the building at 44 main street (pictured here with 45 main and 55

SEAT rEporTJohannesburg Corpora te Of f i ce

S o c i o - E c o n o m i c A s s e s s m e n t T o o l b o x

Anglo American44 Main Street

Johannesburg

South Africa

Telephone: +27 (0)11 638 9111

www.angloamerican.co.za

The building at 44 Main Street (pictured here with 45 Main and 55 Marshall Street in

the background), home to the Johannesburg Corporate office, was designed in 1937 by

the London-based firm of Sir John Burnet, Tait & Lorne – also the designers of the head

offices for the Lloyds Bank and the Unilever Company, among others.

A HISTORYOF FIRSTS

Anglo American JCO SEAT Report 2009 | 01

A histoRy of fiRsts

The history and growth of Anglo American South Africa’s Johannesburg Corporate Office (JCO) is intertwined with that of the city in which it is based. This Socio-Economic Assessment Toolbox (SEAT) Report portrays the many “firsts” to which both Johannesburg and the JCO lay claim.

the what & why of sEAt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 history & profile of the JCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Doing business in Gauteng . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 JCo contribution to economy and Csi initiatives . . . . . . . . . . . . . .22

impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Management response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 A city in numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46

CoNtENts


iNtRoDUCtioNit was declared a city in 1928, but life in Johannesburg began more than 40 years earlier on 20 september 1886, when President Paul Kruger declared the area open for public gold digging .

the city grew quickly, from a tent town to wood and iron shacks and then brick buildings, keeping pace with Paris and London in terms of new developments such as electric lighting, motor cars and telephones .

As the city has ascended from its humble beginnings, so have its businesses grown alongside it . Anglo American – one of south Africa’s mining pioneers and the country’s first home-based public limited company – is one of them .

Built in the late 1930s, Anglo American’s Johannesburg Corporate office (JCo) is based in Main street . it is an architectural icon and well-known landmark that has borne witness to much of Johannesburg’s colourful past .

In the following report, the interlinked histories of the JCO and the city act as a backdrop for examining the socio-economic impact that the JCO has on Johannesburg and its surrounding areas, and the continued role that it plays in the city’s development.

The sculpture detail on the outside of the building at the JCO’s Main Street premises was designed to reflect South Africa’s natural wealth of flora and fauna. The Impala Stampede statue in the foreground was commissioned by Harry Oppenheimer in memory of his father, Sir Ernest Oppenheimer, who died in 1957. The statue was unveiled on 16 July 1960 at Oppenheimer Park behind the old Johannesburg Post Office (inset photo). The statue was relocated to the Main Street premises in 2000.

the old Johannesburg Post office .

stsA his

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Anglo American JCO SEAT Report 2009 | 04 Anglo American JCO SEAT Report 2009 | 05

05FIRSTiNfRAstR UCtURE

THE WHAT& WHY OF SE AT

Johannesburg’s development through history

Johannesburg’s first road – Commissioner street – was created in 1889, from ferreira’s Camp to Jeppestown . it was constructed by moving an ox wagon laden with stones up and down the existing dirt track, dropping stones and creating the road .

the tracks for Johannesburg’s first train were laid in 1888 and the line from Johannesburg to Boksburg was opened in March 1890 . this line was extended to springs in october 1890, and to Roodepoort in November 1890 .

the first electric street lamp was erected on the corner of Rissik and President streets in october 1895, and the first gas lamp on 17 November 1892 by the Johannesburg Lighting Company .

the first motor car to be seen on the streets of the town was a Benz Voiturette, 1897 . it was advertised in Standard & Diggers’ News: “Wanderers’ Grounds, Wednesday, January 13, 1897, at 4pm sharp . the rage and topic of all Europe – the motor car, or noiseless carriage . the first and only one in south Africa, will exhibit on the Wanderers’ track .”

the first electric trams were introduced in March 1906, travelling from the town to siemert Road in Doornfontein . these trams ran until March 1961, when they were discontinued .

this report represents the first ever Socio-Economic Assessment Toolbox (SEAT) study to be conducted at an Anglo American corporate office – some 70 years after

Anglo American’s head office building was erected at 44 Main street, in 1939 .

More specifically, this is the first SEAT Report to be produced at the Johannesburg Corporate office (JCo) . it outlines the results of an assessment of the social and economic impacts that the JCo has on its

local communities and stakeholders, and summarises our approach to improving our social performance .

Because a sEAt assessment has never been conducted in a corporate office environment, this assessment became a pilot study for its applicability in a context different from the company’s conventional operations like

mines and smelters . As the implementation of sEAt in this environment is unique, this study followed the seven steps outlined in the sEAt manual, but with adjustments made to adapt the

proposed process to the office environment and local context .

Opposite: trams in Cenotaph Place, Johannesburg, in the mid 1900s .

Above: Railway sidings near Johannesburg Park station, which will be the final

stop of the Gautrain Rapid Rail Link route, when it is completed in 2010 .

A HISTORYOF FIRSTS

Anglo American JCO SEAT Report 2009 | 07Anglo American JCO SEAT Report 2009 | 06

thE WhAt& Why of sEAt

sEAt was developed by Anglo American to help operations engage more

effectively and strategically with their stakeholders . it goes a step beyond

compliance, by developing ways to better manage the impacts that each

operation has on the area in which it is based . the following process was

used to conduct the assessment at the JCo:

stEP 1: Profile the JCo

stEP 2: Profile and engage with stakeholders

stEP 3: identify and assess the JCo’s current social and economic impacts

stEP 4: Review the current management systems at the JCo

stEP 5: Assess potential for building new community development initiatives

stEP 6: Develop a management response and monitoring plan

stEP 7: feedback and report to key stakeholders

this report describes the results of this sEAt process and its implementation

at the JCo . it begins by outlining the objectives and the method used for

identifying stakeholders and gathering information . it includes a history and

profile of the JCo and Anglo Research (which falls within the structure of the

JCo), and provides an overview of the key demographic and socio-economic

issues facing communities within greater Johannesburg .

General background information on existing community development

initiatives provides the context for a detailed assessment of the JCo’s social

and economic impacts .

this is followed by the findings of the formal stakeholder engagement

process, a summary of the issues identified, a management response to these

and a brief overview of the Group’s business principles .

the JCo sEAt project team would like to thank all the employees and

external stakeholders who made valuable time available to participate in this

sEAt study . thanks also to the external consultants and the Environmental

Resources Management (ERM) team who provided assistance in the

stakeholder engagement phase and in analysing the issues raised .

Objectives and approach

the objectives of implementing a socio-economic assessment at the JCo

were to:

• buildtrustandgoodwillwithJCOstakeholdersbyprovidingadeeper

understanding of their views and interests, and the dynamics between them;

• developabetterunderstandingofthenegativeandpositivesocio-economic

impacts that the JCo has on its neighbouring communities and stakeholders;

• assesstheeffectivenessofourexistingcommunityinitiativesandidentify

potential improvements;

• becomeausefulresourceindevelopingandupdatingtheJCOand

potentially the Anglo Research Community Engagement Plan;

• provideatoolformanagingthevariousimpactsoftheJCOand

formulating appropriate responses to them in order to improve social

performance; and to

• testtheapplicabilityandimpactofconductingaSEATassessmentina

corporate office environment .

The jurisdiction of the JCO

While many of Anglo American’s global functions and southern African

operations are run from the JCo, the focus of the sEAt process is on local

communities . therefore, it was necessary to clearly define the local area

of impact and influence of the JCo in order to make the assessment both

practical and relevant . this area was defined as including the following

functions and activities:

Johannesburg corporate campus: Corporate Centre human Resources;

finance; facilities Management and security; Anglo Platinum Corporate

office; and Anglo American thermal Coal Corporate office .

Anglo Research: Crown Mines and Germiston .

in consultation with internal stakeholders and the JCo steering Committee,

the following criteria were then developed to frame the geographical scope

of impacts and to help identify stakeholders:

• Doesthesite,activityorcommunityconcernedfalloutsideoftheGauteng

Province of south Africa?

• Wouldwestillbeengagingwithanidentifiedstakeholderifthecorporate

offices were based in, for example, Cape town rather than Johannesburg?

if the answer to either question was yes, then that stakeholder, activity

or community was excluded from the assessment . in cases where JCo

activities and impacts extended beyond the geographical scope, they were

acknowledged but not assessed .

Stakeholder consultation

the term “stakeholder” refers to any party who is or will be affected by the

JCo, or who has an interest in the operation . the purpose of the discussions

held with these stakeholders was:

• togivestakeholderstheopportunitytoprovideinputinaforumthathas

no other purpose; and

• toidentifythekeyimpactsandissues(bothpositiveandnegative)that

need to be managed .

interviews and focus group discussions were held with seven groups of

stakeholders to elicit the following information:

1. Anglo American Chairman’s Fund beneficiaries: the benefits of the

JCo’s involvement and how these can be enhanced; areas of improvement;

and a better understanding of the impacts on the beneficiaries .

2. Anglo Zimele-supported SMEs: the benefits of the JCo’s

involvement and how these can be enhanced; areas of improvement; and a

better understanding of the expectations of these sMEs .

3. JCO suppliers: the benefits and strengths of the JCo as a customer;

areas of improvement; and the JCo’s reputation as a customer .

4. Anglo American Security Services: A better understanding of the

JCo’s relationship with security services in the area and how it could be

enhanced; the role that the JCo plays in providing security services in the

area; areas for potential partnerships; and areas of improvement .

5. Neighbours of Johannesburg corporate campus and Anglo Research: Key social and economic issues; areas for improvement; and ways

in which issues raised can be addressed amicably .

6. Employees of Johannesburg corporate campus and Anglo Research: the benefits and perceptions of the JCo as an employer; an

understanding of the communication channels between the JCo, employees

and their representatives; potential areas for improvement; and the

effectiveness of the partnership forums .

7. Authorities: the municipality’s perceptions of the JCo as a member

of the community; the main goals and objectives of the municipality as

set out in the integrated Development Plan (iDP); the JCo’s role in the

development of the iDP; a better understanding of local community needs,

expectations and perceptions; creative solutions to problems or deadlocks;

and input on infrastructural improvements .

the guiding questions asked during each discussion or focus group were:

• WhathasbeenyourinteractiontodatewiththeAngloAmericanJCO?

• HowcanyourrelationshipwiththeJCObeimproved?

• HowhastheJCOpositivelycontributedtoyou/yourorganisation?

• DoyouhaveanyconcernsregardingtheJCO,andifso,what?

• Whatdoyouseeasbeingthecauseoftheseconcerns?

• HowcanthebenefitsofyourrelationshipwiththeJCObeenhanced

and the concerns mitigated?

A late afternoon aerial view of the Johannesburg corporate campus,

with 55 Marshall street in the background .

A histoRyof fiRsts

stsA his

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THE HISTORY& PROFILE OF THE JCO

Johannesburg’s first gold, weighing 350oz, was sent to Pietermaritzburg on 12 April 1887.

the first share transaction happened in a miner’s tent in ferreira’s Camp . Johannesburg’s first stock exchange was established in Donovan ’s livery stables on the corner of sauer and Commissioner streets . it later moved to a brick building on Commissioner street, with stained glass windows, tiled bathrooms, a bar, offices and a front porch .

the first bank to open in the town was standard Bank, which opened on 11 october 1886, in a tent . from the tent it moved to a thatched cottage, managed by a Mr DP Ross . the building stood at the entrance to ferreira and Worcester, at 185 Anderson street .

Johannesburg’s first economic slump occurred in 1891, as reported in the SA Mining Journal of 1912, brought about when all the alluvial gold had run dry, and serious capital was needed to mine below the surface .

Anglo American’s Johannesburg Corporate office (legally registered as Anglo operations Limited – AoL) was established in 1917 as the headquarters of the then Anglo American Corporation of south Africa (AACsA) .

initially located at Micorsa house in hollard street, the company grew rapidly, and by 1935 new premises had become essential .

the purchase of a 200 by 300 feet city block bounded by Main, Marshall, ferreira and West streets, was serendipitous . this prime site turned out to be one of the original claims where gold was first found in Johannesburg .

the foundations of 44 Main street were laid over the remains of the diggings, creating the first of many ties that have bound the company and city together over the years .

Opposite: An aerial view of a smoking factory site in early Johannesburg .

Above: the mechanised ore sorter at the Anglo Research, which is home to

the world’s largest laboratory for automated mineralogical analysis .

A HISTORYOF FIRSTS

FIRSTECoNoMiC ACtiVity

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thE histoRy &PRofiLE of thE JCo

Anglo American was created to develop the gold mining potential that lay

to the east of Johannesburg on the Witwatersrand – deposits that had been

discovered 30 years earlier .

Within a decade of its founding, the company had become not only a

gold miner of significance, but also the largest shareholder in De Beers,

the undisputed leader of the world’s diamond industry . During this period

the company also acquired several coal assets, subsequently expanding its

footprint further into south Africa .

the JCo headquarters, known as the 44 Main street building, were

constructed in 1938 . over time further buildings were constructed or

acquired and the company’s presence in the Johannesburg CBD expanded .

the Anglo American Johannesburg corporate campus currently consists of a

cluster of buildings including 44, 45, 47 and 60 Main street,

55 Marshall street and the 42 Marshall street Parkade .

the Anglo Research facility situated at the Crown Mines campus near

Gold Reef City, is part of the original Anglo operations Limited, and is

therefore part of the JCo .

Anglo Research was established in october 2005 as the result of a merger

between Anglo American Research Laboratories and Anglo Platinum

Research Centre, which both enjoy a long history of serving the mining

industry in south Africa . the Anglo Platinum Research Centre was

established in 1925 in order to assist the growing platinum industry, while

the Anglo American Research Laboratory was established in 1952 .

General profile

Unlike a conventional mine operation or a smelter, the JCo does not

produce specific products, but instead acts as the south Africa regional

office for Anglo American plc, rendering a variety of services to the Anglo

American group of companies and operations in the region . this came

about in 1999, following the merger of Anglo American Corporation south

Africa and Minorco .

the JCo is still based in the central business district of Johannesburg in

Marshalltown, where the offices were originally constructed . the buildings

have become a key landmark and the company’s continued presence has

contributed to inner-city regeneration .

from the Johannesburg campus, JCo provides the following services to

Anglo American in south Africa and, in many cases, globally:

• LocalimplementationofAngloAmericanplc’sstrategy.

• Publicaffairsandgovernmentrelationsservices.

• Humanresourcesfunctions.

• Corporatefinanceservices.

• Technicalservicesandprojectmanagement.

• Informationmanagementservices.

• Groupsharedservices.

• SmallandMediumEnterprise(SME)development.

• CorporateSocialInvestment(CSI)services(viatheworkoftheAnglo

American Chairman’s fund in Gauteng) .

from the Crown Mines campus, Anglo Research provides various services

in three broad categories:

Services:this includes chemical and mineralogical analysis and metallurgical testing

of ore, mineral and process stream samples .

Development projects and operational support:this includes bench scale, mini plant and pilot plant testing (batch and

continuous) of ore, concentrate and process solutions .

Research projects: this includes the same testing services mentioned above, but on a

smaller scale .

the old headgear (left) near 44 Main street, at the Johannesburg corporate

campus, is now dwarfed by the surrounding office blocks .

the Johannesburg corporate campus . Anglo Research, on the Crown Mines campus .

A histoRyof fiRsts

Marshall Street

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47 Main

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Marshall Street

Anderson Street


DOING BUSINESSIN GAUTENG

It is believed that the first tent in Johannesburg went up on 9 July 1886, two months before the gold diggings were declared. It belonged to a Mr J Paxton De Roi.

the first building of consequence to be constructed was the Central hotel, made out of wood and erected in ferreira’s Camp .

the first school was opened in ferreira’s Camp in November 1886, just two months after the town was started . there were 14 pupils, and h Duff was the teacher . the cost of the building was £7 .10 plus £14 for furnishings .

the first pharmacy, called the Golden Mortar Dispensary, was opened in Commissioner street in 1886 by a Mr heymann . the first hospital was located on the corner of simmonds and Main streets, although it is not known when it was built .

Business in Johannesburg began when George harrison discovered the Great Rand . But within eight years, what had started as a digger camp had become the largest city in sub-Saharan Africa.

As the city and its industries expanded so did the number of migrant labourers moving to the area in search of work . A lack of housing and the apartheid policies of the time saw the creation of townships on the outskirts

of the city during the 1960s – the most notable of which was soweto (south Western townships) .

While the city grew, so did Anglo American, and by the late 1980s the company effectively “owned” 30% of the Johannesburg stock Exchange . the company and its founding family were prominent in

politics and increasingly involved in major black education projects . in 1981, Anglo American became the first mining house in south Africa to recognise black trade unions .

Opposite: A busy Commissioner street in the early 1900s .

Above: Johannesburg today – the city of gold – is estimated

to have 7,519km of road and more than 1,850 traffic lights .

A HISTORYOF FIRSTS

FIRSTsoCio ECoNoMiC D EVELoPMENt


Socio-economic profile of Gauteng

Gauteng is the smallest, but wealthiest province in south Africa, with the

largest economy of any region in sub-saharan Africa . three of the country’s

six metropolitan centres are situated in the province, namely Johannesburg,

Ekurhuleni and tshwane .

PopulationAccording to the Community survey 2007, the City of Johannesburg

municipality is home to almost 40% of the 10 .45 million people in the

province .

Economyin 2008, Gauteng accounted for more than a third (35,3%) of south

Africa’s Gross Domestic Product (GDP), of which almost half comes from

Johannesburg . the province has the fourth-largest GDP on the African

continent and contributes about 10% of its total GDP . Around 70% of all

south African companies have their headquarters in the city .

While mining was the foundation on which the strength of the Johannesburg

economy was built, the importance of this industry has gradually declined

due to the low levels of reserves . Mining now contributes about 2% to the

city’s total GDP . the sectoral profile of Johannesburg reflects that of an

advanced economy that is currently dominated by four sectors, namely:

• financialandbusinessservices;

• retailandwholesaletrade;

• communityandsocialservices;and

• manufacturing.

Employment and unemploymentBetween 2001 and 2008, the number of employed individuals in Gauteng

grew by more than 30%, from just over 1 .08 million to 1 .14 million .

Johannesburg employs approximately 12% of the national workforce of

south Africa and is attracting increasing numbers of people from other

provinces and neighbouring countries – an indication that Gauteng is creating

more jobs relative to the rest of south Africa .

Johannesburg is currently the largest city in south Africa and the provincial

capital of the Gauteng Province . it is one of Africa’s truly global cities, and

one of the 40 largest metropolitan areas in the world .

While Johannesburg is not one of the country’s official capitals (Cape town is

the legislative capital, Bloemfontein the judicial and Pretoria the executive), it

is home to the Constitutional Court – the highest court in the land . it is also

regarded as the engine room of the south African economy and can justly

claim to be the continent’s commercial capital .

Like any city, however, economic, social and political change has taken its toll .

in the mid-1980s the Johannesburg central business district (CBD) began to

lose its lustre as some of the major department stores began moving into

the decentralised areas of sandton and Randburg, to the north .

this was exacerbated after the scrapping of the Group Areas Act in 1991, as

thousands of people relocated from the outlying townships in order to be

closer to the economic opportunities that the CBD offered .

overcrowding, especially in high-density areas like hillbrow, coupled with

inadequate maintenance, saw more and more buildings fall into a state

of disrepair . A number of institutions, including the Johannesburg stock

Exchange, have subsequently moved their headquarters away from the

city centre .

DoiNG BUsiNEssiN GAUtENG

Year: 2001

Unemployed 37 .3% Employed 62 .7%

Year: 2007

Unemployed 29 .6% Employed 70 .4%

the Nelson Mandela Bridge – one of Johannesburg’s most-loved landmarks

– links the CBD and Braamfontein . it was built using about

100 tonnes of Anglo American stay cable strand . .

(Source: Provide Project, 2009)

Sectoral contributions to GDP2007 (%)

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Employment profile of Gauteng Province

A histoRyof fiRsts


Crime remains a deterrent for business particularly in the inner city, as borne

out by the satisfaction ratings figures for 2005-2007, which show that only

16% of the respondents feel that the inner city is safe .

Johannesburg is a sprawling and dispersed city that still lacks a convenient

public transportation system, and as a result it is geared towards private

motorists .

A significant number of the city’s residents are dependent on the city’s

informal minibus taxi system to get to work from the outlying townships .

some efforts have been made to provide improved transport with the

development of the Gautrain and Rea Vaya Bus Rapid transit system, but the

transport infrastructure remains an issue . the informal taxi system upon

which many Anglo American employees depend also poses a challenge in

that it does not adhere to the required safety standards .

At the same time, however, the effects of the financial crisis on the province

mirror that of the country, and Gauteng has also shed more jobs relative to

the rest of south Africa .

the graphs and table on this page indicate that while the percentage of

employment has increased over the last few years, both in Johannesburg and

the province as a whole, gender and race inequalities still exist .

Business and community challenges

the businesses and communities in Johannesburg and Gauteng site a number

of challenges to working and living in this region . Besides general market

conditions, issues such as transport, a lack of skills and crime feature at the top

of the list . this is according to a survey conducted during 2009 on behalf of

the Gauteng Department of Economic Development . Anglo American was

one of the large corporations interviewed as part of this process .

Provincial population by municipal region

City of Johannesburg 37 .20%sedibeng 7 .66%Metsweding 1 .47%

West Rand 5 .16%Ekurhuleni 26 .06%City of tshwane 22 .45%

Racial structure of City of Johannesburg population

African 76% indian 3% Coloured 5% White 16 %

Main challenges of doing business in Gauteng(% of respondents)

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Transport infrastructure challenges(% of respondents)

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informal traders sell their goods in the

Johannesburg city centre .


Unemployment profile of City of Johannesburg

MEN WOMEN2000 2007 2000 2007

Black 33 .1% 27 .1% 44 .8% 38 .1%

White 7 .1% 6 .5% 9 .7% 7 .4%

Coloured 29 .1% 30 .2% 35 .2% 32 .7%

indian 14 .0% 9 .3% 22 .7% 14 .0%TOTAL 27.9% 23.8% 38.0% 33.3%

A histoRyof fiRsts


Satisfaction ratings – households and business

A comparison of the household and business satisfaction ratings for the City

of Johannesburg (see table below) indicates a drop in satisfaction across

the board between 2005 and 2006, with a slight but distinct upswing in a

number of areas by the end of 2007 . it also shows the following:

• GeneralhouseholdperceptionsoftheCityofJohannesburg(intermsof

current service delivery, levels of improvement and general confidence)

have dropped consistently over the past few years, while business

satisfaction saw a slight but overall improvement in 2007 .

• Amonghouseholds,unemploymentandHIV/AIDSremainedthe

top challenges, with crime and healthcare creeping up the ranks . for

businesses, crime topped unemployment as the primary concern in 2006 .

continued on page 20

Household and business satisfaction ratings for the City of Johannesburg, 2005-2007

Service/priority MeasureHouseholds Businesses

2005 2006 2007 2005 2006 2007General perception of the cityCurrent service delivery performance % good and very good 53 .8 45 .8 43 .6 57 .9 40 .5 49 .6

Change in service performance levels %improved/improvedsignificantly 51 .4 44 .0 39 .0 50 .3 31 .3 37 .1

Confidence in Johannesburg as a city % fairly and very confident 60 .0 60 .4 53 .0 63 .1 50 .8 52 .3

future challenges and priorities

Unemployment Priority 1-5 1 1 1 1 2 –HIV/AIDS 2 3 2 3 – –housing 3 4 5 4 4 –Crime 4 2 3 2 1 –healthcare 5 5 4 – 5 –Corruption 6 6 6 5 3 –Satisfaction with basic household/business servicesElectricity Rating out of 10 6 .30 6 .25 5 .96 6 .87 6 .57 6 .89Refuse collection 7 .40 6 .97 4 .95 7 .79 7 .03 7 .81Neighbourhood streets 6 .28 5 .65 5 .68 6 .55 5 .73 6 .40sanitation 7 .21 6 .85 5 .68 6 .55 5 .73 6 .40stormwater 6 .26 5 .57 5 .30 6 .82 6 .19 7 .13street lights 5 .92 5 .78 5 .30 6 .82 6 .19 7 .13Water provision 7 .49 7 .50 7 .05 8 .02 7 .66 8 .07Municipal community servicesRoad maintenance Rating out of 10 6 .44 6 .01 6 .40 6 .07 5 .62 6 .35Government-provided housing 5 .91 6 .24 5 .37 – – –street sweeping and litter control 5 .97 5 .50 6 .22 5 .64 5 .68 6 .12traffic lights 6 .61 6 .91 6 .99 6 .27 6 .44 6 .61

Service/priority MeasureHouseholds Businesses

2005 2006 2007 2005 2006 2007Municipal community services (continued)Communityhalls/recreationcentres Rating out of 10 7 .00 7 .18 7 .39 – – –fire and ambulance services 6 .75 6 .63 6 .50 6 .29 6 .51 6 .68Municipal bus service 6 .15 7 .17 7 .11 6 .87 5 .68 6 .68Municipal clinics 6 .16 5 .84 5 .96 – – –Parks 6 .33 6 .36 6 .89 – – –Pedestrian walkways 6 .07 5 .65 5 .61 – – –Public libraries 6 .92 7 .39 7 .14 – – –Public sport facilities 6 .57 6 .55 6 .65 – – –Public toilets 5 .69 6 .14 6 .14 6 .23 5 .62 7 .08Public safety perceptionssafe to live in the city % safe and very safe 42 .0 32 .5 24 .3 – – –safe after dark 16 .7 10 .9 13 .1 – – –safe in own neighbourhood 49 .5 40 .7 43 .7 – – –safe in inner city 34 .2 23 .5 16 .3 – – –safe to do business where located – – – 58 .4 55 .7 49 .3safe top do business in city – – – 47 .3 20 .4 31 .6safety of workers in workplace – – – 68 .9 68 .8 64 .8Safetotravel/walktowork – – – 53 .0 47 .9 42 .3Law enforcement and safety servicesBuilding control Rating out of 10 7 .08 6 .83 6 .85 7 .34 6 .58 7 .19Control of illegal squatting in buildings 6 .97 6 .16 6 .87 7 .16 5 .94 6 .87Control of illegal street trading 6 .91 6 .13 6 .54 6 .41 5 .71 6 .61traffic control 7 .24 6 .92 6 .69 6 .57 6 .43 6 .14Crime prevention – – 6 .11 – – 5 .69By-law enforcement – – 6 .80 – – 8 .40Communication

Effectiveness of City of Johannesburg

communication with households and

business

Rating out of 10

5 .16 4 .59 5 .65 4 .97 3 .71 5 .09


Commuters queue to take a bus trip on the first day of the Bus Rapid transit

(BRt) system in Johannesburg, August 2009 . the public transport system is

designed to link buses, taxis and trains to improve public transport in the city .

A histoRyof fiRsts


it requires boldness and creativity and perhaps a fundamental change in the

planning approach towards actively directing spatial development, rather than

merely facilitating it .

5. Sustainability and environmental justiceJohannesburg must become a more “sustainable city” by anticipating and

managing the effects of environmental change . this means limiting the

environmental impact of urban production and consumption by adopting

more sustainable practices .

it also means ensuring that poorer communities do not bear the brunt of

urban-environmental risks and disasters, and improving quality of life by

extending “green” infrastructures to areas that have historically functioned as

grey, featureless dormitory townships .

6. Innovative governance solutionsthe worldwide long-term trend is for citizens and stakeholders to demand

more of their governments, while contributing less to the public purse .

Efficiency improvements are critical, but will only be part of the long-term

solution .

it is recognised that the development challenges facing the city cannot

be met alone, and Johannesburg is committed to finding joint solutions

by working closely with citizens, communities, business, all spheres of

government and interested stakeholders .

Reviving the inner city

As the JCo and many other mining houses and financial institutions are still

situated in Johannesburg’s central business district, these have the potential

to contribute to the municipality’s efforts to regenerate the city centre

following the exodus of companies in the 1980s and 1990s .

this is one of the major focus areas of the municipality’s integrated

DevelopmentPlanfor2009/2010.Asevidenceofthis,thelevelof

investment in the city centre between 2001 and 2006 reached about

R9 billion and it is expected that that an extra R10 billion will have been

invested by the end of 2010 .

the driving force behind this revival is the development of the inner City

Regeneration Charter . this document was created through a consultation

process that included stakeholders from businesses, government and civil

society who operate in the inner city .

the Charter encapsulates the following vision for the future of the inner city:

• Itwillbedevelopedinabalancedwayinordertoaccommodateall

people and interests .

• ItwillremainthevibrantbusinessheartofJohannesburgasawhole,while

balancing future commercial, retail and light manufacturing development

with a large increase in residential density .

• Theinnercitywillnotbeadormitoryforthepoororanexclusiveenclave

of loft apartments, galleries and coffee shops . Rather, it will function as

a key residential node where a diverse range of people from different

income groups and backgrounds can have their residential needs met .

• ItwillbeafirstentrypointintoJohannesburg,butalsoaplacewhere

people want to live because it offers a high-quality urban environment

with available social and educational facilities, generous public open spaces,

and ample entertainment opportunities .

• ItwillserveasthekeytransportationtransitpointfortheentireGauteng

region, as well as a destination point where people feel free and safe

to walk in the streets . Prevailing urban management, safety and security

concerns will be a thing of the past .

continued from page 18

• Householdsatisfactionlevelsrelatingtoallservices(includingelectricity,

sanitation, refuse collection, water provision and street lights) have

dropped year on year, in terms of satisfaction . for businesses, however, the

average levels picked up across the board in 2007 .

• Householdratingsonmunicipalcommunityserviceshavegenerally

improved over the years except in a couple of vital areas, namely fire and

ambulance, municipal clinics and pedestrian walkways .

• Perceptionsofsafety(intermsofdoingbusinessinJohannesburg,the

safety of people at work and while travelling to and from their means

of transport) have worsened across the board, with one or two minor

exceptions .

• Householdratingsforlawenforcementandsafetyservicesappeartohave

improved marginally between 2006 and 2007 . Businesses showed a slightly

stronger upswing .

• Perceptionsofcommunicationeffectivenesshaveimprovedconsiderably

between 2006 and 2007 for both households and businesses .

As is found in many metropolitan areas, healthcare, housing, employment

and other infrastructural issues remain a concern, even though Johannesburg

and Gauteng are relatively well off in terms of these services compared with

the rest of south Africa . this is most likely due to the high levels of income

inequality that exist within Johannesburg and the wider Gauteng . it also

reflects differing access to services .

Priority development areas

Johannesburg’s development is guided by two key documents:

• TheCityofJohannesburgGrowthandDevelopmentStrategy,2006-2011

• TheCityofJohannesburgIntegratedDevelopmentPlan,2009/2010

the Growth and Development strategy sets out the following six core

development principles which will inform the strategy for the city until 2011:

1. Proactive absorption of the poorAlthough the city remains a magnet for opportunity seekers, it acknowledges

that the needs of the poor must be prioritised . this includes new internal and

circular migrants, those in hostels, informal settlements and historical ghettoes,

youth and refugees .

Actions include helping them to access to basic livelihoods, build a core of

assets, master the demands of urban life, gear up for participation in the urban

economy and negotiate the costs of urban living .

2. Balanced and shared growthhistorically, Johannesburg’s relatively quick economic growth is based on

commodity exports and is reliant on low input costs and wages . While the

city must continue to keep the cost of doing business as low as possible, the

structural dynamic must change if all residents are to enjoy the fruits of this

growth .

in a future local economy, the city will work to ensure that the rate of

economic growth is driven by the imperative to share the benefits thereof .

3. Improved social mobility and reduced inequalityAs a post-apartheid city, Johannesburg has an obligation to enable the poor

to aspire to rapid social mobility through shared growth and other measures .

A bigger middle stratum of society is essential for expanding the domestic

economic market and thereby encouraging investment and increased social

stability . in turn this will help to create a pool of savers, risk-takers and

investors in human capital, from which derives future productivity .

4. Settlement restructuringinstitutional transformation must now be followed by spatial transformation .

this means bringing jobs closer to people and people closer to jobs .

Gandhi square, in downtown Johannesburg, was so named in 1999

to commemorate Mahatma Gandhi’s role in the fight for equal rights

during the apartheid years . the square was originally the site of the

first courthouse in Johannesburg, built in 1893 .

DoiNG BUsiNEssiN GAUtENGA histoRy

of fiRsts


JCO CONT RIBUTIONTO ECONOM Y AND CSI INITIATIVES

An evolving society …

in its early days, Johannesburg was largely populated by – and designed for – men . the first cricket club was formed in November 1886, just two months after the town was established, and south Africa won its first test match in 1906, against Britain .

the first association football club was the Alpha, formed in 1887, and the golfers weren’t far behind . the first golf club was formed on 4 November 1890 .

the first “moving picture” shown in south Africa was at the Grand National hotel in Johannesburg on 4 April 1895 . films were also shown in henwood’s Arcade, between Pritchard and President streets, as well as at the Apollo theatre in Pritchard street .

the current economic, social and community activities of the JCo show its commitment to the continuing development of Johannesburg and the wider Gauteng Province .

the following pages outline some of the positive socio-economic impacts that the JCo has had on the inner city, Johannesburg and south Africa as a whole .

it also illustrates some of the benefits that the Johannesburg and Crown Mines campuses have brought to the surrounding environment and local communities .

Opposite: Miners take a break underground in an early Johannesburg gold mine .

Above: A young child enjoys lunch in Pimville, thanks to the African Children’s

feeding scheme, an Anglo American Chairman’s fund initiative .

A HISTORYOF FIRSTS

FIRSTCoMMUNity DEVEL oPMENt


As shown in the pie charts below, men still comprise the bulk of employees

(as is the case in the wider mining industry) . Nevertheless, the 34% portion

of JCo employees who are female is well above the 10% target for women

in mining that is stipulated by the Department of Mineral Resources .

in order to properly understand the total employment impact of the jobs

at the JCo some assumptions need to be made regarding the industry

employment multipliers that are normally used in this sort of analysis [hodge

(1998), stillwell et al . (2000) and Pollin et al . (2006)] . since the JCo is not a

mine, this report uses the Business services employment multiplier (a value

of 2 .5), which closely relates the types of services and employment patterns

of a typical multinational’s regional office . Using this multiplier, the calculation

of total employment impact is as follows:

Direct JCo employment: 1,803

indirect and induced employment: 4,507 (1,803 x 2 .5)

Total employment: 6,310


the JCo’s main contribution to the national economy is through the

payment of various taxes . since Anglo American plc adheres to the

Extractive industries transparency initiative, it is required to report on these

taxes accordingly .

Employment

the Johannesburg and Crown Mines campuses together employ a total of

1,803 permanent employees (1,591 and 212 employees on each campus

respectively) .

JCo CoNtRiBUtioNto ECoNoMy AND Csi iNitiAtiVEs

While many other corporates have moved out of the inner city,

Anglo American has not . the company firmly believes in the future of the

city centre and its strength as the financial hub of the southern hemisphere .

Gender breakdown of employees

Male 66% female 34%

Race breakdown of employees

African 33% indian 7% Coloured 5% White 55%

Taxes paid by JCO (R ’000)

Current tax charge in the income statement 163,505

Corporate tax 163,505

Withholding tax 0

Mining tax 0Other dividend/interest withholding tax 0Transfer duties and stamp duties (22,756)Import/export duties (542)VAT/General Sales Tax

Gross amount of output tax (133,522)

Gross amount of input tax 162,803

irrecoverable element of input tax (20,915)

Net tax borne (2,458)

Net tax collected and remitted (7,914)Turnover taxes 0Royalties 0Employee taxes and social security contributions

Borne by company (15,082)

Incometax/PAYEbornebyindividualsandcollectedandremittedbythecompany (745,063)

other taxes or social security borne by individuals and collected and remitted by the company (1,570)Environmental permits/levies/taxes (189)Other taxes and levies

Borne by company (6,215)

Collected and remitted by company 0Total taxes borne 116,273Total taxes collected (15,699)Total taxes and other payments 100,538

Inner-city regeneration

Unlike the many other Johannesburg corporates that moved from the inner

city to northern suburbs in the 1980s and 1990s, Anglo American retained

its Corporate office at 44 Main street . the company firmly believes in the

future of the city centre and its strength as the financial hub of the southern

hemisphere . As such the JCo has, over the years, launched a number of

initiatives to support inner-city regeneration and complement the strategies

put forward by the municipality for this purpose .

for the inner city to survive and eventually thrive, it has to be a place that

people feel proud to call home and where they feel safe . Anglo American

A histoRyof fiRsts


believes that it can be such a place, and the many projects that the JCo has

supported speak to this conviction .

the JCo initiated one of the first urban regeneration projects in

Johannesburg, which included the creation of a pedestrian promenade

around its office area, known as the Anglo American campus . this project

also involved relocating the well-known “impala stampede” statue from

oppenheimer square to this area .

other inner-city regeneration projects that the JCo has supported are:

• ThesponsorshipoftheannualAfricanChristmasTreePromenadeproject,

which offers local artists an opportunity to showcase their talent . the

event is hosted at the Johannesburg campus and is illuminated in the

evenings for public viewing .

• ThedonationofaneightstoreybuildinginNtemiPilisoStreettothe

Community and individual Development Association (CiDA) campus, and

a R6 million contribution towards its refurbishment .

• AR70millioncontributiontotheR98millionBrickfieldshousingproject

in Newtown . this was done in conjunction with AngloGold Ashanti and

ABsA bank, creating one of the first new residential developments in the

Newtown region .

• Theconstructionofthe42MarshallStreetParkade–aR50million

project built by a BEE company . the previous derelict buildings were

demolished to build the eight-storey parkade, which can hold 942 vehicles .

• OngoingcollaborationbetweentheJCO’sSecurityDepartmentandthe

Johannesburg Metro Police to fight crime in the CBD . in 2009 the JCo

sponsored three computers for the Johannesburg Central police station,

to further support this cause .

The Anglo American Chairman’s Fund

Anglo American is one of the biggest contributors to Corporate social

investment (Csi) in south Africa and the bulk of this support is delivered

through the work of the Anglo American Chairman’s fund (AACf) . Much

like the JCo, the history of the AACf is tied to the history of Johannesburg,

although it supports programmes throughout south Africa in various sectors .

the AACf has a history that dates back to at least the late 1950s, when sir

Ernest oppenheimer said that “… the purpose of the company is to make

profits for its shareholders, but to do so in a way that makes a real and lasting

contribution to the countries and communities in which it operates …”

in the Anglo American 1973 Chairman’s statement, harry oppenheimer

described the work of the then Group Chairman’s fund as follows:

“the policy of our Group has always been to support, on a substantial scale,

charitable causes both in the narrow sense and in the broader fields of

education, culture and social services . We believe that our policy is justified

on sound business principles . the major companies of our Group do not

distribute all their profits to their shareholders; they retain a substantial

proportion for re-investment in order to secure the long-term future of the

enterprise . it seems both logical and sensible, therefore, that we should also

invest a further part of our profits in endeavouring to conserve and improve

the social environment in which we shall operate in the future .”

the fund’s most notable monument is the Mangosothu technikon – the

first facility to provide advanced technical training for black students in the

country’s industrial heartland . it is now part of the fabric of higher education,

and few probably remember its origins as a privately funded venture,

supported by the Anglo American and De Beers Chairman’s funds .

other firsts included the teacher training College in soweto, and several

schools that pioneered models of multiracial or accelerated education far

ahead of their time, such as the schools of the Resurrection in Johannesburg

(R50 million in current money) .

the current fund was born in 1998 following the restructuring of the

Anglo American group of companies and the subsequent formation of the

Anglo American Chairman’s fund, the De Beers fund and the AngloGold

fund . Rather than lose the vast experience and expertise that has been

“the reason for undertaking … social responsibility projects is not to obtain goodwill or credit or publicity, but to

produce an actual beneficial social result .”

Former Head of the Anglo American Chairman’s Fund, the late Michael O’Dowd


CASE STUDY: Building quality of life, brick by brickThe R98 million Brickfields project in Newtown, Johannesburg is the largest ever public-private housing partnership in South Africa. Situated at the foot of the Mandela Bridge, these residential buildings are a distinct reminder of the swift transformation of this once-dilapidated area into a vibrant cultural and tourism centre.

Newtown “grew up” in the latter part of the 19th century and became known as Brickfields because the local clays along the Fordsburg Spruit were used to make bricks. By 1890 Brickfields was a full-blown shantytown. It was eventually razed to the ground and acquired by the local council. This site was later bought by the Post Office. Development never occurred and it was left empty for many years.

The new Brickfields development that has risen from this vacant site is the first such residential development in the inner city of Johannesburg in 30 years. Initial funding came the Gauteng Housing Department and the Gauteng Partnership Fund, who provided R35 million. The City of Johannesburg provided the land and the National Housing Finance Corporation injected R25 million. Anglo American, ABSA and AngloGold provided a combined R70 million.

The residential units offer 650 one- to three-bedroom flats catering for a range of income groups. They also include retail facilities and support services such as information technology rooms and crèches for children living in the complex.

Co-funded by Anglo American, the Brickfields housing project is a distinct

reminder of the swift transformation of the once-dilapidated

Newtown area into a vibrant, cultural, tourism centre .

A histoRyof fiRsts


built up since 1974 in particular, it was decided that the former Chairman’s

fund team would form a section 21 company to continue to manage

and guide the three new funds . so was born tshikululu social investments

(tshikululu now also administers the Csi funds of clients in addition to

those from the Anglo American stable) .

the AACf has been honoured for eight years running in the annual trialogue

survey of non-governmental organisation (NGo) perceptions as south

Africa’s ”best grantmaker” out of more than 70 corporates . that this survey

has now changed “grantmaking” to “excellence in Csi” (and still with the

AACf in first place) speaks to the deepening understanding of what the

fund’s work encompasses .

Enterprise development in Gauteng

since its establishment in 1989, Anglo Zimele (the company’s small and

medium enterprise development and empowerment initiative) has built up

a proud track record of successful investments into black-owned small and

medium-sized businesses across a variety of industries .

“the Chairman’s fund is no slavish follower of fashion which dictates what kind of

NGo will find favour at a given time . its policies of diversity of donation and its support of breakthrough initiatives to

self sustainability have enabled the fund to serve as a catalyst for a wide range of innovative and far-reaching interventions

in social upliftment” .

Former Anglo American Chairman, Julian Ogilvie Thompson, December 1996

it operates three separate funds – the supply Chain fund, the Anglo Khula

Mining fund and the recently established small Business start-up fund .

Allthreeoperateonacommercialbasis,providingequity/loans,mentoring

and access to value-enhancing opportunities, as well as hands-on support

and strategic input in areas such as corporate governance, management,

legal, accounting, company secretarial, public relations, safety, health and the

environment .

in 2008, some 228 businesses together received R186 million in investment

through Anglo Zimele . this translated into jobs for nearly 10,400 people

and a collective turnover of more than R1 .3 billion – a 30% growth on the

previous year .

in just two years the fledgling small Business start-Up fund has approved

179 loan transactions worth more than R52 million . since october 2008, the

fund has effectively approved a new transaction every day .

of the entrepreneurs benefiting from the small Business start-Up fund,

40% are women and 34% are youth (18 to 35 years old) .

the Anglo Zimele model is unique in the way it grants access to markets,

skills transfer and capacity building for start-up businesses .

this strategic combination of financial support and incubator-style

mentorship has since been adopted by the international finance

Corporation (a member of the World Bank Group) and the United Nations

Development Programme, as well as local companies including sasol, Mondi

south Africa and Barloworld .


CASE STUDY: African Children’s feeding scheme

The African Children’s Feeding Scheme (ACFS) tackles malnutrition by supplying monthly food parcels to around 8,000 people. It also supplies daily meals through a series of feeding committees to around 18,000 needy children and orphans who have been left out of the government’s feeding scheme. It supports 12 mothers’ clubs, 13 feeding centres, five mobile vans and six tri-cars in Soweto, the East Rand and Alexandra.

Supported by the Anglo American Chairman’s Fund, the organisation also runs HIV/AIDS programmes and women’s clubs to develop the skills of unemployed women in the areas where their centres are located. Most recently, the ACFS approached the Chairman’s Fund for financial assistance with the renovation of the nine feeding centres in Soweto, East Rand and Alexandra, to meet the standards set by Department of Health for Feeding Centres.

CASE STUDY: the Bold and the BeautifulThe name of Thandi Khumalo’s funeral home, “The Bold and the Beautiful”, reflects the quirkiness, energy and entrepreneurial spirit of its owner.

Based in the Vaal Triangle, this business provides professional services like funeral schemes, catering and tombstone unveiling ceremonies. It also assists local municipalities with pauper burials.

Thandi approached the Anglo Zimele Small Business Hub in the Vaal Triangle, in conjunction with Anglo Coal, in November 2008 seeking

financial assistance to expand her business. A loan of R346 000 was approved and used to purchase equipment, a hearse and a cold room for the business.

To date the business has grown its turnover steadily, and recently won the best SME award in the area of Soft Services, for the service of Funeral Directors 2009 in the Vaal Triangle. This award includes a R10,000 cash injection for the business as well as a value management programme valued at R27,500 sponsored by Sedibeng Brewery and The Centre for Applied Management Science.

thandi Khumalo’s funeral home, named the Bold and the Beautiful,

is one of the many success stories to emerge from

Anglo Zimele’s small Business hub in the Vaal triangle .

A histoRyof fiRsts

CASE STUDY: Lawrence sibisi’s soup KitchenJCO security guard, Lawrence Sibisi, is the kind of man who wouldn’t hesitate to stop and help someone in need. But in June 2000, this good deed nearly ended his life, when the very person he was trying to assist shot him six times in the chest.

Horrified members of the Nomzamo Park informal settlement in Soweto rushed to his aid and took him to a nearby clinic. Miraculously, Lawrence survived and made a complete recovery.

He was so touched by the help from this impoverished community that he decided to start a self-funded soup kitchen once a month for the children in the area. He ran this kitchen by himself until 2004, when some of the other JCO employees heard about the project and offered to join in. This became the first formal volunteer project at the JCO. Today, staff volunteer their time once a month on a Saturday morning to assist Lawrence at the soup kitchen, and the Security Department

provides transport to Nomzamo Park each week. Volunteers have since started various other initiatives to help the people of the community, including: • growing vegetable gardens;• AIDS education;• crèche donations;• blood pressure tests;• sugar tests;• stove exchanges;• blanket drives;• clothing drives; and• tree planting.

Currently, this dedicated group of volunteers is looking into developing a library for the people of the community, given their low level of access to this type of service.


JCO Volunteering

the JCo has an informal volunteering programme that, over the past five

years, has made an ongoing difference in the lives of people in and around

Johannesburg .

initially the programme focused on three project areas: a soup kitchen, an

HIV/AiDs project and an old age and frail care support service . in 2009 the

programme renamed itself and is now known as the thuthuka Employee

Volunteering Programme .

thuthuka, an isiZulu word meaning to grow or progress, is indicative

of the programme’s objective, which seeks to involve Anglo American

employees in developing sustainable communities and projects in the wider

Johannesburg area .


funded by the Anglo American Chairman’s fund, the Alexandra Education

Committee provides bursaries and supplementary tuition for learners .

teacher Bernadine Busse is seen above at a saturday class at highland’s North

Boys high . in 2008 the Anglo American Chairman’s fund spent a total of

R76 .8 million supporting more than 250 Csi projects across south Africa .

CASE STUDY: sophie’s house of hair, Nails & BodyFor Sophie Rupnarain, the establishment of a beauty and wellness centre near the JCO was a logical extension of the many other services already provided to employees on the campus. It was also an opportunity she didn’t intend to miss.

“As an employee of Anglo American for a number of years, my research found that almost all of the employees who have regular hair and beauty treatments prefer to have them done during their lunch breaks,” she explains.

“I also found that most working mothers preferred this to spending time in a beauty salon over the weekend. Since many employees work

flexi hours, I realised that this could be any time during business hours, and so the idea for Sophie’s House of Hair, Nails & Body, situated at the Ashanti Hotel in Anderson Street, was born.”

Sophie approached Anglo Zimele for assistance, and they provided R240,000 in start-up funding. She attended various training sessions and became involved in every aspect of the business.

“We have conducted extensive research into products and equipment and have now diversified into other areas within the health, beauty and wellness portfolio. We have been operational for six months and have resolved our teething problems. We are optimistic about future growth.”

A histoRyof fiRsts

the AACf supports numerous large programmes delivering social services in Gauteng . the major sectors supported match the funding spread of the AACf nationally,witheducation,HIV/AIDSandwelfare receiving the largest portion .


Most of the world’s great cities were founded close to plentiful water supplies – except for Johannesburg.

to avoid the mushrooming of illegal mining, Paul Kruger’s government needed to create a village that was close to the gold reef, but that did not seem to have any likely prospects for gold itself . Randjeslaagte – tucked between the three farms of Braamfontein, Doornfontein and turffontein – was barren, stony, not owned and not wanted . it seemed perfect for the job .

Jessie McPherson was the city’s first and only woman mayor, in office from 1945 to 1946 . she arrived in the city as a two-year-old in 1903, and joined the labour party in 1928 . in 1939 she won the Rosettenville seat in the city council and was appointed mayor in 1945 . she left for Britain in 1978, and lived there until she passed away .

Mary fitzgerald was Johannesburg’s first woman trade unionist – as well as its first woman printer and first woman city councillor . she became the first woman to hold public office in Johannesburg in November 1915, at a time when women did not have the vote in south Africa . in 1939, the City Council approved the naming of the market square in Newtown as Mary fitzgerald square, but it was only in 1986 that the renaming actually took place .

the JCo’s role in the city’s development is integrally tied to the many complex relationships that it nurtures with stakeholders, from employees and those who receive funding and

strategic advice, to those who supply the JCo with goods and services, as well as those who share their facilities, skills and expertise for the greater benefit of the city .

these stakeholders are in an ideal position to provide a fresh perspective on the impacts of their involvement with the JCo, and its presence in the inner city .

the following pages contain the summarised information that resulted from extensive discussions and focus groups with these stakeholders .

Opposite: A city park in central Johannesburg in the mid 1900s .

Above: Pedestrians walk past a series of fast-food outlets in the CBD .

A HISTORYOF FIRSTS

IMPACTS

FIRSTsERViCEs


Positive impacts identified during stakeholder engagement

Issue / impact Discussion Stakeholder groupCareer development and managementDesirable place to work Anglo American is a reputable company and treats its

employees well . this has led to it becoming one of the

most desirable places to work .

JCo employees and senior management employees

Health and safetyhigh standards Anglo American’s Zero harm strategy and strict

implementation of health and safety practices is

perceived to be an indication that the company cares .

health and safety is targeted from many angles .

JCo and senior management employees, suppliers, Anglo

American Zimele companies, neighbours

Good practice filters into other work

and home situations

Anglo American’s strict enforcement of health and safety

rules has instilled good practice habits in all those involved .

it is said that these practices are also being applied outside

the company in homes and other businesses .

JCo employees, suppliers, Anglo Zimele companies

hazardous chemicals Anglo Research’s conscious decision to reduce the

storage of hazardous chemicals is recognised and

appreciated .

Anglo Research neighbours

CommunicationGeneral communication the type, frequency and nature of communication varies

depending on the stakeholder group . overall, this is

perceived to be appropriate .

JCo employees, suppliers, Anglo Zimele companies,

neighbours

Transformation and change managementsmall business development Anglo American’s contributions towards empowering

small businesses and non-profit organisations are seen as

significant in terms of addressing transformation in

south Africa .

JCo employees and senior management employees,

suppliers, Anglo Zimele companies, neighbours

in addition to the discussions summarised in the following tables, the

JCo obtained qualitative input from representatives at the Johannesburg

municipality’s trade and industry division . this included one of the chief

economists and the trade and industry director .

While neither interviewees were aware of a working relationship between

the municipality and the JCo, they did recognise that the JCo’s presence in

the CBD can be seen as positive, and identified two key areas in which the

organisations can work together:

1. Communication and interaction: it was noted that the municipality did

not fully understand the structures within Anglo American, and that the same

probably applied to Anglo American’s understanding of the municipality .

it is felt that the JCo and the municipality share many of the same objectives

and support the same goals, such as skills development and training, support

for sMEs and economic development . therefore a lot could be achieved by

synchronising these objectives and improving interaction and communication

between the two organisations through regular meetings or a forum .

2. Training, capacity building and business assistance: the municipality feels

that the JCo has a role to play with regard to skills development and sharing

in the city, given that there are highly skilled and experienced employees

vested within the JCo .

the municipality is seeking to create a skills hub within the city and feels

that the JCo could assist with this, as well as benefit from the greater skills

pool that it would create . it was also suggested that the JCo establish

an internship programme . the municipality could assist with identifying

appropriate candidates from the region .

the Johannesburg municipality’s current objectives include:

• diversifyingtheeconomyofthecity;

• creatinganenvironmentthatattractsavarietyofskills;

• reducingthecostofcommunication;

• creatingemployment;

• reducingpoverty;and

• promotingsustainablegrowth.

these goals are in line with national government targets of 6% growth

in GDP by 2014, and (to support this) a 9% growth rate within the

Johannesburg municipality .

through a closer working partnership with the municipal team, the JCo has

the potential to contribute to this growth in a practical and sustainable manner .

Please see opposite the detailed feedback on impacts, based on the stakeholder

engagement process.

iMPACts

seen here are the participants in City year south Africa,

a non-profit organisation . this national youth service

movement provides leadership development, community

service and skills training to young south African volunteers .

A histoRyof fiRsts


Issue / impact Discussion Stakeholder groupTransformation and change management (continued)transformation committees transformation committees are in place to address

issues that arise in the workplace . staff are able

to give their input via suggestion boxes if they are

uncomfortable raising issues via other channels .

JCo employees (Anglo Research)

Training and capacity buildingGeneral training Stakeholdersfeeltheyhavelearnttheformal/“rightway”

to do business through their interactions with Anglo

American . these have been both formal and informal

interactions .

stakeholders have benefited through on-the-job training

provided by Anglo American (for example, in health and

safety, governance and quality systems) .

Anglo Zimele companies, suppliers

Anglo Zimele companies, suppliers

ongoing support and development Anglo American provides ongoing support and guidance

to the Anglo Zimele companies through involvement as

board members . it also assists when specific needs have

been raised (for example, in labour disputes and when

marketing support is needed) .

Anglo Zimele companies

Client relationsExcellent relationships with suppliers Anglo American is regarded as the best and nicest client

to work with, and is said to work in partnership with its

suppliers .

Anglo American is efficient and timely in payments .

Anglo American is open and welcoming of new ideas

and suggestions .

Anglo American is available and approachable .

suppliers

suppliers

suppliers

suppliers

Issue / impact Discussion Stakeholder groupBusiness assistanceGeneral business assistance Anglo American provides assistance to companies when

it is needed .


Working with Anglo American has resulted in a changed

business culture, to one that is more formal .

Anglo Zimele companies, suppliers, Anglo American

Chairman’s fund beneficiaries

Community support Anglo American Chairman’s fund is noted as being one

of the few donor organisations to offer core funding that

is stable and regular .

Anglo American Chairman’s fund beneficiaries

in general, Anglo American Chairman’s fund facilitates

the growth and sustainability of non-profit organisations

through enabling policies and practices .


Anglo American is one donor that provides funding for

unspecified purposes . this serves to “fill the gaps” in the

funding received from other donors .


Business opportunitiesAnglo American’s influence having Anglo American as a reference or client is

advantageous in securing work with other companies

because it is well respected and credible . this

relationship adds credibility to the companies .

suppliers, Anglo Zimele companies, Anglo American

Chairman’s fund beneficiaries

increased opportunities Anglo Zimele beneficiaries noted that they have been

able to tap into bigger and new markets as a result of

their partnership with the appropriate BEE company .


Anglo American’s involvement in the communityRevitalisation and renewal of the city

centre

Anglo American has been involved in the revitalisation

and renewal of the city centre through a range of

projects and community activities . the aim has been to

bring life back into the city centre .

Anglo Zimele companies, Anglo American Chairman’s

fund beneficiaries, JCo employees

iMPACts

JulietPhalane,apatientatLeratongHospiceinSouthAfrica,beadsHIV/AiDs

awarenessribbons.TheAngloAmericanGroupmanagesthelargestHIV/AiDs

workplace counselling, testing and treatment programme in the world .

A histoRyof fiRsts


Issue / impact Discussion Stakeholder groupAnglo American’s involvement in the community (continued)Crime reduction the presence of Anglo American’s security personnel

surrounding the campus has helped to reduce crime .

JCo employees, neighbours, security staff, senior

management

Visual impact the JCo campus is well maintained and aesthetically

pleasing for the surrounding community . this has

motivated neighbouring property owners and businesses

to improve and maintain their properties, in turn

contributing to the urban renewal of the city centre .

JCo employees, neighbours

Challenges identified and requests for further assistance identified during stakeholder engagement

Issue / impact Discussion Stakeholder groupEmployee benefitsJCo campus is a “closed community” the existence of the canteen and other such facilities

removes the need for employees to leave the JCo

campus . this means that people stay at work all day

without taking proper breaks, which contributes towards

apoorwork/lifebalance.

JCo senior management

Employees do not have to leave the campus and as

such do not contribute towards the local economy by

spending their disposable income .


Business assistancestrategic advice and assistance Anglo Zimele beneficiaries feel that they receive

support and advice from Anglo Zimele . however, some

anticipated that they would receive more strategic

business advice .


Anglo Zimele should make use of existing internal

networks and resources to provide better business

assistance .

Anglo Zimele companies, JCo senior management

Issue / impact Discussion Stakeholder groupBusiness assistance (continued)Advertising policy the JCo prohibits advertising on the campus; the only

advertising portal is the source (intranet) . this is often

not effective due to bottlenecks in the system, slowing

the uploading of advertising .


Use of the Anglo American logo Anglo Zimele beneficiaries felt that the use of the Anglo

American logo on their marketing materials could boost

their company profile and credibility .


share skills and knowledge Neighbouring section 21 companies would like to form

partnerships with Anglo American in order to offer their

clients (beneficiaries) access to coaching and mentoring

opportunities from the company .

JCo neighbours (section 21 companies)

the section 21 companies believe that they can offer

Anglo American support in delivering Anglo American’s

corporate social responsibility policies and programmes .

JCo neighbours (section 21 companies)

Business opportunitiesLack of buy-in to the Anglo Zimele

model

there should be more interaction between Anglo

Zimele and other departments in delivering on its

objectives (for example, the procurement department) .

JCo senior management, Anglo Zimele companies

Impact on surrounding environmenttraffic congestion All employees enter and exit the parking garages at the

same points . this, in combination with the inflexible

working hours, contributes to the traffic congestion

during peak hours .


iMPACts

traders ply their wares outside the Market theatre in Newtown . Now a

popular artistic and cultural centre, in the early 1900s Newtown was a hub

of agricultural trade and the producer of much of Johannesburg’s electricity .

A histoRyof fiRsts


Issue / impact Discussion Stakeholder groupImpact on surrounding environment (continued)Parking shortage Anglo American uses all the parking in the areas

surrounding the campus . this is “squeezing” other

people out, as parking and space are limited .

JCo neighbours

Health and safetystringent health and safety standards health and safety practices are costly and time-

consuming for suppliers to follow .

suppliers

Personal Protective Equipment (PPE) some suppliers feel it is unnecessary for personnel to

make use of full PPE for every job .

suppliers

health and safety induction During training the video used is only relevant to the

mining operations .

suppliers and JCo employees

health and safety rules are often given verbally and there

is no consolidated list available . As such rules may be

forgotten or misinterpreted .

suppliers

safety in the broader community Anglo Research neighbours are concerned about the

general safety of employees and other people, as there

have been some muggings in the surrounding area .

JCo senior management, Anglo Research neighbours

Continuing crime Although there has been a marked decrease in crime

surrounding the campus, it does still exist .


Communication structure of Anglo American the structure of Anglo American is confusing and

difficult for newcomers and outsiders to understand .

this translates into inefficiencies when trying to identify

the correct people or channels of communication .

JCo employees, Anglo Zimele companies, suppliers

Communication with

neighbouring companies

there is a general request for better, less ad hoc

communication between Anglo American and its

neighbours .

JCo neighbours

Issue / impact Discussion Stakeholder groupCommunication between departments there is a general lack of communication between Anglo

American departments, which results in complications

and delays for subcontractors .

suppliers (specifically contractors)

Lack of grievance mechanism stakeholders often find it difficult to deliver critical

feedback to Anglo American .


“One Anglo” conceptCentralised resources the centralisation of resources is problematic and can

cause delays, especially for geographically separate

departments (for example, Anglo Research) .

JCo employees

Processes and procedures Red tape and bureaucracy issues of red tape and bureaucracy have been raised,

and are explained as being caused by the size of Anglo

American (departments, processes and procedures),

which make it hard to obtain quick authorisation .

JCo suppliers

Lengthy and inaccessible application

process

some feel that the application process for Anglo Zimele

companies is lengthy and inaccessible . some businesses

also noted that staff changes at Anglo Zimele had caused

some disruption .


Supporting role to governmentsupport government, where possible Anglo American should advise the government,

particularly with regard to infrastructure, in order

to mitigate risks to the business . Anglo American’s

technology and skills are not being used effectively to

offer solutions and improve government efficiency .

the Johannesburg city centre skyline with a derelict warehouse in the

foreground and new construction taking place in the background .

iMPACtsA histoRyof fiRsts

Anglo American will continue to invest in the Johannesburg CBD and

keep doing the things that many stakeholders say they appreciate and find

valuable . We will do this in a variety of ways, most notably by:

• keepingourcampusasafeandattractiveplaceforstaffandvisitorsalike;

• relentlesslyraisingawarenessoftherisksofHIV/AIDSandofthe

importance of regular testing and early treatment for all employees;

• encouragingemployeestovolunteerinthelocalcommunity;

• introducingamatch-fundingschemetoencourageemployeestomake

charitable donations of their own to good causes;

• supportinglocalcommunitiesthroughtheAngloAmericanChairman’s

fund; and

• buildingthecity’ssmallbusinesssectorthroughAngloZimele.

in addition, the following broad themes and suggested responses will be

implemented in those areas where a desire for improved performance was

evident during the stakeholder discussions and focus groups .

Drummers play in front of the soccer City stadium at the launch of the

football friday initiative at sAfA house in Johannesburg, september 2009 .

the initiative will see south Africans wearing soccer shirts on every friday in

the run-up to, and during, the fifA 2010 World Cup soccer tournament

in June 2010 .

Theme Management response

1. A need to clarify and consolidate certain administrative and support functions within the JCO, as well as to adapt certain tools to make them more applicable to the office environment. Specifically, this could include:

•Updatingthehealthandsafetyinductionvideo,whichiscurrentlyonly

relevant to mining operations .

JCo management will work with Anglo American’s safety teams to improve

safety communications .

•Creatingawrittenlistofcentrallyaccessiblehealthandsafetyrulesfor

suppliers and staff . Many of these rules are often communicated verbally

and are therefore easily forgotten or misunderstood .

•Creatingaclearbusinessstructuredocument,includingcontactnamesand

details, to make it easier for new and existing employees to identify the

correct people and channels of communication within JCo .

As a result of the 2009 restructure, full structure charts for all functions have

been published and are available to all staff .

•Establishingandpromotingaformalconfidentialgrievanceprocedureforall

stakeholders .

As a part of the roll-out of the Anglo social Way (Anglo American’s social

performance management standards) all sites are implementing a standard

stakeholder complaints and grievance procedure during 2010 .

2. A need to put the principles of some of the existing Anglo American programmes (such as support for small businesses, employee wellness and transformation) into practice at the JCO. Specifically, this could include:

•Creatingopportunitiesforsmallbusinessestosupplyservicestothe

Johannesburg campus . Most services (such as the canteen and other

facilities) are currently contained in house, eliminating the need for

employees to leave the campus at any point during the day, or spend any of

their daily disposable income in the surrounding area .

Although this would create business opportunities it may also create

uncertainties for existing Anglo American JCo management employees who

work in these functions . Many services are contracted out and this will be

kept under review . Anglo American will continue to support local sMEs

through Anglo Zimele .


MANAGEMENtREsPoNsE

Theme Management response

3. A need to leverage the already good relationships established with stakeholders in the city centre, to the benefit of employees’ daily lives. Specifically, this could include:

•BecomingmoreactivelyinvolvedwiththeMetropolicetocontinueto

improve crime prevention in the area .

Anglo American’s security Department will continue to work closely with

Metro police and other security providers .

•Developingmorepartnershipswithotherbusinessesoperatingaround

the JCo and Anglo Research, not only to address specific community needs

but also to assist with challenges like traffic congestion around parking areas

(for example, by contracting points men) .

Anglo American’s facilities team at JCo will continue to liaise with outside

stakeholders and will support suitable proposals .

4. An opportunity to apply the principles behind many of our business successes to a far greater extent in the broader community, to the benefit of other businesses and government. Specifically, this could include:

•Usingthecompany’sinfluencetoassistgovernmentandotherdonorswith

theimplementationofgoodbusinessprinciplesandstandardiseddonor/

funding systems and procedures .

Anglo American is very happy to share its experience from the Anglo

American Chairman’s fund and Anglo Zimele, and as noted in this report,

has done so on many occasions . further requests from relevant stakeholders

would be very welcome .

•Proactivelyadvisingandpartneringwithgovernmenttoshareexpertiseand

provide support in priority areas such as energy, transport and education .

Anglo American will develop the volunteering programme on the campus to

encourage more support to local governments .

•Providingmorelong-termstrategicandpracticalsupportforAngloZimele

beneficiaries, for example, assistance with marketing new products and

additional strategic advice as businesses grow .

the support provided to Anglo Zimele businesses is continually reviewed .

Additional support is being examined as part of a planned expansion of

volunteering activities .

•Creatingco-brandedopportunitiesforAngloZimelebeneficiaries,toadd

credibility to their businesses .

We believe it is better for businesses to develop their own trusted brands .

Advice on this is provided by Anglo Zimele . Anglo American is willing to

provide references for high-performing suppliers .

A histoRyof fiRsts


The way we do business

We believe that our objective of providing superior returns to our investors

is best achieved by operating our businesses in a socially and environmentally

responsible way . the following four principles of “Good Citizenship” set

out the standards that guide the conduct of our business . they apply to

everything we do and every part of the world in which we operate .

Business integrity: We are implacably opposed to fraud, corruption,

anti-competitive practices and any activities that could be construed as

giving the Group, its employees or any third-party acting on our behalf, unfair

advantage in any business dealings .

We will not make donations to politicians or political parties, and we support

the Extractive industries transparency initiative, which requires us to report

annually on our tax and royalty payments . We also promote the application

of our principles by those with whom we do business . their willingness to

accept them is an important factor in our decision to enter into, and remain

in, such relationships .

Safety and sustainable development: We believe that robust processes

for managing safety, health, environmental and social issues are essential

to good management practice and a source of competitive advantage . At

Anglo American, these can be summarised as follows:

• OurvisionisZeroHarmtothosewithinandaroundouroperations.We

believe that all injuries and occupational illnesses are preventable .

• Weplanminesfromtheoutsetwithaviewtomanagingthe

environmental and social impacts of decommissioning and closure .

furthermore, we conserve and protect the environment through the

efficient use of natural resources and by minimising waste .

• Wearecommittedtoimprovingtheefficiencyofourenergyuseandto

reducing our greenhouse gas emissions .

•WeoperateacomprehensivepreventionstrategyforHIV/AIDSand

related diseases, linked to voluntary counselling and testing programmes .

We provide treatment for employees with hiV or AiDs, and are

committed to extending this treatment to their dependents, and to

working with partners to strengthen health systems in surrounding

communities .

Employment and labour rights: We are committed to fair labour

practices and our conditions of service comply with applicable laws and

industry standards . furthermore:

• Wepromotediversityanddonottolerateunfairdiscriminationorthe

inhumane treatment of employees .

• Weaimtocreateaworkingenvironmentthatencouragesinnovationand

collaboration across our businesses and geographies .

• Weprohibitchildlabourinouroperations.

• Werecognisetherightofouremployeestofreedomofassociationand

to collective bargaining .

Community development and human rights: When considering the

development of a project, we will proceed on the basis of a full assessment

of potential impacts and through free, prior and informed consultation . We

seek to contribute to the economic and social wellbeing of communities,

including through enterprise development, local procurement and providing

opportunities for people from disadvantaged backgrounds .

We also support the principles set out in the Universal Declaration of

human Rights . Whilst the primary responsibility for the protection of human

rights lies with government, we recognise the responsibility of business to

respect human rights .

While there are clearly areas that need specific and immediate attention,

these and other issues raised in this sEAt Report all represent opportunities

for the JCo to build on the good work already being done .

in particular, we look forward to using the suggestions received to help

establish a closer working relationship with the local municipality, improve the

mutual understanding of municipal and JCo structures and objectives, and

explore ways to share the many high-level skills vested in the JCo .

We are pleased and proud to note that Anglo American and specifically the

JCo enjoys a strong standing within the stakeholder community, not only

as an employer of choice, but also as a stable, reliable and credible business

partner whose influence and reputation adds value beyond the financial

support it provides .

By nurturing partnerships like these, we look forward to remaining a

committed and energetic role player in the growth of the region, its

economy and its communities .

We firmly believe that a city and province can only grow if all of its

stakeholders grow together, and at the JCo we are honoured to have played

our part in some of Johannesburg’s (and south Africa’s) key milestones .

As one of the official partners who supported the bid to host the 2010 fifA

soccer World Cup in south Africa, we will take great delight in welcoming

the many thousands of soccer fans who will be visiting our city of gold .

We will cheer as their buses drive over the Nelson Mandela Bridge

(constructed from 100 tonnes of Anglo American stray cable strand) and as

they travel past Newtown’s Brickfield’s housing project (co-funded by Anglo

American in the largest public-private housing partnership in south Africa) .

We will continue to listen respectfully and act quickly on any input that helps

us to maximise the positive impact of our operations and minimise the

negative . And we will always, always look for new opportunities to do well,

by doing good .

the City of Johannesburg’s Growth and Development strategy states that:

“In the future, Johannesburg will continue to lead as South Africa’s

primary business city, a dynamic centre of production, innovation, trade,

finance and services.

This will be a city of opportunity, where the benefits of balanced economic

growth will be shared in a way that enables all residents to gain access to

the ladder of prosperity, and where the poor, vulnerable and excluded will

be supported out of poverty to realise upward social mobility ...

In this world-class African city, everyone will be able to enjoy decent

accommodation, excellent services, the highest standards of health and

safety, and quality community life in sustainable neighbourhoods and

vibrant urban spaces.”

We support this vision, and intend to continue to develop the region, its

people and its capacity by being a responsible and involved corporate citizen

– one that lives its belief in partnerships as the key to sustainable long-term

development .

MANAGEMENtREsPoNsE


A histoRyof fiRsts

Aerial view of the Johannesburg city centre .


Did you know?

• Johannesburgisoneoftheyoungestmajorcitiesintheworld.

• 40%oftheworld’sgoldhasbeenfoundinJohannesburg.

• 40%oftheworld’shumanancestorfossilshavebeenfoundinsurroundingareas.

• Thereareover10milliontreesinJohannesburg.

• Thereareapproximately145,000streetlights,1,854trafficlightsand7,519kmofroadsinJohannesburg,of which only 905km are not tarred.

• Thereare394publicsportsfacilitiesand250communityhealthclinics.

• 40%ofthepopulationisundertheageof24.

• 90%ofthecity’speoplehavetowalklessthanakilometretoaccesstheirmodesoftransport.

• Over10,000peoplebuyfreshfruitandvegetableseachdayattheFreshProduceMarket, arriving in 5,500 vehicles per day.

Did you know?

•AngloAmerican’sJohannesburgCorporateOfficehas1,803permanentstaffmembers.

•1,308carparkingspacesareprovidedforemployees.

•74.5%ofemployeesparticipatedinvoluntarycounsellingandtestingin2009.

•TheGroup’stotalsocialinvestmentspendinGautengfrom2007to2009wasmorethanR50.4million.

Opposite: south African government troops patrol the mine districts in

Johannesburg in March 1922 . Above: An aerial view of the Gauteng Province,

which boasts the fourth highest GDP on the African continent .

A CITY IN NUMBERS

KEYstAtistiCs

A HISTORYOF FIRSTS


this sEAt Report is published by the

Public Affairs Department of

Anglo American south Africa .

for queries or additional copies, please call

+27 (0)11 638 9111 .

www .angloamerican .co .za

the building at 44 main street (pictured here with 45 main and 55

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