Mark Cutifani
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Safety improvement at Anglo American mines has put the diversified mining company ahead of the North American mining industry, the leading point of reference.
While in full production mode, the London- and Johannesburg-listed business achieved a fatality-free fourth quarter (Q4), which on top of last year’s performance puts it at the front end of the fatality frequency rate across the industry and ahead of the North American mining industry, Anglo CEO Mark Cutifani told shareholders at the company’s annual general meeting (AGM) on Thursday.
Cutifani’s description of the company’s safety improvement as “a glimmer of what is possible” came shortly after chairperson Sir John Parker said in his opening remarks that Anglo had recorded its “best-ever safety performance during a full production year”.
For the second time in its history – it did so in 2014 – Anglo had a fatality-free quarter in Q4.
“And with the business in full production level, including platinum, that’s the first time we’ve ever achieved that outcome. That performance and last year’s performance puts us at the front end of a fatality frequency rate across the industry and puts us ahead of the North American mining industry,” Cutifani enunciated.
Similar environmental improvement is reported, with incidents 80% lower than three years ago.
“Again, attention to detail, doing the planning work and making sure that we keep all of our operations under control has been absolutely critical,” Cutifani added.
On the health front, a settlement agreement, without admission of liability, resolved 4 400 silicosis claims by former mineworkers, 1 200 of them against AngloGold Ashanti.
Participation in the two-year-old, six-company lung disease working group also involved a legacy compensation outreach to past, current and future employees.
Despite a 24% fall in the commodity price basket, better-than-forecast net debt was lowered to $12.9-billion on 33% less capital expenditure, a $1-billion cost cut and net cash proceeds from disposals of $1.7-billion.
Parker made the point that the extent of the commodity price falls, which wiped out $6.6-billion worth of underlying earnings and put Anglo at the bottom of the FTSE, had been completely unforeseen by every segment of the industry.