Comments on SA Mining Charter
Anglo American PLC
10 October 2002
News Release
10 October 2002
ANGLO AMERICAN COMMENTS ON SA GOVERNMENT MINING CHARTER
Anglo American believes that the broad-based Socio-Economic Empowerment Charter
for the South African mining industry released yesterday by the South African
government is a practical approach to achieving transformation in a way that
marries the requirements of international competitiveness and the interests of
the existing investors in companies, with the commitment by all stakeholders to
promote a more inclusive industry.
Anglo American supports the agreed vision of the charter which reads:
"All the actions and commitments...are in the pursuit of a shared vision of a
globally competitive mining industry that draws on the human and financial
resources of all South Africa's people and offers real benefits to all South
Africans. The goal of the empowerment charter is to create an industry that
will proudly reflect the promise of a non-racial South Africa. "
Some of the ideas presented by Anglo American and the mining industry
participants in the intensive debate since the controversial first draft of the
charter was released have been incorporated in the agreed charter announced
yesterday. The concept of a scorecard to measure empowerment progress is
currently being considered. The proposed scorecard, which is still the subject
of ongoing consultation between the mining industry and the SA government, is
likely to incorporate both a broad range of measures, such as performance in
procurement, training, employment equity, etc, as well as credit for past
empowerment deals. Anglo American believes that such a scorecard would be a
suitably facilitative instrument in achieving the 15% and 26% empowerment levels
within five and ten years respectively, subject to available finance. Anglo
American will continue to strive for an outcome that is both realistic and
achievable.
In commenting on the final draft charter, Tony Trahar, CEO, said, "Anglo
American has established a sound foundation of achievement within the broad
empowerment field and is making progress towards achieving the five year target
of 15%. Subject to the availability of finance, the final ten year target of
26% HDSA ownership of the existing industry is also potentially attainable.
Anglo American has been associated with in excess of $1.3bn of black economic
empowerment deals in South Africa, comprising over $1bn in empowerment
transactions and over $300 million on procurement from black-owned businesses."
In conclusion, Tony Trahar, stressed that it was vital for government and
industry to work together to complete work on the scorecard and the important
Money Bill in the near future in order to remove remaining investor
uncertainties. It was imperative also that the Minerals Bill, the Charter, the
Money Bill and the associated regulations all be implemented in an efficient and
transparent manner in order to help rebuild investor confidence.
For further information:
Anglo American
London:
Investor Relations
Nick von Schirnding
Tel: +44 20 7698 8540
Media Relations
Kate Aindow
Tel: +44 20 7698 8619
Johannesburg:
Investor Relations
Anne Dunn
Tel: +27 11 638 4730
Media Relations
Marion Dixon
Tel: +27 11 638 3001
This information is provided by RNS
The company news service from the London Stock Exchange
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