SOURCE: AngloGold Ashanti

August 02, 2005 08:34 ET

AngloGold Ashanti Granted New Order Mining Rights

JOHANNESBURG, SOUTH AFRICA -- (MARKET WIRE) -- August 2, 2005 -- AngloGold Ashanti Limited (NYSE: AU) is pleased to announce that the company has received notification from the Director-General of Minerals and Energy that the DME has granted its applications for new order mining rights in terms of the Mineral Resources and Petroleum Development Act.

This development is the culmination of a long but constructive engagement with the DME, in which the company has sought to ensure a positive beginning to the new mineral rights dispensation that South Africa has entered. In terms of its submission, three areas stand out:

--  With regard to equity, in addition to recognition of its transactions
    with Armgold between 1998 and 2002, the company is committed to the
    development of an Employee Share Ownership Scheme, with a value equivalent
    to approximately 6% of the South African assets.
    
--  On Employment Equity, the company has in place a plan to ensure that a
    40% HDSA representation in management is achieved by 2009. Beyond this, the
    company intends to ensure that every level of management reflects the full
    cultural diversity of its South African employees.
    
--  Each South African operation has a social plan in place, which seeks
    to create lasting benefits for the communities in which AngloGold Ashanti
    operates, while the company also has an established track record of
    ensuring that employees facing retrenchment are offered training for
    alternative employment options.
    
AngloGold Ashanti believes that the new mineral rights dispensation seeks to begin to remedy the economic legacy of apartheid by ensuring that economic opportunity becomes available to increasing numbers of South African citizens, while simultaneously seeking to maintain local and international economic confidence and to promote economic growth.

Commenting on the approval of its application, AngloGold Ashanti CEO Bobby Godsell said: "I am delighted that the spirit and letter of the Mining Charter has been fulfilled through this conversion of mining rights. This decision brings certainty to our shareholders and it offers our employees and the communities in which we operate new opportunities for sharing in the wealth creation of our company. I also believe that the empowerment process initiated by government represents a vital and legitimate investment in the future of our country."

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