Press Release Archive - 2008

ActionAid, an international anti-poverty agency, released a report on 26 March 2008 entitled Precious Metal – The impact of Anglo Platinum on poor communities in Limpopo, South Africa.

This is the second edition of The Facts and is intended to provide an update and further information to our stakeholders in response to ActionAid's allegations. ActionAid made serious and inaccurate allegations about Anglo Platinum's operations in Limpopo Province. This is an updated edition of our initial response document, and presents newly available information, including the results of independent water quality tests which were commissioned by Anglo Platinum.

Anglo Platinum's response to the allegations, detailed in this report, is as follows:

1. ActionAid's claims that families have been forced off their land are simply not true and fly in the face of the evidence. At the completed Ga-Pila Relocation about 98% of the 7,000 residents have willingly moved. There have been no forced relocations, and the fact that 26 homesteads remain at the site of the old village proves this. New houses for these families remain available at the new village. With regard to the ongoing Mothlotlo relocation process, 86% of households have already voluntarily moved – also without any forced relocation. All households signed individual, one-on-one agreements, and had the opportunity to choose finishes, fixtures and fittings in their news homes.

2. ActionAid's claims that we have not consulted villagers are demonstrably untrue and an intensive consultation has occurred over a period of 10 years. All households were party to the contents of the agreement and signed these off willingly and without coercion of any sort. ActionAid claims, somewhat theoretically, that the relocations were still “forced” because we had the legal right under South African law to forcibly move the communities. Nevertheless, although that option was available we chose to proceed instead through negotiation and made the relocation packages so attractive so as to motivate families to move voluntarily. Furthermore, it is regrettable that ActionAid elected to make presumptuous and baseless findings without consulting all relevant stakeholders. More damning, is that it appears ActionAid did not take time to study the legal agreements and if they did they clearly did not understand the agreements.

3. We view in a serious light the allegations on the quality of water referred to in the ActionAid report. Anglo Platinum takes the health of host communities and our environmental responsibilities with the utmost seriousness. To this end, we have conducted seven sampling tests of our own, all undertaken in and around the community. Results of these tests have shown contamination in Ga-Molekana, none of which appears to be related to mining activities.

4. From our own sampling conducted since the first edition of The Facts, we confirm that elevated levels of nitrate (22.7mg/l) exist at Langalibalele High School. Existing scientific evidence suggests that the most likely possible source of the nitrate pollution identified is pit latrines at the school, which are located too close to the borehole. Further independent test work will be done to confirm beyond all doubt the source of the nitrate. In the meantime we have taken steps to ensure alternative water is provided at the site where we have confirmed high levels of nitrate.

5. Anglo Platinum acknowledges that its operations are noisy at times, that blasting, if not properly carried out, may be damaging to nearby property and that dust generation is especially problematic at open pit operations. The company does its utmost to minimise any harmful effects and operates strictly within the law. Where damage is caused by our operations, we always repair the damage or provide the affected persons with fair compensation. However, the relocation process at Ga-Pila was embarked upon precisely to minimise the negative effects associated with open pit mining operations.

6. ActionAid implies that Anglo Platinum has directed the South African Police Service to use force against demonstrators. Not only do we clearly not have such powers, we condemn use of disproportionate force by any party. Where small minority elements have attempted to disrupt the company's legal rights to mine or prospect for minerals, (through measures such as illegal blockades and kidnapping), then the company has sought to have the law upheld by the proper authorities. In these cases the police have not only been protecting the company's rights but also the rights of other members of the community to go about the daily lives free from intimidation and violence.

7. Where platinum deposits can be viably exploited, Anglo Platinum will aim to mine these responsibly, with due regard to the rights of the host communities. Anglo Platinum and Anglo American have shown the greatest commitment to tackling poverty and contribute to the socio-economic development, more than any other company in South Africa. In addition to the jobs, procurement and taxes created by our activities, we continue to invest tens of millions of dollars in poverty alleviation projects in South Africa. Our social investment spending in this area was R289 million* (US$41 million) in 2007, of which R50 million was spent in Limpopo (not including spending on the relocation). We continue to pioneer innovative business responses to the many challenges of poverty, including the HIV/AIDS pandemic.

8. More generally, we remain baffled that an organisation that purports to work for poverty alleviation can object to a relocation scheme that has almost unanimous community approval and which provides: better housing (often providing legally recognised ownership rights for the first time); additional financial payments; better village infrastructure; improved schools and clinics; a range of economic development opportunities; more and better land; and the protection of 1 900 direct jobs at the PPRust Mine, which would otherwise have to close/scale back operations in the next 4 to 5 years. We are committed to avoiding relocation where possible. Where this is unavoidable we carry out the process responsibly and undertake to enhance the socio-economic well-being of affected communities. We are also committed to continuous improvement, and to sharing lessons learned. We would welcome constructive input from any development or government agency to advance our future economic development initiatives to the benefit of the communities. Furthermore, the new Mineral and Petroleum Resources Development, Act 28 of 2002 has opened a window of opportunity, through the introduction of the social and labour plan. Anglo Platinum will fully utilise this new avenue.

*Note: average rate of exchange in 2007: US$1 = R7.04