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AngloGold Limited - ANGLOGOLD`S RESPONSE TO SA GOVERNMENT`S SOCIO-ECONOMIC
EMPOWERMENT CHARTER FOR THE MINING INDUSTRY
AngloGold Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1944/017354/06)
ISIN Number:ZAE000014601
JSE Share Code: ANG SJL/CAD/AGO326.02
NYSE Ticker: AU
CORPORATE AFFAIRS DEPARTMENT
16th Floor, 11 Diagonal Street,
Johannesburg 2001, South Africa
Tel: (+27 11) 637-6385 or Fax: (+27 11) 637-6399/6400
10 October 2002
ANGLOGOLD`S RESPONSE TO SA GOVERNMENT`S SOCIO-ECONOMIC
EMPOWERMENT CHARTER FOR THE MINING INDUSTRY
In the future, in order for South African mining companies to convert current
mining rights into "new order" leases, these companies will have to have sold to
companies controlled by black South Africans or women, for fair value, 15% of
their South African assets` production capacity when they renew leases within
the next five years. This ownership requirement is complemented in the Charter
by a 26% ownership objective in the next ten years.
The document sets out a framework of objectives for the industry, covering human
resource development, employment equity in the appointment of managerial staff,
mining community and rural development, housing conditions in the industry, the
contribution of black-owned companies in the supply of goods and services to the
industry and equity ownership of South African mining assets.
AngloGold`s CEO, Bobby Godsell, said, "AngloGold has completed a number of sales
of assets in the past four years which have shown how it is possible to craft
viable transactions which expand empowerment with no significant loss of value
and which will be credited by the Charter. We have no doubt that the 15% target
can be realistically met."
Godsell added, "We are encouraged by the fact that, in promoting broader-based
equity participation in mining through new sources of investment for the
industry, the Charter supports new collective investment instruments such as
unit trusts, which include transformation as part of their mandate, and employee
share schemes, where the majority of members would be either black or female.
AngloGold is also currently considering the implementation of an employee share
ownership plan to broaden share participation amongst its own employees".
The Charter also sets out a challenge to empower workers, managers and the
communities from which they are drawn as an investment in new human capital. In
AngloGold, where the Company has combined newly-acquired numeracy and literacy
skills with new, modern job structures, it has seen significant productivity
gains, coupled with substantially increased individual earning power (and,
consequently, saving capacity).
Godsell went on to say, "Clearly, South Africa`s economy must both draw on the
talent, energy, savings and investment capacity of all of its citizens, from all
races and both genders. Achieving this non-racial character is clearly one of
the top political imperatives of the day. However, this requirement must
contend with a second, and equally demanding reality - the need for economic
growth. If it is implemented in the spirit in which it has been constructed,
the new legislation and the Charter will be a valuable tool in turning our
Country`s extraordinary mineral endowment into real wealth to the benefit of all
of South Africa`s people."
end.
Date: 10/10/2002 03:20:00 PM Produced by the JSE SENS Department
