Note on Non-GAAP Metrics - Metrics—All-in Sustaining and All-In Costs.Costs.
Although we have shareholder rights and board representation commensurate with our ownership interests in our equity accountedequity-accounted joint ventures and review the underlying operating results including total cash costs net of by-product revenue, all-in costs and all-in sustaining costs with them at each reporting period, we do not have direct control over their operations or resulting revenue and expenses, nor do we have a proportionate legal interest in each financial statement line item. Our use of
6
total cash costs net of by-product revenue, all-in costs and all-in sustaining costs on an attributable basis, is not intended to imply that we have any such control or proportionate legal interest, but rather to reflect the non-GAAP measures on a basis consistent with our internal and external segmental reporting.
A reconciliation of both cost of sales and total cash costs as included in the company’sCompany’s audited financial statements to total“all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce”, “total cash costs all-in sustainingnet of by-product revenue” and “total cash costs and all-in costsper ounce” for each of the three years in the period ended 31 December 2015, 2016 and 20172022 is presented herein. See “Item 5:“Item 5A: Operating Results—Non-GAAP analysis”.
DiscontinuedOperations
On 1 October 2020, Harmony Gold Mining Company Limited ("Harmony") took effective control of AngloGold Ashanti’s remaining South African producing assets and Financial Reviewrelated liabilities. The South African asset sale was assessed as a major geographical area of operations and Prospects—Total all-in sustaining costs, all-in costspart of a single co-ordinated plan to dispose of a major geographical area of operations. Accordingly, AngloGold Ashanti’s remaining South African producing assets and total cash costs”.related liabilities were recorded as discontinued operations for the year ended and as at 31 December 2020. In addition, AngloGold Ashanti sold its interests in the Morila and Sadiola gold mines in Mali in November and December 2020, respectively. None of AngloGold Ashanti’s Malian assets were recorded as discontinued operations.
Shares and shareholders
In this annual report on Form 20-F, references to ordinary shares, ordinary shareholders, equity shareholders and shareholders/members, should be read as common stock, common stockholders and stockholders, respectively, and vice versa.
7
CERTAIN FORWARD-LOOKING STATEMENTS
Certain statements contained in this document,annual report on Form 20-F, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cash costs, all-in sustaining costs, all-in costs, cost savings and other operating results, return on equity, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and the completion of acquisitions, dispositions or joint venture transactions, AngloGold Ashanti’s liquidity and capital resources and capital expenditures, the consequences of the COVID-19 pandemic and the outcome and consequenceconsequences of any potential or pending litigation or regulatory proceedings or environmental, health and safety issues, are forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition.
These forward-looking statements or forecasts involve known and unknown risks, uncertainties and other factors that may cause AngloGold Ashanti’s actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied in these forward-looking statements. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements and forecasts are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic, social, and political and market conditions, including related to inflation or international conflicts, the success of business and operating initiatives, changes in the regulatory environment and other government actions, including environmental approvals, fluctuations in gold prices and exchange rates, the outcome of pending or future litigation proceedings, any supply chain disruptions, any public health crises, pandemics or epidemics (including the COVID-19 pandemic), and other business and operational risk managementrisks and other factors, as described in “Itemincluding mining accidents. For a discussion of such risk factors, refer to “Item 3D: Risk factors”Factors” and elsewhere in this annual report. These factors are not necessarily all of the important factors that could cause AngloGold Ashanti’s actual results to differ materially from those expressed in any forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Consequently, readers are cautioned not to place undue reliance on forward-looking statements.
AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this annual report on Form 20-F or to reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
8
GLOSSARY OF SELECTED TERMS
All-in costs: All-in costs are all-in sustaining costs including additional non-sustaining costs which reflect the varying costs of producing gold over the life-cycle of a mine. Non-sustaining costs are those costs incurred at new operations and costs related to ‘major projects’ at existing operations where these projects will materially increase production. All-in costs per ounce is arrived at by dividing the dollar value of the sum of these cost metrics, by the ounces of gold sold. | ||
All-in sustaining | ||
Average gold price received per ounce: The attributable gold income (price received), divided by attributable ounces of gold sold. | ||
Average number of employees: The monthly average number of production and non-production employees and contractors employed during the year, where contractors are defined as individuals who have entered into a fixed-term contract of employment with a group company or subsidiary. Employee numbers of joint ventures represent the | ||
Capital | ||
Effective tax rate: Current and deferred taxation charge for the year as a percentage of profit before taxation. | ||
Market spot gold price: The price of gold traded at any given moment on the Over-The-Counter (OTC) wholesale market of which the transaction will be settled in two business days’ time. | ||
Non-foreign operation: An entity with a functional currency, the same as the parent company (ZAR), which differs from the Group presentation currency (USD). | ||
Non-sustaining capital, | ||
Ounces of gold sold: The attributable number of gold ounces sold by the Group. | ||
Price received $/oz: The attributable gold income including realised non-hedge derivatives divided by attributable ounces of gold sold. | ||
Rated bonds: The 2028 notes, the 2030 notes and the 2040 notes. | ||
Region: Defines the operational management divisions within AngloGold Ashanti Limited, namely | ||
Related party:Parties are considered related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if such parties are under common control. | ||
Significant influence: The ability, directly or indirectly, to participate in, but not exercise control over, the financial and operating policy decision of an entity so as to obtain economic benefit from its activities. | ||
Stay-in-business | ||
Strate: The licensed Central Securities Depository (CSD) for the electronic settlement of financial instruments in South Africa. | ||
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Sustaining capital or total sustaining capital (expenditure): Capital expenditure incurred to sustain and maintain existing assets at their current productive capacity in order to achieve constant planned levels of productive output. | ||
Weighted average number of ordinary shares: The number of ordinary shares in issue at the beginning of the year, increased by shares issued during the year, weighted on a time basis for the period during which they have participated in the income of the | ||
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Currencies
| $, US$, USD, US | United States | |||||
| ARS | or Argentinean peso | Argentinean peso | ||||
| A$, AUD or Australian | Australian | |||||
| BRL | or Brazilian real | Brazilian real | ||||
| £, GBP or British pound | British pound | |||||
| C$, CAD or Canadian dollar | Canadian dollar | |||||
| COP or Colombian peso | Colombian peso | |||||
| CDF or Congolese franc | Congolese franc | |||||
| € or Euro | European | |||||
| Ghanaian cedi | ||||||
| Tanzanian | ||||||
| ZAR, R, | South African | South African rand | ||||
11
Mining terms
All injury frequency rate (AIFR): The total number of injuries and fatalities that occurs per million hours worked. | ||
By-products: Any potentially economic or saleable products that emanate from the core process of producing gold or copper, including silver, molybdenum and sulphuric acid. | ||
Carbon-in-leach (CIL): Gold is leached from a slurry of ore where cyanide and carbon granules are added to the same agitated tanks. The gold loaded carbon granules are separated from the slurry and treated in an elution circuit to remove the gold. | ||
Carbon-in-pulp (CIP): Gold is leached conventionally from a slurry of ore with cyanide in agitated tanks. The leached slurry then passes into the CIP circuit where activated carbon granules are mixed with the slurry and gold is adsorbed on to the activated carbon. The gold-loaded carbon is separated from the slurry and treated in an elution circuit to remove the gold. | ||
Comminution: Comminution is the crushing and grinding of ore to make gold available for physical or chemical separation (see also “Milling”). | ||
Contained gold or Contained copper: The total gold or copper content (tonnes multiplied by grade) of the material being described. | ||
Cut-off grade: Cut-off grade is the grade (i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio. | ||
Depletion: The decrease in the quantity of ore in a deposit or property resulting from extraction or production. | ||
Development: The process of accessing an orebody through shafts and/or tunneling in underground mining operations. | ||
Development stage property: A development stage property is a property that has Mineral Reserve disclosed, but no material extraction. | ||
Diorite: An igneous rock formed by the solidification of molten material (magma). | ||
Doré: Impure alloy of gold and silver produced at a mine to be refined to a higher purity. | ||
Economically viable: Economically viable, when used in the context of Mineral Reserve determination, means that the Qualified Person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions. | ||
Electrowinning: A process of recovering gold from solution by means of electrolytic chemical reaction into a form that can be smelted easily into gold bars. | ||
Elution: Recovery of the gold from the activated carbon into solution before zinc precipitation or electrowinning. | ||
Exploration results: Exploration results are data and information generated by mineral exploration programs (i.e., programs consisting of sampling, drilling, trenching, analytical testing, assaying, and other similar activities undertaken to locate, investigate, define or delineate a mineral prospect or mineral deposit) that are not part of a disclosure of Mineral Resource or Reserve. A registrant must not use exploration results alone to derive estimates of tonnage, grade, and production rates, or in an assessment of economic viability. | ||
Exploration stage property: An exploration stage property is a property that has no Mineral Reserve disclosed. | ||
Exploration target: An exploration target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnage and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource. | ||
Feasibility study: A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors, as defined by this section, together with any other relevant operational factors, and detailed financial analyses that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. The results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. A feasibility study is more comprehensive, and with a higher degree of accuracy, than a pre-feasibility study. It must contain mining, infrastructure, and process designs completed with sufficient rigour to serve as the basis for an investment decision or to support project financing. The confidence level in the results of a feasibility study is higher than the confidence level in the results of a pre-feasibility study. Terms such as full, final, comprehensive, bankable, or definitive feasibility study are equivalent to a feasibility study. | ||
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Flotation: Concentration of gold and gold-hosting minerals into a small mass by various techniques (e.g. collectors, frothers, agitation, air-flow) that collectively enhance the buoyancy of the target minerals, relative to unwanted gangue, for recovery into an over-flowing froth phase. | ||
Gold produced or Gold production: Refined gold in a saleable form derived from the mining process. | ||
Grade: The quantity of ore contained within a unit weight of mineralised material generally expressed in grams per metric tonne (g/t) or ounce per short tonne for gold bearing material or Percentage copper (%Cu) for copper bearing material. | ||
Greenschist: A schistose metamorphic rock whose green colour is due to the presence of chlorite, epidote or actinolite. | ||
Indicated Mineral Resource: An Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a Qualified Person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a Probable Mineral Reserve. | ||
Inferred Mineral Resource: An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resource, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve. | ||
Initial assessment (also known as concept study, scoping study, conceptual study and preliminary economic assessment): An initial assessmentis a preliminary technical and economic study of the economic potential of all or parts of mineralisation to support the disclosure of Mineral Resource. The initial assessment must be prepared by a Qualified Person and must include appropriate assessments of reasonably assumed technical and economic factors, together with any other relevant operational factors, that are necessary to demonstrate at the time of reporting that there are reasonable prospects for economic extraction. An initial assessment is required for disclosure of Mineral Resource but cannot be used as the basis for disclosure of Mineral Reserve. | ||
Leaching: Dissolution of gold from crushed or milled material, including reclaimed slime, prior to adsorption on to activated carbon or direct zinc precipitation. | ||
Life of mine (LOM): Number of years for which an operation is planning to mine and treat ore, and is taken from the current mine plan. | ||
Measured Mineral Resource:A Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a Qualified Person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve. | ||
Metallurgical plant: A processing plant constructed to treat ore and extract gold or copper in the case of Quebradona (and, in some cases, valuable by-products). | ||
Metallurgical recovery factor (MetRF): A measure of the efficiency in extracting gold from the ore. | ||
Milling: A process of reducing broken ore to a size at which concentrating or leaching can be undertaken (see also “Comminution”). | ||
Mine call factor (MCF): The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling. The ratio of contained gold delivered to the metallurgical plant divided by the estimated contained gold of ore mined based on sampling. | ||
Mineral deposit: A mineral deposit is a concentration (or occurrence) of material of possible economic interest in or on the earth’s crust. | ||
Mineralisation:The process or processes by which a mineral or minerals are introduced into rock, resulting in a potentially valuable deposit. | ||
Mining recovery factor (MRF): This factor reflects a mining efficiency factor relating to the recovery of material during the mining process and is the variance between the tonnes called for in the mining design and what the plant receives. It is expressed in both a grade and tonnage number. | ||
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Mineral Reserve: A Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resource that, in the opinion of the Qualified Person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted. | ||
Mineral Resource: A Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled. | ||
Modifying Factors: Modifying factors are the factors that a Qualified Person must apply to Indicated and Measured Mineral Resource and then evaluate in order to establish the economic viability of Mineral Reserve. A Qualified Person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resource to Proven and Probable Mineral Reserve. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project. | ||
Open pit mining: An excavation made at the surface of the ground for the purpose of extracting minerals, inorganic and organic, from their natural deposits, which excavation is open to the surface. | ||
Ounce (oz) (troy): Used in imperial statistics. A kilogram is equal to 32.1507 ounces. A troy ounce is equal to 31.1035 grams. | ||
Pay limit: The grade of a unit of ore at which the revenue from the recovered mineral content of the ore is equal to the sum of total cash costs, closure costs, Mineral Reserve development and stay-in-business capital. This grade is expressed as an in-situ value in grams per tonne or ounces per short ton (before dilution and mineral losses). | ||
Precipitate: The solid product formed when a change in solution chemical conditions results in conversion of some pre-dissolved ions into solid state. | ||
Preliminary feasibility study (pre-feasibility study): is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a Qualified Person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a Qualified Person to determine if all or part of the Indicated and Measured Mineral Resource may be converted to Mineral Reserve at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment. | ||
Probable Mineral Reserve: A Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource. | ||
Production stage property: A production stage property is a property with material extraction of Mineral Reserve. | ||
Productivity: An expression of labour productivity based on the ratio of ounces of gold produced per month to the total number of employees in mining operations. | ||
Proven Mineral Reserve: A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource. | ||
Qualified Person: A Qualified Person, in respect of the Company's material properties, is an individual who is (1) a mineral industry professional with at least five years of relevant experience in the type of mineralisation and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and (2) an eligible member or licensee in good standing of a recognised professional organisation at the time the technical report is prepared. Regulation S-K 1300 details further recognised professional organisations and also relevant experience. | ||
Quartz: A hard mineral consisting of silica dioxide found widely in all rocks. | ||
Recovered grade: The recovered mineral content per unit of ore treated. | ||
Reef: A gold-bearing horizon, sometimes a conglomerate band, that may contain economic levels of gold. Reef can also be any significant or thick gold bearing quartz vein. | ||
Refining: The final purification process of a metal or mineral. | ||
Regulation S-K 1300: In October 2018, the SEC adopted Subpart 1300 (17 CFR § 229.1300) of Regulation S-K, along with amendments to related rules and guidance, in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. | ||
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Rehabilitation: The process of reclaiming land disturbed by mining to allow an appropriate post-mining use. Rehabilitation standards are defined by country-specific laws, including but not limited to the US Bureau of Land Management, the US Forest Service, and the relevant Australian mining authorities, and address among other issues, ground and surface water, topsoil, final slope gradient, waste handling and re-vegetation issues. | ||
Resource modification factor (RMF): This factor is applied when there is an historic reconciliation discrepancy in the Mineral Resource model (e.g. between the Mineral Resource model tonnage and the grade control model tonnage). It is expressed in both a grade and tonnage number. | ||
Scats: Within the metallurgical plants, scats is a term used to describe ejected ore or other uncrushable / grinding media arising from the milling process. This, typically oversize material (ore), is ejected from the mill and stockpiled or re-crushed via a scats retreatment circuit. Retreatment of scats is aimed at fracturing the material such that it can be returned to the mills and processed as with the other ores to recover the gold locked up within this oversize material. | ||
Seismic event: A sudden inelastic deformation within a given volume of rock that radiates detectable seismic energy. | ||
Shaft: A vertical or subvertical excavation used for accessing an underground mine; for transporting personnel, equipment and supplies; for hoisting ore and waste; for ventilation and utilities; and/or as an auxiliary exit. | ||
Smelting: A pyro-metallurgical operation in which gold precipitate from electro-winning or zinc precipitation is further separated from impurities. | ||
Stoping: The process of excavating ore underground. | ||
Stripping ratio: The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined. | ||
Tailings: Finely ground rock of low residual value from which valuable minerals have been extracted. | ||
Tonnage: Quantity of material measured in tonnes. | ||
Tonne: Used in metric statistics. Equal to 1,000 kilograms. | ||
Total recordable injury frequency rate (TRIFR): The total number of recordable injuries and fatalities that occurs per million hours worked. | ||
Underground mining: The extraction of rocks, minerals and industrial materials, other than coal, oil and gas, from the earth by developing entries or shafts from the surface to the seam or deposit before recovering the product by underground extraction methods. | ||
Waste: Material that contains insufficient mineralisation for consideration for future treatment and, as such, is discarded. | ||
Yield: The amount of valuable mineral or metal recovered from each unit mass of ore expressed as grams per metric tonne. | ||
Zinc precipitation: Zinc precipitation is the chemical reaction using zinc dust that converts gold in solution to a solid form for smelting into unrefined gold bars. | ||
15
Abbreviations
| %Cu | Percentage copper | ||||
| A2X | A2X Markets | ||||
| AAIL | AngloGold Ashanti (Iduapriem) Limited | ||||
| AARL | Anglo American Research Laboratories | ||||
| AC | Aircore drilling | ||||
| ADR | American Depositary Receipt | ||||
| ADS | American Depositary Share | ||||
| AFIP | Argentinean Tax Authority | ||||
| Ag | Silver | ||||
| AGAC | AngloGold Ashanti Colombia S.A.S. | ||||
| AGAG | AngloGold Ashanti (Ghana) Limited | ||||
| AGAH | AngloGold Ashanti Holdings plc | ||||
| AGM | Annual General Meeting | ||||
| AIFR | |||||
| AISC | All-in sustaining costs | ||||
| ANLA | Colombian National Environmental Licencing Authority | ||||
| ANM | Brazilian National Mining Agency | ||||
| ASX | Australian Securities Exchange | ||||
| Au | |||||
| The Australasian Institute of Mining and Metallurgy | |||||
| B-BBEE | Broad-Based Black Economic Empowerment | ||||
| BBSY | Bank Bill Swap Bid Rate | ||||
| BEE | Black Economic Empowerment | ||||
| BIF | Banded iron formation | ||||
| BIOX | Bacterial oxidation | ||||
| BLM | United States Federal Bureau of Land Management | ||||
| BMRR | State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation | ||||
| bn | Billion | ||||
| CCD | Counter Current Decant system in thickeners | ||||
| CDI | Chess Depositary Interests | ||||
| CdS | Córrego do Sítio | ||||
| CEO | Chief Executive Officer | ||||
| CFO | Chief Financial Officer | ||||
| CHESS | Clearing House Electronic Settlement System | ||||
| Corvus Gold | Corvus Gold Inc. | ||||
| COSO | Committee of Sponsoring Organisations of the Treadway Commission | ||||
| CPI | Consumer Prices index | ||||
| CSD | Central Securities Depository | ||||
| CTC | Contributed tax capital | ||||
| Cu | Copper | ||||
| CVSA | Cerro Vanguardia S.A. | ||||
| Cyanisorb | Cyanide Recovery Plant | ||||
| DD | Diamond drilling | ||||
| DEI | Declaration of Environmental Impact | ||||
| D&I | Diversity and Inclusion | ||||
| DIAN | Colombian Tax Office | ||||
| DMRE | South African Department of Mineral Resources and Energy | ||||
| Dodd-Frank Act | United States Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended | ||||
| DRC | Democratic Republic of the Congo | ||||
| DSP | Deferred Share Plan | ||||
| EHS | Environmental, health and safety | ||||
| EIA | Environmental Impact Assessment | ||||
| EPS | Enhanced Production Scheduler | ||||
| ERP | Enterprise resource planning | ||||
16
| ESG | Environmental, social and governance | ||||
| EU | European Union | ||||
| EVP/COO | Executive Vice President/Chief Operating Officer | ||||
| Exchange Act | United States Securities Exchange Act of 1934, as amended | ||||
| ExCom | Executive Committee | ||||
| EY | Ernst & Young Inc. | ||||
| E4V | Exploring for value | ||||
| FCA | UK Financial Conduct Authority | ||||
| FMA | Argentinean Federal Mining Agreement | ||||
| FMSHRC | United States Federal Mine Safety and Health Review Commission | ||||
| FP | Full Asset Potential Programme | ||||
| FS | Feasibility Study | ||||
| FTSE | Financial Times Stock Exchange | ||||
| FVTOCI | Fair value through other comprehensive income | ||||
| FVTPL | Fair value through profit or loss | ||||
| G or g | Grams | ||||
| g/t | Grams per metric tonne | ||||
| GCL | Gramalote Colombia Limited | ||||
| GDPR | EU General Data Protection Regulation | ||||
| GFW | Galinheiro Footwall | ||||
| GGB | Geita Greenstone Belt | ||||
| GGM | Geita Gold Mine | ||||
| GGML | Geita Gold Mine Limited | ||||
| GhDS | Ghanaian Depositary Share | ||||
| GHG | Greenhouse gas | ||||
| GhSE | Ghana Stock Exchange | ||||
| GISTM | Global Industry Standard on Tailings Management | ||||
| GJ | Gigajoule | ||||
| Gold Fields | Gold Fields Limited | ||||
| GRI | Global Reporting Initiative | ||||
| GRIDCo | Ghana Grid Company Limited | ||||
| HDSA | Historically disadvantaged South Africans | ||||
| HME | Heavy mobile equipment | ||||
| IASB | International Accounting Standards Board | ||||
| ICE | Intercontinental Exchange | ||||
| ICMM | International Council on Mining & Metals | ||||
| IFRS | International Financial Reporting Standards as issued by the IASB | ||||
| IMF | International Monetary Fund | ||||
| IRS | United States Internal Revenue Services | ||||
| iSIMS | Integrated Sustainability Information Management System | ||||
| IT | Information technology | ||||
| JORC | Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves | ||||
| JSE | JSE Limited (Johannesburg Stock Exchange) | ||||
| JV | Joint venture | ||||
| KCD | Karagba, Chauffeur and Durba | ||||
| King | The King Report on Corporate Governance for South Africa, 2016 | ||||
| Kg or kg | Kilograms | ||||
| Km or km | Kilometres | ||||
Km2 | |||||
| Koz | Thousand ounces | ||||
| LBMA | London Bullion Market Association | ||||
| LHOS | Long Hole Open Stoping | ||||
| LIBOR | London Interbank Offer Rate | ||||
| LOM | Life of mine | ||||
| LOS | Longitudinal Open Stoping | ||||
| LRS | Longitudinal Retreat Stoping | ||||
| LUC | Localised Uniform Conditioning | ||||
17
| M or m | Metre or million, depending on the context | ||||
| MBC | Mining and Building Contractors Limited | ||||
| MCF | Mine call factor | ||||
| MCQ | Minera de Cobre Quebradona S.A.S. B.I.C. | ||||
| MEM | Tanzanian Ministry of Minerals | ||||
| MetRF | Metallurgical recovery factor | ||||
| Mine Act | United States Federal Mine Safety and Health Act of 1977, as amended | ||||
| Mlb | Million pounds | ||||
| MME | Brazilian Ministry of Mines and Energy | ||||
| Mo | Molybdenum | ||||
| MoI | Memorandum of Incorporation | ||||
| Moz | Million ounces | ||||
| MPRDAA | South African Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 | ||||
| MRF | Mining recovery factor | ||||
| mRL | Metres relative level | ||||
| MSG | Mineração Serra Grande S.A. | ||||
| MSHA | United States Department of Labor's Mine Safety and Health Administration | ||||
| MSO | Datamine Mineable Shape Optimiser | ||||
| MSR | Minimum Shareholding Requirement | ||||
| Mtpa | Million | ||||
| NED | Non-Executive Director | ||||
| NEMA | South African National Environmental Management Act, No. 107 of 1998, as amended | ||||
| NGER | Australian National Greenhouse and Energy Reporting | ||||
| NGO | Non-governmental organisation | ||||
| NHIL | Ghanaian National Health Insurance Levy | ||||
| NIHL | Noise-induced hearing loss | ||||
| NSR | Net Smelter Return | ||||
| NYSE | New York Stock Exchange | ||||
| OLD | Occupational lung diseases | ||||
| OTC | Over-The-Counter | ||||
| Oz or oz | Ounces (troy) | ||||
| oz/t | Ounces per | ||||
| PCAOB | United States Public Company Accounting Oversight Board | ||||
| PFIC | Passive foreign investment company | ||||
| PMMC | Precious Minerals Marketing Company Ltd | ||||
| POPIA | South African Protection of Personal Information Act, No. 4 of 2013 | ||||
| PTP | Pompora Treatment Plant | ||||
| PwC | PricewaterhouseCoopers Inc. | ||||
| QKNA | Quantitative Kriging Neighbourhood Analysis | ||||
| RC | Reverse circulation | ||||
| Remco | Remuneration and Human Resources Committee | ||||
| RMF | Resource modification factor | ||||
| ROM | Run of mine | ||||
| RRSC | Mineral Resource and Mineral Reserve Steering Committee | ||||
| S | Sulphur | ||||
| SA Companies Act | South African Companies Act, No. 71 of 2008, as amended | ||||
| SACNASP | South African Council for Natural Scientific Professions | ||||
| SAG | Société AngloGold Ashanti de Guinée S.A. | ||||
| SAG mills | Semi-Autogenous Grinding mills | ||||
| SA Income Tax Act | South African Income Tax Act, No. 58 of 1962, as amended | ||||
| SAMREC | South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves 2016 edition | ||||
| SARB | South African Reserve Bank | ||||
| SARS | South African Revenue Service | ||||
| SASB | Sustainability Accounting Standards Board | ||||
| SCB | Standard Chartered Bank Ghana PLC | ||||
| SEC | United States Securities and Exchange Commission | ||||
18
| Securities Act | |||||
| SMS | Short messaging system | ||||
| SMU | Selective mining unit | ||||
| SOFR | Secured Overnight Financing Rate | ||||
| SOKIMO | Société Minière de Kilo-Moto S.A. | ||||
| SOX | United States Sarbanes-Oxley Act of 2002, as amended | ||||
| STT | Securities transfer tax | ||||
| SWNVF | Southwestern Nevada volcanic field | ||||
| T or t | |||||
| TANESCO | Tanzania Electric Supply Company Limited | ||||
| TOS | Transverse Open Stoping | ||||
| Tpa or tpa | |||||
| TRA | Tanzanian Revenue Authority | ||||
| TRIFR | Total recordable injury frequency rate | ||||
| TSF | Tailings storage facility | ||||
| UC | Uniform Conditioning | ||||
| UNCITRAL | United Nations Commission on International Trade Law | ||||
| UNECA | United Nations Economic Commission for Africa | ||||
| UNGC | United Nations Global Compact | ||||
| UNGP | United Nations Guiding Principles for Business and Human Rights | ||||
| UNSDGs | United Nations Sustainable Development Goals | ||||
| US/U.S./USA/United States | United States of America | ||||
| VAT | Value added tax | ||||
| VPSHR | Voluntary Principles on Security and Human Rights | ||||
| WGC | World Gold Council | ||||
| XBRL | eXtensible Business Reporting Language (including in-line XBRL, i-XBRL) | ||||
Note: Rounding of figures in this annual report on Form 20-F may result in computational discrepancies.
19
PART I
ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS
Not applicable.
ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3: KEY INFORMATION
3A. [Reserved]
3B. CAPITALISATION AND INDEBTEDNESS
| Year ended 31 December | ||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||
| $ | $ | $ | $ | $ | ||||||||||
| (in millions, except share and per share amounts) | ||||||||||||||
| Consolidated income statement | ||||||||||||||
| Revenue | 4,543 | 4,254 | 4,174 | 5,110 | 5,383 | |||||||||
| Gold income | 4,356 | 4,085 | 4,015 | 4,952 | 5,172 | |||||||||
| Cost of sales | (3,582 | ) | (3,263 | ) | (3,294 | ) | (3,972 | ) | (3,947 | ) | ||||
| Gain (loss) on non-hedge derivatives and other commodity contracts | 10 | 19 | (7 | ) | 13 | 94 | ||||||||
| Gross profit | 784 | 841 | 714 | 993 | 1,319 | |||||||||
| Corporate administration, marketing, other expenses and other income | (64 | ) | (61 | ) | (78 | ) | (92 | ) | (201 | ) | ||||
| Exploration and evaluation costs | (114 | ) | (133 | ) | (132 | ) | (142 | ) | (250 | ) | ||||
| Other operating expenses | (88 | ) | (110 | ) | (96 | ) | (28 | ) | (19 | ) | ||||
| Special items | (438 | ) | (42 | ) | (71 | ) | (260 | ) | (2,951 | ) | ||||
| Operating profit (loss) | 80 | 495 | 337 | 471 | (2,102 | ) | ||||||||
| Dividends received | — | — | — | — | 5 | |||||||||
| Interest received | 15 | 22 | 28 | 24 | 39 | |||||||||
| Exchange gain (loss) | (11 | ) | (88 | ) | (17 | ) | (7 | ) | 14 | |||||
| Finance costs and unwinding of obligations | (169 | ) | (180 | ) | (245 | ) | (276 | ) | (293 | ) | ||||
| Fair value adjustment on issued bonds | — | 9 | 66 | (17 | ) | 307 | ||||||||
| Share of associates and joint ventures’ profit (loss) | 22 | 11 | 88 | (25 | ) | (162 | ) | |||||||
| Profit (loss) before taxation | (63 | ) | 269 | 257 | 170 | (2,192 | ) | |||||||
| Taxation | (108 | ) | (189 | ) | (211 | ) | (225 | ) | 237 | |||||
| Profit (loss) after taxation from continuing operations | (171 | ) | 80 | 46 | (55 | ) | (1,955 | ) | ||||||
| Discontinued operations | ||||||||||||||
| Profit (loss) from discontinued operations | — | — | (116 | ) | 16 | (245 | ) | |||||||
| Profit (loss) for the year | (171 | ) | 80 | (70 | ) | (39 | ) | (2,200 | ) | |||||
| Allocated as follows | ||||||||||||||
| Equity shareholders | ||||||||||||||
| - Continuing operations | (191 | ) | 63 | 31 | (74 | ) | (1,985 | ) | ||||||
| - Discontinued operations | — | — | (116 | ) | 16 | (245 | ) | |||||||
| Non-controlling interests | ||||||||||||||
| - Continuing operations | 20 | 17 | 15 | 19 | 30 | |||||||||
| (171 | ) | 80 | (70 | ) | (39 | ) | (2,200 | ) | ||||||
| Basic earnings (loss) per ordinary share (cents) | (46 | ) | 15 | (20 | ) | (14 | ) | (568 | ) | |||||
| Earnings (loss) per ordinary share from continuing operations | (46 | ) | 15 | 8 | (18 | ) | (506 | ) | ||||||
| Earnings (loss) per ordinary share from discontinued operations | — | — | (28 | ) | 4 | (62 | ) | |||||||
| Diluted earnings (loss) per ordinary share (cents) | (46 | ) | 15 | (20 | ) | (14 | ) | (631 | ) | |||||
| Earnings (loss) per ordinary share from continuing operations | (46 | ) | 15 | 8 | (18 | ) | (571 | ) | ||||||
| Earnings (loss) per ordinary share from discontinued operations | — | — | (28 | ) | 4 | (62 | ) | |||||||
| Dividend per ordinary share (cents) | 10 | — | — | — | 10 | |||||||||
| As at 31 December | ||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||
| $ | $ | $ | $ | $ | ||||||||||
| (in millions, except share and per share amounts) | ||||||||||||||
| Consolidated balance sheet data | ||||||||||||||
| ASSETS | ||||||||||||||
| Non-current assets | ||||||||||||||
| Tangible assets | 3,742 | 4,111 | 4,058 | 4,863 | 4,815 | |||||||||
| Intangible assets | 138 | 145 | 161 | 225 | 267 | |||||||||
| Investments in associates and joint ventures | 1,507 | 1,448 | 1,465 | 1,427 | 1,327 | |||||||||
| Other investments | 131 | 125 | 91 | 126 | 131 | |||||||||
| Inventories | 100 | 84 | 90 | 636 | 586 | |||||||||
| Trade, other receivables and other assets | 67 | 34 | 13 | 20 | 29 | |||||||||
| Deferred taxation | 4 | 4 | 1 | 127 | 177 | |||||||||
| Cash restricted for use | 37 | 36 | 37 | 36 | 31 | |||||||||
| Other non-current assets | — | — | 18 | 25 | 41 | |||||||||
| 5,726 | 5,987 | 5,934 | 7,485 | 7,404 | ||||||||||
| Current assets | ||||||||||||||
| Other investments | 7 | 5 | 1 | — | 1 | |||||||||
| Inventories | 683 | 672 | 646 | 888 | 1,053 | |||||||||
| Trade, other receivables and other assets | 222 | 255 | 196 | 278 | 369 | |||||||||
| Cash restricted for use | 28 | 19 | 23 | 15 | 46 | |||||||||
| Cash and cash equivalents | 205 | 215 | 484 | 468 | 648 | |||||||||
| 1,145 | 1,166 | 1,350 | 1,649 | 2,117 | ||||||||||
| Non-current assets held for sale | 348 | — | — | — | 153 | |||||||||
| 1,493 | 1,166 | 1,350 | 1,649 | 2,270 | ||||||||||
| Total assets | 7,219 | 7,153 | 7,284 | 9,134 | 9,674 | |||||||||
| EQUITY AND LIABILITIES | ||||||||||||||
| Share capital and premium | 7,134 | 7,108 | 7,066 | 7,041 | 7,006 | |||||||||
| Accumulated losses and other reserves | (4,471 | ) | (4,393 | ) | (4,636 | ) | (4,196 | ) | (3,927 | ) | ||||
| Shareholders’ equity | 2,663 | 2,715 | 2,430 | 2,845 | 3,079 | |||||||||
| Non-controlling interests | 41 | 39 | 37 | 26 | 28 | |||||||||
| Total equity | 2,704 | 2,754 | 2,467 | 2,871 | 3,107 | |||||||||
| Non-current liabilities | ||||||||||||||
| Borrowings | 2,230 | 2,144 | 2,637 | 3,498 | 3,633 | |||||||||
| Environmental rehabilitation and other provisions | 942 | 877 | 847 | 1,052 | 963 | |||||||||
| Provision for pension and post-retirement benefits | 122 | 118 | 107 | 147 | 152 | |||||||||
| Trade, other payables and deferred income | 3 | 4 | 5 | 15 | 4 | |||||||||
| Deferred taxation | 363 | 496 | 514 | 567 | 579 | |||||||||
| 3,660 | 3,639 | 4,110 | 5,279 | 5,331 | ||||||||||
| Current liabilities | ||||||||||||||
| Borrowings | 38 | 34 | 100 | 223 | 258 | |||||||||
| Trade, other payables and deferred income | 638 | 615 | 516 | 695 | 820 | |||||||||
| Bank overdraft | — | — | — | — | 20 | |||||||||
| Taxation | 53 | 111 | 91 | 66 | 81 | |||||||||
| 729 | 760 | 707 | 984 | 1,179 | ||||||||||
| Non-current liabilities held for sale | 126 | — | — | — | 57 | |||||||||
| 855 | 760 | 707 | 984 | 1,236 | ||||||||||
| Total liabilities | 4,515 | 4,399 | 4,817 | 6,263 | 6,567 | |||||||||
| Total equity and liabilities | 7,219 | 7,153 | 7,284 | 9,134 | 9,674 | |||||||||
| Number of ordinary shares as adjusted to reflect changes in share capital | 410,054,615 | 408,223,760 | 405,265,315 | 404,010,360 | 402,628,406 | |||||||||
| Share capital (exclusive of long-term debt and redeemable preference shares) | 16 | 16 | 16 | 16 | 16 | |||||||||
| Net assets | 2,704 | 2,754 | 2,467 | 2,871 | 3,107 | |||||||||
Year ended 31 December (1) | 2017 (3) | 2016 | 2015 | 2014 | 2013 | |||||||||
| South African cents per ordinary share | 130 | — | — | — | 100 | |||||||||
US cents per ordinary share(2) | 10 | — | — | — | 10 | |||||||||
Year ended 31 December (2) | High | Low | Year end | Average (1) | ||||||||
| 2013 | 10.51 | 8.47 | 10.49 | 9.63 | ||||||||
| 2014 | 11.69 | 10.28 | 11.60 | 10.84 | ||||||||
| 2015 | 15.87 | 11.36 | 15.53 | 12.77 | ||||||||
| 2016 | 16.87 | 13.18 | 13.73 | 14.68 | ||||||||
| 2017 | 14.46 | 12.25 | 12.36 | 13.30 | ||||||||
2018(3) | 12.45 | 11.54 | 11.98 | |||||||||
Exchange rate information for the months of (1) | High | Low | |||
| September 2017 | 13.58 | 12.76 | |||
| October 2017 | 14.23 | 13.26 | |||
| November 2017 | 14.46 | 13.65 | |||
| December 2017 | 13.73 | 12.25 | |||
| January 2018 | 12.45 | 11.85 | |||
| February 2018 | 12.16 | 11.54 | |||
March 2018 (2) | 12.01 | 11.76 | |||
Not applicable.
3C. REASONS FOR THE OFFER AND USE OF PROCEEDS
Not applicable.
3D.RISK FACTORS
This section describes many of the risks that could affect AngloGold Ashanti. There may, however, be additional risks unknown to AngloGold Ashanti and other risks, currently believed to be immaterial, that could turn out to be material. Additional risks may arise or become material subsequent to the date of this document. These risks, either individually or simultaneously, could significantly affect the group’sGroup’s business, operational and financial results and the price of its securities.
SUMMARY OF RISK FACTORS
1. Risks Related to AngloGold Ashanti’s Industry
•AngloGold Ashanti is increasingly expected to operate in a sustainable manner and to provide benefits and mitigate adverse impacts to affected communities. Failure to do so can result in legal suits, additional costs to address social or environmental impacts of operations, investor divestment, adverse reputational impacts and loss of “social licence to operate”, and could adversely impact AngloGold Ashanti’s financial condition.
•AngloGold Ashanti is subject to many risks related to AngloGold Ashanti’sthe development of existing and new mining projects that may adversely affect its results of operations and financial condition as aprofitability.
•AngloGold Ashanti is subject to extensive and rapidly changing environmental, health and safety laws and regulations. Failure to comply with these requirements could result in enforcement proceedings, claims, suspension of factorsoperations, community protest and/or additional capital or operating expenditures that impact the gold mining industry generally.
•Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply with these requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations.operations and reputation.
•AngloGold Ashanti’s ability to replace Mineral Reserve is subject to uncertainty and risks inherent in exploration, technical and economic pre-feasibility and feasibility studies and other project evaluation activities as well as competition within the industry for attractive mining properties.
•Mining operations and projects are vulnerable to bullion banks, the number of which has declined in recent years. Central banks’ purchases cansupply chain disruption such that operations and development projects could be adversely affected by declinesshortages of, as well as extended lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant.
•AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.
•AngloGold Ashanti faces strong competition and industry consolidation.
2. Risks Related to AngloGold Ashanti’s Operations and Business
•AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in foreign exchange reserves. For example, this was one of the factors that drove a 33 percent decline in net gold purchases by central banks in 2016 compared to 2015. Demand for gold is also largely impacted by trends in Chinacountries where political, tax and India, which account for the highest gold consumption worldwide. Demand for goldeconomic laws and policies may be particularly affected by governmentchange rapidly and unpredictably and such changes and policies in these countries. For example, according to the World Gold Council, gold demand in China fell 38 percent in 2014 compared to 2013 and demand for gold bars and coins fell by 50 percent due in part to the government’s anti-corruption programme, which put limited pressure on demand for gold ornaments and so-called “gift bars”. In India, government intervention to try to reduce the trade deficit, a material portion of which is linked to gold imports, led to various import taxes being introduced, which unsettled the domestic market for gold in 2016. The Indian government also introduced measures in 2016 to reduce undeclared income, including a demonetisation policy put in place in November 2016. Although gold imports temporarily increased when the Indian government announced its decision to retire the 500-rupee and 1,000-rupee bank notes, as soon-to-be obsolete notes were used to buy gold, gold imports registered a 55 percent decline by value the following month due to the lack of liquidity resulting from the demonetisation. These and similar policies in India, China or other large gold-importing countries couldmay adversely affect demand for, and consequently pricesboth the terms of gold.its mining concessions, as well as its ability to conduct operations in certain countries.
•AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on its business.
•Increased labour costs could also have a material adverse effect on AngloGold Ashanti’s financial condition and results of operations and financial condition.
•The use of contractors at certain of the Company's operations may expose AngloGold Ashanti to delays or suspensions in mining activities and increased mining costs.
•AngloGold Ashanti’s Mineral Reserve, deposits and mining operations are located in countries that face instability, public health and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.
•Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
•Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the Company’s business, have adverse environmental, health, safety and security impacts, and expose the Company to liability.
•AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.
•Title to AngloGold Ashanti’s properties may be unable to quickly adjust its cost structure to reflect the reduced gold price environment. Mines with marginal headroom may beuncertain and subject to decreaseschallenge.
21
3. Risks Related to AngloGold Ashanti’s Corporate and Financing Structure and Strategy
•AngloGold Ashanti expects to have significant financing requirements.
•Sales of large quantities of AngloGold Ashanti’s ordinary shares and American Depositary Shares (“ADSs”), or the perception that these sales may occur or other dilution of the Company’s equity, could adversely affect the prevailing market price of the Company’s securities.
•AngloGold Ashanti may not pay dividends or make similar payments to shareholders in value that are not temporary, which may result in impairment losses. See “-Certainthe future.
•Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant.” The market value of gold inventory may be reduced and marginal stockpile and heap leach inventories may be written down to net realisable value or may not be processed further as it may not be economically viable at lower gold prices. In addition,
•AngloGold Ashanti is obliged to meet certain financial covenants under the termsdoes not have full management control over some of its borrowing facilitiessignificant joint ventures and its ability to continue to meetother projects. If the operators of these covenantsjoint ventures or projects do not manage these effectively and efficiently, the Company’s investment in these joint ventures or projects could be adversely affected by a further sustained decrease inand its reputation could be harmed.
•Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the priceavailability of gold. new financing.
•The uselevel of lower gold prices in Ore Reserve estimatesAngloGold Ashanti’s indebtedness could adversely impact its business.
•Any acquisition or acquisitions that AngloGold Ashanti may complete may expose the Company to new geographic, political, legal, social, operating, financial and lifegeological risks.
•The occurrence of mine plans could also result in material impairments of the company’s investment in mining propertiesevents for which AngloGold Ashanti is not insured or a reduction infor which its Ore Reserve estimatesinsurance is inadequate may adversely affect cash flows and corresponding restatements of its Ore Reserve and increased amortisation, reclamation and closure charges.overall profitability.
•The price of silver has also experienced significantgold, AngloGold Ashanti’s principal product, and other commodity market price fluctuations in past years. During 2017,could adversely affect the price varied between a lowprofitability of $15.58 per ounce and a high of $18.52 per ounce. On 19 March 2018, the price of silver was $16.30 per ounce.operations.
•Foreign exchange fluctuations could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
•The profitability of mining companies’ operations and the cash flows generated by these operations are significantly affected by fluctuations in input production prices, many of which are linked to the prices of oil and steel.
•Global political and Excise authorities. The Ministereconomic conditions could adversely affect the profitability of Finance and Economic Affairs revoked the Government Notice No. 480 of 2000, as from 1 July 2009. The notice applies to the excise duty exemption on fuel products granted to mining companies. While Anglogold Ashanti believes that this will not affect its status to claim exemption on fuel duty as the duty relief is protected by the Mine Development Agreement (MDA) there can be no assurance of protection under the MDA with respect to future changes to this or other duty exemptions. This has resulted in a cumulative cost impact at AngloGold Ashanti's Geita mine of approximately $25million.operations.
•Energy cost increases and power fluctuations and stoppages could adversely impact the company’sAngloGold Ashanti’s results of operations and financial condition.
•Inflation may have a material adverse effect on results of operations.
•Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation.
•AngloGold Ashanti is subject to the risk of litigation, the causes and costs of which are uncertain.
•Compliance with “conflict minerals” and “responsible gold” legislation and standards could result in significant costs.
•AngloGold Ashanti’s operations are located in countries that have experienced high rates of inflation during certain periods. It is possible that significantly higher future inflation in the countries insubject to various climate change-related physical risks which the company operates may adversely impact its production activities, mine sites and personnel and/or result in an increaseresource shortages or environmental damages.
•Compliance with emerging climate change-related requirements, including stricter regulations and the potential imposition of carbon taxes or GHG emissions cap-and-trading schemes or the elimination of related subsidies, that are expected to be part of a country's participation in operational costs in local currencies (without a concurrent devaluation of the local currency of operations against the dollar or an increase in the dollar price of gold). This could havetransition to a material adverse effect on the company’s results of operations and financial condition. Significantly higher and sustained inflation, with a consequent increase in operational costs,lower-carbon economy, could result in the rationalisation (including closure) of higher cost mines or projects.
•Increasing scrutiny and changing expectations from AngloGold Ashanti’s stakeholders, including communities, governments and NGOs as well as investors, lenders and other market participants, with respect to AngloGold Ashanti’s Environmental, Social and Governance (“ESG”) performance and policies may impact AngloGold Ashanti’s reputation, result in additional costs to meet the year ended 31 December 2017. If inflation reaches highly inflationary levels, social unrestexpectations of stakeholders, hinder access to capital or expose AngloGold Ashanti to additional risks, including disinvestment and union activity may increase in Argentina, and thislitigation.
•AngloGold Ashanti’s inability to maintain an effective system of internal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.
•Breaches in cybersecurity and violations of data protection laws may adversely impact or disrupt AngloGold Ashanti’s operational costsbusiness.
•U.S. securities laws do not require AngloGold Ashanti to disclose as much information to investors as a U.S. issuer is required to disclose, and resultsinvestors may receive less information about the Company than they might otherwise receive from a comparable U.S. company.
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AngloGold Ashanti must continually replace Ore Reserve depleted by mining and production to maintain or increase production levels in the long term. This is undertaken by exploration activities that are speculative in nature. The ability of the company to sustain or increase its present levels of gold production depends in part on the success of its projects and it may be unable to sustain or increase such levels.
As a result of public concern about the perceived ill effects of economic globalisation and resource extraction activities, businesses in general and large multinational mining corporations in particular face increasing public scrutiny of their activities. The cost of measures and other issues relating to the sustainable development of mining operations could place significant demands on personnel resources, could increase capital and operating costs and could have an adverse impact on AngloGold Ashanti’s reputation, results of operations and financial condition.
In addition, as AngloGold Ashanti has a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas. For example, certain parties, including non-governmental organisations (“NGOs”), community groups and institutional investors, have raisedcould raise concerns and in the case of some individuals in Obuasi, threatenedeven threaten or commencedcommence litigation relating to air pollution or surface and groundwater quality, amongstamong other issues, in the area surrounding the company’s Obuasi and IduapriemCompany’s mines in Ghana, including potential impacts to local rivers and wells used for water from heavy metals, arsenic and cyanide as well as sediment and mine rock waste.or exploration sites. See “Item 8A: Legal Proceedings”.
Disputes with surrounding communities may also affect mining operations, particularly where they result in restrictions of access to supplies and to mining operations. The miners’ access to land may be subject to the rights or asserted rights of various community stakeholders, including indigenous people. Access to land and land use is of critical importance to the companyCompany for exploration and mining, as well as for ancillary infrastructure. In some cases, AngloGold Ashanti has had difficulty gaining access to new land because of perceived poor community compensation practices. For example, compensation remains a significant area of concern inat Siguiri in Guinea. In 2011, a violent community protest interrupted operations for three days, which contributed to the operation’s decline in production as compared to 2010, and protests demanding employment by the communities and youth occurred again in 2016. Delays in projects as well as increased costs attributable to a lack of community support can translate directly into a decrease in the value of a project or into an inability to bring the project to production. Where consultation with stakeholders is statutorily or otherwise mandated and relations do not remain amicable, disputes may lead to reduced access to properties or delays in operations.
Development of AngloGold Ashanti’s existing and new mining projects may be subject to unexpected problems, costs and delays that could place significant demandsimpact the Company’s ability to develop or operate the relevant project as planned. For example, constraints on personnel resources, could increasethe supply of mining and processing equipment, increases in capital and operating costs, or reduced availability of consistent skilled labour, utilities, transportation and/or appropriate smelting and refining arrangements could haveresult in delays in completing projects.
AngloGold Ashanti may prove unable to successfully operate existing mine sites or to develop potential exploration sites due to, for example, social and community opposition, litigation and governmental regulatory or administrative proceedings, changes in
applicable regulations or other requirements, the classification of land covered by mining titles as an adverse impact onenvironmentally-protected area, ore body grades, the inability of any such project to meet AngloGold Ashanti’s investment hurdle rate, and delays that could
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result in the expiry of permits. See “—AngloGold Ashanti is subject to extensive and rapidly changing environmental, health and safety laws and regulations. Failure to comply with these requirements could result in enforcement proceedings, claims, suspension of operations, community protest and/or additional capital or operating expenditures that could adversely impact AngloGold Ashanti’s financial condition or reputation”. The remote location of many mining properties, delays in obtaining or failure to obtain necessary environmental and other governmental permits and approvals, the impact of public health crises, epidemics or pandemics (including the COVID-19 pandemic) as well as third-party legal challenges to individual mining projects and broader social or political opposition to mining may increase the cost, timing and complexity of mine development and construction. For example, in December 2019, AngloGold Ashanti applied for the required environmental authorisations to develop the Quebradona project in Colombia. On 4 November 2021, the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”) officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not sufficient for this authority to make a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the process of preparing a new Environmental Impact Assessment for the project to submit to ANLA in connection with its environmental licence application.
Accordingly, AngloGold Ashanti’s future development activities may not result in the expansion or replacement of current production, or one or more new production sites or facilities may not be developed as planned or may be less profitable than anticipated or even be loss-making. A failure in the Company’s ability to develop and operate mining projects in accordance with, or in excess of, expectations could negatively impact its results of operations, as well as its financial condition and financial condition.prospects.
AngloGold Ashanti’s operations are subject to extensive and rapidly changing environmental, health and safety laws and regulations in the various jurisdictions in which it operates, in addition to international standards.operates. These regulations, andas well as international standards for the industry, establish limits and conditions on the company’sCompany’s ability to conduct its operations and govern, amongstamong other things, extraction, use and conservation of water resources; air emissions (including dust control); mine and dam safety; water treatment and discharge; regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; safety and health of employees and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials and mine tailings.
The cost of compliance with environmental, health and safety laws and regulations is expected to continue to be significant to AngloGold Ashanti. From time to time, new or updated laws, regulations and standards are introduced and may be more stringent than those to which AngloGold Ashanti is currently subject, including with respect to tailings management and TSFs. See “—Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply with these requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations and reputation.” Should compliance with these laws, regulations and standards require a material increase in expenditures or material changes or interruptions to operations or production, including as a result of any incident or failure to comply with applicable regulations, the Company’s results of operations and financial condition could be adversely affected. For example, AngloGold Ashanti expects to incur approximately $25 to $30 million in capital expenditure and operating costs during 2023-2026 in connection with the treatment and disposal of a quantity of legacy arsenic trioxide waste located at the Obuasi mine. AngloGold Ashanti could also incur fines, penalties and other sanctions, clean-up costs and third-party claims for personal injury or property damage, suffer reputational damage, or be required to install costly pollution control equipment or to modify or suspend operations, as a result of actual or alleged violations of environmental, health and safety laws and regulations or the terms of AngloGold Ashanti’s permits.
Failure to comply with applicable environmental, health and safety laws and regulations may also result in the suspension or revocation of operating permits. For example, in Colombia, AngloGold Ashanti’s core mining concession contracts provide that the Colombian mining authority, having regard to due process, could declare the underlying concession void if the Company repeatedly or continually breaches applicable environmental laws or regulations or engages in acts of corruption or other serious
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misconduct. In the event the concession is voided, AngloGold Ashanti could be required to abandon the relevant project and, depending on the severity of the violations or misconduct, the Colombian mining authority may cancel its other existing mining concession contracts. Pending proposals for new mining concession contracts could also be cancelled and the Company could be banned from doing business with the Colombian government for a period of five years.
AngloGold Ashanti’s ability to obtain and maintain permits and to successfully operate in particular communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities.
For example, in Colombia, various plaintiffs, including the governmentcertain governmental authorities and various associations that represent local communities, brought legal proceedings against AngloGold Ashanti Colombia S.A. (AGAC) alleging that AGAC violated applicablein order to stop exploration, development and mining activities in certain areas, in which its exploration projects are located, due to environmental laws in connectionconcerns. For instance, a consolidated class action with the La Colosa project. In one such proceeding, AGAC filed an action against the Colombian Department of the Environment, Housing and Territorial Development (DoE) after the DoE issued a fine of $70,000 against the company. Following a series of appeals, in January 2017 the appellate court reinstated the fine against the company. Although the amount of the fine is not significant, the finding that the company breached environmental laws could be used as the basis for legal action by the government that could prohibit AGAC from doing business with the Colombian government for a period of five years. As a result, AGAC’s three core concession contracts relatingrespect to the La Colosa project is currently pending before the Council of State of Colombia (the highest court for administrative matters) with respect to the impact of the project on the environment. If AngloGold Ashanti does not prevail before the Council of State, it may be cancelled. AGAC would be requiredhave to abandonperform one or more technical studies in relation to the La Colosa project, and all other existing mining concession contracts and pending proposals for new mining concession contracts of AGAC, though not those of other companies of the AngloGold Ashanti group operating in Colombia. AGAC is currently evaluating its options with respectwhich if they were to this matter. Separately, in October 2016, Tolima’s Administrative Court orderedconclude that a technical study be prepared by April 2017 to determine whether the La Colosa project presents a “threat” to the environment during its exploration phase. In December 2017, Ibaque's Third Administrative Court ordered a similar technical study. AGAC isexists, could result in the processsuspension of appealing these orders, but if such threat is determined to exist, certain development activities at La Colosa may be suspended.or even the abandonment of the project. See “Item“Item 8A: Legal Proceedings”Proceedings—Colombia”.
AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, amongstamong other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern globally, such asacross all of AngloGold Ashanti’s operations, including with respect to the company’sCompany’s mining operations in Ghana and South Africa andBrazil, its explorationmine development projects in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny.Nevada, as well as its mine development project at Quebradona in Colombia. Any failure by the companyAngloGold Ashanti to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licenses,rights, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the companyAngloGold Ashanti to comply with water contamination rehabilitationrelated directives may result in further, more stringent, directives being issued against the company,AngloGold Ashanti, which may, in some cases, result in a temporary or partial shutdown of some of the company’sCompany’s operations.
Mining companies are required by law to close their operations at the end of the mine life and rehabilitate the impacted areas. Estimates of the total ultimate closure, reclamation and rehabilitation costs for gold mining operations are significant and based principally on life-of-mine profiles, changing inflation and discount rate assumptions, changing infrastructure and facilities design and current legal and regulatory requirements that may change materially. Environmental liabilities are accrued when they become known, are probable and can be reasonably estimated. Increasingly, regulators are seeking security in the form of cash collateral or bank guarantees in respect of environmental obligations. For example, in South Africa, regulations require mining companiesSee “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to make financial provisions for rehabilitation for at least 10 years. The Department of Environmental Affairs (DEA) postponed the compliance deadline for the National Environmental Management Act (NEMA) Financial Provisioning Regulations to February 2019 and acknowledged challenges identified by the industry in collaboration with the Chamber of Mines. The costs required to comply with these obligations and any similar ones enacted in other jurisdictions may have an adverse impact on the company’s financial condition.Mine”.
AngloGold Ashanti’s provisions for decommissioning and for restoration (excluding joint ventures)ventures and discontinued operations) totalled $851$578 million in 2014, $6832022, $673 million in 2015 (following the sale of CC&V), $7052021 and $659 million in 2016 and $695 million in 2017.2020. Costs associated with rehabilitating land disturbed by mining processes and addressing environmental, health, safety and community issues are estimated and financial provision made based upon current available information based on ourAngloGold Ashanti’s commitments, in terms ofapplicable environmental legislation or agreements with government. Estimates notably relate to discount rates, which may vary due to changes in global economic and political risk conditions and assumptions, each of which is subject to change and certain changes may not be reasonably foreseen, and mine plans, which may change in line with variations in cash flows, designs of tailings storage facilities and methodologies used to compute liabilities (including as a result of a request from environmental regulatory authorities). EstimatesAs such, estimates may however, be insufficient and further costs may be identified at any stage that may exceed the provisions that AngloGold Ashanti has made. Any underestimated or unidentified rehabilitation costs would reduce earnings and could materially and
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adversely affect the company’sAngloGold Ashanti’s asset values, earnings and cash flows. Further, sudden changes in a life of minelife-of-mine plan or the accelerated closure of a mine may give rise to the recognition of additional liabilities that are not anticipated.
Compliance with “conflict minerals”tailings management requirements and “responsible gold” legislationstandards, and standardspotential liabilities in the event of a failure to timely comply with these requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations and reputation.
Mining and mineral processing operations generate waste rock and tailings. The impact of managing related solid and hazardous materials, including dust and residual chemicals and metals, or a breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant. An incident at AngloGold Ashanti’s operations could result, among other things, in the voluntary or mandatory shutdown of a TSF, enforcement, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. For example, in March 2022, due to a failure of pump equipment at the Cuiabá mine, there was a spill of tailings slurry that reached the Cuiabá stream in Sabará. The relevant local, state and federal authorities were notified, as well as the community in the vicinity of the mine, and corrective actions were taken. Following the incident, the Minas Gerais State Public Prosecutor’s Office filed a civil action against AngloGold Ashanti alleging environmental and socio-economic damages to the community and requesting an injunction suspending operations at the mine pending an independent technical audit of the TSF structure. Settlement of the state’s action required AngloGold Ashanti to engage an independent technical auditor to prepare assessment reports certifying the stability of certain surface operations and environmental controls and to pay approximately $1.4 million for socio-environmental projects and environmental education in the municipality of Sabará and to donate land to a federal organisation for conservation purposes. Incidents at other mining companies' operations could also result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs. See “—AngloGold Ashanti is subject to extensive and rapidly changing environmental, health and safety laws and regulations. Failure to comply with these requirements could result in significant costs.enforcement proceedings, claims, suspension of operations, community protest and/or additional capital or operating expenditures that could adversely impact AngloGold Ashanti’s financial condition or reputation.” and also “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”.
In addition, a new ANM resolution that became effective on 22 February 2022 establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the geotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to embargos at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards relatingcurrently considered best practice.
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Construction at the Calcinados TSF is expected to “conflict minerals”begin later in 2023, and “responsible” gold that include the U.S. Dodd-Frank Act,timeline for completion will be determined once the European proposal for self-certification for importersengineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Organisation for Economic CooperationQueiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
Additionally, public prosecutors have been pursuing an active role in the enforcement of new state and Development Due Diligence Guidelines for Responsible Supply Chainsfederal laws and regulations by way of Minerals from Conflict-Affected and High-Risk Areas,legal action against several mining companies to compel compliance with these new rules. For example, one of the World Gold Council Conflict Free Gold StandardCompany’s Brazilian subsidiaries was involved in such lawsuit in the state of Minas Gerais in relation to the Cuiabá tailings dam, and the London Bullion Market Association Responsible Gold Guidance have been introduced.
AngloGold Ashanti’s ability to replace Mineral Reserve is subject to uncertainty and demonstrate compliance (particularly where standardsrisks inherent in exploration, technical and economic pre-feasibility and feasibility studies and other project evaluation activities as well as competition within the industry for attractive mining properties.
AngloGold Ashanti must continually replace Mineral Reserve depleted by mining and production to maintain or increase production levels in the long term. This process includes exploration activities that are speculative in nature. The ability of AngloGold Ashanti to sustain or increase its present levels of gold production depends in part on the success of its exploration activities and related projects and it may be unable to sustain or increase such production levels.
Project studies and exploration activities necessary to determine the current or future viability of a mining operation, including the estimation of tonnages, grades and metallurgical characteristics of the ore, are often unproductive and unpredictable. Such activities often require substantial expenditure on exploration drilling to establish the presence, extent and grade (metal content) of mineralised material. Following, and in parallel with, ongoing exploration activities AngloGold Ashanti undertakes project studies to estimate the technical and economic viability of mining projects and to determine appropriate mining methods and metallurgical recovery processes. For example, during 2022, AngloGold Ashanti commenced a pre-feasibility study at Silicon and a feasibility study is currently underway at North Bullfrog.
Once mineralisation is discovered, it may take several years to determine whether an adequate Mineral Reserve exists, during which time the economic viability of the project may change rapidly or lack certainty due to court challenges),fluctuations in factors that affect both revenue and may complicate costs, including:
•prevailing and anticipated prices of metals and other commodities, including gold, silver and copper;
•prevailing and anticipated local or foreign currency exchange rates;
•the salerequired return on investment as based on the cost and availability of capital;
•applicable regulatory requirements, including those relating to environmental or health and safety matters;
•recovery rates of gold emanatingand other metals from certain areas. The complexitiesthe ore; and
•capital expenditure and cash operating costs (which may be impacted by inflation).
These estimates depend on assumptions made based on available data during the particular project phase. Mineral Reserve estimates are not precise calculations and depend on the interpretation of limited information on the location, shape and continuity of the mineral occurrence and on available current and historical sampling results. No assurance can be given that Mineral Reserve estimates or other estimates are accurate or that the indicated levels of gold, supply chain, especially as they relate to “scrap”silver, copper or recycled gold,other mineral will be produced. Further exploration and project studies can result in new data becoming available that may change previous or historical Mineral Reserve estimates and impact the fragmentedtechnical and often unregulated supplyeconomic viability of artisanal and small-scale mined gold are such that there may be significant uncertainties at each stageproduction from the project. Changes in the chainforecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of Mineral Reserve resulting in revisions to previous or historical Mineral Reserve estimates. These revisions in Mineral Reserve estimates as well as changes in life-of-mine estimates could also impact depreciation and amortisation rates, asset carrying values and/or estimates for closure, restoration and environmental rehabilitation costs.
AngloGold Ashanti undertakes annual revisions to its Mineral Reserve estimates based upon ongoing exploration and production results, depletion, new geological/geotechnical information, model revisions, revised mine planning, and fluctuations in production, forecasts of commodity prices, economic assumptions and operating and other costs as well as asset sales and acquisitions. These factors may result in reductions in Mineral Reserve estimates, which could adversely affect life-of-mine plans and consequently the provenancetotal value of AngloGold Ashanti’s mining asset base. Mineral Reserve restatements could negatively affect the Company’s results of operations, as well as its financial condition and prospects.
Due to a declining rate of discovery of new gold Mineral Reserve in recent years, AngloGold Ashanti faces intense competition for the acquisition of attractive mining properties. From time to time, AngloGold Ashanti evaluates the acquisition of a Mineral Reserve, development properties or operating mines, either as stand-alone assets or as part of existing companies. For example, AngloGold Ashanti recently increased its mining properties in the Beatty district of southern Nevada through its
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acquisition of Corvus Gold Inc. in January 2022 and Coeur Sterling, Inc. in November 2022. AngloGold Ashanti’s decision to acquire properties is based on a variety of factors, including historical operating results, estimates and assumptions regarding the extent of the gold. existing or potential Mineral Reserve, cash and other operating costs, gold prices, projected economic returns and evaluations of existing or potential liabilities associated with the relevant property and its operations and how these factors may change in the future. Other than historical operating results, these factors are uncertain and could have an impact on revenue, cash and other operating costs, as well as the process used to estimate the relevant Mineral Reserve.
As a result of thethese uncertainties and declining grades, AngloGold Ashanti’s exploration and acquisitions may not result in the process,expansion or replacement of current production, the costsmaintenance of due diligenceits existing Mineral Reserve net of production or yield an increase in Mineral Reserve. AngloGold Ashanti’s results of operations and audit,financial condition are directly related to the success of its exploration and acquisition efforts and the ability to replace or increase the existing Mineral Reserve as it is depleted. If AngloGold Ashanti is not able to maintain or increase its Mineral Reserve, its results of operations as well as its financial condition and prospects could be adversely affected.
Mining is inherently hazardous and the related risks of events that cause disruptions to AngloGold Ashanti’s mining operations may adversely impact the environment or the reputationalhealth, safety or security of our workers or the local community, production, cash flows and overall profitability.
Gold mining operations are subject to risks of defining their productevents that may adversely impact AngloGold Ashanti’s ability to produce gold and meet production and cost targets. These events include, but are not limited to:
•accidents or incidents, including due to human error, during exploration, production, drilling, blasting or transportation resulting in injury, loss of life or damage to equipment or infrastructure;
•air, land and water pollution;
•social or community disputes or interventions;
•security incidents, including the activities of artisanal or illegal miners;
•surface or underground fires or explosions;
•labour force disputes and disruptions;
•loss of information integrity or data;
•mechanical failure or breakdowns and ageing infrastructure;
•failure of unproven or evolving technologies;
•unusual or unexpected geological formations, ground conditions, including lack of mineable face length and ore-pass blockages;
•fall-of-ground accidents in underground operations;
•cave-ins, sinkholes, subsidence, rock falls, rock bursts or landslides;
•failure of mining pit slopes, heap-leach facilities, water or solution dams, waste stockpiles and tailings facility walls;
•flooding or inundation of mine pits;
•safety-related stoppages;
•seismic activity; and
•other natural phenomena, such as floods, droughts or weather conditions, potentially exacerbated by climate change.
Any of these events or incidents could, individually or in the aggregate, have a constituent part as containingmaterial adverse effect on AngloGold Ashanti’s results of operations and financial condition. For example, in the DRC, in December 2022, a “conflict mineral” may be too burdensome forbogger operator was fatally injured when a large rock deflected from an open stope at the company’s customers. Accordingly, manufacturers may decide to switch supply sourcesKibali gold mine which is managed by AngloGold Ashanti’s joint venture partner Barrick Gold Corporation (“Barrick”). Any seismic, flood or to substitute gold with other minerals not covered bysimilar events or incidents that occur in the initiatives. Thisfuture could have a material negative impact on the gold industry, includingadverse effect on AngloGold Ashanti’s results of operations and financial condition.
Mining operations and projects are vulnerable to supply chain disruption such that operations and development projects could be adversely affected by shortages of, as well as theextended lead times to deliver, strategic spares, critical consumables, mining equipment or metallurgical plant.
AngloGold Ashanti’s operations and development projects could be adversely affected by both shortages and long lead times to deliver strategic spares, critical consumables, mining equipment and metallurgical plant, as well as transportation delays. Import restrictions, such as those imposed by the ArgentinianArgentinean government from 2011 to 2015, can also delay the delivery of parts and equipment. In the past, the companyAngloGold Ashanti and other gold mining companies experienced shortages in critical consumables, particularly as production capacity in the global mining industry expanded in response to increased demand for commodities. AngloGold Ashanti has also experienced increased delivery times for these items. Shortages in essential commodities, including, for example, ammonium nitrate, have resulted in unanticipated price increases and production delays and shortfalls, resulting in a rise in both operating costs and in the capital expenditure necessary to maintain and develop mining operations.
Individually, AngloGold Ashanti and other mining companies have limited influence over manufacturers and suppliers of these items. In certain cases, there are a limited number of suppliers for certain strategic spares, critical consumables, mining equipment or metallurgical plant who command superior bargaining power relative to the company. The companyAngloGold Ashanti. AngloGold Ashanti could at times face limited supply or increased lead time in the delivery of such items. For example, during 2012, supply
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Furthermore, supply chains and rates can be impacted by natural disasters, such as earthquakes, extremesevere weather, patternssuch as storms, heavy rainfall and other impacts that may be increasing due to climate change, as well as other phenomena that include unrest, strikes, theft and fires. For example, a three-week transport strike in 2012 delayed the supply of consumables in South Africa. Although potential supply chain disruption in Mali, as a result of the coup d’état and the proliferation of armed combat in 2012 and 2013, were avoided by well-managed consumable stock holding, ongoing instability and armed conflict in the country, even following the peace accord struck in 2015, could present material supply chain difficulties. Moreover, although potential gold doré export disruptions at Geita, which were the result of an attempted gold heist, and in Mali, following the closure of Bamako International Airport, were minimised with the introduction of alternative transportation arrangements, such alternatives may not be available upon the occurrence of similar or more severe situations in the future. In February 2013, a fire destroyed the heavy mining equipment stock of spares and components at the Geita gold mine.mine in Tanzania. If AngloGold Ashanti experiences shortages, or increased lead times in the delivery of strategic spares, critical consumables, mining equipment or processing plant, the companyAngloGold Ashanti might have to suspend some of its operations and its results of operations and financial condition could be adversely impacted.
The Siguiri mine in Guinea was impacted as a result of the Ebola virus outbreak ofoutbreaks since 2014 in Western Africa, where certain crisis management measures were implemented.with the latest outbreak detected in early 2021, which continued until the summer of 2021. See “-AngloGold“—AngloGold Ashanti’s OreMineral Reserve, deposits and mining operations are located in countries that face instability, public health and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.countries”.
Similarly, an outbreak of infectious diseases, a pandemic or other public health threat, such as the outbreak of the SARS-CoV-2 virus responsible for COVID-19 or an outbreak of the Ebola, Marburg or monkeypox virus, or a fear of any of the foregoing, could adversely impact AngloGold Ashanti’s operations by causing supply chain delays and disruptions, import restrictions or shipping disruptions, as well as operational shutdowns (including as part of government-mandated containment measures).For example, in response to the COVID-19 outbreak, several governments imposed significant restrictions on the movement of goods, services and persons (including travel), including nationwide lockdowns of businesses and their citizens (quarantine) and even temporary suspension of mining activities. Such disruptions and other manufacturing and logistical restraints could result in extended lead times in supply and distribution networks, as well as the exercise of force majeure measures, the impacts of which could eventually result in stoppage of mining operations. They could also result in the need to increase inventories on long lead time items and critical consumables and spares which may lead to an increase in working capital. In addition, restrictions in travel, including air travel, and border access may impact AngloGold Ashanti’s ability to source and transport goods and services required to operate mines, transport gold doré to refineries and ship refined gold from refineries as well as increase the cost. AngloGold Ashanti cannot guarantee that its crisis management measures will be adequate, that the supply chain and operations will not be adversely affected by a future epidemic or pandemic outbreaks (such as outbreaks of COVID-19, Ebola, Marburg or other epidemic outbreak andmonkeypox) or that there willwould be no knock-on effectsrelated consequences, such as severe food shortages and social impact. Epidemic-related exportExport restrictions related to any epidemic or pandemic (including as a result of government regulation and prevention measures) could similarly adversely impact AngloGold Ashanti’s financial condition and results of operations.
AngloGold Ashanti’s operations are vulnerable to infrastructure constraints.
Mining, processing, development and exploration activities depend on adequate infrastructure. Reliable rail, ports, roads, bridges, power sources, power transmission facilities and water supply are critical to AngloGold Ashanti’s business operations and affect capital and operating costs. These infrastructures and services are often provided by third parties whose operational activities are outside the company’scontrol of the Company.
Interferences in the maintenance or provision of infrastructure, including unusual weather phenomena, sabotage and social unrest could impede AngloGold Ashanti’s ability to deliver its products on time and adversely affect its business, results of operations and financial condition.
Establishing infrastructure for AngloGold Ashanti’s development projects requires significant resources, identification of adequate sources of raw materials and supplies, and necessary cooperation from national and regional governments, none of which can be assured.
AngloGold Ashanti has operations or potential development projects in countries where government-provided infrastructure is inadequate and regulatory regimes for access to infrastructure are uncertain, which could adversely impact the efficient operation and expansion of its business. AngloGold Ashanti may not secure and maintain access to adequate infrastructure in the future, or it may not do so on reasonable terms which may adversely affect AngloGold Ashanti’s business, results of operations and financial condition.
AngloGold Ashanti faces strong competition and industry consolidation.
The mining industry is competitive in all of its phases. AngloGold Ashanti competes with other mining companies and individuals for the acquisition of mining and exploration assets, for mining claims and leases on exploration properties, as well as for specialised equipment, components and supplies necessary for exploration, development and mining of the relevant mining or
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exploration asset. These competitors may have greater financial resources, operational experience and technical capabilities than AngloGold Ashanti and may also be lower on the industry cost curve or have lower cost of capital and better access to scarce capital than AngloGold Ashanti. Competition may increase AngloGold Ashanti’s cost of acquiring suitable claims, properties and assets, which could have a material adverse effect on its financial condition and results of operations.
AngloGold Ashanti’s mineral deposits, OreMineral Reserve and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries.
Past experience demonstrates that political, tax and economic laws and policies in countries in which AngloGold Ashanti operates can change rapidly. Examples include the 2012 coup d’état and subsequent fighting in Mali, the foreign currency regulations that were imposed from 2011 to 2015 and since September 2019 in Argentina and the ban on gold ore exports announced by the Tanzanian government in March 2017. As mining assets are fixed and largely immovable, the adverse impacts of such changes may be unavoidable and immediate.
Any existing and new mining, exploration operations and projects that the companyAngloGold Ashanti carries out are subject to various national and local laws, policies and regulations governing the ownership, prospecting, development and mining of OreMineral Reserve, taxation and royalties, exchange controls, import and export duties and restrictions, investment approvals, employee and social community relations and other matters.
In many of the countries in which AngloGold Ashanti operates, there is an ongoing focus by governments seeking greater economic benefit and increased financial and social benefits from extractive industries and mining in particular. This entails the review of mining codes and stability agreements, which were in many cases designed under particular economic conditions, and the formulation or amendment of laws, policies and regulations relating to issues such as mineral rights and asset ownership, royalties, taxation and taxation disputes, “windfall” or “super” taxation, non-recovery of taxation refunds, import and export duties, currency transfers, restrictions on foreign currency holdings and repatriation of earnings. The laws, policies and regulations are increasingly uncertain, changing and generally require progressively higher payments to governments, notably in the form of increased royalties and taxes, mandated beneficiation, export levies and increasing or retaining state or national ownership of resources.resources (including by way of free-carried interests in mining companies for governments). For example, the royalty rate applicable to gold increased from 2.5 percent to 3.5 percent in 2018 in the DRC and from four percent to six percent in Tanzania in 2017. In particular, changes to the fiscal terms governing AngloGold Ashanti’s operations may have a material adverse impact on the company’sits results of operations or financial condition, threaten the viability of existing operations, and discourage future investments in certain jurisdictions. This may therefore have an adverse impact on the company’sAngloGold Ashanti’s ability to access new assets and potentially reduce future growth opportunities.
For example, in July 2017, the Governmentgovernment of Tanzania (GoT) enacted three pieces of new legislation which purportpurports to make a number of changes to the operating environment for Tanzania’s extractive industries, including its mining sector. These changes include, among others:other things, the right for the GoTgovernment of Tanzania to renegotiate existing mining development agreements at its discretion;discretion and the provision to the GoTgovernment of Tanzania of a non-dilutable, free-carried interest of no less than 16 percent in all mining projects; the right for the Got to acquire up to 50 percent of any mining asset commensurate with the value of tax benefits provided to the owner of that asset by the GoT; removal of the refund of input VAT incurred; an increase in the rate of revenue royalties from four percent to six percent; requirements for local beneficiation and procurement; and constraints on the operation of off-shore bank accounts. AngloGold Ashanti and other major mining companies are seeking a constructive dialogue with the GoT regarding this legislation and its impact on existing mining agreements. As a precautionary step to safeguard its interests, AngloGold Ashanti has commenced international arbitration proceedings against the GoT in connection with the enactment of this legislation, as first announced in July 2017.projects. See “Item 8A: Legal Proceedings”. There can be no assurance that the company will be successful in safeguarding its interests in the arbitration action and these changes and any future amendments to the mining legislation could have further adverse effects on the company’s financial condition and profitability.
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(the “Obuasi TCA”) with the government of Ghana. As a result of the parliamentary ratification of the Obuasi DA and Obuasi TCA in June 2018, the 2004 Ghana has constituted a review committeeStability Agreement ceased to review and re-negotiate stability agreements with mining companies.apply to the Obuasi mine but continued to apply to the Iduapriem mine until it expired in April 2019. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti is waiting to be invitedMine—Africa Region—Ghana”. Any future amendments to participate in negotiations with the Ghanaian review committee. The outcomemining regime, negotiation of these negotiationsnew agreements, or attempts or failures to renegotiate existing agreements on the same favourable conditions or at all may have a material adverse effect on the company’sAngloGold Ashanti’s results of operations or financial condition.
In addition, some of AngloGold Ashanti’s mineral deposits and mining and exploration operations are located in countries that are experiencing social and political instability as well as economic uncertainty. For example, in Guinea, a military coup in September 2021, during which the president was detained, resulted in political instability. Furthermore, political instability and related events in Mali led to the president formally resigning in August 2020 after being detained by a group of soldiers, which was followed by a second military coup in May 2021. The political instability in Mali may negatively affect AngloGold Ashanti’s ability to consummate the disposal of its interests in the Yatela joint venture, including the terms, fulfilment of conditions precedent or timing thereof. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Mali”. In these countries experiencing social and political instability as well as economic uncertainty, there is a risk that political influence may delay or hinder strategic imperatives for cost rationalisation especially in the areas of procurement and labour reductions. In addition, allegations of corruption in Brazil, the DRC and Guinea against top political and industry leaders have increased political instability and distrust, and effortsdistrust. Efforts at political and economic reformreforms in Brazil and such other countries may lead to increased instability. Additionally, the political rhetoric and incentives prior to nationalFurthermore, elections in Ghana latethe countries in 2016which AngloGold Ashanti operates may have influencedbe accompanied by social, political and slowed the national response to the illegal mining at Obuasi.economic uncertainty and instability. The high levels of unemployment, poverty and inequality remain in each of these countries, further increasing the risk of social instability that will continue to negatively impact their economies, business and the mining industry.
Mining is a long-term activity and assets may be located in jurisdictions with elevated risk. Political instability and the resulting unstable business environment in such countries in which companies operate may discourage future investment in those jurisdictions, and may have an adverse impact on the company’sAngloGold Ashanti’s ability to access new assets, potentially reducing growth opportunities.
AngloGold Ashanti is subject to an uncertain tax environment. Increased taxes are expected in most countries of operation. Changes in tax laws could result in higher tax expense and payments and could materially impact AngloGold Ashanti’s tax receivables and liabilities as well as deferred tax assets and deferred tax liabilities. In addition, the uncertain tax environment in some regions in which AngloGold Ashanti operates could limit AngloGold Ashanti’sits ability to enforce its rights. As a global company, AngloGold Ashanti conducts its business in countries subject to complex tax rules, which may be interpreted in different ways. The interpretation and application of tax rules by tax authorities and courts in the countries in which the Company operates may be uncertain and unpredictable and could result in higher tax expense and payments than anticipated, even if such tax exposure is considered to be remote by the Company. Further interpretations or developments of tax regimes may affect the company’sCompany���s tax liability,liabilities, return on investments and business operations. AngloGold Ashanti is regularly examined bythe subject of tax authoritiesaudits in its various jurisdictions of operation.
In Guinea, Mali, DRC and Tanzania, AngloGold Ashanti is due refunds of input tax and fuel duties which have remained outstanding for periods longer than those provided for in the respective statutes. For example,In Tanzania, AngloGold Ashanti calculates that net overdue recoverable value addedinput tax, fuel duties and appeal deposits (after discounting provisions) of $132$196 million are(2021: $234 million) (including $153million (2021: $142 million) of value added tax (“VAT”) input credit refunds) were owed to AngloGold Ashanti as of 31 December 2022 and held by the Tanzanian government and it is not certain when, if ever,and when AngloGold Ashanti will be refunded this amount.
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these amounts.See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Tanzania”. In the DRC, AngloGold Ashanti calculates that its attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to it by the DRC government amounted to $86million (2021: $73 million) as of 31 December 2022. Whilst an agreement was reached with the DRC government on the reimbursement of the refundable VAT in the last quarter of 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of AngloGold Ashanti’s VAT receivables in the DRC. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)”. Similarly, as a general matter, it is not certain when or whether AngloGold Ashanti will be refunded all tax-related amounts due from any other government.
The countries in which the companyAngloGold Ashanti operates may also introduce export restrictions, exchange controls, impose restrictions to source materials and services locally, or impose other similar restrictions that hinder foreign companies’ operations within such countries.countries as well as adversely affect their results of operations and financial condition. For example, in March 2017, the Tanzanian government announced an immediate ban on gold, silver, copper and nickel ore exports, in an attempt to ensure that mineral value-addition activities would be carried out in-country. This regulatory change does not currently impactFurther, in 2018, the Geita mineDRC government imposed new exchange control rules, as part of its reform of the DRC’s mining code, which resulted in AngloGold Ashanti’s inability to repatriate cash from its DRC operations. The Company’s attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $40 million (2021: $499 million) as of 31 December 2022. In this respect, AngloGold Ashanti’s temporary or Tanzanianpermanent inability to repatriate cash from the countries in which AngloGold Ashanti operates could have a material adverse effect on the Company’s results of operations asand financial condition. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the company does not export unrefined or refractory ore out of Tanzania. Congo (DRC)”.
Additionally, from 2011 to 2015, the ArgentinianArgentinean government introduced stricter exchange controls and related protracted approval processes which limited the company’sCompany’s ability to repatriate dividends from its ArgentinianArgentinean subsidiaries. In October 2011,September 2018, export duties were re-imposed by the ArgentinianArgentinean government, decreed that mining, oilwhich are currently set at eight percent for certain goods, including doré bars and energygold alloys. AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million (2021: $19 million) as of 31 December 2022. These re-imposed export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to Cerro Vanguardia S.A. (“CVSA”) and could have a material adverse impact on the Company’s results of operations and financial condition. Furthermore, in September 2019, the Argentinean government re-established foreign exchange and export controls. CVSA had a cash balance equivalent to $116 million (2021: $139 million) at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies must repatriate export earnings and additionally,in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars required authorisationin order to distribute offshore dividends. In December 2022, the Argentinean Central Bank approved the payment of $17 million (equivalent) to AngloGold Ashanti. The remaining approvals are pending. In addition, increased socio-political tensions and hyper-inflation over the past few years have greatly increased the country risk which in turn has lowered the potential future earnings of AngloGold Ashanti’s investment in CVSA. Argentina’s economy continues to suffer from the Argentinian central banka persistent recession coupled with high inflation (94.8 percent in 2022) and the purpose for which the currency would be used hadwidespread unemployment (an estimate of approximately seven percent in 2022). See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to be stated. In May 2012, the Argentine Mining Secretariat issued new regulations requiring mining companies in Mine—Americas—Argentina to boost their domestic purchases of equipment and services and mining companies were required to resort exclusively to locally established suppliers for their export-related shipping and logistics operations. While the new government, elected in November 2015, started a process to ease these controls and return to an open economy and free market, not all restrictions had been lifted as of March 2017.”.
If, in one or more of the countries in which it operates, AngloGold Ashanti were not able to obtain or maintain necessary permits, authorisations or agreements to implement planned projects or continue its operations under conditions or within timeframes that make such plans and operations economically viable, or if the applicable legal, ownership, fiscal (including all royalties and duties), exchange control, employment, environmental and social laws or regimes change materially, or if the governing political authorities change resulting in amendments to such laws and regimes, this could have a material adverse effect on AngloGold Ashanti’s operating results, financial condition, and, in extreme situations, on the viability of an operation. The risk is particularly acute in South Africa. See “-AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights” and “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine”.
“—AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.
The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti be foundAshanti.
The primary areas of focus in breach its obligationsrespect of occupational health of employees within the Company’s operations are noise-induced hearing loss and occupational lung diseases (“OLD”), which include pulmonary diseases such as tuberculosis from various causes and silicosis in individuals exposed to complysilica dust, and which require active dust management strategies in underground operations. If the costs associated with the MPRDA, Revised Mining Charter, the Reviewed Mining Charter (if implemented)providing occupational health services, implementing dust control measures or any future amendments to either the Revised Mining Chartersupplying protective equipment increase significantly beyond anticipated or the Reviewed Mining Charter, it may be compelled to conduct additional BEE transactions or its mining rights in South Africa could be suspended or cancelled by the Minister and it may be unable to obtain any new mining rights. Any such suspension or cancellationbudgeted amounts, this could have a materialan adverse effect on AngloGold Ashanti’s results of operations and financial condition. Actual and alleged health and safety incidents or breaches of standards may also adversely impact the Company’s reputation.
In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged OLD with two certified industry-wide classes, i.e., a Silicosis Class and a Tuberculosis Class. The settlement agreement in relation to this silicosis and tuberculosis class action came into effect in December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. As of 31 December 2022, AngloGold Ashanti has recorded a provision of $35 million (2021: $50 million and 2020: $61 million) to cover the estimated settlement costs and related expenditure of the silicosis
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litigation. Although significant judgement was applied in estimating the costs incurred to settle the silicosis and tuberculosis class action claim, the final costs and related expenditure may differ from current cost estimates. In addition, and as discussed in more detail in “Item 4B: Business Overview - The Regulatory Environment Enabling AngloGold Ashanti to Mine”, South Africa recently enactedeven though management believes the BBBEE Amendment Act, which amended the Broad-based Black Economic Empowerment Act 53 of 2003. Thereassumptions are several areas of potential conflict between the BBBEE Amendment Act and the Revised Mining Charter. The BBBEE Amendment Act became effective on 24 October 2016 and is understood to override any conflicting law, including the Revised Mining Charter. Although the Draft 2016 Mining Charter seeks to align the Revised Mining Charter with the BBBEE Amendment Act, similar regulatory conflicts and uncertainty may continue to prevailappropriate, changes in the future.
AngloGold Ashanti also faces certain risks in dealing with HIV/AIDS and with tropical disease outbreaks such as malaria, and other diseases which may have an adverse effect on its results of operations and financial condition. Malaria and other tropical diseases pose significant health risks at all of the Company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women in these areas but also gives rise to fatalities and absenteeism in adult men. Other conditions such as heart disease, chronic diseases and obesity are also of increasing incidence and concern. Such diseases impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. Any current or future medical programme may not be successful in preventing or reducing the infection rate among AngloGold Ashanti’s employees or in affecting consequent illness or mortality rates. AngloGold Ashanti may incur significant costs in addressing these issues in the future, which could also adversely impact the Company’s results of operations and financial condition.
AngloGold Ashanti may face additional health care challenges as a result of other public health crises, pandemics or epidemics, which may significantly impair the health or mobility of the Company’s labour force and, as a result, AngloGold Ashanti’s ability to maintain its production levels or operations. Uncertainties remain with respect to the possibility of the emergence, or the re-emergence, of infectious diseases (such as COVID-19, Ebola, Marburg or monkeypox) that may lead to excessive absenteeism in, or travel restrictions impacting, the Company’s workforce and may lead to operational disruptions, including a halt or significant slowdown in mining operations. A curtailment or suspension at AngloGold Ashanti’s mining operations in certain or all regions due to full or partial shutdowns, either those requested or mandated by governmental authorities or otherwise elected by the Company, including for safety or staffing reasons, may have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition.
31 December 2022, AngloGold Ashanti has operations in several countries where ownershiprecorded a provision of land is uncertain$66million (2021: $71 million and where disputes may arise in relation2020: $77 million) to ownership. Certaincover the estimated contribution costs of the company’s properties may be subject topost-retirement medical scheme for such current and retired employees. In the rights orevent that the asserted rights of various community stakeholders, including indigenous people. The presence of those stakeholders may have an impactrequired contribution costs ultimately exceed the estimates on AngloGold Ashanti’s ability to develop or operate its mining interests. For example, in Australia,which the Native Title Act (1993) provides forrecorded provision is based, the establishment and recognition of native title under certain circumstances. In South Africa, the Extension of Security of Tenure Act (1997) and the Restitution of Land Rights Act (1994) provide for various landholding rights. Such legislation is complex, difficult to predict and outside of the company’s control, and could negatively affect the business results of new or existing projects. In Ghana in February 2012, the company negotiated the relocation of the Sansu Community, which lies within its local mining concession; the cost of this relocation was approximately $30 million. Where consultation with stakeholders is statutorily or otherwise mandated, relations may not remain amicable and disputes may lead to reduced access to properties or delays in operations.
AngloGold Ashanti’s inability to retain its senior management may have an adverse effect on its business.
AngloGold Ashanti’s success depends largely upon the continued service of its senior management, including its chief executive officer, its chief financial officer, the executive officers at each of its business divisions and the general managers at its mines. The departure of one or more members of AngloGold Ashanti’s senior management may have an adverse effect on its business, results of operations and financial condition. In addition, the loss of one or more members of the senior management team, coupled with any reduced attractiveness of the gold mining sector, could lead to the departures of other members of the management team. The inability of AngloGold Ashanti to retain its senior management could disrupt its operations, and have a material adverse impact on its business, results of operations and financial condition.
AngloGold Ashanti competes with mining and other companies for key human resources with critical skills and its inability to retain key personnel could have an adverse effect on its business.
AngloGold Ashanti competes on a global basis with mining and other companies to attract and retain key human resources at all levels with the appropriate technical skills and operating and managerial experience necessary to operate and supervise its business. This is exacerbated by the global shortage of persons with critical mining skills, including geologists, mining engineers, metallurgists and skilled artisans. Furthermore, the often remote locations of mining operations may make the mining industry unattractive to
potential employees. Changes in taxation and the regulatory environment where AngloGold Ashanti operates may also impact the company’sCompany’s ability to attract and retain key personnel, especially those from abroad.
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For example, despite the scale of mining activities in South Africa, where, in addition to the impacts of global industry shortages of skilled labour, AngloGold Ashanti is required to achieve employment equity targets of participation by HDSAs in management and other positions. AngloGold Ashanti competes with all companies in South Africa to attract and retain a small but growing pool of HDSAs with the necessary skills and experience. AngloGold Ashanti has historically faced difficulty recruiting and retaining young graduates and qualified mid-level management in South Africa and may encounter greater difficulties in the future as the government attempts to impose increasingly stringent HDSA participation requirements. See “-AngloGold Ashanti’s mining rights in themany African countries, in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights” and “Item 4B: Business Overview-The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Recruitmentrecruitment of skilled personnel has also been challenging in Continental Africaas the local development of critical skills struggles to match an increasing demand. Recruitment remains difficult due to university offerings that areand other training institution offerings often not well-suited to the specific needs of the mining industry, as well as other factors such as language barriers and low literacy skills.
Other regions experience similar challenges. For example, while there is a shortagehigh concentration of skillsspecialised and intenseskilled mining workers in Australia and Brazil, there is significant competition between mining companies.
for such personnel in those markets. Additionally, the companyCompany may incur significant costs to builddevelop talent, capacity and expertise across its global operations. Despite AngloGold Ashanti’s investments, the companyCompany may not be able to retain and attract sufficient skilled and experienced employees in all areas of the business. Should it fail to do so or lose any of its key personnel with critical skills, business and growth prospects may be harmed and this could have an adverse impact on AngloGold Ashanti’s results of operations and financial condition.
Labour costs represent a substantial proportion of the Company’s total operating costs and at many operations in the Americas, constitute approximately 40 to 45 percent of the operations’ operating costs. Absent any simultaneous increase in productivity, any change to the Company’s wage agreements or other factors that could increase labour costs may have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
AngloGold Ashanti’s results may be further impaired if the Company incurs penalties for failing to meet standards set by labour laws regarding workers’ rights or incurs costs to comply with new labour laws, rules and regulations. For example, Ghanaian law contains broad provisions requiring mining companies to recruit and train Ghanaian personnel and to use the services of Ghanaian companies. Penalties and compliance costs, as well as increased costs due to laws and regulations less favourable to employers, could have a material adverse effect on the Company’s results of operations and financial condition.
The use of contractors at certain of the company’sCompany’s operations may expose AngloGold Ashanti to delays or suspensions in mining activities and increases inincreased mining costs.
AngloGold Ashanti uses contractors at certain of its operations to mine and deliver ore to processing plants as well as for other purposes. At mines employing mining contractors, contracting costs represent a significant proportion of the total operating costs of these operations. For example, increased contractor rates at the Sadiola mine in Mali contributed to a significant rise in total cash costs in the final quarter of 2011. Increased contractor costs at Sunrise Dam in Australia and Geita in Tanzania contributed to higher cash costs in the first quarter of 2012.
AngloGold Ashanti’s operations could be disrupted, resulting in additional costs and liabilities, if the mining contractors at affected mines have financial difficulties, or if a dispute arises in renegotiating a contract, or if there is a delay in replacing an existing contractor and its operating equipment to meet business needs at expected cost levels. Increases in contract mining rates, in the absence of associated productivity increases, willmay also have an adverse impact on the company’sCompany’s results of operations and financial condition. For example,In addition, restrictions on 13 October 2012, AngloGold Ashanti terminated the underground development contract withtravel imposed by governments as a third-party contractor at the Obuasi mine in Ghana. The costsresult of the termination amounted to $17 million. On 10 February 2014 workers employed byoutbreak of infectious diseases, a contractor at Sadiolapandemic or other public health threat, such as the outbreak of the SARS-CoV-2 virus responsible for COVID-19, may prevent mining contractors and Yatela went on a five-day strike demanding improved redundancy payments. See “-Labour unrest, activism and disruptionsother employees from reaching AngloGold Ashanti’s mining sites which could have a materialan adverse effect on AngloGold Ashanti’s resultsthe operations of operations and financial condition”. Furthermore disagreements over costs with contractors at Siguiri in Guinea and Iduapriem in Ghana resulted in a dispute in 2015.the affected mines.
Contractor disputes can also arise after the termination of the contractual relationship or the sale of the applicable mine. For example, in 2021, the company is currently involved inCompany settled arbitration proceedings with contractors in Ghana with regard to its Obuasi mine and in the United States with regard to its former Cripple Creek & Victor mine. See “Item 8A: Legal Proceedings”.
In addition, AngloGold Ashanti’s reduced control over those aspects of operations which are the responsibility of contractors, their failure to comply with applicable legal, human rights and regulatory requirements, or their inability to manage their workforce or provide high quality services or a high level of productivity could adversely affect AngloGold Ashanti’s reputation, results of operations and financial condition, and may result in the company’sCompany’s incurrence of liability to third parties due to the actions of contractors.
Some of AngloGold Ashanti’s indebtednessmineral deposits and mining and exploration operations are located in countries that are experiencing political and economic instability and other uncertainty.
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Certain of the countries in which AngloGold Ashanti has mineral deposits or mining or exploration operations, including the DRC, Guinea, Ghana, Tanzania, Colombia and Brazil, have in the past experienced, and in certain cases continue to experience, a difficult security environment. In particular, various illegal groups active in regions in which the Company is present may pose a credible threat of organised crime, military repression, terrorism, civil unrest and disturbances, sabotage, extortion and kidnapping, which could have an adverse effect on its operations in these and other regions.
Attacks on mining companies (for example, attacks targeting gold rooms where smelted gold bars are stored before being transported to other facilities) have also been occurring over the last couple of years, especially in Brazil, and the risk of future attacks remains a threat and could adversely impactaffect the Company’s activities.
Intrusions onto AngloGold Ashanti’s tenement and operational areas, including artisanal and illegal mining-related activities in particular, continue to be a challenge. The most significant security challenges remain in Guinea, Ghana and Tanzania, in areas where there is endemic poverty, high levels of unemployment and an increased level of organisation and funding of criminal activity. See “—Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the Company’s business, have adverse environmental, health, safety and security impacts, and expose the Company to liability”. If the security environment surrounding AngloGold Ashanti’s operations that are most exposed to these challenges deteriorates, employee, third party and community member injuries and fatalities could also increase. Any such increase could disrupt the Company’s operations in certain mines and adversely affect its business.
Furthermore, AngloGold Ashanti continues to experience strained relationships with certain of its host communities. AngloGold Ashanti operates in several regions where poverty, unemployment and the lack of access to alternative livelihoods mean that the creation and distribution of economic benefit from mining operations is a significant area of focus for community and government. AngloGold Ashanti has also been publicly accused of inadequate resettlement practices at its Siguiri operation in Guinea by local and international NGOs, which poses reputational risk.
In addition, infectious diseases, such as COVID-19, Ebola, Marburg or monkeypox, are also a threat to the stability of some of the countries in which AngloGold Ashanti operates, where limited local health infrastructure weakens governments’ ability to manage and contain outbreaks effectively, in particular prolonged or sustained outbreaks. For example, during August 2014, cases of the Ebola virus were reported in the town of Siguiri, which is located near AngloGold Ashanti’s Siguiri mine in Guinea. AngloGold Ashanti implemented certain restrictions on travel to and from the Siguiri mine as a precaution. As the Ebola virus caused significant disruptions in the Company’s exploration activities, particularly relating to field mapping and geophysics, AngloGold Ashanti also suspended its brownfields work programme and greenfields field work in the middle of 2014. A new Ebola outbreak was detected in early 2021 in Guinea, which continued until the summer of 2021. The DRC also experienced an outbreak of the Ebola virus at the end of 2021 and during the summer of 2022. Similarly, AngloGold Ashanti operates mines in regions that have had gross borrowingsconfirmed cases of $2.190 billion (2016: $2.101 billion)COVID-19 and resulting deaths. In some countries, national or state governments declared a state of emergency empowering such governments to take actions or impose restrictions to contain the virus that otherwise would not be permitted under the applicable legal and regulatory framework. Governments also imposed certain restrictions on travel or business activities as protective measures, including nationwide lockdowns (quarantine), excluding all finance leases.which have disrupted, and may in the future if reimposed disrupt, the Company’s activities and operations and even lead to a full or partial shutdown of the Company’s mining operations in those countries. Any such emergency governmental action may have a material adverse effect on AngloGold Ashanti’s operating and financial results, which may result in a negative impact on the Company’s cashflows, funding requirements and overall liquidity.
Labour unrest, activism and disruptions (including protracted stoppages) could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
AngloGold Ashanti’s indebtednessemployees in Ghana, Guinea, Tanzania, Brazil and Argentina are highly unionised and unions are active at some of the Company’s other operations. Trade unions working with communities and NGOs, therefore, have a significant impact on the general labour relations environment, including labour relations at an operational level and operational stability at times. Unions are characterised by their robust engagement with the Company, both in the context of existing collective bargaining structures to improve and advance conditions of employment, and in the context of changing economic conditions, downsizing and downscaling of operations. These factors expose the Company’s operations to potential strike action and work stoppages. Any future labour unrest and disruptions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition. For example, at Siguiri in Guinea, local community protests related to employment demands led to mining disruptions and the temporary suspension of mining activities during the month of July 2022.
Unions are also increasingly affiliated to global union federations and championing broader political, economic and social issues such as carbon emissions, environmental issues, health and safety, human rights, job losses, unemployment and restructuring, gender and inclusion issues, and migrant labour, as rallying points. Rolling mass action, picketing, protests and community involvement may create safety, security and related risks to the Company and its assets. Future disruptions, strikes, and protest
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actions cannot be excluded and may have a material adverse effect on the Company’s results of operations and financial condition, especially if these actions have a long duration. Furthermore, IndustriALL, representing more than 50 million workers globally, is expected to continue its attempts to enter into a global framework agreement with mining and resource companies. A global framework agreement will expose AngloGold Ashanti to the risk of standardisation and equalisations of labour terms and conditions across the Group, irrespective of the peculiar conditions applicable in the various jurisdictions in which the Group operates. Any labour unrest and disruptions caused by such international trade unions could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
Artisanal and illegal mining occurs on AngloGold Ashanti’s properties, which can disrupt the Company’s business, have adverse environmental, health, safety and security impacts, and expose the Company to liability.
Artisanal and illegal miners are active on, or adjacent to, at least eight of AngloGold Ashanti’s properties, which at times may lead to interference with the Company’s operations and results in conflict that presents a security threat to property and human life. AngloGold Ashanti’s operations and projects affected and potentially at risk by artisanal and/or illegal small-scale mining are mainly situated in Guinea, Ghana, Tanzania and Brazil. Artisanal and illegal small-scale mining is associated with a number of negative impacts, including environmental degradation, flouting of land rights, poor safety practices, erosion of civil society, human rights abuse and funding of conflict. The environmental, social, safety and health impacts of artisanal mining are frequently attributed to formal mining activity, and it is often assumed that artisanally-mined gold is channelled through large-scale mining operators, even though artisanal and large-scale miners have distinct supply and distribution chains. These misconceptions impact negatively on the reputation of the industry.
The activities of the illegal miners, which include theft and shrinkage, could cause damage to AngloGold Ashanti’s properties, as well as impacts to surface water, pollution, disruptions to previously rehabilitated areas, underground fires, or personal injury or death, for which AngloGold Ashanti could potentially be held responsible. Illegal mining could also result in the depletion of mineral deposits, potentially making the future mining of such deposits uneconomical. The presence of illegal miners could lead to project delays and disputes regarding the development or operation of commercial gold deposits. In addition, illegal mining could lead to an increase in the level of organisation and funding of criminal activity around some of the Company’s operations. The most significant security challenges have occurred in Guinea, Ghana and Tanzania in areas where there is endemic poverty and high levels of unemployment.
More generally, illegal mining and theft could also result in lost gold Mineral Reserve, mine stoppages, and have other material adverse effects on AngloGold Ashanti’s results of operations or financial condition.
AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights.
AngloGold Ashanti’s right to own and develop Mineral Reserve and deposits is governed by the laws and regulations of the jurisdictions in which the mineral properties are located. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”. Currently, a significant portion of AngloGold Ashanti’s Mineral Reserve and deposits are located in countries where mining rights could be suspended or cancelled should it breach its obligations in respect of these rights.
In each of the countries in which AngloGold Ashanti operates, the formulation or implementation of government policies on certain issues may be unpredictable. This may include changes in laws relating to mineral rights, ownership of mining assets and the right to prospect and mine, and in extreme cases, nationalisation, expropriation or nullification of existing concessions, licences, permits, agreements and contracts.
Any existing and new mining and exploration operations and projects are subject to various national and local laws, policies and regulations governing the ownership and the right to prospect or mine or develop proposed projects. For more details on the risks surrounding ownership of mining assets, see “—Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge” and “—AngloGold Ashanti’s mineral deposits, Mineral Reserve and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”.
Project implementation delays could result in licences not being renewed and the loss of mining rights. Some of AngloGold Ashanti’s mining concessions, authorisations, licences and permits are subject to expiry, limitations on renewal and various other risks and uncertainties.
In addition, any dispute with governments or other stakeholders, including labour unions, involving one of AngloGold Ashanti’s operations, as a result of rationalisation efforts or otherwise, could negatively affect AngloGold Ashanti’s relationship with such government or stakeholders in respect of other operations within the same country, which could result in adverse consequences, including unfavourable regulatory action, claims and labour disputes. Such adverse consequences could be exacerbated due to the holding Company structure of AngloGold Ashanti’s subsidiaries in some of the countries in which it operates.
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In Colombia, a government agency grants exclusive concession contracts for exploration and development which contain specified timelines for the completion of the various phases of a mining project. The Company must comply with these timelines unless performance is suspended, for example, due to force majeure or these timelines are extended or modified. If AngloGold Ashanti does not comply with the specified timelines for the completion of the various phases of a mining project, it may be found in breach of its concession contract or mining licence and such breach could constitute grounds for the mining authority to terminate such concession contract or mining licence. Force majeure was declared at the La Colosa project by the Colombian mining authority, stopping all activities, pending issuance of permits required to continue the next phase of operations. During the period when force majeure is in force, the specified timelines for completing the various phases of the mining project under the concession contract are suspended. The force majeure has been extended multiple times and is now expected to expire in June 2023, after which such declaration will once more need to be extended in case the relevant permits have not been granted. However, there can be no guarantee that such declaration, if required to be extended, will be extended at that time. Force majeure generally remains in force as long as the underlying circumstances which led to its declaration persist. See also “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia”.
AngloGold Ashanti’s insurance does not cover most losses caused by the risks described in this section. See “—The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability”.
If AngloGold Ashanti is not able to obtain or maintain necessary permits, authorisations or agreements to prospect or mine or to implement planned projects, or continue its operations, or comply with all laws, regulations or requirements, or do so within timeframes that make such plans and operations economically viable, or if the laws impacting the Company’s ownership of its mineral rights or the right to prospect or mine change materially, or if governments increase their ownership in the mines or nationalise them, AngloGold Ashanti’s results of operations and financial condition could be adversely affected. In addition, such challenges and difficulties may negatively affect the outcome of the Company’s project studies, which could, in some cases, lead to a reduction in its Mineral Resource and Mineral Reserve, which may be significant.
AngloGold Ashanti may also prove unable to deliver on production targets, including in potentially critical areas, as well as on the timely, cost-effective and successful execution, including ramping-up, of key capital projects. For example, Colombia is an untested jurisdiction for the Company, so permitting, licensing, stakeholder expectations and demands and other external factors, including with respect to the Quebradona project, could affect timelines and cause capital overruns. Unforeseen difficulties, delays or costs may adversely affect the successful implementation of the Company’s business strategy and projects, and such strategy and projects may not result in the anticipated benefits, which could have a material adverse effect on its flexibilityresults of operations, financial condition and prospects.
Title to conduct business. For example, the companyAngloGold Ashanti’s properties may be requireduncertain and subject to use a large portion of its cash flow to pay the principal and interest on its debt, which will reduce funds available to finance existing operations and the development of new organic growth opportunities and further acquisitions. In addition, under the terms of the company’s borrowing facilities from its banks, challenge.
AngloGold Ashanti has operations in several countries where ownership of land is obligeduncertain and where disputes may arise in relation to meet certain financial and other covenants.ownership. Certain of AngloGold Ashanti’s properties may be subject to the rights or the asserted rights of various community stakeholders, including indigenous people. The presence of those stakeholders may have an impact on AngloGold Ashanti’s ability to continuedevelop or operate its mining interests. Title legislation is complex and difficult to meet these covenantspredict and disputes or failure to service its debtmaintain title could negatively affect the business results of new or existing projects.
For example, in Australia, the Native Title Act 1993 (Cth) provides for the establishment and recognition of native title under certain circumstances. Once a native title claim is registered, the native title party has a right to negotiate prior to the grant of certain mining tenements within the native title claim area. Registration of a native title claim, or a determination of native title, does not affect operations on mining tenements that were validly granted prior to the registration of the native title claim, although registered or determined native title holders will dependordinarily have a right to claim compensation from the relevant Commonwealth or State government in respect of the impact of the tenement on its future financial performance, which willtheir property rights. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia”.
Title to AngloGold Ashanti’s properties, particularly undeveloped ones, may also be defective or subject to challenge. Title insurance generally is not available, and title review does not necessarily preclude third parties from contesting ownership. The precise area and location of the Company’s claims may be in doubt and concessions granted under various titles in a single area may turn out not to be perfectly contiguous, leaving title to areas between concessions open to challenge. Accordingly, AngloGold Ashanti’s mineral properties may be subject to prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, its operating performance as well as by financialamong other things, undetected defects. Further, title to the Company’s properties depends in some cases upon compliance with complex statutes and other factors,regulations, including in particularthose imposing periodic claim maintenance requirements. Failure to strictly comply with these requirements could invalidate the gold price, certain of which are beyond its control.Company’s title to such properties, and such defects may not be readily curable.
AngloGold Ashanti expects to have significant financing requirements.
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AngloGold Ashanti’s existing board-approved development projects and exploration initiatives as well as its potential development projects will require significant funding.
The company’sCompany’s capital expenditure plans and requirements are subject to a number of risks, contingencies and other factors, some of which are beyond its control, including volatile or sustained lower gold prices, and therefore the actual future capital expenditure and investments may differ significantly from the current planned amounts.
As a result, new sources of capital may be needed to help meet the funding requirements of these developments, to fund ongoing business activities and to pay dividends. AngloGold Ashanti’s ability to further raise and service significant new sources of capital will be a function of macroeconomic conditions, the condition of the financial markets, future gold prices, the company’sCompany’s operational performance and operating cash flow and debt position, amongstamong other factors. The company’sAngloGold Ashanti’s ability to raise further debt, equity or quasi-equity financing in the future and the cost of such financing will depend on, amongstamong other factors, its prevailing credit rating, which may be affected by the company’sCompany’s ability to maintain its outstanding debt and financial ratios at levels acceptable to the credit ratings agencies, its business prospects, risks relating to the countries in which it operates orand other factors. As a result, in the event of depressed gold prices, unanticipated operating or financial challenges, any dislocation in financial markets (including due to the impact of public health crises, epidemics or pandemics) or new funding limitations, AngloGold Ashanti’s ability to pursue new business opportunities on reasonable terms, invest in existing and new projects, fund its ongoing business activities, exit projects and retire or service outstanding debt and pay dividends could be significantly constrained, all of which could adversely impact the company’sCompany’s results of operations and financial condition.
Sales of large quantities of AngloGold Ashanti’s ordinary shares and American Depository Shares (ADSs), andADSs, or the perception that these sales may occur or other dilution of the company’sCompany’s equity, could adversely affect the prevailing market price of the company’sCompany’s securities.
The bulk of AngloGold Ashanti’s shares are held by a relatively small number of investors. According to information available to the company,Company, AngloGold Ashanti’s five largest shareholders beneficially owned 28.6833.57 percent and the top 10 largest beneficially owned 43.6649.29 percent of AngloGold Ashanti’s ordinary shares as at 31 December 2017.
The market price of the company’sCompany’s ordinary shares or ADSs could also fall as a result of any future offerings AngloGold Ashanti makes of its ordinary shares, ADSs, or securities exchangeable or exercisable for the company’sCompany’s ordinary shares or ADSs, or the perception in the marketplace that these offerings might occur. AngloGold Ashanti may make such offerings, including offerings of additional ADS rights, share rights or similar securities, at any time or from time to time in the future and such offerings could adversely affect the prevailing market price of the company'sCompany's securities.
AngloGold Ashanti may not pay dividends or make similar payments to shareholders in the future.
AngloGold Ashanti pays cash dividends only if there are sufficient funds available for that purpose. Fund availability depends upon many factors, including the amount of cash available, taking into account AngloGold Ashanti’s capital expenditure on existing infrastructure and exploration and other projects. Additionally, under South African law, a company is entitled to pay a dividend or similar payment to its shareholders only if the company meets the solvency and liquidity tests set out in legislation and the company’sits founding documents.
Given these factors, including the capital and investment needs of AngloGold Ashanti, and the board of directors’ discretion to declare a dividend (including the amount and timing thereof), cash dividends may not be paid in the future.
Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment, intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant.
AngloGold Ashanti reviews and tests the carrying amount of its assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company values individual mining assets at the lowest level for which cash flows are identifiable and independent of cash flows of other mining assets and liabilities.
If there are indications that impairment may have occurred, AngloGold Ashanti prepares estimates of a recoverable amount for each group of assets. Expected future cash flows are inherently uncertain and could materially change over time. Recoverable amounts are significantly affected by Mineral Reserve and production estimates, together with economic factors such as spot and forward gold prices and currency exchange rates, as well as discount rates and estimates of costs to produce Mineral Reserve and future capital expenditure. Estimated rehabilitation and closure costs could also materially affect the Company’s financial performance and could result in the need to recognise an impairment charge.
If any of these uncertainties occur, either alone or in combination, management could be required to recognise an impairment, which could have a material adverse effect on the Company’s results of operations and financial condition. For example, during 2022, AngloGold Ashanti recognised impairment losses (net of taxation) of $151 million, $57 million and $38 million in respect of its Córrego do Sítio complex, Cuiabá complex and Serra Grande mine, respectively.
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AngloGold Ashanti does not have full management control over some of its significant joint ventures and other projects. If the operators of these joint ventures or projects do not manage these effectively and efficiently, the Company’s investment in these joint ventures or projects could be adversely affected and its reputation could be harmed.
AngloGold Ashanti’s joint venture at Kibali in the DRC is managed by the Company’s joint venture partner Barrick Gold Corporation (“Barrick”) following the completion of the merger between Randgold Resources Limited and Barrick in January 2019. In addition, certain of AngloGold Ashanti’s exploration joint ventures and projects are managed by the relevant joint venture or project partner. For example, in January 2020, the Company’s joint operation partner B2Gold Corp. assumed the role of manager of the Gramalote project in Colombia, in which AngloGold Ashanti now holds a 50 percent interest.
As AngloGold Ashanti is not the operator of these non-managed joint ventures or projects, the Company cannot ensure that these joint ventures or projects are operated, particularly on a day-to-day basis, in compliance with the standards that AngloGold Ashanti applies to its other operations. If these joint ventures or projects are not operated effectively or efficiently, including as a result of weaknesses in the policies, procedures and controls implemented by AngloGold Ashanti’s joint venture or project partners, the Company’s investment in the relevant joint venture or project could be adversely affected. In addition, negative publicity associated with operations that are ineffective or inefficiently operated, particularly relating to any resulting accidents or environmental incidents, could harm the Company’s reputation and therefore its prospects and potentially its financial condition. Furthermore, any failure of joint venture or project partners to meet their obligations to AngloGold Ashanti or to third parties, or any disputes with respect to the parties’ respective rights and obligations, could have a material adverse impact on AngloGold Ashanti’s results of operations and financial condition. For example, with respect to the Kibali project in the DRC, AngloGold Ashanti and Barrick retain equal representation, with neither party holding a deciding vote, on the board of the company that has overall management control of the joint venture and all major management decisions for this project, including approval of the budget, require board approval. If a dispute arises between AngloGold Ashanti and Barrick with respect to the Kibali project and the parties are unable to amicably resolve such dispute, it may be difficult for the parties to make strategic decisions relating to the project affected by such dispute, the day-to-day operations and the development of such project may be adversely affected and AngloGold Ashanti may have to participate in proceedings to resolve the dispute, which could adversely affect the Company’s results of operations and financial condition.
AngloGold Ashanti’s joint venture or project partners may have economic or business interests or goals that are not consistent with the Company’s or may, as a result of financial or other difficulties, be unable or unwilling to fulfill their obligations under the joint venture or other project agreements. Disputes between AngloGold Ashanti and its joint venture or project partners may lead to legal action, including litigation between the Company and its joint venture or project partners. For example, a joint venture or project partner could decide to sell its shares in the joint venture or project in breach of any pre-emptive rights which the Company may have under the relevant joint venture or other project agreement. Such disputes could adversely affect the operation of the joint venture or project, may prevent the realisation of the joint venture’s or project’s goals and could adversely affect AngloGold Ashanti’s investment in the joint venture or project or harm the Company’s reputation. There is no assurance that AngloGold Ashanti’s joint venture or project partners will continue their relationship with the Company in the future or that the Company will be able to achieve its financial or strategic objectives relating to such joint ventures or projects.
Any downgrade of credit ratings assigned to AngloGold Ashanti’s debt securities could increase future interest costs and adversely affect the availability of new financing.
An actual, anticipated or unexpected negative development of AngloGold Ashanti’s results of operations or cash flows, country risk, financial metrics, or an increase in its net debt position could result in a deterioration of the Company’s credit ratings. AngloGold Ashanti’s ratings are influenced inter alia, by the location of its domicile and its operations. S&P Global, Moody’s and Fitch have assigned sub-investment grade credit ratings to the Republic of South Africa and the South African sovereign ratings may have an adverse impact on the Company’s credit ratings. Furthermore, AngloGold Ashanti operates in a number of jurisdictions which have a deteriorating credit quality and rating. Any downgrade of AngloGold Ashanti Limited, the Republic of South Africa or any jurisdiction in which the Company has significant operations by any rating agency could increase the Company’s cost of capital, reduce its investor base and have a material adverse effect on AngloGold Ashanti’s business, results of operations and financial condition.
The level of AngloGold Ashanti’s indebtedness could adversely impact its business.
As at 31 December 2022, AngloGold Ashanti had gross borrowings of $1.983 billion (2021: $1.909 billion and 2020: $1.931 billion), excluding all leases.
AngloGold Ashanti’s indebtedness could have a material adverse effect on its flexibility to conduct business. For example, the Company may be required to use a large portion of its cash flow from operations to pay the principal and interest on its debt, which will reduce funds available to finance existing operations and the development of new organic growth opportunities and potential acquisitions. In addition, under the terms of the Company’s borrowing facilities from its banks, AngloGold Ashanti is obliged to meet certain financial and other covenants. AngloGold Ashanti’s ability to continue to meet these covenants and to service its debt will depend on its future financial performance, which will be affected by its operating performance as well as by financial and other factors, including in particular the gold price, certain of which are beyond its control.
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Should the cash flow from operations be insufficient, AngloGold Ashanti could breach its financial and other covenants. Covenant breaches, if interpreted as events of default under one or more debt agreements, could allow lenders to accelerate payment of such debt. Any such acceleration could result in the acceleration of indebtedness under other financial instruments. As a result, the Company may be required to refinance all or part of the existing debt, use existing cash balances, issue additional equity or sell assets. However, the Company may be unable to sell assets on reasonable or profitable terms as and when necessary. Additionally, AngloGold Ashanti cannot be sure that it will be able to refinance its debt on commercially reasonable terms, if at all.
AngloGold Ashanti’s ability to access the bank, public debt or equity capital markets on an efficient basis may be constrained by dislocation in the credit markets or capital and liquidity constraints in the banking, debt or equity markets at the time of issuance. For example, the outbreak of the SARS-CoV-2 virus responsible for COVID-19, which reached pandemic proportions, the geopolitical tensions and war between Russia and Ukraine and the recent inflationary pressures in the world economy led to disruption and volatility in financial and capital markets. Any prolonged dislocations in financial and capital markets could impact the Company’s ability to refinance its debt on commercially reasonable terms, if at all, and could as a result have a material adverse effect on the Company’s funding requirements and overall liquidity.
Any acquisition or acquisitions that AngloGold Ashanti may complete may expose the Company to new geographic, political, legal, social, operating, financial and geological risks.
AngloGold Ashanti may pursue the acquisition of assets, properties or companies, which may include producing, development as well as advanced stage exploration assets or properties. Any such acquisition may change the scale of the Company’s business and operations and may expose it to new geographic, geological, political, social, operating, financial, fiscal, legal, regulatory and contractual risks as well as jurisdictions which have a deteriorating credit quality and rating. For example, there may be a significant change in the legal, regulatory and fiscal framework applicable to the Company after it has completed a relevant transaction; commodity prices may also significantly change after the Company has committed to complete the transaction and established the purchase price or share exchange ratio; a material ore body may prove below expectations; AngloGold Ashanti may have more stringent criteria to recognise Mineral Reserve than any acquired business, which may lead to an amount of Mineral Reserve being recognised by the Company that is lower than the amount determined by such acquired business prior to the relevant acquisition; AngloGold Ashanti may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realising anticipated synergies and maximising the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls; the integration may disrupt the Company’s ongoing business and its relationships with employees, suppliers and contractors; and the acquisition may divert management’s attention from AngloGold Ashanti’s day-to-day business. Furthermore, the Company operates and acquires businesses in different countries, with different regulatory, business and operating cultures, which may exacerbate the risks described in this section. In addition, the acquired business may have undetected liabilities which may be significant.
In the event that AngloGold Ashanti chooses to raise debt capital to finance any acquisition, its leverage will be increased. Should the Company choose to use equity as consideration for an acquisition, existing shareholders may suffer dilution. Alternatively, the Company may choose to finance any acquisition with its existing cash resources, which could decrease its ability to fund future capital expenditures and to service its debt.
AngloGold Ashanti may not be successful in overcoming these risks or any other problems encountered in connection with acquisitions. Failure by AngloGold Ashanti to implement its acquisition strategy or to integrate acquired businesses successfully could have material adverse effects on its growth, financial performance and results of operations.
The occurrence of events for which AngloGold Ashanti is not insured or for which its insurance is inadequate may adversely affect cash flows and overall profitability.
AngloGold Ashanti maintains insurance to protect against events which could have a significant adverse effect on its operations and profitability. This insurance is maintained in amounts that the Company believes to be reasonable depending upon the circumstances surrounding each identified risk. However, damage and third-party claims arising from catastrophic events may exceed the limit of liability covered under these insurance policies. Furthermore, AngloGold Ashanti’s insurance does not cover all potential risks associated with its business and may exclude certain parts of its business. For example, there are specific exclusions for third-party and public liability insurance cover with respect to certain of the Company's TSFs. AngloGold Ashanti may elect not to insure certain risks due to the high premia or for various other reasons, including an assessment that the risks are remote. For example, while AngloGold Ashanti’s insurance program includes coverage for cyber-related crimes and incidents as part of the global insurance program, such coverage is limited due to its relatively high cost and the sophisticated nature of cyber-crime. AngloGold Ashanti’s insurance coverage also contains customary exclusions for acts of war and terrorism.
In order to reduce or maintain the cost of its insurance program, AngloGold Ashanti may in some instances retain a portion of the financial loss associated with an insurable event. These financial losses could be significant and could have an adverse effect on its financial condition.
Insurance for certain risks in particular, such as loss of title to mineral property, political risks in certain jurisdictions, environmental pollution, or other hazards resulting from exploration and production, is not generally available to mining companies on acceptable terms. The availability and cost of insurance coverage can vary considerably from year to year as a
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result of events beyond the Company’s control or as a result of previous claims. This can result in higher premia and periodically being unable to maintain the levels or types of insurance the Company typically carries.
The failure to obtain adequate insurance could impair the Company’s ability to continue to operate in the normal course of its business. This could adversely impact its cash flows, results of operations and financial condition.
Market Risks
The price of gold, AngloGold Ashanti’s principal product, and other commodity market price fluctuations could adversely affect the profitability of operations.
AngloGold Ashanti’s revenues are primarily derived from the sale of gold and, to a lesser extent, silver and sulphuric acid. The market prices for these commodities fluctuate significantly. These fluctuations are caused by numerous factors beyond the Company’s control. For example, the market price of gold may change for a variety of reasons, including:
•speculative positions taken by investors or traders in gold;
•monetary policies announced or implemented by central banks, including the U.S. Federal Reserve, such as changes in interest rates;
•changes in the demand for gold as an investment;
•changes in the demand for gold used in jewellery and for other industrial uses, including as a result of prevailing economic conditions;
•changes in the supply of gold from production, divestment, scrap and hedging;
•financial market expectations regarding interest rates and the rate of inflation;
•the strength of the U.S. dollar (the currency in which gold trades internationally) relative to other currencies;
•actual or anticipated sales or purchases of gold by central banks and the International Monetary Fund (“IMF”);
•gold hedging and unwinding of hedging by gold producers;
•global or regional political or economic events; and
•the cost of gold production in major gold-producing countries.
The market price of gold has been and continues to be significantly volatile. During 2022, the market spot gold price traded between a low of $1,622 per ounce and a high of $2,052 per ounce. Between 1 January 2023 and 10 March 2023, the market spot gold price traded between a low of $1,811 per ounce and a high of $1,950 per ounce. On 10 March 2023, the market spot gold price was $1,868 per ounce. In addition to protracted declines, the price of gold is also often subject to sharp, short-term changes. For example, the market spot gold price decreased from a high of $1,674 per ounce on 6 March 2020 to a low of $1,470 per ounce on 19 March 2020 in the midst of a wider market dislocation related to the COVID-19 pandemic and despite the alleged investor perception of gold as a relatively safe haven in periods of market volatility.
Any sharp or prolonged fluctuations in the price of gold can have a material adverse impact on the Company’s profitability and financial condition.
In addition, any announcements or proposals by central banks, such as the U.S. Federal Reserve, or any of its board members or regional presidents or other similar officials in other major economies, may materially and adversely affect the price of gold and, as a result, AngloGold Ashanti’s financial condition and results of operations.
Events that affect the supply and demand of gold may have an impact on the price of gold. Demand for gold is also significantly impacted by trends in China and India, which account for the highest gold consumption worldwide. Government policies in these countries or other large gold-importing countries could adversely affect demand for, and consequently prices of, gold and, as a result, may adversely affect AngloGold Ashanti’s financial condition and results of operations. Furthermore, despite its generally favourable impact on the market price of gold, the COVID-19 pandemic has been a driving factor behind weakness in consumer demand for gold throughout 2020, culminating in a 14 percent decline in annual demand to 3,759.6 tonnes, the first time demand remained below 4,000.0 tonnes per year since 2009, according to the World Gold Council.
Furthermore, the shift in demand from physical gold to gold-related investments and speculative instruments may exacerbate the volatility of the gold price. Slower consumption of physical gold, resulting from a move toward gold-tracking investments or otherwise, may have an adverse impact on global demand for, and prices of, gold.
A sustained period of significant gold price volatility may adversely affect the Company’s ability to evaluate the feasibility of undertaking new capital projects or the continuity of existing operations, to meet its operational targets or to make other long-term strategic decisions. Lower and more volatile gold prices, together with other factors, have led AngloGold Ashanti in the past and may lead AngloGold Ashanti in the future to alter its expansion and development strategy and consider ways to align its asset portfolio to take account of such expectations and trends. As a result, the Company may decide to curtail or temporarily or permanently shut down certain of its exploration and production operations, which may be difficult and costly to effect. A sustained decrease in the price of gold could also have a material adverse effect on AngloGold Ashanti’s financial condition and results of operations, as it may be unable to quickly adjust its cost structure to reflect the reduced gold price environment. Mines with marginal headroom may be subject to decreases in value that are not temporary, which may result in impairment losses. See “—Certain factors may affect AngloGold Ashanti’s ability to support the carrying amount of its property, plant and equipment,
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intangible assets and goodwill on the balance sheet. If the carrying amount of its assets is not recoverable, AngloGold Ashanti may be required to recognise an impairment charge, which could be significant”. The market value of gold inventory may be reduced, and marginal stockpile and heap leach inventories may be written down to net realisable value or may not be processed further as it may not be economically viable at lower gold prices. In addition, AngloGold Ashanti is obliged to meet certain financial covenants under the terms of its borrowing facilities and its ability to continue to meet these covenants could be adversely affected by a further sustained decrease in the price of gold. The use of lower gold prices in Mineral Reserve estimates or life-of-mine plans from those prices used previously to determine Mineral Reserve or life-of-mine plans could also result in material impairments of the Company’s investment in mining properties or a reduction in its Mineral Reserve estimates and corresponding restatements of its Mineral Reserve and increased amortisation, reclamation and closure charges. Whilst, from time to time, AngloGold Ashanti may enter, and has in the past entered, into gold price hedges on an ad hoc basis on a portion of its production, the Company does not systematically do so. In addition, even when AngloGold Ashanti enters into gold price hedges, there is no certainty that such hedges will adequately protect the Company against gold price volatility.
The price of silver has also experienced significant fluctuations in past years. During 2022, the silver price varied between a low of $17.85 per ounce and a high of $26.39 per ounce. On 10 March 2023, the price of silver was $20.51 per ounce.
Factors affecting the price of silver include investor demand, physical demand for silver bars, industrial and retail off-take, and silver coin minting.
If revenue from sales of gold, silver or sulphuric acid falls below their respective cost of production for an extended period, AngloGold Ashanti may experience losses and curtail or suspend some or all of its exploration projects and existing operations or sell underperforming assets. Declining commodities prices, including gold, copper and silver, may also force a reassessment of the feasibility of a particular project or projects, which could cause substantial delays or interrupt operations until the reassessment can be completed.
Foreign exchange fluctuations could have a material adverse effect on AngloGold Ashanti’s results of operations and financial condition.
Gold is principally a U.S. dollar-priced commodity and most of AngloGold Ashanti’s revenues are realised in, or linked to, U.S. dollars, whilst cost of sales are partly incurred in the local currency where the relevant operation is located. Given AngloGold Ashanti’s global operations and local foreign exchange regulations, some of its funds are held in local currencies, such as the Brazilian real, Argentinean peso, Australian dollar, Ghanaian cedi and the South African rand. The weakness of the U.S. dollar against local currencies results in higher cost of sales and other costs in U.S. dollar terms. Conversely, the strengthening of the U.S. dollar lowers local cost of sales and other costs in U.S. dollar terms.
Exchange rate movements may have a material impact on AngloGold Ashanti’s operating results. For example, based on average exchange rates in 2022, the Company estimates that a one percent strengthening of all of the Brazilian real, Argentinean peso, Australian dollar, Ghanaian cedi and the South African rand against the U.S. dollar, other factors remaining equal, would have resulted in an increase in cost of sales and total cash costs per ounce of approximately $13 million and $6 per ounce, respectively. As a result of the sale of its remaining South African operations, AngloGold Ashanti’s exposure to fluctuations in the strength of the South African rand has been reduced.
The profitability of mining companies’ operations and the cash flows generated by these operations are significantly affected by fluctuations in input production prices, many of which are linked to the prices of oil and steel.
Fuel, energy and consumables, including diesel, heavy fuel oil, chemical reagents, explosives, tyres, steel and mining equipment used or consumed in mining operations form a significant part of the operating costs and capital expenditure of any mining company.
AngloGold Ashanti has no influence over the cost of these consumables, many of which are linked to some degree to the price of oil and steel. Whilst, from time to time, AngloGold Ashanti may implement, and has in the past implemented, financial derivatives intended to reduce exposure to changes in the oil price, such input cost protection strategies may not always be successful, and any of the Company’s diesel consumption not covered by these derivatives will continue to be subject to market fluctuations.
The price of oil has fluctuated between $78 and $140 per barrel of Brent Crude in 2022. During the year, as a result of the geopolitical tensions and the war between Russia and Ukraine, the oil price had increased precipitously. As of 10 March 2023, the price of oil was at $82 per barrel of Brent Crude.
AngloGold Ashanti estimates that for each $1.00 per barrel rise or fall in the oil price, other factors remaining equal, cost of sales and total cash costs per ounce of all its operations change by approximately $1 million or $0.50 per ounce, respectively. The sensitivity analysis includes the impacts of oil hedges. In July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent crude oil for the period January 2023 to December 2023 that will be cash settled on a monthly basis against the contract price. The average price achieved on the forward contracts is $89.20 per barrel of Brent crude oil. At 31 December 2022, the mark-to-market value of these oil derivatives was an unrealised loss of $6 million. The cost of sales and total cash costs per ounce of certain of the Company’s mines, particularly Siguiri, Geita, Iduapriem and Tropicana, which are
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more dependent on fuel, are most sensitive to changes in the price of oil. Even when fuel prices are in decline, expected savings may be partly offset by increases in governments’ fixed fuel levies or the introduction of new levies.
Furthermore, the price of steel has also been volatile. Steel is used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine. The price of steel has fluctuated between a low of $650 and a high of $1,541 per tonne in 2022. On 10 March 2023, the price of flat hot rolled coil (North American Domestic FOB) was $1,056 per tonne.
Fluctuations in oil and steel prices have a significant impact on operating costs and capital expenditure estimates and, in the absence of other economic fluctuations, could result in significant changes in the total expenditure estimates for new mining projects or render certain projects non-viable, which could have a material adverse impact on the Company’s results of operations and financial condition.
Fluctuations in the exchange rate of currencies may reduce the market value of AngloGold Ashanti’s securities, as well as the market value of any dividends or distributions paid by the Company.
AngloGold Ashanti has historically declared all dividends in South African rands (as required by South African company law). As a result, exchange rate movements may have affected the Australian dollar, the Ghanaian cedi, the British pound and the U.S. dollar value of these dividends, as well as of any other distributions paid by the relevant depositary to holders of the Company’s securities.
Furthermore, AngloGold Ashanti’s Memorandum of Incorporation allows for dividends and distributions to be declared in any currency at the discretion of the board of directors or the Company’s shareholders at a general meeting. If, and to the extent that, AngloGold Ashanti is able to or opts to declare dividends and distributions in U.S. dollars, exchange rate movements will not affect the U.S. dollar value of any dividends or distributions. Nevertheless, the value of any dividend or distribution in Australian dollars, Ghanaian cedis, British pounds or South African rands will continue to be affected. If, and to the extent that, dividends and distributions are declared in South African rands in the future, exchange rate movements will continue to affect the Australian dollar, Ghanaian cedi, British pound and U.S. dollar value of these dividends and distributions. This may reduce the value of the Company’s securities to investors. Additionally, the market value of AngloGold Ashanti’s securities as expressed in Australian dollars, Ghanaian cedis, U.S. dollars and South African rands will continue to fluctuate in part as a result of foreign exchange fluctuations.
Global political and economic conditions could adversely affect the profitability of operations.
AngloGold Ashanti’s operations and performance depend significantly on worldwide economic conditions. Despite signs of economic recovery in certain geographic markets, global economic conditions remain fragile with significant uncertainty regarding recovery prospects, levels of recovery and long-term economic growth effects.
Disruptions to international credit markets and financial systems have caused in the past, and may cause in the future, a loss of investor confidence resulting in widening credit spreads, a lack of price transparency, increased credit losses and tighter credit conditions. Any economic recovery may remain limited in geographic scope. A significant risk also remains that this recovery could be slow or that the global economy could quickly fall back into an even deeper and longer lasting recession or even a depression.
Global economic turmoil, or the expectation that economic turmoil could worsen, could have follow-on effects on AngloGold Ashanti’s business that include inflationary cost pressures, interest rate fluctuations and commodity market fluctuations. The COVID-19 pandemic resulted in disruption and volatility in global financial markets and capital markets and a significant decrease in global economic activity, which had an adverse effect on worldwide demand for gold and adversely affected the profitability of the Company’s operations. Further deterioration in economic conditions, as a result of the COVID-19 pandemic or otherwise, could lead to a further or prolonged decline in demand for gold and negatively impact AngloGold Ashanti’s business, and any such negative impact may be material. See also “—The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”.
Furthermore, the geopolitical tensions and war between Russia and Ukraine and the retaliatory measures that have been taken, and could be taken in the future, by the United States, the European Union (“EU”), the United Kingdom, NATO and other jurisdictions have created global security concerns that could result in a regional or global conflict and otherwise have a lasting impact on regional and global economies, any or all of which could adversely affect AngloGold Ashanti’s business.
Other factors that could negatively affect AngloGold Ashanti’s financial results and results of operations include, for example:
•the insolvency of key suppliers or contractors, which could result in contractual breaches and a supply chain breakdown;
•the insolvency of one or more joint venture partners, which could result in contractual breaches and disruptions at the operations of the Company’s joint ventures;
•changes in other income and expense, which could vary materially from expectations, depending on gains or losses realised on the sale or exchange of financial instruments and impairment charges that may be incurred with respect to investments;
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•a reduction in the availability of credit, which may make it more difficult for the Company to obtain financing for its operations and capital expenditures or make that financing more costly;
•exposure to the liquidity and insolvency risks of the Company’s lenders and customers; and
•impairment of the carrying value of operations in AngloGold Ashanti’s financial statements.
In addition to the potentially adverse impact on the profitability of the Company’s operations, any deterioration in or increased uncertainty regarding global economic conditions may increase volatility or negatively impact the market value of AngloGold Ashanti’s securities.
Energy cost increases and power fluctuations and stoppages could adversely impact the AngloGold Ashanti’s results of operations and financial condition.
Increasing global demand for energy, concerns about nuclear power and the limited growth of new supply are impacting the price and supply of energy. The transition of emerging markets to higher energy consumption, actual and proposed pricing or taxation of carbon emissions, unrest and potential conflict in the Middle East as well as the war between Russia and Ukraine, among other factors, could result in increased demand or constrained supply and sharply escalating oil and energy prices. In particular, the hostilities between Russia and Ukraine triggered the imposition of various sanctions by the United States, the EU, the United Kingdom and other jurisdictions against Russia. These and any additional sanctions or export controls, as well as countermeasures taken by Russia or other jurisdictions, led to a sharp increase in oil and energy prices, given Russia’s role as a major global exporter of crude oil and natural gas, which adversely impacted the Company’s results of operations and financial condition. This risk will be further exacerbated if the oil and energy prices return to such an elevated level or increase further.
Electricity sourced from fossil fuel based generation is currently used for most of AngloGold Ashanti’s business and safety-critical operations, including cooling, hoisting and dewatering. Loss of power can therefore impact production and employee safety, and prolonged outages could lead to flooding of workings and ore sterilisation. AngloGold Ashanti’s mining operations are substantially dependent upon a mix of electrical power generated by local power utilities and by own power generation plants situated at some of its operations. The unreliability of local power utilities in some of the countries in which AngloGold Ashanti operates could have a material adverse effect on the Company’s operations, as large amounts of power are required for ventilation, exploration, development, extraction, processing and other mining activities on the Company’s properties. For example, in Tanzania, government policies put increased pressure on companies to utilise the national grid, which could adversely impact the Company’s mining operations in the country due to potential power quality issues.
Certain of AngloGold Ashanti’s mining operations depend on supplies of fuel delivered by road which have been disrupted in the past and may be disrupted again in the future. Any such disruptions could negatively impact operating costs and cashflows from these operations.
Inflation may have a material adverse effect on results of operations.
Many of AngloGold Ashanti’s operations are located in countries that have experienced high rates of inflation during certain periods and inflationary pressures have been exacerbated by recent geopolitical tensions and supply constraints resulting in increases in energy and other input commodity costs. It is possible that significantly higher future inflation in the countries in which the Company operates may result in an increase in operational costs in local currencies (without a concurrent devaluation of the local currency of operations against the U.S. dollar or an increase in the U.S. dollar price of gold). This could have a material adverse effect on the Company’s results of operations and financial condition. Significantly higher and sustained inflation, with a consequent increase in operational costs, could result in the rationalisation (including closure) of higher-cost mines or projects. Furthermore, when inflation reaches highly inflationary levels in a country in which the Company operates, social unrest and union activity may increase, which in turn may have an adverse effect on AngloGold Ashanti’s operational costs and results of operation in that country.
Of particular concern is the increasing inflation rate in Argentina which was recorded at 94.8 percent in 2022, 51.0 percent in 2021, 36.1 percent in 2020, 53.8 percent in 2019 and 47.6 percent in 2018. Hyper-inflationary reporting will be reflected in the financial statements of the Company’s local subsidiaries. However, hyper-inflationary movements are not reflected in the Group’s consolidated financial statements as AngloGold Ashanti’s local Argentinean subsidiary is deemed to have a U.S. dollar functional currency.
Other Regulatory and Legal Risks
Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation.
AngloGold Ashanti’s operations must comply with the U.S. Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws of the jurisdictions in which AngloGold Ashanti operates. There has been a substantial increase in the global enforcement of these laws and an increased focus on the actions of mining companies. Any violation of such laws could result in significant criminal or civil sanctions. Conversely, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. Since AngloGold Ashanti operates globally in multiple jurisdictions, including those with
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less developed political and regulatory environments, and within numerous and complex frameworks, its governance and compliance processes may not prevent potential breaches of law, accounting principles or other governance or customary practices.
AngloGold Ashanti’s Code of Business Principles and Ethics, Business Integrity Policy and Policy on Anti-Bribery and Anti-Corruption, among other policies, standards and guidance, and training thereon may not prevent instances of unethical or unlawful behaviour, including bribery or corruption. They also may not guarantee compliance with legal and regulatory requirements and may fail to enable management to detect breaches of such requirements.
Sanctions for failure by the Company or others acting on its behalf to comply with these laws, regulations, standards and contractual obligations could include fines, penalties, resignation or removal of officers, imprisonment of officers, litigation, and loss of operating licences or permits, suspensions of operations and negative effects on AngloGold Ashanti’s reported financial results and may damage its reputation. Such sanctions could have a material adverse impact on the Company’s financial condition and results of operations.
AngloGold Ashanti is subject to the risk of litigation, the causes and costs of which are uncertain.
AngloGold Ashanti is subject to litigation, arbitration and other legal proceedings arising in the normal course of business and may be involved in disputes that may result in litigation. The causes of potential future litigation cannot be known and may arise from, among other things, business activities, environmental, health and safety concerns, share price volatility or failure to comply with disclosure obligations. The results of litigation cannot be predicted with certainty but could include costly damage awards or settlements, fines, and the loss of licences, concessions, or rights, among other things. See “Item 8A: Legal Proceedings”.
In the event of a dispute, AngloGold Ashanti may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of courts in South Africa. An adverse or arbitrary decision of a foreign court could have a material adverse impact on AngloGold Ashanti’s financial performance, cash flow and results of operation.
For example, in Colombia, AngloGold Ashanti is involved in class action lawsuits in relation to each of its Santa María-Montecristo and La Colosa projects seeking to stop the Company from conducting exploration, development and mining activities in certain areas, in which these exploration projects are located, due to environmental concerns. See “Item 8A: Legal Proceedings—Colombia”.
Should AngloGold Ashanti be unable to resolve disputes favourably or to enforce its rights, this may have a material adverse impact on its financial performance, cash flow and results of operations.
Compliance with “conflict minerals” and “responsible gold” legislation and standards could result in significant costs.
Stringent standards relating to “conflict minerals” and “responsible” gold including, but not limited to, the U.S. Dodd-Frank Act, the EU Regulation 2017/821 on supply chain due diligence obligations for EU importers of gold originating from conflict-affected and high-risk areas, the OECD Due Diligence Guidelines for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the World Gold Council Conflict-Free Gold Standard and the London Bullion Market Association Responsible Gold Guidance have been introduced. Any such legislation and standards may result in significant costs to ensure and demonstrate compliance (particularly where standards change rapidly or lack certainty due to court challenges) and may complicate the sale of gold emanating from certain areas. The complexities of the gold supply chain, especially as they relate to “scrap” or recycled gold, and the fragmented and often unregulated supply of artisanal and small-scale mined gold are such that there may be significant uncertainties at each stage in the chain as to the provenance of the gold. As a result of the uncertainties in the process, the costs of due diligence and audit, or the reputational risks of defining their product or a constituent part as containing a “conflict mineral” may be too burdensome for the Company’s customers. Accordingly, manufacturers may decide to switch supply sources or to substitute gold with other minerals not covered by the initiatives. This could have a material negative impact on the gold industry, including on AngloGold Ashanti’s results of operations and financial condition.
AngloGold Ashanti’s operations are subject to various climate change-related physical risks which may adversely impact its production activities, mine sites and personnel and/or result in resource shortages or environmental damages.
AngloGold Ashanti’s operations are exposed to a number of physical risks resulting from climate change, such as changes in rainfall rates or patterns leading to increased water stress or floods, rising sea levels, higher temperatures, fires and severe weather events such as tropical cyclones. These events or conditions could disrupt its mining, transport and supply chain operations, mineral processing and environmental rehabilitation efforts, create resource or energy shortages, damage the Company’s property or equipment and increase on-site health and safety risks due to, for example, erosion and geotechnical instability. For example, in January 2022, the state of Minas Gerais in Brazil was impacted by heavy rains, which resulted in 145 municipalities declaring an emergency. Thousands of people were forced out of their homes and evacuated from the affected areas, and more than 120 roads were blocked. The impacts were particularly severe in several of the cities where AngloGold Ashanti operates and where its employees reside, which resulted in the operations at Córrego do Sítio being temporarily partially
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stopped. Extreme rainfall events are also an increasingly significant risk for AngloGold Ashanti’s Australian operations. A significant increase in rainfall has the potential to adversely impact normal TSF operating procedures as well AngloGold Ashanti’s ability to operate processing plants in the event it is unable to discharge process water due to insufficient capacity in the receiving TSF pool. In contrast, increasing water stress at some of AngloGold Ashanti’s operations in Africa could, in the future, negatively impact the Company’s ability to successfully implement its environmental rehabilitation programmes and/or to suppress dust from its operations. These events or conditions also could have adverse effects on AngloGold Ashanti’s workforce and on the communities around its mines, such as an increased risk of food insecurity, drinking water scarcity, access to power and prevalence of disease.
In 2020, AngloGold Ashanti completed climate change-related physical risk assessments for all of its operated assets as well as the Quebradona project. While the assessments indicated that many of the identified physical climate risks were already included in the risk management strategy for these sites, AngloGold Ashanti may not have identified all potential risks or all the potential impacts of such risks. Events or conditions that are catastrophic, or are otherwise not adequately addressed by AngloGold Ashanti’s adaptation and risk management strategies, could have a material adverse effect on its production activities, assets, results of operations and financial condition.
Compliance with emerging climate change-related requirements, including stricter regulations and the potential imposition of carbon taxes or GHG emissions cap-and-trading schemes or the elimination of related subsidies, that are expected to be part of a country’s participation in a transition to a lower-carbon economy, could result in significant additional costs and expose AngloGold Ashanti to additional liabilities.
Greenhouse gases (“GHGs”) are emitted directly by AngloGold Ashanti’s operations as well as by external utilities from which AngloGold Ashanti purchases electricity. As a result of commitments made at the UN Climate Change Conference in Durban, South Africa, in December 2011, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris in December 2015 (the “Paris Agreement”). The Paris Agreement, which came into force in November 2016, requires developed countries to set targets for GHG emissions reductions. In order to meet national reductions commitments, including a goal of “net zero” carbon emissions or carbon neutrality by 2050 set by numerous jurisdictions, it is likely that various countries will implement or adopt additional measures addressing GHG emissions, including stricter GHG emissions limits and/or some form of carbon pricing, in the future. In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050, and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter. In 2022, AngloGold Ashanti announced a 2030 reduction target to achieve a 30% absolute reduction in its Scope 1 and 2 GHG emissions, as compared to 2021 GHG emissions, through a combination of renewable energy projects, fleet electrification and lower-emission power sources, the capital cost for which is currently anticipated to be approximately $1.1 billion (of which $350 million is expected to be funded over that period by AngloGold Ashanti and the remaining $750 million through third-party funding, including from providers of renewable energy infrastructure).
Carbon pricing refers to various initiatives that seek to internalise the social or environmental cost of carbon on industries by imposing taxes, cap-and-trade schemes and/or elimination of free credits for carbon emissions. As governments continue to set aggressive decarbonisation targets to meet the commitments made as a result of the Paris Agreement, carbon pricing systems are likely to be implemented in a number of jurisdictions were AngloGold Ashanti operates. Such measures could require AngloGold Ashanti to reduce its direct GHG emissions or energy use or to incur significant costs for GHG emissions allowances or taxes, including as a result of costs or taxes passed on by electricity utilities which supply the Company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment to reduce GHG emissions, as well as GHG monitoring and reporting and other obligations to comply with applicable requirements. Such measures could drive up the costs of capital goods, energy and other utility costs that are critical inputs to the Company’s mining operations. Certain countries, including Australia and Brazil, have passed or are considering GHG trading or tax schemes and/or other regulation of GHG emissions, although the precise impact on AngloGold Ashanti’s operations cannot yet be determined.
AngloGold Ashanti’s ability to implement changes to decarbonise its operations varies across its portfolio. In regions which rely more on fossil fuels for energy, such as the Company’s mines in Australia and Tanzania, mandated GHG reductions and/or carbon pricing measures could have a material adverse effect on AngloGold Ashanti’s production activities, results of operations and financial condition. See also “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”.
While AngloGold Ashanti believes that gold’s well-demonstrated roles as a risk hedge and portfolio diversifier will continue to support investment demand for gold, even in an environment of uncertainty and heightened market volatility from climate change and the transition to a lower-carbon global economy, a sustained economic downturn or disruptions in certain industrial sectors where gold is integral to manufacturing, including electronic devices such as phones, computers and global positioning systems as well as jewellery, could reduce the demand for its product and, consequently, have an adverse impact on its production, financial condition and results of operations.
Increasing scrutiny and changing expectations from AngloGold Ashanti’s stakeholders, including communities, governments and NGOs as well as investors, lenders and other market participants, with respect to AngloGold Ashanti’s ESG performance and policies may impact AngloGold Ashanti’s reputation, result in additional costs to meet
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the expectations of stakeholders, hinder access to capital or expose AngloGold Ashanti to additional risks, including disinvestment and litigation.
Companies across all industries are facing increasing scrutiny related to ESG issues, including their internal ESG policies and governance practices. Investor advocacy groups, certain institutional investors, investment funds, lenders and other market participants are increasingly focused on ESG-related matters and in recent years have placed increasing importance on the environmental and social costs and impact of their investments. The increased focus and activism related to ESG and similar matters may hinder access to capital, as investors and lenders may decide to reallocate capital or to not commit capital as a result of their assessment of a company’s ESG practices. In addition, host communities, as well as certain governmental and non-governmental actors, are increasingly focused on a company’s ability to operate in a sustainable manner and to mitigate related risks, as well as the public commitments and quantitative metrics used to demonstrate performance and track progress. For AngloGold Ashanti, this includes, in particular, the safe operation of its mines, mitigating its impact to local environments and affected communities and reducing GHG emissions in line with the Company’s voluntary commitments. If AngloGold Ashanti’s performance fails to meet internal or adopted external ESG standards, or AngloGold Ashanti otherwise fails to satisfy stakeholder expectations with respect to its commitments and performance, regardless of whether there is a legal requirement to do so, such failure could result in reputational damage to and litigation against the Company and its business, financial condition, and/or stock price could be materially and adversely affected.
In particular, AngloGold Ashanti faces increasing pressures from stakeholders, who are increasingly focused on climate change, to prioritise energy efficiency in its operations, reduce its carbon footprint and improve water and other resource consumption, as well as to be transparent about how climate-related risks and opportunities are managed throughout the supply chain to foster and promote business resiliency, accountability and stakeholder value. AngloGold Ashanti has implemented numerous initiatives since 2008 to reduce its GHG emissions by installing new technology, such as heat pumps and underground cooling and water treatment systems, reducing power consumption and improving energy efficiency. AngloGold Ashanti has also made certain voluntary commitments to take future actions, including to achieve net zero Scope 1 and 2 GHG emissions by 2050, to achieve a 30% absolute reduction in Scope 1 and 2 GHG emissions by 2030 (as compared to a 2021 baseline), and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter. AngloGold Ashanti continues to enhance its governance around climate-related risks and opportunities, including implementing the action plans of its Climate Change Strategy, which was approved by its board in November 2021. Nevertheless, AngloGold Ashanti may be required to implement even more stringent ESG practices or standards to meet the expectations of existing and future stakeholders and, if the Company fails to achieve these objectives or to adhere to internal or adopted external standards, or is perceived to be insufficiently committed to addressing ESG concerns across all of its operations and activities, the Company’s reputation and brand image could be damaged, it could lose the trust of its stakeholders (including governments, NGOs, investors, customers and employees) or be subject to litigation brought by those stakeholders, and its business, financial condition and results of operations could be adversely impacted.
AngloGold Ashanti’s inability to maintain an effective system of internal control over financial reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of AngloGold Ashanti’s financial statements for external purposes in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Disclosure controls and procedures are designed to ensure that information required to be disclosed by a company in reports that it files or submits under the Exchange Act is recorded, processed, summarised and reported within the time periods specified in the rules and forms of the SEC. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation. If AngloGold Ashanti is unable to maintain an effective system of internal control over financial reporting or disclosure controls and procedures, investors may lose confidence in the reliability of its financial statements and this may have an adverse impact on investors’ ability to make decisions about their investment in AngloGold Ashanti. See “Item 15: Controls and Procedures”.
Breaches in cybersecurity and violations of data protection laws may adversely impact or disrupt AngloGold Ashanti’s business.
AngloGold Ashanti maintains global information, digital technology (“DT”) and communication networks and applications to support its business activities. AngloGold Ashanti outsources several digital technology functions and applications to third-party vendors and these engagements may have an impact on the overall cybersecurity position of the Company. The primary company systems managed by third-party vendors include, cloud infrastructure, data centre management, server/personal computing support, enterprise resource planning business applications, email and digital documents and the Cyber Security Operations Centre.
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AngloGold Ashanti must continuously monitor the solutions implemented to support its global digital technology and communication networks and applications to maintain a suitable and well-managed environment. There can be no assurance that these efforts will always be successful.
The sophistication and magnitude of cybersecurity incidents are increasing and include malicious software, attempts to gain unauthorised access to data and other electronic security and protected information breaches that could lead to production downtimes, operational delays, safety incidents, the compromising of confidential or otherwise protected information, destruction or corruption of data, other manipulation or improper use of AngloGold Ashanti’s systems and networks or financial losses from remedial actions. For example, in late 2020, a threat to the Company’s computer systems was detected and neutralised within hours in connection with the SolarWinds supply chain compromise which affected over 18,000 companies. The systems affected were limited to network monitoring applications in Brazil which monitored certain technology systems across the local network. In addition, there was a notable increase in phishing campaigns linked to COVID-19 in the second half of 2020 which continued through the first half of 2021. A sharp increase in ransomware-related threats have also been recorded throughout the mining industry with several high-profile organisations experiencing disruptions.
Digital technology security processes may not prevent future malicious actions, denial-of-service attacks, or fraud, which could result in the corruption of operating systems, theft of commercially sensitive data, misappropriation of funds and business and operational disruption. AngloGold Ashanti’s insurance program includes limited coverage for cyber-related crimes and incidents as part of the global insurance program, and material system breaches and failures could result in significant interruptions that could adversely affect AngloGold Ashanti’s operating results and reputation.
The interpretation and application of consumer and data protection laws in South Africa, the United States and elsewhere are evolving. It is possible that these laws may be interpreted and applied in a manner that is inconsistent with AngloGold Ashanti’s data practices. Complying with these various laws is essential and could cause the Company to incur substantial costs or require it to change its business practices in a manner adverse to its business.
For example, the penalties for failure to comply with the South African Protection of Personal Information Act, No. 4 of 2013 (“POPIA”) are severe and may include an administrative fine of up to R10 million or imprisonment of up to ten years. The European General Data Protection Regulation (“GDPR”) may lead to administrative fines of up to €20 million or four percent of a company’s total worldwide annual turnover of the preceding financial year, whichever is higher. Also, the GDPR has a scope that extends beyond the borders of the EU and does not only affect EU operations.
U.S. securities laws do not require AngloGold Ashanti to disclose as much information to investors as a U.S. issuer is required to disclose, and investors may receive less information about the companyCompany than they might otherwise receive from a comparable U.S. company.
AngloGold Ashanti is subject to the periodic reporting requirements of the SEC and the New York Stock Exchange that apply to “foreign private issuers”. The periodic disclosure required of foreign private issuers under applicable rules is more limited than the periodic disclosure required of U.S. issuers. Accordingly, there may be less publicly available information concerning AngloGold Ashanti than there is for U.S. public companies. For example, on 22 February 2016, AngloGold Ashanti announced that it would no longer voluntarilyhas a half-yearly reporting cycle and does not publish reviewed financial statements and analyses of operating and financial results for the quarters ended 31 March and 30 September of each year. In addition, AngloGold Ashanti is not required to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). As a result, of this transition to half-yearly reporting, investors will receive less information about AngloGold Ashanti than they have in previous years. They will also receive less timely financial reports than they otherwise might receive from a comparable U.S. company or from certain of the company’sCompany’s peers in the industry. This may have an adverse impact on investors’ abilitiesability to make decisions about their investment in AngloGold Ashanti.
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ITEM 4: INFORMATION ON THE COMPANY
4A. HISTORY AND DEVELOPMENT OF THE COMPANY
GROUP INFORMATION
AngloGold Limited was formed in June 1998 with the consolidation of the gold mining interests of Anglo American plc. AngloGold Ashanti Limited, as the companyCompany exists today, was formed on 26 April 2004 following the business combination between AngloGold Limited and Ashanti Goldfields Company Limited.
CURRENT PROFILE
AngloGold Ashanti Limited, a Company incorporated under the laws of the Republic of South Africa, is headquartered in Johannesburg, South Africa. The companyCompany (Registration number 1944/017354/06) was incorporated in the Republic of South Africa in 1944 under the name of Vaal Reefs Exploration and Mining Company Limited and operates under the South African Companies Act, No. 71 of 2008, as amended (the “SA Companies Act)Act”).
The Company’s legal and commercial name is AngloGold Ashanti Limited. Its registered office is at 76 Rahima Moosa Street, Newtown,112 Oxford Road, Houghton Estate, Johannesburg, 2198, South Africa, 2001. Telephone:Africa. The general telephone number is +27 11 637 6000.6000 and the internet address is
https://www.anglogoldashanti.com. No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the Company’s website shall not be deemed to cause such incorporation.
While AngloGold Ashanti’s primary listing is on the Johannesburg Stock Exchange (JSE), the companyCompany is also listed on the New York Stock Exchange (NYSE), the Ghana Stock Exchange (GhSE) and the Australian Securities Exchange (ASX). AngloGold Ashanti was approved for a secondary listing on A2X Markets (A2X) in South Africa and its shares were admitted to trading on A2X on 6 June 2022. AngloGold Ashanti’s issued share capital will be unaffected by the additional listing on A2X. Our agent for service of process in the United States is AngloGold Ashanti North America Inc., 4601 DTC Boulevard, Suite 550, Denver, CO 80237. The U.S. Securities and Exchange Commission (SEC) maintains a public internet site that contains AngloGold Ashanti’s filings with the SEC and reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC (http://www.sec.gov).
HISTORY AND SIGNIFICANT DEVELOPMENTS
Below are highlights of key corporate activities from 1998:
1998
•Formation of AngloGold Limited through the consolidation of East Rand Gold and Uranium Company Limited; Eastvaal Gold Holdings Limited; Southvaal Holdings Limited; Free State Consolidated Gold Mines Limited; Elandsrand Gold Mining Company Limited; H.J. Joel Gold Mining Company Limited and Western Deep Levels Limited into a single, focused, independent gold mining company. Vaal Reefs Exploration and Mining Company Limited (Vaal Reefs), the vehicle for the consolidation, changed its name to AngloGold Limited and increased its authorised share capital, effective 30 March 1998.
1998-2004
•Expansion of AngloGold Limited’s operations outside of South Africa.
2004
•Conclusion of the business combination with Ashanti Goldfields Company Limited, at which time the companyCompany changed its name to AngloGold Ashanti Limited.
2007
•Sale by Anglo American plc of 69,100,000 ordinary shares of AngloGold Ashanti, thereby reducing Anglo American’s shareholding in AngloGold Ashanti from 41.7 percent to 16.6 percent.
2009
•Sale by Anglo American plc of its remaining shareholding in AngloGold Ashanti to Paulson & Co. Inc.
2010
•Elimination of AngloGold Ashanti’s hedge book, thereby gaining full exposure to spot gold prices.
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2012
•Acquisition of the remaining 50 percent interest in Serra Grande in Brazil for $215 million.
•Acquisition of 100 percent of First Uranium (Proprietary) Limited for $335 million.
2013
•Commission of two new gold projects -— Tropicana and Kibali -— in the second half of 2013.
2015
•Sale of the Cripple Creek & Victor gold mine in theColorado, USA for $819 million.
2017
•South Africa region restructured -— TauTona mine placed on orderly closure. Negotiations of the sales of Moab Khotsong and Kopanang mines.
2018
•Completion of the sales of the Moab Khotsong and Kopanang mines during 2017 within South Africa for $300 million and $9 million, respectively.
2019
•Announcement of a review of divestment options for assets in South Africa, Mali and Argentina.
2020
•Sale of the transactions concludingremaining South African producing assets and related liabilities to Harmony for $200 million plus deferred consideration based on 28 February 2018.future production at the Mponeng mine.
•Completion of the sales of the Sadiola and Morila mines in Mali for cash proceeds of $25 million and $1 million, respectively.
2021
•Announcement of offer to purchase Corvus Gold Inc. (“Corvus Gold”), in Nevada USA.
2022
•Acquisition of the remaining 80.5 percent interest in Corvus Gold, for a cash consideration of $365 million.
•Acquisition of 100 percent of Coeur Sterling, Inc. (“Coeur Sterling”), in Nevada, USA for a cash consideration of $152 million.
2023 YTD
•On 16 March 2023, AngloGold Ashanti and Gold Fields Limited (“Gold Fields”) announced that they have agreed the key terms of a proposed joint venture in Ghana between Gold Fields' Tarkwa and AngloGold Ashanti's neighbouring Iduapriem Mines.
CAPITAL EXPENDITURE AND DIVESTITURES
For information concerning the company’sCompany’s principal capital expenditures and divestitures currently in progress, including the distribution of these investments geographically and the method of financing, refer “Itemto “Item 4B: Business Overview-AngloGoldOverview—AngloGold Ashanti Global Operations: 2017”2022”, “Item 5A: Operating Results-Capital expenditure”Results—Comparison of capital expenditure in 2022, 2021 and 2020” and “Item 5B: Liquidity and Capital Resources”.
For information concerning the Company’s divestitures, including the sale of the remaining South African producing assets and related liabilities completed on 30 September 2020, refer to “Item 5: Operating and Financial Review and Prospects—Overview”.
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4B. BUSINESS OVERVIEW
AngloGold Ashanti aLimited (AngloGold Ashanti) is an independent, global gold mining company with a globally diverse world-class portfolio of operations, projects and exploration activities across nine countries on four continents. While gold is our principal product, we also produce silver (Argentina) and sulphuric acid (Brazil) as by-products. We are developing projects in Colombia, including the Quebradona mine that is expected to produce both gold and copper, and continuing exploration activities in the United States. The Company is headquartered in Johannesburg, South Africa. AngloGold Ashanti is the third largest gold mining company in the world, measured by production.
PRODUCTS
AngloGold Ashanti’s main product is gold. Once mined, the gold ore is processed into doré (unrefined gold bars) on site and then dispatched to precious metals refineries for refining to a purity of at least 99.5%,99.5 percent, in accordance with the standards of ‘good delivery’ as determined by the London Bullion Market Association (LBMA). This refined gold is then sold directly to bullion banks.
By-products of our gold mining operations, often a function of local geological characteristics, include silver in Argentina and sulphuric acid in Brazil and uranium in South Africa.Brazil.
OPERATIONS
We have developed a high-quality, well-diversified asset portfolio, including production from ten operations in seven countries (Argentina, Australia, Brazil, Ghana, Guinea, the DRC and Tanzania) supported by greenfields projects in the United States and Colombia along with a focused global exploration programme. Our portfolio of 17 operations and three projects in ten countries, comprises long-life, relatively low-cost operating assets with differing ore body types, located in key gold-producing regions.regions around the world.
Our operations and projects are grouped regionally as follows:
•Americas (Argentina and Brazil, and projects in the United States and Colombia); and
Our exploration programme is focused on creating significant value for the current market environmentCompany’s stakeholders by providing long-term optionality and the scrutiny of financial capital allocation, we ensure responsible capital distribution, in line with business requirements. We do this while optimising internal expertise to identify and implement operational efficiencies, reducing overhead structures, improving capital discipline and pursuing other business improvement initiatives without compromising safety. We continue our focus on debt reduction to further strengthen our balance sheet and on improving the quality of our asset portfolio. This we aim to do by unlocking value from existing operations, brownfield opportunities, Obuasi and other long-term growth projects, including Colombia.
Greenfields and brownfields exploration takes place in both established and new gold-producing regions through managed and non-managed joint ventures,arrangements, strategic alliances and wholly-ownedwholly owned ground holdings. AngloGold Ashanti’s discoveries include La Colosa Gramalote and Quebradona (Nuevo Chaquiro) in Colombia.Colombia and Silicon, North Bullfrog, Mother Lode and Sterling in Nevada, USA.
GOLD MARKET
Central banks were also very activenet purchasing in the gold market, with Russia increasing its holdings, particularly in the last two months of the year. The central banks remained an important source of demand for gold and net purchases by central banks recorded a gain of 48 percent for the whole of 2017, up 123t to 381t compared to 258t in 2016.
For more information, see “Item 5A: Operating Results—Introduction”.
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COMPETITION
As gold mining is a mature and regulated industry, and very significant volumes of gold and gold derivatives trade in the world markets independent of gold mine supply, AngloGold Ashanti does not consider that competition for sales plays any role in its operations as a gold producer. For more information on a geographical analysis of gold income by destination, refer “Itemto “Item 18: Financial Statements—Note 2 - 2—Segmental Information”.
However, gold producers do compete against each other for acquisition of mining assets, exploration opportunities and human resources. See “Item“Item 3D: Risk Factors”Factors—AngloGold Ashanti faces strong competition and industry consolidation”.
SEASONALITY
Subject to other factors and unforeseen circumstances, in the first quarter one production is generally lower than production during the rest of the year as a result of the ramp-up of operations after annual holiday production declines.
RAW MATERIALS
AngloGold Ashanti uses chemicals, including cyanide and lime, in the production of gold. These chemicals are available from a large number of suppliers and do not represent a material portion of the company’sCompany’s costs. We are not currently experiencing any supply shortages on critical consumables utilised in the production of gold across our global operations. In addition, our stocking strategies account for potential lead time variation and supply constraints, thus minimising the risk of changes in the marketplace. While commodity pricing is subject to volatility over time, our contractual terms limit future changes. However the war in Ukraine has led to a sharp increase in oil and energy prices, which are important costs for the Company's business. In 2022, prices for several hard and soft commodities had reached their highest levels in a decade or more, or in some cases had set records. The higher cost for basic commodities used in our host countries and communities, and as key production inputs, could impact the costs of our raw materials.
STRATEGY
We have five key strategic focus areas namely: people, safetywhich enable us to deliver on our overall strategy which is to create value. They guide decision-making and sustainability; ensuring financial flexibility; actively managing all expenditures; improving the qualityare aimed at generating increased cash flows; extending mine lives; creating an organic pipeline of economically viable orebodies; and enhancing our portfolio; and maintaining long-term optionality.social licence to operate.
Strategic focus areas
AngloGold Ashanti’s five strategic focus areas are set out below:
•Maintain financial flexibility. We must ensure our balance sheet is able to remain sustainable in the long term.meet our core funding needs.
•Optimise overhead costs and capital expenditure. All spending decisions must be thoroughly scrutinised to ensure they are optimally structured and necessary to fulfil our core business objective.
objectives.•Improve portfolio quality. AngloGold Ashanti builds on its portfolio quality through projects such as our FP programme to ensure optimal mine performance. We haveare flexible in delivering on our mine plans, allowing for the best results, as we progress our projects and replace our production with a portfoliogrowing Mineral Reserve and Mineral Resource base.
•Maintain long-term optionality. As part of assets that must be actively managed to improve the overall mixfocused and responsible management of our production base as we strive for a competitive valuation as a business.
INTELLECTUAL PROPERTY
AngloGold Ashanti, as a group, is not dependent on intellectual property (including patents or licences), industrial, commercial or financial contracts (including contracts with customers or suppliers) or new manufacturing processes for the conduct of its business as a whole.
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THE REGULATORY ENVIRONMENT ENABLING ANGLOGOLD ASHANTI TO MINE
AngloGold Ashanti’s rights to own and exploit Oredevelop Mineral Reserve and deposits are governed by the laws and regulations of the jurisdictions in which these mineral properties lie.are located.
AngloGold Ashanti is subject to a wide range of laws and regulations governing all aspects of its operations, including such areas aswith respect to environmental protection, reclamation, exploration, development, production, taxes, immigration, labour standards and employment issues, occupational health, mine safety, dam safety, toxic substances and wastes, securities and foreign corrupt practices. AngloGold Ashanti has made, and expects to make in the future, significant expenditures to comply with these laws and regulations. Non-compliance can result in violations and legal claims, as well as substantial fines, penalties, reputational damage and delays in or suspension of day-to-day operations. Pending or proposed changes to existing laws and regulations, as well as any proposed or contemplated new laws or regulations, could also have significant impacts on AngloGold Ashanti’s business and results of operations, the extent of which cannot always be predicted.
There are in some cases certain restrictions on AngloGold Ashanti’s ability to independently move assets out of certain countries in which it has operations, or transfer assets within the group,Group, without the prior consent of the local government or minority shareholders involved. See “Item“Item 10D: Exchange controls” for details.
For more information on the risks and uncertainties associated with AngloGold Ashanti’s mining rights, see “Item“Item 3D: Risk factors”Factors”, in particular the risk factors entitled “AngloGold Ashanti’s mining rights in the countries in which it operates could be altered, suspended or cancelled for a variety of reasons, including breaches in its obligations in respect of such mining rights”, “Failure to comply with laws, regulations, standards and contractual obligations, breaches in governance processes or fraud, bribery and corruption may lead to regulatory penalties, loss of licences or permits, negative effects on AngloGold Ashanti’s reported financial results, and adversely affect its reputation”, “Title to AngloGold Ashanti’s properties may be uncertain and subject to challenge”, “AngloGold Ashanti’s mineral deposits, OreMineral Reserve, and mining operations are located in countries where political, tax and economic laws and policies may change rapidly and unpredictably and such changes and policies may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries” and “AngloGold Ashanti’s OreMineral Reserve, deposits and mining operations are located in countries that face instability and security risks that may adversely affect both the terms of its mining concessions, as well as its ability to conduct operations in certain countries”.
SOUTH AFRICA
As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.
General laws relating to mining
The MPRDA
The Mineral and Petroleum Resources Development Act, (MPRDA)No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged. Another objective of the MPRDA isdisadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate.
The Mineral and Petroleum Resources Development Amendment Act, (MPRDAA) was passed by Parliament inNo. 49 of 2008 and(the “MPRDAA”) became effective on 7 June 2013. Its purpose is to amend the MPRDA in order to, amongst other things:
The 2013 Bill was sent tomining charter
Since 2004, a series of mining charters have been adopted in South Africa with the Presidentmain purpose of transferring part of the Republic of South Africa (President) for assent. On 16 January 2015, President Zuma referred the 2013 Bill back to the National Assembly to accommodate his reservations around the constitutionality of the 2013 Bill. The 2013 Bill was considered by the Portfolio Committee on Mineral Resources who tabled non-substantial revisions to the 2013 Bill, which revisions were passed by the National Assembly and referred to the NCOP on 1 November 2016. The 2013 Bill is currently being considered by the NCOP select committee on Land and Mineral Resources after undergoing a public participation process on this version of the 2013 Bill. If the NCOP makes no further changes to the 2013 Bill, and it is sent to the current President, Cyril Ramaphosa, for assent, it is not clear if the current President will view the earlier reservations around the constitutionality of the 2013 Bill to have been addressed and whether the 2013 Bill might be referred to the Constitutional Court of South Africa for a decision on its constitutionality. If the President does assent to the 2013 Bill, either after the NCOP makes substantial changes to the 2013 Bill or not, the 2013 Bill might still be subject to constitutional challenge. President Ramaphosa announced in his State of the Nation Address on 16 February 2018 that processing of the 2013 Bill through both houses of Parliament was at an advanced stage, with an indication by Parliament that the 2013 Bill is expected to be finalised during the first quarter of 2018.
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2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to alignappeal the Revised Mining Charter withoutcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.
The B-BBEE Act
The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Act, 53 of 2003, in order to ensure meaningful participation of black people and provide for policy and regulatory certainty to ease the investment
Environmental laws relating to mining
The BBBEE AmendmentNational Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a number of changes tocompany are jointly and severally liable for any negative impact on the framework underenvironment, whether advertently or inadvertently caused by the BBBEE Act, including:company they represent, including damage, degradation and pollution.
AngloGold Ashanti’s rights and permits
Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).
With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the BBBEE Amendment Act. The provision became effective as from 24 October 2016.
Democratic Republic of the Congo (DRC)
General laws relating to mining
The mining industry in the Democratic Republic of the Congo (DRC)DRC is currently undergoing a reform as the Mining Code enacted inprimarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended and which, until recently, was the primary regulation in the mining sector, was amendedsupplemented by Law noNo. 18/001 as adopted on 29 January 2018 and as enacted by the President of the Republic ondated 9 March 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended and supplemented by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).
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With respect to the application of the Reformed Mining Code). The ReformedDRC Mining Code calls forand Reformed DRC Mining Regulations, Kibali Goldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.
Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a ten-year stability provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory texts, including the amendment and update of the Mining Regulations, originally promulgated in March 2003regime, their rights with respect to support the 2002 Mining Code. These regulatory texts are being drafted and negotiations between major mining companies and the DRC Government are ongoing in their respect. In its current form, the Reformed Mining Code increases the title holders’ tax burden by widening the basis for and increasing the rate of the mining royalties’ rates (the royalty rate applicable to gold increased from two and one-half percent to three and one-half percent). The Reformed Mining Code also
The Reformed DRC Mining Code continues to vestgrants the DRC Minister of Mines with the authority to grant, refuse, suspend andor terminate mineral rights, although such authority issubject to be exercised upon conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years renewable once for a further five-year period or in the form of miningexploitation permits which are granted for an initial period of 25 years. Anyears, renewable several times for 15-year periods until the end of the mine’s life. Prior to commencing exploration work, the holder of an exploration permit may, at any time before expiry, be transformed partially intomust submit for approval a mining licence or a small-scale mining permit. Miningmitigation and rehabilitation plan pursuant to which it must undertake to carry out certain mitigation measures of the impact of its activities on the environment, as well as rehabilitation measures. Exploitation permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental and social impact study and an environmental and social management plan.
The holder of a miningan exploitation permit is required to commence development and mine construction within three years of the awardgrant of such permit. Failure to do so may lead to forfeiture of the miningexploitation permit. A permit holder must comply with specific rules relating to, amongst others, protection of the environment, cultural heritage, health and safety, construction and infrastructure planning. Mining and exploration activities are required to be undertaken so as to affect as little as possible the interests of lawful occupants of land and surface rights holders, including their customary rights. The exercise of mineral rights by title holders which effectively deprives or interferes with the rights of occupants and surface rights holders requires payment of fair compensation by the mineral title holder.
To protect and enforce rights acquired under an exploration or miningexploitation permit, the Reformed DRC Mining Code provides, depending on the nature of athe dispute or threat,controversy, administrative, judicial and national or international arbitral recourses.
Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at five percent, which was increased to ten percent in respect of exploitation permits issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional five percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a ten percent local contributory participation is also mandatory for exploitation permits issued after its entry into force.
Tax laws relating to mining
The Reformed DRC Mining Code sets out taxes, charges,an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties and other fees payable to the treasury by a mining title holder in respect of its activities. It also provides for a level of fiscal stability, in that existing tax, customs and exchange control provisionsDRC government. The royalty rate applicable to the mining activitiesgold has been set at 3.5 percent. Mining title holders are guaranteedalso required to remain unchanged, forcontribute a periodminimum of 5 years from the enactment0.3 percent of the Reformed Mining Code.total turnover to community development.
The Convention reducesReformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the withholding tax on dividends paid by companies residentinvestment amortisation period and 100 percent once the investment amortisation is completed.
During 2022, AngloGold Ashanti repatriated $694 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $658 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $36 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to companies resident in South Africa from 20 percent$40 million as of 31 December 2022. The cash is fully available for the operational requirements of Kibali Goldmines. The cash and cash equivalents held at Kibali Goldmines are subject to five percentvarious steps before they can be distributed to Kibali (Jersey) Limited and on interest paid by companies residentare held across four banks in the DRC, to companies resident in South Africa from 20 percent to 10 percent. A South African company must own at least 25 percentincluding two domestic banks.
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AngloGold Ashanti’s rights and permits
AngloGold Ashanti holds a significant stake in the Kibali gold projectmine which is located in the north-eastern part of the DRC. The project is operated by Randgold Resources andKibali gold mine is owned by Randgold ResourcesKibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto SA (SOKIMO)S.A. (“SOKIMO”) (10 percent), which latter share represents the interest of the DRC governmentgovernment. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in theKibali (Jersey) Limited which holds their respective 45 percent interest in Kibali Goldmines.
The Kibali gold project.
Ghana
General laws relating to mining
Control of minerals and mining companies
The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (GMM Act)(the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease.
The grant of a mining lease by the Ghana Minister of Lands &and Natural Resources (MOLNR)(the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament.
The Ghana MOLNRLNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming, or remaining, such a controller.
Stability agreementand development agreements
The GMM Act provides for stability and development agreements. Stability agreements asguarantee for a mechanism to guaranteeperiod of 15 years certain terms and conditions mainly fiscal,(mainly fiscal) to which a company’s operations are subject forsubject. Development agreements may be granted to a period of 15 years.mineral right holder that proposes to invest over $500 million in its mineral operations in Ghana. The GMM Act permits stability provisions to be incorporated into development agreements. Stability and development agreements are subject to ratificationparliamentary ratification. In January 2020, it was proposed that the GMM Act be amended by Parliament.abolishing development agreements and shortening the maximum term of stability agreements from 15 years to five years (with a possible extension for a further five years). If the GMM Act were amended along these lines, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below). Those amendments to the GMM Act have not yet been adopted.
In 2004, following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited, AngloGold Limited and the Government of Ghana agreed on the terms ofsigned a stability agreement (Ghana(the “Ghana Stability Agreement) to governAgreement”) governing certain aspects of the fiscal and regulatory framework underwithin which AngloGold Ashantithe company would operate in Ghana following the implementation of the business combination. The Ghana Stability Agreement necessitated the amendment of the Obuasi mining lease which had been ratified by Parliament.
The Ghana Stability Agreement continued to permitapply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. AGA Iduapriem benefits from certain concessions under two deeds of warranty, including exemptions from withholding taxes on dividends, interest and any or allpayments for foreign services, and allowable deductions.
Obuasi Development Agreement
AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of its subsidiariesGhana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to retainthe Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of ten years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of export proceeds received from exporting minerals in foreign currencies offshore, or if such foreign currency is heldoutside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to guarantee the availabilitypeaceful enjoyment and protection against expropriation.
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Fiscal terms, which would ordinarily form part of a mining company, in respect of its assets and operations in Ghana.
Government’s Golden Share
Section 60(1) of the five percent allowance on prior year additions. Prior to the 2012 amendment, the tax code granted an additional five percent of the value of assets acquired and qualified to be classified as class 3 assets for the purpose of granting capital allowances. Capital allowance is now 20 percent each year on the total value of the assets. Pursuant to the Ghana Stability Agreement, this change will not affect AngloGold Ashanti until 2019.
| Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary |
Tax laws relating to participatemining
Currently, the main tax laws in any offer of securities to existing shareholders or in any capitalisation issue.Ghana include the following acts and regulations, which have been frequently amended over the years:
•Customs Act, 20122015 (Act 852) also imposes a two891) (as amended) and one-half percent VAT payable on goods and services. The total VAT payable on goods and services is therefore 17.5 percent. The Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) extended the coverage of the tax to some business activities which were hitherto outside the tax net. These included the supply of financial services that are rendered for a fee, commission or a similar charge(as amended) and the manufacture or supply of pharmaceuticals. The implementation of the charging of VAT in relation to these two services has however been suspended until further notice. These taxes do not have an adverse effect on the Company since they do not directly impact its operations.
•Revenue Administration Act, 2017,2016 (Act 948) was passed to amend the Value Added Tax 2013,915) (as amended); and
•Exemptions Act, 2022 (Act 870). The Amendment, among other changes, classifies the supply of financial services and gives legal backing to a three percent VAT Flat Rate Scheme (FRS)1083).
The FRS applies to all wholesalers and retailers including suppliers who import to resell on wholesale or retail. Prior to the introduction of the FRS, suppliers were allowed to charge 17.5 percent against the output tax charged on the value of their supplies. However, suppliers are currently prohibited to charge the 17.5 percent under the new scheme. Hence the 17.5 percent is rather inculcated into the price of goods/ products supplied, passing on the costs to the consumer. Thus, goods purchased by AngloGold Ashanti from its suppliers fall within this bracket and have turned out to be more expensive than previously.
The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 15 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a one percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the ITA as follows:
The Exemptions Act, 2022 (Act 1083) (“Exemptions Act”) defines the scope of tax exemptions that may be granted under Ghanaian law, and sets out the administrative process for obtaining a tax exemption. The Exemptions Act requires a person with the benefit of an existing tax exemption to apply to the Ghana Minister of Finance by 11 March 2023 in order to continue to benefit from that tax exemption. The requirement to apply to the Minister of Finance does not exceed GHS 200,000 (insteadaffect AGA Ghana (as, by virtue of the initial presumptive taxObuasi DA, AGA Ghana is stabilized against the adverse effects of, three percent payable where the turnover was more than GHS 20,000 but did not exceed GHS 120,000); and
Environmental laws relating to reducemining
Mining companies are required, under the income tax imposedGMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652), Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission, the Forestry Commission and/or the Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the wagesenvironment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any
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adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and temporary workersMining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the previous rateInspectorate Division of seventhe Minerals Commission for the operation of mines. The environmental permits of AGA Ghana (for the Obuasi redevelopment project and one-half percent to 15 percent to a fixed ratefor the construction and operation of five percent.tailings and water infrastructure projects) are valid until June 2024. The rateenvironmental permits for AGA Iduapriem in connection with (i) gold mining and processing, (ii) the re-mining of tax imposed onBlock 5 and for the chargeable incometertiary crusher installation project and (iii) the construction and operation of a non-resident temporary worker is 20 percent. A resident temporary worker’s chargeable income is taxed as follows: the first GHS 2,592 is exempt from tax, the next GHS 1,296 is subject to five percent tax, the next GHS 1,812 is subject to 10 percent tax, the next GHS 33,180 is subject to 17.5 percent taxtailings storage facility (“TSF”) expired in August 2021, July 2022 and any amount exceeding GHS 38,880 is subject to 25 percent tax.
January 2023, respectively. The Income Tax (Amendment) Act, 2017 (Act 941) providesrenewal process for the exemption from taxAGA Iduapriem environmental permits, which was commenced in advance of the gains from the realisation of securities listed on the Ghana Stock Exchange.
Environmental laws in Ghana also exempts from tax for five years, the income ofrequire mining operators to rehabilitate land negatively impacted by mining operations according to an entrepreneur (who is not more than 35 years old) from the business of manufacturing, information and communications technology, agro processing, energy production, waste processing, tourism and creative arts, horticulture and medicinal plants.
Foreign exchange, export and other rules
Retention of foreign earnings
Rules regarding the Bankexport of Ghana issued new directives as part of measures to streamline the collectiongold and repatriation of export proceeds to Ghana. These directives included an instruction to all banks and authorised dealers to, within five working days of receipt of export proceeds, convert the proceeds into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 percentage in points (pips). Exporters with retention accounts were to continue to operate these accounts in accordance with their retention agreements. Retention proceeds which were sold to the banks were to be converted into Ghana cedis based on the average Interbank Foreign Exchange Rate prevailing on the day of conversion with a spread not exceeding 200 pips. It further advised that offshore foreign exchange transactions by resident companies, including exporters, were strictly prohibited and exporters were to ensure that all export proceeds are repatriated in full. Failure to comply with the provisions attracts penalties including pecuniary sanctions, jail terms, suspension and revocation of the operating licence as applicable.diamonds
The Bank of Ghana on 9 August 2014 further revisedintroduced new measures to regulate and monitor the rules on foreign exchange operations, effectively reversingexport of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the initial directives controlling transactions in foreign exchange.Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The details are as follows:
Local assaying and refinement policies
In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as theydesignated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were beforeopposed to this directive due to its potential negative impact on mining companies in the Notices of February 4, 2014.
Local content and processes and in compliance with the risk management guidelines of the Bank of Ghana.
Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. Recently passedThe Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy.
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The Minerals Commission issued a directiveGovernment’s election to all mining companies and mine support service providers to notify the Commission of all expatriate visitors to mine sites pursuant to the Minerals and Mining (General) Regulations 2012 (LI 2173) and the Minerals and Mining (Support Services) Regulations 2012 (LI 2174).purchase gold
In June 2014,2021, the Ghana Environmental Protection Agency and the Minerals Commission circulated draft Mining and Environmental Guidelines to all mining companies for comment. The guidelines concern environmental management, reclamation, closure requirements and the proposed Mining Community Development Scheme. The Mining Community Development Scheme has since been established pursuant to the Minerals Development Fund Act 2016 (Act 912), discussed above.
AngloGold Ashanti’s rights and such other fees as are prescribed by legislation, including royalties on timber felled within the lease area.permits
Obuasi
The currentObuasi mine originally held four contiguous mining lease forleases, namely, the Obuasi, areaBinsere 1, Binsere 2 and Binsere 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994. It grants mining concessions to land with1994, covering an area of approximately 338 square kilometreskm2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In addition, a mining lease over an adjacent 140 square kilometres was also granted, resulting inMarch 2007, the total area under the mining lease increasing to 474 square kilometres.
The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AngloGold AshantiAGA Ghana’s application to surrender approximately 273.54 square kilometreskm2 of the area to the Government of Ghana, reducing the combined area under AGA Ghana’s lease areas to 201.46 square kilometres.km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2 under three mining leases, namely, the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.
Iduapriem
The Iduapriem has title to a 31 square kilometremine operates under four different mining lease granted on 19 April 1989leases, namely, the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 30 years. In January 2009 Iduapriem obtained a new mining lease, the Ajopa Concession, for a period of 10 years. The concession covers an area of 48.34 square kilometres. In December 2011 the Minister of Lands15 years and Natural Resources gave his consent for Teberebie’s title to a 25.83 square kilometre mining lease, grantedsuch leases will now expire in June 1992 for a period of 30 years, to be assigned to Iduapriem. While ownershipFebruary 2035. All leases in respect of the lease has passed to Iduapriem the registration of the transfer of the lease is stillmine have been duly ratified in process.accordance with Ghanaian law.
Guinea
General laws relating to mining
In Guinea, all mineral substances are the property of the State. Mining activities aremining industry is primarily regulated by lawLaw L/2011/006/CNT dated 9 September 2011 as amended by lawLaw L/2013/053/CNT dated 8 April 2013 and promulgated by decreeDecree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code)Code”).
The Guinea Mining Code is accompanied and implemented by various implementation decrees. To date, various decrees have been adopted,and orders, including decreeDecree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, orderOrder A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, decreeand Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016, and decree D/2016/215/PRG/SRG on the appointment of executives to the Ministry of Mines and Geology, dated 8 July 2016.
In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the modalities regardingconditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Local Development Fund (Fodel)Fodel, which was created under the Guinea Mining Code have been enactedCode. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of decree D/2017/285/PRG/SGG setting the conditions for the constitution and management of the Fodel, dated 31 October 2017 and the joint order A/2017/6326/Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the use,constitution, powers and management and controlof said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the Fodel,implementation of public and private projects in Guinea. On 27 May 2021, Order A/2021/1229/MMG/SGG was issued to establish the Steering Committee for local content in the mining sector. On 21 October 2022, Law L/2022/010/CNT, dated 22 November 2017. Also,September 2022, setting up the legal framework for local content in public and private projects was enacted (the “Local Content Act”). In particular, the Local Content Act regulates local employment, procurement of goods and services, and subcontracting
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requirements. As the Local Content Act does not expressly repeal the provisions of Decree D/2019/263/PRG/SGG, those provisions remain in force to the extent that they do not conflict with the Local Content Act.
On 16 June 2020, a joint order AC/2017/3228/MATD/MMG/new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, updatingwhich sets out, amongst other things: (i) when the act on the establishment, attribution and functioningindustrial production tax referred to in article 161-1 of the coordination committees in mining communities (CCLMS), dated 21 July 2017 has beenGuinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.
On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Ministry of Territorial Administration and DecentralisationGuinean mining authorities and the MinistryGuinean Central Bank in connection with the administrative procedures for the export of Minesgold by industrial and Geology. The main purpose of the CCLMs, in which all concerned mining companies are represented, being to preventsemi-industrial companies.
AngloGold Ashanti’s rights and settle disputes that may arise in mining communities.permits
The right to undertake mining operations can only be acquired by virtue of one of the following mining titles: surveying permit, small-scale mining licence, exploration licence, mining licence or mining concession.
On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (Convention de baseBase Révisée et Consolidée) (the Revised Convention de Base)“Revised Mining Convention”) which encompasses a renewal of the term of the original Convention de Basemining convention and other amendmentamendments necessary to support an expansion project proposed to extend the life of the Siguiri mine (the Expansion)“Expansion”).
In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention de Base was ratified by the Guinean National Assembly (law(Law L/2016/N°067/AN dated 30 December 2016, promulgated by decreeDecree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (judgment(Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic (decreeof Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017).
Key elements of the Revised Mining Convention de Base include the following:
•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue at that time; and with continue;
•the term of the Mining Concession beingis aligned with the term of the Revised Mining Convention de Base such thatsince the Republic of Guinea committed to maintain the Mining Concession will be renewed as long asfor the entire duration of the Revised Convention de Base remains in force;Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Convention de Base;Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, de Base, and subject to certain conditionconditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of five percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: three percent if the gold price is USD 1,300$1,300 or less, five percent, if above USD 1,300$1,300 and up to USD 2,000$2,000 and seven percent if above USD 2,000;$2,000;
•SAG will enjoy a 5 yearbenefits from 5-year income tax holiday as and from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a 10ten percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.
The Mining Concession covers an area divided into four blocks and totalling approximately 1,495 square kilometres.km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the period of the Revised Convention de Base.Mining Convention. The Revised Mining Convention de Base also grants SAG with the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. While the Mining Concession expired on 4 August 2022, a renewal request had been filed prior to its expiry in accordance with the provisions of the Revised Mining Convention on 1 February 2022. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed ten years each as long as the Revised Mining Convention is in force.
The Revised Mining Convention de Base is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of twelve12 months or are permanently abandoned by SAG;SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.
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Mali
The mining industry in Mali are governedis primarily regulated by law n°2010-015Ordinance No. 2019-022/P-RM dated 27 February 2012 bearing Malian Mining Code (New Mining Code), replacing ordinance No. 99-32/P-RM of 19 August 1999 enactingSeptember 2019 containing the previousnew mining code as amended by ordinance n°013/2000/P-RM of 10 February 2000 and ratified by law n°00-011the Republic of 30 May 2000 (1999Mali (the “Mali Mining Code),Code”) and Decree No. 99-255/P-RM of 15 September 19992020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.
the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the lawlaws of Mali. The permit holder willMali and assign the permit for free to this company. The State will have a 10ten percent free carriedfree-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company is required to ensure that private Malian investors are offered the possibility to acquire five percent of their capital.
All mining titles mentioned above (save for the exploration authorisation) require an establishmenta mining convention (convention(convention d’établissement)tablissement) to be signed by the State and the titleholder defining their rights and obligations. A standard formobligations, the duration of such establishment convention has been approved by decree of the Head of Government.which is 20 years.
AngloGold Ashanti’s rights and permits
Historically, AngloGold Ashanti hashad interests in the Morila, Sadiola and Yatela gold mines, all of which arewere governed by establishmentmining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.
Tanzania
Tanzania Mining Act and Tanzania Mining Regulations
Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, of 2010 (Tanzania Mining Act)Chapter 123 (R.E. 2019), as amended in 2017,(the “Tanzania Mining Act”) and the Mining Regulations, 2010 (Tanzania2018 (the “Tanzania Mining Regulations), as amended in 2018, which include: Mining (Mineral Rights) Regulations 2018; Mining (Environmental Protection For Small Scale Mining) Regulations 2010; Mining (Mineral Beneficiation) Regulations 2018; Mining (Minerals and Mineral Concentrates Trading) Regulations 2018; Mining (Safety, Occupational Health and Environmental Protection) Regulations 2010; Mining (Radioactive Minerals) Regulations 2018, Mining (Local Content) Regulations, 2018, the Mining (Geological Survey) Regulations, 2018, and the Mining (Audit and InspectionRegulations”). The Tanzania
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Minimum shareholding and public offering
In 2016, the Local Content Committee (LC Committee) which will oversee the implementation of the Mining Regulations and which comprised of a member of the Commission, the Director of Labour and Employment, a member of the Tanzania Private Sector Foundation, the CEO of the Geological Survey of Tanzania, the head of legal services at the Ministry for Minerals and the Executive Secretary of the Commission. The LC Committee sets minimum standards for local content plans and reports to the Commission.
was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within six months of the regulations coming into force, which was on 24 February 2017. However, we believethe Company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.
Arbitration
Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the GoTGovernment of Tanzania to gain assurances that the Geita Gold Minegold mine will not be affected by theserecent legal and fiscal changes givenadopted by the Mine Development AgreementsGovernment in light of their mining development agreements which guarantee (i) fiscal and regulatory stability, as well asand (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti has commenced international arbitration proceedings against the GoTGovernment of Tanzania in connection with the enactment of this legislation as first announced in July 2017.
Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Mining Commission (“MC”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MC may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).
A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.
Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The Environmental Management (Feesholder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and Charges) (Amendment) Regulations, 2016 (the Regulations)such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special
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mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, amend the programme of the mining operations agreed with the MC.
Tax laws relating to mining
Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into effectforce on 2 May 2016 introduced new1 July 2015, the Finance Act, 2017 (No. 4), which came into force on 1 July 2017, and currently the Finance Act, 2022 (No. 5), which came into force on 1 July 2022. All tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of one percent of the gross value of the minerals has been paid by the exporter or any other person in relationpossession thereof. Local government levies and environmental management fees and charges apply as well.
Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the reviewenactment of this amendment to the VAT Act, mining companies were entitled to 100 percent VAT relief in respect of the Environmental Impact Assessmentgoods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on projectsa series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $153 million (after discounting provisions) as of 31 December 2022, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the National Environmental Management Council (NEMC). Accordingrestriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the Regulations,prohibition. On 1 July 2020, the fees involvedFinance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are ‘0.1%subject to verification procedures by the TRA before any refunds will be received. In 2022, the company was able to offset $45 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the total project costs’. However,TRA are ongoing to resolve our historical claims for VAT input credit refunds for the Regulations have not defined the phrase ‘project cost’ nor have they provided a detailed breakdown on the determination of the project cost.period from July 2017 to June 2020.
Natural Resources Legislationresources, export and other rules
Natural resources legislation
In Tanzania, two laws in Tanzania
Implementing regulations were published in January 2020. The Natural Resources laws requireLaws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly. InAssembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. The laws also require that new natural resources agreements to be reviewed by the Government.
In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. Every undertaking must demonstrate “guaranteed returns into the economy” fromAs such, all earnings accrueddisputes will be handles by Tanzanian judicial bodies or derived from such extraction, exploitation or acquisition and use.any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.
Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.
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State participation
On 23 September 2022, the Mining (State Participation) Regulations, 2022 (the “SPR 2022”) came into force. The SPR 2022 required every mining licence or special mining licence holder to give notice to the MC to initiate negotiations to enable the Government of Tanzania to acquire a shareholding in the mining operation by 23 December 2022. On 9 December 2022, the company notified the MC that it had already initiated negotiations with the Government of Tanzania prior to the coming into force of the SPR 2022. The Government’s equity interest must consist of a non-dilutable free-carried interest in the mining operation ranging between 16 percent and 50 percent depending, in part, on the quantification of tax expenditures enjoyed by the mining entity during its establishment and on the extent of Government development of public infrastructure servicing the mining operation. The free-carried interest shares (the “FCI shares”) will be regarded as preferred shares and will entitle the Government to a dividend. Further, the FCI shares give the Government the right to appoint two directors (out of five) of the company engaged in the mining operation and the right to approve at least two suitable persons to the top executive management of the company engaged in the mining operation as may be agreed in the shareholders agreement. Any other management positions created by the company engaged in the mining operation shall be shared with the Government on a ratio of 3:1. The SPR 2022 also provides for the non-deductibility of royalty payments in the calculation of corporate income tax.
Local participation policy
On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan to both the Labour Commissioner and the MC which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.
The Tanzania Investment Act No. 10 of 2022
On 2 December 2022, the Tanzania Investment Act, 2022 (No. 10) (the “Investment Act”) came into force. The Investment Act restores the right to international arbitration and grants foreign investors access to settle disputes with the Tanzania Investment Centre or the Government of Tanzania through arbitration. Pursuant to the Investment Act, parties to a dispute may agree to the use of a local or foreign arbitration venue.
AngloGold Ashanti’s rights and permits
The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. The internal renewal process for the special mining licence (SML45/99) is underway with a view to submitting an application for renewal prior to its expiry date. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from three percent to four percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, AngloGold Ashanti holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licences are in good standing.
AUSTRALIA
General laws relating to mining
In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories.
Native Titletitle legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of Native Titlenative title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should Native Titlenative title claims or determinations exist, certain Native Titlenative title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to Native Titlenative title rights. In the mining context, Native Titlenative title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, underin the state of Western Australia, the Mining Act 1978 (WA) liabilityprovides that an applicant for compensation associated with native title can be passed back tothe grant of, or the holder of, a mining tenement at the time of a determination ofis responsible for native title compensation.compensation, if determined to be payable, to native title holders.
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Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the Native Titlenative title legislation. TheyState and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) (the “ACH Act”) which was enacted in 2021. The regulations, management code and various guidelines which underpin the ACH Act are being co-designed by the State government, traditional owners, industry and other stakeholders. The ACH Act will not become fully operational until the co-design process is complete in mid-2023 at the earliest. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to Native Titlenative title or heritage legislation.legislation and, at this stage, it is not possible to predict any significant impact that may result in the future from the final regulations, management code and various guidelines under the ACH Act, once adopted.
AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property. In Western Australia, a general purpose lease may also be granted for one or more of a number of permitted purposes. These purposes include erecting, placing and operating machinery and plants in connection with mining operations, depositing or treating minerals or tailings and using the land for any other specified purpose directly connected with mining operations.
It is possible for an individual or entity to own an area of land (including for infrastructure purposespurposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.
Tax laws relating to mining
Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.
Environmental laws relating to mining
Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. In Western Australia, legislation removing the distinction between “works approvals” and “licenses” is expected to enter into force in December 2023 such that, following the effective date, only a “license” will be required for “prescribed activities”, which include relevant works and operations on a mining lease, and not a separate “works approval”. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.
AngloGold Ashanti’s rights and permits
AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the groupGroup and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.
At Sunrise Dam, one mining lease (M39/1116) covers the deposit is now situated upon two mining leases covering approximatelyand mine infrastructure (approximately 7,808 hectareshectares) and another mining lease of(M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares contains related infrastructure.hectares). Both leases are currently in good standing, with expiry dates in 2038.
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.
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At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.
AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 15 exploration permits covering 316,851 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.
AMERICAS
Argentina
Mining regime
The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.
The Argentinean Mining Code regulates exploration permits andas well as mining concessions.concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force.
Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.
In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196,196), as amended (the “Mining Investment Law”), and related legal provisions)provisions being the most important one. Such incentives include, amongst others,among other matters, import duty exemptions, accelerated depreciation of fixed assets, a 3three percent cap on Provincialprovincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.
On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The law also subjects on-going mining activities in those areas to an environmental audit. If such audit results in material impacts on glaciers and “peri-glacial” areas, the relevant authority is empowered to take action, including suspension or relocation of the activity. The lawGlacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must yet be surveyed by an existing national Government Agencygovernment agency specifically appointed to this end.end every five years. The constitutionality ofarea where the law has been challenged by some mining companies along withCerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the Province of San Juan (which hosts large mining projects). Injunctions granted by lower courts which had suspended the application of the law in that Province were lifted by the National Supreme Court of Justice of Argentina. Although the injunctions have been lifted, the language that the Court used in the decision implies that until an inventory of glaciers is completed as mandated by thewhich was published in June 2018.
Rural Land Law the case is moot. Therefore, the case has no practical implications for the operations of Cerro Vanguardia at this time.
On 27 December 2011, the Argentinean National Congress passed Law 26,737a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than 15 percent of the entire rural land of Argentina, the same cap being applicable to each provinceProvince and municipality;Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy
land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by this law,the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this
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new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.
On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed a document with the Federal Government entitledNew Federal Mining Agreement (FMA)(“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies in order to finance education, health and other programmes. Increase in royalty rates is not specifically contemplated in the FMA. The Provinces that signedAdditionally, the FMA had previously formed a special associationincluded setting forth mining royalties up to three percent of provinces, supported by the National Government.gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.
In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.
Foreign exchange and export rules
Foreign exchange controls
On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by the Consolidated Text on “Foreign Trade and Exchange” issued by the Argentinean Central Bank (as amended from time to time) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances.
In October 2022, the Argentinean national government implemented the Argentinean System of Imports (Sistema de Importaciones de la República Argentina) (“SIRA”) and the Argentinean System of Imports and Foreign Payments of Services (Sistema de Importaciones de la República Argentina y Pagos de Servicios al Exterior). Importers must obtain a SIRA approval in the form of a SIRA certificate for the import of goods and to access the foreign exchange market for payments in connection with the import of goods. Additionally, from 1 January 2023, Argentinean residents, such as CVSA, must comply with certain supplementary provisions in order to access the foreign exchange market without prior approval of the Argentinean Central Bank, unless an exception applies.
CVSA had a cash balance equivalent to $116 million at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $105 million (equivalent) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the Argentinean Central Bank approved, based on the applications submitted under this special regime, the payment of $17 million (equivalent) to AngloGold Ashanti. As a result, during 2022, AngloGold Ashanti received offshore dividends from CVSA in a total amount of $17 million (net of withholding taxes) paid in U.S. dollars. While the remaining approvals are pending, the cash remains fully available for CVSA’s operational and exploration requirements.
Export duties
On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed eight percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of eight percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.
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On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2019 Procedure”). CVSA initiated the 2019 Procedure to claim compensation for the export duties it paid in 2018, 2019 and 2020 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.
Pursuant to the 2019 Procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $2.0 million and $6.3 million, respectively, as of 31 December 2022. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $12.4 million as of 31 December 2022. The National Mining Secretary has not yet issued an opinion regarding this claim.
Furthermore, CVSA has requested the tax authorities to apply the 2019 Procedure in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $3.1 million as of 31 December 2022, are still being reviewed under the rules to challenge export duties instead of the 2019 Procedure. CVSA has appealed the application of those rules and a decision on this issue is pending.
On 9 June 2022, the Argentinean tax and mining authorities published a resolution (RC 5205/2022) establishing a new administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2022 Procedure”). This 2022 Procedure replaces the 2019 Procedure established by RC 4428/2019. On 20 September 2022, CVSA submitted its claim for compensation for the export duties in respect of fiscal year 2021, which amounted to approximately $11.2 million as of 31 December 2022, pursuant to the 2022 Procedure. This claim is currently under review by the National Mining Secretary.
In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million as of 31 December 2022.
Environmental laws relating to mining
Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, obligations to restore the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.
AngloGold Ashanti’s rights and permits
The mining concession holder of Cerro Vanguardia, the Company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.
Brazil
General legal aspectslaws relating to mining and land ownership
The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.
In Brazil, the National Mining Agency (ANM)(“ANM”) is the state body within the Mines and Energy Ministry (MME)(“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.
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Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (Minas Manifestadas)(minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.
Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration authorisations issued by the ANM are valid for one to threefour years. ExtensionsOne extension can be obtained if necessary,automatically as long as it is justified. For more than one extension, the extension request will have to satisfy specific legal requirements. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by the ANM, and (iii) refrain from suspending mining activities without prior notice to the ANM.
Tax laws relating to mining
During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (TAH - Taxa(Taxa Annual por Hectare)Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (CFEM - Compensaç(Compensação FinanceirapelaFinanceira pela Exploração Mineral)Mineral or “CFEM”). The CFEM which is one and one-half1.5 percent for gold is currently calculated based on revenues.
At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on research, extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. This tax could range from BRL3.00 to BRL6.50 per ton. In the statesstate of Minas Gerais, and Goias, however, gold ore wasand silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes was upheld by the Supreme Court of Brazil on 1 August 2022.
At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and 2017disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the National Congress for discussioncapacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and consideration. Its goals would bemigrating to (i) strengthendry-stacking operations, each by the role15 September 2021 deadline.
Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the Federal Government in regulatingcompliance deadline, with the mining industry, (ii) attract more and better investments to the mineral sector, (iii) encourage maximal use of Ore Reserve, and (iv) encourage membersconsent of the industry to add value to mineral products.
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As of 31 December 2022, AngloGold Ashanti has fully transitioned to dry-stacking operations for tailings storage at each location in Brazil. Capital expenditures required in 2022 to implement this new technology amounted to approximately $83 million. Capital expenditures for work required to comply with TSF-related requirements during the endperiod 2023-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of 2017, mostthese years will be less than in prior years and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).
At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contains the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.
In addition, ANM Resolution No. 95/22, which became effective on 22 February 2022, effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19, and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the changesgeotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to embargos at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. Construction at the Calcinados TSF is expected to begin later in 2023, and the timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
On 1 December 2022, the ANM published ANM Resolution No. 122/22, which relates to administrative sanctions for non-compliance with mining and dam safety regulations and which, in addition to significantly increasing the values of applicable fines and penalties, establishes procedures and parameters for available sanctions including seizures of ore, goods and equipment, suspension of mining activities, demolition of mine infrastructure and invalidation or cancellation of title and exploration licences.
Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams are expected to be adopted in 2023.
AngloGold Ashanti’s rights and permits
At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.
At Serra Grande, the Company has interests in or agreements over 25,719.94 hectares in the legislation initially suggested wereCrixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.
All of the Company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not approved, however, this legislation may be reintroduced in the same or similar form in the future.have an explicit expiry date.
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Colombia
General regime
The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first come,in time, first served.in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.
The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.
Concession contract
Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or extensions/modifications to the timelines. Force majeure was declared at the La Colosa project, stopping all activities, following the outcome of the plebiscite held on 26 March 2017 in the Colombian municipality of Cajamarca, which hosts the La Colosa exploration site. Thethese timelines are extended or modified. A grant of force majeure is for one year and will expire in June 2018, after which such declaration will need tomust be extended.
renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licenses. AngloGold Ashanti Colombia S.A. (AGAC) applied for consolidation of its concession contracts related to La Colosa, in respect of which AGAC was not in compliance with some of the specified timelines. The application for consolidation was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa haslicences. As a single concession which covers a total area of 9,210 hectares and expires on 28 February 2037.
PINES programme
In 2013, the contractual obligationsnational government instituted the PINES programme designed to aid promoting certain projects that arise from it are deemed to take effecthave a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).
Tax laws relating to mining
From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.
Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the date of registrationprimary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a five percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of four percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.
Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest one percent of the project’s value to benefit the basins covered by the environmental licence.
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Environmental laws relating to mining
In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Mining Register.Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.
wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance. Some forest reserves are not “protected”, but are set aside for active forestry purposes. Such forest reserves must be “extracted” after initial prospection, meaning thatpurposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 187/1987/2016, passed by the federalnational government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area. Certain areas designated as “paramos” are within
AngloGold Ashanti’s rights and permits
The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The most recent one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining footprint currently envisioned for La Colosa. AGAC is evaluating the impact of the Resolution 187/2016, if any, to the current plan for La Colosa. Further, the company is working with the federal government to determine if the designations contained in Resolution 187/2016 are technically accurately and legally defensible, and what the process will be to determine what work, if any, can be performed in certain paramos areas.
Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is registerednot automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the Mining Register. Such fees change basedstatus of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its seventh year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the numberspecific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the process of preparing a new Environmental Impact Assessment for the Quebradona project to submit to ANLA in connection with its environmental licence application.
The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares heldand includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract
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No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the concessionaire, as follows:
United States of America (Nevada)
General regime
Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government, and often the state government will have an ownership interest in minerals, regardless of whether the state is the surface owner.government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (General(the “General Mining Law).Law”), as well as relevant state statutes and regulations. The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands upon the discovery of a valuable mineral deposit andafter proper compliance with claim location and maintenance requirements.
Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorizationsauthorisations required for the company’s activities are based on the nature and location of the exploratory work. AngloGold Ashanti (U.S.A.) Exploration, Inc.’sMany of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CodeCFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Federal Regulations Section 3809.21. TheOperations approved by the federal Bureau of Land Management (BLM) issued a Notice(“BLM”). The State of Decision approving these exploration operations on 1 November 2017. The BLM determined that the operations would not cause unnecessary or undue degradation as defined under 43 CodeNevada Division of Federal Regulations Section 3809.5. An amendment to the project was approved by a BLM Notice of Decision dated 31 January 2018. The Notice of Decision requires reclamation of the drill pads and roads, including the reseeding of disturbed lands. The Notice of Decision also set the financial guarantee amount for reclamation. The Notice of Decision includes a two-year term from the date of 1 November 2017.
Potential regulatory changes
Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes.statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines, and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. The U.S. Environmental Protection Agency has alsoIn June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.
There are a number of bills being proposed potential revisions to financial assurancethe Nevada state legislature during the 2023 legislative session that could impact the company’s planned operations. These include proposed legislation that would alter the way water rights are administered by the state, as well as a bill that would, if enacted, impose additional requirements relating tofor environmental review of mineral development activities.
AGA is currently unaware of any other new Federalfederal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programs.programmes. If any of the above-referenced provisionsrequirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada and Minnesota could be adversely affected.
AngloGold Ashanti’s rights and permits
In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. The Silicon project consists of approximately 950 unpatented mining claims. The North Bullfrog project consists of 45 patented and approximately 1,600 unpatented mining claims (covering approximately 32,000 acres) situated in the Bullfrog mining district. There are also nine mining leases within the North Bullfrog project the majority of which continue in perpetuity so long as the company meets certain minimal requirements for use of the land. One mining lease is scheduled to expire in 2031. The Mother
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Lode project consists of 13 unpatented mining claims. The North Bullfrog and Mother Lode projects are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The southern claim block, encompassing the Sterling mine and other properties in the same general area, consists of approximately 1,900 unpatented claims (covering approximately 35,000 acres), which are now controlled by the company as a result of its acquisition of all of the outstanding stock of Coeur Sterling, Inc. (a subsidiary of Coeur Mining, Inc.), which closed on 4 November 2022. As a result of this acquisition, the company now controls a past-producing mine site in southern Nevada known as the Sterling mine, which has one applicable mining lease that expires in 2029, with the option to extend the lease for an additional ten-year period. Although the Sterling mine is currently in care and maintenance status, it remains subject to complex permitting and regulatory requirements, including compliance with relevant provisions of the U.S. Federal Mine Safety and Health Act of 1977 and oversight by the U.S. Department of Labor’s Mine Safety and Health Administration (“MSHA”).
MINE SITE REHABILITATION AND CLOSURE
Closure, an integral part of operations
All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for site closure and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.
AngloGold Ashanti revised its groupintegrates mine closure planning management standardthroughout the mine life cycle as follows:
•Exploration stage: developing a plan and programme for cessation and closure of exploration activities in 2013a manner that meets local laws and all of its operations are required to comply with the standard, as well as applicable law and regulations as theirAngloGold Ashanti's mine closure planning standard.
•Project phase: developing conceptual closure plans are reviewed and updated.cost estimates for all projects and including them in project feasibility studies, designs and evaluations.
•Operational phase: developing and periodically updating mine closure plans and cost estimates with increasing levels of detail and confidence over the operational phase as part of the business planning process. Closure planning is an activity that starts at the exploration and mine design stage and continues throughout the life of mine:
•Closure period: implementing the final closure plan starting at cessation of operations through a period of decommissioning, dismantling and rehabilitation until the point in time where management of the site is largely limited to monitoring and maintenance.
The company’sCompany’s group mine closure planning standard stipulates that closure planning must be undertaken in consultation with the community.stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Livelihood preservationEach mine closure plan includes a social transition plan which seeks to minimise social impacts and maximise opportunities for local communities, including human resource, social infrastructure, are often key requirements. Communities also require information oneconomic and financial assets with the company’s rehabilitationaim of enhancing the landscape and on any lasting environmental impacts. Long-term remediation obligations, including decommissioning and restoration liabilities relating to past operations, are based on environmental management plans and compliance with current environmental and regulatory requirements.self-sustainability of mine communities after mine closure.
Provisions for decommissioning and rehabilitationrestoration costs are made when there is a present obligation, it is probable that expenditure on decommissioning and rehabilitationrestoration work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the clean-up,rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.
Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
AngloGold Ashanti’s sustainability approach is fundamental to how the Company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the Company’s business and operations at all levels through various frameworks, standards and policies, and the Company measures its performance in methodology following requests fromachieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.
In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and
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the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).
AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, regulatory authorities. At 31 December 2017,safety, health and ethical matters and for the environmental rehabilitation provision was $695 million. The balanceintegration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the rehabilitation provisionCompany’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of $29 million was included under “Non-current liabilities heldits business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for sale”development of management systems and supports the Company’s general managers in the statementday-to-day implementation of financial position.its sustainability strategy.
AngloGold Ashanti maintains a set of policies and procedures to guide the Company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2022, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate, manage and monitor sustainability activities with respect to its broader business. This common management and reporting application for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.
Significant EHS requirements and ESG risks and trends affecting the Company’s mining and processing operations are described below.
EHS Regulatory Compliance
AngloGold Ashanti is subject to extensive environmental, health and safety (EHS)EHS laws and regulations in the various jurisdictions in which the companyCompany operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control)control and greenhouse gases (“GHGs”)); mine and dam safety, regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. In addition, environmentalEnvironmental laws and regulations applicable to the Company’s operations, including the requirements contained in
environmental permits, are generally becoming more restrictive. Significant EHS requirements, risks and trends affecting our mining and processing operations are described below.
Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend facilities, such as TSFs, or operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, ourthe right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate in particularnear host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the company’sCompany’s properties which may have been caused by previous owners or operators.
Water Management
AngloGold Ashanti’s mining and processing operations are heavily dependent upon access to substantial volumes of water required for such operations. Typically,use in the mining and extractive processes and typically are subject to water-use permits or water rights in each country impose limits on the quantity ofto extract water that can be extracted from certain natural sources that govern usage and require, among other things, that wastewater from mining operations meetmaintain certain water quality criteria upon discharge. Water supply, quality and usage are areas of concern globally, but are particularly significant foracross all of the Company’s operations, including with respect to the Company’s mining operations in Brazil, Ghana and South Africa, and for explorationBrazil, its mine development projects in Colombia, where there is significant potential environmental and social impact and a high level of stakeholder scrutiny.Nevada, as well as its mine development project at Quebradona in Colombia. Any failure by the Company to secure access to suitable water supplies, or achieve and maintain compliance with theapplicable requirements of the permits or licenses,licences, could result in curtailment or suspensionhalting of production at the affected operation.operations. Incidents of water pollution or shortage can, in extremecertain cases, lead to community protest and ultimately result into the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the company’sCompany to comply with water contamination related directives may result in further, more stringent, directives being issued against the Company, which may, in some cases, result in a temporary or partial shutdown of some of the Company’s operations.
Where feasible, the companyCompany operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment ifwhere necessary, must take place.
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Waste Management
During open-pit mining, large volumes of soil and/or rock (overburden) are generatedmined to expose the ore body. Similarly, waste rock is generatedmined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock dumps.facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.
The impact of adust generation, breach, leak, or other failure of a tailings storagewaste rock facility or TSF, including any associated dam, can be significant, and the companyCompany therefore monitors such facilities closely in accordance with the company’sCompany’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party tailings facilityTSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. AnA safety or environmental incident at the company’sCompany’s operations could result, among other things, in enforcement, including mandatory shutdown of a TSF and related facilities, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury and negative press coverage. An incidentby adjacent communities. Incidents at another company’sother mining companies’ operations has potential tocould result in governments tighteninggovernmental action to tighten regulatory requirements applicableand restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.
For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and restricting other mine operatorsthe requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For example, in response.late 2022, tailings deposition was suspended at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (“DCO”) and/or geotechnical stability (“DCE”) consistent with new regulatory standards enacted in early 2022. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. The timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025, and the costs related to meeting such standard are not expected to be material to AngloGold Ashanti.
In addition, AngloGold Ashanti could incur liabilities, or material costs to manage solid and hazardous waste generated by its mining activities, including dust and residual chemicals and metals. For example, AngloGold Ashanti expects to incur approximately $25 million to $30 million in capital expenditure and operating costs during 2023-2026 in connection with treatment and disposal of a quantity of legacy arsenic trioxide waste located at the Obuasi mine.
As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.
General laws relating to mining
The MPRDA
The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.
The mining charter
Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In November
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2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.
The B-BBEE Act
The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.
Environmental Remediationlaws relating to mining
The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.
From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.
AngloGold Ashanti’s rights and permits
Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).
With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. The Harmony Consolidation Application, which was submitted to the DMRE on 17 January 2022, is still pending. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the Company, other than the statutory duty of care in terms of NEMA as described above.
AFRICA REGION
Democratic Republic of the Congo (DRC)
General laws relating to mining
The mining industry in the DRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended and supplemented by Law No. 18/001 dated 9 March 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended and supplemented by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).
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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, Kibali Goldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.
Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a ten-year stability provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory regime, their rights with respect to such stability provision are reserved.
The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years renewable once for a further five-year period or in the form of exploitation permits which are granted for an initial period of 25 years, renewable several times for 15-year periods until the end of the mine’s life. Prior to commencing exploration work, the holder of an exploration permit must submit for approval a mitigation and rehabilitation plan pursuant to which it must undertake to carry out certain mitigation measures of the impact of its activities on the environment, as well as rehabilitation measures. Exploitation permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental and social impact study and an environmental and social management plan. The holder of an exploitation permit is required to commence development and mine construction within three years of the grant of such permit. Failure to do so may lead to forfeiture of the exploitation permit. To protect and enforce rights acquired under an exploration or exploitation permit, the Reformed DRC Mining Code provides, depending on the nature of the dispute or controversy, administrative, judicial and national or international arbitral recourses.
Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at five percent, which was increased to ten percent in respect of exploitation permits issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional five percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a ten percent local contributory participation is also mandatory for exploitation permits issued after its entry into force.
Tax laws relating to mining
The Reformed DRC Mining Code sets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.
The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2022, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $86 million as of 31 December 2022. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.
The Reformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the enactment of the Reformed DRC Mining Code.
Foreign exchange control regime
The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed.
During 2022, AngloGold Ashanti repatriated $694 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $658 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $36 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $40 million as of 31 December 2022. The cash is fully available for the operational requirements of Kibali Goldmines. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.
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AngloGold Ashanti’s rights and permits
AngloGold Ashanti holds a significant stake in the Kibali gold mine which is located in the north-eastern part of the DRC. The Kibali gold mine is owned by Kibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto S.A. (“SOKIMO”) (10 percent) which represents the interest of the DRC government. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in Kibali (Jersey) Limited which holds their respective 45 percent interest in Kibali Goldmines.
The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.
Ghana
General laws relating to mining
Control of minerals and mining companies
The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has identified groundwater contamination plumesthe power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming, or remaining, a controller.
Stability and development agreements
The GMM Act provides for stability and development agreements. Stability agreements guarantee for a period of 15 years certain terms and conditions (mainly fiscal) to which a company’s operations are subject. Development agreements may be granted to a mineral right holder that proposes to invest over $500 million in its mineral operations in Ghana. The GMM Act permits stability provisions to be incorporated into development agreements. Stability and development agreements are subject to parliamentary ratification. In January 2020, it was proposed that the GMM Act be amended by abolishing development agreements and shortening the maximum term of stability agreements from 15 years to five years (with a possible extension for a further five years). If the GMM Act were amended along these lines, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below). Those amendments to the GMM Act have not yet been adopted.
Ghana Stability Agreement
In 2004, following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework within which the company would operate in Ghana for a period of 15 years. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine because of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to that mine (as described below).
The Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. AGA Iduapriem benefits from certain concessions under two deeds of warranty, including exemptions from withholding taxes on dividends, interest and payments for foreign services, and allowable deductions.
Obuasi Development Agreement
AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of ten years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.
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Obuasi Tax Concession Agreement
Fiscal terms, which would ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from three percent to five percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of five percent); and (iv) certain VAT exemptions and refunds.
Government’s Golden Share
Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue to the Republic of Ghana for no consideration a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.
Tax laws relating to mining
Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243);
•Revenue Administration Act, 2016 (Act 915) (as amended); and
•Exemptions Act, 2022 (Act 1083).
The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at certainthe rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.
Furthermore, mining companies must pay ground rent and royalties. Ground rent is payable annually and is calculated based on the number of cadastral units of land held. Royalties are calculated as a percentage of total revenue from minerals obtained by the mining company. The Government of Ghana currently applies a five percent royalty rate to mining companies who have not agreed a different royalty rate under an agreement with the State. AGA Ghana pays royalties on a sliding scale ranging between three percent and five percent as provided for by the Obuasi TCA. AGA Iduapriem pays royalties at a rate of five percent.
The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 15 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a one percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi DA), the Company decided to pay the COVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of these levies.
The Exemptions Act, 2022 (Act 1083) (“Exemptions Act”) defines the scope of tax exemptions that may be granted under Ghanaian law, and sets out the administrative process for obtaining a tax exemption. The Exemptions Act requires a person with the benefit of an existing tax exemption to apply to the Ghana Minister of Finance by 11 March 2023 in order to continue to benefit from that tax exemption. The requirement to apply to the Minister of Finance does not affect AGA Ghana (as, by virtue of the Obuasi DA, AGA Ghana is stabilized against the adverse effects of, or obligations imposed by, any new laws). By contrast, AGA Iduapriem is subject to the provisions of the Exemptions Act.
Environmental laws relating to mining
Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652), Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission, the Forestry Commission and/or the Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any
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adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Minerals Commission for the operation of mines. The environmental permits of AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until June 2024. The environmental permits for AGA Iduapriem in connection with (i) gold mining and processing, (ii) the re-mining of Block 5 and for the tertiary crusher installation project and (iii) the construction and operation of a tailings storage facility (“TSF”) expired in August 2021, July 2022 and January 2023, respectively. The renewal process for the AGA Iduapriem environmental permits, which was commenced in advance of the expiry of the permits, is underway.
Environmental laws in Ghana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of rehabilitating the mining area at the end of the life of the mine as well as the cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem expired in October 2022, whereas the guarantees for AGA Ghana expired in December 2022. Renewal of the bank guarantees (which commenced in advance of the expiry of the existing guarantees) has not yet been completed due to the continued depreciation of the Ghanaian cedi and its impact on the Bank of Ghana’s single obligor limit. AGA Ghana and AGA Iduapriem have notified the Ghana EPA of the resultant delays.
Foreign exchange, export and other rules
Retention of foreign earnings
The Obuasi mine is permitted to retain 80 percent of its operations. Numerous scientific, technicalforeign exchange earnings in an offshore foreign exchange account, whereas the Iduapriem mine is allowed to retain up to 75 percent. In addition, the Company has permission from the Bank of Ghana to retain and legal studiesuse U.S. dollars outside of Ghana to fulfil payment obligations to the Company’s hedge counterparties which cannot be met from the cash resources of its treasury company.
Rules regarding the export of gold and diamonds
The Bank of Ghana introduced new measures to regulate and monitor the export of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The Ghana Revenue Authority (Customs Division) only permits gold to be exported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the Company holds a licence granted by the LNR Minister to sell and export its production.
Local assaying and refinement policies
In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.
Local content and local participation policy
Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020 with the purpose of developing Ghanaian participation in the mining industry value chain by imposing an obligation on mining companies to procure goods and services with Ghanaian content to the maximum extent possible.
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The Government’s election to purchase gold
In June 2021, the Bank of Ghana launched a “Domestic Gold Purchase Programme” through which the Bank of Ghana intends to purchase refined gold from AGA Ghana, AGA Iduapriem and other large-scale mining companies through voluntary arrangements pursuant to the Bank of Ghana Act, 2002 (Act 612). The LNR Minister indicated in November 2022 that the Government of Ghana intended to exercise its statutory right of pre-emption pursuant to the GMM Act to compel large-scale mining companies to sell 20 percent of their Ghana gold production and/or the resultant refined gold to the Bank of Ghana in exchange for Ghanaian cedis. Each of AGA Ghana and AGA Iduapriem executed voluntary gold purchase agreements with the Bank of Ghana on 29 December 2022. As at 10 March 2023, the Government of Ghana had not exercised its statutory right of pre-emption as prescribed in the GMM Act.
AngloGold Ashanti’s rights and permits
Obuasi
The Obuasi mine originally held four contiguous mining leases, namely, the Obuasi, Binsere 1, Binsere 2 and Binsere 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the combined area under AGA Ghana’s lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2 under three mining leases, namely, the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.
Iduapriem
The Iduapriem mine operates under four different mining leases, namely, the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been undertakenduly ratified in accordance with Ghanaian law.
Guinea
General laws relating to assistmining
In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).
The Guinea Mining Code is implemented by various decrees and orders, including Decree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, Order A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, and Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016.
In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in determining the magnitudeframework of the implementation of public and private projects in Guinea. On 27 May 2021, Order A/2021/1229/MMG/SGG was issued to establish the Steering Committee for local content in the mining sector. On 21 October 2022, Law L/2022/010/CNT, dated 22 September 2022, setting up the legal framework for local content in public and private projects was enacted (the “Local Content Act”). In particular, the Local Content Act regulates local employment, procurement of goods and services, and subcontracting
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requirements. As the Local Content Act does not expressly repeal the provisions of Decree D/2019/263/PRG/SGG, those provisions remain in force to the extent that they do not conflict with the Local Content Act.
On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.
On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.
AngloGold Ashanti’s rights and permits
The Group’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (Convention de Base Révisée et Consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.
Key elements of the Revised Mining Convention include the following:
•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations continue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of five percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: three percent if the gold price is $1,300 or less, five percent, if above $1,300 and up to $2,000 and seven percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a ten percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.
The Mining Concession covers an area divided into four blocks totalling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. While the Mining Concession expired on 4 August 2022, a renewal request had been filed prior to its expiry in accordance with the provisions of the Revised Mining Convention on 1 February 2022. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed ten years each as long as the Revised Mining Convention is in force.
The Revised Mining Convention is subject to early termination if the parties formally and expressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.
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Mali
General laws relating to mining
The mining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the new mining code of the Republic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.
The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.
Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various documents attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.
A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for ten year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and to find sustainable remediation solutions. Based on those studiesrehabilitation plan as well as discussion with regulators,a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a ten percent free-carried interest in the company. This interest will be converted into priority shares and the State’s participation will not be diluted in case of an increase in capital. In addition, the company has taken steps, including monitored natural attenuationis required to ensure that private Malian investors are offered the possibility to acquire five percent of their capital.
All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and phyto-technologies,the titleholder defining their rights and obligations, the duration of which is 20 years.
AngloGold Ashanti’s rights and permits
Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.
In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to address soilrelinquish the property. In February 2019, AngloGold Ashanti and groundwater contamination. Subjectits joint venture partner IAMGOLD Corporation announced an agreement to sell each of their 40 percent interests in Yatela to the completionGovernment of trialsMali, which holds the remaining 20 percent interest. Completion of the transaction is subject to the fulfilment or waiver of a number of conditions precedent and has been delayed several times since 2019 due to political instability and related events in Mali as well as the COVID-19 pandemic. Yatela’s exploitation permit covers approximately 212 km2. Yatela has a 30-year permit which expires in 2030.
Tanzania
General laws relating to mining
Tanzania Mining Act and Tanzania Mining Regulations
Mineral rights in the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the technology beingMining Regulations, 2018 (the “Tanzania Mining Regulations”). The Tanzania
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Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. The Mining (Local Content) Regulations were amended and came into force on 23 September 2022. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements in employment and for procurement of goods and services; (iii) Mining Licence requirements of five percent of a proven remediation technique, no reliable estimate canlicencee’s equity to be madeheld by Tanzanians, with at this timeleast 80 percent of its managerial positions to be held by Tanzanians and 100 percent of non-managerial and other positions to be held by Tanzanians, in addition to the shareholding of the Government of Tanzania pursuant to Section 10 of the Tanzania Mining Act (i.e. free-carried interest); and (iv) regulations for the obligation. Should these obligationsgovernment warehousing of minerals prior to export/sale.
Minimum shareholding and public offering
In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The regulations set out the requirement to sell shares to Tanzanian nationals, by way of a public offering and listing on the Dar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within six months of the regulations coming into force, which was on 24 February 2017. However, the Company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.
Arbitration
Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be significant,affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability, and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this couldlegislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the Geita gold mine. AngloGold Ashanti is seeking confirmation from the Government of Tanzania that, as a result of its existing mining development agreement, the company does not fall within the scope of the new mining legislation that includes, among other things, (i) listing requirements; (ii) an increase in the rate of revenue royalties from four to six percent and a one percent clearance fee; and (iii) a right for the Government of Tanzania to (a) renegotiate existing mining agreements at its discretion, (b) receive a non-dilutable, free-carried interest of no less than 16 percent in all mining projects, and (c) acquire up to 50 percent of the shares of the mining company commensurate with the total tax expenditure incurred by the Government in favour of the mining company. AngloGold Ashanti can provide no assurance that the new mining legislation, including the listing requirements, will not apply to its operations in Tanzania and the outcome of the arbitration action may have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.
Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Mining Commission (“MC”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MC may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).
A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and projectsthe licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.
Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special
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| AMERICAS | CONTINENTAL AFRICA | SOUTH AFRICA | ||||||
| 1 | Argentina | 4 | Guinea | 9 | South Africa | |||
| Cerro Vanguardia (92.5%) | Siguiri (85%) | Vaal River | ||||||
| 2 | Brazil | 5 | Mali | Kopanang | ||||
| Serra Grande | Morila (40%)(1) | Moab Khotsong | ||||||
| AGA Mineração | Sadiola (41%) | West Wits | ||||||
| 3 | Colombia | 6 | Ghana | Mponeng | ||||
| Gramalote (51%) | Iduapriem | TauTona | ||||||
| La Colosa | Obuasi(3) | Surface Operations(2) | ||||||
| Quebradona (93.5%) | 7 | DRC | ||||||
Kibali (45%)(1) | ||||||||
| AUSTRALASIA | 8 | Tanzania | ||||||
| 10 | Australia | Geita | ||||||
| Sunrise Dam | ||||||||
| Tropicana (70%) | ||||||||
Currently, the ownershipmain tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, the Finance Act, 2017 (No. 4), which came into force on 1 July 2017, and currently the Finance Act, 2022 (No. 5), which came into force on 1 July 2022. All tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, ports, airports, border or posts and the clearing fee of one percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.
Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100 percent VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $153 million (after discounting provisions) as of 31 December 2022, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with the TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as a series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2022, the company was able to offset $45 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.
Natural resources, export and other rules
Natural resources legislation
In Tanzania, two laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the interests of the people of Tanzania. During a review all unconscionable terms as interpreted in accordance with the law are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.
Section 6 of the Unconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.
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State participation
On 23 September 2022, the Mining (State Participation) Regulations, 2022 (the “SPR 2022”) came into force. The SPR 2022 required every mining licence or special mining licence holder to give notice to the MC to initiate negotiations to enable the Government of Tanzania to acquire a shareholding in the mining operation by 23 December 2022. On 9 December 2022, the company notified the MC that it had already initiated negotiations with the Government of Tanzania prior to the coming into force of the SPR 2022. The Government’s equity interest must consist of a non-dilutable free-carried interest in the mining operation ranging between 16 percent and 50 percent depending, in part, on the quantification of tax expenditures enjoyed by the mining entity during its establishment and on the extent of Government development of public infrastructure servicing the mining operation. The free-carried interest shares (the “FCI shares”) will be regarded as preferred shares and will entitle the Government to a dividend. Further, the FCI shares give the Government the right to appoint two directors (out of five) of the company engaged in the mining operation and the right to approve at least two suitable persons to the top executive management of the company engaged in the mining operation as may be agreed in the shareholders agreement. Any other management positions created by the company engaged in the mining operation shall be shared with the Government on a ratio of 3:1. The SPR 2022 also provides for the non-deductibility of royalty payments in the calculation of corporate income tax.
Local participation policy
On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan to both the Labour Commissioner and the MC which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.
The Tanzania Investment Act No. 10 of 2022
On 2 December 2022, the Tanzania Investment Act, 2022 (No. 10) (the “Investment Act”) came into force. The Investment Act restores the right to international arbitration and grants foreign investors access to settle disputes with the Tanzania Investment Centre or the Government of Tanzania through arbitration. Pursuant to the Investment Act, parties to a dispute may agree to the use of a local or foreign arbitration venue.
AngloGold Ashanti’s rights and permits
The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti whether held directlyhas concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. The internal renewal process for the special mining licence (SML45/99) is underway with a view to submitting an application for renewal prior to its expiry date. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from three percent to four percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, AngloGold Ashanti holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licences are in good standing.
AUSTRALIA
General laws relating to mining
In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories. Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or indirectly. Alldeterminations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.
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Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) (the “ACH Act”) which was enacted in 2021. The regulations, management code and various guidelines which underpin the ACH Act are being co-designed by the State government, traditional owners, industry and other stakeholders. The ACH Act will not become fully operational until the co-design process is complete in mid-2023 at the earliest. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation and, at this stage, it is not possible to predict any significant impact that may result in the future from the final regulations, management code and various guidelines under the ACH Act, once adopted.
AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are 100%-owned unless otherwise indicated.
governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.
Tax laws relating to mining
Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.
Environmental laws relating to mining
Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. In Western Australia, legislation removing the distinction between “works approvals” and “licenses” is expected to enter into force in December 2023 such that, following the effective date, only a “license” will be required for “prescribed activities”, which include relevant works and operations on a mining lease, and not a separate “works approval”. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.
AngloGold Ashanti’s rights and permits
AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the Group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.
At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.
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At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.
AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 15 exploration permits covering 316,851 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.
AMERICAS
Argentina
General laws relating to mining and land ownership
Mining regime
The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.
The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.
Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.
In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a three percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.
Glacier Law
On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.
Rural Land Law
On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than 15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this
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new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.
Federal Mining Agreement
On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.
In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.
Foreign exchange and export rules
Foreign exchange controls
On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by the Consolidated Text on “Foreign Trade and Exchange” issued by the Argentinean Central Bank (as amended from time to time) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances.
In October 2022, the Argentinean national government implemented the Argentinean System of Imports (Sistema de Importaciones de la República Argentina) (“SIRA”) and the Argentinean System of Imports and Foreign Payments of Services (Sistema de Importaciones de la República Argentina y Pagos de Servicios al Exterior). Importers must obtain a SIRA approval in the form of a SIRA certificate for the import of goods and to access the foreign exchange market for payments in connection with the import of goods. Additionally, from 1 January 2023, Argentinean residents, such as CVSA, must comply with certain supplementary provisions in order to access the foreign exchange market without prior approval of the Argentinean Central Bank, unless an exception applies.
CVSA had a cash balance equivalent to $116 million at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $105 million (equivalent) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the Argentinean Central Bank approved, based on the applications submitted under this special regime, the payment of $17 million (equivalent) to AngloGold Ashanti. As a result, during 2022, AngloGold Ashanti received offshore dividends from CVSA in a total amount of $17 million (net of withholding taxes) paid in U.S. dollars. While the remaining approvals are pending, the cash remains fully available for CVSA’s operational and exploration requirements.
Export duties
On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed eight percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of eight percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.
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On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2019 Procedure”). CVSA initiated the 2019 Procedure to claim compensation for the export duties it paid in 2018, 2019 and 2020 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.
Pursuant to the 2019 Procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $2.0 million and $6.3 million, respectively, as of 31 December 2022. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $12.4 million as of 31 December 2022. The National Mining Secretary has not yet issued an opinion regarding this claim.
Furthermore, CVSA has requested the tax authorities to apply the 2019 Procedure in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $3.1 million as of 31 December 2022, are still being reviewed under the rules to challenge export duties instead of the 2019 Procedure. CVSA has appealed the application of those rules and a decision on this issue is pending.
On 9 June 2022, the Argentinean tax and mining authorities published a resolution (RC 5205/2022) establishing a new administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2022 Procedure”). This 2022 Procedure replaces the 2019 Procedure established by RC 4428/2019. On 20 September 2022, CVSA submitted its claim for compensation for the export duties in respect of fiscal year 2021, which amounted to approximately $11.2 million as of 31 December 2022, pursuant to the 2022 Procedure. This claim is currently under review by the National Mining Secretary.
In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million as of 31 December 2022.
Environmental laws relating to mining
Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, obligations to restore the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.
AngloGold Ashanti’s rights and permits
The mining concession holder of Cerro Vanguardia, the Company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a globally diverse, world-class portfoliousufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.
Brazil
General laws relating to mining and land ownership
The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.
In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.
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Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.
Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration authorisations issued by the ANM are valid for one to four years. One extension can be obtained automatically as long as it is justified. For more than one extension, the extension request will have to satisfy specific legal requirements. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by the ANM, and (iii) refrain from suspending mining activities without prior notice to the ANM.
Tax laws relating to mining
During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.
At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes was upheld by the Supreme Court of Brazil on 1 August 2022.
Environmental laws relating to mining
Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.
At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.
Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. On 26 May 2022, the ANM issued a technical note allowing the extension until 2025. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.
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As of 31 December 2022, AngloGold Ashanti has fully transitioned to dry-stacking operations for tailings storage at each location in Brazil. Capital expenditures required in 2022 to implement this new technology amounted to approximately $83 million. Capital expenditures for work required to comply with TSF-related requirements during the period 2023-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be less than in prior years and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).
At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contains the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.
In addition, ANM Resolution No. 95/22, which became effective on 22 February 2022, effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19, and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the geotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to embargos at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. Construction at the Calcinados TSF is expected to begin later in 2023, and the timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
On 1 December 2022, the ANM published ANM Resolution No. 122/22, which relates to administrative sanctions for non-compliance with mining and dam safety regulations and which, in addition to significantly increasing the values of applicable fines and penalties, establishes procedures and parameters for available sanctions including seizures of ore, goods and equipment, suspension of mining activities, demolition of mine infrastructure and invalidation or cancellation of title and exploration licences.
Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams are expected to be adopted in 2023.
AngloGold Ashanti’s rights and permits
At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.
At Serra Grande, the Company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.
All of the Company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.
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Colombia
General laws relating to mining and land ownership
General regime
The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.
The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.
With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.
Concession contract
As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.
Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or these timelines are extended or modified. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.
PINES programme
In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is headquarteredover).
Tax laws relating to mining
From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.
Once exploration is complete and the mining infrastructure in Johannesburg, South Africa.place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a five percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of four percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.
Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest one percent of the project’s value to benefit the basins covered by the environmental licence.
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Environmental laws relating to mining
In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.
In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.
Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance. Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 1987/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.
AngloGold Ashanti’s rights and permits
The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The most recent one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on 22 June 2023. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.
Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its seventh year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the third largest gold mining companyarchiving decision in order to secure further details on the specific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the world, measuredprocess of preparing a new Environmental Impact Assessment for the Quebradona project to submit to ANLA in connection with its environmental licence application.
The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by production.B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract
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No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044 and an exploration concession No. QHQ-16081 (which covers a total area of 9.78 hectares) which expires in 2052. Following the completion of the feasibility study in the second half of 2022, AngloGold Ashanti and B2Gold determined that the Gramalote project does not meet their investment thresholds for development. Following a comprehensive review of the alternatives relating to the project, both joint operation parties commenced a joint sales process for the Gramalote project, which is currently ongoing.
United States of America (Nevada)
General laws relating to mining and land ownership
General regime
Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”), as well as relevant state statutes and regulations. The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.
Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and threeReclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of five acres or less on federal land, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.
The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling.
Potential regulatory changes
Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines, and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.
There are a number of bills being proposed to the Nevada state legislature during the 2023 legislative session that could impact the company’s planned operations. These include proposed legislation that would alter the way water rights are administered by the state, as well as a bill that would, if enacted, impose additional requirements for environmental review of mineral development projects in ten countries, comprises long-life, relatively low cost assetsNevada. At this stage, it is not possible to evaluate whether these bills will be enacted in any form by the Nevada state legislature or, if passed, what impact any might have on AGA.
AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with differing ore body types locatedour exploration or extraction activities in key gold-producing regions.the United States, the company’s operations in Nevada could be adversely affected.
In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. The Silicon project consists of approximately 950 unpatented mining claims. The North Bullfrog project consists of 45 patented and approximately 1,600 unpatented mining claims (covering approximately 32,000 acres) situated in the Bullfrog mining district. There are also nine mining leases within the North Bullfrog project the majority of which continue in perpetuity so long as the company meets certain minimal requirements for use of the land. One mining lease is scheduled to expire in 2031. The Mother
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Lode project consists of 13 unpatented mining claims. The North Bullfrog and Mother Lode projects are grouped regionallynow controlled by the company as follows:
MINE SITE REHABILITATION AND CLOSURE
Closure, an integral part of operations
All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for site closure and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the closure process at Yatela continued. On 19 October 2017, placement of adequate financial provisions and assurances to cover these costs.
AngloGold Ashanti announcedintegrates mine closure planning throughout the salemine life cycle as follows:
•Exploration stage: developing a plan and programme for cessation and closure of variousexploration activities in a manner that meets local laws and AngloGold Ashanti's mine closure planning standard.
•Project phase: developing conceptual closure plans and cost estimates for all projects and including them in project feasibility studies, designs and evaluations.
•Operational phase: developing and periodically updating mine closure plans and cost estimates with increasing levels of detail and confidence over the operational phase as part of the business planning process. Closure plan updates take into account operational conditions, planning and regulatory requirements as well as advances in technology and international industry good practice (e.g., the ICMM Integrated Mine Closure Good Practice Guide). Concurrent rehabilitation, which is carried out while a mine is still operational, is a good practice that serves to decrease the final rehabilitation and closure work as well as the ultimate liability.
•Closure period: implementing the final closure plan starting at cessation of operations through a period of decommissioning, dismantling and rehabilitation until the point in time where management of the site is largely limited to monitoring and maintenance.
The Company’s group mine closure planning standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Each mine closure plan includes a social transition plan which seeks to minimise social impacts and maximise opportunities for local communities, including human resource, social infrastructure, economic and financial assets with the aim of enhancing the self-sustainability of mine communities after mine closure.
Provisions for decommissioning and restoration costs are made when there is a present obligation, it is probable that expenditure on decommissioning and restoration work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the Vaal River regionrehabilitation of South Africamine sites.
Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures) decreased by $95 million from $673 million in 2021 to $578 million in 2022. This decrease was mainly due to changes in estimates resulting from changes in discount rates, changes in global economic assumptions, changes in mine plans resulting in a change in cash flows as well as changes in the design of TSFs.
SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
AngloGold Ashanti’s sustainability approach is fundamental to how the Company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the Company’s business and operations at all levels through various frameworks, standards and policies, and the Company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.
In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and
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the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).
AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the Company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the Company’s general managers in the day-to-day implementation of its sustainability strategy.
AngloGold Ashanti maintains a set of policies and procedures to guide the Company in acting as a responsible corporate citizen, including the Moab KhotsongCode of Business Principles and Kopanang mines. SubsequentEthics which sets requirements for the implementation of key corporate policies and guidelines and applies to year end all conditions precedent were fulfilledmanagement and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2022, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate, manage and monitor sustainability activities with respect to its broader business. This common management and reporting application for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.
Significant EHS requirements and ESG risks and trends affecting the Company’s mining and processing operations are described below.
EHS Regulatory Compliance
AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the Company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); mine and dam safety, regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the effective dategeneration, transportation, storage and disposal of sale was 28 February 2018.solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the Company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.
Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend facilities, such as TSFs, or operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the Company’s properties which may have been caused by previous owners or operators.
Water Management
AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and joint ventures employed, on average, 51,480 people (including contractors)extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the Company’s operations, including with respect to the Company’s mining operations in 2017 (2016: 52,649).
Where feasible, the Company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as by-products.Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.
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Waste Management
During open-pit mining, large volumes of salessoil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of $3.6 billiongold and an all-in sustaining costare deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of $ 1,050/ozgold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for subsidiaries and $1,087/oz for equity accounted joint venture operations respectively, compared to 3.6Moz in 2016 at a cost of sales of $3.3 billion and all-in sustaining cost of $990/oz for subsidiaries and $955/oz for equity accounted joint venture operations, respectively.this purpose.
The attributable Ore Reserve decreased from 50.0Mozimpact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the Company therefore monitors such facilities closely in accordance with the Company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. A safety or environmental incident at the Company’s operations could result, among other things, in enforcement, including mandatory shutdown of a TSF and related facilities, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.
For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For example, in late 2022, tailings deposition was suspended at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (“DCO”) and/or geotechnical stability (“DCE”) consistent with new regulatory standards enacted in early 2022. In addition, at the Calcinados TSF, a risk assessment conducted in December 20162022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to 49.6Mozalign the TSF’s post liquefaction factor of safety with international standards currently considered best practice. The timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. For further information on the regulatory framework governing TSFs in December 2017. This gross annual decreaseBrazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of 0.4Moz includes depletionindustry and non-governmental organisation (“NGO”) experts. AngloGold Ashanti has committed to comply with the GISTM at all of 4.3Moz. The balanceits TSFs by August 2025, and the costs related to meeting such standard are not expected to be material to AngloGold Ashanti.
In addition, AngloGold Ashanti could incur liabilities, or material costs to manage solid and hazardous waste generated by its mining activities, including dust and residual chemicals and metals. For example, AngloGold Ashanti expects to incur approximately $25 million to $30 million in capital expenditure and operating costs during 2023-2026 in connection with treatment and disposal of 3.9Moz additions in Ore Reserve, results from exploration and modelling changesa quantity of 4.0Moz and other factors of 0.7Moz, whilst changes in economic assumptions resulted in a 0.8Moz reduction.legacy arsenic trioxide waste located at the Obuasi mine.
SOUTH AFRICA
As part of the South African asset sale, AngloGold Ashanti Limited sold its remaining three mining rights in South Africa to Golden Core Trade and Invest (Pty) Ltd (“Golden Core”) and Harmony Gold Mining Company Limited pursuant to a sale agreement concluded on or about 12 February 2020, as amended and reinstated from time to time (the “SA Sale Agreement”). These mining rights relate to operations in the West Wits area.
General laws relating to mining
The MPRDA
The Mineral and Petroleum Resources Development Act, No. 28 of 2002 (the “MPRDA”) came into effect on 1 May 2004. The objectives of the MPRDA are, amongst other things, to allow for state sovereignty over all mineral and petroleum resources in the country, to promote economic growth and the development of these resources and to expand opportunities for the historically disadvantaged and to ensure security of tenure for the respective operations concerning prospecting, exploration, mining and production. By virtue of the provisions of the MPRDA, the state ensures that holders of mining and prospecting rights contribute to the socioeconomic development of the areas in which they operate. The Mineral and Petroleum Resources Development Amendment Act, No. 49 of 2008 (the “MPRDAA”) became effective on 7 June 2013. On 23 April 2004, the Minister of Mineral Resources and Energy (the “MRE Minister”) published, under the terms of the MPRDA, the Mineral and Petroleum Resources Development Regulations in order to implement the provisions of the MPRDA and MPRDAA. These implementation regulations were amended on 27 March 2020.
The mining charter
Since 2004, a series of mining charters have been adopted in South Africa with the main purpose of transferring part of the ownership of mining assets to black or historically disadvantaged South Africans (“HDSAs”) within a certain time period. Such mining charters also set targets for, amongst other things, the advancement of HDSAs into management positions, the employment of women, procurement of goods and services from HDSA-owned companies, training, community development and the upgrading of mine housing. In 2004, the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry, 2004 was published and, in September 2018, the Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry, 2018 (the “2018 Mining Charter”) was published, repealing all prior mining charters. In September 2021, the High Court of South Africa (Gauteng Division) held that the 2018 Mining Charter is a policy document and does not, per se, bind holders of mining titles. The High Court also set aside various provisions of the 2018 Mining Charter. In November
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2021, the South African Department of Mineral Resources and Energy (“DMRE”) informed the parliamentary portfolio committee on mineral resources and energy that it does not intend to appeal the outcome of the judgement, but instead will consider steps to achieve the empowerment objectives through legislative amendments to the MPRDA.
The B-BBEE Act
The Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (the “B-BBEE Act”) is a law of general application in respect of Broad-Based Black Economic Empowerment (“B-BBEE”) and enables the Minister of Trade and Industry to drive B-BBEE across all sectors of the economy. In 2014, the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013 (the “B-BBEE Amendment Act”) came into effect amending the B-BBEE Act to provide a framework of principles, strategies and guidelines aimed at promoting the broad-based socio-economic empowerment of HDSAs across the South African economy and society in the form of ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.
Environmental laws relating to mining
The National Environmental Management Act, No. 107 of 1998, as amended (the “NEMA”) includes provisions to deal with environmental regulation of mining and prospecting, which provisions are administered by the MRE Minister. Pursuant to section 24N(8) of NEMA, directors of a company are jointly and severally liable for any negative impact on the environment, whether advertently or inadvertently caused by the company they represent, including damage, degradation and pollution.
From an environmental perspective, given the wide scope of the statutory duty of care in South African environmental law, erstwhile land owners may be held liable for historic contamination by the regulatory authorities. The “polluter pays” principle in South Africa enables the competent authority to seek recourse against various responsible parties based on their historical or current relationship to the source and receptor of degradation or pollution. The duty of care also applies retrospectively to significant pollution or degradation that occurred before the entry into force of NEMA (i.e., 29 January 1999), as well as significant pollution or degradation that arises or is likely to arise at a different time from the actual activity that caused the contamination (e.g., latent or residual impact) or arises through an act or activity of a person that exacerbates pre-existing contamination. The authorities can also seek compensation in respect of clean-up measures that it is required to take on behalf of the responsible parties and apportion liability amongst the responsible parties, which could technically include a historic landowner or mining company that caused the pollution. Although the purchasers of AngloGold Ashanti’s assets in South Africa have contractually assumed all environmental liability associated with its former South African operations and agreed to indemnify AngloGold Ashanti for the same, there remains a risk, at least theoretically, of statutory liability to the state.
AngloGold Ashanti’s rights and permits
Pursuant to the SA Sale Agreement, AngloGold Ashanti and Golden Core executed a notarial deed of cession of the mining rights with DMRE references GP 30/5/1/2/2/01 MR and GP 30/5/1/2/2/248 MR to transfer and cede these mining rights to Golden Core (the “Deed of Cession”). On 14 June 2021, the Deed of Cession was registered at the Mineral and Petroleum Titles Registration Office (the “MPTRO”).
With respect to the mining right held under DMRE reference GP 30/5/1/2/2/11 MR, AngloGold Ashanti and Golden Core agreed to make an application in terms of section 102 of the MPRDA at the DMRE after the closing date of the SA Sale Agreement requesting, among other matters, the incorporation of this mining right into the mining right with DMRE reference GP 30/5/1/2/2/01 MR (the “Harmony Consolidation Application”). AngloGold Ashanti also executed a notarial conditional deed of abandonment pursuant to which it conditionally abandons this mining right in terms of section 56(f) of the MPRDA (the “Deed of Abandonment”) on condition that ministerial consent is granted in respect of the Harmony Consolidation Application. The Harmony Consolidation Application, which was submitted to the DMRE on 17 January 2022, is still pending. On the date of the grant of the Harmony Consolidation Application, AngloGold Ashanti will cease to be a holder of any mining rights in South Africa. Once the transaction has been fully implemented, the general laws relating to mining outlined above will no longer be applicable to the Company, other than the statutory duty of care in terms of NEMA as described above.
AFRICA REGION
Democratic Republic of the Congo (DRC)
General laws relating to mining
The mining industry in the DRC is primarily regulated by Law No. 007/2002 dated 11 July 2002 (the “2002 DRC Code”), as amended and supplemented by Law No. 18/001 dated 9 March 2018 (the “Reformed DRC Mining Code”) and Decree No. 038/2003 dated 26 March 2003, as amended and supplemented by Decree No. 18/024 dated 8 June 2018 (the “Reformed DRC Mining Regulations”).
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With respect to the application of the Reformed DRC Mining Code and Reformed DRC Mining Regulations, Kibali Goldmines S.A. (“Kibali Goldmines”) has reserved and continues reserving its rights, including, without limitation, its stability rights under, among other legal sources, the 2002 DRC Code. Discussions with the DRC government on these issues and the possible application of incentives that may be available under the Reformed DRC Mining Code and Reformed DRC Mining Regulations, in particular under article 220 of the Reformed DRC Mining Code which provides that the Prime Minister of the DRC may grant a number of incentives to provinces with infrastructure deficits to encourage economic development from mining resources, are ongoing.
Companies holding mining titles issued prior to the entry into force of the Reformed DRC Mining Code and Reformed DRC Mining Regulations have claims to a ten-year stability provision in accordance with prior mining legislation. Notwithstanding the adoption of the new regulatory regime, their rights with respect to such stability provision are reserved.
The Reformed DRC Mining Code grants the DRC Minister of Mines the authority to grant, refuse, suspend or terminate mineral rights, subject to conditions set out in the Reformed DRC Mining Code. Mineral rights may be granted in the form of exploration permits for an initial period of five years renewable once for a further five-year period or in the form of exploitation permits which are granted for an initial period of 25 years, renewable several times for 15-year periods until the end of the mine’s life. Prior to commencing exploration work, the holder of an exploration permit must submit for approval a mitigation and rehabilitation plan pursuant to which it must undertake to carry out certain mitigation measures of the impact of its activities on the environment, as well as rehabilitation measures. Exploitation permits are granted upon successful completion of exploration and satisfaction of certain requirements, including approval of a feasibility study, an environmental and social impact study and an environmental and social management plan. The holder of an exploitation permit is required to commence development and mine construction within three years of the grant of such permit. Failure to do so may lead to forfeiture of the exploitation permit. To protect and enforce rights acquired under an exploration or exploitation permit, the Reformed DRC Mining Code provides, depending on the nature of the dispute or controversy, administrative, judicial and national or international arbitral recourses.
Mining companies are required to grant a free-carried and non-contributory participation to the DRC government. The DRC government’s free participation was originally set at five percent, which was increased to ten percent in respect of exploitation permits issued after the entry into force of the Reformed DRC Mining Code. All mining companies are required to grant an additional five percent free-carried participation to the DRC government upon each renewal of their exploitation permit. Under the Reformed DRC Mining Code, a ten percent local contributory participation is also mandatory for exploitation permits issued after its entry into force.
Tax laws relating to mining
The Reformed DRC Mining Code sets out an exclusive and comprehensive tax and customs regime that is applicable to mining activities. Mining title holders are subject, amongst other things, to a corporate income tax of 30 percent, a windfall tax of 50 percent (subject to certain prerequisites) and are required to pay mining royalties to the DRC government. The royalty rate applicable to gold has been set at 3.5 percent. Mining title holders are also required to contribute a minimum of 0.3 percent of total turnover to community development.
The standard rate of VAT is 16 percent and is applicable to all mining companies. In the DRC, Kibali Goldmines is due certain refunds of VAT which, to date, remain outstanding. During 2022, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. We believe that our attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to us by the DRC government amounted to $86 million as of 31 December 2022. While an agreement was reached with the DRC government on the reimbursement of the refundable VAT in 2018, uncertainty remains regarding the timing and level of cash receipts and offsets against other taxes for purposes of the recovery of our VAT receivables in the DRC.
The Reformed DRC Mining Code also provides for a level of fiscal stability. A stability clause stipulates that existing tax, customs and exchange control provisions applicable to mining activities are guaranteed to remain unchanged for a period of five years from the enactment of the Reformed DRC Mining Code.
Foreign exchange control regime
The Reformed DRC Mining Code imposed new exchange control rules requiring that mining title holders repatriate onshore 60 percent of sale revenues received during the investment amortisation period and 100 percent once the investment amortisation is completed.
During 2022, AngloGold Ashanti repatriated $694 million from its operations in the DRC, in the form of dividends from Kibali (Jersey) Limited. Kibali (Jersey) Limited received such cash from Kibali Goldmines in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $658 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $36 million). Our attributable share of the outstanding cash balances awaiting repatriation from the DRC amounted to $40 million as of 31 December 2022. The cash is fully available for the operational requirements of Kibali Goldmines. The cash and cash equivalents held at Kibali Goldmines are subject to various steps before they can be distributed to Kibali (Jersey) Limited and are held across four banks in the DRC, including two domestic banks.
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AngloGold Ashanti’s rights and permits
AngloGold Ashanti holds a significant stake in the Kibali gold mine which is located in the north-eastern part of the DRC. The Kibali gold mine is owned by Kibali Goldmines which is a joint venture between Barrick Gold Corporation (45 percent), AngloGold Ashanti (45 percent) and Société Minière de Kilo-Moto S.A. (“SOKIMO”) (10 percent) which represents the interest of the DRC government. AngloGold Ashanti and Barrick Gold Corporation each have a 50 percent interest in Kibali (Jersey) Limited which holds their respective 45 percent interest in Kibali Goldmines.
The Kibali gold project is operated by Barrick Gold Corporation and comprises ten exploitation permits, of which eight expire in 2029 and two in 2030. Those exploitation permits (11447, 11467, 11468, 11469, 11470, 11471, 11472, 5052, 5073, and 5088) cover an area of approximately 1,836 km2 in the Moto goldfields.
Ghana
General laws relating to mining
Control of minerals and mining companies
The Constitution of Ghana as well as the Minerals and Mining Act, 2006 (Act 703) (the “GMM Act”) provide that all minerals in Ghana in their natural state are the property of the State and title to them is vested in the President on behalf of and in trust for the people of Ghana, with rights of reconnaissance, prospecting, recovery and associated land usage being granted under licence or lease. The grant of a mining lease by the Ghana Minister of Lands and Natural Resources (the “LNR Minister”) upon the advice of the Minerals Commission is subject to parliamentary ratification unless the mining lease falls into a class of transactions exempted by the Ghanaian Parliament. The LNR Minister has the power to object to a person becoming or remaining a controller of a company which has been granted a mining lease if the LNR Minister believes, on reasonable grounds, that the public interest would be prejudiced by the person concerned becoming, or remaining, a controller.
Stability and development agreements
The GMM Act provides for stability and development agreements. Stability agreements guarantee for a period of 15 years certain terms and conditions (mainly fiscal) to which a company’s operations are subject. Development agreements may be granted to a mineral right holder that proposes to invest over $500 million in its mineral operations in Ghana. The GMM Act permits stability provisions to be incorporated into development agreements. Stability and development agreements are subject to parliamentary ratification. In January 2020, it was proposed that the GMM Act be amended by abolishing development agreements and shortening the maximum term of stability agreements from 15 years to five years (with a possible extension for a further five years). If the GMM Act were amended along these lines, such amendments would not apply retroactively and would therefore not have an impact on existing development agreements, including the Obuasi Development Agreement (as described below). Those amendments to the GMM Act have not yet been adopted.
Ghana Stability Agreement
In 2004, following the implementation of the business combination between AngloGold Limited and Ashanti Goldfields Company Limited, AngloGold Limited and the Government of Ghana signed a stability agreement (the “Ghana Stability Agreement”) governing certain aspects of the fiscal and regulatory framework within which the company would operate in Ghana for a period of 15 years. In June 2018, the Ghana Stability Agreement ceased to apply to the Obuasi mine because of the parliamentary ratification of a new development agreement and a new tax concession agreement in relation to that mine (as described below).
The Ghana Stability Agreement continued to apply to the Iduapriem mine until it expired in April 2019. Since then, AngloGold Ashanti (Iduapriem) Limited (“AGA Iduapriem”) no longer benefits from the Ghana Stability Agreement. AGA Iduapriem benefits from certain concessions under two deeds of warranty, including exemptions from withholding taxes on dividends, interest and payments for foreign services, and allowable deductions.
Obuasi Development Agreement
AngloGold Ashanti (Ghana) Limited (“AGA Ghana”) negotiated a new development agreement in relation to the Obuasi mine (the “Obuasi DA”) with the Government of Ghana. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi DA which contains stability terms as provided for in stability agreements. The Obuasi DA confers a number of rights and obligations on AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) the stabilisation of the fiscal and regulatory framework (except for enactments promoting the use of Ghanaian goods and services) for a period of ten years (with a potential of it being extended for five years); (ii) the right to hold up to 80 percent of proceeds received from exporting minerals in foreign currencies outside of Ghana; (iii) obligation to give preference to materials and goods made in Ghana as well as services provided by Ghanaians; and (iv) the right to peaceful enjoyment and protection against expropriation.
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Obuasi Tax Concession Agreement
Fiscal terms, which would ordinarily form part of a single stabilisation document, were separated from the Obuasi DA. Hence a separate tax concession agreement in relation to the Obuasi mine (the “Obuasi TCA”) was signed with the Government. On 21 June 2018, the Ghanaian Parliament ratified the Obuasi TCA with a concession period until 31 December 2027. The Obuasi TCA contains a number of tax concessions for AGA Ghana with respect to the Obuasi mine, including, among other matters, (i) a corporate income tax rate of 32.5 percent or such lower rates as may be fixed by law (instead of the current statutory rate of 35 percent); (ii) exemption of certain transactions from capital gains tax; (iii) a sliding scale royalty rate ranging from three percent to five percent for a price ranging from $1,300 up to $2,000 and above per ounce (instead of the current flat rate of five percent); and (iv) certain VAT exemptions and refunds.
Government’s Golden Share
Section 60(1) of the GMM Act provides that the Government of Ghana can require a mining company to issue to the Republic of Ghana for no consideration a special share (a “Golden Share”). A Golden Share in AGA Ghana was issued to the Government of Ghana and the Obuasi DA confirms that the Government’s rights with respect to its Golden Share apply only in respect of AGA Ghana’s assets and operations in Ghana. The Golden Share confers certain rights on the Government in respect of AGA Ghana. For example, written consent of the holder of the Golden Share is required for, among other matters, (i) any amendment of the rights and restrictions in respect of the Golden Share; (ii) the voluntary winding-up or voluntary liquidation of AGA Ghana; (iii) the disposal of any mining lease held by AGA Ghana; and (iv) the disposal of all or substantially all of the assets of AGA Ghana. The holder of the Golden Share does not have the right to participate in the profits or assets of AGA Ghana (by way of dividend or other capital issuances), but is entitled to attend any general meeting of shareholders.
Tax laws relating to mining
Currently, the main tax laws in Ghana include the following acts and regulations, which have been frequently amended over the years:
•Income Tax Act, 2015 (Act 896) (as amended) and Income Tax Regulations, 2016 (L.I. 2244);
•Customs Act, 2015 (Act 891) (as amended) and Customs Regulations, 2016 (L.I. 2248);
•Value Added Tax, 2013 (Act 870) (as amended) and Value Added Tax Regulations, 2016 (L.I. 2243);
•Revenue Administration Act, 2016 (Act 915) (as amended); and
•Exemptions Act, 2022 (Act 1083).
The Income Tax Act, 2015 (Act 896) ringfences and taxes income derived from mining operations at the rate of 35 percent. The Obuasi TCA for AGA Ghana provides for a stabilised income tax rate of 32.5 percent. AGA Iduapriem currently pays income tax at the rate of 35 percent.
Furthermore, mining companies must pay ground rent and royalties. Ground rent is payable annually and is calculated based on the number of cadastral units of land held. Royalties are calculated as a percentage of total revenue from minerals obtained by the mining company. The Government of Ghana currently applies a five percent royalty rate to mining companies who have not agreed a different royalty rate under an agreement with the State. AGA Ghana pays royalties on a sliding scale ranging between three percent and five percent as provided for by the Obuasi TCA. AGA Iduapriem pays royalties at a rate of five percent.
The provision of goods and services is liable to value added tax (“VAT”) at a revised rate of 15 percent. In addition, there are separate levies, including a 2.5 percent National Health Insurance Levy (“NHIL”), a 2.5 percent Ghana Education Trust Fund Levy (“GetFund Levy”) and a one percent COVID-19 Levy. By virtue of the Obuasi TCA, AGA Ghana is exempt from the payment of the NHIL and GetFund Levy. In addition, while AGA Ghana is technically exempt from the payment of the COVID-19 Levy (as it became operational subsequent to the effective date of the Obuasi DA), the Company decided to pay the COVID-19 Levy voluntarily. AGA Iduapriem is not exempt from any of these levies.
The Exemptions Act, 2022 (Act 1083) (“Exemptions Act”) defines the scope of tax exemptions that may be granted under Ghanaian law, and sets out the administrative process for obtaining a tax exemption. The Exemptions Act requires a person with the benefit of an existing tax exemption to apply to the Ghana Minister of Finance by 11 March 2023 in order to continue to benefit from that tax exemption. The requirement to apply to the Minister of Finance does not affect AGA Ghana (as, by virtue of the Obuasi DA, AGA Ghana is stabilized against the adverse effects of, or obligations imposed by, any new laws). By contrast, AGA Iduapriem is subject to the provisions of the Exemptions Act.
Environmental laws relating to mining
Mining companies are required, under the GMM Act, Environmental Assessment Regulations, 1999 (L.I. 1652), Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462) and Water Use Regulations, 2001 (L.I. 1692), to obtain all necessary approvals from the Environmental Protection Agency (the “Ghana EPA”) and, in appropriate cases, the Water Resources Commission, the Forestry Commission and/or the Minerals Commission before undertaking mining operations. This includes undergoing an environmental impact assessment process and, following the issuance of the environmental permit, periodically preparing environmental management plans, which include details of the likely impacts of mining operations on the environment and local communities, as well as a comprehensive plan and timetable for actions to mitigate and remediate any
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adverse effects of the mining operations, for submission to the Ghana EPA. The Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I. 2182) also impose further obligations to obtain the necessary permits from the Inspectorate Division of the Minerals Commission for the operation of mines. The environmental permits of AGA Ghana (for the Obuasi redevelopment project and for the construction and operation of tailings and water infrastructure projects) are valid until June 2024. The environmental permits for AGA Iduapriem in connection with (i) gold mining and processing, (ii) the re-mining of Block 5 and for the tertiary crusher installation project and (iii) the construction and operation of a tailings storage facility (“TSF”) expired in August 2021, July 2022 and January 2023, respectively. The renewal process for the AGA Iduapriem environmental permits, which was commenced in advance of the expiry of the permits, is underway.
Environmental laws in Ghana also require mining operators to rehabilitate land negatively impacted by mining operations according to an environmental cost reclamation plan agreed with the Ghana EPA. The environmental cost reclamation plan includes two cost estimates, namely the cost of rehabilitating the mining area at the end of the life of the mine as well as the cost of rehabilitating the mine as at the date of the reclamation plan. These estimates are reviewed annually and updated every two years. Each mining company is typically required to secure a percentage (typically between 50 percent and 100 percent) of the estimated rehabilitation costs by posting reclamation bonds underwritten by banks and restricted cash. The terms of each reclamation bond are determined by a reclamation security agreement between that company and the Ghana EPA. Both AGA Ghana and AGA Iduapriem have bank guarantees in place for environmental reclamation liabilities as well as escrow accounts with joint signatories from the Ghana EPA. The guarantees for AGA Iduapriem expired in October 2022, whereas the guarantees for AGA Ghana expired in December 2022. Renewal of the bank guarantees (which commenced in advance of the expiry of the existing guarantees) has not yet been completed due to the continued depreciation of the Ghanaian cedi and its impact on the Bank of Ghana’s single obligor limit. AGA Ghana and AGA Iduapriem have notified the Ghana EPA of the resultant delays.
Foreign exchange, export and other rules
Retention of foreign earnings
The Obuasi mine is permitted to retain 80 percent of its foreign exchange earnings in an offshore foreign exchange account, whereas the Iduapriem mine is allowed to retain up to 75 percent. In addition, the Company has permission from the Bank of Ghana to retain and use U.S. dollars outside of Ghana to fulfil payment obligations to the Company’s hedge counterparties which cannot be met from the cash resources of its treasury company.
Rules regarding the export of gold and diamonds
The Bank of Ghana introduced new measures to regulate and monitor the export of gold and diamonds from Ghana in 2015. From September 2015, all exports of gold and diamonds must be carried out through the Precious Minerals Marketing Company Ltd (“PMMC”), except where the exporter is the holder of a licence that permits it to export directly. The Ghana Revenue Authority (Customs Division) only permits gold to be exported by a licensed gold exporter who has a completed Form FEX A4 bearing Bank of Ghana’s embossment. The export measures do not apply to AngloGold Ashanti because the Company holds a licence granted by the LNR Minister to sell and export its production.
Local assaying and refinement policies
In November 2016, the Ministry of Lands and Natural Resources issued a ministerial directive appointing the PMMC as designated laboratory for assaying in Ghana. The directive requests all persons holding export licences for gold to submit all gold to be exported to the PMMC for assay before export. Mining businesses, including AngloGold Ashanti, acting through the Ghana Chamber of Mines were opposed to this directive due to its potential negative impact on mining companies in the region. As a result, the Chamber initiated proceedings to reverse or modify the directive. Following discussions in respect of the mining industry’s concerns, the Chamber and Government agreed on the modalities for implementing the national assaying policy and it was introduced in February 2018 following a one-month pilot among certain mining companies. Subsequently, in June 2019, the LNR Minister released a statement reiterating the Government of Ghana’s plans to locally refine 30 percent of the gold produced in the country. Discussions between the Ghana Chamber of Mines and the Government of Ghana’s economic management team in 2019 led to the Chamber agreeing to consider the proposal and for the parties to discuss detailed modalities to ensure that a move to locally refined gold does not become detrimental to the mining industry.
Local content and local participation policy
Mining companies must submit a detailed programme for the recruitment and training of Ghanaians with a view to achieving “localisation”, which is the replacement of expatriate personnel in a company’s Ghanaian operations by Ghanaian personnel. In addition, mining companies must give preference to Ghanaian products and personnel, to the maximum extent possible, consistent with safety, efficiency and economies. The Minerals and Mining (General) Regulations, 2012 (L.I. 2173) give further details on the localisation policy. The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020 with the purpose of developing Ghanaian participation in the mining industry value chain by imposing an obligation on mining companies to procure goods and services with Ghanaian content to the maximum extent possible.
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The Government’s election to purchase gold
In June 2021, the Bank of Ghana launched a “Domestic Gold Purchase Programme” through which the Bank of Ghana intends to purchase refined gold from AGA Ghana, AGA Iduapriem and other large-scale mining companies through voluntary arrangements pursuant to the Bank of Ghana Act, 2002 (Act 612). The LNR Minister indicated in November 2022 that the Government of Ghana intended to exercise its statutory right of pre-emption pursuant to the GMM Act to compel large-scale mining companies to sell 20 percent of their Ghana gold production and/or the resultant refined gold to the Bank of Ghana in exchange for Ghanaian cedis. Each of AGA Ghana and AGA Iduapriem executed voluntary gold purchase agreements with the Bank of Ghana on 29 December 2022. As at 10 March 2023, the Government of Ghana had not exercised its statutory right of pre-emption as prescribed in the GMM Act.
AngloGold Ashanti’s rights and permits
Obuasi
The Obuasi mine originally held four contiguous mining leases, namely, the Obuasi, Binsere 1, Binsere 2 and Binsere 3 Mining Leases. The Obuasi Mining Lease was granted by the Government of Ghana on 5 March 1994, covering an area of approximately 338 km2 in the Amansie East and Adansi West districts of the Ashanti region, for a term of 30 years from the date of the agreement. The Binsere Mining Leases were granted on 9 April 1998, covering an area of 140 km2, for a term of 30 years from the date of the agreement. All leases in respect of the Obuasi mine had been duly ratified in accordance with Ghanaian law. In March 2007, the Government of Ghana agreed to extend the term of the Obuasi Mining Lease for a further term of 30 years. The amended Obuasi Mining Lease was also ratified by Parliament on 23 October 2008. The Obuasi Mining Lease will expire in March 2054 and the Binsere Mining Leases in April 2028. The mining leases are renewable. On 3 March 2016, the Minerals Commission approved AGA Ghana’s application to surrender approximately 273.54 km2 of the area to the Government of Ghana, reducing the combined area under AGA Ghana’s lease areas to 201.46 km2. The remaining parcel of land that will be subject to the mining lease is situated within various villages and townships in the region but excludes the municipality of Obuasi. On 15 January 2021, the Minerals Commission approved AGA Ghana’s application to surrender a further 60.24 km2 of lease area, thereby reducing the total lease area to 141.22 km2 under three mining leases, namely, the Obuasi Mining Lease (87.48 km2), the Binsere 1 Mining Lease (29.03 km2) and the Binsere 2 Mining Lease (24.71 km2). These mining leases are covered by the Obuasi DA and Obuasi TCA.
Iduapriem
The Iduapriem mine operates under four different mining leases, namely, the Iduapriem Mining Lease (LVB1539/89) (36.47 km2), the Ajopa Mining Lease (LVB/WR326/09) (46.12 km2), the Teberebie Mining Lease (LVB3722H/92) (28.53 km2) and the Ajopa South Mining Lease (LR#1109/1999) (28.10 km2). On 17 February 2020, the mining leases were extended for a further period of 15 years and such leases will now expire in February 2035. All leases in respect of the Iduapriem mine have been duly ratified in accordance with Ghanaian law.
Guinea
General laws relating to mining
In Guinea, the mining industry is primarily regulated by Law L/2011/006/CNT dated 9 September 2011 as amended by Law L/2013/053/CNT dated 8 April 2013 and promulgated by Decree D/2013/075/PRG/SGG dated 17 April 2013 (together, the “Guinea Mining Code”).
The Guinea Mining Code is implemented by various decrees and orders, including Decree D/2014/015/PRG/SGG adopting a model of mining convention, dated 17 January 2014, Order A/2016/1584/MMG/SGG related to the administration’s capacities for the management of integrated mining projects (PARCA-GPI) and its steering committee, dated 6 June 2016, and Decree D/2016/163/PRG/SGG on the national agency for the development of mining infrastructures (ANAIM), dated 13 June 2016.
In 2017, Decree D/2017/285/PRG/SGG was adopted, which sets forth the conditions for the constitution and management of the Local Development Fund (“Fodel”), as well as Joint Order A/2017/6326/MMG/MATD/SGG, which sets forth the conditions for the use, management and control of the Fodel. Together, these set forth the use of the mining companies’ financial contribution to the development of the local communities and the rules applying to the Fodel, which was created under the Guinea Mining Code. On 13 July 2018, a Joint Order A/2018/5212/MEF/MMG/MB/MATD/SGG was issued, which regulates the use, management and monitoring of the resources allocated to local authorities pursuant to article 165 of the Guinea Mining Code. In 2019, an inter-ministerial committee was created to supervise and control the Fodel through the adoption of Joint Order AC/2019/089/MMG/MATD/SGG setting out the conditions for the constitution, powers and management of said inter-ministerial committee. On 6 September 2019, Decree D/2019/263/PRG/SGG was issued, which sets forth local content requirements in the framework of the implementation of public and private projects in Guinea. On 27 May 2021, Order A/2021/1229/MMG/SGG was issued to establish the Steering Committee for local content in the mining sector. On 21 October 2022, Law L/2022/010/CNT, dated 22 September 2022, setting up the legal framework for local content in public and private projects was enacted (the “Local Content Act”). In particular, the Local Content Act regulates local employment, procurement of goods and services, and subcontracting
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requirements. As the Local Content Act does not expressly repeal the provisions of Decree D/2019/263/PRG/SGG, those provisions remain in force to the extent that they do not conflict with the Local Content Act.
On 16 June 2020, a new procedure for the export of gold by mining companies was enacted through the adoption of Decree D/2020/113/PRG/SGG, which sets out, amongst other things: (i) when the industrial production tax referred to in article 161-1 of the Guinea Mining Code shall be paid, and (ii) the process to be followed to export gold bullion.
On 27 April 2021, a Joint Order AC/2021/824/MMG/BCRG/SGG was issued establishing the fees and costs charged by the Guinean mining authorities and the Guinean Central Bank in connection with the administrative procedures for the export of gold by industrial and semi-industrial companies.
AngloGold Ashanti’s South African operations comprised four deep-level minesrights and surface production facilities. They are:permits
The Vaal RiverGroup’s Guinean subsidiary, Société AngloGold Ashanti de Guinée S.A. (“SAG”), has title to the Siguiri mine in the form of a mining concession, granted by virtue of Presidential Decree D/97/171/PRG/SGG, dated 4 August 1997, for a period of 25 years (the “Mining Concession”). The Mining Concession covers exploration and mining for gold, silver, diamonds and associated ores, and was originally covered by a mining convention entered into with the Republic of Guinea in 1993 and amended in 2005. On 28 June 2016, SAG and the Government of Guinea concluded a revised and consolidated mining convention (Convention de Base Révisée et Consolidée) (the “Revised Mining Convention”) which encompasses a renewal of the term of the original mining convention and other amendments necessary to support an expansion project to extend the life of the Siguiri mine (the “Expansion”). In compliance with the provisions of the Guinea Mining Code, the Revised Mining Convention was ratified by the Guinean National Assembly (Law L/2016/N°067/AN dated 30 December 2016, promulgated by Decree D/2017/015/PRG/SGG dated 24 January 2017), submitted to the Guinean Supreme Court which rendered a favourable opinion (Judgement N°AC 005 dated 16 January 2017), and ratified by the President of the Republic of Guinea (Decree D/2017/021/PRG/SGG dated 24 January 2017), following which it replaced the original mining convention and became effective on 24 January 2017.
Key elements of the Revised Mining Convention include the following:
•a duration of 25 years, expiring 23 January 2042, subject to further renewal if mining operations - Kopanangcontinue;
•the term of the Mining Concession is aligned with the term of the Revised Mining Convention since the Republic of Guinea committed to maintain the Mining Concession for the entire duration of the Revised Mining Convention;
•SAG’s operations remain governed by the 1995 Guinea Mining Code (the prior mining code) and Moab Khotsong;are only subject to the provisions of the Guinea Mining Code to the extent they are expressly set out in the Revised Mining Convention;
•the stability of the customs and tax regime is guaranteed for the entire initial term of the Revised Mining Convention, and subject to certain conditions being met, any renewal period(s);
•the Republic of Guinea holds a 15 percent free-carried/non-contributory interest;
•the Republic of Guinea is entitled to a royalty on gold of five percent based on a spot gold price as per LBMA fixing (PM) up until the date of steady state commercial production of the first phase of the Expansion, after which the royalty rate applicable to gold will vary depending on threshold prices as per LBMA fixing (PM), namely: three percent if the gold price is $1,300 or less, five percent, if above $1,300 and up to $2,000 and seven percent if above $2,000;
•SAG benefits from 5-year income tax holiday from the beginning of steady state commercial production of the first phase of the Expansion, after which the income tax rate is set at 30 percent;
•a local development tax of 0.4 percent is payable on the sale price for gold and silver received by SAG up until 31 December 2027, after which it will be increased to 0.6 percent;
•salaries of expatriate employees are subject to a ten percent income tax;
•goods imported into Guinea for purposes related to the construction and commissioning of the first phase of the Expansion are exempt from all customs taxes and duties; and
•SAG is committed to adopting and progressively implementing a plan for the effective rehabilitation of the mining areas disturbed or affected by its operations.
The Mining Concession covers an area divided into four blocks totalling approximately 1,495 km2. SAG has the exclusive right to explore and mine in any part of the concession area for the duration of the Revised Mining Convention. The Revised Mining Convention also grants SAG the option to secure certain land rights over additional areas currently covered by exploration permits, but to which SAG may need access for purposes of establishing roads or storage of tailings. While the Mining Concession expired on 4 August 2022, a renewal request had been filed prior to its expiry in accordance with the provisions of the Revised Mining Convention on 1 February 2022. Pursuant to the Revised Mining Convention, the Mining Concession can be renewed for one or more period(s) that cannot exceed ten years each as long as the Revised Mining Convention is in force.
The West Wits operations - MponengRevised Mining Convention is subject to early termination if the parties formally and TauTona; andexpressly agree to it, if the last of the mining title held by SAG expires or is relinquished without any renewal application having been filed, if all project activities are voluntarily suspended for a continuous period of 12 months or are permanently abandoned by SAG, or if SAG goes into voluntary liquidation or is placed into liquidation by a court of competent jurisdiction.
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Mali
General laws relating to mining
The South Africa region has undergone extensive restructuring to ensure its long term sustainability. Moab and Kopanang operations have been sold subsequent to year end and TauTona was placed on orderly closure duringmining industry in Mali is primarily regulated by Ordinance No. 2019-022/P-RM dated 27 September 2019 containing the year. Following the completionnew mining code of the saleRepublic of Mali (the “Mali Mining Code”) and Decree No. 2020-0177/PT-RM dated 12 November 2020 implementing the Mali Mining Code. On 8 December 2020, Decree No. 2020-0288/PM-RM enacted the new model mining convention referred to in Decree No. 2020-0177/PT-RM.
The Mali Mining Code applies to the mining operations previously carried out by AngloGold Ashanti entities in Mali (as further described below) except with respect to the validity, scope and duration of their exploitation permits and the provisions on tax and customs regime contained in their mining conventions (conventions d’établissement) for their remaining duration. In this regard, the transitory rules of the Mali Mining Code specify that mining conventions in force remain valid for their remaining term and their holders continue to benefit from the stability of the tax and customs regime set out therein.
Exploration and prospecting activities are carried out under exploration authorisations (autorisation d’exploration) or exploration permits (permis de recherche), which give their holder the exclusive right to carry out exploration activities over a given area. Exploration authorisations are granted by the Mining Administration (Administration chargée des Mines) for a non-renewable period of three months, while exploration permits are granted by Ministerial Order for a period of three years renewable twice for additional 3-year periods. Applications for exploration authorisations and exploration permits must contain various assetsdocuments attesting to the financial and technical capacity of the applicant as well as a detailed works and costs programme.
A large scale permit exploitation permit (permis d’exploitation de grande mine) is required to mine a deposit located within the area of an exploration permit and grants the holder an exclusive right to exploit the named substances and proceed with the processing and commercialisation of the substances extracted within its perimeter. Large scale exploitation permits are granted by decree of the Head of Government for a maximum period of 12 years renewable for ten year-periods until depletion of the deposits. An application must be submitted to the Mining Administration (Administration chargée des Mines) and must contain various documents attesting to the financial and technical capacity of the applicant, a feasibility study, a detailed environmental study in respect of the impact of the project on the environment, an environmental permit, a closure and rehabilitation plan as well as a community development plan. As soon as the large scale exploitation permit is granted, the permit holder must incorporate a company under the laws of Mali and assign the permit for free to this company. The State will have a ten percent free-carried interest in the restructurecompany. This interest will be converted into priority shares and the State’s participation will not be diluted in case of the group’s South Africa region, as of 1 March 2018, AngloGold Ashanti ceased to have underground operationsan increase in the Vaal River area.
Gold production (000oz) | Average number of employees | ||||
| Operations | |||||
| South Africa | |||||
1. Vaal River | |||||
| Kopanang | 91 | 3,879 | |||
| Moab Khotsong | 294 | 6,143 | |||
2. West Wits | |||||
| Mponeng | 224 | 5,962 | |||
| TauTona | 91 | 3,822 | |||
3. Surface operations (1) | 192 | 3,161 | |||
| Unit | 2017 | 2016 | 2015 | |||||||
| Operation | ||||||||||
| Tonnes treated/milled | Mt | 38.9 | 39.6 | 36.8 | ||||||
Pay limit (1) | oz/t | 0.43 | 0.37 | 0.39 | ||||||
| g/t | 15.97 | 13.81 | 14.38 | |||||||
Recovered grade (1) | oz/t | 0.202 | 0.219 | 0.225 | ||||||
| g/t | 6.93 | 7.51 | 7.70 | |||||||
Gold production (2) | 000oz | 903 | 967 | 1,004 | ||||||
| Cost of sales | $m | 1,114 | 1,041 | 1,083 | ||||||
Total cash costs (3) | $/oz | 1,085 | 896 | 881 | ||||||
All-in sustaining costs (3)(4) | $/oz | 1,245 | 1,081 | 1,088 | ||||||
| Capital expenditure | $m | 150 | 182 | 206 | ||||||
| Safety | ||||||||||
| Number of fatalities | 7 | 6 | 9 | |||||||
| AIFR | Per million hours worked | 12.68 | 12.02 | 10.81 | ||||||
| People | ||||||||||
| Average no of employees: Total | 26,245 | 28,507 | 28,325 | |||||||
| Permanent employees | 22,738 | 25,205 | 25,274 | |||||||
| Contractors | 3,507 | 3,302 | 3,051 | |||||||
All mining titles mentioned above (save for the exploration authorisation) require a mining convention (convention d’établissement) to be signed by the State and the titleholder defining their rights and obligations, the duration of which is 20 years.
AngloGold Ashanti’s rights and permits
Historically, AngloGold Ashanti had interests in the Morila, Sadiola and Yatela gold mines, all of which were governed by mining conventions (conventions d’établissement) covering exploration, mining, treatment and marketing in a comprehensive document. These documents include general provisions regarding exploration (work programme, fiscal and customs framework) and exploitation (formation of a local limited liability mining company, State interest, fiscal and customs framework governing construction and exploitation phases, exchange controls, marketing of the product, accounting regime, training programmes for local labour, protection of the environment, reclamation, safety, hygiene and dispute settlement). The Morila and Sadiola gold mines were sold in November and December 2020, respectively.
In April 2017, Société d’Exploitation des Mines d’Or de Yatela S.A. (“Yatela”), the company operating the Yatela gold mine, began the implementation of a closure plan in order to relinquish the property. In February 2019, AngloGold Ashanti and its joint venture partner IAMGOLD Corporation announced an agreement to sell Kopanang,each of their 40 percent interests in Yatela to the nearby West Gold Plant and related infrastructure as well asGovernment of Mali, which holds the remaining 20 percent interest. Completion of the transaction is subject to disposethe fulfilment or waiver of Moab Khotsong mine and related infrastructure. These transactions were subject to a number of conditions precedent all of which were achieved and the sales transactions were concluded effective 28 February 2018. As of 1 March 2018, AngloGold Ashanti ceasedhas been delayed several times since 2019 due to have underground mining operationspolitical instability and related events in the Vaal River area.
Tanzania
General laws relating to an increasemining
Tanzania Mining Act and Tanzania Mining Regulations
Mineral rights in waste tonnes at Moab Khotsong, moving away from higher grade areas at Mponeng,the United Republic of Tanzania are principally governed by the Mining Act, Chapter 123 (R.E. 2019), as amended (the “Tanzania Mining Act”) and the reclamationMining Regulations, 2018 (the “Tanzania Mining Regulations”). The Tanzania
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Mining Act and the Tanzania Mining Regulations came into force in November 2010 followed by amendments to the Tanzania Mining Act in 2017 and subsequent amendments to the Tanzania Mining Regulations in 2018 and 2019. The Mining (Local Content) Regulations were amended and came into force on 23 September 2022. Those amendments, together with an Executive Order, introduced, among other matters, (i) the Tanzania Mining Commission; (ii) local content requirements in employment and for procurement of goods and services; (iii) Mining Licence requirements of five percent of a licencee’s equity to be held by Tanzanians, with at least 80 percent of its managerial positions to be held by Tanzanians and 100 percent of non-managerial and other positions to be held by Tanzanians, in addition to the shareholding of the tailing storage facilities atGovernment of Tanzania pursuant to Section 10 of the West Wits Surface Sources.Tanzania Mining Act (i.e. free-carried interest); and (iv) regulations for the government warehousing of minerals prior to export/sale.
Minimum shareholding and public offering
In 2016, the Mining (Minimum Shareholding and Public Offering) Regulations, 2016, as amended, was adopted. The decisionregulations set out the requirement to stopsell shares to Tanzanian nationals, by way of a public offering and listing on the loss-making operationsDar es Salaam Stock Exchange, which will apply to companies that are carrying out large scale mining operations. The regulations also require all existing holders of a special mining licence to list a minimum of 30 percent of their shares on either the Main Investment Market or the Enterprise Growth Market Segment of the Dar es Salaam Stock Exchange within six months of the regulations coming into force, which was on 24 February 2017. However, the Company believes the listing requirement conflicts with the mining development agreement. In September 2020, the Government of Tanzania published the Mining (Minimum Shareholding and Public Offering) (Amendment) Regulations, 2020, which exempts companies holding special mining licences from local listing requirements if such mining company has entered into an agreement with the Government of Tanzania that provides for a non-dilutable free-carried interest in such mining company and an economic benefits sharing arrangement.
Arbitration
Along with other major mining companies, AngloGold Ashanti’s subsidiaries are seeking a constructive dialogue with the Government of Tanzania to gain assurances that the Geita gold mine will not be affected by recent legal and fiscal changes adopted by the Government in light of their mining development agreements which guarantee (i) fiscal and regulatory stability, and (ii) an agreement between all parties before material legal and regulatory changes are made. As a precautionary step to safeguard its interests, AngloGold Ashanti commenced international arbitration proceedings against the Government of Tanzania in connection with the enactment of this legislation in July 2017. Declaratory relief is sought in accordance with the terms of the company’s existing mining development agreement to preserve its and its shareholders’ rights and interests in the third quarter further impacted full-year production.
Categories of mineral right licences
Ownership of and control over minerals on, in or under the land vest in the President of the United Republic of Tanzania. No person is allowed to prospect for minerals or carry on mining operations except pursuant to the authority of a mineral right licence granted, or deemed to have been granted, under the Tanzania Mining Act or its predecessor acts. To enable a company to prospect or mine, the Tanzania Mining Commission (“MC”) initially grants an exclusive prospecting licence. Upon presentation of a feasibility study, together with certain other environmental, social and financial assurances, the MC may then grant a form of licence for mining. Three categories of licences can be applied for under the Tanzania Mining Act: licences for exploration, licences for mining, and licences for ancillary activities. Licences for exploration include prospecting licences and gemstone prospecting licences. Licences for mining include special mining licences (if the proposed capital investment is equal to at least $100 million), mining licences (if the proposed capital investment is equal to between $100,000 and $100 million) and primary mining licences (reserved for Tanzanian citizens).
A prospecting licence grants the holder the exclusive right to prospect in the area covered by the licence for all minerals within the class of minerals applied for. An application for a prospecting licence is made to the Mining Commission and the licence, once granted, is valid for an initial term of four years. After the initial term, the licence is renewable for a further period of three years, with no option for renewal thereafter. Upon renewal, 50 percent of the area covered by the licence must be relinquished.
Mining is mainly carried out through either a mining licence or a special mining licence, both of which confer on the holder the exclusive right to conduct mining operations in or on the area covered by the licence. A special mining licence is granted for the shorter of either the estimated life of the ore body indicated in the feasibility study report or such period as the applicant may request. The holder of a special mining licence may apply for renewal of its licence at any time but no later than one year before the expiry of the licence and such renewal shall not be for a period exceeding the estimate life of the remaining ore body. Special
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mining licences have certain fiscal and other advantages over mining licences, as the holder of a special mining licence may enter into a mining development agreement with the Government of Tanzania to guarantee the fiscal stability of a long-term mining project and make special provision for the payment of royalties, taxes, fees and other fiscal imposts. A special mining licence holder may, in certain circumstances, amend the programme of the mining operations agreed with the MC.
Tax laws relating to mining
Currently, the main tax laws in Tanzania comprise the Finance Act, 2015 (No. 16), which came into force on 1 July 2015, the Finance Act, 2017 (No. 4), which came into force on 1 July 2017, and currently the Finance Act, 2022 (No. 5), which came into force on 1 July 2022. All tax laws impose and revise certain taxes, duties, levies and fees. Among other provisions, inspection or clearance fees on the exportation or domestic use of minerals were introduced. Such exportation or domestic use is restricted unless such minerals have been inspected or cleared at the mining areas, face-time constraintsports, airports, border or posts and the clearing fee of one percent of the gross value of the minerals has been paid by the exporter or any other person in possession thereof. Local government levies and environmental management fees and charges apply as well.
Effective 20 July 2017, the Value Added Tax Act, 2014 (No. 5) (the “VAT Act”) was amended in order to restrict VAT relief for VAT input tax paid by mining companies on goods and services. Prior to the enactment of this amendment to the VAT Act, mining companies were entitled to 100 percent VAT relief in respect of the goods and services they purchased. The amendment prohibits refunds for VAT input tax incurred on a series of raw products, including the exportation of “raw minerals”. Subsequently, the Tanzania Revenue Authority (“TRA”) denied our applications for VAT input credit refunds, which amounted to a total of $153 million (after discounting provisions) as of 31 December 2022, covering the period from July 2017 onwards, on the basis that all of the gold doré that we export constitutes “raw minerals” for purposes of the VAT Act. In response, the company filed formal notices of objection with mining occurring further awaythe TRA stating that the exportation of gold doré is, in its view, not covered by the restriction since doré does not fall within the category of “raw minerals” as used in the VAT Act. On 22 February 2019, the Tanzania Mining Act was amended to introduce a definition for “raw minerals” which supports our interpretation that gold doré is excluded from shaft stations,the prohibition. On 1 July 2020, the Finance Act, 2020 (No. 8), amended the VAT Act, without retrospective effect, in order to remove the restrictions on VAT input tax credits for the exportation of “raw minerals” as well as three separate seismicity-induced fatal accidentsa series of other raw products. This recent amendment confirms the technical basis for VAT input tax recovery for mineral exporters from July 2020 onwards. VAT claims from July 2020 onwards are subject to verification procedures by the TRA before any refunds will be received. In 2022, the company was able to offset $45 million of verified VAT claims (from July 2020 onwards) against its corporate tax liability in Tanzania. Discussions with the TRA are ongoing to resolve our historical claims for VAT input credit refunds for the period from July 2017 to June 2020.
Natural resources, export and other rules
Natural resources legislation
In Tanzania, two laws in respect of natural resources came into force in July 2017: the Natural Wealth and Resources Contracts (Review and Re-negotiation of Unconscionable Terms) Act, 2017 (No. 6) (the “Unconscionable Terms Act”) and the Natural Wealth and Resources (Permanent Sovereignty) Act, 2017 (No. 5) (the “Permanent Sovereignty Act” and together with the Unconscionable Terms Act, the “Natural Resources Laws”). Implementing regulations were published in January 2020. The Natural Resources Laws provide that Tanzania has sovereignty over its natural resources and that all arrangements or agreements that relate to “natural wealth and resources” are subject to review by the National Assembly to ensure that they are in the second halfinterests of the year. The mine’s performance improved towardspeople of Tanzania. During a review all unconscionable terms as interpreted in accordance with the endlaw are expunged from the agreement. In addition, under the laws, disputes over natural wealth and resources will not be subject to any proceedings in any foreign court or tribunal. As a result, investors are restricted from accessing international dispute resolution mechanisms. Accordingly, companies are now required to adopt Tanzanian law and local dispute resolution in all mining agreements. As such, all disputes will be handles by Tanzanian judicial bodies or any other Tanzania government body vested with powers to resolve disputes. In addition, to ensure that the Government and the people of Tanzania obtain an equitable stake in the exploitation of mining resources, all project earnings must be retained in Tanzanian banks. Investors are also prevented from freely exporting raw minerals and repatriating funds.
Section 6 of the second quarterUnconscionable Terms Act specifically provides that where there is an unconscionable term, the National Assembly may pass a resolution for re-negotiation of the agreement whereupon the Government shall serve notice to the investor to re-negotiate the term or agreement. The Government and the particular investor have 90 days from the notice date to re-negotiate the term or agreement. If both parties fail to revise the unconscionable term, the term will be deemed removed from the agreement. A term is considered “unconscionable” under the Unconscionable Terms Act if, among other grounds, the requirements or provisions of the agreement restrict the right of the state to exercise authority over foreign investment within the country and in accordance with the laws of Tanzania, are inequitable and onerous to the state, secure preferential treatment designed to create a separate legal regime to be applied discriminatorily for the benefit of a particular investor, deprive the people of Tanzania of the economic benefits derived from subjecting natural wealth and resources to beneficiation in the country, or subject the state to the jurisdiction of foreign laws and foreign courts or tribunals.
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State participation
On 23 September 2022, the Mining (State Participation) Regulations, 2022 (the “SPR 2022”) came into force. The SPR 2022 required every mining licence or special mining licence holder to give notice to the MC to initiate negotiations to enable the Government of Tanzania to acquire a shareholding in the mining operation by 23 December 2022. On 9 December 2022, the company notified the MC that it had already initiated negotiations with the Government of Tanzania prior to the coming into force of the SPR 2022. The Government’s equity interest must consist of a non-dilutable free-carried interest in the mining operation ranging between 16 percent and 50 percent depending, in part, on the quantification of tax expenditures enjoyed by the mining entity during its establishment and on the extent of Government development of public infrastructure servicing the mining operation. The free-carried interest shares (the “FCI shares”) will be regarded as preferred shares and will entitle the Government to a dividend. Further, the FCI shares give the Government the right to appoint two directors (out of five) of the company engaged in the mining operation and the right to approve at least two suitable persons to the top executive management of the company engaged in the mining operation as may be agreed in the shareholders agreement. Any other management positions created by the company engaged in the mining operation shall be shared with the Government on a ratio of 3:1. The SPR 2022 also provides for the non-deductibility of royalty payments in the calculation of corporate income tax.
Local participation policy
On 15 September 2015, the Non-Citizens (Employment Regulation) Act, 2015 (No. 1) (the “Non-Citizens Act”) came into force which vests powers concerning work permits with the Labour Commissioner. Therefore, non-citizens wishing to be employed in the country are required to apply and be granted a work permit before applying for a residence permit. Before granting the work permit, the Labour Commissioner must be satisfied that all efforts have been explored to acquire a local expert. Further, the company is required to submit a succession plan to both the Labour Commissioner and the MC which sets out a well-articulated plan for the transfer of the non-citizen’s knowledge and expertise to Tanzanian citizens. Moreover, the Commissioner General of Immigration is required to take into consideration conditions of the work permit issued by the Labour Commissioner when granting a residence permit.
The Tanzania Investment Act No. 10 of 2022
On 2 December 2022, the Tanzania Investment Act, 2022 (No. 10) (the “Investment Act”) came into force. The Investment Act restores the right to international arbitration and grants foreign investors access to settle disputes with the Tanzania Investment Centre or the Government of Tanzania through arbitration. Pursuant to the Investment Act, parties to a dispute may agree to the use of a local or foreign arbitration venue.
AngloGold Ashanti’s rights and permits
The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania. AngloGold Ashanti has concluded a mining development agreement with the Ministry of Minerals on 24 June 1999 and was issued a special mining licence (SML45/99) covering approximately 196 km2 for a period of 25 years, which expires on 26 August 2024. The internal renewal process for the special mining licence (SML45/99) is underway with a view to submitting an application for renewal prior to its expiry date. On 9 October 2014, an addendum to the mining development agreement was entered into ratifying, among other matters, an increase in the royalty rate from three percent to four percent with effect from 1 May 2012. In March 2020, Geita Gold Mining Limited received the consent of the Minister of Minerals to change the mining method under its special mining licence from open pit to underground method, subject to the requisite terms and conditions. Within the special mining licence area, there are also seven primary mining licences of approximately 0.63 km2 in total which belong to third parties. Furthermore, AngloGold Ashanti holds prospecting licences covering (i) an area of 120 km2 in the immediate vicinity of its special mining licence area, and (ii) an area of 690 km2 located in the Dodoma, Singida and Shinyanga regions, but none of these areas contain any Mineral Reserve. All licences are in good standing.
AUSTRALIA
General laws relating to mining
In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories. Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.
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Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) (the “ACH Act”) which was enacted in 2021. The regulations, management code and various guidelines which underpin the ACH Act are being co-designed by the State government, traditional owners, industry and other stakeholders. The ACH Act will not become fully operational until the co-design process is complete in mid-2023 at the earliest. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation and, at this stage, it is not possible to predict any significant impact that may result in the future from the final regulations, management code and various guidelines under the ACH Act, once adopted.
AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.
It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.
Tax laws relating to mining
Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.
Environmental laws relating to mining
Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. In Western Australia, legislation removing the distinction between “works approvals” and “licenses” is expected to enter into force in December 2023 such that, following the effective date, only a “license” will be required for “prescribed activities”, which include relevant works and operations on a mining lease, and not a separate “works approval”. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.
AngloGold Ashanti’s rights and permits
AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the Group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.
At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.
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At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.
AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 15 exploration permits covering 316,851 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.
AMERICAS
Argentina
General laws relating to mining and land ownership
Mining regime
The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.
The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.
Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.
In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a three percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.
Glacier Law
On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.
Rural Land Law
On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than 15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this
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new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.
Federal Mining Agreement
On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.
In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.
Foreign exchange and export rules
Foreign exchange controls
On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by the Consolidated Text on “Foreign Trade and Exchange” issued by the Argentinean Central Bank (as amended from time to time) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances.
In October 2022, the Argentinean national government implemented the Argentinean System of Imports (Sistema de Importaciones de la República Argentina) (“SIRA”) and the Argentinean System of Imports and Foreign Payments of Services (Sistema de Importaciones de la República Argentina y Pagos de Servicios al Exterior). Importers must obtain a SIRA approval in the form of a SIRA certificate for the import of goods and to access the foreign exchange market for payments in connection with the import of goods. Additionally, from 1 January 2023, Argentinean residents, such as CVSA, must comply with certain supplementary provisions in order to access the foreign exchange market without prior approval of the Argentinean Central Bank, unless an exception applies.
CVSA had a cash balance equivalent to $116 million at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $105 million (equivalent) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter dueof 2022. In December 2022, the Argentinean Central Bank approved, based on the applications submitted under this special regime, the payment of $17 million (equivalent) to improved efficiencies. Production highlights includedAngloGold Ashanti. As a four percent increaseresult, during 2022, AngloGold Ashanti received offshore dividends from CVSA in the mineable face length which allowed for more face-length flexibility. During the year, the average monthly face advance increased from less than 4.9m to more than 5.0m in June, which was maintained for the rest of the year. Mponeng’s yield improved in the last quarter of the year, to an average of 8.54g/t. Unfortunately, safety-related work stoppages following the fatal accidents in late October and early November contributed to a disappointing decline in production in the last quarter.
Export duties
On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The sticky nature ofSolidarity Law granted the material processed through the Surface Operations’ plants negatively impacted metallurgical efficiencies. Surface Operations’ production was also affected by the suspension of the Kopanang marginal ore dumps and reduced availability of the mill at the Kopanang gold plant.
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On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2019 Procedure”). CVSA initiated the 2019 Procedure to claim compensation for the export duties it paid in 2018, 2019 and 2020 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.
Pursuant to the 2019 Procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $2.0 million and $6.3 million, respectively, as of 31 December 2022. These claims are currently under evaluation, involves deepeningreview by the secondary shaftrelevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to further extendapproximately $12.4 million as of 31 December 2022. The National Mining Secretary has not yet issued an opinion regarding this claim.
Furthermore, CVSA has requested the lifetax authorities to apply the 2019 Procedure in respect of mine.
On 9 June 2022, the last quarterArgentinean tax and mining authorities published a resolution (RC 5205/2022) establishing a new administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the year following flooding of the emergency pump station and pump station panels. The emergency pump station is still under construction at the bottom of the decline system, with full commissioning expected in the second half of 2018. Construction and commissioning of the ore handling infrastructure to 126 level is expected to be completedtotal tax burden provided for by the endapplicable tax stability guarantee (the “2022 Procedure”). This 2022 Procedure replaces the 2019 Procedure established by RC 4428/2019. On 20 September 2022, CVSA submitted its claim for compensation for the export duties in respect of fiscal year 2021, which amounted to approximately $11.2 million as of 31 December 2022, pursuant to the first half of 2018. The ramp-up to steady state of ore reserve development is continuing. The revised geological resource model associated with the Ventersdorp Contact Reef2022 Procedure. This claim is currently under review.
Attributable gold production (000oz) | Average number of employees | ||||
| Subsidiary operations | |||||
| 2. Ghana | |||||
| Iduapriem | 228 | 1,598 | |||
| Obuasi | 3 | 1,066 | |||
| 3. Guinea | |||||
| Siguiri 85% | 323 | 3,353 | |||
| 5. Tanzania | |||||
| Geita | 539 | 4,251 | |||
| Joint venture operations | |||||
1. Democratic Republic of the Congo | |||||
| Kibali 45% | 268 | 2,428 | |||
| 4. Mali | |||||
| Morila 40% | 28 | 305 | |||
| Sadiola 41% | 63 | 592 | |||
| Unit | 2017 | 2016 | 2015 | |||||||
| Subsidiary operations | ||||||||||
| Tonnes treated/milled | Mt | 20.3 | 20.8 | 20.8 | ||||||
| Pay limit | oz/t | 0.038 | 0.034 | 0.039 | ||||||
| g/t | 1.130 | 1.151 | 1.183 | |||||||
| Recovered grade | oz/t | 0.054 | 0.046 | 0.049 | ||||||
| g/t | 1.84 | 1.59 | 1.68 | |||||||
| Gold production (attributable) | 000oz | 1,094 | 955 | 1,028 | ||||||
| Cost of sales | $m | 1,070 | 925 | 969 | ||||||
Total cash costs (1) | $/oz | 686 | 674 | 687 | ||||||
All-in sustaining costs (1)(2) | $/oz | 909 | 886 | 861 | ||||||
| Capital expenditure | $m | 290 | 191 | 183 | ||||||
| Safety | ||||||||||
| Number of fatalities | 0 | 0 | 1 | |||||||
| AIFR | Per million hours worked | 0.48 | 0.31 | 0.29 | ||||||
| People | ||||||||||
| Average no of employees: Total | 10,268 | 9,599 | 8,907 | |||||||
| Permanent employees | 4,523 | 4,441 | 4,876 | |||||||
| Contractors | 5,745 | 5,158 | 4,031 | |||||||
| Unit | 2017 | 2016 | 2015 | |||||||
| Joint venture operations | ||||||||||
| Tonnes treated/milled | Mt | 7.7 | 6.8 | 6.4 | ||||||
| Pay limit | oz/t | 0.045 | 0.038 | 0.041 | ||||||
| g/t | 1.528 | 1.294 | 1.407 | |||||||
| Recovered grade | oz/t | 0.047 | 0.052 | 0.064 | ||||||
| g/t | 1.10 | 1.79 | 2.19 | |||||||
| Gold production (attributable) | 000oz | 359 | 356 | 407 | ||||||
| Cost of sales | $m | 440 | 406 | 378 | ||||||
Total cash costs (1) | $/oz | 822 | 809 | 656 | ||||||
All-in sustaining costs (1)(2) | $/oz | 1,087 | 955 | 701 | ||||||
| Capital expenditure | $m | 119 | 100 | 132 | ||||||
| Safety | ||||||||||
| Number of fatalities | 0 | 0 | 0 | |||||||
| AIFR | Per million hours worked | 2.08 | 1.95 | 3.64 | ||||||
| People | ||||||||||
| Average no of employees: Total | 3,325 | 3,092 | 3,040 | |||||||
| Permanent employees | 944 | 890 | 895 | |||||||
| Contractors | 2,381 | 2,202 | 2,145 | |||||||
In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million as of Mali, though no agreement has yet been reached in this regard. Despite our efforts31 December 2022.
Environmental laws relating to mining
Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and the clear benefits the project would generate locally and to the Governmentstorage of Mali, there has been no resolution around the terms critical to moving the project forward. AngloGold Ashanti and joint-venture partner IAMGOLD Corporation continue to evaluate the project which will add sulphide-ore processing capability to the plant. Although we remain committed to the project, if no agreement is reached, the operation will enter a restricted exploitation phase and then, when stockpiles are exhausted, it will enter a phase of suspended exploitation (care and maintenance).
Attributable gold production (000oz) | Average number of employees | ||||
| Operations | |||||
| Australia | |||||
| 1. Sunrise Dam | 238 | 489 | |||
| 2. Tropicana 70% | 322 | 485 | |||
AngloGold Ashanti’s Australasian assets compriserights and permits
The mining concession holder of Cerro Vanguardia, the Company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned Sunrise Damby the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and the 70 percent-owned Tropicana Gold mine, Australia’s newest gold mine.foreign exchange stability certificate, which expires in 2026.
| Unit | 2017 | 2016 | 2015 | |||||||
| Operation | ||||||||||
| Tonnes treated/milled | Mt | 9.4 | 8.9 | 8.2 | ||||||
| Pay limit | oz/t | 0.06 | 0.06 | 0.06 | ||||||
| g/t | 1.84 | 1.86 | 1.85 | |||||||
| Recovered grade | oz/t | 0.061 | 0.058 | 0.068 | ||||||
| g/t | 1.89 | 1.82 | 2.12 | |||||||
| Gold production (attributable) | 000oz | 559 | 520 | 560 | ||||||
| Cost of sales | $m | 550 | 540 | 525 | ||||||
Total cash costs (1) | $/oz | 743 | 793 | 702 | ||||||
All-in sustaining costs (1)(2) | $/oz | 1,062 | 1,067 | 875 | ||||||
| Capital expenditure | $m | 153 | 109 | 78 | ||||||
| Safety | ||||||||||
| Number of fatalities | 0 | 0 | 0 | |||||||
| AIFR | Per million hours worked | 8.53 | 9.49 | 8.56 | ||||||
| People | ||||||||||
| Average no of employees: Total | 974 | 925 | 836 | |||||||
| Permanent employees | 226 | 211 | 195 | |||||||
| Contractors | 748 | 714 | 641 | |||||||
General laws relating to mining and land ownership
The region deliveredBrazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a strong performance in 2017, producing 559,000oz driven by higher mill throughput ratesway as to protect the national interest. Federal law sets out penal and feed gradesadministrative sanctions for conduct and increased metallurgical recoveries.activities deemed harmful to the environment.
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Under the processing plant capacitycurrent Brazilian Mining Code, there are two kinds of approximately 3.6Mtpa. The higher-grade Cosmomines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and Vogue ore bodies wereexist independently of any mining licence or authorisation from the focus of development in 2017, with Vogue targeted to beFederal Government and for which the key ore source in 2018.
Mining activities in mill throughput,granted mines must be performed in two defined stages: (i) exploration, which delivered a 10 percent increase in attributable gold production. A fines pulping circuit was commissioned in November 2017, further improving efficiencyentails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration authorisations issued by minimising downtime during maintenance shutdowns. Thisthe ANM are valid for one to four years. One extension can be obtained automatically as long as it is expected to increase annual mill runtimes by approximately two percent tojustified. For more than 98 percent.
Tax laws relating to mining
During the exploration period, the mining fleet, mining rates increasedtitleholder has to more than 90Mtpa in 2017, enablingpay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the resumption of grade streaming - the preferential treatment of higher grade ore while low-to-medium grade ore was stockpiled - during the second halfexploitation period, regardless of the year. Mining in 2017 focusedlegal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on the Havana 3 and Tropicana 2 pits.revenues.
At the end of 2017,2011 and the total attributable Ore Reserve forbeginning of 2012, the Australasia Regionstates of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes was 4.0 million ounces (2016: 4.0 million ounces). This is approximately eight percent of the group’s total Ore Reserve.
Environmental laws relating to installmining
Following the catastrophic failure of a 6MW ball mill in the processing plant, enabling throughput to be lifted to 8.1Mtpa to match the increased mining rate. Through a reduction in grind size, baseline metallurgical gold recovery is expected to improve by up to three percent to approximately 92 percent.
Attributable gold production (000oz) | Average number of employees | ||||
| Operations | |||||
1. Argentina | |||||
| Cerro Vanguardia 92.5% | 283 | 2,001 | |||
2. Brazil | |||||
| AGA Mineração | 424 | 4,932 | |||
| Serra Grande | 133 | 1,578 | |||
3. Colombia – exploration programme | |||||
| Unit | 2017 | 2016 | 2015 | |||||||
| Operation | ||||||||||
| Tonnes treated/milled | Mt | 7.5 | 7.0 | 7.0 | ||||||
| Pay limit | oz/t | 0.104 | 0.100 | 0.098 | ||||||
| g/t | 3.576 | 3.421 | 3.351 | |||||||
| Recovered grade | oz/t | 0.102 | 0.106 | 0.108 | ||||||
| g/t | 3.49 | 3.64 | 3.71 | |||||||
| Gold production (Attributable) | 000oz | 840 | 820 | 831 | ||||||
| Silver (attributable) | Moz | 5.8 | 4.9 | 4.4 | ||||||
| Cost of sales | $m | 851 | 752 | 719 | ||||||
Total cash costs (2) | $/oz | 638 | 578 | 576 | ||||||
All-in sustaining costs (2)(3) | $/oz | 943 | 875 | 792 | ||||||
Capital expenditure (4) | $m | 234 | 225 | 196 | ||||||
| Safety | ||||||||||
| Number of fatalities | 0 | 1 | 1 | |||||||
| AIFR | Per million hours worked | 3.29 | 3.96 | 5.61 | ||||||
| People | ||||||||||
| Average no of employees: Total | 8,511 | 8,126 | 7,679 | |||||||
| Permanent employees | 5,888 | 5,653 | 5,492 | |||||||
| Contractors | 2,623 | 2,473 | 2,187 | |||||||
At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.
Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. On 26 May 2022, the ANM issued a technical note allowing the extension until 2025. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.
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As of 31 December 2022, AngloGold Ashanti has fully transitioned to dry-stacking operations for tailings storage at each location in Brazil. Capital expenditures required in 2022 to implement this new management team and adoption of an integrated planning system. The operation saw a seven percent increase year-on-year in ore treated, an improvement which we believetechnology amounted to approximately $83 million. Capital expenditures for work required to comply with TSF-related requirements during the period 2023-2025 are expected to be sustainable.material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be less than in prior years and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).
At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contains the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The challenges at Cuiabágovernment of Minas Gerais adopted several decrees in furtherance of this legislation.
In addition, ANM Resolution No. 95/22, which became effective on 22 February 2022, effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19, and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the geotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to delaysembargos at five of AngloGold Ashanti’s TSFs in developmentBrazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. Construction at the Calcinados TSF is expected to begin later in 2023, and the timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
On 1 December 2022, the ANM published ANM Resolution No. 122/22, which relates to administrative sanctions for non-compliance with mining and dam safety regulations and which, in addition to significantly increasing the values of applicable fines and penalties, establishes procedures and parameters for available sanctions including seizures of ore, goods and equipment, suspension of mining activities, demolition of mine infrastructure that hindered accessand invalidation or cancellation of title and exploration licences.
Further amendments to high-grade areas.the regulatory requirements in Brazil governing such TSFs and related dams are expected to be adopted in 2023.
AngloGold Ashanti’s rights and permits
At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.
At Serra Grande, the production increase came despite lower feed grades and was driven by higher tonnes treated, supported by improved crushing and milling efficiencies and more efficient leaching, following implementationCompany has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the carbon-in-leach project.relevant tenements that correspond to all current exploration and mining activities. These efficiencies werehave been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.
All of the Company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.
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Colombia
General laws relating to improved levelsmining and land ownership
General regime
The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of ore mined, offsetting lower open-pit production.the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.
With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the previous year,land (soil). This can be achieved in several ways, such as (i) purchase of the highest level of production in 18 years. This achievement was driven mainly byland, (ii) a transit easement, (iii) a mining easement, and (iv) the increase in tonnes treated atspecial acquisition process or expropriation.
Concession contract
As the plant together with operational and metallurgical improvements. In addition, the grades were higher year-on-year, a result of variability in the mining model.
Such concessions allow concessionaires to conduct the seven percent drop in total cashstudies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs at Cerro Vanguardia, mainly due to record production, higher by-product contribution and favourable stockpile movements.
PINES programme
In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).
Tax laws relating to mining
From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.
Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a five percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of four percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.
Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest one percent of the project’s value to benefit the basins covered by the environmental licence.
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Environmental laws relating to mining
In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.
In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.
Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance. Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 1987/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.
AngloGold Ashanti’s rights and permits
The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The most recent one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on 22 June 2023. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.
Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in June 2018, after which such declaration will needMay 2037 and is currently in its seventh year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to be extended. At‘archive’ the environmental licence application relating to the Quebradona following completionproject. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the process of preparing a conceptual studynew Environmental Impact Assessment for the Quebradona project to submit to ANLA in 2016, the focus in 2017 as the first phase progressed was on evaluating the alternatives to be considered during the prefeasibility phase, which is expected to be concluded in 2018. The alternatives included mining methods, mine access and project layout.connection with its environmental licence application.
The Gramalote project is organised as a joint ventureoperation between AngloGold Ashanti (51 percent(through AGA Colombia Holdings Limited and manager)AngloGold Ashanti Holdings plc) and B2Gold (49 percent)(through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), declaredto carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract
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No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044 and an exploration concession No. QHQ-16081 (which covers a total area of 9.78 hectares) which expires in 2052. Following the completion of the feasibility study in the second half of 2022, AngloGold Ashanti and B2Gold determined that the Gramalote project does not meet their investment thresholds for development. Following a comprehensive review of the alternatives relating to the project, both joint operation parties commenced a joint sales process for the Gramalote project, which is currently ongoing.
United States of America (Nevada)
General laws relating to mining and land ownership
General regime
Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”), as well as relevant state statutes and regulations. The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.
Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of five acres or less on federal land, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.
The company is currently engaged in exploration activities on certain of its maiden Ore Reserveunpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling.
Potential regulatory changes
Over the years, the U.S. Congress has considered a number of 63.7Mt @ 0.86 g/tproposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines, and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.
There are a number of bills being proposed to the Nevada state legislature during the 2023 legislative session that could impact the company’s planned operations. These include proposed legislation that would alter the way water rights are administered by the state, as well as a bill that would, if enacted, impose additional requirements for environmental review of mineral development projects in Nevada. At this stage, it is not possible to evaluate whether these bills will be enacted in any form by the Nevada state legislature or, if passed, what impact any might have on AGA.
AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.
AngloGold Ashanti’s rights and permits
In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. The Silicon project consists of approximately 950 unpatented mining claims. The North Bullfrog project consists of 45 patented and approximately 1,600 unpatented mining claims (covering approximately 32,000 acres) situated in the Bullfrog mining district. There are also nine mining leases within the North Bullfrog project the majority of which continue in perpetuity so long as the company meets certain minimal requirements for use of the land. One mining lease is scheduled to expire in 2031. The Mother
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Lode project consists of 13 unpatented mining claims. The North Bullfrog and Mother Lode projects are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The southern claim block, encompassing the Sterling mine and other properties in the same general area, consists of approximately 1,900 unpatented claims (covering approximately 35,000 acres), which are now controlled by the company as a result of its acquisition of all of the outstanding stock of Coeur Sterling, Inc. (a subsidiary of Coeur Mining, Inc.), which closed on 4 November 2022. As a result of this acquisition, the company now controls a past-producing mine site in southern Nevada known as the Sterling mine, which has one applicable mining lease that expires in 2029, with the option to extend the lease for an additional ten-year period. Although the Sterling mine is currently in care and maintenance status, it remains subject to complex permitting and regulatory requirements, including compliance with relevant provisions of the U.S. Federal Mine Safety and Health Act of 1977 and oversight by the U.S. Department of Labor’s Mine Safety and Health Administration (“MSHA”).
MINE SITE REHABILITATION AND CLOSURE
Closure, an integral part of operations
All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for site closure and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.
AngloGold Ashanti integrates mine closure planning throughout the mine life cycle as follows:
•Exploration stage: developing a plan and programme for cessation and closure of exploration activities in a manner that meets local laws and AngloGold Ashanti's mine closure planning standard.
•Project phase: developing conceptual closure plans and cost estimates for all projects and including them in project feasibility studies, designs and evaluations.
•Operational phase: developing and periodically updating mine closure plans and cost estimates with increasing levels of detail and confidence over the operational phase as part of the business planning process. Closure plan updates take into account operational conditions, planning and regulatory requirements as well as advances in technology and international industry good practice (e.g., the ICMM Integrated Mine Closure Good Practice Guide). Concurrent rehabilitation, which is carried out while a mine is still operational, is a good practice that serves to decrease the final rehabilitation and closure work as well as the ultimate liability.
•Closure period: implementing the final closure plan starting at cessation of operations through a period of decommissioning, dismantling and rehabilitation until the point in time where management of the site is largely limited to monitoring and maintenance.
The Company’s group mine closure planning standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Each mine closure plan includes a social transition plan which seeks to minimise social impacts and maximise opportunities for local communities, including human resource, social infrastructure, economic and financial assets with the aim of enhancing the self-sustainability of mine communities after mine closure.
Provisions for decommissioning and restoration costs are made when there is a present obligation, it is probable that expenditure on decommissioning and restoration work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.
Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures) decreased by $95 million from $673 million in 2021 to $578 million in 2022. This decrease was mainly due to changes in estimates resulting from changes in discount rates, changes in global economic assumptions, changes in mine plans resulting in a change in cash flows as well as changes in the design of TSFs.
SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
AngloGold Ashanti’s sustainability approach is fundamental to how the Company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the Company’s business and operations at all levels through various frameworks, standards and policies, and the Company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.
In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and
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the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).
AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the Company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the Company’s general managers in the day-to-day implementation of its sustainability strategy.
AngloGold Ashanti maintains a set of policies and procedures to guide the Company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2022, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate, manage and monitor sustainability activities with respect to its broader business. This common management and reporting application for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.
Significant EHS requirements and ESG risks and trends affecting the Company’s mining and processing operations are described below.
EHS Regulatory Compliance
AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the Company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); mine and dam safety, regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the Company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.
Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend facilities, such as TSFs, or operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the Company’s properties which may have been caused by previous owners or operators.
Water Management
AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the Company’s operations, including with respect to the Company’s mining operations in Ghana and Brazil, its mine development projects in Nevada, as well as its mine development project at Quebradona in Colombia. Any failure by the Company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the Company to comply with water contamination related directives may result in further, more stringent, directives being issued against the Company, which may, in some cases, result in a temporary or partial shutdown of some of the Company’s operations.
Where feasible, the Company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.
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Waste Management
During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.
The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the Company therefore monitors such facilities closely in accordance with the Company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. A safety or environmental incident at the Company’s operations could result, among other things, in enforcement, including mandatory shutdown of a TSF and related facilities, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.
For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For example, in late 2022, tailings deposition was suspended at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (“DCO”) and/or geotechnical stability (“DCE”) consistent with new regulatory standards enacted in early 2022. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. The timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025, and the costs related to meeting such standard are not expected to be material to AngloGold Ashanti.
In addition, AngloGold Ashanti could incur liabilities, or material costs to manage solid and hazardous waste generated by its mining activities, including dust and residual chemicals and metals. For example, AngloGold Ashanti expects to incur approximately $25 million to $30 million in capital expenditure and operating costs during 2023-2026 in connection with treatment and disposal of a quantity of legacy arsenic trioxide waste located at the Obuasi mine.
Groundwater Impacts and Environmental Remediation
As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the Company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination, including in Tanzania, where an attributable contained metal contentin-situ remediation project to address sulfate in groundwater commenced operations in 2022.
Subject to the completion of 1.8Moz. Gramalote representssite-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a long-term optionmaterial adverse impact upon AngloGold Ashanti’s results and its financial condition.
Climate Change and GHG Regulation
At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the Company’s strategic and operational planning processes.
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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050. AngloGold Ashanti has also committed to achieving a 30 percent reduction in absolute Scope 1 and 2 emissions by 2030 (as compared to a 2021 baseline), and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.
In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.
New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the Company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through nation state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.
For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduce GHG emissions by 43 percent by 2030 compared to 2005 levels.
In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered GHG emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, the Australian mining operations will be required to apply production-adjusted baselines and, if actual emissions exceed the baseline, to purchase emissions offsets for the business. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not expected to be material to the Company’s business.
In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the Company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These physical climate risks will be further reviewed and refined in 2023.
Occupational Safety and Health
AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the Company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents and introduce corrective measures at those operations.
Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the Company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. AngloGold Ashanti has made significant strides in improving safety. In 2022, there was a 41 percent reduction in year-on-year total recordable injury frequency rate, and no fatalities at any of the mines operated by AngloGold Ashanti.
AngloGold Ashanti’s Group Safety Strategy, which is updated every three years, seeks to integrate operational risk management and key performance indicators at all avenueslevels of the organisation and maintain alignment with global safety standards. The SES
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Committee oversees the implementation of the Group Safety Strategy. All operations, have been certified to realiseISO 45001:2018, which has replaced the OHSAS 18001:2007 series.
Community Health and Tropical Diseases
AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the Company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the Company’s Africa region and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The Company continues to expand preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.
In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the Company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Statement of Compliance—Significant Accounting Judgements and Estimates—Provision for silicosis”.
In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.
Malaria and other tropical diseases also pose health risks at all of the Company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected Company operations in Africa have malaria control programmes in place. The Ghana Obuasi malaria control programme activities have been completed in 16 districts of Ghana as planned for 2022 and a new cycle of indoor residual spraying will commence in 2023; in partnership with the Global Fund and the Ghana Department of Health.
In 2022, the COVID-19 pandemic subsided significantly with decreases in reporting of severe disease or deaths. Nevertheless, AngloGold Ashanti continued to direct resources for close surveillance and maintenance of controls within the company with a view to ensure continuity of its operations and avoid any potential disruption in the event of a re-emergence of the pandemic. Universal access to safe and effective vaccines provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to continue to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills.
The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic, particularly after the company’s experience with Ebola in Guinea in 2014 and 2015.
The company focused on optimising mental wellbeing, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which it operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently approved the newly updated health, hygiene and wellbeing standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.
Diversity and Inclusion (“D&I”)
With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term sustainability of its business. In addition, the Company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.
AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The Company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2022, AngloGold Ashanti conducted an analysis of global gender data across job level, function and country. The analysis was carried out to inform AngloGold Ashanti’s D&I strategy.
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Human Rights and Indigenous Peoples
In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the Company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.
The Company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.
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ANGLOGOLD ASHANTI GLOBAL FOOTPRINT: 2022
Operations and projects
Notes
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc. ("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
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OPERATING PERFORMANCE
Group description
AngloGold Ashanti is an independent global gold mining company with a diverse high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.
In 2022, our portfolio of ten operations in seven countries includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.
Our operations and projects are grouped into the following regions: Africa, Americas and Australia.
On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in the Morila mine in Mali and on 30 December 2020, the Company announced that it had completed the sale of its interest in the Sadiola Mine in Mali.
AngloGold Ashanti’s operations and joint arrangements employed, on average, 32,594 people (including contractors) in 2022 (2021: 30,561).
Performance
In 2022, AngloGold Ashanti produced attributable 2.742 million ounces of gold (2021: 2.472 million ounces), as well as 3.2 million ounces of silver and 352 tonnes of sulphuric acid as by-products.
Production of 2.742 million ounces of gold was achieved in 2022 at a cost of sales of $3.4 billion for subsidiaries and $342 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,439 per ounce for subsidiaries and $979 per ounce for equity-accounted joint venture operations, compared to a production of 2.472 million ounces in 2021 at a cost of sales of $2.9 billion for subsidiaries and $350 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,441 per ounce for subsidiaries and $856 per ounce for equity-accounted joint venture operations.
Gold
The AngloGold Ashanti gold Mineral Reserve increased from 28.1 million ounces as at 31 December 2021 to 28.8 million ounces as at 31 December 2022. This excludes Gramalote as the JV partner has decided not to publish the Mineral Reserve. This annual net increase of 0.7 million ounces includes additions due to exploration and modelling changes of 2.9 million ounces and changes in economic assumptions of 1.0 million ounces. This increase was partially offset by depletion of 2.9 million ounces and reductions due to other factors of 0.3 million ounces. The Mineral Reserve was estimated using a gold price of $1,400 per ounce, unless otherwise stated (2021: $1,200 per ounce). See “Item 4D Property, Plants and Equipment—Mineral Resource and Mineral Reserve”.
Copper
The AngloGold Ashanti copper Mineral Reserveremained unchanged at 1.47Mt (3,250Mlb) as at 31 December 2022 as a feasibility study optimisation is still ongoing and no additional exploration has been completed at Quebradona. The Mineral Reserve was estimated at a copper price of $2.90/lb, unless otherwise stated (2021: $2.90/lb). See “Item 4D Property, Plants and Equipment—Mineral Resource and Mineral Reserve”.
Capital expenditure, including equity-accounted joint ventures, in 2022 amounted to $1,118 million (2021: $1,100 million).
Safety
No fatal occupational safety incidents at any of the mines operated by the Company were recorded for 2022. The TRIFR was 1.26 per million hours worked in 2022 compared to 2.14 per million hours worked in 2021.
Full Asset Potential Review Programme
The Full Asset Potential (“FP”) programme aims to achieve a step-change in AngloGold Ashanti’s operating and cost performance by the year 2024. This programme includes a comprehensive three-month assessment of each of the Company’s mine sites, which covers every aspect of an operation. The outcome is intended to enhance the Company’s understanding of the relative potential of each asset and includes developing a plan and implementation schedule to achieve the targeted performance over the next six to 24 months. These assessments have now been completed at six operations of the Company (Sunrise Dam, Siguiri, Cuiabá, Tropicana, Serra Grande and Geita), where the relevant site leadership teams have taken full accountability for the delivery on these initiatives.
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Operational Excellence
Operational Excellence is the continued efforts to maximise value from this important asset remain open. Work will continueour assets.
New Operating Model
Our new Operating Model, designed and introduced to optimise all aspectsemployees towards the end of 2021, aims to improve efficiency and support better operating outcomes by focusing only on work required to deliver the strategy, clarifying the mandates of corporate functions, properly resourcing our revenue-generating assets to deliver on their plans, and removing duplicate structures and activities. The implementation of the new Operating Model was completed during 2022.
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AFRICA REGION
 | ||
Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 60 percent or 1.6 million ounces to total annual group production in 2022, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Subsidiary operations | |||||||||||
| Ghana | |||||||||||
| Iduapriem | 248 | 2,186 | |||||||||
| Obuasi | 250 | 4,403 | |||||||||
| Guinea | |||||||||||
| Attr. Siguiri 85% | 279 | 4,052 | |||||||||
| Tanzania | |||||||||||
| Geita | 521 | 6,435 | |||||||||
| Joint venture operations | |||||||||||
| Democratic Republic of the Congo | |||||||||||
| Attr. Kibali 45% | 337 | 2,731 | |||||||||
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Africa Region - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Restated | |||||||||||||||||||||||
| Subsidiary operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 21.6 | 21.2 | 20.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.044 | 0.035 | 0.034 | |||||||||||||||||||
| g/t | 1.516 | 1.193 | 1.160 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.054 | 0.045 | 0.052 | |||||||||||||||||||
| g/t | 1.86 | 1.54 | 1.77 | ||||||||||||||||||||
Gold production (a) (attributable) | 000oz | 1,298 | 1,054 | 1,239 | |||||||||||||||||||
| Cost of sales | $m | 1,662 | 1,300 | 1,362 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,023 | 991 | 841 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,291 | 1,264 | 1,002 | |||||||||||||||||||
| Capital expenditure | $m | 486 | 434 | 383 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 2 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 0.33 | 0.61 | 0.55 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 17,076 | 14,806 | 14,496 | ||||||||||||||||||||
| Permanent employees | 5,780 | 5,619 | 5,433 | ||||||||||||||||||||
| Contractors | 11,296 | 9,187 | 9,063 | ||||||||||||||||||||
(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Joint venture operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 3.5 | 3.5 | 3.4 | |||||||||||||||||||
| Pay limit | oz/t | 0.054 | 0.048 | 0.048 | |||||||||||||||||||
| g/t | 1.850 | 1.652 | 1.640 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.087 | 0.095 | 0.096 | |||||||||||||||||||
| g/t | 2.98 | 3.25 | 3.29 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 337 | 365 | 364 | |||||||||||||||||||
| Cost of sales | $m | 342 | 350 | 340 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 725 | 647 | 629 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 979 | 856 | 810 | |||||||||||||||||||
| Capital expenditure | $m | 90 | 72 | 52 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 2,731 | 2,454 | 2,333 | ||||||||||||||||||||
| Permanent employees | 957 | 860 | 824 | ||||||||||||||||||||
| Contractors | 1,774 | 1,594 | 1,509 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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Performance summary
Production for the Africa region was up 15 percent for the year ended 31 December 2022 at 1.635 million ounces compared to 1.419 million ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities at any of the mines operated by the Company and a TRIFR of 0.33 per million hours worked was recorded (2021: 0.61 per million hours worked).
Regional community investment totalled $10.19 million (2021: $10.5 million).
With Obuasi having received its ISO 45001 (health and safety) certification, all our Africa operations are now certified in terms of ISO 45001, ISO 14001 (environmental management) and the International Cyanide Management Code.
We continued integration of the new Operating Model, the existing Operational Excellence programme, and the Full Asset Potential (FP) review programme launched during 2021.
In the second half of 2022, Geita was part of the FP review programme designed to enhance understanding of the relative potential of each asset and includes developing a plan and implementation schedule to achieve the targeted performance over the next six to 24 months.
Siguiri was the first of the African operations to be involved in the FP review programme with the leadership team focusing on increasing the volume of high-grade oxide ore from Block 2. This increase was successful and is reflected in the year-on-year increase in production. We are starting to see the benefits of the FP review programme at Siguiri and a second contractor was hired to deliver higher volumes of higher-grade oxide ore from Block 2.
For more information regarding production performance in the Africa region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Africa region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”
For more information regarding capital expenditure in the Africa region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”
Obuasi update
Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress.
In 2022, the project achieved the following milestones: hoisting via the KMS rock shaft in November 2022; pumping to drop the water level below 50 level; commissioning of the material handling system from 44 level to surface; completing the new ventilation shaft pilot hole and progressing the KMS shaft down to 44 level.
The Obuasi mine continues on the ramp-up path to its feasibility phase,full production run-rate in excess of 400,000 ounces.
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THE AMERICAS
 | ||
The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
1. Argentina | |||||||||||
| Cerro Vanguardia (Attr. 92.5%) | 170 | 1,819 | |||||||||
2. Brazil | |||||||||||
| AGA Mineração | 311 | 5,702 | |||||||||
| Serra Grande | 88 | 1,977 | |||||||||
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Americas - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 7.1 | 7.8 | 7.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.10 | 0.10 | 0.07 | |||||||||||||||||||
| g/t | 3.52 | 3.49 | 2.46 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.070 | 0.066 | 0.081 | |||||||||||||||||||
| g/t | 2.40 | 2.27 | 2.77 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 569 | 559 | 649 | |||||||||||||||||||
| Silver production (attributable) | Moz | 3.2 | 3.4 | 3.3 | |||||||||||||||||||
| Cost of sales | $m | 913 | 822 | 764 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,078 | 921 | 721 | |||||||||||||||||||
All-in sustaining costs per ounce (1) | $/oz | 1,718 | 1,587 | 1,003 | |||||||||||||||||||
Capital expenditure (2) | $m | 339 | 398 | 216 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 2.33 | 3.55 | 3.68 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 9,498 | 9,972 | 8,789 | ||||||||||||||||||||
| Permanent employees | 6,093 | 6,452 | 6,158 | ||||||||||||||||||||
| Contractors | 3,405 | 3,520 | 2,631 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
(2)100 percent (not attributable) and includes Projects.
Performance summary
Production for the Americas region was up two percent for the year ended 31 December 2022 at 569,000 ounces compared to 559,000 ounces for the year ended 31 December 2021.
Safety – no occupational fatalities and the TRIFR improved to 2.33 per million hours worked (2021: 3.55 per million hours worked).
Community investment amounted to $6.4 million (2021: $5.8 million).
All operations in the Americas maintained their certification in terms of International Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
During the second half of 2022, Cuiabá and Serra Grande completed assessments to identify performance improvement initiatives as part of the FP review programme. The FP programme initiatives implemented at Cuiabá have seen ore tonnes consistently above full potential target. At Serra Grande, the FP team identified several enhancement opportunities and it is following implementation plans with timelines for delivery.
In December 2022, the company suspended filtered tailings deposition on the Calcinados TSF and processing of gold concentrate at the Queiroz plant (both of which is currently under way. service the Cuiabá mine complex). For further information, refer to “Item 4B: Business Overview—The enhanced prefeasibility study was completed in September 2017.Regulatory Environment Enabling AngloGold Ashanti is currentlyto Mine—Americas—Brazil” and “Item 3D: Risk Factors—Compliance with tailings management requirements and standards, and potential liabilities in discussionsthe event of a failure to timely comply with its joint venture partner, B2Goldthese requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti's financial condition, results of operations and reputation”.
For more information regarding production performance in the Americas region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Americas region, refer to “Item 5A: Operating Results—Comparison of operating performance on howa segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Americas region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
Nevada strategy
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In Nevada, during 2022, AngloGold Ashanti’s project team integrated the Corvus Gold assets and project data into the AngloGold Ashanti evaluation framework. The Company completed planning for feasibility study work at North Bullfrog and also commenced a pre-feasibility study at Silicon along with further progressdrilling at the project.Merlin deposit. Following the acquisition of Coeur Sterling’s mining properties in the fourth quarter of 2022, AngloGold Ashanti’s project team commenced integrating these assets into the broader evaluation studies.
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AUSTRALIA
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| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
| Australia | |||||||||||
| 1. Sunrise Dam | 232 | 725 | |||||||||
| 2. Tropicana 70% | 306 | 807 | |||||||||
The two AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of which are in the north-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned. We have a 70 percent holding in, and manage, Tropicana. Regis Resources Ltd, our partner in Tropicana, holds the balance. Sunrise Dam includes the Butcher Well project lies(70 percent).
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Australia - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 10.7 | 10.5 | 10.2 | |||||||||||||||||||
| Pay limit | oz/t | 0.05 | 0.06 | 0.06 | |||||||||||||||||||
| g/t | 1.69 | 1.89 | 1.95 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.050 | 0.047 | 0.054 | |||||||||||||||||||
| g/t | 1.56 | 1.47 | 1.68 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 538 | 494 | 554 | |||||||||||||||||||
| Cost of sales | $m | 783 | 740 | 705 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,157 | 1,196 | 968 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,345 | 1,500 | 1,225 | |||||||||||||||||||
| Capital expenditure | $m | 202 | 185 | 142 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 0 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 3.82 | 6.59 | 3.74 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 1,532 | 1,332 | 1,230 | ||||||||||||||||||||
| Permanent employees | 314 | 288 | 259 | ||||||||||||||||||||
| Contractors | 1,218 | 1,044 | 971 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
Performance summary
Production for the eastern flankAustralia region was up nine percent for the year ended 31 December 2022 at 538,000 ounces compared to 494,000 ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities and a TRIFR of 3.82 per million hours worked was recorded (2021: 6.59 per million hours worked).
Regional community investment amounted to $0.99 million (2021: $1.01 million).
Sunrise Dam and Tropicana are certified under the Cyanide Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
The first site to complete an assessment as part of the Cordillera Central, nearFP review programme was Sunrise Dam, where the townsbiggest opportunity is to increase productivity in development and achieve a step-change in underground production. The proposed improvements include an underground workshop to lift jumbo utilisation and improvements to planning and scheduling which, together are expected to support an increase in underground volumes. During the second half of Providencia and San Jose del Nus2022, Tropicana also completed an assessment to identify performance improvement initiatives as part of the FP review programme.
For more information regarding production performance in the municipality of San Roque,Australia region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the northwestAustralia region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Australia region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
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SOUTH AFRICA
 | ||
The sale of the Antioquia Department. It is approximately 230km north-westSouth African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.
South Africa Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 0.4 | |||||||||||||||||||||
Pay limit (1) | oz/t | 0.40 | |||||||||||||||||||||
| g/t | 14.60 | ||||||||||||||||||||||
Recovered grade (1) | oz/t | 0.120 | |||||||||||||||||||||
| g/t | 3.75 | ||||||||||||||||||||||
| Gold production | 000oz | 241 | |||||||||||||||||||||
| Cost of sales | $m | 287 | |||||||||||||||||||||
Total cash costs per ounce (2) | $/oz | 1,149 | |||||||||||||||||||||
All-in sustaining costs per ounce(2) | $/oz | 1,296 | |||||||||||||||||||||
| Capital expenditure | $m | 35 | |||||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 4 | ||||||||||||||||||||||
| TRIFR | Per million hours worked | 6.12 | |||||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 8,297 | ||||||||||||||||||||||
| Permanent employees | 7,012 | ||||||||||||||||||||||
| Contractors | 1,285 | ||||||||||||||||||||||
(1)Refers to underground operations only.
(2)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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EXPLORATION REVIEW
Our greenfields exploration is focused on creating value by providing long-term optionality and improving the portfolio quality. The objectivesprogrammes are met by:
In 2022, the Silicon and Merlin prospects in Nevada were handed over to our Beatty project team, following which the greenfields exploration team refocused its efforts on the discovery of the next significant project to add to the AngloGold Ashanti portfolio.
Greenfields exploration
In 2022, $29 million was spent on greenfields exploration. Our greenfields exploration team was recognised by a leading industry research group, in 2015 as the industry’s most successful in Mineral Resource discovery. The team has a proven track record that includes the discovery of world-class ore bodies at La Colosa, Gramalote, Tropicana and Nuevo Chaquiro. These discoveries are attributed to our committed and professional team of geoscientists working on a portfoliotenements cover over 9,500km2 of highly prospective ground in six countries – Australia, Argentina, Brazil, Guinea, Tanzania, and rigorously prioritisedthe United States.
Americas
In the United States, following the handover of the Silicon discovery to the Beatty Project team in the first quarter of 2022, the greenfields ground holdings.
exploration function shifted its focus to seven, 100 percent-owned, earlier-stage greenfields projects located elsewhere in the Great Basin of Nevada. Work completed at these various projects included prospect mapping, surface sampling and geophysical surveys. Diamond drilling is planned for the Midnight Star and CR projects during 2023.In Brazil, 1,330 stream sediments, 1,200 soil samples and 1,060 rock chip samples were collected. From the SBB terrane in the state of Minas Gerais, four districts have been identified by stream sediment sampling. Infill sampling is in progress to define projects in these districts. At the WBC terrane, which is located in the state of Matto Grosso do Sul to the south-west of Minas Gerais, one project has been advanced and will be considered for drilling in 2023.
In Argentina, an option agreement was signed with Latin Metals for the Organullo project in Salta Province. Work completed since June 2022 included soil sampling, mapping, acquisition of various spectral data sets and community engagement. At the 100 percent-held El Cori project, four drilling targets were identified from surface exploration.
Africa
In Guinea, we received six reconnaissance permits for the Shira district in the Siguiri Basin of Guinea. Community engagement work has started and field exploration is scheduled for the first quarter of 2023.
In Tanzania, target generation activities continued.
Australia
In Australia, we carried out exploration work in the Laverton District and, in Queensland, greenfields exploration took place at the Chillagoe and Georgetown projects.
Brownfields exploration, which focuses
In the Beatty District, brownfields exploration continued at North Bullfrog, and successfully defined and expanded the Silicon and Merlin targets. Elsewhere across our operations, exploration continued, on delivering value through incremental additionsone hand to our Ore Reserve in existing mines as well as new discoveries in defined areas around existing operations. Brownfields exploration actively drivesadd confidence to the creation of valuemine plans by growing ourupgrading the Mineral Resource and Ore Reserve,on the other to search for new Mineral Resource with a high likelihood for conversion to Mineral Reserve.
In 2022, our major assets. The brownfields exploration programme is based on innovative geological modellingteams across the globe completed 799km of capital and mine planning358km of expensed drilling at a cost of $79 million and continual optimisation$67 million, respectively. The drilled metre achievement was ten percent below the 2022 budget of our asset portfolio.
1,281km with the gap closing each quarter after slow start ups at a few operations. Total expenditure of $146 million was 12 percent below budget.Africa
•Geita: The key area drilled was Geita Hill which is split into six blocks. The drilling was conducted from both surface and underground and was designed to upgrade the underground project and to prepare for mining. Other significant intercepts were drilled at Star and Comet underground at Cut 3 and Ridge 8, extending the potential of the underground complex at Star and Comet. Drilling at the Nyamulilima open pit expanded and further defined the mineralisation.
•Obuasi: Drilling at Block 8, Block 10 and Sansu continued to define the limits of mineralisation and prepare these areas for mining. Late in the year drilling started at Cote D’Or examining the potential to open a second mining area.
•Siguiri: The key exploration commencedactivities were at Kounkoun (Block 3) where infill and definition drilling continue as part of the Butcher Well and Lake Carey farm-in agreement with Saracen Mineral Holdings. The agreement gives AngloGold Ashanti earn-in rightsoverall assessment of Block 3 as a future mining area. Drilling to 340km2 of tenements on and along the western margin of Lake Carey in the Laverton district of Western Australia, including those hosting the historically-mined Butcher Well gold deposits. AngloGold Ashanti can earn up to 70 percent of the joint venture by spending A$15m within 48 months from start date to earn 51 percent and a further A$10m within 24 months thereafter to earn 70 percent. Work completed as part of the agreement in 2017 included 26.6km of reverse circulation and diamond drilling, 20.4km of aircore drilling and 3,897 ground gravity stations. The work focused on Butcher Well, where drilling returned several very encouraging intercepts. In addition, aircore drilling at the nearby Mt Minnie project returned several encouraging results over 3km of strike extent and follow up reverse circulation and diamond drilling confirmed these results.
•Kibali: Two notable drilling intercepts, at KalondwaMengu Hill Fikiri- Jumanne-Samena throughand Oere, were recorded during the year.
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Americas
•Cerro Vanguardia: Numerous veins were drilled and later in the year emphasis moved to Prospect 30 targets,the northwest of the property and onto the Condor ground.
•AGA Mineração, CdS: Drilling of underground opportunities at both CdS I and II delivered significant intercepts at Sangue De Boi, Mutuca, Rosalino, Pinta Bem and Pneu.
•AGA Mineração, Cuiabá: Drilling to support target generation and prioritisationextend the depth extents of future exploration works.Fonte Grande Sul below 21 level continued while at a shallower depth drilling to define the satellite ore bodies continued to deliver.
•Beatty: Definition and infill drilling continued at Silicon and Merlin in Nevada. Drilling at North Bullfrog started to deliver later in the year.
Australia
•Sunrise Dam: The key areas delivering significant intercepts were at Frankie and Vogue as part of programmes designed to define and extend mineralisation in these areas. As is typical of the airborne magneticSunrise Dam mineralisation, most drilling programmes drilled significant intercepts which reflect the nuggety nature of the mineralisation.
•Tropicana: Successful drilling was aimed at the three underground projects, namely, Boston Shaker, Havana and Tropicana.
While many of the significant economic intersections are for unmined underground opportunities, Nevada is delivering significant intersections that will most likely be excavated through open pit mining.
PROJECTS
Quebradona
Following the decision of Colombia’s national environmental agency (ANLA) in November 2021 to archive the Company’s environmental licence application for the Quebradona project, AngloGold Ashanti filed an appeal seeking to secure further details on the specific additional information required for ANLA to make a radiometric geophysical survey over portionsdecision on AngloGold Ashanti’s licence submission. On 29 April 2022, ANLA dismissed the appeal and confirmed its decision to archive the Company’s application. AngloGold Ashanti continues to review and analyse the additional information identified as part of Block 1ANLA’s decision. The objective is to prepare, submit and Block 2process a new environmental licence request for Quebradona following completion of a new environmental impact assessment.
Gramalote
Following completion of the feasibility study on the Gramalote gold project, a joint operation with B2Gold, both partners have determined that the Gramalote project does not meet their investment thresholds for development. The project continues to benefit from federal and the Saraya West licence were completed. Seven targets were identified across the Seguelen West area,local government support as well as an area northeastcontinuing support from local communities.
AngloGold Ashanti and B2Gold have completed a comprehensive review of the Foulata depositalternatives and potential extensions of the Saraya mineralisation within the Saraya West licence.
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4C. ORGANISATIONAL STRUCTURE
GROUP STRUCTURE
AngloGold Ashanti’s operations are divided into the following regions:
•Africa – operations in Vaal River, West Wits and surface operations;
•Americas –— operations in Argentina and Brazil.Brazil, and exploration projects in the United States and Colombia.
The above four regions also correspond to AngloGold Ashanti’s four business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020. In addition, a new segment, Projects has been introduced from the implementation of the new Operating Model (previously reported under the America’s segment). The Projects segment comprises all the major non-sustaining capital projects with the potential to be developed into operating entities.
Day-to-day management of the groupGroup is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item“Item 6: Directors, Senior Management and Employees”.
Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.
SUBSIDIARIES
AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item“Item 19: Exhibits – to Form 20-F—Exhibit 19.8 Principal subsidiariesList of AngloGold Ashanti Limited subsidiaries” for details.
On 16 March 2023, AngloGold Ashanti and operating entities”Gold Fields announced that they have agreed the key terms of a proposed joint venture in Ghana between Gold Fields' Tarkwa and AngloGold Ashanti's neighbouring Iduapriem Mines (the “Proposed Joint Venture”). There can be no certainty that the parties will enter into a definitive agreement with respect to the Proposed Joint Venture or about the timing, terms and conditions of any such definitive agreement. Implementation of the Proposed Joint Venture is subject to, among other matters, reaching agreement with the Government of Ghana regarding the Proposed Joint Venture, conclusion of confirmatory due diligence and securing all requisite regulatory approvals. For further information, refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.
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4D. PROPERTY, PLANTS AND EQUIPMENT
Locations of properties
Notes:
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc.("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling (which includes the Crown Block deposits of SNA, Secret Pass and Daisy) through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
The locations of AngloGold Ashanti’s properties are shown above. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent wholly-owned unless otherwise indicated.
Overview of mining properties and operations
The overview for details.each mining property is disclosed below and includes information on the following items:
•Location of the properties;
•For each material property, locality maps showing the location of such properties as well as infrastructure and licences;
•Type and amount of ownership interests;
•Identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•Stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.
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Please refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022” for the aggregate annual production for each of the Company's mining properties during each of the fiscal years ended 31 December 2022, 2021 and 2020. For more information about AngloGold Ashanti’s mines, including as toa summary of the company’sCompany’s titles, mining rights, leases and licences with acreage, please refer “Itemto “Item 4B: Business Overview—The regulatory environment enablingRegulatory Environment Enabling AngloGold Ashanti to mine”Mine”.
In its annual report on Form 20-F for the fiscal year ended 31 December 2021, AngloGold Ashanti complied for the first time with the new mining property disclosure requirements for mining registrants set forth in Subpart 1300 of Regulation S-K (17 CFR § 229.1300) (“Regulation S-K 1300”) and reported on, and filed Technical Report Summaries for, all of its mining properties. During 2022, AngloGold Ashanti developed a process to determine which properties are material to its business or financial condition for purposes of the individual property disclosure requirements of Item 1304 of Regulation S-K (17 CFR § 229.1304). The key considerations taken into account by AngloGold Ashanti in its materiality assessment include (i) certain quantitative factors such as contribution to the Mineral Resource and Mineral Reserve, actual and planned production and Net Present Value, as well as (ii) certain qualitative factors, which are assessed in the context of the Company’s overall business and financial condition. The materiality assessment covers all of the Company’s mining properties (regardless of the stage of the mining property) and all of its mining and related activities from exploration through extraction, and will be reviewed by the Company on an annual basis. Based on these considerations, AngloGold Ashanti has determined that its material properties for purposes of Regulation S-K 1300 are Geita, Kibali and Obuasi. With respect to Geita, an updated Technical Report Summary (effective date: 31 December 2022) has been prepared by the relevant Qualified Persons, and is filed as Exhibit 19.15.4 hereto. With respect to Kibali and Obuasi, AngloGold Ashanti has determined that (i) there are no material changes to the Mineral Reserve or Mineral Resource reported in the Technical Report Summaries for these properties (effective date: 31 December 2021) which were filed as exhibits to AngloGold Ashanti’s annual report on Form 20-F for the fiscal year ended 31 December 2021, and (ii) all material assumptions and information pertaining to the disclosure of the Mineral Resource and Mineral Reserve for Kibali and Obuasi remain current in all material respects as of 31 December 2022, based on all facts and circumstances, both quantitative and qualitative. As a result, the Technical Report Summaries for Kibali and Obuasi (effective date: 31 December 2021), which were initially filed as exhibits to AngloGold Ashanti’s annual report on Form 20-F for the fiscal year ended 31 December 2021, are filed as Exhibits 19.15.7 and 19.15.5, respectively, hereto.
AngloGold Ashanti’s operating mines are all accessible by road.road, although for some, personnel access is better achieved by air.
AngloGold Ashanti’s exploration programmes are based on consistent standards and processes across its portfolio and are guided by peer review. Part of AngloGold Ashanti's investment strategy is focused on exploration drilling and Mineral Reserve development to grow the Mineral Resource and by converting these, the Company allows for expansion of the Mineral Reserve. The South Africa operations comprise a numberprocess involves identifying the best group of deep level undergrounddrill targets and prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral Reserve at existing mines as well as surfacenew discoveries in defined areas around operations.
This annual report on Form 20-F is not being submitted in support of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at its brownfields operations is generally intended to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at the Company’s brownfields operations increases confidence in its Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a yearly basis are not material to that operation or the Company as a whole. In cases where the drilling projects are supporting a non-sustaining addition, these projects are commented on. In the Company’s major greenfields projects, if any single drill result is considered material and may change the reported Mineral Resource significantly then it is reported. Refer to “Item 4B: Business Overview—Exploration review”.
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AFRICA
AngloGold Ashanti has five mining operations within the Africa region:
•Kibali Gold Mine in the Democratic Republic of the Congo ("DRC"), a joint venture (“JV”) between AngloGold Ashanti (45%), Barrick Gold Corporation (“Barrick”) (following its merger with Randgold Resources Limited (“Randgold”)) (45%), and Société Minière de Kilo-Moto S.A. (“SOKIMO”), a state-owned gold mining company (10%);
•Iduapriem Gold Mine ("Iduapriem") and Obuasi Gold Mine ("Obuasi") in Ghana;
•Siguiri Gold Mine (“Siguiri”) in Guinea, co-owned by AngloGold Ashanti (85%) and the government of Guinea (15%); and
•Geita Gold Mine ("GGM" or "Geita") in Tanzania.
Mining is from both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.
DRC
KIBALI
For additional information, please refer to the Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto.
Property description
Kibali is a joint venture co-owned by AngloGold Ashanti (45%), Barrick (45%), and SOKIMO (10%). SOKIMO is wholly-owned by the DRC government. The consolidated lease is made up of ten exploitation permits. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach ("CIL"), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine, which comprises both open pit and underground operations.
Kibali is a gold mining, processing and exploration project. Operations currently focus on open pit and underground mining. The mine was originally developed and operated by Randgold. Following the completion of the merger of Randgold and Barrick in 2019, Barrick became the operator at Kibali for both exploration and mining. Kibali is currently a production stage property.
Location
Kibali is located in the northeastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located to the west of the lease area. Kibali is approximately 210km by road from Arua and immediately north of the district capital of Watsa. The operational area falls within the administrative territory of Watsa in Haut-Uélé province.
Mineralisation style
Gold deposits of the Kibali district are classified as Archaean orogenic gold deposits. At Kibali, the gold deposits are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”) and chert that were deformed, altered and transposed during several events. This occurred at or near greenschist metamorphic conditions. Ore-forming H2O-CO2-rich fluids migrated along a linked network of gently northeast-dipping shears and north-northeast plunging fold axes that are processing low grade stockpilescommonly referred to as the KZ Trend. The auriferous KZ Trend is a complexly deformed fault system specifically developed along the boundary between the younger sedimentary basin in the west of the belt that juxtaposes the older rocks to the east. Mineralisation occurred during the later stages of subsequent regional deformation which resulted in inversion of the basin and re-treating Tailings Storage Facilities. the development of reverse faults and folds. Ongoing deformation during hydrothermal activity resulted in the development of lodes in a variety of related structural settings within the KZ Trend.
History
On 15 October 2009, AngloGold Ashanti acquired a 50 percent indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70 percent stake in Kibali and the DRC parastatal SOKIMO holding the remaining 30 percent stake. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90 percent, while SOKIMO retained a 10 percent holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now held by the combined company, trading as Barrick.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.
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Mining method
The operation comprises both open pit and underground mining. Open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. From 2022 onwards, open pit production will come from the Sessenge, Aerodrome, Pamao, Gorumbwa, Megi-Marakeke-Sayi, Kalimva-Ikamva, Oere, Pakaka, and Karagba, Chauffeur and Durba (“KCD”) deposits. Open pit mining is conducted by contractor Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or conventional drill, blast, load and haul methods.
For the underground operation, longitudinal and transverse longitudinal stoping methods with paste backfill are the nominated mining methods. The Kibali KCD underground mine is designed to extract the KCD deposit directly beneath the KCD open pit. A 50m crown pillar separates the pit bottom from the top of the underground mine. The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. Stoping commenced in 2015 and ore production has ramped up to 3.8Mt in 2022. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system was commissioned. From 2018 onwards, underground ore has predominantly been hoisted up the shaft. The decline to surface will continue to be used to haul some of the shallower zones and to supplement shaft haulage.
Processing plants and other available facilities
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Access by air to Kibali involves a commercial flight to Entebbe in Uganda followed by a charter flight to Doko airport, situated on the mine property. The Doko airstrip was upgraded by Kibali and is equipped with runway lights and precision approach path indicator lights. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
Kibali is a large-scale gold mining operation, with a number of sources of ore, that has been in operation since 2013. The physical condition of the equipment, facilities, and infrastructure at Kibali is in good working order, with the mine investing heavily in maintaining and upgrading its assets to ensure that they remain reliable and efficient. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility ("TSF"), camp, airstrip, underground shaft, workshops and offices. Power to the mine is self-generated by a combination of hydroelectric and diesel generators. The underground mine has also been extensively developed, with the construction of both shaft and portal and strategically placed development drives that access and further explore the gold-bearing ore.
The “Property, Plant, and Equipment” as of 31 December 2022, including lease assets, buildings and mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping, had a carrying value of $983 million (reported as attributable; 45% owned by AngloGold Ashanti).
Mineral processing
The current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 730kozpa of gold for 10 years treating at least 7.2Mtpa throughput. The ore is blended using both KCD underground ore plus ore sourced from satellite open pits at Kibali.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the fiscal year ended 31 December 2017, it was comprised2022, based on a gold price estimate of Vaal River operations (Moab Khotsong$1,700/oz. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Kopanang), surface operationsUnderground)” for additional information on cut-off grades and West Wits operations (Mponeng)metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Measured | 7.22 | 3.18 | 22.97 | 0.74 | ||||||||||||
| Indicated | 22.15 | 2.64 | 58.44 | 1.88 | |||||||||||||
| Measured & Indicated | 29.37 | 2.77 | 81.41 | 2.62 | |||||||||||||
| Inferred | 13.16 | 2.61 | 34.43 | 1.11 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The Vaal River operations were sold subsequent to year end.
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reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Based on a gold price of $1,700/oz.
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Underground)” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Kibali | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.78 | 1.76 | 2.54 | 0.89 | ||||||||||
| Depletion | (0.01) | — | (0.01) | — | ||||||||||
| Exploration | 0.01 | — | 0.01 | 0.10 | ||||||||||
| Methodology | — | — | — | — | ||||||||||
| Price | 0.03 | 0.16 | 0.19 | 0.13 | ||||||||||
| Cost | (0.01) | (0.02) | (0.03) | (0.02) | ||||||||||
| Geotechnical | (0.07) | (0.02) | (0.09) | — | ||||||||||
| Metallurgical | — | 0.01 | 0.01 | 0.01 | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | — | — | — | ||||||||||
| Current Year | 0.74 | 1.88 | 2.62 | 1.11 | ||||||||||
| Net Difference | (0.04) | 0.12 | 0.08 | 0.22 | ||||||||||
| % Difference | (5) | 7 | 3 | 24 | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
Changes were driven both by exploration and an increase in the Mineral Resource gold price from $1,500/oz as at 31 December 2021 to $1,700/oz as at 31 December 2022, with gains seen from the open pits, specifically Ikamva, Oere and Gorumbwa, as well as from continued definition of the 11000 lode in the KCD underground. A maiden underground Inferred Mineral Resource at Gorumbwa was also reported.
Material Assumptions for the Mineral Resource
Key Parameters (Open Pit and Underground)
| Kibali | Unit | Open Pit | ||||||
| Costs | ||||||||
| Waste cost | $/tonne mined | 2.92-3.09(1) | ||||||
| Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | $/tonne mined | 1.27 | ||||||
| Grade Control cost | $/tonne mined | 0.75 | ||||||
| Dilution | % | 10 | ||||||
| Ore Loss | % | 3 | ||||||
| Processing cost | $/tonne milled | 15.04-17.85(1) | ||||||
| G&A | $/tonne milled | 8.47 | ||||||
| Other Parameters | ||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | ||||||
| Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) | ||||||
| Mineral Resource cut-off grade | g/t | 0.6-0.7(1) | ||||||
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| Kibali | Unit | Open Pit | ||||||
| Mineral Resource price | $/oz | 1,700 (2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. (1) Vary according to rock type. (2) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
| Kibali | Unit | Underground | ||||||
| Costs | ||||||||
| Mine Production | $/tonne ore mined | 36.17 | ||||||
| Capital | $/tonne ore mined | 3.97 | ||||||
| G&A | $/tonne ore milled | 8.47 | ||||||
| Processing cost | $/tonne ore milled | 17.85 | ||||||
| Other Parameters | ||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | ||||||
| Mining cut-off grade | g/t | 1.62 | ||||||
| Mineral Resource price | $/oz | 1,700 (1) | ||||||
| Metallurgical Recovery Factor | %MetRF | 90 | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
Mineral Resource estimation is undertaken by Barrick in-house technical experts or by approved external consultants. The results of both diamond drilling ("DD") and reverse circulation ("RC") drilling are used in South Africa.
Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The most fundamental controlopen pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.
Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold distributionMineral Reserve for Kibali at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,300/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Proven | 14.49 | 3.47 | 50.33 | 1.62 | ||||||||||||
| Probable | 29.17 | 3.15 | 91.86 | 2.95 | |||||||||||||
| Total | 43.67 | 3.26 | 142.19 | 4.57 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Basin remainsMineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the sedimentary features, suchQualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
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4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz).
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Kibali | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.74 | 2.59 | 4.33 | ||||||||
| Depletion | (0.28) | (0.12) | (0.40) | ||||||||
| Exploration | 0.11 | 0.42 | 0.53 | ||||||||
| Methodology | — | — | — | ||||||||
| Price | 0.03 | 0.12 | 0.15 | ||||||||
| Cost | (0.01) | (0.03) | (0.04) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | 0.03 | — | 0.03 | ||||||||
| Other | — | (0.03) | (0.03) | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.62 | 2.95 | 4.57 | ||||||||
| Net Difference | (0.12) | 0.36 | 0.24 | ||||||||
| % Difference | (7) | 14 | 6 | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
The increase in Mineral Reserve was primarily as facies variationsa result of the conversion of the 11000 lode in the KCD underground, and channel directions. growth in the Ikamva and Oere pits due to exploration successes. The gold price used for pit optimisation changed from $1,200/oz as at 31 December 2021 to $1,300/oz as at 31 December 2022 which also contributed to the increase seen.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Kibali | |||||||
| Primary Commodity Price | $/oz | 1,300(1)(6) | ||||||
| Cut-off grade | g/t | 1.50(3)(5); 1.96(4) | ||||||
| Stoping width | cm | 2990(4) | ||||||
| Dilution | % | 2.0-12.5(4); 10(5) | ||||||
| Mining Recovery Factor | MRF based on tonnes (%) | 91.6(4); 97(5) | ||||||
| Mine Call Factor | MCF (%) | 97 | ||||||
| Metallurgical Recovery Factor | MetRF (%) | 89-90(2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have, relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to rock type. (3) Stockpile. (4) Underground. (5) Open pit. (6) Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz). | ||||||||
Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for
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reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL") between the KCD open pit and underground mine.
A cut-off grade analysis of $1,300/oz was used to determine a cut-off grade of 1.96g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.
Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali feasibility study and have been updated as the project has developed.
Map showing Kibali planned infrastructure and licences
Below is a map that shows Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly-owned and operated by AngloGold Ashanti.
Obuasi is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s. Iduapriem is an open pit mine.
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Obuasi is located in the Ashanti region of southern Ghana, approximately 60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The ramp-up of the redevelopment project was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.
Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.
OBUASI
For additional information, refer to the Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto.
Property description
Obuasi is wholly-owned by AngloGold Ashanti and is a production stage property. All required mineral rights to the property are held by the Company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been operated by AngloGold Ashanti since 2004.
Location
The mine is in the municipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital, Accra, and 60km south of Kumasi.
Mineralisation style
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Lower Proterozoic volcanic and flysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold belts found in Ghana.
Gold generally occurs in native form oftenmineralisation is associated with pyriteshear zones and carbon,pervasive silica, carbonate and sulphide hydrothermal alteration which occur in tightly folded Lower Birimian schists, phyllites, meta-greywackes, and tuffs, along the eastern limb of the Kumasi anticlinorium. They are found near the contact with harder metamorphosed and metasomatically altered intermediate to basic upper Birimian volcanics. There are two broad styles of gold mineralisation including free milling quartz beingvein gold and sulphide-rich, disseminated and refractory gold which form alteration haloes around the main gangue mineral.quartz vein lodes. Sulphide mineralisation is dominated by arsenopyrite and quartz mineralisation, which is associated with spatially variable, but exceptionally high-grade visible gold in quartz veins.
Obuasi has a long mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. The company realised that significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.
In 2014, a feasibility study commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to the continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016, at which point the mine was placed under care and maintenance. However, the study continued and in 2017, a favourable feasibility study was completed and indicated a strong technical and economic case with an anticipated 20-year life of mine ("LOM"). In 2018, approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project.
The Vaalredevelopment project began in late 2018 and first gold was poured during the fourth quarter of 2019. Phase 1 of the redevelopment project was completed by the end of September 2020, and the mine began commercial production on 1 October 2020. Phase 2 of the redevelopment project, which focused on construction and mine development, was completed in 2021. Phase 3 of the redevelopment project is currently underway to develop the infrastructure necessary to support the planned ramp-up in production.
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Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.
Mining method
Obuasi is an underground operation, utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping ("LHOS") mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for orebodies of varying thicknesses and dips. The main distinct variations of the LHOS used at Obuasi are longitudinal retreat stoping (“LRS”), and transverse open stoping (“TOS”). The blind upper stoping is a form of LRS or TOS used for partial sill pillar recovery.
Processing plants and other available facilities
All significant surface activities, including ore processing, environmental management and community engagement are carried out by Obuasi staff. Existing infrastructure includes a recently refurbished and upgraded 2.2Mtpa processing plant with flotation and bacterial oxidation ("BIOX"), extensive underground development, hoisting shafts and associated infrastructure, mine ventilation and refrigeration facilities, emergency standby power and water reticulation, office complexes, workshops, and company housing estates. Power is supplied to the mine by the Volta River operations consistAuthority and Ghana Grid Company Limited (“GRIDCo”). There is a focus mine development plan supported by the existing infrastructure, and ongoing upgrades of Kopanang, Moab Khotsongcritical underground infrastructure to sustain the operations. The mine can be accessed by paved road network from Kumasi and by road or chartered air transport from the capital, Accra. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
The “Property, Plant, and Equipment” as of 31 December 2022, including buildings and mine infrastructure, mining assets, decommissioning assets and assets under construction, had a carrying value of $1,009 million.
Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also integrated with Knelson concentrators and inline leach reactors.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,750/oz for underground and $1,600 for open pit Mineral Resource. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Measured | 1.96 | 8.44 | 16.59 | 0.53 | ||||||||||||
| Indicated | 27.66 | 6.06 | 167.59 | 5.39 | |||||||||||||
| Measured & Indicated | 29.63 | 6.22 | 184.18 | 5.92 | |||||||||||||
| Inferred | 39.80 | 8.50 | 338.17 | 10.87 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
5.Open pit based on a gold price of $1,600/oz, underground based on a gold price of $1,750/oz.
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Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Obuasi | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.66 | 5.84 | 6.50 | 12.05 | ||||||||||
| Depletion | — | — | — | — | ||||||||||
| Exploration | — | — | — | (0.06) | ||||||||||
| Methodology | 0.02 | 0.28 | 0.30 | (0.53) | ||||||||||
| Price | 0.02 | 0.58 | 0.60 | 1.11 | ||||||||||
| Cost | (0.17) | (0.97) | (1.14) | (1.31) | ||||||||||
| Geotechnical | — | — | — | — | ||||||||||
| Metallurgical | — | — | — | — | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | (0.33) | (0.33) | (0.37) | ||||||||||
| Current Year | 0.53 | 5.39 | 5.92 | 10.87 | ||||||||||
| Net Difference | (0.12) | (0.45) | (0.57) | (1.17) | ||||||||||
| % Difference | (19) | (8) | (9) | (10) | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The decrease in Mineral Resource is mainly due to depletion attributed to mining from Sansu, and Blocks 8 and 10 and an increase in costs which resulted in higher cut-off grades as well as the surface operations.
Material Assumptions for the Mineral and Petroleum Resources Titles Office (MPRTO).Resource
West Gold Plant (1) | Noligwa Gold Plant (1) | Mispah Gold Plant (1) | Kopanang Gold Plant | ||||||||
| Gold plants | |||||||||||
| Capacity (000 tonnes/month) | 180 | 260 | 140 | 315 | |||||||
| Uranium plants | |||||||||||
| Capacity (000 tonnes/month) | — | 260 | — | — | |||||||
| Obuasi | Unit | Underground | ||||||
| Costs | ||||||||
| Mining cost | $/tonne mined | 64.26-79.44(1) | ||||||
| Processing cost | $/tonne treated | 42.57 | ||||||
| G&A | $/tonne treated | 21.96 | ||||||
| Other Parameters | ||||||||
| Royalties | % | 3.0 | ||||||
MSO(2) optimising cut-off | 3.43-3.75(1) | |||||||
| Mineral Resource cut-off grade | g/t | 3.43-3.75(1) | ||||||
| Mineral Resource price | $/oz | 1,600-1,750(3)(4) | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) Vary according to area. (2) Datamine Mineable Shape Optimiser ("MSO"). (3) Open pit based on a gold price of $1,600/oz, Underground based on a gold price of $1,750/oz. (4) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
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Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph D(1) of Item 1304 ofRegulation S-K, which summarises the gold Mineral Reserve for Obuasi at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,400/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Proven | 4.47 | 9.55 | 42.73 | 1.37 | ||||||||||||
| Probable | 21.25 | 9.26 | 196.67 | 6.32 | |||||||||||||
| Total | 25.72 | 9.31 | 239.40 | 7.70 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Hard Rock Surface Sources includesMineral Reserve estimates with respect to our material properties have been prepared by the rail transport infrastructure,Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Vaal RiverMineral Reserve at the end of the last completed fiscal year and West Wits Laboratoriesthe preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and tailings management facilities.that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
4.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Obuasi | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.19 | 7.08 | 8.26 | ||||||||
| Depletion | (0.23) | — | (0.23) | ||||||||
| Exploration | — | (0.77) | (0.77) | ||||||||
| Methodology | 0.54 | — | 0.54 | ||||||||
| Price | 0.11 | 1.49 | 1.60 | ||||||||
| Cost | (0.23) | (1.48) | (1.71) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | — | — | — | ||||||||
| Other | — | — | — | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.37 | 6.32 | 7.70 | ||||||||
| Net Difference | 0.19 | (0.75) | (0.57) | ||||||||
| % Difference | 16 | (11) | (7) | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The tailings dams consistkey changes were primarily associated with depletion, exploration, block model changes, and economic parameters. Depletion was mainly due to mining, while exploration changes were as a result of tailings materialMineral Resource drilling. This was offset by changes in the block model methodology involving estimation parameters, interpretations, classification and density. The economic factors that also influenced the changes to the Obuasi Mineral Reserve included an increased gold price assumption which originatedwas partially offset by an increase in mining cost and sustaining capital.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Obuasi | |||||||
| Primary Commodity Price | $/oz | 1400(1) | ||||||
| Cut-off grade | g/t | 4.29-4.69(2) | ||||||
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| as at 31 December 2022 | Obuasi | |||||||
| Dilution | % | 12-17(2) | ||||||
| Mining Recovery Factor | %MRF based on tonnes | 95-98(2) | ||||||
| Mining Recovery Factor | %MRF based on g/t | 100 | ||||||
| Mine Call Factor | %MCF | 100 | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to area. | ||||||||
Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM ("EPS") software.
The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,400/oz was used. The cut-off grade also considers the metallurgical recovery factor (87 percent applied for all blocks), mining dilution and recovery, tonne-kilometre haulage cost from all blocks, as well as the backfill type.
Stopes are designed using the Datamine Mineable Shape Optimiser ("MSO") Software where the outputs are further optimised by manual edits. The stope shapes are generated at section intervals of 15m to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Mineral Reserve is reported from the processingLOM plan and only includes Measured and Indicated Mineral Resource.
Map showing Obuasi planned infrastructure and licences
Below is a map that shows the location, infrastructure and mining licence area for Obuasi. The coordinates of the undergroundmine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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IDUAPRIEM
Property description
Iduapriem mine is wholly-owned and operated by AngloGold Ashanti and a production stage property. The mine is a multiple open pit operation that currently sources ore from the Vaal River Operations (VR Surface), the West Wits Operations (WW Surface)Block 3W, Block 5, Ajopa, and Buffels, HartebeestfonteinBlocks 7 and Stilfontein Gold Mines (MWS).8 pits.
Location
The gold mines are deep-level gold mines, which predominantly extract the tabular, conglomeratic VR, Carbon Leader Reef (CLR) and Ventersdorp Contract Reef (VCR). The VR, CLR and VCR have been predominantly mined for gold in the past although the reef also contains uranium oxide. The material contained in the tailings damsmine is fine in nature. The footprints of the MWS tailings dams and Vaal River Surface Operations tailings dams cover an area of approximately 1,100ha.
| Mponeng Gold Plant | Savuka Gold Plant | ||||
| Capacity (000 tonnes/month) | 160 | 280 | |||
| Obuasi | Iduapriem | |||||||
Sulphide Treatment Plant | Alternate Ore Treatment Plant | Iduapriem Plant | ||||||
| Capacity (000 tonnes/month) | 180 | 90 | 418 | |||||
The Iduapriem mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and Teberebie propertiesto the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).
Mineralisation style
There are located alongfour recognised conglomerate reefs namely A, B, C and D, which are equivalent to the southern endTarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs, respectively. The B and C Reefs are oligomictic and consist of well-sorted conglomerates and have been mined underground in some areas more than a century ago. The A and D Reefs have a lower gold tenor and are polymictic, containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the Tarkwa basin. The mineralisation is contained in the Banket Seriessize and amount (packing) of quartz pebble conglomerates, breccia conglomerates and metasedimentspebbles present within the Tarkwaian System of Proterozoic age. The outcropping Banket Series of rocks in the mine area form prominent, arcuate ridges extending southwards from Tarkwa, westwards through Iduapriem and northwards towards Teberebie.a conglomeratic unit. The gold is hosted within the conglomerates.fine-grained, particulate and free-milling.
Processing plants and other available facilities
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant next to the main office building, a TSF and four camp areas for contractors and company employees. Tarkwa town is currently in a care and maintenance phase and finalising a feasibility studyalso adjacent to restart operations, it is located in the Ashanti Region of Ghana, some 320 kilometres north-west of the capital Accra and approximately 60 kilometres south of Kumasi. Mining operations are primarily underground, to a depth of 1.5 kilometres. Obuasi originally opened in 1897.
tenement. Power is supplied to the minesmine by the Volta River Authority and the transmission is done by the GridCo Company.GRIDCo.
The gold deposits at Obuasi are partcurrent processing plant treats free-milling material from open pit mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a prominent gold beltMetso Superior MKIII primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogenous grinding mills ("SAG mills") and two ball mills which run in two parallel circuits,each with a SAG mill and a ball mill. The second ball mill, a new thickener, a cluster of Proterozoic (Birimian) volcano-sedimentarycyclones and igneous formations which extenda Knelson concentrator were commissioned in March 2009. In July 2017, three of the four leach tanks were converted into CIL tanks by introducing carbon into the each of the tanks with the installation of inter-tank screens and carbon recovery screens. Carbon for a distanceelution is harvested from one of approximately 300 kilometres in a north-east/south-west trend in south‑western Ghana. Obuasi mineralisation is shear-zone related and there are three main structural trends hosting gold mineralisation: the Obuasi trend,leach tanks to the Gyabunsu trendacid wash column, and the Binsere trend.
In Australia, with a multiple open-pitfew exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories. Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.
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Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) (the “ACH Act”) which was enacted in 2021. The regulations, management code and various guidelines which underpin the ACH Act are being co-designed by the State government, traditional owners, industry and other stakeholders. The ACH Act will not become fully operational until the co-design process is complete in mid-2023 at the earliest. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation and, at this stage, it is not possible to predict any significant impact that may result in the future from the final regulations, management code and various guidelines under the ACH Act, once adopted.
AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.
It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.
Tax laws relating to mining
Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.
Environmental laws relating to mining
Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. In Western Australia, legislation removing the distinction between “works approvals” and “licenses” is expected to enter into force in December 2023 such that, following the effective date, only a “license” will be required for “prescribed activities”, which include relevant works and operations on a mining lease, and not a separate “works approval”. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.
AngloGold Ashanti’s rights and permits
AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the Group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.
At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.
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At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.
AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 15 exploration permits covering 316,851 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.
AMERICAS
Argentina
General laws relating to mining and land ownership
Mining regime
The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.
The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which openedholds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in 1997,the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.
Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.
In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a three percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.
Glacier Law
On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.
Rural Land Law
On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than 15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this
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new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.
Federal Mining Agreement
On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.
In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.
Foreign exchange and export rules
Foreign exchange controls
On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by the Consolidated Text on “Foreign Trade and Exchange” issued by the Argentinean Central Bank (as amended from time to time) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances.
In October 2022, the Argentinean national government implemented the Argentinean System of Imports (Sistema de Importaciones de la República Argentina) (“SIRA”) and the Argentinean System of Imports and Foreign Payments of Services (Sistema de Importaciones de la República Argentina y Pagos de Servicios al Exterior). Importers must obtain a SIRA approval in the form of a SIRA certificate for the import of goods and to access the foreign exchange market for payments in connection with the import of goods. Additionally, from 1 January 2023, Argentinean residents, such as CVSA, must comply with certain supplementary provisions in order to access the foreign exchange market without prior approval of the Argentinean Central Bank, unless an exception applies.
CVSA had a cash balance equivalent to $116 million at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $105 million (equivalent) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the Argentinean Central Bank approved, based on the applications submitted under this special regime, the payment of $17 million (equivalent) to AngloGold Ashanti. As a result, during 2022, AngloGold Ashanti received offshore dividends from CVSA in a total amount of $17 million (net of withholding taxes) paid in U.S. dollars. While the remaining approvals are pending, the cash remains fully available for CVSA’s operational and exploration requirements.
Export duties
On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed eight percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of eight percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.
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On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2019 Procedure”). CVSA initiated the 2019 Procedure to claim compensation for the export duties it paid in 2018, 2019 and 2020 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.
Pursuant to the 2019 Procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $2.0 million and $6.3 million, respectively, as of 31 December 2022. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $12.4 million as of 31 December 2022. The National Mining Secretary has not yet issued an opinion regarding this claim.
Furthermore, CVSA has requested the tax authorities to apply the 2019 Procedure in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $3.1 million as of 31 December 2022, are still being reviewed under the rules to challenge export duties instead of the 2019 Procedure. CVSA has appealed the application of those rules and a decision on this issue is pending.
On 9 June 2022, the Argentinean tax and mining authorities published a resolution (RC 5205/2022) establishing a new administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2022 Procedure”). This 2022 Procedure replaces the 2019 Procedure established by RC 4428/2019. On 20 September 2022, CVSA submitted its claim for compensation for the export duties in respect of fiscal year 2021, which amounted to approximately $11.2 million as of 31 December 2022, pursuant to the 2022 Procedure. This claim is currently under review by the National Mining Secretary.
In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million as of 31 December 2022.
Environmental laws relating to mining
Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, obligations to restore the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.
AngloGold Ashanti’s rights and permits
The mining concession holder of Cerro Vanguardia, the Company’s operation in Argentina, is AngloGold Ashanti’s sole operationpartner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.
Brazil
General laws relating to mining and land ownership
The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.
In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.
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Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.
Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration authorisations issued by the ANM are valid for one to four years. One extension can be obtained automatically as long as it is justified. For more than one extension, the extension request will have to satisfy specific legal requirements. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by the ANM, and (iii) refrain from suspending mining activities without prior notice to the ANM.
Tax laws relating to mining
During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.
At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes was upheld by the Supreme Court of Brazil on 1 August 2022.
Environmental laws relating to mining
Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the Republicstate of Guinea.Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.
At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.
Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. On 26 May 2022, the ANM issued a technical note allowing the extension until 2025. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the districtself-rescue zone of Siguiri.those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.
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As of 31 December 2022, AngloGold Ashanti has fully transitioned to dry-stacking operations for tailings storage at each location in Brazil. Capital expenditures required in 2022 to implement this new technology amounted to approximately $83 million. Capital expenditures for work required to comply with TSF-related requirements during the period 2023-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be less than in prior years and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).
At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contains the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.
In addition, ANM Resolution No. 95/22, which became effective on 22 February 2022, effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19, and establishes new criteria for the operational management of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the geotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to embargos at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. Construction at the Calcinados TSF is expected to begin later in 2023, and the timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
On 1 December 2022, the ANM published ANM Resolution No. 122/22, which relates to administrative sanctions for non-compliance with mining and dam safety regulations and which, in addition to significantly increasing the values of applicable fines and penalties, establishes procedures and parameters for available sanctions including seizures of ore, goods and equipment, suspension of mining activities, demolition of mine infrastructure and invalidation or cancellation of title and exploration licences.
Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams are expected to be adopted in 2023.
AngloGold Ashanti’s rights and permits
At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.
At Serra Grande, the Company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.
All of the Company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.
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Colombia
General laws relating to mining and land ownership
General regime
The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.
The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.
With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.
Concession contract
As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.
Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or these timelines are extended or modified. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.
PINES programme
In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).
Tax laws relating to mining
From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.
Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a five percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of four percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.
Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest one percent of the project’s value to benefit the basins covered by the environmental licence.
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Environmental laws relating to mining
In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.
In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.
Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance. Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 1987/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.
AngloGold Ashanti’s rights and permits
The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The most recent one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on 22 June 2023. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.
Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its seventh year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the process of preparing a new Environmental Impact Assessment for the Quebradona project to submit to ANLA in connection with its environmental licence application.
The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract
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No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044 and an exploration concession No. QHQ-16081 (which covers a total area of 9.78 hectares) which expires in 2052. Following the completion of the feasibility study in the second half of 2022, AngloGold Ashanti and B2Gold determined that the Gramalote project does not meet their investment thresholds for development. Following a comprehensive review of the alternatives relating to the project, both joint operation parties commenced a joint sales process for the Gramalote project, which is currently ongoing.
United States of America (Nevada)
General laws relating to mining and land ownership
General regime
Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”), as well as relevant state statutes and regulations. The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.
Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of five acres or less on federal land, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.
The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling.
Potential regulatory changes
Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines, and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.
There are a number of bills being proposed to the Nevada state legislature during the 2023 legislative session that could impact the company’s planned operations. These include proposed legislation that would alter the way water rights are administered by the state, as well as a bill that would, if enacted, impose additional requirements for environmental review of mineral development projects in Nevada. At this stage, it is not possible to evaluate whether these bills will be enacted in any form by the Nevada state legislature or, if passed, what impact any might have on AGA.
AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.
AngloGold Ashanti’s rights and permits
In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. The Silicon project consists of approximately 950 unpatented mining claims. The North Bullfrog project consists of 45 patented and approximately 1,600 unpatented mining claims (covering approximately 32,000 acres) situated in the Bullfrog mining district. There are also nine mining leases within the North Bullfrog project the majority of which continue in perpetuity so long as the company meets certain minimal requirements for use of the land. One mining lease is scheduled to expire in 2031. The Mother
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Lode project consists of 13 unpatented mining claims. The North Bullfrog and Mother Lode projects are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The southern claim block, encompassing the Sterling mine and other properties in the same general area, consists of approximately 1,900 unpatented claims (covering approximately 35,000 acres), which are now controlled by the company as a result of its acquisition of all of the outstanding stock of Coeur Sterling, Inc. (a subsidiary of Coeur Mining, Inc.), which closed on 4 November 2022. As a result of this acquisition, the company now controls a past-producing mine site in southern Nevada known as the Sterling mine, which has one applicable mining lease that expires in 2029, with the option to extend the lease for an additional ten-year period. Although the Sterling mine is located approximately 520 kilometres north-northeast of Conakry, 25 kilometres northwestcurrently in care and maintenance status, it remains subject to complex permitting and regulatory requirements, including compliance with relevant provisions of the townU.S. Federal Mine Safety and Health Act of Siguiri1977 and 190 kilometres southeastoversight by the U.S. Department of Labor’s Mine Safety and Health Administration (“MSHA”).
MINE SITE REHABILITATION AND CLOSURE
Closure, an integral part of operations
All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for site closure and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the Malian capital Bamako, near the Mali boarder. Conventional mining activities are performed by contractors in multiple open pits using conventional techniques. On surface, Siguiri’s gold processing plant treats about 981,000 tonnes per month. Powerplacement of adequate financial provisions and assurances to the mine is self-generated.cover these costs.
AngloGold Ashanti holdsintegrates mine closure planning throughout the mine life cycle as follows:
•Exploration stage: developing a plan and programme for cessation and closure of exploration activities in a manner that meets local laws and AngloGold Ashanti's mine closure planning standard.
•Project phase: developing conceptual closure plans and cost estimates for all projects and including them in project feasibility studies, designs and evaluations.
•Operational phase: developing and periodically updating mine closure plans and cost estimates with increasing levels of detail and confidence over the operational phase as part of the business planning process. Closure plan updates take into account operational conditions, planning and regulatory requirements as well as advances in technology and international industry good practice (e.g., the ICMM Integrated Mine Closure Good Practice Guide). Concurrent rehabilitation, which is carried out while a mine is still operational, is a good practice that serves to decrease the final rehabilitation and closure work as well as the ultimate liability.
•Closure period: implementing the final closure plan starting at cessation of operations through a period of decommissioning, dismantling and rehabilitation until the point in time where management of the site is largely limited to monitoring and maintenance.
The Company’s group mine closure planning standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Each mine closure plan includes a social transition plan which seeks to minimise social impacts and maximise opportunities for local communities, including human resource, social infrastructure, economic and financial assets with the aim of enhancing the self-sustainability of mine communities after mine closure.
Provisions for decommissioning and restoration costs are made when there is a present obligation, it is probable that expenditure on decommissioning and restoration work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.
Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures) decreased by $95 million from $673 million in 2021 to $578 million in 2022. This decrease was mainly due to changes in estimates resulting from changes in discount rates, changes in global economic assumptions, changes in mine plans resulting in a change in cash flows as well as changes in the design of TSFs.
SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
AngloGold Ashanti’s sustainability approach is fundamental to how the Company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the Company’s business and operations at all levels through various frameworks, standards and policies, and the Company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.
In mitigating the risks and impacts that are an 85inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and
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the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).
AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the Company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the Company’s general managers in the day-to-day implementation of its sustainability strategy.
AngloGold Ashanti maintains a set of policies and procedures to guide the Company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2022, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate, manage and monitor sustainability activities with respect to its broader business. This common management and reporting application for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.
Significant EHS requirements and ESG risks and trends affecting the Company’s mining and processing operations are described below.
EHS Regulatory Compliance
AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the Company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); mine and dam safety, regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the Company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.
Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend facilities, such as TSFs, or operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the Company’s properties which may have been caused by previous owners or operators.
Water Management
AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the Company’s operations, including with respect to the Company’s mining operations in Ghana and Brazil, its mine development projects in Nevada, as well as its mine development project at Quebradona in Colombia. Any failure by the Company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the Company to comply with water contamination related directives may result in further, more stringent, directives being issued against the Company, which may, in some cases, result in a temporary or partial shutdown of some of the Company’s operations.
Where feasible, the Company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.
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Waste Management
During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.
The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the Company therefore monitors such facilities closely in accordance with the Company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. A safety or environmental incident at the Company’s operations could result, among other things, in enforcement, including mandatory shutdown of a TSF and related facilities, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.
For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For example, in late 2022, tailings deposition was suspended at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (“DCO”) and/or geotechnical stability (“DCE”) consistent with new regulatory standards enacted in early 2022. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. The timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025, and the costs related to meeting such standard are not expected to be material to AngloGold Ashanti.
In addition, AngloGold Ashanti could incur liabilities, or material costs to manage solid and hazardous waste generated by its mining activities, including dust and residual chemicals and metals. For example, AngloGold Ashanti expects to incur approximately $25 million to $30 million in capital expenditure and operating costs during 2023-2026 in connection with treatment and disposal of a quantity of legacy arsenic trioxide waste located at the Obuasi mine.
Groundwater Impacts and Environmental Remediation
As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the Company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination, including in Tanzania, where an in-situ remediation project to address sulfate in groundwater commenced operations in 2022.
Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.
Climate Change and GHG Regulation
At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the Company’s strategic and operational planning processes.
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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050. AngloGold Ashanti has also committed to achieving a 30 percent reduction in absolute Scope 1 and 2 emissions by 2030 (as compared to a 2021 baseline), and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.
In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.
New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the Company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through nation state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.
For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduce GHG emissions by 43 percent by 2030 compared to 2005 levels.
In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered GHG emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, the Australian mining operations will be required to apply production-adjusted baselines and, if actual emissions exceed the baseline, to purchase emissions offsets for the business. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are not expected to be material to the Company’s business.
In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the Company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These physical climate risks will be further reviewed and refined in 2023.
Occupational Safety and Health
AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the Company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents and introduce corrective measures at those operations.
Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the Company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. AngloGold Ashanti has made significant strides in improving safety. In 2022, there was a 41 percent reduction in year-on-year total recordable injury frequency rate, and no fatalities at any of the mines operated by AngloGold Ashanti.
AngloGold Ashanti’s Group Safety Strategy, which is updated every three years, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES
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Committee oversees the implementation of the Group Safety Strategy. All operations, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series.
Community Health and Tropical Diseases
AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the Company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the Company’s Africa region and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The Company continues to expand preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.
In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the Company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Statement of Compliance—Significant Accounting Judgements and Estimates—Provision for silicosis”.
In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.
Malaria and other tropical diseases also pose health risks at all of the Company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected Company operations in Africa have malaria control programmes in place. The Ghana Obuasi malaria control programme activities have been completed in 16 districts of Ghana as planned for 2022 and a new cycle of indoor residual spraying will commence in 2023; in partnership with the Global Fund and the Ghana Department of Health.
In 2022, the COVID-19 pandemic subsided significantly with decreases in reporting of severe disease or deaths. Nevertheless, AngloGold Ashanti continued to direct resources for close surveillance and maintenance of controls within the company with a view to ensure continuity of its operations and avoid any potential disruption in the event of a re-emergence of the pandemic. Universal access to safe and effective vaccines provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to continue to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills.
The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic, particularly after the company’s experience with Ebola in Guinea in 2014 and 2015.
The company focused on optimising mental wellbeing, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which it operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently approved the newly updated health, hygiene and wellbeing standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.
Diversity and Inclusion (“D&I”)
With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term sustainability of its business. In addition, the Company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.
AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The Company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2022, AngloGold Ashanti conducted an analysis of global gender data across job level, function and country. The analysis was carried out to inform AngloGold Ashanti’s D&I strategy.
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Human Rights and Indigenous Peoples
In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the Company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.
The Company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.
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ANGLOGOLD ASHANTI GLOBAL FOOTPRINT: 2022
Operations and projects
Notes
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc. ("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
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OPERATING PERFORMANCE
Group description
AngloGold Ashanti is an independent global gold mining company with a diverse high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.
In 2022, our portfolio of ten operations in seven countries includes long-life operating assets with differing ore body types located in key gold-producing regions around the world. These operating assets were supported by greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.
Our operations and projects are grouped into the following regions: Africa, Americas and Australia.
On 12 February 2020, the Company announced that it had reached an agreement with Harmony to sell all its remaining South African producing assets and related liabilities. The sale closed on 30 September 2020. On 10 November 2020, the Company announced that it had completed the sale of its interest in Siguirithe Morila mine in Mali and on 30 December 2020, the balanceCompany announced that it had completed the sale of 15 percent is held byits interest in the government of Guinea.Sadiola Mine in Mali.
Performance
In 2022, AngloGold Ashanti produced attributable 2.742 million ounces of gold deposits which occur(2021: 2.472 million ounces), as well as 3.2 million ounces of silver and 352 tonnes of sulphuric acid as by-products.
Production of 2.742 million ounces of gold was achieved in 2022 at a cost of sales of $3.4 billion for subsidiaries and $342 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,439 per ounce for subsidiaries and $979 per ounce for equity-accounted joint venture operations, compared to a production of 2.472 million ounces in 2021 at a cost of sales of $2.9 billion for subsidiaries and $350 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,441 per ounce for subsidiaries and $856 per ounce for equity-accounted joint venture operations.
Gold
The AngloGold Ashanti gold Mineral Reserve increased from 28.1 million ounces as at 31 December 2021 to 28.8 million ounces as at 31 December 2022. This excludes Gramalote as the Siguiri basinJV partner has decided not to publish the Mineral Reserve. This annual net increase of 0.7 million ounces includes additions due to exploration and are mined are:modelling changes of 2.9 million ounces and changes in economic assumptions of 1.0 million ounces. This increase was partially offset by depletion of 2.9 million ounces and reductions due to other factors of 0.3 million ounces. The Mineral Reserve was estimated using a gold price of $1,400 per ounce, unless otherwise stated (2021: $1,200 per ounce). See “Item 4D Property, Plants and Equipment—Mineral Resource and Mineral Reserve”.
Copper
The AngloGold Ashanti copper Mineral Reserveremained unchanged at 1.47Mt (3,250Mlb) as surficial aprons of colluvium orat 31 December 2022 as palaeo‑channels of alluvial lateritic gravel adjacent to, and immediately above in-situ deposits; and
Capital expenditure, including equity-accounted joint ventures, in 2022 amounted to consider the exploitation$1,118 million (2021: $1,100 million).
Safety
No fatal occupational safety incidents at any of the fresh rock materialmines operated by the Company were recorded for 2022. The TRIFR was completed1.26 per million hours worked in December 2015. 2022 compared to 2.14 per million hours worked in 2021.
Full Asset Potential Review Programme
The project will upgradeFull Asset Potential (“FP”) programme aims to achieve a step-change in AngloGold Ashanti’s operating and cost performance by the current plant and enable processingyear 2024. This programme includes a comprehensive three-month assessment of a combination of oxides and fresh rock material. The plant throughput will remain at 12Mtpa with a flexible design allowing up to 6Mtpa fresh rock to be processed. Targeted fresh rock pits include Kami, Bidini, Tubani, Sintroko, Seguelen and Sokuno. The feasibility study has been approved by AngloGold Ashanti, AGA has concluded successful negotiations with the Government of Guineaeach of the Convention de BaseCompany’s mine sites, which covers every aspect of an operation. The outcome is intended to enhance the Company’s understanding of the relative potential of each asset and accessincludes developing a plan and implementation schedule to achieve the required areas hastargeted performance over the next six to 24 months. These assessments have now been received. The projectcompleted at six operations of the Company (Sunrise Dam, Siguiri, Cuiabá, Tropicana, Serra Grande and Geita), where the relevant site leadership teams have taken full accountability for the delivery on these initiatives.
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Operational Excellence
Operational Excellence is currently under constructionthe continued efforts to maximise value from our assets.
New Operating Model
Our new Operating Model, designed and expectedintroduced to commissionemployees towards the end of 2018.
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AFRICA REGION
| |||||
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Subsidiary operations | |||||||||||
| Ghana | |||||||||||
| Iduapriem | 248 | 2,186 | |||||||||
| Obuasi | 250 | 4,403 | |||||||||
| Guinea | |||||||||||
| Attr. Siguiri 85% | 279 | 4,052 | |||||||||
| Tanzania | |||||||||||
| Geita | 521 | 6,435 | |||||||||
| Joint venture operations | |||||||||||
| Democratic Republic of the Congo | |||||||||||
| Attr. Kibali 45% | 337 | 2,731 | |||||||||
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Africa Region - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Restated | |||||||||||||||||||||||
| Subsidiary operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 21.6 | 21.2 | 20.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.044 | 0.035 | 0.034 | |||||||||||||||||||
| g/t | 1.516 | 1.193 | 1.160 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.054 | 0.045 | 0.052 | |||||||||||||||||||
| g/t | 1.86 | 1.54 | 1.77 | ||||||||||||||||||||
Gold production (a) (attributable) | 000oz | 1,298 | 1,054 | 1,239 | |||||||||||||||||||
| Cost of sales | $m | 1,662 | 1,300 | 1,362 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,023 | 991 | 841 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,291 | 1,264 | 1,002 | |||||||||||||||||||
| Capital expenditure | $m | 486 | 434 | 383 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 2 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 0.33 | 0.61 | 0.55 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 17,076 | 14,806 | 14,496 | ||||||||||||||||||||
| Permanent employees | 5,780 | 5,619 | 5,433 | ||||||||||||||||||||
| Contractors | 11,296 | 9,187 | 9,063 | ||||||||||||||||||||
(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Joint venture operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 3.5 | 3.5 | 3.4 | |||||||||||||||||||
| Pay limit | oz/t | 0.054 | 0.048 | 0.048 | |||||||||||||||||||
| g/t | 1.850 | 1.652 | 1.640 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.087 | 0.095 | 0.096 | |||||||||||||||||||
| g/t | 2.98 | 3.25 | 3.29 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 337 | 365 | 364 | |||||||||||||||||||
| Cost of sales | $m | 342 | 350 | 340 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 725 | 647 | 629 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 979 | 856 | 810 | |||||||||||||||||||
| Capital expenditure | $m | 90 | 72 | 52 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 2,731 | 2,454 | 2,333 | ||||||||||||||||||||
| Permanent employees | 957 | 860 | 824 | ||||||||||||||||||||
| Contractors | 1,774 | 1,594 | 1,509 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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Performance summary
Production for the Africa region was up 15 percent stakefor the year ended 31 December 2022 at 1.635 million ounces compared to 1.419 million ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities at any of the mines operated by the Company and a TRIFR of 0.33 per million hours worked was recorded (2021: 0.61 per million hours worked).
Regional community investment totalled $10.19 million (2021: $10.5 million).
With Obuasi having received its ISO 45001 (health and safety) certification, all our Africa operations are now certified in Morila,terms of ISO 45001, ISO 14001 (environmental management) and the International Cyanide Management Code.
We continued integration of the new Operating Model, the existing Operational Excellence programme, and the Full Asset Potential (FP) review programme launched during 2021.
In the second half of 2022, Geita was part of the FP review programme designed to enhance understanding of the relative potential of each asset and includes developing a plan and implementation schedule to achieve the targeted performance over the next six to 24 months.
Siguiri was the first of the African operations to be involved in the FP review programme with the leadership team focusing on increasing the volume of high-grade oxide ore from Block 2. This increase was successful and is reflected in the year-on-year increase in production. We are starting to see the benefits of the FP review programme at Siguiri and a second contractor was hired to deliver higher volumes of higher-grade oxide ore from Block 2.
For more information regarding production performance in the Africa region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Africa region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”
For more information regarding capital expenditure in the Africa region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”
Obuasi update
Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as does Randgold Resources Limited (which manageswell as to service the mine). The statemine in deeper production areas, continues to progress.
In 2022, the project achieved the following milestones: hoisting via the KMS rock shaft in November 2022; pumping to drop the water level below 50 level; commissioning of Mali owns the remaining 20 percent.material handling system from 44 level to surface; completing the new ventilation shaft pilot hole and progressing the KMS shaft down to 44 level.
The MorilaObuasi mine has operated since 2001continues on the ramp-up path to its full production run-rate in excess of 400,000 ounces.
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THE AMERICAS
| ||
The Americas hosts three of our operations – one in Argentina and is situated 280 kilometres southeasttwo in Brazil – as well as greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
1. Argentina | |||||||||||
| Cerro Vanguardia (Attr. 92.5%) | 170 | 1,819 | |||||||||
2. Brazil | |||||||||||
| AGA Mineração | 311 | 5,702 | |||||||||
| Serra Grande | 88 | 1,977 | |||||||||
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Americas - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 7.1 | 7.8 | 7.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.10 | 0.10 | 0.07 | |||||||||||||||||||
| g/t | 3.52 | 3.49 | 2.46 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.070 | 0.066 | 0.081 | |||||||||||||||||||
| g/t | 2.40 | 2.27 | 2.77 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 569 | 559 | 649 | |||||||||||||||||||
| Silver production (attributable) | Moz | 3.2 | 3.4 | 3.3 | |||||||||||||||||||
| Cost of sales | $m | 913 | 822 | 764 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,078 | 921 | 721 | |||||||||||||||||||
All-in sustaining costs per ounce (1) | $/oz | 1,718 | 1,587 | 1,003 | |||||||||||||||||||
Capital expenditure (2) | $m | 339 | 398 | 216 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 2.33 | 3.55 | 3.68 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 9,498 | 9,972 | 8,789 | ||||||||||||||||||||
| Permanent employees | 6,093 | 6,452 | 6,158 | ||||||||||||||||||||
| Contractors | 3,405 | 3,520 | 2,631 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
(2)100 percent (not attributable) and includes Projects.
Performance summary
Production for the capitalAmericas region was up two percent for the year ended 31 December 2022 at 569,000 ounces compared to 559,000 ounces for the year ended 31 December 2021.
Safety – no occupational fatalities and the TRIFR improved to 2.33 per million hours worked (2021: 3.55 per million hours worked).
Community investment amounted to $6.4 million (2021: $5.8 million).
All operations in the Americas maintained their certification in terms of Mali. When mining concluded in 2009 withInternational Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
During the depletionsecond half of 2022, Cuiabá and Serra Grande completed assessments to identify performance improvement initiatives as part of the orebody, operationsFP review programme. The FP programme initiatives implemented at Morila transitioned to stockpileCuiabá have seen ore tonnes consistently above full potential target. At Serra Grande, the FP team identified several enhancement opportunities and it is following implementation plans with timelines for delivery.
In December 2022, the company suspended filtered tailings retreatment. The
For more information regarding production performance in the Americas region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Americas region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Americas region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
Nevada strategy
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In Nevada, during 2022, AngloGold Ashanti’s project team integrated the Corvus Gold assets and project data into the AngloGold Ashanti evaluation framework. The Company completed planning for feasibility study work at North Bullfrog and also commenced a pre-feasibility study at Silicon along with further drilling at the Merlin deposit. Following the acquisition of Coeur Sterling’s mining properties in the fourth quarter of 2016. 2022, AngloGold Ashanti’s project team commenced integrating these assets into the broader evaluation studies.
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AUSTRALIA
| ||
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
| Australia | |||||||||||
| 1. Sunrise Dam | 232 | 725 | |||||||||
| 2. Tropicana 70% | 306 | 807 | |||||||||
The main activitytwo AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of which are in the north-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned. We have a 70 percent holding in, and manage, Tropicana. Regis Resources Ltd, our partner in Tropicana, holds the balance. Sunrise Dam includes the Butcher Well project (70 percent).
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Australia - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 10.7 | 10.5 | 10.2 | |||||||||||||||||||
| Pay limit | oz/t | 0.05 | 0.06 | 0.06 | |||||||||||||||||||
| g/t | 1.69 | 1.89 | 1.95 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.050 | 0.047 | 0.054 | |||||||||||||||||||
| g/t | 1.56 | 1.47 | 1.68 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 538 | 494 | 554 | |||||||||||||||||||
| Cost of sales | $m | 783 | 740 | 705 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,157 | 1,196 | 968 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,345 | 1,500 | 1,225 | |||||||||||||||||||
| Capital expenditure | $m | 202 | 185 | 142 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 0 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 3.82 | 6.59 | 3.74 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 1,532 | 1,332 | 1,230 | ||||||||||||||||||||
| Permanent employees | 314 | 288 | 259 | ||||||||||||||||||||
| Contractors | 1,218 | 1,044 | 971 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
Performance summary
Production for the Australia region was up nine percent for the year ended 31 December 2022 at Yatela538,000 ounces compared to 494,000 ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities and a TRIFR of 3.82 per million hours worked was recorded (2021: 6.59 per million hours worked).
Regional community investment amounted to $0.99 million (2021: $1.01 million).
Sunrise Dam and Tropicana are certified under the Cyanide Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
The first site to complete an assessment as part of the FP review programme was Sunrise Dam, where the biggest opportunity is to increase productivity in development and achieve a step-change in underground production. The proposed improvements include an underground workshop to lift jumbo utilisation and improvements to planning and scheduling which, together are expected to support an increase in underground volumes. During the second half of 2022, Tropicana also completed an assessment to identify performance improvement initiatives as part of the FP review programme.
For more information regarding production performance in the Australia region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Australia region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Australia region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
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SOUTH AFRICA
| ||
The sale of the South African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.
South Africa Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 0.4 | |||||||||||||||||||||
Pay limit (1) | oz/t | 0.40 | |||||||||||||||||||||
| g/t | 14.60 | ||||||||||||||||||||||
Recovered grade (1) | oz/t | 0.120 | |||||||||||||||||||||
| g/t | 3.75 | ||||||||||||||||||||||
| Gold production | 000oz | 241 | |||||||||||||||||||||
| Cost of sales | $m | 287 | |||||||||||||||||||||
Total cash costs per ounce (2) | $/oz | 1,149 | |||||||||||||||||||||
All-in sustaining costs per ounce(2) | $/oz | 1,296 | |||||||||||||||||||||
| Capital expenditure | $m | 35 | |||||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 4 | ||||||||||||||||||||||
| TRIFR | Per million hours worked | 6.12 | |||||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 8,297 | ||||||||||||||||||||||
| Permanent employees | 7,012 | ||||||||||||||||||||||
| Contractors | 1,285 | ||||||||||||||||||||||
(1)Refers to underground operations only.
(2)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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EXPLORATION REVIEW
Our greenfields exploration programmes are designed to discover new Mineral Resource that will ultimately lead to the development of new, stand-alone gold mines and support the sustainability of our business.
In 2022, the Silicon and Merlin prospects in Nevada were handed over to our Beatty project team, following which the greenfields exploration team refocused its efforts on the discovery of the next significant project to add to the AngloGold Ashanti portfolio.
Greenfields exploration
In 2022, $29 million was spent on greenfields exploration. Our greenfields exploration tenements cover over 9,500km2 of highly prospective ground in six countries – Australia, Argentina, Brazil, Guinea, Tanzania, and the United States.
Americas
In the United States, following the handover of the Silicon discovery to the Beatty Project team in the first quarter of 2022, the greenfields exploration function shifted its focus to seven, 100 percent-owned, earlier-stage greenfields projects located elsewhere in the Great Basin of Nevada. Work completed at these various projects included prospect mapping, surface sampling and geophysical surveys. Diamond drilling is planned for the Midnight Star and CR projects during 2023.
In Brazil, 1,330 stream sediments, 1,200 soil samples and 1,060 rock chip samples were collected. From the SBB terrane in the state of Minas Gerais, four districts have been identified by stream sediment sampling. Infill sampling is in progress to define projects in these districts. At the WBC terrane, which is located in the state of Matto Grosso do Sul to the south-west of Minas Gerais, one project has been advanced and will be considered for drilling in 2023.
In Argentina, an option agreement was signed with Latin Metals for the Organullo project in Salta Province. Work completed since June 2022 included soil sampling, mapping, acquisition of various spectral data sets and community engagement. At the 100 percent-held El Cori project, four drilling targets were identified from surface exploration.
Africa
In Guinea, we received six reconnaissance permits for the Shira district in the Siguiri Basin of Guinea. Community engagement work has started and field exploration is scheduled for the first quarter of 2023.
In Tanzania, target generation activities continued.
Australia
In Australia, we carried out exploration work in the Laverton District and, in Queensland, greenfields exploration took place at the Chillagoe and Georgetown projects.
Brownfields exploration
In the Beatty District, brownfields exploration continued at North Bullfrog, and successfully defined and expanded the Silicon and Merlin targets. Elsewhere across our operations, exploration continued, on one hand to add confidence to the mine plans by upgrading the Mineral Resource and on the other to search for new Mineral Resource with a high likelihood for conversion to Mineral Reserve.
In 2022, our brownfields exploration teams across the globe completed 799km of capital and 358km of expensed drilling at a cost of $79 million and $67 million, respectively. The drilled metre achievement was ten percent below the 2022 budget of 1,281km with the gap closing each quarter after slow start ups at a few operations. Total expenditure of $146 million was 12 percent below budget.
Brownfields exploration activities resulting in the most notable economic intercepts, by operation, for 2022 are listed below by region.
Africa
•Geita: The key area drilled was Geita Hill which is split into six blocks. The drilling was conducted from both surface and underground and was designed to upgrade the underground project and to prepare for mining. Other significant intercepts were drilled at Star and Comet underground at Cut 3 and Ridge 8, extending the potential of the underground complex at Star and Comet. Drilling at the Nyamulilima open pit expanded and further defined the mineralisation.
•Obuasi: Drilling at Block 8, Block 10 and Sansu continued to define the limits of mineralisation and prepare these areas for mining. Late in the year drilling started at Cote D’Or examining the potential to open a second mining area.
•Siguiri: The key exploration activities were at Kounkoun (Block 3) where infill and definition drilling continue as part of the overall assessment of Block 3 as a future mining area. Drilling to extend and define the known mineralisation in Blocks 1 and 2 was conducted.
•Kibali: Two notable drilling intercepts, at Mengu Hill and Oere, were recorded during the year.
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Americas
•Cerro Vanguardia: Numerous veins were drilled and later in the year emphasis moved to the northwest of the property and onto the Condor ground.
•AGA Mineração, CdS: Drilling of underground opportunities at both CdS I and II delivered significant intercepts at Sangue De Boi, Mutuca, Rosalino, Pinta Bem and Pneu.
•AGA Mineração, Cuiabá: Drilling to extend the depth extents of Fonte Grande Sul below 21 level continued while at a shallower depth drilling to define the satellite ore bodies continued to deliver.
•Serra Grande: One significant intercept, at Angicão, was drilled during the year.
•Beatty: Definition and infill drilling continued at Silicon and Merlin in Nevada. Drilling at North Bullfrog started to deliver later in the year.
Australia
•Sunrise Dam: The key areas delivering significant intercepts were at Frankie and Vogue as part of programmes designed to define and extend mineralisation in these areas. As is typical of the Sunrise Dam mineralisation, most drilling programmes drilled significant intercepts which reflect the nuggety nature of the mineralisation.
•Tropicana: Successful drilling was aimed at the three underground projects, namely, Boston Shaker, Havana and Tropicana.
While many of the significant economic intersections are for unmined underground opportunities, Nevada is delivering significant intersections that will most likely be excavated through open pit mining.
PROJECTS
Quebradona
Following the decision of Colombia’s national environmental agency (ANLA) in November 2021 to archive the Company’s environmental licence application for the Quebradona project, AngloGold Ashanti filed an appeal seeking to secure further details on the specific additional information required for ANLA to make a decision on AngloGold Ashanti’s licence submission. On 29 April 2022, ANLA dismissed the appeal and confirmed its decision to archive the Company’s application. AngloGold Ashanti continues to review and analyse the additional information identified as part of ANLA’s decision. The objective is to prepare, submit and process a new environmental licence request for Quebradona following completion of a new environmental impact assessment.
Gramalote
Following completion of the feasibility study on the Gramalote gold project, a joint operation with B2Gold, both partners have determined that the Gramalote project does not meet their investment thresholds for development. The project continues to benefit from federal and local government support as well as continuing support from local communities.
AngloGold Ashanti and B2Gold have completed a comprehensive review of the alternatives and consider that it would be in the best interest of all stakeholders for a new party to own the Gramalote project. The partners appointed a corporate advisor in the fourth quarter of 2022 to assist with the sale process for the Gramalote project, which is currently ongoing.
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4C. ORGANISATIONAL STRUCTURE
GROUP STRUCTURE
AngloGold Ashanti’s operations are divided into the following regions:
•Africa — operations in Ghana, Guinea and Tanzania and a joint venture operation in the DRC;
•Australia — operations in Australia; and
•Americas — operations in Argentina and Brazil, and exploration projects in the United States and Colombia.
The above regions correspond to AngloGold Ashanti’s business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020. In addition, a new segment, Projects has been introduced from the implementation of the closure plan in ordernew Operating Model (previously reported under the America’s segment). The Projects segment comprises all the major non-sustaining capital projects with the potential to relinquishbe developed into operating entities.
Day-to-day management of the property. PowerGroup is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.
Support is provided to the Yatela operationexecutive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.
SUBSIDIARIES
AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item 19: Exhibits to Form 20-F—Exhibit 19.8 List of AngloGold Ashanti Limited subsidiaries” for details.
On 16 March 2023, AngloGold Ashanti and Gold Fields announced that they have agreed the key terms of a proposed joint venture in Ghana between Gold Fields' Tarkwa and AngloGold Ashanti's neighbouring Iduapriem Mines (the “Proposed Joint Venture”). There can be no certainty that the parties will enter into a definitive agreement with respect to the Proposed Joint Venture or about the timing, terms and conditions of any such definitive agreement. Implementation of the Proposed Joint Venture is self-generated.subject to, among other matters, reaching agreement with the Government of Ghana regarding the Proposed Joint Venture, conclusion of confirmatory due diligence and securing all requisite regulatory approvals. For further information, refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.
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4D. PROPERTY, PLANTS AND EQUIPMENT
Locations of properties
Notes:
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc.("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling (which includes the Crown Block deposits of SNA, Secret Pass and Daisy) through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
The locations of AngloGold Ashanti’s properties are shown above. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent wholly-owned unless otherwise indicated.
Overview of mining properties and operations
The overview for each mining property is disclosed below and includes information on the following items:
•Location of the properties;
•For each material property, locality maps showing the location of such properties as well as infrastructure and licences;
•Type and amount of ownership interests;
•Identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•Stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation occurs as a keel-shaped bodystyles; and
•Processing plants and other available facilities.
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Please refer to “Item 5A: Operating Results—Key factors affecting results—Production in Birimian metacarbonates. The ‘keel’ is centered on a fault which was the feeder2022” for the original mesothermal mineralisation,aggregate annual production for each of the Company's mining properties during each of the fiscal years ended 31 December 2022, 2021 and 2020. For more information about AngloGold Ashanti’s mines, including a summary of the Company’s titles, mining rights, leases and licences with an associated weakly mineralised diorite intrusion. Mineralisation occursacreage, please refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”.
In its annual report on Form 20-F for the fiscal year ended 31 December 2021, AngloGold Ashanti complied for the first time with the new mining property disclosure requirements for mining registrants set forth in Subpart 1300 of Regulation S-K (17 CFR § 229.1300) (“Regulation S-K 1300”) and reported on, and filed Technical Report Summaries for, all of its mining properties. During 2022, AngloGold Ashanti developed a process to determine which properties are material to its business or financial condition for purposes of the individual property disclosure requirements of Item 1304 of Regulation S-K (17 CFR § 229.1304). The key considerations taken into account by AngloGold Ashanti in its materiality assessment include (i) certain quantitative factors such as a layer alongcontribution to the sidesMineral Resource and Mineral Reserve, actual and planned production and Net Present Value, as well as (ii) certain qualitative factors, which are assessed in the bottomcontext of the ‘keel’.Company’s overall business and financial condition. The ore dips almost verticallymateriality assessment covers all of the Company’s mining properties (regardless of the stage of the mining property) and all of its mining and related activities from exploration through extraction, and will be reviewed by the Company on an annual basis. Based on these considerations, AngloGold Ashanti has determined that its material properties for purposes of Regulation S-K 1300 are Geita, Kibali and Obuasi. With respect to Geita, an updated Technical Report Summary (effective date: 31 December 2022) has been prepared by the west limbrelevant Qualified Persons, and more gently towards the west on the east limb, with tight closureis filed as Exhibit 19.15.4 hereto. With respect to Kibali and Obuasi, AngloGold Ashanti has determined that (i) there are no material changes to the south.
AngloGold Ashanti’s operating mines are all accessible by road, although for some, personnel access is better achieved by air.
AngloGold Ashanti’s exploration programmes are based on consistent standards and processes across its portfolio and are guided by peer review. Part of MwanzaAngloGold Ashanti's investment strategy is focused on exploration drilling and four kilometres away fromMineral Reserve development to grow the townMineral Resource and by converting these, the Company allows for expansion of Geita. It has been in operation since 1996.
the Mineral Reserve. The Geita gold mine is a multiple open pit operation with undergroundprocess involves identifying the best group of drill targets and prioritising those that have the highest potential and is currently serviced by a 5.1 million tonnes per annum CIL processing plant. Powerfor success to the mine is self-generated. In 2015, underground mining commenced at Geita withbe advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of declines and the opening up of stopes below the Star and Comet pit, this was joined in 2017 by the Nyankanga underground. The mine is currently evaluating additional underground options to increase production and extend the mine’s life.
This annual report on Form 20-F is Archaeannot being submitted in agesupport of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at its brownfields operations is generally characterised by Greenschist metamorphism, although amphibolitic metamorphism occurs in places. Ore zones are usually
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AngloGold Ashanti has five mining operations within the Africa region:
•Kibali Gold Mine isin the Democratic Republic of the Congo ("DRC"), a Jointjoint venture (“JV”) between AngloGold Ashanti (45 percent)(45%), Barrick Gold Corporation (“Barrick”) (following its merger with Randgold Resources Limited (45 percent) with(“Randgold”)) (45%), and Société MiniereMinière de Kilo-Moto SA UNISARL (SOKIMO)S.A. (“SOKIMO”), a state-owned gold mining company owning(10%);
•Iduapriem Gold Mine ("Iduapriem") and Obuasi Gold Mine ("Obuasi") in Ghana;
•Siguiri Gold Mine (“Siguiri”) in Guinea, co-owned by AngloGold Ashanti (85%) and the balance.government of Guinea (15%); and
•Geita Gold Mine ("GGM" or "Geita") in Tanzania.
Mining is from both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.
DRC
KIBALI
For additional information, please refer to the Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto.
Property description
Kibali is a joint venture co-owned by AngloGold Ashanti (45%), Barrick (45%), and SOKIMO (10%). SOKIMO is wholly-owned by the DRC government. The consolidated lease is made up of ten exploitation permits. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach ("CIL"), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine, which comprises both open pit and underground operations.
Kibali is a gold mining, processing and exploration project. Operations currently focus on open pit and underground mining. The mine was originally developed and operated by Randgold. Following the completion of the merger of Randgold Resourcesand Barrick in 2019, Barrick became the operator at Kibali for both exploration and mining. Kibali is the operator.currently a production stage property.
Location
Kibali is located in the north-easternnortheastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located into the west of the projectlease area. Kibali is approximately 210 kilometres210km by road from Arua on the Ugandan border and immediately north of the district capital of Watsa. The operationsoperational area falls within the administrative territory of Watsa in Haut-Uélé province.
Mineralisation style
Gold deposits of the Kibali district are classified as Archaean orogenic gold deposits. At Kibali, the gold deposits are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”) and chert that were deformed, altered and transposed during several events. This occurred at or near greenschist metamorphic conditions. Ore-forming H2O-CO2-rich fluids migrated along a linked network of Haut Uélégently northeast-dipping shears and north-northeast plunging fold axes that are commonly referred to as the KZ Trend. The auriferous KZ Trend is a complexly deformed fault system specifically developed along the boundary between the younger sedimentary basin in Orientale Province.the west of the belt that juxtaposes the older rocks to the east. Mineralisation occurred during the later stages of subsequent regional deformation which resulted in inversion of the basin and the development of reverse faults and folds. Ongoing deformation during hydrothermal activity resulted in the development of lodes in a variety of related structural settings within the KZ Trend.
History
On 15 October 2009, AngloGold Ashanti acquired a 50 percent indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70 percent stake in Kibali and the DRC parastatal SOKIMO holding the remaining 30 percent stake. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90 percent, while SOKIMO retained a 10 percent holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now held by the combined company, trading as Barrick.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.
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Mining method
The operation comprises both open pit and underground mining. Open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. From 2022 onwards, open pit production will come from the Sessenge, Aerodrome, Pamao, Gorumbwa, Megi-Marakeke-Sayi, Kalimva-Ikamva, Oere, Pakaka, and Karagba, Chauffeur and Durba (“KCD”) deposits. Open pit mining is conducted by contractor Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or conventional drill, blast, load and haul methods.
For the underground operation, longitudinal and transverse longitudinal stoping methods with paste backfill are the nominated mining methods. The Kibali KCD underground mine is designed to extract the KCD deposit directly beneath the KCD open pit. A 50m crown pillar separates the pit bottom from the top of the underground mine. The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. Stoping commenced in 2015 and ore production has ramped up to 3.8Mt in 2022. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system was commissioned. From 2018 onwards, underground ore has predominantly been hoisted up the shaft. The decline to surface will continue to be used to haul some of the shallower zones and to supplement shaft haulage.
Processing plants and other available facilities
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Access by air to Kibali involves a commercial flight to Entebbe in Uganda followed by a charter flight to Doko airport, situated on the mine property. The Doko airstrip was upgraded by Kibali and is equipped with runway lights and precision approach path indicator lights. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
Kibali is a large-scale gold mining operation, with a number of sources of ore, that has been in operation since 2013. The physical condition of the equipment, facilities, and infrastructure at Kibali is in good working order, with the mine investing heavily in maintaining and upgrading its assets to ensure that they remain reliable and efficient. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility ("TSF"), camp, airstrip, underground shaft, workshops and offices. Power to the mine is self-generated. Gold production began inself-generated by a combination of hydroelectric and diesel generators. The underground mine has also been extensively developed, with the fourth quarterconstruction of 2013 from open pit operationsboth shaft and undergroundportal and strategically placed development drives that access and further explore the gold-bearing ore.
The “Property, Plant, and Equipment” as of 31 December 2022, including lease assets, buildings and mine infrastructure, mining commenced in 2014. Itassets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping, had a carrying value of $983 million (reported as attributable; 45% owned by AngloGold Ashanti).
Mineral processing
The current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 600koz730kozpa of gold per annum byfor 10 years treating at least 7.2Mtpa throughput. The ore is blended using both KCD underground ore plus ore sourced from satellite open pits at Kibali.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,700/oz. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Underground)” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Measured | 7.22 | 3.18 | 22.97 | 0.74 | ||||||||||||
| Indicated | 22.15 | 2.64 | 58.44 | 1.88 | |||||||||||||
| Measured & Indicated | 29.37 | 2.77 | 81.41 | 2.62 | |||||||||||||
| Inferred | 13.16 | 2.61 | 34.43 | 1.11 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To
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reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Based on a gold price of $1,700/oz.
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Underground)” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Kibali | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.78 | 1.76 | 2.54 | 0.89 | ||||||||||
| Depletion | (0.01) | — | (0.01) | — | ||||||||||
| Exploration | 0.01 | — | 0.01 | 0.10 | ||||||||||
| Methodology | — | — | — | — | ||||||||||
| Price | 0.03 | 0.16 | 0.19 | 0.13 | ||||||||||
| Cost | (0.01) | (0.02) | (0.03) | (0.02) | ||||||||||
| Geotechnical | (0.07) | (0.02) | (0.09) | — | ||||||||||
| Metallurgical | — | 0.01 | 0.01 | 0.01 | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | — | — | — | ||||||||||
| Current Year | 0.74 | 1.88 | 2.62 | 1.11 | ||||||||||
| Net Difference | (0.04) | 0.12 | 0.08 | 0.22 | ||||||||||
| % Difference | (5) | 7 | 3 | 24 | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
Changes were driven both by exploration and an increase in the Mineral Resource gold price from $1,500/oz as at 31 December 2021 to $1,700/oz as at 31 December 2022, with gains seen from the open pits, specifically Ikamva, Oere and Gorumbwa, as well as from continued definition of the 11000 lode in the KCD underground. A maiden underground Inferred Mineral Resource at Gorumbwa was also reported.
Material Assumptions for the Mineral Resource
Key Parameters (Open Pit and Underground)
| Kibali | Unit | Open Pit | ||||||
| Costs | ||||||||
| Waste cost | $/tonne mined | 2.92-3.09(1) | ||||||
| Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | $/tonne mined | 1.27 | ||||||
| Grade Control cost | $/tonne mined | 0.75 | ||||||
| Dilution | % | 10 | ||||||
| Ore Loss | % | 3 | ||||||
| Processing cost | $/tonne milled | 15.04-17.85(1) | ||||||
| G&A | $/tonne milled | 8.47 | ||||||
| Other Parameters | ||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | ||||||
| Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) | ||||||
| Mineral Resource cut-off grade | g/t | 0.6-0.7(1) | ||||||
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| Kibali | Unit | Open Pit | ||||||
| Mineral Resource price | $/oz | 1,700 (2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. (1) Vary according to rock type. (2) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
| Kibali | Unit | Underground | ||||||
| Costs | ||||||||
| Mine Production | $/tonne ore mined | 36.17 | ||||||
| Capital | $/tonne ore mined | 3.97 | ||||||
| G&A | $/tonne ore milled | 8.47 | ||||||
| Processing cost | $/tonne ore milled | 17.85 | ||||||
| Other Parameters | ||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | ||||||
| Mining cut-off grade | g/t | 1.62 | ||||||
| Mineral Resource price | $/oz | 1,700 (1) | ||||||
| Metallurgical Recovery Factor | %MetRF | 90 | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
Mineral Resource estimation is undertaken by Barrick in-house technical experts or by approved external consultants. The results of both diamond drilling ("DD") and reverse circulation ("RC") drilling are used in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is conducted whereby high-grade central core areas are modelled separately from the lower-grade surrounding halos. Volumes are filled with block model cells and interpolated for density, rock type and grade – the latter using ordinary kriging.
Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The open pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.
Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Reserve for Kibali at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,300/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Proven | 14.49 | 3.47 | 50.33 | 1.62 | ||||||||||||
| Probable | 29.17 | 3.15 | 91.86 | 2.95 | |||||||||||||
| Total | 43.67 | 3.26 | 142.19 | 4.57 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
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4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz).
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Kibali | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.74 | 2.59 | 4.33 | ||||||||
| Depletion | (0.28) | (0.12) | (0.40) | ||||||||
| Exploration | 0.11 | 0.42 | 0.53 | ||||||||
| Methodology | — | — | — | ||||||||
| Price | 0.03 | 0.12 | 0.15 | ||||||||
| Cost | (0.01) | (0.03) | (0.04) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | 0.03 | — | 0.03 | ||||||||
| Other | — | (0.03) | (0.03) | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.62 | 2.95 | 4.57 | ||||||||
| Net Difference | (0.12) | 0.36 | 0.24 | ||||||||
| % Difference | (7) | 14 | 6 | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
The increase in Mineral Reserve was primarily as a result of the conversion of the 11000 lode in the KCD underground, and growth in the Ikamva and Oere pits due to exploration successes. The gold price used for pit optimisation changed from $1,200/oz as at 31 December 2021 to $1,300/oz as at 31 December 2022 which also contributed to the increase seen.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Kibali | |||||||
| Primary Commodity Price | $/oz | 1,300(1)(6) | ||||||
| Cut-off grade | g/t | 1.50(3)(5); 1.96(4) | ||||||
| Stoping width | cm | 2990(4) | ||||||
| Dilution | % | 2.0-12.5(4); 10(5) | ||||||
| Mining Recovery Factor | MRF based on tonnes (%) | 91.6(4); 97(5) | ||||||
| Mine Call Factor | MCF (%) | 97 | ||||||
| Metallurgical Recovery Factor | MetRF (%) | 89-90(2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have, relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to rock type. (3) Stockpile. (4) Underground. (5) Open pit. (6) Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz). | ||||||||
Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for
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reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL") between the KCD open pit and underground mine.
A cut-off grade analysis of $1,300/oz was used to determine a cut-off grade of 1.96g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.
Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali feasibility study and have been updated as the project has developed.
Map showing Kibali planned infrastructure and licences
Below is a map that shows Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly-owned and operated by AngloGold Ashanti.
Obuasi is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s. Iduapriem is an open pit mine.
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Obuasi is located in the Ashanti region of southern Ghana, approximately 60km south of Kumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in the first half of 2019, with the first gold produced in December 2019. The ramp-up of the redevelopment project was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.
Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.
OBUASI
For additional information, refer to the Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto.
Property description
Obuasi is wholly-owned by AngloGold Ashanti and is a production stage property. All required mineral rights to the property are held by the Company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been operated by AngloGold Ashanti since 2004.
Location
The mine is in the municipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital, Accra, and 60km south of Kumasi.
Mineralisation style
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Lower Proterozoic volcanic and flysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold belts found in Ghana.
Gold mineralisation is associated with shear zones and pervasive silica, carbonate and sulphide hydrothermal alteration which occur in tightly folded Lower Birimian schists, phyllites, meta-greywackes, and tuffs, along the eastern limb of the Kumasi anticlinorium. They are found near the contact with harder metamorphosed and metasomatically altered intermediate to basic upper Birimian volcanics. There are two broad styles of gold mineralisation including free milling quartz vein gold and sulphide-rich, disseminated and refractory gold which form alteration haloes around the quartz vein lodes. Sulphide mineralisation is dominated by arsenopyrite and quartz mineralisation, which is associated with spatially variable, but exceptionally high-grade visible gold in quartz veins.
History
Obuasi has a long mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. The company realised that significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.
In 2014, a feasibility study commenced that considered the optimum mining methodology and schedules for the underground mine, based on modern mechanised mining methods and refurbishment of underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with underground activities essentially restricted to the continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by illegal miners on Obuasi's concession in February 2016, at which point the mine was placed under care and maintenance. However, the study continued and in 2017, a favourable feasibility study was completed and indicated a strong technical and economic case with an anticipated 20-year life of mine ("LOM"). In 2018, approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project.
The redevelopment project began in late 2018 and first gold was poured during the fourth quarter of 2019. Phase 1 of the redevelopment project was completed by the end of September 2020, and the mine began commercial production on 1 October 2020. Phase 2 of the redevelopment project, which focused on construction and mine development, was completed in 2021. Phase 3 of the redevelopment project is currently underway to develop the infrastructure necessary to support the planned ramp-up in production.
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Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.
Mining method
Obuasi is an underground operation, utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining activities with varying applications of different mining methods to date. The current LOM design employs mostly the Long Hole Open Stoping ("LHOS") mining method for ore extraction. LHOS is a highly selective and productive method of mining that can be employed for orebodies of varying thicknesses and dips. The main distinct variations of the LHOS used at Obuasi are longitudinal retreat stoping (“LRS”), and transverse open stoping (“TOS”). The blind upper stoping is a form of LRS or TOS used for partial sill pillar recovery.
Processing plants and other available facilities
All significant surface activities, including ore processing, environmental management and community engagement are carried out by Obuasi staff. Existing infrastructure includes a recently refurbished and upgraded 2.2Mtpa processing plant haswith flotation and bacterial oxidation ("BIOX"), extensive underground development, hoisting shafts and associated infrastructure, mine ventilation and refrigeration facilities, emergency standby power and water reticulation, office complexes, workshops, and company housing estates. Power is supplied to the mine by the Volta River Authority and Ghana Grid Company Limited (“GRIDCo”). There is a capabilityfocus mine development plan supported by the existing infrastructure, and ongoing upgrades of processing both oxidecritical underground infrastructure to sustain the operations. The mine can be accessed by paved road network from Kumasi and sulphide material.by road or chartered air transport from the capital, Accra. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
The underground“Property, Plant, and Equipment” as of 31 December 2022, including buildings and mine has bothinfrastructure, mining assets, decommissioning assets and assets under construction, had a ramp and shaft system, with the shaft reaching a depthcarrying value of 751.2m and hoisting its first ore in 2017.$1,009 million.
The Kibali Gold Mineplant is located withinconfigured for both conventional and flash flotation and BIOX treatment which is required for the Moto Greenstone Belt,refractory sulphide ore. The gravity gold recovery system is also integrated with Knelson concentrators and inline leach reactors.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which consistssummarises the gold Mineral Resource (exclusive of Archean Kibalian volcano sedimentary rocksMineral Reserve) for Obuasi at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,750/oz for underground and ironstone-chert horizons that$1,600 for open pit Mineral Resource. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Measured | 1.96 | 8.44 | 16.59 | 0.53 | ||||||||||||
| Indicated | 27.66 | 6.06 | 167.59 | 5.39 | |||||||||||||
| Measured & Indicated | 29.63 | 6.22 | 184.18 | 5.92 | |||||||||||||
| Inferred | 39.80 | 8.50 | 338.17 | 10.87 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been metamorphosedprepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to greenschist facies.two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
5.Open pit based on a gold price of $1,600/oz, underground based on a gold price of $1,750/oz.
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Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Obuasi | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.66 | 5.84 | 6.50 | 12.05 | ||||||||||
| Depletion | — | — | — | — | ||||||||||
| Exploration | — | — | — | (0.06) | ||||||||||
| Methodology | 0.02 | 0.28 | 0.30 | (0.53) | ||||||||||
| Price | 0.02 | 0.58 | 0.60 | 1.11 | ||||||||||
| Cost | (0.17) | (0.97) | (1.14) | (1.31) | ||||||||||
| Geotechnical | — | — | — | — | ||||||||||
| Metallurgical | — | — | — | — | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | (0.33) | (0.33) | (0.37) | ||||||||||
| Current Year | 0.53 | 5.39 | 5.92 | 10.87 | ||||||||||
| Net Difference | (0.12) | (0.45) | (0.57) | (1.17) | ||||||||||
| % Difference | (19) | (8) | (9) | (10) | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The combined Karagba, Chauffeur and Durba (KCD) deposit is host to the majority of the currently defineddecrease in Mineral Resource is mainly due to depletion attributed to mining from Sansu, and Ore Reserve,Blocks 8 and 10 and an increase in costs which resulted in higher cut-off grades as well as the currentsterilisation of stopes in the depletion process. The decrease was partially offset by model changes primarily from the inclusion of new drilling data from ongoing operational drilling activities and the increase in Mineral Resource price.
Material Assumptions for the Mineral Resource
Key Parameters
| Obuasi | Unit | Underground | ||||||
| Costs | ||||||||
| Mining cost | $/tonne mined | 64.26-79.44(1) | ||||||
| Processing cost | $/tonne treated | 42.57 | ||||||
| G&A | $/tonne treated | 21.96 | ||||||
| Other Parameters | ||||||||
| Royalties | % | 3.0 | ||||||
MSO(2) optimising cut-off | g/t | 3.43-3.75(1) | ||||||
| Mineral Resource cut-off grade | g/t | 3.43-3.75(1) | ||||||
| Mineral Resource price | $/oz | 1,600-1,750(3)(4) | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) Vary according to area. (2) Datamine Mineable Shape Optimiser ("MSO"). (3) Open pit based on a gold price of $1,600/oz, Underground based on a gold price of $1,750/oz. (4) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m x 5m x 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades is restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m x 10m (for grade control areas) up to 200m x 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this are not classified and are considered to be upside potential rather than Mineral Resource.
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Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph D(1) of Item 1304 ofRegulation S-K, which summarises the gold Mineral Reserve for Obuasi at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,400/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Proven | 4.47 | 9.55 | 42.73 | 1.37 | ||||||||||||
| Probable | 21.25 | 9.26 | 196.67 | 6.32 | |||||||||||||
| Total | 25.72 | 9.31 | 239.40 | 7.70 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
5.Based on a gold price of $1,400/oz.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Obuasi | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.19 | 7.08 | 8.26 | ||||||||
| Depletion | (0.23) | — | (0.23) | ||||||||
| Exploration | — | (0.77) | (0.77) | ||||||||
| Methodology | 0.54 | — | 0.54 | ||||||||
| Price | 0.11 | 1.49 | 1.60 | ||||||||
| Cost | (0.23) | (1.48) | (1.71) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | — | — | — | ||||||||
| Other | — | — | — | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.37 | 6.32 | 7.70 | ||||||||
| Net Difference | 0.19 | (0.75) | (0.57) | ||||||||
| % Difference | 16 | (11) | (7) | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The key changes were primarily associated with depletion, exploration, block model changes, and economic parameters. Depletion was mainly due to mining, while exploration changes were as a result of Mineral Resource drilling. This was offset by changes in the block model methodology involving estimation parameters, interpretations, classification and density. The economic factors that also influenced the changes to the Obuasi Mineral Reserve included an increased gold price assumption which was partially offset by an increase in mining cost and sustaining capital.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Obuasi | |||||||
| Primary Commodity Price | $/oz | 1400(1) | ||||||
| Cut-off grade | g/t | 4.29-4.69(2) | ||||||
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| as at 31 December 2022 | Obuasi | |||||||
| Dilution | % | 12-17(2) | ||||||
| Mining Recovery Factor | %MRF based on tonnes | 95-98(2) | ||||||
| Mining Recovery Factor | %MRF based on g/t | 100 | ||||||
| Mine Call Factor | %MCF | 100 | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to area. | ||||||||
Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM ("EPS") software.
The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,400/oz was used. The cut-off grade also considers the metallurgical recovery factor (87 percent applied for all blocks), mining dilution and recovery, tonne-kilometre haulage cost from all blocks, as well as the backfill type.
Stopes are designed using the Datamine Mineable Shape Optimiser ("MSO") Software where the outputs are further optimised by manual edits. The stope shapes are generated at section intervals of 15m to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Mineral Reserve is reported from the LOM plan and only includes Measured and Indicated Mineral Resource.
Map showing Obuasi planned infrastructure and licences
Below is a map that shows the location, infrastructure and mining licence area for Obuasi. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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IDUAPRIEM
Property description
Iduapriem mine is wholly-owned and operated by AngloGold Ashanti and a production stage property. The mine is a multiple open pit operation that currently sources ore from the Block 3W, Block 5, Ajopa, and Blocks 7 and 8 pits.
Location
The mine is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and approximately 10km southwest of the town of Tarkwa. The Iduapriem mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).
Mineralisation style
There are four recognised conglomerate reefs namely A, B, C and D, which are equivalent to the Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs, respectively. The B and C Reefs are oligomictic and consist of well-sorted conglomerates and have been mined underground mining operations. KCDin some areas more than a century ago. The A and D Reefs have a lower gold tenor and are polymictic, containing both well-rounded and angular fragments. Gold is hostedfound within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a mineralised corridor thatconglomeratic unit. The gold is fine-grained, particulate and free-milling.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant next to the main office building, a TSF and four camp areas for contractors and company employees. Tarkwa town is also hostsadjacent to the Sessenge, Gorumbwatenement. Power is supplied to the mine by the Volta River Authority and Pakaka depositsGRIDCo.
Mineral processing
The current processing plant treats free-milling material from open pit mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a Metso Superior MKIII primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogenous grinding mills ("SAG mills") and two ball mills which run in two parallel circuits,each with a SAG mill and a numberball mill. The second ball mill, a new thickener, a cluster of exploration prospects.
AUSTRALIA
In Australia, with a few exceptions, all onshore minerals are owned by the Crown. The respective Minister for each state and territory is responsible for administering the relevant mining legislation enacted by the states and territories. Native title legislation applies to certain mining tenements within Australia. Australia recognises and protects a form of native title that reflects the entitlement of Aboriginal people to their traditional lands in accordance with their traditional custom and laws. Should native title claims or determinations exist, certain native title processes and procedures will apply under the Native Title Act 1993 (Cth) (the “Native Title Act”) before the tenure is granted. Tenure may be granted subject to conditions relating to native title rights. In the mining context, native title matters are managed as part of the tenement grant process. If disputes arise in relation to the grant of a particular tenement, they can be referred to the National Native Title Tribunal, established under the Native Title Act, for resolution. Native title legislation also provides a framework for compensation to be paid for acts that affect native title rights and interests. Ordinarily, the relevant Commonwealth or State government is liable to pay compensation for acts attributable to it. However, in the state of Western Australia, the Mining Act 1978 (WA) provides that an applicant for the grant of, or the holder of, a mining tenement is responsible for native title compensation, if determined to be payable, to native title holders.
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Federal, state and territory Aboriginal and non-Aboriginal heritage laws operate in parallel to the native title legislation. State and territory heritage laws exist predominantly for the purposes of managing the impact of developments on sites, objects and areas of heritage significance. In Western Australia, impacts to Aboriginal cultural heritage are regulated by the Aboriginal Heritage Act 1972 (WA). However, this legislation will be repealed and replaced by the Aboriginal Cultural Heritage Act 2021 (WA) (the “ACH Act”) which was enacted in 2021. The regulations, management code and various guidelines which underpin the ACH Act are being co-designed by the State government, traditional owners, industry and other stakeholders. The ACH Act will not become fully operational until the co-design process is complete in mid-2023 at the earliest. Where an area of heritage significance is placed on the national or world heritage registers, federal approval processes may also apply. To date, there has not been any significant impact on any of AngloGold Ashanti’s tenure due to native title or heritage legislation and, at this stage, it is not possible to predict any significant impact that may result in the future from the final regulations, management code and various guidelines under the ACH Act, once adopted.
AngloGold Ashanti’s operating properties are located in the state of Western Australia where tenure is issued under, and mining operations are governed by, the Mining Act 1978 (WA). The most common forms of tenure in Western Australia are exploration and prospecting licences, mining leases, miscellaneous licences and general purpose leases. In most Australian states, if the holder of an exploration licence establishes indications of an economic mineral deposit in the area covered by the exploration licence and complies with the conditions of the grant, the holder of the exploration licence has a priority right against all others to be granted a mining lease which gives the holder exclusive mining rights with respect to minerals on the property.
It is possible for an individual or entity to own an area of land (including for infrastructure purposes) and for another individual or entity to be granted the right to explore for or mine any minerals located on or under the surface of the same area. The maximum initial term of a mining lease in Western Australia is 21 years and the holder has the right to renew the lease for an additional 21 years. Subsequent renewals are granted at the discretion of the respective state or territory’s minister responsible for mining rights. In Western Australia, mining leases can only be assigned with the prior written consent of the minister.
Tax laws relating to mining
Government royalties are payable by the holder of mining tenure in respect of minerals obtained from the relevant area of land at the rates specified in the relevant legislation in each state or territory. The royalty on gold production in Western Australia is payable quarterly at a fixed rate of 2.5 percent of the royalty value of gold metal produced. The royalty value is calculated by multiplying the amount of gold produced during a given month by the average gold spot price for that month. In addition, the holder of a mining tenement is required to pay annual rent in respect of the tenement. In Western Australia there is a minimum annual expenditure requirement for prospecting and exploration licences and mining leases. Exemptions from the expenditure requirement can be obtained if certain conditions are satisfied.
Environmental laws relating to mining
Mining tenements will be granted with endorsements and conditions relating to protection of the environment. Exploration and mining operations may also require separate approval from the state, territory or federal environment minister, which may require completion of an environmental impact assessment (including a public consultation period) pursuant to applicable environmental protection legislation prior to commencement. Further, a works 'construction' approval and an operating licence under the relevant environmental protection legislation in the state or territory may also be required for certain mine processing or mining-related operations. In Western Australia, legislation removing the distinction between “works approvals” and “licenses” is expected to enter into force in December 2023 such that, following the effective date, only a “license” will be required for “prescribed activities”, which include relevant works and operations on a mining lease, and not a separate “works approval”. Depending on the jurisdiction, additional approvals may be required for the removal of native vegetation within the tenement, and the taking and use of water for exploration and mining operations.
AngloGold Ashanti’s rights and permits
AngloGold Ashanti has been granted 21-year term mining leases with rights of renewal to all of its mining areas in Australia, including its proportionate share of joint venture operations and accordingly it has, together with its joint venture partners where applicable, the exclusive right to mine in those areas. Both the Group and its joint venture partners are fully authorised to conduct operations in accordance with relevant laws and regulations. The mining leases and rights of renewal cover the current life-of-mine at AngloGold Ashanti’s operations in Australia.
At Sunrise Dam, one mining lease (M39/1116) covers the deposit and mine infrastructure (approximately 7,808 hectares) and another mining lease (M39/1117) covers the water extraction infrastructure used to supply the operation with water (approximately 1,768 hectares). Both leases are currently in good standing, with expiry dates in 2038.
The Butcher Well joint venture has security of tenure for all current exploration licences and for the contiguous mining leases that covers its Mineral Resource. There are three mining leases: mining lease (M39/165) which covers 602.35 hectares with expiry date in 2030, mining lease (M39/166) which covers 990 hectares with expiry date in 2030 and mining lease (M39/230) which covers 446.4 hectares with expiry date in 2032.
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At Tropicana, the deposit is situated upon a single mining lease (M39/1096) covering approximately 27,228 hectares, which is currently in good standing, with an expiry date in 2036.
AngloGold Ashanti Australia Limited is also conducting early stage exploration activities in Queensland under the Mineral Resources Act 1989 (QLD). AngloGold Ashanti holds 15 exploration permits covering 316,851 hectares. Each permit is granted with an initial term of five years, renewable for two further periods of not more than five years each.
AMERICAS
Argentina
General laws relating to mining and land ownership
Mining regime
The Argentinean Mining Code governs mining activity in the country. Special regimes exist for hydrocarbons and nuclear minerals. In the case of most minerals, the Argentinean Mining Code establishes that the owner of the land is not the owner of the mineral rights; these are held by the national or provincial governments (depending on the location of the minerals). The national or provincial government, as applicable, is required by the Argentinean Mining Code to grant whomever discovers a new mine title to the mining concession.
The Argentinean Mining Code regulates exploration permits as well as mining concessions, or exploitation rights. Exploration permits grant their holders exclusivity rights to any mineral discoveries, including those made by a third party within the exploration area covered by the permit. Exploration permits are limited in time and as to the extent of the exploration area, are subject to the payment of a single-time fee, and also require a minimum exploration work programme and schedule to keep the permit in force. Priority for receiving a mining concession is given to the registered discoverer of the mine, which holds the exploration permit. Once the application for a mine has been submitted, the applicant may commence works and must submit a legal survey of the units requested for the new mine. The application and the legal survey may be opposed by third parties following specific proceedings set forth in the Argentinean Mining Code. Approval and registration of the legal survey by the provincial mining authority constitutes formal title to the mining concession.
Holders of mining concessions must comply with three main conditions: payment of an annual fee, investment of a minimum amount of capital, and the carrying out of a reasonable level of exploitation. Failure to do so could lead to forfeiture of the mining concession, which would then revert back to the Province.
In addition to the Argentinean Mining Code, between 1993 and 1995, Argentina implemented several federal laws to offer foreign companies attractive incentives for exploration and mining in Argentina, the Mining Investment Law (Law No. 24, 196), as amended (the “Mining Investment Law”), and related legal provisions being the most important one. Such incentives include, among other matters, import duty exemptions, accelerated depreciation of fixed assets, a three percent cap on provincial royalties set at pit-head value on the mineral extracted, value added tax refunds for exploration-related expenses incurred by companies registered under the Mining Investment Law, and, subject to the filing of a feasibility study for the relevant mining project, a 30-year stability as to the tax burden on the project and the customs and foreign exchange regimes and duties. Cerro Vanguardia S.A. (“CVSA”) obtained its tax, customs and foreign exchange stability certificate in 1996.
Glacier Law
On 30 September 2010, the National Law on Minimum Requirements for the Protection of Glaciers (Law No. 26, 639) (the “Glacier Law”) was enacted in Argentina, banning new mining exploration and exploitation activities on glaciers and “peri-glacial” areas. The Glacier Law establishes a broad definition of “peri-glacial” areas that, together with glacial areas, must be surveyed by an existing national government agency specifically appointed to this end every five years. The area where the Cerro Vanguardia project is located does not include any glaciers or peri-glacial areas according to the inventory of glaciers which was published in June 2018.
Rural Land Law
On 27 December 2011, the Argentinean National Congress passed a law on the Regime for Protection of National Domain over Ownership, Possession or Tenure of Rural Land (Law No. 26, 737) (the “Rural Land Law”) which implemented a set of rules restricting the ownership of rural land by foreigners (including foreign individuals or any kind of legal entity controlled by foreign individuals or legal entities). The main restrictions are as follows: (i) foreigners cannot own in the aggregate more than 15 percent of the entire rural land of Argentina, the same cap being applicable to each Province and Municipality; (ii) foreigners will not be allowed to purchase more than 1,000 hectares in the so-called “zona núcleo”, which comprises the main agricultural areas of central Argentina or an “equivalent” surface depending on the location of the land and its productive potential; and (iii) foreigners will not be allowed to buy land that contains, or is adjacent to, relevant and permanent water bodies (such as rivers and lakes). Although exploration permits and mining concessions are not the subject matter of the restrictions placed by the Rural Land Law, certain rights granted to foreign mining companies under the Argentinean Mining Code may be restricted by this
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new law. For example, the right that holders of mining concessions currently have to force the surface owner to sell the land to the holder of the mining concession might be restricted if the concession holder is a foreign individual or a legal entity controlled by foreigners.
Federal Mining Agreement
On 13 June 2017, the national government and the provinces in whose territories the main mining projects of Argentina are located, signed the New Federal Mining Agreement (“FMA”). The purpose of the FMA is, amongst other things, to increase provincial revenues from the mining industry by creating legal entities owned by provincial governments that would work in association with private mining companies. This scheme is not new in Argentina and it has been used by some provincial governments, amongst them the Santa Cruz Province (through Fomicruz), in which the Cerro Vanguardia project is located. The FMA also contemplates other forms of revenues such as the formation of special trusts to be funded by mining companies to finance education, health and other programmes. Additionally, the FMA included setting forth mining royalties up to three percent of the gross value of commercialised minerals, without any deductions other than VAT. As the FMA has not yet been converted into law by the National Congress, its provisions are neither binding nor enforceable.
In Argentina, the current regulatory regime of royalty payments is expected to change and several different options and payment thresholds have been discussed. In December 2012, the Santa Cruz Province changed the mining royalty from one percent to three percent calculated at pit-head value of the mineral extracted thus bringing it to the cap of the Mining Investment Law.
Foreign exchange and export rules
Foreign exchange controls
On 1 September 2019, by means of Executive Decree No. 609/2019 (the “Export Controls Decree”), the Argentinean national government reinstated foreign exchange and export controls. The Export Controls Decree and related regulations of the Central Bank of Argentina impose, among other measures, the obligation of Argentinean residents to transfer to Argentina and/or sell for Argentinean pesos in the Argentinean foreign exchange market (mercado de cambios) the countervalue (contravalor) from their exports of goods within a specified period. The export of goods is regulated by the Consolidated Text on “Foreign Trade and Exchange” issued by the Argentinean Central Bank (as amended from time to time) which establishes the specific regulatory requirements to implement the measures adopted by the national government in this area. Prior approval of the Argentinean Central Bank is generally required to access the foreign exchange market for transactions relating to the outflow of funds, except in certain circumstances.
In October 2022, the Argentinean national government implemented the Argentinean System of Imports (Sistema de Importaciones de la República Argentina) (“SIRA”) and the Argentinean System of Imports and Foreign Payments of Services (Sistema de Importaciones de la República Argentina y Pagos de Servicios al Exterior). Importers must obtain a SIRA approval in the form of a SIRA certificate for the import of goods and to access the foreign exchange market for payments in connection with the import of goods. Additionally, from 1 January 2023, Argentinean residents, such as CVSA, must comply with certain supplementary provisions in order to access the foreign exchange market without prior approval of the Argentinean Central Bank, unless an exception applies.
CVSA had a cash balance equivalent to $116 million at 31 December 2022. The cash balance is available to be paid to AngloGold Ashanti’s offshore ($105 million (equivalent)) and onshore ($15 million (equivalent)) investment holding companies in the form of declared dividends. Applications have been made to the Argentinean Central Bank to approve the purchase of U.S. dollars in order to distribute offshore dividends related to the 2019, 2020 and 2021 financial years of $105 million (equivalent) to AngloGold Ashanti. Also, under a special regime established for dividend payments, a new petition to distribute a portion of the offshore dividends applied for, in the amount of $54 million (equivalent), was submitted to the Argentinean Central Bank during the third quarter of 2022. In December 2022, the Argentinean Central Bank approved, based on the applications submitted under this special regime, the payment of $17 million (equivalent) to AngloGold Ashanti. As a result, during 2022, AngloGold Ashanti received offshore dividends from CVSA in a total amount of $17 million (net of withholding taxes) paid in U.S. dollars. While the remaining approvals are pending, the cash remains fully available for CVSA’s operational and exploration requirements.
Export duties
On 21 December 2019, the National Law on Social Solidarity and Productive Reactivation (Law No. 27, 541) (the “Solidarity Law”) was enacted. The Solidarity Law granted the national government power until 31 December 2021 to impose export duties which may not exceed certain caps. For example, the Solidarity Law provides that export duties on mining exports cannot exceed eight percent of the taxable value or official FOB price. On 2 October 2020, the national government published Decree No. 785/2020 (the “Export Duties Decree”) which sets an export duty rate of eight percent for certain goods, including doré bars and gold alloys, and revoked the provisions of Decree No. 793/2018 which had previously set the export duty at 12 percent ad valorem. While the Export Duties Decree was set to expire at the end of 2021, on 31 December 2021, the national government published Decree No. 908/2021, extending the deadline of export duties on certain goods, including doré bars and gold alloys, until 31 December 2023. It is uncertain whether the national government is empowered to extend such deadline beyond the date set forth in the Solidarity Law. These export duties, if not compensated with other tax reductions, affect the tax stability guarantee granted to CVSA in 1996 in light of the fact that at the time export duties were zero percent.
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On 26 February 2019, the Argentinean tax and mining authorities published a resolution (RC 4428/2019) establishing an administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2019 Procedure”). CVSA initiated the 2019 Procedure to claim compensation for the export duties it paid in 2018, 2019 and 2020 as export duties are not contemplated by its tax stability guarantee. Prior to the publication of RC 4428/2019, CVSA had already submitted to the tax authorities claims for reimbursement of the export duties it paid from 2008 to 2015.
Pursuant to the 2019 Procedure, the National Mining Secretariat issued favorable opinions regarding CVSA’s claims in respect of fiscal years 2018 and 2019, which amounted to approximately $2.0 million and $6.3 million, respectively, as of 31 December 2022. These claims are currently under review by the relevant customs authorities. On 14 July 2021, CVSA submitted its claim in respect of fiscal year 2020, which amounted to approximately $12.4 million as of 31 December 2022. The National Mining Secretary has not yet issued an opinion regarding this claim.
Furthermore, CVSA has requested the tax authorities to apply the 2019 Procedure in respect of its historical claims for fiscal years 2008 to 2015 during which the imposition of export duties also exceeded CVSA’s total tax burden under its tax stability guarantee. However, these claims, which amounted to approximately $3.1 million as of 31 December 2022, are still being reviewed under the rules to challenge export duties instead of the 2019 Procedure. CVSA has appealed the application of those rules and a decision on this issue is pending.
On 9 June 2022, the Argentinean tax and mining authorities published a resolution (RC 5205/2022) establishing a new administrative procedure to be followed to obtain the reimbursement or compensation of federal taxes paid in excess of the total tax burden provided for by the applicable tax stability guarantee (the “2022 Procedure”). This 2022 Procedure replaces the 2019 Procedure established by RC 4428/2019. On 20 September 2022, CVSA submitted its claim for compensation for the export duties in respect of fiscal year 2021, which amounted to approximately $11.2 million as of 31 December 2022, pursuant to the 2022 Procedure. This claim is currently under review by the National Mining Secretary.
In total, AngloGold Ashanti’s net export duty receivables (after discounting provisions) in Argentina amounted to $9 million as of 31 December 2022.
Environmental laws relating to mining
Any mining company wishing to commence or modify any mining-related activity, as defined by the Argentinean Mining Code, including prospecting, exploration, exploitation, development, preparation, extraction, and storage of mineral substances, as well as property abandonment or mine closure activity, is required to prepare and submit to the competent provincial environmental authority an Environmental Impact Assessment (“EIA”) prior to commencing the work. Each EIA is required to describe the nature of the proposed work, its potential risk to the environment, and the measures that will be taken to mitigate that risk. If accepted by the competent authority, the EIA is used as the basis to create a Declaration of Environmental Impact (“DEI”) to which the mining company is required to adhere during the mining-related activity at issue. The DEI is required to be updated at least on a biannual basis. Sanctions and penalties for non-compliance with the DEI are outlined in the Environmental Protection section of the Argentinean Mining Code, and may include warnings, fines, suspension of quality certifications, obligations to restore the environment, temporary or permanent closure of activities, and withdrawal of authorisation to conduct mining-related activities.
AngloGold Ashanti’s rights and permits
The mining concession holder of Cerro Vanguardia, the Company’s operation in Argentina, is AngloGold Ashanti’s partner, Fomento Minero de Santa Cruz S.E. (“Fomicruz”), which is wholly owned by the Santa Cruz Province. On 27 December 1996, Fomicruz entered into a usufruct agreement whereby CVSA was granted an irrevocable right to exploit the Cerro Vanguardia deposit (encompassing an area of approximately 543 km2) for a 40-year period. The mining licence (402642/CV/97), which covers the full Mineral Reserve, expires on 26 December 2036. CVSA is a corporation incorporated in Argentina indirectly controlled by AngloGold Ashanti (92.5 percent), with Fomicruz as minority shareholder (7.5 percent). On 14 August 1996, CVSA obtained its tax, customs and foreign exchange stability certificate, which expires in 2026.
Brazil
General laws relating to mining and land ownership
The Brazilian Constitution of 1934 states that, for purposes of exploration and exploitation, deposits and other Mineral Resources constitute property separate from the soil and belong to the Federal Union. Exploration and exploitation of such Mineral Resources may take place only with the Federal Union’s concession and in such a way as to protect the national interest. Federal law sets out penal and administrative sanctions for conduct and activities deemed harmful to the environment.
In Brazil, the National Mining Agency (“ANM”) is the state body within the Mines and Energy Ministry (“MME”) that is responsible for: (i) the registration of mining titles, (ii) the grant of authorisations and concessions, (iii) the supervision of mining activities and mining titleholders, and (iv) the issuance of supplementary rules in relation to mining activity.
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Under the current Brazilian Mining Code, there are two kinds of mines: (i) claimstake mines (minas manifestadas), for which rights were acquired before 1934 and exist independently of any mining licence or authorisation from the Federal Government and for which the Mineral Resources constitute property of the landowner, and (ii) granted mines, which are those that rely on grants from the Federal Government for mineral exploration or exploitation (pursuant to the Brazilian Constitution of 1988). AngloGold Ashanti’s operations in Brazil consist of both claimstake mines and granted mines.
Mining activities in granted mines must be performed in two defined stages: (i) exploration, which entails defining and evaluating the deposit and determining the feasibility of exploitation, and (ii) exploitation, which involves coordinating operations aimed at the industrial exploitation of the mineral deposit, from the extraction of useful minerals to their processing. Exploration authorisations issued by the ANM are valid for one to four years. One extension can be obtained automatically as long as it is justified. For more than one extension, the extension request will have to satisfy specific legal requirements. In contrast, exploitation rights, once granted, are valid for the lifetime of the deposit, provided the mining titleholder complies with all legal requirements. Pursuant to these requirements, for example, titleholders must (i) start work on mineral exploitation within six months from the date of publication of the Exploitation Concession, (ii) continue their mining activities until the mineral deposit has been exhausted, in accordance with the Economic Exploitation Plan (Plano de Aproveitamento Econômico) approved by the ANM, and (iii) refrain from suspending mining activities without prior notice to the ANM.
Tax laws relating to mining
During the exploration period, the mining titleholder has to pay an Annual Rate per Hectare (Taxa Annual por Hectare or “TAH”), subject to a maximum value set by law. In the exploitation period, regardless of the legal regime governing the project (whether claimstake or granted mines), the mining titleholder has to pay the Financial Compensation for Exploiting Mineral Resources (Compensação Financeira pela Exploração Mineral or “CFEM”). The CFEM which is 1.5 percent for gold is currently calculated based on revenues.
At the end of 2011 and the beginning of 2012, the states of Minas Gerais, Pará, Amapá and Mato Grosso do Sul each created a new “inspection and control” tax (duty) on extraction and exploration activities as well as on the use of Mineral Resource carried out in those states. In the state of Minas Gerais, gold ore and silver ore are exempted from the collection of this new duty. At the end of 2020, the state of Goiás created a new “inspection and control” tax (duty) on extraction and exploration activities carried out in this state, which currently still needs to be implemented. The constitutionality of these “inspection and control” taxes was upheld by the Supreme Court of Brazil on 1 August 2022.
Environmental laws relating to mining
Following the catastrophic failure of a tailings storage facility (“TSF”) at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, executive, legislative and judiciary bodies, both at the federal and state levels, have generally increased scrutiny of mining operations in Brazil, and of TSFs in particular, and have been considering, and in some cases have adopted, stricter laws and regulations applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs in Brazil.
At the federal level, the ANM issued Resolution No. 13/19 in August 2019 (replacing its earlier Resolution No. 4/19) which adopted additional regulatory measures to ensure the stability of TSFs, in particular those built or heightened by the upstream method or by any method declared as “unknown”. Among other things, ANM Resolution No. 13/19 prohibits the upstream method for the construction or heightening of tailings dams throughout the national territory of Brazil. It further requires operators to cease all storage and disposal activities at TSFs (known as “deactivation” or “desativação”) constructed or heightened upstream or by an “unknown” method by 15 September 2021 as well as to decommission such TSFs by 15 September 2022 to 15 September 2027 (depending on the capacity volume). To comply with the terms of ANM Resolution No. 13/19, the Serra Grande tailings dam in the state of Goiás must be decommissioned by 15 September 2025. The Serra Grande mine completed the process of reinforcing the dam walls of its upstream TSF, deactivating the TSF and migrating to dry-stacking operations, each by the 15 September 2021 deadline.
Furthermore, Federal Law No. 14.066/20, adopted in October 2020, also imposes requirements on companies to decommission upstream TSFs, including the Serra Grande tailings dam, by 25 February 2022 (which date is earlier than required by ANM Resolution No. 13/19). However, Federal Law No. 14.066/20 does permit extensions of the compliance deadline, with the consent of the ANM based on the technical plan for decommissioning. Serra Grande submitted timely requests to obtain an extension of the compliance deadline until 2025 in line with the timeline set forth in ANM Resolution No. 13/19 and presented its technical plan for decommissioning. On 26 May 2022, the ANM issued a technical note allowing the extension until 2025. With respect to downstream (or “centerline”) TSFs, Federal Law No. 14.066/20 requires companies, to the extent that communities are located in the self-rescue zone of those TSFs, to implement one of the following measures for such structures: either (i) the structure must be deactivated and decommissioned, (ii) the population must be relocated, with reparations for loss of cultural heritage, or (iii) reinforcement works that guarantee the effective stability of the structure must be carried out, by decision of the public authorities, taking into account the previous nature of the dam in relation to the occupation and technical-financial viability of the alternatives. Even if reinforcement works are completed, deactivation and decommissioning of those TSFs will be required at the end of the life of the mine. All of the TSFs operated by AngloGold Ashanti in Brazil have communities located in self-rescue zones.
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As of 31 December 2022, AngloGold Ashanti has fully transitioned to dry-stacking operations for tailings storage at each location in Brazil. Capital expenditures required in 2022 to implement this new technology amounted to approximately $83 million. Capital expenditures for work required to comply with TSF-related requirements during the period 2023-2025 are expected to be material but, based on preliminary estimates to date, AngloGold Ashanti anticipates that annual expenditures for each of these years will be less than in prior years and will decline over time. Neither ANM Resolution No. 13/19 nor Federal Law No. 14.066/20 requires removal of all tailings material in connection with the decommissioning of TSFs (a process known as “decharacterisation” or “descaracterização”).
At the state level, the state legislator in the state of Minas Gerais adopted Law No. 23.291/19 in February 2019 which contains the state’s policy on TSF safety and should be implemented in conjunction with the equivalent federal policy. Among other things, Law No. 23.291/19 determines the criteria for licensing and inspecting TSF structures, prohibits TSFs constructed or heightened using the upstream method, establishes bond requirements and holds management liable for non-compliance with its provisions. The government of Minas Gerais adopted several decrees in furtherance of this legislation.
In addition, ANM Resolution No. 95/22, which became effective on 22 February 2022, effectively consolidates prior federal resolutions on TSFs, including ANM Resolution No. 13/19, and establishes new criteria for the operational units, namely Tropicanamanagement of TSF structures, changes the criteria related to the risk classification of TSF structures and emergency levels and sets new criteria for the suspension, embargo (order to stop operations) and interdiction of TSF activities. Operators of TSFs were mandated to conduct and submit risk assessments to the ANM by December 2022 and are required to update those risk assessments every two years. Operators are also required, on an annual basis, to obtain certifications from external consultants of the geotechnical stability of TSF structures and the adequacy of emergency response plans. In late 2022, tailings deposition was required to be suspended due to embargos at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (Declaração de Conformidade e Operacionalidade (“DCO”)) as well as, at one such TSF, certification by external consultants of geotechnical stability (Declaração de Condição de Estabilidade (“DCE”)) consistent with the new standards. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. Construction at the Calcinados TSF is expected to begin later in 2023, and the timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. Tailings deposition at the Calcinados TSF, as well as processing of gold concentrate at the Queiroz plant, which services the Cuiabá mine complex, is suspended until additional buttressing of the Calcinados TSF impoundment is complete.
On 1 December 2022, the ANM published ANM Resolution No. 122/22, which relates to administrative sanctions for non-compliance with mining and dam safety regulations and which, in addition to significantly increasing the values of applicable fines and penalties, establishes procedures and parameters for available sanctions including seizures of ore, goods and equipment, suspension of mining activities, demolition of mine infrastructure and invalidation or cancellation of title and exploration licences.
Further amendments to the regulatory requirements in Brazil governing such TSFs and related dams are expected to be adopted in 2023.
AngloGold Ashanti’s rights and permits
At AGA Mineraçao, Cuiabá has a single mining concession (No. 000.323/1973) covering a total area of 3,662 hectares. In February 2022, two additional mining concessions for Cuiabá (Nos. 830.937/1979 and 831.027/1980) were published, which cover an additional area of 816.2 hectares. Lamego has a single mining concession (No. 932.710/2017) covering a total area of 1,622 hectares. Córrego do Sítio is hosted by five geographically contiguous mining concessions (i.e., Nos. 930.556/2000, 930.181/2008, 830.129/1982, 833.472/2003 and 830.943/1979) covering a total area of 6,017 hectares.
At Serra Grande, the Company has interests in or agreements over 25,719.94 hectares in the Crixás greenstone belt, representing approximately 87 percent of the relevant tenements that correspond to all current exploration and mining activities. These have been held since 1987. The mining concessions include mining concession No. 002.286/1935 covering an area of 4,206.88 hectares, mining concession No. 960.658/1987 covering an area of 1,946.89 hectares, mining concession No. 860.746/2005 covering an area of 88.28 hectares, mining concession No. 862.103/1994 covering an area of 125.41 hectares and mining concession No. 804.366/1975 covering an area of 196.05 hectares.
All of the Company’s mining concessions in Brazil are currently active, in good legal and operational standing, and free of liabilities and/or major obligations. Brazilian mining concessions remain valid up to the depletion of the Mineral Reserve and Mineral Resource pursuant to the Economic Exploitation Plan approved by the ANM and in accordance with the required environmental permits, and as a result do not have an explicit expiry date.
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Colombia
General laws relating to mining and land ownership
General regime
The Colombian Constitution declares that the sub-soil and the non-renewable natural resources located within the Colombian territory are the property of the Colombian State. The underlying principle of Colombian mining legislation for the granting of mining concession contracts over free areas is first in time, first in law. Mining activities are regulated by the Colombian Mining Code, Act 685, 2001.
The filing of an exploration and exploitation proposal triggers a right of preference to obtain rights over the targeted area, provided it is available. Such area cannot exceed 10,000 hectares. Upon receipt of a proposal, the relevant government agency determines whether another proposal or contract already governs the area. If there are no pre-existing claims, the government agency grants the applicant a “free area”.
With respect to land ownership, a mining concession in Colombia does not grant the rights over the surface required to develop a mining project. Therefore, in order to develop a mining project, it is required to acquire and secure access to the land (soil). This can be achieved in several ways, such as (i) purchase of the land, (ii) a transit easement, (iii) a mining easement, and (iv) the special acquisition process or expropriation.
Concession contract
As the sub-soil and the non-renewable natural resources located within the Colombian territory are property of the Colombian State, the Colombian Mining Authority (Agencia Nacional de Minería) grants the authorisation to explore and exploit minerals through a concession contract.
Such concessions allow concessionaires to conduct the studies, works and facilities necessary to establish the existence of minerals and to organise their exploitation. Upon being awarded a mining concession, a company must take out an insurance policy to cover the costs associated with potential environmental damage as well as breaches of its mining obligations. It may then proceed with exploration activities. Once the exploration phase is complete, the concessionaire files a new plan regarding proposed works and facilities. With the award of the mining concession or tenement contract, there are specified timelines for the completion of the various phases of a mining project, e.g. exploration, construction, exploitation. The company must comply with these timelines unless performance is suspended, for example, due to force majeure or these timelines are extended or modified. A grant of force majeure is for one year and must be renewed on an annual basis. If the company does not comply with the specified timelines for the completion of the various phases of a mining project, the mining authority may revoke the company's concession contracts or mining licences. As a general matter, any company that wishes to obtain a renewal of its concession contract must be up to date in all its legal and contractual obligations and must present a new plan of works and facilities to be implemented after the contract is renewed.
PINES programme
In 2013, the national government instituted the PINES programme designed to aid promoting certain projects that are deemed to have a national interest. This designation provides for greater oversight from the national government. All of our three advanced exploration projects (La Colosa, Quebradona and Gramalote) were considered of national strategic interest. Currently, Quebradona and Gramalote remain in the PINES programme, but La Colosa was temporarily removed as such (until the force majeure is over).
Tax laws relating to mining
From the moment the concession contract is registered with the Mining Register, the concessionaire has several financial obligations, including the payment of (i) a surface fee during the exploration, construction and assembly stage and (ii) royalties.
Once exploration is complete and the mining infrastructure in place, the concessionaire must begin paying royalties to the Colombian government, consisting of a percentage of the primary product and sub-products being exploited. The percentage of the royalty depends on the regulation in force when the concession contract is registered. In the case of the Quebradona project, the deposit mainly consists of copper followed by gold and silver. There is a five percent royalty for copper on the production value at the mine’s or well’s edge (i.e. when extracted from the subsoil). In case of gold and silver, a royalty of four percent on the production valued at the mine’s or well’s edge (i.e. when extracted from the subsoil) was established.
Furthermore, Colombian law establishes that once the environmental licence is granted the concessionaire must invest one percent of the project’s value to benefit the basins covered by the environmental licence.
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Environmental laws relating to mining
In order to obtain an authorisation to carry out a mining project, a company must prepare an Environmental Impact Study (“EIA”) for approval by the National Environmental Licensing Authority of Colombia (Autoridad Nacional de Licencias Ambientales or “ANLA”). Global environmental licences are granted for the entire life of the project and cover all phases: construction, assembly, operation, maintenance, dismantling, final restoration, abandonment and/or termination. Construction and assembly permits (Plan de Trabajos y Obras or “PTO”) are granted by the mining authority with jurisdiction over the project.
In Colombia, the mining authority has the discretion to declare the underlying concession void if the specific company which holds the concession breaches applicable environmental laws or regulations. If the mining authority were to exercise such discretion, a company whose concession was voided would be required to abandon its projects and all of its other existing mining concession contracts. Pending proposals for new mining concession contracts would also be cancelled and the company would be banned from doing business with the Colombian government for a period of five years. As a result, the company would be unable to conduct any mining exploration or development activities during such period. However, this would not affect other subsidiaries of the company operating in Colombia, if those concession contracts are held singularly or in concert with joint venture partners.
Mining activity is prohibited in national parks, regional parks, protected forest reserves, paramos (included in Act 1753, introduced in 2015) and wetlands, pursuant to the Ramsar Convention on Wetlands of International Importance. Some forest reserves are not “protected” but are set aside for active forestry purposes and the concessionaire must obtain a specific permit to partially and temporarily change the use of the soil before pursuing exploration activities. In addition, Resolution 1987/2016, passed by the national government in late 2016, identifies areas that the Ministry of the Environment has determined to be “paramos” areas, or paramos transition areas. In these areas there are limitations on industrial or commercial work being performed, including mining. The regulation also specifies a process to determine what work, if any, can be performed in a paramos-designated area.
AngloGold Ashanti’s rights and permits
The La Colosa project managed by AngloGold Ashanti Colombia S.A.S. (“AGA Colombia”) remains in force majeure due to delays in granting environmental permits by national and local environmental authorities, thereby preventing AGA Colombia from undertaking further exploration activities. The most recent one-year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on 22 June 2023. AGA Colombia applied for a mining area integration (consolidation) of its concession contracts related to La Colosa, in respect of which AGA Colombia was not in compliance with some of the specified timelines. The application for mining area integration (consolidation) was approved in March 2017, which remedied the non-compliance of each consolidated concession and reset the specified timelines. La Colosa now has a single integrated mining concession contract (EIG-163) which covers a total area of 9,210 hectares and expires on 28 February 2037.
Minera de Cobre Quebradona S.A.S. B.I.C. (“MCQ”) which manages the Quebradona project, obtained the integration of concession agreement 5881 in October 2016 and registered in December 2016. As a result, MCQ was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area. MCQ has the right to request an extension of up to 30 years, at least two years before the expiration of the operating period. This extension is not automatic, and the request must be filed with new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Concession contract 5881 initially covered a total area of 7,593 hectares, which was reduced to 4,881.89 hectares by the relevant mining authority (Secretaría de Minas de Antioquia) on 4 March 2022. It will expire in May 2037 and is currently in its seventh year of the integrated exploration phase. In September 2021, the permits for the construction and mining operation were approved by the relevant mining authority (Secretaría de Minas de Antioquia). On 4 November 2021, ANLA officially notified AngloGold Ashanti of its decision to ‘archive’ the environmental licence application relating to the Quebradona project. ANLA has neither denied nor granted the licence, but deemed that the information provided by AngloGold Ashanti is not enough for this authority to take a substantive decision. On 18 November 2021, AngloGold Ashanti appealed the archiving decision in order to secure further details on the specific additional information ANLA requires to make a determination. ANLA denied the appeal on 29 April 2022 and the archiving decision was confirmed. AngloGold Ashanti is in the process of preparing a new Environmental Impact Assessment for the Quebradona project to submit to ANLA in connection with its environmental licence application.
The Gramalote project is organised as a joint operation between AngloGold Ashanti (through AGA Colombia Holdings Limited and AngloGold Ashanti Holdings plc) and B2Gold (through B2Gold Corp. and Graminvest Ventures Limited). Gramalote Limited, a company incorporated under the laws of British Virgin Islands which is the legal vehicle operating the joint operation, established a Colombian branch, Gramalote Colombia Limited (“GCL”), to carry out activities in Colombia and obtain the mining concession contracts necessary to develop the Gramalote project. The Gramalote joint operation has been operated by B2Gold since January 2020. Pursuant to an integrated mining concession contract No. 14292, GCL was granted the exclusive right to explore, take ownership and dispose of the mineral reserves (ore) extracted from the concession area (which covers a total area of 8,720.71 hectares and includes the Gramalote and Monjas anomalies) until April 2043. GCL has the right to request an extension of the operating period for up to 20 years, and, if exercised, such request to extend must include new technical, economic, environmental and social studies that demonstrate the status of the mineral resources. Currently, concession contract
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No. 14292 is in the phase of construction and assembly, pending resettlement of communities and the formal start of construction activities. GCL has received an environmental licence granted by ANLA and permits for the construction and mining operation which were approved by the relevant mining authority (Secretaría de Minas de Antioquia). GCL also holds an exploration concession No. 4894 (which covers a total area of 2,279.32 hectares and includes the Trinidad anomaly) which expires in 2044 and an exploration concession No. QHQ-16081 (which covers a total area of 9.78 hectares) which expires in 2052. Following the completion of the feasibility study in the second half of 2022, AngloGold Ashanti and B2Gold determined that the Gramalote project does not meet their investment thresholds for development. Following a comprehensive review of the alternatives relating to the project, both joint operation parties commenced a joint sales process for the Gramalote project, which is currently ongoing.
United States of America (Nevada)
General laws relating to mining and land ownership
General regime
Mineral and surface rights in the United States are owned by private parties, state governments or the federal government. The majority of land utilised for precious metals exploration, development and mining in the western United States is owned by the federal government. The right to mine on such federal land in western states is governed by the U.S. General Mining Law of 1872, as amended (the “General Mining Law”), as well as relevant state statutes and regulations. The General Mining Law allows mining claims (for mining and mining-related activities) on certain federal lands after proper compliance with claim location and maintenance requirements.
Mineral exploration activities in Nevada are also generally subject to applicable federal, state, and local permitting requirements, but the specific regulatory authorisations required for the company’s activities are based on the nature and location of the exploratory work. Many of the company’s Nevada operations are currently conducted under what is generally referred to under federal law as a notice-level operation subject to 43 CFR § 3809.21, while projects that are more advanced require additional permitting, including a Plan of Operations approved by the federal Bureau of Land Management (“BLM”). The State of Nevada Division of Environmental Protection’s Bureau of Mining Regulation and Reclamation (“BMRR”) also regulates mining within the state of Nevada. However, exploration projects of five acres or less on federal land, the scope of a notice-level operation under federal law, are exempt from BMRR regulation. Certain of the company’s early-stage exploration activities fall within this exemption.
The company is currently engaged in exploration activities on certain of its unpatented claims that include, but are not limited to, geological and spectral mapping, surface geochemical sampling, geophysical surveying and RC and/or diamond drilling.
Potential regulatory changes
Over the years, the U.S. Congress has considered a number of proposed amendments to the General Mining Law and other federal statutes relating to mining. Among the significant features contained in previously proposed legislation were a production royalty obligation, new and more stringent environmental standards and conditions, additional reclamation requirements, extensive new procedural steps which would likely result in extended permitting timelines, and granting counties and other entities the ability to petition the U.S. Secretary of the Interior to make certain areas unavailable for the location of unpatented mining claims. In June 2020, former President Trump signed an executive order directing certain federal agencies to streamline the review processes associated with permitting of infrastructure and natural resources projects. Many of those policies have subsequently been rescinded by the Biden administration. While certain other executive orders may favorably affect the timing of our permit and project approvals, the impact is yet to be determined and remains uncertain.
There are a number of bills being proposed to the Nevada state legislature during the 2023 legislative session that could impact the company’s planned operations. These include proposed legislation that would alter the way water rights are administered by the state, as well as a bill that would, if enacted, impose additional requirements for environmental review of mineral development projects in Nevada. At this stage, it is not possible to evaluate whether these bills will be enacted in any form by the Nevada state legislature or, if passed, what impact any might have on AGA.
AGA is currently unaware of any other new federal or state legislative or regulatory changes or rule-making that has been proposed or enacted that would adversely affect its current exploration programmes. If any requirements, standards or conditions were adopted in the future that imposed additional or new obligations or costs on AGA in connection with our exploration or extraction activities in the United States, the company’s operations in Nevada could be adversely affected.
AngloGold Ashanti’s rights and permits
In Nevada, the company’s wholly-owned subsidiaries hold a significant number of unpatented mining claims on federal lands. The Silicon project consists of approximately 950 unpatented mining claims. The North Bullfrog project consists of 45 patented and approximately 1,600 unpatented mining claims (covering approximately 32,000 acres) situated in the Bullfrog mining district. There are also nine mining leases within the North Bullfrog project the majority of which continue in perpetuity so long as the company meets certain minimal requirements for use of the land. One mining lease is scheduled to expire in 2031. The Mother
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Lode project consists of 13 unpatented mining claims. The North Bullfrog and Mother Lode projects are now controlled by the company as a result of its acquisition of all of the outstanding stock of Corvus Gold Inc., which closed on 18 January 2022. The southern claim block, encompassing the Sterling mine and other properties in the same general area, consists of approximately 1,900 unpatented claims (covering approximately 35,000 acres), which are now controlled by the company as a result of its acquisition of all of the outstanding stock of Coeur Sterling, Inc. (a subsidiary of Coeur Mining, Inc.), which closed on 4 November 2022. As a result of this acquisition, the company now controls a past-producing mine site in southern Nevada known as the Sterling mine, which has one applicable mining lease that expires in 2029, with the option to extend the lease for an additional ten-year period. Although the Sterling mine is currently in care and maintenance status, it remains subject to complex permitting and regulatory requirements, including compliance with relevant provisions of the U.S. Federal Mine Safety and Health Act of 1977 and oversight by the U.S. Department of Labor’s Mine Safety and Health Administration (“MSHA”).
MINE SITE REHABILITATION AND CLOSURE
Closure, an integral part of operations
All mining operations eventually cease. An integral aspect of operating AngloGold Ashanti’s mines is ongoing planning for site closure and, where feasible, implementation of concurrent rehabilitation, together with an estimate of associated liability costs and the placement of adequate financial provisions and assurances to cover these costs.
AngloGold Ashanti integrates mine closure planning throughout the mine life cycle as follows:
•Exploration stage: developing a plan and programme for cessation and closure of exploration activities in a manner that meets local laws and AngloGold Ashanti's mine closure planning standard.
•Project phase: developing conceptual closure plans and cost estimates for all projects and including them in project feasibility studies, designs and evaluations.
•Operational phase: developing and periodically updating mine closure plans and cost estimates with increasing levels of detail and confidence over the operational phase as part of the business planning process. Closure plan updates take into account operational conditions, planning and regulatory requirements as well as advances in technology and international industry good practice (e.g., the ICMM Integrated Mine Closure Good Practice Guide). Concurrent rehabilitation, which is carried out while a mine is still operational, is a good practice that serves to decrease the final rehabilitation and closure work as well as the ultimate liability.
•Closure period: implementing the final closure plan starting at cessation of operations through a period of decommissioning, dismantling and rehabilitation until the point in time where management of the site is largely limited to monitoring and maintenance.
The Company’s group mine closure planning standard stipulates that closure planning must be undertaken in consultation with the stakeholders. In the course of these consultations, different issues are raised which require site-specific solutions. Each mine closure plan includes a social transition plan which seeks to minimise social impacts and maximise opportunities for local communities, including human resource, social infrastructure, economic and financial assets with the aim of enhancing the self-sustainability of mine communities after mine closure.
Provisions for decommissioning and restoration costs are made when there is a present obligation, it is probable that expenditure on decommissioning and restoration work will be required and the cost can be estimated within a reasonable range of possible outcomes. These costs are based on currently available facts, technology expected to be available at the time of the rehabilitation, laws and regulations presently or virtually certain to be enacted and previous experience in the rehabilitation of mine sites.
Decommissioning costs and restoration costs are provided at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. Estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures) decreased by $95 million from $673 million in 2021 to $578 million in 2022. This decrease was mainly due to changes in estimates resulting from changes in discount rates, changes in global economic assumptions, changes in mine plans resulting in a change in cash flows as well as changes in the design of TSFs.
SUSTAINABILITY AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) MATTERS
AngloGold Ashanti’s sustainability approach is fundamental to how the Company operates its business, as well as its ability to create long-term value for its shareholders, employees and social partners through safely and responsibly exploring, mining and marketing its products. Sustainability and safety are integrated into the Company’s business and operations at all levels through various frameworks, standards and policies, and the Company measures its performance in achieving its goals against its sustainability and other ESG metrics, as well as its engagement with stakeholders.
In mitigating the risks and impacts that are an inherent part of its business, AngloGold Ashanti is informed by an annual assessment of its key ESG issues. This process is aligned with guidance published by the International Integrated Reporting Council (“IIRC”), the Sustainability Accounting Standards Board (“SASB”), the Global Reporting Initiative (“GRI”) Standards and
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the Accountability AA1000 Stakeholder Management Standard. This assessment is annually reviewed by AngloGold Ashanti’s senior leadership and approved by the Social, Ethics and Sustainability Committee (the “SES Committee”).
AngloGold Ashanti’s board of directors, assisted by the SES Committee, has ultimate responsibility over environmental, safety, health and ethical matters and for the integration of sustainability objectives into AngloGold Ashanti’s business. This includes oversight of the Company’s stakeholder engagement framework and structures, which apply to investors, employees, governments, suppliers and communities, at every stage of its business from exploration to mine closure. Group Corporate Affairs and Sustainability is responsible for development of management systems and supports the Company’s general managers in the day-to-day implementation of its sustainability strategy.
AngloGold Ashanti maintains a set of policies and procedures to guide the Company in acting as a responsible corporate citizen, including the Code of Business Principles and Ethics which sets requirements for the implementation of key corporate policies and guidelines and applies to all management and employees, and to maintain compliance with applicable environmental, health and safety (“EHS”) laws. In 2022, AngloGold Ashanti continued with the implementation of the Integrated Sustainability Information Management System (“iSIMS”), in order to improve internal reporting and better integrate, manage and monitor sustainability activities with respect to its broader business. This common management and reporting application for all sustainability disciplines, from safety, health and security to community and environmental management, is expected to help provide timely information in each of these areas, and to facilitate transparency and decision-making in its processes and practices.
Significant EHS requirements and ESG risks and trends affecting the Company’s mining and processing operations are described below.
EHS Regulatory Compliance
AngloGold Ashanti is subject to extensive EHS laws and regulations in the various jurisdictions in which the Company operates. These requirements govern, among other things, extraction, use, conservation and discharge of water; air emissions (including dust control and greenhouse gases (“GHGs”)); mine and dam safety, regulatory and community reporting; clean-up of contamination; land use and conservation of protected areas; rehabilitation and closure of mined land; worker health and safety and community health; and the generation, transportation, storage and disposal of solid and hazardous wastes, such as reagents, radioactive materials, and mine tailings. Environmental laws and regulations applicable to the Company’s operations, including the requirements contained in environmental permits, are generally becoming more restrictive.
Capital and operating costs to comply with EHS laws and regulations have been, and are expected to continue to be, significant to AngloGold Ashanti. In addition, AngloGold Ashanti could incur fines, penalties and other sanctions, environmental clean-up costs, and third-party claims for personal injury or property or natural resources damages; suffer reputational damage; and be required to install costly pollution control equipment or to modify or suspend facilities, such as TSFs, or operations, as a result of actual or alleged violations of, or liabilities under, EHS laws and regulations. Failure to comply with applicable EHS laws and regulations may also result in the suspension or revocation of permits and, in some jurisdictions, the right to mine a given concession. AngloGold Ashanti’s ability to obtain and maintain permits and other approvals and to successfully operate near host communities may be adversely impacted by real or perceived effects on the environment or human health and safety associated with AngloGold Ashanti’s or other mining companies’ activities. In addition, unknown environmental hazards may exist at the Company’s properties which may have been caused by previous owners or operators.
Water Management
AngloGold Ashanti’s operations are heavily dependent upon access to substantial volumes of water for use in the mining and extractive processes and typically are subject to water-use permits or rights to extract water from certain natural sources that govern usage and require, among other things, that mining operations maintain certain water quality upon discharge. Water supply, quality and usage are areas of concern across all of the Company’s operations, including with respect to the Company’s mining operations in Ghana and Brazil, its mine development projects in Nevada, as well as its mine development project at Quebradona in Colombia. Any failure by the Company to secure access to suitable water supplies, or achieve and maintain compliance with applicable requirements of the permits or licences, could result in curtailment or halting of production at the affected operations. Incidents of water pollution or shortage can, in certain cases, lead to community protest and ultimately to the withdrawal of community and government support for AngloGold Ashanti’s operations. A failure by the Company to comply with water contamination related directives may result in further, more stringent, directives being issued against the Company, which may, in some cases, result in a temporary or partial shutdown of some of the Company’s operations.
Where feasible, the Company operates a “closed loop” system which recycles the water used in its operations without discharging it to the environment. In some areas, however, such as Ghana and Brazil, high levels of rainfall and surface water runoff mean that a closed loop system is not feasible and that discharges, after water treatment where necessary, must take place.
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Waste Management
During open-pit mining, large volumes of soil and/or rock (overburden) are mined to expose the ore body. Similarly, waste rock is mined during drilling and developing access to underground ore bodies. Overburden and waste rock typically contain sub-economic levels of gold and are deposited as large waste rock facilities. Mine tailings are the process waste generated once grinding and extraction of gold from the ore is completed in the milling process and are typically deposited as slurry in large tailing storage facilities (“TSFs”) specifically designed for this purpose.
The impact of dust generation, breach, leak, or other failure of a waste rock facility or TSF, including any associated dam, can be significant, and the Company therefore monitors such facilities closely in accordance with the Company’s internal standards, independent review, national regulatory requirements, industry standards and commitments made to local communities. The occasional well-publicised failure of a third-party TSF and the potential impact of such failure also mean that these facilities are generally tightly regulated. A safety or environmental incident at the Company’s operations could result, among other things, in enforcement, including mandatory shutdown of a TSF and related facilities, obligations to remediate environmental contamination, negative press coverage, and claims for property or natural resources damages and personal injury by adjacent communities. Incidents at other mining companies’ operations could result in governmental action to tighten regulatory requirements and restrict certain mining activities, in particular with respect to TSFs, also in respect of other mine operators in that region.
For example, following the catastrophic failure of a TSF at the Córrego do Feijão iron ore mine owned by Vale at Brumadinho in the state of Minas Gerais in Brazil in January 2019, tailings were discharged into the mine’s administrative area and part of the local community, reportedly resulting in death or injury to hundreds of people. As a result of this incident, there has been considerably increased regulatory scrutiny in Brazil and other areas on mining operations generally, and the requirements applicable to the approval, licensing, construction, management, closure and decommissioning of TSFs have generally become far more stringent. For example, in late 2022, tailings deposition was suspended at five of AngloGold Ashanti’s TSFs in Brazil pending certification by external consultants of on-site emergency response plans (“DCO”) and/or geotechnical stability (“DCE”) consistent with new regulatory standards enacted in early 2022. In addition, at the Calcinados TSF, a risk assessment conducted in December 2022 with oversight from external consultants, as required by Brazilian regulations, concluded that additional buttressing should be completed to align the TSF’s post liquefaction factor of safety with international standards currently considered best practice. The timeline for completion will be determined once the engineering and geotechnical work has been completed by external consultants. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
In addition, a new Global Industry Standard on Tailings Management (“GISTM”) was established in August 2020 by a panel comprised of industry and non-governmental organisation (“NGO”) experts. AngloGold Ashanti has committed to comply with the GISTM at all of its TSFs by August 2025, and the costs related to meeting such standard are not expected to be material to AngloGold Ashanti.
In addition, AngloGold Ashanti could incur liabilities, or material costs to manage solid and hazardous waste generated by its mining activities, including dust and residual chemicals and metals. For example, AngloGold Ashanti expects to incur approximately $25 million to $30 million in capital expenditure and operating costs during 2023-2026 in connection with treatment and disposal of a quantity of legacy arsenic trioxide waste located at the Obuasi mine.
Groundwater Impacts and Environmental Remediation
As AngloGold Ashanti or its predecessors have a long history of mining operations in certain regions, issues may arise regarding historical, as well as potential future, environmental or health impacts in those areas, for which AGA, as the current owner/operator, may be legally responsible. For example, AngloGold Ashanti has identified groundwater contamination plumes at certain of its operations. Numerous scientific, technical and legal studies have been undertaken to assist in determining the magnitude of the impact and to find sustainable remediation solutions. Based on those studies as well as discussion with regulators, the Company has taken steps, including monitored natural attenuation and phyto-technologies, to address soil and groundwater contamination, including in Tanzania, where an in-situ remediation project to address sulfate in groundwater commenced operations in 2022.
Subject to the completion of site-specific trials and potential technologies being confirmed as viable remediation techniques, no reliable estimate can be made at this time for the obligation. Should these obligations be significant, this could have a material adverse impact upon AngloGold Ashanti’s results and its financial condition.
Climate Change and GHG Regulation
At AngloGold Ashanti, climate change is a board of directors-level governance issue, overseen by the SES Committee and the Audit and Risk Committee. AngloGold Ashanti’s Climate Change Strategy, which was approved by the board of directors in November 2021, seeks to embed the management of physical, regulatory and transition climate change-related risks, as well as climate change-related opportunities, into the Company’s strategic and operational planning processes.
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In 2021, AngloGold Ashanti committed to the International Council on Mining & Metals (“ICMM”) target of achieving net zero Scope 1 and Scope 2 GHG emissions by 2050. AngloGold Ashanti has also committed to achieving a 30 percent reduction in absolute Scope 1 and 2 emissions by 2030 (as compared to a 2021 baseline), and, in partnership with value chain partners, to set Scope 3 GHG reduction targets, if not by the end of 2023, as soon as possible thereafter.
In December 2015, certain members of the international community negotiated a treaty at the Conference of the Parties of the UN Framework Convention on Climate Change in Paris (the “Paris Agreement”). The Paris Agreement, which came into force on 4 November 2016, requires developed countries to set targets for emissions reductions. As a result, measures designed to limit or reduce GHG emissions, both mandatory and voluntary, have been, and are expected to be, implemented at national or regional levels in various countries.
New regulatory requirements, or changes required to effectively transition to a low-carbon economy, could require AngloGold Ashanti to reduce its direct GHG emissions or energy use, change its fuel mix or incur significant costs for GHG emissions permits or taxes, including for those costs or taxes passed on by electricity utilities which supply the Company’s operations. AngloGold Ashanti could also incur significant costs associated with capital equipment, GHG monitoring and reporting and other obligations to comply with applicable requirements. The most likely source of these obligations is through nation state-level implementation of new emissions or financial obligations pursuant to evolving climate change regulatory regimes.
For example, in 2010, Brazil launched the National Climate Change Policy, which established a voluntary national GHG reduction target of 36.1 percent to 38.9 percent below the projected emissions in 2020 for “business as usual”. The policy required the development of sector-specific plans in order to meet the target and provided for a Brazilian GHG trading scheme, which is yet to be designed. While Brazil is not yet requiring mandatory GHG emissions reporting at the national level, some state environmental agencies have requested companies to voluntarily submit GHG emissions management plans. However, the states of Goiás and Minas Gerais (in which AngloGold Ashanti operates) do not currently require GHG emissions management plans for mining projects. In 2015, Brazil announced, in connection with its commitments under the Paris Agreement, economy-wide absolute mitigation targets providing for a 37 percent reduction in GHG emissions by 2025, as compared to 2005, and a goal to reduce GHG emissions by 43 percent by 2030 compared to 2005 levels.
In addition, in Australia, the Safeguard Mechanism (Rule 2015), through the National Greenhouse and Energy Reporting (“NGER”) scheme, provides a framework for Australia’s largest emitters to measure, report and manage their emissions. The Safeguard Mechanism applies to facilities with Scope 1 covered GHG emissions of more than 100,000 tonnes of CO2e per fiscal year. During the 2018/19 fiscal year, Tropicana’s emissions were within its authorised threshold and Sunrise Dam. TheyDam was required to purchase offsets for emissions that were 0.8 percent above its safeguard threshold, the cost of which was immaterial. Two amendments to the Safeguard Mechanism (Rule 2015) enacted in March 2019 and May 2020 allowed for the application of transitional calculated baselines using estimated CO2-e emissions intensities. Based on the production and emissions forecasts, the Australian mining operations applied to use transitional calculated baselines in 2020 for Sunrise Dam and Tropicana, which were approved by the Clean Energy Regulator effective 1 July 2019 to 30 June 2022 for both operations. Thereafter, the Australian mining operations will be required to apply production-adjusted baselines and, if actual emissions exceed the baseline, to purchase emissions offsets for the business. In any event, the cost of such offsets, if ultimately required to be purchased, including due to a change in the operations under the business plan prior to June 2022, are bothnot expected to be material to the Company’s business.
In addition to more stringent requirements and commitments, AngloGold Ashanti’s operations are subject to a number of physical risks from climate change, such as changes in rainfall rates or patterns resulting in floods or droughts, reduced water availability, higher temperatures and extreme weather events. Such events or conditions, particularly including flooding or inadequate water supplies, could disrupt mining and transport operations, mineral processing and rehabilitation efforts, create resource or energy shortages or damage the Company’s property or equipment and increase health and safety risks on site. In consultation with external consultants, physical climate risk assessments were undertaken for all operations using current climate models for the business and various decarbonisation scenarios and climate adaptation plans were outlined. These physical climate risks will be further reviewed and refined in 2023.
Occupational Safety and Health
AngloGold Ashanti is subject to a variety of laws and regulations in each of the jurisdictions where the Company operates that are designed to protect and improve the safety and health of employees. In some of the jurisdictions in which AngloGold Ashanti operates, the government enforces compulsory shutdowns of operations to enable investigations into the cause of accidents and introduce corrective measures at those operations.
Safety remains a priority for AngloGold Ashanti and a focus of AngloGold Ashanti’s long-term sustainability approach, as well as the Company’s continuing efforts to manage the risks inherent to its operations, to model critical controls and to strengthen safety protocols and preventative measures. AngloGold Ashanti has made significant strides in improving safety. In 2022, there was a 41 percent reduction in year-on-year total recordable injury frequency rate, and no fatalities at any of the mines operated by AngloGold Ashanti.
AngloGold Ashanti’s Group Safety Strategy, which is updated every three years, seeks to integrate operational risk management and key performance indicators at all levels of the organisation and maintain alignment with global safety standards. The SES
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Committee oversees the implementation of the Group Safety Strategy. All operations, have been certified to ISO 45001:2018, which has replaced the OHSAS 18001:2007 series.
Community Health and Tropical Diseases
AngloGold Ashanti is also subject to health and safety regulations relating to occupational disease. The primary areas of focus in respect of occupational health of employees within the Company’s operations are noise-induced hearing loss (“NIHL”) and occupational lung diseases (“OLD”). OLD includes occupational tuberculosis and silicosis in individuals exposed to silica dust. Silicosis has been particularly prevalent in South Africa and has also arisen at the Company’s Africa region and Brazilian operations, albeit to a far lesser extent. AngloGold Ashanti provides occupational health services to its employees at its occupational health centres, clinics, and through outsourced service centres. The Company continues to expand preventative occupational hygiene initiatives, such as implementing various control measures to prevent hazardous exposures, and providing employees with Personal Protective Equipment.
In 2019, the Johannesburg High Court approved the settlement of existing silicosis and tuberculosis class actions against AngloGold Ashanti and other gold mining companies in South Africa. The recent sale of the Company’s South African operating assets and liabilities did not include the silicosis or tuberculosis settlement obligations relating to South African employees, which were retained by AngloGold Ashanti. For further information, see “Item 18: Financial Statements—Note 1.2—Statement of Compliance—Significant Accounting Judgements and Estimates—Provision for silicosis”.
In addition to OLD, HIV and AIDS and associated diseases remain major health care challenges faced by AngloGold Ashanti’s Africa region operations. AngloGold Ashanti continues to implement programmes to help those infected with HIV and prevent new infections from spreading.
Malaria and other tropical diseases also pose health risks at all of the Company’s operations in Central, West and East Africa where such diseases may assume epidemic proportions because of ineffective national control programmes. Malaria is a major cause of death in young children and pregnant women and also gives rise to deaths and absenteeism in adults. All affected Company operations in Africa have malaria control programmes in place. The Ghana Obuasi malaria control programme activities have been completed in 16 districts of Ghana as planned for 2022 and a new cycle of indoor residual spraying will commence in 2023; in partnership with the Global Fund and the Ghana Department of Health.
In 2022, the COVID-19 pandemic subsided significantly with decreases in reporting of severe disease or deaths. Nevertheless, AngloGold Ashanti continued to direct resources for close surveillance and maintenance of controls within the company with a view to ensure continuity of its operations and avoid any potential disruption in the event of a re-emergence of the pandemic. Universal access to safe and effective vaccines provided an additional layer of protection, especially against severe forms of disease, hospitalisation and death. The company endeavoured to continue to provide prompt access to approved and available vaccines for all workers, especially employees considered to be at high risk as well as employees with critical skills.
The emergence of COVID-19 however also assisted to better integrate broad health risk management beyond occupational health into the overall business strategy, to contribute to productivity as well as the social licence to operate and to improve various prevention and risk management protocols in place to address the potential risk of an epidemic or pandemic, particularly after the company’s experience with Ebola in Guinea in 2014 and 2015.
The company focused on optimising mental wellbeing, minimising non-communicable diseases associated with lifestyle as well as the need for systematic contribution to health system strengthening, local skill development and overall community development in the jurisdictions in which it operates. Such risks impair the health of workers and negatively affect productivity and profitability as a result of workers’ diminished focus or skill, absenteeism, treatment costs and allocated resources. As part of AngloGold Ashanti’s continuing efforts, the company recently approved the newly updated health, hygiene and wellbeing standards based on identified major health hazards or risks which include gender, cultural and other applicable diversity considerations for risk management and controls.
Diversity and Inclusion (“D&I”)
With more than 30,000 employees (including contractor employees) on four continents, AngloGold Ashanti believes that having a diverse and inclusive workforce is important to continuing to attract talent in order to maintain competitiveness and the long-term sustainability of its business. In addition, the Company strives to have a workforce that represents the societies in which AngloGold Ashanti operates in connection with maintaining its social licence to operate.
AngloGold Ashanti’s D&I approach is aligned to the United Nation Sustainable Development Goals (“UNSDGs”) (SDG 5, 8 and 10) and the United Nations Global Compact (“UNGC”). The Company has developed a Diversity & Inclusion Framework, which aims to foster the empowerment of all staff, irrespective of race, gender, ethnicity, religion and sexual orientation and has established specific priorities and actions for the next two to five years to foster the inclusion of D&I objectives in its processes. Leadership teams are responsible for meeting defined diversity targets. In 2022, AngloGold Ashanti conducted an analysis of global gender data across job level, function and country. The analysis was carried out to inform AngloGold Ashanti’s D&I strategy.
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Human Rights and Indigenous Peoples
In its commitment to respecting and promoting human rights, AngloGold Ashanti supports the United Nations Guiding Principles for Business and Human Rights (“UNGP”) and other international initiatives, including the UNGC and the Voluntary Principles on Security and Human Rights (“VPSHR”). The VPSHR, which seeks to balance safety and security needs against respect for human rights and fundamental freedoms, were developed through multi-stakeholder participation between governments, extractive industry members and NGOs. Community and security related matters, including with respect to illegal and artisanal and small-scale mining and related intrusions into the Company’s operational areas, are addressed at board of directors-level by the SES Committee. AngloGold Ashanti’s internal Human Rights Framework includes numerous policies, management standards and guidance documents which apply to all of its employees, contractors and suppliers and require reporting of, and redress for, human rights violations and related allegations.
The Company is aligned with the ICMM Position Statement on Indigenous Peoples and the International Finance Corporation’s Performance Standard 7 on Indigenous Peoples and other international standards and treaties in the area of Indigenous Peoples’ rights.
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ANGLOGOLD ASHANTI GLOBAL FOOTPRINT: 2022
Operations and projects
Notes
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc. ("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
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OPERATING PERFORMANCE
Group description
AngloGold Ashanti is an independent global gold mining company with a diverse high-quality portfolio of operations, projects and exploration activities and is headquartered in Johannesburg, South Africa.
In 2022, our portfolio of ten operations in seven countries includes long-life operating assets with differing ore body types located in Westernkey gold-producing regions around the world. These operating assets were supported by greenfields projects in Colombia and a focused global exploration programme, including exploration in the United States.
Our operations and projects are grouped into the following regions: Africa, Americas and Australia.
AngloGold Ashanti’s operations and joint arrangements employed, on average, 32,594 people (including contractors) in 2022 (2021: 30,561).
Performance
In 2022, AngloGold Ashanti produced attributable 2.742 million ounces of gold (2021: 2.472 million ounces), as well as 3.2 million ounces of silver and 352 tonnes of sulphuric acid as by-products.
Production of 2.742 million ounces of gold was achieved in 2022 at a cost of sales of $3.4 billion for subsidiaries and $342 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,439 per ounce for subsidiaries and $979 per ounce for equity-accounted joint venture operations, compared to a production of 2.472 million ounces in 2021 at a cost of sales of $2.9 billion for subsidiaries and $350 million for equity-accounted joint venture operations, and an all-in sustaining cost of $1,441 per ounce for subsidiaries and $856 per ounce for equity-accounted joint venture operations.
Gold
The AngloGold Ashanti gold Mineral Reserve increased from 28.1 million ounces as at 31 December 2021 to 28.8 million ounces as at 31 December 2022. This excludes Gramalote as the JV partner has decided not to publish the Mineral Reserve. This annual net increase of 0.7 million ounces includes additions due to exploration and modelling changes of 2.9 million ounces and changes in economic assumptions of 1.0 million ounces. This increase was partially offset by depletion of 2.9 million ounces and reductions due to other factors of 0.3 million ounces. The Mineral Reserve was estimated using a gold price of $1,400 per ounce, unless otherwise stated (2021: $1,200 per ounce). See “Item 4D Property, Plants and Equipment—Mineral Resource and Mineral Reserve”.
Copper
The AngloGold Ashanti copper Mineral Reserveremained unchanged at 1.47Mt (3,250Mlb) as at 31 December 2022 as a feasibility study optimisation is still ongoing and no additional exploration has been completed at Quebradona. The Mineral Reserve was estimated at a copper price of $2.90/lb, unless otherwise stated (2021: $2.90/lb). See “Item 4D Property, Plants and Equipment—Mineral Resource and Mineral Reserve”.
Capital expenditure, including equity-accounted joint ventures, in 2022 amounted to $1,118 million (2021: $1,100 million).
Safety
No fatal occupational safety incidents at any of the mines operated by the Company were recorded for 2022. The TRIFR was 1.26 per million hours worked in 2022 compared to 2.14 per million hours worked in 2021.
Full Asset Potential Review Programme
The Full Asset Potential (“FP”) programme aims to achieve a step-change in AngloGold Ashanti’s operating and cost performance by the year 2024. This programme includes a comprehensive three-month assessment of each of the Company’s mine sites, which covers every aspect of an operation. The outcome is intended to enhance the Company’s understanding of the relative potential of each asset and includes developing a plan and implementation schedule to achieve the targeted performance over the next six to 24 months. These assessments have now been completed at six operations of the Company (Sunrise Dam, Siguiri, Cuiabá, Tropicana, Serra Grande and Geita), where the relevant site leadership teams have taken full accountability for the delivery on these initiatives.
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Operational Excellence
Operational Excellence is the continued efforts to maximise value from our assets.
New Operating Model
Our new Operating Model, designed and introduced to employees towards the end of 2021, aims to improve efficiency and support better operating outcomes by focusing only on work required to deliver the strategy, clarifying the mandates of corporate functions, properly resourcing our revenue-generating assets to deliver on their plans, and removing duplicate structures and activities. The implementation of the new Operating Model was completed during 2022.
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AFRICA REGION
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Africa is currently home to five of our operations, with one – Kibali – managed by Barrick Gold Corporation. These operations, which contributed 60 percent or 1.6 million ounces to total annual group production in 2022, are in Ghana (Iduapriem and Obuasi), Guinea (Siguiri), Tanzania (Geita) and the DRC (Kibali).
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Subsidiary operations | |||||||||||
| Ghana | |||||||||||
| Iduapriem | 248 | 2,186 | |||||||||
| Obuasi | 250 | 4,403 | |||||||||
| Guinea | |||||||||||
| Attr. Siguiri 85% | 279 | 4,052 | |||||||||
| Tanzania | |||||||||||
| Geita | 521 | 6,435 | |||||||||
| Joint venture operations | |||||||||||
| Democratic Republic of the Congo | |||||||||||
| Attr. Kibali 45% | 337 | 2,731 | |||||||||
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Africa Region - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Restated | |||||||||||||||||||||||
| Subsidiary operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 21.6 | 21.2 | 20.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.044 | 0.035 | 0.034 | |||||||||||||||||||
| g/t | 1.516 | 1.193 | 1.160 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.054 | 0.045 | 0.052 | |||||||||||||||||||
| g/t | 1.86 | 1.54 | 1.77 | ||||||||||||||||||||
Gold production (a) (attributable) | 000oz | 1,298 | 1,054 | 1,239 | |||||||||||||||||||
| Cost of sales | $m | 1,662 | 1,300 | 1,362 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,023 | 991 | 841 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,291 | 1,264 | 1,002 | |||||||||||||||||||
| Capital expenditure | $m | 486 | 434 | 383 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 2 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 0.33 | 0.61 | 0.55 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 17,076 | 14,806 | 14,496 | ||||||||||||||||||||
| Permanent employees | 5,780 | 5,619 | 5,433 | ||||||||||||||||||||
| Contractors | 11,296 | 9,187 | 9,063 | ||||||||||||||||||||
(a) Includes Obuasi gold production in 2020, capitalised as part of the project development.
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Joint venture operations | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 3.5 | 3.5 | 3.4 | |||||||||||||||||||
| Pay limit | oz/t | 0.054 | 0.048 | 0.048 | |||||||||||||||||||
| g/t | 1.850 | 1.652 | 1.640 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.087 | 0.095 | 0.096 | |||||||||||||||||||
| g/t | 2.98 | 3.25 | 3.29 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 337 | 365 | 364 | |||||||||||||||||||
| Cost of sales | $m | 342 | 350 | 340 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 725 | 647 | 629 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 979 | 856 | 810 | |||||||||||||||||||
| Capital expenditure | $m | 90 | 72 | 52 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 2,731 | 2,454 | 2,333 | ||||||||||||||||||||
| Permanent employees | 957 | 860 | 824 | ||||||||||||||||||||
| Contractors | 1,774 | 1,594 | 1,509 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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Performance summary
Production for the Africa region was up 15 percent for the year ended 31 December 2022 at 1.635 million ounces compared to 1.419 million ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities at any of the mines operated by the Company and a TRIFR of 0.33 per million hours worked was recorded (2021: 0.61 per million hours worked).
Regional community investment totalled $10.19 million (2021: $10.5 million).
With Obuasi having received its ISO 45001 (health and safety) certification, all our Africa operations are now certified in terms of ISO 45001, ISO 14001 (environmental management) and the International Cyanide Management Code.
We continued integration of the new Operating Model, the existing Operational Excellence programme, and the Full Asset Potential (FP) review programme launched during 2021.
In the second half of 2022, Geita was part of the FP review programme designed to enhance understanding of the relative potential of each asset and includes developing a plan and implementation schedule to achieve the targeted performance over the next six to 24 months.
Siguiri was the first of the African operations to be involved in the FP review programme with the leadership team focusing on increasing the volume of high-grade oxide ore from Block 2. This increase was successful and is reflected in the year-on-year increase in production. We are starting to see the benefits of the FP review programme at Siguiri and a second contractor was hired to deliver higher volumes of higher-grade oxide ore from Block 2.
For more information regarding production performance in the Africa region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Africa region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”
For more information regarding capital expenditure in the Africa region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”
Obuasi update
Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress.
In 2022, the project achieved the following milestones: hoisting via the KMS rock shaft in November 2022; pumping to drop the water level below 50 level; commissioning of the material handling system from 44 level to surface; completing the new ventilation shaft pilot hole and progressing the KMS shaft down to 44 level.
The Obuasi mine continues on the ramp-up path to its full production run-rate in excess of 400,000 ounces.
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THE AMERICAS
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The Americas hosts three of our operations – one in Argentina and two in Brazil – as well as greenfields projects in Colombia and a significant new greenfields development in Nevada in the United States.
| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
1. Argentina | |||||||||||
| Cerro Vanguardia (Attr. 92.5%) | 170 | 1,819 | |||||||||
2. Brazil | |||||||||||
| AGA Mineração | 311 | 5,702 | |||||||||
| Serra Grande | 88 | 1,977 | |||||||||
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Americas - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 7.1 | 7.8 | 7.5 | |||||||||||||||||||
| Pay limit | oz/t | 0.10 | 0.10 | 0.07 | |||||||||||||||||||
| g/t | 3.52 | 3.49 | 2.46 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.070 | 0.066 | 0.081 | |||||||||||||||||||
| g/t | 2.40 | 2.27 | 2.77 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 569 | 559 | 649 | |||||||||||||||||||
| Silver production (attributable) | Moz | 3.2 | 3.4 | 3.3 | |||||||||||||||||||
| Cost of sales | $m | 913 | 822 | 764 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,078 | 921 | 721 | |||||||||||||||||||
All-in sustaining costs per ounce (1) | $/oz | 1,718 | 1,587 | 1,003 | |||||||||||||||||||
Capital expenditure (2) | $m | 339 | 398 | 216 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 1 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 2.33 | 3.55 | 3.68 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 9,498 | 9,972 | 8,789 | ||||||||||||||||||||
| Permanent employees | 6,093 | 6,452 | 6,158 | ||||||||||||||||||||
| Contractors | 3,405 | 3,520 | 2,631 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
(2)100 percent (not attributable) and includes Projects.
Performance summary
Production for the Americas region was up two percent for the year ended 31 December 2022 at 569,000 ounces compared to 559,000 ounces for the year ended 31 December 2021.
Safety – no occupational fatalities and the TRIFR improved to 2.33 per million hours worked (2021: 3.55 per million hours worked).
Community investment amounted to $6.4 million (2021: $5.8 million).
All operations in the Americas maintained their certification in terms of International Cyanide Management Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
During the second half of 2022, Cuiabá and Serra Grande completed assessments to identify performance improvement initiatives as part of the FP review programme. The FP programme initiatives implemented at Cuiabá have seen ore tonnes consistently above full potential target. At Serra Grande, the FP team identified several enhancement opportunities and it is following implementation plans with timelines for delivery.
In December 2022, the company suspended filtered tailings deposition on the Calcinados TSF and processing of gold concentrate at the Queiroz plant (both of which service the Cuiabá mine complex). For further information, refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil” and “Item 3D: Risk Factors—Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply with these requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti's financial condition, results of operations and reputation”.
For more information regarding production performance in the Americas region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Americas region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Americas region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
Nevada strategy
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In Nevada, during 2022, AngloGold Ashanti’s project team integrated the Corvus Gold assets and project data into the AngloGold Ashanti evaluation framework. The Company completed planning for feasibility study work at North Bullfrog and also commenced a pre-feasibility study at Silicon along with further drilling at the Merlin deposit. Following the acquisition of Coeur Sterling’s mining properties in the fourth quarter of 2022, AngloGold Ashanti’s project team commenced integrating these assets into the broader evaluation studies.
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AUSTRALIA
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| Attributable gold production (000oz) | Average number of employees | ||||||||||
| Operations | |||||||||||
| Australia | |||||||||||
| 1. Sunrise Dam | 232 | 725 | |||||||||
| 2. Tropicana 70% | 306 | 807 | |||||||||
The two AngloGold Ashanti operations in Australia are Sunrise Dam and Tropicana, both of which are in the north-eastern goldfields in the state of Western Australia. Sunrise Dam is wholly owned. We have a 70 percent holding in, and manage, Tropicana. Regis Resources Ltd, our partner in Tropicana, holds the balance. Sunrise Dam includes the Butcher Well project (70 percent).
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Australia - Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 10.7 | 10.5 | 10.2 | |||||||||||||||||||
| Pay limit | oz/t | 0.05 | 0.06 | 0.06 | |||||||||||||||||||
| g/t | 1.69 | 1.89 | 1.95 | ||||||||||||||||||||
| Recovered grade | oz/t | 0.050 | 0.047 | 0.054 | |||||||||||||||||||
| g/t | 1.56 | 1.47 | 1.68 | ||||||||||||||||||||
| Gold production (attributable) | 000oz | 538 | 494 | 554 | |||||||||||||||||||
| Cost of sales | $m | 783 | 740 | 705 | |||||||||||||||||||
Total cash costs per ounce (1) | $/oz | 1,157 | 1,196 | 968 | |||||||||||||||||||
All-in sustaining costs per ounce(1) | $/oz | 1,345 | 1,500 | 1,225 | |||||||||||||||||||
| Capital expenditure | $m | 202 | 185 | 142 | |||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 0 | 0 | 0 | ||||||||||||||||||||
| TRIFR | Per million hours worked | 3.82 | 6.59 | 3.74 | |||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 1,532 | 1,332 | 1,230 | ||||||||||||||||||||
| Permanent employees | 314 | 288 | 259 | ||||||||||||||||||||
| Contractors | 1,218 | 1,044 | 971 | ||||||||||||||||||||
(1)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
Performance summary
Production for the Australia region was up nine percent for the year ended 31 December 2022 at 538,000 ounces compared to 494,000 ounces for the year ended 31 December 2021.
Safety performance improved – there were no occupational fatalities and a TRIFR of 3.82 per million hours worked was recorded (2021: 6.59 per million hours worked).
Regional community investment amounted to $0.99 million (2021: $1.01 million).
Sunrise Dam and Tropicana are certified under the Cyanide Code, ISO 45000 (health and safety) and ISO 14001 (environmental management).
The first site to complete an assessment as part of the FP review programme was Sunrise Dam, where the biggest opportunity is to increase productivity in development and achieve a step-change in underground production. The proposed improvements include an underground workshop to lift jumbo utilisation and improvements to planning and scheduling which, together are expected to support an increase in underground volumes. During the second half of 2022, Tropicana also completed an assessment to identify performance improvement initiatives as part of the FP review programme.
For more information regarding production performance in the Australia region, refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
For more information regarding operating performance in the Australia region, refer to “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021”.
For more information regarding capital expenditure in the Australia region, refer to “Item 5A: Operating Results—Comparison of capital expenditure in 2022, 2021 and 2020—Comparison of capital expenditure in 2022 with 2021”.
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SOUTH AFRICA
| ||
The sale of the South African assets to Harmony closed on 30 September 2020. As a result, the figures in this section relate
to the nine months ended on 30 September 2020, unless the context indicates otherwise.
South Africa Key Statistics
| Unit | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Operation | |||||||||||||||||||||||
| Tonnes treated/milled | Mt | 0.4 | |||||||||||||||||||||
Pay limit (1) | oz/t | 0.40 | |||||||||||||||||||||
| g/t | 14.60 | ||||||||||||||||||||||
Recovered grade (1) | oz/t | 0.120 | |||||||||||||||||||||
| g/t | 3.75 | ||||||||||||||||||||||
| Gold production | 000oz | 241 | |||||||||||||||||||||
| Cost of sales | $m | 287 | |||||||||||||||||||||
Total cash costs per ounce (2) | $/oz | 1,149 | |||||||||||||||||||||
All-in sustaining costs per ounce(2) | $/oz | 1,296 | |||||||||||||||||||||
| Capital expenditure | $m | 35 | |||||||||||||||||||||
| Safety | |||||||||||||||||||||||
| Number of fatalities | 4 | ||||||||||||||||||||||
| TRIFR | Per million hours worked | 6.12 | |||||||||||||||||||||
| People | |||||||||||||||||||||||
| Average no of employees: Total | 8,297 | ||||||||||||||||||||||
| Permanent employees | 7,012 | ||||||||||||||||||||||
| Contractors | 1,285 | ||||||||||||||||||||||
(1)Refers to underground operations only.
(2)“Total cash costs per ounce” and “all-in sustaining costs per ounce” are non-GAAP measures. For further information on these non-GAAP measures, see “Item 5A: Operating Results—Non-GAAP analysis”.
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EXPLORATION REVIEW
Our greenfields exploration programmes are designed to discover new Mineral Resource that will ultimately lead to the development of new, stand-alone gold mines and support the sustainability of our business.
In 2022, the Silicon and Merlin prospects in Nevada were handed over to our Beatty project team, following which the greenfields exploration team refocused its efforts on the discovery of the next significant project to add to the AngloGold Ashanti portfolio.
Greenfields exploration
In 2022, $29 million was spent on greenfields exploration. Our greenfields exploration tenements cover over 9,500km2 of highly prospective ground in six countries – Australia, Argentina, Brazil, Guinea, Tanzania, and the United States.
Americas
In the United States, following the handover of the Silicon discovery to the Beatty Project team in the first quarter of 2022, the greenfields exploration function shifted its focus to seven, 100 percent-owned, earlier-stage greenfields projects located elsewhere in the Great Basin of Nevada. Work completed at these various projects included prospect mapping, surface sampling and geophysical surveys. Diamond drilling is planned for the Midnight Star and CR projects during 2023.
In Brazil, 1,330 stream sediments, 1,200 soil samples and 1,060 rock chip samples were collected. From the SBB terrane in the state of Minas Gerais, four districts have been identified by stream sediment sampling. Infill sampling is in progress to define projects in these districts. At the WBC terrane, which is located in the state of Matto Grosso do Sul to the south-west of Minas Gerais, one project has been advanced and will be considered for drilling in 2023.
In Argentina, an option agreement was signed with Latin Metals for the Organullo project in Salta Province. Work completed since June 2022 included soil sampling, mapping, acquisition of various spectral data sets and community engagement. At the 100 percent-held El Cori project, four drilling targets were identified from surface exploration.
Africa
In Guinea, we received six reconnaissance permits for the Shira district in the Siguiri Basin of Guinea. Community engagement work has started and field exploration is scheduled for the first quarter of 2023.
In Tanzania, target generation activities continued.
Australia
In Australia, we carried out exploration work in the Laverton District and, in Queensland, greenfields exploration took place at the Chillagoe and Georgetown projects.
Brownfields exploration
In the Beatty District, brownfields exploration continued at North Bullfrog, and successfully defined and expanded the Silicon and Merlin targets. Elsewhere across our operations, exploration continued, on one hand to add confidence to the mine plans by upgrading the Mineral Resource and on the other to search for new Mineral Resource with a high likelihood for conversion to Mineral Reserve.
In 2022, our brownfields exploration teams across the globe completed 799km of capital and 358km of expensed drilling at a cost of $79 million and $67 million, respectively. The drilled metre achievement was ten percent below the 2022 budget of 1,281km with the gap closing each quarter after slow start ups at a few operations. Total expenditure of $146 million was 12 percent below budget.
Brownfields exploration activities resulting in the most notable economic intercepts, by operation, for 2022 are listed below by region.
Africa
•Geita: The key area drilled was Geita Hill which is split into six blocks. The drilling was conducted from both surface and underground and was designed to upgrade the underground project and to prepare for mining. Other significant intercepts were drilled at Star and Comet underground at Cut 3 and Ridge 8, extending the potential of the underground complex at Star and Comet. Drilling at the Nyamulilima open pit expanded and further defined the mineralisation.
•Obuasi: Drilling at Block 8, Block 10 and Sansu continued to define the limits of mineralisation and prepare these areas for mining. Late in the year drilling started at Cote D’Or examining the potential to open a second mining area.
•Siguiri: The key exploration activities were at Kounkoun (Block 3) where infill and definition drilling continue as part of the overall assessment of Block 3 as a future mining area. Drilling to extend and define the known mineralisation in Blocks 1 and 2 was conducted.
•Kibali: Two notable drilling intercepts, at Mengu Hill and Oere, were recorded during the year.
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Americas
•Cerro Vanguardia: Numerous veins were drilled and later in the year emphasis moved to the northwest of the property and onto the Condor ground.
•AGA Mineração, CdS: Drilling of underground opportunities at both CdS I and II delivered significant intercepts at Sangue De Boi, Mutuca, Rosalino, Pinta Bem and Pneu.
•AGA Mineração, Cuiabá: Drilling to extend the depth extents of Fonte Grande Sul below 21 level continued while at a shallower depth drilling to define the satellite ore bodies continued to deliver.
•Serra Grande: One significant intercept, at Angicão, was drilled during the year.
•Beatty: Definition and infill drilling continued at Silicon and Merlin in Nevada. Drilling at North Bullfrog started to deliver later in the year.
Australia
•Sunrise Dam: The key areas delivering significant intercepts were at Frankie and Vogue as part of programmes designed to define and extend mineralisation in these areas. As is typical of the Sunrise Dam mineralisation, most drilling programmes drilled significant intercepts which reflect the nuggety nature of the mineralisation.
•Tropicana: Successful drilling was aimed at the three underground projects, namely, Boston Shaker, Havana and Tropicana.
While many of the significant economic intersections are for unmined underground opportunities, Nevada is delivering significant intersections that will most likely be excavated through open pit mining.
PROJECTS
Quebradona
Following the decision of Colombia’s national environmental agency (ANLA) in November 2021 to archive the Company’s environmental licence application for the Quebradona project, AngloGold Ashanti filed an appeal seeking to secure further details on the specific additional information required for ANLA to make a decision on AngloGold Ashanti’s licence submission. On 29 April 2022, ANLA dismissed the appeal and confirmed its decision to archive the Company’s application. AngloGold Ashanti continues to review and analyse the additional information identified as part of ANLA’s decision. The objective is to prepare, submit and process a new environmental licence request for Quebradona following completion of a new environmental impact assessment.
Gramalote
Following completion of the feasibility study on the Gramalote gold project, a joint operation with B2Gold, both partners have determined that the Gramalote project does not meet their investment thresholds for development. The project continues to benefit from federal and local government support as well as continuing support from local communities.
AngloGold Ashanti and B2Gold have completed a comprehensive review of the alternatives and consider that it would be in the best interest of all stakeholders for a new party to own the Gramalote project. The partners appointed a corporate advisor in the fourth quarter of 2022 to assist with the sale process for the Gramalote project, which is currently ongoing.
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4C. ORGANISATIONAL STRUCTURE
GROUP STRUCTURE
AngloGold Ashanti’s operations are divided into the following regions:
•Africa — operations in Ghana, Guinea and Tanzania and a joint venture operation in the DRC;
•Australia — operations in Australia; and
•Americas — operations in Argentina and Brazil, and exploration projects in the United States and Colombia.
The above regions correspond to AngloGold Ashanti’s business segments. The South Africa region is recognised for financial statement purposes as discontinued operations as we sold our remaining South African producing assets and related liabilities in 2020. In addition, a new segment, Projects has been introduced from the implementation of the new Operating Model (previously reported under the America’s segment). The Projects segment comprises all the major non-sustaining capital projects with the potential to be developed into operating entities.
Day-to-day management of the Group is entrusted to AngloGold Ashanti’s executive management team, chaired by the Chief Executive Officer. See “Item 6: Directors, Senior Management and Employees”.
Support is provided to the executive management team in managing AngloGold Ashanti’s corporate activities at both the central and local levels.
SUBSIDIARIES
AngloGold Ashanti Limited has investments in principal subsidiaries and joint venture interests, see “Item 19: Exhibits to Form 20-F—Exhibit 19.8 List of AngloGold Ashanti Limited subsidiaries” for details.
On 16 March 2023, AngloGold Ashanti and Gold Fields announced that they have agreed the key terms of a proposed joint venture in Ghana between Gold Fields' Tarkwa and AngloGold Ashanti's neighbouring Iduapriem Mines (the “Proposed Joint Venture”). There can be no certainty that the parties will enter into a definitive agreement with respect to the Proposed Joint Venture or about the timing, terms and conditions of any such definitive agreement. Implementation of the Proposed Joint Venture is subject to, among other matters, reaching agreement with the Government of Ghana regarding the Proposed Joint Venture, conclusion of confirmatory due diligence and securing all requisite regulatory approvals. For further information, refer to “Item 18: Financial Statements—Note 35—Subsequent Events”.
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4D. PROPERTY, PLANTS AND EQUIPMENT
Locations of properties
Notes:
(1) Gramalote is managed by B2Gold Corp ("B2Gold").
(2) AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold Inc.("Corvus Gold") acquisition in January 2022.
(3) AngloGold Ashanti acquired Sterling (which includes the Crown Block deposits of SNA, Secret Pass and Daisy) through the Coeur Sterling, Inc. ("Coeur Sterling") acquisition in November 2022.
(4) Kibali is operated by Barrick Gold Corporation ("Barrick").
The locations of AngloGold Ashanti’s properties are shown above. Percentages indicate the ownership interest held by AngloGold Ashanti. All operations are 100 percent wholly-owned unless otherwise indicated.
Overview of mining properties and operations
The overview for each mining property is disclosed below and includes information on the following items:
•Location of the properties;
•For each material property, locality maps showing the location of such properties as well as infrastructure and licences;
•Type and amount of ownership interests;
•Identity of the operator or operators;
•Titles, mineral rights, leases or options and acreage involved;
•Stages of the properties (exploration, development or production);
•Key permit conditions;
•Mine types and mineralisation styles; and
•Processing plants and other available facilities.
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Please refer to “Item 5A: Operating Results—Key factors affecting results—Production in 2022” for the aggregate annual production for each of the Company's mining properties during each of the fiscal years ended 31 December 2022, 2021 and 2020. For more information about AngloGold Ashanti’s mines, including a summary of the Company’s titles, mining rights, leases and licences with acreage, please refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine”.
In its annual report on Form 20-F for the fiscal year ended 31 December 2021, AngloGold Ashanti complied for the first time with the new mining property disclosure requirements for mining registrants set forth in Subpart 1300 of Regulation S-K (17 CFR § 229.1300) (“Regulation S-K 1300”) and reported on, and filed Technical Report Summaries for, all of its mining properties. During 2022, AngloGold Ashanti developed a process to determine which properties are material to its business or financial condition for purposes of the individual property disclosure requirements of Item 1304 of Regulation S-K (17 CFR § 229.1304). The key considerations taken into account by AngloGold Ashanti in its materiality assessment include (i) certain quantitative factors such as contribution to the Mineral Resource and Mineral Reserve, actual and planned production and Net Present Value, as well as (ii) certain qualitative factors, which are assessed in the context of the Company’s overall business and financial condition. The materiality assessment covers all of the Company’s mining properties (regardless of the stage of the mining property) and all of its mining and related activities from exploration through extraction, and will be reviewed by the Company on an annual basis. Based on these considerations, AngloGold Ashanti has determined that its material properties for purposes of Regulation S-K 1300 are Geita, Kibali and Obuasi. With respect to Geita, an updated Technical Report Summary (effective date: 31 December 2022) has been prepared by the relevant Qualified Persons, and is filed as Exhibit 19.15.4 hereto. With respect to Kibali and Obuasi, AngloGold Ashanti has determined that (i) there are no material changes to the Mineral Reserve or Mineral Resource reported in the Technical Report Summaries for these properties (effective date: 31 December 2021) which were filed as exhibits to AngloGold Ashanti’s annual report on Form 20-F for the fiscal year ended 31 December 2021, and (ii) all material assumptions and information pertaining to the disclosure of the Mineral Resource and Mineral Reserve for Kibali and Obuasi remain current in all material respects as of 31 December 2022, based on all facts and circumstances, both quantitative and qualitative. As a result, the Technical Report Summaries for Kibali and Obuasi (effective date: 31 December 2021), which were initially filed as exhibits to AngloGold Ashanti’s annual report on Form 20-F for the fiscal year ended 31 December 2021, are filed as Exhibits 19.15.7 and 19.15.5, respectively, hereto.
AngloGold Ashanti’s operating mines are all accessible by road, although for some, personnel access is better achieved by air.
AngloGold Ashanti’s exploration programmes are based on consistent standards and processes across its portfolio and are guided by peer review. Part of AngloGold Ashanti's investment strategy is focused on exploration drilling and Mineral Reserve development to grow the Mineral Resource and by converting these, the Company allows for expansion of the Mineral Reserve. The process involves identifying the best group of drill targets and prioritising those that have the highest potential for success to be advanced first. Greenfields exploration aims to discover large, high-value Mineral Resource, which will eventually lead to the development of new gold mines. Brownfields exploration focuses on delivering value through accretive additions to the Mineral Reserve at existing mines as well as new discoveries in defined areas around operations.
This annual report on Form 20-F is not being submitted in support of the disclosure of exploration results and therefore no disclosure of drilling or sample results is provided. AngloGold Ashanti has elected not to provide drilling results for its operating mines as drilling at its brownfields operations is generally intended to provide incremental additions, or conversions to already reported Mineral Resource and therefore they are not seen as material. While drilling at the Company’s brownfields operations increases confidence in its Mineral Resource as well as adds LOM extensions, the incremental additions that occur on a yearly basis are not material to that operation or the Company as a whole. In cases where the drilling projects are supporting a non-sustaining addition, these projects are commented on. In the Company’s major greenfields projects, if any single drill result is considered material and may change the reported Mineral Resource significantly then it is reported. Refer to “Item 4B: Business Overview—Exploration review”.
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AFRICA
AngloGold Ashanti has five mining operations within the Africa region:
•Kibali Gold Mine in the Democratic Republic of the Congo ("DRC"), a joint venture (“JV”) between AngloGold Ashanti (45%), Barrick Gold Corporation (“Barrick”) (following its merger with Randgold Resources Limited (“Randgold”)) (45%), and Société Minière de Kilo-Moto S.A. (“SOKIMO”), a state-owned gold mining company (10%);
•Iduapriem Gold Mine ("Iduapriem") and Obuasi Gold Mine ("Obuasi") in Ghana;
•Siguiri Gold Mine (“Siguiri”) in Guinea, co-owned by AngloGold Ashanti (85%) and the government of Guinea (15%); and
•Geita Gold Mine ("GGM" or "Geita") in Tanzania.
Mining is from both open pit and underground, with Obuasi being an underground mine, Iduapriem and Siguiri being open pit mines, and Kibali and Geita being a combination of open pit and underground mines.
DRC
KIBALI
For additional information, please refer to the Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto.
Property description
Kibali is a joint venture co-owned by AngloGold Ashanti (45%), Barrick (45%), and SOKIMO (10%). SOKIMO is wholly-owned by the DRC government. The consolidated lease is made up of ten exploitation permits. The metallurgical plant comprises a twin-circuit sulphide and oxide plant with conventional carbon-in-leach ("CIL"), including gravity recovery as well as a float and ultra-fine grind circuit. Barrick operates the mine, which comprises both open pit and underground operations.
Kibali is a gold mining, processing and exploration project. Operations currently focus on open pit and underground mining. The mine was originally developed and operated by Randgold. Following the completion of the merger of Randgold and Barrick in 2019, Barrick became the operator at Kibali for both exploration and mining. Kibali is currently a production stage property.
Location
Kibali is located in the northeastern part of the DRC near the international borders with Uganda and South Sudan. The mine is located adjacent to the village of Doko, which is located to the west of the lease area. Kibali is approximately 210km by road from Arua and immediately north of the district capital of Watsa. The operational area falls within the administrative territory of Watsa in Haut-Uélé province.
Mineralisation style
Gold deposits of the Kibali district are classified as Archaean orogenic gold deposits. At Kibali, the gold deposits are largely hosted in siliciclastic rocks, banded iron formations (“BIFs”) and chert that were deformed, altered and transposed during several events. This occurred at or near greenschist metamorphic conditions. Ore-forming H2O-CO2-rich fluids migrated along a linked network of gently northeast-dipping shears and north-northeast plunging fold axes that are commonly referred to as the KZ Trend. The auriferous KZ Trend is a complexly deformed fault system specifically developed along the boundary between the younger sedimentary basin in the west of the belt that juxtaposes the older rocks to the east. Mineralisation occurred during the later stages of subsequent regional deformation which resulted in inversion of the basin and the development of reverse faults and folds. Ongoing deformation during hydrothermal activity resulted in the development of lodes in a variety of related structural settings within the KZ Trend.
History
On 15 October 2009, AngloGold Ashanti acquired a 50 percent indirect interest in Moto Goldmines Limited through a JV with Randgold, with Moto holding a 70 percent stake in Kibali and the DRC parastatal SOKIMO holding the remaining 30 percent stake. On 21 December 2009, Randgold and AngloGold Ashanti increased their JV interest in Kibali to 90 percent, while SOKIMO retained a 10 percent holding. On 2 January 2019, Randgold merged with Barrick, and the JV is now held by the combined company, trading as Barrick.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Democratic Republic of the Congo (DRC)—AngloGold Ashanti’s rights and permits”.
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Mining method
The operation comprises both open pit and underground mining. Open pit mining is carried out using conventional drill, blast, load and haul surface mining methods. From 2022 onwards, open pit production will come from the Sessenge, Aerodrome, Pamao, Gorumbwa, Megi-Marakeke-Sayi, Kalimva-Ikamva, Oere, Pakaka, and Karagba, Chauffeur and Durba (“KCD”) deposits. Open pit mining is conducted by contractor Kibali Mining Services, a local subsidiary of DTP Terrassement, using either free-dig or conventional drill, blast, load and haul methods.
For the underground operation, longitudinal and transverse longitudinal stoping methods with paste backfill are the nominated mining methods. The Kibali KCD underground mine is designed to extract the KCD deposit directly beneath the KCD open pit. A 50m crown pillar separates the pit bottom from the top of the underground mine. The first gold was poured in September 2013 from the open pit operations and development of the underground mine commenced in the same year. Stoping commenced in 2015 and ore production has ramped up to 3.8Mt in 2022. Initial production was truck hauled by a twin decline to surface. In 2017, the haulage shaft (740m deep) and materials handling system was commissioned. From 2018 onwards, underground ore has predominantly been hoisted up the shaft. The decline to surface will continue to be used to haul some of the shallower zones and to supplement shaft haulage.
Processing plants and other available facilities
Infrastructure in the DRC is generally poor as a result of limited investment in maintenance, upgrades and extensions of the road networks established during colonial times. The mine site is located within 160km of the border with Uganda and all transport links take place through Uganda to Kenya or Tanzania. Access by air to Kibali involves a commercial flight to Entebbe in Uganda followed by a charter flight to Doko airport, situated on the mine property. The Doko airstrip was upgraded by Kibali and is equipped with runway lights and precision approach path indicator lights. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
Kibali is a large-scale gold mining operation, with a number of sources of ore, that has been in operation since 2013. The physical condition of the equipment, facilities, and infrastructure at Kibali is in good working order, with the mine investing heavily in maintaining and upgrading its assets to ensure that they remain reliable and efficient. Surface infrastructure associated with the overall Kibali operation includes a processing plant, tailings storage facility ("TSF"), camp, airstrip, underground shaft, workshops and offices. Power to the mine is self-generated by a combination of hydroelectric and diesel generators. The underground mine has also been extensively developed, with the construction of both shaft and portal and strategically placed development drives that access and further explore the gold-bearing ore.
The “Property, Plant, and Equipment” as of 31 December 2022, including lease assets, buildings and mine infrastructure, mining assets, mineral rights and dumps, decommissioning assets, capitalised exploration costs and deferred stripping, had a carrying value of $983 million (reported as attributable; 45% owned by AngloGold Ashanti).
Mineral processing
The current processing plant can treat both oxide and fresh sulphide material and uses flotation with ultra-fine grind of the flotation concentrate, a treatment that is required for the sulphide ore type before leaching. Kibali has a processing operation capable of producing an average of 730kozpa of gold for 10 years treating at least 7.2Mtpa throughput. The ore is blended using both KCD underground ore plus ore sourced from satellite open pits at Kibali.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Kibali at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,700/oz. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Underground)” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Measured | 7.22 | 3.18 | 22.97 | 0.74 | ||||||||||||
| Indicated | 22.15 | 2.64 | 58.44 | 1.88 | |||||||||||||
| Measured & Indicated | 29.37 | 2.77 | 81.41 | 2.62 | |||||||||||||
| Inferred | 13.16 | 2.61 | 34.43 | 1.11 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To
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reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Based on a gold price of $1,700/oz.
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters (Open Pit and Underground)” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Kibali | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.78 | 1.76 | 2.54 | 0.89 | ||||||||||
| Depletion | (0.01) | — | (0.01) | — | ||||||||||
| Exploration | 0.01 | — | 0.01 | 0.10 | ||||||||||
| Methodology | — | — | — | — | ||||||||||
| Price | 0.03 | 0.16 | 0.19 | 0.13 | ||||||||||
| Cost | (0.01) | (0.02) | (0.03) | (0.02) | ||||||||||
| Geotechnical | (0.07) | (0.02) | (0.09) | — | ||||||||||
| Metallurgical | — | 0.01 | 0.01 | 0.01 | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | — | — | — | ||||||||||
| Current Year | 0.74 | 1.88 | 2.62 | 1.11 | ||||||||||
| Net Difference | (0.04) | 0.12 | 0.08 | 0.22 | ||||||||||
| % Difference | (5) | 7 | 3 | 24 | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
Changes were driven both by exploration and an increase in the Mineral Resource gold price from $1,500/oz as at 31 December 2021 to $1,700/oz as at 31 December 2022, with gains seen from the open pits, specifically Ikamva, Oere and Gorumbwa, as well as from continued definition of the 11000 lode in the KCD underground. A maiden underground Inferred Mineral Resource at Gorumbwa was also reported.
Material Assumptions for the Mineral Resource
Key Parameters (Open Pit and Underground)
| Kibali | |||||||||
| Costs | |||||||||
2.92-3.09(1) | |||||||||
| Extra Ore Cost – Grade Control + Ore – Rehandle + Overhaul | 1.27 | ||||||||
| Grade Control cost | $/tonne mined | 0.75 | |||||||
| Dilution | % | 10 | |||||||
| Ore Loss | % | 3 | |||||||
| Processing cost | $/tonne milled | 15.04-17.85(1) | |||||||
| G&A | $/tonne milled | 8.47 | |||||||
| Other Parameters | |||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | |||||||
| Metallurgical Recovery Factor | %MetRF | 86.1-90.1(1) | |||||||
| Mineral Resource cut-off grade | g/t | 0.6-0.7(1) | |||||||
| Kibali | Unit | Open Pit | ||||||
| Mineral Resource price | $/oz | 1,700 (2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. (1) Vary according to rock type. (2) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
| Kibali | Unit | Underground | ||||||
| Costs | ||||||||
| Mine Production | $/tonne ore mined | 36.17 | ||||||
| Capital | $/tonne ore mined | 3.97 | ||||||
| G&A | $/tonne ore milled | 8.47 | ||||||
| Processing cost | $/tonne ore milled | 17.85 | ||||||
| Other Parameters | ||||||||
| Gold Royalties (4.7%) | $/oz | 70.50 | ||||||
| Mining cut-off grade | g/t | 1.62 | ||||||
| Mineral Resource price | $/oz | 1,700 (1) | ||||||
| Metallurgical Recovery Factor | %MetRF | 90 | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this report, the Qualified Persons have relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
Mineral Resource estimation is undertaken by Barrick in-house technical experts or by approved external consultants. The results of both diamond drilling ("DD") and reverse circulation ("RC") drilling are used in the estimation process. 3D mineralised envelopes are established using grade and geology, and these are then statistically verified to confirm their validity for use in grade estimation. Appropriate domaining of homogeneous zones is conducted whereby high-grade central core areas are modelled separately from the lower-grade surrounding halos. Volumes are filled with block model cells and interpolated for density, rock type and grade – the latter using ordinary kriging.
Grade top cuts and restricted searches are applied to drill hole data to prevent the spread of high-grades during the estimation process. Drill hole spacing is used to guide the Mineral Resource classification. The open pit Mineral Resource is quoted within a limiting shell. The underground Mineral Resource is constrained by the application of optimised mineable Mineral Resource shapes, which applies reasonable mineability constraints including a minimum mining width, a reasonable distance from current or planned development, and a measure of assumed profitability at the related Mineral Resource cut-off grade.
Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Reserve for Kibali at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,300/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Kibali (45 percent) | Proven | 14.49 | 3.47 | 50.33 | 1.62 | ||||||||||||
| Probable | 29.17 | 3.15 | 91.86 | 2.95 | |||||||||||||
| Total | 43.67 | 3.26 | 142.19 | 4.57 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
3.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
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4.Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz).
5.Property currently in a production stage.
6.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Kibali | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.74 | 2.59 | 4.33 | ||||||||
| Depletion | (0.28) | (0.12) | (0.40) | ||||||||
| Exploration | 0.11 | 0.42 | 0.53 | ||||||||
| Methodology | — | — | — | ||||||||
| Price | 0.03 | 0.12 | 0.15 | ||||||||
| Cost | (0.01) | (0.03) | (0.04) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | 0.03 | — | 0.03 | ||||||||
| Other | — | (0.03) | (0.03) | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.62 | 2.95 | 4.57 | ||||||||
| Net Difference | (0.12) | 0.36 | 0.24 | ||||||||
| % Difference | (7) | 14 | 6 | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick.
The increase in Mineral Reserve was primarily as a result of the conversion of the 11000 lode in the KCD underground, and growth in the Ikamva and Oere pits due to exploration successes. The gold price used for pit optimisation changed from $1,200/oz as at 31 December 2021 to $1,300/oz as at 31 December 2022 which also contributed to the increase seen.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Kibali | |||||||
| Primary Commodity Price | $/oz | 1,300(1)(6) | ||||||
| Cut-off grade | g/t | 1.50(3)(5); 1.96(4) | ||||||
| Stoping width | cm | 2990(4) | ||||||
| Dilution | % | 2.0-12.5(4); 10(5) | ||||||
| Mining Recovery Factor | MRF based on tonnes (%) | 91.6(4); 97(5) | ||||||
| Mine Call Factor | MCF (%) | 97 | ||||||
| Metallurgical Recovery Factor | MetRF (%) | 89-90(2) | ||||||
Notes: AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have, relied on information provided by Barrick. (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Kibali (effective date: 31 December 2021) filed as Exhibit 19.15.7 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to rock type. (3) Stockpile. (4) Underground. (5) Open pit. (6) Open Pits and underground were based on a gold price of $1,300/oz, with the exception of the Pamoa Main pit (based on a gold price of $1,400/oz) and the Pamoa South pit (based on a gold price of $1,500/oz). | ||||||||
Estimation
The open pit Mineral Reserve shell optimisations were run on the Mineral Resource models. The process incorporated the mining layout, operating factors, stripping ratio, relevant cut-off grades and modifying factors for
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reporting the Mineral Reserve. An open pit underground interface was set at 5,685 metres relative level (“mRL") between the KCD open pit and underground mine.
A cut-off grade analysis of $1,300/oz was used to determine a cut-off grade of 1.96g/t for the underground mine. Longitudinal and transverse longhole open stoping methods with paste backfill are the current preferred mining methods. Underground stope designs were updated from the previously reported Mineral Reserve using the latest Mineral Resource models. Modifying factors for planned and unplanned rock dilution, backfill dilution and ore loss were applied to obtain the reported Mineral Reserve.
Metallurgical, environmental, social, legal, marketing and economic factors were adequately considered in the Kibali feasibility study and have been updated as the project has developed.
Map showing Kibali planned infrastructure and licences
Below is a map that shows Kibali infrastructure and licences, with the total mining lease area insert shown in the top right corner. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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GHANA
AngloGold Ashanti has two mines in Ghana. Obuasi and Iduapriem are both wholly-owned and operated by AngloGold Ashanti.
Obuasi is an underground mine operating at depths of up to 1,500m with a continuous history of mining dating back to the 1890s. Iduapriem is an open pit mine.
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Obuasi is located 220 kilometres northeastin the Ashanti region of Kalgoorlie and 55 kilometressouthern Ghana, approximately 60km south of LavertonKumasi. Mining was temporarily suspended at the end of 2014 while a series of economic studies progressed. Obuasi underground development restarted in Western Australia. Underground mining,the first half of 2019, with the first gold produced in December 2019. The ramp-up of the redevelopment project was delayed by the temporary stoppage of underground activities after a fall of ground incident in May 2021. Production remained suspended for several months to allow for reviews and investigations, but slowly resumed in the latter part of 2021.
Iduapriem is located in western Ghana, some 85km from the coast and south of Obuasi, near the town of Tarkwa.
OBUASI
For additional information, refer to the Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto.
Property description
Obuasi is wholly-owned by AngloGold Ashanti and is a production stage property. All required mineral rights to the property are held by the Company. The mine is an underground operation, and it has been in operation since 1897 (more than 120 years). It has been operated by AngloGold Ashanti since 2004.
Location
The mine is in the municipality of Obuasi, in the Ashanti region of Ghana, about 240km northwest of the capital, Accra, and 60km south of Kumasi.
Mineralisation style
Geologically, Obuasi is in the Ashanti belt on the eastern margin of the Pre-Cambrian West African craton. This craton consists of Lower Proterozoic volcanic and flysch sediments which make up the Birimian system, overlain in part by the molasse sediments of the Middle Proterozoic Tarkwaian. The Ashanti belt is the most prominent of the five Birimian Supergroup gold belts found in Ghana.
Gold mineralisation is associated with shear zones and pervasive silica, carbonate and sulphide hydrothermal alteration which occur in tightly folded Lower Birimian schists, phyllites, meta-greywackes, and tuffs, along the eastern limb of the Kumasi anticlinorium. They are found near the contact with harder metamorphosed and metasomatically altered intermediate to basic upper Birimian volcanics. There are two broad styles of gold mineralisation including free milling quartz vein gold and sulphide-rich, disseminated and refractory gold which form alteration haloes around the quartz vein lodes. Sulphide mineralisation is dominated by arsenopyrite and quartz mineralisation, which is conductedassociated with spatially variable, but exceptionally high-grade visible gold in quartz veins.
History
Obuasi has a long mining history dating back to 1897. It has been owned and operated by various operators during this time. The current operator became involved in 2004 following the merger of former AngloGold Limited of South Africa and the Ashanti Goldfields Company Limited of Ghana. However, for several years leading up to 2014, the mine began to struggle due to ailing infrastructure and outdated methodologies. The company realised that significant rationalisation and/or replacement of current infrastructure would be necessary to enable the delivery of better utilisation and productivity metrics.
In 2014, a contractfeasibility study commenced that considered the optimum mining company, ismethodology and schedules for the primary sourceunderground mine, based on modern mechanised mining methods and refurbishment of ore,underground, surface and process plant infrastructure. During this time, Obuasi operated in a limited operating phase with supplementary mill feed providedunderground activities essentially restricted to the continued development of the Obuasi deeps decline and underground infill drilling. The limited operating phase was brought to a halt after an incursion by stockpiles. Ore is treated via conventional gravity float, fine grindillegal miners on Obuasi's concession in February 2016, at which point the mine was placed under care and carbon-in-leach (CIL) processing plant, which is owner-managed.maintenance. However, the study continued and in 2017, a favourable feasibility study was completed and indicated a strong technical and economic case with an anticipated 20-year life of mine ("LOM"). In 2018, approval was received from the AngloGold Ashanti board and the government of Ghana to proceed with the project.
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Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.
Mining method
Obuasi is an underground operation, utilising both vertical shafts and declines as main access routes to the underground workings. The mine has seen extensive historical mining commenced in 2003activities with a numbervarying applications of different mining methods being applied, depending onto date. The current LOM design employs mostly the styleLong Hole Open Stoping ("LHOS") mining method for ore extraction. LHOS is a highly selective and productive method of mineralisationmining that can be employed for orebodies of varying thicknesses and gradedips. The main distinct variations of the geological domain.LHOS used at Obuasi are longitudinal retreat stoping (“LRS”), and transverse open stoping (“TOS”). The blind upper stoping is a form of LRS or TOS used for partial sill pillar recovery.
Processing plants and other available facilities
housing estates. Power is supplied to the mine by the Volta River Authority and Ghana Grid Company Limited (“GRIDCo”). There is a focus mine development plan supported by the existing infrastructure, and ongoing upgrades of critical underground infrastructure to sustain the operations. The mine can be accessed by paved road network from Kumasi and by road or chartered air transport from the capital, Accra. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
The “Property, Plant, and Equipment” as of 31 December 2022, including buildings and mine infrastructure, mining assets, decommissioning assets and assets under construction, had a carrying value of $1,009 million.
Mineral processing
The plant is configured for both conventional and flash flotation and BIOX treatment which is required for the refractory sulphide ore. The gravity gold recovery system is also integrated with Knelson concentrators and inline leach reactors.
Mineral Resource
Refer to the below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, which summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Obuasi at the end of the fiscal year ended 31 December 2022, based on site gasa gold price estimate of $1,750/oz for underground and diesel power stations, natural gas$1,600 for open pit Mineral Resource. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Measured | 1.96 | 8.44 | 16.59 | 0.53 | ||||||||||||
| Indicated | 27.66 | 6.06 | 167.59 | 5.39 | |||||||||||||
| Measured & Indicated | 29.63 | 6.22 | 184.18 | 5.92 | |||||||||||||
| Inferred | 39.80 | 8.50 | 338.17 | 10.87 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
5.Open pit based on a gold price of $1,600/oz, underground based on a gold price of $1,750/oz.
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Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Obuasi | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.66 | 5.84 | 6.50 | 12.05 | ||||||||||
| Depletion | — | — | — | — | ||||||||||
| Exploration | — | — | — | (0.06) | ||||||||||
| Methodology | 0.02 | 0.28 | 0.30 | (0.53) | ||||||||||
| Price | 0.02 | 0.58 | 0.60 | 1.11 | ||||||||||
| Cost | (0.17) | (0.97) | (1.14) | (1.31) | ||||||||||
| Geotechnical | — | — | — | — | ||||||||||
| Metallurgical | — | — | — | — | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | (0.33) | (0.33) | (0.37) | ||||||||||
| Current Year | 0.53 | 5.39 | 5.92 | 10.87 | ||||||||||
| Net Difference | (0.12) | (0.45) | (0.57) | (1.17) | ||||||||||
| % Difference | (19) | (8) | (9) | (10) | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The decrease in Mineral Resource is mainly due to depletion attributed to mining from Sansu, and Blocks 8 and 10 and an increase in costs which resulted in higher cut-off grades as well as the sterilisation of stopes in the depletion process. The decrease was partially offset by model changes primarily from the inclusion of new drilling data from ongoing operational drilling activities and the increase in Mineral Resource price.
Material Assumptions for the Mineral Resource
Key Parameters
| Obuasi | Unit | Underground | ||||||
| Costs | ||||||||
| Mining cost | $/tonne mined | 64.26-79.44(1) | ||||||
| Processing cost | $/tonne treated | 42.57 | ||||||
| G&A | $/tonne treated | 21.96 | ||||||
| Other Parameters | ||||||||
| Royalties | % | 3.0 | ||||||
MSO(2) optimising cut-off | g/t | 3.43-3.75(1) | ||||||
| Mineral Resource cut-off grade | g/t | 3.43-3.75(1) | ||||||
| Mineral Resource price | $/oz | 1,600-1,750(3)(4) | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) Vary according to area. (2) Datamine Mineable Shape Optimiser ("MSO"). (3) Open pit based on a gold price of $1,600/oz, Underground based on a gold price of $1,750/oz. (4) AngloGold Ashanti has determined that there is no material change to the Mineral Resource reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,500, the gold price used to estimate the Mineral Resource in 2021). | ||||||||
Estimation
The estimation technique is ordinary kriging and the primary estimation unit size is 20m x 5m x 15m. This estimation unit size is representative of the underground mining units and is considered appropriate given the style of mineralisation and mining methods. Compositing by length is employed and the influence of extreme grades is restricted by grade capping. Sample spacing is highly variable across the deposit and ranges from 10m x 10m (for grade control areas) up to 200m x 200m (for exploration targets). However, for the Mineral Resource, the maximum extrapolation from data points is 100m. Any areas beyond this are not classified and are considered to be upside potential rather than Mineral Resource.
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Mineral Reserve
Refer to the below table, prepared in accordance with Table 2 to Paragraph D(1) of Item 1304 ofRegulation S-K, which summarises the gold Mineral Reserve for Obuasi at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,400/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Obuasi | Proven | 4.47 | 9.55 | 42.73 | 1.37 | ||||||||||||
| Probable | 21.25 | 9.26 | 196.67 | 6.32 | |||||||||||||
| Total | 25.72 | 9.31 | 239.40 | 7.70 | |||||||||||||
Notes:
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
5.Based on a gold price of $1,400/oz.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Obuasi | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 1.19 | 7.08 | 8.26 | ||||||||
| Depletion | (0.23) | — | (0.23) | ||||||||
| Exploration | — | (0.77) | (0.77) | ||||||||
| Methodology | 0.54 | — | 0.54 | ||||||||
| Price | 0.11 | 1.49 | 1.60 | ||||||||
| Cost | (0.23) | (1.48) | (1.71) | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | — | — | — | ||||||||
| Other | — | — | — | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 1.37 | 6.32 | 7.70 | ||||||||
| Net Difference | 0.19 | (0.75) | (0.57) | ||||||||
| % Difference | 16 | (11) | (7) | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The key changes were primarily associated with depletion, exploration, block model changes, and economic parameters. Depletion was mainly due to mining, while exploration changes were as a result of Mineral Resource drilling. This was offset by changes in the block model methodology involving estimation parameters, interpretations, classification and density. The economic factors that also influenced the changes to the Obuasi Mineral Reserve included an increased gold price assumption which was partially offset by an increase in mining cost and sustaining capital.
Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Obuasi | |||||||
| Primary Commodity Price | $/oz | 1400(1) | ||||||
| Cut-off grade | g/t | 4.29-4.69(2) | ||||||
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| as at 31 December 2022 | Obuasi | |||||||
| Dilution | % | 12-17(2) | ||||||
| Mining Recovery Factor | %MRF based on tonnes | 95-98(2) | ||||||
| Mining Recovery Factor | %MRF based on g/t | 100 | ||||||
| Mine Call Factor | %MCF | 100 | ||||||
| Metallurgical Recovery Factor | %MetRF | 87 | ||||||
Notes: (1) AngloGold Ashanti has determined that there is no material change to the Mineral Reserve reported in the 2021 Technical Report Summary for Obuasi (effective date: 31 December 2021) filed as Exhibit 19.15.5 hereto if this updated gold price is used (instead of $1,200, the gold price used to estimate the Mineral Reserve in 2021). (2) Vary according to area. | ||||||||
Estimation
The Mineral Reserve estimation considers mining criteria for the economic cut-off grade and minimum mining width for the anticipated mining method. All design and scheduling work is undertaken to an applicable level of detail by mine planning engineers in consultation with other technical specialists using Datamine Studio UGTM and Enhanced Production SchedulerTM ("EPS") software.
The cut-off grade parameters used include projected mining, processing, and general and administrative costs. A Mineral Reserve gold price of $1,400/oz was used. The cut-off grade also considers the metallurgical recovery factor (87 percent applied for all blocks), mining dilution and recovery, tonne-kilometre haulage cost from all blocks, as well as the backfill type.
Stopes are designed using the Datamine Mineable Shape Optimiser ("MSO") Software where the outputs are further optimised by manual edits. The stope shapes are generated at section intervals of 15m to 20m based on geotechnical guidance for each block. The MSO allows the class field to be assigned to each stope generated. The mine design is reviewed taking into consideration the updated stope shapes, existing development and future infrastructure need. A LOM plan is generated which considers fleet and infrastructure capacities. All mining blocks are designed for the LHOS mining method. The Mineral Reserve is reported from the LOM plan and only includes Measured and Indicated Mineral Resource.
Map showing Obuasi planned infrastructure and licences
Below is a map that shows the location, infrastructure and mining licence area for Obuasi. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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109
IDUAPRIEM
Property description
Iduapriem mine is wholly-owned and operated by AngloGold Ashanti and a production stage property. The mine is a multiple open pit operation that currently sources ore from the Block 3W, Block 5, Ajopa, and Blocks 7 and 8 pits.
Location
The mine is located in the western region of Ghana, some 70km north of the coastal city of Takoradi and approximately 10km southwest of the town of Tarkwa. The Iduapriem mine is bordered to the north by Gold Fields Ghana Limited (Tarkwa Mine) and to the east by the Ghana Manganese Company Limited (a manganese mine in existence since the 1920s).
Mineralisation style
There are four recognised conglomerate reefs namely A, B, C and D, which are equivalent to the Tarkwaian Sub-basal, Basal (or Main), Middle (or West), and Breccia Reefs, respectively. The B and C Reefs are oligomictic and consist of well-sorted conglomerates and have been mined underground in some areas more than a century ago. The A and D Reefs have a lower gold tenor and are polymictic, containing both well-rounded and angular fragments. Gold is found within the matrix that binds the pebbles together. The gold content is a function of the size and amount (packing) of quartz pebbles present within a conglomeratic unit. The gold is fine-grained, particulate and free-milling.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Ghana—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Surface infrastructure associated with Iduapriem’s operation includes a primary crusher, overland conveyor, CIL processing plant next to the main office building, a TSF and four camp areas for contractors and company employees. Tarkwa town is also adjacent to the tenement. Power is supplied to the mine by the Volta River Authority and GRIDCo.
Mineral processing
The current processing plant treats free-milling material from open pit mining, by a conventional crush with a semi-autogenous ball milling circuit and cyanide leach. Iduapriem operates a two-stage crushing circuit consisting of a Metso Superior MKIII primary gyratory crusher and two GP550 gyratory crushers for secondary crushing. The Iduapriem treatment plant has two semi-autogenous grinding mills ("SAG mills") and two ball mills which run in two parallel circuits,each with a SAG mill and a ball mill. The second ball mill, a new thickener, a cluster of cyclones and a Knelson concentrator were commissioned in March 2009. In July 2017, three of the four leach tanks were converted into CIL tanks by introducing carbon into the each of the tanks with the installation of inter-tank screens and carbon recovery screens. Carbon for elution is harvested from one of the leach tanks to the acid wash column, and the carbon recovery screen underflow is pumped back to the leach tanks.
GUINEA
SIGUIRI
Property description
Siguiri is AngloGold Ashanti’s only operation in the Republic of Guinea. The mine is co-owned by AngloGold Ashanti (85 percent) and the government of Guinea (15 percent). The mine is a conventional open pit operation situated in the Siguiri district in the northeast of Guinea.
Siguiri is a production stage property, operated by AngloGold Ashanti. Gold-bearing ore is mined from several pits (generally three pits at any one time). Mining occurs primarily in Kami and Bidini pits in Block 1, as well as Saraya pit in Block 2. The pre-feasibility study level of work on the geotechnical design for Sanutinti pit is ongoing.
Location
Siguiri is located approximately 850km north-northeast of Conakry, 25km northwest of the town of Siguiri and 220km southeast of the Malian capital Bamako, near the Malian border.
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Mineralisation style
Siguiri is situated in the northern part of the Siguiri Basin of Guinea, and is underlain by Lower Proterozoic rocks of the Birimian metasedimentary and volcano-sedimentary formations. Primary gold mineralisation occurs in all three lithostratigraphic units of the Siguiri region, although most of the known mineralisation is found in the central and more competent Fatoya Formation. In some deposits, the mineralisation shows strong lithological control and is preferentially developed in coarser-grained units with higher fracture or vein densities than fine-grained rocks. Mineralised veins are more intensely developed along major structural trends, with quartz-carbonate-sulphide veining developed along structures. Some of these structures have developed as incipient faults and are represented by discrete stockworks of mineralised quartz-carbonate veins occurring along a trend instead of clearly defined continuous structures.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Guinea—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Siguiri includes a processing plant, a TSF, and other infrastructure such as a mine village, a water supply system, roads, power supply by on-site generators and communications systems. Additional infrastructure includes on-site offices, accommodation and workshops to support remote mining. Power to the mine is self-generated using heavy fuel oil.
The town of Siguiri can be accessed via a small airfield and a well-paved road that connects Siguiri to Bamako in the north and Kouroussa in the south. Access to the mine via roads and to Siguiri is easily passable through most of the year, although some secondary roads are seasonal with limited access during the wet season. While Siguiri encounters encroachment of villages onto, and artisanal and small-scale mining invasion in, its mining areas as well as increasing community demands and expectations, mitigation plans are in place to significantly reduce the impact of these issues.
Mineral processing
The mined ore is processed using a hybrid CIL circuit plant and can treat 50 percent hard ore post-commissioning of a new ball mill and three-stage crushing plant in 2019. Unit operations include comminution, leaching, carbon adsorption and desorption, smelting and tailings disposal. Further modification of three leach tanks to CIL tanks was carried out in the fourth quarter of 2020, giving a total of seven tanks in the hybrid circuit. The combination plant treats up to 50 percent fresh rock and 50 percent soft ore, with a total throughput of 11.4Mt per annum. The recovery of Bidini, which has been impacted by the presence of carbonaceous ore and the performance of the combination plant to achieve the required mill throughput and recovery, could have an APA Operations (Pty) Limited pipeline.impact on the economic extraction of the estimated Mineral Resource and Mineral Reserve until the plant stabilises. There are mitigation plans in place to address any TSF capacity issues and the mine is also doing further optimisation work.
GEITA
For additional information, see the Technical Report Summary for Geita (effective date: 31 December 2022) filed as Exhibit 19.15.4 hereto.
Property description
Geita (“GGM”), one of AngloGold Ashanti’s flagship mines, is located in northwestern Tanzania, in the Lake Victoria goldfields of the Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. The Geita gold deposits are mined as a multiple open pit and underground operation, with ore production from Star and Comet, Nyankanga and Geita Hill underground mines, and from Nyamulilima open pit. The mine is currently serviced by a CIL processing plant with an annual capacity of 5.2Mt.
GGM is wholly-owned and operated by AngloGold Ashanti. GGM currently has three underground mines (Star and Comet, Nyankanga and Geita Hill) and one open pit (Nyamulilima Cuts 1, 2 and 3) which is in production since 2021. The property is currently in a production stage.
Location
GGM is located approximately 1,200km from the main Tanzanian business centre of Dar es Salaam. It falls within the Lake Zone of northwestern Tanzania, approximately 120km west of Mwanza and 4km west of the town of Geita. The mining lease area falls within the Archaean Sukumaland Greenstone Belt of the Lake Victoria goldfields.
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Mineralisation style
Geita is hosted in the Geita Greenstone Belt, which is a northern segment of the Sukumaland Greenstone Belt, located in the north-western part of the Tanzania Craton and south of Lake Victoria. Gold mineralisation occurred late in the tectonic history of the greenstone belt, synchronous with the development of brittle-ductile shear zones. Mineralisation is dominantly sulfide replacement of magnetite-rich layers in ironstone, with local replacement of ferromagnesian phases and magnetite in the diorite intrusions. Primary gold mineralisation is associated with the intersection of the brittle-ductile shear zones and pre-existing fold hinges, with higher grade concentrations associated with banded iron formation lithologies and with diorite dyke and sill contacts.
History
Gold mineralisation is reported to be first discovered in the Geita district in 1898 by a German prospector. A regional survey by a Kenyan company, Saragura Prospecting Syndicate, followed in 1930. The first mine was developed in 1934, and between 1936 and 1966, Geita was the largest gold mine in East Africa, producing 1Moz of gold from underground operations.
In 1996, Ashanti Goldfields Company Limited acquired the Geita tenure through the acquisition of Cluff Resources, and acquired the Kukuluma and Matandani in 1998 from Samax Resources Limited. In December 2000, Ashanti Goldfields Company Limited reached an agreement to sell a 50 percent interest in Geita to AngloGold Limited for $324 million. AngloGold Limited added its neighbouring Nyamulilima Hill deposits into the JV company. In 2004, the merger of AngloGold Limited and Ashanti Goldfields Company Limited resulted in the operation being wholly run by the combined company AngloGold Ashanti.
GGM commenced open pit mining in 1999, with open pit mining at Tropicana occursNyankanga between 1999 and 2020, at Geita Hill between 2001 and 2019, at Kukuluma and Matandani between 2002 and 2007, and at Star and Comet between 2007 and 2014. In 2015, a decision was taken to go underground at Star and Comet, and the underground development started in high metamorphic2016. In 2017, the Nyankanga underground operation commenced and in 2020 the Geita Hill underground commenced and is scheduled to ramp up to full production by the end of 2023.
The Nyankanga open pit, the only remaining operating pit at the time, was mined to completion in September 2020. In April 2021, the Nyamulilima open pit commenced operations.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa Region—Tanzania—AngloGold Ashanti’s rights and permits”.
Mining method
Mining at Geita uses both open pit and underground mining methods. The Nyamulilima open pit commenced production in April 2021 and reached full production during 2022. Open pit mining is by conventional truck and shovel methods, where production mining equipment is operated by GGM with Capital Mining Services Tanzania Limited providing production and grade gneissic rocks, which dip gentlycontrol drilling services, and Orica providing blasting and explosives services. Underground mining commenced at Star and Comet in 2016 and subsequently at Nyankanga in 2017, and most recently Geita Hill in 2020. Star and Comet underground has successfully transitioned to owner mining and the mining contractor African Underground Mining Services is used at Nyankanga and Geita Hill for underground development and stoping. The underground mining method is a combination of LOS and TOS. Cemented aggregate fill backfill is used at Nyankanga to fill the primary stopes and allows for the mining of secondary stopes. Ore is hauled from the Nyamulilima open pit (22km) and from Star and Comet (17km), Nyankanga (4km) and Geita Hill (2km) underground operations to the south east. Mineralisationcentral run-of-mine ("ROM") pad by the Geita surface mining fleet.
Processing plants and other available facilities
Surface infrastructure associated with the overall Geita operation includes a 5.2Mtpa CIL processing plant, a TSF, a camp, an airstrip, open pit and underground workshops and offices, contractor yards, backfill plants and explosives suppliers. Power to the mine is structurally controlledself-generated at Geita's 40MW power plant using diesel generators, however, there is planned construction of a 33kV hydropower station by Tanzania Electric Supply Company Limited ("TANESCO"). The physical condition of the equipment, facilities, and occurs withininfrastructure at GGM is generally considered to be in good working order. The mine has invested heavily in maintaining and upgrading its assets to ensure they remain reliable and efficient. The underground development of the mine has also been extensively developed, with the construction of a preferred host unit withinnumber of portals, declines and strategically placed development drives that access and further explore the gneissic package. Post mineralisation faulting has separatedgold-bearing ore. Overall, the GGM is a well-established operation implementing fit-for-purpose technologies once continuousproven in the market. For the number of persons employed at the mine, refer to “Item 4B: Business Overview—Operating Performance—Africa Region”.
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The “Property, Plant, and Equipment” as of 31 December 2022, including lease assets, buildings and mine infrastructure, mining assets, capitalised exploration costs, decommissioning assets, assets under construction and deferred stripping, had a carrying value of $418m.
Mineral processing
Geita’s ore zone,processing method is a conventional CIL process with a throughput capacity of 5.2Mtpa. The circuit contains a primary gyratory crusher, secondary and tertiary crushers, a SAG mill, a ball mill and 12 leach tanks. This is coupled with a gravity circuit using two Knelson concentrators. In planning the plant feed blend material, hardness grade, oxide and sulphide content are considered in order to optimise throughput and recovery.
Mineral Resource
The below table, prepared in accordance with Table 1 to Paragraph (D)(1) of Item 1304 of Regulation S-K, summarises the gold Mineral Resource (exclusive of Mineral Reserve) for Geita at the end of the fiscal year ended 31 December 2022, based on a gold price estimate of $1,750/oz. Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
| Mineral Resource | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Geita | Measured | 1.80 | 4.15 | 7.50 | 0.24 | ||||||||||||
| Indicated | 40.32 | 2.03 | 81.96 | 2.63 | |||||||||||||
| Measured & Indicated | 42.12 | 2.12 | 89.45 | 2.88 | |||||||||||||
| Inferred | 36.21 | 2.64 | 95.71 | 3.08 | |||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
1.All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Resource—Key Parameters” for additional information on cut-off grades and metallurgical recovery.
5.Based on a gold price of $1,750/oz.
Year on year changes in Mineral Resource - Moz
| as at 31 December 2022 | Geita | |||||||||||||
| Category | Measured | Indicated | Measured and Indicated total | Inferred | ||||||||||
| Previous Year | 0.21 | 1.87 | 2.08 | 3.26 | ||||||||||
| Depletion | — | — | — | — | ||||||||||
| Exploration | 0.02 | 0.09 | 0.11 | 0.12 | ||||||||||
| Methodology | 0.03 | 0.49 | 0.52 | (0.57) | ||||||||||
| Price | 0.01 | 0.17 | 0.18 | 0.19 | ||||||||||
| Cost | (0.03) | 0.19 | 0.16 | 0.07 | ||||||||||
| Geotechnical | — | — | — | — | ||||||||||
| Metallurgical | — | 0.02 | 0.02 | 0.02 | ||||||||||
| Acquisition / Disposal | — | — | — | — | ||||||||||
| Other | — | (0.20) | (0.20) | — | ||||||||||
| Current Year | 0.24 | 2.63 | 2.88 | 3.08 | ||||||||||
| Net Difference | 0.03 | 0.77 | 0.80 | (0.18) | ||||||||||
| % Difference | 16 | 41 | 38 | (6) | ||||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The increase is largely as a result of exploration success due to accelerated drilling activities because of the planned reinvestment, and changes in methodology were as a result of revised estimation parameters, and refined ore wireframes. The increase in the Mineral Resource price and favourable cost reductions in open pit haulage, general
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and administrative expenses and new underground contract rates led to lower cut-off grades resulting in additional Mineral Resource, which was partially offset by depletion.
Material Assumptions for the Mineral Resource
Key Parameters
| Geita | Unit | Open Pit | ||||||
| Costs | ||||||||
| Ore mining cost | $/tonne mined | 3.3 | ||||||
| Waste mining cost | $/tonne mined | 3.3 | ||||||
| Material handling | $/tonne mined | 2.03 | ||||||
| Processing cost | $/tonne treated | 18.63 | ||||||
| G&A | $/tonne treated | 8.43 | ||||||
| Other Parameters | ||||||||
| Metallurgical Recovery Factor | %MetRF | 89 | ||||||
| Slope angles | degree | 55 | ||||||
| Mineral Resource cut-off grade | g/t | 0.65 | ||||||
| Mineral Resource price | $/oz | 1,750 | ||||||
| Royalties | % | 7.3 | ||||||
| Geita | Unit | Underground | ||||||
| Costs | ||||||||
| Production (Mining cost) | $/tonne ore mined | 47.68-82.88(1) | ||||||
| Mine Services | $/tonne ore mined | 21.97-25.78(1) | ||||||
| Processing cost | $/tonne treated | 18.46-19.11(2) | ||||||
| Other Parameters | ||||||||
| Mineral Resource cut-off grade | g/t | 1.86-3.01(2) | ||||||
| Mineral Resource price | $/oz | 1,750 | ||||||
| Metallurgical Recovery Factor | %MetRF | 70.4-91.4(1) | ||||||
| Royalties | % | 7.3 | ||||||
Notes: (1) Mining cost includes backfilling at Nyankanga, and material handling costs. (2) Variable according to area. (3) %MetRF: Ridge 8, 70.4%, Star and Comet Cut 5, 80.4%, Star and Comet Cut 2, 88.3%, Star and Comet Cut 3, 88.4%, Geita Hill 87.2%, Nyankanga Block 5, 89.8%, Nyankanga Block 1, 2, 3 and 4, 91.4%. (4) Datamine Mineable Shape Optimiser ("MSO"). | ||||||||
Estimation
For the open pits, developed onmineralisation boundaries for the individual deposits are defined from detailed logging of all geological drill holes. This information is validated and then geological wireframes are interpreted to create a 3D geological model. The geological model is subsequently used in conjunction with an appropriately dimensioned block model. Ordinary kriging is used to interpolate values into block models, and uniform conditioning ("UC") and localised uniform conditioning ("LUC") methods are used to generate a recoverable Mineral Resource block model, which estimates the proportion of ore that occurs above the Mineral Resource cut-off grade assuming a specified SMU. The open pit Mineral Resource is reported within a $1,750/oz optimised pit shell and above the calculated mineralised waste cut-off grade per pit.
For the underground Mineral Resource, the geological model is generated in the same way as for the open pits. However, a high-grade wireframe is delineated within the broader, lower-grade mineralised envelope. In this instance, all geological controls are adhered to when determining this domain. Ordinary kriging models are then constructed within the low- and high-grade domains, and numerous validation exercises are completed to ensure robust estimates are achieved. The underground Mineral Resource is reported inside a MSO volume generated using a unique underground cut-off grade for each deposit.
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The ultimate open pit designs are used as the limiting boundaries between the open pits and underground during model compilation. The underground stopes and development are evaluated using the ordinary kriging block models and the open pit designs are evaluated using the LUC block models.
Stockpiled material above mineralised waste cut-off grade is included in the Mineral Resource.
Mineral Reserve
The below table, prepared in accordance with Table 2 to Paragraph (D)(1) of Item 1304 of Regulation S-K, summarises the gold Mineral Reserve for Geita at the end of the fault bounded blocks.fiscal year ended 31 December 2022, based on a gold price estimate of $1,400/oz. Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
| Mineral Reserve | Category | Tonnes | Grade | Contained Gold | |||||||||||||
| as at 31 December 2022 | million | g/t | tonnes | Moz | |||||||||||||
| Geita | Proven | 9.54 | 1.02 | 9.70 | 0.31 | ||||||||||||
| Probable | 38.95 | 2.60 | 101.19 | 3.25 | |||||||||||||
| Total | 48.49 | 2.29 | 110.89 | 3.57 | |||||||||||||
1.Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year is detailed in the table below. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
2.“Tonnes” refers to a metric tonne which is equivalent to 1,000 kilograms.
3.Property currently in a production stage.
4.Refer to “—Material Assumptions for the Mineral Reserve—Modifying factors and price estimates” for additional information on cut-off grades and metallurgical recovery.
5.Based on a gold price of $1,400/oz.
Year on year changes in Mineral Reserve - Moz
| as at 31 December 2022 | Geita | ||||||||||
| Category | Proven | Probable | Total | ||||||||
| Previous Year | 0.09 | 2.55 | 2.65 | ||||||||
| Depletion | (0.06) | (0.49) | (0.55) | ||||||||
| Exploration | — | 0.87 | 0.87 | ||||||||
| Methodology | — | — | — | ||||||||
| Price | — | 0.40 | 0.40 | ||||||||
| Cost | 0.18 | 0.06 | 0.25 | ||||||||
| Geotechnical | — | — | — | ||||||||
| Metallurgical | — | — | — | ||||||||
| Operational | 0.04 | (0.10) | (0.06) | ||||||||
| Other | 0.06 | (0.04) | 0.02 | ||||||||
| Acquisition / Disposal | — | — | — | ||||||||
| Current Year | 0.31 | 3.25 | 3.57 | ||||||||
| Net Difference | 0.22 | 0.70 | 0.92 | ||||||||
| % Difference | 241 | 27 | 35 | ||||||||
Notes:
All figures are expressed on an attributable basis unless otherwise indicated.
The increase is mainly due to ongoing exploration drilling success resulting in larger pit designs at Nyamulilima and in the first-time reporting of the Geita Hill underground Mineral Reserve based on a feasibility study currently being completed. An increase in the Mineral Reserve price and reduced costs mostly by reductions in hauling cost on surface and contractor rates is partially offset by depletion and operational changes.
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Material Assumptions for the Mineral Reserve
Modifying factors and price estimates
| as at 31 December 2022 | Geita | |||||||
| Primary Commodity Price | $/oz | 1,400 | ||||||
| Cut-off grade | g/t | 0.70(2)-4.20(3) | ||||||
| Stoping width | cm | 450-2,500(3) | ||||||
| Dilution | % | 11.6(2);10-17(3) | ||||||
| Resource Modification Factor | %RMF based on tonnes | 99.5(2)-100(3) | ||||||
| Resource Modification Factor | %RMF based on g/t | 93(2)-100(3) | ||||||
| Mining Recovery Factor | %MRF based on tonnes | 86-100(1) | ||||||
| Mining Recovery Factor | %MRF based on g/t | 86-100(1) | ||||||
| Mine Call Factor | %MCF | 100 | ||||||
| Metallurgical Recovery Factor | %MetRF | 80.4-91.4(1) | ||||||
Notes: (1) Vary according to rock type / area. (2) Open pit. (3) Underground. | ||||||||
Estimation
The Mineral Resource models are used as the basis for Mineral Reserve estimation. Input parameters for estimating the Mineral Reserve include gold price, mining dilution and recovery, geotechnical information, stay-in-business capital, operating costs, metallurgical recovery, processing capacity and mining equipment capacities.
Appropriate Mineral Reserve cut-off grades are applied and optimised pit shells are generated for the open pit sources. Pit designs are then done on selected shells and signed off by all relevant parties to ensure compliance to specifications. Underground designs are completed and evaluated. These designs are incorporated into the production and treatment scheduling stages to yield ore tonnes and grades. Financial evaluations are completed for production and treatment schedules to check the cash flow analysis from the estimated Mineral Reserve.
The Mineral Reserve for Geita's operating and prospective pits, as well as underground mine areas is estimated using updated economic factors, latest Mineral Resource models, geological, geotechnical, mining engineering and metallurgical parameters. Environmental, sociopolitical, legal and regulatory factors are also considered.
Map showing Geita planned infrastructure and licences
Below is a map that shows the location, infrastructure and mining license area for Geita. The coordinates of the mine, as represented by the plant, are depicted on the map and are in the geographic coordinate system.
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AMERICAS
The Americas region includes the mining jurisdictions Brazil and Argentina, - Cerro Vanguardia
in which AngloGold Ashanti has a 92.5 percent interest inthree operations. In Argentina, the Company has one mining operation: the Cerro Vanguardia with Mine, co-owned by AngloGold Ashanti (92.5%) and Fomento Minero de Santa Cruz Sociedad del Estado (“Fomicruz owningSE”) (7.5%). In Brazil, the remaining 7.5 percent. Located toCompany has two mining operations: (i) the northwest of Puerto San JulianAngloGold Ashanti Córrego do Sítio Mineração operations (“AGA Mineração”) which include the Cuiabá, Lamego and Córrego do Sítio (“CdS”) mines, and (ii) Mineração Serra Grande (“Serra Grande”).
ARGENTINA
CERRO VANGUARDIA
Property description
Cerro Vanguardia, a production stage gold-silver operation, is the Company’s sole operation in Argentina. The mine is operated by Cerro Vanguardia S.A. ("CVSA"), which is a company formed by AngloGold Ashanti (92.5%) and Fomicruz SE, a state-owned company operating in the province of Santa Cruz (7.5%). The climate is semi-arid and although snow does occur, winter is mild and exploration activities are normally possible all year round. Cerro Vanguardia consists ofoperates multiple small open pits with high stripping ratios and multiple narrow-vein underground mines. Shallow underground mining beganmines located within the property and mined simultaneously. Cerro Vanguardia has been in 2010 to access high-grade material and accountsoperation for about 30 percentmore than 20 years. Silver is produced as a by-product.
Location
Cerro Vanguardia is located in the Santa Cruz province, southern Patagonia, Argentina, approximately 110km north-northwest of the mine’s production.coastal town of Puerto San Julián. Access to the area is by aircraft from Buenos Aires to Comodoro Rivadavia (380km) or Rio Gallegos (510km) and then by road to the mine site.
Mineralisation style
Cerro Vanguardia is in the core of the 60,000km2 Deseado Massif, one of the most extensive volcanic complexes in southern Patagonia. The orebodies comprise a series of hydrothermal vein deposits containingDeseado Massif is deposited over Paleozoic low-grade metamorphic basement rocks. The mineralisation is concentrated in steeply-dipping quartz veins that cut the flat-lying ignimbrites and volcanoclastic rocks. The Cerro Vanguardia district contains more than 100 gold and large quantitiessilver-bearing epithermal veins for a cumulative exposed vein strike extension of more than 240km, of which 55 veins are currently known to contain economic gold and silver whichmineralisation. The veins at Cerro Vanguardia consist mainly of quartz and adularia and contain minor electrum, native gold, silver sulphides and native silver as fine-grained disseminations.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Infrastructure for Cerro Vanguardia is mined asmostly located on-site. It includes a by-product. Ore is processed at either the metallurgical plant which hascamp site with a capacity of 3,450 dry tonnes per day1,300 people, a Merrill Crowe plant, heap leaching facilities, cyanide recycling plant, mine laboratory, maintenance facilities, warehouses and includessewage processing plant. Four natural gas power generators, fed by a 40km long pipeline, provide electricity to the operation. Natural gas is also used for heating. Mine office facilities are located in the main mining area.
Dewatering supplies water for use both as processing water and camp consumption. Due to the particular features of the mine, and in order to optimise hauling, all pits have local, single or multiple waste dumps. The TSF is located in and is contained by a natural depression.
Mineral processing
The metallurgical plant has a daily capacity estimated at 3,500tpd (1.2Mtpa), with gold and silver grade of around 4.25g/t and 120g/t, respectively. The plant comprises the following stages: crushing, milling, conventional leaching in tanks, counter current decant system in thickeners (“CCD circuit”), a CIL process, acid wash, elution, conventional Merrill Crowe process to recover gold and silver with metallic zinc, and a cyanide recovery facility orplant ("Cyanisorb"). The tailings go directly to a conventional TSF, where there is also a reclaim water system for the plant.
In addition to the processing plant there is a heap leach operation which started in 2012 to process the low grade material. Power for the mine is self-generated but operated bypad, with an external contractor. The mine has been operated by AngloGold Ashanti since 1998.
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BRAZIL
AngloGold Ashanti’s operations in several forms: as massive quartz, banded chalcedonic quartz, and quartz-cemented breccias. Dark bandsBrazil comprise AGA Mineração in the quartz are due to finely disseminated pyrite, now oxidised to limonite. The veins show sharp contacts withQuadrilátero Ferrífero, Minas Gerais state and Serra Grande in the surrounding ignimbrite which hosts narrow stockwork zones that are weakly mineralised and appear to have been cut by a sequence of north-east-trending faults that have southerly movement with no appreciable lateral displacement.
CdS consists of open pit and underground mines. The oxide ore mined is treated by heap leach and a pressure leaching precipitationplant treats sulphide ore. The distance from the main underground mine to the metallurgical plant is around 15km.
Serra Grande comprises three mechanised underground mines, Mina III, Mina Nova and refining occur. Total capacityMina Palmeiras, and an open pit as well as a dedicated metallurgical plant.
AGA MINERAÇÃO
AGA Mineração encompasses mining operations at Cuiabá, Lamego and CdS. The AGA Mineração mining complex is located in southeastern Brazil in the state of Minas Gerais. Operations are 30km from the capital of the complete circuitstate (Belo Horizonte) in the case of Cuiabá and Lamego, and approximately 100km in the case of CdS.
AGA MINERAÇÃO - CÓRREGO DO SÍTIO
Property description
CdS is 1.7 million tonnes per yearwholly-owned by AngloGold Ashanti. It has been in operation since 1989 and recoveriesconsists of 93 percent are achieved. Power for the minemultiple open pit (conventional bench mining) and underground mines (mainly using sub-level stoping). The property is both self-generatedcurrently in a production stage and suppliedoperated by Cemig a state owned company. The Cuiabá mine became operational in 1988 and the Lamego mine in 2009. Some of the older mines which are now closed have been operating since 1834.AGA Mineração.
Location
The Córrego do Sítío (CdS)CdS complex is located in the Municipalitymunicipalities of Santa Bárbara 60 kilometresand Barão de Cocais, that are located 100km east of the city of Belo Horizonte in the capitalstate of Minas Gerais, state. The southern portionin the southeast of thisBrazil. These operations are included in an important mining complex isdistrict referred to as the Quadrilátero Ferrífero (Iron Quadrangle), the second biggest Brazilian area for the production of iron, gold and manganese.
Mineralisation style
The CdS gold deposit is located in the eastern part of the lower to middle greenschist facies of the Rio das Velhas Archaean, in the Iron Quadrangle region, on the southern margin of the São Francisco Craton in Brazil. CdS is an orogenic gold deposit hosted in intensely deformed clastic, volcanoclastic, carbonaceous schists and metagreywackes in an approximately 30km northeast-southwest striking shear zone. Hydrothermal alteration phases associated with the mineralisation are dominated by sericite and carbonate.
The CdS I, whileII and III, gold deposits and associated targets are located in a gold trend that extends for approximately 14km in a north-easterly direction, from Grota Funda (CdS I) in the northern portion (formerly known as São Bento)south to Anomalia (CdS III) in the north, which developed in a compressional tectonic regime. Gold is associated with quartz and fine grained acicular arsenopyrite. The main gold targets and deposits are distributed over three trends, namely the CdS Trend and the Cristina Trend hosted in metasedimentary rocks, and the Donana Trend hosted in BIF.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
CdS infrastructure consists of the sulphide plant at CdS II (used to process refractory sulphide material), and the heap leach plant at CdS I (for oxide ore mined by open pit). The site also has been renamedan ore sorting plant, a TSF for the sulphide plant, a neutralised tailings deposit for the oxide material and numerous waste dumps for the open pit mines at CdS II. CdS comprises one surface (oxide)I. For further information on the regulatory framework governing TSFs in Brazil, see “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil”.
Ancillary facilities comprise a water treatment facility, effluent treatment facilities, equipment workshops, laboratory, warehouses, explosives and two sub-level stoping underground (sulphide) mines,accessories magazines, fuel stations, electric substations as well as offices, medical
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clinic, mess rooms, dressing rooms, bathrooms, storerooms, garage, fuel stations, a heap leach padcentre of environmental studies, nursery and sulphide plant,other facilities required to operate the latter originally acquiredmine.
Water is primarily sourced from Eldorado laterecycling the underground mine water and supplementary water catchment wells. The power for the operations is supplied and purchased on the open market. Good communication infrastructure is available in 2008 was refurbished and brought into operation in January 2012. the area.
Mineral processing
There are two metallurgical plants inat CdS: the heap-leachheap leach plant for the oxide ore and the sulphide plant. The sulphide process consists of crushing, grinding and gravity concentration, flotation, thickening, acidulation, pressure oxidation (POX autoclave), CCD (counter current decantation), CIL extraction, elution, neutralisation, electro winningelectrowinning and tailings disposal.dry stack tailings. The sulphide plant and POX circuit have a capacity as of 600ktpy.900ktpa. The heap-leachingheap leaching process consists of crushing, agglomeration, stacking, leaching, adsorption, elution and electro winning. Powerelectrowinning, with capacity of 860ktpa.
AGA MINERAÇÃO - CUIABÁ
Property description
Cuiabá is supplied to CdSan underground operation (mainly using sub-level long hole open stoping), wholly-owned by Cemig a state owned company.
| Córrego do Sítío Oxide | Córrego do Sítío Sulphide | Cuiabá | Serra Grande | ||||||||
Capacity (000 tonnes/month) | 50 | 58 | 150 | 115 | |||||||
Location
Cuiabá is located 30km to the east of Belo Horizonte in the state of Minas Gerais, in the southeast of Brazil.
Mineralisation style
Cuiabá mine is located in the Iron Quadrangle, which is a geotectonic unit on the southern edge of the São Francisco Craton, comprising Archaean and Proterozoic terrains, and bordered by Neoproterozoic mobile belts. From a regional viewpoint, Cuiabá mine is located in the eastern extension of the Serra do Curral inverted homocline, located on the northeastern edge of the Iron QuadrangleQuadrangle. The mine lithostratigraphy consists of an intermediate metavolcanic sedimentary sequence of the greenstone belt type and is composed of Proterozoic and Archaean volcano‑sedimentary sequences and Pre‑Cambrian granitic complexes. The host tohosted in the gold mineralisation is the volcano-sedimentary Nova Lima Group (NLG) that occurs at the basebottom of the Rio das Velhas SuperGroup (RDVS). The upper sequence of the RDVSSupergroup.
Gold mineralisation is the meta-sedimentary Maquiné Group. Cuiabá mine, located at Sabara Municipality, has gold mineralisation associated with sulphides and quartz veins in Banded Ironstone Formation (BIF)BIF and volcanic sequences. At this mine, structuralStructural control and fluidsfluid flow ascension are the most important factors for gold mineralisation with a common association between large-scale shear zones and their associated structures. Where BIF is mineralised, the ore appears strongly stratiform due to the selective sulphidation of the iron richiron-rich layers. Steeply plunging shear zones tend to control the ore shoots, which commonly plunge parallel to intersections between the shears and other structures. Mineralisation is hosted in the limbs of a fold system.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
The metallurgical plants (Cuiabá gold plant and Queiroz plant) are connected by an aerial ropeway and power to the mine is provided by a set of small hydropower plants (Rio de Peixe hydroelectric complex). Cuiabá mine has a shaft system (846m deep) for production and personnel transport, the current nominal airflow capacity for which is 1,035m3/s, of which 320m3/s are refrigerated. Tailings deposition is at one of four sites located at Cuiabá, Calcinados, Rapaunha and Cocuruto. Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil” for further information on the Company’s TSFs in Brazil. The Rio de Peixe hydroelectric complex is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and are directly connected to the Queiroz plant.
Mineral processing
Cuiabá and Lamego mines feed the Cuiabá gold (crushing, milling and flotation) and Queiroz (roaster, carbon circuit and refinery) plants, currently at 1.9Mtpa with a metallurgical recovery of 91.8 percent for the combined feed. At the Cuiabá gold plant, ore is crushed and milled followed by flotation and filtration to produce a concentrate (32 percent sulphur), which is transported by an aerial ropeway to Queiroz for further treatment. Approximately 30 percent of gold is recovered through a gravity circuit at the Cuiabá gold plant. The concentrate, transported by aerial ropeway, is received at the Queiroz plant which is located in Nova Lima and comprises the refractory ore circuit (from Cuiabá or
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Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a carbon-in-pulp ("CIP") with Merrill Crowe circuits for further refining. The sulphide gas is captured for processing at the acid plant. Sulphuric acid is produced as a by-product.
AGA MINERAÇÃO - LAMEGO
Property description
Lamego is an underground operation (mainly using long hole stoping) that is wholly-owned by AngloGold Ashanti, within one of the most important metallogenetic provinces in Brazil, known as the Iron Quadrangle. This region is an important producer of iron, manganese and gold in Brazil. The property is currently in a production stage and operated by AGA Mineração.
Location
Lamego is located 30km to the east of Belo Horizonte in the state of Minas Gerais, in the southeast of Brazil.
Mineralisation style
The controlling mineralisation structures areLamego mine is located in the apparent intersectionIron Quadrangle, which is a geotectonic unit at the southern edge of thrust faults with tight isoclinal folds inthe São Francisco Craton, comprising Archaean and Proterozoic terrains, and bordered by Neoproterozoic mobile belts. From a ductile environment. The host rocks at Brasil Mineração are BIF, Lapa Seca and mafic volcanics (principally basaltic). Mineralisation is due toregional viewpoint, the interaction of low salinity carbon dioxide rich fluids with the high-iron BIF, basalts and carbonaceous graphitic schists. Sulphide mineralisation consists of pyrrhotite and pyrite with subordinate pyrite and chalcopyrite; the latter tends to occur as a late-stage fracture fill and is not associated with gold mineralisation. Wallrock alteration is typically carbonate, potassic and silicic.
Gold mineralisation is characterised by orebodies associated with two horizons of chemical sedimentary rocks: BIF and metachert, with shear zones containing abundant quartz veinlets. The proportions of these lithotypes vary substantially from one deposit to middle greenschist facies archeananother. In the BIF, sulphide mineralisation is associated with gold, while in the metachert it is associated with quartz veins. The gold occurs either as native gold or in sulphides. Lamego has a similar rock assemblage to Cuiabá, but with higher structural complexity. The mineralised BIF is more structurally deformed and contains more silica when compared to Cuiabá, which reacted less with the hydrothermal fluid.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Lamego operates as a satellite mine to the Cuiabá mine. Ore is transported to surface via ramps where it is crushed, stockpiled and transported daily to the Cuiabá gold plant, where it is blended with Cuiabá ore on the ROM pad.
The two plants (Cuiabá gold plant and Queiroz plant) are connected by an aerial ropeway. Power to the mine is provided by a set of small hydropower plants (Rio de Peixe hydroelectric complex) and supplied by Cemig, a state-owned company. The Rio das Velhas greenstone belt. de Peixe hydroelectric complex is a set of seven small hydropower plants that generate energy from three dams (Ingleses, Miguelo and Codorna), and are directly connected to the Queiroz plant. Tailings deposition is at one of four sites located at Cuiabá, Calcinados, Rapaunha and Cocuruto. Refer to “Item 4B: Business Overview—The CdS I, IIRegulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil” for further information on the Company’s TSFs in Brazil.
Lamego has a natural water supply system and IIIa plant for water and sewage treatment.
Mineral processing
Cuiabá and Lamego mines feed the Cuiabá gold deposits(crushing, milling and associated targets areflotation) and Queiroz (roaster, carbon circuit and refinery) plants, currently at 1.9Mtpa with a metallurgical recovery of 91.8 percent for the combined feed. At the Cuiabá gold plant, ore is crushed and milled followed by flotation and filtration to produce a concentrate (32 percent sulphur), which is transported by an aerial ropeway to Queiroz for further treatment. Approximately 30 percent of gold is recovered through a gravity circuit at the Cuiabá gold plant. The concentrate, transported by aerial ropeway, is received at the Queiroz plant which is located in Nova Lima and comprises the refractory ore circuit (from Cuiabá or Lamego) with facilities for pyrometallurgy and hydrometallurgy. The concentrate is roasted and the calcine proceeds to a gold trend that extendsCIP with Merrill Crowe circuits for about 14kmfurther refining. The sulphide gas is captured for processing at the acid plant. Sulphuric acid is produced as a by-product.
SERRA GRANDE
Property description
Mineração Serra Grande ("MSG" or "Serra Grande") is wholly-owned and operated by AngloGold Ashanti and is located in the northwest of the state of Goiás, in central Brazil. It operates three underground mines (using sub-level
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stoping (bottom-up and top-down), cut-and-fill and room-and-pillar mining methods) and two open pit mines. The property is currently in a north-easterly direction, from Grota Funda (CdS I areas) in the south to Jambeiro (CdS III areas) in the north. CDSII Area is the north portion of the Corrego do Sítio gold trend. The main gold targets and deposits are distributed over three trends, namely the CdS trend, the Donana Trend and the Cristina Trend. At CdSI, the main orebodies are Rosalino, Cachorro Bravo, Laranjeiras and Carvoaria, which are currently under-production and are the most relevant mineralisations at Mine I. At CdSII, the main orebodies are São Bento, Pinta Bem (both BIF hosted) and Sangue de Boi (metapellitic hosted). At CdSIII, Anomalia I and II represent the orebodies with highest level of information and potential so far (For formal declaration purposes, CDSIII deposits are incorporated as CDSII). CdS mineralisation occurs in a greenstone belt geological environment, where the gold content is associated to quartz and sulphides (mainly very fine arsenopyrite acicular crystals) in a structurally controlled corridor of approximately 16 - 20km in strike length and about 500m vertical extent, developed under compressional tectonic settings. production stage.
Serra Grande is located 5km south of the town of Crixás, 420km from the Brazilian capital, Brasília and approximately 350km from the state capital of Goiás, Goiánia. The employment of 1,120 persons in central Brazil,this largely rural area makes mining the principal economic activity in the stateregion.
Mineralisation style
The Serra Grande gold deposit is an orogenic mesothermal deposit, associated with the development of shear zones that belong to the Upper Archaean Crixás Group. Gold mineralisation is associated with metasediments and metavolcanics from the Ribeirão das Antas and Rio Vermelho Formations respectively. The Crixás Greenstone Belt is surrounded by granitic gneiss terrains from the Ribeirão das Antas and Caiamar complexes and metasedimentary rocks from the Santa Terezinha Group, which is part of the Goiás about five kilometersmagmatic arc. Mineralisation at Serra Grande is associated with quartz veins and massive to disseminated sulphides in metasedimentary, metavolcanoclastic and metabasalt rocks, with variable degrees of hydrothermal alteration developed over orogenic stacked thrust layers (duplexes).
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Serra Grande operates a single TSF, which will support the LOM production and has government environmental licensing in place. The water used in metallurgical processing comes from the city of Crixás. Serra Grande comprises three mechanised underground mines: Mina III (which includes orebody IV), Mina Nova (which includesmines. The state road GO-337 passes close to the Pequizão orebody) and Palmeiras - and an open pit in the outcrop of Mina III orebodies. A gold bearing quartz vein was identified just beneath Pequizão Orebody and a new decline is being developed from Mina III (orebody IV) tooperation providing access and expose this new orebody named Ingá, which contains high grade ore. One dedicated metallurgical plant treats ore from these different sources. The annual capacity of the processing circuit, which has grinding, leaching, filtration, precipitation and smelting facilities, is 1.3 million tonnes.for logistics. The power for the mine is supplied and purchased in the open market. market (grid electricity) and diesel self-generation. Refer to “Item 4B: Business Overview—The mine became operationalRegulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil” for further information on the Company’s TSFs in 1989Brazil.
Mineral processing
The metallurgical plant has the capacity to process 1.5Mtpa, combining CIL and gravimetric circuits. The ore is blended to feed the crushing circuit, which has a capacity of 4,500tpd. There are two mills in operation, and 20 leach tanks with a capacity of 4,800m3 divided between pre-liming and cyanidation stages. Approximately 45 percent of gold is captured in the parallel gravity circuit. The tailings are filtered and stacked in piles. The rest of the gold is recovered by the CIL process to form the doré that is sent to Nova Lima for refining. The total gold recovery is approximately 93.4 percent.
AUSTRALIA
AngloGold Ashanti operates two mines and has beenone new project in Western Australia.
Sunrise Dam, wholly-owned by AngloGold Ashanti, is located 205km north-northeast of Kalgoorlie and 55km south of Laverton.
Tropicana is a joint operation between AngloGold Ashanti (70 percent and the operator), and AFB Resources Pty Limited (30 percent), a subsidiary of Regis Resources Limited. Tropicana is located 200km east of Laverton and 330km east-northeast of Kalgoorlie in Western Australia.
The Butcher Well project is a joint venture between AngloGold Ashanti (70 percent) and Northern Star Resources Limited (“Northern Star Resources”) (30 percent). The project is managed by AngloGold Ashanti. Butcher Well is located 20km southwest of the Sunrise Dam mine and is considered to be a potential satellite operation.
SUNRISE DAM
Property description
Sunrise Dam is a production stage property with an active underground (using sub-level open stoping methods and narrow open-stoping methods) and open pit mine that is wholly-owned and operated by AngloGold Ashanti. AngloGold Ashanti since 1999.conducts all brownfield exploration activities on the site and all tenements and permits are in good standing.
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Location
Sunrise Dam is approximately 205km north-northeast of Kalgoorlie and 55km south of Laverton in Western Australia.
Mineralisation style
Sunrise Dam is a mesothermal gold ore deposits aredeposit located in the Rio VermelhoArchaean greenstone belts of Western Australia. The deposit is complex and Ribeirão das Antas Formationsstructurally controlled with multiple ore zones displaying differing characteristics, from ductile shear zones to brittle stockwork complexes to intrusive hosted mineralisation. Mineralisation is typically hosted within quartz-carbonate veins with varying quantities of pyrite and arsenopyrite. Strong alteration of the Archaean Pilar de Goia’s Groupcountry host rock is common proximal to controlling structures.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
All required infrastructure is in place including a fully functional camp, process plant, tailings facility, gas pipeline, power plant and electrical reticulation, offices, airstrip and road system. The underground infrastructure caters for all ventilation and dewatering needs with provisions made in the budget for extensions and upgrades.
Mineral processing
Processing at Sunrise Dam is via a conventional three-stage crushing / two-stage milling, CIL circuit, with a pyrite flotation and ultrafine grinding circuit commissioned in 2018. The gravity circuit recovers approximately 30 percent of the gold, with the CIL circuit, AcaciaTM reactor and Anglo American Research Laboratories ("AARL") elution used to recover the remainder. Electrowinning recovers gold from the Acacia reactor and is eluted to produce gold doré. Plant throughput at Sunrise Dam is approximately 4.1Mtpa.
BUTCHER WELL
Property description
Butcher Well is a joint venture between AngloGold Ashanti (70 percent) and Northern Star Resources (30 percent). Butcher Well encompasses two tenement packages, Butcher Well and Lake Carey, covering approximately 339.56km2. AngloGold Ashanti also holds a significant tenement package adjacent to the Northern Star joint venture properties.
The project is in the exploration stage in the early stages of study, with no Mineral Reserve declared. An Inferred Mineral Resource is stated, which account together forhas been the focus of a conceptual study. As the project is still in a concept study phase, no mining has taken place. Both open pit and underground mining options (using transverse longhole open stoping) are being explored.
Location
The Butcher Well project is located in the Laverton district of Western Australia, 20km southwest of AngloGold Ashanti's Sunrise Dam mine and 180km northeast of Kalgoorlie. Butcher Well is considered as a potential satellite operation to Sunrise Dam.
The Sunrise Dam airstrip is approximately 70km by road from the project, with a travel time of approximately 90 minutes on the road on the circumference of the southern part of Lake Carey. Lake Carey is a large proportionsalt lake that covers a part of the Crixás Greenstone Belt in central Brazil.western project area,with Sunrise Dam located to the east of the lake and the Butcher Well project located on the western shore.
Mineralisation style
The stratigraphyButcher Well Mineral Resource is an orogenic-style gold system hosted within the Laverton Greenstone Belt. The mineralisation is hosted within a basalt and is spatially associated with syenite dykes. Gold mineralisation within fresh rock principally occurs within steeply dipping north-south trending panels. Supergene gold dispersion and enrichment broadens the mineralised envelope within the near-surface saprolitic material. Much of this material has been previously exploited in shallow open pits.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.
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Processing plants and other available facilities
Power is likely to be generated on-site via diesel generators. Water can be sourced from the existing flooded pits or bores. Ore material will be trucked to Sunrise Dam via existing secondary roads.
Mineral processing
Ore from Butcher Well will be processed at AngloGold Ashanti's Sunrise Dam processing plant. Processing at Sunrise Dam is via a conventional three-stage crushing, two-stage milling CIL circuit, with a pyrite flotation and ultrafine grinding circuit commissioned in 2018. The gravity circuit recovers approximately 30 percent of the beltgold, with the CIL circuit and AARL elution used to recover the remainder. Electrowinning recovers gold from the Acacia reactor and eluate to produce gold doré. Plant throughput at Sunrise Dam is dominated by basics4.1Mtpa, and ultrabasics inButcher Well ore will supplement ore production from the lower sequences with volcano sedimentary units formingSunrise Dam underground mine to maintain the upper successions.mill throughput.
TROPICANA
Property description
Tropicana mine is a currently operating gold mine, and is a production stage property. It produces gold bearing ore from a number of open pits named from north to south: Boston Shaker, Tropicana, Havana and Havana South, and from an underground mine beneath the Boston Shaker and Tropicana open pits. The project is a joint operationbetween AngloGold Ashanti (70 percent), as operator, and AFB Resources Pty Limited, a subsidiary of Regis Resources Limited (30 percent).
Location
Tropicana is located 330km northeast of Kalgoorlie and 200km east of Laverton, Western Australia.
Mineralisation style
The gold deposits areTropicana deposit is hosted in an Archaen quartz-feldspathic gneiss within a sequence of schists, meta volcanicsmajor tectonic suture zone between the Yilgarn Craton and dolomites occurring in a typical greenstone belt structural setting. Gold mineralisationthe Albany-Fraser Orogen. Mineralisation is associated with massive sulphidesa strong hydrothermal alteration assemblege of biotite-sericite-pyrite, which post-dates peak graulite facies metamorphism. Gold is found within the pyrite.
Legal aspects and vein quartz material associatedtenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Australia—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
All surface infrastructure facilities are in place and operational. The processing plant and TSF are operating well, consistent with carbonaceousdesign specifications. The infrastructure includes, but is not limited to water supply, processing plant, mine, dewatering infrastructure, TSF, workshops, camp facilities and sericitic schists and dolomites. The oreshoots plungeairstrips. Power is supplied to the north-west with dipping between sixmine by on-site gas and 35 degrees. The stratigraphydiesel power stations, and natural gas is overturnedsupplied via an APA Operations (Pty) Limited pipeline. Underground development and thrusted towards the east, being recognized different shear thrust structures that are stacked and controls the mineralisation, behaving as frontal and lateral ramps and horses.production is ongoing.
Mineral processing
The greenstone belt lithologies are surrounded by Archaean tonalitic gneissprocessing plant has a capacity of 9.3Mtpa. The crushing circuit consists of a primary gyratory crusher, feeding a set of secondary cone crushers and granodioritestertiary rolls crushers. A 14MW and 6MW ball mill in parallel completes the grinding circuit. A CIL circuit is used to extract the gold from the ore, and a standard AARL elution and recovery systems is used to form gold doré bars.
The power provider, Kalgoorlie Power Systems, has built a dedicated power station consisting of TTG suite. a combination of diesel and gas powered generators with a capacity of 48.5MW.
PROJECTS
The metamorphic sediments are primarily composedprojects in Colombia form a significant contribution to AngloGold Ashanti’s Mineral Resource with the three projects: La Colosa, Minera de Cobre Quebradona ("Quebradona") and Gramalote, the latter of quartz, chlorite, sericite, carbonaceous materialwhich is a joint operationbetween AngloGold Ashanti (50 percent) and garnetiferous schists. The carbonates have been metamorphosed to ferroan dolomite marble with development of siderite and ankerite veiningB2Gold Corp. (“B2 Gold”) (50 percent). Mineral Reserve was declared for the first time at Quebradona in 2018.
During 2022, the Company's project team in the surrounding wallrock, usually associated with quartz veins. The basalts are relatively unaltered but do show pronounced stretching with elongationUnited States integrated the Mineral Resource resulting from AngloGold Ashanti's acquisitions of pillow structures being evident.Corvus Gold Inc. (“Corvus Gold”) and Coeur Sterling, Inc. (“Coeur Sterling”) using the Company’s evaluation framework. AngloGold Ashanti acquired North Bullfrog and Mother Lode as part of the Corvus Gold acquisition in January 2022 and Sterling (which includes the Crown Block deposits of SNA, Secret Pass and Daisy) through the acquisition of Coeur Sterling in November 2022.
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COLOMBIA
AngloGold Ashanti Colombia has three greenfields projects: Gramalote, La Colosa and Quebradona.
The Gramalote Projectproject is a Joint Venturejoint operation between AGA (51 percent and manager)AngloGold Ashanti (50 percent) and B2Gold (49(50 percent). The project is managed by B2Gold. It is situated in the Department of Antioquia, 124km northeast of Medellín.
The La Colosa project is wholly-owned and managed by AngloGold Ashanti. It is located in the Department of Tolima, 150km west of Bogotá, and 30km west of the major town of Ibagué.
The Quebradona project is wholly-owned and managed by AngloGold Ashanti and comprises the Nuevo Chaquiro deposit, a significant copper-gold porphyry. The Quebradona project is situated in the Middle Cauca region of Colombia, in the Department of Antioquia, 60km southwest of Medellín.
GRAMALOTE
Property description
Gramalote is a joint operation between AngloGold Ashanti (50 percent) and B2Gold (50 percent), with B2Gold being the manager. The property is currently an exploration stage project, with no Mineral Reserve declared. Gramalote is a semi-massive, superficial low-grade gold deposit suitable to be mined as a conventional open pit truck and shovel operation.
Following the completion of a feasibility study optimised work in the second half of 2022, both joint operation partners determined that the Gramalote project does not meet their investment thresholds for development. Following a comprehensive review of the alternatives relating to the project, both parties have commenced a joint sales process for the project, which is currently ongoing.
Location
The Gramalote property is located near the towntowns of Providencia and San JoseJosé del Nus within the municipality of San Roque northwest ofin the Department of Antioquia in the northwest of Colombia. It is approximately 230 km230km northwest of the Colombian capital of BogotaBogotá and 124 km124km northeast of MedellinMedellín, which is the regional capital of the Antioquia Department.
Mineralisation style
Gramalote is a pluton-related, mesothermal gold deposit genetically related to the host intrusion. The region encompassingalteration and mineralisation are structurally controlled, restricted to small halos along veins, sheeted veins and stockwork arrays with sulphide content being less than five percent. There are three distinct mineral deposits: Gramalote hasCentral, Monjas West (also referred to as Monjas) and Trinidad. These all have similar mineralisation and alteration styles, with vertical to sub-vertical mineralised zones extending from tens of metres to over 200m width, with variable strike lengths of up to 1km, and extending to depths of several hundred metres. Mineralisation is controlled by northeast to southwest trending strike-slip shear zones, north-northwest to south-southeast trending extensional shear zones and dilatational fractures. Gold mineralisation is associated with stockwork veining and in particular quartz with fine pyrite veins, quartz-carbonate veins, and quartz with coarse pyrite veins.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Key infrastructure planned includes: a long historyTSF, waste rock facility, site water management, a creek diversion, roads and bridges, central workshop, offices and camp, and a process plant. Power is expected to be supplied from the national power grid some 25km away. Access is through a national road located less than 1km from the project.
Mineral processing
A range of artisanal gold mining. Gramalote itself has had small scale artisanal miningtreatment options for several decades priorsulphide ore were investigated in previous studies, including whole ore leaching, heap leaching and a float leach process. The float leach process was selected as offering much better economics. Most of the metallurgical designs have been confirmed during the technical update to exploration workthe feasibility study conducted during 2022. The process design is as follows:
•Processing by a semi-autogenous grinding stream treating approximately 11Mtpa of sulphide ore;
•Gold recovery post milling by flotation and mineral discoveryconcentrate leach; and
•Conventional tailings deposition.
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LA COLOSA
Property description
La Colosa is wholly-owned and managed by AngloGold Ashanti. Drilling commencedIt is currently in 2006. In 2010, AngloGold Ashanti becameforce majeure due to delays in granting environmental permits by national and local environmental authorities and, as a result, the operatorproject remains on hold. La Colosa is an exploration stage project with no Mineral Reserve declared. However, open pit mining (with potentially some underground mining) is the preferred mining method.
The La Colosa project is currently at an early project stage and has identified a 51 percent share. Sufficient work was completed to enablenumber of possible technical options all of which are capital intensive. The most recent one year grant of force majeure, during which time the specified timelines for completing the various phases of the mining project under the concession contract are suspended, will expire on 22 June 2023.
Location
The project is located 150km west of Bogotá, and 30km west of the major town of Ibagué, which is the capital of the Tolima Department. Ibagué is the location of local government entities monitoring the project.
Mineralisation style
La Colosa is a Pre-Feasibility study to be completed in late 2013. This was then updatedlarge porphyry Au deposit located on the back of growth of the Mineral Resource, significant mineral processing opportunities identified by the project team and ongoing capital and operating cost optimisation. The enhanced Pre-Feasibility study was completed in September 2017 and approved by the board in November 2017.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Currently, the project has field infrastructure that supports access to the Mineral Resource with roads, accommodation, and office and surface infrastructure for pre-logging and organisation of the drilling core. There is a core shed facility in the city of Ibagué where geological and geotechnical logging was performed in the past.
Mineral processing
The project is currently at an early stage. However, flotation of sulphide ore is being considered as a treatment option.
QUEBRADONA
Property description
The Quebradona project is wholly-owned and managed by AngloGold Ashanti and comprises the Nuevo Chaquiro deposit, a significant copper-gold porphyry. The project was previously a joint venture between AngloGold Ashanti and B2Gold. It completed a conceptual study in 2016 as well as a pre-feasibility study in 2018, which supported first-time reporting of a metamorphic basement complexMineral Reserve. When B2Gold’s participation dropped below five percent during 2019, AngloGold Ashanti became the 100 percent owner and manager of the project. B2Gold will be entitled to a royalty equal to two percent of the net profit generated from the sale of any mineral product by the project.
Quebradona will be a copper mine with gold and silver as by-products and is at a development stage. The preferred mining method is sub-level caving to extract the mineral deposit from underground. While the permits for the construction and mining operation had been approved by the relevant mining authority (Secretaría de Minas de Antioquia), the national environmental authority (Autoridad Nacional de Licencias Ambientales or “ANLA”) archived AngloGold Ashanti's environmental licence application relating to the Quebradona project in November 2021. AngloGold Ashanti is in the process of preparing a new Environmental Impact Assessment for the Quebradona project to submit to ANLA in connection with its environmental licence application.
Location
The Quebradona project is situated in the Middle Cauca region of Colombia, in the Department of Antioquia, 90km southwest (104km commute via the national highway) of Medellín, the capital of the Antioquia Department.
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Mineralisation style
Five main targets have been identified in the exploration work, namely Nuevo Chaquiro, Aurora, Tenedor, Isabela, and La Sola. Nuevo Chaquiro is the most advanced and the Antioquia Batholith. sole mineral deposit considered in the feasibility study and licensing process. Nuevo Chaquiro, a significant copper-gold porphyry-style mineralised system, is one of five known porphyry centres on the property and has been the focus of exploration activities since the beginning of 2011 with more than 75km of drilling. Quebradona will be a copper mine with gold and silver as by-products.
Legal aspects and tenure
Refer to “Item 4B: Business Overview—The terraneRegulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Colombia—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
The Quebradona project site is close to an existing national highway, as well as state and rural roads, and high or medium voltage power infrastructure. The planned underground infrastructure consists of twin adits to access the orebody and number of internal vertical ore passes that gravity feeds to the main ore transfer level. The material will be transferred to a centralised (underground) crusher by load and haul dump vehicles.
Crushed material will then be transferred downhill to surface via a 6km conveyor, through a dedicated adit to a single coarse ore stockpile.
Mineral processing
Feasibility study test work confirmed that the ore will be treated by a typical porphyry copper flotation circuit producing copper and gold concentrate from the processing of approximately 6.2Mtpa of underground ore over a 23-year operating period. Ore extracted from the sub-level cave is crushed underground where tramp metal is removed before loading onto the underground conveyor system for delivery to the surface processing coarse ore stockpile with a 24-hour live capacity (approximately 21,300t).
The feasibility study proposes a processing circuit that includes primary crushing underground, secondary crushing, high pressure grinding rolls, ball milling, rougher-scavenger flotation for all elements (copper, gold, silver as well as pyrite), followed by regrinding of the Cajamarca-Valdivia basement consistsconcentrate and cleaning using a mix of metamorphic rocks, volcanic rocks, oceanic ophiolitescolumn and intrusive rocks.mechanically agitated cells. The Antioquia Batholithmajority of Upper Cretaceous age coversthe pyrite in the ore reports to the cleaner circuit tails and will be stored in a lined and eventually sealed impoundment within the TSF to avoid any potential acid rock drainage from the bulk high volume rougher tails. Molybdenum is present in the ore and is not planned for recovery in the initial stages of production.
UNITED STATES OF AMERICA (NEVADA)
All projects are exploration stage properties wholly-owned by AngloGold Ashanti. The Silicon project is located approximately 12km east of the town of Beatty in Nye County, Nevada, USA. The North Bullfrog project is located approximately 14km northwest of the town of Beatty. The Mother Lode project is located 10km east of the town of Beatty. The Secret Pass and Daisy deposits of the Sterling project are located 6km east of the town of Beatty. The remaining deposits of the Sterling project are located 14km southeast of the town of Beatty.
North Bullfrog and Mother Lode were acquired through the acquisition of Corvus Gold in January 2022. Sterling, which includes the Crown Block deposits of SNA, Secret Pass and Daisy, was acquired through the acquisition of Coeur Sterling in November 2022. The addition of the North Bullfrog project as well as the Mother Lode and Sterling projects into the AngloGold Ashanti North America portfolio, together with the Silicon project and other exploration targets, provides the opportunity to develop a world-class operational cluster within the Beatty district in Nevada.
The North Bullfrog project is the most advanced of AngloGold Ashanti’s exploration properties within the Beatty district, an area with a long history of gold mining. A first-time Mineral Resource at Silicon was declared in 2021. North Bullfrog, Mother Lode and Sterling declared Mineral Resource for the first time in 2022. The North Bullfrog project is currently progressing through a feasibility study, while the Silicon project is progressing through a pre-feasibility study.
NORTH BULLFROG
Property description
The North Bullfrog project is an exploration stage property wholly-owned and managed by AngloGold Ashanti. North Bullfrog is currently progressing through a feasibility study. The proposed mining method is conventional open pit mining. No Mineral Reserve has been declared at North Bullfrog.
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An additional geotechnical study is underway for feasibility study level pit design slope recommendations. The blast fragmentation size is another area of opportunity to deliver improved value in heap leach ROM ore recovery. The mining rate is an area of 7221 km2notable opportunity, as are selectivity studies.
Further metallurgical testing will be needed during operation to ensure that ore is routed to the correct processing option. The study and constitutes, the coredefinition of the Central Cordillera. About 92 percentunoxidised mineralised zones below the current mine plan are a significant opportunity and will add value if they are found to be sufficiently amenable to the process flowsheets available in the North Bullfrog project.
Location
The North Bullfrog project is located approximately 14km northwest of this intrusive corresponds to (normal phase) tonalite and granodiorite and eight percent to two subordinate typesthe town of rocks - granodiorite to quartz-monzonite and gabbro. From a structural pointBeatty in Nye County, Nevada, USA. The project is within the Bullfrog Hills subdistrict, of view, the Antioquia Batholith has a history of uprising complex and lasting. Major lineaments affect the batholith, especially in its eastern sector where traces of trend WNW varying to NW, recorded rotation and shear sinistral movement. Westward dextral transpression dominates along the Romeral Fault System.
Mineralisation style
The project lays within the Walker Lane mineral belt and the Southwestern Nevada Volcanic Field ("SWNVF"). The regional stratigraphy includes a basement of Late Proterozoic to Late Paleozoic metamorphic and sedimentary rocks. The North Bullfrog project is a combination of four mineralised deposits comprised of YellowJacket, Sierra Blanca, Jolly Jane, and Mayflower. The YellowJacket deposit is a very continuous high-grade vein within the moderate-grade stockwork mineralisation. The other three deposits are low to medium-grade.
Gold mineralisation at North Bullfrog is primarily hosted in the middle Miocene Sierra Blanca tuff. Two styles of precious metal epithermal mineralisation are present at the project: high-grade, structurally controlled stockwork goldfissure veins and silver deposit. Mineralisation is controlled by north-east/south-west trending shearassociated stockwork zones, and north-northwestlow-grade disseminated or replacement deposits within altered volcanic rocks. Two district-scale north striking normal faults are the dominant structural features in the project area, but several smaller-scale faults between them are important controls for distribution of hydrothermal alteration and gold mineralisation.
Legal aspects and tenure
Refer to south-southeast trending shear extensional zones affecting“Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—United States of America (Nevada)—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Currently, there is minimal infrastructure on-site, as it is an exploration area. Current access roads are unsealed and will require upgrading prior to commencing the tonalitesproject. The North Bullfrog project is in Nevada, which has several large mining operations currently in production, and granodioritesas such provides access to all required major mining and processing equipment. The transport infrastructure in Nevada is very well established and maintained.
The town of Beatty and urban centres in the region such as Pahrump and Las Vegas offer infrastructure and services that can support the operation.
Mineral processing
Processing will include heap leaching of lower grade oxide ores that have demonstrated amenability to this process during metallurgical characterisation programs. Higher grade material containing some coarse gold will be processed in a mill. The leached tails from the mill will be dewatered and combined with heap leach material delivered from the mine.
SILICON
Property description
The Silicon project is an exploration stage property wholly-owned and managed by AngloGold Ashanti. Mineral Resource conversion drilling was a focus during 2022, which supported an ongoing pre-feasibility study. The nature of the Antioquia Batholith. GoldSilicon mineralisation lends itself to conventional large scale open pit mining. No Mineral Reserve has been declared at Silicon.
Location
The Silicon project is associatedlocated approximately 12km east of the town of Beatty in Nye County, Nevada, USA. The project is within the Bare Mountains subdistrict, of the Bullfrog Hills-Bare Mountains District.
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Mineralisation style
The project resides within the southern extension of the Walker Lane trend and overlies the far-western margins of the SWNVF. The main mineralisation event occurred at approximately 11.6Ma in the hiatus between large scale ignimbrite events, in apparent association with three overprinting texture destructive alteration assemblages including potassic, quartz-sericite and sericite carbonate. Within these alteration zones, anomalousrhyolitic volcanism. There is a strong structural control to the higher-grade mineralisation, with it being centred on the Silicon-Tramway faults. Lower-grade disseminated gold mineralisation is hosted in a rhyolite flow ascribed to the rhyolite of Picture Rock. Actual gold deposition appears to have occurred under less acidic and low to intermediate sulphidation conditions. Mineralisation at Silicon exhibits a strong vertical control and is strongly associated with three specific typesthe emplacement of stockworkhydrothermal breccias and banded epithermal veins. Pre-existing subvertical faults, particularly centred on the Silicon-Tramway fault system, strongly controlled the emplacement of the quartz veining. These include quartz veinlets± pyrite veinlet zones. Disseminated adularia-quartz-pyrite mineralisation is a second-order stratigraphic feature and is closely associated with fine-grained pyrite, quartz-carbonate veinletsa favourable lava flow unit within the approximately 14Ma rhyolite of Picture Rock.
Legal aspects and quartz veinlets with granular pyrite.tenure
Processing plants and other available facilities
The combined ProvenSilicon project area currently has minimal infrastructure on site, as it is an exploration area. Current access roads are unsealed and Probable Ore Reservewill require upgrading prior to commencing the project. The scope of the group amountedSilicon project is similar to 49.6 million ouncesseveral large mining operations currently in production, and existing suppliers are well established in Nevada to support mining and processing operations. The transport infrastructure in Nevada is very well established and maintained.
The town of Beatty and urban centres in the region such as Pahrump and Las Vegas offer infrastructure and services that can support the operation.
Mineral processing
Mineralised rock from the Silicon project will be processed on heap leach pads. Material found to be amenable to leaching at coarse sizes will be delivered directly to the pad from the mine for leaching (ROM heap leaching). Deeper, less weathered mineralised rock that was found to be more sensitive to the particle size will be crushed as needed to improve the production from the leach facility.
MOTHER LODE
Property description
The Mother Lode project is an exploration stage property wholly-owned and managed by AngloGold Ashanti. A preliminary economic assessment was completed by Corvus Gold in 2020, resulting in the declaration of a Mineral Resource. AngloGold Ashanti acquired Corvus Gold in January 2022. The Mother Lode gold deposits contain mineralisation at or near the surface that is suitable for open pit mining methods. No Mineral Reserve has been declared at Mother Lode.
Location
The Mother Lode project is located approximately 10km east of the town of Beatty in Nye County, Nevada, USA. The project is within the Bare Mountains subdistrict, of the Bullfrog Hills-Bare Mountains District.
Mineralisation style
The project lies within the Walker Lane mineral belt and the SWNVF. Mother Lode is characterised as a sediment, intrusive and locally volcanic-hosted disseminated gold deposit. Mineralisation most closely resembles Carlin-type sediment-hosted gold deposits of north-central Nevada. Mother Lode consists of structurally and stratigraphically-controlled disseminated gold mineralisation hosted primarily in rhyolite porphyry dykes, sedimentary rocks of Joshua Hollow, and to a lesser degree, Paleozoic sedimentary rocks. The primary structural control feeding mineralisation at Mother Lode is a series of north-trending, 50° to 70° west-dipping rhyolite dyke-filled structures. Mineralisation is both semi-tabular and highly irregular as fluids ascended along dyke-filled structures in the underlying Paleozoic rocks through the Tertiary unconformity and expanded upward into the Tertiary section. Mineralising fluids appear to have bled out laterally away from mineralised dykes into favourable permeable lithologies and secondary structures.
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Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—United States of America (Nevada)—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
The Mother Lode project area currently has minimal infrastructure on-site, as it is an exploration area with a reclaimed overburden facility and a small open pit. Current access roads are unsealed and will require upgrading prior to commencing the project. The Mother Lode project is in Nevada, which has several large mining operations currently in production, and as such provides access to all required major mining and processing equipment. The transport infrastructure in Nevada is very well established and maintained.
The town of Beatty and urban centres in the region such as Pahrump and Las Vegas offer infrastructure and services that can support the operation.
Mineral processing
Previous operations included crushing and heap leaching of oxide ores from the Mother Lode pit. Mineralised material from the expanded pit will be processed either without crushing on a heap leach pad (oxidised material) or in a mill using agitated tank bio-oxidation and cyanidation (sulphide). Although the sulphide mineral samples responded well to this method, additional work will need to be done to ensure that bio-oxidation is the most appropriate pre-oxidation process for this project.
STERLING
Property description
The Sterling project is an exploration stage property, wholly-owned and managed by AngloGold Ashanti. In November 2022, AngloGold Ashanti acquired the Sterling project through its acquisition of Coeur Sterling. The Sterling project includes the Crown Block deposits of SNA, Secret Pass and Daisy, and the tenements surrounding the properties. The elevation of the operation is around 1,200m, on the lower, eastern slopes of Bare Mountain. The local terrain is characterised by rounded or craggy ridges separated by ephemeral washes. The northern “Crown” strip comprises the general area of Fluorspar Canyon. No Mineral Reserve has been declared at Sterling.
Open pit mining of the Sterling mine deposit began in 1980 and continued until 1989. Underground mining began in 1980 and proceeded until mid-1997 when market conditions impacted profitability. The Crown deposits contain mineralisation at or near the surface that is suitable for open pit mining methods.
The Mineral Resource is based on estimates that contain inherent risk and depend upon geological interpretation and statistical inferences drawn from drilling and sampling analyses. Based on uncertainty due to geological interpretation from widespread drill hole information, an Inferred Mineral Resource confidence was applied to all of the Sterling Mineral Resource. Further Mineral Resource drilling and appropriate analyses will be required to upgrade the confidence to an Indicated Mineral Resource.
Location
The Sterling property is situated in southern Nye County, Nevada, near the town of Beatty, about 185 km northwest of Las Vegas. The project is within the Bare Mountains subdistrict, of the Bullfrog Hills-Bare Mountains District. The Secret Pass and Daisy deposits of the Sterling project are located 6km east of the town of Beatty. The remaining deposits of the Sterling project are located 14km southeast of the town of Beatty.
Mineralisation style
The Sterling deposits are characterised as either epithermal deposits (Secret Pass) like the North Bullfrog and Silicon deposits or Carlin type deposits (Daisy, Sterling and SNA). The Carlin-type deposits are sediment-hosted, disseminated precious metal deposits, found in the Great Basin province of eastern Nevada which formed during profound crustal extension and high heat flow beginning in the mid-Tertiary (approximately 35Ma to 40Ma).
Sterling is typical of sediment-hosted, disseminated precious metal deposits also termed Carlin-type deposits. Gold occurs in the rims of microscopic arsenian pyrite grains. Significant mineralisation occurs in:
•Gouge or breccia in the Reudy Fault zone and locally along the dyke margin;
•Adjacent to the fault (on both sides) in Bonanza King silty dolostone or dolostone, and to a lesser degree in underlying Carrara silty limestone or limestone (proximity to the Reudy Fault is not requisite for mineralisation); and
•In hydrothermal breccias derived from the above lithologies.
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Legal aspects and tenure
Refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—United States of America (Nevada)—AngloGold Ashanti’s rights and permits”.
Processing plants and other available facilities
Sterling is accessible by road from Las Vegas, a distance of 185km via U.S. Highway 95. A good secondary, 13km long gravel road turns off the north side of the highway at mile 45.9, 24km southeast of the town of Beatty. The gravel road is maintained by Nye County and Sterling personnel. Las Vegas is the nearest major airport. Mine buildings consist of several trailers used for office work, geological research and logging, sample preparation (during mining), and personnel facilities. A large steel container is used to securely store 144 Zone drill core, pulps, and rejects. There is also a large mechanical shop for on-site maintenance of equipment and vehicles. Electrical power is provided by a generator on-site. The mine has no living quarters or canteen and is currently on care and maintenance.
The town of Beatty and urban centres in the region such as Pahrump and Las Vegas offer infrastructure and services that can support the operation.
Mineral processing
Previous processing included heap leaching the oxidised Sterling mine ore. After mine production ceased, the heap leach pad continued to be turned over until October 2001, with additional ore from a low-grade stockpile added in early 2001. Gold recovery continued until August 2002 when a final strip was carried out. Mineralised material from the Crown deposits will be processed either without crushing on a heap leach pad (oxidised material) or in a mill using agitated tank bio-oxidation and cyanidation (sulphide).
MINERAL RESOURCE AND MINERAL RESERVE
In October 2018, the United States Securities and Exchange Commission (“SEC”) adopted Subpart 1300 of Regulation S-K (17 CFR § 229.1300) (“Regulation S-K 1300”), along with amendments to related rules and guidance, in order to modernise the property disclosure requirements for mining registrants under the Securities Act and the Securities Exchange Act. Registrants engaged in mining operations were required to comply with the final rules of Regulation S-K 1300 for the first fiscal year beginning on or after 1 January 2021. Accordingly, this is the second fiscal year in which the Company is providing disclosure in compliance with Regulation S-K 1300.
Mineral Resource and Mineral Reserve are estimates that contain inherent risk and depend upon geological interpretation and statistical inferences drawn from drilling and sampling analysis, which may prove to be unreliable. For additional information on the risks and uncertainties associated with AngloGold Ashanti’s mining properties, see “Item 3D: Risk Factors".
Price assumptions
The Mineral Resource and Mineral Reserve are based on the use of reasonable economic assumptions which provide a reasonable basis for establishing the reasonable prospects of economic extraction for the Mineral Resource, and for establishing the expected price for the Mineral Reserve. These economic assumptions, which include long-range commodity price, exchange rate forecasts and management estimates using a range of techniques including historic price averages, are prepared in-house and reviewed annually. AngloGold Ashanti selects a conservative Mineral Reserve price relative to its peers. This is done to fit into its strategy of including a margin in the mine planning process. The resultant plan is then valued at a higher business planning price.
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Gold price
The following gold prices were used as the basis for estimation, unless otherwise stated:
Local prices of gold(1) | |||||||||||||||||
Gold price(1) | Australia | Brazil | Argentina | Colombia | |||||||||||||
| $/oz | AUD/oz | BRL/oz | ARS/oz | COP/oz | |||||||||||||
| Mineral Reserve | |||||||||||||||||
| 2022 | 1,400 | 1,919 | 7,830 | 208,000 | 4,261,380 | ||||||||||||
| 2021 | 1,200 | 1,633 | 6,182 | 134,452 | 3,849,000 | ||||||||||||
| Mineral Resource | |||||||||||||||||
| 2022 | 1,750 | 2,416 | 9,401 | 253,500 | 6,076,725 | ||||||||||||
| 2021 | 1,500 | 2,072 | 7,940 | 173,065 | 5,336,250 | ||||||||||||
Copper price
The following copper prices(2) were used as the basis for estimation, unless otherwise stated:
Copper price(1)(2) | Local price of copper(1)(2) | |||||||
| $/lb | COP/lb | |||||||
| Mineral Reserve | ||||||||
| 2022 | 2.90 | 9,302 | ||||||
| 2021 | 2.90 | 9,302 | ||||||
| Mineral Resource | ||||||||
| 2022 | 3.50 | 12,451 | ||||||
| 2021 | 3.50 | 12,451 | ||||||
Notes:
(1) Considered over the period 2012 to 2022.
(2) Only applicable to the Quebradona project.
The Mineral Resource, as reported, is exclusive(1) of the Mineral Reserve component. Mineral Resource and Mineral Reserve estimates are reported as at 31 December 2017.2022 and are net of 2022 production depletion.
| 2017 | 2017 | 2016 | Units | |||||||
(3 year average) | (Ore Reserve) | (3 year average) | ||||||||
| Ore Reserve Gold Price | 1,222 | 1,100 | 1,225 | US$ per ounce | ||||||
The AngloGold Ashanti Oregold Measured and Indicated Mineral Resource(exclusive of Mineral Reserve decreased(*)) increased from 50.0Moz51.7Moz as at 31 December 2021 to 60.6Moz as at 31 December 2022. The net increase of 8.8Moz for Measured and Indicated Mineral Resource includes 3.6Moz in December 2016relation to 49.6Mozthe first-time reporting of the Mineral Resource for North Bullfrog and Mother Lode (following the Corvus Gold acquisition). Increases due to changes in December 2017. This gross annual decreaseeconomic assumptions of 0.4Moz includes depletion of 4.3Moz. The balance of 3.9Moz additions in Ore Reserve, results from1.3Moz, and exploration and modelling changes of 4.0Moz6.6Moz were partially offset by other factors of 2.7Moz.
The AngloGold Ashanti gold Inferred Mineral Resource(exclusive of Mineral Reserve(*)) decreased from 42.3Moz as at 31 December 2021 to 40.8Moz as at 31 December 2022. The net decrease of 1.6Moz for Inferred Mineral Resource includes decreases due to exploration and modelling changes of 3.1Moz and other factors of 0.7Moz, whilst1.3Moz. This decrease was partially offset by an increase of 1.5Moz in relation to the first-time reporting of the Mineral Resource for North Bullfrog, Mother Lode and Sterling (following the Corvus Gold and Coeur Sterling acquisitions), and changes in economic assumptions resulted in a 0.8Moz reduction. of 1.3Moz.
The Ore Reserve has beenMineral Resource was estimated using a gold price of US$1,100/$1,750/oz, (2016: US$1,100/unless otherwise stated (2021: $1,500/oz). Refer to the below table, prepared in accordance with Table 1 to Paragraph (b) of Item 1303 of Regulation S-K.
Copper
The principal changes in AngloGold Ashanti’s OreAshanti copper Mineral Resource(exclusive of Mineral Reserve(*)) remained unchanged at 1.32Mt (2,902Mlb) Measured and Indicated Mineral Resource and 1.47Mt (3,231Mlb) Inferred Mineral Resource as at 31 December 2017,2022 as compared to 31 December 2021, as a feasibility study optimisation is still ongoing and no
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additional exploration has been completed at Quebradona. The Mineral Resource was estimated at a copper price of $3.50/lb, unless otherwise stated (2021: $3.50/lb). Refer to the below table, prepared in accordance with those publishedTable 1 to Paragraph (b) of Item 1303 of Regulation S-K.
MINERAL RESERVE
Gold
The AngloGold Ashanti gold Mineral Reserve increased from 28.1Moz as at 31 December 2016, are2021 to 28.8Moz as follows:at 31 December 2022. This excludes Gramalote, as the joint operation partner has decided not to publish the Mineral Reserve. This annual net increase of 0.7Moz includes additions due to exploration and modelling changes of 2.9Moz and changes in economic assumptions of 1.0Moz. This increase was partially offset by depletion of 2.9Moz and reductions due to other factors of 0.3Moz. The Mineral Reserve was estimated using a gold price of $1,400/oz, unless otherwise stated (2021: $1,200/oz). Refer to the below table, prepared in accordance with Table 2 to Paragraph (b) of Item 1303 of Regulation S-K.
The AngloGold Ashanti strives to actively create value by growing its major asset - the Ore Reserve. This drive is based on a well-defined brownfields and greenfields exploration programme, innovation in both geological modeling and mine planning and optimization of its asset portfolio.
Notes:
(*) The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
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The below table is prepared in accordance with Table 1 to Paragraph (b) of Item 1303 of Regulation S-K - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for 2017. However, with the conclusion of the salesgold at the end of February 2018, the following reductionsfiscal year ended 31 December 2022, based on an estimated gold price of $1,750/oz, unless otherwise stated.
Mineral Resource (1) | Measured | Indicated | Measured and Indicated Total | Inferred | ||||||||||||||||||||||||||||||||||||||||||||||
| Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | Tonnes (3) | Grade | Contained Gold | ||||||||||||||||||||||||||||||||||||||
| as at 31 December 2022 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | ||||||||||||||||||||||||||||||||||
| Africa Region | 11.14 | 4.23 | 47.19 | 1.52 | 259.42 | 1.93 | 499.44 | 16.06 | 270.57 | 2.02 | 546.63 | 17.57 | 201.72 | 3.01 | 607.95 | 19.55 | ||||||||||||||||||||||||||||||||||
| Democratic Republic of the Congo | 7.22 | 3.18 | 22.97 | 0.74 | 22.15 | 2.64 | 58.44 | 1.88 | 29.37 | 2.77 | 81.41 | 2.62 | 13.16 | 2.61 | 34.43 | 1.11 | ||||||||||||||||||||||||||||||||||
Kibali (45 %)(2)(9)(13) | 7.22 | 3.18 | 22.97 | 0.74 | 22.15 | 2.64 | 58.44 | 1.88 | 29.37 | 2.77 | 81.41 | 2.62 | 13.16 | 2.61 | 34.43 | 1.11 | ||||||||||||||||||||||||||||||||||
| Ghana | 2.12 | 7.89 | 16.72 | 0.54 | 82.17 | 2.94 | 241.81 | 7.77 | 84.28 | 3.07 | 258.53 | 8.31 | 73.25 | 5.27 | 385.68 | 12.40 | ||||||||||||||||||||||||||||||||||
Iduapriem(13) | 0.15 | 0.89 | 0.14 | — | 54.50 | 1.36 | 74.21 | 2.39 | 54.66 | 1.36 | 74.35 | 2.39 | 33.45 | 1.42 | 47.52 | 1.53 | ||||||||||||||||||||||||||||||||||
Obuasi(13)(14) | 1.96 | 8.44 | 16.59 | 0.53 | 27.66 | 6.06 | 167.59 | 5.39 | 29.63 | 6.22 | 184.18 | 5.92 | 39.80 | 8.50 | 338.17 | 10.87 | ||||||||||||||||||||||||||||||||||
| Guinea | — | — | — | — | 114.79 | 1.02 | 117.24 | 3.77 | 114.79 | 1.02 | 117.24 | 3.77 | 79.10 | 1.16 | 92.13 | 2.96 | ||||||||||||||||||||||||||||||||||
Siguiri (85 %)(2)(13) | — | — | — | — | 114.79 | 1.02 | 117.24 | 3.77 | 114.79 | 1.02 | 117.24 | 3.77 | 79.10 | 1.16 | 92.13 | 2.96 | ||||||||||||||||||||||||||||||||||
| Tanzania | 1.80 | 4.15 | 7.50 | 0.24 | 40.32 | 2.03 | 81.96 | 2.63 | 42.12 | 2.12 | 89.45 | 2.88 | 36.21 | 2.64 | 95.71 | 3.08 | ||||||||||||||||||||||||||||||||||
Geita(13) | 1.80 | 4.15 | 7.50 | 0.24 | 40.32 | 2.03 | 81.96 | 2.63 | 42.12 | 2.12 | 89.45 | 2.88 | 36.21 | 2.64 | 95.71 | 3.08 | ||||||||||||||||||||||||||||||||||
| Americas Region | 16.88 | 4.20 | 70.94 | 2.28 | 41.41 | 2.77 | 114.85 | 3.69 | 58.29 | 3.19 | 185.78 | 5.97 | 61.85 | 3.57 | 220.98 | 7.10 | ||||||||||||||||||||||||||||||||||
| Argentina | 4.82 | 2.88 | 13.89 | 0.45 | 17.49 | 2.23 | 39.09 | 1.26 | 22.31 | 2.37 | 52.98 | 1.70 | 5.00 | 2.35 | 11.74 | 0.38 | ||||||||||||||||||||||||||||||||||
Cerro Vanguardia (92.5 %)(2)(4)(13) | 4.82 | 2.88 | 13.89 | 0.45 | 17.49 | 2.23 | 39.09 | 1.26 | 22.31 | 2.37 | 52.98 | 1.70 | 5.00 | 2.35 | 11.74 | 0.38 | ||||||||||||||||||||||||||||||||||
| Brazil | 12.06 | 4.73 | 57.05 | 1.83 | 23.92 | 3.17 | 75.76 | 2.44 | 35.98 | 3.69 | 132.80 | 4.27 | 56.85 | 3.68 | 209.24 | 6.73 | ||||||||||||||||||||||||||||||||||
AGA Mineração - Córrego do Sítio(13) | 3.07 | 3.31 | 10.18 | 0.33 | 7.92 | 3.19 | 25.24 | 0.81 | 10.99 | 3.22 | 35.42 | 1.14 | 20.46 | 3.94 | 80.63 | 2.59 | ||||||||||||||||||||||||||||||||||
AGA Mineração - Cuiabá(5)(13) | 4.17 | 7.66 | 31.96 | 1.03 | 2.73 | 5.83 | 15.93 | 0.51 | 6.91 | 6.93 | 47.89 | 1.54 | 12.56 | 4.95 | 62.20 | 2.00 | ||||||||||||||||||||||||||||||||||
AGA Mineração - Lamego(5)(13) | 1.18 | 2.92 | 3.44 | 0.11 | 3.05 | 1.98 | 6.05 | 0.19 | 4.23 | 2.24 | 9.49 | 0.31 | 4.56 | 2.12 | 9.65 | 0.31 | ||||||||||||||||||||||||||||||||||
Serra Grande(13) | 3.63 | 3.15 | 11.46 | 0.37 | 10.21 | 2.79 | 28.54 | 0.92 | 13.85 | 2.89 | 40.01 | 1.29 | 19.26 | 2.95 | 56.76 | 1.82 | ||||||||||||||||||||||||||||||||||
| Australia Region | 38.85 | 1.44 | 55.96 | 1.80 | 30.58 | 1.58 | 48.40 | 1.56 | 69.44 | 1.50 | 104.36 | 3.36 | 55.36 | 2.25 | 124.79 | 4.01 | ||||||||||||||||||||||||||||||||||
Sunrise Dam(13) | 20.31 | 1.64 | 33.27 | 1.07 | 22.79 | 1.56 | 35.60 | 1.14 | 43.09 | 1.60 | 68.87 | 2.21 | 29.28 | 2.02 | 59.19 | 1.90 | ||||||||||||||||||||||||||||||||||
Butcher Well (70 %)(2)(11) | — | — | — | — | — | — | — | — | — | — | — | — | 3.06 | 3.49 | 10.67 | 0.34 | ||||||||||||||||||||||||||||||||||
Tropicana (70 %)(2)(13) | 18.55 | 1.22 | 22.69 | 0.73 | 7.79 | 1.64 | 12.80 | 0.41 | 26.34 | 1.35 | 35.49 | 1.14 | 23.02 | 2.39 | 54.93 | 1.77 | ||||||||||||||||||||||||||||||||||
| Projects | 98.19 | 0.40 | 38.96 | 1.25 | 1,311.77 | 0.77 | 1,007.67 | 32.40 | 1,409.96 | 0.74 | 1,046.63 | 33.65 | 682.59 | 0.46 | 314.29 | 10.10 | ||||||||||||||||||||||||||||||||||
| Colombia | 45.15 | 0.37 | 16.93 | 0.54 | 1,071.76 | 0.78 | 838.58 | 26.96 | 1,116.91 | 0.77 | 855.51 | 27.51 | 558.94 | 0.44 | 244.17 | 7.85 | ||||||||||||||||||||||||||||||||||
Gramalote (50 %)(2)(10)(11) | — | — | — | — | 89.36 | 0.70 | 62.38 | 2.01 | 89.36 | 0.70 | 62.38 | 2.01 | 35.11 | 0.53 | 18.67 | 0.60 | ||||||||||||||||||||||||||||||||||
La Colosa(7)(11) | — | — | — | — | 833.49 | 0.87 | 726.31 | 23.35 | 833.49 | 0.87 | 726.31 | 23.35 | 217.89 | 0.71 | 154.86 | 4.98 | ||||||||||||||||||||||||||||||||||
Quebradona(4)(6)(8)(12) | 45.15 | 0.37 | 16.93 | 0.54 | 148.91 | 0.34 | 49.89 | 1.60 | 194.06 | 0.34 | 66.82 | 2.15 | 305.94 | 0.23 | 70.64 | 2.27 | ||||||||||||||||||||||||||||||||||
| United States of America | 53.04 | 0.42 | 22.04 | 0.71 | 240.01 | 0.70 | 169.09 | 5.44 | 293.05 | 0.65 | 191.12 | 6.14 | 123.65 | 0.57 | 70.13 | 2.25 | ||||||||||||||||||||||||||||||||||
North Bullfrog(4)(11) | 28.71 | 0.24 | 6.77 | 0.22 | 82.54 | 0.37 | 30.18 | 0.97 | 111.25 | 0.33 | 36.95 | 1.19 | 44.35 | 0.25 | 11.07 | 0.36 | ||||||||||||||||||||||||||||||||||
Silicon(4)(11) | — | — | — | — | 121.56 | 0.87 | 105.90 | 3.40 | 121.56 | 0.87 | 105.90 | 3.40 | 36.03 | 0.70 | 25.23 | 0.81 | ||||||||||||||||||||||||||||||||||
Mother Lode(4)(8)(11) | 24.33 | 0.63 | 15.26 | 0.49 | 35.91 | 0.92 | 33.01 | 1.06 | 60.24 | 0.80 | 48.28 | 1.55 | 9.86 | 0.55 | 5.39 | 0.17 | ||||||||||||||||||||||||||||||||||
Sterling(11)(15) | — | — | — | — | — | — | — | — | — | — | — | — | 33.41 | 0.85 | 28.43 | 0.91 | ||||||||||||||||||||||||||||||||||
| AngloGold Ashanti Total | 165.06 | 1.29 | 213.05 | 6.85 | 1,643.18 | 1.02 | 1,670.35 | 53.70 | 1,808.25 | 1.04 | 1,883.40 | 60.55 | 1,001.52 | 1.27 | 1,268.02 | 40.77 | ||||||||||||||||||||||||||||||||||
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Notes:
Rounding of numbers may result in Orecomputational discrepancies in the Mineral Resource tabulations. The Mineral Resource estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Resource at the end of the last completed fiscal year and the preceding fiscal year will be detailed for material properties, if applicable. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
(1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”)
is defined as the inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. (2) Mineral Resource attributable to AngloGold Ashanti’s percentage interest shown.
(3) "Tonnes" refers to a metric tonne which is equivalent to 1,000 kilograms.
(4) The inclusive Mineral Resource contains 81.7Moz of silver for Cerro Vanguardia; 92.9Moz of silver for Quebradona; 6.0Moz of silver for North Bullfrog;
17.8Moz of silver for Silicon and 1.9Moz of silver for Mother Lode as a by-product.
(5) The inclusive Mineral Resource contains 1.60 million tonnes of sulphur as a by-product for AGA Mineração - Cuiabá and Lamego.
(6) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product.
(7) Based on a gold price of $1,400/oz.
(8) Based on a gold price of $1,500/oz.
(9) Operated by Barrick Gold Corporation ("Barrick"). AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have, relied on information provided by Barrick. Based on a gold price of $1,700/oz. (10) Managed by B2Gold Corp. Based on a gold price of $1,800/oz.
(11) Property currently in an exploration stage.
(12) Property currently in a development stage.
(13) Property currently in a production stage.
(14) Open pit based on a gold price of $1,600/oz.
(15) Based on a gold price of $1,700/oz.
The below table is prepared in accordance with Table 1 to Paragraph (b) of Item 1303 of Regulation S-K - Summary Mineral Resource(1) (exclusive of Mineral Reserve) for copper at the end of the fiscal year ended 31 December 2022, based on an estimated copper price of $3.50/lb, unless otherwise stated.
Mineral Resource (1) | Measured | Indicated | Measured and Indicated Total | Inferred | ||||||||||||||||||||||||||||||||||||||||||||||
| Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | Tonnes (2) | Grade | Contained Copper | ||||||||||||||||||||||||||||||||||||||
| as at 31 December 2022 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | ||||||||||||||||||||||||||||||||||
| Americas Region | 45.15 | 0.69 | 0.31 | 684 | 148.91 | 0.68 | 1.01 | 2,218 | 194.06 | 0.68 | 1.32 | 2,902 | 305.94 | 0.48 | 1.47 | 3,231 | ||||||||||||||||||||||||||||||||||
| Colombia | 45.15 | 0.69 | 0.31 | 684 | 148.91 | 0.68 | 1.01 | 2,218 | 194.06 | 0.68 | 1.32 | 2,902 | 305.94 | 0.48 | 1.47 | 3,231 | ||||||||||||||||||||||||||||||||||
Quebradona(3)(4)(5) | 45.15 | 0.69 | 0.31 | 684 | 148.91 | 0.68 | 1.01 | 2,218 | 194.06 | 0.68 | 1.32 | 2,902 | 305.94 | 0.48 | 1.47 | 3,231 | ||||||||||||||||||||||||||||||||||
| AngloGold Ashanti Total | 45.15 | 0.69 | 0.31 | 684 | 148.91 | 0.68 | 1.01 | 2,218 | 194.06 | 0.68 | 1.32 | 2,902 | 305.94 | 0.48 | 1.47 | 3,231 | ||||||||||||||||||||||||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Resource tabulations. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage and grade to two decimals and content for copper with no decimals. “Mlb” refers to million pounds.(1) All disclosure of Mineral Resource is exclusive of Mineral Reserve. The Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”)
is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied.
(2) "Tonnes" refers to a metric tonne which is equivalent to 1,000 kilograms.
(3) The inclusive Mineral Resource contains 92.9Moz of silver as a by-product.
(4) The inclusive Mineral Resource contains 89.3 kilotonnes of molybdenum as a potential by-product.
(5) Property currently in a development stage.
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The below table is prepared in accordance with Table 2 to Paragraph (b) of Item 1303 of Regulation S-K - Summary Mineral Reserve for gold at the end of the fiscal year ended 31 December 2022, based on an estimated gold price of $1,400/oz, unless otherwise stated.
| Mineral Reserve | Proven | Probable | Total Mineral Reserve | |||||||||||||||||||||||||||||||||||
| Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold | Tonnes (2) | Grade | Contained Gold | |||||||||||||||||||||||||||||
| as at 31 December 2022 | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | Million | g/t | Tonnes | Moz | ||||||||||||||||||||||||||
| Africa Region | 50.54 | 2.37 | 120.00 | 3.86 | 213.89 | 2.43 | 520.44 | 16.73 | 264.43 | 2.42 | 640.45 | 20.59 | ||||||||||||||||||||||||||
| Democratic Republic of the Congo | 14.49 | 3.47 | 50.33 | 1.62 | 29.17 | 3.15 | 91.86 | 2.95 | 43.67 | 3.26 | 142.19 | 4.57 | ||||||||||||||||||||||||||
Kibali (45 %)(1)(5)(8) | 14.49 | 3.47 | 50.33 | 1.62 | 29.17 | 3.15 | 91.86 | 2.95 | 43.67 | 3.26 | 142.19 | 4.57 | ||||||||||||||||||||||||||
| Ghana | 11.31 | 4.42 | 50.03 | 1.61 | 70.08 | 3.78 | 264.67 | 8.51 | 81.39 | 3.87 | 314.70 | 10.12 | ||||||||||||||||||||||||||
Iduapriem(8) | 6.84 | 1.07 | 7.30 | 0.23 | 48.83 | 1.39 | 68.00 | 2.19 | 55.67 | 1.35 | 75.30 | 2.42 | ||||||||||||||||||||||||||
Obuasi(8) | 4.47 | 9.55 | 42.73 | 1.37 | 21.25 | 9.26 | 196.67 | 6.32 | 25.72 | 9.31 | 239.40 | 7.70 | ||||||||||||||||||||||||||
| Guinea | 15.20 | 0.65 | 9.95 | 0.32 | 75.68 | 0.83 | 62.72 | 2.02 | 90.88 | 0.80 | 72.67 | 2.34 | ||||||||||||||||||||||||||
Siguiri (85 %)(1)(8) | 15.20 | 0.65 | 9.95 | 0.32 | 75.68 | 0.83 | 62.72 | 2.02 | 90.88 | 0.80 | 72.67 | 2.34 | ||||||||||||||||||||||||||
| Tanzania | 9.54 | 1.02 | 9.70 | 0.31 | 38.95 | 2.60 | 101.19 | 3.25 | 48.49 | 2.29 | 110.89 | 3.57 | ||||||||||||||||||||||||||
Geita(8) | 9.54 | 1.02 | 9.70 | 0.31 | 38.95 | 2.60 | 101.19 | 3.25 | 48.49 | 2.29 | 110.89 | 3.57 | ||||||||||||||||||||||||||
| Americas Region | 8.16 | 3.39 | 27.64 | 0.89 | 23.64 | 2.79 | 65.88 | 2.12 | 31.80 | 2.94 | 93.53 | 3.01 | ||||||||||||||||||||||||||
| Argentina | 2.22 | 3.20 | 7.11 | 0.23 | 9.16 | 1.75 | 16.00 | 0.51 | 11.38 | 2.03 | 23.11 | 0.74 | ||||||||||||||||||||||||||
Cerro Vanguardia (92.5 %)(1)(3)(8) | 2.22 | 3.20 | 7.11 | 0.23 | 9.16 | 1.75 | 16.00 | 0.51 | 11.38 | 2.03 | 23.11 | 0.74 | ||||||||||||||||||||||||||
| Brazil | 5.93 | 3.46 | 20.54 | 0.66 | 14.48 | 3.44 | 49.88 | 1.60 | 20.41 | 3.45 | 70.41 | 2.26 | ||||||||||||||||||||||||||
AGA Mineração - Córrego do Sítio(8) | 1.17 | 2.95 | 3.44 | 0.11 | 2.21 | 4.32 | 9.53 | 0.31 | 3.37 | 3.84 | 12.97 | 0.42 | ||||||||||||||||||||||||||
AGA Mineração - Cuiabá(4)(8) | 2.37 | 4.57 | 10.82 | 0.35 | 5.99 | 4.22 | 25.28 | 0.81 | 8.35 | 4.32 | 36.11 | 1.16 | ||||||||||||||||||||||||||
AGA Mineração - Lamego(4)(8) | 0.35 | 2.54 | 0.89 | 0.03 | 1.18 | 2.71 | 3.20 | 0.10 | 1.53 | 2.67 | 4.10 | 0.13 | ||||||||||||||||||||||||||
Serra Grande(8) | 2.05 | 2.63 | 5.38 | 0.17 | 5.10 | 2.32 | 11.86 | 0.38 | 7.15 | 2.41 | 17.24 | 0.55 | ||||||||||||||||||||||||||
| Australia Region | 21.96 | 1.54 | 33.88 | 1.09 | 22.30 | 2.15 | 47.88 | 1.54 | 44.26 | 1.85 | 81.76 | 2.63 | ||||||||||||||||||||||||||
Sunrise Dam(8) | 12.02 | 1.51 | 18.17 | 0.58 | 6.55 | 2.72 | 17.83 | 0.57 | 18.57 | 1.94 | 36.00 | 1.16 | ||||||||||||||||||||||||||
Tropicana (70 %)(1)(8) | 9.94 | 1.58 | 15.71 | 0.51 | 15.74 | 1.91 | 30.05 | 0.97 | 25.69 | 1.78 | 45.76 | 1.47 | ||||||||||||||||||||||||||
| Projects | — | — | — | — | 120.01 | 0.67 | 80.83 | 2.60 | 120.01 | 0.67 | 80.83 | 2.60 | ||||||||||||||||||||||||||
| Colombia | — | — | — | — | 120.01 | 0.67 | 80.83 | 2.60 | 120.01 | 0.67 | 80.83 | 2.60 | ||||||||||||||||||||||||||
Quebradona(3)(6)(7) | — | — | — | — | 120.01 | 0.67 | 80.83 | 2.60 | 120.01 | 0.67 | 80.83 | 2.60 | ||||||||||||||||||||||||||
| AngloGold Ashanti Total | 80.66 | 2.25 | 181.53 | 5.84 | 379.84 | 1.88 | 715.03 | 22.99 | 460.49 | 1.95 | 896.56 | 28.83 | ||||||||||||||||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. The Mineral Reserve estimates with respect to our material properties have been prepared by the Qualified Persons (employed by AngloGold Ashanti unless stated otherwise). The net difference between the Mineral Reserve at the end of the last completed fiscal year and the preceding fiscal year will take place:be detailed for material properties, if applicable. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals. All ounces are Troy ounces. “Moz” refers to million ounces.
(1) Mineral Reserve attributable to AngloGold Ashanti’s percentage interest shown.
(3) The Mineral Reserve 0.36Mozcontains 21.9Moz of silver for Cerro Vanguardia and 28.1Moz of silver for Quebradona to be recovered as a by-product.
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(5) Operated by Barrick. AngloGold Ashanti has recognised that in preparing this annual report, the Qualified Persons have relied on information provided by Barrick. Based on a gold price of $1,300/oz. Pamoa Main pit was based on a gold price of $1,400/oz and Pamoa South pit was based on a gold price of $1,500/oz. (6) Based on a gold price of $1,200/oz. (7) Property currently in a development stage.
(8) Property currently in a production stage.
The below table is prepared in accordance with Table 2 to Paragraph (b) of Item 1303 of Regulation S-K - Summary Mineral Reserve 0.87Mozfor copper at the end of the fiscal year ended 31 December 2022, based on an estimated copper price of $2.90/lb, unless otherwise stated.
| Mineral Reserve | Proven | Probable | Total Mineral Reserve | |||||||||||||||||||||||||||||||||||
| Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper | Tonnes (1) | Grade | Contained Copper | |||||||||||||||||||||||||||||
| as at 31 December 2022 | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | Million | %Cu | Tonnes Million | Pounds Million | ||||||||||||||||||||||||||
| Americas Region | — | — | — | — | 120.01 | 1.23 | 1.47 | 3,250 | 120.01 | 1.23 | 1.47 | 3,250 | ||||||||||||||||||||||||||
| Colombia | — | — | — | — | 120.01 | 1.23 | 1.47 | 3,250 | 120.01 | 1.23 | 1.47 | 3,250 | ||||||||||||||||||||||||||
Quebradona(2)(3) | — | — | — | — | 120.01 | 1.23 | 1.47 | 3,250 | 120.01 | 1.23 | 1.47 | 3,250 | ||||||||||||||||||||||||||
| AngloGold Ashanti Total | — | — | — | — | 120.01 | 1.23 | 1.47 | 3,250 | 120.01 | 1.23 | 1.47 | 3,250 | ||||||||||||||||||||||||||
Notes:
Rounding of numbers may result in computational discrepancies in the Mineral Reserve tabulations. To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage and grade to two decimals and content for copper with no decimals. “Mlb” refers to million pounds.(1) "Tonnes" refers to a metric tonne which is equivalent to 1,000 kilograms.
(2) The Mineral Reserve contains 28.1Moz of silver to be recovered as a by-product.
(3)Property currently in a development stage.
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BY-PRODUCTS
Several by-products are expected to be recovered as a result of processing of the exploitationgold Mineral Reserve and copper Mineral Reserve. These include 0.29Mt of gold Ore Reserve. The by-products include 89.16 million pounds of uranium oxide from the South African operations, 0.41 million tons of sulfursulphur from Brazil, and 21.81 million ounces21.9Moz of silver from Argentina.Argentina and 28.1Moz of silver from Colombia. Molybdenum, at present, is not planned for recovery at Quebradona. The Quebradona process plant has been designed to treat underground ore and to produce copper concentrate with provision of space in the plant site for a molybdenum plant in the future.
AngloGold Ashanti has an established Mineral Resource and OreMineral Reserve Statement
is responsible for setting and overseeing its Mineral Resource and OreMineral Reserve at Mponenggovernance framework, and for ensuring that it meets the Company’s goals and objectives while complying with all relevant regulatory codes.
The external reviews were conducted by AMEC, Aranz Geo, Snowden, Optiro, SRKAudit and Optiro respectively. The company has been informed thatRisk Committee as well as the external reviews identified no material shortcomings in the process of evaluationInvestment Committee of the grade models and estimationCompany’s board of the Ore Reserve.
• Mineral Resource and Mineral Reserve at Geita;
• Mineral Resource and Mineral Reserve at Cerro Vanguardia; and
• Mineral Resource at North Bullfrog project.
No material risks were identified following completion of these external reviews.
In addition, numerous internal Mineral Resource and Mineral Reserve process reviews were completed by suitably qualified Competent Personstechnical experts from within AngloGold Ashanti. AAshanti and no significant deficiencies were identified. The Mineral Resource and Mineral Reserve governance framework is underpinned by appropriate Mineral Resource management processes and protocols that ensure adequate corporate governance. These procedures have been developed to be compliant with the guiding principles of the U.S. Sarbanes-Oxley Act of 2002 ("SOX").
AngloGold Ashanti makes use of a web-based group reporting database called the Resource and Reserve Reporting System ("RCubed") for the compilation and authorisation of Mineral Resource and Mineral Reserve reporting. It is a fully integrated system for the reporting and reconciliation of Mineral Resource and Mineral Reserve that supports various regulatory reporting requirements, including the SEC reporting requirements under Regulation S-K 1300, and the JSE reporting requirements under the SAMREC Code. AngloGold Ashanti uses RCubed to ensure a documented chain of responsibility exists from the Competent Personstechnical experts at the operations to the company’sCompany’s RRLT.
AngloGold Ashanti has also developed an enterprise-wide risk management tool that provides consistent and reliable data that allows for visibility of risks and actions across the group. This tool is used to facilitate, control and monitor material risks to the Mineral Resource and OreMineral Reserve, Steering Committee. thus ensuring that the appropriate risk management and mitigation plans are in place.
If technical experts involved in the estimation of Mineral Resource or Mineral Reserve feel that their technical advice has been ignored which may represent a risk to the Mineral Resource or Mineral Reserve to be published, they are obliged to inform the RRLT in writing. In addition, AngloGold Ashanti’s “Speak-up” programme can also be used if the technical experts deem they may be compromised in the process. .
QUALIFIED PERSONS
The information in this annual report on Form 20-F relating to Mineral Resource and Mineral Reserve on AngloGold Ashanti’s material properties is based on information compiled by, or under the supervision of, Qualified Persons, as defined in Regulation S-K 1300. All Qualified Persons were employed by AngloGold Ashanti at the time of preparing the Technical Report Summaries in respect of AngloGold’s material properties. However, two of the Qualified Persons who provided the information for the Technical Report Summaries (effective date: 31 December 2021) in respect of Kibali and Obuasi are no longer employed by AngloGold Ashanti as of the date hereof. Mr. Richard Peattie, the Qualified Person providing information in respect of the Mineral Resource at Kibali, is now employed by Barrick, which has a 45 percent interest in Kibali. Ms. Emmarentia Maritz, the Qualified Person providing information in respect of the Mineral Resource at Obuasi, is now employed by Barrick. Both of these Qualified Persons have
138
provided updated consents to the use of the their names, or any quotation from, or summarisation of, the Technical Report Summaries (effective date: 31 December 2021) prepared by them in this annual report, and to the filing of the Technical Report Summaries (effective date: 31 December 2021) as exhibits hereto. All Qualified Persons have sufficient experience relevant to the style of mineralisation and the type of deposit under consideration, and relevant to the activity which they are undertaking. AngloGold Ashanti has recognised that in preparing this annual report with respect to Kibali, the Qualified Persons have relied on information provided by Barrick. The legal tenure of each material property has been verified to the satisfaction of the accountable Qualified Person and all of the Mineral Reserve has been confirmed to be covered by the required mining permits or there exists a realistic expectation that these permits will be issued. The Qualified Persons have provided consent to the inclusion of Mineral Resource and Mineral Reserve information in this annual report, in the form and context in which it appears as well as the public filing of the Technical Report Summary for each respective material mining property filed as exhibits hereto.
Qualified Persons
| Responsibility | Qualified Person | Professional organisation | Membership number | Relevant experience | Qualification | ||||||||||||
| Kibali Mineral Resource | Richard Peattie (1) | FAusIMM | 301 029 | 26 years | MPhil (Geostatistics) | ||||||||||||
| Kibali Mineral Reserve | Romulo Sanhueza | MAusIMM | 211 794 | 25 years | BSc Eng (Mining) | ||||||||||||
| Obuasi Mineral Resource | Emmarentia Maritz(1) | SACNASP | 118345 | 19 years | MSc (Mineral Resource Evaluation) | ||||||||||||
| Obuasi Mineral Reserve | Douglas Atanga | MAusIMM | 334 391 | 14 years | BSc (Mining Engineering) | ||||||||||||
| Geita Mineral Resource | Damon Elder | MAusIMM | 208 240 | 26 years | BSc Hons (Geology) | ||||||||||||
| Geita Mineral Reserve | Duan Campbell | ECSA | 202 101 953 | 20 years | BEng (Mining) | ||||||||||||
Notes:
All Qualified Persons were employed by AngloGold Ashanti at the time of preparing the Technical Report Summaries in respect of AngloGold’s material properties.
(1) Two of the Qualified Persons who provided the information for the Technical Report Summaries (effective date: 31 December 2021) in respect of
Kibali and Obuasi Mineral Resource are no longer employed by AngloGold Ashanti as of the date hereof and are currently employed by Barrick.
Accordingly, the ChairmanChairperson of the Mineral Resource and OreMineral Reserve Steering Committee, VA Chamberlain, MSc (Mining Engineering)Leadership Team, Mrs. TM Flitton, Master of Engineering (Mining), BSc (Hons) (Geology)Bachelor of Science (Honours, Geology), MGSSA, FAusIMM,RM SME, Pr.Sci.Nat (SACNASP), FGSSA, assumes responsibility for the Mineral Resource and OreMineral Reserve processes for AngloGold Ashanti. Mrs. TM Flitton has 21 years’ experience in mining with ten years directly leading and managing Mineral Resource and Mineral Reserve reporting. She is employed full-time by AngloGold Ashanti and is satisfied thatcan be contacted at the Competent Persons have fulfilled their responsibilities.
GENERAL CONSIDERATIONS
The following considerations should be noted in respect of the information in this “Item 4D: Property plants and equipment”:
•All figures are expressed on an attributable basis unless otherwise indicated;
•All disclosure of Mineral Resource is provided on the AngloGold Ashanti website (www.anglogoldashanti.com)exclusive of Mineral Reserve;
•Unless otherwise stated, $ or dollar refers to U.S. dollars;
•Group and www.aga-reports.com.Company are used interchangeably;
•Mine, operation, business unit and property are used interchangeably;
| Ore Reserve: Imperial | At 31 December 2017 | ||||||||||||||||||||||||
Proven Ore Reserve (1) (2) | Probable Ore Reserve (1) (2) | Metallurgical | Cut-off | ||||||||||||||||||||||
Tons(5) | Grade | Gold Content | Tons (5) | Grade | Gold Content | Recovery Factor | Grade | (10) | |||||||||||||||||
| (million) | (oz/ton) | (Moz) | (million) | (oz/ton) | (Moz) | percent | (oz/ton) | ||||||||||||||||||
| South Africa | |||||||||||||||||||||||||
Vaal River (6) | |||||||||||||||||||||||||
| Kopanang | 1.10 | 0.158 | 0.17 | 1.04 | 0.156 | 0.16 | 95.6-95.7 | (4 | ) | 0.278 | |||||||||||||||
Moab Khotsong (2) | 2.22 | 0.278 | 0.62 | 17.21 | 0.247 | 4.25 | 93.9-97.1 | (4 | ) | 0.126-0.181 | (4) | ||||||||||||||
| West Wits | |||||||||||||||||||||||||
Mponeng (2) | 1.66 | 0.253 | 0.42 | 41.01 | 0.286 | 11.74 | 96.5-98.1 | (4 | ) | 0.122-0.199 | (4) | ||||||||||||||
TauTona (12) | 0.00 | 0.00 | 0.00 | 0.00 | 0.000 | 0.00 | |||||||||||||||||||
| Surface | |||||||||||||||||||||||||
Surface sources (6) (9) | 139.60 | 0.006 | 0.87 | 671.80 | 0.008 | 5.24 | 42.0-88.0 | (4 | ) | 0.006-0.013 | (4) | ||||||||||||||
| Continental Africa | |||||||||||||||||||||||||
| Democratic Republic of the Congo | |||||||||||||||||||||||||
Kibali (45 percent) (3) (11) | 9.42 | 0.119 | 1.12 | 23.35 | 0.119 | 2.79 | 84.5-88.9 | (4 | ) | 0.045-0.073 | (4) | ||||||||||||||
| Ghana | |||||||||||||||||||||||||
| Iduapriem | 3.25 | 0.023 | 0.07 | 42.23 | 0.042 | 1.78 | 92.0-95.6 | (4 | ) | 0.016-0.026 | (4) | ||||||||||||||
Obuasi (2) | — | — | — | 22.35 | 0.262 | 5.86 | 87.0 | 0.120-0.152 | (4) | ||||||||||||||||
| Guinea | |||||||||||||||||||||||||
Siguiri (85 percent) (3) | 26.67 | 0.019 | 0.51 | 69.64 | 0.025 | 1.74 | 88.0-93.0 | (4 | ) | 0.016-0.022 | (4) | ||||||||||||||
| Mali | |||||||||||||||||||||||||
Morila (40 percent) (3) (11) | — | — | — | 4.68 | 0.016 | 0.08 | 57.0-91.0 | (4 | ) | 0.014 | |||||||||||||||
Sadiola (41 percent) (3) | 0.11 | 0.063 | 0.01 | 31.23 | 0.054 | 1.69 | 75.0-94.0 | (4 | ) | 0.015-0.025 | (4) | ||||||||||||||
| Tanzania | |||||||||||||||||||||||||
| Geita | — | — | — | 9.42 | 0.133 | 1.25 | 76.0-92.0 | (4 | ) | 0.41-0.088 | (4) | ||||||||||||||
| Australasia | |||||||||||||||||||||||||
| Australia | �� | ||||||||||||||||||||||||
| Sunrise Dam | 12.00 | 0.029 | 0.34 | 9.08 | 0.094 | 0.85 | 85.0-86.0 | (4 | ) | 0.022-0.079 | (4) | ||||||||||||||
Tropicana (70 percent) (3) | 13.40 | 0.038 | 0.50 | 37.98 | 0.062 | 2.35 | 90.0 | 0.020 | |||||||||||||||||
| Americas | |||||||||||||||||||||||||
| Argentina | |||||||||||||||||||||||||
Cerro Vanguardia (92.5 percent) (3) (7) | 5.09 | 0.049 | 0.25 | 6.12 | 0.108 | 0.66 | 64.4-95.7 | (4 | ) | 0.013-0.146 | (4) | ||||||||||||||
| Brazil | |||||||||||||||||||||||||
AGA Mineraçáo (2) (8) | 3.34 | 0.132 | 0.44 | 13.24 | 0.131 | 1.73 | 67.8-93.8 | (4 | ) | 0.018-0.106 | (4) | ||||||||||||||
Serra Grande (2) | 1.86 | 0.081 | 0.15 | 1.95 | 0.092 | 0.18 | 86.5-95.3 | (4 | ) | 0.019-0.053 | (4) | ||||||||||||||
| Colombia | |||||||||||||||||||||||||
Gramalote (51 percent) (3) | — | — | — | 70.23 | 0.025 | 1.76 | 83.9-95.0 | (4 | ) | 0.005-0.006 | (4) | ||||||||||||||
| Total | 219.72 | 0.025 | 5.48 | 1,072.57 | 0.041 | 44.11 | |||||||||||||||||||
•Rounding of numbers may result in computational differences.discrepancies;
•To reflect that figures are not precise calculations and that there is uncertainty in their estimation, AngloGold Ashanti reports tonnage, grade and content for gold to two decimals and content for copper with no decimals;
•Metric tonnes (t) are used throughout this annual report and all ounces are Troy ounces;
•Abbreviations used in this annual report include: gold– Au, copper – Cu, silver – Ag, Sulphur – S, molybdenum – Mo;
•Internal controls are discussed in the "—Corporate Governance" section above as well as in the “—Mineral Resource and Mineral Reserve Internal Controls Disclosure" section below;
•Maps presented for material properties in this Item 4D show infrastructure, licences and coordinates of the mine, as represented by the plant (or stated otherwise), in the geographic coordinate system.
139
Refer to the "Glossary of selected terms—Mining terms" for terminology and definitions used in Mineral Resource and Mineral Reserve reporting under Regulation S-K 1300. In addition, the Mineral Resource exclusive of Mineral Reserve (“Exclusive Mineral Resource”) is defined as the Inclusive Mineral Resource less the Mineral Reserve before dilution and other factors are applied. The Exclusive Mineral Resource consists of the following components:
•Inferred Mineral Resource, including that within the Mineral Reserve design or stope shape;
•Mineral Resource that sits above the Mineral Resource cut-off grade but below the Mineral Reserve cut-off grade that resides within the defined Mineral Reserve volume;
•Mineral Resource that lies between the life of mine (“LOM”) pit shell or mine design and the Mineral Resource pit shell/mine design (this material will become economic if the gold price increases); and
•Mineral Resource in which the technical studies to engineer a Mineral Reserve have not yet been completed.
All reports of Mineral Resource must satisfy the requirement that there are reasonable prospects for economic extraction, regardless of the classification of the Mineral Resource. Portions of a deposit that do not have reasonable prospects for eventual economic extraction are not included in a Mineral Resource. The Mineral Resource is estimated using all relevant drilling and sampling information along with a detailed geological model.
The 2017 Provengeological models are based on combinations of core and/or chip logging, mapping, geophysics, geochemistry and Probable Ore Reserve includes Ore Reserve below infrastructuregeological understanding and have been developed for each deposit. Most of our deposits have been the subject of research by third-party specialists in the relevant class of gold deposit.
The grade estimation for each deposit has been developed over the life of the mine, and is constantly reviewed in terms of grade control information and reconciliation with the metallurgical plant. In general, the open pits and shallow underground mines use kriging with post processing by Uniform Conditioning (“UC”) or Localised Uniform Conditioning (“LUC”) to generate a recoverable Mineral Resource model where appropriate.
In order to comply with the economic requirement of the definition of Mineral Resource, all our Mineral Resource is constrained at an upside gold price, with all other parameters being kept the same as used for estimation of the Mineral Reserve. In the underground gold mines, scoping studies are conducted on all coherent blocks of ground that lie above the calculated Mineral Resource cut-off grade. These studies include all cost and capital requirements to access the block. In the case of open pit operations, pit optimisations are conducted at the following underground minesMineral Resource gold price and all material outside these shells is excluded from the Mineral Resource unless it is potentially mineable from underground.
It is the opinion of AngloGold Ashanti that the Mineral Resource represents a realistic view of an upside potential to the Mineral Reserve. In interpreting the Mineral Resource it is critical to factor in the following:
•That there is a reasonable expectation of economic extraction;
•The Mineral Resource is quoted in situ and has not been corrected for dilution, mining losses or recovery; and
•Many of the areas lying in the Exclusive Mineral Resource are currently in production:being actively drilled and are the subject of economic and technical studies. It can, however, not be assumed at this stage that the Company has intent to mine these areas.
| Mine | Tons (millions) | Grade (ounces/ton) | Gold Content (million ounces) | |||||
| Moab Khotsong | 14.47 | 0.24 | 3.48 | |||||
| Mponeng | 31.04 | 0.27 | 8.50 | |||||
| Obuasi | 1.87 | 0.60 | 1.13 | |||||
| AGA Mineração | 3.89 | 0.16 | 0.62 | |||||
| Serra Grande | 1.33 | 0.10 | 0.14 | |||||
| Total | 52.59 | 0.26 | 13.86 | |||||
The Ore ReserveInferred Mineral Resource category is intended to cover situations in which a mineral concentration or occurrence has been determined based onidentified and limited measurements and sampling have been completed, economic studies.but in which the data are insufficient to allow the geological or grade continuity to be interpreted with confidence. While it would be reasonable to expect that the majority of Inferred Mineral Resource would upgrade to Indicated Mineral Resource with continued exploration, due to the uncertainty of Inferred Mineral Resource, it should not be assumed that such upgrading will always occur.
| Ore Reserve: Imperial | At 31 December 2016 | |||||||||||||||||||||||||
Proven Ore Reserve (1) (2) | Probable Ore Reserve (1) (2) | Metallurgical | Cut-off | |||||||||||||||||||||||
Tons(5) | Grade | Gold Content | Tons (5) | Grade | Gold Content | Recovery Factor | Grade | (10) | ||||||||||||||||||
| (million) | (oz/ton) | (Moz) | (million) | (oz/ton) | (Moz) | percent | (oz/ton) | |||||||||||||||||||
| South Africa | ||||||||||||||||||||||||||
Vaal River (6) | ||||||||||||||||||||||||||
| Kopanang | 1.79 | 0.156 | 0.28 | 1.10 | 0.163 | 0.18 | 95.6-95.7 | (4 | ) | 0.278 | ||||||||||||||||
Moab Khotsong (2) | 2.93 | 0.249 | 0.73 | 15.50 | 0.276 | 4.27 | 95.6-96.4 | (4 | ) | 0.119-0.170 | (4) | |||||||||||||||
| West Wits | ||||||||||||||||||||||||||
Mponeng (2) | 1.34 | 0.278 | 0.37 | 41.47 | 0.292 | 12.11 | 97.4-98.0 | (4 | ) | 0.122-0.208 | (4) | |||||||||||||||
| TauTona | 0.55 | 0.323 | 0.18 | 2.28 | 0.243 | 0.55 | 96.7-97.0 | (4 | ) | 0.219-0.239 | (4) | |||||||||||||||
| Surface | ||||||||||||||||||||||||||
Surface sources (6) (9) | 146.21 | 0.006 | 0.92 | 698.63 | 0.008 | 5.48 | 42.0-92.0 | (4 | ) | 0.007-0.011 | (4) | |||||||||||||||
| Continental Africa | ||||||||||||||||||||||||||
| Democratic Republic of the Congo | ||||||||||||||||||||||||||
Kibali (45 percent) (3) (11) | 2.13 | 0.055 | 0.12 | 32.98 | 0.122 | 4.01 | 84.5-88.9 | (4 | ) | 0.044-0.070 | (4) | |||||||||||||||
| Ghana | ||||||||||||||||||||||||||
| Iduapriem | 3.21 | 0.022 | 0.07 | 46.69 | 0.038 | 1.77 | 92.0-96.0 | (4 | ) | 0.015-0.026 | (4) | |||||||||||||||
Obuasi (2) | — | — | — | 23.49 | 0.234 | 5.49 | 89.0 | 0.128-0.152 | (4) | |||||||||||||||||
| Guinea | ||||||||||||||||||||||||||
Siguiri (85 percent) (3) | 28.11 | 0.019 | 0.53 | 76.07 | 0.025 | 1.92 | 88.0-93.0 | (4 | ) | 0.015-0.022 | (4) | |||||||||||||||
| Mali | ||||||||||||||||||||||||||
Morila (40 percent) (3) (11) | — | — | — | 6.81 | 0.016 | 0.11 | 57.0 | 0.014 | ||||||||||||||||||
Sadiola (41 percent) (3) | 0.01 | 0.069 | — | 34.85 | 0.052 | 1.80 | 75.0-94.0 | (4 | ) | 0.013-0.023 | (4) | |||||||||||||||
| Tanzania | ||||||||||||||||||||||||||
| Geita | — | — | — | 18.09 | 0.109 | 1.97 | 89.3-92.7 | (4 | ) | 0.028-0.131 | (4) | |||||||||||||||
| Australasia | ||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||
| Sunrise Dam | 12.87 | 0.029 | 0.37 | 11.64 | 0.083 | 0.97 | 80.9-85.0 | (4 | ) | 0.018-0.036 | (4) | |||||||||||||||
Tropicana (70 percent) (3) | 12.10 | 0.043 | 0.52 | 34.27 | 0.062 | 2.14 | 90.0 | 0.020 | ||||||||||||||||||
| Americas | ||||||||||||||||||||||||||
| Argentina | ||||||||||||||||||||||||||
Cerro Vanguardia (92.5 percent) (3) (7) | 6.58 | 0.043 | 0.28 | 4.70 | 0.141 | 0.66 | 61.8-95.9 | (4 | ) | 0.013-0.146 | (4) | |||||||||||||||
| Brazil | ||||||||||||||||||||||||||
AGA Mineraçáo (2) (8) | 3.88 | 0.140 | 0.55 | 7.68 | 0.152 | 1.16 | 70.0-93.3 | (4 | ) | 0.017-0.105 | (4) | |||||||||||||||
Serra Grande (2) | 2.66 | 0.073 | 0.19 | 3.53 | 0.080 | 0.28 | 88.5-94.7 | (4 | ) | 0.071 | ||||||||||||||||
| Total | 224.36 | 0.023 | 5.12 | 1,059.73 | 0.042 | 44.87 | ||||||||||||||||||||
AngloGold Ashanti requires that the Mineral Reserve that is an outcome of this process is generated at a minimum of apre-feasibility study level.
140
MINERAL RESOURCE AND MINERAL RESERVE INTERNAL CONTROLS DISCLOSURE
AngloGold Ashanti has a tiered internal review process whereby newly issued Mineral Resource and Mineral Reserve are reviewed at a regional level prior to publication. Selected corporate reviews happen after that process. Each property has an external Mineral Resource and Mineral Reserve audit on a three-year rolling basis, and issues raised in production:these audits are addressed by a formal audit reply from each mine on which the progress is tracked.
| Mine | Tons (millions) | Grade (ounces/ton) | Gold Content (million ounces) | |||||
| Moab Khotsong | 11.89 | 0.28 | 3.32 | |||||
| Mponeng | 30.35 | 0.28 | 8.56 | |||||
| Obuasi | 1.92 | 0.67 | 1.29 | |||||
| AGA Mineração | 1.97 | 0.18 | 0.35 | |||||
| Serra Grande | 1.18 | 0.09 | 0.10 | |||||
| Total | 47.31 | 0.29 | 13.63 | |||||
| Ore Reserve: Metric | At 31 December 2017 | |||||||||||||||||||||
Proven Ore Reserve (1) (2) | Probable Ore Reserve (1) (2) | Metallurgical | Cut-off | |||||||||||||||||||
Tonnes(5) | Grade | Gold Content | Tonnes (5) | Grade | Gold Content | Recovery Factor | Grade | (10) | ||||||||||||||
| (million) | (g/t) | (tonnes) | (million) | (g/t) | tonnes | percent | (g/t) | |||||||||||||||
| South Africa | ||||||||||||||||||||||
Vaal River (6) | ||||||||||||||||||||||
| Kopanang | 1.00 | 5.420 | 5.40 | 0.94 | 5.37 | 5.04 | 95.6-95.7 | (4 | ) | 9.52 | ||||||||||||
Moab Khotsong (2) | 2.02 | 9.550 | 19.26 | 15.62 | 8.47 | 132.31 | 93.9-97.1 | (4 | ) | 4.31-6.21 | (4) | |||||||||||
| West Wits | ||||||||||||||||||||||
Mponeng (2) | 1.50 | 8.670 | 13.03 | 37.21 | 9.82 | 365.25 | 96.5-98.1 | (4 | ) | 4.17-6.82 | (4) | |||||||||||
TauTona (12) | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||
| Surface | ||||||||||||||||||||||
Surface sources (5) (9) | 126.64 | 0.21 | 27.11 | 609.45 | 0.27 | 162.99 | 42.0-88.0 | (4 | ) | 0.20-0.43 | (4) | |||||||||||
| Continental Africa | ||||||||||||||||||||||
| Democratic Republic of the Congo | ||||||||||||||||||||||
Kibali (45 percent) (3) (11) | 8.54 | 4.07 | 34.78 | 21.18 | 4.10 | 86.76 | 84.5-88.9 | (4 | ) | 1.53-2.50 | (4) | |||||||||||
| Ghana | ||||||||||||||||||||||
| Iduapriem | 2.95 | 0.77 | 2.29 | 38.31 | 1.44 | 55.35 | 92.0-95.6 | (4 | ) | 0.55-0.90 | (4) | |||||||||||
Obuasi (2) | — | 0.00 | 0.00 | 20.28 | 9.00 | 182.40 | 87.0 | 4.10-5.20 | (4) | |||||||||||||
| Guinea | ||||||||||||||||||||||
Siguiri (85 percent) (3) | 24.19 | 0.65 | 15.78 | 63.18 | 0.85 | 53.97 | 88.0-93.0 | (4 | ) | 0.55-0.75 | (4) | |||||||||||
| Mali | ||||||||||||||||||||||
Morila (40 percent) (3) (11) | — | 0.00 | 0.00 | 4.25 | 0.56 | 2.38 | 57.0-91.0 | (4 | ) | 0.49 | ||||||||||||
Sadiola (41 percent) (3) | 0.10 | 2.14 | 0.22 | 28.33 | 1.86 | 52.59 | 75.0-94.0 | (4 | ) | 0.51-0.87 | (4) | |||||||||||
| Tanzania | ||||||||||||||||||||||
| Geita | — | 0.00 | 0.00 | 8.54 | 4.55 | 38.86 | 76.0-92.0 | (4 | ) | 1.40-3.02 | (4) | |||||||||||
| Australasia | ||||||||||||||||||||||
| Australia | ||||||||||||||||||||||
| Sunrise Dam | 10.88 | 0.98 | 10.64 | 8.24 | 3.22 | 26.50 | 85.0-86.0 | (4 | ) | 0.75-2.71 | (4) | |||||||||||
Tropicana (70 percent) (3) | 12.16 | 1.29 | 15.70 | 34.46 | 2.12 | 73.10 | 90.0 | 0.70 | ||||||||||||||
| Americas | ||||||||||||||||||||||
| Argentina | ||||||||||||||||||||||
Cerro Vanguardia (92.5 percent) (3) (7) | 4.62 | 1.69 | 7.81 | 5.55 | 3.69 | 20.50 | 64.4-95.7 | (4 | ) | 0.45-5.00 | (4) | |||||||||||
| Brazil | ||||||||||||||||||||||
AGA Mineraçáo (2) (8) | 3.03 | 4.53 | 13.73 | 12.01 | 4.48 | 53.76 | 67.8-93.8 | (4 | ) | 0.61-3.63 | (4) | |||||||||||
Serra Grande (2) | 1.69 | 2.77 | 4.68 | 1.77 | 3.16 | 5.60 | 86.5-95.3 | (4 | ) | 0.66-1.80 | (4) | |||||||||||
| Colombia | ||||||||||||||||||||||
Gramalote (51 percent) (3) | — | 0.00 | 0.00 | 63.71 | 0.86 | 54.67 | 83.9-95.0 | (4 | ) | 0.16-0.22 | (4) | |||||||||||
| Total | 199.32 | 0.86 | 170.43 | 973.02 | 1.41 | 1,372.04 | ||||||||||||||||
A group wide Mineral Resource to production reconciliation system is also in place whereby the following underground mines currentlyMineral Resource mined each month is reconciled all the way to the produced gold doré. Oversight for this process is handled at the group level. A comprehensive sample and assay QC/QA process is in production:place, and our laboratories are inspected frequently by on-site teams.
141
| Mine | Tonnes (millions) | Grade (grams/tonne) | Gold Content (tonnes) | |||||
| Moab Khotsong | 13.12 | 8.24 | 108.14 | |||||
| Mponeng | 28.16 | 9.38 | 264.25 | |||||
| Obuasi | 1.70 | 20.68 | 35.15 | |||||
| AGA Mineração | 3.53 | 5.44 | 19.20 | |||||
| Serra Grande | 1.20 | 3.52 | 4.24 | |||||
| Total | 47.71 | 9.03 | 430.97 | |||||
| Ore Reserve: Metric | At 31 December 2016 | |||||||||||||||||||||||||
Proven Ore Reserve (1) (2) | Probable Ore Reserve (1) (2) | Metallurgical | Cut-off | |||||||||||||||||||||||
Tonnes(6) | Grade | Gold Content | Tonnes(6) | Grade | Gold Content | Recovery Factor | Grade (10) | |||||||||||||||||||
| (million) | (g/t) | (tonnes) | (million) | (g/t) | (tonnes) | percent | (g/t) | |||||||||||||||||||
| South Africa | ||||||||||||||||||||||||||
Vaal River (5) | ||||||||||||||||||||||||||
| Kopanang | 1.62 | 5.360 | 8.70 | 1.00 | 5.570 | 5.55 | 95.6-95.7 | (4) | 9.520 | |||||||||||||||||
Moab Khotsong (2) | 2.66 | 8.550 | 22.73 | 14.06 | 9.450 | 132.81 | 95.6-96.4 | (4) | 4.07-5.83 | (4) | ||||||||||||||||
| West Wits | ||||||||||||||||||||||||||
Mponeng (2) | 1.21 | 9.540 | 11.57 | 37.62 | 10.010 | 376.64 | 97.4-98.0 | (4) | 4.17-7.14 | (4) | ||||||||||||||||
| TauTona | 0.50 | 11.070 | 5.57 | 2.06 | 8.320 | 17.17 | 96.7-97.0 | (4) | 7.50-8.18 | (4) | ||||||||||||||||
| Surface | ||||||||||||||||||||||||||
Surface sources (5) (9) | 132.64 | 0.220 | 28.58 | 633.79 | 0.270 | 170.42 | 42.0-92.0 | (4) | 0.24-0.38 | (4) | ||||||||||||||||
| Continental Africa | ||||||||||||||||||||||||||
| Democratic Republic of the Congo | ||||||||||||||||||||||||||
Kibali (45 percent) (3) (11) | 1.94 | 1.900 | 3.67 | 29.92 | 4.170 | 124.73 | 84.5-88.9 | (4) | 1.52-2.40 | (4) | ||||||||||||||||
| Ghana | ||||||||||||||||||||||||||
| Iduapriem | 2.91 | 0.760 | 2.20 | 42.34 | 1.300 | 55.11 | 92.0-96.0 | (4) | 0.50-0.90 | (4) | ||||||||||||||||
Obuasi (2) | — | — | — | 21.31 | 8.010 | 170.74 | 89.0 | 4.40-5.20 | (4) | |||||||||||||||||
| Guinea | ||||||||||||||||||||||||||
Siguiri (85 percent) (3) | 25.50 | 0.640 | 16.42 | 69.01 | 0.860 | 59.57 | 88.0-93.0 | (4) | 0.53-0.75 | (4) | ||||||||||||||||
| Mali | ||||||||||||||||||||||||||
Morila (40 percent) (3) (11) | — | — | — | 6.81 | 0.550 | 3.37 | 57.0 | 0.470 | ||||||||||||||||||
Sadiola (41 percent) (3) | 0.01 | 2.370 | 0.02 | 31.62 | 1.770 | 55.90 | 75.0-94.0 | (4) | 0.45-0.80 | (4) | ||||||||||||||||
| Tanzania | ||||||||||||||||||||||||||
| Geita | — | — | — | 16.41 | 3.730 | 61.17 | 89.3-92.7 | (4) | 0.95-4.50 | (4) | ||||||||||||||||
| Australasia | ||||||||||||||||||||||||||
| Australia | ||||||||||||||||||||||||||
| Sunrise Dam | 11.67 | 1.000 | 11.65 | 10.56 | 2.860 | 30.15 | 80.9-85.0 | (4) | 0.60-1.23 | (4) | ||||||||||||||||
| Tropicana (70 percent) (3) | 10.98 | 1.480 | 16.22 | 31.09 | 2.140 | 66.48 | 90.0 | 0.700 | ||||||||||||||||||
| Americas | ||||||||||||||||||||||||||
| Argentina | ||||||||||||||||||||||||||
Cerro Vanguardia (92.5 percent) (3) (7) | 5.97 | 1.470 | 8.78 | 4.26 | 4.850 | 20.65 | 61.8-95.9 | (4) | 0.46-5.00 | (4) | ||||||||||||||||
| Brazil | ||||||||||||||||||||||||||
AGA Mineraçáo (2) (8) | 3.52 | 4.810 | 16.96 | 6.97 | 5.200 | 36.21 | 70.0-93.3 | (4) | 0.58-3.61 | (4) | ||||||||||||||||
Serra Grande (2) | 2.41 | 2.510 | 6.05 | 3.20 | 2.750 | 8.81 | 88.5-94.7 | (4) | 2.450 | |||||||||||||||||
| Total | 203.54 | 0.78 | 159.11 | 961.37 | 1.45 | 1,395.49 | ||||||||||||||||||||
| Mine | Tonnes (millions) | Grade (grams/tonne) | Gold Content (tonnes) | |||||
| Moab Khotsong | 10.79 | 9.59 | 103.41 | |||||
| Mponeng | 27.53 | 9.67 | 266.21 | |||||
| Obuasi | 1.74 | 23.11 | 40.26 | |||||
| AGA Mineração | 1.79 | 6.03 | 10.79 | |||||
| Serra Grande | 1.07 | 3.03 | 3.24 | |||||
| Total | 42.92 | 9.88 | 423.90 | |||||
| Stockpiles | At 31 December 2017 | |||||||
| Tons (million) | Grade (ounces/ton) | Gold content (million ounces) | ||||||
| South Africa | ||||||||
Surface sources (2) | 811.40 | 0.008 | 6.11 | |||||
| Continental Africa | ||||||||
| Ghana | ||||||||
| Iduapriem | 12.88 | 0.021 | 0.27 | |||||
| Guinea | ||||||||
Siguiri (85 percent) (1) (3) | 61.89 | 0.017 | 1.06 | |||||
| Mali | ||||||||
Morila (40 percent) (1) | 4.55 | 0.016 | 0.07 | |||||
Sadiola (41 percent) (1) | 5.14 | 0.037 | 0.19 | |||||
| Tanzania | ||||||||
| Geita | 2.79 | 0.041 | 0.12 | |||||
| Australasia | ||||||||
| Australia | ||||||||
| Sunrise Dam | 12.00 | 0.029 | 0.34 | |||||
Tropicana (70 percent) (1) | 8.19 | 0.027 | 0.22 | |||||
| Americas | ||||||||
| Argentina | ||||||||
Cerro Vanguardia (92.5 percent) (1) | 7.05 | 0.019 | 0.13 | |||||
| Brazil | ||||||||
| Serra Grande | 0.03 | 0.050 | 0.00 | |||||
| Stockpiles | At 31 December 2016 | |||||||
| Tons (million) | Grade (ounces/ton) | Gold content (million ounces) | ||||||
| South Africa | ||||||||
Surface sources (2) | 844.84 | 0.008 | 6.40 | |||||
| Continental Africa | ||||||||
| Ghana | ||||||||
| Iduapriem | 12.83 | 0.021 | 0.27 | |||||
| Guinea | ||||||||
Siguiri (85 percent) (1) (3) | 63.33 | 0.017 | 1.08 | |||||
| Mali | ||||||||
Morila (40 percent) (1) | 6.81 | 0.016 | 0.11 | |||||
Sadiola (41 percent) (1) | 5.80 | 0.033 | 0.19 | |||||
| Tanzania | ||||||||
| Geita | 4.35 | 0.039 | 0.17 | |||||
| Australasia | ||||||||
| Australia | ||||||||
| Sunrise Dam | 12.87 | 0.029 | 0.37 | |||||
Tropicana (70 percent) (1) | 7.09 | 0.027 | 0.19 | |||||
| Americas | ||||||||
| Argentina | ||||||||
Cerro Vanguardia (92.5 percent) (1) | 7.24 | 0.019 | 0.14 | |||||
| Brazil | ||||||||
| Serra Grande | 0.07 | 0.058 | 0.00 | |||||
| Stockpiles | At 31 December 2017 | |||||||
| Tonnes (million) | Grade (grams/tonne) | Gold content (tonnes) | ||||||
| South Africa | ||||||||
Surface sources (2) | 736.09 | 0.26 | 190.10 | |||||
| Continental Africa | ||||||||
| Ghana | ||||||||
| Iduapriem | 11.68 | 0.72 | 8.46 | |||||
| Guinea | ||||||||
Siguiri (85 percent) (1) (3) | 56.15 | 0.59 | 33.07 | |||||
| Mali | ||||||||
Morila (40 percent) (1) | 4.13 | 0.54 | 2.22 | |||||
Sadiola (41 percent) (1) | 4.66 | 1.27 | 5.93 | |||||
| Tanzania | ||||||||
| Geita | 2.53 | 1.42 | 3.59 | |||||
| Australasia | ||||||||
| Australia | ||||||||
| Sunrise Dam | 10.88 | 0.98 | 10.64 | |||||
Tropicana (70 percent) (1) | 7.43 | 0.94 | 6.97 | |||||
| Americas | ||||||||
| Argentina | ||||||||
Cerro Vanguardia (92.5 percent) (1) | 6.40 | 0.64 | 4.09 | |||||
| Brazil | ||||||||
| Serra Grande | 0.02 | 1.70 | 0.04 | |||||
| Stockpiles | At 31 December 2016 | |||||||
| Tonnes (million) | Grade (grams/tonne) | Gold content (tonnes) | ||||||
| South Africa | ||||||||
Surface sources (2) | 766.42 | 0.26 | 199.00 | |||||
| Continental Africa | ||||||||
| Ghana | ||||||||
| Iduapriem | 11.64 | 0.72 | 8.37 | |||||
| Guinea | ||||||||
Siguiri (85 percent) (1) (3) | 57.45 | 0.59 | 33.71 | |||||
| Mali | ||||||||
Morila (40 percent) (1) | 6.18 | 0.55 | 3.37 | |||||
Sadiola (41 percent) (1) | 5.26 | 1.13 | 5.94 | |||||
| Tanzania | ||||||||
| Geita | 3.95 | 1.35 | 5.33 | |||||
| Australasia | ||||||||
| Australia | ||||||||
| Sunrise Dam | 11.67 | 1.00 | 11.65 | |||||
Tropicana (70 percent) (1) | 6.43 | 0.92 | 5.95 | |||||
| Americas | ||||||||
| Argentina | ||||||||
Cerro Vanguardia (92.5 percent) (1) | 6.57 | 0.65 | 4.26 | |||||
| Brazil | ||||||||
| Serra Grande | 0.06 | 2.00 | 0.12 | |||||
Not applicable.
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ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of AngloGold Ashanti Limited under IFRS for the three years ended and as at 31 December 2017, 20162022, 2021 and 2015.2020. The discussion of operating and financial results in this “Item 5: Operating and Financial Review and Prospects” relates to the Company’s continuing operations (unless the context indicates otherwise).
This item should be read in conjunction with the company’sCompany’s consolidated financial statements and the notes thereto which are included under Item 18 of this annual report.
Overview
AngloGold Ashanti is a global gold mining company headquartered in Johannesburg, South Africa. AngloGold Ashanti’s main product is gold. As part of extracting gold the companyCompany also produces silver uranium oxide and sulphuric acid as by-products. Revenue from the sale of by-products is recognised as a reduction of cost of sales in the consolidated statement of income. By-product revenue from continuing operations amounted to $154$113 million in 2017 (2016: $1382022 (2021: $126 million; 2015: $1272020: $105 million) out of total revenue from product sales from continuing operations of $4,543$4,501 million in 2017 (2016: $4,2542022 (2021: $4,029 million; 2015: $4,1742020: $4,595 million). See “Note 3 - Revenue” to the consolidated financial statements“Item 18: Financial Statements—Note 3—Revenue from product sales” for additional information. The companyCompany sells its products on world markets.
AngloGold Ashanti conducts gold-mininghas ten continuing mining operations in the following regions, which represent its business segments:
Under the new Operating Model, the manner in which the financial results are reported to the chief operating decision maker and the composition of the operating segments continue to be reported per geographical region (Africa, Australia and the Americas). In addition, a new segment, Projects has been introduced from the implementation of the new Operating Model (previously reported under the Americas segment). The Projects segment comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. The comparative information of the affected operating segment information has been restated. AngloGold Ashanti’s segmental information is described in “Item 18: Financial Statements—Note 2—Segmental Information”.
As at 31 December 20172022, the companyCompany reported, on an attributable basis, Proven and Probable OreMineral Reserve for gold of approximately 42.124.25 million ounces in subsidiaries and 7.54.57 million ounces in equity accountedequity-accounted joint ventures. For the year ended 31 December 2017,2022, AngloGold Ashanti reported an attributable gold production of approximately 3.42.41 million ounces from subsidiaries and 0.40.34 million ounces from equity accountedequity-accounted joint ventures. As at 31 December 2022, the Company reported an attributable Proven and Probable Mineral Reserve for copper of 3,250 million pounds. As at 31 December 2022, the Company reported, on an attributable basis, Measured and Indicated Mineral Resource (exclusive of Mineral Reserve(1)) for gold of approximately 57.94 million ounces in subsidiaries and 2.62 million ounces in equity-accounted joint ventures. As at 31 December 2022, the Company reported, on an attributable basis, Inferred Mineral Resource (exclusive of Mineral Reserve(1)) for gold of approximately 39.66 million ounces in subsidiaries and 1.11 million ounces in equity-accounted ventures. As at 31 December 2022, the Company reported an attributable Measured and Indicated Mineral Resource (exclusive of Mineral Reserve(1)) for copper of 2,902 million pounds and Inferred Mineral Resource (exclusive of Mineral Reserve(1)) for copper of 3,231 million pounds. For further information on the Company’s Mineral Resource and Mineral Reserve, see “Item 4D: Property, Plants and Equipment—Mineral Resource and Mineral Reserve Summary Disclosure”.
AngloGold Ashanti’s costs and expenses consist primarily of total cash costs, amortisation, corporate administration, and other expenses, and exploration and evaluation costs. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumables (which include explosives, timber and reagents amongst others), fuel, power and water, contractors’ costs and royalties.cash costs. The company’sCompany’s mining operations consist of deep-level underground mines as well as open-pit operations, both of which are labour intensive, therefore salaries and wages are a significant component of total cash costs.
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5A: OPERATING RESULTS
Introduction
The US real gross domestic product rose by 2.1 percent in “Item 3D: Risk factors”. See2022, compared with an increase of 5.9 percent in 2021. While many components expanded in the last quarter of 2022, they also “Note regarding forward-looking statements”. Furthermore,showed softening, and expectations remain for the forecast assumes no changesUS economy to slip into a recession in 2023.
Stock markets rounded off a tumultuous year with gains in the asset portfolio/operating mines.fourth quarter of 2022. Asian shares were boosted by China’s relaxation of its zero-Covid policy, and European equities also advanced strongly. As prices fell, government bond yields edged up towards the end of the fourth quarter of 2022. This reflected some market disappointment with major central banks reiterating plans to tighten monetary policy, even as inflation showed signs of peaking. Commodities gained in the fourth quarter of 2022, led by industrial metals.
Worsening global economic conditions in the fourth quarter of 2022, together with trade restrictions and net purchases were up 123 tonnes (48 percent)supply chain issues generated a seven percent decline in annual demand for gold in technology. Electronics demand mirrored the seven percent annual decline in the broader sector, dropping sharply in the fourth quarter of 2022 in response to 381 tonnes compared to 2016 (258 tonnes).the deteriorating global economic picture and supply chain challenges, particularly in China.
For the pure2022 year, the average market spot gold segment as consumer preferences continued to shift towards more fashionable, but lower gold content pieces. After posting double-digit percentage declines on average since its 2013 peak, China’s jewellery offtake appears to have stabilised in 2017. On an annual basis, physical demandprice was up 11 percent from 3,556 tonnes in 2016 to 3,932 tonnes in 2017.
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Key factors affecting results
Gold prices
AngloGold Ashanti’s operating results are directly related to the market spot gold price, of gold, which can fluctuate widely and is affected by numerous factors beyond its control, including investment, jewellery and industrial demand (particularly in China and India), expectations with respect to the rate of inflation, the strength of the US dollar (the currency in which the price of gold is generally quoted) and of other currencies, interest rates, actual or expected gold sales and purchases by central banks and the International Monetary Fund (IMF)("IMF"), global or regional political or economic events or conditions (such as the war between Russia and Ukraine), production and cost levels in major gold-producing regions.regions and, to a lesser extent during 2022, the impact of global health crises and pandemics (such as the COVID-19 pandemic).
The current demand for and supply of gold may affect gold prices, but not necessarily in the same manner as current supply and demand affects the prices of other commodities. The supply of gold consists of a combination of new production and fabricated gold held by governments, public and private financial institutions, industrial organisations and private individuals. As the global gold production in any single year constitutes a small portion of the total potential supply of gold, short termshort-term variations in current production do not necessarily have a significant impact on the supply of gold or on its price.
The market for gold bullion bar, the company’sCompany’s primary product, is generally limited to the bullion banks. The number of these banks has declined over the last few years.decade. Additionally, due to the diversity and depth of the total gold market, the bullion banks do not possess significant pricing power.
The price of gold is often subject to sharp, short-term changes. The shift in gold demand from physical demand to investment and speculative demand may exacerbate the volatility of gold prices.
Yearly average market spot gold prices received have changed during the three years under review as follows:
Gold income of the Company has changed during the three years under review as follows:
•2020 - $4,490 million
•2021 - $3,903 million
•2022 - $4,388 million
Yearly average gold prices received by the Company have changed during the three years under review as follows:
•2020 - $1,778 per ounce
•2021 - $1,796 per ounce
•2022 - $1,793 per ounce
Gold income of the Company increased by $485 million, or 12 percent, from $3,903 million in 2021 to $4,388 million in 2022. The average ofgold price received by the Company decreased by $3 per ounce, from $1,796 per ounce for the year ended 31 December 2021 to $1,793 per ounce for the year ended 31 December 2022. The average market spot gold price increased by $4 per ounce, from $1,798 per ounce for the year ended 31 December 2021 to $1,802 per ounce for the year ended 31 December 2022.
The market spot gold price opened the year on 1 January 20182022 at $1,801 per ounce (compared to 19$1,905 per ounce on 4 January 2021). The market spot gold price in 2022 has been subject to volatile short-term swings, with a year high of $2,052 per ounce on 8 March 20182022 and a year low of $1,622 per ounce on 26 September 2022. The average market spot gold price for 2022 was $1,329$1,802 per ounce. The market spot gold price at closing on 30 December 2022 was $1,824 per ounce (compared to $1,828 per ounce on 31 December 2021). Between 1 January 2023 and 10 March 2023, the market spot gold price traded between a low of $1,811 per ounce and a high of $1,950 per ounce. On 1910 March 2018,2023, the afternoonmarket spot gold price for gold on the London Bullion Market was $1,317$1,868 per ounce.
If income from gold sales falls for an extended period below the company’sCompany’s total cash costs at its operations, AngloGold Ashanti could determine that it is not economically feasible to continue production at some or all of its operations. Declining gold prices may also force a reassessment of the feasibility of a particular exploration or development project or projects, and could lead to the curtailment or suspension of such projects. A sustained decrease in gold prices may force the companyCompany to change its dividend payment policies, reduce expenditures and undertake measures to address its cost base. In addition, the
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use of lower gold prices in OreMineral Reserve estimates and life-of-mine plans could result in material write-downswrite downs of the company’sCompany’s investment in mining properties and increase amortisation, environmental rehabilitation and mine closure charges.
Production levels
In addition to gold prices, AngloGold Ashanti’s gold income in any year is also influenced by its level of gold production. Production levels are in turn influenced by grades, tonnages mined and processed through the plant, and metallurgical recoveries. Attributable gold production (including joint ventures) increasedfluctuated between 2020 to 2022, from 3.632.81 million ounces in 20162020 to 3.762.47 million ounces in 2017. 2021 to 2.74 million ounces in 2022. For more information on the Company’s business and operations, see “Item 4B: Business Overview”.
Operational impacts resulting from the COVID-19 pandemic
The COVID-19 pandemic resulted in disruption and volatility in global financial markets and capital markets and a significant decrease in global economic activity, which had an adverse effect on worldwide demand for gold and adversely affected the profitability of the Company’s operations.
The direct impact on the Company’s production from COVID-19 for 2022 was estimated at 19,000 ounces, a decrease of 28,000 ounces, or 60 percent, compared with an estimated production impact of 47,000 ounces for 2021. The direct COVID-19 impact on the Company’s cost of sales was estimated at $6 million for 2022, a decrease of $8 million, or 57 percent, compared to $14 million for 2021. The direct impact from COVID-19 on the Company’s AISC was estimated at $12 per ounce, a decrease of $22 per ounce, or 65 percent, compared with an estimated $34 per ounce for 2021.
The Company remains mindful of the extent to which the COVID-19 pandemic could impact the Company’s results depending on the scale, duration and geographic reach of future developments, which are highly uncertain and cannot be predicted, including the possibility of a recurrence or multiple waves of the outbreak and new variants. The Company continues to observe strict health protocols and to exercise vigilance in relation to business continuity including supply chain. The Company remains mindful that the COVID-19 pandemic, its impacts on communities and economies, and the actions authorities may take in response to it, are subject to change in response to current and future conditions.
Geopolitical tensions
The geopolitical tensions and war between Russia and Ukraine and the retaliatory measures that have been taken, and could be taken in the future, by the United States, the EU, the United Kingdom, NATO and other jurisdictions have created global security concerns that could result in a regional or global conflict and otherwise have a lasting impact on regional and global economies, any or all of which could adversely affect AngloGold Ashanti’s business. See “Item 3D: Risk Factors—Global political and economic conditions could adversely affect the profitability of operations”.
Climate change and other environmental factors
Rising temperatures, changing rainfall patterns and severe weather conditions believed to be caused by climate change remain growing concerns for businesses, investors, broader society and governments. This has led to increased pressure on companies, including those in the mining sector, to reduce greenhouse gas (“GHG”) emissions consistent with national commitments made by numerous countries under the Paris Agreement, to promote responsible corporate practices and to increase transparency about the risks and opportunities of transitioning to a low-carbon economy. Pressure from governments, investors and broader society for mining companies to improve environmental stewardship and reduce GHG emissions, both in terms of absolute emissions and in intensity of emissions per tonne mined, is likely to increase in production levels isthe future.
In 2008, AngloGold Ashanti targeted a 30 percent reduction in absolute GHG emissions of its portfolio by 2022, from a 2007 base level. This target was reached by 2018, and at the end of 2021 Scope 1 and 2 GHG emissions were 46.6 percent below 2007 levels. The GHG emission reductions are due to a variety of factors, as follows:
The Company is also tracking the carbon intensity of its energy mix by measuring GHG emissions per Gigajoule (“GJ”) of energy used. This measure increased by 2.7 percent year-on-year in 2022 to approximately 65 kilograms of CO2e emitted per GJ of energy compared to 2021 as the Company’s direct and indirect energy consumption was four percent higher underground volumes.than in 2021. Absolute Scope 1 and Scope 2 GHG emissions in 2022 increased by seven percent to 1.47Mt compared to 2021, which is the Company’s new baseline year.
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Foreign exchange fluctuations
Total cash costs in all business segments are for local procurement largelypartly incurred in local currency where the relevant operation is located. US dollar denominated total cash costs and net income tend to be adversely impacted by local currency strength and favourably impacted by local currency weakness, assuming there are no other offsetting factors. AngloGold Ashanti’s financial results can be influenced significantly by the fluctuations in the South African Rand, Brazilian Real,real, Australian Dollar,dollar, and, to a lesser extent, the Argentinian Peso, Ghanaian CediArgentinean peso and other local currencies. As set out below, during the year ended 31 December 2017,2022, the Australian dollar and Argentinean Pesopeso weakened and the South African Rand, AustralianBrazilian real strengthened against the US dollar, and Brazilian Real strengthened, which collectively had a favourable impact on AngloGold Ashanti’s US dollar denominated total cash costs.
| Average annual exchange rates to the US dollar | 2022 | 2021 | 2020 | ||||||||||||||
| Brazilian real | 5.16 | 5.40 | 5.15 | ||||||||||||||
| Australian dollar | 1.44 | 1.33 | 1.45 | ||||||||||||||
| Argentinean peso | 130.87 | 95.21 | 70.71 | ||||||||||||||
| Average annual exchange rates to the US dollar | 2017 | 2016 | 2015 | |||||
| South African Rand | 13.30 | 14.68 | 12.77 | |||||
| Brazilian Real | 3.19 | 3.48 | 3.33 | |||||
| Australian Dollar | 1.30 | 1.35 | 1.33 | |||||
| Argentinian Peso | 16.57 | 14.78 | 9.26 | |||||
In 2017,2022, the companyCompany derived 6747 percent (61(41 percent including joint ventures) of its revenues from South Africa, Brazil, Australia and Argentina, and incurred 7149 percent (64(45 percent including joint ventures) of its total cash costs in South Africa, Brazil, Australia and Argentina. ABased on average exchange rates in 2022, the Company estimates that a one percent strengthening of these local currenciesall of the Brazilian real, Argentinean peso, Australian dollar, Ghanaian cedi and the South African rand against the US dollar, will resultother factors remaining equal, would have resulted in an increase in cost of sales and total cash costs incurredper ounce of about $21approximately $13 million orand $6 per ounce.ounce, respectively. As a result of the sale of its remaining South African operations, AngloGold Ashanti’s exposure to fluctuations in the strength of the South African rand has been reduced.
Certain exchange controls were in force in emerging markets in which the companyCompany operates during the period under review, including, for example South Africa andin Argentina. In the case of South Africa,Argentina, although the exchange rate of the randArgentinean peso is primarily market determined, its value at any time may not be considered a true reflection of the underlying value while exchange controls exist. The government has indicated its intention to relax exchange controls over time. As exchange controls are relaxed, rand exchange rates will be more closely tied to market forces. It is not possible to predict whether or when thisthe Argentinean government will occurrelax exchange controls or the future value of the rand. For a detailed discussion of these exchange controls, see “Item 10D: Exchange controls”.Argentinean peso.
Total cash costs and effects of inflation
Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumables (which include explosives, timber and reagents among others), fuel, power and water, contractors’ costs and royalties.cash costs. The mining industry continues to experience price inflationincreases for costs of inputs used in the production of gold, which leads to higher total cash costs reported by many gold producers.
AngloGold Ashanti is unable to control the prices at which it sells its gold. Accordingly, in the event of significant inflation in South Africa or, to a lesser extent, Brazil, Argentina or Australia, without a concurrent devaluation of the local currency or an increase in the price of gold, there could be a material adverse effect upon the company’sCompany’s results and financial condition. See “Item 3D: Risk Factors—Inflation may have a material adverse effect on results of operations”.
At 31 December 2022, AngloGold Ashanti employs over 51,000globally on average approximately 32,594 people, globally,including contractors, most of whom are members of trade unions, particularly in South Africa, Continental Africa and the Americas. Salaries and wages account for a significant component of local total cash costs and are impacted by annual wage increases. During 2022, COVID-19 continued to – although to a lesser extent than in prior years – present challenges with travel restrictions and shortages of critical skills resulting in higher labour and contractors’ costs at certain operations.
Energy costs, comprising power, fuel and lubricants, are another material component of total cash costs. Due to the remote location of some of its mines in Continental Africa, AngloGold Ashanti uses fuel to generate power and uses fuel and lubricants at its mines to run its fleet and processing plants. The price of Brent Crude oil has fluctuated between $54 and $65increased from $42 per barrel of Brent crude in 2017.2020 to $71 per barrel in 2021 to $97 per barrel in 2022, a $55, or a 131 percent per barrel increase over the three-year period. AngloGold Ashanti estimates that for each $1$1.00 per barrel rise or fall in the oil price, other factors remaining equal, the averagecost of sales and total cash costs per ounce of all its operations increaseschange by about $3approximately $1 million or $0.8$0.50 per ounce, withrespectively. The sensitivity analysis includes the impacts of oil hedges. In July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent Crude oil for the period January 2023 to December 2023 that will be cash settled on a monthly basis against the contract price. The average price achieved on the forward contracts is $89.20 per barrel of Brent Crude oil. At 31 December 2022, the mark-to-market value of these oil derivatives was an unrealised loss of $6 million. The cost of sales and total cash costs per ounce of certain of the
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AngloGold Ashanti has no influence over the cost of most consumables, many of which are linked to some degree to the price of oil and steel and in a number of cases have exceeded inflation.consumables. Furthermore, there has also been volatility recently in the price of steel, used in the manufacture of most forms of fixed and mobile mining equipment, which is a relatively large contributor to the operating costs and capital expenditure of a mine. Fluctuations in oil and steel prices as well as cost increases in respect of labour, explosives, cyanide and other production inputs have a significant impact on operating costs and capital expenditure. COVID-19 continued to – although to a lesser extent than in prior years – present challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices.
Royalties (excluding joint ventures), which are generally calculated as a percentage of revenue, varied over the past three years from $100 million incurred in 2015 to $105 million incurred in 2016 and $116$181 million in 2017,2020 to $162 million in 2021 to $185 million in 2022, a two percent increase over the three-year period, primarily due to the variations in the gold prices received, production and royalty rate increases. At Geita in Tanzania, despite the dispute over the legal basis for the increased royalty rate, from four percent to six percent, and the imposition of one percent clearing fee for the export of gold. Our subsidiaries in Tanzania are paying the new levies under protest. As a result, the additional royalty of $11 million paid has been expensed and accounted for as a special item.
Royalties are likely to continue to vary in the coming years asdue to the variations in the gold prices and the fact that in a number of jurisdictions host governments increasingly seek to obtain a higher share of revenue by increasing the royalty rates for gold mines.
Total provisions for decommissioning and for environmental restoration activities (excluding joint ventures)ventures and discontinued operations) totalled $705$659 million in 2016 and $6952020, $673 million in 2017. The2021 and $578 million in 2022. During 2021, the provisions for decommissioning and restoration increased by $14 million largely due to the recognition of a change in estimates is attributablerelating to the ongoing transition to dry-stacking operations in Brazil to comply with new legal requirements in Brazil as well as changes in the methodology for calculating such estimates. During 2022, the provisions for decommissioning and restoration decreased by $95 million mainly due to changes in estimates resulting from changes in discount rates, due to changes in global economic assumptions, and changes in mine plans resulting in a change in cash flows andas well as changes in the design of tailings storage facilities (“TSFs”). See also “Item 4B: Business Overview—Regulatory Environment Enabling AngloGold Ashanti to Mine”, “Item 4B: Business Overview—Mine Site Rehabilitation and in methodology following requests from the environmental regulatory authoritiesClosure” and royalty rate increases. During 2017 $23 million for restoration“Item 4B: Business Overview—Sustainability and decommissioning was transferred to assets held for sale.Environmental, Social and Governance ("ESG") Matters”.
Amortisation of tangible assets
Amortisation of tangible assets increased during the 2015 - 20172020 to 2022 period by $25 million, or five percent, from $737$526 million in 2020 to $817$551 million in 2022, largely due to the Obuasi redevelopment project continuing to ramp up to full production, increased productioninvestment in TSFs at Serra Grande and higher deferred stripping at Tropicana and Iduapriem.
Amortisation of right of use assets, as recognised in accordance with IFRS 16 “Leases”, increased during the 2020 to 2022 period by $34 million, or 72 percent, from $47 million in 2020 to $81 million in 2022, mainly due to additional lease contracts entered into at the Brazilian operations and at the Geita Siguiri and Cerro Vanguardia. The increasemine.
Amortisation of intangible assets decreased during the 2020 to 2022 period by $1 million, or 50 percent, from $2 million in amortisation was partly offset by the impairment of assets at Kopanang and Tau Tona and the reclassification of the assets and liabilities of Moab Khotsong and Kopanang,2020 to non-current assets and liabilities held for sale during October 2017, at which stage, amortisation of these assets ceased.$1 million in 2022.
Exploration and evaluation costs
The companyCompany has expensed exploration expenditure during the years ended 31 December 2015, 20162020, 2021 and 20172022 in order to replenish depleting OreMineral Reserve and bring new ore bodies into pre-feasibility or feasibility. The expensed exploration costs incurred over the last three fiscal years amounted to $132$124 million in 2015, $1332020, $164 million in 20162021 and $114$205 million in 2017.2022. Exploration expenditure reducedincreased during 2017, with a reduction2022 mainly due to an increase in greenfields exploration as well as lower spend on prefeasibility studies.in Nevada, United States.
Corporate administration, marketing and otherrelated expenses
The corporate administration, marketing and otherrelated expenses incurred amounted to $78$68 million in 2015, $612020, $73 million in 20162021 and $64$79 million in 2017.2022. The costs were higherincrease in 20172022 of $6 million, or eight percent, was mainly due to the stronger rand.allocation of service costs to corporate costs following the implementation of the new Operating Model. This increase was partly offset by the exchange rate impact of a 11 percent weaker local currency.
For all of the AngloGold Ashanti reviewsGroup’s cash generating units (“CGUs”) where indicators of impairment or reversal of impairment have been identified, the recoverable amounts of the CGUs were determined. With the exception of Serra Grande, the Córrego do Sítio mining complex (“CdS”) and teststhe Mineração Cuiabá mining complex (“Cuiabá”) in Brazil, the recoverable amounts exceeded the carrying amounts of the CGUs and management has considered the sensitivity of the impairment calculations to various key inputs and assumptions such as the gold price and exchange rates and concluded that reasonably possible changes to these key inputs and assumptions applied would not result in any impairment loss or the reversal of a previous impairment loss to be recognised.
These sensitivities have been taken into consideration in determining the required impairments as disclosed below. Management assumptions for the value in use of its assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. AngloGold Ashanti values individual mining assets at the lowest level for which cash flows are identifiable as independent of cash flows of other miningtangible assets and liabilities.
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represents itsmanagement’s best estimate of the future price of gold. In arriving at the estimatedA long-term real gold price AngloGold Ashanti considers all available market information including current prices, historical averages, and forward pricing information and data. The long term real gold price of $1,240$1,731 per ounce in 2017 and $1,212(2021: $1,599 per ounce in 2016, wereounce; 2020: $1,450 per ounce) is based on a range of economic and market conditions which were, at that time,are expected to exist over the remaining useful life of the assets.
In determining the impairment for each CGU, the real post-tax rate was derived from the weighted average cost of capital (“WACC”) using the Capital Asset Pricing Model (“CAPM”) to determine the required return on equity with risk factors consistent with the basis used in 2021. At 31 December 2022, the derived group WACC was 12.2 percent (real post-tax) which is 360 basis points higher than 8.6 percent at 31 December 2021, and is based on the industry average capital structure of the major gold companies considered to be appropriate peers. In determining the WACC for each CGU, sovereign and mining risk factors are considered to determine country specific risks. In certain instances, a specific risk premium was added to large projects being undertaken or the turnaround nature of a specific mine to address uncertainties in the forecast of the cash flows.
Córrego do Sítio (CdS)
CdS is owned and operated by AngloGold Ashanti considersMineração (“AGA Mineração”) in Brazil. The CdS mining complex has been in operation since 1989 and consists of open pit and underground mines. The property is currently in a production stage. In line with AngloGold Ashanti's reinvestment strategy, management took a decision during the long-term fundamentals that providethird quarter of 2022 to carve out the underperforming complex of CdS from the AGA Mineração CGU and to investigate alternative strategic options including either to sell the complex, place the complex under care and maintenance, close the complex or to consider additional capital expenditure to regain profitability of the complex. After the strategic review of CdS, the Company has elected to retain CdS. This decision resulted in the disaggregation of the AGA Mineração CGU into two separate CGUs, being the CdS mining complex CGU and the Cuiabá mining complex CGU. As a result of these impairment indicators, the recoverable amount for the CdS mining complex CGU was determined not to support its carrying values as at 30 September 2022 and an impairment loss of $151 million ($189 million gross of taxes) was recognised and included in the Americas segment. The disaggregation of CGUs did not have an impact on reportable segments in terms of IFRS 8 “Operating Segments” as disclosed in “Item 18: Financial Statements—Note 2—Segmental Information”. The recoverable amount of $5 million was determined with reference to the CGU’s value in use derived from a discounted cash flow model, using a discount rate of 8.5 percent, compared to the CGU’s carrying amount of $156 million.
Cuiabá
Cuiabá is owned and operated by AGA Mineração in Brazil. It has been in operation since 1834 and is an underground mine. The property is currently in the production stage. The Cuiabá mining complex CGU, which was disaggregated from the AGA Mineração CGU, recognised an impairment loss of $57 million ($70 million gross of taxes). This was largely due to the suspension of filtered tailings deposition on the Calcinados TSF and processing of gold price assumption. These include, amongstconcentrate at the Queiroz plant in December 2022 (with both servicing the Cuiabá mining complex). For further information, refer to “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Brazil” and “Item 3D: Risk Factors—Compliance with tailings management requirements and standards, and potential liabilities in the event of a failure to timely comply with these requirements or an incident involving a tailings storage facility, could adversely impact AngloGold Ashanti’s financial condition, results of operations and reputation”.
The recoverable amount of $304 million (compared to the CGU’s carrying amount of $361 million) was determined with reference to the CGU’s value in use which requires the use of estimates. The impairment result was derived from a discounted cash flow model and a discount rate of 8.5 percent.
Management modelled various scenarios, which included a combination of reasonably possible changes in key assumptions, to determine the impact on the recoverable amount. The impairment assessment required significant judgement and estimation uncertainty. The impairment loss was recognised and included in the Americas segment.
Serra Grande
Mineração Serra Grande (“Serra Grande”) is wholly-owned by AngloGold Ashanti and is located in the northwest of Goiás state, central Brazil. It has been in operation since 1986 and consists of three underground and two open pit mines. The property is currently in the production stage. The Serra Grande CGU recognised an impairment loss of $38 million ($45 million gross of taxes) during December 2022 largely due to a projection of lower grades and ounces and an increase in the interest rates driven by global inflation and country risk which resulted in an increased discount rate. The recoverable amount of $128 million was determined with reference to the CGU’s value in use derived from a discounted cash flow model, using a discount rate of 8.5 percent, compared to the CGU’s carrying amount of $166 million. The impairment loss was recognised and included in the Americas segment.
Other (expenses) income
Other (expenses) income incurred over the last three fiscal years amounted to an expense of $57 million in 2020, an expense of $136 million in 2021 and an expense of $26 million in 2022. The decrease during 2022 was largely due to care and
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maintenance activities of $45 million incurred in 2021 at the Obuasi mine during the voluntary suspension of underground mining between May and October 2021 following a sill pillar incident, retrenchment and related costs of $18 million incurred in 2021 as part of the transition to the new Operating Model and bond settlement costs of $24 million incurred in 2021 related to the tender offer for, and subsequent redemption of, the $750 million aggregate principal amount of 5.125% notes due 2022, none of which were repeated in 2022. The non-occurrence of the aforementioned costs in 2022 contributed to a decrease in cost of $87 million. Further decreases in other things, goldexpenses were primarily due to the lower cost of legacy tailings operations of $25 million, mainly at Obuasi, as a long-term storeresult of fewer activities at such legacy tailings operations, and lower value hedge against inflation, safe haven status, strong physical demand from emerging markets, central bank purchases, quantitative easingadded tax (“VAT”) of $7 million and devaluation of paper currency, falling global mine production and risingother duties expensed. These decreases in other expenses were partly offset by higher due diligence project costs of producing gold, all of which represent significant and enduring trends supportive of AngloGold Ashanti's gold price assumption.$5 million during 2022.
Taxation decreased over the period 2015 - 20172020 to 2022 from an expense of $211$625 million in 20152020 to an expense of $108$173 million in 2017. Reduction2022. Decrease in taxation over the period 2015 - 2017 is2020 to 2022 was largely due to a lower deferred taxation rateearnings in South AfricaAustralia, Ghana, Tanzania and Argentina and higher impairments in carry forward losses and in Brazil due to the effect of exchange rate movements as well as lower current and withholding taxes related to Tanzanian operations.Brazil.
Taxation is likely to continue to be volatile in the coming years, as host governmentsdue to fluctuations in a number of jurisdictions increasingly seek to obtain a higher share of revenue by increasing rates of existing taxesgold price and introducing new taxes on gold mines.production.
Production in 20172022
In the AmericasAfrica region, production increased by two216,000 ounces, or 15 percent, or 20,000from 1,419,000 ounces in 2017 as compared2021 to 2016.1,635,000 ounces in 2022. The increase was mainly due to higher production from CDS Operation withObuasi, Iduapriem, Siguiri and Geita, partly offset by lower production from Kibali. Gold production at Iduapriem increased by 46,000 ounces, or 23 percent, from 202,000 ounces in 2021 to 248,000 ounces in 2022. Gold production was higher year-on-year mainly due to higher ore volumes processed, further supported by higher grades recovered as the mine accesses ore tonnes from Block 5 and Teberebie Cut 2a compared to Block 5 and the Sulphide minedrawdown from stockpiles in 2021. Gold production at Obuasi increased by 142,000 ounces, or 131 percent, from 108,000 ounces in 2021 to 250,000 ounces in 2022. Gold production was higher year-on-year mainly due to the resumption of stoping activities during 2022 following the temporary suspension of underground stoping activities in 2021 due to a sill pillar incident in May 2021, as well as the continued ramp-up of the operations . Gold production at Siguiri increased by 21,000 ounces, or eight percent, from 258,000 ounces in 2021 to 279,000 ounces in 2022. Gold production was higher year-on-year mainly due to higher recovered grades, partly offset by lower ore volumes processed (as a result of local community protests related to employment demands which led to mining disruptions and gradethe temporary suspension of mining activities during the month of July 2022). Gold production at Geita increased by 35,000 ounces, or seven percent, from both486,000 ounces in 2021 to 521,000 ounces in 2022. Gold production was higher year-on-year mainly due to higher ore volumes processed as well as higher recovered grades. Gold production at Kibali decreased by 28,000 ounces, or eight percent, from 365,000 ounces in 2021 to 337,000 ounces in 2022. Gold production was lower year-on-year mainly due to lower grades recovered, partly offset by a marginal increase in ore volumes processed.
In the OxideAmericas region, production increased by 10,000 ounces, or two percent, from 559,000 ounces in 2021 to 569,000 ounces in 2022. The increase was mainly due to higher production from Serra Grande and Sulphide minesCerro Vanguardia, partly offset by lower production from AGA Mineração. Gold production at AGA Mineração decreased by 20,000 ounces, or six percent, from 331,000 ounces in Brazil.2021 to 311,000 ounces in 2022. Gold production was lower year-on-year mainly due to lower ore volumes processed, partly offset by higher grades recovered. In addition, extreme weather including intense rainfalls followed by widespread flooding in the state of Minas Gerais in Brazil during 2022 negatively impacted production. Infrastructure was temporarily inaccessible in and around the mine and employees were confined to their homes in nearby cities during the flooding. Gold production at Serra Grande increased by 5,000 ounces, or six percent, from 83,000 ounces in 2021 to 88,000 ounces in 2022. Gold production was higher year-on-year mainly due to higher recovered grades resulting from changes to the geological model, partly offset by lower ore volumes processed. Production during 2021 was negatively impacted by COVID-19 related restrictions and stabilisation challenges during the conversion of the TSFs to dry-stacking operations to comply with legal requirements in Brazil, which were not repeated in 2022. Gold production at Cerro Vanguardia increased by 25,000 ounces, or 17 percent, from 145,000 ounces in 2021 to 170,000 ounces in 2022. Gold production was higher year-on-year mainly due to a combination of higher ore volumes processed, higher recovered grades and fewer COVID-19 related limitations and restrictions that affected the mine’s ability to operate at full capacity.
In the Australia region, production increased by 44,000 ounces, or nine percent, from 494,000 ounces in 2021 to 538,000 ounces in 2022. This increase was mainly due to higher production from Sunrise Dam and Tropicana. Gold production at Sunrise Dam increased by 3,000 ounces, or one percent, from 229,000 ounces in 2021 to 232,000 ounces in 2022. Gold
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production was marginally higher year-on-year mainly due to higher recovered grades, partly offset by lower ore volumes processed following COVID-19 related production challenges. Gold production at Tropicana increased by 41,000 ounces, or 15 percent, from 265,000 ounces in 2021 to 306,000 ounces in 2022. Gold production was higher year-on-year mainly due to a combination of higher ore volumes processed from the Boston Shaker open pit and underground mine and higher recovered grades as well as the adverse impact of the wall failure in the Boston Shaker open pit in June 2021, which delayed higher grade ore delivery, and which was not repeated during 2022.
Production in 20162021
In the AmericasAfrica region, production decreased by one184,000 ounces, or 11 percent, or 11,000from 1,603,000 ounces (excluding discontinued operations) in 2016 as compared2020 to 2015.1,419,000 ounces in 2021. The decrease was mainly due to lower production from Iduapriem, Obuasi and Geita, partly offset by higher production from Siguiri. Gold production at Iduapriem decreased by 73,000 ounces, or 27 percent, from 275,000 ounces in 2020 to 202,000 ounces in 2021. Gold production was lower year-on-year mainly due to lower grades from the depletion of ore in Cut 1 and delayed waste stripping at Cut 2 of the Teberebie pit, as well as the impact of a drawdown on stockpiles. Gold production at Obuasi decreased by 19,000 ounces, or 15 percent, from 127,000 ounces in 2020 to 108,000 ounces in 2021. Gold production was lower year-on-year mainly due to underground mining activities being voluntarily suspended between 18 May 2021 and 15 October 2021, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production. Gold production at Siguiri increased by 44,000 ounces, or 21 percent, from 214,000 ounces in 2020 to 258,000 ounces in 2021. Gold production was higher year-on-year mainly due to an improvement in recovered grade which was attributable to improved plant recoveries as a result of operationalthe carbon-in-leach (“CIL”) conversion done at the end of 2020 and geotechnical issuesthe commencement of processing Block 2 material in Brazilthe second half of 2021. Gold production at Geita decreased by 137,000 ounces, or 22 percent, from 623,000 ounces in 2020 to 486,000 ounces in 2021. Gold production was lower year-on-year mainly due to mining lower grades and the drawdown on stockpiles, as significant reinvestments progressed across the Geita lease during 2021. Gold production at Kibali increased by 1,000 ounces, or less than one percent, from 364,000 ounces in 2020 to 365,000 ounces in 2021. Gold production was marginally higher year-on-year as the mine delivered a good overall performance from the metallurgical plant, with increased tonnage during 2021, driven by higher open pit tonnes mined as compared to 2020.
In the Americas region, production decreased by 90,000 ounces, or 14 percent, from 649,000 ounces in 2020 to 559,000 ounces in 2021. Lower production was encountered at AGA Mineração.o, Serra Grande and Cerro Vanguardia. Gold production at AGA Mineração decreased by 31,000 ounces, or nine percent, from 362,000 ounces in 2020 to 331,000 ounces in 2021. The decreaseCórrego do Sítio mining complex was partiallymainly impacted by challenges in the crushing and milling circuit and lower tonnes of ore treated. Production was also adversely impacted by a seven-day strike by mine workers in September 2021. The Cuiabá mining complex recorded an increase in tonnes of ore treated year-on-year, which was partly offset by a slight increaselower grades. Gold production at Serra Grande decreased by 31,000 ounces, or 27 percent, from 114,000 ounces in 2020 to 83,000 ounces in 2021. Gold production was lower year-on-year mainly due to lower tonnage resulting from various delays in accessing mine stopes, as well as lower feed grades, the negative impact of COVID-19 on mining operations as well as operational impacts of the fatality that occurred in February 2021. The production performance was further impacted by stabilisation challenges during the commissioning of the new filter process in connection with work to convert the TSFs to dry-stacking operations to comply with new legal requirements in Brazil. Gold production at Cerro Vanguardia decreased by 28,000 ounces, or 16 percent, from 173,000 ounces in 2020 to 145,000 ounces in 2021. Gold production was lower year-on-year mainly due to the effect of lower grades as per the mine plan for 2021 as well as COVID-19 related limitations and restrictions that affected the mine’s ability to operate at full capacity.
In the Australia region, production decreased by 60,000 ounces, or 11 percent, from 554,000 ounces in 2020 to 494,000 ounces in 2021. This decrease was mainly due to lower production from Sunrise Dam and Tropicana. Gold production at Sunrise Dam decreased by 27,000 ounces, or 11 percent, from 256,000 ounces in 2020 to 229,000 ounces in 2021. Gold production was lower year-on-year mainly due to lower head grade and a result ofdecrease in metallurgical recovery, which was partly offset by higher tonnes treatedmined in the underground mine. Mine-to-mill grade reconciliations stabilised during the second half of 2021 and access to higher-grade underground ore was achieved at the end of 2021 in the newly accessed Frankie orebody. Gold production at Tropicana decreased by 33,000 ounces, or 11 percent, from 298,000 ounces in 2020 to 265,000 ounces in 2021. Gold production was lower year-on-year mainly due to a lower mill feed grade as stockpile drawdowns increased while mining focused on waste removal in the Havana Stage 2 Cutback. Production was also adversely impacted by the wall failure in the Boston Shaker open pit in June 2021, which delayed higher grade ore delivery. Production at Tropicana was also adversely affected by labour market shortages which had an impact on open pit and underground material movement.
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Comparison of financial performance in 2017, 20162022, 2021 and 20152020
| Financial performance of AngloGold Ashanti | Year ended 31 December | |||||||
| (in millions) | 2017 | 2016 | 2015 | |||||
| Gold income | 4,356 | 4,085 | 4,015 | |||||
| Cost of sales | (3,582 | ) | (3,263 | ) | (3,294 | ) | ||
| Other expenses | (859 | ) | (564 | ) | (552 | ) | ||
| Share of associates and joint ventures’ profit | 22 | 11 | 88 | |||||
| Taxation expense | (108 | ) | (189 | ) | (211 | ) | ||
| Net profit attributable to non-controlling interests | 20 | 17 | 15 | |||||
| Net (loss) profit attributable to equity shareholders – Continuing operations | (191 | ) | 63 | 31 | ||||
| Net (loss) profit attributable to equity shareholders – Discontinued operations | — | — | (116 | ) | ||||
| Financial performance of AngloGold Ashanti | Year ended 31 December | ||||||||||||||||
| (in $ millions) | 2022 | 2021 | 2020 | ||||||||||||||
| Restated | |||||||||||||||||
| Continuing operations | |||||||||||||||||
| Revenue from product sales | 4,501 | 4,029 | 4,595 | ||||||||||||||
| Cost of sales | (3,362) | (2,857) | (2,829) | ||||||||||||||
| Total of all other (expenses) income | (816) | (463) | (417) | ||||||||||||||
| Share of associates and joint ventures’ profit (loss) | 166 | 249 | 278 | ||||||||||||||
| Taxation | (173) | (312) | (625) | ||||||||||||||
| Discontinued operations | |||||||||||||||||
| Profit (loss) from discontinued operations | — | — | 7 | ||||||||||||||
| Profit for the period | 316 | 646 | 1,009 | ||||||||||||||
| Net profit (loss) attributable to equity shareholders | |||||||||||||||||
| - Continuing operations | 297 | 622 | 984 | ||||||||||||||
| - Discontinued operations | — | — | 7 | ||||||||||||||
| Net profit (loss) attributable to non-controlling interests | |||||||||||||||||
| - Continuing operations | 19 | 24 | 18 | ||||||||||||||
Comparison of total cost of sales in 2017, 20162022, 2021 and 20152020
The following table presents cost of sales from continuing operations for the AngloGold Ashanti groupGroup for the three-year period ended 31 December 2017:2022:
| Cost of sales for AngloGold Ashanti | Year ended 31 December | ||||||||||||||||
| (in $ millions) | 2022 | 2021 | 2020 | ||||||||||||||
| Restated | |||||||||||||||||
| Total cost of sales | 3,362 | 2,857 | 2,829 | ||||||||||||||
| Inventory change | 30 | (6) | (14) | ||||||||||||||
| Amortisation of tangible assets | (551) | (411) | (526) | ||||||||||||||
| Amortisation of intangible assets | (1) | (3) | (2) | ||||||||||||||
| Amortisation of right of use assets | (81) | (63) | (47) | ||||||||||||||
| Retrenchment costs | (6) | (2) | (2) | ||||||||||||||
| Rehabilitation and other non-cash costs | — | (38) | (32) | ||||||||||||||
| Total cash costs | 2,753 | 2,334 | 2,206 | ||||||||||||||
| Cost of sales for AngloGold Ashanti | Year ended December 31 | |||||||
| 2017 | 2016 | 2015(1) | ||||||
| Total cost of sales | 3,582 | 3,263 | 3,294 | |||||
| Inventory change | (15 | ) | 38 | (23 | ) | |||
| Amortisation of tangible assets | (817 | ) | (789 | ) | (737 | ) | ||
| Amortisation of intangible assets | (6 | ) | (20 | ) | (40 | ) | ||
| Retrenchment costs | (6 | ) | (14 | ) | (11 | ) | ||
| Rehabilitation and other non-cash costs | (29 | ) | (43 | ) | 10 | |||
| Total cash costs | 2,709 | 2,435 | 2,493 | |||||
| Royalties | (116 | ) | (105 | ) | (100 | ) | ||
| Other cash costs | (19 | ) | (24 | ) | (27 | ) | ||
| 2,574 | 2,306 | 2,366 | ||||||
| By-products revenue | 154 | 138 | 127 | |||||
| Cash operating costs | 2,728 | 2,444 | 2,493 | |||||
Comparison of financial performance in 20172022 with 2016
2021
Our gold income is materially impacted by price and volume variances. All of our costs are impacted by the consequences of average exchange rate movements.
Exchange fluctuations in, and the average exchange rates for, the South African Rand, Brazilian Real,real, Australian Dollardollar and, to a lesser extent, the Argentinean Pesopeso and other local currencies have effects on the various components that make up our costs based on the level of local procurement of each of these costs. For a discussion of the effect of foreign exchange fluctuations on our financial results, see “Item 5A-Foreign“Item 5A: Operating Results—Key factors affecting results—Foreign exchange fluctuations”.
partly offset by a decrease in by-product revenue. Gold income from the South African operations in 2017 decreasedincreased by $72$485 million, or six12 percent, to $1,101 million from $1,173$3,903 million in 2016. The decrease2021 to $4,388 million in 2022. This increase was mainly asdue to an increase in ounces of gold sold, partly offset by a result of the decrease in gold sold of 61,000 ounces, primarily as a result of the orderly closure of Tau Tona, which accounted for a $80 million decrease in gold income. The decrease was partially offset by the increase in theaverage gold price received of $3 per ounce. Gold sold increased by
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269,000 ounces, or 13 percent, from 2.116 million ounces in 2021 to 2.385 million ounces in 2022, which resulted in an increase in gold income of $8$491 million. The average gold price received decreased by $3 per ounce, from $1,796 per ounce during 2021 to $1,793 per ounce in 2022, which resulted in a decrease in gold income of $6 million. By-product revenue decreased by $13 million, or ten percent, from $126 million in 2021 to $113 million in 2022, mainly due to a decrease in revenue from silver.
received. Gold income from Australiasold increased by $63 million,221,000 ounces, or 1021 percent, from $6461.060 million in 2016 to $709 million in 2017. The increase was due to the increase of 43,000 ounces in gold sold2021 to 1.281 million ounces in 2017,2022, which resulted in an increase in gold income of $59$403 million. GoldThere was an increase in production increased at Sunrise Dam dueacross all Africa operations in 2022 when compared to increased grades and improved metallurgical recoveries and improved mill throughput resulted2021. For a discussion of the increase in higher production at Tropicana.the Africa operations during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”. The increasedecrease in the average gold price received resulted in a decrease in gold income of $3 million. By-product revenue (excluding equity-accounted joint ventures) of $3 million in 2022 remained unchanged from $3 million in 2021.
Revenue from product sales from the Americas operations decreased by $5 million, from $1,147 million in 2021 to $1,142 million in 2022, mainly as a result of a decrease in by-product revenue, partly offset by an increase in gold income of $4 million.
income. Gold income from the Americas operations increased by $68$8 million, or sevenone percent, from $1,028 million in 2021 to $1,036 million in 2016 to $1,104 million in 2017. The2022. This increase was mainly due to an increasehigher ounces of 47,000gold sold, partly offset by a decrease in the average gold price received. Gold sold increased by 4,000 ounces, or one percent, from 561,000 ounces in gold sold2021 to 565,000 ounces in 2017,2022, which resulted in an increase in gold income of $61$10 million. There was an increase in production at Cerro Vanguardia and Serra Grande, partly offset by a decrease in production at AngloGold Ashanti Mineração. For a discussion of the increase in production at the Americas operations during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”. The decrease in average gold price received resulted in a decrease in gold income of $2 million. By-product revenue decreased by $13 million, or 11 percent, from $119 million in 2021 to $106 million in 2022, mainly due to a decrease in silver revenue from lower silver production in Argentina.
Revenue from product sales from the Australia operations increased by $77 million, or nine percent, from $894 million in 2021 to $971 million in 2022, mainly as a result of an increase in gold income. Gold production primarilyincome increased at AGA Mineraçãoby $77 million, or nine percent, from $890 million in Brazil2021 to $967 million in 2022. This increase was mainly due to higher underground tonnages mined, coupled with improved grades. The increaseounces of gold sold, partly offset by a decrease in the average gold price receivedreceived. Gold sold increased by 44,000 ounces, or nine percent, from 495,000 ounces in 2021 to 539,000 ounces in 2022, which resulted in an increase in gold income of $7$79 million. There was an increase in production at Tropicana which was partly offset by a decrease in production at Sunrise Dam. For a discussion of the increase in production at the Australia operations during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”. The decrease in the average gold price received resulted in a decrease in gold income of $2 million. By-product revenue of $4 million in 2022 remained unchanged from $4 million in 2021.
Cost of sales
Cost of sales increased by $505 million, or 18 percent from $3,263$2,857 million in 20162021 to $3,582$3,362 million in 2017, which represents a $319 million or 10 percent increase.2022. The increase was primarily due to $284 million, or 12 percent,an increase in cash operating costs by $394 million, or 18 percent, from $2,444$2,160 million in 20162021 to $2,728$2,554 million in 2017. 2022, an increase in amortisation of tangible assets by $140 million, or 34 percent, from $411 million in 2021 to $551 million in 2022, an increase in amortisation of right of use assets by $18 million, or 29 percent, from $63 million in 2021 to $81 million in 2022 and an increase in royalties paid by $23 million, or 14 percent, from $162 million in 2021 to $185 million in 2022, mainly due to higher ounces sold. This increase was partly offset by a decrease in environmental rehabilitation and other non-cash costs by $38 million, or 100 percent, from $38 million in 2021 to nil in 2022, an inventory change of $36 million, or 600 percent, from a charge of $6 million in 2021 to a credit of $30 million in 2022, and a decrease in amortisation of intangible assets by $2 million, or 67 percent, from $3 million in 2021 to $1 million in 2022.
The increase in cash operating costs was mainly due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, services, other charges, fuel and power costs. Higher labour and contractors’ costs were mainly due to the strengtheningresumption of local currencies againststoping activities during 2022 at Obuasi, following the US dollartemporary suspension of underground mining activities in 2021 due to a sill pillar incident in May 2021. At Geita, with the acceleration of the heavy mobile equipment (“HME”) fleet rebuilds as the open pit mine expanded, higher underground mining contractors’ costs were incurred. Higher labour and inflationary increasescontractors’ costs were also due to shortages of critical skills at certain operations. Higher commodity costs were mainly due to an increase in labour costs, storesthe prices of steel, support and consumable costs,construction materials, explosives, timber and reagents. Higher fuel and power costs and contractor costs. The increase in royalties of $11 million is due to the increase in revenue from the higher gold price, production achieved and increased royalty rates in 2017 compared to 2016. The additional royalty paid at Geita of $11 million was accounted for as a special item (refer to explanation above under total cash costs and impacts of inflation). Total amortisation increased by $14 million from $809 million in 2016 to $823 million in 2017. There was a $53 million inventory change from negative $38 million to positive $15 million due to a decrease in gold on hand. The increase in costs was partially offset by a $16 million increase in by-product revenue due to higher silver volumes sold. Rehabilitation and other non-cash costs decreased by $14 million from $43 million in 2016 to $29 million in 2017. This decrease arose from the changes to cash flows, inflation rates and discount rates compared to 2016. Retrenchment costs decreased by $8 million from $14 million in 2016 to $6 million in 2017.
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the changes to restoration provision cash flows in 2022 compared to 2021. The change in restoration provision cash flows was attributable to changes in discount rates due to changes in global economic assumptions, changes in mine plans resulting in a change in cash flows, changes in design of our TSFs in Brazil due to new legal requirements, and changes in the methodology used to calculate such estimates in response to comments from environmental regulatory authorities. The inventory change was mainly due to higher gold on hand at Obuasi, Siguiri, Geita, Tropicana and Sunrise Dam related to the timing of gold pours and shipments, lower amortisation of inventories in Brazil due to the suspension of tailings disposal and processing plant effluents treatment and lower amortisation of inventories at Cerro Vanguardia due to a higher volume of gold in process. The decrease in amortisation of intangible assets was mainly due to lower software and licence expenditure at Obuasi as compared to 2021.
In Continental Africa, cost of sales increased by $354 million, or 21 percent, from $925$1,650 million in 20162021 to $1,070$2,004 million in 2017, which represents a $145 million or 16 percent increase.2022. The increase was mainly due to an increase in contractorlabour and contractors’ costs, labourcommodity prices, logistics costs, consumable stores, and consumable costs,services, other charges, fuel and power costs, royalties paid and amortisation of tangible assetsassets. Higher commodity costs were mainly due to an increase in the prices of steel, support and inventory change.construction materials, explosives, timber and reagents. Higher fuel and power costs were mainly due to the increase in the price of Brent Crude oil. The increase in cost of sales was partiallypartly offset by a decrease in service related costs andlower environmental rehabilitation and other non-cash costs.
In the Americas, cost of sales increased by $91 million, or 11 percent, from $752$822 million in 20162021 to $851$913 million in 2017, which represents a $99 million or 13 percent increase.2022. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of tangible and consumableright of use assets, services and other charges, power and fuel cost, and write down of inventory. Royalties paid were higher mainly due to an increase in ounces of gold sold in 2022 as compared to 2021. The higher labour and contractors’ costs were mainly due to cost increases resulting from shortages of critical skills. Higher commodity costs were due to an increase in the prices of steel, support and construction materials, explosives, timber and reagents. Higher fuel and power costs contractorwere mainly due to the increase in the price of Brent Crude oil. The strengthening of the Brazilian real by four percent against the US dollar further increased costs. The increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs, total amortisationinventory changes and inventory change.the weakening of the Argentinean peso by 37 percent against the US dollar, as compared to 2021.
In Australia, cost of sales increased by $43 million, or six percent, from $740 million in 2021 to $783 million in 2022. The increase was partially offset by a decrease in service related costs andmainly due to an increase in by-product revenue from silver which was higherlabour and contractors’ costs, commodity prices, logistics costs, consumable stores, services and other charges, power and fuel costs, amortisation of tangible assets, and royalties paid mainly due to volumes sold.an increase in ounces of gold sold in 2022 as compared to 2021. The higher labour and contractors’ costs were mainly due to shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, explosives, timber and reagents. Higher fuel and power costs were mainly due to the increase in the price of Brent Crude oil. The increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs, and the weakening of the Australian dollar against the US dollar by eight percent as compared to 2021.
Total cash costs
Total cash costs increased by $419 million, or 18 percent, from $2,435$2,334 million in 20162021 to $2,709$2,753 million in 2017, which represents a $274 million, or 11 percent, increase.2022. The increase was primarily due to an increase in cash operating costs and royalties paid. Total cash costs include cash operating costs (which include salaries and wages, costs, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other consumables costs, fuel and power costs, contractor costs and royalties.cash costs. The strengthening of local currencies contributed $119 million to the increase. The increase was partially offset by a decrease in service related costs and an increase in revenue from by-products.
Cash operating costs increased by $394 million, or 18 percent, from $138$2,160 million in 20162021 to $154$2,554 million in 2017, which represents a $16 million, or 12 percent, increase. The increase was mainly2022, primarily due to anhigher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, services and other charges as well as higher fuel and power costs.
The strengthening of the Brazilian real against the US dollar contributed to the increase in revenue from silver sales from $99 million in 2016 to $122 million in 2017. Silver sold increased from 5.4 million ounces in 2016 to 6.6 million ounces in 2017. The increasetotal cash costs, which was mainly at Cerro Vanguardia. The increase was partiallypartly offset by an $8 million decreasethe weakening of local currencies against the US dollar in uranium revenue in South Africa at KopanangAustralia and Moab Khotsong.Argentina. Cash operating costs include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs.
Royalties,, which are generally calculated as a percentage of revenue, increased by $23 million, or 14 percent, from $105$162 million in 20162021 to $116$185 million in 2017,2022. The increase was primarily due to an increase in gold sales across all mining operations with the spotexception of Sunrise Dam, AGA Mineração and Kibali. The increase was partly offset by a decrease in the average gold prices and an increase in production at Siguiri, Cerro Vanguardia, Tropicana and Geita.price received per ounce.
Retrenchment costs
Retrenchment costs included in cost of sales decreasedincreased by $4 million, or 200 percent, from $14$2 million in 20162021 to $6 million in 2017, which represents an $82022.
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Rehabilitation and other non-cash costs
Environmental rehabilitation and other non-cash costs decreased by $38 million, or 57a 100 percent, decrease.from $38 million in 2021 to nil in 2022. The decrease was mainly due to retrenchment costschanges in mine plans resulting in a change in cash flows, changes in the South African region being includedmethodology used to calculate such estimates in special items. This decrease was partially offset by an increase in retrenchment costsresponse to comments from the South American region.
Amortisation of tangible, intangible and intangibleright of use assets
Amortisation of tangible, intangible and intangibleright of use assets expense increased by $156 million, or 33 percent, from $809$477 million in 20162021 to $823$633 million in 2017, which represents a $14 million or two percent increase. 2022.
Amortisation of tangible assets increased by $28$140 million, largelyor 34 percent, from $411 million in 2021 to $551 million in 2022. The increase was mainly due to higher amortisation at Iduapriem (mainly due to higher gold production combined with higher deferred stripping amortisation at Teberebie Cut 2a which commenced in 2022), at Tropicana (mainly due to higher deferred stripping amortisation due to mining and depletion of different ore bodies and due to increased capital additions), at Serra Grande (mainly due to higher gold production), at Obuasi (mainly due to higher production and the reset of the useful life for the mining fleet), at Geita (mainly due to the useful life reset done in 2022 for Mineral Reserve development and heavy mining equipment coming into production), at Cerro Vanguardia (mainly due to lower reserves at the end of 2022 compared with at the end of 2021 and higher deferred stripping amortisation) and at Siguiri and Córrego do Sitio. The increase was(mainly due to higher gold production), partially offset by a decrease inlower amortisation in South Africa. Amortisation of intangible assets is $14 million lower than 2016 mainlyat CdS (mainly due to decreased amortisation of softwarelower gold production and licensesreduction in asset cost due to the impairment that occurred during 2022) and at the South African and South American operations.
Amortisation of intangible assets decreased by $2 million, or 67 percent, from $3 million in 2021 to $1 million in 2022, mainly due to lower software and licence expenditure at Obuasi as compared to 2021.
Amortisation of right of use assets increased by $18 million, or 29 percent, from $63 million in 2021 to $81 million in 2022, mainly due to additional lease contracts for heavy mobile equipment entered into at AGA Mineração, Serra Grande and Geita.
Inventory change
Inventory change was a charge of $6 million in 2021 as compared to a credit of $30 million in 2022, which represents a change of $36 million. This change was primarily due to lower cost of unsold gold at Obuasi of $16 million and care and maintenance costs of $8 million partially offset by an increase in other provisions of $2 million. Corporate expenses increased by $3 million in 2017 compared to 2016 relating mainly to exchange variances. Exchange losses decreased by $77 million mainly as a result of timing of shipments, lower cost at Siguiri of $5 million and at Geita of $7 million due to an increase in gold on hand, lower cost at the $60Australian operations of $3 million exchange lossdue to timing of gold pours and shipments, lower amortisation of inventories at the Brazil operations resulting from the suspension of tailings disposal and processing plant effluents treatment of $3 million, and lower amortisation of inventories at Cerro Vanguardia due to a higher volume of gold in process of $5 million. This change was partly offset by an increased cost due to higher sales and higher production in 2022 at Cerro Vanguardia of $3 million.
Impairment, derecognition of assets and profit (loss) on the foreign currency translation reserve release in the prior year.disposal
Other (expenses) income
Other (expenses) income decreased by $110 million, or 81 percent, from an expense of $136 million in 2021 to an expense of $26 million in 2022. The decrease during 2022 was largely due to care and maintenance activities of $45 million incurred in 2021 at the Obuasi mine during the voluntary suspension of underground mining assets in South Africa of $286 millionbetween May and impairment of goodwill at First Uranium (South Africa) of $9 million;October 2021 following a sill pillar incident, retrenchment costs, mainly in South Africa, of $88 million; a provision for the settlement of the silicosis class action of $63 million and the additional royalty at Geita of $11 million. The increase was partially offset by royalties receivedrelated costs of $18 million receiptincurred in 2021 as part of proceeds on the transition to the new Operating Model and bond settlement costs of an arbitration$24 million incurred in 2021 related to the tender offer for, and subsequent redemption of, $6the $750 million OCI recycle on disposalaggregate principal amount of Mariana resources5.125% notes due 2022, none of $5 millionwhich were repeated in 2022. The non-occurrence of the aforementioned costs in 2022 contributed to a decrease in cost of $87 million. Further decreases in other expenses were primarily due to the lower cost of legacy tailings operations, mainly at Obuasi, as a result of fewer activities at such legacy tailings operations, and profit on sale of assets of $3 million.lower VAT and other duties expensed. These decreases in other expenses were partly offset by higher due diligence project costs during 2022.
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Finance costs and unwinding of obligations
Finance costs decreasedincreased by $16$9 million, or 10eight percent, to $142from $110 million in 2017, compared2021 to $158$119 million in 2016. The decrease of $16 million was2022, mainly due to a decrease in capitalisation of interest against the reduction in interest arising on the settlement of the $1.25 billion bond during August 2016Obuasi redevelopment project, lower finance costs from borrowings and settlement of the R750 million bond during December 2016 partially offset by higher interest paid on the banking facilities in South Africa of $12 million.amortisation fees compared to 2021. Unwinding of obligations expense of $27increased by $24 million, was recorded in 2017 compared with $22or 400 percent, from $6 million in 2016.2021 to $30 million in 2022, mainly due to an increase in unwinding of other indirect taxes at Geita and non-current receivables at Siguiri as well as higher unwinding on the environmental rehabilitation provisions.
Share of associates and joint ventures'ventures’ profit
Share of associates and joint ventures'ventures’ profit increaseddecreased by $83 million, or 33 percent, from a profit of $249 million in 2021 to a profit of $22$166 million in 2017 compared to profit $11 million in 2016,2022, mainly as a result of an increasea decrease in net impairment reversals from $6equity earnings of $77 million in 2016at Kibali due to $15lower revenues and higher legal and dividend settlement fees, and $5 million in 2017.at Rand Refinery (Pty) Limited.
Taxation
A taxation expense of $108$173 million was recorded in 2017,2022, compared to a taxation expense of $312 million in 2021, which represents a $139 million, or 45 percent, decrease. Charges for current tax in 2022 amounted to $231 million, compared to $248 million in 2021, which represents a $17 million, or seven percent, decrease. The decrease in current tax was mainly due to lower pre-tax profit in Brazil. Charges for deferred tax in 2022 amounted to a deferred tax credit of $58 million, compared to an expense of $189$64 million in 2016. Charges for current tax in 2017 amounted to $1762021, which represents a $122 million, compared to $ 234 million in 2016.or 191 percent, decrease. The decrease in deferred tax iswas mainly due to lower earnings in Brazil and Tanzania, elimination of withholding tax on dividends in 2017 in Argentina and credits due to changes in tax legislation substantially enacted in North America in late December 2017. Charges forhigher deferred tax assets raised in 2017 amounted to a net deferred tax benefit of $68 million compared to a net deferred tax benefit of $45 millionGhana and higher impairments in 2016. The increase in deferred taxation benefit is largely due to higher tax losses, deferred tax credits booked on impairments, retrenchment and silicosis provisions in South Africa, which were partially offset by the reversal of certain capital uplift allowances at First Uranium (in South Africa) relating to prior years.Brazil.
Comparison of financial performance in 20162021 with 20152020
Our gold income is only materially impacted by price and volume variances. All of our costs are impacted by the consequences of average exchange rate movements.
Revenue from product sales decreased by $566 million, or 12 percent, from $4,595 million in 2020 to $4,029 million in 2021, mainly as a result of a decrease in gold income,
partly offset by an increase in by-product revenue. Gold income increaseddecreased by $70$587 million, or two13 percent, from $4,015$4,490 million in 20152020 to $4,085$3,903 million in 2016.2021. This increasedecrease was mainly due to thea decrease in ounces of gold sold, partly offset by an increase in the average gold price received of $91$18 per ounce,ounce. Gold sold decreased by 354,000 ounces, or eight14 percent, from $1,158 per ounce during 20152.470 million ounces in 2020 to $1,249 per ounce2.116 million ounces in 2016. The increase in the price of gold resulted in an increase in gold income of $299 million. The increase was partially
received. Gold income from Australiasold decreased by $20 million,189,000 ounces, or three15 percent, from $6661.249 million ounces in 20152020 to $6461.060 million ounces in 2016. The decrease was due to the 56,000 ounces decrease in gold sold in 2016,2021, which resulted in a decrease in gold income of $67$317 million. The decrease was mainly due to lower production from Iduapriem, Obuasi and Geita, partly offset by higher production at Siguiri. For a discussion of the decrease in production was mainly as a result of lower planned grades mined at Tropicana.the Africa operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The decrease was partially offset by the increase in the average gold price received which resulted in an increase in gold income of $47$12 million. By-product revenue (excluding equity-accounted joint ventures) of $3 million in 2021 remained unchanged from $3 million in 2020.
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Revenue from product sales from the Australia operations decreased by $98 million, or ten percent, from $992 million in 2020 to $894 million in 2021, mainly as a result of a decrease in gold income, partly offset by an increase in by-product revenue. Gold income decreased by $99 million, or ten percent, from $989 million in 2020 to $890 million in 2021. This decrease was mainly due to lower ounces of gold sold, partly offset by an increase in the average gold price received. Gold sold decreased by 62,000 ounces, or 11 percent, from 557,000 million ounces in 2020 to 495,000 ounces in 2021, which resulted in a decrease in gold income of $108 million. For a discussion of the decrease in production at the Australia operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The increase in the average gold price received resulted in an increase in gold income of $75$9 million. By-product revenue increased by $1 million, or 33 percent, from $3 million in 2020 to $4 million in 2021, mainly due to an increase in revenue from silver.
Cost of sales
Cost of sales increased by $28 million, or one percent, from $2,829 million in 2020 to $2,857 million in 2021. The increase was partiallyprimarily due to an increase in cash operating costs by $148 million, or seven percent, from $2,012 million in 2020 to $2,160 million in 2021, an increase in environmental rehabilitation and other non-cash costs by $6 million, or 19 percent, from $32 million in 2020 to $38 million in 2021, and an increase in amortisation of right of use assets by $16 million, or 34 percent, from $47 million in 2020 to $63 million in 2021. The increase was partly offset by a decrease in royalties paid by $19 million, or ten percent, from $181 million in 2020 to $162 million in 2021, a decrease in amortisation of tangible assets of $115 million, or 22 percent, from $526 million in 2020 to $411 million in 2021 and an inventory change of $8 million, or 57 percent, from a charge of $14 million in 2020 to a charge of $6 million in 2021. The increase in cash operating costs was mainly due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services, other charges, fuel and power costs. Higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills at certain operations. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. Higher fuel and power costs were mainly due to the increase in the average price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29, or a 69 percent, per barrel increase. The increase in environmental rehabilitation and other non-cash costs primarily arose from the changes to restoration provision cash flows in 2021 compared to 2020. The change in restoration provision cash flows was attributable to changes in discount rates due to changes in global economic assumptions, changes in mine plans resulting in a change in cash flows, changes in design of our TSFs in Brazil due to new legal requirements, and changes in the methodology used to calculate such estimates in response to comments from environmental regulatory authorities. The increase in amortisation of right of use assets was mainly due to an increase in number of right of use assets in 2021 as compared to 2020 largely due to a change in business strategy whereby certain heavy mobile equipment is leased. The decrease in royalties paid primarily arose from a decrease in ounces of gold sold in 2021 as compared to 2020. The decrease in amortisation of 21,000 ounces, primarily at AGA Mineração, as a result of lower gradestangible assets was mainly due to operationallower amortisation of waste stripping and geotechnical issues which accounted for $6 million of the decreaselower gold production in gold income.2021 as compared to 2020.
In South Africa cost of sales decreased from $1,083 million in 2015 to $1,041 million in 2016, which represents a $42 million or four percent decrease. The decrease was mainly due to the weakening of the rand, which was partially offset by an increase in production costs in the local currency.
In the AmericasAustralia, cost of sales increased from $719 million in 2015 to $752 million in 2016, which represents a $33by $35 million, or five percent, increase.from $705 million in 2020 to $740 million in 2021. The increase was mainly due to increases in services costs and amortisation of tangible assets which were partially offset by an increase in by-product revenue from silver which waslabour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel costs, ore stockpile adjustments and the strengthening of the Australian dollar against the US dollar by eight percent. The higher labour and contractors’ costs were
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mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher volumescost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil. The increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs, lower amortisation of waste stripping due to lower levels of stripping in 2021 as compared to 2020 and lower royalties paid due to a decrease in ounces of gold sold in 2021 as well as a higher average silver price received in 2016.compared to 2020.
Total cash costs
Total cash costs decreasedincreased by $128 million, or six percent, from $2,493$2,206 million in 20152020 to $2,435$2,334 million in 2016,2021. The increase was primarily due to an increase in cash operating costs, partly offset by a decrease in royalties paid. Total cash costs include cash operating costs (which include salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs), royalties and other cash costs. The strengthening of the Australian dollar against the US dollar contributed to the increase in total cash costs, which represents a $58was partly offset by the weakening of local currencies against the US dollar in Brazil and Argentina.
Cash operating costs increased by $148 million, or twoseven percent, decrease.from $2,012 million in 2020 to $2,160 million in 2021, primarily due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services and other charges as well as higher fuel and power costs. The strengthening of the Australian dollar against the US dollar contributed to the increase in total cash costs, which was partly offset by the weakening of local currencies against the US dollar in Brazil and Argentina. Cash operating costs includes salaries and wages, stores, explosives, reagents, logistics, fuel, power, water and contractors’ costs.
Royalties, which are generally calculated as a percentage of revenue, decreased by $19 million, or ten percent, from $181 million in 2020 to $162 million in 2021. The decrease was primarily due to a decrease in salariesgold sales across all mining operations with the exception of Siguiri and wages costs, fuel and power costs, contractor costs and service related costs.Kibali. The decrease was partiallypartly offset by an increase in stores and other consumables costs, retrenchment costs and rehabilitation costs.
Retrenchment costs
Retrenchment costs included in cost of sales increased from $11remained unchanged at $2 million in 20152021 as compared to $142020.
Rehabilitation and other non-cash costs
Environmental rehabilitation and other non-cash costs increased by $6 million, or a 19 percent, from $32 million in 2016, which represents a $3 million, or 27 percent, increase. Retrenchment costs recorded for the year ended 31 December 2016 resulted from the rationalisation of operations in the South African region partially offset by a decrease in the South American region.
Amortisation of $7 milliontangible, intangible and government fiscal claimsright of use assets
Amortisation of tangible, intangible and tailing operationsright of $7 million. Corporate expensesuse assets expense decreased by $17$98 million, or 17 percent, from $575 million in 20162020 to $477 million in 2021.
Amortisation of tangible assets decreased by $115 million, or 22 percent, from $526 million in 2020 to $411 million in 2021. The decrease was mainly due to lower amortisation at Geita due to lower production and the closure of the Nyankanga Cut 8 open pit in 2021, the reset of useful life in February 2021 for the heavy moving equipment fleet resulting in lower amortisation compared to 20152020, and the reset of the useful life in February 2021 for Mineral Reserve development amortisation drivers and lower Mineral Reserve development capital expenditures in 2021 compared to 2020. At Iduapriem, amortisation was lower than in 2020 mainly due to lower production and lower deferred stripping amortisation in 2021 at Teberebie Cut 1 and Cut 3, at AGA Mineração, amortisation was lower mainly due to lower production, and at Tropicana, amortisation was lower mainly due to lower production and lower deferred stripping amortisation, partly offset by higher Mineral Reserve development amortisation. This decrease was partly offset by higher amortisation at Obuasi as a resultthe redevelopment project progressed.
Amortisation of ongoing cost-cutting measures implemented in the company. Exchange lossesintangible assets increased by $71$1 million, or 50 percent, from $2 million in 2020 to $3 million in 2021, mainly due to higher software and licence expenditure at Obuasi as compared to 2020.
Amortisation of right of use assets increased by $16 million, or 34 percent, from $47 million in 2020 to $63 million in 2021 largely at AGA Mineração, Serra Grande and Geita mainly due to a change in business strategy whereby certain heavy mobile equipment is leased at these operations.
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Inventory change
Inventory change decreased from a charge of $14 million in 2020 to a charge of $6 million in 2021, which represents a $8 million, or 57 percent, decrease. This decrease was primarily due to lower cost and amortisation at Cerro Vanguardia of $23 million due to fewer ounces produced and sold than in 2020 and lower cost at Geita of $11 million with fewer ounces produced and sold, partly offset by an inventory valuation upward adjustment at Obuasi of $14 million as a result of changes in currencies in which the company transacts.timing of shipment.
Other (expenses) income
Other (expenses) income increased by $79 million, or 139 percent, from an expense of repurchase$57 million in 2020 to an expense of $136 million in 2021. The increase in expenses during 2021 was largely due to care and maintenance activities at the Obuasi mine, retrenchment and related costs, premium and cost on settlement of bonds of $31 million and a decreaserefund from an insurance claim in impairments of $17 million2020 which was not repeated in 2015, offset by2021. Underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021 at the Obuasi mine, following a decrease in indirect tax recoveriessill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production. Since the voluntary suspension of underground mining activities, care and maintenance costs of $45 million were incurred at Obuasi during 2021. Retrenchment and related costs of $18 million not repeatedwere incurred during 2021 as part of the transition to the new Operating Model. Bond settlement costs during 2021 related to costs associated with the tender offer for, and subsequent redemption of, the $750 million aggregate principal amount of 5.125% notes due 2022 and amounted to $24 million. These increases in 2015.expenses were partly offset by the lower cost of legacy tailings operations, mainly at Obuasi, due to fewer activities at such legacy tailings operations, lower VAT and other duties expensed.
Finance costs and unwinding of obligations
Finance costs decreased by $65$28 million, or 2920 percent, to $158from $138 million in 2016, compared2020 to $223$110 million in 2015. The decrease was2021, mainly due to an increase in capitalisation of interest against the Obuasi redevelopment project, lower finance costs from borrowings and amortisation fees as 2020 included finance costs related to a $1.0 billion standby credit facility not repeated in 2021. Unwinding of obligations decreased by $33 million, or 85 percent, from $39 million in 2020 to $6 million in 2021, mainly due to a reductiondecrease in unwinding of $65 million of interest attributable to the redeemed $1.25 billion 8.5 percent bond issued in July 2013. Unwinding of obligations expense of $22 million was recorded in 2016 compared with $22 million in 2015.other indirect taxes at Geita.
Share of associates and joint ventures'ventures’ profit
Share of associates and joint ventures'ventures’ profit decreased to $11by $29 million, or ten percent, from a profit of $278 million in 2016 compared2020 to $88a profit of $249 million in 2015,2021 mainly as a result of the decrease in operating profits due to an increase in operating costs and a decrease in revenue due to lower production partiallyequity earnings of $7 million at Kibali and $5 million at Rand Refinery (Pty) Limited, as well as a profit of $19 million on the sale of the Morila and Sadiola mines in Mali during 2020 not repeated in 2021, partly offset by an increase in the gold price received. Net impairments reversals decreased to $6losses of $2 million in 2016 from $24 million in 2015.at Gramalote during 2020 not repeated during 2021.
Taxation
A taxation expense of $189$312 million was recorded in 2016,2021, compared to ana taxation expense of $211$625 million in 2015.2020, which represents a $313 million, or 50 percent, decrease. Charges for current tax in 20162021 amounted to $234$248 million, compared to $192$562 million in 2015.2020, which represents a $314 million, or 56 percent, decrease. The increasedecrease in current tax iswas mainly due to higher current taxlower pre-tax profit in Ghana, Australia, Brazil, Argentina Ghana and Guinea based on higher earnings.Tanzania. Charges for deferred tax in 20162021 amounted to a net deferred tax benefit of $45 million compared to a net deferred tax expense of $19$64 million, compared to $63 million in 2015.2020, which represents a $1 million, or two percent, increase.
Discontinued operations
A profit from discontinued operations of $7 million was recorded in 2020, which was not repeated in 2021. The decreaseprofit of $7 million consists of an operating loss after tax of $9 million and an impairment reversal of $16 million. As a result of the sale of the Company’s remaining South African producing assets and related liabilities in deferred taxation is largely due to foreign exchange effects onSeptember 2020, the translationSouth African operations were accounted for as discontinued operations for the year ended and as at 31 December 2020.
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Comparison of non-monetary itemscapital expenditure in Brazil2022, 2021 and Argentina and adjustments on taxable items in North America and Australia, partly offset by an increase in deferred tax in South Africa.2020
The following table presents capital expenditure data from continuing operations for the AngloGold Ashanti groupGroup for the three-year period ended 31 December 2017:2022:
| Capital expenditure data for AngloGold Ashanti | Year ended 31 December | |||||||||||||||||||
| (in $ millions) | 2022 | 2021 | 2020 | |||||||||||||||||
| Restated | ||||||||||||||||||||
| Capital expenditure | 1,118 | 1,100 | 795 | |||||||||||||||||
| - Consolidated entities | 1,028 | 1,028 | 739 | |||||||||||||||||
| - Equity-accounted joint ventures | 90 | 72 | 56 | |||||||||||||||||
| Capital expenditure data for AngloGold Ashanti | Year ended December 31 | ||||||||
| 2017 | 2016 | 2015 | |||||||
| Capital expenditure (million US dollars) | 953 | 811 | 857 | ||||||
| - Consolidated entities | 830 | 711 | 726 | ||||||
| - Equity accounted joint ventures | 123 | 100 | 131 | ||||||
Total capital expenditure was $953(including equity-accounted joint ventures) increased by $18 million, or two percent, from $1,100 million in 2017 compared2021 to $811$1,118 million in 2016. This represents a $142 million, or 18 percent, increase from 2016.2022. This increase iswas mainly due to increased expenditure on sustaining capital ($1 million) and non-sustaining project capital ($17 million). AngloGold Ashanti embarked on a multi-year initiative at the beginning of 2020 to increase investment in Mineral Reserve development and brownfields exploration. The aim of this investment is to increase the rate of Mineral Reserve conversion, extend the reserve lives of our assets, enhance mining flexibility and further improve our knowledge of the ore bodies in the portfolio.
In Africa (including equity-accounted joint ventures), capital expenditure on existing operations ($134 million) and on growth related projects ($8 million). Capitalincreased by $70 million, or 14 percent, from $506 million in 2021 to $576 million in 2022. At Iduapriem in Ghana, capital expenditure increased at Iduapriem by $43$41 million from $105 million in 2021 to $146 million in 2022, mainly due to waste stripping at Cut 2 and increased non-sustaining project capital expenditure for work relating to buttressing the TSF, partly offset by lower pre-stripping activities. At Obuasi in Ghana, capital expenditure decreased by $9 million from $168 million in 2021 to $159 million in 2022, mainly due to lower non-sustaining project capital expenditure as construction of Phase 2 of the Obuasi redevelopment project was completed at the end of December 2021. Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress. At Siguiri in Guinea, capital expenditure decreased by $11 million from $38 million in 2021 to $27 million in 2022, mainly due to lower non-sustaining project capital expenditure at Block 2 during 2022 and lower stay-in-business capital expenditure due to expenditure relating to the plant recovery improvement project. Capitalconstruction of a haul road by Block 2 during 2021 not being repeated in 2022. At Geita in Tanzania, capital expenditure increased at Geita by $38$31 million from $123 million in 2021 to $154 million in 2022, mainly due to establishment of underground and ore reserve development partiallyan increase in sustaining capital expenditure, partly offset by stripping due to pit depletion. Capitallower non-sustaining capital expenditure. Sustaining capital expenditure increased at Sunrise Dam, in Australia, by $30 million due to continued underground ore reserve development. Capital expenditure increased at Siguiri by $23 million due to the combination plant, infill drilling and overland land conveyor belt replacement. Capital expenditure increased at Kibali, in the DRC, by $18 million due to plant upgrade with four ultra-fine grind mills and Hydro power plant and increased stripping. Capital expenditure increased at Tropicana, in Australia, by $15 millionmainly due to an increase in deferred waste stripping. Capitalstripping, higher stay-in-business capital expenditure and Mineral Reserve development expenditure as the underground portal development at Geita Hill East progressed according to plan. Lower non-sustaining project capital expenditure was mainly due to the Nyamulilima open pit being commissioned during 2022. At Kibali in the DRC, capital expenditure increased by $14$18 million from $72 million in 2021 to $90 million in 2022, mainly due to increased sustaining capital expenditure on the cyanide recovery plant and increased non-sustaining exploration.
In the Americas, capital expenditure decreased by $24 million, or seven percent, from $346 million in 2021 to $322 million in 2022. In Brazil, AngloGold Ashanti completed the conversion of existing TSFs to dry-stacking facilities at Córrego do Sítíoall mine sites, in a market characterised by increased competition for skills and engineering resources due to the raisingCOVID-19 pandemic and the industry-wide requirements to meet regulatory deadlines relating to TSFs. Capital expenditures required in 2022 to implement this new technology amounted to approximately $83 million. At AGA Mineração in Brazil, capital expenditure increased by $4 million from $195 million in 2021 to $199 million in 2022, mainly due to higher sustaining capital expenditure for mine development costs and continuing expenditure on TSFs to meet regulatory requirements. At Serra Grande in Brazil, capital expenditure decreased by $25 million from $82 million in 2021 to $57 million in 2022, mainly due to lower mine development expenditure offset by higher TSF expenditure. At Cerro Vanguardia in Argentina, capital expenditure decreased by $3 million from $69 million in 2021 to $66 million in 2022, mainly due to lower expenditure on TSF embankment raise and lower deferred stripping capital compared to 2021.
In Australia, capital expenditure increased by $17 million, or eight percent, from $185 million in 2021 to $202 million in 2022. At Sunrise Dam in Australia, capital expenditure decreased by $12 million from $62 million in 2021 to $50 million in 2022, mainly due to non-sustaining project capital expenditure incurred on the Golden Delicious open pit growth project having been commissioned in 2021 and not repeated in 2022. At Tropicana in Australia, capital expenditure increased by $30 million from $122 million in 2021 to $152 million in 2022, mainly due to increased non-sustaining project capital expenditure for increased waste mining in the Havana Cutback Project during 2022. At Australia other, capital expenditure decreased by $1 million from $1 million in 2021 to nil in 2022, mainly due to lower exploration equipment expenditure.
In Projects, capital expenditure decreased by $35 million, or 67 percent, from $52 million in 2021 to $17 million in 2022. At Quebradona in Colombia, capital expenditure decreased by $28 million from $33 million in 2021 to $5 million in 2022, mainly due to the higher capitalisation of land and feasibility study costs for the growth project in 2021. At Gramalote in Colombia, capital expenditure decreased by $9 million from $19 million in 2021 to $10 million in 2022, mainly due to the purchase of the
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La Cascada property in 2021 and higher feasibility study costs of the tailings dam, an increasegrowth project in stay in business spending and exploration. The strengthening of local currencies against the US dollar also resulted in an increase of capital expenditure. The increase in2021. During 2022, there was no capital expenditure was partially offsetat La Colosa in Colombia. In Nevada, USA, capital expenditure increased by a decrease of $32$1 million from nil in 2021 to $1 million in South Africa2022, mainly due to pre-feasibility studies, and purchase of light motor vehicles and land.
At the Corporate Office in Johannesburg, capital expenditure decreased by $10 million from $11 million in 2021 to $1 million in 2022, mainly due to expenditure on Kopanang, Tau Tona, West gold plant, ATICnew furniture and directly associated services projects, expensed from July 2017computer equipment in connection with the relocation of the Corporate Office to a new building having been incurred in 2021 and not being repeated in 2022.
Comparison of capital rationing and postponement of Mponeng Mine Life Extension.expenditure in 2021 with 2020
Total capital expenditure was $811(including equity-accounted joint ventures) increased by $304 million, or 38 percent, from $796 million in 2016 compared2020 to $799$1,100 million (excluding discontinued operations) in 2015.2021. This represents a $12 million, or two percent, increase from 2015. The increase in capital expenditure during 2016 iswas mainly due to increased expenditure on sustaining capital ($281 million) and non-sustaining project capital ($23 million). AngloGold Ashanti embarked on a multi-year initiative at the beginning of 2020 to increase investment in Mineral Reserve development and brownfields exploration. The aim of this investment is to increase the rate of Mineral Reserve conversion, extend the reserve lives of our assets, enhance mining flexibility and further improve our knowledge of the ore bodies in the portfolio.
In Africa (including equity-accounted joint ventures), capital expenditure on existing operations ($65 million) partially offsetincreased by reduced expenditure on growth related projects ($53 million). Capital$71 million, or 16 percent, from $435 million in 2020 to $506 million in 2021. At Iduapriem in Ghana, capital expenditure increased by $45 million from $60 million in 2020 to $105 million in 2021, mainly due to higher pre-stripping activities and stay-in-business capital expenditure. At Obuasi in Ghana, capital expenditure increased by $38 million from $130 million in 2020 to $168 million in 2021, mainly due to a change in scoping activities, the commissioning and ramping up of underground activities and the start of Phase 3 of the Obuasi redevelopment project. Phase 2 construction was completed at Tropicana,the end of December 2021. At Siguiri in Australia,Guinea, capital expenditure increased by $28$8 million from $30 million in 2020 to $38 million in 2021, mainly due to increased stay-in-business capital expenditure incurred to construct a haul road by Block 2. At Geita in Tanzania, capital expenditure increased by $36 million from $87 million in 2020 to $123 million in 2021, mainly due to an increase in non-sustaining project capital expenditure with the start of the Nyamulilima project, an increase in non-sustaining exploration costs, partly offset by lower stay-in-business capital expenditure mainly related to Mineral Reserve development expenditure. At Kibali in the DRC, capital expenditure increased by $20 million from $52 million in 2020 to $72 million in 2021, mainly due to higher deferred waste stripping of $18and non-sustaining project capital expenditure.
In the Americas, capital expenditure increased by $178 million, or 106 percent, from $168 million in 2020 to $346 million in 2021. In Brazil, AngloGold Ashanti continued its investment to convert existing TSFs to dry-stacking facilities at all mine sites, in a market characterised by increased competition for skills and more spendengineering resources due to the COVID-19 pandemic and the industry-wide requirements to meet regulatory deadlines relating to TSFs. Capital expenditures required in 2021 to implement this new technology amounted to approximately $140 million. At AGA Mineração in Brazil, capital expenditure increased by $92 million from $103 million in 2020 to $195 million in 2021, mainly due to higher mine development costs and higher expenditure on sustainingTSFs. At Serra Grande in Brazil, capital of $10 million. Capitalexpenditure increased by $49 million from $33 million in 2020 to $82 million in 2021, mainly due to higher mine development and TSF expenditures. At Cerro Vanguardia in Argentina, capital expenditure increased by $38 million from $31 million in 2020 to $69 million in 2021, mainly due to higher expenditure on TSF embankment raise and higher deferred stripping capital.
In Australia, capital expenditure increased by $42 million, or 29 percent, from $143 million in 2020 to $185 million in 2021. At Sunrise Dam in Australia, capital expenditure increased by $9 million from $53 million in 2020 to $62 million in 2021, mainly due to non-sustaining project capital expenditure incurred on the Golden Delicious open pit growth project. At Tropicana in Australia, capital expenditure increased by $33 million at Córrego do Sítíofrom $89 million in 2020 to $122 million in 2021, mainly due to higher deferred stripping, Mineral Reserve and other stay-in-business capital expenditure, as well as increased non-sustaining project capital expenditure with the approval of the Havana Cutback Project in 2021. At Australia other, capital expenditure increased by $1 million from nil in 2020 to $1 million in 2021, mainly due to exploration equipment expenditure.
In Projects, capital expenditure increased by $3 million, or six percent, from $49 million in 2020 to $52 million in 2021. At Quebradona in Colombia, capital expenditure decreased by $7 million from $40 million in 2020 to $33 million in 2021, mainly due to the raisinghigher capitalisation of land for the tailings dam, an increasegrowth project in stay2020. At Gramalote in business spending, an increase in primary development and exploration cost partially offset by the weakening of the local currency against the US dollar. CapitalColombia, capital expenditure increased by $10 million at Serra Grandefrom $9 million in 2020 to $19 million in 2021, mainly due to increased ore reserve development and the conversionhigher feasibility study costs of the leaching process, partially offsetgrowth project. During 2021, there was no capital expenditure at La Colosa in Colombia or in Nevada, USA.
Comparison of financialoperating performance on a segment basis for 2017, 20162022, 2021 and 20152020
The companyCompany produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments. Therefore, information regarding separate geographic segments is provided.
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Gold income
| (in millions) | Year ended 31 December | ||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
| $ | percent | $ | percent | $ | percent | ||||||||||||||||||||||||||||||
| Restated | |||||||||||||||||||||||||||||||||||
| Geographical analysis of gold income by origin is as follows: | |||||||||||||||||||||||||||||||||||
| Africa | 2,981 | 68 | 2,644 | 68 | 2,937 | 60 | |||||||||||||||||||||||||||||
| Australia | 967 | 22 | 890 | 23 | 989 | 20 | |||||||||||||||||||||||||||||
| Americas | 1,036 | 24 | 1,028 | 26 | 1,211 | 25 | |||||||||||||||||||||||||||||
| 4,984 | 4,562 | 5,137 | |||||||||||||||||||||||||||||||||
| Less : Associates and equity-accounted joint ventures included above | (596) | (14) | (659) | (17) | (647) | (13) | |||||||||||||||||||||||||||||
| Continuing operations | 4,388 | 3,903 | 4,490 | ||||||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | — | 408 | 8 | |||||||||||||||||||||||||||||
| 4,388 | 100 | 3,903 | 100 | 4,898 | 100 | ||||||||||||||||||||||||||||||
| (in millions) | Year ended 31 December | ||||||||||||||||
| 2017 | 2016 | 2015 | |||||||||||||||
| $ | percent | $ | percent | $ | percent | ||||||||||||
| Geographical analysis of gold income by origin is as follows: | |||||||||||||||||
| South Africa | 1,101 | 25 | 1,173 | 29 | 1,132 | 27 | |||||||||||
| Continental Africa | 1,895 | 44 | 1,663 | 41 | 1,724 | 42 | |||||||||||
| Australasia | 709 | 16 | 646 | 16 | 666 | 16 | |||||||||||
| Americas | 1,104 | 25 | 1,036 | 25 | 967 | 23 | |||||||||||
| 4,809 | 4,518 | 4,489 | |||||||||||||||
| Less : Associates and equity accounted joint ventures included above | (453 | ) | (10 | ) | (433 | ) | (11 | ) | (474 | ) | (11 | ) | |||||
| Continuing operations | 4,356 | 4,085 | 4,015 | ||||||||||||||
| Discontinued operations | — | — | — | — | 137 | 3 | |||||||||||
| 4,356 | 100 | 4,085 | 100 | 4,152 | 100 | ||||||||||||
| (in millions) | Year ended 31 December | ||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
| $ | percent | $ | percent | $ | percent | ||||||||||||||||||||||||||||||
| Restated | Restated | ||||||||||||||||||||||||||||||||||
| Geographical analysis of assets by origin is as follows: | |||||||||||||||||||||||||||||||||||
| Africa | 4,083 | 51 | 4,226 | 53 | 3,989 | 52 | |||||||||||||||||||||||||||||
| Australia | 960 | 12 | 1,034 | 13 | 1,044 | 13 | |||||||||||||||||||||||||||||
| Americas | 1,406 | 17 | 1,573 | 20 | 1,370 | 18 | |||||||||||||||||||||||||||||
Projects (1) | 872 | 11 | 313 | 4 | 256 | 3 | |||||||||||||||||||||||||||||
| Other, including non-gold producing subsidiaries | 751 | 9 | 854 | 10 | 1,046 | 14 | |||||||||||||||||||||||||||||
| Total assets | 8,072 | 100 | 8,000 | 100 | 7,705 | 100 | |||||||||||||||||||||||||||||
| (in millions) | Year ended 31 December | |||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||
| $ | percent | $ | percent | $ | percent | |||||||||
| Geographical analysis of assets by origin is as follows: | ||||||||||||||
| South Africa | 1,734 | 24 | 1,818 | 26 | 1,629 | 22 | ||||||||
| Continental Africa | 3,153 | 44 | 3,090 | 43 | 3,121 | 43 | ||||||||
| Australasia | 929 | 13 | 804 | 11 | 837 | 12 | ||||||||
| Americas | 1,258 | 17 | 1,273 | 18 | 1,341 | 18 | ||||||||
| Other, including non-gold producing subsidiaries | 145 | 2 | 168 | 2 | 356 | 5 | ||||||||
| Total assets | 7,219 | 100 | 7,153 | 100 | 7,284 | 100 | ||||||||
At 31 December 2017, 24 percent2022, 31 December 2021 and 31 December 2020, none of AngloGold Ashanti’s totalproducing assets were located in South Africa, compared with 26ten percent at 31 December 2019, as a result of the endsale of 2016.the Company’s remaining South African producing assets and related liabilities to Harmony in September 2020. The remaining operations collectively accounted for approximately 76100 percent of AngloGold Ashanti’s total assets at 31 December 20172022 compared to 7490 percent at the end of the same period in 2016.2019.
Non-GAAP analysis
During June 2013,2018, the World Gold Council (WGC)(“WGC”), an industry body, published aan updated Guidance Note on “all-in sustaining costs” and “all-in costs” metrics, which gold mining companies can use to supplement their overall non-GAAP disclosure. The WGC worked closely with its members (including AngloGold Ashanti) to develop these non-GAAP measures which are intended to provide further transparency into the full cost associated with producing gold. It is expected that these metrics, in particular, the “all-in sustaining cost” and “all-in cost” metrics which AngloGold Ashanti provides in this annual report on Form 20-F, will be helpful to investors, governments, local communities and other stakeholders in understanding the economics of gold mining. “All-in sustaining costs” is a non-GAAP measure which is an extension of the existing “total cash cost”costs net of by-product revenue” metric and incorporates all costs related to sustaining production and in particular, recognises the sustaining capital expenditures associated with developing and maintaining gold mines. In addition, this metric includes the cost associated with Corporate Office structures that support these operations, the community and environmental rehabilitation costs attendant with responsible mining and any exploration and evaluation cost associated with sustaining current operations. “All-in sustaining costs per ounce” is arrived at by dividing the dollar value of the sum of thesethis cost metrics,metric by the ounces of gold sold. “All-in cost” includes
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costs” is a non-GAAP measure comprising “all-in sustaining costs” including additional costs which reflect the varying costs of producing gold over the life-cycle of a mine including costs incurred at new operations and costs related to majorgrowth projects at existing operations, which are expected to increase production. “All-in costcosts per ounce” is arrived at by dividing the dollar value of the sum of thesethis cost metrics,metric by the ounces of gold sold.
Total cash costs arenet of by-product revenue
“Total cash costs net of by-product revenue” is calculated in accordance with the guidelines of the Gold Institute industry standard and industry practice and areis a non-GAAP measures.measure. The Gold Institute, which has been incorporated into the National Mining Association, is a non-profit international association of miners, refiners, bullion suppliers and manufacturers of gold products, which developed a uniform format for reporting total cash costs on a per ounce basis. The guidance was first adopted in 1996 and revised in November 1999.
“Total cash costs net of by-product revenue” as calculated and reported by AngloGold Ashanti include costs for all mining, processing, onsite administration costs, royalties and production taxes, as well as contributions from by-products, but exclusive ofexclude amortisation of tangible, intangible and intangibleright of use assets, rehabilitation costs and other non-cash costs, retrenchment costs, corporate administration, marketing and otherrelated costs, capital costs and exploration costs. Total“Total cash costs per ounce areounce” is calculated by dividing attributable total cash costs net of by-product revenue by attributable ounces of gold produced.
Average gold price received per ounce
“Average gold price received per ounce” is a non-GAAP measure which gives an indication of revenue earned per unit of gold sold and includes gold income and realised non-hedge derivatives in its calculation and serves as a benchmark of performance against the market spot gold price. This metric is calculated by dividing attributable gold income (price received) by attributable ounces of gold sold.
“All-in sustaining costs, all-incosts”, “all-in sustaining costs per ounce, all-in costs, all-inounce”, “all-in costs”, “all-in costs per ounce, totalounce”, “total cash costs and totalnet of by-product revenue”, “total cash costs per ounceounce” and “average gold price received per ounce” should not be considered by investors in isolation or as alternatives to cost of sales, profit/(loss) applicable to equity shareholders, profit/(loss) before taxation, cash flows from operating activities or any other measure of financial performance presented in accordance with IFRS or as an indicator of the company’sCompany’s performance. While the WGC has published guidance on how to define all-in“all-in sustaining costscosts” and all-in costs“all-in costs” and the Gold Institute has provided definitions for the calculation of total“total cash costs per ounce”, the calculation of these metrics may vary significantly among gold mining companies, and by themselves do not necessarily provide a basis for comparison with other gold mining companies.
However, AngloGold Ashanti believes that all-in“all-in sustaining costs, all-in costscosts”, “all-in costs” and total“total cash costs net of by-product revenue” in total by mine and per ounce by mine as well as “average gold price received per ounce”, are useful indicators to investors and management as they provide:
•an indication of profitability, efficiency and cash flows;
•the trend in costs as the mining operations mature over time on a consistent basis; and
•an internal benchmark of performance to allow for comparison against other mines, both within the AngloGold Ashanti groupGroup and at other gold mining companies.
Reconciliations
A reconciliation of both cost of sales and total cash costsgold income as included in the company’sCompany’s audited financial statements to all-in sustaining costs, all-in costs and total cash costs“average gold price received per ounce” for each of the three years in the period ended 31 December 20172022 is presented on a total basis in the table below.
| Average gold price received per ounce for AngloGold Ashanti | Year ended 31 December | ||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||
| Restated | |||||||||||||||||
| Gold income (million US dollars) | 4,388 | 3,903 | 4,490 | ||||||||||||||
| Adjusted for non-controlling interests (million US dollars) | (112) | (103) | (95) | ||||||||||||||
| 4,276 | 3,800 | 4,395 | |||||||||||||||
| Associates and joint ventures’ share of gold income including realised non-hedge derivatives (million US dollars) | 596 | 659 | 647 | ||||||||||||||
| Attributable gold income (million US dollars) | 4,872 | 4,459 | 5,042 | ||||||||||||||
| Attributable gold sold - oz (000) | 2,717 | 2,483 | 2,835 | ||||||||||||||
| Average gold price received per ounce ($/oz) | 1,793 | 1,796 | 1,778 | ||||||||||||||
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A reconciliation of cost of sales as included in the Company’s audited financial statements to “all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce”, “total cash costs net of by-product revenue” and “total cash costs per ounce” for each of the three years in the period ended 31 December 2022 is presented on a total and segment basis in the tables below starting on page 173. In addition, the companyCompany has provided below detail of the attributable ounces of gold produced and sold by mine for each of those periods.periods below.
The following table presents selected total operating data from continuing operations for the AngloGold Ashanti groupGroup for the three-year period ended 31 December 2017:2022:
| Operating data for AngloGold Ashanti | Year ended December 31 | |||||||
| 2017 | 2016 | 2015 | ||||||
Total cash costs (million US dollars) – per financial statements(1) | 2,709 | 2,435 | 2,493 | |||||
All-in sustaining costs ($/oz) - Subsidiaries(2) | 1,050 | 990 | 935 | |||||
All-in sustaining costs ($/oz) - Joint Ventures(2) | 1,087 | 955 | 704 | |||||
All-in costs ($/oz) - Subsidiaries(2) | 1,119 | 1,063 | 1,003 | |||||
All-in costs ($/oz) - Joint Ventures(2) | 1,186 | 1,141 | 989 | |||||
Total cash costs ($/oz) - Subsidiaries(2) | 789 | 737 | 719 | |||||
Total cash costs ($/oz) - Joint Ventures(2) | 819 | 812 | 655 | |||||
| Operating data for AngloGold Ashanti operations - Total | Year ended 31 December | ||||||||||||||||
| (continuing operations) | 2022 | 2021 | 2020 | ||||||||||||||
| Restated | |||||||||||||||||
| Cost of sales (million US dollars) - Subsidiaries | 3,362 | 2,857 | 2,829 | ||||||||||||||
| Cost of sales (million US dollars) - Joint Ventures | 342 | 350 | 340 | ||||||||||||||
All-in sustaining costs per ounce ($/oz) - Subsidiaries(1) | 1,439 | 1,441 | 1,082 | ||||||||||||||
All-in sustaining costs per ounce ($/oz) - Joint Ventures(1) | 979 | 856 | 810 | ||||||||||||||
All-in costs per ounce ($/oz) - Subsidiaries(1) | 1,658 | 1,695 | 1,259 | ||||||||||||||
All-in costs per ounce ($/oz) - Joint Ventures(1) | 1,075 | 900 | 824 | ||||||||||||||
Total cash costs per ounce ($/oz) - Subsidiaries(1) | 1,066 | 1,017 | 836 | ||||||||||||||
Total cash costs per ounce ($/oz) - Joint Ventures(1) | 725 | 647 | 629 | ||||||||||||||
(1)“All-in sustaining costs all-inper ounce”, “all-in costs per ounce” and total“total cash costs
per ounce” are non-GAAP measures. For a detailed reconciliation of all-in“all-in sustaining costs all-inper ounce”, “all-in costs per ounce” and total“total cash costs see “Operations” tables.per ounce” for the Company’s total operations for each of the three years in the period ended 31 December 2022, refer to the relevant “AngloGold Ashanti operations - Total” tables below.
Comparison of all-in sustainingoperating performance on a segment basis in 2022 with 2021
Cost of sales
In Africa - Subsidiaries, cost of sales increased by $362 million, or 28 percent, from $1,300 million in 2021 to $1,662 million in 2022. The increase was largely due to an increase in labour and contractors’ costs, commodity prices, consumable stores, services, other charges, fuel and power costs, royalties paid and amortisation of tangible assets. Higher fuel and power costs were mainly due to the increase in the average price of Brent Crude oil, which increased from $71 per barrel in 2021 to $97 per barrel in 2022, a $26, or a 37 percent, per barrel increase. COVID-19 continued to present challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices, but to a lesser extent than in 2021.
At Iduapriem in Ghana, cost of sales increased by $76 million, or 32 percent, from $238 million in 2021 to $314 million in 2022. Cost of sales at Iduapriem increased year-on-year mainly due to higher amortisation of tangible assets as a result of higher production and higher capital expenditure in 2022. This increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs in 20172022.
At Obuasi in Ghana, cost of sales increased by $102 million, or 62 percent, from $164 million in 2021 to $266 million in 2022. Cost of sales at Obuasi increased year-on-year mainly due to the resumption of stoping activities during 2022, following the temporary suspension of underground stoping activities in 2021 due to a sill pillar incident in May 2021. Amortisation of heavy mobile equipment increased mainly due to the reset of the useful life of the mining fleet and Mineral Reserve development amortisation increased as the assets were transferred from being under construction to Mineral Reserve development assets in 2022. Royalties paid were higher due to higher ounces of gold sold in 2022. Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continued to progress. This increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs, and favourable gold inventory movements due to the lower cost of unsold gold with 2016the timing of gold shipments.
At Siguiri in Guinea, cost of sales increased by $78 million, or 19 percent, from $410 million in 2021 to $488 million in 2022. Cost of sales at Siguiri increased year-on-year mainly due to higher fuel costs and an unfavourable movement in the exchange rate of the Guinean franc against the US dollar. This increase in cost of sales was partly offset by lower environmental rehabilitation and other non-cash costs.
At Geita in Tanzania, cost of sales increased by $106 million, or 22 percent, from $488 million in 2021 to $594 million in 2022. Cost of sales at Geita increased year-on-year mainly due to higher fuel costs, increased engineering costs from the acceleration of HME fleet rebuilds as the open pit mine expanded, as well as higher underground mining contractors’ costs and higher royalties paid. Mineral Reserve development amortisation increased mainly due to a variation in the expenditure pattern which did not occur in 2021. Amortisation of leases increased mainly due to contract modifications in 2022. Amortisation of
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tangible assets increased mainly due to a reset of the amortisation drivers early in 2022. This increase in cost of sales was partly offset by lower inventory costs.
In Africa - Joint Ventures, cost of sales decreased by $8 million, or two percent, from $350 million in 2021 to $342 million in 2022. The decrease was mainly due to lower amortisation of tangible assets, favourable movements in stockpiles and lower royalties paid due to a decrease in ounces sold, partly offset by higher fuel costs. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2022.
In the Americas, cost of sales increased by $91 million, or 11 percent, from $822 million in 2021 to $913 million in 2022. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel cost, and write down of inventory, and the strengthening of the Brazilian real against the US dollar. The higher labour and contractors’ costs were mainly due to challenges relating to shortages of critical skills. Higher commodity costs were mainly due to increases in the prices of steel, support and construction materials, explosives, timber and reagents. COVID-19 continued to present challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices, but to a lesser extent than in 2021. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil. The increase was partly offset by lower environmental rehabilitation and other non-cash costs in 2022 as compared with 2021 as well as the weakening of the Argentinean peso against the US dollar.
At AGA Mineração in Brazil, cost of sales increased by $42 million, or ten percent, from $435 million in 2021 to $477 million in 2022. Cost of sales at AGA Mineração increased year-on-year mainly due to higher commodity prices (oil, iron ore and construction materials) and higher costs of services, fuel, power and labour, write down of inventory, and a four percent strengthening of the Brazilian real against the US dollar.
At Serra Grande in Brazil, cost of sales increased by $39 million, or 32 percent, from $123 million in 2021 to $162 million in 2022. Cost of sales at Serra Grande increased year-on-year mainly due to higher commodity prices, higher cost of labour, consumables, fuel and power as well as activity changes primarily caused by various production challenges encountered during 2022. Cost of sales was further increased by a four percent strengthening of the Brazilian real against the US dollar.
At Cerro Vanguardia in Argentina, cost of sales increased by $12 million, or five percent, from $261 million in 2021 to $273 million in 2022. Cost of sales at Cerro Vanguardia increased year-on-year mainly due to higher salary increases, fuel costs, higher materials consumption (such as fuel, explosives, and spare parts) because of higher tonnes mined. This increase was partly offset by a 37 percent weakening of the Argentinean peso against the US dollar, and favourable inventory change movements.
In the Americas other segment, cost of sales decreased by $2 million, or 67 percent, from $3 million in 2021 to $1 million in 2022.
In Australia, cost of sales increased by $43 million, or six percent, from $740 million in 2021 to $783 million in 2022. The increase was mainly due to an increase in mining contractors’ costs, commodity prices, logistics costs, consumable stores, services and other charges, power and fuel costs, gold in process adjustments, deferred stripping amortisation and amortisation of mining assets. This increase was partly offset by an eight percent weakening of the Australian dollar against the US dollar. The higher mining contractors’ costs were mainly due to cost increases resulting from challenges with shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, explosives, timber and reagents. COVID-19 continued to present challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices, but to a lesser extent than in 2021. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil. The increase in deferred stripping amortisation was mainly due to the mining and depletion of different ore bodies. The increase in the amortisation of mining assets was mainly due to higher production in 2022 compared with 2021. These increases were partly offset by a decrease in environmental rehabilitation and other non-cash costs in 2022.
At Sunrise Dam in Australia, cost of sales increased by $7 million, or two percent, from $364 million in 2021 to $371 million in 2022. Cost of sales at Sunrise Dam increased year-on-year primarily due to higher mining contractors’ costs (mainly higher cost of labour due to critical skill shortages), and higher fuel and mining costs. This increase was partly offset by a lower cost of gold inventory changes due to timing of gold pours and shipments.
At Tropicana in Australia, cost of sales increased by $36 million, or ten percent, from $346 million in 2021 to $382 million in 2022. Cost of sales at Tropicana increased year-on-year mainly due to higher mining contractors’ costs (mainly higher cost of labour due to critical skill shortages), consumable stores, service costs, fuel and power costs, gold inventory changes, royalties paid and higher Mineral Reserve development and deferred stripping amortisation. This increase was partly offset by lower environmental rehabilitation and other non-cash costs and ore stockpile movements.
Overall, the subsidiaries’ cost of sales increased by $505 million, or 18 percent, from $2,857 million in 2021 to $3,362 million in 2022. The increase was primarily due to an increase in cash operating costs by $394 million, or 18 percent, from $2,160 million in 2021 to $2,554 million in 2022, an increase in royalties paid by $23 million, or 14 percent, from $162 million in 2021
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to $185 million in 2022, an increase in amortisation of tangible assets of $140 million, or 34 percent, from $411 million in 2021 to $551 million in 2022, an increase in amortisation of right of use assets of $18 million, or 29 percent, from $63 million in 2021 to $81 million in 2022. This increase was partly offset by an inventory change of $36 million, from a charge of $6 million in 2021 to a credit of $30 million in 2022, and a decrease in environmental rehabilitation and other non-cash costs of $38 million, or 100 percent, from $38 million in 2021 to nil in 2022. The increase in cash operating costs was primarily due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, services and other charges as well as fuel and power costs in 2022 compared to 2021. The increase in royalties paid was mainly due to higher ounces sold in 2022 compared to 2021. The increase in amortisation of tangible assets was mainly due to the Obuasi redevelopment project continuing to ramp up to full production, higher deferred stripping amortisation at Tropicana and Iduapriem, and higher Mineral Reserve development amortisation at Tropicana and Geita in 2022 compared to 2021. The increase in amortisation of right of use assets was mainly due to a change in business strategy whereby certain heavy mobile equipment is leased, mainly at the Brazil operations. The decrease in inventory change was mainly due to lower amortisation of inventories resulting from the suspension of tailings disposal and processing plant effluents treatment. The decrease in environmental rehabilitation and other non-cash costs was mainly due to changes to restoration provision cash flows, lower costs and discount rates in 2022 compared to 2021.
All-in sustaining costs per ounce (excluding stockpile impairments) in South
In Africa - Subsidiaries, all-in sustaining costs increased in 2017 by $164$27 per ounce, or 15two percent, to $1,245 per ounce from $1,081$1,264 per ounce in 2016. The2021 to $1,291 per ounce in 2022. This increase was as a result of the strengthening of the rand,mainly due to an increase in cost of sales and an increase in sustaining capital expenditure, partly offset by an increase in ounces of gold sold. For a discussion of the 61,000-ounceincrease in cost of sales in Africa - Subsidiaries during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—Cost of sales”. Sustaining capital expenditure in Africa - Subsidiaries increased as the region continued to implement its reinvestment programme. At Iduapriem in Ghana, sustaining capital expenditure decreased year-on-year mainly due to lower pre-stripping expenditure in Cut 2. At Obuasi in Ghana, sustaining capital expenditure increased year-on-year mainly due to the ongoing progress of Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas. At Siguiri in Guinea, sustaining capital expenditure increased year-on-year mainly due to increased stay-in-business capital expenditure in 2022. At Geita, sustaining capital expenditure increased year-on-year mainly due to higher deferred stripping activities, stay-in-business capital expenditure and Mineral Reserve development capital expenditure. Gold sold in Africa - Subsidiaries increased by 221,000 ounces, or 21 percent, from 1.060 million ounces in 2021 to 1.281 million ounces in 2022. The increase was largely due to higher production across all operations in Africa other than Kibali. For a discussion of the increase in production at the Africa operations (other than Kibali) during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
In Africa - Joint Ventures, all-in sustaining costs increased by $123 per ounce, or 14 percent, from $856 per ounce in 2021 to $979 per ounce in 2022. This increase was mainly due to an increase in sustaining capital expenditure and lower ounces of gold sold, partly offset by lower cost of sales. For a discussion of the decrease in cost of sales in Africa - Joint Ventures during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—Cost of sales”. Sustaining capital expenditure in Africa - Joint Ventures increased mainly due to higher stay-in-business capital expenditure. Gold sold in Africa - Joint Ventures decreased by 35,000 ounces, or ten percent, from 367,000 ounces in 2021 to 332,000 ounces in 2022. The decrease was mainly due to lower production from Kibali. For a discussion of the decrease in production at Kibali during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2022.
In the Americas, all-in sustaining costs increased by $136 per ounce, or 9 percent, from $1,582 per ounce in 2021 to $1,718 per ounce in 2022. This increase was mainly due to an increase in cost of sales, partly offset by lower sustaining capital expenditure and higher ounces of gold sold. For a discussion of the increase in cost of sales in the Americas during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—Cost of sales”. Sustaining capital expenditure in the Americas decreased as the region had lower investment in TSF projects in 2022 as compared to 2021. At AGA Mineração in Brazil, sustaining capital expenditure increased year-on-year mainly due to higher Mineral Reserve development expenditures. At Serra Grande in Brazil, sustaining capital expenditure decreased year-on-year mainly due to lower TSF expenditures, partly offset by higher Mineral Reserve development expenditures. At Cerro Vanguardia in Argentina, sustaining capital expenditure decreased year-on-year mainly due to lower expenditure on TSFs in 2022, partly offset by higher deferred stripping capital and Mineral Reserve development expenditures in 2022. Gold sold in the Americas increased by 4,000 ounces, or one percent, from 561,000 ounces in 2021 to 565,000 ounces in 2022. This increase was mainly due to higher production from Serra Grande and Cerro Vanguardia, partly offset by lower production from AGA Mineração. For a discussion of the increase in production at the Americas operations during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
In Australia, all-in sustaining costs decreased by $155 per ounce, or ten percent, from $1,500 per ounce in 2021 to $1,345 per ounce in 2022. The decrease was mainly due to lower sustaining capital expenditure and an increase in ounces of gold sold, partly offset by an increase in cost of sales. For a discussion of the increase in cost of sales in Australia during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—Cost of sales”. Sustaining capital expenditure decreased in Australia mainly due to lower stripping and pre-stripping expenditure. At Sunrise
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Dam in Australia, sustaining capital expenditure increased year-on-year mainly due to the camp extension. At Tropicana in Australia, sustaining capital expenditure decreased year-on-year mainly due to lower deferred stripping and pre-stripping expenditure due to mining different ore bodies and at different phases to 2021. Gold sold in Australia increased by 44,000 ounces, or 9 percent, from 495,000 ounces in 2021 to 539,000 ounces in 2022. This increase was mainly due to higher production at Sunrise Dam and Tropicana. For a discussion of the increase in production at the Australia operations during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
All-in costs per ounce
In Africa - Subsidiaries, all-in costs decreased by $82 per ounce, or five percent, from $1,516 per ounce in 2021 to $1,434 per ounce in 2022. This decrease was mainly due to an increase in gold sold, (excluding pre-production ounces)lower non-sustaining project capital expenditure and lower care and maintenance costs, partly offset by higher all-in sustaining costs. At Obuasi in Ghana, Phase 3 of the Obuasi redevelopment project, which relates principally to capital expenditure to refurbish existing infrastructure around the KMS Shaft, as well as to service the mine in deeper production areas, continues to progress. Care and maintenance activities of $45 million incurred in 2021 at the Obuasi mine during the voluntary suspension of underground mining between May and October 2021 following a sill pillar incident were not repeated in 2022. Non-sustaining project capital expenditure at Obuasi was lower mainly due to different project scopes and cash flows. This decrease was largely offset by higher non-sustaining project capital expenditure at Iduapriem in Ghana mainly due to increased TSF investment in 2022. For a discussion of the increase in ounces of gold sold in Africa - Subsidiaries during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—All-in sustaining costs per ounce”.
In Africa - Joint Ventures, all-in costs increased by $175 per ounce, or 19 percent, from $900 per ounce in 2021 to $1,075 per ounce in 2022. This increase was mainly due to an increase in all-in sustaining costs and higher non-sustaining project capital expenditure, and lower gold sold. For a discussion of the decrease in ounces of gold sold in Africa - Joint Ventures during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—All-in sustaining costs per ounce”. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2022.
In the Americas, all-in costs decreased by $83 per ounce, or 4 percent, from $1,858 per ounce in 2021 to $1,775 per ounce in 2022. This decrease was mainly due to higher ounces of gold sold and lower non-sustaining exploration and study cost expenditure at the Colombian and Nevada growth projects, partly offset by higher all-in sustaining costs. For a discussion of the increase in ounces of gold sold in the Americas during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—All-in sustaining costs per ounce”.
In Australia, all-in costs decreased by $94 per ounce, or 5 percent, from $1,725 per ounce in 2021 to $1,631 per ounce in 2022. This decrease was mainly due to lower all-in sustaining costs, lower non-sustaining exploration and study costs relating to growth deposits at Sunrise Dam and Tropicana, and higher ounces of gold sold, partly offset by higher non-sustaining project capital expenditure at Tropicana on the Havana cutback project. For a discussion of the increase in ounces of gold sold in Australia during 2022, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2022 with 2021—All-in sustaining costs per ounce”.
Total cash costs per ounce
The currencies of Argentina and Australia were, on average, weaker against the US dollar during 2022 as compared to 2021, which positively impacted total cash costs per ounce for 2022. This positive impact was partly offset by the currency of Brazil being, on average, stronger against the US dollar during 2022 as compared to 2021. Total production in 2022 was higher as compared to 2021, which positively impacted total cash costs per ounce for 2022. For a discussion of production during 2022, see “Item 5A: Operating Results—Key factors affecting results—Production in 2022”.
In ContinentalAfrica - Subsidiaries, total cash costs per ounce increased by $32 per ounce, or three percent, from $991 per ounce in 2021 to $1,023 per ounce in 2022. The increase was mainly due to an increase in total cash costs, partly offset by a 244,000 ounce increase in production.
At Iduapriem in Ghana, total cash costs per ounce decreased by $111 per ounce, or ten percent, from $1,081 per ounce in 2021 to $970 per ounce in 2022. Total cash costs per ounce decreased year-on-year mainly due to higher production and favourable movements in stockpiles, partly offset by an increase in fuel costs and higher royalties paid.
At Obuasi in Ghana, total cash costs per ounce decreased by $198 per ounce, or 18 percent, from $1,112 per ounce in 2021 to $914 per ounce in 2022. Total cash costs per ounce decreased year-on-year mainly due to higher production.
At Siguiri in Guinea, total cash costs per ounce increased by $119 per ounce, or ten percent, from $1,200 per ounce in 2021 to $1,319 per ounce in 2022. Total cash costs per ounce increased year-on-year mainly due to higher fuel costs and an unfavourable movement in the exchange rate of the Guinean franc against the US dollar, partly offset by an increase in production.
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At Geita in Tanzania, total cash costs per ounce increased by $122 per ounce, or 15 percent, from $822 per ounce in 2021 to $944 per ounce in 2022. Total cash costs per ounce increased year-on-year mainly due to higher fuel costs, increased engineering costs from the heavy mining equipment maintenance as the open-pit mine expanded, as well as higher underground mining contractors’ costs and higher royalties paid. This increase was partly offset by higher gold production.
In Africa - Joint Ventures, total cash costs per ounce increased by $78 per ounce, or 12 percent, from $647 per ounce in 2021 to $725 per ounce in 2022. The increase was mainly due to lower production and higher fuel costs, partly offset by favourable movements in stockpiles and lower royalties paid. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2022.
In the Americas, total cash costs per ounce increased by $157 per ounce, or 17 percent, from $921 per ounce in 2021 to $1,078 per ounce in 2022. The increase was mainly due to an increase in total cash costs, partly offset by a 10,000 ounce increase in production.
At AGA Mineração in Brazil, total cash costs per ounce increased by $230 per ounce, or 27 percent, from $858 per ounce in 2021 to $1,088 per ounce in 2022 . Total cash costs per ounce were higher year-on-year mainly due to lower production, higher fuel costs, lower by-product revenue, unfavourable movement in inventories, repair costs incurred in the second half of 2022 due to extreme weather earlier in 2022, and an unfavourable movement in the exchange rate of the Brazilian real against the US dollar.
At Serra Grande in Brazil, total cash costs per ounce increased by $163 per ounce, or 14 percent, from $1,192 per ounce in 2021 to $1,355 per ounce in 2022. Total cash costs per ounce increased year-on-year mainly due to higher fuel costs, higher royalties paid and an unfavourable movement in the exchange rate of the Brazilian real against the US dollar, partly offset by higher production.
At Cerro Vanguardia in Argentina, total cash costs per ounce increased by $19 per ounce, or two percent, from $894 per ounce in 2021 to $913 per ounce in 2022. Total cash costs per ounce were higher year-on-year mainly due to higher fuel costs, higher materials consumption (such as fuel, explosives, and spare parts) as a result of higher tonnes mined and lower by-product revenue due to lower silver sales. This increase was partly offset by higher gold production and a favourable movement in the exchange rate of the Argentinean peso against the US dollar.
In Australia, total cash costs per ounce decreased by $39 per ounce, or three percent, from $1,196 per ounce in 2021 to $1,157 per ounce in 2022, primarily due to a 44,000 ounce increase in production, partly offset by an increase in total cash costs.
At Sunrise Dam in Australia, total cash costs per ounce increased by $81 per ounce, or six percent, from $1,321 per ounce in 2021 to $1,402 per ounce in 2022. Total cash costs per ounce were higher year-on-year primarily due to higher fuel and mining costs, partly offset by a favourable movement in the exchange rate of the Australian dollar against the US dollar.
At Tropicana in Australia, total cash costs per ounce decreased by $106 per ounce, or 11 percent, from $987 per ounce in 2021 to $881 per ounce in 2022. Total cash costs per ounce decreased year-on-year mainly due to higher gold production, lower mining costs related to an increase in ore mining volumes in the Boston Shaker open pit and underground mine, a favourable movement in ore stockpiles and a favourable movement in the exchange rate of the Australian dollar against the US dollar, partly offset by higher fuel costs and higher royalties paid.
Overall the subsidiaries’ total cash costs per ounce increased by $49, or five percent, from $1,017 per ounce in 2021 to $1,066 per ounce in 2022. The increase was mainly due to an increase in total cash costs partly offset by a 298,000 ounce increase in production.
Comparison of operating performance on a segment basis in 2021 with 2020
Cost of sales
In Africa - Subsidiaries, cost of sales decreased by $62 million, or five percent, from $1,362 million in 2020 to $1,300 million in 2021. The decrease was mainly due to a significant amount of waste stripping capitalised, a decrease in royalties paid due to lower ounces of gold sold in 2021 and improved efficiencies, partly offset by an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, environmental rehabilitation and other non-cash costs, amortisation of right of use assets, services and other charges, power and fuel costs and higher ore stockpile adjustments. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. Higher fuel and power costs were mainly due to the increase in the average price of Brent Crude oil, which increased from $42 per barrel in 2020 to $71 per barrel in 2021, a $29, or a 69 percent, per barrel increase.
At Iduapriem in Ghana, cost of sales decreased by $42 million, or 15 percent, from $280 million in 2020 to $238 million in 2021. Cost of sales at Iduapriem decreased year-on-year mainly due to a significant amount of waste stripping capitalised at
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Teberebie Cut 2 in 2021 compared to 2020, together with a decrease in royalties paid due to lower ounces of gold sold and an inventory change due to ore stockpile movements.
At Obuasi in Ghana, cost of sales in 2021 remained unchanged from 2020 at $164 million. Phase 1 of the Obuasi redevelopment project commenced commercial production from 1 October 2020. Underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021 at the Obuasi mine, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the run-of-mine stockpile without corresponding gold production and related cost of sales. Since the voluntary suspension of underground mining activities, care and maintenance costs of $45 million were incurred at Obuasi during 2021.
At Siguiri in Guinea, cost of sales increased by $33 million, or nine percent, from $377 million in 2020 to $410 million in 2021. Cost of sales at Siguiri increased year-on-year mainly as a result of additional volumes of ore mined resulting in higher operating costs, increases on fuel and reagent costs, and higher royalties paid from additional volumes sold in 2021.
At Geita in Tanzania, cost of sales decreased by $54 million, or ten percent, from $542 million in 2020 to $488 million in 2021. Cost of sales at Geita decreased year-on-year mainly due to lower royalties paid and improved efficiencies in that more open pit tonnes were mined in 2021 at a lower rate per tonne than in 2020. This decrease was partly offset by lower grades as well as the depletion of ore stockpiles in 2021 compared to an increase in ore stockpiles during 2020.
In Africa - Joint Ventures, cost of sales increased by $10 million, or three percent, from $340 million in 2020 to $350 million in 2021. The increase was mainly due to lower open-pit recovered grades, unfavourable movements in stockpiles, higher royalties paid due to an increase in the average gold price received, and additional reagent consumption costs, as compared to 2020. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2021.
In the Americas, cost of sales increased by $58 million, or eight percent, from $764 million in 2020 to $822 million in 2021. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel cost, write down of inventory and environmental rehabilitation and other non-cash costs. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil. The increase in cost of sales was partly offset by lower royalties paid due to lower ounces of gold sold in 2021 as compared to 2020, lower amortisation of tangible assets due to lower ounces of gold produced in 2021 as compared to 2020 as well as the weakening of the local currencies against the US dollar.
At AGA Mineração in Brazil, cost of sales increased by $43 million, or 11 percent, from $392 million in 2020 to $435 million in 2021. Cost of sales at AGA Mineração increased year-on-year mainly due to higher commodity prices (oil, iron ore and construction materials) and higher costs of services and labour. This increase was partly offset by lower royalties paid due to lower ounces of gold sold and a five percent weakening of the Brazilian real against the US dollar.
At Serra Grande in Brazil, cost of sales increased by $22 million, or 22 percent, to $123 million in 2021 from $101 million in 2020. Cost of sales at Serra Grande increased year-on-year mainly due to higher commodity prices and higher cost of services and labour as well as inefficiencies primarily caused by higher absenteeism due to COVID-19 and various production challenges encountered during 2021. This increase was partly offset by a five percent weakening of the Brazilian real against the US dollar.
At Cerro Vanguardia in Argentina, cost of sales decreased by $8 million, or three percent, from $269 million in 2020 to $261 million in 2021. Cost of sales at Cerro Vanguardia decreased year-on-year mainly due to a 35 percent weakening of the Argentinean peso against the US dollar, and favourable inventory change movements. This decrease was partly offset by higher salary increases, additional costs relating to COVID-19 tests and other related medical costs in line with COVID-19 protocols and higher materials consumption (such as fuel, explosives and spare parts) as a result of higher tonnes mined.
In the Americas other segment, cost of sales increased by $1 million, or 50 percent, from $2 million in 2020 to $3 million in 2021.
In Australia, cost of sales increased by $35 million, or five percent, from $705 million in 2020 to $740 million in 2021. The increase was mainly due to an increase in labour and contractors’ costs, commodity prices, logistics costs, consumable stores, amortisation of right of use assets, services and other charges, power and fuel costs, ore stockpile adjustments and the strengthening of the Australian dollar against the US dollar by eight percent. The higher labour and contractors’ costs were mainly due to COVID-19 related cost increases resulting from challenges with travel restrictions and shortages of critical skills. Higher commodity costs were mainly due to an increase in the prices of steel, support and construction materials, lime and other reagents. COVID-19 presented challenges within the overall logistics sector resulting in higher cost of transportation, warehousing and inventory prices. The higher fuel costs were mainly due to the increase in the price of Brent Crude oil. This
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increase in cost of sales was partly offset by a decrease in environmental rehabilitation and other non-cash costs, amortisation of waste stripping and royalties paid.
At Sunrise Dam in Australia, cost of sales increased by $22 million, or six percent, from $342 million in 2020 to $364 million in 2021. Cost of sales at Sunrise Dam increased year-on-year primarily due to higher mining costs (mainly higher cost of labour due to critical skill shortages), partly offset by lower royalties paid.
At Tropicana in Australia, cost of sales increased by $8 million, or two percent, from $338 million in 2020 to $346 million in 2021. Cost of sales at Tropicana increased year-on-year mainly due to higher mining costs (mainly higher cost of labour due to critical skill shortages), inventory movements and the impact of higher underground and open pit mining costs.
Overall the subsidiaries’ cost of sales increased by $28 million, or one percent, from $2,829 million in 2020 to $2,857 million in 2021. The increase was primarily due to an increase in cash operating costs by $148 million, or seven percent, from $2,012 million in 2020 to $2,160 million in 2021, an increase in environmental rehabilitation and other non-cash costs by $6 million, or 19 percent, from $32 million in 2020 to $38 million in 2021, an increase in amortisation of right of use assets by $16 million, or 34 percent, from $47 million in 2020 to $63 million in 2021. This increase was partly offset by a decrease in royalties paid by $19 million, or ten percent, from $181 million in 2020 to $162 million in 2021, a decrease in amortisation of tangible assets of $115 million, or 22 percent, from $526 million in 2020 to $411 million in 2021 and an inventory change of $8 million, or 57 percent, from a charge of $14 million in 2020 to a charge of $6 million in 2021. The increase in cash operating costs was mainly due to higher labour and contractors’ costs, commodity prices, logistics costs, consumable stores, COVID-19 pandemic related expenditure, services and other charges as well as fuel and power costs. The increase in environmental rehabilitation and other non-cash costs was mainly due to the changes to restoration provision cash flows, cost increases and discount rates in 2021 compared to 2020. The increase in amortisation of right of use assets was mainly due to an increase in number of right of use assets in 2021 as compared to 2020. The decrease in royalties paid was mainly due to a decrease in ounces of gold sold in 2021 as compared to 2020. The decrease in amortisation of tangible assets was mainly due to lower amortisation of waste stripping and lower gold production in 2021 as compared to 2020.
All-in sustaining costs per ounce
In Africa - Subsidiaries, all-in sustaining costs (excluding stockpile impairments) increased by $23$262 per ounce, or three26 percent, to $909from $1,002 per ounce in 2017 from $8862020 to $1,264 per ounce in 2016.2021. This increase was mainly due to an increase in cost of sales, an increase in sustaining capital expenditure and a decrease in ounces of gold sold. For a discussion of the increase in cost of sales in Africa - Subsidiaries during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in Africa - Subsidiaries increased as the region continued to implement its re-investment programme. At Iduapriem in Ghana, sustaining capital expenditure increased year-on-year mainly due to higher pre-stripping activities and stay-in-business capital expenditure. At Obuasi in Ghana, the Obuasi redevelopment project led to an increase in sustaining capital expenditure as Phase 2 of the project was completed at the end of December 2021. At Siguiri in Guinea, sustaining capital expenditure increased year-on-year mainly due to increased spendingstay-in-business capital expenditure. At Geita in Tanzania, sustaining capital expenditure increased year-on-year mainly due to an increase in deferred stripping and Mineral Reserve development expenditure as the underground portal development at Geita Hill East progressed according to plan. Gold sold in Africa - Subsidiaries decreased by 189,000 ounces, or 15 percent, from 1.249 million ounces in 2020 to 1.060 million ounces in 2021. The decrease was mainly due to lower production from Iduapriem and Geita, underground development. The increase in all-in sustaining costs was partiallypartly offset by higher production from Siguiri. For a 149,000-ounce increasediscussion of the decrease in gold sold (excluding pre-production ounces)production at the Africa operations (other than Kibali) during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”.
In Continental Africa - Joint Ventures, all-in sustaining costs (excluding stockpile impairments) increased by $132$46 per ounce, or 14six percent, to $1,087from $810 per ounce in 2017 from $9552020 to $856 per ounce in 2016.2021. This increase was mainly due to an increase in cost of sales and an increase in sustaining capital expenditure, partly offset by higher ounces of gold sold. For a discussion of the increase in cost of sales in Africa - Joint Ventures during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in Africa - Joint Ventures increased mainly due to higher deferred stripping. The increase was partly offset by an increase in gold sold in Africa - Joint Ventures by 2,000 ounces, or one percent, from 365,000 ounces in 2020 to 367,000 ounces in 2021. The marginal increase was mainly due to a marginally higher production from Kibali. For a discussion of the marginal increase in production at Kibali during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”. The Kibali mine in the DRC was the only operating asset in Africa - Joint Ventures in 2021.
In the Americas, all-in sustaining costs increased by $584 per ounce, or 58 percent, from $1,003 per ounce in 2020 to $1,587 per ounce in 2021. This increase was mainly due to an increase in cost of sales, an increase in sustaining capital expenditure and lower ounces of gold sold. For a discussion of the increase in cost of sales in the Americas during 2021, see “Item 5A: Operating Results—Comparison of operating performance on a segment basis in 2021 with 2020—Cost of sales”. Sustaining capital expenditure in the Americas increased as the region continued to implement its re-investment programme and the transition of the TSFs in Brazil to dry-stacked structures to comply with new legal requirements. At AGA Mineração and Serra Grande in Brazil, sustaining capital expenditure increased year-on-year mainly due to higher mine development and TSF expenditures. At Cerro Vanguardia in Argentina, sustaining capital expenditure increased spendingyear-on-year mainly due to higher expenditure on Kibali as it moves underground. The increaseTSFs and higher deferred stripping capital. Gold sold in the Americas decreased by 103,000 ounces, or 16
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percent, from 664,000 ounces in 2020 to 561,000 ounces in 2021. This decrease was mainly due to lower production from all of the Americas operations. For a discussion of the decrease in production at the Americas operations during 2021, see “Item 5A: Operating Results—Key factors affecting results—Production in 2021”.
In Australia, all-in sustaining costs was partially offset by a 15,000-ounce increase in gold sold.
All-in costs per ounce (excluding stockpile impairments) in South
In Africa - Subsidiaries, all-in costs increased by $156$323 per ounce, or 1427 percent, to $1,278from $1,193 per ounce in 2017 from $1,1222020 to $1,516 per ounce in 2016. The2021. This increase was as a result of the strengthening of the rand,mainly due to an increase in all-in sustaining costs, higher care and maintenance expenditure and higher non-sustaining project capital expenditure. At Obuasi in Ghana, underground mining activities were voluntarily suspended between 18 May 2021 and 15 October 2021, following a sill pillar incident. From 15 October 2021, underground mining resumed to replenish the 61,000-ouncerun-of-mine stockpile without corresponding gold production. Since the voluntary suspension of underground mining activities, care and maintenance costs of $45 million were incurred at Obuasi during 2021. Non-sustaining capital expenditure at Geita in Tanzania increased mainly due to an increase in project capital with the start of the Nyamulilima project. For a discussion of the decrease in ounces of gold sold.
In Africa - Joint Ventures, all-in costs (excluding stockpile impairments) increased by $30$76 per ounce, or threenine percent, to $1,019from $824 per ounce in 2017 from $9892020 to $900 per ounce in 2016.2021. This increase was mainly due to an increase in all-in sustaining costs and an increase inhigher non-sustaining project capital expenditure due to combination plant, infill drilling and overland land conveyor belt replacement at Siguiri. The. For a discussion of the increase in all-in costs was partially offset by a 149,000-ounce increase inounces of gold sold (excluding pre-production ounces).
In the Americas, all-in costs (excluding stockpile impairments) increased by $45$603 per ounce, or four58 percent, to $1,186from $1,032 per ounce in 2017 from $1,1412020 to $1,635 per ounce in 2016.2021. This increase was mainly due to a $60 millionan increase in all-in sustaining costs. This increase was partially offset byclosure and social responsibility costs not related to current operations. For a 15,000-ounce increasediscussion of the decrease in ounces of gold sold and a decrease in major project spending at Kibali as projects were completed and commissioned.
In Australia, all-in costs (excluding stockpile impairments) increased by $59$369 per ounce, or six27 percent, to $1,018from $1,356 per ounce in 2017 from $9592020 to $1,725 per ounce in 2016.2021. This increase was mainly due to an increase in all-in sustaining costs, partially offset byhigher non-sustaining project capital expenditure at Sunrise Dam on the Golden Delicious open pit growth project and at Tropicana on the Havana cutback project, and higher non-sustaining exploration and study costs relating to growth deposits at Sunrise Dam and Tropicana. For a 47,000-ounce increasediscussion of the decrease in ounces of gold sold (excluding pre-production ounces).
during 2021, see “Item 5A: Operating Results—Comparison of total cashoperating performance on a segment basis in 2021 with 2020—All-in sustaining costs in 2017 with 2016per ounce”.
Total cash costs at Geita, in Tanzania, increased by $78 per ounce or 15 percent, to $608 per ounce in 2017 from $530 per ounce in 2016. The increase was mainly due the increase in consumables store costs, fuel costs and contractor costs partially offset by a 61,000-ounce increase in production (excluding pre-production ounces).
The currencies of South Africa, Australia, Argentina and Brazil were, on average, weaker against the US dollar during 20162021 as compared to 20152020, which positively impacted total cash costs per ounce for 2016.
In Africa - Subsidiaries, total cash costs per ounce increased by $15$150 per ounce, or two18 percent, to $896from $841 per ounce in 2016 from $8812020 to $991 per ounce in 2015.2021. The increase was mainly due to a 35,000-ounce185,000 ounce decrease in production (excluding pre-production ounces) partially offset by the weakening of the rand.
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At Obuasi in Ghana, total cash costs per ounce decreased by $195 per ounce, or 15 percent, from $1,307 per ounce in 2020 to $1,112 per ounce in 2021. Total cash costs per ounce decreased year-on-year mainly due to the ramp-up of Phase 2 production, despite the temporary suspension of underground stoping activities in 2021 due to a sill pillar incident in May 2021. During the temporary suspension period, care and maintenance costs of $45 million were incurred until underground stoping activities resumed in mid-October 2021.
At Siguiri in Guinea, total cash costs per ounce decreased by five$93 per ounce, or seven percent, to $784from $1,293 per ounce in 2016 from $8272020 to $1,200 per ounce in 20152021. Total cash costs per ounce decreased year-on-year mainly as a result of higher production, partly offset by higher operating costs, increases on fuel and reagent costs, and higher royalties paid from additional volumes sold in 2021.
At Geita in Tanzania, total cash costs per ounce increased by $181 per ounce, or 28 percent, from $641 per ounce in 2020 to $822 per ounce in 2021. Total cash costs per ounce increased year-on-year mainly due to a 5,000-ouncelower grades, together with the depletion of ore stockpiles in 2021 compared to an increase in production a decrease in salaries and wages costs, fuel costs and service related costs.
In Continental Africa - Joint Ventures, total cash costs per ounce increased by $157$18 per ounce, or 24three percent, to $812from $629 per ounce in 2016 from $6552020 to $647 per ounce in 2015.2021. The increase was mainly due to the 51,000-ounce decreasean increase in production and increases in consumables store costs, contractor costs and service related costs.
In the Americas, total cash costs per ounce increased by $2$200 per ounce, to $578or 28 percent, from $721 per ounce in 2016 from $5762020 to $921 per ounce in 2015.2021. The increase was mainly due to a 11,00090,000 ounce decrease (excluding pre-production ounces) in production partially offset by an increase in silver revenue due to a higher average silver price in 2016 compared to 2015 and an increase in silver sold from 4.1 million ounces in 2015 to 5.1 million ounces in 2016.total cash costs.
In Brazil, at AngloGold Ashanti Córrego do SítíoAGA Mineração, total cash costs per ounce increased by $44$111 per ounce, or eight15 percent, to $562from $747 per ounce in 2016 from $5182020 to $858 per ounce in 2015 primarily2021. Total cash costs per ounce increased year-on-year mainly due to a 14,000-ounce decrease inlower production and increaseshigher commodity prices (oil, iron ore and construction materials) and higher costs of services and labour. This increase was partly offset by higher sulphuric acid by-product revenue and lower royalties paid due to lower volumes sold.
At Serra Grande, total cash costs per ounce increased by $527 per ounce, or 79 percent, from $665 per ounce in salaries2020 to $1,192 per ounce in 2021. Total cash costs per ounce increased year-on-year mainly due to lower production, higher commodity prices (oil, iron ore and wages costs, consumables store costsconstruction materials) and fuel costs.higher cost of services and labour as well as inefficiencies primarily caused by higher absenteeism due to COVID-19 and various production challenges encountered during 2021.
In Argentina, at Cerro Vanguardia, total cash costs decreased to $563per ounce increased by $195 per ounce, or 28 percent, from $699 per ounce in 2016 from $6252020 to $894 per ounce in 2015 primarily2021. Total cash costs per ounce increased year-on-year mainly due to salary increases, additional costs relating to COVID-19 tests and other related medical costs in line with COVID-19 protocols, higher commodity prices and higher materials consumption (such as fuel, explosives and spare parts) as a 3,000 ounceresult of higher tonnes mined. The increase in production and an increase in silver revenue due to a higher average silver price in 2016 compared to 2015 and an increase in silver sold from 4.1 million ounces in 2015 to 5.1 million ounces in 2016 and reimbursementwas partly offset by the Government in respectweakening of exports channelled through Patagonian ports.the Argentinean peso against the US dollar and higher by-product revenue derived from higher ounces of silver sold.
In Australia, total cash costs per ounce increased by $91$228 per ounce, or 1324 percent, to $793from $968 per ounce in 2016 from $7022020 to $1,196 per ounce in 20152021, primarily due to a 40,000-ounce60,000 ounce decrease in production and an increase in silver relatedtotal cash costs.
At Sunrise Dam, total cash costs decreasedper ounce increased by $44$252 per ounce, or five24 percent, to $926from $1,069 per ounce in 2016 compared2020 to $970$1,321 per ounce in 2015, mainly2021. Total cash costs per ounce increased year-on-year primarily due to a 12,000-ounce increase in production.lower production and higher mining costs (mainly higher cost of labour due to critical skill shortages), partly offset by lower royalties paid.
At Tropicana, total cash costs per ounce increased by $138$180 per ounce, or 2822 percent, to $630from $807 per ounce in 2016 compared2020 to $492$987 per ounce in 2015,2021. Total cash costs per ounce increased year-on-year mainly due to a 52,000-ounce decrease in productionlower grades, inventory movements and increasesthe impact of higher underground and consumables store costs, fuel costs and service relatedopen pit mining costs.
Overall the subsidiariessubsidiaries’ total cash costs per ounce increased by $18 per ounce,$181, or three22 percent, to $737from $836 per ounce in 2016 compared2020 to $719$1,017 per ounce in 2015.2021. The increase was mainly due to an increase in total cash costs and a 161,000-ounce335,000-ounce decrease in production.
Reconciliations
The following tables present a reconciliation of cost of sales as included in the Company’s audited financial statements to “all-in sustaining costs”, “all-in sustaining costs per ounce”, “all-in costs”, “all-in costs per ounce”, “total cash costs net of by-product revenue” and “total cash costs per ounce” for each of the three years in the period ended 31 December 2022 on a total
172
and segment basis. In addition, the Company has provided detail of the attributable ounces of gold produced and sold by mine for each of those periods below.
For the year ended 31 December 20172022
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realised other commodity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate administration and marketing expenditure | 79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease payment sustaining | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sustaining exploration and study costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total sustaining capital expenditure | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining project capital expenditure | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining lease payments | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining exploration and study costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Care and maintenance | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other provisions | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold sold - oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in sustaining cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
173
For the year ended 31 December 2022
Corporate and other
(in $ millions, except as otherwise noted)
Corporate(4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory change | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible assets | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of right of use assets | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of intangible assets | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rehabilitation and other non-cash costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retrenchment costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies (1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold produced – oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
174
For the year ended 31 December 2022
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi | Siguiri | Geita | Africa Other | Subsidiaries | |||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 342 | — | 342 | 314 | 266 | 488 | 594 | — | 1,662 | ||||||||||||||||||||
| By-product revenue | (1) | — | (1) | (1) | (1) | — | (1) | — | (3) | ||||||||||||||||||||
| Cost of sales | 341 | — | 341 | 313 | 265 | 488 | 593 | — | 1,659 | ||||||||||||||||||||
| Realised other commodity contracts | |||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (95) | — | (95) | (80) | (40) | (50) | (102) | — | (272) | ||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Lease payment sustaining | 8 | — | 8 | 4 | — | 1 | 22 | — | 27 | ||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | 2 | — | 5 | 8 | — | 15 | ||||||||||||||||||||
| Total sustaining capital expenditure | 71 | — | 71 | 81 | 79 | 23 | 111 | — | 294 | ||||||||||||||||||||
| All-in sustaining costs | 325 | — | 325 | 320 | 304 | 467 | 632 | — | 1,723 | ||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | (70) | — | — | (70) | ||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 325 | — | 325 | 320 | 304 | 397 | 632 | — | 1,653 | ||||||||||||||||||||
| All-in sustaining costs | 325 | — | 325 | 320 | 304 | 467 | 632 | — | 1,723 | ||||||||||||||||||||
| Non-sustaining project capital expenditure | 19 | — | 19 | 65 | 80 | 4 | 43 | — | 192 | ||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||
| Non-sustaining exploration and study costs | 2 | — | 2 | 1 | — | 7 | 5 | — | 13 | ||||||||||||||||||||
| Care and maintenance | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 10 | 1 | 11 | 1 | (23) | — | — | — | (22) | ||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| All-in costs | 356 | 1 | 357 | 387 | 361 | 478 | 683 | — | 1,909 | ||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | (72) | — | — | (72) | ||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 356 | 1 | 357 | 387 | 361 | 406 | 683 | — | 1,837 | ||||||||||||||||||||
Gold sold – oz (000)(2) | 332 | — | 332 | 247 | 241 | 278 | 515 | — | 1,281 | ||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 979 | — | 979 | 1,299 | 1,264 | 1,428 | 1,227 | — | 1,291 | ||||||||||||||||||||
All-in cost per unit – $/oz(3) | 1,072 | — | 1,075 | 1,570 | 1,499 | 1,461 | 1,325 | — | 1,434 | ||||||||||||||||||||
175
For the year ended 31 December 2022
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi | Siguiri | Geita | Africa other | Subsidiaries | |||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 342 | — | 342 | 314 | 266 | 488 | 594 | — | 1,662 | ||||||||||||||||||||
| By-product revenue | (1) | — | (1) | (1) | (1) | — | (1) | — | (3) | ||||||||||||||||||||
| Inventory change | 3 | — | 3 | 3 | 6 | 4 | 7 | (1) | 19 | ||||||||||||||||||||
| Amortisation of tangible assets | (93) | — | (93) | (77) | (39) | (49) | (77) | — | (242) | ||||||||||||||||||||
| Amortisation of right of use assets | (2) | — | (2) | (3) | — | (1) | (25) | — | (29) | ||||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | (1) | — | — | — | (1) | ||||||||||||||||||||
| Rehabilitation and other non-cash costs | (4) | — | (4) | 4 | (2) | (8) | (7) | — | (13) | ||||||||||||||||||||
| Retrenchment costs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Total cash costs net of by-product revenue | 245 | — | 245 | 240 | 229 | 434 | 491 | (1) | 1,393 | ||||||||||||||||||||
Adjusted for non-controlling interests non-gold producing companies and other(1) | — | — | — | — | — | (65) | — | — | (65) | ||||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies and other | 245 | — | 245 | 240 | 229 | 369 | 491 | (1) | 1,328 | ||||||||||||||||||||
Gold produced - oz (000)(2) | 337 | — | 337 | 248 | 250 | 279 | 521 | — | 1,298 | ||||||||||||||||||||
Total cash costs per unit - $/oz(3) | 725 | — | 725 | 970 | 914 | 1,319 | 944 | — | 1,023 | ||||||||||||||||||||
176
For the year ended 31 December 2022
Operations in Australia, America and Projects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | PROJECTS (6) | ||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other | Total Americas | ||||||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 371 | 382 | 30 | 783 | 273 | 477 | 162 | 1 | 913 | — | ||||||||||||||||||||||
| By-product revenue | (1) | (3) | — | (4) | (75) | (31) | — | — | (106) | — | ||||||||||||||||||||||
| Cost of sales | 370 | 379 | 30 | 779 | 198 | 446 | 162 | 1 | 807 | — | ||||||||||||||||||||||
| Realised other commodity contracts | ||||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (54) | (117) | (1) | (172) | (39) | (106) | (40) | — | (185) | — | ||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | — | 1 | — | 1 | 6 | — | (1) | — | 5 | — | ||||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Lease payment sustaining | 12 | 11 | 1 | 24 | — | 32 | 4 | — | 36 | 1 | ||||||||||||||||||||||
| Sustaining exploration and study costs | 1 | 1 | — | 2 | 3 | 1 | — | — | 4 | — | ||||||||||||||||||||||
| Total sustaining capital expenditure | 50 | 41 | — | 91 | 66 | 199 | 57 | — | 322 | — | ||||||||||||||||||||||
| All-in sustaining costs | 379 | 316 | 30 | 725 | 234 | 572 | 182 | 1 | 989 | 1 | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (18) | — | — | — | (18) | — | ||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 379 | 316 | 30 | 725 | 216 | 572 | 182 | 1 | 971 | 1 | ||||||||||||||||||||||
| All-in sustaining costs | 379 | 316 | 30 | 725 | 234 | 572 | 182 | 1 | 989 | 1 | ||||||||||||||||||||||
| Non-sustaining project capital expenditure | — | 111 | — | 111 | — | — | — | — | — | 17 | ||||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Non-sustaining exploration and study costs | 18 | 6 | 19 | 43 | 1 | 9 | 3 | 1 | 14 | 113 | ||||||||||||||||||||||
| Care and maintenance | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | — | — | — | — | — | 16 | 2 | — | 18 | — | ||||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| All-in costs | 397 | 433 | 49 | 879 | 235 | 597 | 187 | 2 | 1,021 | 131 | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (18) | — | — | — | (18) | — | ||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 397 | 433 | 49 | 879 | 217 | 597 | 187 | 2 | 1,003 | 131 | ||||||||||||||||||||||
Gold sold – oz (000)(2) | 228 | 311 | — | 539 | 166 | 310 | 89 | — | 565 | — | ||||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 1,666 | 1,014 | — | 1,345 | 1,301 | 1,841 | 2,053 | — | 1,718 | — | ||||||||||||||||||||||
All-in cost per unit – $/oz(3) | 1,746 | 1,391 | — | 1,631 | 1,309 | 1,923 | 2,102 | — | 1,775 | — | ||||||||||||||||||||||
177
For the year ended 31 December 2022
Operations in Australia, America and Projects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | |||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other | Total Americas | ||||||||||||||||||||||||
| Total cash costs | ||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 371 | 382 | 30 | 783 | 273 | 477 | 162 | 1 | 913 | |||||||||||||||||||||||
| By-product revenue | (1) | (3) | — | (4) | (75) | (31) | — | — | (106) | |||||||||||||||||||||||
| Inventory change | 8 | (5) | — | 3 | 9 | 1 | (1) | (1) | 8 | |||||||||||||||||||||||
| Amortisation of tangible assets | (43) | (109) | — | (152) | (39) | (79) | (36) | — | (154) | |||||||||||||||||||||||
| Amortisation of right of use assets | (11) | (8) | (1) | (20) | — | (27) | (4) | — | (31) | |||||||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Rehabilitation and other non-cash costs | 2 | 12 | (1) | 13 | 2 | (1) | (1) | — | — | |||||||||||||||||||||||
| Retrenchment costs | — | — | (1) | (1) | (2) | (2) | (1) | — | (5) | |||||||||||||||||||||||
| Total cash costs net of by-product revenue | 326 | 269 | 27 | 622 | 168 | 338 | 119 | — | 625 | |||||||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | (13) | — | — | — | (13) | |||||||||||||||||||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 326 | 269 | 27 | 622 | 155 | 338 | 119 | — | 612 | |||||||||||||||||||||||
Gold produced – oz (000)(2) | 232 | 306 | — | 538 | 170 | 311 | 88 | — | 569 | |||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,402 | 881 | — | 1,157 | 913 | 1,088 | 1,355 | — | 1,078 | |||||||||||||||||||||||
178
For the year ended 31 December 2022
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES | |||||||
| All-in sustaining costs | ||||||||
Cost of sales per segmental information(5) | 342 | 3,362 | ||||||
| By-product revenue | (1) | (113) | ||||||
| Cost of sales | 341 | 3,249 | ||||||
| Realised other commodity contracts | ||||||||
| Amortisation of tangible, intangible and right of use assets | (95) | (633) | ||||||
| Adjusted for decommissioning and inventory amortisation | — | 6 | ||||||
| Corporate administration and marketing expenditure | — | 79 | ||||||
| Lease payment sustaining | 8 | 90 | ||||||
| Sustaining exploration and study costs | — | 21 | ||||||
| Total sustaining capital expenditure | 71 | 708 | ||||||
| All-in sustaining costs | 325 | 3,520 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (88) | ||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 325 | 3,432 | ||||||
| All-in sustaining costs | 325 | 3,520 | ||||||
| Non-sustaining project capital expenditure | 19 | 320 | ||||||
| Non-sustaining lease payments | — | 3 | ||||||
| Non-sustaining exploration and study costs | 2 | 183 | ||||||
| Care and maintenance | — | — | ||||||
| Closure and social responsibility costs not related to current operations | 11 | 3 | ||||||
| Other provisions | — | 14 | ||||||
| All-in costs | 357 | 4,043 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (90) | ||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 357 | 3,953 | ||||||
Gold sold – oz (000)(2) | 332 | 2,385 | ||||||
All-in sustaining cost per unit – $/oz(3) | 979 | 1,439 | ||||||
All-in cost per unit – $/oz(3) | 1,075 | 1,658 | ||||||
179
For the year ended 31 December 2022
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES | |||||||
| Total cash costs | ||||||||
Cost of sales per segmental information(5) | 342 | 3,362 | ||||||
| By-product revenue | (1) | (113) | ||||||
| Inventory change | 3 | 30 | ||||||
| Amortisation of tangible assets | (93) | (551) | ||||||
| Amortisation of right of use assets | (2) | (81) | ||||||
| Amortisation of intangible assets | — | (1) | ||||||
| Rehabilitation and other non-cash costs | (4) | — | ||||||
| Retrenchment costs | — | (6) | ||||||
| Total cash costs net of by-product revenue | 245 | 2,640 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (78) | ||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 245 | 2,562 | ||||||
Gold produced – oz (000)(2) | 337 | 2,405 | ||||||
Total cash costs (adjusted) per unit – $/oz(3) | 725 | 1,066 | ||||||
180
For the year ended 31 December 2021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realised other commodity contracts | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate administration and marketing expenditure | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease payment sustaining | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sustaining exploration and study costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total sustaining capital expenditure | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 79 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining project capital expenditure | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining lease payments | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining exploration and study costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Care and maintenance | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other provisions | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold sold - oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in sustaining cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
181
For the year ended 31 December 2021
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory change | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible assets | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of right of use assets | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of intangible assets | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rehabilitation and other non-cash costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retrenchment costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests,(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs for non-controlling interests | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold produced – oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
182
For the year ended 31 December 2021
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi | Siguiri | Geita | Africa Other | Subsidiaries | |||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 350 | — | 350 | 238 | 164 | 410 | 488 | — | 1,300 | ||||||||||||||||||||
| By-product revenue | (2) | — | (2) | (1) | — | (1) | (1) | — | (3) | ||||||||||||||||||||
| Cost of sales | 348 | — | 348 | 237 | 164 | 409 | 487 | — | 1,297 | ||||||||||||||||||||
| Realised other commodity contracts | |||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (105) | — | (105) | (19) | (22) | (47) | (75) | — | (163) | ||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | 1 | — | 1 | 1 | — | — | 1 | — | 2 | ||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Lease payment sustaining | 9 | — | 9 | 2 | — | 1 | 19 | — | 22 | ||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | 1 | — | 3 | 4 | — | 8 | ||||||||||||||||||||
| Total sustaining capital expenditure | 61 | — | 61 | 103 | 46 | 18 | 65 | — | 232 | ||||||||||||||||||||
| All-in sustaining costs | 314 | — | 314 | 325 | 188 | 384 | 501 | — | 1,398 | ||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | (58) | — | — | (58) | ||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 314 | — | 314 | 325 | 188 | 326 | 501 | — | 1,340 | ||||||||||||||||||||
| All-in sustaining costs | 314 | — | 314 | 325 | 188 | 384 | 501 | — | 1,398 | ||||||||||||||||||||
| Non-sustaining project capital expenditure | 11 | — | 11 | 2 | 122 | 20 | 58 | — | 202 | ||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||
| Non-sustaining exploration and study costs | 2 | — | 2 | 3 | 2 | 2 | 1 | — | 8 | ||||||||||||||||||||
| Care and maintenance | — | — | — | — | 45 | — | — | — | 45 | ||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 3 | — | 3 | — | 10 | — | — | — | 10 | ||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||
| All-in costs | 330 | — | 330 | 330 | 367 | 406 | 565 | — | 1,668 | ||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | (61) | — | — | (61) | ||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 330 | — | 330 | 330 | 367 | 345 | 565 | — | 1,607 | ||||||||||||||||||||
Gold sold – oz (000)(2) | 367 | — | 367 | 201 | 114 | 258 | 487 | — | 1,060 | ||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 856 | — | 856 | 1,619 | 1,653 | 1,267 | 1,029 | — | 1,264 | ||||||||||||||||||||
All-in cost per unit – $/oz(3) | 898 | — | 900 | 1,642 | 3,229 | 1,340 | 1,161 | — | 1,516 | ||||||||||||||||||||
183
For the year ended 31 December 2021
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi | Siguiri | Geita | Africa other | Subsidiaries | |||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 350 | — | 350 | 238 | 164 | 410 | 488 | — | 1,300 | ||||||||||||||||||||
| By-product revenue | (2) | — | (2) | (1) | — | (1) | (1) | — | (3) | ||||||||||||||||||||
| Inventory change | (1) | — | (1) | 1 | (10) | (1) | (1) | — | (11) | ||||||||||||||||||||
| Amortisation of tangible assets | (100) | — | (100) | (17) | (21) | (46) | (55) | — | (139) | ||||||||||||||||||||
| Amortisation of right of use assets | (5) | — | (5) | (2) | — | (1) | (20) | — | (23) | ||||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | (1) | — | — | — | (1) | ||||||||||||||||||||
| Rehabilitation and other non-cash costs | (5) | — | (5) | (1) | (12) | 2 | (12) | — | (23) | ||||||||||||||||||||
| Retrenchment costs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Total cash costs net of by-product revenue | 237 | — | 237 | 218 | 120 | 363 | 399 | — | 1,100 | ||||||||||||||||||||
Adjusted for non-controlling interests non-gold producing companies and other(1) | — | — | — | — | — | (55) | — | — | (55) | ||||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies and other | 237 | — | 237 | 218 | 120 | 308 | 399 | — | 1,045 | ||||||||||||||||||||
Gold produced - oz (000)(2) | 365 | — | 365 | 202 | 108 | 258 | 486 | — | 1,054 | ||||||||||||||||||||
Total cash costs per unit - $/oz(3) | 647 | — | 647 | 1,081 | 1,112 | 1,200 | 822 | — | 991 | ||||||||||||||||||||
184
For the year ended 31 December 2021
Operations in Australia, America and Projects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | PROJECTS (6) Restated | ||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other | Total Americas | ||||||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 364 | 346 | 30 | 740 | 261 | 435 | 123 | 3 | 822 | — | ||||||||||||||||||||||
| By-product revenue | (1) | (3) | — | (4) | (93) | (26) | — | — | (119) | — | ||||||||||||||||||||||
| Cost of sales | 363 | 343 | 30 | 736 | 168 | 409 | 123 | 3 | 703 | — | ||||||||||||||||||||||
| Realised other commodity contracts | ||||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (60) | (88) | (2) | (150) | (27) | (108) | (25) | (1) | (161) | — | ||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | 1 | 1 | — | 2 | — | (4) | — | — | (4) | — | ||||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Lease payment sustaining | 13 | 12 | — | 25 | — | 15 | 4 | 1 | 20 | — | ||||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | — | 1 | 1 | — | — | 2 | — | ||||||||||||||||||||||
| Total sustaining capital expenditure | 47 | 82 | 1 | 130 | 69 | 193 | 82 | — | 344 | — | ||||||||||||||||||||||
| All-in sustaining costs | 364 | 350 | 29 | 743 | 211 | 506 | 184 | 3 | 904 | — | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (16) | — | — | — | (16) | — | ||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 364 | 350 | 29 | 743 | 195 | 506 | 184 | 3 | 888 | — | ||||||||||||||||||||||
| All-in sustaining costs | 364 | 350 | 29 | 743 | 211 | 506 | 184 | 3 | 904 | — | ||||||||||||||||||||||
| Non-sustaining project capital expenditure | 15 | 40 | — | 55 | — | 2 | — | — | 2 | 52 | ||||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Non-sustaining exploration and study costs | 27 | 8 | 21 | 56 | 1 | 11 | 4 | 1 | 17 | 72 | ||||||||||||||||||||||
| Care and maintenance | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | — | — | — | — | — | 7 | 2 | 1 | 10 | — | ||||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| All-in costs | 406 | 398 | 50 | 854 | 212 | 526 | 190 | 5 | 933 | 124 | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (16) | — | — | — | (16) | — | ||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 406 | 398 | 50 | 854 | 196 | 526 | 190 | 5 | 917 | 124 | ||||||||||||||||||||||
Gold sold – oz (000)(2) | 231 | 264 | — | 495 | 144 | 334 | 83 | — | 561 | — | ||||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 1,573 | 1,326 | — | 1,500 | 1,353 | 1,519 | 2,220 | — | 1,587 | — | ||||||||||||||||||||||
All-in cost per unit – $/oz(3) | 1,757 | 1,506 | — | 1,725 | 1,362 | 1,582 | 2,283 | — | 1,635 | — | ||||||||||||||||||||||
185
For the year ended 31 December 2021
Operations in Australia, America and Projects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | |||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other | Total Americas | ||||||||||||||||||||||||
| Total cash costs | ||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 364 | 346 | 30 | 740 | 261 | 435 | 123 | 3 | 822 | |||||||||||||||||||||||
| By-product revenue | (1) | (3) | — | (4) | (93) | (26) | — | — | (119) | |||||||||||||||||||||||
| Inventory change | (3) | 3 | — | — | 7 | (3) | 1 | — | 5 | |||||||||||||||||||||||
| Amortisation of tangible assets | (49) | (80) | — | (129) | (27) | (94) | (21) | — | (142) | |||||||||||||||||||||||
| Amortisation of right of use assets | (11) | (8) | (1) | (20) | — | (14) | (4) | (1) | (19) | |||||||||||||||||||||||
| Amortisation of intangible assets | — | — | (1) | (1) | — | — | — | — | — | |||||||||||||||||||||||
| Rehabilitation and other non-cash costs | 3 | 3 | (1) | 5 | (8) | (12) | — | — | (20) | |||||||||||||||||||||||
| Retrenchment costs | — | — | — | — | (1) | (1) | — | — | (2) | |||||||||||||||||||||||
| Total cash costs net of by-product revenue | 303 | 261 | 27 | 591 | 139 | 285 | 99 | 2 | 525 | |||||||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | (10) | — | — | — | (10) | |||||||||||||||||||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 303 | 261 | 27 | 591 | 129 | 285 | 99 | 2 | 515 | |||||||||||||||||||||||
Gold produced – oz (000)(2) | 229 | 265 | — | 494 | 145 | 331 | 83 | — | 559 | |||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,321 | 987 | — | 1,196 | 894 | 858 | 1,192 | — | 921 | |||||||||||||||||||||||
186
For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES | |||||||
| All-in sustaining costs | ||||||||
Cost of sales per segmental information(5) | 350 | 2,857 | ||||||
| By-product revenue | (2) | (126) | ||||||
| Cost of sales | 348 | 2,731 | ||||||
| Realised other commodity contracts | ||||||||
| Amortisation of tangible, intangible and right of use assets | (105) | (477) | ||||||
| Adjusted for decommissioning and inventory amortisation | 1 | — | ||||||
| Corporate administration and marketing expenditure | — | 73 | ||||||
| Lease payment sustaining | 9 | 70 | ||||||
| Sustaining exploration and study costs | — | 10 | ||||||
| Total sustaining capital expenditure | 61 | 717 | ||||||
| All-in sustaining costs | 314 | 3,124 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (74) | ||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 314 | 3,050 | ||||||
| All-in sustaining costs | 314 | 3,124 | ||||||
| Non-sustaining project capital expenditure | 11 | 311 | ||||||
| Non-sustaining lease payments | — | 2 | ||||||
| Non-sustaining exploration and study costs | 2 | 153 | ||||||
| Care and maintenance | — | 45 | ||||||
| Closure and social responsibility costs not related to current operations | 3 | 24 | ||||||
| Other provisions | — | 4 | ||||||
| All-in costs | 330 | 3,663 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (77) | ||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 330 | 3,586 | ||||||
Gold sold – oz (000)(2) | 367 | 2,116 | ||||||
All-in sustaining cost per unit – $/oz(3) | 856 | 1,441 | ||||||
All-in cost per unit – $/oz(3) | 900 | 1,695 | ||||||
187
For the year ended 31 December 2021
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES | |||||||
| Total cash costs | ||||||||
Cost of sales per segmental information(5) | 350 | 2,857 | ||||||
| By-product revenue | (2) | (126) | ||||||
| Inventory change | (1) | (6) | ||||||
| Amortisation of tangible assets | (100) | (411) | ||||||
| Amortisation of right of use assets | (5) | (63) | ||||||
| Amortisation of intangible assets | — | (3) | ||||||
| Rehabilitation and other non-cash costs | (5) | (38) | ||||||
| Retrenchment costs | — | (2) | ||||||
| Total cash costs net of by-product revenue | 237 | 2,208 | ||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | (65) | ||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 237 | 2,143 | ||||||
Gold produced – oz (000)(2) | 365 | 2,107 | ||||||
Total cash costs per unit – $/oz(3) | 647 | 1,017 | ||||||
188
For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of sales | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Realised other commodity contracts | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate administration and marketing expenditure | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lease payment sustaining | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sustaining exploration and study costs | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total sustaining capital expenditure | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in sustaining costs | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining project capital expenditure | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining lease payments | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-sustaining exploration and study costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Care and maintenance | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other provisions | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold sold - oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in sustaining cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All-in cost per unit - $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
189
For the year ended 31 December 2020
Corporate and other
(in $ millions, except as otherwise noted)
Corporate (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By-product revenue | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory change | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of tangible assets | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of right of use assets | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortisation of intangible assets | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rehabilitation and other non-cash costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retrenchment costs | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gold produced – oz (000)(2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1)Adjusting for non-controlling interest of items included in calculation, to disclose the attributable portions only.
(2)Attributable portion.
(3)In addition to the operational performances of the mines, “all-in sustaining cost per ounce”, “all-in cost per ounce” and “total cash costs per ounce” are affected by fluctuations in the currency exchange rate. AngloGold Ashanti reports “all-in sustaining cost per ounce” and “all-in cost per ounce” calculated to the nearest US dollar amount and gold sold in ounces. AngloGold Ashanti reports “total cash costs per ounce” calculated to the nearest US dollar amount and gold produced in ounces.
(4)Corporate includes non-gold producing subsidiaries.
(5)Refer to “Item 18: Financial Statements—Note 2—Segmental Information”.
(6)A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new Operating Model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
Rounding of figures may result in computational discrepancies.
190
For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
| Mponeng | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | |||||||||||||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||||||||
| Cost of sales per segmental information(5) | 158 | 158 | 124 | 4 | 287 | ||||||||||||||||||||||||||||||
| By-product revenue | (1) | — | — | — | (1) | ||||||||||||||||||||||||||||||
| Cost of sales | 157 | 158 | 124 | 4 | 286 | ||||||||||||||||||||||||||||||
| Realised other commodity contracts | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Lease payment sustaining | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Total sustaining capital expenditure | 27 | 27 | 7 | 1 | 35 | ||||||||||||||||||||||||||||||
| All-in Sustaining costs | 184 | 185 | 131 | 5 | 321 | ||||||||||||||||||||||||||||||
| Adjusted for non-controlling interests and non gold producing companies (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||
| All-in Sustaining costs adjusted for non-controlling interests and non-gold producing companies | 184 | 185 | 131 | 5 | 321 | ||||||||||||||||||||||||||||||
| All-in Sustaining costs | 184 | 185 | 131 | 5 | 321 | ||||||||||||||||||||||||||||||
| Non-Sustaining project capital expenditure | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Non-sustaining exploration and study costs | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Care and maintenance | — | — | — | 17 | 17 | ||||||||||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Other provisions | — | — | — | — | — | ||||||||||||||||||||||||||||||
| All-in costs | 184 | 185 | 131 | 22 | 338 | ||||||||||||||||||||||||||||||
| Adjusted for non-controlling interests and non gold producing companies (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 184 | 185 | 131 | 22 | 338 | ||||||||||||||||||||||||||||||
| Gold sold - oz (000) | 135 | 135 | 109 | — | 247 | ||||||||||||||||||||||||||||||
| All-in sustaining cost per unit $/oz | 1,365 | 1,365 | 1,201 | — | 1,296 | ||||||||||||||||||||||||||||||
| All-in cost per unit $/oz | 1,366 | 1,366 | 1,201 | — | 1,367 | ||||||||||||||||||||||||||||||
191
For the year ended 31 December 2020
Operations in South Africa (Discontinued operations)
(in $ millions, except as otherwise noted)
| Mponeng | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | |||||||||||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 158 | 158 | 124 | 4 | 287 | ||||||||||||||||||||||||||||||
| By-product revenue | (1) | (1) | — | — | (1) | ||||||||||||||||||||||||||||||
| Inventory change | (1) | (1) | (2) | (4) | (7) | ||||||||||||||||||||||||||||||
| Amortisation of tangible assets | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Amortisation of right of use assets | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Rehabilitation and other non-cash costs | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Retrenchment costs | (1) | (1) | — | — | (2) | ||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue | 155 | 155 | 122 | — | 277 | ||||||||||||||||||||||||||||||
| Adjusted for non-controlling interests, non-gold producing companies | — | — | — | — | — | ||||||||||||||||||||||||||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 155 | 155 | 122 | — | 277 | ||||||||||||||||||||||||||||||
Gold produced – oz (000)(2) | 134 | 134 | 107 | — | 241 | ||||||||||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,164 | 1,164 | 1,131 | — | 1,149 | ||||||||||||||||||||||||||||||
192
For the year ended 31 December 2020
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi Restated | Siguiri | Geita | Africa Other | Subsidiaries Restated | |||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 340 | — | 340 | 280 | 164 | 377 | 542 | (1) | 1,362 | ||||||||||||||||||||
| By-product revenue | (1) | — | (1) | (1) | — | — | (2) | — | (3) | ||||||||||||||||||||
| Cost of sales | 339 | — | 339 | 279 | 164 | 377 | 540 | (1) | 1,359 | ||||||||||||||||||||
| Realised other commodity contracts | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (104) | — | (104) | (74) | (11) | (41) | (124) | — | (250) | ||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | 1 | — | 1 | 1 | — | — | 4 | — | 5 | ||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Lease payment sustaining | 9 | — | 9 | — | — | — | 17 | — | 17 | ||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | 3 | — | 2 | 5 | — | 10 | ||||||||||||||||||||
| Total sustaining capital expenditure | 52 | — | 52 | 60 | 7 | 15 | 80 | 1 | 163 | ||||||||||||||||||||
| All-in sustaining costs | 296 | — | 297 | 269 | 161 | 353 | 522 | — | 1,304 | ||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | (53) | — | — | (53) | ||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 296 | — | 297 | 269 | 161 | 300 | 522 | — | 1,251 | ||||||||||||||||||||
| All-in sustaining costs | 296 | — | 297 | 269 | 161 | 353 | 522 | — | 1,304 | ||||||||||||||||||||
| Non-sustaining project capital expenditure | — | — | — | — | 199 | 15 | 7 | — | 220 | ||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||
| Non-sustaining exploration and study costs | — | — | — | 2 | 2 | 5 | 2 | — | 11 | ||||||||||||||||||||
| Care and maintenance | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | 2 | 3 | 4 | — | 10 | — | — | — | 10 | ||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| All-in costs | 298 | 3 | 301 | 271 | 371 | 373 | 533 | — | 1,546 | ||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | (56) | — | — | (56) | ||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 298 | 3 | 301 | 271 | 371 | 317 | 533 | — | 1,490 | ||||||||||||||||||||
Gold sold – oz (000)(2) | 365 | — | 365 | 274 | 120 | 215 | 639 | — | 1,249 | ||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 809 | — | 810 | 985 | 1,332 | 1,397 | 814 | — | 1,002 | ||||||||||||||||||||
All-in cost per unit – $/oz(3) | 817 | — | 824 | 992 | 3,078 | 1,476 | 831 | — | 1,193 | ||||||||||||||||||||
193
For the year ended 31 December 2020
Operations Africa
(in $ millions, except as otherwise noted)
| AFRICA | AFRICA | ||||||||||||||||||||||||||||
| Kibali | Other | Joint Ventures | Iduapriem | Obuasi Restated | Siguiri | Geita | Africa other | Subsidiaries Restated | |||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 340 | — | 340 | 280 | 164 | 377 | 542 | (1) | 1,362 | ||||||||||||||||||||
| By-product revenue | (1) | — | (1) | (1) | — | — | (2) | — | (3) | ||||||||||||||||||||
| Inventory change | (1) | — | (1) | 1 | 16 | (1) | (12) | — | 3 | ||||||||||||||||||||
| Amortisation of tangible assets | (101) | — | (101) | (74) | (11) | (40) | (108) | — | (232) | ||||||||||||||||||||
| Amortisation of right of use assets | (3) | — | (3) | — | — | (1) | (16) | — | (17) | ||||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Rehabilitation and other non-cash costs | (4) | — | (4) | (6) | (2) | (9) | (5) | — | (22) | ||||||||||||||||||||
| Retrenchment costs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
| Total cash costs net of by-product revenue | 230 | — | 230 | 200 | 166 | 326 | 399 | (1) | 1,092 | ||||||||||||||||||||
Adjusted for non-controlling interests non-gold producing companies and other(1) | — | — | — | — | — | (49) | — | — | (49) | ||||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies and other | 230 | — | 230 | 200 | 166 | 277 | 399 | (1) | 1,043 | ||||||||||||||||||||
Gold produced - oz (000)(2) | 364 | — | 364 | 275 | 127 | 215 | 623 | — | 1,239 | ||||||||||||||||||||
Total cash costs per unit - $/oz(3) | 629 | 0 | 629 | 731 | 1307 | 1293 | 641 | 0 | 841 | ||||||||||||||||||||
194
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate (4) | |||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 147 | 275 | 421 | 283 | 207 | 490 | 203 | — | 1,114 | (3 | ) | |||||||||||||||||||
| Amortisation of tangible and intangible assets | (9 | ) | (41 | ) | (50 | ) | (53 | ) | (14 | ) | (67 | ) | (14 | ) | (2 | ) | (133 | ) | (2 | ) | ||||||||||
| Adjusted for decommissioning amortisation | — | — | — | — | — | — | (2 | ) | 2 | — | (2 | ) | ||||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | — | — | — | — | 62 | ||||||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | — | — | — | — | — | 2 | 2 | — | ||||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||
| Total sustaining capital expenditure | 8 | 42 | 50 | 52 | 12 | 64 | 13 | 3 | 130 | 6 | ||||||||||||||||||||
| All-in sustaining costs | 146 | 276 | 421 | 282 | 205 | 487 | 200 | 5 | 1,113 | 62 | ||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | — | — | — | — | 4 | ||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 146 | 276 | 421 | 282 | 205 | 487 | 200 | 5 | 1,113 | 66 | ||||||||||||||||||||
Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (2 | ) | (2 | ) | (1 | ) | |||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 146 | 276 | 421 | 282 | 205 | 487 | 200 | 3 | 1,111 | 65 | ||||||||||||||||||||
| All-in sustaining costs | 146 | 276 | 421 | 282 | 205 | 487 | 200 | 5 | 1,113 | 62 | ||||||||||||||||||||
| Non-sustaining Project capex | — | — | — | 20 | — | 20 | — | — | 20 | — | ||||||||||||||||||||
| Technology improvements | — | — | — | — | — | — | — | 9 | 9 | 1 | ||||||||||||||||||||
| Non-sustaining exploration and study costs | — | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | — | — | — | — | 9 | ||||||||||||||||||||
| All-in costs | 146 | 276 | 421 | 302 | 205 | 507 | 200 | 14 | 1,142 | 73 | ||||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | — | — | — | — | — | 5 | |||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 146 | 276 | 421 | 302 | 205 | 507 | 200 | 14 | 1,142 | 78 | ||||||||||||||||||||
Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (2 | ) | (2 | ) | (1 | ) | |||||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 146 | 276 | 421 | 302 | 205 | 507 | 200 | 12 | 1,140 | 77 | ||||||||||||||||||||
Gold sold - oz (000)(2) | 91 | 294 | 385 | 224 | 91 | 316 | 192 | — | 892 | — | ||||||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3) | 1,593 | 938 | 1,094 | 1,259 | 2,242 | 1,544 | 1,045 | — | 1,245 | — | ||||||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) - $/oz(3) | 1,593 | 939 | 1,094 | 1,349 | 2,242 | 1,607 | 1,045 | — | 1,278 | — | ||||||||||||||||||||
For the year ended 31 December 20172020
Operations in South AfricaAustralia, America and Projects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | PROJECTS (6) Restated | ||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other Restated | Total Americas | ||||||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 342 | 338 | 25 | 705 | 269 | 391 | 102 | 2 | 764 | — | ||||||||||||||||||||||
| By-product revenue | (1) | (2) | — | (3) | (82) | (17) | — | — | (99) | — | ||||||||||||||||||||||
| Cost of sales | 341 | 336 | 25 | 702 | 187 | 374 | 102 | 2 | 665 | — | ||||||||||||||||||||||
| Realised other commodity contracts | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Amortisation of tangible, intangible and right of use assets | (64) | (94) | (2) | (160) | (26) | (109) | (27) | (1) | (163) | — | ||||||||||||||||||||||
| Adjusted for decommissioning and inventory amortisation | 2 | 1 | — | 3 | (7) | 3 | — | — | (4) | — | ||||||||||||||||||||||
| Corporate administration and marketing expenditure | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Lease payment sustaining | 11 | 10 | 1 | 22 | — | 8 | 2 | — | 10 | — | ||||||||||||||||||||||
| Sustaining exploration and study costs | — | 1 | — | 1 | 2 | 2 | — | — | 4 | — | ||||||||||||||||||||||
| Total sustaining capital expenditure | 50 | 64 | — | 114 | 31 | 103 | 33 | — | 167 | — | ||||||||||||||||||||||
| All-in sustaining costs | 340 | 318 | 24 | 682 | 187 | 381 | 110 | 1 | 679 | — | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (14) | — | — | — | (14) | — | ||||||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 340 | 318 | 24 | 682 | 173 | 381 | 110 | 1 | 665 | — | ||||||||||||||||||||||
| All-in sustaining costs | 340 | 318 | 24 | 682 | 187 | 381 | 110 | 1 | 679 | — | ||||||||||||||||||||||
| Non-sustaining project capital expenditure | 3 | 25 | — | 28 | — | — | — | — | — | 49 | ||||||||||||||||||||||
| Non-sustaining lease payments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Non-sustaining exploration and study costs | 22 | 5 | 17 | 44 | 1 | 6 | 3 | — | 10 | 47 | ||||||||||||||||||||||
| Care and maintenance | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Closure and social responsibility costs not related to current operations | — | — | — | — | — | 8 | 2 | — | 10 | — | ||||||||||||||||||||||
| Other provisions | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| All-in costs | 365 | 348 | 41 | 754 | 188 | 395 | 115 | 1 | 699 | 96 | ||||||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (14) | — | — | — | (14) | — | ||||||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 365 | 348 | 41 | 754 | 174 | 395 | 115 | 1 | 685 | 96 | ||||||||||||||||||||||
Gold sold – oz (000)(2) | 258 | 299 | — | 557 | 186 | 364 | 114 | — | 664 | — | ||||||||||||||||||||||
All-in sustaining cost per unit – $/oz(3) | 1,320 | 1,061 | — | 1,225 | 931 | 1,050 | 953 | — | 1,003 | — | ||||||||||||||||||||||
All-in cost per unit – $/oz(3) | 1,417 | 1,164 | — | 1,356 | 934 | 1,091 | 997 | — | 1,032 | — | ||||||||||||||||||||||
195
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate(4) | ||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 147 | 275 | 421 | 283 | 207 | 490 | 203 | — | 1,114 | (3 | ) | ||||||||||||||||||
| Inventory change | — | — | 1 | — | — | — | (2 | ) | (1 | ) | (2 | ) | — | ||||||||||||||||
| Amortisation of intangible assets | — | (1 | ) | (1 | ) | (1 | ) | — | (1 | ) | — | — | (2 | ) | 1 | ||||||||||||||
| Amortisation of tangible assets | (9 | ) | (40 | ) | (49 | ) | (52 | ) | (14 | ) | (67 | ) | (14 | ) | — | (130 | ) | (3 | ) | ||||||||||
| Rehabilitation and other non-cash costs | 3 | (5 | ) | (3 | ) | (3 | ) | (6 | ) | (9 | ) | (1 | ) | 1 | (12 | ) | — | ||||||||||||
| Retrenchment costs | — | — | — | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||
| Total cash costs | 140 | 229 | 369 | 227 | 186 | 413 | 186 | — | 968 | (6 | ) | ||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | — | — | — | 4 | |||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 140 | 229 | 369 | 227 | 186 | 413 | 186 | — | 968 | (2 | ) | ||||||||||||||||||
Gold produced – oz (000)(2) | 91 | 294 | 386 | 224 | 91 | 315 | 192 | — | 892 | — | |||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,534 | 779 | 958 | 1,014 | 2,044 | 1,311 | 969 | — | 1,085 | — | |||||||||||||||||||
For the year ended 31 December 20172020
Operations in DRC, Ghana, Guinea, MaliAustralia, America and TanzaniaProjects
(in $ millions, except as otherwise noted)
| AUSTRALIA | AMERICAS | ||||||||||||||||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Total Australia | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | Americas other | Total Americas | |||||||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 342 | 338 | 25 | 705 | 269 | 391 | 102 | 2 | 764 | ||||||||||||||||||||||||||
| By-product revenue | (1) | (2) | — | (3) | (82) | (17) | — | — | (99) | ||||||||||||||||||||||||||
| Inventory change | (1) | (1) | — | (2) | (16) | 1 | — | — | (16) | ||||||||||||||||||||||||||
| Amortisation of tangible assets | (54) | (86) | — | (141) | (26) | (100) | (25) | — | (151) | ||||||||||||||||||||||||||
| Amortisation of right of use assets | (10) | (8) | (1) | (18) | — | (8) | (2) | (1) | (11) | ||||||||||||||||||||||||||
| Amortisation of intangible assets | — | — | (1) | (1) | — | (1) | — | — | (1) | ||||||||||||||||||||||||||
| Rehabilitation and other non-cash costs | (2) | (1) | (1) | (4) | (13) | 4 | 3 | (1) | (6) | ||||||||||||||||||||||||||
| Retrenchment costs | — | — | — | — | — | (1) | — | — | (2) | ||||||||||||||||||||||||||
| Total cash costs net of by-product revenue | 274 | 240 | 22 | 536 | 132 | 269 | 77 | — | 478 | ||||||||||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | (10) | — | — | — | (10) | ||||||||||||||||||||||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 274 | 240 | 22 | 536 | 122 | 269 | 77 | — | 468 | ||||||||||||||||||||||||||
Gold produced – oz (000)(2) | 256 | 298 | — | 554 | 173 | 362 | 114 | — | 649 | ||||||||||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,069 | 807 | — | 968 | 699 | 747 | 665 | — | 721 | ||||||||||||||||||||||||||
196
| DRC | MALI | Joint | GHANA | GUINEA | TANZANIA | Continental Africa other | SUBSIDIARIES | ||||||||||||||||||||||
| Kibali | Morila | Sadiola | Ventures | Iduapriem | Obuasi | Siguiri | Geita | ||||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 339 | 34 | 67 | 440 | 210 | (6 | ) | 344 | 519 | 3 | 1,070 | ||||||||||||||||||
| Amortisation of tangible and intangible assets | (120 | ) | (6 | ) | (10 | ) | (136 | ) | (28 | ) | — | (57 | ) | (197 | ) | (3 | ) | (285 | ) | ||||||||||
| Adjusted for decommissioning amortisation | — | 3 | — | 3 | 1 | — | 1 | 2 | — | 4 | |||||||||||||||||||
| Sustaining exploration and study costs | — | — | 1 | 1 | — | — | 8 | 17 | — | 25 | |||||||||||||||||||
| Total sustaining capital expenditure | 77 | 2 | 6 | 85 | 51 | — | 15 | 156 | 1 | 223 | |||||||||||||||||||
| All-in sustaining costs | 296 | 33 | 64 | 393 | 234 | (6 | ) | 311 | 497 | 1 | 1,037 | ||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | (47 | ) | — | — | (47 | ) | |||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 296 | 33 | 64 | 393 | 234 | (6 | ) | 264 | 497 | 1 | 990 | ||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 296 | 33 | 64 | 393 | 234 | (6 | ) | 264 | 497 | 1 | 990 | ||||||||||||||||||
| All-in sustaining costs | 296 | 33 | 64 | 393 | 234 | (6 | ) | 311 | 497 | 1 | 1,037 | ||||||||||||||||||
| Non-sustaining Project capex | 34 | — | 1 | 35 | — | — | 67 | — | — | 67 | |||||||||||||||||||
| Non-sustaining exploration and study costs | 1 | — | — | 1 | — | 1 | — | — | — | 1 | |||||||||||||||||||
| Care and maintenance costs | — | — | — | — | — | 62 | — | — | — | 62 | |||||||||||||||||||
| All-in costs | 331 | 33 | 65 | 429 | 234 | 57 | 378 | 497 | 1 | 1,167 | |||||||||||||||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | — | — | — | — | — | (57 | ) | — | — | (57 | ) | |||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 331 | 33 | 65 | 429 | 234 | 57 | 321 | 497 | 1 | 1,110 | |||||||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 331 | 33 | 65 | 429 | 234 | 57 | 321 | 497 | 1 | 1,110 | |||||||||||||||||||
Gold sold – oz (000)(2) | 272 | 27 | 63 | 362 | 227 | 3 | 332 | 528 | — | 1,090 | |||||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 1,090 | 1,218 | 1,019 | 1,087 | 1,033 | — | 796 | 941 | — | 909 | |||||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,216 | 1,218 | 1,044 | 1,186 | 1,033 | — | 967 | 941 | — | 1,019 | |||||||||||||||||||
For the year ended 31 December 20172020
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS RESTATED | |||||||
| All-in sustaining costs | ||||||||
Cost of sales per segmental information(5) | 340 | 2,829 | ||||||
| By-product revenue | (1) | (105) | ||||||
| Cost of sales | 339 | 2,724 | ||||||
| Realised other commodity contracts | — | 5 | ||||||
| Amortisation of tangible, intangible and right of use assets | (104) | (575) | ||||||
| Adjusted for decommissioning and inventory amortisation | 1 | 4 | ||||||
| Corporate administration and marketing expenditure | — | 67 | ||||||
| Lease payment sustaining | 9 | 52 | ||||||
| Sustaining exploration and study costs | — | 15 | ||||||
| Total sustaining capital expenditure | 52 | 445 | ||||||
| All-in sustaining costs | 297 | 2,740 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (67) | ||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 297 | 2,672 | ||||||
| All-in sustaining costs | 297 | 2,740 | ||||||
| Non-sustaining project capital expenditure | — | 298 | ||||||
| Non-sustaining lease payments | — | 2 | ||||||
| Non-sustaining exploration and study costs | — | 112 | ||||||
| Care and maintenance | — | — | ||||||
| Closure and social responsibility costs not related to current operations | 4 | 29 | ||||||
| Other provisions | — | — | ||||||
| All-in costs | 301 | 3,179 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (70) | ||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 301 | 3,109 | ||||||
Gold sold – oz (000)(2) | 365 | 2,470 | ||||||
All-in sustaining cost per unit – $/oz(3) | 810 | 1,082 | ||||||
All-in cost per unit – $/oz(3) | 824 | 1,259 | ||||||
197
| DRC | MALI | JOINT | GHANA | GUINEA | TANZANIA | Continental Africa other | TOTAL CONTINENTAL AFRICA | ||||||||||||||||||||||
| Kibali | Morila | Sadiola | VENTURES | Iduapriem | Obuasi | Siguiri | Geita | ||||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 339 | 34 | 67 | 440 | 210 | (6 | ) | 344 | 519 | 3 | 1,070 | ||||||||||||||||||
| Inventory change | (4 | ) | — | 1 | (3 | ) | — | — | (7 | ) | 13 | — | 6 | ||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | (1 | ) | — | — | — | (2 | ) | (3 | ) | ||||||||||||||||
| Amortisation of tangible assets | (120 | ) | (6 | ) | (10 | ) | (136 | ) | (28 | ) | — | (57 | ) | (197 | ) | — | (282 | ) | |||||||||||
| Rehabilitation and other non-cash costs | (5 | ) | (1 | ) | — | (6 | ) | 7 | 7 | (5 | ) | (7 | ) | — | 2 | ||||||||||||||
| Total cash costs | 210 | 27 | 58 | 295 | 188 | 1 | 275 | 328 | 1 | 793 | |||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | (41 | ) | — | — | (41 | ) | |||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 210 | 27 | 58 | 295 | 188 | 1 | 234 | 328 | 1 | 752 | |||||||||||||||||||
Gold produced - oz (000) (2) | 268 | 28 | 63 | 360 | 228 | 3 | 323 | 539 | — | 1,094 | |||||||||||||||||||
Total cash costs per unit - $/oz(3) | 784 | 974 | 900 | 819 | 823 | — | 725 | 608 | — | 688 | |||||||||||||||||||
For the year ended 31 December 2017
| Australia | Total Australia | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 260 | 274 | 16 | 550 | 268 | 429 | 153 | 1 | 851 | |||||||||||||||||
| Amortisation of tangible and intangible assets | (34 | ) | (89 | ) | (7 | ) | (130 | ) | (83 | ) | (140 | ) | (50 | ) | — | (273 | ) | |||||||||
| Adjusted for decommissioning amortisation | — | 1 | — | 1 | 1 | (1 | ) | — | — | — | ||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | 1 | 1 | — | — | — | — | — | |||||||||||||||||
| Sustaining exploration and study costs | 2 | 7 | 5 | 14 | 3 | 8 | 6 | 7 | 24 | |||||||||||||||||
| Total sustaining capital expenditure | 62 | 91 | — | 153 | 56 | 134 | 38 | 4 | 232 | |||||||||||||||||
| All-in sustaining costs | 290 | 284 | 15 | 589 | 245 | 431 | 147 | 12 | 835 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | 8 | 8 | (18 | ) | — | — | (11 | ) | (29 | ) | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 290 | 284 | 23 | 597 | 227 | 431 | 147 | 1 | 806 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 290 | 284 | 23 | 597 | 227 | 431 | 147 | 1 | 806 | |||||||||||||||||
| All-in sustaining costs | 290 | 284 | 15 | 589 | 245 | 431 | 147 | 12 | 835 | |||||||||||||||||
| Non-sustaining Project capex | — | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||
| Non-sustaining exploration and study costs | — | — | 10 | 10 | 2 | 7 | — | 28 | 37 | |||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | 12 | 2 | 1 | 15 | |||||||||||||||||
| All-in costs | 290 | 284 | 25 | 599 | 247 | 452 | 149 | 41 | 889 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | 8 | 8 | (19 | ) | — | — | — | (19 | ) | |||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 290 | 284 | 33 | 607 | 228 | 452 | 149 | 41 | 870 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | — | — | |||||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 290 | 284 | 33 | 607 | 228 | 452 | 149 | 41 | 870 | |||||||||||||||||
Gold sold – oz (000)(2) | 241 | 321 | — | 562 | 293 | 428 | 133 | — | 854 | |||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 1,203 | 885 | — | 1,062 | 772 | 1,006 | 1,103 | — | 943 | |||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,203 | 885 | — | 1,080 | 780 | 1,055 | 1,119 | — | 1,018 | |||||||||||||||||
| Australia | Total Australia | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| Total cash costs | ||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 260 | 274 | 16 | 550 | 268 | 429 | 153 | 1 | 851 | |||||||||||||||||
| Inventory change | (2 | ) | (2 | ) | — | (4 | ) | (12 | ) | (3 | ) | — | — | (15 | ) | |||||||||||
| Amortisation of intangible assets | — | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||
| Amortisation of tangible assets | (34 | ) | (89 | ) | (7 | ) | (130 | ) | (83 | ) | (139 | ) | (50 | ) | — | (272 | ) | |||||||||
| Rehabilitation and other non-cash costs | (5 | ) | (2 | ) | (2 | ) | (9 | ) | (11 | ) | — | — | — | (11 | ) | |||||||||||
| Retrenchment costs | — | — | — | — | (2 | ) | (3 | ) | (1 | ) | 1 | (5 | ) | |||||||||||||
| Total cash costs | 219 | 181 | 7 | 407 | 160 | 284 | 101 | 2 | 547 | |||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | 8 | 8 | (12 | ) | — | — | — | (12 | ) | |||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 219 | 181 | 15 | 415 | 148 | 284 | 101 | 2 | 535 | |||||||||||||||||
Gold produced – oz (000) (2) | 238 | 322 | — | 559 | 283 | 424 | 133 | — | 840 | |||||||||||||||||
Total cash costs per unit – $/oz(3) | 919 | 564 | — | 743 | 522 | 671 | 764 | — | 638 | |||||||||||||||||
AngloGold Ashanti operations – Total
(in $ millions, except as otherwise noted)
| JOINT VENTURES | SUBSIDIARIES EXCLUDING DISCONTINUED OPERATIONS RESTATED | |||||||
| Total cash costs | ||||||||
Cost of sales per segmental information(5) | 340 | 2,829 | ||||||
| By-product revenue | (1) | (105) | ||||||
| Inventory change | (1) | (16) | ||||||
| Amortisation of tangible assets | (101) | (526) | ||||||
| Amortisation of right of use assets | (3) | (47) | ||||||
| Amortisation of intangible assets | — | (3) | ||||||
| Rehabilitation and other non-cash costs | (4) | (32) | ||||||
| Retrenchment costs | — | (2) | ||||||
| Total cash costs net of by-product revenue | 230 | 2,101 | ||||||
Adjusted for non-controlling interests and non-gold producing companies(1) | — | (59) | ||||||
| Total cash costs net of by-product revenue adjusted for non-controlling interests and non-gold producing companies | 230 | 2,042 | ||||||
Gold produced – oz (000)(2) | 364 | 2,442 | ||||||
Total cash costs (adjusted) per unit – $/oz(3) | 629 | 836 | ||||||
198
| JOINT VENTURES | SUBSIDIARIES | |||
| All-in sustaining costs | ||||
| Cost of sales per segmental information | 440 | 3,582 | ||
| Amortisation of tangible and intangible assets | (136 | ) | (823 | ) |
| Adjusted for decommissioning amortisation | 3 | 3 | ||
| Corporate administration and marketing related to current operations | — | 63 | ||
| Inventory write-down to net realisable value and other stockpile adjustments | — | 3 | ||
| Sustaining exploration and study costs | 1 | 64 | ||
| Total sustaining capital expenditure | 85 | 744 | ||
| All-in sustaining costs | 393 | 3,636 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (64 | ) | |
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 393 | 3,572 | ||
| Adjusted for stockpile write-offs | — | (3 | ) | |
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 393 | 3,569 | ||
| All-in sustaining costs | 393 | 3,636 | ||
| Non-sustaining Project capex | 35 | 89 | ||
| Technology improvements | — | 10 | ||
| Non-sustaining exploration and study costs | 1 | 49 | ||
| Care and maintenance costs | — | 62 | ||
| Corporate and social responsibility costs not related to current operations | — | 24 | ||
| All-in costs | 429 | 3,870 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (63 | ) | |
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 429 | 3,807 | ||
| Adjusted for stockpile write-offs | — | (3 | ) | |
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 429 | 3,804 | ||
| Gold sold – oz (000) | 362 | 3,399 | ||
| All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz | 1,087 | 1,050 | ||
| All-in cost per unit (excluding stockpile write-offs) – $/oz | 1,186 | 1,119 | ||
| JOINT VENTURES | SUBSIDIARIES | |||
| Total cash costs | ||||
| Cost of sales per segmental information | 440 | 3,582 | ||
| Inventory change | (3 | ) | (15 | ) |
| Amortisation of intangible assets | — | (6 | ) | |
| Amortisation of tangible assets | (136 | ) | (817 | ) |
| Rehabilitation and other non-cash costs | (6 | ) | (29 | ) |
| Retrenchment costs | — | (6 | ) | |
| Total cash costs | 295 | 2,709 | ||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | (41 | ) | |
| Associates and equity accounted joint ventures' share of total cash costs | — | — | ||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 295 | 2,668 | ||
| Gold produced – oz (000) | 360 | 3,384 | ||
| Total cash costs (adjusted) per unit – $/oz | 819 | 789 | ||
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate (4) | ||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 144 | 255 | 400 | 259 | 198 | 457 | 185 | (1 | ) | 1,041 | 5 | ||||||||||||||||||
| Amortisation of tangible and intangible assets | (20 | ) | (49 | ) | (69 | ) | (55 | ) | (28 | ) | (83 | ) | (14 | ) | (1 | ) | (167 | ) | (5 | ) | |||||||||
| Adjusted for decommissioning amortisation | — | — | (1 | ) | — | — | — | (2 | ) | 3 | — | — | |||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | — | — | — | — | 59 | |||||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | — | — | — | — | — | 5 | 5 | — | |||||||||||||||||||
| Total sustaining capital expenditure | 16 | 41 | 57 | 52 | 25 | 77 | 17 | 5 | 156 | 4 | |||||||||||||||||||
| All-in sustaining costs | 140 | 247 | 387 | 256 | 195 | 451 | 186 | 11 | 1,035 | 63 | |||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 140 | 247 | 387 | 256 | 195 | 451 | 186 | 11 | 1,035 | 63 | |||||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (5 | ) | (5 | ) | — | |||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 140 | 247 | 387 | 256 | 195 | 451 | 186 | 6 | 1,030 | 63 | |||||||||||||||||||
| All-in sustaining costs | 140 | 247 | 387 | 256 | 195 | 451 | 186 | 11 | 1,035 | 63 | |||||||||||||||||||
| Non-sustaining Project capex | — | 2 | 2 | 24 | — | 24 | — | (1 | ) | 25 | — | ||||||||||||||||||
| Technology improvements | — | — | — | — | — | — | — | 14 | 14 | — | |||||||||||||||||||
| Non-sustaining exploration and study costs | — | — | — | — | — | — | — | — | — | 1 | |||||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | — | — | — | — | 25 | |||||||||||||||||||
| All-in costs | 140 | 249 | 389 | 280 | 195 | 475 | 186 | 24 | 1,074 | 89 | |||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 140 | 249 | 389 | 280 | 195 | 475 | 186 | 24 | 1,074 | 89 | |||||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (5 | ) | (5 | ) | — | |||||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 140 | 249 | 389 | 280 | 195 | 475 | 186 | 19 | 1,069 | 89 | |||||||||||||||||||
Gold sold - oz (000)(2) | 91 | 279 | 369 | 253 | 146 | 398 | 185 | — | 953 | — | |||||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3) | 1,555 | 884 | 1,049 | 1,011 | 1,345 | 1,133 | 1,004 | — | 1,081 | — | |||||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) - $/oz(3) | 1,555 | 890 | 1,053 | 1,105 | 1,345 | 1,193 | 1,004 | — | 1,122 | — | |||||||||||||||||||
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate (4) | ||||||||||||||||||||
| Total cash costs | |||||||||||||||||||||||||||||
| Cost of sales per segmental information | 144 | 255 | 400 | 259 | 198 | 457 | 185 | (1 | ) | 1,041 | 5 | ||||||||||||||||||
| Inventory change | — | 1 | 1 | 1 | — | 1 | (1 | ) | — | 1 | — | ||||||||||||||||||
| Amortisation of intangible assets | — | (2 | ) | (2 | ) | (1 | ) | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (6 | ) | (2 | ) | ||||||||||
| Amortisation of tangible assets | (19 | ) | (48 | ) | (67 | ) | (54 | ) | (27 | ) | (81 | ) | (13 | ) | — | (161 | ) | (3 | ) | ||||||||||
| Rehabilitation and other non-cash costs | (2 | ) | 1 | (2 | ) | (4 | ) | (1 | ) | (5 | ) | (3 | ) | 3 | (7 | ) | — | ||||||||||||
| Retrenchment costs | (2 | ) | (3 | ) | (5 | ) | (3 | ) | (2 | ) | (5 | ) | — | (1 | ) | (11 | ) | — | |||||||||||
| Total cash costs | 121 | 204 | 325 | 198 | 167 | 365 | 167 | — | 857 | — | |||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 121 | 204 | 325 | 198 | 167 | 365 | 167 | — | 857 | — | |||||||||||||||||||
Gold produced – oz (000) (2) | 91 | 280 | 371 | 254 | 146 | 399 | 186 | — | 957 | — | |||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,324 | 729 | 875 | 779 | 1,148 | 914 | 899 | — | 896 | — | |||||||||||||||||||
| DRC | MALI | JOINT | GHANA | GUINEA | TANZANIA | Continental Africa other | SUBSIDIARIES | |||||||||||||||||||
| Kibali | Morila | Sadiola | VENTURES | Iduapriem | Obuasi | Siguiri | Geita | |||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||
| Cost of sales per segmental information | 292 | 32 | 81 | 406 | 219 | 1 | 257 | 447 | 1 | 925 | ||||||||||||||||
| Amortisation of tangible and intangible assets | (96 | ) | (7 | ) | (11 | ) | (114 | ) | (23 | ) | — | (31 | ) | (195 | ) | (2 | ) | (251 | ) | |||||||
| Adjusted for decommissioning amortisation | — | 2 | — | 2 | — | — | 1 | 3 | 1 | 5 | ||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | 1 | — | 1 | — | — | — | — | — | — | ||||||||||||||||
| Sustaining exploration and study costs | — | — | 1 | 1 | — | — | 3 | 27 | — | 30 | ||||||||||||||||
| Total sustaining capital expenditure | 32 | 1 | 3 | 36 | 8 | — | 38 | 119 | — | 165 | ||||||||||||||||
| All-in sustaining costs | 228 | 29 | 74 | 332 | 204 | 1 | 268 | 401 | — | 874 | ||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | (40 | ) | — | — | (40 | ) | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 228 | 29 | 74 | 332 | 204 | 1 | 228 | 401 | — | 834 | ||||||||||||||||
| Adjusted for stockpile write-offs | — | (1 | ) | — | (1 | ) | — | — | — | — | — | — | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 228 | 28 | 74 | 331 | 204 | 1 | 228 | 401 | — | 834 | ||||||||||||||||
| All-in sustaining costs | 228 | 29 | 74 | 332 | 204 | 1 | 268 | 401 | — | 874 | ||||||||||||||||
| Non-sustaining Project capex | 60 | — | 3 | 63 | — | 6 | 21 | — | — | 27 | ||||||||||||||||
| Non-sustaining exploration and study costs | 2 | — | — | 2 | — | 4 | — | — | (1 | ) | 3 | |||||||||||||||
| Care and maintenance costs | — | — | — | — | — | 70 | — | — | — | 70 | ||||||||||||||||
| All-in costs | 290 | 29 | 77 | 397 | 204 | 81 | 289 | 401 | (1 | ) | 974 | |||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | (43 | ) | — | — | (43 | ) | ||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 290 | 29 | 77 | 397 | 204 | 81 | 246 | 401 | (1 | ) | 931 | |||||||||||||||
| Adjusted for stockpile write-offs | — | (1 | ) | — | (1 | ) | — | — | — | — | — | — | ||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 290 | 28 | 77 | 396 | 204 | 81 | 246 | 401 | (1 | ) | 931 | |||||||||||||||
Gold sold – oz (000)(2) | 256 | 21 | 70 | 347 | 215 | 3 | 249 | 474 | — | 941 | ||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 893 | 1,337 | 1,066 | 955 | 950 | 440 | 915 | 844 | — | 886 | ||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,132 | 1,337 | 1,116 | 1,141 | 950 | 29,420 | 985 | 844 | — | 989 | ||||||||||||||||
| DRC | MALI | JOINT | GHANA | GUINEA | TANZANIA | Continental Africa other | SUBSIDIARIES | ||||||||||||||||||||||
| Kibali | Morila | Sadiola | VENTURES | Iduapriem | Obuasi | Siguiri | Geita | ||||||||||||||||||||||
| Cash costs | |||||||||||||||||||||||||||||
| Cost of sales per segmental information | 292 | 32 | 81 | 406 | 219 | 1 | 257 | 447 | 1 | 925 | |||||||||||||||||||
| Inventory change | 5 | — | — | 5 | — | — | 14 | 7 | 1 | 22 | |||||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | — | — | — | (2 | ) | (2 | ) | |||||||||||||||||
| Amortisation of tangible assets | (96 | ) | (7 | ) | (10 | ) | (114 | ) | (23 | ) | — | (31 | ) | (195 | ) | — | (249 | ) | |||||||||||
| Rehabilitation and other non-cash costs | (6 | ) | (1 | ) | (1 | ) | (9 | ) | (2 | ) | (1 | ) | (1 | ) | (5 | ) | 1 | (8 | ) | ||||||||||
| Total cash costs | 195 | 24 | 70 | 288 | 194 | 1 | 239 | 253 | 1 | 688 | |||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | (36 | ) | — | — | (36 | ) | |||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 195 | 24 | 70 | 288 | 194 | 1 | 203 | 253 | 1 | 652 | |||||||||||||||||||
Gold produced - oz (000) (2) | 264 | 22 | 70 | 356 | 214 | 3 | 260 | 478 | — | 955 | |||||||||||||||||||
Total cash costs per unit - $/oz(3) | 740 | 1,123 | 991 | 812 | 908 | 167 | 784 | 530 | — | 682 | |||||||||||||||||||
| Australia | Total Australia | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||
| Cost of sales per segmental information | 242 | 277 | 21 | 540 | 250 | 364 | 134 | 4 | 752 | |||||||||||||||||
| Amortisation of tangible and intangible assets | (32 | ) | (83 | ) | (11 | ) | (126 | ) | (77 | ) | (132 | ) | (51 | ) | — | (260 | ) | |||||||||
| Adjusted for decommissioning amortisation | 1 | 2 | — | 3 | 1 | 1 | — | — | 2 | |||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | 1 | — | (1 | ) | — | ||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | 7 | 7 | — | — | — | — | — | |||||||||||||||||
| Sustaining exploration and study costs | 1 | 12 | 8 | 21 | 2 | 2 | 7 | 7 | 18 | |||||||||||||||||
| Total sustaining capital expenditure | 32 | 76 | 1 | 109 | 60 | 121 | 43 | 1 | 225 | |||||||||||||||||
| All-in sustaining costs | 244 | 284 | 26 | 554 | 236 | 357 | 133 | 11 | 737 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | 8 | 8 | (18 | ) | — | — | (8 | ) | (26 | ) | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 244 | 284 | 34 | 562 | 218 | 357 | 133 | 3 | 711 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | (8 | ) | (8 | ) | (4 | ) | — | (1 | ) | 1 | (4 | ) | ||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 244 | 284 | 26 | 554 | 214 | 357 | 132 | 4 | 707 | |||||||||||||||||
| All-in sustaining costs | 244 | 284 | 26 | 554 | 236 | 357 | 133 | 11 | 737 | |||||||||||||||||
| Non-sustaining Project capex | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||
| Non-sustaining exploration and study costs | — | — | 7 | 7 | — | 6 | 1 | 36 | 43 | |||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | 11 | 3 | 1 | 15 | |||||||||||||||||
| All-in costs | 244 | 284 | 33 | 561 | 236 | 375 | 137 | 48 | 796 | |||||||||||||||||
| Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | 8 | 8 | (17 | ) | — | — | (1 | ) | (18 | ) | ||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 244 | 284 | 41 | 569 | 219 | 375 | 137 | 47 | 778 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | (8 | ) | (8 | ) | (4 | ) | — | (1 | ) | 1 | (4 | ) | ||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 244 | 284 | 33 | 561 | 215 | 375 | 136 | 48 | 774 | |||||||||||||||||
Gold sold – oz (000)(2) | 226 | 293 | — | 519 | 277 | 400 | 130 | — | 807 | |||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 1,080 | 970 | — | 1,067 | 773 | 893 | 1,020 | — | 875 | |||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,080 | 970 | — | 1,081 | 774 | 938 | 1,044 | — | 959 | |||||||||||||||||
| Australia | Total Australia | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| Cash costs | ||||||||||||||||||||||||||
| Cost of sales per segmental information | 242 | 277 | 21 | 540 | 250 | 364 | 134 | 4 | 752 | |||||||||||||||||
| Inventory change | — | — | 1 | 1 | 7 | 5 | 1 | — | 13 | |||||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | (7 | ) | (3 | ) | — | (10 | ) | ||||||||||||||
| Amortisation of tangible assets | (32 | ) | (83 | ) | (11 | ) | (126 | ) | (77 | ) | (125 | ) | (48 | ) | — | (250 | ) | |||||||||
| Rehabilitation and other non-cash costs | 1 | (10 | ) | (2 | ) | (11 | ) | (8 | ) | (7 | ) | (1 | ) | — | (16 | ) | ||||||||||
| Retrenchment costs | — | — | — | — | (1 | ) | (1 | ) | — | (1 | ) | (3 | ) | |||||||||||||
| Total cash costs | 211 | 184 | 9 | 404 | 171 | 229 | 83 | 3 | 486 | |||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | 8 | 8 | (13 | ) | — | — | — | (13 | ) | |||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 211 | 184 | 17 | 412 | 158 | 229 | 83 | 3 | 473 | |||||||||||||||||
Gold produced – oz (000) (2) | 228 | 292 | — | 520 | 281 | 407 | 131 | — | 820 | |||||||||||||||||
Total cash costs per unit – $/oz(3) | 926 | 630 | — | 793 | 563 | 562 | 634 | — | 578 | |||||||||||||||||
| JOINT VENTURES | SUBSIDIARIES | |||
| All-in sustaining costs | ||||
| Cost of sales per segmental information | 406 | 3,263 | ||
| Amortisation of tangible and intangible assets | (114 | ) | (809 | ) |
| Adjusted for decommissioning amortisation | 2 | 10 | ||
| Corporate administration and marketing related to current operations | — | 59 | ||
| Inventory writedown to net realisable value and other stockpile adjustments | 1 | 12 | ||
| Sustaining exploration and study costs | 1 | 69 | ||
| Total sustaining capital expenditure | 36 | 659 | ||
| All-in sustaining costs | 332 | 3,263 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (58 | ) | |
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 332 | 3,205 | ||
| Adjusted for stockpile write-offs | (1 | ) | (17 | ) |
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 331 | 3,188 | ||
| All-in sustaining costs | 332 | 3,263 | ||
| Non-sustaining Project capex | 63 | 53 | ||
| Technology improvements | — | 14 | ||
| Non-sustaining exploration and study costs | 2 | 54 | ||
| Care and maintenance costs | — | 70 | ||
| Corporate and social responsibility costs not related to current operations | — | 40 | ||
| All-in costs | 397 | 3,494 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (53 | ) | |
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 397 | 3,441 | ||
| Adjusted for stockpile write-offs | (1 | ) | (17 | ) |
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 396 | 3,424 | ||
| Gold sold – oz (000) | 347 | 3,220 | ||
| All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz | 955 | 990 | ||
| All-in cost per unit (excluding stockpile write-offs) – $/oz | 1,141 | 1,063 | ||
| JOINT VENTURES | SUBSIDIARIES | |||
| Cash costs | ||||
| Cost of sales per segmental information | 406 | 3,263 | ||
| Inventory change | 5 | 38 | ||
| Amortisation of intangible assets | — | (20 | ) | |
| Amortisation of tangible assets | (114 | ) | (789 | ) |
| Rehabilitation and other non-cash costs | (9 | ) | (43 | ) |
| Retrenchment costs | — | (14 | ) | |
| Total cash costs | 288 | 2,435 | ||
| Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | (41 | ) | |
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 288 | 2,394 | ||
| Gold produced – oz (000) | 356 | 3,250 | ||
| Total cash costs (adjusted) per unit – $/oz | 812 | 737 | ||
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate (4) | ||||||||||||||||||||
| All-in sustaining costs | |||||||||||||||||||||||||||||
Cost of sales per segmental information(5) | 148 | 260 | 408 | 251 | 230 | 481 | 194 | — | 1,083 | (2 | ) | ||||||||||||||||||
| Amortisation of tangible and intangible assets | (24 | ) | (47 | ) | (71 | ) | (53 | ) | (40 | ) | (93 | ) | (17 | ) | (1 | ) | (182 | ) | (7 | ) | |||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | — | — | — | — | 77 | |||||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | — | — | — | — | — | 1 | 1 | (1 | ) | ||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | — | — | — | — | — | — | 1 | |||||||||||||||||||
| Total sustaining capital expenditure | 20 | 45 | 65 | 59 | 28 | 87 | 17 | 9 | 178 | 3 | |||||||||||||||||||
| All-in sustaining costs | 144 | 258 | 402 | 257 | 218 | 475 | 194 | 9 | 1,080 | 71 | |||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | — | — | — | 9 | |||||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 144 | 258 | 402 | 257 | 218 | 475 | 194 | 9 | 1,080 | 80 | |||||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 144 | 258 | 402 | 257 | 218 | 475 | 194 | 8 | 1,079 | 80 | |||||||||||||||||||
| All-in sustaining costs | 144 | 258 | 402 | 257 | 218 | 475 | 194 | 9 | 1,080 | 71 | |||||||||||||||||||
| Non-sustaining Project capex | — | 2 | 2 | 26 | — | 26 | — | — | 28 | — | |||||||||||||||||||
| Technology improvements | — | — | — | — | — | — | — | 16 | 16 | (1 | ) | ||||||||||||||||||
| Non-sustaining exploration and study costs | — | — | — | — | — | — | — | — | — | 1 | |||||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | — | — | — | — | 17 | |||||||||||||||||||
| All-in costs | 144 | 260 | 404 | 283 | 218 | 501 | 194 | 25 | 1,124 | 88 | |||||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | — | — | — | 8 | |||||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 144 | 260 | 404 | 283 | 218 | 501 | 194 | 25 | 1,124 | 96 | |||||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 144 | 260 | 404 | 283 | 218 | 501 | 194 | 24 | 1,123 | 96 | |||||||||||||||||||
Gold sold - oz (000)(2) | 118 | 254 | 371 | 219 | 209 | 428 | 193 | — | 993 | — | |||||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 1,226 | 1,018 | 1,084 | 1,170 | 1,044 | 1,108 | 1,006 | — | 1,088 | — | |||||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,226 | 1,024 | 1,088 | 1,290 | 1,044 | 1,170 | 1,006 | — | 1,131 | — | |||||||||||||||||||
| Kopanang | Moab Khotsong | Vaal River Operations | Mponeng | Tau Tona | West Wits Operations | Surface Operations | South Africa other | Total South Africa (Operations) | Corporate (4) | ||||||||||||||||||||
| Cash costs | |||||||||||||||||||||||||||||
| Cost of sales per segmental information | 148 | 260 | 408 | 251 | 230 | 481 | 194 | — | 1,083 | (2 | ) | ||||||||||||||||||
| Inventory change | — | — | — | — | — | — | — | — | — | 1 | |||||||||||||||||||
| Amortisation of intangible assets | (2 | ) | (5 | ) | (7 | ) | (4 | ) | (4 | ) | (8 | ) | (2 | ) | (1 | ) | (18 | ) | (3 | ) | |||||||||
| Amortisation of tangible assets | (22 | ) | (42 | ) | (64 | ) | (49 | ) | (35 | ) | (84 | ) | (15 | ) | (1 | ) | (164 | ) | (4 | ) | |||||||||
| Rehabilitation and other non-cash costs | (3 | ) | (8 | ) | (11 | ) | (5 | ) | (4 | ) | (9 | ) | (1 | ) | 1 | (20 | ) | — | |||||||||||
| Retrenchment costs | (2 | ) | (3 | ) | (4 | ) | (2 | ) | (2 | ) | (4 | ) | — | 1 | (7 | ) | (1 | ) | |||||||||||
| Total cash costs | 119 | 202 | 322 | 191 | 185 | 376 | 176 | — | 874 | (9 | ) | ||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | — | — | — | 9 | |||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 119 | 202 | 322 | 191 | 185 | 376 | 176 | — | 874 | — | |||||||||||||||||||
Gold produced - oz (000) (2) | 117 | 254 | 371 | 219 | 209 | 428 | 193 | — | 992 | — | |||||||||||||||||||
Total cash costs per unit – $/oz(3) | 1,014 | 798 | 867 | 874 | 883 | 879 | 912 | — | 881 | — | |||||||||||||||||||
| DRC | MALI | JOINT | GHANA | GUINEA | TANZANIA | Continental Africa other | SUBSIDIARIES | |||||||||||||||||||||
| Kibali | Morila | Sadiola | VENTURES | Iduapriem | Obuasi | Siguiri | Geita | |||||||||||||||||||||
| All-in sustaining costs | ||||||||||||||||||||||||||||
| Cost of sales per segmental information | 266 | 45 | 67 | 378 | 219 | 64 | 280 | 404 | 2 | 969 | ||||||||||||||||||
| Amortisation of tangible and intangible assets | (87 | ) | (12 | ) | (9 | ) | (108 | ) | (32 | ) | (22 | ) | (26 | ) | (148 | ) | (3 | ) | (231 | ) | ||||||||
| Adjusted for decommissioning amortisation | — | 2 | 1 | 3 | — | 4 | 2 | 3 | — | 9 | ||||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | (2 | ) | (2 | ) | — | — | — | — | — | — | ||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | 2 | — | 2 | 2 | — | — | 3 | — | 5 | ||||||||||||||||||
| Sustaining exploration and study costs | — | — | — | — | 2 | 17 | 6 | 6 | (1 | ) | 30 | |||||||||||||||||
| Total sustaining capital expenditure | 7 | 5 | 4 | 16 | 15 | 3 | 29 | 116 | 1 | 164 | ||||||||||||||||||
| All-in sustaining costs | 186 | 42 | 61 | 289 | 206 | 66 | 291 | 384 | (1 | ) | 946 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | (43 | ) | — | (1 | ) | (44 | ) | |||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 186 | 42 | 61 | 289 | 206 | 66 | 248 | 384 | (2 | ) | 902 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | (2 | ) | — | (2 | ) | (12 | ) | — | — | (3 | ) | — | (15 | ) | |||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 186 | 40 | 61 | 287 | 194 | 66 | 248 | 381 | (2 | ) | 887 | |||||||||||||||||
| All-in sustaining costs | 186 | 42 | 61 | 289 | 206 | 66 | 291 | 384 | (1 | ) | 946 | |||||||||||||||||
| Non-sustaining Project capex | 117 | — | (2 | ) | 115 | — | 20 | — | — | — | 20 | |||||||||||||||||
| Non-sustaining exploration and study costs | 1 | — | — | 1 | — | — | 1 | — | — | 1 | ||||||||||||||||||
| Care and maintenance costs | — | — | — | — | — | 67 | — | — | — | 67 | ||||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||
| All-in costs | 304 | 42 | 59 | 405 | 206 | 154 | 292 | 384 | (1 | ) | 1,035 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | — | — | (44 | ) | — | — | (44 | ) | ||||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 304 | 42 | 59 | 405 | 206 | 154 | 248 | 384 | (1 | ) | 991 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | (2 | ) | — | (2 | ) | (12 | ) | — | — | (3 | ) | — | (15 | ) | |||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 304 | 40 | 59 | 403 | 194 | 154 | 248 | 381 | (1 | ) | 976 | |||||||||||||||||
Gold sold - oz (000)(2) | 290 | 49 | 69 | 408 | 190 | 56 | 256 | 531 | — | 1,033 | ||||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit – $/oz(3) | 642 | 815 | 886 | 704 | 1,020 | 1,185 | 965 | 717 | — | 859 | ||||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) – $/oz(3) | 1,051 | 815 | 852 | 989 | 1,020 | 2,750 | 969 | 717 | — | 944 | ||||||||||||||||||
| DRC | MALI | JOINT | GHANA | GUINEA | TANZANIA | Continental Africa other | SUBSIDIARIES | ||||||||||||||||||||||
| Kibali | Morila | Sadiola | VENTURES | Iduapriem | Obuasi | Siguiri | Geita | ||||||||||||||||||||||
| Cash costs | |||||||||||||||||||||||||||||
| Cost of sales per segmental information | 266 | 45 | 67 | 378 | 219 | 64 | 280 | 404 | 2 | 969 | |||||||||||||||||||
| Inventory change | — | — | — | — | 1 | (3 | ) | (6 | ) | (6 | ) | — | (14 | ) | |||||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | — | — | — | (2 | ) | (2 | ) | |||||||||||||||||
| Amortisation of tangible assets | (87 | ) | (12 | ) | (8 | ) | (108 | ) | (32 | ) | (22 | ) | (26 | ) | (148 | ) | (1 | ) | (229 | ) | |||||||||
| Rehabilitation and other non-cash costs | (3 | ) | — | (1 | ) | (4 | ) | 4 | 12 | 1 | 3 | (1 | ) | 19 | |||||||||||||||
| Retrenchment costs | — | 1 | — | 1 | — | — | — | — | — | — | |||||||||||||||||||
| Total cash costs | 176 | 34 | 57 | 267 | 192 | 51 | 248 | 253 | (1 | ) | 743 | ||||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | — | — | (37 | ) | — | — | (37 | ) | |||||||||||||||||
Associates and equity accounted joint ventures' share of total cash costs(2) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 176 | 34 | 57 | 267 | 192 | 51 | 211 | 253 | (1 | ) | 706 | ||||||||||||||||||
Gold produced - oz (000) (2) | 289 | 49 | 69 | 407 | 193 | 53 | 255 | 527 | — | 1,028 | |||||||||||||||||||
Total cash costs per unit - $/oz(3) | 609 | 698 | 818 | 655 | 995 | 966 | 827 | 480 | — | 687 | |||||||||||||||||||
| Australia | TOTAL AUSTRALIA | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| All-in sustaining costs | �� | |||||||||||||||||||||||||
| Cost of sales per segmental information | 239 | 266 | 20 | 525 | 244 | 335 | 137 | 3 | 719 | |||||||||||||||||
| Amortisation of tangible and intangible assets | (25 | ) | (88 | ) | (4 | ) | (117 | ) | (58 | ) | (125 | ) | (57 | ) | — | (240 | ) | |||||||||
| Adjusted for decommissioning amortisation | — | 3 | — | 3 | 1 | — | — | (1 | ) | — | ||||||||||||||||
| Corporate administration and marketing related to current operations | — | — | — | — | — | 1 | — | — | 1 | |||||||||||||||||
| Inventory writedown to net realisable value and other stockpile adjustments | — | — | — | — | — | 1 | 4 | — | 5 | |||||||||||||||||
| Sustaining exploration and study costs | 2 | 8 | 5 | 15 | 3 | 2 | 2 | 9 | 16 | |||||||||||||||||
| Total sustaining capital expenditure | 29 | 49 | — | 78 | 67 | 89 | 33 | 1 | 190 | |||||||||||||||||
| All-in sustaining costs | 245 | 238 | 21 | 504 | 257 | 303 | 119 | 12 | 691 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (19 | ) | — | — | (10 | ) | (29 | ) | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 245 | 238 | 21 | 504 | 238 | 303 | 119 | 2 | 662 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | (1 | ) | (4 | ) | — | (5 | ) | ||||||||||||||
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 245 | 238 | 21 | 504 | 238 | 302 | 115 | 2 | 657 | |||||||||||||||||
| All-in sustaining costs | 245 | 238 | 21 | 504 | 257 | 303 | 119 | 12 | 691 | |||||||||||||||||
| Non-sustaining Project capex | — | — | — | — | — | — | — | 6 | 6 | |||||||||||||||||
| Non-sustaining exploration and study costs | — | — | 6 | 6 | — | 2 | — | 51 | 53 | |||||||||||||||||
| Corporate and social responsibility costs not related to current operations | — | — | — | — | — | 7 | — | 1 | 8 | |||||||||||||||||
| All-in costs | 245 | 238 | 27 | 510 | 257 | 312 | 119 | 70 | 758 | |||||||||||||||||
Adjusted for non-controlling interests and non -gold producing companies(1) | — | — | — | — | (19 | ) | — | — | — | (19 | ) | |||||||||||||||
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 245 | 238 | 27 | 510 | 238 | 312 | 119 | 70 | 739 | |||||||||||||||||
| Adjusted for stockpile write-offs | — | — | — | — | — | (1 | ) | (4 | ) | — | (5 | ) | ||||||||||||||
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 245 | 238 | 27 | 510 | 238 | 311 | 115 | 70 | 734 | |||||||||||||||||
Gold sold - oz (000)(2) | 221 | 354 | — | 575 | 273 | 423 | 133 | — | 829 | |||||||||||||||||
All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz(3) | 1,110 | 671 | — | 875 | 873 | 712 | 861 | — | 792 | |||||||||||||||||
All-in cost per unit (excluding stockpile write-offs) - $/oz(3) | 1,110 | 671 | — | 886 | 874 | 733 | 865 | — | 885 | |||||||||||||||||
| Australia | TOTAL AUSTRALIA | ARGENTINA | Brazil | Americas other | TOTAL AMERICAS | |||||||||||||||||||||
| Sunrise Dam | Tropicana | Australia other | Cerro Vanguardia | AngloGold Ashanti Mineração | Serra Grande | |||||||||||||||||||||
| Cash costs | ||||||||||||||||||||||||||
| Cost of sales per segmental information | 239 | 266 | 20 | 525 | 244 | 335 | 137 | 3 | 719 | |||||||||||||||||
| Inventory change | (3 | ) | (6 | ) | (2 | ) | (11 | ) | 4 | — | (3 | ) | — | 1 | ||||||||||||
| Amortisation of intangible assets | — | — | — | — | — | (12 | ) | (5 | ) | — | (17 | ) | ||||||||||||||
| Amortisation of tangible assets | (25 | ) | (88 | ) | (4 | ) | (117 | ) | (58 | ) | (113 | ) | (52 | ) | — | (223 | ) | |||||||||
| Rehabilitation and other non-cash costs | (1 | ) | (3 | ) | — | (4 | ) | (1 | ) | 10 | 7 | (1 | ) | 15 | ||||||||||||
| Retrenchment costs | — | — | — | — | (1 | ) | (2 | ) | — | — | (3 | ) | ||||||||||||||
| Total cash costs | 210 | 169 | 14 | 393 | 188 | 218 | 84 | 2 | 492 | |||||||||||||||||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | — | — | — | (14 | ) | — | — | — | (14 | ) | |||||||||||||||
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 210 | 169 | 14 | 393 | 174 | 218 | 84 | 2 | 478 | |||||||||||||||||
Gold produced - oz (000) (2) | 216 | 344 | — | 560 | 278 | 421 | 132 | — | 831 | |||||||||||||||||
Total cash costs per unit - $/oz(3) | 970 | 492 | — | 702 | 625 | 518 | 635 | — | 576 | |||||||||||||||||
| JOINT VENTURES | SUBSIDIARIES | |||
| All-in sustaining costs | ||||
| Cost of sales per segmental information | 378 | 3,294 | ||
| Amortisation of tangible and intangible assets | (108 | ) | (777 | ) |
| Adjusted for decommissioning amortisation | 3 | 12 | ||
| Corporate administration and marketing related to current operations | (2 | ) | 78 | |
| Inventory writedown to net realisable value and other stockpile adjustments | 2 | 10 | ||
| Sustaining exploration and study costs | — | 62 | ||
| Total sustaining capital expenditure | 16 | 613 | ||
| All-in sustaining costs | 289 | 3,292 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (64 | ) | |
| All-in sustaining costs adjusted for non-controlling interests and non-gold producing companies | 289 | 3,228 | ||
| Adjusted for stockpile write-offs | (2 | ) | (21 | ) |
| All-in sustaining costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 287 | 3,207 | ||
| All-in sustaining costs | 289 | 3,292 | ||
| Non-sustaining Project capex | 115 | 54 | ||
| Technology improvements | — | 16 | ||
| Non-sustaining exploration and study costs | 1 | 61 | ||
| Care and maintenance costs | — | 67 | ||
| Care and maintenance costs, Corporate and social responsibility costs not related to current operations | — | 26 | ||
| All-in costs | 405 | 3,516 | ||
| Adjusted for non-controlling interests and non-gold producing companies | — | (55 | ) | |
| All-in costs adjusted for non-controlling interests and non-gold producing companies | 405 | 3,461 | ||
| Adjusted for stockpile write-offs | (2 | ) | (21 | ) |
| All-in costs adjusted for non-controlling interests, non-gold producing companies and stockpile write-offs | 403 | 3,440 | ||
| Gold sold - oz (000) | 408 | 3,430 | ||
| All-in sustaining cost (excluding stockpile write-offs) per unit - $/oz | 704 | 935 | ||
| All-in cost per unit (excluding stockpile write-offs) - $/oz | 989 | 1,003 | ||
| JOINT VENTURES | SUBSIDIARIES | |||
| Cash costs | ||||
| Cost of sales per segmental information | 378 | 3,294 | ||
| Inventory change | — | (23 | ) | |
| Amortisation of intangible assets | — | (40 | ) | |
| Amortisation of tangible assets | (108 | ) | (737 | ) |
| Rehabilitation and other non-cash costs | (4 | ) | 10 | |
| Retrenchment costs | 1 | (11 | ) | |
| Total cash costs | 267 | 2,493 | ||
Adjusted for non-controlling interests, non-gold producing companies and other(1) | — | (42 | ) | |
| Total cash costs adjusted for non-controlling interests and non-gold producing companies | 267 | 2,451 | ||
| Gold produced - oz (000) | 407 | 3,411 | ||
| Total cash costs per unit - $/oz | 655 | 719 | ||
In the board’s opinion, AngloGold Ashanti’s working capital is sufficient to meet the company’sCompany’s present requirements.
Cash flows from operating activities
Cash flows from operating activities were $997increased by $536 million, or 42 percent, from $1,268 million in 2017, $1892021 to $1,804 million or 16 percent, lower than the 2016 amount of $1,186 million.in 2022. The decreaseincrease in cash flows generated by operationsfrom operating activities was mainly due to increased total cash costs partiallyan increase in dividends received from joint ventures, an increase in receipts from customers as a result of an increase in gold production, as well as lower taxation paid due to lower profit before taxation in Australia, Brazil, Argentina and Tanzania. This increase was partly offset by increased revenues froman increase in payments to suppliers and employees as a result of higher gold price receivedproduction costs, and increased production.unfavourable working capital movements.
Net cash outflow from operating working capital items amounted to $156$137 million in 2017,2022, compared with an inflow of $53 million in 2021. The outflow from operating working capital in 2022 mainly related to an increase in inventories and an increase in trade, other receivables and other assets, partly offset by an increase in trade, other payables and provisions.
Cash flows from operating activities were also impacted by movements in the lock-up of value added tax (“VAT”) at Geita in Tanzania as well as foreign exchange controls and export duties at Cerro Vanguardia in Argentina. In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) increased by $11 million, or eight percent, from $142 million in 2021 to $153 million in 2022, as a result of new claims submitted to the Tanzania Revenue Authority (“TRA”) during 2022 and despite offsetting verified VAT claims of $45 million against corporate tax payments in 2022. AngloGold Ashanti expects to continue offsetting verified VAT claims against corporate taxes. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Tanzania”. In Argentina, the net export duty receivables (after discounting provisions) decreased by $10 million, or 53 percent, from $19 million at 31 December 2021 to $9 million at 31 December 2022. In addition, Cerro Vanguardia’s cash balance decreased by $23 million (equivalent), or 17 percent, from $139 million (equivalent) at 31 December 2021 to $116 million (equivalent) at 31 December 2022. While the approvals of the Argentinean Central Bank to purchase US dollars to distribute offshore dividends to AngloGold Ashanti are pending, the cash remains fully available for Cerro Vanguardia’s operational and exploration requirements. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.
Dividends received from joint ventures increased by $463 million, or 200 percent, from $231 million in 2021 to $694 million in 2022. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up at, the Kibali joint venture in the DRC. During 2022, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $694 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $658 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $36 million). AngloGold Ashanti’s attributable share of the outstanding cash balances awaiting repatriation from the DRC decreased by $459 million, or 92 percent, from $499 million at 31 December 2021 to $40 million at 31 December 2022. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2022, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $13 million, or 18 percent, from $73 million at 31 December 2021 to $86 million at 31 December 2022. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”.
Net taxation paid decreased by $182 million, or 58 percent, from $316 million in 2021 to $134 million in 2022. The decrease in net taxation paid was mainly due to lower profit before taxation in Australia, Brazil, Argentina and Tanzania.
Cash flows from investing activities
Cash flows from investing activities amounted to a net outflow of $76$1,461 million in 2016.2022, $521 million, or 55 percent, higher than an outflow of $940 million in 2021. The increase in outflow from investing activities was largely due to the acquisition of assets of $517 million during 2022 and movements in cash restricted for use, partly offset by higher interest received in Argentina due to higher cash and cash equivalent balances in 2022. The acquisition of assets mainly consists of the Company’s acquisition of Corvus Gold Inc. (“Corvus Gold”) and Coeur Sterling, Inc. (“Coeur Sterling”) during 2022. On 18 January 2022, the Company completed its acquisition of all of the outstanding stock of Corvus Gold (not already owned by AngloGold Ashanti). The cash consideration paid, including transaction costs, amounted to $365 million. On 4 November 2022, the Company completed its acquisition of all of the outstanding stock of Coeur Sterling, Inc. (a subsidiary of Coeur Mining, Inc.). The cash consideration paid, including transaction costs, amounted to $152 million.
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Cash flows from financing activities
Cash flows from financing activities in 2022 amounted to a net outflow of $323 million, which is a change of $133 million from an outflow of $456 million in 2021. The decrease in outflow was mainly due to lower net repayment of borrowings, finance costs and dividends paid, partly offset by an increase in repayment of lease liabilities.
Cash inflows from proceeds from borrowings decreased by $556 million from $822 million in 2021 to $266 million in 2022. In 2021, AngloGold Ashanti Holdings plc issued, at the end of October 2021, the $750 million 2028 notes (as defined below). In 2022, AngloGold Ashanti drew the remaining undrawn commitments under the $150 million 2021 Geita RCF (as defined below), fully drew on the $65 million 2022 Siguiri RCF (as defined below) and partially drew on the $1.4 billion 2022 multi-currency RCF (as defined below).
Cash outflows from repayment of borrowings decreased by $636 million from $820 million in 2021 to $184 million in 2022. In 2021, AngloGold Ashanti Holdings plc repurchased the $750 million 2022 notes (as defined below) by way of a tender offer in October 2021 followed by a redemption in November 2021. In 2022, AngloGold Ashanti repaid $95 million under, and cancelled, the $1.4 billion 2018 multi-currency RCF (as defined below) and repaid $35 million under, and cancelled, the $65 million 2016 Siguiri RCF (as defined below).
Finance costs paid decreased by $11 million from $120 million in 2021 to $109 million in 2022. The decrease was mainly due to lower interest paid on the 2028 notes issued in 2021, compared to the 2022 notes which were repurchased and redeemed in 2021.
Other borrowing costs decreased by $24 million from $35 million in 2021 to $11 million in 2022. The other borrowing costs paid in 2021 were for the underwriting fees for the issuance of the 2028 notes as well as the tender offer premium and redemption premium costs of the 2022 notes. The other borrowing costs paid in 2022 mainly related to the transaction costs of the new $1.4 billion 2022 multi-currency RCF.
Dividends paid decreased by $37 million from $240 million in 2021 to $203 million in 2022. Dividends paid to non-controlling interests increased by $6 million from $16 million in 2021 to $22 million in 2022. These dividends were paid by our non-wholly owned subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders. During 2022, the Company declared and paid a dividend of $181 million to its shareholders, compared to $224 million in 2021.
Comparison of cash flows in 2021 with 2020
Cash flows from operating activities
Cash flows from operating activities were $1,186from continuing operations decreased by $315 million, or 20 percent, from $1,583 million in 2016, $472020 to $1,268 million or four percent, higher than the 2015 amount of $1,139 million.in 2021. The increasedecrease in cash flows provided byfrom continuing operations was mainly due to increased revenuesa decrease in receipts from customers as a result of a decrease in gold production and an increase in payments to suppliers and employees as a result of higher gold price received partiallyproduction costs. This decrease was partly offset by lower production.taxation paid due to lower profit before tax, an increase in dividends received from joint ventures and favourable working capital movements.
Net cash outflowinflow from operating working capital items amounted to $76$53 million in 2016,2021, compared with an outflow of $238 million in 2020. The inflow from operating working capital in 2021 mainly related to a decrease in inventories and an increase in trade, other payables and provisions, partly offset by a decrease in trade, other receivables and other assets.
Cash flows from operating activities were also impacted by movements in the lock-up of value added tax (“VAT”) at Geita in Tanzania as well as foreign exchange controls and export duties at Cerro Vanguardia in Argentina. In Tanzania, net overdue recoverable VAT input credit refunds (after discounting provisions) increased by $3 million, or two percent, from $139 million in 2020 to $142 million in 2021, as a result of new claims submitted to the Tanzania Revenue Authority (“TRA”) during 2021 and despite offsetting verified VAT claims of $54 million against corporate tax payments in 2021. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Tanzania”. In Argentina, the net export duty receivables (after discounting provisions) decreased by $4 million, or 17 percent, from $23 million at 31 December 2020 to $19 million at 31 December 2021. In addition, Cerro Vanguardia’s cash balance increased by $2 million (equivalent), or one percent, from $137 million (equivalent) at 31 December 2020 to $139 million (equivalent) at 31 December 2021. While the approval of the Argentinean Central Bank to purchase US dollars to distribute an offshore dividend to AngloGold Ashanti is pending, the cash remains fully available for Cerro Vanguardia’s operational requirements. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Americas—Argentina”.
Dividends received from joint ventures increased by $83 million, or 56 percent, from $148 million in 2020 to $231 million in 2021. In this connection, cash flows from operating activities were impacted by the level of cash repatriation from, and movements in the VAT lock-up at, the Kibali joint venture in the DRC. During 2021, AngloGold Ashanti’s cumulative cash receipts from the Kibali joint venture, in the form of dividends from Kibali (Jersey) Limited, amounted to $231 million. Kibali (Jersey) Limited received such cash from Kibali Goldmines S.A. in the form of loan repayments (net of bank fees) (AngloGold Ashanti’s attributable share: $150 million) and dividends (net of withholding taxes) (AngloGold Ashanti’s attributable share: $81 million). AngloGold Ashanti’s
200
attributable share of the outstanding cash balances awaiting repatriation from the DRC increased by $75 million, or 18 percent, from $424 million at 31 December 2020 to $499 million at 31 December 2021. The cash is fully available for the operational requirements of Kibali Goldmines S.A. In addition, Kibali Goldmines S.A. is due certain refunds of VAT which, to date, remain outstanding. During 2021, AngloGold Ashanti did not recover any VAT offsets and refunds from its operations in the DRC. AngloGold Ashanti’s attributable share of the net recoverable VAT balance (including recoverable fuel duty and after discounting provisions) owed to AngloGold Ashanti by the DRC government increased by $4 million, or six percent, from $69 million at 31 December 2020 to $73 million at 31 December 2021. See “Item 4B: Business Overview—The Regulatory Environment Enabling AngloGold Ashanti to Mine—Africa—Democratic Republic of the Congo (DRC)”.
Net taxation paid decreased by $115 million, or 27 percent, from $431 million in 2020 to $316 million in 2021. The decrease in net taxation paid was mainly due to lower profit before taxation in Ghana, Australia, Brazil, Argentina and Tanzania.
Cash flows from operating activities from discontinued operations were nil in 2021, compared to a net cash inflow of $89$109 million in 2015.2020.
Cash flows from investing activities from discontinued operations were nil in 2021, compared to a net cash outflow of $31 million in 2020.
Cash flows from financing activities
Cash flows from financing activities from continuing operations in the year ended 31 December 20172021 amounted to a net outflow of $148$456 million, which is a change of $615$127 million from an outflow of $763$329 million in the year ended 31 December 2016. 2020. The increase in outflow was mainly due to an increase in dividends paid, partly offset by lower net repayment of borrowings.
Cash inflows from proceeds from borrowings decreased by $1,404 million from $2,226 million in 2017 amounted2020 to $815$822 million and included a $155 million drawdownin 2021. In 2020, AngloGold Ashanti fully drew on the $1.0$1.4 billion syndicated revolving credit facility, $422018 multi-currency RCF in March 2020 and AngloGold Ashanti Holdings plc issued, at the start of October 2020, the $700 million drawdown on2030 notes (as defined below). In 2021, AngloGold Ashanti Holdings plc issued, at the A$500end of October 2021, the $750 million syndicated revolving credit facility, $540 million in proceeds from the local borrowings facilities in South Africa and proceeds from other small loans amounting to $78 million.2028 notes.
Cash outflows from repayment of borrowings decreased by $1,490 million from $2,310 million in 2020 to $820 million in 2021. In 2020, AngloGold Ashanti Holdings plc repaid, at maturity in April 2020, the $700 million 2020 notes (as defined below) and AngloGold Ashanti repaid the fully drawn $1.4 billion 2018 multi-currency RCF in October 2020. In 2021, AngloGold Ashanti Holdings plc repurchased the $750 million 2022 notes by way of $767a tender offer in October 2021 followed by a redemption in November 2021.
Finance costs paid increased by $2 million duringfrom $118 million in 2020 to $120 million in 2021. The increase was mainly due to lower interest capitalised against the year ended 31 December 2017Obuasi redevelopment project and higher lease liabilities.
Other borrowing costs increased by $2 million from $33 million in 2020 to $35 million in 2021. The other borrowing costs paid in 2020 included the repaymentcosts of $170 million of the US$1.0AngloGold Ashanti’s $1.0 billion syndicated revolving credit facility, $428 million of the local borrowing facilities in South Africa, $65 million of the A$500 million syndicated revolvingstandby credit facility and $104 million relating to other loans.
Dividends paid decreasedincreased by $34$193 million from $47 million in 2017 due2020 to the redemption of remaining bonds$240 million in 2016.
2021. Dividends paid to non-controlling interests increased by $7 million from $15$9 million in 20162020 to $19$16 million in 2017 and2021. These dividends were all paid by our non-wholly owned subsidiaries.subsidiaries CVSA and Siguiri to their respective non-AGA related shareholders. During 2017,2021, the companyCompany declared and paid a dividend of $39$224 million to its shareholders, whereascompared to $38 million in the prior period, no dividend was paid to shareholders.2020.
Cash flows from financing activities from discontinued operations were nil in 2020 and 2021.
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Liquidity
Sources of liquidity
To service the year endedcapital commitments and other operational requirements, AngloGold Ashanti is dependent on existing cash resources, cash generated from operations and borrowings (in the form of bonds and credit facilities).
AngloGold Ashanti intends to finance its capital expenditure, capital lease obligations, other purchase obligations, environmental rehabilitation expenditures and debt repayment requirements in 2023 from cash on hand, cash flow from operations, existing credit facilities and, potentially, if deemed appropriate, long-term debt financing and the issuance of equity and equity-linked instruments. As part of the management of liquidity, funding and interest rate risk the Group regularly evaluates market conditions and may enter into transactions, from time to time, to repurchase outstanding debt, pursuant to open market purchases, privately negotiated transactions, tender offers or other means.
Cash and cash equivalents
AngloGold Ashanti’s cash and cash equivalents decreased by $48 million, or four percent, from $1.154 billion at 31 December 2016 amounted2021 to a net outflow of $763 million, which is a change of $423 million from an outflow of $1,186 million in the year ended$1.106 billion at 31 December 2015. Cash inflows from proceeds from borrowings2022. At 31 December 2022, 78 percent of the Company’s cash and cash equivalents were held in 2016 amounted to $787 million and included a $330 million drawdown on the $1.0 billion syndicated revolving credit facility, $157 million drawdown on the A$500 million syndicated revolving credit facility, $256 millionUS dollars, three percent in proceeds from the local borrowing facilitiesAustralian dollars, eight percent in South AfricaAfrican rands, ten percent in Argentinean pesos and proceeds fromone percent in other small loans amountingcurrencies. Amounts are converted to $44 million.US dollars at exchange rates as of 31 December 2022.
Cash outflowsgenerated from repaymentoperations
Cash generated from operations is subject to operational, market and other risks. Distributions from operations may be subject to foreign investment, exchange control laws and regulations and the quantity of borrowings of $1,333 million duringforeign exchange available in offshore countries. For example, in accordance with the year ended 31 December 2016 included the repayment of $471 millionrules and regulations of the $1.25 billion 8.500 percent bonds due 2020, $480 millionCentral Bank of the US$1.0 billion syndicated revolving credit facility, $290 million of the local borrowing facilities, $89 million of the A$500 million syndicated revolving credit facilityArgentina, cash generated by our Argentinean operations is held in Argentinean peso and $3 million in connection with other loans.
relevant board approvals. AngloGold Ashanti’s revenues are derived primarily from the sale of gold produced at its mines. Cash flows from operating activities are therefore the function of gold produced that is sold at a specific price. The market price of gold can fluctuate widely, which impacts the profitability of the company’sCompany’s operations and the cash flows generated by these operations.
The credit facilities contain financial covenants and cash equivalents decreasedother similar undertakings. To the extent that external borrowings are required, the Company’s covenant performance indicates that existing financing facilities will be available to $205 million at 31 December 2017 compared with $215 million at 31 December 2016. In accordance with South African Reserve Bank regulations, cash generated by South African operations is held in rands and is therefore subject to exchange controls. At 31 December 2017 67 percentmeet the above commitments. To the extent that any of the company’s cash and cash equivalents were heldfinancing facilities mature in US dollars, 11 percent were heldthe near future, the Company believes that sufficient measures are in South African rands and 22 percent were heldplace to ensure that these facilities can be refinanced.
A full analysis of the borrowings as presented on the statement of financial position is included in other currencies.“Item 18: Financial Statements—Note 24—Borrowings”.
Bonds
During April 2010, the groupAngloGold Ashanti Holdings plc issued two rated bonds, fully and unconditionally guaranteed by AngloGold Ashanti Ltd.Limited. The issuance consisted of a 10 year10-year ($700 million) bond with a semi-annual coupon of 5.375% per annum (the “2020 notes”) was repaid at maturity in April 2020 and ais no longer outstanding. The 30-year ($300 million) bond with a semi-annual coupon of 6.50% per annum. Unless the company redeems the bonds earlier, the bondsannum (the “2040 notes”) will mature on 15 April 2040, unless the Company redeems the bond earlier. See also “Item 10C: Material Contracts—Notes—2020 Notes and 15 April 2040 respectively.Notes”.
During July 2012, the group entered intoAngloGold Ashanti Holdings plc issued a $750 million rated bond. Semi-annual coupons are paid at 5.125% per annum. The bonds are dollar based and unless the company redeems the bonds, earlier they are repayable on 1 August 2022. The notes arebond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 10-year ($750 million) bond with a semi-annual coupon of 5.125% per annum (the “2022 notes”) was repurchased in part in October 2021 with the group.remainder redeemed in November 2021 and is no longer outstanding. See also “Item 10C: Material Contracts—Notes—2022 Notes”.
During October 2020, AngloGold Ashanti Holdings plc issued a rated bond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 10-year ($700 million) bond with a semi-annual coupon of 3.750% per annum (the “2030 notes”) will mature on 1 October 2030, unless the Company redeems the bond earlier. See also “Item 10C: Material Contracts—Notes—2030 Notes”.
During October 2021, AngloGold Ashanti Holdings plc issued a rated bond, fully and unconditionally guaranteed by AngloGold Ashanti Limited. The 7-year ($750 million) bond with a semi-annual coupon of 3.375% per annum (the “2028 notes”) will mature on 1 November 2028, unless the Company redeems the bond earlier. See also “Item 10C: Material Contracts—Notes—2028 Notes”.
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Credit facilities
During July 2014, the group completed the following financing transactions:
During October 2018, AngloGold Ashanti Holdings plc and AngloGold Ashanti Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the “2018 multi-currency RCF”) with the Bank of Nova Scotia, as facility during its five-year termagent, and thecertain financial institutions party thereto, as lenders. The loan consisted of (i) a US dollar based facility bearswith interest charged at a margin of 1.45% above LIBOR plus 1.5%.and (ii) an Australian dollar based facility capped at A$500 million with interest charged at a margin of 1.45% above BBSY. The facility matures in July 2019. Theapplicable margin was subject to a ratings grid. In this regard, the interest margin will reduce shouldreduced if the group’sGroup’s credit rating improveimproved from its current BB+/Baa3 status and increase shouldincreased if its credit rating worsen.worsened. The A$500 million portion of the 2018 multi-currency RCF was used to fund the working capital and development costs associated with the Group’s mining operations within Australia without eroding the Group’s headroom under its other facilities and exposing the Group to foreign exchange gains/losses each quarter. On 9 June 2022, the 2018 multi-currency RCF was repaid and cancelled.
During December 2021, Geita Gold Mining Limited, as borrower, entered into a three-year unsecured multi-currency revolving credit facility of $150 million with Nedbank Limited, as underwriter and agent, and certain financial institutions party thereto, as original banks (the “2021 Geita RCF”). The 2021 Geita RCF consisted of a Tanzanian shilling component capped at the equivalent of $87 million bearing interest at 12.5% and a US dollar component bearing interest at LIBOR plus 6.7%. On 27 February 2023, the 2021 Geita RCF was amended to, among other matters, increase its size to $277 million and change the reference rate to Term SOFR. The amended 2021 Geita RCF consists of a Tanzanian shilling component capped at the equivalent of $148 million bearing interest at 12.5% and a US dollar component of $129 million bearing interest at Term SOFR plus 6.7%. The 2021 Geita RCF will mature during August 2024 or December 2024 depending on the fulfilment of certain conditions in the facility agreement. As of 31 December 2022, the 2021 Geita RCF was fully drawn at $150 million.
AngloGold Ashanti Limited, as borrower, seeks to renew its corporate overnight facility of ZAR 150 million (the “RMB corporate overnight facility”) with FirstRand Bank Limited on an annual basis. During October 2021, the RMB corporate overnight facility was reduced from ZAR 500 million to ZAR 150 million. As of 31 December 2022, the ZAR 150 million RMB corporate overnight facility was undrawn.
On 9 June 2022, AngloGold Ashanti Holdings plc and AngloGold Ashanti Australia Limited, as borrowers, entered into a new five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the “2022 multi-currency RCF”) with the Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The 2022 multi-currency RCF refinanced the 2018 multi-currency RCF. The loan consists of (i) a US dollar based facility with interest charged at a margin of 1.45% above Compounded SOFR adjusted for CAS and (ii) an Australian dollar based facility capped at A$500 million ($390 million) with a group of banks which is currentlyinterest charged at 2%a margin of 1.45% above BBSY. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce shouldif the group’sGroup’s credit rating improveimproves from its current BB+/Baa3 status and will increase shouldif its credit rating worsen. This facilityworsens. The A$500 million portion of the 2022 multi-currency RCF will be used to fund the working capital and development costs associated with the group'sGroup’s mining operations within Australia without eroding the group'sGroup’s headroom under its other facilities and exposing the groupGroup to foreign exchange gains/losses.losses each quarter. The facility matures in July 2019.
On 13 October 2022, Société AngloGold Ashanti de Guinée S.A., as well as the R1 billion and R2.5 billion ZAR RCF facilities, will be used to fund the working capital and development costs associated with the group’s mining operations within South Africa without eroding the group’s headroom under its other facilities and exposing the group to foreign exchange gains/losses. This facility matures in July 2020.
Environmental obligations
Pursuant to environmental regulations in the countries in which AngloGold Ashanti intendsoperates, in connection with plans for the eventual end-of-life of our mines, AngloGold Ashanti is obligated to finance its capital expenditurerehabilitate the lands where such mines are located. In most cases, AngloGold Ashanti is required to provide financial guarantees for such work, including reclamation bonds or letters of credit issued by third party entities, independent trust funds or cash reserves maintained by the operation, to the respective environmental protection agency, or such other government department with responsibility for environmental oversight in the respective country, to cover all or a portion of the estimated environmental rehabilitation obligations.
In most cases, the environmental obligations expire on completion of the rehabilitation although, in some cases, AngloGold Ashanti may be required to post bonds for potential events or conditions that could arise after the rehabilitation has been completed. In Australia, since 2014, AngloGold Ashanti has paid into a Mine Rehabilitation Fund an amount of A$11 million for a
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current carrying value of the liability of A$107 million. At Iduapriem, AngloGold Ashanti has provided a bond comprising a cash component of $12 million with a further bond guarantee amounting to $14 million issued by ABSA Bank Ghana Limited and debt repayment requirementsStandard Chartered Bank Ghana Ltd for a current carrying value of the liability of $46 million. At Obuasi, AngloGold Ashanti has provided a bond comprising a cash component of $22 million with a further bank guarantee amounting to $30 million issued by Stanbic Bank Ghana Limited and Standard Chartered Bank Ghana PLC for a current carrying value of the liability of $171 million. In some circumstances, the Company may be required to post further bonds in 2018 from cash on hand, cash flow from operations, existing credit facilities and, potentially, if deemed appropriate, long-term debt financing,due course which will have a consequential income statement charge for the issuancefees charged by the providers of equity and equity linked instruments.the reclamation bonds.
Current borrowings
AngloGold Ashanti’s current borrowings increased to $38decreased by $33 million from $51 million at 31 December 2017 from $342021 to $18 million at 31 December 2016.2022. See “Item“Item 18: Financial Statements—Note 25-Borrowings”24—Borrowings”.
Non-current borrowings
AngloGold Ashanti’s non-current borrowings increased to $2,230by $107 million from $1,858 million at 31 December 2017 compared2021 to $2,144$1,965 million at 31 December 2016.2022. See “Item“Item 18: Financial Statements—Note 25-Borrowings”24—Borrowings”.
As at 31 December 2017,2022, AngloGold Ashanti’s total non-current borrowings, including the short-term portion maturing within 2018,2022, was made up as follows:
| $ (million) | ||||||
| Unsecured borrowings | ||||||
| Total borrowings | ||||||
| Less: Short-term maturities (current borrowings) | ||||||
| Total non-current borrowings | ||||||
Amounts falling due are scheduled as follows:
| $ (million) | ||||||
| Within one year | ||||||
| Between one and two years | ||||||
| Between two and five years | ||||||
| After five years | ||||||
| Total | ||||||
At 31 December 20172022, the currencies in which the borrowings were denominated were as follows:
| $ (million) | ||||||
| United States | ||||||
| Australian | ||||||
| South African rand | ||||||
| Total | 1,983 | |||||
At 31 December 2017,2022, AngloGold Ashanti had the following undrawn amounts available under its borrowing facilities:
| $ (million) | ||||||
| 9 | ||||||
| Multi-currency syndicated revolving credit facility ($ | ||||||
Geita revolving credit facility | ||||||
| Total undrawn facilities | ||||||
(1) On 27 February 2023, the size of the 2021 Geita RCF was increased from $150 million to $277 million.
AngloGold Ashanti had no other committed lines of credit as of 31 December 2017.
2022.
As of 31 December 2017,2022, the companyCompany was in compliance with all debt covenants and provisions related to potential defaults.
See “Item“Item 18: Financial Statements—Note 35-Capital34—Capital Management” and “Item“Item 10C: Material Contracts”.
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At 31 December 2022, lease liabilities were as follows:
| $ (million) | |||||
| Non-current | 102 | ||||
| Current | 84 | ||||
| Total | 186 | ||||
AngloGold Ashanti, through its executive committee, reviews its short-, medium- and long-term funding, treasury and liquidity requirements and positions monthly.
Supplemental parent guarantor and subsidiary issuer financial information
AngloGold Ashanti Holdings plc (the “Issuer”), a direct wholly-owned subsidiary of AngloGold Ashanti Limited (the “Guarantor”), has issued three series of outstanding debt securities which are each fully and unconditionally guaranteed by the Guarantor (the “guaranteed debt securities”). The Audit Committee also reviews theseIssuer is a company incorporated under the laws of the Isle of Man that holds certain of AngloGold Ashanti’s operations and assets located outside of South Africa. The guaranteed debt securities outstanding as of 31 December 2022 consisted of:
•a $300 million 30-year bond, with a maturity date of 15 April 2040 and a fixed coupon of 6.500% payable semi-annually (the “2040 notes”);
•a $750 million 7-year bond, with a maturity date of 1 November 2028 and a fixed coupon of 3.375% payable semi-annually (the “2028 notes”); and
•a $700 million 10-year bond, with a maturity date of 1 October 2030 and a fixed coupon of 3.750% payable semi-annually (the “2030 notes”).
The Guarantor fully and unconditionally guarantees the payment of the principal of, premium, if any, and interest on each of the guaranteed debt securities, including any additional amounts, when and as any such payments become due, whether at maturity, upon redemption or declaration of acceleration, or otherwise. The Guarantor has obtained the approval of the South African Reserve Bank (SARB) to provide each of the guarantees. Each guarantee constitutes unsecured and unsubordinated debt of the Guarantor and ranks equally with all of its other unsecured and unsubordinated debt from time to time outstanding. Each guarantee is or will be effectively subordinated to any of the Guarantor’s existing and future secured debt, to the extent of the value of the assets securing such debt, and structurally subordinated to all of the existing and future liabilities (including trade payables) of each of the Guarantor’s subsidiaries (other than the Issuer). As at 31 December 2022, all of the debt of the Guarantor was unsecured. Under the terms of each full and unconditional guarantee, holders of the guaranteed debt securities will not be required to exercise their remedies against the Issuer before they proceed directly against the Guarantor.
The following summarised financial information reflects, on a quarterlycombined basis, the assets, liabilities, and results of operations of the Issuer and the Guarantor (collectively, the “Obligor Group”). Intercompany balances and transactions within the Obligor Group have been eliminated. Amounts attributable to the Obligor Group’s investment in consolidated subsidiaries that have not issued or guaranteed the guaranteed debt securities (the “Non-Obligor Subsidiaries”) have been excluded. The Obligor Group’s amounts due from, amounts due to and transactions with Non-Obligor Subsidiaries have been separately disclosed, if considered to be material. The summarised financial information below should be read in conjunction with AngloGold Ashanti’s consolidated financial statements for the year ended and as at 31 December 2022, see “Item 18: Financial Statements”.
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Income statement information
Obligor Group(1) | ||||||||
| $ (million) | Year ended 31 December 2022 | |||||||
| Revenues from Non-Obligor Subsidiaries | 1 | |||||||
| Revenues from Investments | 18 | |||||||
| Net intergroup dividends, interest, royalties and fees with Non-Obligor Subsidiaries | 1 | |||||||
| Loss for the period from continuing operations | (141) | |||||||
| Loss for the period | (141) | |||||||
(1) Gross profit is not disclosed for the Obligor Group. The Guarantor changed the nature of its meetings.main operating activities from mining operations to investment holding in 2021 and has no costs and expenses applicable to revenue. As a result cost of sales and gross profit are no longer presented. The principal activity of the Issuer is to act as a holding company for certain of AngloGold Ashanti’s operations and assets located outside of South Africa.
Statement of financial position information
| Obligor Group | ||||||||
| $ (million) | Year ended 31 December 2022 | |||||||
| ASSETS | ||||||||
| Receivables due from Non-Obligor Subsidiaries | 1,640 | |||||||
| Other current assets | 604 | |||||||
| Total current assets | 2,244 | |||||||
| Non-current assets | 36 | |||||||
| LIABILITIES | ||||||||
| Payables due to Non-Obligor Subsidiaries | 276 | |||||||
| Other current liabilities | 198 | |||||||
| Total current liabilities | 474 | |||||||
| Non-current liabilities | 1,806 | |||||||
Contractual commitments and contingencies
For a detailed discussion of commitments and contingencies, see note 33 to the consolidated financial statements “Contractual commitments “Item 18: Financial Statements—Note 32—Contractual Commitments and contingencies”Contingencies”.
As at 31 December 2017,2022, capital commitments can be summarised over the periods shown below as follows:
| Expiration per period | |||||||||||||||||||||||||||||
| Commitment | Total amount | Less than 1 year | 1 – 3 years | 4 – 5 years | Over 5 years | ||||||||||||||||||||||||
| (in millions) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Capital expenditure (contracted and not yet contracted)(1) | 437 | 398 | 39 | — | — | ||||||||||||||||||||||||
Other commercial commitments(2) | 1,011 | 436 | 447 | 128 | — | ||||||||||||||||||||||||
| Total | 1,448 | 834 | 486 | 128 | — | ||||||||||||||||||||||||
(1) There were no commitments through contractual arrangements with equity-accounted joint ventures.
(2) Excludes commitments through contractual arrangements with equity-accounted joint ventures.
To service the above capital commitments and other operational requirements, the Group is dependent on existing cash resources, cash generated from operations and borrowings (in the form of bonds and credit facilities).
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| Expiration per period | ||||||||||||||
| Commitment | Total amount | Less than 1 year | 1 – 3 years | 4 – 5 years | Over 5 years | |||||||||
| (in millions) | $ | $ | $ | $ | $ | |||||||||
Capital expenditure (contracted and not yet contracted)(1) | 200 | 188 | 12 | — | — | |||||||||
Other commercial commitments(2) | 698 | 274 | 232 | 81 | 111 | |||||||||
| Total | 898 | 462 | 244 | 81 | 111 | |||||||||
As at 31 December 2022, AngloGold Ashanti had the following known contractual obligations:
| Total | Less than 1 year | 1 – 3 years | 4 – 5 years | More than 5 years | |||||||||||||||||||||||||
| (in millions) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Long-term debt obligations including interest(1) | 2,775 | 102 | 392 | 183 | 2,098 | ||||||||||||||||||||||||
| Capital lease obligations | 203 | 79 | 100 | 22 | 2 | ||||||||||||||||||||||||
| Purchase obligations | |||||||||||||||||||||||||||||
- Contracted capital expenditure(2) | 178 | 178 | |||||||||||||||||||||||||||
- Other purchase obligations(3) | 1,011 | 436 | 447 | 128 | — | ||||||||||||||||||||||||
Environmental rehabilitation costs(4) | 734 | 61 | 109 | 83 | 481 | ||||||||||||||||||||||||
Provision for silicosis(5) | 43 | 12 | 13 | 15 | 3 | ||||||||||||||||||||||||
Pensions and other post-retirement medical obligations(6) | 71 | 8 | 18 | 16 | 29 | ||||||||||||||||||||||||
| Total | 5,015 | 876 | 1,079 | 447 | 2,613 | ||||||||||||||||||||||||
(1) Interest calculations are at the rate existing at the year end. Actual rates are set at floating rates for some of the borrowings (Refer to “Item 18: Financial Statements—Note 24—Borrowings”).
(2) Represents contracted capital expenditure for which contractual obligations exist.
(3) Other purchase obligations represent contractual obligations for mining contract services, purchase of power, supplies, consumables, inventories, explosives and activated carbon.
(4) Pursuant to environmental requirements, AngloGold Ashanti is obligated to close its operations and reclaim and rehabilitate the lands upon which it conducted its mining and gold recovery operations. The present value of estimated closure costs at existing operating mines as well as mines in various stages of closure are reflected in this table. Costs are calculated using undiscounted real cash flows, not nominal cash flows. The amount will change from year to year depending on rehabilitation work undertaken, changes in design and methodology, and new occurrences. For more information on AngloGold Ashanti’s environmental rehabilitation obligations, see “Item 4B: Business Overview—Mine Site Rehabilitation and Closure” and “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters”. Amounts stated include a total estimated liability of $17 million in respect of equity-accounted joint ventures.
(5) In South Africa, AngloGold Ashanti has been subject to numerous claims, including class action litigation with respect to alleged occupational lung diseases. The settlement agreement in relation to the silicosis and tuberculosis class action came into effect in December 2019, following the approval of the settlement by the High Court in Johannesburg in July 2019. As a result, a trust (Tshiamiso Trust) was established for a minimum of 13 years responsible for making payments to eligible beneficiaries. The amount of monetary compensation will vary depending on the nature and seriousness of the disease. See “Item 3D: Risk Factors—The prevalence of occupational health diseases and other diseases and the potential costs and liabilities related thereto may have an adverse effect on the business and results of operations of AngloGold Ashanti”, “Item 4B: Business Overview—Sustainability and Environmental, Social and Governance (“ESG”) Matters” and “Item 18: Financial Statements—Note 1.2—Statement of Compliance—Significant Accounting Judgements and Estimates—Provision for silicosis”.
(6) Represents payments for unfunded plans or plans with insufficient funding. A $12 million reimbursive asset relating to annuities purchase to fund the asset has been separately recognised.
Off-balance sheet arrangements
AngloGold Ashanti does not engage in off-balance sheet financing activities, and does not have any off-balance sheet debt obligations, special purpose entities or unconsolidated associates. The most significant off-balance sheet item are the unaccrued future rehabilitation obligations.
Recent developments
Recent developments disclosed in “Item“Item 18: Financial Statements—Note 36-Recent developments”35—Subsequent Events” include the following details:
Dividend declaration - On 2022 February 2018,2023, the directors of AngloGold Ashanti declared a gross cash dividend per ordinary share of 70322 South African cents (assuming an exchange rate of ZAR11.66/ZAR 17.53/$, the gross dividend payable per ADS is equivalent to 618 US cents). which was approximately $75 million.
AngloGold Ashanti will contribute its 100% interest in the Iduapriem Mine to Gold Fields Ghana in return for a shareholding in that company. Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and
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AngloGold Ashanti will have an interest of 33.3%, or one-third, in the Proposed Joint Venture. There can be no certainty that the Parties will enter into a definitive agreement with respect to the Proposed Joint Venture or about the timing, terms and conditions of any such definitive agreement. Implementation of the Proposed Joint Venture is subject to, among other matters, reaching agreement with the GoG regarding the Proposed Joint Venture, conclusion of confirmatory due diligence and securing all requisite regulatory approvals.
Related party transactions
For a detailed discussion of related party transactions, see “Item 7B.:“Item 7B: Related Party Transactions”.
Recently adopted accounting policies and pending adoption of new accounting standards
AngloGold Ashanti adopted the amendment to IAS 16 “Property, Plant and Equipment—Proceeds before Intended Use” on 1 January 2022. The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss. The cost allocation requires significant judgement in terms of this amendment. In accordance with the transitional provisions of IAS 16 an entity applies the amendments retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment.
The adoption of the amendment on 1 January 2022 resulted in a retrospective increase in property, plant and equipment and a decrease in accumulated losses of $33 million as of 31 December 2020. There was no impact on the 2021 results as no revenue was capitalised in 2021. The effects of the 2020 restatement are included in the accumulated losses opening balance of the 2021 financial reporting period. The impact arises from the reclassification of revenue, cost of sales, and tangible assets and the resulting amortisation recalculation, resulting exclusively from the redevelopment of the Obuasi mine. No other operation was impacted by the adoption of the amendment.
AngloGold Ashanti’s accounting policies are described in note 1“Item 18: Financial Statements—Note 1—Statement of Compliance—Accounting Standards, Interpretations and Amendments to the consolidated financial statements “Accounting policies”Published Accounting Standards”.
Critical accounting policies
AngloGold Ashanti’s accounting policies are described in note 1 to the consolidated financial statements “Accounting policies” “Item 18: Financial Statements—Note 1.2—Statement of Compliance—Significant Accounting Judgements and Estimates”.
Use of estimates and making of assumptions
The preparation of the company’sCompany’s financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The following are considered to be the accounting policies that are most critical to the company’s results of operations, financial condition and cash flows.
The more significant areas requiring the use of management estimates and assumptions relate to OreMineral Reserve that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations; environmental, reclamation, rehabilitation and closure obligations; asset impairments/reversals (including impairments of goodwill); production start dates; and write-downswrite downs of inventory to net realisable value. Other estimates include employee benefit liabilities and unrecognizedunrecognised tax positions.
The complex or subjective judgements that have the most significant effect on amounts recognised and the sources of estimation uncertainty where there is a significant risk of material adjustment to the carrying amounts of assets or liabilities in the next reporting period are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ significantly due to the ultimate conclusion of uncertainties.
AngloGold Ashanti estimates on an annual basis its Ore Reserve at its mining operations. There are a number of uncertainties inherent in estimating quantities of Ore Reserve, including many factors beyond the company’s control. Estimates of Ore Reserve are based upon engineering evaluations of assay values derived from samplings of drill holes and other openings. Additionally, declines in the market price of gold may render certain Ore Reserve containing relatively lower grades of mineralisation uneconomic to mine. Further, availability of permits, changes in operating and capital costs, and other factors could materially and adversely affect the Ore Reserve. The company uses its estimates of Ore Reserve to determine the unit basis for mine depreciation and
Research and development expenditure included in the income statement amounted to $11 million, $15 million and $18$1 million during 2017, 2016each of 2022, 2021 and 2015, respectively.2020.
5D. TREND INFORMATION
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For a discussion of trends affecting AngloGold Ashanti’s business and operations, see “Item 5A.:5A: Operating Results – Results—Key factors affecting results”.
5E. CRITICAL ACCOUNTING ESTIMATES
Not applicable.
| Total | Less than 1 year | 1 – 3 years | 4 – 5 years | More than 5 years | ||||||||||
| (in millions) | $ | $ | $ | $ | $ | |||||||||
Long-term debt obligations including interest(1) | 3,090 | 138 | 1,367 | 890 | 695 | |||||||||
| Capital lease obligations | 119 | 14 | 27 | 24 | 54 | |||||||||
| Operating lease obligations | 90 | 45 | 38 | 7 | — | |||||||||
| Purchase obligations | ||||||||||||||
- Contracted capital expenditure(2) | 87 | 87 | — | — | — | |||||||||
- Other purchase obligations(3) | 698 | 274 | 232 | 81 | 111 | |||||||||
Environmental rehabilitation costs(4) | 991 | 74 | 95 | 67 | 755 | |||||||||
Pensions and other post-retirement medical obligations(5) | 123 | 11 | 22 | 24 | 66 | |||||||||
| Total | 5,198 | 643 | 1,781 | 1,093 | 1,681 | |||||||||
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ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
6A. DIRECTORS AND SENIOR MANAGEMENT
Directors
As at 2910 March 2018,2023, AngloGold Ashanti has a unitary board comprising 11ten directors - nineeight independent non-executive directors and two executive directors. Certain information with respect to AngloGold Ashanti’s directors is set forth below:
| Name | Age | Position | Year first appointed(1) | |||||||||||||||||
| Alberto Calderon | 63 | Executive director and Chief Executive Officer | 2021 | |||||||||||||||||
| Gillian Doran | 46 | Executive director and Chief Financial Officer | 2023 | |||||||||||||||||
| Maria Ramos | 64 | Independent non-executive director and chairperson | 2019 | |||||||||||||||||
| Rhidwaan Gasant | 63 | Lead independent non-executive director | 2010 | |||||||||||||||||
| Kojo Busia | 60 | Independent non-executive director | 2020 | |||||||||||||||||
| Alan Ferguson | 65 | Independent non-executive director | 2018 | |||||||||||||||||
| Albert Garner | 67 | Independent non-executive director | 2015 | |||||||||||||||||
| Scott Lawson | 61 | Independent non-executive director | 2021 | |||||||||||||||||
| Maria Richter | 68 | Independent non-executive director | 2015 | |||||||||||||||||
| Jochen Tilk | 59 | Independent non-executive director | 2019 | |||||||||||||||||
| Name | Age | Position | Year first appointed(1) | |||
| Srinivasan Venkatakrishnan | 53 | Executive director and chief executive officer | 2005 | |||
| Christine Ramon | 50 | Executive director and chief financial officer | 2014 | |||
Sipho Pityana(2) | 58 | Independent non-executive director and chairman | 2007 | |||
| Nozipho January-Bardill | 67 | Independent non-executive director | 2011 | |||
| Albert Garner | 62 | Independent non-executive director | 2015 | |||
| Rhidwaan Gasant | 58 | Independent non-executive director | 2010 | |||
| Dave Hodgson | 70 | Independent non-executive director | 2014 | |||
| Michael J. Kirkwood | 70 | Independent non-executive director | 2012 | |||
| Maria Richter | 63 | Independent non-executive director | 2015 | |||
| Rodney J. Ruston | 67 | Independent non-executive director | 2012 | |||
| Sindiswa Zilwa | 50 | Independent non-executive director | 2017 | |||
| Independent Non-Executive Director and Chairperson | |||||||||
| Board committee memberships: | Nominations and Governance Committee (Chairperson) | |||||||
Maria Ramos is an independent non-executive director of Standard Chartered Plc and serves on the board of Compagnie Financière Richemont SA. She served as Group chief executive officer of Absa Group (previously Barclays Africa Group Limited), retiring in 2019. Prior to that she was CEO of Transnet and served as Director General of South Africa’s National Treasury.
She recently served as independent non-executive director on the boards of the Public Investment Corporation and Saudi British Bank. She also co-chaired the United Nations Secretary General's Task Force on Digital Financing of the Sustainable Development Goals.
Ms. Ramos has in the past served as a non-executive and independent director on the boards of Sanlam Ltd, Remgro Ltd and SABMiller Plc. She was a member of the World Economic Forum's International Business Council and member of its executive committee and its chairperson for two years.
She is a member of the Group of Thirty and serves on the International Advisory Board of the Blavatnik School of Government, Oxford University.
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| BCompt (Hons), | ||||||||
| Lead Independent | ||||||||
Appointed: | ||||||||
| Board committee memberships: | Nominations and Governance Committee | |||||||
Remuneration and Human Resources Committee | ||||||||
Appointed:1 August | ||||||||
| Board committee memberships: | Investment Committee Nominations and Governance Committee | |||||||
He was previously Chief Financial Officer at AngloGold Ashanti, a post he also held at Ashanti Goldfields before its merger with AngloGold in 2004. In these roles he oversaw funding for both companies, gaining detailed knowledgeserved as coordinator of the portfolio of mines and operating jurisdictions, as well as commodity and capital markets. During this time he also bore responsibility for eliminating AngloGold Ashanti’s 12Moz of legacy hedge positions.African Mineral Development Centre (AMDC) at the UNECA. Prior to joining Ashanti Goldfields, Venkat washeading the AMDC, Dr. Busia spent nearly a director of corporate reorganisation servicesdecade leading the African Peer Review Mechanism Support Section, Governance and Public Administration Division, also at Deloitte & Touche in London.
Appointed: 1 October | ||||||||
| Board committee memberships: | Remuneration and Human Resources Committee Nominations and Governance Committee | |||||||
| Albert Garner | ||||||||
| BSE | ||||||||
| Independent | ||||||||
Appointed: 1 January 2015 | ||||||||
| Board committee memberships: | Remuneration and Human Resources Committee | |||||||
Albert Garner has extensive experience in capital markets, corporate finance and mergers and acquisitions having worked with Lazard Frères & Co., LLC for 39over 40 years in various leadership positions. He is one of the most senior bankers at Lazard,
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currently leading their special committee practice and chairing their fairness opinion committee. He formerly led Lazard’s corporate finance practice. AlbertMr. Garner became a general partner in 1989 and is now Vice Chair -Investmentof Investment Banking. Over the past 10 years he has advised and acted as lead adviser to more than 50 companies and their boards of directors on transformative transactions.
| Independent | ||||||||
Appointed: | ||||||||
| Board committee memberships: | ||||||
Nominations and | ||
Maria Richter is an experienced FTSE 100 non-executive director who has served on a diverse range of UKUS and Internationalinternational company boards. She previously served on the board of Barclays International, Barclays Bank plc and National Grid plc in the UK from 2003 to July 2014 where she was the chairperson of the finance committee and member of the audit and nominations committees. She currently sits on the boards of Rexel Group, France, a global leader in the professional distribution of energy products and services, and Bessemer Trust, a US wealth management company, and is a member of the audit and compensationnominations committees of Rexel and the remuneration committee of Bessemer Trust. As of 1 September 2017 she joined the divisional Board of Barclays International which in 2018 will become Barclays’ non ring fenced bank, responsible for oversight of the Corporate and Investment Bank and International Cards and Payments businesses. Maria’s
During Ms. Richter’s professional career spanned 1980 to 2002 during which time she served in various positions at the former Dewey Ballantine, Prudential, Salomon Brothers Inc. and Morgan Stanley & Co.
| Scott Lawson (61) | ||||||||||
| BSc, MBA | ||||||||||
| Independent | Non-Executive Director | |||||||||
Appointed: 1 | ||||||||||
| Board committee memberships: | ||||||||||
Social, Ethics and Sustainability Committee | ||||||||||
Mr. Lawson spent 22 years with Rio Tinto in executive roles with Rio Tinto Alcan, Rio Tinto Technology and Innovation and Rio Tinto Kennecott. He is the publicformer senior vice president, engineering services at Peabody Energy responsible for global engineering and private sectors, and currently sits on the boards of Discovery Limited, Aspen Limited, Metrofile Limited and the following unlisted companies, Consol Glass Limited, Mercedes Benz South Africa Limited, Tourvest Group (Pty) Ltd and Gijima Group Limited. Sindi is a professional director following her retirement in October 2016 after her 23 year stint as Co-Founder and CEO of Nkonki Inc. As an author, Sindi has published two books, “Audit Committee Effectiveness Model” and “Creating Effective Boards and Committees”. Sindi is a Chartered Accountant (SA) and a Chartered Director (SA).technical services support.
| Independent | ||||||||
Appointed: 1 January | ||||||||
| Board committee memberships: | ||||||||
Social, Ethics and Sustainability Committee Nominations and Governance Committee Audit and Risk Committee | ||||||||
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| Alberto Calderon (63) | ||||||||
| PhD, MPhil, MA, Juris Doctor, BA | ||||||||
| Chief Executive Officer and Executive Director | ||||||||
Appointed: 1 September 2021 | ||||||||
| Board committee memberships: | None | |||||||
Alberto Calderon’s executive experience includes leadership roles across the mining, engineeringpetroleum, and an MBA and has over 35 years of business experience during which he has led private and publicly-listed companies in the resources, oil and gas and construction industries. His international experienceenergy sectors. He served as the chief executive officer of Orica and was also an executive at BHP Group Plc. During his time with BHP Group Plc, Mr. Calderon held a number of key leadership positions, including group executive and chief executive aluminum, nickel and corporate development, group executive and chief commercial officer.
Mr. Calderon was also CEO of Cerrejón Coal Company, an integrated thermal coal mine in Colombia, and CEO of the Colombian oil company, Ecopetrol. Prior to this, Mr. Calderon held senior leadership positions in the International Monetary Fund and the Colombian government and has been a board member of a heavyrange of private, public and non-government organisations.
| Gillian Doran (46) | ||||||||
| Fellow Member of Association of Chartered Certified Accountants (FCCA) | ||||||||
| Chief Financial Officer and Executive Director | ||||||||
Appointed: 1 January 2023 | ||||||||
| Board committee memberships: | Investment Committee | |||||||
Gillian Doran brings more than 25 years of experience in finance and commercial roles across a number of industries, predominantly natural resources and also construction and mining contractor coupled withmanufacturing. Prior to joining the Company, Ms. Doran served as chief financial officer for Rio Tinto’s Global Aluminium division. Ms. Doran’s career at Rio Tinto spanned over 15 years in a number of senior finance roles within operations, regional business unit and Group headquarters. A seasoned international executive roles with operating resource companies provides the board with a broad based director, who can provide insightleader having previously worked and advice on the full range of domesticlived in Europe, North America and international activities in theAustralia, Ms. Doran brings to AngloGold Ashanti business. Rodney is currently the chief executive of County Coal Limited, a start-up Australian listed company, which he joineddeep experience in July 2012. He was previously chief executive officerfinancial accounting, planning, performance management, investment, transformation and President of North American Energy Partners Inc., a large Canadian mining and construction contracting company, which he took public with a listing on the NYSE and the TSX. Prior to that he was managing director of Ticor Ltd, an Australian-based titanium producer with operations in Australia and South Africa.strategy.
Board movements during 20172022 and subsequent to year endyear-end
The following changes to the board of directors took place during the period from 1 January 20172022 to 31 December 20172022 and subsequent to year-end:
•On 30 June 2022, Ms. Christine Ramon retired from the Company’s Board of Directors as an Executive Director.
•On 30 October 2022, Ms. Nelisiwe Magubane passed away. Ms. Magubane was a Non-Executive Director of the following directors retired atCompany and a member of the Annual General Meeting on 16 May 2017Audit and being eligible for re-election were re-elected byRisk Committee and the shareholders: Sipho Pityana, Rodney RustonSocial, Ethics and Sustainability Committee.
•Effective 1 January 2023, Ms. Gillian Doran joined the Company’s Board of Directors as an Executive Director.
•On 22 February 2023, the below changes to the membership of certain board committees became effective, unless otherwise noted:
•Ms. Maria Richter.
•Mr. Albert Garner was appointed as a Non-Executive Directormember of the Audit and Risk Committee, subject to shareholder approval at the 2023 AGM (scheduled for 15 May 2023).
•Mr. Scott Lawson was appointed as a member of the Audit and Risk Committee, subject to shareholder approval at the 2023 AGM (scheduled for 15 May 2023).
•Mr. Rhidwaan Gasant stepped down from the board on 16 May 2017.Investment Committee and was appointed as a member of the Social, Ethics and Sustainability Committee.
•Ms. Gillian Doran was appointed as a member of the Investment Committee.
•Ms. Maria Ramos stepped down from the Social, Ethics and Sustainability Committee.
In terms of the company’sCompany’s Memorandum of Incorporation (MoI), one-third of the following directors are required to retire at each AGM and if they are eligible and available for re-election, will be put forward for re-election by the Annual General Meetingshareholders. The board has determined that the directors to be held on 16 May 2018: Albertretire at the next AGM are Messrs. Ferguson, Garner Nozipho January-Bardill, Rhidwaanand Gasant, and Christine Ramonwho are eligible and have offered themselves for re-election.
EXECUTIVE COMMITTEE
AngloGold Ashanti’s executive management team (Executive Committee)(the “Executive Committee”) currently comprises nineeight members of whom two are executive directors. This committeeThe Executive Committee oversees the day-to-day management of the group’sGroup’s activities and is supported by country and regional management teams as well as by groupGroup corporate functions.
In addition to Srinivasan VenkatakrishnanMr. Alberto Calderon and Christine Ramon,Ms. Gillian Doran, the following people are members of the Executive Committee:
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Lisa Ali (55)
BSc (Min. Eng.)(Hons) in Chemistry, Analytical Chemistry, Biochemistry; Executive MBA
Chief OperatingPeople Officer - South Africa
Ms. Ali has over 30 years of experience, most of which has been in extractive industries. Since 2020, Ms. Ali has served as Chief People and Sustainability Officer at Newcrest Mining Limited. Prior to joining Newcrest, Ms. Ali was Head of Transformation at Trinidad Petroleum Holdings Ltd. and its subsidiary companies, and has held several senior positions at BP International PLC.
Stewart Bailey (49)
Chief Sustainability and Corporate Affairs Officer
Stewart Bailey’s portfolio includes stakeholder relations and the broader ambit of sustainability policy and oversight. He leads a strong team of specialists covering community and government relations, communications and investors relations, reporting and environment. Throughout 13 years with AngloGold Ashanti, based both in the US and South Africa, he has built an in-depth knowledge of the Company, its operations and its stakeholders. Mr. Bailey, formerly Senior Vice President of Investor Relations and Group Communications, was appointed to his current role in 2019. In his previous role, Mr. Bailey covered debt and equity investors in the US, South Africa, the UK, Europe and Asia. He also held line responsibility for AngloGold Ashanti's corporate communications programme, which included engagement with financial news media in South Africa, the US and the UK. He is a former financial journalist with Bloomberg LP in New York and Johannesburg.
Terry Briggs (50)
BSc (Hons) in Geology; MEng
Chief Development Officer
Terry Briggs was appointed as Chief Development Officer of the Company and a member of the Executive Committee with effect from 1 April 2022. His portfolio at AngloGold Ashanti includes Corporate Strategy and Business Planning, Business Development and greenfields exploration.
Mr. Briggs has 25 years of experience, spanning site-based technical and management roles at several underground and open pit base and precious metal operations at all stages of development from start-up to closure, as Executive Vice President: Group Sustainable Development, comprises the disciplines of Safety, Health, Environment, Socialwell as regional and Community Affairs, Human Rights and Global Security, and Government Relations.
Mr. Briggs has represented on various geology and Company Secretarymining industry bodies and authored several publications on engineering, geology and exploration.
Ludwig Eybers (51)(56)
BSc, (Min. Eng), Post graduate qualifications with Darden Business School, USA
Chief Operating Officer - International
Ludwig Eybers has over 2733 years international mining experience, heexperience. He joined AngloGold Ashanti in 2011 as Senior Vice President, Namibia and Mining Task Force, based in Perth Australia. In 2013, he relocated to AngloGold Ashanti in South Africa to take-up the position of Senior Vice President, Continental Africa Region. LudwigHe was subsequently promoted to Chief Operations Officer -Officer- International in 2017. HeMr. Eybers is currently accountableresponsible for overall strategic and operational responsibilities for production at the company’sCompany's mining operations across three continentsoperations.
Marcelo Godoy (51)
PhD Strategic Mine Planning, Masters Geostatistics
Chief Technology Officer
Marcelo Godoy has over 25 years of experience in the mining industry and eight countries.was previously Senior Vice President, Exploration at Newmont Corporation where he led the development of numerous innovation programs, including a world-class orebody risk management system that delivered a step change in the reliability of production forecasts. Mr. Godoy is a recognised leader in the field of mine planning under uncertainty and a champion of diversity and inclusion. Prior to joining Newmont, he was Mining Sector Leader for Golder Associates in South America and a Director at Golder's Global Board of Directors. During his tenure at Golder Associates, Mr. Godoy managed major mining feasibility studies and reserve compliance audits for the world’s top producers of base Metals, iron ore and gold.
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Lizelle Marwick (45)
B.Proc, LLB, LLM
Chief Legal Officer
Lizelle Marwick was appointed as Executive Vice President: General Counsel and Compliance on 1 July 2020, after previously serving as Senior Vice President: Deputy General Counsel. She joined the Company in 2011 establishing and heading up the legal function for the Africa operations. She is familiar with all aspects of the informationorganisation and well versed on multi-jurisdictional legal work covering a wide range of subjects, with extensive experience in this report that relatesgovernance, corporate transactions and government negotiations. Prior to Exploration Results, Mineral Resourcejoining AngloGold Ashanti, Ms. Marwick practiced law at Bowman Gilfillan in South Africa and Ore ReserveHerbert Smith in the United Kingdom. She is based on information compiled byadmitted as an attorney in South Africa and a solicitor in England and Wales.
Executive Committee movements during 2022 and subsequent to year-end
The following movements to the Competent Persons.Executive Committee took place during the period from 1 January 2022 to 31 December 2022 and subsequent to year-end:
•Ms. Lisa Ali was appointed as Chief People Officer of the Company and a member of the Executive Committee with effect from 1 April 2022. Ms. Ali replaced Ms. Italia Boninelli, who served as Interim Group Human Resources Executive Consultant and prescribed officer with effect from 1 April 2021 until 31 March 2022.
•Ms. Christine Ramon took early retirement from her role as Chief Financial Officer and a systemmember of internalthe Executive Committee of the Company effective 30 June 2022.
•Mr. Ian Kramer was appointed Interim Chief Financial Officer of the Company and external reviews aimed at providing assurance in respectan interim member of Ore Reserve and Mineral Resource estimates. A documented chain of responsibility existsthe Executive Committee with effect from 1 July 2022. He resumed his role as Senior Vice President: Group Finance with effect from 1 January 2023, stepping down from the Competent Persons atExecutive Committee.
•Ms. Gillian Doran was appointed as Chief Financial Officer and a member of the operations toCompany's Executive Committee with effect from 1 January 2023.
MINERAL RESOURCE AND MINERAL RESERVE LEADERSHIP TEAM
Tarryn Flitton (44)
MEng (Mining), BSc (Hons) (Geology), RM SME, Pr.Sci.Nat (SACNASP), FGSSA
Tarryn Flitton is the Company’s Mineral Resource and Ore Reserve Steering Committee. Accordingly, the ChairmanChairperson of the AngloGold Ashanti Mineral Resource and OreMineral Reserve Steering Committee, Mr VA Chamberlain, assumes responsibility for theLeadership Team. Mrs. Flitton has 21 years’ experience in mining with ten years directly leading and managing Mineral Resource and OreMineral Reserve processes forreporting. Mrs. Flitton joined AngloGold Ashanti and is satisfied that the Competent Persons have fulfilled their responsibilities.
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6B. COMPENSATION
REMUNERATION AND HUMAN RESOURCES COMMITTEE
Remuneration and Human Resources Committee (Remco)(the “Remco”)
The Remco comprisesis composed of fivefour non-executive directors and itsdirectors. Its purpose is to discharge the responsibilities of the board relating to all compensation, including all salary and equity compensation of the company’sCompany’s executives. The committeeRemco establishes and administers the company’sCompany’s executive remuneration and its broad objectives include;include: aligning executive remuneration with companyCompany performance and shareholder interests; setting remuneration standards aimed at attracting, motivating and retaining a competent executive team; linking individual executive pay with operational and companyCompany performance aligned to strategic objectives; and evaluating the compensation of executives including approval of salary, equity and incentive based awards.
With respect to its mandate on human resources, the committeeRemco has oversight to all strategic aspects of people development and human resource issues. The committeeRemco also considers and makes recommendations to shareholders on non-executive director’s fees.
The performance of the executive team, including the executive directors, is considered relative to the prevailing business climate and market conditions, as well as to annual evaluations of the achievement of key performance objectives. Bonuses paid to the executives are a reflection of performance of each of the executives and the companyCompany as a whole.
Members
The meetings of the committeeRemco are attended by the Chief Executive Officer and Chief FinancialPeople Officer, and Executive Vice President: Group Human Resources, except when they are conflicted or have a personal financial interest, such as when their own remuneration or benefits are being discussed.
Remuneration policy
Linking pay and performance for our executives is important and by having a large portion of executive pay defined as at riskat-risk pay, the policy ensures that executive compensation is aligned with the overall performance of the company,Company, the regions in which it operates and theits business units. The executives have an overriding focus on social sustainability including safety, and a large percentage of variable pay is directly linked to keeping our employees safe.
Total reward
When determining remuneration AngloGold Ashanti considers all elements of short-short-term and long-term fixed and variable pay and ensures that it is consistent with the overall strategic direction of the companyCompany and each employee’s individual performance.
For a description of share-based compensation and awards (including cash awards) see “Item“Item 6E: Share Ownership”.
Benchmarking
Our executivesexecutive employees and non-executives are benchmarkednon-executive director’s remuneration is evaluated against a global group of competitors.comparator companies. AngloGold Ashanti’s size and complexity as well as each individual executive’s role areis reviewed against the benchmarkour peer group from a base pay, benefits,and benchmarked based on guaranteed pay and variable pay perspective (which takes into consideration individual performance).pay. Performance (Company and individual) is a key factor influencing the remuneration of the executive employees.
Our salary benchmarks are targeted at the market median of a global market; wheremarket in our industry. Where there is a shortage of specialist and/or key technical skillstechnically skilled employees, we may offer a salary that is higher than the benchmark median is paid.salary.
Each executive’s role is individually sized to ensure the best match possible. The comparison is done onfor the same or similar roles irrespective of placelocation of work (including a review of purchasing power parity between countries).work. Each component of remuneration (base salary, short-term incentives, long-term incentives Co-investment plan
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and employee benefits and allowances) is analysed and compared with the benchmarksour global peer group’s market range and the overall package is reviewed accordingly. Our incentive scheme, the Deferred Share Plan (the “DSP”), was implemented in January 2018. For a description of the DSP, see “Item 6E: Share Ownership—AngloGold Deferred Share Plan (DSP)”.
Retirement benefits/pension
Retirement benefits are granted to all executives. All new executives and employees receive retirement benefits under defined contribution plans. There are no longer any executives in the legacy defined benefit plans. Contributions vary based on the employee’s retirement plan. See “Item 18: Financial Statements—Note 8—Employee Benefits” and “Item 18: Financial Statements—Note 26—Provision for Pension and Post-Retirement Benefits”.
EXECUTIVE DIRECTORS'DIRECTORS’ AND EXECUTIVE MANAGEMENT REMUNERATION
For details of the share-based awards and rights to subscribe for ordinary shares in the Company granted to, and exercised by executive directors and executive management team members, see “Item 6E: Share Ownership—AngloGold Deferred Share Plan (“DSP”) and “Item 6E: Share Ownership—Participation by Executive Directors, Executive Management Team Members and Other Managers in the AngloGold Share Incentive Scheme”.
NON-EXECUTIVE DIRECTORS' COMPENSATIONDIRECTORS’ FEES AND ALLOWANCES
The fees of non-executive directors are fixed by shareholders at the annual general meeting and, other thanmeeting. In addition to their compensation, the non-executive directors receive fees they receive for their participation on board committees and allowances for travelling internationally to attend board meetings, non-executivemeetings. Non-executive directors do not receive no further payments from the companyCompany and are precluded from participation in the company’sCompany’s share incentive scheme.
6C. BOARD PRACTICES
The Board of Directors
The companyCompany is governed by a unitary board of directors, the composition of which promotes the balance of authority and precludes any one director from dominating decision-making. Our board membership at year-end comprised elevennine directors, nineeight independent non-executive directors and twoone executive directors.director. Subsequent to year-end, an additional executive director joined the Company’s board.
The board is supported by its committees and has delegated certain functions to these committees without abdicating any of its own responsibilities. This process of formal delegation involves approved and documented terms of reference, which are reviewed annually.
Appointment and rotation of directors
Several factors, including the requirements of relevant legislation, best practice recommendations, qualifications and skills of a prospective board member and the requirements of the Director’s Fit and Proper Standards of the company,Company, as well as regional demographics, are considered in appointing board members. New directors are appointed pursuant to the recommendations of the Nominations and Governance Committee, which conducts a rigorous assessment of the credentials of each candidate. Newly appointed directors are elected at the next annual general meeting following their appointment and to stand for approval by shareholders.
At the next AGM, Ms. Gillian Doran will be named for election by shareholders as a director of AngloGold Ashanti.
In terms of the company’s Memorandum of Incorporation (MOI), one thirdCompany’s MoI, one-third of the directors are required to retire at each Annual General Meeting (AGM)AGM and if they are eligible and available for re-election, will be put forward for re-election by the shareholders. The board has determined that the directors to stand for re-electionretire at the next AGM on 16 May 2018 are AlbertMessrs. Ferguson, Garner Nozipho January-Bardill, Rhidwaanand Gasant, and Christine Ramon.being eligible, such directors have offered themselves for re-election.
The company’s Memorandum of IncorporationCompany’s MoI does not set a mandatory retirement age for non-executive directors. However, in accordance with recommendations of King IV, - any independent non-executive director serving more than nine years should be subjected to a rigorous review of his or her independence and performance by the board.
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Service contracts
Non-Executive Directors
Non-executive directors receive fees for their services as directors which are approved by shareholders at annual general meetings.AGMs. Non-executive directors do not participate in the company’sCompany’s share incentive scheme.
Non-executive directors do not hold service contracts with the company.Company.
Executive Committee
All members of the Executive Management team have permanent employment contracts which entitle them to standard group benefits as defined by their specific region and participation in the company’s Bonus Share Plan,Company’s DSP. Interim appointments (interim Chief Financial Officer and interim Chief Development Officer) include an allowance aligned to the Long-Term Incentive Plan. All recently updated executive contracts include details on participation inCompany’s acting allowance policy to recognise the Co-Investment Plan.additional responsibilities associated with these roles.
South African-based executives are paid a portion of their remuneration offshore, which is detailed under a separate contract. This reflects global roles and responsibilities and takes account of offshore business requirements.
The executive contracts are reviewed annually and include a change of control provision. The change of control is subject to the following triggers:
•The acquisition of all or part of AngloGold Ashanti; or
•A number of shareholders holding less than thirty-five percent of the company’sCompany’s issued share capital consorting to gain a majority of the board and make management decisions; and
•The contracts of Executive Committeeexecutive committee members are either terminated or their role and employment conditions are curtailed.
In the event of a change of control becoming effective, thean executive will in certain circumstances be subject to both the notice period andreceive the change of control contract terms.terms at the end of the relevant notice period in line with their contractual agreement. The notice periodand change of control periods applied per category of executive and the change of control periods(excluding interim appointments) as at 31 December 20172022 were as follows:
| Executive Committee member | ||||||||
| Notice period | Change of control | |||||||
| Chief Executive Officer | 12 months | 12 months | ||||||
| Chief Financial Officer | 6 months | 6 months | ||||||
| Other Executive Management team members | 6 months | 6 months | ||||||
Key activities of the board and committees during 20172022
The activities of the board and committees during 20172022 were aimed at promoting the economic stability of the business. This entailed ensuring that its operations were conducted with due regard to the expectations and needs of stakeholders, the safety and health of employees and communities, and the development of systems to ensure proper access to and dissemination of credible information.
Board and committee meeting attendance
Board (3) | Audit and Risk | Investment | Remuneration and Human Resources | Social, Ethics and Sustainability | Nominations and Governance (4) | |||||||||||||||
| Number of meetings in 2022 | 9 | 7 | 7 | 9 | 5 | 7 | ||||||||||||||
| MDC Ramos | 9 | n/a | n/a | n/a | 5 | 6 | ||||||||||||||
| KOF Busia | 9 | n/a | 7 | n/a | 5 | 6 | ||||||||||||||
| A Calderon | 9 | n/a | n/a | n/a | n/a | n/a | ||||||||||||||
| AM Ferguson | 9 | 7 | n/a | 9 | n/a | 7 | ||||||||||||||
| AH Garner | 9 | n/a | 6 | 9 | n/a | n/a | ||||||||||||||
| R Gasant | 9 | 7 | 7 | 9 | n/a | 7 | ||||||||||||||
| SP Lawson | 9 | n/a | 7 | n/a | 5 | n/a | ||||||||||||||
NVB Magubane (1) | 6 | 4 | n/a | n/a | 4 | n/a | ||||||||||||||
KC Ramon (2) | 4 | n/a | 5 | n/a | n/a | n/a | ||||||||||||||
| MC Richter | 9 | 7 | n/a | 9 | n/a | 6 | ||||||||||||||
| JE Tilk | 9 | 7 | 7 | n/a | 5 | 6 | ||||||||||||||
(1) NVB Magubane passed away on 30 October 2022.
(2) KC Ramon retired from the Board effective 30 June 2022.
(3) During 2022, the Board held six scheduled Board meetings and three special Board meetings.
(4) Members of the boardNominations and Governance Committee participated in an additional meeting in respect of the recruitment of the CFO.
(5) All committees at the date of this report and attendance atheld four scheduled meetings during 2017 are disclosed in the table below:year.
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| Board | Audit and Risk | Investment | Remuneration and Human Resources | Social, Ethics and Sustainability | Nomination | ||||||||||||
| No of Meetings in 2017 | 7 | 5 | 4 | 4 | 5 | 2 | |||||||||||
| SM Pityana | 7 | n/a | n/a | 4 | 5 | 2 | |||||||||||
LW Nkuhlu(1) | 2 | 3 | 1 | 2 | n/a | 1 | |||||||||||
| R Gasant | 7 | 5 | 4 | n/a | n/a | n/a | |||||||||||
| DL Hodgson | 7 | n/a | 4 | n/a | 5 | n/a | |||||||||||
| NP January-Bardill | 7 | n/a | n/a | 4 | 5 | n/a | |||||||||||
| MJ Kirkwood | 7 | 5 | n/a | 4 | n/a | 2 | |||||||||||
| AH Garner | 7 | 5 | 4 | n/a | n/a | n/a | |||||||||||
| RJ Ruston | 7 | 5 | 4 | n/a | n/a | n/a | |||||||||||
MDC Richter(2) | 7 | 5 | n/a | 4 | n/a | 1 | |||||||||||
SV Zilwa(3) | 5 | 2 | 3 | 3 | n/a | n/a | |||||||||||
| S Venkatakrishnan | 7 | n/a | n/a | n/a | 5 | n/a | |||||||||||
| KC Ramon | 7 | n/a | 4 | n/a | n/a | n/a | |||||||||||
Audit and Risk Committee
The Audit and Risk Committee comprises sixthree (pending shareholder approval at the 2023 AGM of the appointment of two additional non-executive directors to the Audit and Risk Committee) independent Non-Executive Directorsnon-executive directors who collectively possess the skills and knowledge to oversee and assess the strategies and processes developed and implemented by management to manage the business within a continually evolving mining environment.
The Audit and Risk Committee’s duties as required by section 94(2)94(7) of the SA Companies Act, King IV and JSE Listing requirementsRequirements are set out in its board-approved terms of reference which is reviewed and updated annually. These duties were discharged as follows:
•reviewed the quarterly market updates and the half year results;
•confirmed the integrity of the group’sGroup’s Integrated Report, Annual Financial Statements and the Form 20-F;
•reviewed the expertise, experience and performance of the finance function and Chief Financial Officer;
•assessed the scope and effectiveness of the systems to identify, manage and monitor financial and non-financial risks;
•reviewed the procedures for detecting, monitoring and managing the risk of fraud;
•reviewed the scope, resources, results and effectiveness of the internal audit department;
•approved the internal audit plan and subsequent changes to the approved plan;
•ensured that a combined assurance model is applied to provide a co-ordinatedcoordinated approach to all assurance activities;
•nominated the appointment of independent external auditors by the shareholders;
•reviewed and approved the terms of engagement as contained in the engagement letter of the external auditors;
•approved the remuneration of the external auditors;
•pre-approved all non-audit services in line with a revised formal policy on non-audit services;
•assessed the external auditors’ independence;
•assessed the effectiveness of the group’sGroup’s external audit function;
•reviewed developments in reporting standards, corporate governance and best practice;
•monitored the governance of information technology (IT) and the effectiveness of the group’sGroup’s information systems; and
•reviewed the adequacy and effectiveness of the group’sGroup’s compliance function; andfunction.
Proceedings and Performance Review
The current members of the Audit and Risk Committee are:
Audit and Risk Committee Members (1) | AM Ferguson (Chairman and independent NED) | ||||
| R Gasant (Independent NED) | |||||
| JE Tilk (Independent NED) | |||||
| Number of meetings held from January to December 2022 | Seven | ||||
NED - Non-Executive Director
(1) The appointments of Mr Albert Garner and Mr Scott Lawson as members of the Audit and Risk Committee on 22 February 2023 is subject to shareholder approval at the annual general meeting on 15 May 2023.
The Chief Financial Officer,Officer; Senior Vice President: Finance, Group General Counsel and Company Secretary,Finance; Chief Legal Officer; Senior Vice President: Group Internal Audit; Vice President: Group Tax; Group Risk Manager; Chief Information Officer;Senior Vice President: Digital Technology; Vice President: Group Compliance Officer,Compliance; the external auditors, as well as other assurance providers are invited toregularly attend committee meetings in an ex officio capacity and provide responses to questions raised by committee members during meetings. The full Audit and Risk Committee meets separately during closed sessions with management (including the Chief Executive Officer), internal audit and external audit at every scheduled quarterly meeting.
The effectiveness of the board and its committees, including the Audit and Risk Committee, is assessed at least every two years, and every alternate year there is an opportunity for consideration, reflection and discussion by the board of its effectiveness through the completionperformance and that of an independent external evaluation process, results were discussed, actions taken and processes put in place to address areas identified for refinement.its committees.
Remuneration and Human Resources Committee (“Remco”)
The Remuneration and Human Resources CommitteeRemco activities are governed by the Terms of Reference (these were reviewed and approved atby the August 2017 Remuneration and Human Resources Committee meeting)board in May 2022). The purpose of the CommitteeRemco is to assist the Board in discharging its oversight responsibilities relating to all compensation, including annual base salary, annual incentive compensation, long-term incentive compensation, employment, severance pay and ongoing perquisites or special benefit items and equity compensation of the Company’s executives, including the Chief Executive Officer, as well as retention strategies, design and application of material compensation programmes and share ownership guidelines.
With respect to its mandate on human resources, the CommitteeRemco has strategic oversight of matters relating to the development of the Company’s human resources with the main objective of creating a competitive human resource for the Group.
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The committeeRemco operates in an independent role, operating as an overseer with accountability to the board.Board. This is accomplished by:
•Determining specific remuneration packages for the Executive Committee (the “ExCom”) members, and reviewing these annually. The broad framework and cost of executive remuneration shall be a matter for the Board on the recommendation and advice of the Remco;
•Reviewing and approving corporate goals and objectives relevant to the compensation of the executive management team;ExCom members;
•Evaluating the performance of the ExCom (excluding executive management teamdirectors) in light of these goals and objectives annually and setting each executive’s compensation based on such evaluation;evaluations;
•Ensuring that the mix of fixed and variable pay, in base pay, shares and other elements of compensation for each ExCom member meets the company’sCompany’s requirements and strategic objectives;
•Considering other matters relating to the remuneration of or terms of employment applicable to ExCom members that may be referred to the Remco by the Board;
•On an annual basis, or at intervals that the Remco may deem necessary, considering the results of independent research into executive remuneration trends, to assist the Remco in relation to strategic objectives;its decision-making regarding executive remuneration;
•Ensuring that all benefits, including retirement benefits and other financial arrangements are justified and correctly valued and reviewed annually;
•Considering the sentimentspayment of performance linked non-pensionable bonuses to ExCom members, and viewssetting the criteria for, and relative value of such payments;
•Satisfying itself as to the accuracy of recorded performance measures that govern the vesting of share awards and incentives;
•On an annual basis, approving the granting of share options or performance shares to qualifying employees of the company’s investors;Company;
•Regularly reviewing incentive schemes to ensure continued contribution to shareholder value and ensureensuring that these are administered in terms of the rules;rules of the relevant incentive scheme;
•Reviewing the executive director’s termination payments and ensuring the supply and retention of sufficient skilled resources to achieve the company’s objectives;
•Appointing an independent remuneration advisor to provide consultation to the executive directors, who make recommendations to the Board and implementation report is put to a non-binding advisory vote atshareholders on the general meetingremuneration of non-executive directors, taking into consideration market trends on non-executive directors’ remuneration, the views and sentiments of shareholders once every year; and
The current members of the CommitteeRemco are:
Remuneration and Human Resource Committee Members | |||||
Number of meetings held from January to December 2022 | |||||
Other individuals who regularly attended meetings (attended by invitation or if needed to contribute pertinent insights and information) | |||||
KC Ramon (former CFO) (1) | |||||
| L Ali (Chief People Officer) | |||||
| A Sidat representing | |||||
| CM van Dyk (Remuneration and Benefits | |||||
Remuneration Consultants
Mercer performs an independent bespoke executive survey and its advice is primarily around salary benchmarking for both executive and non-executive pay.
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6D. EMPLOYEES
The average number of attributable employees (including contractors) in the AngloGold Ashanti groupGroup over the last three financial years was:
| 2022 | 2021 | 2020 | |||||||||||||||
| Africa | 19,807 | 17,260 | 16,829 | ||||||||||||||
| Australia | 1,532 | 1,332 | 1,230 | ||||||||||||||
| Americas | 9,498 | 9,972 | 8,789 | ||||||||||||||
| Other, including corporate and non-gold producing subsidiaries | 1,757 | 1,997 | 1,807 | ||||||||||||||
South Africa - discontinued operations (1) | — | — | 8,297 | ||||||||||||||
| Total* | 32,594 | 30,561 | 36,952 | ||||||||||||||
* The number of contractors employed on average during 2022 was 18,599.
| 2017 | 2016 | 2015 | ||||||
| South Africa | 26,245 | 28,507 | 28,325 | |||||
| Continental Africa | 13,593 | 12,691 | 11,942 | |||||
| Australasia | 974 | 925 | 836 | |||||
Americas(1) | 8,511 | 8,126 | 8,432 | |||||
| Other, including corporate and non-gold producing subsidiaries | 2,157 | 2,400 | 2,731 | |||||
| Total* | 51,480 | 52,649 | 52,266 | |||||
Labour relations and collective bargaining
A global Employee Relations Standard governs employee and labour relations. The standard enables an approach to employee relations that is based on effective mechanisms for communication and participation, through direct and thoughtful engagement with employees, and where applicable, their representatives, such as trade unions.
Employees at most of our operations are unionised except those in Australia, Colombia and the United States. Although these employees are not unionised, the Company ensures sound employee relations through compliance with labour legislation in these countries, fair company policies and procedures and promoting healthy relationships through effective line management practices. The right to freedom of association and collective bargaining is not at risk at any of our operations.
Where our employees are unionised, we seek to build and maintain positive relations with representative unions as part of our overall stakeholder management philosophy. The table below shows the percentage of unionised employees covered by collective bargaining agreements by country:
| Employees covered by collective bargaining agreements | |||||
| Argentina | 90 percent | ||||
| Brazil | 100 percent | ||||
| Ghana | 86 percent | ||||
| Guinea | 94 percent | ||||
| Tanzania | 86 percent | ||||
No wage agreements in Africa were due or made during the reporting period. Biannual collective bargaining and negotiations are expected to commence towards the second quarter of 2023.
In Africa, there were no labour incidents which we recognise and apply according toresulted in stopping of operations in 2022, with the applicable laws and regulations in eachexception of one incident at the end of the countries in which we operate. Only our Australasiansecond quarter of 2022 when community unrest affected operations do not have collective bargaining, as this is not recognised in Australia.at the Siguiri mine. The unrest was related to unemployment and demands for the mine to employ members of the community. The incident was resolved by the Siguiri mine.
In the South Africa region, the Chief Operating OfficerBrazil, all three collective agreements (Nova Lima/Sabará, Santa Bárbara and the head of human resources brief all management employees regularly, and engageCrixás) were signed with the leadership of organised labour as necessary throughout the year. A forum is in place at which management and employees’ organised labour representatives meet regularly to discuss issues and act on employee-related matters, including the employee transition framework related to the restructuring in the South African operations in 2017. Using this forum, AngloGold Ashanti engaged with employees on the various restructuring processes undertaken during the year, including the sale of certain mines. The initial restructuring process took place in early 2017 when a section 189(3) notice was issued in terms of the Labour Relations Act, to terminate the employment of an estimated 849 employees. After extensive engagement with unions and regulators, all parties agreed to reduce the impact of job losses - by including voluntary severance packages and transfers. This resulted in only 21 employees being dismissed for operational requirements. Additionally, following a review of various options to safely turn around the performance of the loss-making operations, AngloGold Ashanti made the difficult decision to restructure certain South African business units. Consequently, further engagements were held with employees and their labour representatives - the unions and implemented effective August 2022. The country has experienced a higher inflation rate of 10.12 percent (Aug/21 – Jul/22) mostly generated by the DMR at nationalpolitical uncertainty and regional level.expectations around the Presidential campaign and the October electoral process. Despite this context, there was no operational impact or attempt to strike, unlike in 2021.
In Continental Africa - labour relations remained stable acrossArgentina, CVSA completed the regionannual salary negotiation, aligned with country inflation, with a final increase of 100.2 percent for 12 months (May 22 to April 23). The percentage of fulfilment of the 2022 objectives was also agreed with the unions.
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Full time employees receive a number of benefits not afforded to contractor employees. These include retirement, accommodation for selective employees, production and despite labour disputes on salaries at our Malian operationssafety related bonus schemes, and protracted wage negotiations at Siguiri, there were no production interruptions.reasonable and fair conditions of services in addition to resultant benefits emanating from collective bargaining.
The minimum notice period regarding operational changes varies from country to country. The Company successfully completed annual wage negotiations for the period atdoes, however, comply with all sites.relevant legislation.
6E. SHARE OWNERSHIP
DIRECTORS’ AND PRESCRIBED OFFICERS’ INTERESTS IN ORDINARY SHARES
The interests of directors and prescribed officers in the ordinary shares of the companyCompany at 31 December 20172022, which individually did not exceed 1one percent of the company’sCompany’s issued ordinary share capital are included in the annual financial statements,statements; see "Item“Item 18: Financial Statements—Note 32 - 31—Related Parties - Parties—Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares"shares”.
A register detailing Directors and Prescribed Officers’ interests in contracts is available for inspection at the company’sCompany’s registered and corporate office. See “Item 10H: Documents on Display”.
CHANGE IN DIRECTOR’SDIRECTORS’ AND PRESCRIBED OFFICER’SOFFICERS’ INTERESTS IN ANGLOGOLD ASHANTI SHARES SINCE 31 DECEMBER 20172022
Refer "Itemto “Item 18: Note 32 - 31—Related Parties - Parties—Directors’ and Prescribed Officers’ interests in AngloGold Ashanti shares"shares”.
SHARE OWNERSHIP OF EXECUTIVE OFFICERS/EXECUTIVE MANAGEMENT
MINIMUM SHAREHOLDING REQUIREMENT FOR EXECUTIVESEXECUTIVE MANAGEMENT
With effect from March 2013, a minimum shareholding requirement (MSR) is applicable to all executives as indicated below:
The MSR was extended to be noted that the CFO’s MSR percentage was amended to be aligned with the executive committee members MSR being 75 percent for three years and 150 percent for six years within the years of appointment.include a 12-month post-termination holding, effective 1 January 2022:
| Role | Within three years of appointment/from introduction of MSR (1 January 2020) | Within six years of appointment/from introduction of MSR (1 January 2020) | Holding requirement | 12-month Post-Termination Holding (1 January 2022) | ||||||||||||||||
| CEO | 150% of net annual base salary | 300% of net annual base salary | Throughout employment as a director or prescribed officer | The post-termination MSR will be the requirement based on the MSR policy at the time of termination. Should the executive depart (or no longer serve as director or prescribed officer) before they have achieved the MSR, all vested shares allocated effective 1 January 2022 onwards from the Company’s share incentive will be held for a one-year post-termination period. The holding will be up to their required MSR. | ||||||||||||||||
| CFO | 125% of net annual base salary | 250% of net annual base salary | ||||||||||||||||||
| Executive Management Team | 100% of net annual base salary | 200% of net base salary | ||||||||||||||||||
The following count towards an individual MSR: •Shares purchased on the market, either directly or indirectly •Vested shares from AngloGold Ashanti’s share incentive schemes Accumulation of the post-termination holding commences on 1 January 2022, Executives have five years from introduction or appointment to accumulate holding. | ||||||||||||||||||||
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The table below summarises each executive director and executive committee member’s accomplishment of the MSR:
| Executive | Target Achievement Date | Three Year MSR Target Achievement Percentage | MSR holding as at 31 Dec 2017 as % of net base pay | Six-year MSR Target Achievement Percentage | |||||||
| Executive Directors | |||||||||||
| S Venkatakrishnan | March 2016 | 100 | % | 1,229 | % | 200 | % | ||||
| KC Ramon | March 2018 | 75 | % | 188 | % | 150 | % | ||||
| Prescribed Officers | |||||||||||
| CE Carter | March 2016 | 75 | % | 239 | % | 150 | % | ||||
| GJ Ehm | March 2016 | 75 | % | 387 | % | 150 | % | ||||
L Eybers(1) | March 2020 | 75 | % | 58 | % | 150 | % | ||||
| DC Noko | March 2016 | 75 | % | 519 | % | 150 | % | ||||
| ME Sanz Perez | March 2016 | 75 | % | 405 | % | 150 | % | ||||
C Sheppard(2) | March 2019 | 75 | % | 35 | % | 150 | % | ||||
TR Sibisi(3) | March 2020 | 75 | % | 21 | % | 150 | % | ||||
| Executive | Six-year target achievement date | MSR holding as at 31 December 2022 as a percentage of net base pay | Three-year MSR target achievement percentage | Six-year MSR target achievement percentage | ||||||||||
| Executive directors | ||||||||||||||
| A Calderon | September 2027 | 38% | 150% | 300% | ||||||||||
| Prescribed officers | ||||||||||||||
L Ali (1) | April 2028 | 56% | 100% | 200% | ||||||||||
| SD Bailey | January 2025 | 298% | 100% | 200% | ||||||||||
TJ Briggs (1) | April 2028 | 0% | 100% | 200% | ||||||||||
| L Eybers | March 2023 | 491% | 100% | 200% | ||||||||||
| MC Godoy | October 2027 | 206% | 100% | 200% | ||||||||||
I Kramer (2) | July 2028 | 4% | 100% | 200% | ||||||||||
| L Marwick | July 2026 | 144% | 100% | 200% | ||||||||||
(1) | Appointed prescribed officer with effect from | ||||||||||||||
| April 2025 | |||||||||||||||
(2) | |||||||||||||||
During February 2022, the board approved an MSR for NEDs. In terms of the policy, NEDs are required to acquire and hold an MSR in meeting their MSR’s, with effect from February 2013, they were given the opportunity, on a voluntary basis,AngloGold Ashanti shares, equivalent to participate in the Co-Investment Plan (CIP), and this has been adopted on the conditions below:
| Four-year target achievement date | MSR holding as at 31 December 2022 as a percentage of annual base fee | Two-year MSR target achievement percentage | Four-year MSR target achievement percentage | |||||||||||
| Non-Executive Directors | ||||||||||||||
| MDC Ramos (Chairperson) | February 2026 | 0% | 75% | 150% | ||||||||||
| R Gasant (Lead independent director) | February 2026 | 0% | 75% | 150% | ||||||||||
| KOF Busia | February 2026 | 36% | 75% | 150% | ||||||||||
| AM Ferguson | February 2026 | 90% | 75% | 150% | ||||||||||
| AH Garner | February 2026 | 404% | 75% | 150% | ||||||||||
| SP Lawson | February 2026 | 51% | 75% | 150% | ||||||||||
| MC Richter | February 2026 | 203% | 75% | 150% | ||||||||||
| JE Tilk | February 2026 | 50% | 75% | 150% | ||||||||||
ANGLOGOLD DEFERRED SHARE PLAN (DSP)
On 16 May 2017, the shareholders approved the introduction of the DSP. The DSP became effective 1 January 2018 and was designed to participatebetter align the interests of Company management with those of shareholders by rewarding decision-making that promotes the long-term health of the business by increasing the maximum vesting period of shares from two to five years, and introducing a claw-back provision, reducing the impact of uncontrollable factors, like gold price and currency fluctuations, in a further matching scheme by purchasingdetermining remuneration, providing better incentive for prudent, value-adding capital allocation, capping the number of shares that can be issued under the DSP in any given year to one percent of total shares in AngloGold Ashanti,issue, and providing greater incentives for excellence in the company will match their initial investment intobroad area of sustainability, which covers the scheme at 150 percent, with vesting over a two-year periodsafety, environmental, health, governance, community relations and human capital disciplines.
The scope of participation in two equal tranches. It is to be noted that due to implementation of the new incentive scheme, Deferred Share Plan in January 2018, the last CIP participation will be in 2018 in respect of the cash bonus for 2017 performance year.
Non-Executive Directors are not eligible to participate in the shareDSP.
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DSP awards are payable in cash and where applicable (depending on stratum level), the balance will be delivered in one of two compensation components, either deferred cash or deferred shares, vesting equally over a period of two to five years. For each member of the Executive Management Team, the deferred portion is paid entirely in deferred shares vesting over a five-year period. Deferred shares have a right to receive dividend equivalents during the deferral period.
The total incentive scheme.is determined based on a combination of Company and individual performance measures, which are defined annually with weightings applied to each measure. Each metric is weighted and has a threshold, target and stretch achievement level related to the Company budget and the desired stretch targets for the year. Below-threshold achievement results in no payment. At the end of each financial year, the Company’s and the CEO and CFO's performance is assessed by the Remco and the board and the performance of the other members of the executive management team is assessed by the Remco against the defined metrics to determine the quantum of the cash portion and the quantum of the deferred portion as a percentage of base salary based on on-target achievement:
| Cash | Shares | Total Incentive | |||||||||
| Level | On-Target Achievement | ||||||||||
| CEO | 100.00% | 200.00% | 300.00% % % | ||||||||
| CFO | 85.00% % | 185.00% % | 270.00% % % | ||||||||
| Executive Management Team | 75.00% % | 174.00% % | 249.00% % % | ||||||||
CEO means Chief Executive Officer.
CFO means Chief Financial Officer.
The graphs below illustrate the threshold, on-target and stretch for the DSP scheme and performance measure weightings (Company and individual) as a percentage of base salary:
One set of performance metrics is used to determine the cash portion and deferred portion. Future vesting of the deferred portion is subject to continued employment with the exception of the ExCom members who have post-termination vesting for good-leavers. Individual KPIs account for 20 percent of the performance scorecard in the shareDSP incentive scheme toand Company performance accounts for the extentremaining 80 percent. Company metrics are relative total shareholder return, absolute total shareholder return, normalized cash return on equity, production, all-in sustaining costs, total cash costs, mineral reserve additions pre-depletion, mineral resource additions pre-depletion, safety, health, environment and community metrics and people metrics.
Company and individual performance measures are assessed over each financial year, with the exception of certain Company measures that they are granted options or rights to acquire shares and accept them. All options or rights which have not been exercised within ten years frommeasured over a trailing three-year basis. The first allocation under the date of grant, automatically expire.
The DSP was amended and restated by the board of directors on 20 February 2023 to acquire one ordinary sharereflect our current practice by adding flexibility to grant sign-on awards to new employees of AngloGold Ashanti and to compensate them for incentive awards that they have forfeited from their previous employer.
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The Committee approved the 2022 DSP metrics Company performance achievement of 94.86 percent. This was an important year for the Company and the following results, among others, demonstrate re-alignment of the strategic priorities and focused delivery.
Key highlights include:
•Incorporating a diverse new executive team and making significant changes at “nil” cost, provided that the participant remainssenior vice president and critical skills level in the employareas of Supply, Projects, Digital Technology and Operations
•Achieving an unprecedented safety performance which positions the Company well below the industry average in key metrics and demonstrates significant progress in resetting the safety culture
•Surpassing the production budget for the first time since 2017 and delivering Obuasi targets
•Reducing real cash costs which were less than one percent above the top end of guidance, rising by six percent year on year, which was roughly half the inflation rate experienced for the Company’s basket of goods and services
•Consolidating Nevada as a multi-decade, cost-competitive new growth project
The table below summarises AngloGold Ashanti’s remuneration metrics, their weightings, and performance against these metrics applicable to the DSP during 2022:
| DSP performance measure | Weighting | Threshold measures | Target measures | Stretch measures | 2022 achievement % | |||||||||||||||
| Financial measures | Relative total shareholder return (measured in US$) | 12.50% | Median TSR of comparators | Halfway between median and upper quartile | Upper quartile TSR of comparators | 0.00% | ||||||||||||||
| Absolute total shareholder return (measured in US$) | 7.50% | USD COE (6%) | USD COE + 2% (8%) | USD COE + 6% (12%) | 11.25% | |||||||||||||||
| Normalised cash return on equity (nCROE) | 15.00% | USD COE (6%) | USD COE + 9% (15%) | USD COE + 18% (24%) | 22.50% | |||||||||||||||
| Production | 15.00% | 2,550 oz (000) | 2,734 oz (000) | 2,837 oz (000) | 15.60% | |||||||||||||||
| Total cash cost | 10.00% | $1,015 / oz | $963 / oz | $915 / oz | 0.00% | |||||||||||||||
| All-in sustaining costs | 5.00% | $1,425 / oz | $1,355 / oz | $1,285 / oz | 4.00% | |||||||||||||||
| Future optionality | Mineral Reserve additions (pre-depletion, asset sales, mergers and acquisitions) | 5.50% | Plus 1.6 Moz | Plus 3.2 Moz | Plus 4.8 Moz | 5.98% | ||||||||||||||
| Mineral Resources (pre-depletion, asset sales, mergers and acquisitions) | 5.50% | Plus 4.2 Moz | Plus 8.3 Moz | Plus 12.5 Moz | 4.10% | |||||||||||||||
| Safety | All injury frequency rate (AIFR) – one year | 8.00% | ≥2.5% performance improvement (2.07) | ≥5% performance improvement (2.01) | ≥7.5% performance improvement (1.96) | 11.24% | ||||||||||||||
| Major hazard control compliance | 95% critical control compliance | 99% critical control compliance | 99.5% critical control compliance | |||||||||||||||||
| Health, Environmental and Community | Health (2.5%): Reduction in workforce exposed to high respirable crystalline silica dust | 12.00% | 4% reduction | 7% reduction | 13% reduction | 17.33% | ||||||||||||||
Environment (7.5%): Greenhouse gas emissions management | 110% of budgeted carbon emission intensity (37.91) | 100% of budgeted carbon emission intensity (34.46) | 95% of budgeted carbon emission intensity (32.74) | |||||||||||||||||
Community (2%): Business disruptions as a result of community unrest | 2 | 1 | 0 | |||||||||||||||||
| People | Gender diversity | 4.00% | 21% female representation | 23% female representation | 25% female representation | 2.86% | ||||||||||||||
| Key staff retention | 85% pa | 90% pa | 95% pa | |||||||||||||||||
| Total | 100% | 94.86% | ||||||||||||||||||
Relative TSR measures the Company’s share price performance compared to the peer group on a relative basis. It is measured on a three-year trailing average. A total of seven peers (Agnico Eagle Ltd, Barrick Gold Corp, Gold ETF, Gold Fields Ltd, Kinross Gold Corp, Newcrest Mining Ltd and Newmont Mining Corp) are measured and numerically ranked; the positioning of AngloGold Ashanti in the ranking determines the bonus achievement.
Based on the criteria below for 2022, AngloGold Ashanti was ranked seventh and was therefore positioned below the median at a growth percentage of 13.00 percent; therefore, the achievement was calculated at below threshold (0 percent).
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Criteria table for relative TSR
| Threshold achievement (50%) | 33.93% | Median | ||||||
| Target achievement (100%) | 49.05% | Halfway between median and upper quartile | ||||||
| Stretch achievements (150%) | 64.17% | Upper quartile | ||||||
Absolute TSR measures the Company’s share price performance on a three-year trailing average and compares it to a percentage increase relating to US cost of equity (US COE). The stretch target is achieved if US COE plus 6 percent is exceeded based on this calculation. Currently the US COE is 6 percent, resulting in the stretch target being 12 percent.
Criteria table for absolute TSR
| Threshold achievement (50%) | US cost of equity (COE) | 6.00% | ||||||
| Target achievement (100%) | COE + 2% | 8.00% | ||||||
| Stretch achievements (150%) | COE + 6% | 12.00% | ||||||
The Company’s growth percentage of 13.00 percent places them above the US COE plus 6 percent (12 percent); therefore, the achievement is on stretch (11.25 percent). Refer to the TSR ranking table above.
Additional details regarding the award outcomes for the CEO and CFO under the DSP for 2022 are provided below.
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CEO: Key Objectives and Achievements for 2022:
| Scorecard | Weighting | Comments | ||||||
Health, safety, environment and community •Safety – 12.5% •Health, environment and community – 12.5% •Results aligned to Company DSP outcome | 25% | AngloGold Ashanti’s safety performance improved year-on-year •Total recordable injury frequency rate improved 41% to a record 1.26 in 2022 – less than half the 2021 ICMM member average of 2.90 •Lost-time injury frequency rate fell 40% to 0.65 year-on-year •Visible leadership on Major Hazard Critical Controls programme •Set new Scope 1 and 2 greenhouse gas reduction targets for 2030, including detailed programme of projects and capital estimates | ||||||
Financial and production •Achievement of budget production oz’s and cash cost / oz •Significantly advance Project Full Potential: Identify the full potential of 5-6 operations and the measures to close the gap during following 24 months •Build major projects for the company’s long- term future inclusive of significant progress made on: ▪Obuasi – 5% ▪Colombia project – 5% ▪Nevada project – 5% •Support the move of major capital projects through development phases | 55% | Exceeded budgeted production for first time since 2017. Achieved real cash cost reduction of 6% in volatile, inflationary environment, closing the gap vs. peer group, where costs increased above inflation: •Improvement projects helped offset significant exogenous factors, including flooding in Brazil and Covid impact on labour in Australia •Siguiri management intervention helped exceed planned production amid challenging operating conditions •Obuasi production met market expectations Initiated Full Asset Potential Programme: •Six sites underwent FP programme; potential cost reductions identified •Workbooks in place to realise efficiencies over c.24 months Growth Projects: •Quebradona Optimised Feasibility Study progressed; Environmental Impact assessment is in progress •North Bullfrog feasibility study expected now in first half of 2023; Feasibility study for Silicon rescheduled to include Merlin and other orebodies | ||||||
Individual KPIs •Embed Operating Model changes •Effective stakeholder management through: | 20% | •Implemented new Operating Model; achieved planned personnel efficiencies in corporate functions and business units, with commensurate cost benefits | ||||||
▪Good corporate governance and risk management | Corporate governance - simplified Delegation of Authority framework and implemented review of Group policies and standards | |||||||
▪Effective relationships with shareholders and investors | •Worked to develop relationship with shareholders and analysts through industry conferences, roadshows and roundtable meetings. Improved market understanding of overall strategy and Full Asset Potential process, aided by engagement during results reporting and set-piece engagements | |||||||
▪Good relations with governments in operating countries | •Government relations strengthened - increased personal interactions with key officials, including high-level meetings with governments of Ghana and Tanzania to strengthen relationships and discuss issues of mutual interest | |||||||
▪Effective regular communication with board, executive committee, operations, projects and employees | •Employee townhalls, site visits and visible leadership on mental wellbeing and sexual harassment prevention campaigns. Culture survey results and subsequent workshops and feedback sessions have effectively boosted employee morale and engagement | |||||||
•Implemented an integrated new ExCom and significant changes at senior management level to ensure robust capability to deliver the business plan | ||||||||
•Global implementation of the anti-discrimination and sexual harassment standards | ||||||||
| Total | 100% | |||||||
| CEO: Performance incentive outcome 2022 | ||||||||
| 2022 DSP performance outcome | Weighting | DSP award outcome | ||||||
| Financial performance targets | ||||||||
| Relative total shareholder return | 12.50% | 0.00% | ||||||
| Absolute total shareholder return | 7.50% | 11.25% | ||||||
| Normalised cash return on equity (nCROE) | 15.00% | 22.50% | ||||||
| Production | 15.00% | 15.60% | ||||||
| Total Cash Costs | 10.00% | 0.00% | ||||||
| All-in sustaining costs | 5.00% | 4.00% | ||||||
| Mineral Reserve pre-depletion | 5.50% | 5.98% | ||||||
| Mineral Resource additions pre-depletion | 5.50% | 4.10% | ||||||
| Safety | 8.00% | 11.24% | ||||||
| Health, Environment and Community | 12.00% | 17.33% | ||||||
| Core value: People | 4.00% | 2.86% | ||||||
| Total % for Company performance: | 100.0% | 94.86% | ||||||
| . | ||||||||
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| Organisational performance weighting: | 80.00% | |||||||
| = | ||||||||
| A - Organisational performance weighted outcome: | 75.89% | |||||||
| Individual performance results | ||||||||
| Actual individual targets and strategic objectives are not disclosed in order to maintain commercial confidentiality in competitive markets | ||||||||
| Individual performance weighting: | 20.00% | |||||||
| X | ||||||||
| Performance rating award correlation: | 150.00% | |||||||
| = | ||||||||
| B - DSP opportunity based on individual performance: | 30.00% | |||||||
| Total % of DSP pay opportunity (A+B) | 105.89% | |||||||
| x | ||||||||
| On-target total cash bonus opportunity (as % of base pay) | 100.00% | |||||||
| On-target total deferred share award opportunity (as % of base pay) | 200.00% | |||||||
| = | ||||||||
| Final cash bonus result (as % of base pay) | 105.89% | |||||||
| Final deferred share result (as % of base pay) | 211.78% | |||||||
| Base pay as at 31 December 2022 (all offshore payments converted to ZAR at exchange rate of ZAR16.3655: USD1) | x | |||||||
| 26,184,800 | ||||||||
| = | ||||||||
| Annual cash portion of DSP: | 27,726,561 | |||||||
| Annual deferred share portion of DSP (to vest over five years): | 55,453,122 | |||||||
| Total 2022 deferred share plan award: | 83,179,683 | |||||||
CFO: Key Objectives and Achievements for 2022:
| Scorecard | Weighting | Comments | ||||||
| Leadership and stakeholder engagement | 5% | •Maintained effective relationships with equity and debt investors, banks, ratings agencies, auditors and joint venture partners •Continued to provide input at relevant stakeholders’ forums on financial, tax and regulatory matters | ||||||
| Liquidity, credit ratings and balance sheet management | 15% | •Refinanced $1.4bn multi-currency RCF by mid-June 2022 at favourable terms, for a five-year tenure with two one-year extensions •Proactively engaged the ratings agencies on the Company’s strategy, operational performance, and cost initiatives. AngloGold Ashanti’s credit ratings were maintained by all three credit ratings agencies | ||||||
| Cost discipline and cash preservation measures | 50% | •Production and cost guidance remained on track for the year in the first half of 2022 •Maintained focus on optimising corporate costs, as well as non-essential expenditure •Proactively managed supply chain risks across the business amidst challenging market conditions resulting from COVID-19-related impacts and the Russia/Ukraine war | ||||||
•Adequate levels of consumables and spares (3-6 months) have been maintained across the operations to maintain business continuity. Targeted supply chain savings remained on track despite inflationary pressures due to stocking and pricing strategies and ensured that the full asset potential programme was adequately supported | ||||||||
| Governance and risk management | 15% | •Ensured that a strong culture of compliance and consistency of accounting practices prevailed through regular interaction with business units •Ensured a strong focus on the Tanzanian tax matters and that there is appropriate disclosure of all tax exposures •Assessed oil hedging at various intervals earlier in the year | ||||||
| Implementation of the Operating Model | 15% | •The approved Operating Model structures for the Finance and Supply functions were embedded well before the end of June 2022; appropriate transition plans developed identified risks •Ensured that the business process optimisation initiatives had been progressed and that projects have been put in place to address the recommendations | ||||||
| Total | 100% | |||||||
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| CEO: Performance incentive outcome 2022 | ||||||||
| 2022 DSP performance outcome | Weighting | DSP award outcome | ||||||
| Financial performance targets | ||||||||
| Relative total shareholder return | 12.50% | 0.00% | ||||||
| Absolute total shareholder return | 7.50% | 11.25% | ||||||
| Normalised cash return on equity (nCROE) | 15.00% | 22.50% | ||||||
| Production | 15.00% | 15.60% | ||||||
| Total Cash Costs | 10.00% | 0.00% | ||||||
| All-in sustaining costs | 5.00% | 4.00% | ||||||
| Mineral Reserve pre-depletion | 5.50% | 5.98% | ||||||
| Mineral Resource additions pre-depletion | 5.50% | 4.10% | ||||||
| Safety | 8.00% | 11.24% | ||||||
| Health, Environment and Community | 12.00% | 17.33% | ||||||
| Core value: People | 4.00% | 2.86% | ||||||
| Total % for Company performance: | 100.0% | 94.86% | ||||||
| Organisational performance weighting: | 80.00% | |||||||
| = | ||||||||
| A - Organisational performance weighted outcome: | 75.89% | |||||||
| Individual performance results | ||||||||
| Actual individual targets and strategic objectives are not disclosed in order to maintain commercial confidentiality in competitive markets | ||||||||
| Individual performance weighting: | 20.00% | |||||||
| X | ||||||||
| Performance rating award correlation: | 112.50% | |||||||
| = | ||||||||
| B - DSP opportunity based on individual performance: | 22.50% | |||||||
| Total % of DSP pay opportunity (A+B) | 98.39% | |||||||
| x | ||||||||
| On-target total cash bonus opportunity (as % of base pay) | 85.00% | |||||||
| On-target total deferred share award opportunity (as % of base pay) | 185.00% | |||||||
| = | ||||||||
| Final cash bonus result (as % of base pay) | 83.63% | |||||||
| Final deferred share result (as % of base pay) | 0.00%(1) | |||||||
| Base pay for six months as at 30 June 2022 (all offshore payments converted to ZAR at exchange rate of ZAR16.3655: USD1) | x | |||||||
| 5,441,578 | ||||||||
| = | ||||||||
| Annual cash portion of DSP: | 4,550,781 | |||||||
| Annual deferred share portion of DSP (to vest over five years): | — | |||||||
| Total 2022 deferred share plan award: | 4,550,781 | |||||||
(1) Deferred share award was not payable because of the company at the dateCFO’s termination of vesting unless an event, such as death, retirement or redundancy occurs, which may result in a pro-rata allocation of awards and an earlier vesting date.service.
PARTICIPATION BY EXECUTIVE DIRECTORS, EXECUTIVE MANAGEMENT TEAM MEMBERS AND OTHER MANAGERS IN THE ANGLOGOLD SHARE INCENTIVE SCHEME
For details of the optionsshare-based awards and rights to subscribe for ordinary shares in the companyCompany granted to, and exercised by, executive directors, executive management team members and other managers on an aggregate basis during the year to 31 December 20172022 and subsequent to year end up to 1610 March 2018,2023, see "Item“Item 18: Financial Statements—Note 32 - 31—Related Parties - Parties—Directors and other key management personnel - Number of options and awards granted"personnel”.
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Bonus Share Plan(1) | Long-Term Incentive Plan(1)(2) | |||||
| At 1 January 2017 | 4,198,285 | 4,435,368 | ||||
| Movement during the year | ||||||
– Granted | 1,926,549 | — | ||||
– Exercised | (1,426,554 | ) | (404,301 | ) | ||
– Lapsed/forfeited | (218,601 | ) | (1,512,857 | ) | ||
| At 31 December 2017 | 4,479,679 | 2,518,210 | ||||
| Subsequent to year-end | ||||||
– Exercised | (64,165 | ) | (7,344 | ) | ||
– Lapsed/forfeited | (19,995 | ) | (5,593 | ) | ||
| At 28 February 2018 | 4,395,519 | 2,505,273 | ||||
ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
Overview
Description of AngloGold Ashanti’s share capital
AngloGold Ashanti’s share capital consists of four classesone class of stock:
•Ordinary shares, par value 25 South African cents each (the “ordinary shares”);
The authorised and issued share capital of AngloGold at 31 December 20172022 is set out below:
Title of class (1) | Authorised | Issued | ||||||||||||
| Ordinary shares | 600,000,000 | 418,600,473 | ||||||||||||
| Title of class | Authorised | Issued | ||||
| Ordinary shares | 600,000,000 | 410,054,615 | ||||
| A preference shares | 2,000,000 | 2,000,000 | ||||
| B preference shares | 5,000,000 | 778,896 | ||||
| C preference shares | 30,000,000 | 0 | ||||
All the issued ordinary shares, A redeemable preference shares and B redeemable preference shares are fully paid and are not subject to further calls or assessment by AngloGold Ashanti. For a discussion of rights attaching to the ordinary shares, the A redeemable preference shares, the B redeemable preference shares and the C redeemable preference shares, see “Item 10B: Memorandum of Incorporation”.
The following are the movements in the ordinary issued share capital at 31 December:
Ordinary shares
| Number of Shares | Rand | Number of Shares | Rand | Number of Shares | Rand | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
| At 1 January | 417,501,452 | 104,375,363 | 416,890,087 | 104,222,522 | 415,301,215 | 103,825,304 | |||||||||||||||||||||||||||||||||||
| Issued during the year: | |||||||||||||||||||||||||||||||||||||||||
| Exercise of options by participants in the AngloGold Share Incentive Scheme | 1,099,021 | 274,755 | 611,365 | 152,841 | 1,588,872 | 397,218 | |||||||||||||||||||||||||||||||||||
| 31 December | 418,600,473 | 104,650,118 | 417,501,452 | 104,375,363 | 416,890,087 | 104,222,522 | |||||||||||||||||||||||||||||||||||
Number of Shares | Rand | Number of Shares | Rand | Number of Shares | Rand | |||||||||||||
| 2017 | 2016 | 2015 | ||||||||||||||||
| At 1 January | 408,223,760 | 102,055,940 | 405,265,315 | 101,316,329 | 404,010,360 | 101,002,590 | ||||||||||||
| Issued during the year: | ||||||||||||||||||
| Exercise of options by participants in the AngloGold share Incentive Scheme | 1,830,855 | 457,714 | 2,958,445 | 739,611 | 1,254,955 | 313,739 | ||||||||||||
| 410,054,615 | 102,513,654 | 408,223,760 | 102,055,940 | 405,265,315 | 101,316,329 | |||||||||||||
During the period from 1 January 20182023 to and including 1910 March 2018, 683,5442023, 246,930 ordinary shares were issued at an average issue price of R178.70R270.27 per share, resulting in 410,738,159418,847,403 ordinary shares being in issue at 1910 March 2018.2023.
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7A. MAJOR SHAREHOLDERS
According to information available to the directors, the following are the only shareholders or their associates holding, directly or indirectly, in excess of 5five percent of the ordinary issued share capital of the company:Company:
| Ordinary shares held at | 31 December 2022 | 31 December 2021 | 31 December 2020 | |||||||||||||||||||||||||||||||||||
| Shareholder* | Number of Shares | Percent Voting Rights | Number of Shares | Percent Voting Rights | Number of Shares | Percent Voting Rights | ||||||||||||||||||||||||||||||||
| Public Investment Corporation of South Africa | 51,477,205 | 12.30 | 44,332,506 | 10.62 | 39,846,637 | 9.56 | ||||||||||||||||||||||||||||||||
| BlackRock Inc. | 29,536,274 | 7.06 | 27,155,066 | 6.50 | 27,956,084 | 6.71 | ||||||||||||||||||||||||||||||||
| Van Eck Associates Corporation | 23,602,172 | 5.64 | n/a | n/a | 26,488,311 | 6.35 | ||||||||||||||||||||||||||||||||
| Coronation Holdings | n/a | n/a | 37,322,250 | 8.94 | n/a | n/a | ||||||||||||||||||||||||||||||||
| Ordinary shares held at | 31 December 2017 | 31 December 2016 | 31 December 2015 | ||||||||||||
| Shareholder* | Number of Shares | Percent Voting Rights | Number of Shares | Percent Voting Rights | Number of Shares | Percent Voting Rights | |||||||||
| BlackRock Inc. | 38,926,159 | 9.49 | 42,966,540 | 10.53 | |||||||||||
| Public Investment Corp. of South Africa | 25,808,607 | 6.29 | 25,580,542 | 6.27 | 25,936,314 | 6.40 | |||||||||
| Van Eck Global | 24,485,374 | 6.00 | 26,941,752 | 6.65 | |||||||||||
| Investec Asset Management (Pty) Limited (South Africa) | 31,185,069 | 7.69 | |||||||||||||
| Paulson & Co., Inc | 25,027,300 | 6.18 | |||||||||||||
| Dimensional Fund Advisors | 20,901,571 | 5.16 | |||||||||||||
* Shares may not necessarily reflect the beneficial shareholder.
At 31 December 2017,2022, a total of 159,347,405125,736,908 shares (or 3930 percent of issued ordinary share capital) were held by The Bank of New York Mellon, as Depositary for the company’sCompany’s American Depositary Receipt programme. Each American Depositary Share (ADS) is equivalent to one ordinary share. At 31 December 2017,2022, the number of persons who were registered holders of ADSs was reported at 2,423.1,928. AngloGold Ashanti is aware that many ADSs are held of record by brokers and other nominees, and accordingly the above numbers are not necessarily representative of the actual number of persons who are beneficial holders of ADSs or the number of ADSs beneficially held by these persons.
All ordinary shareholders have the same voting rights.
As at 31 December 2017,2022, there were 11,925 25,543holders on record of AngloGold Ashanti ordinary shares. Of these holders 447478 had registered addresses in the United States and held a total of 56,677,316179,898,324 ordinary shares, 13.82or 42.98 percent of the total outstanding ordinary shares. In addition, certain accounts on record with registered addresses outside the United States, including The Bank of New York Mellon, hold AngloGold Ashanti ordinary shares, in whole or in part, beneficially for United States persons.
At 1910 March 2018,2023, a total of 164,571,109124,073,857 ADSs or 4029.62 percent of total issued ordinary share capital were issued and outstanding and held on record by 2,4021,914 registered holders.
Insofar as is known to AngloGold Ashanti, there was no person who, directly or indirectly, jointly or severally, exercised or could exercise control over AngloGold Ashanti, nor is AngloGold Ashanti aware of any arrangements which might result in a change in control of AngloGold Ashanti.
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7B. RELATED PARTY TRANSACTIONS
The Company had the following transactions with related parties during the year ended 31 December 2017:
December:
Purchases from related party | ||||||
| (in million) | $ | |||||
| Purchases of goods and services from related parties | ||||||
| Rand Refinery (Pty) Limited | ||||||
Amounts due byto joint ventures and associates arising from purchases of goods and services are unsecured and non-interest bearing.
As at 31 December 2017 the outstanding balances arising from the sale of goods and services due by related parties is $9m.
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7C. INTERESTS OF EXPERTS AND COUNSEL
Not applicable.
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ITEM 8: FINANCIAL INFORMATION
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8A. CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION
See “Item“Item 18: Financial statements”Statements”.
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LEGAL PROCEEDINGS
There is no material proceeding in which a director, officer or affiliate of AngloGold Ashanti is either a party adverse or has a material interest adverse to the company.Company.
In addition to the proceedings described below, the companyCompany becomes involved, from time to time, in various claims, legal proceedings and complaints incidental to the ordinary course of its business.
TAX MATTERS
•The State of Minas Gerais v. Mineração Serra Grande S.A. (MSG): In Brazil, MSG received a tax assessment in October 2003 from the State of Minas Gerais related to VAT on gold bullion transfers. The tax administrators rejected the company’sMSG’s appeal against the assessment. The company is now appealingassessment, which amounted to approximately $9.6 million. MSG appealed the dismissal of the case to the State Court of Minas Gerais. The assessment is approximately $13.6 million. Any possible payment by MSG would be set off by an indemnity from Kinross Gold Corporation (Kinross) of $8.4 million.
$5 million provided for as part of the company’s acquisition of Kinross’ interest in MSG in 2012. The matter is currently pending in the State Court of Minas Gerais.•Brazilian tax authorities v. AngloGold Ashanti BrazilCórrego do Sítio Mineração (AABM)SA and Mineração Serra Grande S.A. (MSG): AngloGold Ashanti’s subsidiaries in Brazil, including AABM,AGA Mineração (formerly AngloGold Ashanti Brasil Mineração Ltda) and MSG, are involved in various disputes with the Brazilian tax authorities. These disputes date back toas far as 2007 and involve federal tax assessments including income tax, royalties, social contributions, VAT and annual property tax. In December 2017, new VAT assessments (totalling $14 million) were received. Collectively, the total possible amount involved across all tax disputes in Brazil is approximately $24$46.5 million, which include VAT claims and social security payments of $36 million.
Since 2019, Gramalote also received various notices from the DIAN that it disagreed with its 2013 and 2014 income tax returns on the same basis as the abovementioned AGAC returns, calculating additional taxes as well as penalties and interest. However, Gramalote also believes that the DIAN has applied the tax legislation incorrectly and subsequently filed lawsuits before the Administrative Court of Cundinamarca challenging each of the DIAN’s rulings in respect of those tax returns. Gramalote’s lawsuits with respect to its 2013 and 2014 tax returns are still pending before the Administrative Court of Cundinamarca. The company has disclosed a contingent liability of $3.0 million in relation to Gramalote’s 2013 and 2014 tax returns (mainly covering related penalties).
The total amount claimed by the DIAN, related to the above tax matters that remain outstanding amounted to $8.1 million of which $8.0 million related to penalties as of 31 December 2022. Following a judgment of the Council of State in July 2019 holding that duplicate penalties may not be charged, the company expects that certain penalties will likely be waived, reducing the overall exposure to $0.1 million in respect of those tax matters. In addition, from 2017 and judgementonwards, the deduction of exploration costs is pending. The Administrative Tribunal may take 12 monthsprohibited following a change in Colombian tax legislation. As a result, exploration costs have been treated in accordance with the amended tax legislation subsequent to deliver its decision and if an appeal from either party is sought, a final judgement could take several years.
that date.•Argentina Tax Authority (AFIP) andv. Cerro Vanguardia S.A. (CVSA):On 12 In July 2013, CVSA received a notification from the AFIP requesting corrections to the 2007, 2008 and 2009 income tax returns of about $6$0.9 million relating to the non-deduction of tax losses previously claimed on hedge contracts. The AFIP is of the view that the financial derivatives could not be considered as hedge contracts, as hedge contract losses could only be offset against gains derived from the same kind of hedging contracts.Penalties and interest on the disputed amounts are estimated at a further $21$4.2 million. CVSA and AFIP have corresponded on this issue over the past several years, and the government continuesArgentinian tax authorities continue to assert itstheir position regarding the use of the financial derivatives. CVSA filed an appeal with the Tax Court on 19in June 2015, and the parties submitted their final reports in July 2017. The matter is pending with the Tax Court.
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•Ghanaian tax authorities v. AngloGold Ashanti (Ghana) Limited (AGAG): In withholding tax audits: AGAG received a final tax audit report from the Ghana AGAGreceived tax assessmentsRevenue Authority (GRA) in which the GRA demanded payment of $28$9.0 million as of 31 December 2013 in respect of the 2006-2008 and 2009-2011 tax years, following an audit by the tax authorities related to withholding taxes on payments to non-resident persons. AGAG believes thatobjected to the GRA’s assessment of withholding taxes were not properly assessed and has lodged an objectionon the basis that AGAG was duly exempted by the government of Ghana from withholding taxes on payments made to non-residents during the assessment.relevant periods in terms of the Deed of Warranty signed with the government of Ghana. In 2012,2017, AGAG met with the Commissioner-General of the GRA and provided its position in writing together with the relevant supporting documentation.documents. AGAG has not yet to receivereceived a response from the Commissioner-General. Nonetheless,Due to the statute of limitations applicable to tax assessments in 2015Ghana, the amount of the tax authorities again raised the issue of paying withholding taxesuncertainty is estimated at $6.0 million as part of their findings covering the 2012 - 2014 tax years. AGAG raised objections with the tax authorities.
at 31 December 2022.COLOMBIA
•Santa María-Montecristo and La Colosa class action lawsuits: Four (4) classlawsuits: Class action lawsuits are pendinghave been filed in relation to each of AngloGold Ashanti Colombia S.A.S.A.S.’s (AGAC) Santa Maria-MontecristoMaría-Montecristo and La Colosa projects. Each lawsuitof the two lawsuits aims to stop exploration and mining in certain restricted areas affected by the projects due to environmental concerns or alleged breachesconcerns.
In respect of environmental laws. Inthe Santa María-Montecristo class action lawsuit, in September 2011, the Administrative Court of Tolima granted one of these lawsuits, the court granted the plaintiffplaintiffs a preliminary injunction in September 2011, suspending theAGAC’s mining concession contracts in relation to this project. AGAC has challenged this injunction, nevertheless, it remains in place during the course of the court proceedings. In May 2019, the Administrative Court of Tolima ruled that a technical study be prepared to define the places in which mining activities could be performed in the Combeima canyon without posing any threat to the water reservoirs of Ibagué, the capital of the Tolima department. In September 2020, the Council of State of Colombia (the highest court for administrative matters) on appeal overruled the decision of the Administrative Court of Tolima. The Council of State’s decision, which is final and not subject to further appeal, determined that AGAC, as concessionaire, has a right to develop the project if it can demonstrate to the mining and environmental authorities on the basis of technical studies that its mining exploration and, eventually, exploitation activities, will not impact the water resources of the Coello River basin and its tributaries. On 25 October 2022, AGAC returned the tenements involved in the Santa Maria-Montecristo project. TheMaría-Montecristo project to the government of Colombia. This return is pending acceptance by the Colombian Mining Authority (Agencia Nacional de Minería) following which the Administrative Court of Tolima still needs to dismiss the case. Until such time, the injunction remains in place and has been challenged by AGAC; however, it is not a critical path item for the project.place.
The consolidated La Colosa class action lawsuit originally consisted of four separate class actions. In another lawsuit, on 10relation to this project, in October 2016, Tolima’s Administrative Court ordered that a technical study be prepared by April 2017 by a panel of seven (7) experts (selected by the plaintiff, AGAC, universities, the Colombian government and an NGO) to determine whether the La Colosa Projectproject presents a “threat” to the environment during its exploration phase. AGAC successfully appealed the order to prepare the technical study and the order has been temporarily suspended, pending resolution by the State Council (appellate court). In another of the lawsuits, on 4 December 2017, Ibague’sIbagué’s Third Administrative Court ordered that aanother technical study, similar to the one described onin the October 2016 order, be prepared for the La Colosa Project.project. AGAC also intendsappealed both orders. In September 2018, Tolima’s Administrative Court consolidated all class actions in relation to the La Colosa project into one single class action lawsuit which is currently pending before the Council of State. The orders to prepare the technical studies have been temporarily suspended pending resolution by the Council of State. If AGAC’s appeal this order.before the Council of State is not successful, the Company may have to perform one or more technical studies in relation to the La Colosa project. If the studies were to conclude that a “threat” exists, certain development activities at the La Colosa project may be suspended.
•Cortolima’s injunction against AGACAngloGold Ashanti Colombia S.A.S. (AGAC): On 11 In March 2013, Cortolima, a regional environmental authority in Colombia,the Tolima department, issued a regulatory injunction against AGAC alleging, among other things, that in relation to certain of AGAC’s La Colosa explorationmine design-related activities AGAC (1) did not provide timely notice toin the government prior to performing certain exploration activities and (2)municipality of Piedras, AGAC engaged in drilling and other activities that could have negative effects on the environment. On 22 MarchThe injunction did not include any allegation that AGAC’s actions actually caused any environmental damages in Piedras. AGAC’s challenge of the injunction was unsuccessful before Cortolima. In August 2013, AGAC challengedinitiated legal proceedings before the injunction,Council of State of Colombia (the highest court for administrative matters) seeking an annulment of the action and theinjunction as well as restoration of AGAC’sits rights to continue explorationits activities in the area. The requestIn November 2019, the Council of State ruled that the competent judicial authority to annuldecide on this matter is the Administrative Court of Tolima and referred the case to that court. In July 2020, the Twelfth Administrative Court of Tolima ruled that since the injunction is a preliminary and temporary measure imposed as part of the administrative approval process within Cortolima and not a final decision, it is not yet amenable to administrative judicial review. In July 2021, this decision was deniedreversed on appeal by the DirectorAdministrative Superior Court of Cortolima,Tolima in a ruling that such injunctions are amenable to administrative judicial review. The appellate court ordered the Twelfth Administrative Court of Tolima to review the matter and issue a decision thereon. Consequently, the Twelfth Administrative Court of Tolima admitted the case and a first hearing was held on 21 April 2022. Trial evidence was accepted. On 25 October 2022, another hearing was held to gather testimonies. The case remains pending. The Company expects that a final resolution of this
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matter will include payment of a penalty by AGAC in an amount that is continuing with its plansnot expected to challenge the injunction through a variety of legal actions. On 31 August 2013, AGAC presented before the State Council its claim for the annulment and rights re-establishment. This matter is pending.be material. While the injunction remains in place, AGAC is not able to engage in certain of its activities related to the La Colosa Project.
project.•Piedras and Cajamarca: popular consultations: In 2013, the Council forlocal council of the city of Piedras, near the La Colosa Project, issuedproject, organised a referendum attemptingpopular consultation to ban all mining activities in Piedras. This referendum doesPiedras (Piedras popular consultation), the result of which was validated by the Administrative Court of Tolima as part of an administrative procedure. Although the Piedras popular consultation did not have an immediate impact on the La Colosa Project, however,project (due to its distant location from the project), AGAC believes this referendum isthe Piedras popular consultation was in violation of federal law. The referendum was subsequently validated by the local administrative courtnational law in Tolima (the Department in which Piedras is located).Colombia. In 2013, AGAC subsequently filed a request for annulment of the referendum with the Second Administrative Court of Ibaque and a tutela‘tutela’ action (a legal action alleging a violation of AGAC’s constitutional rights) with the Council of State Council (Supreme Courtof Colombia (the highest court for administrative purposes)issues). On 21 AugustIn 2014, AGAC’s ‘tutela’ action was dismissed by the State Council dismissed the tutela actionof State for lack of standing which AGEAC appealed to a different division of the State Council. On 11 December 2014, this State Council division affirmed the earlier dismissal on the grounds that AGAC did not have mining tenements in Piedras. However,In addition, in the same ruling the court recognised that Piedras did not follow the correct procedure when it issued the 2013 referendum. AGAC’s2015, AGAC filed a request for annulment of the referendumadministrative acts adopted by the local authorities in furtherance of the results of the Piedras popular consultation, which was rejected by the Second Administrative Court of Ibagué. AGAC subsequently appealed this ruling. In July 2021, AGAC was notified that the Administrative Superior Court of Tolima ruled on appeal that, in light of the 2018 decision of the Constitutional Court of Colombia (the highest court for constitutional issues) holding that local municipalities or regions are not entitled to veto mining activities through popular consultations (as further described below), the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. An extraordinary appeal against this ruling was submitted on 22 March 2022, which is pending.
In addition, in September 2021, a third party filed a ‘tutela’ action with the Council of State arguing that the Administrative Superior Court of Tolima did not have the authority to determine that the results of the Piedras popular consultation, and the administrative acts adopted in furtherance thereof, were not enforceable. In December 2021, the Council of State dismissed this ‘tutela’ action for lack of standing.•La Colosa Human Rights Litigation:Litigation: In November 2014, the Personero (Ombudsman) of IbaqueIbagué, the capital of the Tolima department, filed suita petition against the Colombian government before the Inter-American Commission on Human Rights (Commission), based in Washington, D.C., for alleged human rights violations protected by the American Convention on Human Rights (Convention) which has been ratified by Colombia along with many other Central and South American countries. The Commission has the power to refer a case to the Inter-American Court of Human Rights. This CourtRights (Court) which is an autonomous judicial institution based in San José, Costa Rica whose purpose is the application and interpretation of the American Convention on Human Rights (Colombia, along with many other Central and South American countries, has ratified this Convention).Convention. The suitpetition alleges that the Colombian government has faileddenied justice to protect the interestsPersonero as a result of the peoplefailure of Ibaque by issuing permits to AGAC for the La Colosa project and by failingColombian judiciary to resolve the issues raised in two class actions that have been pending for an extendedfiled by him before the local Colombian administrative courts within a reasonable period of time. Although AGAC is not a party to the suit, its outcome is nevertheless important to the development of the La Colosa project. The first step inCommission currently has not accepted nor referred the litigation process is forcase to the Court to decide whether to accept the case.Court. If the case iswould be accepted or referred in the future, the Colombian government will have to defend itself against the lawsuit and will be bound by the findings of the Court. AGAC continues to regularly follow-upfollow up with the Colombian government for updates.
•Paramo Delimitation: Delimitation: In November 2016, the Colombian government issued Resolution 1987, which delineates1987/2016 delineating certain wetlands or moorlands as environmentally important and establishes protected areas, andwhich designation includes certain areas in and around the La Colosa Project.project. In these areas there are limitations, or in some instances outright bans, on mining and mining-related activities. These limitations and bans could potentiallyadversely impact the design, operations and production of the mining project at the La Colosa Project. On 12project. In June 2017, AGAC filed suit against the Colombian Ministry of the Environment in the Administrative TribunalCourt of CajamarcaCundinamarca to challenge the paramo delimitationannul Resolution 1987/2016 on technical and other grounds. The lawsuit was admitted in April 2019. The Ministry of the Environment, as defendant in this action, is pending admission.
expected to file its response to the annulment claim.•Zonte Metals:Metals: A Canadian junior mining company, Zonte Metals, filed applications for title to certain corridors, or small slivers of land, overlaying sections of the Gramalote project. The Secretary of Mines of Antioquia, the department in Antioquiawhich the Gramalote project is located, denied the applications filed by Zonte Metals. However, Zonte Metals then filed a claim against the Colombian National Mining Agency (ANM) and the Antioquia Secretary of Mines before the ColombianCouncil of State Council,of Colombia, by which it seeks to (i) revoke the resolution that denied its application and (ii) obtain the rights over the corridors requested in its application. The Council of State subsequently enjoined the Antioquia Secretary of Mines and AGACGramalote Colombia Limited (Gramalote) from moving forward onprogressing a pending application to integrate the disputed corridors with ourGramalote’s tenement. The Antioquia Secretary of Mines has filed its response to the Zonte Metals claim, which includes arguments
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aligned with the interests and position of Gramalote. On 4In September 2017, the Council AGACof State approved AGAC’sGramalote’s request to be made an interested party to the lawsuit.
lawsuit, but it rejected Gramalote’s request to join the Antioquia Secretary of Mines as a co-defendant in August 2019. In January 2019, the Council of State also re-affirmed that the Council of State is the competent judicial authority to hear the matter. The date for the first hearing is currently pending.GHANA
•Pompora Treatment Plant Litigation: On 02In April 2013, AGAGAngloGold Ashanti (Ghana) Limited (AGAG) received a summons from Abdul Waliyu and 152 others in which the plaintiffs allege that they were or are residents of the Obuasi municipality or its suburbs and that their health has been adversely affected by emissions and/or other environmental impacts arising in connection with the current and/or historical operations of the Pompora Treatment Plant (PTP), which was decommissioned in 2000. The plaintiffs’ alleged injuries include respiratory infections, skin diseases and certain cancers. The plaintiffs subsequently did not timely file their application for directions but AGAG intends to allow some time to pass prior to applying to have the matter dismissed for want of prosecution. On 24in time. In February 2014, executive members of the PTP (AGAG) Smoke Effect Association (PASEA) (Frank Adjei Danso and five others), sued AGAG by themselves and on behalf of their members (undisclosed number) on grounds similar to those discussed above, as well as economic hardships resulting from the failure of their crops. This matter has been adjourned indefinitely. As plaintiffs in these matters have not actively pursued these legal proceedings, AGAG intends to allow some time to pass prior to applyingis taking steps to have the matter struck outthese matters dismissed for want of prosecution.
GUINEA
•Government of Guinea (National Claim Commission) v. Société AngloGold Ashanti Goldfields de Guinée SA (SAG): A national claim recovery commission established by the government of Guinea has demanded that SAG pay $43 million in dividends and penalties that would allegedly have been owed to the government of Guinea for the accounting years 2004 - 2007. SAG opposes the claim. The twoEven though both parties had originally decided to submit their dispute to an independent audit firm to be appointed by a common accord; however,accord, the independent audit firm was never appointed. In December 2010, the national claim recovery commission was disbanded and the matter was turned over to the Inspector General of the Ministry of Finance.Finance of Guinea. This matter has been dormant since it was handed over to the Inspector General.
TANZANIA
•Geita Gold Mining Limited (GGM): In January 2007, Jackson Manyelo and other plaintiffs filed a suit against GGM in the Mwanza High Court alleging that they were affected by blasting activities in the Katoma area carried out by GGM and had suffered damages in the amount of Tshs9.6TZS9.6 billion (approximately $6 million). On 30In April 2015, the High Court issued a judgementjudgment in favour of GGM. In 2016, Plaintiffsplaintiffs appealed to the Court of Appeal, where the matter is pending.
•Arbitration under the United Kingdom-Tanzania Bilateral Investment Treaty (UK-Tanzania BIT):Separate fromUnrelated to the arbitration proceedings under the MDA described above, on 04in September 2017, the Companies (togetherGGM and Samax, together with Cluff Oil Limited and Cluff Mineral Exploration Limited) wrote toLimited, notified the Governmentgovernment of Tanzania setting outin writing that the Government of Tanzania’sTanzanian government’s conduct amounted to a breach of its commitments under the UK-Tanzania BIT (the Notice). The NoticeBIT. This notice triggered a ‘cooling-off’ period under the UK-Tanzania BIT, pursuant to which the parties had six months to achieve an amicable resolution to their dispute (the Cooling Off Period). The Cooling Off Period expired 04dispute. Following the expiry of the ‘cooling off’ period in March 2018, and now the Companies,GGM, Samax, Cluff Oil Limited and Cluff Mineral Exploration Limited are now entitled to submit their dispute with the Governmentgovernment of Tanzania to ICSID arbitration in accordance with the terms of the UK-Tanzania BIT.BIT to the extent that they may deem this necessary.
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BRAZIL
•Public Civil Action between Mineração Serra Grande S.A. (MSG) and the Goiás State Public Prosecutor's Office (Prosecutor): In August 2019, the Prosecutor filed a public civil action against MSG in the local court of Crixás (Court) arguing that the Serra Grande tailings dam should be deactivated and decommissioned due to its size and upstream construction method. The Prosecutor requested the Court to grant an injunction ordering MSG to, inter alia, completely deactivate the tailings dam by 15 September 2021 and decommission the tailings dam, including complete removal of tailings material, by 15 September 2022. Further, the Prosecutor requested that a daily penalty of approximately $245,000 be imposed for MSG’s failure to comply with such injunction. MSG submitted its defence in September 2019 and contends that it has not violated any Brazilian laws or regulations applicable to operations of the Serra Grande tailings dam. In February 2020, the Court granted an injunction in respect of a number of the requests made by the Prosecutor. In line with the legal requirements of ANM Resolution No. 13/19, the injunction ordered the deactivation of the Serra Grande tailings dam by 15 September 2021, but did not include requirements to decommission the tailings dam, or to conduct complete removal of tailings material, by 15 September 2022. MSG filed a motion for clarification in relation to certain items of the Court’s decision. In May 2020, the Court clarified that its injunction should be interpreted in line with the legal requirements of ANM Resolution No. 13/19. In June 2020, the Prosecutor presented further technical arguments in court, reiterating its request for an injunction ordering MSG to, inter alia, deactivate the tailings dam by September 2021 and to decommission the tailings dam, including complete removal of tailings material. Afterwards, MSG filed an interlocutory appeal against the preliminary injunction granted in February 2020 and a motion for further clarification. In August 2020, both MSG and the Prosecutor filed petitions informing the Court that the parties did not wish to produce oral evidence at a hearing. In May 2021, the Court upheld the preliminary injunction ordering the deactivation of the Serra Grande tailings dam by 15 September 2021 and its decommissioning by 15 September 2025, both of which are consistent with the deadlines established by existing legal and regulatory requirements. In June 2021, the Prosecutor appealed this decision. The Court of Appeals of Goiás tried the case on 4 August 2022 and has affirmed the first instance decision. On 3 November 2022, the Prosecutor appealed this decision to the Superior Court of Justice.
•Public Civil Action between AngloGold Ashanti Córrego do Sítio Mineração SA (AGA Mineração) and the Minas Gerais State Public Prosecutor's Office (Prosecutor): In March 2020, the Prosecutor filed a public civil action against AGA Mineração in the local court of Sabará (Court) alleging a violation of Minas Gerais Law No. 23.291/19, which was adopted in February 2019. Article 12 of this law prohibits the grant of an environmental license for construction, installation, expansion or raising of a tailings dam if the “dam break” studies identify communities that are located in the self-rescue zone. In February 2020, the state of Minas Gerais approved AGA Mineração’s permit to operate the Cuiabá tailings dam following the determination by the Minas Gerais’ Attorney’s Office that Law No. 23.291/19 does not apply to tailings dams already in operation. In its lawsuit, the Prosecutor requested the Court to grant an injunction ordering the suspension of AGA Mineração’s operational permit for the Cuiabá tailings dam on the grounds that it was issued in violation of this law. During the months of March through May 2020, all parties presented their arguments in court. In June 2020, the Court rejected the Prosecutor’s request to grant an injunction. In July 2020, the Court’s decision not to grant an injunction was upheld on appeal by the Court of Appeals of Minas Gerais. Subsequently, the Court issued an order proposing a conciliation hearing between the parties, to which none of the parties objected. On 28 January 2022, the parties filed a joint petition requesting the cancellation of the conciliation hearing and the suspension of the legal proceedings in view of negotiations between the parties to explore a possible settlement. On 2 June 2022, AGA Mineração and the Prosecutor entered into a settlement. Pursuant to the settlement, AGA Mineração will, among other measures, update the emergency action plan and decommission the Cuiabá tailings dam according to the schedule filed with the relevant mining and environmental agencies. AGA Mineração will also prepare a technical study to assess the potential evacuation of communities from the self-rescue zone during the decommission stages. The Court approved the settlement on 29 July 2022 and the public civil action was terminated.
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DIVIDENDS
General
Dividends are proposed by and approved by the board of directors of AngloGold Ashanti (the “board”), based on the company’sCompany’s financial performance.performance and compliance with applicable laws, including in respect of the solvency and liquidity test contemplated in the SA Companies Act. Dividends are recognised when declared by the board of directors of AngloGold Ashanti.Board. AngloGold Ashanti’s dividend policy allows the Board to declare an annuala semi-annual dividend to be based on 1020 percent of the free cash flow generated by the business for that financial year, before taking into account growth capital expenditure.expenditure, subject to applicable laws required to be complied with before a dividend may be declared by the Board. The Board may exercise its discretion on an annual basis, taking into consideration the prevailing market conditions, balance sheet flexibility and future capital commitments of the group.Group.
Dividends declared (in the ordinary course from trading and non-trading profits) to foreign shareholders are not subject to the approval by the South African Reserve Bank (SARB) in terms of South African foreign exchange control regulations. Dividends are freely transferable to foreign shareholders from both trading and non-trading profits earned in South Africa by publicly listed companies. Dividends in specie or special dividends may require SARB approval prior to declaration and payment to foreign shareholders.
Under South African law, the companyCompany may declare and pay dividends from any reserves included in total shareholder’s equity (including share capital and share premium) calculated in accordance with International Financial Reporting Standards (IFRS), subject to the solvency and liquidity test.
Withholding tax
South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company. On 22 February 2017, the rate increased from 15 percent to 20 percent for any dividends paid after 1 March 2017.
The dividends tax is generally imposed on the beneficial owner.owner of the dividends. The dividends paid to South African shareholders may be exempt from dividend withholding tax couldin terms of certain domestic exemptions, or may be reduced to a lower rate under an applicable double tax treaty, if all requirementsthe required declarations and undertakings are met.provided by the beneficial owner of the dividend. In the case of dividends paid to a US holder with respect to shares, the TreatyConvention Between the Government of the United States of America and the Republic of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (the “US/SA Double Taxation Treaty”) would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10ten percent of the voting stock of AngloGold Ashanti. In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. There are differentDifferent rules to considermay apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed basepermanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base. Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, there are certain South African compliance requirements that must be met in orderestablishment.
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8B. SIGNIFICANT CHANGES
Refer to access the double tax treaty relief.“Item 18: Financial Statements—Note 35—Subsequent Events”.
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ITEM 9: THE OFFER AND LISTING
| JSE | NYSE(1) | ||||||||||
Year ended 31 December | High | Low | High | Low | |||||||
| (South African cents per ordinary share) | (US dollars per ADS) | ||||||||||
| Annual information | |||||||||||
| 2013 | 27,048 | 11,401 | 31.88 | 11.14 | |||||||
| 2014 | 20,952 | 8,836 | 19.53 | 7.45 | |||||||
| 2015 | 14,999 | 7,159 | 13.12 | 5.64 | |||||||
| 2016 | 31,775 | 10,700 | 22.91 | 7.09 | |||||||
| 2017 | 18,711 | 11,499 | 13.68 | 8.86 | |||||||
| 2016 | |||||||||||
| First quarter | 22,360 | 10,700 | 14.31 | 7.09 | |||||||
| Second quarter | 27,892 | 19,664 | 18.49 | 13.16 | |||||||
| Third quarter | 31,775 | 20,792 | 22.91 | 15.00 | |||||||
| Fourth quarter | 22,055 | 12,906 | 15.92 | 9.32 | |||||||
| 2017 | |||||||||||
| First quarter | 18,711 | 12,502 | 13.68 | 9.67 | |||||||
| Second quarter | 17,950 | 12,600 | 13.31 | 9.64 | |||||||
| Third quarter | 14,323 | 11,670 | 10.86 | 8.88 | |||||||
| Fourth quarter | 14,579 | 11,499 | 10.63 | 8.86 | |||||||
| September 2017 | 14,323 | 12,126 | 10.86 | 9.10 | |||||||
| October 2017 | 13,828 | 12,315 | 9.87 | 9.17 | |||||||
| November 2017 | 14,579 | 12,884 | 10.63 | 9.08 | |||||||
| December 2017 | 14,360 | 11,499 | 10.59 | 8.86 | |||||||
| January 2018 | 14,140 | 12,000 | 12.00 | 10.34 | |||||||
| February 2018 | 13,400 | 10,720 | 11.34 | 9.16 | |||||||
March 2018(2) | 11,560 | 10,635 | 9.94 | 8.88 | |||||||
The principal trading markets for AngloGold Ashanti’s ordinary shares are the New York Stock Exchange (NYSE), in the form of ADSs, under the symbol “AU” and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”. Each ADS represents one ordinary share.
9B. PLAN OF DISTRIBUTION
Not applicable.
9C. MARKETS
NATURE OF TRADING MARKET
The principal trading markets for AngloGold Ashanti’s ordinary shares are the NYSE, in the form of ADSs, under the symbol “AU” (each representing one ordinary share) and the JSE Limited, in the form of ordinary shares, under the symbol “ANG”.
AngloGold Ashanti’s ordinary shares are also listed on the Ghana Stock Exchange, as ordinary shares under the symbol “AGA”, the Australian Securities Exchange, in the form of Chess Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG” and on the Ghana Stock Exchange, in the form of Ghanaian Depositary Shares or GhDSs (each representing one one-hundredth of an ordinary share) under the symbol “AADS”“AAD”, and the Australian Securities Exchange, in the form of CHESS Depositary Interests (each representing one-fifth of an ordinary share) under the symbol “AGG”. AngloGold Ashanti was approved for a secondary listing on A2X Markets (A2X) in South Africa and its shares were admitted to trading on A2X on 6 June 2022 under the symbol “ANG”.
9D. SELLING SHAREHOLDERS
Not applicable.
9E. DILUTION
Not applicable.
9F. EXPENSES OF THE ISSUE
Not applicable.
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ITEM 10: ADDITIONAL INFORMATION
10A.SHARE CAPITAL
10B.MEMORANDUM OF INCORPORATION
At the annual general meeting held on 16 May 2022, AngloGold Ashanti received approval from shareholders (by way of a discussion of options on AngloGold Ashanti’s ordinary shares availablespecial resolution) to executive officers from time to time, see “Item 6E: Share Ownership-Share Ownership of Executive Officers/Executive Management”.amend the MoI as follows:
| Title of Class | Authorised | Issued | ||||
19 March 2018 | 31 December 2017 | |||||
| Ordinary shares at par value of R0.25 each | 600,000,000 | 410,738,159 | 410,054,615 | |||
| A redeemable preference shares at par value of R0.50 each | 2,000,000 | 2,000,000 | 2,000,000 | |||
| B redeemable preference shares at par value of R0.01 each | 5,000,000 | 778,896 | 778,896 | |||
| C redeemable preference shares at no par value | 30,000,000 | 0 | 0 | |||
2.by the deletion of clause 9 (Rights Attaching to further calls or assessment Preference Shares) in its entirety; and
3.by AngloGold Ashanti.the amendment of Schedule 1 (Authorised Shares) as follows:
3.1 by the deletion of paragraphs 2, 3 and 4 of Schedule 1 in their entirety; and
3.2 by the deletion of the table at the end of Schedule 1 in its entirety and the replacement thereof with the following new table:
| Share capital | South African Rands | ||||
| 600,000,000 ordinary shares of R0.25 each | 150,000,000 | ||||
The table below details changes inreason for these amendments is to comply with the issued ordinary share capitalprovisions of AngloGold Ashanti since 31 December 2014 through 31 December 2017
| Period to | Description | Number of Shares | ||
31 December 2014 | 404,010,360 | |||
| Ordinary shares issued during | 2014 | AngloGold Share Incentive Scheme | 1,254,955 | |
31 December 2015 | 405,265,315 | |||
| Ordinary shares issued during | 2016 | AngloGold Share Incentive Scheme | 2,958,445 | |
31 December 2016 | 408,223,760 | |||
| Ordinary shares issued during | 2017 | AngloGold Share Incentive Scheme | 1,830,855 | |
31 December 2017 | 410,054,615 | |||
and the C redeemable preference shares,
Registration
AngloGold Ashanti is incorporated under the company laws of the Republic of South Africa and is registered with the Companies and Intellectual Property Commission under registration number 1944/017354/06. The SA Companies Act has abolished the requirement for specific “object and purpose” provisions to be included in an MoIa memorandum of incorporation and although the new MoI is now silent on the matter, the company continues to carry on as its main business, gold exploration, the mining and production of gold, the manufacturing, marketing and selling of gold products and the development of markets for gold.
AngloGold Ashanti’s MoI is available for inspection as set out in “Item“Item 10H: Documents on Display” and a summary of the pertinent provisions, including the rights of the holders of shares in AngloGold Ashanti, are set out below.
This summary does not contain all the information pertaining to the rights of holders of AngloGold Ashanti’s ordinary shares and is qualified in its entirety by reference to the laws of South Africa and AngloGold Ashanti’s governing corporate documents. As well as being governed by the provisions of the MoI, the rights of holders of AngloGold Ashanti’s ordinary shares are governed by the JSE Listings Requirements, the SA Companies Act and the Companies Regulations, 2011, promulgated under the SA Companies Act (Regulations)(the “Regulations”), which include the Takeover Regulations. Further, the rights of holders of AngloGold Ashanti ADSs are governed by the Deposit Agreement between AngloGold Ashanti and The Bank of New York Mellon. See “Item“Item 10C: Material Contracts-TheContracts—The Deposit Agreement”.
The SA Companies Act provides that shares will no longer have a par or nominal value and hence no new shares having a nominal or par value may be authorised. However, any shares which have a nominal or par value authorised prior to the1 May 2011 (the effective date of the SA Companies ActAct) continue to have that nominal or par value and can be issued as such for so long as there are par value shares in the company’s authorised share capital. Should the company wish, it may also elect to convert its authorised par value shares to shares of no par value, subject to the relevant process and approvals contemplated in the SA Companies Act.
Directors
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The management and control of any business of AngloGold Ashanti is vested in theits board of directors (board). The authority of the board to manage and direct the business and affairs of the company is not limited, restricted or qualified by the MoI.
Appointment and Retirement of Directors
The shareholders of the companyCompany have the power to elect the directors, and shareholders are also entitled to elect one or more alternate directors, in accordance with the provisions of the MoI.MoI and the SA Companies Act.
The board of directors may appoint any person who satisfies the requirements for election as a director to fill any vacancy and serve as a director on a temporary basis until the vacancy is filled by election by shareholders entitled to exercise voting rights in such an election.
The MoI authorises the chairmanchairperson of the board, subject to the written approval of the majority of the directors, to appoint any person as a director provided that such appointment is approved by shareholders at the next shareholders’ meeting or annual general meeting.
At every annual general meeting one-third of the directors will retire by rotation, or if their number is not a multiple of three, then the number nearest to but not less than one third. The directors so to retire at every annual general meeting will be those who have been the longest in office since their last election. Directors retiring by rotation are eligible for re-election. Directors who voluntarily decide not to make themselves available for re-election may be counted towards the one-third of directors required to retire at the relevant annual general meeting.
The MoI contains no provision for directors to hold qualification shares. The MoI does not impose an age limit for the retirement of directors.
Remuneration
In accordance with the SA Companies Act, the MoI provides that the directors are entitled to such remuneration for their services as directors as AngloGold Ashanti’s shareholders may approve by special resolution in a general meeting or annual general meeting within the previous two years of the date of payment of such remuneration. If a director is employed in any other capacity, or holds an executive office or performs services that, in the opinion of the board, are outside the scope of the ordinary duties of a director, he or she may be paid such additional remuneration as a disinterested quorum of directors may reasonably determine.
Interests of Directors and Restriction on Voting
Although the interests of directors are not dealt with in the MoI, the provisions of the SA Companies Act in this regard are unalterable and will automatically apply, together with the applicable common law.law rules. Under the SA Companies Act, the procedures to deal with the personal financial interests of directors also apply to prescribed officers (i.e., persons who exercise general executive control over and management of the whole, or a significant portion, of the business and activities of the company or regularly participate to a material degree in the exercise of general executive control over and management of the whole, or a significant portion, of the business and activities of the company, irrespective of the office held or function performed by such persons) and any person who is a member of a committee of the board of the company, whether or not that person is also a member of the company’s board. The SA Companies Act provides that a director or such other person with a personal financial interest must disclose this to the board and cannot vote on or, after having made the disclosures to the meeting as prescribed by the SA Companies Act, remain present during the meeting when the matter in which hehe/she has interest is being discussed but will be counted as present for the purposes of a quorum.quorum (but is not to be regarded as being present at the meeting for the purposes of determining whether a resolution has sufficient support to be adopted).
Share Rights, Preferences and Restrictions
Allotment and Issue of Ordinary Shares
Subject to the JSE Listings Requirements, the SA Companies Act and/or with approval of shareholders in a general meeting, unissued ordinary shares must be offered to existing ordinary shareholders, pro rata to their ordinary shareholdings, unless they are issued for the acquisition of assets. The shareholders in a general meeting may authorise the AngloGold Ashanti board to issue any unissued ordinary shares.
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Dividends, Rights and Distributions
The ordinary shares participate fully in all dividends, other distributions and entitlements as and when declared by AngloGold Ashanti in respect of fully paid ordinary shares. Under South African law, AngloGold Ashanti may declare and pay dividends,distributions (as defined in the SA Companies Act, which includes dividends), subject to the companyCompany satisfying the solvency and liquidity test as provided byset out in section 4 of the SA Companies Act and the board passing a resolution acknowledging that such test has been applied and has reasonably concluded that the companyCompany would satisfy such test immediately after completing the distribution. Dividends are payable to shareholders registered at a record date after the date of declaration of the dividend.
Although not stated in the MoI, but subject to the JSE Listings Requirements and the SA Companies Act, any dividend may be paid and satisfied, either wholly or in part, by the distribution of specific assets, or in paid-up securities of AngloGold Ashanti or of any other company,Company, or in cash, or in any one or more of such ways as the directors may at the time of declaring the dividend determine and direct.
All dividends remaining unclaimed for a period of not less than three years from the date on which they became payable, may, by a resolution of the directors, become forfeited for the benefit of the company.Company.
Voting Rights
Each ordinary share confers the right to vote at all general meetings. Each holder present in person or by proxy or, in the case of a corporate entity, represented, has one vote on a show of hands. If a poll is held, holders present or any duly appointed proxy will have one vote for each ordinary share held. A holder of ordinary shares is entitled to appoint a proxy to attend, speak and vote at any meeting on his or her behalf and the proxy need not be a shareholder. Holders of ADSs are not entitled to vote in person at meetings, but may vote by way of proxy through The Bank of New York Mellon as the ADS issuer. Holders of CDIsAustralian Chess Depositary Interests (CDIs) and GhDSsGhanaian Depositary Shares (GhDSs) are not entitled to vote in person or by proxy at meetings, but may vote by instructing Chess Depository Nominees and NTHC Limited as depositary,Depositary, respectively, how to vote their shares.
There are no limitations on the right of non-South African registered shareholders to hold or exercise voting rights attaching to any of the ordinary shares.
The MoI specifies that the rights relating to any class of shares may be modified or abrogated with the sanction of a resolution passed as if it were a special resolution of the holders of shares in that class at a separate general meeting. The MoI also specifies that the holders of the A, B and C preference shares may provide written consents to the modification of their rights.
Increase and Reduction of Capital
The companyCompany is authorised to issue the shares specified in the MoI and all such shares are required to be issued as fully paid up in accordance with the applicable approval and/or other requirements of the SA Companies Act and the JSE Listings Requirements.
The directors are authorised, subject to any requirements of the JSE Listings Requirements, the SA Companies Act, the Regulations and the MoI, to increase or decrease the number of authorised shares of any class of shares, reclassify any shares that have been authorised but not issued, classify any unclassified shares that have been authorised but not issued, and determine the preferences, rights, limitations or other terms of any class of authorised shares or amend any preferences, rights, limitations or other terms as determined. However, such capital amendments require an amendment to be made to the MoIMoI. The SA Companies Act and the JSE Listings Requirements currently doesdo not allow the MoI to be amended to give effect to such capital amendments without the approval of ordinary shareholders by special resolution.
Rights Upon Liquidation
In the event of the winding up of AngloGold Ashanti:
Ashanti the ordinary shares confer the right to participate equally in any surplus arising from the liquidation of all other assets of AngloGold Ashanti.
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Shareholders’ meetingsMeetings
The directors may convene meetings of AngloGold Ashanti shareholders. Subject to the provisions of the SA Companies Act, the shareholders may requisition for the convening of a meeting.
Notice of each AngloGold Ashanti annual general meeting and general meeting of AngloGold Ashanti shareholders must be delivered at least 15 business days before that shareholders’ meeting is to begin. In accordance with the SA Companies Act, business days are calculated by excluding the first day, including the last day and excluding Saturdays, Sundays and any public holiday in the Republic of South Africa. In terms of the MoI, all shareholders are entitled to attend shareholders’ meetings.meetings at which they are entitled to vote.
For an ordinary resolution to be approved by shareholders, it must be supported by more than 50 percent of the voting rights exercised on the resolution. For a special resolution to be approved by shareholders, it must be supported by at least 75 percent of the voting rights exercised on the resolution.
Disclosure of Interest in Shares
Under South African law, a person must notify AngloGold Ashanti within three business days after that person (i) acquires a beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, as a result of the acquisition, the person holds a beneficial interest in securities amounting to five percent, 10ten percent, 15fifteen percent or any further whole multiple of five percent of the issued securities of that class or (ii) disposes of any beneficial interest in sufficient securities of a class of securities issued by AngloGold Ashanti such that, theas a result of the disposition, the person no longer holds a beneficial interest in securities amounting to a particular multiple of five percent of issued securities of that class. When AngloGold Ashanti has received the notice referred to above it must file a copy with the Takeover Regulation Panel and report the information to holders of the relevant class of securities unless the notice concerned is a disposition of less than one percent of the class of securities.
If the securities of AngloGold Ashanti are registered in the name of a person who is not the holder of the beneficial interest in all of the securities in AngloGold Ashanti held by that person, that registered holder of the securities must disclose the identity of the person on whose behalf that security is held and the identity of each person with a beneficial interest in securities so held, the number and the class of securities held for each such person with a beneficial interest and the extent of each such beneficial interest. This information must be disclosed in writing to the companyCompany within five business days after the end of every month during which a change has occurred in the information or more promptly or frequently to the extent so provided by the requirements of a Central Securities Depository. A companyCompany that knows or has reasonable cause to believe that any of its securities are held by one person for the beneficial interest of another may by notice in writing require either of those persons to confirm or deny that fact, provide particulars of the extent of the beneficial interest held during the three years preceding the date of the notice and disclose the identity of each person with a beneficial interest in the securities held by that person, which information must be provided within 10ten business days of the receipt of the notice.
AngloGold Ashanti is obligated to establish and maintain a register of the disclosures described above and to publish in its annual financial statements a list of the persons who hold beneficial interests equal to or in excess of five percent of the total number of ordinary shares issued by AngloGold Ashanti together with the extent of those beneficial interests.
Rights of Minority Shareholders
Majority shareholders of South African companies have no fiduciary obligations under South African common law to minority shareholders. However, under the SA Companies Act, a shareholder or director may, under certain circumstances, seek relief from thea court if he has been unfairly prejudiced by any act or omission of the companyCompany or a related person, by the conduct of the business
of the companyCompany or a related person in a particular manner, or the exercise of the powers of the directors of the companyCompany or a related person in a particular manner. There may also be personal and derivative actions available to a shareholder of a company.Company.
Pursuant to the SA Companies Act, a shareholder may petition a South African court for relief from the actions or omissions or business conduct of the companyCompany or the actions of the company’sCompany’s directors or officers that is oppressive or unfairly prejudicial to, or unfairly disregards the interest of the shareholder. In addition, a shareholder who voted against a resolution to amend the company’sCompany’s MoI, or to approve a fundamental transaction (and complied with other requirements set out in the SA Companies
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Act) may exercise its appraisal right to demand that the companyCompany pay to it the fair value for all the shares of the companyCompany held by that shareholder.
Description of ADSs
The Bank of New York Mellon issuesregisters and delivers AngloGold Ashanti’s American Depositary Shares, or ADSs. Please see “Item“Item 10C: Material Contracts”Contracts—Description of AngloGold Ashanti ADSs”.
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10C.MATERIAL CONTRACTS
Multi-currency Revolving Credit FacilitiesFacility
General
On 17 July 2014,23 October 2018, AngloGold Ashanti Holdings plc (“AGAH”) and AngloGold Ashanti USA Incorporated,Australia Limited, as borrowers, entered into a five-year unsecured multi-currency syndicated revolving credit agreementfacility of $1.4 billion (the US$ Revolving Credit Agreement)“2018 multi-currency RCF”) with the Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The loan consisted of (i) a US dollar based facility with interest charged at a margin of 1.45% above LIBOR and (ii) an Australian dollar based facility capped at A$500 million with interest charged at a margin of 1.45% above BBSY. The A$500 million portion of the 2018 multi-currency RCF was used to fund the working capital and development costs associated with the Group’s mining operations within Australia without eroding the group’s headroom under its other facilities and exposing the Group to foreign exchange gains/losses each quarter. On 9 June 2022, the 2018 multi-currency RCF was repaid and cancelled, and replaced with the 2022 multi-currency RCF (as defined below).
On 9 June 2022, AGAH and AngloGold Ashanti Australia Limited, as borrowers, entered into a new five-year unsecured multi-currency syndicated revolving credit facility of $1.4 billion (the “2022 multi-currency RCF”) maturing in June 2027, with the option of two one-year extensions on application. The 2022 multi-currency RCF was entered into with The Bank of Nova Scotia, as facility agent, and certain financial institutions party thereto, as lenders. The US$ Revolving Credit Agreement provides2022 multi-currency RCF consists of (i) a US dollar based facility (base currency) and (ii) an Australian dollar based facility capped at A$500 million which will be used to fund the working capital and development costs associated with the group's mining operations within Australia (without eroding the group's headroom under its other facilities and exposing the group to foreign exchange gains/losses each quarter). The 2022 multi-currency RCF was entered into on substantially similar terms to the 2018 multi-currency RCF, save in respect of the basis for a $1.0 billion revolving credit facility (the US$ Revolving Credit Facility) available for drawing inthe US dollars.dollar interest rate which transitioned from LIBOR to Compounded SOFR. As of 1910 March 2018, we have2023, the equivalent of $37 million was drawn $65 million under the US$ Revolving Credit Facility.AUD portion of the 2022 multi-currency RCF.
The 2022 multi-currency RCF is guaranteed by AGAH and AngloGold Ashanti Australia Limited entered into a credit agreement (the A$ Revolving Credit Agreement), as borrower with Commonwealth Bank of Australia, as facility agent, and certain financial institutions party thereto as lenders. The A$ Revolving Credit Agreement provides for a A$0.5 billion revolving credit facility (the A$ Revolving Credit Facility) available for drawing in Australian dollars. As of 19 March 2018, we have drawn A$195 million under the A$ Revolving Credit Facility.
Security
Amount and repayment of borrowings
Loans under the US$ Revolving Credit Facility2022 multi-currency RCF must be for a minimum of $10 million, (or forif the balance ofcurrency selected is the undrawn total commitments at the time of the drawing)base currency (US dollar), and no more than 14 loans may be outstanding at any time. Each loan must be repaid on the last day of the loan’s interest period, which can be a period of one, two, three or six months or any other period agreed by AngloGold Ashanti Holdings plc, in its capacity as obligors’ agent, and the lenders. All loans must be repaid in full on the final maturity date. The final maturity date is17 July 2019.
Interest rates and fees
The annual interest rate on loans drawn under the US$ Revolving Credit Facility2022 multi-currency RCF is calculated based on LIBOR,Compounded SOFR in the case of loans drawn in US dollars and BBSY in the case of loans drawn in Australian dollars, in each case plus a margin. The initial margin that variesis 1.45 percent per annum, but may vary between 0.950.90 percent and 2.202.15 percent per annum depending on the long-term debt rating of AngloGold Ashanti Limited,AGAH. The applicable margin is subject to a ratings grid. In this regard, the interest margin will reduce if the group's credit rating improves from its current BB+/Baa3 status and certain mandatory costs.will increase if its credit rating worsens. Interest on loanseach loan is payable on the last day of the relevant loan’s interest period and, if the interest period exceeds six months, on the dates falling at six monthsix-monthly intervals after the day the loan was made.
The borrowers under the US$ Revolving Credit Facility2022 multi-currency RCF are required to pay a commitment fee in the base currency equal to 35 percent of the then applicable margin per annum on the undrawn and uncancelled amount of each lender’s commitment during the commitment period. The borrowers are also required to pay a utilisation fee of 0.150.10 percent per annum (if the aggregate outstanding loans are less than one third of the total commitments then in effect), 0.300.20 percent per annum (if the aggregate outstanding loans are equal to or greater than one third but less than two thirdstwo-thirds of the total commitments then in effect) or 0.45 percent per annum (if the aggregate outstanding loans are equal to or greater than two thirds of the total commitments then in effect).
Financial covenant applicable to all Revolving Credit Facilities (RCF)
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The Revolving Credit Agreements include2022 multi-currency RCF includes a financial maintenance covenant which requires that the ratio of Total Net Financial Indebtedness to EBITDA (as such terms are defined in the Revolving Credit Agreements)revolving credit agreement) does not at any time exceed 3.50 to 1.00, with the proviso that this ratio may exceed 3.50 to 1.00 once during the life of the Revolving Credit Agreement,revolving credit agreement, for one six-month period subject to certain criteria. Refer to “Item 18: note 35 “CapitalFinancial Statements—Note 34—Capital Management” for the formulae used in terms of the RCF’srevolving credit agreement to test compliance with the covenants.
Change of control
If a lender so requires, the commitment of such lender under a Revolving Credit Agreementthe 2022 multi-currency RCF will be cancelled and the participation of such lender in all outstanding loans, together with accrued interest and all other amounts accrued, will become immediately due and payable in case any person or group of persons acting in concert becomes (directly or indirectly) the beneficial owner of more than 50 percent of the issued share capital of AngloGold Ashanti Limited.Limited or (as applicable) an eligible successor holding company of AGAH.
Undertakings applicable to all Revolving Credit Agreements
The Revolving Credit Agreements contain2022 multi-currency RCF contains a negative pledge covenants,covenant, including restrictions on the granting of security, a change of business of AngloGold Ashanti Limited and its subsidiaries, acquisitions or participations in joint ventures and mergers and disposals.
The Revolving Credit Agreements2022 multi-currency RCF also contain,contains, among others,other things, the following affirmative covenants: mandatory periodic reporting of financial and other information, notice upon the occurrence of events of default and certain other events, compliance with environmental laws and other obligations requiring each of AngloGold Ashanti LimitedAGAH and its subsidiaries to maintain its corporate existence and qualifications to conduct its business as currently conducted in all applicable jurisdictions and to maintain insurance coverage.
The covenants are subject to exceptions and materiality thresholds.
Events of default applicable to all Revolving Credit Agreements
The Revolving Credit Agreements contain2022 multi-currency RCF contains events of default including failure to make payment of amounts due, breach of obligations under the loan documents, defaults under other agreements evidencing indebtedness, certain bankruptcy events and a cessation of business failure of any of the borrowers to be a wholly-owned subsidiary of AngloGold Ashanti Limited and the occurrence of a material adverse change in the business and financial condition of the borrowers and guarantors under the Revolving Credit Agreements,revolving credit agreement, or AngloGold Ashanti and its subsidiaries as a whole, or in the ability of the borrowers and guarantors to perform their payment obligations under the loan documents. The occurrence of an event of default could result in the immediate and automatic cancellation of all commitments and the acceleration of all payment obligations under the Revolving Credit Agreements2022 multi-currency RCF and the other loan documents.
The above description is only a summary of certain provisions of the Revolving Credit Agreements2022 multi-currency RCF and is qualified in its entirety by reference to the provisions of the Revolving Credit Agreements,2022 multi-currency RCF, a copy of eachwhich is attached hereto as Exhibit 19.4.419.4.4.1 and is incorporated herein by reference.
Notes
2028 Notes
On 22 October 2021, AGAH issued $1,250$750 million 8.5003.375 percent Notes due 20202028 (the 2013 Notes)“2028 notes”). The interest on the 2013 Notes was payable semi annually on 15 January and 15 July of each year, commencing on 15 January 2014. The offering of the 2013 Notes was registered under the Securities Act and the 2013 Notes were listed on the New York Stock Exchange. On 24 August 2015, AGAH offered to buy back up to $810 million in aggregate principal amount of the outstanding 2013 Notes. The offer was partially accepted and $779 million was settled in September 2015. The balance of the 2013 Notes was redeemed on 1 August 2016.
AGAH has agreed to observe certain covenants with respect to the 2028 notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change
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of control of the guarantor and a downgrade, within a specified period, of the 2028 notes by three rating agencies, holders of the 2028 notes have the right to require the issuer to repurchase all or any part of their 2028 notes in cash for a value equal to 101 percent of the aggregate principal amount of 2028 notes repurchased, plus accrued and unpaid interest, if any, on the 2028 notes repurchased to the date of repurchase.
The offering of the 2028 notes was registered under the Securities Act. The 2028 notes were listed on the New York Stock Exchange.
2030 Notes
On 1 October 2020, AGAH issued $700 million 3.750 percent Notes due 2030 (the “2030 notes”). The interest on the 2030 notes is payable semi-annually on 1 April and 1 October of each year, commencing on 1 April 2021. AGAH may on any one or more occasions redeem all or part of the 2030 notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2030 notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2030 notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2012 Notes.2030 notes. The 2012 Notes2030 notes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.
AGAH has agreed to observe certain covenants with respect to the 2012 Notes2030 notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2012 Notes below an investment grade rating2030 notes by twothree rating agencies, holders of the 2012 Notes2030 notes have the right to require the issuer to repurchase all or any part of their 2012 Notes2030 notes in cash for a value equal to 101 percent of the aggregate principal amount of 2012 Notes2030 notes repurchased, plus accrued and unpaid interest, if any, on the 2012 Notes2030 notes repurchased to the date of purchase.repurchase.
The offering of the 2012 Notes2030 notes was registered under the Securities Act. The 2012 Notes2030 notes were listed on the New York Stock Exchange.
On 30 July 2012, AGAH issued $750 million 5.125 percent Notes due 2022 (the “2022 notes”). The interest on the 2022 notes was payable semi-annually on 1 February and 1 August of each year, commencing on 1 February, 2013. AGAH was permitted on any one or more occasions to redeem all or part of the 2022 notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2022 notes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2022 notes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 50 basis points, plus accrued and unpaid interest, if any, to the date of redemption. AGAH had agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2022 notes. The 2022 notes were unsecured and unsubordinated and were fully and unconditionally guaranteed by AngloGold Ashanti Limited.
AGAH had agreed to observe certain covenants with respect to the 2022 notes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of the 2022 notes below an investment grade rating by two rating agencies, holders of the 2022 notes had the right to require the issuer to repurchase all or any part of their 2022 notes in cash for a value equal to 101 percent of the aggregate principal amount of 2022 notes repurchased, plus accrued and unpaid interest, if any, on the 2022 notes repurchased to the date of purchase.
The offering of the 2022 notes was registered under the Securities Act. The 2022 notes were listed on the New York Stock Exchange.
The 2022 notes were redeemed in October and November 2021 and are no longer outstanding.
2020 Notes and 2040 Notes
On 28 April 2010, AGAH issued $700 million 5.375 percent Notes due 2020 (the “2020 notes”) and $300 million 6.500 percent Notes due 2040 (together,(the “2040 notes” and together with the 2010 Notes)2020 notes, the “2010 notes”). The interest on the 2010 Notesnotes is payable
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semi-annually on 15 April and 15 October of each year, commencing on 15 October 2010. AGAH may on any one or more occasions redeem all or part of the 2010 Notes,notes, at a redemption price equal to the greater of (1) 100 percent of the principal amount of the 2010 Notesnotes to be redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2010 Notesnotes (excluding any portion of such payments of interest accrued or unpaid as of the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate, plus 25 basis points with respect to the 2010 Notes maturing in 2020 notes and 30 basis points with respect to the 2010 Notes maturing in 2040 notes, plus accrued and unpaid interest, if any, to the date of redemption. AGAH has agreed to pay certain additional amounts in respect of any withholdings or deductions for certain types of taxes in certain jurisdictions on payments to holders of the 2010 Notes.notes. The 2010 Notesnotes are unsecured and unsubordinated and are fully and unconditionally guaranteed by AngloGold Ashanti Limited.
AGAH has agreed to observe certain covenants with respect to the 2010 Notesnotes restricting, subject to certain limitations, the ability of AngloGold Ashanti Limited and AGAH to amalgamate, reconstruct, consolidate or merge with another company or other legal
entity, and the ability of AngloGold Ashanti Limited and its restricted subsidiaries to pledge their assets to secure certain borrowings, create or incur liens on certain of their property or to engage in sale and leaseback transactions. In case of a change of control of the guarantor and a downgrade, within a specified period, of a series of 2010 Notesnotes below an investment grade rating by two rating agencies, holders of the 2010 Notesnotes have the right to require the issuer to repurchase all or any part of their 2010 Notesnotes in cash for a value equal to 101 percent of the aggregate principal amount of 2010 Notesnotes repurchased, plus accrued and unpaid interest, if any, on the 2010 Notesnotes repurchased to the date of purchase.
The offering of the 2010 Notesnotes was registered under the Securities Act. The 2010 Notesnotes were listed on the New York Stock Exchange. The 2020 notes were repaid at maturity on 15 April 2020 and are no longer outstanding.
For further information, see “Note 25: Borrowings” to our Annual“Item 18: Financial Statements included in Statements—Note 24—Borrowings”,“Item 18 of this Annual Report, “Item 5B.:5B: Liquidity and Capital Resources” and “Item“Item 19: Exhibits to Form 20-F”.
Description of AngloGold Ashanti ADSs
The Bank of New York Mellon issuesregisters and delivers AngloGold Ashanti’s American Depositary Shares, or ADSs. OneEach ADS represents the ownership interest of one ordinary share of AngloGold Ashanti.
The Deposit Agreement
This section provides a summary description of AngloGold Ashanti’s ADSs.
AngloGold Ashanti has entered into an Amended and Restated Deposit Agreement dated 3 June 2008 with The Bank of New York Mellon as depositaryDepositary and the owners and beneficial owners of American Depositary Receipts (Deposit Agreement)(the “Deposit Agreement”).
The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the entire Deposit Agreement and the Form of American Depositary Receipt, which AngloGold Ashanti has filed with the SEC as an exhibit to AngloGold Ashanti’s registration statementstatements on Form F‑6/A (File No. 333‑133049)F-6 (Registration Nos. 333-133049 and 333-159248) on 27 May 2008.2008 and 14 May 2009, respectively. A copy thereof is also attached hereto as Exhibit 19.2.6 and is incorporated herein by reference. See “Item 10.H.:“Item 10H: Documents Onon Display”. Copies of the Deposit Agreement are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 101 Barclay240 Greenwich Street, New York, New York 10286.
Description of the ADSs
The Bank of New York Mellon, as depositary, will registerDepositary, registers and deliverdelivers ADSs. Each ADS will representrepresents one ordinary share (or a right to receive one share) deposited with The Standard Bank of South Africa Limited Société Générale South Africa Limited, FirstRandor HSBC Bank Limited, National Australia Bank Limited of Australia and New Zealand Banking Group Limited, each as a custodian for The Bank of New York Mellon, and allboth of which are referred to collectively as “the Custodian”the “Custodian”. Each ADS will also representrepresents any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York Mellon’s Corporate Trust Office at which the ADSs will beare administered is located at 101 Barclay240 Greenwich Street, New York, New York 10286. The Bank of New York Mellon’s principal executive office is also located at One Wall240 Greenwich Street, New York, New York 10286.
ADSs may be held either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s name in the Direct Registration System, or (B) indirectly by holding a security entitlement in ADSs through a broker or other financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to AngloGold Ashanti’s ADS holders. If ADSs are held indirectly, such holders must rely on the procedures of their broker or other financial institution to assert the rights of ADS registered holders described in this section. Such holders should consult with their broker or financial institution to find out what those procedures are.
The Direct Registration System, or DRS, is a system administered by DTC pursuant to which the depositaryDepositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the depositaryDepositary to the registered holders of uncertificated ADSs.
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AngloGold Ashanti willdoes not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank of New York Mellon. New York law governs the Deposit Agreement and the ADSs.
Dividends and Other Distributions
The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a custodianCustodian receives on AngloGold Ashanti ordinary shares or other deposited securities after deducting any fees and expenses and any applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of AngloGold Ashanti’s ordinary shares that their ADSs represent.
Cash
The Bank of New York Mellon will convert any cash dividend or other cash distribution (in South African rands) that AngloGold Ashanti pays on ordinary shares into US dollars (unless AngloGold Ashanti pays such dividend or cash distribution in US dollars) and distribute to registered holders of ADSs. If that is no longer possible or if any approval from any government is needed and cannot be obtained, The Bank of New York Mellon may distribute non-US currency only to those ADS holders to whom it is possible to make this type of distribution.
The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who for one reason or the other have not been paid. It will not invest the non-US currency, and it will not be liable for interest on such amounts. Before making a distribution, any withholding taxes that must be paid will be deducted. See “Payment“—Payment of Taxes” below. The Bank of New York Mellon will distribute only whole US dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of the distribution.
Ordinary Shares
The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that AngloGold Ashanti distributes as a dividend or free distribution, if AngloGold Ashanti provides such distributionit promptly with satisfactory evidence that it is legal to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly distributed AngloGold Ashanti ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell AngloGold Ashanti ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.
Rights to Subscribe for Additional Ordinary Shares
If AngloGold Ashanti offers holders of its ordinary shares any rights to subscribe for additional AngloGold Ashanti ordinary shares or any other rights, The Bank of New York Mellon, after consultation with AngloGold Ashanti, may make these rights available to holders of ADSs or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.
If The Bank of New York Mellon makes these types of subscription rights available to holders of ADSs,ADS, upon instruction from holders of ADSs, it will exercise the rights and purchase AngloGold Ashanti’s ordinary shares on their behalf. The Bank of New York Mellon will then deposit the AngloGold Ashanti ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights if holders of ADSs pay it the exercise price and any other charges the rights require them to pay.
US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after the exercise of rights. For example, holders of ADSs may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may deliver ADSs which are "restricted securities"“restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs described here, except for the changes needed to put the restrictions in place.
Other Distributions
The Bank of New York Mellon will send to holders of ADSs any other distributions that AngloGold Ashanti makes on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York Mellon may decide to sell what AngloGold Ashanti distributes, and then distribute the net proceeds in the same way as it distributes cash, or it may decide to hold what AngloGold Ashanti distributes, in which case the outstanding ADSs will also represent the newly distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS holders unless it receives satisfactory evidence from AngloGold Ashanti that it is legal to make that distribution. The Bank of New York Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.
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The Bank of New York Mellon is not responsible if, based on available information, it decides that it is unlawful or impractical to make a distribution available to any ADS holders. AngloGold Ashanti has no obligation to register ADSs, AngloGold Ashanti ordinary shares, rights or other securities under the US Securities Act of 1933.Act. AngloGold Ashanti also has no obligation to take any other action to permit the distribution of ADSs, AngloGold Ashanti ordinary shares, or any other rights to ADS holders. This means that the holders of ADSs may not receive the distribution AngloGold Ashanti makes on its ordinary shares or any value for them if it is illegal or impracticalimpracticable for AngloGold Ashanti to make them available to the holders of ADSs.
Deposit, Withdrawal and Cancellation
The Bank of New York Mellon will deliver ADSs if a holder of AngloGold Ashanti’s ordinary shares or theirits broker deposits AngloGold Ashanti’s ordinary shares or evidence of rights to receive ordinary shares with the Custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names such holder of AngloGold Ashanti ordinary shares requests and will deliver the ADSs at its Corporate Trust officeOffice to the persons such holders request.
Holders of ADSs may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited securities underlying the ADSs at the office of the Custodian, or, at the request, risk and expense of ADS holders, The Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.
Interchange Between Certificated ADSs and Uncertificated ADSs
ADS registered holders may surrender their ADS to The Bank of New York Mellon for the purpose of exchanging such ADS for uncertificated ADSs. The Bank of New York Mellon will cancel that ADS and will send to the ADS registered holder a statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver to the ADS registered holder an ADS evidencing those ADSs.
Voting Rights
ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs represent. The Bank of New York Mellon will notify ADS registered holders of shareholders’ meetings and arrange to deliver AngloGold Ashanti’s voting materials to them if AngloGold Ashanti asks it to. Those materials will describe the matters to be voted on and explain how ADS registered holders may instruct The Bank of New York Mellon how to vote. For instructions to be valid, they must reach The Bank of New York Mellon by a date set by The Bank of New York Mellon.
Otherwise, ADS registered holders will not be able to exercise their right to vote unless they withdraw the shares. However, ADS registered holders may not know about the meeting sufficiently in advance to withdraw the shares.
The Bank of New York Mellon will try, as far as practical,practicable, to vote or to have its agents vote the ordinary shares or other deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of AngloGold Ashanti’s MoI and of the deposited securities and any applicable rule of the JSE. The Bank of New York Mellon will only vote or attempt to vote as such holders of ADSs instruct.
AngloGold Ashanti cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as they requested.
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Fees and expenses
Expenses
| ADS holders must pay: | For: | ||||
$5.00 (or less) per 100 ADSs | Each issuance of an ADS, including as a result of a distribution of AngloGold Ashanti ordinary shares or rights or other property Each cancellation of an ADS, including if the Deposit Agreement terminates | ||||
$0.02 (or less) per ADS | Any cash payment | ||||
| Registration or transfer fees | Transfer and registration of AngloGold Ashanti ordinary shares on the AngloGold Ashanti share register to or from the name of The Bank of New York Mellon or its agent when AngloGold Ashanti ordinary shares are deposited or withdrawn | ||||
$0.02 (or less) per ADS per year | Depositary services | ||||
| Expenses of The Bank of New York Mellon | Conversion of non-US currency to US dollars Cable, telex and facsimile transmission expenses Servicing the deposited securities | ||||
Taxes and other governmental charges that The Bank of New York Mellon or any | As necessary | ||||
A fee equivalent to the fee that would have been payable if the securities distributed had been ordinary shares deposited for issuance of ADSs | Distribution of securities distributed to holders of deposited securities that are distributed by The Bank of New York Mellon to ADS holders | ||||
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Payment of Taxes
Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If theThe Bank of New York Mellon sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any proceeds, or send to them any property remaining after it has paid the taxes.
Reclassifications
| If AngloGold Ashanti: | Then: | ||||||||||
Reclassifies, splits up or consolidates any of the deposited securities; | The cash, ordinary shares or other securities received by The Bank of New York Mellon will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities. | ||||||||||
Distributes securities on the ordinary shares that are not distributed to holders of ADSs; or Recapitalises, reorganises, merges, liquidates, sells all or substantially all of AngloGold Ashanti’s assets, or takes any similar action. | The Bank of New York Mellon may, and will if AngloGold Ashanti asks it to, distribute some or all of the cash, AngloGold Ashanti ordinary shares or other securities it receives. It may also issue new ADSs or ask holders of ADSs to surrender their outstanding ADSs in exchange for new ADSs identifying the new deposited securities. | ||||||||||
Amendment and Termination
AngloGold Ashanti may, for any reason, agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the consent of holders. If the amendment increases fees or charges (except for taxes and other governmental charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies holders of ADSs of the amendment. At the time an amendment becomes effective, holders of ADSs are considered, by continuing to hold their ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.
The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at least 30 days prior to the date fixed in the notice if AngloGold Ashanti asks it to do so. The Bank of New York Mellon may also terminate the Deposit Agreement if The Bank of New York Mellon has told AngloGold Ashanti that it would like to resign and AngloGold Ashanti has not appointed a new depositaryDepositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of AngloGold Ashanti ADSs at least 30 days before termination.
After termination, The Bank of New York Mellon and its agents will be required to do only the following under the Deposit Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver AngloGold Ashanti ordinary shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the money and will have no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the proceeds of the sale and other cash. After termination, AngloGold Ashanti’s only obligations will be with respect to indemnification of, and payment of certain amounts to, The Bank of New York Mellon.
Limitations on Obligations and Liability to ADS Holders
The Deposit Agreement expressly limits AngloGold Ashanti’s obligations and the obligations of The Bank of New York Mellon, and limits AngloGold Ashanti’s liability and the liability of The Bank of New York Mellon. AngloGold Ashanti and The Bank of New York Mellon:
•are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon is prevented or delayed by law or circumstances beyond their control from performing their obligations under the Deposit Agreement;
•are not liable if either of AngloGold Ashanti or The Bank of New York Mellon exercises discretion permitted under the Deposit Agreement;
•are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement;
•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement on behalf of the holders of ADSs or on behalf of any other party;
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•may rely on advice of or information from legal counsel, accountants, and any persons presenting AngloGold Ashanti’s ordinary shares for deposit, any registered holder or any other person believed by AngloGold Ashanti in good faith to be competent to give such advice or information; and
•pursuant to the Deposit Agreement, AngloGold Ashanti and The Bank of New York Mellon agree to indemnify each other under certain circumstances.
Requirements for Depositary Action
Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS, or allow withdrawal of AngloGold Ashanti ordinary shares, The Bank of New York Mellon may require:
•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any ordinary shares or other deposited securities;
•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
•compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including presentation of transfer documents.
The Bank of New York Mellon may refuse to deliver, transfer or register transfers of ADSs generally when the books of The Bank of New York Mellon or AngloGold Ashanti’s booksAshanti are closed, or at any time if either AngloGold Ashanti or The Bank of New York Mellon thinks it advisable to do so.
Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time except:
•when temporary delays arise because: (1) either AngloGold Ashanti or The Bank of New York Mellon have closed AngloGold Ashanti’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general meeting of shareholders; or (3) AngloGold Ashanti is paying a dividend on the ordinary shares;
•when ADS holders seeking to withdraw the ordinary shares are liable for unpaid fees, taxes and similar charges; or
•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of the ordinary shares or other deposited securities.
This right of withdrawal may not be limited by any other provision of the Deposit Agreement.
Pre-release of ADSs
In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver ADSs before deposit of the underlying ordinary shares. This is called a pre-release of the ADS.ADSs.
The Bank of New York Mellon may also deliver AngloGold Ashanti ordinary shares upon cancellation of pre-released ADSs (even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the underlying AngloGold Ashanti ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive ADSs instead of ordinary shares to close out a pre-release.
The Bank of New York Mellon may pre-release ADSs only under the following conditions:
•before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank of New York Mellon in writing that it or its customer: (a) owns the ordinary shares or ADSs to be remitted, (b) assigns all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York Mellon in its capacity as the depositaryDepositary and for the benefit of the ADS holders, and (c) will not take any action with respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership (including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the case may be) other than satisfaction of such pre-release;
•the pre-release must be fully collateralizedcollateralised with cash, US government securities, or other collateral that The Bank of New York Mellon considers appropriate; and
Direct Registration System
In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as DTC. DRS is the system administered by DTC pursuant to which the depositaryDepositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements sent by the depositaryDepositary to the registered holders of uncertificated ADSs. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of a registered holder of ADSs, to direct the depositaryDepositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to
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the DTC account of that DTC participant without receipt by the depositaryDepositary of prior authorizationauthorisation from the ADS registered holder to register that transfer.
In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance with instructions received by The Bank of New York Mellon through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute negligence or bad faith on the part of The Bank of New York Mellon.
Shareholder Communications: Inspection of Register of Holders of ADSs
The Bank of New York Mellon will make available for inspection at its office all communications that it receives from AngloGold Ashanti as a holder of deposited securities that AngloGold Ashanti makes generally available to holders of deposited securities. The Bank of New York Mellon sendswill send copies of those communications if requested by AngloGold Ashanti. ADS holders have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to AngloGold Ashanti’s business or the ADSs.
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10D.Exchange controls
Exchange controls and other limitations affecting security holders
The following is a general outline of South African exchange controls and such outline may not apply to former residents of South Africa. Investors should consult a professional advisor as to the exchange control implications of their particular investments.
South African law provides for exchange control regulations, which restrict the export of capital from the Common Monetary Area, which comprises South Africa, the Kingdoms of Lesotho and Swaziland and the Republic of Namibia. The exchange control regulations, whichAfrica. Exchange controls are administered by the Financial Surveillance Department of the South African Reserve Bank (SARB), are applied throughoutin terms of the Exchange Control Regulations, and regulate transactions involving South African residents and non-residents, with the exception of transactions between South African residents and residents of the Common Monetary Area, which comprises the Kingdoms of Lesotho and regulate transactions (including capital flows intoEswatini (formerly Swaziland) and outthe Republic of the Common Monetary Area) involving South African residents, including natural persons and legal entities.
The Government of South African individuals. However, it is impossibleAfrica has, however, committed itself to predict with any certainty if and when the government will removerelaxing exchange controls gradually and significant relaxation has occurred in their entirety or how the controls may continue to change over time.recent years.
The comments below relate, in general, to exchange controls in place at the date of this annual report.
Investments in South African companies
Dividends
Dividends declared to foreign stockholders in public companies listed on the Johannesburg Stock Exchange (JSE) are not subject to the approval of the SARB.SARB, provided that the shares in respect of which the dividends are declared have been endorsed “non-resident” by the SARB or an Authorised Dealer at the time of acquisition. Dividends are freely transferable to foreign stockholders from both trading and non-trading profits earned in South Africa by public listed companies.
Voting rights
There are no limitations imposed by South African law, including South African exchange controls, or by the Memorandum of Incorporation of AngloGold Ashanti on the rights of non-South African shareholders to vote their ordinary shares.
Overseas financing, interest and investments
Interest on foreign loans, if paid from cash generated from operations in South Africa, may be remittable abroad, provided that the loans and the payment of the relevant interest in respect of such loans have received prior SARB approval.
AngloGold Ashanti and its South African subsidiaries require SARB approval to raise debt from and repay debt to non-residents of the Common Monetary Area, mainly in respect of the terms of repayment applicable to such loans, as well as any guarantees that may be provided in respect of such loans, by AngloGold Ashanti or its South African subsidiaries.
Debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries is not restricted under South African exchange control regulations and can be used for investment outside the Common Monetary Area, subject to the relevant conditions imposed by the SARB in connection with such investment, the establishing of such a non-South African subsidiary or in raising the debt by such subsidiary. For example, AngloGold Ashanti and its South African subsidiaries would require SARB approval in order for AngloGold Ashanti and/or its South African subsidiaries to provide guarantees for the obligations of any of its non-South African subsidiaries. In addition, funds obtained from non-residents of the Common Monetary Area and debt raised outside the Common Monetary Area by AngloGold Ashanti’s non-South African subsidiaries must be repaid or serviced by AngloGold Ashanti’s foreign subsidiaries unless otherwise approved by the SARB.
A listing by a South African company on any stock exchange other than the JSE in connection with raising capital requires permission from the SARB.
Under current exchange control regulations, offshore investments by AngloGold Ashanti and its subsidiaries require the approval of the SARB. Subject to such prior approval of the SARB, there is no limit on the amount of capital that may be invested offshore.
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10E.Taxation
South African taxation
General
The following discussion summarisessection provides a summary of the South African tax consequences ofconsequent upon the ownership and disposition of shares by South African residents or ADSs by a US holder (as defined below). and is not intended to constitute tax advice. This summary is based upon current South African tax law and practice of the South African Revenue Service (SARS) practice,, the Convention Between the Government of the United States of America and the Republic of South Africa for the Avoidance ofUS/SA Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 17 February 1997 (Treaty),Treaty, and in part upon representations ofmade by the depositary, andDepositary, on the basis that it assumes that each obligation provided for in, or otherwise contemplated by, a Deposit Agreement and any related agreement will be performed in accordance with its respective terms.
The following summary of the South African tax considerations does not address the tax consequences to a US holder that is resident in South Africa for South African tax purposes, whose holding of shares or ADSs is effectively connected with a permanent establishment in South Africa through which such US holder carries on business activities or, in the case of an individual, who performs independent personal services, with a fixed base situated therein, or who is otherwise not entitled to the full benefits under the US/SA Double Taxation Treaty. It should be appreciated that South Africa ratified the Multilateral Convention to Implement Tax Treaty-related measures to prevent Base Erosion and Profit Shifting (BEPS MLI) on 30 September 2022 and that one should thus read the applicable treaty, including the US/SA Double Taxation Treaty, in this context.
The statements of law set forth below are subject to any changes (which may be applied retroactively) in South African law or in the interpretation thereof by SARS, or in the US/SA Double Taxation Treaty, occurring after the date hereof. It should be expressly noted that South African tax law does not specifically address the treatment of ADSs. However, it is reasonable to assume (although no assurance can be made) that the tax treatment of US holders of shares is also applicable to US holders of ADSs.
Holders are strongly urged to consult their own tax advisors as to the consequences under South African, US federal, state and local, and other applicable laws, of the ownership and disposition of shares or ADSs.
Taxation of dividends
South Africa currently imposes a Dividend Withholding Tax on Companies (dividends tax) at a rate of 20 percent on the net amount of the dividend declared and paid by a resident company, other than a Headquarter Company. This rate was increased to 20 percent on 22 February 2017 when the Minister of Finance announced the increase in the rate pertaining to the dividends paid by South African companies with effect from 1 March 2017.
The dividends tax is generally imposed on the beneficial owner. owner of the dividends. The dividends tax is subject to domestic exemptions or relief in terms of an applicable double taxation treaty. The application of such domestic exemptions or relief in terms of an applicable double taxation treaty is subject to the making of certain declarations and undertakings by the beneficial owner of the dividends to the regulated intermediary making payment of the dividend. In terms of the latest amendments to the tax provisions, the declaration and undertaking entitling the beneficial owner to a reduced dividend withholding tax rate must be renewed every five years, subject to certain exemptions.
The dividends tax could be reduced to a lower rate under an applicable double tax treaty, if all requirements are met. In the case of dividends paid to a US holder with respect to shares, the US/SA Double Taxation Treaty would generally limit the dividends tax rate to five percent of the gross amount of the dividends if a corporate US holder holds directly at least 10ten percent of the voting stock of AngloGold Ashanti. the Company, provided that the applicable declaration and undertaking are given by the beneficial owner that the reduced rate applies.
In all other cases, the maximum tax rate under the US/SA Double Taxation Treaty is 15 percent of the gross amount of the dividend. Even though the domestic rate is thus 20 percent, the maximum rate that is payable under the Treaty is 15 percent of the gross amount of the dividends. There are different
Different rules to considermay apply if the beneficial owner of the dividends is a US resident who carries on business in South Africa through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed basepermanent establishment situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base.
Moreover, if the dividends tax rate is reduced under the auspices of an applicable double tax treaty, there are certain South African compliance requirements that must be met in order to accessobtain the double tax treaty relief, including amongst others the completion of a declaration and undertaking by the recipientsbeneficial owners in favour of the Company.Company and/or the relevant regulated intermediary.
A dividend is currently meansdefined as any amount transferred or applied by a company that is a resident (including AngloGold Ashanti)the Company) for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied by way of a distribution made by the company, or as consideration for the acquisition of any share in that company. ItThe definition of
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a dividend specifically excludes any amount transferred or applied by the companyCompany that results in a reduction of so-called contributed tax capital (CTC), of the relevant class of shares, or constitutes shares in the companyCompany or constitutes an acquisition by the companyCompany of its own securities by way of a general repurchase of securities in terms of the JSE Listings Requirements. A distinction is thus made between a general repurchase of securities and a specific repurchase of securities. If the companyCompany embarks upon a general repurchase of securities, the proceeds areof such repurchase would not deemed to beconstitute a dividend, whereas, in the case of a specific repurchase of securities where the purchase price is not funded out of CTC of that class of shares, the proceeds arewould likely to constitute a dividend.
The concept of CTC effectively means the sum of the stated capital or share capital and share premium of a company that existed on 1 January 2011, excluding any transfers from reserves to the share premium account or stated capital account, plus proceeds from the issue of any new shares by a company.company, less the amount of CTC that has been returned to shareholders. Any application of CTC is limited to the holders of a class of shares and specifically thatshares. In addition, a distribution of CTC attributable to a specific class must be made proportionately to the number of shares held by a shareholder in a specific class. The definition of CTC is subject to various provisos. Recently the definition of CTC was amended to make it clear that CTC can only be transferred to shareholders proportionally.
For dividends tax purposes a dividend is defined as any dividend as indicated above that is paid by a company that is a resident or paid by a foreign company if the share in respect of which that foreign dividend is paid is a listed share and to the extent that the foreign dividend does not constitute a distribution of an asset in kind.
Dividends are generally exempt from the payment of income tax, subject to various exclusions. If a dividend is not exempt from income tax it follows that dividends tax will not also be levied.
Taxation of capital gains on sale or other disposition
South African residents are (subject to certain exemptions) taxed on their worldwide income, while non-residents are only taxed on South African sourced income (subject to the provisions of any relevant double taxation agreement).The general corporate income tax rate has recently been reduced to 27 percent.
Capital gains tax is not a separate tax to income tax; instead, a percentile of the taxpayer’s net capital gain (that is the taxable capital gain) is included in its taxable income on which it is taxed at the income tax rate.
Non-residents are only subject to the South African capital gains tax provisions in respect of the disposal of any immovable property (such as land and buildings or mining rights) or any interest or right of whatever nature to or in immovable property situated in South Africa, or any asset of a permanent establishment through which that non-resident is carrying on a trade in South Africa.In the instance of a shareholder holding shares in a South African company, the ‘interest in immovable property’ requirements are met if 80 percent or more of the market value of the shares is directly or indirectly attributable to South African immovable property held on capital account, and that shareholder (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 percent of the equity shares of that South African company.
The meaning of the word “resident” is different for individuals and corporations and is governed by the South African Income Tax Act 1962 ( the Act) and by the Treaty. In the event of conflict, the Treaty, which contains a tie breaker clause or mechanism to determine residency if a holder is resident in both countries, will prevail. In terms of the Act and Treaty, a US resident holder of shares or ADSs will not be subject to capital gains tax on the disposal of securities held as capital assets unless the securities are linked to a permanent establishment conducted in South Africa.Africa or constitute an interest in immovable property as indicated above. In contrast, gains on the disposal of securities which are not capital in nature are usually subject to income tax. Any asset held as a long-term investment will be considered a capital asset and subject to capital gains tax on the disposal of such an asset. Any asset acquired for purposes of resale as part of a profit-making scheme will not be considered a capital asset and will be subject to income tax on the disposal of such an asset. However, even in the latter case, a US resident holder will not be subject to income tax, unless the US resident holder carries on business in South Africa through a permanent establishment situated therein.
Securities transfer tax (STT)
No securities transfer tax, or STT, is payable in South Africa with respect to the issue of a security, but STT is payable upon transfer, redemption or redemptioncancellation thereof.
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STT on transfers of securities is charged at a rate of 0,250.25 percent on the 'taxable amount'‘taxable amount’ in respect of the 'transfer'‘transfer’ of every security issued by a company incorporated in South Africa, or a company incorporated outside South Africa, but listed on an exchange in South Africa, subject to certain exemptions.
The word 'transfer'‘transfer’ is broadly defined and includes the transfer, sale, assignment or cession or disposal in any other manner of a security which results in a change in beneficial ownership.The cancellation or redemption of a security is also regarded as a transfer‘transfer’ unless the companyCompany is being liquidated. However, the transfer of a security that does not result in a change in beneficial ownership is not regarded as a 'transfer'‘transfer’ for STT purposes. A security is also defined as a depositary receipt in a company. Accordingly,Apart from STT isthus being payable upon the conversion of ADSs to shares and vice versa, , STT could also be payable on the transfer of a depositary receipt issued by a company, including specifically the ADSs issued by AngloGold Ashanti.the Company. Generally, the central securities depositaryDepositary that has been accepted as a participant in terms of the Financial Markets Act, is liable for the payment of the STT, on the basis that it is recoverable from the person to whom it is transferred.
STT is levied on the 'taxable amount'‘taxable amount’ of a security.The taxable amount of a listed security is the greater of the consideration for the security declared by the transferee or the closing price of that security as traded on the stock exchange concerned. InThe person to whom the case of a transfer of a listed security eitheris transferred is liable for payment of the STT, and such tax must be paid through the member or the participant holding the security in custody, or where the listed security is not held in custody, the company that issued the listed security. The tax so payable may be recovered from the person to whom the security is liable for the tax.transferred. The tax must be paid by the fourteenth day of the month following the transfer.month during which the transfer occurred.
Withholding tax on interest
The issue or transfer of shares is not a taxable supply for value-added tax (“VAT”) purposes.However, fees charged by independent service providers are subject to VAT at the standard rate of 15 percent.
United States Taxation
General
The following is a general summary of certain material US federal income tax consequences of the ownership and disposition of shares or ADSs to a US holder (as defined below) that holds its shares or ADSs as a capital asset.With respect to the following, references to shares includes references to ADSs unless the context indicates otherwise.This summary does not address any aspect of US federal gift or estate tax, or the state, local or non-US tax consequences to a US holder of shares or ADSs.shares. This
summary is based on US tax laws including the Internal Revenue Code of 1986, as amended (the Code)“Code”), Treasury regulations promulgated thereunder, rulings, judicial decisions, administrative pronouncements, and the US/SA Double Taxation Treaty, all as currently in effect as of the date of this annual report, and all of which are subject to change or changes in interpretation, possibly with retroactive effect. In addition, this summary is based in part upon the representations of the depositaryDepositary and the assumption that each obligation in the Deposit Agreement relating to the ADSs and any related agreement will be performed in accordance with its terms.
This summary does not address all aspects of US federal income taxation that may apply to holders that are subject to special tax rules, including US expatriates, non-resident aliens present in the United States for at least 183 days during the calendar year, insurance companies, tax-exempt entities, banks, certain financial institutions, persons subject to the alternative minimum tax, regulated investment companies, securities broker-dealers, traders in securities who elect to apply a mark-to-market method of accounting, investors that own (directly, indirectly or by attribution) 10ten percent or more of the outstanding share capital or voting stock of AngloGold Ashanti, partnerships or other entities treated as partnerships for US federal income tax purposes or persons holding shares or ADSs through such entities, persons holding their shares or ADSs as part of a straddle, hedging or conversion transaction, persons who acquired their shares or ADSs pursuant to the exercise of employee stock options or otherwise as compensation, accrual basis taxpayers, or persons whose functional currency is not the US dollar. Such holders may be subject to US federal income tax consequences different from those set forth below.
As used herein, the term “US holder” means a beneficial owner of shares or ADSs that is: (a) a citizen or individual resident of the United States for US federal income tax purposes; (b) a corporation (or other entity taxable as a corporation for US federal income tax purposes) created or organised in or under the laws of the United States, or any state thereof (includingor the District of Columbia);Columbia; (c) an estate the income of which is subject to US federal income taxation regardless of its source; or (d) a trust if (i) a court within the
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United States can exercise primary supervision over the administration of the trust and one or more US persons are authorised to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury regulations to be treated as a United States person.
If a partnership (including for this purpose any entity treated as a partnership for US federal income tax purposes) holds shares, or ADSs, the tax treatment of a partner generally will depend upon the status of the partner and the activities of the partnership. If a US holder is a partner in a partnership that holds shares, or ADSs, the holder is urged to consult its own tax advisor regarding the specific tax consequences of the ownership and disposition of the shares or ADSs.shares.
US holders should consult their own tax advisors regarding the specific South African and US federal, state and local tax consequences of owning and disposing of shares or ADSs in light of their particular circumstances as well as any consequences arising under the laws of any other taxing jurisdiction. In particular, US holders are urged to consult their own tax advisors regarding whether they are eligible for benefits under the US/SA Double Taxation Treaty.
For US federal income tax purposes, a US holder of ADSs should generally be treated as owning the underlying shares represented by those ADSs. Therefore, deposits or withdrawals by a US holder of shares for ADSs or of ADSs for shares will not be subject to US federal income tax. The following discussion (except where otherwise expressly noted) applies equally to US holders of shares and US holders of ADSs.
▪Taxation of dividends
The gross amount of any distribution (including the amount of any South African withholding tax thereon) paid to a US holder by AngloGold Ashanti generally will be taxable as dividend income to the US holder for US federal income tax purposes on the date the distribution is actually or constructively received by the US holder, in the case of shares, or by the depositary,Depositary, in the case of ADSs.Corporate US holders will not be eligible for the dividends received deduction in respect of dividends paid by AngloGold Ashanti. For foreign tax credit limitation purposes, dividends paid by AngloGold Ashanti will be income from sources outside the United States.
As noted above in “-Taxation-South“Taxation—South African Taxation-Taxationtaxation—Taxation of dividends”, the South African government has enacted a dividend withholding tax.As a result, US holders who are eligible for benefits under the current US/SA Double Taxation Treaty will be subject to a maximum withholding tax of 15 percent on the gross amount of dividend distributions paid by AngloGold Ashanti.
The amount of any distribution paid in foreign currency (including the amount of any South African withholding tax thereon) generally will be includible in the gross income of a US holder of shares in an amount equal to the US dollar value of the foreign currency calculated by reference to the spot rate in effect on the date of receipt by the US holder, in the case of shares, or by the depositary,Depositary, in the case of ADSs, regardless of whether the foreign currency is converted into US dollars on such date. If the foreign currency is converted into US dollars on the date of receipt, a US holder of shares generally should not be required to recognise foreign currency gain or loss in respect of the dividend. If the foreign currency received in the distribution is not converted into US dollars on the date of receipt, a US holder of shares generally will have a tax basis in the foreign currency equal to its US dollar value on the date of receipt. Any gain or loss recognised upon a subsequent conversion or other disposition of the foreign currency generally will be treated as US source ordinary income or loss. In the case of a US holder of ADSs, the amount of any distribution paid in a foreign currency generally will be converted into US dollars by the depositaryDepositary upon its receipt. Accordingly, a US holder of ADSs generally will not be required to recognise foreign currency gain or loss in respect of the distribution. Special rules govern and specific elections are available to accrual method taxpayers to determine the US dollar amount includible in income in the case of taxes withheld in a foreign currency. Accrual basis taxpayers are therefore urged to consult their own tax advisors regarding the requirements and elections applicable in this regard.
Subject to certain limitations, South African withholding taxes will be treated as foreign taxes eligible for credit against a US holder’s US federal income tax liability. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. Dividend income generally will constitute ‘passive category’“passive category” income, or in the case of certain US holders, ‘general category’“general category” income. The use of foreign tax credits is subject to complex conditions and limitations. In lieu of a credit, a US holder who itemises deductions may elect to deduct all of such holder’s foreign taxes in the taxable year. A deduction does not reduce US tax on a dollar-for-dollar basis like a tax credit, but the deduction for foreign taxes is not subject to all the same limitations applicable to foreign tax credits. US holders are urged to consult their own tax advisors regarding the availability of foreign tax credits.
Certain US holders (including individuals) are eligible for reduced rates of US federal income tax in respect of “qualified dividend income” received. For this purpose, qualified dividend income generally includes dividends paid by a non-US corporation if, among other things, the US holders meet a certain minimum holding period and other requirements and the non-US corporation satisfies certain requirements, including that either (i) the ordinary shares (or ADSs) with respect to which the dividend has been paid are readily tradable on an established securities market in the United States, or (ii) the non-US corporation is eligible for the benefits of a comprehensive US income tax treaty (such as the Treaty) which provides for the exchange of information. AngloGold Ashanti currently believes that dividends paid with respect to its shares and ADSs should constitute qualified dividend income for US federal income tax purposes. AngloGold Ashanti anticipates that its dividends will be reported as qualified dividends on Forms 1099-DIV delivered to US holders. Each individual US holder of AngloGold Ashanti shares or ADSs is urged to consult his own tax advisor regarding the availability to him of the reduced dividend tax rate in light of his own particular situation.
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The US Treasury has expressed concern that parties to whom ADSs are pre-released may be taking actions that are inconsistent with the claiming of foreign tax credits for US holders of ADSs. Such actions would also be inconsistent with the claiming of the reduced rate of tax described above, applicable to dividends received by certain non-corporate holders. Accordingly, the analysis of the creditability of South African withholding taxes or the availability of qualified dividend treatment could be affected by future actions that may be taken by the US Treasury with respect to ADSs.
•Taxation of dispositions
If a US holder is a resident of the United States for purposes of the US/SA Double Taxation Treaty, such holder will not be subject to South African tax on any capital gain if it sells or disposes of its shares or ADSs.shares. Special rules apply to individuals who are residents of more than one country.
Subject to the passive foreign investment company considerations discussed below, upon athe sale, exchange or other disposition of shares, or ADSs, a US holder generally will recognise capital gain or loss for US federal income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the holder'sholder’s tax basis, determined in US dollars, in the shares or ADSs.shares. Such gain or loss generally will be US source gain or loss, and will be treated as a long-term capital gain or loss if the holder’s holding period in the shares or ADSs exceeds one year at the time of disposition. If the US holder is an individual, any capital gain generally will be subject to US federal income tax at preferential rates if specified minimum holding periods are met. The deductibility of capital losses is subject to significant limitations.limitations under the Code.
A US holder’s tax basis in a share will generally be its US dollar cost. The US dollar cost of a share purchased with foreign currency will generally be the US dollar value of the purchase price on the date of purchase, or the settlement date for the purchase in(in the case of shares traded on an established securities market that are purchased by a cash basis US holder or an electing accrual basis US holder.holder), or the date of purchase in all other cases. The amount realised on a sale or other disposition of shares for an amount in foreign currency will be the US dollar value of this amount on the settlement date for the sale or disposition (in the case of shares traded on an established securities market that are sold by a cash basis US holder or an electing accrual basis US holder), or the date of sale or disposition. On the settlement date,disposition in all other cases. In addition, in such other cases, the US holder will recognise US source foreign currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. However, in the case of shares traded on an established securities market that are sold by a cash basis US holder (or an accrual basis US holder that so elects), the amount realised will be based on the exchange rate in effect on the settlement date for the sale, and no exchange gain or loss will be recognised at that time. If an accrual basis US holder makes either of the elections described above, it must be applied consistently from year to year and cannot be revoked without the consent of the Internal Revenue Services (IRS).
Foreign currency received on the sale or other disposition of a share will have a tax basis equal to its US dollar value on the settlement date. Any gain or loss recognised on a sale or other disposition of foreign currency (including its use to purchase shares or upon exchange for US dollars) will be US source ordinary income or loss.
▪Passive foreign investment company considerations
A non-USforeign corporation will be classified a Passive Foreign Investment Companypassive foreign investment company (PFIC) for any taxable year if at least 75 percent of its gross income consists of passive income (such as dividends, interest, rents or royalties (other than rents or royalties derived in the active conduct of a trade or business and received from an unrelated person), or gains on the disposition of certain minority interests), or at least 50 percent of the average value of its assets consists of assets that produce, or are held for the production of, passive income. AngloGold Ashanti believes that it was not treated as a PFIC for the taxable year ended 31 December 20162022 or any prior taxable years and does not expect to become a PFIC in the foreseeable future. If AngloGold Ashanti were characterised as a PFIC for any taxable year, a US holder would suffer adverse tax consequences with respect to that taxable year and all future years during which it holds AngloGold Ashanti ordinary shares (or ADSs).shares.
These consequences may include having gainsgain realised on the disposition of shares treated as ordinary income rather than capital gainsgain and being subject to punitive interest charges on the receipt of certain dividends and on the proceeds of the sale or other disposition of the shares. Furthermore, dividends paid by AngloGold Ashanti would not be “qualified dividend income” and would be taxed at the higher rates applicable to other items of ordinary income. US holders should consult their own tax advisors regarding the potential application of the PFIC rules to their ownership of the shares.
▪US information reporting and backup withholding
In general, dividend payments made to a US holder and proceeds paid from the sale, exchange, or other disposition of shares may be subject to information reporting to the IRS and possible backup withholding. US federal backup withholding generally is imposed at a current rate of 24 percent on specified payments including dividends and gross sale proceeds to persons who fail to furnish required information. Backup withholding will not apply to a US holder who furnishes a correct taxpayer identification number or certificate of foreign status and makes any other required certification or who is otherwise exempt from backup withholding. US persons who are required to establish their exempt status generally must provide IRS Form W-9 (Request for Taxpayer Identification Number and Certification). Non-US holders generally will not be subject to US information reporting or backup withholding. However, these holders may be required to provide certification of non-US status (generally on IRS Form W-8BEN or W-8BEN-E) in connection with payments received in the United States or through certain US-related financial intermediaries. Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against a holder’s US federal income tax liability. A holder may obtain a refund of any excess amounts withheld under the backup withholding rules by filing the appropriate claim for refund with the IRS and furnishing any required information.
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▪Information with respect to foreign financial assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of $50,000 are generally required to file information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual’s circumstances, higher threshold amounts may apply. “Specified foreign financial assets” include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by non-United Statesforeign persons, (ii) financial instruments and contracts held for investment that have non-United Statesforeign issuers or counterparties and (iii) interests in non-United Statesforeign entities. TheTherefore, the shares or ADSs may be treated as specified foreign financial assets. In such cases, certain US holders may be subject to this information reporting regime and be required to file IRS formForm 8938 listing these assets with their U.S. federal income tax returns. Failure to file information reports may subject a US holder to penalties. US holders are urged to consult their own tax advisors regarding their obligations to file information reports with respect to the shares and ADSs.shares.
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10F. DIVIDENDS AND PAYING AGENTS
Not applicable.
10G. STATEMENT BY EXPERTS
Not applicable.
10H.Documents on displayDisplay
AngloGold Ashanti files annual reports on Form 20-F and reports on Form 6-K with the SEC. You may read and copyaccess this information at the SEC’s Public Reference Room at 100F Street, N.E., Room 1580, Washington D.C. 20549 or by accessing the SEC’s home page (http://www.sec.gov). You can also request copies of documents, upon payment of a duplicating fee, by writing to the Public Reference Section of the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the Public Reference Room. In addition, AngloGold Ashanti’s reports and other information may be inspected at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005. Copies of the documents referred to herein may also be inspected at AngloGold Ashanti’s offices by contacting AngloGold Ashanti at 76 Rahima Moosa Street, Newtown,112 Oxford Road, Houghton Estate, Johannesburg, 2001 (P.O. Box 62117, Marshalltown, 2107)2198 (Private Bag X 20, Rosebank, 2196) South Africa, Attention: Company Secretary, telephone number:
No material on the AngloGold Ashanti website forms any part of, or is incorporated by reference into, this annual report on Form 20-F. References herein to the company’sCompany’s website shall not be deemed to cause such incorporation.
10I. SUBSIDIARY INFORMATION
Not applicable.
10J. Annual Report to Security Holders
AngloGold Ashanti intends to submit its annual report provided to security holders in electronic format as an exhibit to a current report on Form 6-K.
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ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
TREASURY POLICY
Risk management activities within the groupGroup are the ultimate responsibility of the board of directors.board. The Chief Financial Officer is responsible to the board of directors for the design, implementation and monitoring of the risk management plan. The Audit and Risk Committee is responsible for overseeing risk management plans and systems, as well as financial risks which include a review of treasury activities and exposure to the group’sGroup’s counterparties.
Under the treasuryfinancial and risk management policy, hedges may be put in place once approved by the Board, using approved instruments over the group’sGroup’s planned gold production and resultant gold sales and currency exposures. The tenor of the hedges may extend out to ten years. The treasuryfinancial and risk management policy sets trading limits on the extent to which the hedge position may change for the various levels of treasury management from dealer, through treasurer, executive management team and board.board members.
The financial risk management activities objectives of the groupGroup are as follows:
•Safeguarding the group’sGroup’s core earnings stream from its major assets through the effective control and management of gold and other commodity price risk, foreign exchange risk and interest rate risk;
•Effective and efficient usage of credit facilities in both the short- and long-term through the adoption of reliable liquidity management planning and procedures;
•Ensuring that investment and hedging transactions are undertaken with creditworthy counterparts; and
•Ensuring that all contracts and agreements related to financial risk management activities are co-ordinated and consistent throughout the groupGroup and comply where necessary with all relevant regulatory and statutory requirements.
Under the treasuryfinancial and risk management policy, treasury reports are produced at the following minimum intervals for review by management and the board of directors.
directors:
| • | Daily | ||||||||||
| • | |||||||||||
| • | Treasurer | ||||||||||
| • | Quarterly | Audit and Risk Committee and Board of Directors | |||||||||
The Treasury Risk Analyst is responsible for monitoring all reports for completeness and accuracy which are reviewed by the Treasurer.
At AngloGold Ashanti, all front office (dealing), middle office (risk reporting), back office (deal confirmations) and payment (treasury settlements) activities are segregated. All treasury transactions are captured on a third party developed treasury and risk management system that is widely used in corporate treasuries. The groupGroup internal audit function conducts regular and ad-hocad hoc reviews of the activities of treasury and the group’sGroup’s treasury system.
Gold price and other commodities risk management activities
In the normal course of its operations, the groupGroup is exposed to gold and other commodity price, currency, interest rate, equity price, liquidity and non-performance risk, which includes credit risk. The groupGroup is also exposed to certain by-product commodity price risk. In order to manage these risks, the groupGroup may enter into transactions which make use of derivatives. The groupGroup has developed a risk management process to facilitate, control and monitor these risks.
Gold price risk arises from the risk of an adverse effect of current or future earnings resulting from fluctuations in the price of gold. The group eliminated its hedge book during 2010 and has since had full exposure to the spot price of gold.
In July 2022, AngloGold Ashanti entered into forward contracts for a total of 999,000 barrels of Brent Crude oil for the period January 2023 to December 2023 that will be reclassifiedcash settled on a monthly basis against the contract price. The average price achieved on the forward contracts is $89.20 per barrel of Brent Crude oil. At 31 December 2022, the mark-to-market value of these oil derivatives was an unrealised loss of $6 million.
Foreign exchange price risk protection agreements
The Group, from accumulated other comprehensive incometime to time, may enter into currency forward exchange and recognised as an adjustmentcurrency option contracts to depreciation expense over the lifehedge certain anticipated transactions denominated in foreign currencies. The objective of the Serra Grande mine.
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As at each reporting date reported as gains31 December 2022 and 2021, the Group had no open forward exchange or losses on derivativescurrency option contracts in earnings in the period in which they occur.its currency hedge position.
Cash flows related to these instruments designated as qualifying hedges are reflected in the consolidated statement of cash flows in the same category as the cash flow from the items being hedged. Accordingly, cash flows relating to the settlement of forward sale commodity derivatives contracts hedging the forecasted sale of production into the spot market will be reflected upon settlement as a component of operating cash flows.
Interest rate and liquidity risk
Fluctuations in interest rates impactsimpact interest paid and received on the short-term cash investments and financing activities, giving rise to interest rate risk.
In the ordinary course of business, the groupGroup receives cash from the proceeds of its gold sales and is required to fund its working capital requirements. This cash is managed to ensure that surplus funds are invested in a manner to achieve market related returns while minimising risks.
The groupGroup is able to actively source financing at competitive rates. The counterparts are financial and banking institutions and their credit ratings are regularly monitored by the group.Group.
Cash and loans advanced maturity profile
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
| Maturity date | Currency | Fixed rate investment amount (million) | Effective rate % | Floating rate investment amount (million) | Effective rate % | Fixed rate investment amount (million) | Effective rate % | Floating rate investment amount (million) | Effective rate % | ||||||||||||||||||||||||||||||||||||||
| All less than one year | $ | 8 | — | 507 | 3.48 | 1 | — | 301 | 0.10 | ||||||||||||||||||||||||||||||||||||||
| ZAR | 1,471 | 6.87 | — | 1,337 | 3.54 | — | |||||||||||||||||||||||||||||||||||||||||
| AUD | — | — | 49 | 1.07 | — | — | 72 | — | |||||||||||||||||||||||||||||||||||||||
| BRL | — | — | 52 | 11.57 | — | — | 106 | 4.27 | |||||||||||||||||||||||||||||||||||||||
| ARS | 18,178 | 66.50 | 2,362 | 65.50 | 13,256 | 34.00 | — | ||||||||||||||||||||||||||||||||||||||||
| CAD | — | — | — | — | — | — | 353 | 0.19 | |||||||||||||||||||||||||||||||||||||||
| GBP | — | — | 2 | 1.54 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | ||||||||||||||||||
| Maturity date | Currency | Fixed rate investment amount (million) | Effective rate % | Floating rate investment amount (million) | Effective rate % | Fixed rate investment amount (million) | Effective rate % | Floating rate investment amount (million) | Effective rate % | ||||||||||
| All less than one year | $ | — | — | 57 | 2.39 | 7 | 0.80 | 37 | 0.42 | ||||||||||
| ZAR | 123 | 6.46 | 157 | 5.78 | 625 | 6.69 | 127 | 5.49 | |||||||||||
| AUD | — | — | 22 | 3.00 | — | — | 31 | 3.50 | |||||||||||
| BRL | — | — | 28 | 8.60 | — | — | 5 | 14.08 | |||||||||||
| ARS | — | — | — | — | — | — | 1 | 20.00 | |||||||||||
Borrowings maturity profile
| Within one year | Between One and two years | Between Two and five years | After five years | Total | ||||||||||||||||||||||||||||||||||||||||
| Currency | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | |||||||||||||||||||||||||||||||||||
| $ | 16 | 5.5 | 63 | 11.9 | 58 | 12.4 | 1,721 | 4.1 | 1,858 | |||||||||||||||||||||||||||||||||||
| AUD | — | — | — | — | 54 | 4.5 | — | — | 54 | |||||||||||||||||||||||||||||||||||
| TZS | 3,586 | 12.5 | 201,542 | 12.5 | — | — | — | — | 205,128 | |||||||||||||||||||||||||||||||||||
| Within one year | Between One and two years | Between Two and five years | After five years | Total | |||||||||||||||
| Currency | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | ||||||||||
| $ | 28 | 5.4 | 48 | 4.9 | 1,441 | 5.2 | 291 | 6.5 | 1,808 | ||||||||||
| ZAR | 34 | 10.2 | 42 | 10.2 | 2,826 | 8.8 | 194 | 15.5 | 3,096 | ||||||||||
| BRL | 3 | 5.7 | 3 | 5.6 | 3 | 5.0 | — | — | 9 | ||||||||||
| AUD | 7 | 5.9 | 214 | 4.6 | 21 | 6.8 | 41 | 6.8 | 283 | ||||||||||
The table above is based on the borrowings as at 31 December 20172022 including borrowing cost and accrued interest but excludes any fair value adjustments.
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Interest rate risk
| Fixed for less than one year | Fixed for between one and three years | Fixed for greater than three years | ||||||||||||||||||||||||||||||||||||||||||
| Currency | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Total Borrowings amount (million) | |||||||||||||||||||||||||||||||||||||
| $ | 16 | 5.5 | 128 | 12.1 | 1,714 | 4.1 | 1,858 | |||||||||||||||||||||||||||||||||||||
| AUD | — | — | — | — | 54 | 4.5 | 54 | |||||||||||||||||||||||||||||||||||||
| TZS | 3,586 | 12.5 | 201,542 | 12.5 | — | — | 205,128 | |||||||||||||||||||||||||||||||||||||
| Fixed for less than one year | Fixed for between one and three years | Fixed for greater than three years | ||||||||||||||||
| Currency | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Borrowings amount (million) | Effective rate % | Total Borrowings amount (million) | |||||||||||
| $ | 28 | 5.4 | 746 | 5.1 | 1,034 | 5.5 | 1,808 | |||||||||||
| ZAR | 34 | 10.2 | 2,786 | 8.8 | 276 | 14.0 | 3,096 | |||||||||||
| BRL | 3 | 5.7 | 3 | 5.2 | 3 | 5.3 | 9 | |||||||||||
| AUD | 7 | 6.5 | 221 | 4.6 | 55 | 6.8 | 283 | |||||||||||
The table above is based on the borrowings as at 31 December 20172022 including borrowing cost and accrued interest but excludes any fair value adjustments.
Non-performance risk
Realisation of contracts is dependent upon counterparts’ performance. The group has not obtained collateral or other security to support the financial instruments subject to non-performance risk, but the credit standing of counterparts was monitored on a regular basis throughout the year. The group spreads its business over a number of financial and banking institutions to minimise the risk of potential non-performance risk.non-performance. Furthermore, the approval process of counterparts and the limits applied to each counterpart were monitored by the board of directors. Where possible, ISDA netting agreements were put in place.
The combined maximum credit risk exposure at balance sheet date amounts to $361$1,210 million in 2022 for financial assets (2016: $395(2021: $1,300 million) and nil million for financial guarantees (2016: nil million)(2021: nil). Credit risk exposure netted by open derivative positions with counterparts was nil (2016:(2021: nil). No set-off is applied to balance sheet amounts due to the different maturity profiles of assets and liabilities.
Fair value of financial instruments
The estimated fair values of financial instruments are determined at discrete points in time based on relevant market information. The estimated fair values of the group’sGroup’s financial instruments, as measured at 31 December, are as follows (assets (liabilities)):
| 2022 | 2021 | |||||||||||||||||||||||||
| Carrying Amount | Fair value | Carrying Amount | Fair value | |||||||||||||||||||||||
| (millions) | $ | $ | $ | $ | ||||||||||||||||||||||
| Cash and cash equivalents | 1,108 | 1,108 | 1,154 | 1,154 | ||||||||||||||||||||||
| Restricted cash | 60 | 60 | 58 | 58 | ||||||||||||||||||||||
| Deferred compensation asset | 12 | 12 | 25 | 25 | ||||||||||||||||||||||
| Short-term borrowings | (18) | (18) | (51) | (51) | ||||||||||||||||||||||
| Long-term borrowings | (1,965) | (1,808) | (1,858) | (1,960) | ||||||||||||||||||||||
| Listed investments - FVTOCI | 2 | 2 | 116 | 116 | ||||||||||||||||||||||
| Listed and unlisted investments | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
| 2017 | 2016 | |||||||||||
Carrying Amount | Fair value | Carrying Amount | Fair value | |||||||||
| (millions) | $ | $ | $ | $ | ||||||||
| Cash and cash equivalents | 205 | 205 | 215 | 215 | ||||||||
| Restricted cash | 65 | 65 | 55 | 55 | ||||||||
| Short-term borrowings | (38 | ) | (38 | ) | (34 | ) | (34 | ) | ||||
| Long-term borrowings | (2,230 | ) | (2,339 | ) | (2,144 | ) | (2,169 | ) | ||||
| Listed investments - available for sale | 80 | 80 | 51 | 51 | ||||||||
| Listed investments - held to maturity | 4 | 6 | 6 | 8 | ||||||||
| Unlisted investments - held to maturity | 54 | 54 | 73 | 73 | ||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Cash restricted for use, cash and cash equivalents
The carrying amounts approximate fair value.
Trade and other receivables and trade and other payables
The carrying amounts approximate fair value because of the short-term duration of these instruments.instruments, except for the deferred compensation asset which is carried at fair value in level 3 of the fair value hierarchy.
Listed equity investments classified as available-for-saleFVTOCI and FVTPL are carried at fair value while fixed income investments and other non-current assets are carried at amortised cost. Thein level 1 of the fair value of fixed income investments and other non-current assets has been calculated using market interest rates. The unlisted equity investments are carried at cost or fair value.hierarchy.
Borrowings
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The interest rate on borrowings is reset on a short-term floating rate basis, and accordingly the carrying amount is considered to approximate fair value.
Derivatives
The fair values of volatility-based instruments (i.e., options) are estimated based on market prices, volatilities, credit risk and interest rates for the periods under review.
Gain (loss) on non-hedge derivatives and other commodity contracts recognised
| Year ended 31 December | |||||||||||
| 2022 | 2021 | ||||||||||
| (millions) | $ | $ | |||||||||
| Other commodity contracts | (6) | — | |||||||||
| Year ended 31 December | |||||
| 2017 | 2016 | ||||
| (millions) | $ | $ | |||
| Unrealised | |||||
| Gain (loss) on non-hedge derivatives and other commodity contracts | 10 | 18 | |||
Accumulated other comprehensive income | Changes in fair value recognised | Reclassification adjustments | Accumulated other comprehensive income | ||||||||
as of 1 January 2017 | in 2017 | as of 31 December 2017 | |||||||||
| (millions) | $ | $ | $ | $ | |||||||
| Derivatives designated as | |||||||||||
| Capital expenditure | (2 | ) | — | — | (2 | ) | |||||
| Before tax totals | (2 | ) | — | — | (2 | ) | |||||
| After tax totals | (1 | ) | — | — | (1 | ) | |||||
Accumulated other comprehensive income | Changes in fair value recognised | Reclassification adjustments | Accumulated other comprehensive income | ||||||||
as of 1 January 2016 | in 2016 | as of 31 December 2016 | |||||||||
| (millions) | $ | $ | $ | $ | |||||||
| Derivatives designated as | |||||||||||
| Capital expenditure | (2 | ) | — | — | (2 | ) | |||||
| Before tax totals | (2 | ) | — | — | (2 | ) | |||||
| After tax totals | (1 | ) | — | — | (1 | ) | |||||
Foreign exchange risk
Foreign exchange risk arises on financial instruments that are denominated in a foreign currency.
The following table discloses the approximate foreign exchange risk sensitivities of borrowings at 31 December 20172022 (actual changes in the timing and amount of the following variables may differ from the assumed changes below)
.
| Change in exchange rate | Change in | borrowings Total | ||||||||||||||
| $M | ||||||||||||||||
| Debt | ||||||||||||||||
| Spot (+ | ||||||||||||||||
| AUD denominated (AUD/$) | Spot (+AUD0.1) | |||||||||||||||
Change in exchange rate | Change in borrowings Total | ||||||||||||||
| $M | |||||||||||||||
| Debt | |||||||||||||||
| Spot | |||||||||||||||
| AUD denominated (AUD/$) | Spot (-AUD0.1) | ||||||||||||||
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ITEM 12: DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
12A. DEBT SECURITIES
Not applicable
12B. WARRANTS AND RIGHTS
Not applicable
12C. OTHER SECURITIES
Not applicable
12D. AMERICAN DEPOSITARY SHARES
12D.3. DEPOSITARY FEES AND CHARGES
AngloGold Ashanti’s American Depositary Shares, or ADSs, each representing one of AngloGold Ashanti’s ordinary shares, are traded on the New York Stock Exchange under the symbol “AU.”“AU”. The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by The Bank of New York Mellon, as Depositary under the Amended and Restated Deposit Agreement dated as of 3 June 2008, among AngloGold Ashanti Limited, The Bank of New York Mellon and owners and beneficial owners of from time to time of ADRs. ADS holders may have to pay the following service fees to the Depositary:
| Service | Fees (USD) | |||||||
| Issuance of ADSs | Up to 5 cents per ADS | (1) | ||||||
| Cancellation of ADSs | Up to 5 cents per ADS | (1) | ||||||
| Distribution of cash dividends or other cash distributions | Up to 2 cents per ADS | (2) | ||||||
| Distribution of securities pursuant to | ||||||||
| (i) stock dividends, free stock distributions or | ||||||||
| (ii) exercises of rights to purchase additional ADSs | Up to 5 cents per ADS | (2) | ||||||
| ADR Depositary Services fee | Up to 2 cents per year | (2) | ||||||
(1)These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary and by the brokers on behalf of their clients delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.
(2)In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR holder.
In addition, ADS holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, and (3) such cable, telex and facsimile transmission expenses as are expressly incurred by the Depositary in the conversion of foreign currency.
Fees and other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities, shall be collected at the sole discretion of the Depositary by billing such owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions.
For further information, refer to “Item“Item 10C: Material Contracts - Contracts—The Deposit Agreement”.
12D.4. DEPOSITARY PAYMENTS FOR 2022
For the year ended 31 December 2017,2022, The Bank of New York Mellon, as Depositary, reimbursed AngloGold Ashanti an amount of $867,747 (2016: $1,185,580)$934,248 (2021: $1,083,405) mainly for investor relations relatedrelations-related expenses.
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PART II
ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
272
ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
None.
273
ITEM 15: CONTROLS AND PROCEDURES
(a)Disclosure Controls and Procedures:As of 31 December 2022, (the “Evaluation Date”), the Company, under the supervision and with the participation of its management, including the chief executive officer and chief financial officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a - 15(e) and 15d - 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on such evaluation, the chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective, and are reasonably designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding disclosure.
(b) Management’s Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company, as defined in the Exchange Act Rule 13a - 15(f) and 15d -15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
The company’sCompany’s internal control over financial reporting includes those policies and procedures that:
•Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the assets of the company;Company;
•Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the companyCompany are being made only in accordance with authorisations of management and the Directors of the company;Company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’sCompany’s assets that could have a material effect on the financial statements.
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate.
The company’sCompany’s management assessed the effectiveness of the company’sCompany’s internal control over financial reporting as of the Evaluation Date. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in Internal Control - Integrated Framework and related illustrative documents released on 14 May 14, 2013.Based on this assessment, and using those criteria, management concluded that the company’sCompany’s internal control over financial reporting was effective as of the Evaluation Date.
(c) Changes in Internal Control over Financial Reporting:The Company maintains a system of internal control |
There have been no further changes in the company’sCompany’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13(a) - 15 during the year ended 31 December 31, 20172022 that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.
See also “Item 3D,3D: Risk Factors of this annual report on Form 20F for risk factors related—AngloGold Ashanti’s inability to the implementation and integration of information technology systems and maintainingmaintain an effective system of internal control over financial reporting.reporting may have an adverse effect on investors’ confidence in the reliability of its financial statements.”
(d) Attestation Report of the Registered Public Accounting Firm: The Company’s independent registered accounting firm, Ernst & Young Inc., has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting. This report appears below.
/s/ KC RamonG A Doran
Chief Financial Officer
/s/ S VenkatakrishnanA Calderon
Chief Executive Officer
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Opinion on internalInternal Control over Financial Reporting
We have audited AngloGold Ashanti Limited’s (the Company) internal control over financial reporting as of 31 December 2017,2022, based on criteria established in Internal Control-IntegratedControl—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 COSO framework) (the COSO criteria). In our opinion, AngloGold Ashanti Limited (the Company)the Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2017,2022, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(PCAOB), the consolidated statement of financial position of AngloGold Ashanti Limitedthe Company as of 31 December 2017, 20162022, 2021 and 2015,2020, the related consolidated statements of income, comprehensive income, cash flows and changes in equity for each of the three years in the period ended 31 December 2017,2022, and the related notes and our report dated 2917 March 20182023 expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and LimitationLimitations of Internal Control overOver Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young Inc.
Johannesburg, Republic of South Africa
275
ITEM 16A: AUDIT COMMITTEE FINANCIAL EXPERT
Membership of the Audit and Risk Committee, including its chairman, comprises only independent non-executive directors, in compliance with the Sarbanes-Oxley Act. This also fulfils the guidelines of King IV, which became effective 1 November 2016, and the requirements of the SA Companies Act, of 2008, which became effective on 1 May 2011. The Sarbanes-Oxley Act requires the board to identify a financial expert from within its ranks. The board has resolved that Mr Rhidwaan GasantMr. Alan Ferguson is the Audit and Risk Committee'sCommittee’s financial expert. Individually, the remaining members of the committeeAudit and Risk Committee have considerable knowledge and experience in associated areas such as audit, risk and corporate governance to help oversee and guide the board and the company.Company.
276
ITEM 16B: CODE OF ETHICS AND WHISTLE-BLOWING POLICIES
In order to comply with the company'sCompany’s obligation in terms of the Sarbanes-Oxley Act and King IV, and in the interests of good governance, the companyCompany has systems and procedures to introduce, monitor and enforce its ethical codes and has adopted a code of business principles and ethics for employees and directors, a code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers, and a whistle-blowing policy that encourages employees to report anonymously if they wish and without fear of retaliation acts of an unethical or illegal nature that affect the company'sCompany’s interests. The code of business principles and ethics expresses the company’sCompany’s commitment to the conduct of its business in line with ethical standards and is designed to enable employees and directors to perform their roles and duties with integrity and responsibility.
The whistle-blowing policy provides channels for employees to report acts and practices that are in conflict with the company’sCompany’s code of business principles and ethics or are unlawful, including financial malpractice or dangers to the public or the environment. Reports may be made to management or through several mediums including the intranet, internet, telephone, short messaging system (sms), fax and post. All reports not made to management are administered by a third party, Tip-Offs Anonymous, to ensure independence of the process. Reported cases are relayed to management through group compliance and group internal audit.compliance. A report is provided by group compliance and group internal audit to the Serious Concerns Committee, a management committee, on a quarterly basis as well as the Social, Ethics and Sustainability Committee and the Audit and Risk Committee on a quarterly basis. Reporters have the option to request feedback on reported cases. The whistle-blowing policy encourages reports to be made in good faith in a responsible and ethical manner. Employees are encouraged to first seek resolution of alleged malpractices through discussion with their direct managers, if appropriate, or other management including legal, compliance, human resources or internal audit.
The code of business principles and ethics for employees and directors and the code of ethics for the Chief Executive Officer, Chief Financial Officer and Senior Financial Officers are available on the company’sCompany’s website at
277
ITEM 16C: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Ernst & Young Inc. has served as AngloGold Ashanti’s independent public accountants for each of the financial years in the three-year period ended 31 December 2017,2022, for which audited financial statements appear in this annual report on Form 20-F.
The following table presents the aggregate fees for professional services and other services rendered by Ernst & Young Inc. to AngloGold Ashanti in 20172022 and 2016.2021.
| 2017 | 2016 | 2022 | 2021 | |||||||||||||
| (in millions) | $ | $ | (in millions) | $ | $ | |||||||||||
Audit fees(1) | 6.14 | 5.20 | Audit fees(1) | 6.45 | 5.87 | |||||||||||
Audit-related fees(2) | 0.73 | 0.69 | Audit-related fees(2) | 1.91 | 2.10 | |||||||||||
Tax fees(3) | 0.16 | 0.21 | Tax fees(3) | 0.22 | 0.03 | |||||||||||
All other fees(4) | 0.04 | 0.02 | All other fees(4) | 0.02 | 0.01 | |||||||||||
| Total | 7.07 | 6.12 | Total | 8.60 | 8.01 | |||||||||||
Rounding may result in computational differences.
(1) The Audit fees consist of fees billed for the annual audit services engagement and other audit services, which are those services that only the external auditor reasonably can provide, and include the Company audit; statutory audits; attest services; and assistance with and review of documents filed with the SEC.
(2) Audit-related fees consist of fees billed for assurance and related services.
(3) Tax fees include fees billed for tax advice and tax compliance services.
(4) All other fees include non-audit services.
Audit and Risk Committee Pre-approval Policies and Procedures
It is the policy of AngloGold Ashanti to maintain compliance with the requirements of the various applicable legislation and good governance practices when appointing or assigning work to the Company’s external auditor. Non-audit services may not be undertaken without an employee of AngloGold Ashanti obtaining the pre-approval of the Audit and Risk Committee as is laid out in the procedures relating to the pre-approval process.
The Audit and Risk Committee has delegated the approval authority to the chairman of the committee, Rhidwaan GasantMr. Alan Ferguson or his designated official. The approval may take the form of a written or oral instruction, and in the case of an oral instruction this would be ratified at the next Audit and Risk Committee meeting. On a quarterlyhalf yearly basis a summary of all approvals and work to date is tabled at the Audit and Risk Committee meeting.
All non-audit services provided to AngloGold Ashanti by the principal independent registered public accounting firm during 20172022 were reviewed and approved according to the procedures above. None of the services provided during 20172022 were approved under the de minimis exception allowed under the Exchange Act.
ITEM 16D: EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E: PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Neither the issuer nor any affiliate of the issuer purchased any of the company’sCompany’s shares during 2017.2022.
ITEM 16F: CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT
The reports of EY on the Company’s consolidated financial statements for the past two fiscal years did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. In connection with the audits of the Company’s financial statements for each of the two fiscal years ended 31 December 2022, there were (i) no disagreements with EY, as that term is used in Item 16F(a)(1)(iv) of Form 20-F over any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which, if not resolved to the satisfaction of EY, would have caused EY to make reference to the matter in their report and (ii) there were no “reportable events” as defined in Item 16F(a)(1)(v) of Form 20-F.
278
AngloGold Ashanti has provided EY with a copy of the foregoing disclosure and has requested EY to provide it with a letter addressed to the SEC stating whether or not EY agrees with the above statements. A copy of such letter, dated 17 March 2023, in which EY state they agree with such disclosure, is filed as an exhibit to this annual report on Form 20-F, see “Item 19: Exhibits to the Form 20-F—Exhibit 19.15.9. “Letter from Ernst & Young Inc. to the Securities and Exchange Commission regarding a change in registrant's certifying accountant”.
ITEM 16G: CORPORATE GOVERNANCE
AngloGold Ashanti’s corporate governance practices do notare regulated by the JSE Listings Requirements. The following is a summary of the significant ways in which South Africa’s corporate governance standards which are followed by AngloGold Ashanti differ in any significant way from those followed by US domestic companies under the New York Stock Exchange’s NYSE Listing Standards. At this time, as described further below, AngloGold Ashanti complies with all of the NYSE Listing Standards as well as the JSE Listings Requirements.
The NYSE Listing Standards require that non-management directors of US-listed companies meet at regularly scheduled executive sessions without management. The JSE Listings Requirements do not require such meetings of listed company non-executive directors. However, management is invited to attend the executive section of board meetings.
The NYSE Listing Standards require US-listed companies to have a nominating/corporate governance listing standards.committee composed entirely of independent directors. The JSE Listings Requirements do not require such a committee but AngloGold Ashanti currently has a Nominations and Governance Committee composed of six non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards. The Nominations and Governance Committee is chaired by the Chairperson of the AngloGold Ashanti Board.
The NYSE Listing Standards also require US-listed companies to have a compensation committee composed entirely of independent directors. The JSE Listings Requirements merely require that boards have such a committee but not that its members be independent. AngloGold Ashanti has appointed a Remuneration and Human Resources Committee, currently comprised of four non-executive directors, all of whom are independent under the JSE Listings Requirements and NYSE Listing Standards.
The NYSE Listings Standards require US-listed companies to have an audit committee composed entirely of independent directors. The SA Companies Act requires that the members of the Audit Committee be approved by shareholders on an annual basis at a company’s annual general meeting. Both the SA Companies Act and the JSE Listings Requirements require that the audit committee be composed entirely of independent directors. AngloGold Ashanti has appointed an Audit and Risk Committee, currently comprising three (pending shareholder approval at the 2023 AGM of the appointment of two additional non-executive directors to the Audit and Risk Committee) non-executive directors, all of whom are independent, as defined under the SA Companies Act, the JSE Listings Requirements and the NYSE Listing Standards.
The SA Companies Act and the JSE Listings Requirements require the appointment of a Social and Ethics Committee, and AngloGold Ashanti has appointed a Social, Ethics and Sustainability Committee, comprising independent non-executive directors.
ITEM 16H: MINE SAFETY DISCLOSURE
The information concerning certain mine safety violations or other regulatory matters required pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and this Item 16H of Form 20-F is included in Exhibit 19.16 to this annual report on Form 20-F.
ITEM 16I: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS
Not applicable.
279
PART III
ITEM 17: FINANCIAL STATEMENTS
Not applicable.
280
ITEM 18: FINANCIAL STATEMENTS
The consolidated financial statements for the year ended 31 December 20172022 were authorised for issue by the Board of Directors on 2915 March 20182023 and were signed on its behalf by Srinivasan Venkatakrishnan, Chief Executive Officer, Kandimathie Christine Ramon,Gillan A Doran, Chief Financial Officer, Sipho Pityana, ChairmanMaria DC Ramos, Chairperson of the Board of Directors, and Rhidwaan Gasant, ChairmanAlan Ferguson, Chairperson of the Audit and Risk Committee.
The report of independent registered public accounting firm Ernst & Young Inc. Johannesburg, Republic of South Africa (PCAOB ID # 1698) is included in Item 18.
F - 1
Report of independent registered public accounting firm
To the shareholdersShareholders and the boardBoard of directorsDirectors of AngloGold Ashanti Limited
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of financial position of AngloGold Ashanti Limited (“the Company”)(the Company) as of 31 December 2017, 20162022, 2021 and 2015,2020, the related consolidated statements of income, comprehensive income, cash flows and changes in equity for each of the three years in the period ended 31 December 2017,2022, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, based on our audits and the report of other auditors, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at 31 December 2017, 2016,2022, 2021 and 2015,2020, and the results of its operations and its cash flows for each of the years then ended, in conformity with International Financial Reporting Standards (“IFRS’IFRS”) as Issuedissued by the International Accounting Standards Board.
We did not audit the financial statements of Kibali (Jersey) Limited (“Kibali”)(Kibali), a corporation in which the Company has a 50% interest. In the consolidated financial statements, the Company’s investment in Kibali was stated at $1,423$1,063 million, $1,400$1,604 million and $1,406$1,604 million as of 31 December 2017, 20162022, 2021 and 2015,2020, respectively, and the Company’s equity in the net income of Kibali was stated at $9$153 million in 2017, $242022, $231 million in 20162021 and, $70$238 million in 2015.2020. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Kibali, is based solely on the report of the other auditors.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of 31 December 2017,2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated 2917 March 20182023 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of other auditors provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
F - 2
| Description of the Matter | Geita VAT recoverability | ||||
| As disclosed in Note 20 to the consolidated financial statements, at 31 December 2022, the Company’s Geita mine has recorded $155 million of VAT receivables due from the Tanzanian Revenue Authority (TRA). The VAT input claims and offsets from July 2017 to June 2020 remain disallowed in the current year. In the current year, new correspondence and information was received from the TRA and draft agreements relating to the recovery of the historical VAT claims has been exchanged between The Government of Tanzania and Geita Gold Mine (GGM). Auditing management’s probability weighted discounted model and their expected timing of recovery of these receivables involved significant auditor judgement, including the involvement of our tax specialists, to assess the likelihood of the recovery of the historical VAT claims and related recovery mechanisms in relation to VAT offsetting against taxable income, as well as assessing the impact, if any, of the terms of the draft agreements exchanged with The Government of Tanzania. This is because the timing of VAT offsetting depends on forecasts of Geita’s available taxable income, which includes judgements around Geita’s business plan, VAT claims as a percentage of corporate tax offset, assigned weighting and probability per scenario in the model and the interaction with the timing of the mining license renewal and the end of life of the mine. | |||||
| How We Addressed the Matter in Our Audit | Our procedures to address this matter included, among others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Company’s assessment of tax law and the process to estimate the recoverability of the VAT receivable. We read correspondence between management and the Tanzanian authorities, including correspondence related to the tax returns and assessments received during the period, to evaluate management’s assumptions, primarily related to the expected timing of the VAT recoverability. As part of our audit procedures, we met with management to understand their strategy to resolve the matter and obtain an update on progress made and discussions that took place with the relevant parties during the year. We also assessed whether the draft agreements exchanged with the Government of Tanzania were consistent with management’s stated strategy to fully recover the carrying value of the receivables. We read the external legal counsel opinions obtained by management to support their interpretation of the tax legislation for set-offs, of the manner undertaken or proposed by the Company. We involved our tax professionals to assist us in evaluating the recoverability of the VAT receivable, based on the above correspondence and their interpretation of legislation, including historical payments and offsets received to date, for claims in the period July 2017 to June 2020. We assessed the judgements around the timing of VAT offsetting by comparing the Company’s business plan to historical performance. We also evaluated the reasonableness of the annual percentage of VAT to corporate tax offset and weighted probabilities in the model, by assessing the recoverability of forecast VAT offsets and the discounting calculation performed by management on VAT refunds owing. We evaluated management’s assessment of the various scenarios in the model, by performing a sensitivity analysis, taking into account alternative weighting probability scenarios. We assessed the adequacy of the disclosures in Note 20 in the consolidated financial statements. | ||||
F - 3
| Description of the Matter | Environmental rehabilitation obligations | ||||
| At 31 December 2022, the provision for decommissioning and the provision for restoration in aggregate amounted to $578 million in the consolidated financial statements. The Company incurs obligations to close, restore and rehabilitate its mine sites. Auditing the Group’s rehabilitation and decommissioning provision was complex due to the significance, as well as the high estimation uncertainty, of the provision. The determination of the provision is based on, among other things, judgements and estimates of current damage caused, nature, timing and amount of future costs to be incurred to rehabilitate the mine sites, estimates of future inflation, exchange rates and discount rates. These assumptions are inherently judgemental and subject to change due to continued mining activity and rehabilitation, legislation and environmental changes, which cannot be predicted with certainty and thus requires specific focus each year and the involvement of specialists on our team. The consolidated disclosures are included in Note 1.2 and Note 25 to the consolidated financial statements. | |||||
| How We Addressed the Matter in Our Audit | Our procedures to address this matter included, among others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Group’s process to estimate rehabilitation and decommissioning provisions. For example, we tested controls over the determination of key inputs such as life of mine reserves and production profile, discount rates, inflation and exchange rates, and the nature, amount and timing of future rehabilitation costs. With the support of our valuation specialists, we assessed management’s macro-economic assumptions in their rehabilitation models by comparing them to available market information. The most significant of these macro-economic assumptions were the risk-free interest rates, expected inflation and exchange rates. To assess the rehabilitation models prepared by management, among other procedures, we tested the mathematical accuracy and compared the timing of the expected cash flows with reference to the life of mine plans for the respective mines and compared the current year cash flow assumptions to those of the prior year and considered management’s explanations where these have changed or deviated. We compared the cost rates used by management to publicly available information, as well as ongoing rehabilitation activities undertaken by the Company. With the support of our environmental specialists, we inquired of operational management whether additional environmental damage or changes in the relevant legislation occurred since the prior year that would require additional rehabilitation in the future and compared this information to the current mine plan and the currently applicable legislation. Also, with the support of our environmental specialists, we inspected reports of the Group’s mine closure plans and assessments of the timing and determination of costs to be incurred prepared by management. | ||||
| Description of the Matter | Impairment assessment of AGA Mineração | ||||
As described in Notes 1.2 and 13 to the consolidated financial statements, the Group conducts an impairment test whenever events or changes in circumstances indicate that the carrying amount for a cash generating unit (“CGU”) may not be recoverable. An impairment loss is recognised in the income statement for the amount by which the asset’s carrying amount exceeds its recoverable amount. During the year, the AGA Mineração CGU was disaggregated into two separate CGUs, namely Córrego do Sítio (CdS) and Cuiabá, following management’s reinvestment strategy to assess strategic options for CdS, as a result of the continued underperformance of the CdS complex. Further and in December 2022, processing of gold concentrate at the Queiroz plant which services the Cuiabá mine complex was suspended. These events were impairment indicators, which required the Group to conduct an impairment test on these CGUs. A gross impairment of $189 million for CdS and $70 million for Cuiabá was recorded for the year ended 31 December 2022. Auditing the assessment of the recoverable amount of these CGUs involved significant auditor judgment, since there are a number of forward looking and other assumptions that require significant estimation, including the extent of economic mineral resource and reserve and associated life of mine plans, discount rate, future gold prices, foreign exchange rates and specifically for Cuiaba, the probability weighted discounted cash flows including the period of suspension of operations at the Queiroz plant due to the completion of structural improvements, as well as the application of judgment around the disaggregation of the AGA Mineração CGU into two CGUs. | |||||
F - 4
| How We Addressed the Matter in Our Audit | Our procedures to address this matter included, among others, obtaining an understanding, evaluating the design and testing the operating effectiveness of controls over the Company’s impairment trigger assessment and the preparation, review and approval of the impairment calculation. For example, we evaluated management’s methods, processes and controls determining the carrying values, and the associated recoverable amounts of each CGU. We assessed management’s disaggregation of the CGUs by, among other procedures, reference to whether an active market exists for the output produced by each CGU. With the support of our valuation specialists, we assessed management’s macro-economic assumptions, including future gold prices and foreign exchange rates in their valuation models by comparing them to the latest available market information. We also involved our valuation specialists to evaluate the discount rate, by independently calculating a discount rate range using available market information and comparing to management’s discount rate. In addition, we performed sensitivity analyses to evaluate the impact of reasonably possible changes in the key assumptions including discount rate, future gold prices and for Cuiabá, the impact of delay in the net cash flows due to possible delays in the projected timelines of completion of structural improvements. To assess the cash flow models prepared by management, among other procedures, we tested the mathematical accuracy and compared relevant data therein to historical performance, as well as to the latest long-term business plans used by management to manage and monitor the performance of the CGUs. We compared the production and cost assumptions in the cash flow models to the current approved life of mine plans. To test management’s assessment of the scenarios used in the Cuiaba probability weighted discounted cash flow model, we involved our internal valuation and mining engineer specialists to assess the reasonableness of management’s assumptions. We compared our results to management’s estimated recoverable amounts. We assessed the adequacy of the disclosures in Note 13 in the consolidated financial statements. | ||||
/s/ Ernst & Young Inc.
We have served as the Company’s auditor since 1944
Johannesburg, Republic of South Africa
F - 5
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F - 6
ANGLOGOLD ASHANTI LIMITED
Group – income statement
FOR THE YEARS ENDED December 31, DECEMBER 2017, 20162022, 2021 and 20152020
| Figures in millions | Notes | 2022 | 2021 | 2020 | ||||||||||||||||
Restated (1) | ||||||||||||||||||||
| US Dollars | ||||||||||||||||||||
| Continuing operations | ||||||||||||||||||||
| Revenue from product sales | 3 | 4,501 | 4,029 | 4,595 | ||||||||||||||||
| Cost of sales | 4 | (3,362) | (2,857) | (2,829) | ||||||||||||||||
| (Loss) gain on non-hedge derivatives and other commodity contracts | (6) | — | (19) | |||||||||||||||||
| Gross profit | 2 | 1,133 | 1,172 | 1,747 | ||||||||||||||||
| Corporate administration, marketing and related expenses | (79) | (73) | (68) | |||||||||||||||||
| Exploration and evaluation costs | (205) | (164) | (124) | |||||||||||||||||
| Impairment, derecognition of assets and profit (loss) on disposal | (304) | 11 | (1) | |||||||||||||||||
| Other (expenses) income | 5 | (26) | (136) | (57) | ||||||||||||||||
| Operating profit | 519 | 810 | 1,497 | |||||||||||||||||
| Interest income | 81 | 58 | 27 | |||||||||||||||||
| Dividend received | — | — | 2 | |||||||||||||||||
| Foreign exchange and fair value adjustments | (128) | (43) | — | |||||||||||||||||
| Finance costs and unwinding of obligations | 6 | (149) | (116) | (177) | ||||||||||||||||
| Share of associates and joint ventures’ profit | 7 | 166 | 249 | 278 | ||||||||||||||||
| Profit before taxation | 489 | 958 | 1,627 | |||||||||||||||||
| Taxation | 10 | (173) | (312) | (625) | ||||||||||||||||
| Profit after taxation from continuing operations | 316 | 646 | 1,002 | |||||||||||||||||
| Discontinued operations | ||||||||||||||||||||
| Profit (loss) from discontinued operations | — | — | 7 | |||||||||||||||||
| Profit (loss) for the year | 316 | 646 | 1,009 | |||||||||||||||||
| Allocated as follows: | ||||||||||||||||||||
| Equity shareholders | ||||||||||||||||||||
| - Continuing operations | 297 | 622 | 984 | |||||||||||||||||
| - Discontinued operations | — | — | 7 | |||||||||||||||||
| Non-controlling interests | ||||||||||||||||||||
| - Continuing operations | 19 | 24 | 18 | |||||||||||||||||
| 316 | 646 | 1,009 | ||||||||||||||||||
| Basic earnings (loss) per ordinary share (cents) | 11 | 71 | 148 | 236 | ||||||||||||||||
| Earnings per ordinary share from continuing operations | 71 | 148 | 234 | |||||||||||||||||
| Earnings (loss) per ordinary share from discontinued operations | — | — | 2 | |||||||||||||||||
| Diluted earnings (loss) per ordinary share (cents) | 11 | 71 | 148 | 236 | ||||||||||||||||
| Earnings per ordinary share from continuing operations | 71 | 148 | 234 | |||||||||||||||||
| Earnings (loss) per ordinary share from discontinued operations | — | — | 2 | |||||||||||||||||
(1) Comparative periods have been retrospectively restated, where indicated, due to the initial application of the amendment to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" on 1 January 2022. Refer to note 1.
F - 7
| Figures in millions | Notes | 2017 | 2016 | 2015 | |||||
| US Dollars | |||||||||
| Revenue | 3 | 4,543 | 4,254 | 4,174 | |||||
| Gold income | 2,3 | 4,356 | 4,085 | 4,015 | |||||
| Cost of sales | 4 | (3,582 | ) | (3,263 | ) | (3,294 | ) | ||
| Gain (loss) on non-hedge derivatives and other commodity contracts | 10 | 19 | (7 | ) | |||||
| Gross profit (loss) | 2 | 784 | 841 | 714 | |||||
| Corporate administration, marketing and other expenses | (64 | ) | (61 | ) | (78 | ) | |||
| Exploration and evaluation costs | (114 | ) | (133 | ) | (132 | ) | |||
| Other operating expenses | 5 | (88 | ) | (110 | ) | (96 | ) | ||
| Special items | 6 | (438 | ) | (42 | ) | (71 | ) | ||
| Operating profit (loss) | 80 | 495 | 337 | ||||||
| Interest received | 3 | 15 | 22 | 28 | |||||
| Exchange gain (loss) | (11 | ) | (88 | ) | (17 | ) | |||
| Finance costs and unwinding of obligations | 7 | (169 | ) | (180 | ) | (245 | ) | ||
| Fair value adjustment on issued bonds | — | 9 | 66 | ||||||
| Share of associates and joint ventures’ profit (loss) | 8 | 22 | 11 | 88 | |||||
| Profit (loss) before taxation | (63 | ) | 269 | 257 | |||||
| Taxation | 11 | (108 | ) | (189 | ) | (211 | ) | ||
| Profit (loss) after taxation from continuing operations | (171 | ) | 80 | 46 | |||||
| Discontinued operations | |||||||||
| Profit (loss) from discontinued operations | — | — | (116 | ) | |||||
| Profit (loss) for the year | (171 | ) | 80 | (70 | ) | ||||
| Allocated as follows: | |||||||||
| Equity shareholders | |||||||||
| - Continuing operations | (191 | ) | 63 | 31 | |||||
| - Discontinued operations | — | — | (116 | ) | |||||
| Non-controlling interests | |||||||||
| - Continuing operations | 20 | 17 | 15 | ||||||
| (171 | ) | 80 | (70 | ) | |||||
| Basic earnings (loss) per ordinary share (cents) | 12 | ||||||||
| Earnings (loss) per ordinary share from continuing operations | (46 | ) | 15 | 8 | |||||
| Earnings (loss) per ordinary share from discontinued operations | — | — | (28 | ) | |||||
| Basic earnings (loss) per ordinary share | (46 | ) | 15 | (20 | ) | ||||
| Diluted earnings (loss) per ordinary share (cents) | 12 | ||||||||
| Earnings (loss) per ordinary share from continuing operations | (46 | ) | 15 | 8 | |||||
| Earnings (loss) earnings per ordinary share from discontinued operations | — | — | (28 | ) | |||||
| Diluted earnings (loss) per ordinary share | (46 | ) | 15 | (20 | ) | ||||
ANGLOGOLD ASHANTI LIMITED
Group – statement of comprehensive income
FOR THE YEARS ENDED December 31, DECEMBER 2017, 20162022, 2021 and 20152020
| Figures in millions | 2022 | 2021 | 2020 | |||||||||||||||||
Restated (1) | ||||||||||||||||||||
| US Dollars | ||||||||||||||||||||
| Profit (loss) for the year | 316 | 646 | 1,009 | |||||||||||||||||
| Items that will be reclassified subsequently to profit or loss: | (27) | (22) | 38 | |||||||||||||||||
| Exchange differences on translation of foreign operations | (27) | (22) | 38 | |||||||||||||||||
| Items that will not be reclassified subsequently to profit or loss: | (47) | (83) | 86 | |||||||||||||||||
| Exchange differences on translation of non-foreign operations | (1) | (3) | (16) | |||||||||||||||||
| Net (loss) gain on equity investments | (50) | (73) | 98 | |||||||||||||||||
| Actuarial (loss) gain recognised | (10) | (1) | 10 | |||||||||||||||||
| Deferred taxation thereon | 14 | (6) | (6) | |||||||||||||||||
| Other comprehensive (loss) income for the year, net of tax | (74) | (105) | 124 | |||||||||||||||||
| Total comprehensive income for the year, net of tax | 242 | 541 | 1,133 | |||||||||||||||||
| Allocated as follows: | ||||||||||||||||||||
| Equity shareholders | ||||||||||||||||||||
| - Continuing operations | 223 | 517 | 1,159 | |||||||||||||||||
| - Discontinued operations | — | — | (44) | |||||||||||||||||
| Non-controlling interests | ||||||||||||||||||||
| - Continuing operations | 19 | 24 | 18 | |||||||||||||||||
| 242 | 541 | 1,133 | ||||||||||||||||||
(1) Comparative periods have been retrospectively restated, where indicated, due to the initial application of the amendment to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" on 1 January 2022. Refer to note 1.
F - 8
| Figures in millions | 2017 | 2016 | 2015 | |||||||
| US Dollars | ||||||||||
| Profit (loss) for the year | (171 | ) | 80 | (70 | ) | |||||
| Items that will be reclassified subsequently to profit or loss: | ||||||||||
| Exchange differences on translation of foreign operations | 123 | 180 | (371 | ) | ||||||
| Share of associates and joint ventures’ other comprehensive income | — | — | 1 | |||||||
| Net gain (loss) on available-for-sale financial assets | 20 | 13 | (14 | ) | ||||||
| Release on impairment of available-for-sale financial assets | 3 | — | 9 | |||||||
| Release on disposal of available-for-sale financial assets | (6 | ) | (2 | ) | (3 | ) | ||||
| Deferred taxation thereon | 8 | (2 | ) | 1 | ||||||
| 25 | 9 | (7 | ) | |||||||
| Items that will not be reclassified subsequently to profit or loss: | ||||||||||
| Actuarial gain (loss) recognised | 8 | (2 | ) | 17 | ||||||
| Deferred taxation thereon | (2 | ) | — | (3 | ) | |||||
| 6 | (2 | ) | 14 | |||||||
| Other comprehensive income (loss) for the year, net of tax | 154 | 187 | (363 | ) | ||||||
| Total comprehensive income (loss) for the year, net of tax | (17 | ) | 267 | (433 | ) | |||||
| Allocated as follows: | ||||||||||
| Equity shareholders | ||||||||||
| - Continuing operations | (37 | ) | 250 | (332 | ) | |||||
| - Discontinued operations | — | — | (116 | ) | ||||||
| Non-controlling interests | ||||||||||
| - Continuing operations | 20 | 17 | 15 | |||||||
| (17 | ) | 267 | (433 | ) | ||||||
ANGLOGOLD ASHANTI LIMITED
Group – statement of financial position
AS AT December 31, DECEMBER 2017, 20162022, 2021 and 20152020
| Figures in millions | Notes | 2022 | 2021 | 2020 | ||||||||||||||||
Restated (1) | Restated (1) | |||||||||||||||||||
| US Dollars | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||
| Tangible assets | 13 | 4,209 | 3,493 | 2,917 | ||||||||||||||||
| Right of use assets | 14 | 156 | 175 | 142 | ||||||||||||||||
| Intangible assets | 15 | 106 | 122 | 131 | ||||||||||||||||
| Investments in associates and joint ventures | 17 | 1,100 | 1,647 | 1,651 | ||||||||||||||||
| Other investments | 18 | 3 | 117 | 188 | ||||||||||||||||
| Inventories | 19 | 5 | 27 | 69 | ||||||||||||||||
| Trade, other receivables and other assets | 20 | 231 | 237 | 235 | ||||||||||||||||
| Reimbursive right for post-retirement benefits | 26 | 12 | — | — | ||||||||||||||||
| Deferred taxation | 27 | 72 | 7 | 7 | ||||||||||||||||
| Cash restricted for use | 21 | 33 | 32 | 31 | ||||||||||||||||
| 5,927 | 5,857 | 5,371 | ||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Inventories | 19 | 773 | 703 | 733 | ||||||||||||||||
| Trade, other receivables and other assets | 20 | 237 | 260 | 229 | ||||||||||||||||
| Cash restricted for use | 21 | 27 | 26 | 42 | ||||||||||||||||
| Cash and cash equivalents | 22 | 1,108 | 1,154 | 1,330 | ||||||||||||||||
| 2,145 | 2,143 | 2,334 | ||||||||||||||||||
| Total assets | 8,072 | 8,000 | 7,705 | |||||||||||||||||
| EQUITY AND LIABILITIES | ||||||||||||||||||||
| Share capital and premium | 23 | 7,239 | 7,223 | 7,214 | ||||||||||||||||
| Accumulated losses and other reserves | (3,139) | (3,181) | (3,486) | |||||||||||||||||
| Shareholders’ equity | 4,100 | 4,042 | 3,728 | |||||||||||||||||
| Non-controlling interests | 34 | 52 | 45 | |||||||||||||||||
| Total equity | 4,134 | 4,094 | 3,773 | |||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||
| Borrowings | 24 | 1,965 | 1,858 | 1,789 | ||||||||||||||||
| Lease liabilities | 14 | 102 | 124 | 116 | ||||||||||||||||
| Environmental rehabilitation and other provisions | 25 | 634 | 729 | 731 | ||||||||||||||||
| Provision for pension and post-retirement benefits | 26 | 71 | 77 | 83 | ||||||||||||||||
| Trade, other payables and provisions | 28 | 7 | 7 | 8 | ||||||||||||||||
| Deferred taxation | 27 | 300 | 313 | 246 | ||||||||||||||||
| 3,079 | 3,108 | 2,973 | ||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Borrowings | 24 | 18 | 51 | 142 | ||||||||||||||||
| Lease liabilities | 14 | 84 | 61 | 37 | ||||||||||||||||
| Trade, other payables and provisions | 28 | 710 | 647 | 627 | ||||||||||||||||
| Bank overdraft | 2 | — | — | |||||||||||||||||
| Taxation | 29 | 45 | 39 | 153 | ||||||||||||||||
| 859 | 798 | 959 | ||||||||||||||||||
| Total liabilities | 3,938 | 3,906 | 3,932 | |||||||||||||||||
| Total equity and liabilities | 8,072 | 8,000 | 7,705 | |||||||||||||||||
(1) The tangible assets and accumulated losses and other reserve balances for 31 December 2021 and 31 December 2020 have been retrospectively restated and increased with $33m due to the initial application of the amendment to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” on 1 January 2022. Refer to note 1.
F - 9
| Figures in millions | Notes | 2017 | 2016 | 2015 | |||||
| US Dollars | |||||||||
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Tangible assets | 14 | 3,742 | 4,111 | 4,058 | |||||
| Intangible assets | 15 | 138 | 145 | 161 | |||||
| Investments in associates and joint ventures | 17 | 1,507 | 1,448 | 1,465 | |||||
| Other investments | 18 | 131 | 125 | 91 | |||||
| Inventories | 19 | 100 | 84 | 90 | |||||
| Trade, other receivables and other assets | 20 | 67 | 34 | 13 | |||||
| Deferred taxation | 28 | 4 | 4 | 1 | |||||
| Cash restricted for use | 21 | 37 | 36 | 37 | |||||
| Other non-current assets | — | — | 18 | ||||||
| 5,726 | 5,987 | 5,934 | |||||||
| Current assets | |||||||||
| Other investments | 18 | 7 | 5 | 1 | |||||
| Inventories | 19 | 683 | 672 | 646 | |||||
| Trade, other receivables and other assets | 20 | 222 | 255 | 196 | |||||
| Cash restricted for use | 21 | 28 | 19 | 23 | |||||
| Cash and cash equivalents | 22 | 205 | 215 | 484 | |||||
| 1,145 | 1,166 | 1,350 | |||||||
| Non-current assets held for sale | 23 | 348 | — | — | |||||
| 1,493 | 1,166 | 1,350 | |||||||
| Total assets | 7,219 | 7,153 | 7,284 | ||||||
| EQUITY AND LIABILITIES | |||||||||
| Share capital and premium | 24 | 7,134 | 7,108 | 7,066 | |||||
| Accumulated losses and other reserves | (4,471 | ) | (4,393 | ) | (4,636 | ) | |||
| Shareholders’ equity | 2,663 | 2,715 | 2,430 | ||||||
| Non-controlling interests | 41 | 39 | 37 | ||||||
| Total equity | 2,704 | 2,754 | 2,467 | ||||||
| Non-current liabilities | |||||||||
| Borrowings | 25 | 2,230 | 2,144 | 2,637 | |||||
| Environmental rehabilitation and other provisions | 26 | 942 | 877 | 847 | |||||
| Provision for pension and post-retirement benefits | 27 | 122 | 118 | 107 | |||||
| Trade, other payables and deferred income | 29 | 3 | 4 | 5 | |||||
| Deferred taxation | 28 | 363 | 496 | 514 | |||||
| 3,660 | 3,639 | 4,110 | |||||||
| Current liabilities | |||||||||
| Borrowings | 25 | 38 | 34 | 100 | |||||
| Trade, other payables and deferred income | 29 | 638 | 615 | 516 | |||||
| Taxation | 30 | 53 | 111 | 91 | |||||
| 729 | 760 | 707 | |||||||
| Non-current liabilities held for sale | 23 | 126 | — | — | |||||
| 855 | 760 | 707 | |||||||
| Total liabilities | 4,515 | 4,399 | 4,817 | ||||||
| Total equity and liabilities | 7,219 | 7,153 | 7,284 | ||||||
ANGLOGOLD ASHANTI LIMITED
Group – statement of cash flows
FOR THE YEARS ENDED December 31, 2022, 2021 and 2020
| Figures in millions | Notes | 2022 | 2021 | 2020 | ||||||||||||||||
Restated (1) | ||||||||||||||||||||
| US Dollars | ||||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Receipts from customers | 4,517 | 4,054 | 4,580 | |||||||||||||||||
| Payments to suppliers and employees | (3,273) | (2,701) | (2,714) | |||||||||||||||||
| Cash generated from operations | 30 | 1,244 | 1,353 | 1,866 | ||||||||||||||||
| Dividends received from joint ventures | 694 | 231�� | 148 | |||||||||||||||||
| Taxation refund | 29 | 32 | 20 | — | ||||||||||||||||
| Taxation paid | 29 | (166) | (336) | (431) | ||||||||||||||||
| Net cash inflow (outflow) from operating activities from continuing operations | 1,804 | 1,268 | 1,583 | |||||||||||||||||
| Net cash inflow (outflow) from operating activities from discontinued operations | — | — | 109 | |||||||||||||||||
| Net cash inflow (outflow) from operating activities | 1,804 | 1,268 | 1,692 | |||||||||||||||||
| Cash flows from investing activities | ||||||||||||||||||||
| Capital expenditure | ||||||||||||||||||||
| - project capital | 13 | (378) | (392) | (369) | ||||||||||||||||
| - stay-in-business capital | 13 | (650) | (635) | (370) | ||||||||||||||||
| Interest capitalised and paid | (2) | (14) | (17) | |||||||||||||||||
| Acquisition of assets | 13 | (517) | — | — | ||||||||||||||||
| Acquisition of intangible assets | — | (1) | (1) | |||||||||||||||||
| Dividends from associates and other investments | 18 | 22 | 9 | |||||||||||||||||
| Proceeds from disposal of tangible assets | 8 | 25 | 3 | |||||||||||||||||
| Other investments and assets acquired | (16) | (4) | (8) | |||||||||||||||||
| Proceeds from disposal of other investments | — | — | 9 | |||||||||||||||||
| Proceeds from disposal of joint ventures | — | 2 | 26 | |||||||||||||||||
| Loans advanced | (1) | (15) | — | |||||||||||||||||
| Loans repaid by associates and joint ventures | — | — | 12 | |||||||||||||||||
| Recognition of joint operation - cash | — | — | 2 | |||||||||||||||||
| Proceeds from disposal of discontinued assets and subsidiaries | — | — | 200 | |||||||||||||||||
| Decrease (increase) in cash restricted for use | (4) | 14 | (9) | |||||||||||||||||
| Interest received | 81 | 58 | 27 | |||||||||||||||||
| Net cash inflow (outflow) from investing activities from continuing operations | (1,461) | (940) | (486) | |||||||||||||||||
| Net cash outflow from investing activities from discontinued operations | — | — | (31) | |||||||||||||||||
| Cash in subsidiaries sold and transferred to held for sale | — | — | 3 | |||||||||||||||||
| Net cash inflow (outflow) from investing activities | (1,461) | (940) | (514) | |||||||||||||||||
| Cash flows from financing activities | ||||||||||||||||||||
| Proceeds from borrowings | 24 | 266 | 822 | 2,226 | ||||||||||||||||
| Repayment of borrowings | 24 | (184) | (820) | (2,310) | ||||||||||||||||
| Repayment of lease liabilities | 14 | (82) | (63) | (47) | ||||||||||||||||
| Finance costs - borrowings | 24 | (99) | (111) | (110) | ||||||||||||||||
| Finance costs - leases | 14 | (10) | (9) | (8) | ||||||||||||||||
| Other borrowing costs | (11) | (35) | (33) | |||||||||||||||||
| Dividends paid | (203) | (240) | (47) | |||||||||||||||||
| Net cash outflow from financing activities from continuing operations | (323) | (456) | (329) | |||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 20 | (128) | 849 | |||||||||||||||||
| Translation | (68) | (48) | 25 | |||||||||||||||||
| Cash and cash equivalents at beginning of year | 1,154 | 1,330 | 456 | |||||||||||||||||
Cash and cash equivalents at end of year (2) | 22 | 1,106 | 1,154 | 1,330 | ||||||||||||||||
(1) Comparative periods have been retrospectively restated, where indicated, due to the initial application of the amendment to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" on 1 January 2022. Refer to note 1.
(2) Cash and cash equivalents at the end of December 2017, 2016 and 20152022 is net of a bank overdraft of $2m.
F - 10
| Figures in millions | Notes | 2017 | 2016 | 2015 | |||||
| US Dollars | |||||||||
| Cash flows from operating activities | |||||||||
| Receipts from customers | 4,534 | 4,231 | 4,154 | ||||||
| Payments to suppliers and employees | (3,383 | ) | (2,929 | ) | (2,904 | ) | |||
| Cash generated from operations | 31 | 1,151 | 1,302 | 1,250 | |||||
| Dividends received from joint ventures | 6 | 37 | 57 | ||||||
| Taxation refund | 30 | 14 | 12 | 21 | |||||
| Taxation paid | 30 | (174 | ) | (165 | ) | (184 | ) | ||
| Net cash inflow (outflow) from operating activities from continuing operations | 997 | 1,186 | 1,144 | ||||||
| Net cash inflow (outflow) from operating activities from discontinued operations | — | — | (5 | ) | |||||
| Net cash inflow (outflow) from operating activities | 997 | 1,186 | 1,139 | ||||||
| Cash flows from investing activities | |||||||||
| Capital expenditure | |||||||||
| - project capital | (156 | ) | (93 | ) | (105 | ) | |||
| - stay-in-business capital | (673 | ) | (613 | ) | (559 | ) | |||
| Expenditure on intangible assets | (1 | ) | (5 | ) | (3 | ) | |||
| Proceeds from disposal of tangible assets | 7 | 4 | 6 | ||||||
| Other investments acquired | (91 | ) | (73 | ) | (86 | ) | |||
| Proceeds from disposal of other investments | 78 | 61 | 81 | ||||||
| Investments in associates and joint ventures | (27 | ) | (11 | ) | (11 | ) | |||
| Proceeds from disposal of associates and joint ventures | — | 10 | 1 | ||||||
| Loans advanced to associates and joint ventures | (6 | ) | (4 | ) | (5 | ) | |||
| Loans repaid by associates and joint ventures | — | — | 2 | ||||||
| Proceeds from disposal of business and subsidiary | — | — | 819 | ||||||
| Costs on disposal of business | — | — | (7 | ) | |||||
| Cash balances in assets disposed | — | — | (2 | ) | |||||
| Decrease (increase) in cash restricted for use | (8 | ) | 8 | (17 | ) | ||||
| Interest received | 15 | 14 | 25 | ||||||
| Net cash inflow (outflow) from investing activities from continuing operations | (862 | ) | (702 | ) | 139 | ||||
| Net cash inflow (outflow) from investing activities from discontinued operations | — | — | (59 | ) | |||||
| Net cash inflow (outflow) from investing activities | (862 | ) | (702 | ) | 80 | ||||
| Cash flows from financing activities | |||||||||
| Proceeds from borrowings | 815 | 787 | 421 | ||||||
| Repayment of borrowings | (767 | ) | (1,333 | ) | (1,288 | ) | |||
| Finance costs paid | (138 | ) | (172 | ) | (251 | ) | |||
| Bond settlement premium, RCF and bond transaction costs | — | (30 | ) | (61 | ) | ||||
| Dividends paid | (58 | ) | (15 | ) | (5 | ) | |||
| Net cash inflow (outflow) from financing activities from continuing operations | (148 | ) | (763 | ) | (1,184 | ) | |||
| Net cash inflow (outflow) from financing activities from discontinued operations | — | — | (2 | ) | |||||
| Net cash inflow (outflow) from financing activities | (148 | ) | (763 | ) | (1,186 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (13 | ) | (279 | ) | 33 | ||||
| Translation | 3 | 10 | (17 | ) | |||||
| Cash and cash equivalents at beginning of year | 215 | 484 | 468 | ||||||
| Cash and cash equivalents at end of year | 22 | 205 | 215 | 484 | |||||
ANGLOGOLD ASHANTI LIMITED
Group – statement of changes in equity
FOR THE YEARS ENDED December 31, December 2017, 20162022, 2021 and 20152020
| Equity holders of the parent | ||||||||||||||||||||||||||||||||
| Figures in millions | Share capital and premium | Other capital reserves(2) | Retained earnings (Accumulated losses)(1) | Fair value through OCI | Actuarial gains (losses) | Foreign currency translation reserve (3) | Total | Non- controlling interests | Total equity | |||||||||||||||||||||||
| US Dollars | ||||||||||||||||||||||||||||||||
| Balance at 31 December 2019 Restated | 7,199 | 83 | (3,273) | 45 | (10) | (1,409) | 2,635 | 36 | 2,671 | |||||||||||||||||||||||
| Profit (loss) for the year | — | — | 991 | — | — | — | 991 | 18 | 1,009 | |||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | 92 | 10 | 22 | 124 | — | 124 | |||||||||||||||||||||||
| Total comprehensive income (loss) | — | — | 991 | 92 | 10 | 22 | 1,115 | 18 | 1,133 | |||||||||||||||||||||||
| Shares issued | 15 | — | — | — | — | — | 15 | — | 15 | |||||||||||||||||||||||
| Share-based payment for share awards net of exercised | — | (3) | — | — | — | — | (3) | — | (3) | |||||||||||||||||||||||
| Dividends paid (note 12) | — | — | (38) | — | — | — | (38) | — | (38) | |||||||||||||||||||||||
| Dividends of subsidiaries | — | — | — | — | — | — | — | (9) | (9) | |||||||||||||||||||||||
| Recognition of joint operation | 4 | 4 | 4 | |||||||||||||||||||||||||||||
| Transfer on disposal and derecognition of equity investments | — | — | 6 | (6) | — | — | — | — | — | |||||||||||||||||||||||
| Translation | — | (3) | 2 | — | 1 | — | — | — | — | |||||||||||||||||||||||
| Balance at 31 December 2020 Restated | 7,214 | 77 | (2,308) | 131 | 1 | (1,387) | 3,728 | 45 | 3,773 | |||||||||||||||||||||||
| Profit (loss) for the year | — | — | 622 | — | — | — | 622 | 24 | 646 | |||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | (78) | (2) | (25) | (105) | — | (105) | |||||||||||||||||||||||
| Total comprehensive income (loss) | — | — | 622 | (78) | (2) | (25) | 517 | 24 | 541 | |||||||||||||||||||||||
| Shares issued | 9 | — | — | — | — | — | 9 | — | 9 | |||||||||||||||||||||||
| Share-based payment for share awards net of exercised | — | 11 | — | — | — | — | 11 | — | 11 | |||||||||||||||||||||||
| Dividends paid (note 12) | — | — | (224) | — | — | — | (224) | — | (224) | |||||||||||||||||||||||
| Dividends of subsidiaries | — | — | — | — | — | — | — | (16) | (16) | |||||||||||||||||||||||
| Translation | — | (4) | 6 | — | (1) | — | 1 | (1) | — | |||||||||||||||||||||||
| Balance at 31 December 2021 Restated | 7,223 | 84 | (1,904) | 53 | (2) | (1,412) | 4,042 | 52 | 4,094 | |||||||||||||||||||||||
| Profit (loss) for the year | 297 | 297 | 19 | 316 | ||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (36) | (10) | (28) | (74) | (74) | |||||||||||||||||||||||||||
| Total comprehensive income (loss) | — | — | 297 | (36) | (10) | (28) | 223 | 19 | 242 | |||||||||||||||||||||||
| Shares issued | 16 | 16 | 16 | |||||||||||||||||||||||||||||
| Dividends paid (note 12) | — | — | (181) | — | — | — | (181) | — | (181) | |||||||||||||||||||||||
| Dividends of subsidiaries | — | — | — | — | — | — | (37) | (37) | ||||||||||||||||||||||||
| Transfer on derecognition of equity investment | — | — | 69 | (69) | — | — | — | — | — | |||||||||||||||||||||||
| Translation | — | (3) | 4 | — | (1) | — | — | — | — | |||||||||||||||||||||||
| Balance at 31 December 2022 | 7,239 | 81 | (1,715) | (52) | (13) | (1,440) | 4,100 | 34 | 4,134 | |||||||||||||||||||||||
(1)The (Accumulated losses) Retained earnings balances have been restated, where indicated, due to the initial application of the amendment to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” on 1 January 2022. Refer to note 1.
(2)Other capital reserves include a surplus on disposal of Company shares held by companies prior to the formation of AngloGold Ashanti Limited of $8m (2021: $9m; 2020: $10m), surplus on equity transaction of joint venture of $36m (2021: $36m; 2020: $36m), equity items for share-based payments of $39m (2021: $41m; 2020: $33m) and other reserves.
(3) Foreign currency translation reserve includes a loss of $1,400m (2021: $1,399m; 2020: $1,396m) that will not re-cycle through the Income statement on disposal of the non-foreign operations, and a loss of $40m (2021: $13m: 2020: $9m gain) relating to the foreign operations that will re-cycle through the Income statement on disposal.
| Equity holders of the parent | ||||||||||||||||||||
| Figures in millions | Share capital and premium | Other capital reserves(1) | Retained earnings (Accumulated losses)(2) | Cash flow hedge reserve(3) | Available- for-sale reserve(4) | Actuarial gains (losses) | Foreign currency translation reserve | Total | Non- controlling interests | Total equity | ||||||||||
| US Dollars | ||||||||||||||||||||
| Balance at 31 December 2014 | 7,041 | 132 | (3,109 | ) | (1 | ) | 17 | (40 | ) | (1,195 | ) | 2,845 | 26 | 2,871 | ||||||
| Profit (loss) for the year | (85 | ) | (85 | ) | 15 | (70 | ) | |||||||||||||
| Other comprehensive income (loss) | 1 | (7 | ) | 14 | (371 | ) | (363 | ) | (363 | ) | ||||||||||
| Total comprehensive income (loss) | — | 1 | (85 | ) | — | (7 | ) | 14 | (371 | ) | (448 | ) | 15 | (433 | ) | |||||
| Shares issued | 25 | 25 | 25 | |||||||||||||||||
| Share-based payment for share awards net of exercised | 8 | 8 | 8 | |||||||||||||||||
| Dividends of subsidiaries | — | (4 | ) | (4 | ) | |||||||||||||||
| Translation | (24 | ) | 20 | (3 | ) | 7 | — | — | ||||||||||||
| Balance at 31 December 2015 | 7,066 | 117 | (3,174 | ) | (1 | ) | 7 | (19 | ) | (1,566 | ) | 2,430 | 37 | 2,467 | ||||||
| Profit (loss) for the year | 63 | 63 | 17 | 80 | ||||||||||||||||
| Other comprehensive income (loss) | 9 | (2 | ) | 180 | 187 | 187 | ||||||||||||||
| Total comprehensive income (loss) | — | — | 63 | — | 9 | (2 | ) | 180 | 250 | 17 | 267 | |||||||||
| Shares issued | 42 | 42 | 42 | |||||||||||||||||
| Share-based payment for share awards net of exercised | (7 | ) | (7 | ) | (7 | ) | ||||||||||||||
| Dividends of subsidiaries | — | (15 | ) | (15 | ) | |||||||||||||||
| Transfer to reserves | (2 | ) | 2 | — | — | |||||||||||||||
| Translation | 7 | (6 | ) | 1 | (2 | ) | — | — | ||||||||||||
| Balance at 31 December 2016 | 7,108 | 117 | (3,119 | ) | (1 | ) | 17 | (21 | ) | (1,386 | ) | 2,715 | 39 | 2,754 | ||||||
| Profit (loss) for the year | (191 | ) | (191 | ) | 20 | (171 | ) | |||||||||||||
| Other comprehensive income (loss) | 25 | 6 | 123 | 154 | 154 | |||||||||||||||
| Total comprehensive income (loss) | — | — | (191 | ) | — | 25 | 6 | 123 | (37 | ) | 20 | (17 | ) | |||||||
| Shares issued | 26 | 26 | 26 | |||||||||||||||||
| Share-based payment for share awards net of exercised | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||
| Dividends paid (note 13) | (39 | ) | (39 | ) | (39 | ) | ||||||||||||||
| Dividends of subsidiaries | — | (19 | ) | (19 | ) | |||||||||||||||
| Translation | 9 | (10 | ) | 1 | (1 | ) | (1 | ) | 1 | — | ||||||||||
| Balance at 31 December 2017 | 7,134 | 125 | (3,359 | ) | (1 | ) | 43 | (16 | ) | (1,263 | ) | 2,663 | 41 | 2,704 | ||||||
F - 11
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ANGLOGOLD ASHANTI LIMITED
Notes to the consolidated financial statements
FOR THE YEARS ENDED 31 December, 2017, 20162022, 2021 and 20152020
1 ACCOUNTING POLICIESSTATEMENT OF COMPLIANCE
The consolidated and company financial statements are prepared in compliance with International Financial Reporting Standards (IFRS) and Interpretations of those standards, as issued by the International Accounting Standards Board (IASB) in the English language, the South African Institute of Chartered Accountants, SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, JSE Listings Requirements and in the manner required by the South African Companies Act, 2008.
The following amendments to affectIFRS were effective for the financial reporting in future years. We have identified that IFRS 15 “Revenuefirst time from Contracts with Customers” and IFRS 9 “Financial Instruments”, both of which have an effective date of 1 January 2018, are likely2022:
•Amendments to affect future financial reporting.IAS 16 ‘Property, plant and equipment’ relating to proceeds before intended use;
The adoption of the amendment on 1 January 2022 resulted in a retrospective increase in property, plant and concluded that the group does not sell product based on multiple-element arrangementsequipment and it does not sell product on a provisional or variable pricing basis and as such the new standard does not have a significantgross profit of $38m for 31 December 2020 (2019: decrease of $5m). There was no impact on the timing or amount2021 results as no revenue was capitalised in 2021. The effects of the group’s2019 and 2020 restatement has been included in the accumulated losses opening balance of the 2020 and 2021 financial reporting period respectively. The impact arises from the reclassification of revenue, recognition. However,cost of sales, and tangible assets and the resulting amortisation recalculation, resulting exclusively from the redevelopment of the Obuasi mine. No other operation was impacted by the adoption of IFRS 15 will result in the presentation of by-product revenue in Revenue from product sales where previously by-product revenue was included in cost of sales. Revenue from product sales includes gold income and by-product revenue. This change in classification results in a corresponding increase in costs of sales, and therefore will not have an impact on previously reported gross profit.amendment
F - 12
| U S Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Revenue | 4,543 | 4,254 | 4,174 | |||||
| Gold income | 4,356 | 4,085 | 4,015 | |||||
| Cost of sales | (3,582 | ) | (3,263 | ) | (3,294 | ) | ||
| Gain (loss) on non-hedge derivatives and other commodity contracts | 10 | 19 | (7 | ) | ||||
| Gross profit | 784 | 841 | 714 | |||||
| Gross profit % | 18.00 | % | 20.59 | % | 17.78 | % | ||
| U S Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Revenue | 4,543 | 4,254 | 4,174 | |||||
| Revenue from product sales | 4,510 | 4,223 | 4,142 | |||||
| Cost of sales | (3,736 | ) | (3,401 | ) | (3,421 | ) | ||
| Gain (loss) on non-hedge derivatives and other commodity contracts | 10 | 19 | (7 | ) | ||||
| Gross profit | 784 | 841 | 714 | |||||
| Gross profit % | 17.38 | % | 19.91 | % | 17.24 | % | ||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
| 2021 | 2020 | |||||||||||||||||||
| US Dollar million | As previously reported | Adjustments | Restated | As previously reported | Adjustments | Restated | ||||||||||||||
| Statement of financial position | ||||||||||||||||||||
| Tangible assets (note 13) | 3,460 | 33 | 3,493 | 2,884 | 33 | 2,917 | ||||||||||||||
| (Accumulated losses) and other reserves | (3,214) | 33 | (3,181) | (3,519) | 33 | (3,486) | ||||||||||||||
| Income statement | ||||||||||||||||||||
| Revenue from product sales (note 3) | 4,029 | — | 4,029 | 4,427 | 168 | 4,595 | ||||||||||||||
| Cost of sales (note 4) | (2,857) | — | (2,857) | (2,699) | (130) | (2,829) | ||||||||||||||
| Gross profit | 1,172 | — | 1,172 | 1,709 | 38 | 1,747 | ||||||||||||||
| Operating profit | 810 | — | 810 | 1,459 | 38 | 1,497 | ||||||||||||||
| Profit before taxation | 958 | — | 958 | 1,589 | 38 | 1,627 | ||||||||||||||
| Profit after taxation from continuing operations | 646 | — | 646 | 964 | 38 | 1,002 | ||||||||||||||
| Profit for the year | 646 | — | 646 | 971 | 38 | 1,009 | ||||||||||||||
Basic earnings per ordinary share (US cents) (1) (note 11) | 148 | — | 148 | 227 | 9 | 236 | ||||||||||||||
| Basic earnings per ordinary share (US cents) from continuing operations (note 11) | 148 | — | 148 | 225 | 9 | 234 | ||||||||||||||
Diluted earnings per ordinary share (US cents) (1) (note 11) | 148 | — | 148 | 227 | 9 | 236 | ||||||||||||||
Diluted earnings per ordinary share (US cents) from continuing operations (note 11) | 148 | — | 148 | 225 | 9 | 234 | ||||||||||||||
| Statement of Comprehensive Income | ||||||||||||||||||||
| Profit for the year | 646 | — | 646 | 971 | 38 | 1,009 | ||||||||||||||
| Total comprehensive income for the year | 541 | — | 541 | 1,095 | 38 | 1,133 | ||||||||||||||
| Equity shareholders - Continuing operations | 517 | — | 517 | 1,121 | 38 | 1,159 | ||||||||||||||
| Statement of changes in equity | ||||||||||||||||||||
| Retained earnings (Accumulated losses) | (1,937) | 33 | (1,904) | (2,341) | 33 | (2,308) | ||||||||||||||
| Statement of cash flows | ||||||||||||||||||||
| Receipts from customers | 4,054 | — | 4,054 | 4,411 | 169 | 4,580 | ||||||||||||||
| Payments to suppliers and employees | (2,701) | — | (2,701) | (2,583) | (131) | (2,714) | ||||||||||||||
| Cash generated from operations (note 30) | 1,353 | — | 1,353 | 1,828 | 38 | 1,866 | ||||||||||||||
| Net cash inflow from operating activities from continuing operations | 1,268 | — | 1,268 | 1,545 | 38 | 1,583 | ||||||||||||||
| Net cash inflow from operating activities | 1,268 | — | 1,268 | 1,654 | 38 | 1,692 | ||||||||||||||
| Capital expenditure - project capital (note 13) | (392) | — | (392) | (331) | (38) | (369) | ||||||||||||||
| Net cash inflow from investing activities from continuing operations | (940) | — | (940) | (448) | (38) | (486) | ||||||||||||||
| Net cash inflow from investing activities | (940) | — | (940) | (476) | (38) | (514) | ||||||||||||||
| Other Disclosures | ||||||||||||||||||||
| Basic headline earnings per share (note 11) | 146 | — | 146 | 238 | 10 | 248 | ||||||||||||||
| Diluted headline earnings per share (note 11) | 146 | — | 146 | 238 | 9 | 247 | ||||||||||||||
F - 13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 STATEMENT OF COMPLIANCE continued
•Amendments to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ relating to onerous contracts - costs of fulfilling a contract;
•Amendments to IFRS 3 ‘Business Combinations’ with regards to updating a reference to the conceptual framework; and
•Annual improvements to IFRS Standards 2018 – 2020 for IFRS 16 ‘Leases’ relating to lease incentives and IFRS 9 ‘Financial Instruments’ relating to fees in the ’10 per cent’ test for derecognition of financial liabilities.
Other than the amendment to IAS 16, these amendments had no material impact on the Group.
The following amendments to IFRS were early adopted by the Group effective from 1 January 2022:
•Amendments to IAS 1 ‘Presentation of Financial Statements’ with regards to the disclosure of accounting policies;
•Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ relating to the definition of accounting estimates;
•Amendments to IAS 1 ‘Classification of Liabilities as Current or Non-Current’; and
•Amendments to IAS 1 ‘Non-Current Liabilities with Covenants’.
The adoption of these amendments had no material impact on the Group.
Accounting standards, amendments and interpretations issued which are relevant to the Group, but not yet effective
The new accounting standards and amendments to accounting standards issued which are relevant to the Group, but not yet effective on 31 December 2022, include:
IFRS 17 'Insurance Contracts' and Amendments to IFRS 17 'Insurance Contracts'
IFRS 17 replaces IFRS 4 ‘Insurance Contracts’ and sets out principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform approach for all insurance contracts. The standard and the amendments to the standard is effective for the Group’s reporting period starting on 1 January 2023 and will be applied retrospectively. The effect of the implementation of the new standard is not expected to have a material impact on the Group’s results.
Amendments to IAS 12 ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction’
This amendment narrowed the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. This should mainly impact right of use assets and lease liabilities and decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset. The amendments are effective for the Group from 1 January 2023, will be applied retrospectively and are not expected to materially impact the Group.
F - 14
1 STATEMENT OF COMPLIANCE continued
1.1 BASIS OF PREPARATION
The financial statements are prepared according to the historical cost convention, except for the revaluation of certain financial instrumentsassets and liabilities to fair value. The group’sGroup’s accounting policies as set out below are consistent in all material respects with those applied in the previous year.
The groupGroup financial statements are presented in US dollars.
The groupGroup financial statements incorporate the financial statements of the company,Company, its subsidiaries and its interests in joint ventures and associates. The financial statements of all material subsidiaries, the Environmental Rehabilitation Trust Fund, joint ventures and associates, are prepared for the same reporting period as the holding company,Company, using the same accounting policies.
Subsidiaries are all entities (including structured entities) over which the groupGroup has control. The groupGroup controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Control would generally exist where the groupGroup owns more than 50% of the voting rights, unless the groupGroup and other investors collectively control the entity where they must act together to direct the relevant activities. In such cases, as no investor individually controls the entity the investment is accounted for as an equity method investmentassociate, joint venture or a joint operation. Subsidiaries are fully consolidated from the date on which control is transferred to the group.Group. They are de-consolidateddeconsolidated from the date on which control ceases. The groupGroup re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.
Intra-group transactions, balances and unrealised gains and losses on transactions between group companies, including any resulting tax effecteffects are eliminated. Unrealised losses are also eliminated unless
The significant accounting judgements and estimates applied in the transaction provides evidence of an impairmentpresentation of the asset transferred.Group and Company annual financial statements are set out below. The accounting policies adopted are detailed in Annexure A: “Summary of material accounting policies”.
1.2 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
Use of estimates
The preparation of the financial statements requires the group’sGroup’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those estimates.
The more significant areas requiring the use of management estimates and assumptions relate to OreMineral Reserve that are the basis of future cash flow estimates and unit-of-production depreciation, depletion and amortisation calculations; environmental, reclamation and closure obligations; asset impairments/reversals (including impairments of goodwill); production start date; recoverability of indirect taxes; recoverability of deferred tax assets; and write-downswrite downs of inventory to net realisable value. Other estimates include employee benefit liabilities, and unrecognised tax positions.positions and deferred compensation assets.
The judgements thatapplied by management has applied in the application of accounting policies, and the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
F - 15
Use of estimates continued
Carrying value of tangible assets
Amortisation
The majority of mining assets are amortised using the units-of-production method where the mine operating plan calls for production from a well-defined provedProven and probable OreProbable Mineral Reserve.
For other tangible assets, the straight-line method is applied over the estimated useful life of the asset which does not exceed the estimated mine life based on provedProven and probable OreProbable Mineral Reserve as the useful lives of these assets are considered to be limited to the life of the relevant mine.Assets are amortised to residual values. Residual values and useful lives are reviewed, and adjusted if appropriate, at the beginning of each financial year.
The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the future is different from current forecast production based on provedProven and probable OreProbable Mineral Reserve. This would generally arise when there are significant from the following factors:
•changes in any of the factors or assumptions used in estimating Ore Reserve.Proven and Probable Mineral Reserve;
•the grade of OreMineral Reserve may vary significantly from time to time;
•differences between actual commodity prices and commodity price assumptions;
•unforeseen operational issues at mine sites; and
•changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates.
Changes in provedProven and probable OreProbable Mineral Reserve could similarly impact the useful lives of assets amortised on the straight-line method, where those lives are limited to the life of the mine.
Stripping costs
The groupGroup has a number of surface mining operations that are in the production phase for which production stripping costs are incurred. The benefits that accrue to the groupGroup as a result of incurring production stripping costs include (a) ore that can be used to produce inventory and (b) improved access to further quantities of material that will be mined in future periods.
The production stripping costs relating to improved access to further quantities of material in future periods are capitalised as a stripping activity asset, if and only if, all of the following are met:
•It is probable that the future economic benefit (improved access to the orebody) associated with the stripping activity will flow to the group;Group;
•The groupGroup can identify the component of the orebody for which access has been improved; and
•The costs relating to the stripping activity associated with that component or components can be measured reliably.
Components of the various orebodies at the operations of the groupGroup are determined based on the geological areas identified for each of the orebodies and are reflected in the OreMineral Reserve reporting of the group.Group. In determining whether any production stripping costs should be capitalised as a stripping activity asset, the groupGroup uses three operational guidance measures; two of which relate to production measures, while the third relates to an average stripping ratio measure.
Once determined that any portion of the production stripping costs should be capitalised, the groupGroup determines the amount of the production stripping costs that should be capitalised with reference to the average mine costs per tonne of the component and the actual waste tonnes that should be deferred. Stripping activity assets are amortised on the units-of-production method based on the OreMineral Reserve of the component or components of the orebody to which these assets relate.
This accounting treatment is consistent with that for stripping costs incurred during the development phase of a pit, before production commences, except that stripping costs incurred during the development phase of a pit, before production commences, are amortised on the units-of-production method based on the OreMineral Reserve of the pit.
Deferred stripping costs are included in ‘Mine development costs’, within tangible assets. These costs form part of the total investment in the relevant cash-generating unit, which is reviewed for impairment if events or a change in circumstances indicate that the carrying value may not be recoverable. Amortisation of stripping activity assets is included in operating costs.cost of sales.
Impairment
The groupGroup reviews and tests the carrying value of tangible assets when events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets, which is generally at the individual mine level. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of goodwill and tangible assets are inherently uncertain and could materially change over time and impact the recoverable amounts. The cash flows and value in use are significantly affected by a number of factors including published reserves, resources,Mineral Reserve, Mineral Resource, exploration potential and production estimates, together with economic factors such as spot and future metal prices, discount rates, foreign currency exchange rates, estimates of costs to produce reservesMineral
F - 16
Use of estimates continued
Reserve and future capital expenditure. AtThe estimated future cash flows and discount rates are post-tax. Discounting post-tax cash flows at a post-tax discount rate yields the same result as discounting pre-tax cash flows at a pre-tax discount rate.At the reporting date the groupGroup assesses whether any of the indicators which gave rise to previously recognised impairments have changed such that the impairment loss no longer exists or may have decreased. The impairment loss is then assessed on the original factors for reversal and if indicated, such reversal is recognised.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is estimated based on the positive indicators. higher of an asset’s fair value less costs to sell and value in use.
If an impairment loss has decreased, the carrying amount is recorded at the recoverable amount as limited in terms of IAS 36.36 Impairment of Assets.
The carrying value of tangible assets at 31 December 20172022 was $3,742m (2016: $4,111m; 2015: $4,058m)$4,209m (2021: $3,493m; 2020: $2,917m). The impairment and derecognition of tangible assets recognised in the consolidated financial statements for the year ended 31 December 20172022 was $288m (2016: $3m; 2015: $5m)$282m (2021: $6m; 2020: nil).
Production start date
The Group assesses the stage of each mine construction project to determine when a project moves into the production stage. The criteria used to assess the start date are determined by the unique nature of each mine construction project and include factors such as the complexity of a plant and its location. The Group considers various relevant criteria to assess when the construction project is substantially complete and ready for its intended use and moves into the production stage. The criteria used in the assessment would include, but are not limited to the following:
•the level of capital expenditure compared to the construction cost estimates;
•completion of a reasonable period of testing of the constructed asset;
•adequacy of stope face;
•ability to produce metals in saleable form (within specifications); and
•ability to sustain ongoing production of metal.
When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are either regarded as inventory or expensed, except for capitalisable costs related to mining asset additions or improvements, underground mine development, deferred stripping activities, or Ore Reserve development.
Phase 2 of the Obuasi mine re-development project, after initially being delayed due to voluntary suspension of all underground activities following a sill pillar incident during May 2021, moved into the production stage on 1 October 2022 when it was determined that the Phase 2 assets were capable of operating in the manner intended by management.
Carrying value of goodwill and intangible assets
Where an investment in a subsidiary, joint venture or an associate is made, any excess of the consideration transferred over the fair value of the attributable Mineral Resource including value beyond provedProven and probable OreProbable Mineral Reserve, exploration properties and net assets is recognised as goodwill.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable independent cash flows (cash-generating units).
An individual operating mine is not a typical going-concern business because of the finite life of its reserves.Mineral Reserve. The allocation of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine reporting unit. In accordance with the provisions of IAS 36, “Impairment of Assets”, the groupGroup performs its annual impairment review of assigned goodwill during the fourth quarter of each year.year, refer note 15 for impairment assumptions.
The carrying value of goodwill in the consolidated financial statements at 31 December 20172022 was $127m (2016: $126m; 2015:$105m (2021: $119m; 2020: $126m). The impairmentImpairment of goodwill recognised in the consolidated financial statements for the year ended 31 December 20172022 was $9m (2016:$8m (2021: nil; 2015:2020: nil).
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Use of estimates continued
Income taxes
The groupGroup is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes due to the complexity of legislation. There are many transactions and calculations for which the
ultimate tax determination is uncertain during the ordinary course of business. The groupGroup recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
The groupGroup recognises the net future tax benefit related to deferred income tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred income tax assets requires the groupGroup to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the groupGroup to realise the net deferred tax assets recorded at the reporting date could be impacted.
Additionally, future changes in tax laws in the jurisdictions in which the groupGroup operates could limit the ability of the groupGroup to obtain tax deductions in future periodsperiods.
Carrying values of the group at 31 December 2017:2022:
•deferred tax asset: $4m (2016: $4m; 2015: $1m);$72m (2021: $7m; 2020: $7m );
•deferred tax liability: $363m (2016: $496m; 2015: $514m)$300m (2021: $313m; 2020: $246m);
•taxation liability: $53m (2016: $111m; 2015: $91m)$45m (2021: $39m; 2020: $153m); and
•taxation asset: $3m (2016: $14m; 2015: $27m).$41m (2021: $49m; 2020: $14m), included in trade, other receivables and other assets.
Provision for environmental rehabilitation obligations
The group’sGroup incurs obligations to close, restore and rehabilitate its mine sites affected by mining and exploration activities which are subject to various laws and regulations governing the protection of the environment. The groupGroup recognises management’s best estimate for decommissioning and restoration obligations in the period in which they are incurred.incurred and the costs can be reasonably estimated. The determination of the provision is based on, among other considerations, judgements and estimates of current damage caused, timing and amount of future costs to be incurred to rehabilitate the mine sites, estimates of future inflation, exchange rates and discount rates. Future changes to environmental laws and regulations, technology, life of mine estimates, inflation rates, foreign currency exchange rates and discount rates could affect the carrying amount of this provision.provision, cannot be predicted with certainty and could have a material impact on our business, financial condition, results of operations and cash flows. A sensitivity assessment is included in note 25.
The carrying amount of the rehabilitation obligations for the groupGroup at 31 December 20172022 was $724m (2016: $705m; 2015: $683m).$578m (2021: $673m; 2020: $659m ). Note 25 provides information about related environmental guarantees and bonds.
Stockpiles and metals in process
Costs that are incurred in or benefit the production process are accumulated in stockpiles and metals in process values. Net realisable value tests are performed at least annually and represent the estimated future sales price of the product, based on prevailing and long termlong-term metals prices, less estimated costs to complete production and bring the product to sale.
Surface and underground stockpiles and metals in process are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces based on assay data, and the estimated recovery percentage based on the expected processing method. Stockpile ore tonnages are verified by periodic surveys.
Although the quantities of recoverable metal are reconciled by comparing the grades of ore to the quantities of metals actually recovered (metallurgical balancing), the nature of the process inherently limits the ability to precisely monitor recoverability levels. As a result, the metallurgical balancing process is constantly monitored and engineering estimates are refined based on actual results over time.
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Use of estimates continued
Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downswrite downs to net realisable value are accounted for on a prospective basis.
The carrying value of inventories (excluding finished goods and mine operating supplies) for the groupGroup at 31 December 20172022 was $424m (2016: $397m; 2015: $393m)$306m (2021: $299m; 2020: $382m).
Recoverable tax, rebates, levies and duties
In a number of countries, particularly in Continental Africa,Tanzania and Argentina, AngloGold Ashanti is due refunds of indirect tax which remain outstanding for periods longer than those provided for in the respective statutes. The Group uses probability weighted discounting models together with the expected timing of recovery of these refunds to estimate their fair values and related discounting effects which are updated at each reporting period. Timing of the recoverability and the resultant probabilities is updated based on several factors including ongoing correspondence and meetings with the relevant authorities and available income taxes for off-sets, if applicable. Where the recovery of the indirect tax refunds is tied to off-set arrangements against income taxes, the modeled scenarios incorporate judgements around the applicable mine’s business plan and availability of future income tax off-sets. The Group consults tax and legal specialists to determine the current basis of applicable laws and regulations in the associated jurisdictions which are highly complex and subject to interpretation. Future changes to such laws and regulations or the interpretation thereof could have a material impact on the carrying value of these assets, results of operations and cash flows.
In addition, AngloGold Ashanti has unresolved non-income tax disputes in a number of countries, particularly in Continental AfricaTanzania, Brazil and in Brazil.Argentina. If the outstanding input taxes are not received and the taxthese disputes are not resolved in a manner favourable to AngloGold Ashanti, it could have a material adverse effect upon the carrying value of these assets.assets and our results of operations.
The net carrying value of recoverable tax, rebates, levies and duties (excluding normal taxation assets) for the groupGroup at 31 December 20172022 was $174m (2016: $135m; 2015: $94m).$307m (2021: $304m; 2020: $281m) and is included in trade, other receivables and other assets, refer note 20.
Post-retirement obligations
The determination of AngloGold Ashanti’sthe Group’s obligation and expense for post-retirement liabilities, including the Group's reimbursive asset relating to annuities purchased to fund the obligation, depends on the selection of certain assumptions used by actuaries to calculate amounts. These assumptions include, among others, the discount rate, the expected long-term rate of return of plan assets, health care inflation costs, rates of increase in compensation costs and the number of employees who reach retirement age before the mine reaches the end of its life. While AngloGold Ashanti believes that these assumptions are appropriate, significant changes in the assumptions may materially affect post-retirement obligations as well as future expenses, which may result in an impact on earnings in the periods that the changes in these assumptions occur.
The carrying value of the post-retirement plansobligations at 31 December 20172022 was $122m (2016: $118m; 2015: $89m)$71m (2021: $77m; 2020: $83m).
A Mineral Reserve estimate is an estimate of the amounttonnage and grade or quality of productIndicated and Measured Mineral Resource that can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and legally extracted fromallowances for losses that may occur when the group’s properties.material is mined or extracted. In order to calculateestimate the OreMineral Reserve, estimates and assumptions are required about a range of geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates.
Estimating the quantity and/or grade of the OreMineral Reserve requires the size, shape and depth of orebodies to be determined by analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data.
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Use of estimates continued
period to period. Changes in the reported OreMineral Reserve may affect the group’sGroup’s financial results and financial position in a number of ways, including the following:
•asset carrying values may be affected due to changes in estimated future cash flows;
•depreciation, depletion and amortisation charged in the income statement may change where such charges are determined by the units-of-production method, or where the useful economic lives of assets change;
•overburden removal costs, including production stripping activities, recorded on the statement of financial position or charged in the income statement may change due to changes in stripping ratios or the units-of-production method of depreciation;
•decommissioning site restoration and environmental provisions may change where changes in the estimated OreMineral Reserve affect expectations about the timing or cost of these activities; and
•the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits.
Provision for silicosis
The Settlement Agreement in the silicosis and tuberculosis class action litigation became operational on 10 December 2019. A settlement trust, known as the Tshiamiso Trust, was established to carry out the terms of the Settlement Agreement. Significant judgement is applied in estimating the costs that will be incurred to settle the silicosis class action claims and related expenditure.Theexpenditure. The final costs may differ from current cost estimates. The provision is based on actuarial assumptions including:
•silicosis prevalence rates;
•estimated settlement per claimant;
•benefit take-up rates;
•disease progression rates;
•timing of cashflows; and
•discount rate.
Management believes the assumptions are appropriate, however changes in the assumptions may materially affect the provision and final costs of settlement. In prior years, a silicosis provision was not raised as a reliable estimate could not be determined.A sensitivity assessment is included in note 25.
The carrying value of the silicosis provision at 31 December 20172022 was $63m (2016: nil; 2015: nil)$35m (2021: $50m; 2020: $61m).
Deferred compensation asset
The carrying value of the deferred compensation asset at 31 December 2022 was $12m (2021: $25m; 2020: $28m).
Contingencies
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. Such contingencies include, but are not limited to environmental obligations, litigation, regulatory proceedings, tax matters and losses resulting from other events and developments. Refer note 10 for tax uncertainties and contingencies and note 32 for legal claims and other contingencies.
In determining the threshold for disclosure on a qualitative and quantitative basis, management considers the potential for a disruptive effect on the normal functioning of the groupGroup and/or whether the contingency could impact investment decisions. Such qualitative matters considered are reputational risks, regulatory compliance issues and reasonable investor considerations. For quantitative purposes, an amount of $18m,$33m has been considered.
As a global company, the groupGroup is exposed to numerous legal risks. The outcome of currently pending and future proceedings cannot be predicted with certainty. Litigation and other judicial proceedings as a rule raise difficult and complex legal issues and are subject to uncertainties and complexities including, but not
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limited to, the facts and circumstances of each particular case, issues regarding the jurisdiction in which each suit is brought and differences in applicable law. Upon resolution of any pending legal matter, the groupGroup may be forced to incur charges in excess of the presently established provisions and related insurance coverage. It is possible that the financial position, results of operations or cash flows of the groupGroup could be materially affected by the unfavourable outcome of litigation.
Use of estimates continued
Climate change considerations
The Company’s 2021 TCFD-aligned Climate Change Report outlines the Board-approved Climate Change Strategy and seeks to embed the management of physical and transition climate risks and opportunities into the Company’s strategic and operational planning processes, a process that is enabled through a refreshed company-wide climate change governance framework. The report also summarises at a high level specific outcomes from the physical climate risk assessment conducted at each of the operating assets, considering the business as usual scenario. The potential effect of decarbonisation scenarios and other transition risks on the Company’s business strategy and planning assumptions including the cost of energy and other key mining inputs, is an area that will be addressed through the continued implementation of the Company’s Climate Change Strategy.
Unlike other major mineral resources companies, AngloGold Ashanti does not mine or extract fossil fuels such as coal, natural gas or oil. AngloGold Ashanti does, however, emit greenhouse gases directly through the combustion of fuels and other energy products at its gold mining operations and indirectly through the consumption of electricity purchased from national grids that include fossil-based energy in its production. AngloGold Ashanti has committed to a target of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 in line with the ambitions of the Paris Agreement, as a member of the International Council on Mining and Metals (ICMM). As a member of the ICMM, the Company has also committed to accelerating action on Scope 3 emissions, including setting credible targets in partnership with suppliers, if not by the end of 2023, as soon as possible thereafter.
1.3 SUMMARY OF SIGNIFICANTMATERIAL ACCOUNTING POLICIES
Equity-accounted investments
Joint ventures and Associates
A joint venture is an entity in which the groupGroup holds a long termlong-term interest and which the groupGroup and one or more other ventures jointly control under a contractual arrangement, that provides for strategic, financial and operating policy decisions relating to the activities requiring unanimous consent of the parties sharing control. The group’s interests inIn a joint arrangements classified as joint ventures are accountedventure the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for using the equity method.
Joint ventures and Associates are equity-accounted from the effective date of acquisition to the effective date of disposal.
Any losses of equity-accounted investments are brought to accountaccounted for in the consolidated financial statements until the investment in such investments is written down to zero. Thereafter, losses are accounted for only insofar as the groupGroup is committed to providing financial support to such investees.
The carrying value of equity-accounted investments represents the cost of each investment, including goodwill, balance outstanding on loans advanced if the loan forms part of the net investment in the investee, any impairment losses/ impairment reversals recognised, the share of post-acquisition retained earnings and losses, and any other movements in reserves. The carrying value of equity-accounted investments is reviewed when indicators arise and if any impairment in value/ impairment reversal has occurred; it is recognised in the period in which the impairment arose. If necessary, impairment and impairment reversals on loans and equity are reported under share of joint ventures and associates profit and loss
In the cash flow statement, dividends received from joint ventures are included in operating activities and dividends received from associates are included in investing activities.
In determining materiality for the disclosure requirements of IFRS 12 “DisclosureDisclosure of Interest in Other Entities”,Entities, management has assessed that amounts representing the carrying value of at least 90% of the investments in associates and joint ventures balances, reported in the statement of financial position, constitute quantitative materiality.
Joint operations
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A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the use of assets and obligations for the liabilities of the arrangement. The groupGroup accounts for activities under joint operations by recognising, in relation to the joint operation, the assets it controls and the liabilities it incurs, the expenses it incurs and the revenue from the sale or use of its share of the joint operations output.
Foreign currency translation
Functional currency
Items included in the financial statements of each of the group’sGroup’s entities are measured using the currency of the primary economic environment in which the entity operates (the ‘functional currency’). The functional currency of the parent companyCompany is South African Rands.
Foreign currency transactions are translated into the functional currency using the approximate exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currencysuch transactions, and from the translation at the reporting period exchange rate of monetary assets and liabilities denominated in foreign currencies, are recognised in the income statement.profit or loss.
Group companies
The results and financial position of all groupGroup entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
date for assets and liabilities, average rates of exchange for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;
year for income and expensesexpense items and historical rates of exchange for each income statement presented are translated at monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rates prevailing at the date of the transaction); and
Exchange differences arising from the translation of the net investment in foreign operations and of borrowings and other currency instruments designatedare accounted for as hedges of such investments, are taken to other comprehensive income on consolidation. On repayment or realisation permanent loans andof net investments arein foreign operations, the resulting FCTR is recycled from FCTR to the income statement. ForOn disposal of non-foreign operations, where the company,parent’s functional currency, is the exchange differences on such monetary items are reported insame as the company income statement.subsidiary’s, associate’s, joint venture’s or branch’s functional currency, no reclassification of FCTR is required.
Tangible assets
Tangible assets are recorded at cost less accumulated amortisation and impairments/reversals. Cost includes pre-production expenditure incurred during the development of a mine and the present value of related future decommissioning costs.
Interest on borrowings relating to the financing of major capital projects under construction is capitalised during the construction phase as part of the cost of the project. Such borrowing costs are capitalised over the period during which the asset is being acquired or constructed and borrowings have been incurred. Capitalisation ceases when construction is interrupted for an extended period or when the asset is substantially complete. Other borrowing costs are expensed as incurred.
To the extent a legal or constructive obligation to a third party exists, the acquisition cost includes estimated costs of dismantling and removing the asset and restoring the site. A change in estimated expenditures for dismantling, removal and restoration is added to or deducted from the carrying value of the related asset. To the extent that the change would result in a negative carrying amount of the related asset, this effect is recognised as income. The change in depreciation charge is recognised prospectively.
For assets amortised on the units-of-production method, amortisation is calculated to allocate the cost of each asset to its residual value over its estimated useful life.
For those assets not amortised on the units-of-production method, amortisation is calculated over their estimated useful life as follows:
•buildings up to life of mine;
•plant and machinery up to life of mine;
•equipment and motor vehicles up to five years; and
•computer equipment up to three years; andyears.
Mine development costs
Capitalised mine development costs include expenditure incurred to develop new orebodies, to define further mineralisation in existing orebodies and to expand the capacity of a mine. Mine development costs include acquired provedProven and probable OreProbable Mineral Reserve at cost at the acquisition date. These costs are amortised from the date on which commercial production begins.the assets are ready for use as intended by management.
Depreciation, depletion and amortisation of mine development costs are computed by the units-of-production method based on estimated provedProven and probable OreProbable Mineral Reserve. The provedProven and probable OreProbable Mineral Reserve reflects estimated quantities of reservesMineral Reserve which can be recovered economically in the future from known mineral deposits.
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Capitalised mine development costs also include stripping activity assets relating to production stripping activities incurred in the production phase of open-pit operations of the group.Group. Once determined that any portion of the production stripping costs should be capitalised, the groupGroup determines the average mine costs per tonne of the component and the waste tonnes to which the production stripping costs relate to determine the amount of the production stripping costs that should be capitalised. Stripping activity assets are amortised on a units-of-production method based on the OreMineral Reserve of the component of the orebody to which these assets relate.
The average mine cost per tonne of the component is calculated as the total expected costs to be incurred to mine the relevant component of the orebody, divided by the number of tonnes expected to be mined from the component. The average mine cost per tonne of the component to which the stripping activity asset relates are recalculated annually in the light of additional knowledge and changes in estimates.
Mine infrastructure
Mine plant facilities, including decommissioning assets, are amortised using the lesser of their useful life or units-of-production method based on estimated provedProven and probable OreProbable Mineral Reserve.
Equipment, furniture and fittings in the Company financial statements are included in Mine infrastructure in the Group financial statements.
Land and assets under construction
Land and assets under construction are not depreciated and are measured at historical cost less impairments.
Mineral rights and dumps
Mineral rights are amortised using the units-of-production method based on the estimated provedProven and probable OreProbable Mineral Reserve. Dumps are amortised over the period of treatment.
Exploration and evaluation assets
All pre-license and exploration costs, including geological and geographical costs, labour, Mineral Resource and exploratory drilling cost, are expensed as incurred, until it is concluded that a future economic benefit will more likely than not be realised. In evaluating if expenditures meet this criterion to be capitalised, several different sources of information are used depending on the level of exploration. While the criterion for concluding that expenditure should be capitalised is always probable, the information used to make that determination depends on the level of exploration:
•Costs on greenfields sites, being those where the groupGroup does not have any mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the groupGroup is able to demonstrate that future economic benefits are probable, which generally will be the establishment of provedProven and probable OreProbable Mineral Reserve at this location;
•Costs on brownfields sites, being those adjacent to mineral deposits which are already being mined or developed under the planned method of extraction, are expensed as incurred until the groupGroup is able to demonstrate that future economic benefits are probable, which generally will be the establishment of increased inclusive provedProven and probable Ore ReserveProbable Mineral Resource, after which the expenditure is capitalised as a mine development cost; and
•Costs relating to extensions of mineral deposits, which are already being mined or developed, including expenditure on the definition of mineralisation of such mineral deposits, are capitalised as a mine development cost.
Costs relating to property acquisitions are capitalised within mine development costs.
Impairment of non-financial assets
The Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, to determine whether there is any indication of impairment. An impairment test is performed annually on all goodwill, intangible assets not yet in use and intangible assets with indefinite useful lives irrespective of whether any impairment indicators have been identified.
For non-financial assets or cash generating units, in circumstances in which indicators of impairment are identified, a formal impairment test is required to be carried out. The impairment test compares the assets or cash generating units (CGUs) carrying amount with its recoverable amount. The recoverable amount is the higher of the amounts calculated under the fair value less cost of disposal and value in use approaches.
Value-in-use is estimated using a discounted cash flow model. The future cash flows are adjusted for risks specific to the asset and is adjusted where applicable to consider any specific risks relating to the country where the asset or cash-generating unit is
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located. Future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money.
A cash-generating unit is the smallest identifiable group of assets
The Group allocates regional support assets to the CGUs. If there is an indication that a regional support asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
Exploration assets are tested for impairment whenever facts and circumstances indicate that the carrying amount is not recoverable. Assets will be allocated to CGUs or groups of CGUs based on how the entity manages its operations i.e., by mineral within a specific geographic area. An impairment loss is recognised for the amount by which the assets or CGUs carrying amount exceeds their recoverable amount.
Development expenditure
Development activities commence after project sanctioning by the appropriate level of management. Judgement is applied by management in determining when a project has reached a stage at which economically recoverable reserves exist such that development may be sanctioned. In exercising this judgement, management is required to make certain estimates and assumptions that may change as new information becomes available. If, after having started the development activity, a judgement is made that a development asset is impaired, the appropriate amount will be written off to the income statement. Capitalised development costs are included as assets under construction and mine development costs in tangible assets.
Goodwill
Where an investment in a subsidiary, joint venture or an associate is made, any excess of the consideration transferred over the fair value of the attributable Mineral Resource including value beyond Proven and Probable Mineral Reserve, exploration properties and net assets is recognised as goodwill. Goodwill in respect of subsidiaries is disclosed as goodwill.
Goodwill relating to subsidiaries is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units for the purpose of impairment testing.
Leases
The Group assesses whether a contract is or contains a lease at inception of a contract. The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less with no purchase option) and leases of low value assets, where the recognition exemption is applied. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The lease liability is initially measured at the present value of minimumthe lease payments measuredthat are not paid at inceptionthe commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. The incremental borrowing rate is the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right of use asset in a similar economic environment with similar terms, security and conditions. The Group applies the IFRS 16 portfolio approach in determining the discount rate for leases. As such a single discount rate has been used for contracts that share similar characteristics. The Group has determined that contracts that are denominated in the same currency will use a single discount rate. This rate has been determined using various factors including in-country borrowings as well as other sources of finance. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.
Lease payments included in the measurement of the lease withliability comprise:
•fixed lease payments (including in-substance fixed payments), less any lease incentives;
•variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
•the amount expected to be payable by the lessee under residual value guarantees;
•the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
•payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
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The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
•the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
•the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used);
•a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, any initial direct costs and restoration costs as described below. They are subsequently measured at cost less accumulated depreciation and impairment losses.
The lease term is determined as the non-cancellable period of a lease, together with:
•periods covered by an option to extend the lease if the Group is reasonably certain to make use of that option; and / or
•periods covered by an option to terminate the lease, if the Group is reasonably certain not to make use of that option.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised atand measured under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The costs are included in the same amount. Capitalised leasedrelated right-of-use asset, unless those costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of their estimatedlease term and useful lives andlife of the underlying asset. If a lease term. Finance lease payments are allocated usingtransfers ownership of the rate implicit inunderlying asset or the lease, whichcost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is included in finance costs, anddepreciated over the capital repayment, which reducesuseful life of the liability tounderlying asset. The depreciation starts at the lessor.
Inventories
Inventories are valued at the lower of cost and net realisable value after appropriate allowances for redundant and obsolete items. Cost is determined on the following bases:
•metals in process are valued at the average total production cost at the relevant stage of production;
•gold doré/bullion is valued on an average total production cost method;
•ore stockpiles are valued at the average moving cost of mining and stockpiling the ore. Stockpiles are classified as a non-current asset where the stockpile exceeds current processing capacity;
•by-products, which include uranium oxide, silver and sulphuric acid, are valued using an average total production cost method;
•mine operating supplies are valued at average cost; and
•heap leach pad materials are measured on an average total production cost basis.
A portion of the related depreciation, depletion and amortisation charge is included in the cost of inventory. Impairments resulting from a decrease in prices are disclosed in special items, all other impairmentsInventory write downs are included in cost of sales.
Provisions
Environmental Expenditure
The Group has long term remediation obligations comprising decommissioning and restoration liabilities relating to its past operations which are based on the Group’s environmental management plans, in compliance with current environmental and regulatory requirements. Provisions for non-recurring remediation costs are recognisedmade when the group hasthere is a present obligation, whether legal or constructive, because of a past event for which it is probable that an outflow of resources embodying economic benefitsexpenditure on remediation work will be required to settleand the obligation and a reliable estimatecost can be madeestimated within a reasonable range of the amount of the obligation. Where some or all of the expenditure required to settle a provision ispossible outcomes. The costs are based on currently available facts, technology expected to be reimbursed by another party,available at the reimbursementtime of the clean-up, laws and regulations presently or virtually certain to be enacted and prior experience in remediation of contaminated sites.
Decommissioning costs
The provision for decommissioning represents the cost that will arise from rectifying damage caused before production commences. Accordingly, a provision and a decommissioning asset is recognised only when the reimbursement is virtually certain. The amount to be reimbursed is recognised as a separate asset. Where the group has a joint and several liability with one or more other parties, no provision is recognised to the extent that those other partiesincluded within mine infrastructure.
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Decommissioning costs are expected to settle part or all of the obligation.
Gains or losses from the expected disposal of assets are not taken into account when determining the provision.
Restoration costs
The provision for restoration represents the cost of restoring site damage after the start of production. Changes in the provision are recorded in the income statement as a cost of production.
Restoration costs are estimated at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices and theadjusted for risks specific to the liability. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money.
Other
Litigation and administrative proceedings are evaluated on a case-by-case basis considering the information available, including that of legal counsel, to assess potential outcomes. Where it is considered probable that an obligation will result in an outflow of resources, a provision is recorded for the present value of the expected cash outflows if these are reasonably measurable. These provisions cover the estimated payments to plaintiffs, court fees and the cost of potential settlements.
Employee benefits
Some groupGroup companies provide post-retirement health care benefits to their retirees. The entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment using an accounting methodology on the same basis as that used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recorded in other comprehensive income immediately. These obligations are valued annually by independent qualified actuaries.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The groupGroup recognises a liability and expense for termination benefits at the earlier of the following dates: (a) when the entity can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” and involves the payment of termination benefits. The group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary redundancy based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after reporting date are discounted to present value.
Share-based payments
The group’sGroup’s management awards certain employee bonuses in the form of equity-settled share-based payments on a discretionary basis.
The fair value of the equity instruments granted is calculated at grant date. For transactions with employees, fair value is based on market prices of the equity instruments granted, if available, taking into account the terms and conditions upon which those equity instruments were granted. If market prices of the equity instruments granted are not available, the fair value of the equity instruments granted is estimated using an appropriate valuation model. Vesting conditions, other than market conditions, are not taken into account when estimating the fair value of shares or share options at measurement date.
F - 26
Over the vesting period, the fair value at measurement date is recognised as an employee benefit expense with a corresponding increase in other capital reserves based on the group’sGroup’s estimate of the number of instruments that will eventually vest. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations.
When options are exercised or share awards vest, the proceeds received, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium.
Where the terms of an equity settled award are modified, as a minimum, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of the modification.
In addition, the group'sGroup’s management awards certain employee bonuses in the form of a cash settled scheme, whereby awards granted are linked to the performance of the company'sCompany’s share price. A liability is recognised based upon the grant date fair value and is subsequently remeasured to the closing share price at each reporting date up to the date of vesting. Remeasurements to fair value are recognised in the income statement.
Revenue recognition
Revenue is recognised at the fair valuewhen control of the consideration received or receivablegoods passes to the extent that itcustomer and the performance obligations of transferring control have been met. The amount of revenue recognised reflects the consideration to which the entity is probable that economic benefits will flow toentitled in exchange for the groupgoods transferred.
Revenue from product sales comprises sales of:
•refined gold;
•by-products including silver and revenuesulphuric acid; and costs can be reliably measured. The following criteria must also be present:
Revenue from product sales is recognised when the significant risks and rewards of ownership of the products are transferred to the buyer;at a point in time.
Taxation
Deferred taxation is providedrecognised on all qualifying temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are only recognised to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future and future taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date.
Deferred tax assets and liabilities are measured at future anticipated tax rates, which have been enacted or substantively enacted at the reporting date.
Current and deferred tax is recognised as income or expense and included in profit or loss for the period, except to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period in other comprehensive income or directly in equity, or an acquisition that is a business combination that is an acquisition.combination.
Current tax is measured on taxable income at the applicable statutory rate enacted or substantively enacted at the reporting date. Interest and penalties, if any, are recognised in the income statement as part of taxation expense.
Financial instruments
Financial instruments are initially measuredrecognised at fair value when the groupGroup becomes a party to their contractual arrangements. Transaction costs directly attributable to the instrument’s acquisition or issue are included in the initial measurement of financial instruments,
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assets and financial liabilities, except financial instruments classified as at fair value through profit or loss.loss (FVTPL), which are expensed. The subsequent measurement of financial instruments is dealt with below.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. The Group also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In this case a new financial liability based on the modified terms is recognised at fair value.
Financial assets
A financial asset is classified as measured at:
•Amortised cost;
•Fair value through other comprehensive income (FVTOCI) - equity instruments; or
•FVTPL.
Assets at amortised cost include trade, other receivables and other assets, cash restricted for use and cash and cash equivalents. Interest income from these financial assets is included in finance income using the effective interest rate method.
On derecognition of a financial asset, the difference between the proceeds received or receivable and the carrying amount of the asset is included in profit or loss.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits on call and other short-term highly liquid investments with a maturity period of three months or less at date of purchase. Cash and cash equivalents are stated at carrying amount which fairly approximates its fair value. For the purposes of the statement of cash flows cash and cash equivalents is net of bank overdrafts as it forms an integral part of the Group’s cash management.
Cash restricted for use
Cash restricted for use comprises cash and cash equivalents including amounts held in escrow, trust, separate bank accounts and cash held by joint operations which are not available for general use by the Group. Cash restricted for use for more than 12 months is classified as a non-current financial asset.
Equity instruments
Listed and unlisted equity investments are included in Other investments in the Statement of financial position. Listed equity investments which are held to meet rehabilitation liabilities are classified as FVTPL. Listed equity investments held for other purposes are classified as FVTOCI.
The Group subsequently measuredmeasures all equity investments at fair value. GainsWhere the Group’s management has elected to present fair value gains and losses on financial liabilities that are designated as atequity investments in OCI, there is no subsequent reclassification of fair value throughgains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Residual values in OCI are reclassified to retained earnings (accumulated losses) on derecognition of the related FVTOCI instruments. Changes in the fair value of financial assets at FVTPL are recognised in profit or loss as they arise. Fairand presented net within foreign exchange and fair value adjustments in the period in which it arises.
Impairment of financial assets
Financial assets at amortised cost consist of trade receivables, loans, cash and cash equivalents, cash restricted for use and debt securities. Impairment losses are assessed using the forward-looking expected credit loss (ECL) approach. An allowance is recorded for all loans and other debt financial assets not held at FVTPL. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Trade receivable loss allowances are measured at an amount equal to lifetime ECL’s. Loss allowances are deducted from the gross carrying amount of the assets and the movement on the loss allowance is recognised in profit and loss. Debt securities that are determined to have a low credit risk at the reporting date and bank balances, for which credit risk has not increased significantly since initial recognition, are measured at an amount equal to 12-month ECL.
Financial guarantees in the parent company
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Financial guarantee contracts are accounted forrecognised as a financial instruments and measuredliability at the time the guarantee is issued. The liability is initially at estimated fair value. They are subsequently measured at the higher of the amount determined in accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, and the amount initially recognised less (when appropriate) cumulative amortisation recognised in accordance with IAS 18 “Revenue”.
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2 SEGMENTAL INFORMATION
AngloGold Ashanti Limited’sAshanti’s operating segments are being reported based on the financial information regularly provided to the Chief Executive Officer and the Executive Committee, collectively identified as the Chief Operating Decision Maker (CODM). The group produces gold as its primary product and does not have distinct divisional segments in terms of principal business activity, but manages its business on the basis of different geographic segments (including equity accounted investments). Individual members of the Executive Committee are responsible for geographic regions of the business.
The reportable segment information is aligned with the Group’s new operating model which was announced in 2021 and implemented during 2022.
Under the new operating model, the manner in which the financial results are reported to the CODM and the composition of the operating segments continue to be reported per geographical region. In addition, a new segment, Projects has been introduced from the implementation of the new operating model (previously reported under the America’s segment). The Projects segment comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. The comparative information of the affected operating segment information has been restated.
In addition to the geographical reportable segments structure, the Group has voluntarily disaggregated and disclosed the financial information on a line-by-line basis for each mining operation to facilitate comparability of mine performance.
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Group analysis by origin is as follows:
| Figures in millions | Gold income | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (8) | |||||||||||||||||
| Geographical analysis of gold income by origin is as follows: | |||||||||||||||||
Africa * (1) | 2,981 | 2,644 | 2,937 | ||||||||||||||
| Kibali - Attributable 45% | 596 | 659 | 647 | ||||||||||||||
| Iduapriem | 443 | 361 | 485 | ||||||||||||||
| Obuasi | 431 | 204 | 219 | ||||||||||||||
| Siguiri | 591 | 545 | 453 | ||||||||||||||
| Geita | 920 | 875 | 1,133 | ||||||||||||||
| Australia * | 967 | 890 | 989 | ||||||||||||||
| Sunrise Dam | 410 | 416 | 459 | ||||||||||||||
| Tropicana - Attributable 70% | 557 | 474 | 530 | ||||||||||||||
| Americas * | 1,036 | 1,028 | 1,211 | ||||||||||||||
| Cerro Vanguardia | 319 | 279 | 358 | ||||||||||||||
| AngloGold Ashanti Mineração | 557 | 600 | 649 | ||||||||||||||
| Serra Grande | 160 | 149 | 204 | ||||||||||||||
| 4,984 | 4,562 | 5,137 | |||||||||||||||
| Equity-accounted joint ventures included above | (596) | (659) | (647) | ||||||||||||||
| Continuing operations | 4,388 | 3,903 | 4,490 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 408 | ||||||||||||||
| 4,388 | 3,903 | 4,898 | |||||||||||||||
| Foreign countries included in the above and considered material are: | |||||||||||||||||
| Australia | 967 | 890 | 989 | ||||||||||||||
| Argentina | 319 | 279 | 358 | ||||||||||||||
| Brazil | 717 | 749 | 853 | ||||||||||||||
| Ghana | 874 | 565 | 704 | ||||||||||||||
| Guinea | 591 | 545 | 453 | ||||||||||||||
| Tanzania | 920 | 875 | 1,133 | ||||||||||||||
| DRC | 596 | 659 | 647 | ||||||||||||||
| Geographical analysis of gold income by destination is as follows: | |||||||||||||||||
South Africa # | 599 | 669 | 661 | ||||||||||||||
| North America | 409 | 699 | 580 | ||||||||||||||
| South America | 33 | 34 | 1 | ||||||||||||||
| Australia | 967 | 890 | 989 | ||||||||||||||
| Europe | 319 | 279 | 358 | ||||||||||||||
| United Kingdom | 2,066 | 1,446 | 2,095 | ||||||||||||||
Other # | 591 | 545 | 453 | ||||||||||||||
| 4,984 | 4,562 | 5,137 | |||||||||||||||
| Equity-accounted joint ventures included above | (596) | (659) | (647) | ||||||||||||||
| Continuing operations | 4,388 | 3,903 | 4,490 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 408 | ||||||||||||||
| Continuing and discontinued operations | 4,388 | 3,903 | 4,898 | ||||||||||||||
# The Siguiri gold production is sold through an agent to multiple customers, the destination which is not determinable and as a result allocated to the Other category in the geographical analysis. The comparatives previously included under South Africa have been reclassified accordingly.
The Group's revenue is mainly derived from gold income. Approximately 55% of the Group's total gold produced is sold to three customers of the Group: ANZ Investment Bank Ltd in Australia (20%), Standard Chartered Bank in the United Kingdom (22%), and JP Morgan Chase N.A. London in the United Kingdom (13%). Due to the diversity and depth of the total gold market, the bullion banks do not possess significant pricing power.
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| Figures in millions | Total assets (1)(2)(3) | Net operating assets(2)(3) | |||||||||||||||
| US Dollars | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||
| South Africa | 1,734 | 1,818 | 1,629 | 1,388 | 1,520 | 1,352 | |||||||||||
| Continental Africa | 3,153 | 3,090 | 3,121 | 1,296 | 1,278 | 1,349 | |||||||||||
| Australasia | 929 | 804 | 837 | 664 | 581 | 625 | |||||||||||
| Americas | 1,258 | 1,273 | 1,341 | 909 | 923 | 963 | |||||||||||
| Other, including non-gold producing subsidiaries | 145 | 168 | 356 | 24 | 26 | 11 | |||||||||||
| 7,219 | 7,153 | 7,284 | 4,281 | 4,328 | 4,300 | ||||||||||||
| Non-current assets considered material, by country are: | |||||||||||||||||
South Africa(5) | 1,295 | 1,678 | 1,463 | ||||||||||||||
Foreign entities(5) | 4,259 | 4,144 | 4,324 | ||||||||||||||
DRC(5) | 1,423 | 1,400 | 1,406 | ||||||||||||||
Ghana(5) | 533 | 520 | 543 | ||||||||||||||
Tanzania(5) | 422 | 437 | 517 | ||||||||||||||
Australia(5) | 764 | 673 | 703 | ||||||||||||||
Brazil(5) | 632 | 645 | 657 | ||||||||||||||
| Figures in millions | By product revenue | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Africa * (1) | 4 | 5 | 4 | ||||||||||||||
| Kibali - Attributable 45% | 1 | 2 | 1 | ||||||||||||||
| Iduapriem | 1 | 1 | 1 | ||||||||||||||
| Obuasi | 1 | — | — | ||||||||||||||
| Siguiri | — | 1 | — | ||||||||||||||
| Geita | 1 | 1 | 2 | ||||||||||||||
| Australia * | 4 | 4 | 3 | ||||||||||||||
| Sunrise Dam | 1 | 1 | 1 | ||||||||||||||
| Tropicana - Attributable 70% | 3 | 3 | 2 | ||||||||||||||
| Americas * | 106 | 119 | 99 | ||||||||||||||
| Cerro Vanguardia | 75 | 93 | 82 | ||||||||||||||
| AngloGold Ashanti Mineração | 31 | 26 | 17 | ||||||||||||||
| 114 | 128 | 106 | |||||||||||||||
| Equity-accounted joint ventures included above | (1) | (2) | (1) | ||||||||||||||
| Continuing operations | 113 | 126 | 105 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 1 | ||||||||||||||
| 113 | 126 | 106 | |||||||||||||||
| Figures in millions | Cost of sales | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (8) | |||||||||||||||||
Africa * (1) | 2,004 | 1,650 | 1,702 | ||||||||||||||
| Kibali - Attributable 45% | 342 | 350 | 340 | ||||||||||||||
| Iduapriem | 314 | 238 | 280 | ||||||||||||||
| Obuasi | 266 | 164 | 164 | ||||||||||||||
| Siguiri | 488 | 410 | 377 | ||||||||||||||
| Geita | 594 | 488 | 542 | ||||||||||||||
| Administration and other | — | — | (1) | ||||||||||||||
| Australia * | 783 | 740 | 705 | ||||||||||||||
| Sunrise Dam | 371 | 364 | 342 | ||||||||||||||
| Tropicana - Attributable 70% | 382 | 346 | 338 | ||||||||||||||
| Administration and other | 30 | 30 | 25 | ||||||||||||||
| Americas * | 913 | 822 | 764 | ||||||||||||||
| Cerro Vanguardia | 273 | 261 | 269 | ||||||||||||||
| AngloGold Ashanti Mineração | 477 | 435 | 392 | ||||||||||||||
| Serra Grande | 162 | 123 | 101 | ||||||||||||||
| Administration and other | 1 | 3 | 2 | ||||||||||||||
| Corporate and other | 4 | (5) | (2) | ||||||||||||||
| 3,704 | 3,207 | 3,169 | |||||||||||||||
| Equity-accounted joint ventures included above | (342) | (350) | (340) | ||||||||||||||
| Continuing operations | 3,362 | 2,857 | 2,829 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 287 | ||||||||||||||
| 3,362 | 2,857 | 3,116 | |||||||||||||||
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| Figures in millions | Amortisation | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | 133 | 167 | 182 | |||||
Continental Africa(1) | 421 | 365 | 339 | |||||
| Australasia | 130 | 126 | 117 | |||||
Americas(1) | 273 | 260 | 240 | |||||
| Other, including non-gold producing subsidiaries | 2 | 5 | 7 | |||||
| 959 | 923 | 885 | ||||||
| Equity-accounted investments included above | (136 | ) | (114 | ) | (108 | ) | ||
| Continuing operations | 823 | 809 | 777 | |||||
| Discontinued operations | — | — | 6 | |||||
| 823 | 809 | 783 | ||||||
| Figures in millions | Gross profit (loss) (2) | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (8) | |||||||||||||||||
Africa * (1) | 981 | 999 | 1,239 | ||||||||||||||
| Kibali - Attributable 45% | 256 | 311 | 308 | ||||||||||||||
| Iduapriem | 130 | 124 | 206 | ||||||||||||||
| Obuasi | 165 | 41 | 55 | ||||||||||||||
| Siguiri | 103 | 135 | 76 | ||||||||||||||
| Geita | 327 | 388 | 593 | ||||||||||||||
| Administration and other | — | — | 1 | ||||||||||||||
| Australia * | 188 | 153 | 286 | ||||||||||||||
| Sunrise Dam | 40 | 53 | 117 | ||||||||||||||
| Tropicana - Attributable 70% | 177 | 130 | 194 | ||||||||||||||
| Administration and other | (29) | (30) | (25) | ||||||||||||||
| Americas * | 229 | 325 | 532 | ||||||||||||||
| Cerro Vanguardia | 122 | 111 | 157 | ||||||||||||||
| AngloGold Ashanti Mineração | 111 | 191 | 273 | ||||||||||||||
| Serra Grande | (2) | 26 | 104 | ||||||||||||||
| Administration and other | (2) | (3) | (2) | ||||||||||||||
| Corporate and other | (9) | 6 | (2) | ||||||||||||||
| 1,389 | 1,483 | 2,055 | |||||||||||||||
| Equity-accounted joint ventures included above | (256) | (311) | (308) | ||||||||||||||
| Continuing operations | 1,133 | 1,172 | 1,747 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 83 | ||||||||||||||
| 1,133 | 1,172 | 1,830 | |||||||||||||||
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| Figures in millions | Amortisation | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (8) | |||||||||||||||||
Africa * (1) | 367 | 268 | 354 | ||||||||||||||
| Kibali - Attributable 45% | 95 | 105 | 104 | ||||||||||||||
| Iduapriem | 80 | 19 | 74 | ||||||||||||||
| Obuasi | 40 | 22 | 11 | ||||||||||||||
| Siguiri | 50 | 47 | 41 | ||||||||||||||
| Geita | 102 | 75 | 124 | ||||||||||||||
Australia * (6) | 172 | 150 | 160 | ||||||||||||||
| Sunrise Dam | 54 | 60 | 64 | ||||||||||||||
| Tropicana - Attributable 70% | 117 | 88 | 94 | ||||||||||||||
| Administration and other | 1 | 2 | 2 | ||||||||||||||
| Americas * | 185 | 161 | 163 | ||||||||||||||
| Cerro Vanguardia | 39 | 27 | 26 | ||||||||||||||
| AngloGold Ashanti Mineração | 106 | 108 | 109 | ||||||||||||||
| Serra Grande | 40 | 25 | 27 | ||||||||||||||
| Administration and other | — | 1 | 1 | ||||||||||||||
| Corporate and other | 4 | 3 | 2 | ||||||||||||||
| 728 | 582 | 679 | |||||||||||||||
| Equity-accounted joint ventures included above | (95) | (105) | (104) | ||||||||||||||
| Continuing operations | 633 | 477 | 575 | ||||||||||||||
| Figures in millions | Total assets (3)(4) | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (7)(9) | Restated (7)(9) | ||||||||||||||||
Africa * (1) | 4,083 | 4,226 | 3,989 | ||||||||||||||
| Kibali - Attributable 45% | 1,063 | 1,604 | 1,604 | ||||||||||||||
| Iduapriem | 436 | 386 | 328 | ||||||||||||||
| Obuasi | 1,268 | 1,036 | 923 | ||||||||||||||
| Siguiri | 447 | 463 | 458 | ||||||||||||||
| Geita | 864 | 732 | 670 | ||||||||||||||
| Administration and other | 5 | 5 | 6 | ||||||||||||||
Australia * (6) | 960 | 1,034 | 1,044 | ||||||||||||||
| Americas * | 1,406 | 1,573 | 1,370 | ||||||||||||||
| Cerro Vanguardia | 514 | 491 | 456 | ||||||||||||||
| AngloGold Ashanti Mineração | 625 | 781 | 650 | ||||||||||||||
| Serra Grande | 228 | 252 | 189 | ||||||||||||||
| Administration and other | 39 | 49 | 75 | ||||||||||||||
Projects * (7) | 872 | 313 | 256 | ||||||||||||||
| Colombian projects | 244 | 211 | 176 | ||||||||||||||
| North American projects | 628 | 102 | 80 | ||||||||||||||
| Corporate and other | 751 | 854 | 1,046 | ||||||||||||||
| 8,072 | 8,000 | 7,705 | |||||||||||||||
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| Figures in millions | Non-current assets (5) | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (7)(9) | Restated (7)(9) | ||||||||||||||||
| Non-current assets considered material, by country are: | |||||||||||||||||
| South Africa | 40 | 61 | 59 | ||||||||||||||
| Foreign entities | 5,767 | 5,640 | 5,086 | ||||||||||||||
| DRC | 1,063 | 1,604 | 1,604 | ||||||||||||||
| Ghana | 1,349 | 1,191 | 948 | ||||||||||||||
| Tanzania | 594 | 510 | 425 | ||||||||||||||
| Australia | 758 | 806 | 849 | ||||||||||||||
| Brazil | 659 | 797 | 627 | ||||||||||||||
| North America | 617 | — | — | ||||||||||||||
| Figures in millions | Capital expenditure | ||||||||||||||||
| US Dollars | 2022 | 2021 | 2020 | ||||||||||||||
Restated (7) | Restated (7)(8) | ||||||||||||||||
Africa * (1) | 576 | 506 | 435 | ||||||||||||||
| Kibali - Attributable 45% | 90 | 72 | 52 | ||||||||||||||
| Iduapriem | 146 | 105 | 60 | ||||||||||||||
| Obuasi | 159 | 168 | 206 | ||||||||||||||
| Siguiri | 27 | 38 | 30 | ||||||||||||||
| Geita | 154 | 123 | 87 | ||||||||||||||
Australia * (6) | 202 | 185 | 143 | ||||||||||||||
| Sunrise Dam | 50 | 62 | 53 | ||||||||||||||
| Tropicana - Attributable 70% | 152 | 122 | 90 | ||||||||||||||
| Administration and other | — | 1 | — | ||||||||||||||
| Americas * | 322 | 346 | 168 | ||||||||||||||
| Cerro Vanguardia | 66 | 69 | 31 | ||||||||||||||
| AngloGold Ashanti Mineração | 199 | 195 | 104 | ||||||||||||||
| Serra Grande | 57 | 82 | 33 | ||||||||||||||
Projects * (7) | 17 | 52 | 49 | ||||||||||||||
| Colombian projects | 16 | 52 | 49 | ||||||||||||||
| North American projects | 1 | — | — | ||||||||||||||
| Corporate and other | 1 | 11 | — | ||||||||||||||
| Continuing operations | 1,118 | 1,100 | 795 | ||||||||||||||
| Discontinued operations - South Africa | — | — | 35 | ||||||||||||||
| 1,118 | 1,100 | 830 | |||||||||||||||
| Equity-accounted joint ventures included above | (90) | (72) | (56) | ||||||||||||||
| 1,028 | 1,028 | 774 | |||||||||||||||
•The operating segments continue to be presented per geographical region. The additional information disaggregated and disclosed for each mining operation has been provided by the Group to facilitate comparability of mine performance.
(1)Includes equity-accounted investments.
(2)The Group's segmental profit measure is gross profit (loss), which excludes the results of associates and joint ventures. For the reconciliation of gross profit (loss) to profit before taxation and discontinued operations, refer to the Group income statement.
(3)Total assets include allocated goodwill of $105m (2021: $111m; 2020: $118m) for Australia and nil (2021: $8m; 2020: $8m) for Americas (note 15).
(4)In 2022, the Group's pre-tax impairments and derecognition of assets of $308m were accounted for in Corporate and other of nil (2021: $1m; 2020: nil), Africa Region of $4m (2021: $4m; 2020: nil) and the Americas of $304m (2021: $1m; 2020: nil). In 2020, there was an impairment reversal of $17m in South Africa.
(5)Non-current assets exclude financial instruments, deferred tax assets and reimbursive right for post-retirement benefits.
(6)The Australia total assets include property, plant and equipment, cash, leased assets, inventory and others assets which the Group is unable to allocate and disaggregate on a reasonable basis between the different mining operations, as some of these assets represent shared assets between the mining operations within the Australia geographical region. The amortisation disaggregated segment disclosures only relate to property, plant and equipment which do not represent shared assets and for which the Group can disaggregate and allocate on a reasonable basis to the different mining operations within the geographical region.
F - 35
(7) A new segment for Projects (previously reported under the Americas segment) has been introduced due to the implementation of the new operating model which comprises all the major non-sustaining capital projects with the potential to be developed into operating entities. Comparative information has been restated.
(8) The adoption of the amendment to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” on 1 January 2022 resulted in a retrospective increase in gold income of $168m, cost of sales of $130m, amortisation of $5m, gross profit of $38m and capital expenditure of $38m for 31 December 2020 . Refer to note 1.
(9) The total asset balances for 31 December 2021 and 31 December 2020 have been retrospectively restated and increased with $33m due to the initial application of the amendment to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” on 1 January 2022..Refer to note 1.
3 REVENUE FROM PRODUCT SALES
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Restated | |||||||||||||||||
| Revenue consists of the following principal categories: | |||||||||||||||||
| Gold income (note 2) | 4,388 | 3,903 | 4,490 | ||||||||||||||
| By-products (note 2) | 113 | 126 | 105 | ||||||||||||||
| 4,501 | 4,029 | 4,595 | |||||||||||||||
4 COST OF SALES
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Restated | |||||||||||||||||
| Cash operating costs | 2,554 | 2,160 | 2,012 | ||||||||||||||
| Royalties | 185 | 162 | 181 | ||||||||||||||
| Other cash costs | 14 | 12 | 13 | ||||||||||||||
| Total cash costs | 2,753 | 2,334 | 2,206 | ||||||||||||||
| Retrenchment costs | 6 | 2 | 2 | ||||||||||||||
| Rehabilitation and other non-cash costs | — | 38 | 32 | ||||||||||||||
| Amortisation of tangible assets (notes 30 and 34) | 551 | 411 | 526 | ||||||||||||||
| Amortisation of right of use assets (notes 14, 30 and 34) | 81 | 63 | 47 | ||||||||||||||
| Amortisation of intangible assets (notes 15, 30 and 34) | 1 | 3 | 2 | ||||||||||||||
| Inventory change | (30) | 6 | 14 | ||||||||||||||
| 3,362 | 2,857 | 2,829 | |||||||||||||||
5 OTHER EXPENSE (INCOME)
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Care and maintenance | — | 45 | — | ||||||||||||||
| Governmental fiscal claims | 11 | 7 | 6 | ||||||||||||||
| Legacy TSF obligations | (16) | 9 | 14 | ||||||||||||||
| Pension and medical defined benefit | 7 | 7 | 8 | ||||||||||||||
| Royalty receivable impaired | — | — | 4 | ||||||||||||||
| Royalties received | (2) | (2) | (2) | ||||||||||||||
| Retrenchment and related costs | — | 18 | — | ||||||||||||||
| Legal fees and project costs | 15 | 10 | 9 | ||||||||||||||
| Refund from insurance claim | — | — | (5) | ||||||||||||||
| Other indirect taxes | 11 | 18 | 23 | ||||||||||||||
| Premium on settlement of bonds | — | 24 | — | ||||||||||||||
| 26 | 136 | 57 | |||||||||||||||
F - 36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
| Figures in millions | Capital expenditure | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | 150 | 182 | 206 | |||||
Continental Africa(1) | 409 | 291 | 315 | |||||
| Australasia | 153 | 109 | 78 | |||||
Americas (1) | 234 | 225 | 196 | |||||
| Other, including non-gold producing subsidiaries | 7 | 4 | 4 | |||||
| 953 | 811 | 799 | ||||||
| Discontinued operations | — | — | 58 | |||||
| 953 | 811 | 857 | ||||||
| Equity-accounted investments included above | (123 | ) | (100 | ) | (131 | ) | ||
| 830 | 711 | 726 | ||||||
Gold production (attributable) (000oz) | ||||||||
| 2017 | 2016 | 2015 | ||||||
| South Africa | 903 | 967 | 1,004 | |||||
| Continental Africa | 1,453 | 1,321 | 1,435 | |||||
| Australasia | 559 | 520 | 560 | |||||
| Americas | 840 | 820 | 831 | |||||
| Continuing operations | 3,755 | 3,628 | 3,830 | |||||
| Discontinued operations | — | — | 117 | |||||
| 3,755 | 3,628 | 3,947 | ||||||
| Figures in millions | Gold income | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| Geographical analysis of gold income by origin is as follows: | ||||||||
| South Africa | 1,101 | 1,173 | 1,132 | |||||
Continental Africa(1) | 1,895 | 1,663 | 1,724 | |||||
| Australasia | 709 | 646 | 666 | |||||
| Americas | 1,104 | 1,036 | 967 | |||||
| 4,809 | 4,518 | 4,489 | ||||||
| Equity-accounted investments included above | (453 | ) | (433 | ) | (474 | ) | ||
| Continuing operations (note 3) | 4,356 | 4,085 | 4,015 | |||||
| Discontinued operations | — | — | 137 | |||||
| 4,356 | 4,085 | 4,152 | ||||||
| Foreign countries included in the above and considered material are: | ||||||||
| Brazil | 705 | 659 | 641 | |||||
| Guinea | 489 | |||||||
| Tanzania | 664 | 591 | 615 | |||||
| Geographical analysis of gold income by destination is as follows: | ||||||||
| South Africa | 1,659 | 1,719 | 2,499 | |||||
| North America | 456 | 893 | 658 | |||||
| Australia | 709 | 645 | 666 | |||||
| Asia | — | — | 195 | |||||
| Europe | 399 | 377 | 332 | |||||
| United Kingdom | 1,586 | 884 | 139 | |||||
| 4,809 | 4,518 | 4,489 | ||||||
| Equity-accounted investments included above | (453 | ) | (433 | ) | (474 | ) | ||
| Continuing operations (note 3) | 4,356 | 4,085 | 4,015 | |||||
| Discontinued operations | — | — | 137 | |||||
| Continuing and discontinued operations | 4,356 | 4,085 | 4,152 | |||||
| Figures in millions | By product revenue | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | 15 | 23 | 38 | |||||
Continental Africa(1) | 3 | 4 | 3 | |||||
| Australasia | 2 | 2 | 2 | |||||
| Americas | 135 | 110 | 84 | |||||
| 155 | 139 | 127 | ||||||
| Equity-accounted investments included above | (1 | ) | (1 | ) | — | |||
| Continuing operations | 154 | 138 | 127 | |||||
| Discontinued operations | — | — | 1 | |||||
| 154 | 138 | 128 | ||||||
| Figures in millions | Total cash costs | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | 968 | 857 | 874 | |||||
Continental Africa(1) | 1,088 | 976 | 1,010 | |||||
| Australasia | 407 | 404 | 393 | |||||
| Americas | 547 | 486 | 492 | |||||
| Corporate and other | (6 | ) | — | (9 | ) | |||
| 3,004 | 2,723 | 2,760 | ||||||
| Equity-accounted investments included above | (295 | ) | (288 | ) | (267 | ) | ||
| Continuing operations | 2,709 | 2,435 | 2,493 | |||||
| Discontinued operations | — | — | 125 | |||||
| 2,709 | 2,435 | 2,618 | ||||||
| Figures in millions | Cost of sales | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | 1,114 | 1,041 | 1,083 | |||||
Continental Africa(1) | 1,510 | 1,331 | 1,347 | |||||
| Australasia | 550 | 540 | 525 | |||||
Americas (1) | 851 | 752 | 719 | |||||
Corporate and other(1) | (3 | ) | 5 | (2 | ) | |||
| 4,022 | 3,669 | 3,672 | ||||||
| Equity-accounted investments included above | (440 | ) | (406 | ) | (378 | ) | ||
| Continuing operations | 3,582 | 3,263 | 3,294 | |||||
| Discontinued operations | — | — | 118 | |||||
| 3,582 | 3,263 | 3,412 | ||||||
| Figures in millions | Gross profit (loss) (4) | |||||||
| US Dollars | 2017 | 2016 | 2015 | |||||
| South Africa | (3 | ) | 149 | 42 | ||||
Continental Africa(1) | 386 | 334 | 377 | |||||
| Australasia | 159 | 106 | 142 | |||||
Americas(1) | 253 | 283 | 247 | |||||
Corporate and other(1) | 2 | (4 | ) | 2 | ||||
| 797 | 868 | 810 | ||||||
| Equity-accounted investments included above | (13 | ) | (27 | ) | (96 | ) | ||
| Continuing operations | 784 | 841 | 714 | |||||
| Discontinued operations | — | — | 19 | |||||
| 784 | 841 | 733 | ||||||
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Revenue consists of the following principal categories: | ||||||||
| Gold income (note 2) | 4,356 | 4,085 | 4,015 | |||||
| By-products (note 2 and 4) | 154 | 138 | 127 | |||||
| Royalties received (note 6) | 18 | 9 | 4 | |||||
| Interest received (notes 31 and 35) | 15 | 22 | 28 | |||||
| 4,543 | 4,254 | 4,174 | ||||||
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Cash operating costs | 2,728 | 2,444 | 2,493 | |||||
| By-products revenue (note 3) | (154 | ) | (138 | ) | (127 | ) | ||
| 2,574 | 2,306 | 2,366 | ||||||
| Royalties | 116 | 105 | 100 | |||||
| Other cash costs | 19 | 24 | 27 | |||||
| Total cash costs | 2,709 | 2,435 | 2,493 | |||||
| Retrenchment costs | 6 | 14 | 11 | |||||
| Rehabilitation and other non-cash costs | 29 | 43 | (10 | ) | ||||
| Amortisation of tangible assets (note 31 and note 35) | 817 | 789 | 737 | |||||
| Amortisation of intangible assets (note 31 and note 35) | 6 | 20 | 40 | |||||
| Inventory change | 15 | (38 | ) | 23 | ||||
| 3,582 | 3,263 | 3,294 | ||||||
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Care and maintenance costs (note 35) | 62 | 70 | 67 | |||||
| Pension and medical defined benefit provisions | 9 | 25 | 18 | |||||
| Governmental fiscal claims and care and maintenance of old tailings operations | 14 | 14 | 7 | |||||
| Other | 3 | 1 | 4 | |||||
| 88 | 110 | 96 | ||||||
6 SPECIAL ITEMS
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
Impairment and derecognition of assets(1) | 297 | 3 | 20 | |||||
| Impairment of other investments | 3 | — | — | |||||
Retrenchment and related costs(2) | 88 | 1 | 4 | |||||
Legal fees (recoveries) and other costs related to contract terminations and settlement costs(3) | 71 | 11 | (1 | ) | ||||
| Write-down of inventories | 3 | 12 | 11 | |||||
| Net (profit) loss on disposal of assets | (8 | ) | (4 | ) | (1 | ) | ||
| Royalties received (note 3) | (18 | ) | (9 | ) | (4 | ) | ||
| Indirect tax expense (recoveries) | 2 | (2 | ) | (20 | ) | |||
| Repurchase premium and cost on settlement of debt facilities | — | 30 | 61 | |||||
| Other | — | — | 1 | |||||
| 438 | 42 | 71 | ||||||
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Finance costs | |||||||||||||||||
| Finance costs on bonds, bank loans and other | 102 | 109 | 124 | ||||||||||||||
| Amortisation of fees | 8 | 6 | 23 | ||||||||||||||
| Lease finance charges | 11 | 9 | 8 | ||||||||||||||
| Less: interest captalised | (2) | (14) | (17) | ||||||||||||||
| 119 | 110 | 138 | |||||||||||||||
| Unwinding of obligations | 30 | 6 | 39 | ||||||||||||||
| Total finance costs and unwinding of obligations (notes 30 and 34) | 149 | 116 | 177 | ||||||||||||||
The interest included within finance costs is calculated at effective interest rates.
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Finance costs | ||||||||
| Finance costs on bonds, corporate notes, bank loans and other | 132 | 148 | 215 | |||||
| Amortisation of fees | 4 | 4 | 5 | |||||
| Finance lease charges | 6 | 6 | 3 | |||||
| 142 | 158 | 223 | ||||||
| Unwinding of obligations | 27 | 22 | 22 | |||||
Total finance costs, unwinding of obligations and other discounts (note 31 and 35) | 169 | 180 | 245 | |||||
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Revenue | 629 | 697 | 677 | ||||||||||||||
| Operating costs and other expenses | (393) | (370) | (353) | ||||||||||||||
| Profit on sale of joint ventures | — | — | 19 | ||||||||||||||
| Net interest received | 4 | 7 | 5 | ||||||||||||||
| Profit (loss) before taxation | 240 | 334 | 348 | ||||||||||||||
| Taxation | (73) | (85) | (70) | ||||||||||||||
| Profit (loss) after taxation | 167 | 249 | 278 | ||||||||||||||
| Impairment investment in joint ventures (note 17) | (1) | — | — | ||||||||||||||
| Share of associates and joint ventures’ profit (loss) (note 30) | 166 | 249 | 278 | ||||||||||||||
8 EMPLOYEE BENEFITS
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits | 650 | 593 | 644 | ||||||||||||||
| - current medical expenses | 17 | 25 | 23 | ||||||||||||||
| - defined benefit post-retirement medical expenses | 5 | 6 | 7 | ||||||||||||||
| - defined contribution | 20 | 20 | 25 | ||||||||||||||
| Retrenchment costs | 6 | 16 | 2 | ||||||||||||||
| Share-based payment expense (note 9) | 18 | 22 | 16 | ||||||||||||||
| Included in cost of sales, other expenses and corporate administration, marketing and related expenses of continuing and discontinued operations | 716 | 682 | 717 | ||||||||||||||
F - 37
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Revenue | 453 | 441 | 489 | |||||
| Operating costs, special items and other expenses | (470 | ) | (446 | ) | (415 | ) | ||
| Net interest received | 1 | 3 | 7 | |||||
| Profit (loss) before taxation | (16 | ) | (2 | ) | 81 | |||
| Taxation | 23 | 7 | (17 | ) | ||||
| Profit (loss) after taxation | 7 | 5 | 64 | |||||
| (Impairment) impairment reversal of investments in associates | 13 | (5 | ) | 12 | ||||
| Impairment reversal of investments in joint ventures (note 17) | 2 | 11 | 12 | |||||
| Share of associates and joint ventures’ profit (loss) (note 31) | 22 | 11 | 88 | |||||
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Employee benefits including Executive Directors’ and Prescribed Officers’ salaries and other benefits | 1,024 | 918 | 971 | |||||
| Health care and medical scheme costs | ||||||||
| - current medical expenses | 58 | 51 | 54 | |||||
| - defined benefit post-retirement medical expenses | 10 | 10 | 10 | |||||
| Pension and provident plan costs | ||||||||
| - defined contribution | 53 | 48 | 49 | |||||
| - defined benefit pension plans | — | 15 | 14 | |||||
| Retrenchment costs | 92 | 16 | 15 | |||||
| Share-based payment expense (note 10) | 33 | 37 | 33 | |||||
| Included in cost of sales, other operating expenses, special items and corporate administration, marketing and other expenses | 1,270 | 1,095 | 1,146 | |||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
9 SHARE-BASED PAYMENTS
| US Dollars | |||||||||||||||||
| Figures in millions | 2022 | 2021 | 2020 | ||||||||||||||
| Equity-settled share incentive schemes | |||||||||||||||||
| Deferred Share Plan (DSP) | 18 | 22 | 14 | ||||||||||||||
| Other | — | — | 2 | ||||||||||||||
| Total share-based payment expense (note 8) | 18 | 22 | 16 | ||||||||||||||
| US Dollars | ||||||||
| Figures in millions | 2017 | 2016 | 2015 | |||||
| Equity-settled share incentive schemes | ||||||||
| Bonus Share Plan (BSP) | 26 | 26 | 22 | |||||
| Long Term Incentive Plan (LTIP) | (1 | ) | 7 | 11 | ||||
| Other | 1 | 1 | — | |||||
| 26 | 34 | 33 | ||||||
| Cash-settled share incentive scheme | ||||||||
| Cash-settled Long Term Incentive Plan (CSLTIP) | 7 | 3 | — | |||||
| Total share-based payment expense (note 9) | 33 | 37 | 33 | |||||
Equity-settled incentive schemes
Bonus Share Plan (BSP)
| Award date (unvested awards and awards vested during the year) | 2017 | 2016 | 2015 | ||||||||
| Calculated fair value | R | 152.87 | R | 229.22 | R | 130.87 | |||||
| Vesting date 50% | 1 Mar 2018 | 1 Mar 2017 | 3 Mar 2016 | ||||||||
| Vesting date 50% | 1Mar 2019 | 1 Mar 2018 | 3 Mar 2017 | ||||||||
| Expiry date | 1 Mar 2027 | 1 Mar 2026 | 3 Mar 2025 | ||||||||
| Number of shares | ||||||||
| 2017 | 2016 | 2015 | ||||||
| Awards outstanding at beginning of year | 4,198,285 | 4,708,799 | 3,305,515 | |||||
| Awards granted during the year | 1,926,549 | 2,103,767 | 2,562,313 | |||||
| Awards lapsed during the year | (218,601 | ) | (204,374 | ) | (165,006 | ) | ||
| Awards exercised during the year | (1,426,554 | ) | (2,409,907 | ) | (994,023 | ) | ||
| Awards outstanding at end of year | 4,479,679 | 4,198,285 | 4,708,799 | |||||
| Awards exercisable at end of year | 1,904,021 | 1,170,849 | 1,687,096 | |||||
| Award date | 2018 | |||||||||||||||||
| Calculated fair value | R | |||||||||||||||||
| Vesting date 50% | 22 Feb 2019 | |||||||||||||||||
| Vesting date 50% | 22 Feb 2020 | |||||||||||||||||
| Expiry date | 22 Feb 2028 | |||||||||||||||||
| Number of shares | |||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||
| Awards outstanding at beginning of year | 849,683 | 1,005,977 | 2,141,415 | ||||||||||||||
| Awards lapsed during the year | (3,581) | — | — | ||||||||||||||
| Awards exercised during the year | (219,580) | (156,294) | (1,135,438) | ||||||||||||||
| Awards outstanding and exercisable at end of year | 626,522 | 849,683 | 1,005,977 | ||||||||||||||
No cash awards were granted under the bonus share plan at year end 31 December 2022 (2021: nil; 2020: nil) and no cash awards vested or were deemed settled for the year ended 31 December 2022 (2021: nil; 2020: 12,295).
Deferred Share Plan (DSP)
The DSP was implemented with effect from 1 January 2018, with the first awards for the scheme allocated in March 2019. This represents a single scheme under which share awards will be allocated to certain employees from 2019 onwards, vesting equally over a period of 2, 3 and 5 years depending on the level of seniority of the participant.
| Award date (unvested awards and awards vested during the year) | 2022 | 2021 | 2020 | ||||||||||||||
| Calculated fair value | R | 335.04 | R | 308.97 | R | 325.97 | |||||||||||
| DSP 2 year | |||||||||||||||||
| Vesting date 50% | 24 Feb 2023 | 24 Feb 2022 | 25 Feb 2021 | ||||||||||||||
| Vesting date 50% | 24 Feb 2024 | 24 Feb 2023 | 25 Feb 2022 | ||||||||||||||
| DSP 3 year | |||||||||||||||||
| Vesting date 33% | 24 Feb 2023 | 24 Feb 2022 | 25 Feb 2021 | ||||||||||||||
| Vesting date 33% | 24 Feb 2024 | 24 Feb 2023 | 25 Feb 2022 | ||||||||||||||
| Vesting date 34% | 24 Feb 2025 | 24 Feb 2024 | 25 Feb 2023 | ||||||||||||||
| DSP 5 year | |||||||||||||||||
| Vesting date 20% | 24 Feb 2023 | 24 Feb 2022 | 25 Feb 2021 | ||||||||||||||
| Vesting date 20% | 24 Feb 2024 | 24 Feb 2023 | 25 Feb 2022 | ||||||||||||||
| Vesting date 20% | 24 Feb 2025 | 24 Feb 2024 | 25 Feb 2023 | ||||||||||||||
| Vesting date 20% | 24 Feb 2026 | 24 Feb 2025 | 25 Feb 2024 | ||||||||||||||
| Vesting date 20% | 24 Feb 2027 | 24 Feb 2026 | 25 Feb 2025 | ||||||||||||||
| Expiry date | 24 Feb 2032 | 24 Feb 2031 | 25 Feb 2030 | ||||||||||||||
F - 38
Equity-settled incentive schemes continued
| Number of shares | |||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||
| Awards outstanding at beginning of year | 2,692,383 | 2,289,762 | 1,599,360 | ||||||||||||||
| Awards granted during the year | 793,955 | 1,185,348 | 1,176,532 | ||||||||||||||
| Awards lapsed during the year | (163,697) | (322,814) | (155,575) | ||||||||||||||
| Awards exercised during the year | (839,033) | (459,913) | (330,555) | ||||||||||||||
| Awards outstanding at end of year | 2,483,608 | 2,692,383 | 2,289,762 | ||||||||||||||
| Awards exercisable at end of year | 693,211 | 588,694 | 183,439 | ||||||||||||||
Long Term Incentive Plan (LTIP)
| Award date (unexercised awards) | 2015 | |||||||||||||||||
| Calculated fair value | R | 129.94 | ||||||||||||||||
| Vesting date | 3 Mar 2018 | |||||||||||||||||
| Expiry date | 3 Mar 2025 | |||||||||||||||||
| Number of shares | |||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||
| Awards outstanding at beginning of year | 109,229 | 111,562 | 229,639 | ||||||||||||||
| Awards exercised during the year | (46,521) | (2,333) | (118,077) | ||||||||||||||
| Awards outstanding and exercisable at end of year | 62,708 | 109,229 | 111,562 | ||||||||||||||
F - 39
| Number of shares | ||||||||
| 2017 | 2016 | 2015 | ||||||
| Awards outstanding at beginning of year | 4,363,330 | 6,028,193 | 3,964,362 | |||||
| Awards granted during the year | — | — | 3,120,555 | |||||
| Awards lapsed during the year | (1,512,857 | ) | (1,160,023 | ) | (830,356 | ) | ||
| Awards exercised during the year | (384,116 | ) | (504,840 | ) | (226,368 | ) | ||
| Awards outstanding at end of year | 2,466,357 | 4,363,330 | 6,028,193 | |||||
| Awards exercisable at end of year | 455,914 | 320,169 | 445,781 | |||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10 TAXATION
| Figures in millions | US Dollars | ||||||||||||||||
| 2022 | 2021 | 2020 | |||||||||||||||
| South African taxation | |||||||||||||||||
| Normal taxation | 1 | — | 1 | ||||||||||||||
| Prior year under (over) provision | 1 | (1) | — | ||||||||||||||
| Deferred taxation | |||||||||||||||||
| Other temporary differences | — | — | 74 | ||||||||||||||
| 2 | (1) | 75 | |||||||||||||||
| Foreign taxation | |||||||||||||||||
| Normal taxation | 198 | 252 | 553 | ||||||||||||||
| Prior year under (over) provision | 31 | (3) | 8 | ||||||||||||||
| Deferred taxation | |||||||||||||||||
| Temporary differences | (7) | 52 | 9 | ||||||||||||||
| Prior year under (over) provision | 4 | 4 | (6) | ||||||||||||||
| Impairment and disposal of tangible assets | (58) | — | — | ||||||||||||||
| Change in estimate | 3 | 6 | (14) | ||||||||||||||
| Change in statutory tax rate | — | 2 | — | ||||||||||||||
| 171 | 313 | 550 | |||||||||||||||
| 173 | 312 | 625 | |||||||||||||||
| Figures in millions | US Dollars | ||||||||||||||||
| Reconciliation to South African statutory rate | 2022 | 2021 | 2020 | ||||||||||||||
| Implied tax charge at 28% | 137 | 268 | 445 | ||||||||||||||
| Increase (decrease) due to: | |||||||||||||||||
Expenses not tax deductible(1) | 84 | 22 | 29 | ||||||||||||||
| Share of associates and joint ventures' profit | (46) | (70) | (78) | ||||||||||||||
Tax rate differentials(2) and withholding taxes(3) | 25 | 54 | 96 | ||||||||||||||
| Exchange variations and translation adjustments | — | 6 | 28 | ||||||||||||||
| Deferred tax assets recognised at Obuasi | (56) | — | (6) | ||||||||||||||
| Current year tax losses (expense) not recognised: | |||||||||||||||||
| Obuasi | (50) | 6 | — | ||||||||||||||
| AngloGold Ashanti Holdings plc | 24 | 25 | 31 | ||||||||||||||
| North America | 22 | 13 | 4 | ||||||||||||||
Siguiri (4) | (27) | (37) | (8) | ||||||||||||||
| SA Corporate | 20 | 18 | — | ||||||||||||||
| Change in planned utilisation of deferred tax assets and impact of estimated deferred tax rate change | 3 | 6 | (14) | ||||||||||||||
| Tax effect of retained SA items | — | — | 16 | ||||||||||||||
| Tax allowances | — | — | (1) | ||||||||||||||
| Derecognition of deferred tax assets | — | — | 78 | ||||||||||||||
| Impact of statutory tax rate change | — | 2 | — | ||||||||||||||
Adjustment in respect of prior years(5) | 36 | — | 2 | ||||||||||||||
| Other | 1 | (1) | 3 | ||||||||||||||
| Income tax expense | 173 | 312 | 625 | ||||||||||||||
(1) Includes non-deductible corporate, legal, project, exploration and rehabilitation costs, impairments in Brazil and British Virgin Isle group losses.
(2) Due to different tax rates in various jurisdictions, primarily Tanzania, Ghana, Guinea, Australia, Brazil and Argentina.
(3) Withholding taxes on dividends paid.
(4) Siguiri current tax expense not recognised due to tax holiday.
(5) Includes $34m provided in Colombia in 2022.
.
F - 40
| Number of shares | ||||||||
| 2017 | 2016 | 2015 | ||||||
| Awards outstanding at beginning of year | 97,651 | 145,040 | 56,703 | |||||
| Awards granted during the year | 112,105 | 47,590 | 125,050 | |||||
| Awards lapsed during the year | (62,775 | ) | (18,570 | ) | (6,426 | ) | ||
| Awards exercised during the year | (51,603 | ) | (76,409 | ) | (30,287 | ) | ||
| Awards outstanding at end of year | 95,378 | 97,651 | 145,040 | |||||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
10 Share-based payments TAXATION (continued)
| Award date (unvested awards and awards vested during the year) | |||||||
| 2017 | 2016 | ||||||
| Closing share price at 30 December: | R | 128.62 | R | 152.58 | |||
| Vesting date | 1 March 2020 | 1 March 2019 | |||||
| Number of units | ||||
| 2017 | 2016 | |||
Share units outstanding at beginning of year(1) | 2,464,630 | 30,163 | ||
| Share units granted during the year | 2,572,437 | 2,537,000 | ||
| Share units lapsed during the year | (507,597 | ) | (100,490 | ) |
| Share units exercised during the year | (59,852 | ) | (2,043 | ) |
| Share units outstanding at end of year | 4,469,618 | 2,464,630 | ||
| Figures in millions | US Dollars | |||||||
| 2017 | 2016 | 2015 | ||||||
| South African taxation | ||||||||
| Non-mining tax | 1 | 1 | 1 | |||||
| Prior year (over) under provision | — | (3 | ) | (14 | ) | |||
| Deferred taxation | ||||||||
| Impairment and disposal of tangible assets | (72 | ) | — | (1 | ) | |||
| Other temporary differences | (62 | ) | 12 | (43 | ) | |||
| Prior year under provision | 15 | 25 | — | |||||
| Change in estimated deferred tax rate | 31 | — | (15 | ) | ||||
| (87 | ) | 35 | (72 | ) | ||||
| Foreign taxation | ||||||||
| Normal taxation | 201 | 246 | 214 | |||||
| Prior year over provision | (26 | ) | (10 | ) | (9 | ) | ||
| Deferred taxation | ||||||||
| Temporary differences | 20 | (65 | ) | 73 | ||||
| Prior year (over) under provision | 2 | (17 | ) | 5 | ||||
Change in statutory tax rate | (2 | ) | — | — | ||||
| 195 | 154 | 283 | ||||||
| 108 | 189 | 211 | ||||||
| Tax rate reconciliation | ||||||||
| A reconciliation of the effective tax rate in the income statement to the prevailing estimated South African corporate tax rate is set out in the following table: | ||||||||
| % | % | % | ||||||
| Effective tax rate | (172 | ) | 70 | 82 | ||||
| Disallowable items | ||||||||
| Derivative and other commodity contracts losses and fair value gains | — | 1 | 7 | |||||
| Exploration, corporate and other disallowable expenses | 44 | (12 | ) | (23 | ) | |||
| Share of associates and joint ventures’ profit (loss) | (10 | ) | 1 | 10 | ||||
| Foreign income tax allowances and rate differentials | 47 | (18 | ) | (16 | ) | |||
| Exchange variation and translation adjustments | 10 | 8 | (24 | ) | ||||
| Non-tax effective income (loss) | 69 | (26 | ) | (25 | ) | |||
| Effect of temporary differences not recognised for deferred tax assets | 26 | — | — | |||||
| Capital allowances | — | 2 | 4 | |||||
| Change in estimated deferred tax rate | 31 | — | 6 | |||||
| Change in statutory tax rate | (4 | ) | — | — | ||||
| Prior year over provision | (13 | ) | 2 | 7 | ||||
| Estimated corporate tax rate | 28 | 28 | 28 | |||||
| 2017 | 2016 | 2015 | ||||||
| South Africa | ||||||||
Mining tax rate – maximum statutory rate(1) | 34 | % | 34 | % | 34 | % | ||
| Non-mining tax | 28 | % | 28 | % | 28 | % | ||
| Foreign operations include: | ||||||||
| Argentina | 30 | % | 30 | % | 30 | % | ||
| Australia | 30 | % | 30 | % | 30 | % | ||
| Brazil | 34 | % | 34 | % | 34 | % | ||
| Ghana | 30 | % | 30 | % | 30 | % | ||
| Guinea | 30 | % | 30 | % | 30 | % | ||
| Tanzania | 30 | % | 30 | % | 30 | % | ||
| Figures in millions | US Dollars | Figures in millions | US Dollars | ||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2022 | 2021 | 2020 | ||||||||||||||||||||
| Analysis of unrecognised deferred tax assets | Analysis of unrecognised deferred tax assets | ||||||||||||||||||||||||
| Available to be utilised against future profits | Available to be utilised against future profits | ||||||||||||||||||||||||
| - utilisation required within one year | - utilisation required within one year | 107 | 54 | 62 | |||||||||||||||||||||
| - utilisation required between one and two years | 48 | — | — | - utilisation required between one and two years | 100 | 177 | 54 | ||||||||||||||||||
| - utilisation required between two and five years | 333 | 321 | 237 | - utilisation required between two and five years | 1,350 | 1,339 | 352 | ||||||||||||||||||
| - utilisation required between five and twenty years | 1,210 | 1,185 | 1,184 | - utilisation required between five and twenty years | 956 | 989 | 1,002 | ||||||||||||||||||
| - utilisation in excess of twenty years | 1 | 1 | — | - utilisation in excess of twenty years | 588 | 449 | 421 | ||||||||||||||||||
| 1,592 | 1,507 | 1,421 | 3,101 | 3,008 | 1,891 | ||||||||||||||||||||