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AngloGold-Human rights watch report on Anglogold Ashanti`s activities in the DRC
ANGLOGOLD ASHANTI LIMITED
(Registration number 1944/017354/06)
(Incorporated in the Republic of South Africa)
(`AngloGold`)
ISIN: ZAE000043485 JSE Share code: ANG
HUMAN RIGHTS WATCH REPORT ON ANGLOGOLD ASHANTI`S ACTIVITIES IN THE DRC
AngloGold Ashanti notes the publication of a report today by the US-based NGO,
Human Rights Watch, titled `The Curse of Gold`. In investigating and reporting
on AngloGold Ashanti`s activities in the Ituri region of the DRC, the report
alleges that, through its presence in the region, AngloGold Ashanti gave tacit
support to militia groups and, in doing this, acted inconsistently with the
company`s business principles. The company denies this claim.
Appended to this media release is a copy of our response sent to Human Rights
Watch yesterday, Tuesday 31 May, 2005. That letter deals with the detail of
various matters in the report with which we take issue.
There are, however, a few broader issues we would first like to address.
Firstly, yielding to any form of extortion by an armed militia or anyone else is
contrary to the company`s principles and values. It is not condoned by AngloGold
Ashanti, under any circumstances. That there was a breach of this principle in
this instance, in that company employees yielded to the militia group FNI`s act
of extortion is regretted. In mitigation, it should be noted that as soon as it
came to our attention we publicly acknowledged it, condemned it and said it
would not happen again.
Secondly, in contemplating whether to operate in a conflict zone, we believe we
have a moral right to do so only if, after due consideration, we can honestly
conclude that, on balance, our presence will enhance the pursuit of peace and
democracy.
Our decision to resume operating in the DRC was based on a range of factors.
First, the area covered by our activities has been producing gold since the
beginning of last century and remains highly prospective. We believe that, if
our exploration programme does yield a mine, it will be of significant benefit
to the DRC government and local communities, by providing revenue, employment
and access to social development opportunities - and, of course, returns to our
shareholders.
Second, AngloGold Ashanti was given the repeated assurance of the DRC
Government, at various levels, that it was confident that, with the continuing
collaboration of the UN force MONUC, the peace and political processes would
yield positive results in the Ituri region and beyond.
It was on this basis that we began to establish a base in Mongbwalu at the end
of 2003. It is important to note that exploration only began there at the
beginning of 2005.
AngloGold Ashanti does not and will not support militia or any other groups
whose actions constitute an assault on efforts to achieve peace and democracy.
We have acknowledged the payment by AngloGold Ashanti Kilo to the FNI in January
of an extorted sum of $8,000, and further sums totalling about $1000 last year
in respect of an unauthorised arrangement related to cargo delivered to the
local airstrip. There are also instances of contact between FNI members and
employees on site - always at the FNI`s behest, not ours.
In respect of the payments, we repeat that this will not reoccur. Should we find
ourselves in a situation where there is pressure on our staff again to yield to
extortionate demands, we will consider that to be grounds for our withdrawal
from the exploration project.
We draw a distinction between support for a group such as the FNI, and some
level of unavoidable contact. The contacts are a consequence simply of the
proximity of our operation to local communities, some members of which are FNI
members. It does not make us allies of the FNI, nor complicit in their
activities which, in any event, we hope are now aimed at enhancing the peace
process in that country.
For us, the key is whether we continue to believe that our presence in the Ituri
region of the DRC enhances or obstructs the peace process. We believe that the
opening up of economic activity is more likely to enhance it.
However, we accept that we are obliged continually to review the situation, and
indeed will conduct a high level review in the immediate future.
31st May 2005
Human Rights Watch
2-12 Pentonville Road
LONDON N1 9HF
United Kingdom
Attention: Anneke Van Woudenberg
Dear Ms Van Woudenberg,
Human Rights Watch Report - `The Curse of Gold`
We were handed a copy of your report at our meeting this morning. We were first
given sight of the section dealing with AngloGold Ashanti yesterday, Monday 30
May 2005. Today`s meeting was your first with executive management of this
company on the subject of a report, which is due to be published on Thursday
this week. We would note that, had we been given an earlier opportunity to
review the report, this would have permitted a more thorough and constructive
dialogue prior to its release and, perhaps, a more useful document.
The report contains a number of allegations, which we have not seen before, and
to which we have therefore had no opportunity to respond.
First, on page 69 of the report, you note that the head of the MONUC office in
Bunia, Dominique Ait-Ouyahia McAdams, reported to you in an interview on
February 23, 2004 that she had said to AngloGold Ashanti representatives `that
the time was not right for the start of operations in Mongbwalu`. We have no
knowledge that Ms Ait-Ouyahia McAdams has ever expressed this view to AngloGold
Ashanti, either in person or in writing.
Conversely, in conversations between Sir Sam Jonah, the President of AngloGold
Ashanti, and President Kabila and members of his interim government, the view
has been consistently expressed that the establishment of an AngloGold Ashanti
exploration camp in Mongbwalu would be a positive step in the peace process and
that the company could expect support from Congolese security forces.
Secondly, on page 72 of the document, you report a conversation with Ashley
Lassen, an AngloGold Ashanti representative in Uganda, during which Lassen is
reported to have admitted to having paid `a few hundred dollars, here and there`
to the FNI. As we have noted on previous occasions, the practice of giving
money to individuals or organizations under these circumstances and for the
reasons alluded to here is inconsistent with our principles and practice and is
neither permitted nor condoned.
The third issue deals with an allegation, not contained in the report but raised
in conversation, that Madame Vaweka, the Bunia District Commissioner, had denied
having suggested to AngloGold Ashanti that it would be advisable to concede to
an FNI demand for $8,000 to assist the group to send representatives to Kinshasa
for meetings. In response to this, we can only confirm that Madame Vaweka did
know of the demand and we have no knowledge of her opposition to this payment.
We have in any event taken steps to prevent a repeat of this kind of payment or
similar incident.
Beyond these disagreements of fact, your report strongly suggests that our
presence in the district, and particularly our return to Mongbwalu after periods
of withdrawal, was at the behest, with the support of and to the benefit of the
FNI. This is not at all our experience. We have been guided throughout by
discussions with the Government of the DRC. These discussions occurred on a
regular basis at all levels of the Government. Our return to the camp was the
consequence of these discussions.
In contrast, no authorized agent of the company sought the permission of the FNI
for our presence in the region. The company has received no written
communication from this organization, contrary to your report`s account that the
FNI had given us written permission to return.
We cannot, of course, be held responsible for what FNI officials have claimed in
regard to our presence in and return to Mongbwalu. We can, and do, record our
own experience in this regard.
A second theme of your report is that the FNI has been a major beneficiary of
AngloGold Ashanti`s activities in Mongbwalu. Our experience does not support
this. The financial benefits derived by the FNI consist of a once-off payment
of $8,000 and `landing fees`, which, according to our records, totaled
approximately $1,000 in 2004. As you are aware we condemned these payments as
soon as we became aware of them (publicly in regard to the $8,000) and have
taken steps to prevent any repetition. We repeat the undertaking that no
further payments in cash or any kind will be made to the FNI or any other
militia grouping.
Should we succeed in developing a mine in the area, the beneficiaries will again
be Government, at both central and local levels, and the community through
employment and our social development activities, as well as local procurement.
In any event, in Mongbwalu, we will continue to seek to be part of an
appropriately structured community decision-making and development processes,
consistent with our value of striving to make host communities better off for
our having been there and our practices elsewhere. In pursuit of this, we would
be pleased to have further contact with you to canvass your views on appropriate
strategies and solutions.
Yours sincerely,
Original signed by Mr R.M. Godsell
BOBBY GODSELL
CHIEF EXECUTIVE OFFICER
ends
Date: 02/06/2005 07:00:10 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
