Edgar Filing: ANGLOGOLD ASHANTI LTD

Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6-K dated May 11, 2012

Commission File Number 1-14846

AngloGold Ashanti Limited

(Name of registrant)

76 Jeppe Street

Newtown, 2001

(P.O. Box 62117, Marshalltown, 2107)

South Africa

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):

Yes

No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):

Yes

No X

Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.

Yes

No X

Enclosure: Press release

ANGLOGOLD ASHANTI 2011 INTEGRATED REPORT FOR THE
YEAR ENDED DECEMBER 31, 2011

PURE GOLD

To create value for our shareholders, our employees and our business and social partners through safely and responsibly

exploring, mining and marketing our products. Our primary focus is gold and we will pursue value creating opportunities in

other minerals where we can leverage our existing assets, skills and experience to enhance the delivery of value.

Safety is our first value.

We place people first and correspondingly put the highest

priority on safe and healthy practices and systems of work. We

are responsible for seeking out new and innovative ways to

ensure that our workplaces are free of occupational injury and

illness. We live each day for each other and use our collective

commitment, talents, resources and systems to deliver on our

most important commitment ... to care.

We treat each other with dignity
and respect.

We believe that individuals who are treated with respect and

who are entrusted to take responsibility respond by giving

their best. We seek to preserve people's dignity, their sense of

self-worth in all our interactions, respecting them for who they

are and valuing the unique contribution that they can make to

our business success. We are honest with ourselves and

others, and we deal ethically with all of our business and

social partners.

We value diversity.

We aim to be a global leader with the right people for the right

jobs. We promote inclusion and team work, deriving benefit

from the rich diversity of the cultures, ideas, experiences and

skills that each employee brings to the business.

We are accountable for our actions
and undertake to deliver on our
commitments.

We are focused on delivering results and we do what we say

we will do. We accept responsibility and hold ourselves

accountable for our work, our behaviour, our ethics and our

actions. We aim to deliver high performance outcomes and

undertake to deliver on our commitments to our colleagues,

business and social partners, and our investors.

The communities and societies in
which we operate will be better off for
AngloGold Ashanti having been there.

We uphold and promote fundamental human rights where we

do business. We contribute to building productive, respectful

and mutually beneficial partnerships in the communities in

which we operate. We aim to leave host communities with a

sustainable future.

We respect the environment.

We are committed to continually improving our processes in

order to prevent pollution, minimise waste, increase our

carbon efficiency and make efficient use of natural resources.

We will develop innovative solutions to mitigate environmental

and climate risks.

TO BE THE LEADING MINING COMPANY

AngloGold Ashanti Annual Integrated Report 2011

Contents

Our approach to reporting

Key features of the year

Letter from the chairman

Our business

P10

Our products and our markets

P12

Our stakeholders

P14

Risk review

P15

Our strategy

P18

People are the business

P20

Maximise margins

P22

Manage the business as an asset portfolio

P24

Grow the business

P26

Embrace sustainability principles

P28

Letter from the chief executive officer

P29

Five-year targets and scorecard

P34

Operations at a glance

P36

Review of operations and projects

P40

Review of exploration and development

P56

Mineral Resource and Ore Reserve summary

P62

Letter from the chief financial officer

P64

Five-year summaries

P66

Looking forward: One-year forecast

P68

Planning for closure

P70

Board and executive management
and company secretary

P72

Summarised corporate governance
and remuneration report

P76

Approvals and assurances

P78

Shareholder diary and information

P79

Administration

IBC

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance
and compliance

Forward-looking statements

Certain statements contained in this document, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations
regarding gold prices, production, cash costs and other operating results, return on shareholders’ equity, productivity improvements, growth prospects and
outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of
AngloGold Ashanti’s exploration and production projects and completion of acquisitions and dispositions, AngloGold Ashanti’s liquidity and capital resources and
capital expenditure, and the outcome and consequence of any potential or pending litigation or regulatory proceedings, are forward-looking statements regarding
AngloGold Ashanti’s operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of, amongst other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in gold prices and exchange rates, and
business and operational risk management. For a discussion of such risk factors, refer to the section titled “Risk management and risk factors” in the Annual
Financial Statements. Readers are cautioned not to place undue reliance on forward-looking statements. AngloGold Ashanti undertakes no obligation to update
publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of these Annual Financial Statements or to
reflect the occurrence of unanticipated events, except to the extent required by applicable law. All subsequent written or oral forward-looking statements
attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.

Our approach to reporting

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

This is AngloGold Ashanti’s Annual Integrated Report for 2011,

which is our primary means of communicating with our

stakeholders. It sets out the group’s strategy, governance,

performance and prospects, in the context of our operations

and the markets for our products, and recognises the

importance and concerns of our stakeholders. It is augmented

by, and forms part of, a suite of reports that make up our

Annual Reports for 2011. Through these reports we demonstrate

the fundamental link between the risks and opportunities that

face the business in the short, medium and long term, and

how our strategy has developed to ensure that AngloGold

Ashanti creates and sustains value for all stakeholders.

As we move towards an online platform for our reporting –

see www.aga-reports.com – we understand that some

stakeholders may still prefer copies of our reports either

posted or e-mailed to them, and we encourage you to contact

companysecretary@anglogoldashanti.com in this regard.

AN INTEGRATED

AngloGold Ashanti’s annual reports

available at www.aga-reports.com

ANNUAL

INTEGRATED

REPORT

2011

PURE GOLD

ANNUAL

FINANCIAL

STATEMENTS

2011

PURE GOLD

SUSTAINABLE GOLD

SUSTAINABILITY

REPORT

2011

PURE GOLD

MINERAL

RESOURCE

AND ORE

RESERVE

REPORT

2011

NOTICE OF

ANNUAL GENERAL

MEETING

2011

PURE GOLD

AngloGold Ashanti Annual Integrated Report 2011

Our approach to reporting

The suite of Annual Reports 2011 comprises the following:

•

Our Annual Integrated Report which has been produced in

line with the recommendations of the South African King

Code on Corporate Governance, 2009 (King III) and the

Listings Requirements of the Johannesburg Stock

Exchange (JSE). We have taken cognisance of local and

international recommendations on integrated reporting in

developing its contents, and the style of reporting.

Stakeholders seeking more detailed and specific information

are referred to the reports listed below.

•

Our Annual Financial Statements which presents a

comprehensive review of the year, and has been prepared

in accordance with: the International Financial Reporting

Standards (IFRS); the South African Companies Act, 71 of

2008; and the Listings Requirements of the JSE. This

report is submitted to the JSE in South Africa, as well as

the London, New York, Ghana and Australian stock

exchanges on which AngloGold Ashanti is listed. In

compliance with the rules governing its listing on the New

York Stock Exchange and in accordance with the

accounting principles generally accepted in the United

States, AngloGold Ashanti prepares an annual report on

Form 20-F which is filed each year.

•

Our Sustainability Report which provides insight into our

approach to sustainability. This report focuses on those

sustainability issues that have been determined to be most

important to us, and to our stakeholders. We continue to

support the Global Reporting Initiative (GRI) and report in

accordance with GRI’s 3.0 guidelines, in addition to the

Mining and Metals Sector Supplement, the Sustainable

Development Framework of the International Council on

Metals and Mining (ICMM), and the principles of the United

Nations Global Compact (UNGC).

•

Our Mineral Resource and Ore Reserve Report which

records our Mineral Resource and Ore Reserve in

accordance with the South African Code for Reporting of

Exploration Results, Mineral Resource and Mineral Reserve

(The SAMREC Code, 2007 edition), and the Australasian

Code for Reporting of Exploration Results, Mineral

Resources and Ore Reserves (The JORC Code, 2004

edition). This report has been prepared, reviewed and

confirmed by the Competent Persons as defined in terms of

these codes.

The suite of 2011 Annual Reports will be furnished to the

United States Securities and Exchange Commission (SEC) on

a Form 6-K.

Our reports cover all operations and entities in which the group

has a controlling, significant interest and which are under our

management, or in whose management we have significant

influence. Information relating to joint ventures and other

interests is provided for context. Production is expressed on

an attributable basis. The average number of employees are

reported for AngloGold Ashanti subsidiaries and joint ventures.

There were no restatements during the year.

Unless otherwise stated, $ or dollar refers to US dollars

throughout this suite of reports. Locations on maps are for

indication purposes only. Group and company, and balance

sheet and statement of financial position, are used

interchangeably. For terminology used refer to the glossary of

terms at

www.aga-reports.com.

www

Annual Financial Statements 2011

Sustainability Report 2011

Mineral Resource and Ore Reserve Report 2011

Online Report at www.aga-reports.com

For further information, see references to our suite of reports.

www.aga-reports.com

Key features of the year

IMPROVEMENTS DELIVER

AND

OPTIMISE

Highlights of 2011

4.33

Moz

gold produced

$6.6

gold sales*

61,242

employees and
contractors

Group – fatalities

Group – AIFR

(per million hours worked)

20.95

16.66

12.88

11.50

9.76

Safety performance

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

* Excludes joint ventures

* Excludes joint ventures not managed by the group

Financial highlights of 2011

Financial performance

EBITDA

($m)

1,131

1,663

1,897

3,014

1,224

Excludes hedge buy-back costs

(Loss) profit attributable to
equity shareholders

($m)

(668)

(1,195)

(320)

1,552

Cash flows from operating
activities

($m)

866

Excludes hedge buy-back costs

584

1,299

1,669

2,655

Net debt

($m)

1,318

1,283

868

1,288

610

Dividends per ordinary share

(US cents)

AngloGold Ashanti Annual Integrated Report 2011

Key features of the year

Adjusted headline earnings (loss)
per ordinary share

(US cents)

(283)

(14)

(473)

336

$1.6

profit attributable
to equity
shareholders

336

US cents

adjusted headline
earnings per share

US cents

dividends per
share

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Key features of the year

continued

Average number of employees

61,522

63,364

61,242

Includes contractors

62,046

62,895

Investment

Employment

Maximise margins

Total cash costs

($/oz)

357

444

514

638

728

Capital expenditure

($m)

1,059

1,201

1,027

1,015

1,527

Operational highlights of 2011

$728

/oz

total cash costs

$1.5

capital expenditure*

Gold production

(000oz)

5,477

4,982

4,599

4,515

4,331

operations in

10 countries

$1.5

employee benefits

* Includes joint ventures

AngloGold Ashanti Annual Integrated Report 2011

Key features of the year

Community highlights

Environmental performace

$1.2 bn

payments to governments*

$21 m

in community investment

Payments to governments

($m)

711

535

644

844

1,220

Includes direct and indirect taxes, royalties and dividends paid

to governments

Community investment

($m)

Greenhouse gas efficiency

(tCO

e/oz)

0.77

0.85

0.96

1.00

0.99

Water efficiency

(kL/oz)

9.47

10.02

11.11

11.34

12.43

Energy efficiency

(GJ/oz)

5.1

5.5

6.0

6.4

6.7

100% of

operations certified to
ISO 14001 environmental
management standard

Letter from the chairman

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

In my first chairman’s statement to you this time last year,

I indicated that the two key issues for me on taking up this

position were employee safety and the elimination of the

hedge book.

Safety

Our safety performance still leaves much room for

improvement. I extend my personal, and the company’s,

condolences to the families, friends and colleagues of our

15 employees who lost their lives in accidents during 2011.

Even though we are sustaining the approximately 70% step-

change improvement in the incidence of fatal accidents first

seen in 2008, we still need to work hard towards further

improvements, and ultimately, an end to mine-related deaths.

We hope the continuing steady improvement in injury rates is

a sign that these efforts are having an impact.

A significant issue that has arisen in South Africa relates to the

question of enforced safety stoppages by the state regulator.

As a company, we recognise and support the safety

inspectorate’s accountability in respect of mine safety.

We recognise that stoppages enforced where fatalities

and/or serious breaches of safety regulations have occurred

have served an effective purpose in focusing industry attention

further on safety issues and reducing the incidence

of accidents.

However, during 2011 the inspectorate began decreeing the

shutdown of entire mines in cases of relatively minor or local

infractions, which had a significant impact on production.

A working group comprising the Department of Mineral

Resources, the industry and organised labour has now been

established to look into this matter. It is to be hoped that, in

the spirit of partnership, this matter will reach an appropriate

conclusion.

Hedge book and gold market

The intensive pursuit of the elimination of the hedge book by

management enabled the company to finally achieve that goal

early in my tenure in 2010. The wisdom of that course of

action, which came at no little cost, continues to be vindicated

by the continuing upward trend in the admittedly volatile

gold price.

The gold price did not respond as favourably as some might

have expected to the Eurozone crisis in the closing months of

2011 and into early 2012. That is arguably because many

holders of gold were forced to sell parts of their holdings as

their losses in other holdings intensified. Yet the fundamentals

supporting a strong gold price remain in place, and could

strengthen as the European crisis plays out, with the

European Central Bank and other central banks forced to

take action.

–

FAIR FISCAL
RETURNS AND
MUTUALLY
BENEFICIAL
RELATIONSHIPS

Tito Mboweni, Chairman

AngloGold Ashanti Annual Integrated Report 2011

Letter from the chairman

Interestingly, particularly for a company like ours with close to

75% of our production in Africa, Europe’s travails are coming

into stark contrast with the prospects of the continent that

represents our main base. The Economist, as recently as

2005, was warning that “the current wave of Afro-pessimism

in Western capitals may fast run to cynicism”. By 2011, in an

article titled “The Lion Kings” (in positive comparison with the

Asian Tigers), The Economist noted that sub-Saharan Africa’s

average growth rate had more than doubled to 5.7% in the

past decade compared with the previous one and that,

according to the International Monetary Fund, seven of the

world’s 10 fastest growing economies in the next five years are

forecast to be African.

Sustainability

Much of that growth has been triggered by the contributions of

the resources sector. However, just as mining has been good

for Africa over the past decade and more, Africa has been

good for mining. In Africa, as in much of the rest of the world

(notably Australia among the other jurisdictions in which we

operate) the resources sector faces pressures from states that

believe that the relative share of benefits between host societies

and shareholders has swung too far in favour of the latter.

This is a most delicate balance that has to be struck between

the two sets of interests; interests that are often perceived to

be at odds but, more often, are common. Nonetheless, how

governments and the leaders of the industry manage this

discourse is critical to all our futures. Governments and their

citizens are entitled to expect not only a fair fiscal return but

also a mutually respectful and beneficial relationship between

them and the companies. Being a good corporate citizen, as

we seek to be, is a prerequisite for being a successful miner.

Pushed too far, though, raised taxes and royalty rates will

begin to discourage investment and reduce the overall value of

the industry to both societies and shareholders. The regulatory

environment is becoming increasingly complex and onerous.

Your company is committed to playing its part constructively and

wisely in this regard, both through its own offices and through its

participation in industry and other business associations.

This is perhaps best illustrated in our country of domicile,

South Africa, where the vocal support by the ruling party’s

youth league for a policy of nationalisation of the mining sector

has been a difficult challenge for us. We do not fear that

government would be pushed into pursuing such an unwise

course. The country’s leadership has repeatedly stated as

much. Indeed, government’s New Growth Path policy

document recognises the centrality of the mining sector,

arguing that “government must encourage stronger

investment by the private and public sectors to grow

employment-creating activities rapidly while maintaining and

incrementally improving South Africa’s core strengths in

sectors such as capital equipment for construction and

mining …. These industries build on our strong resource base

and our advanced skills and capacity”.

However, the nature of the discourse has been unsettling for

investors and others, and focused discussion away from the

real challenges the industry and the country face. We hope the

work done through the Chamber of Mines, the debates

promoted by ourselves and other partners and the prominent

and well-received interventions by our CEO have helped to

turn the tide.

Operational matters

On the operational side, the critical Project ONE has moved

from the realms of pilot project to a point where it is being

rolled out increasingly broadly through the organisation. The

implementation of the improved efficiencies and performance

in such areas as production, safety and environmental

management promised by Project ONE rarely happens without

occasional stumbles and setbacks. However, the overall gains

clearly illustrate the wisdom and vision of the project.

Our extensive greenfield and brownfield exploration projects,

dealt with on pages 50 to 61 of this report, promise to replace

exploited ounces and more, at extremely competitive costs bases.

During the year, the board looked at, and it will continue to look

at, ways to improve long-term value for shareholders.

Board

Finally, in my chairman’s statement last year I undertook to

ensure that the board acted to replace lost expertise and work

towards building an even better balance of knowledge,

experience and skill. In this regard, I am pleased to welcome

two new board members to our ranks. Nozipho January-

Bardill, with her combination of international diplomatic

experience and executive experience in the private sector has,

in the first few months of her tenure, brought to the board fresh

ideas and new perspectives in our deliberations. And Rodney

Ruston, whose term began at the beginning of 2012, brings

decades of executive and technical resources sector

experience. The rest of the board and I look forward to our

deliberations with them.

I would like to thank all my fellow board members,

management and staff at AngloGold Ashanti for all their

support in 2011.

Tito Mboweni

Chairman

16 March 2012

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Our business

A TRULY

COMPANY

Argentina

Cerro Vanguardia

Australia

Sunrise Dam

Brazil

Serra Grande
AGA Mineração

Ghana

Iduapriem
Obuasi

Guinea

Siguiri

Mali

Morila
Sadiola
Yatela

Namibia

Navachab

South Africa

Vaal River
Great Noligwa
Kopanang
Moab Khotsong
Surface operations

West Wits
Mponeng
Savuka
TauTona

Tanzania

Geita

United States

Cripple Creek & Victor

Operations

Major
exploration
projects

Colombia

Gramalote
La Colosa

DRC

Kibali
Mongbwalu

Australia

Tropicana

Location of operations and major exploration projects

Headquartered in Johannesburg, South Africa AngloGold Ashanti has 20 operations in 10 countries on four continents, as well as

several exploration programmes in both the established and new gold producing regions of the world.

AngloGold Ashanti is a global mining company, the third

largest gold producer in the world in 2011.

Our mission is to maximise the returns delivered to

stakeholders during the economic life cycle of our operations

by producing gold safely, responsibly and efficiently.

We operate or have a significant interest in 20 operations, in

10 countries, on four continents.

Our headquarters are in Johannesburg, South Africa. The group’s

management has been delegated by the board to the chief

executive officer (CEO) and the executive committee.

Operationally, the management of the group has been divided

into four regions: South Africa; Continental Africa, which

includes our operations in Ghana, Guinea, Mali, Namibia

and Tanzania; Australasia, which comprises the Australian

operation, and the Americas, which includes our operations in

Argentina, Brazil and the United States.

In 2011, AngloGold Ashanti employed 61,242 people,

including contractors (2010: 62,046), primarily in South Africa

(52%), Ghana (12%) and Brazil (8%). Our operations and

projects touch the lives of many thousands more people,

both around our operations and in those regions from

which our operations draw their employees. We are

implementing, where possible, plans to consider these

potential impacts and mitigating measures at every stage in

our operational life cycle.

Our business extends from exploration to project

development and construction, to mining, processing,

smelting and marketing. In the course of our business we

ensure that we understand and address the social and

environmental aspects of our business from exploration,

through to construction, mining and processing,

rehabilitation and eventual closure.

We have advanced projects in Australia, the Democratic

Republic of the Congo (DRC) and Colombia, and an extensive

exploration programme in 17 countries – including greenfields,

brownfields and marine exploration – in the established and

potential gold regions of the world.

At 31 December 2011, AngloGold Ashanti’s attributable Ore

Reserve amounted to 75.6Moz, while attributable Mineral

Resource totalled 230.9Moz.

AngloGold Ashanti produced 4.33Moz of gold in 2011

(2010: 4.52Moz), generating gold income (excluding that from

joint ventures) of $6.6bn in 2011 (2010: $5.3bn). We also

invested $1.5bn in capital (2010: $1.0bn), $313m on expensed

exploration (2010: $205m) and the company made net corporate

tax payments of $379m (2010: $188m), $1.5bn (2010: $1.4bn)

to employees (wages and benefits) and $131m (2010: $67m)

in dividends to shareholders during the year.

We actively participate in the global promotion and marketing

of our product, independently, and in association with the

World Gold Council. Our gold is sold and shipped to bullion

banks and commodity houses around the world. As an

investment, gold remains a sought-after store of value, and it

is also in demand for use in jewellery and in industrial

applications. Valuable by-products – silver, sulphuric acid and

uranium – are generated in the process of recovering the gold

mined at certain operations.

AngloGold Ashanti’s primary listing is on the JSE, and the

company is also listed on the London Stock Exchange (LSE),

the New York Stock Exchange (NYSE), the Ghana Stock

Exchange (GhSE) and the Australia Securities Exchange (ASX).

At the end of December 2011, the group had 382,242,343

ordinary shares in issue, and a market capitalisation of

$16.2bn (2010: $18.8bn). Around 98% of the group’s ordinary

shares are considered to be in free float, with 1.67% held by

the government of Ghana. AngloGold Ashanti delisted from

Euronext Paris and Euronext Brussels on 23 and 30 December

2011 respectively.

AngloGold Ashanti Annual Integrated Report 2011

Our business

Geographic distribution
of shareholders

as at 31 December 2011 (%)

United States

47.9%

South Africa

27.9%

United Kingdom

9.4%

Rest of Europe

5.9%

Singapore

2.1%

Australia

1.8%

Ghana 1.7%

Rest of Americas

1.3%

Rest of world

2.0%

Our products

Gold mining uses and produces a wide range of materials, from

the upstream inputs procured through our supply chain, to

downstream outputs in the form of gold and related by-products.

To ensure that reliable and effective management systems are in

place for the stewardship of our materials and that gold’s good

reputation is maintained, AngloGold Ashanti is an active

participant in a number of international initiatives aimed at

addressing concerns within the gold production process,

including the Organisation for Economic Co-operation and

Development (OECD), the International Council on Mining and

Metals (ICMM), the World Gold Council and the Responsible

Jewellery Council. The initiatives are responding to societal

concerns about the environmental and social impacts of gold

mining, especially those concerns expressed most visibly under

the US Dodd-Frank Act section 1502 around the financing of

armed conflict in the DRC. These organisations are developing

chain-of-custody standards to enable members to demonstrate

that the process of producing gold and the process from mine to

smelter to refinery and beyond is responsible and especially that it

does not contribute to conflict.

Two high-volume by-products of our gold production process,

both of which are a function of the characteristics of local

geology, are uranium, produced by certain South African

operations, and sulphuric acid, produced by our Brazilian

operations. As each of these by-products is potentially

hazardous, we ensure their safe production and transportation

to customers. (For further information on our product

stewardship programmes and initiatives, see our

page 56.)

Our markets

AngloGold Ashanti’s gold is refined at various precious metal

refineries. In refined and marketable form, gold normally

takes the shape of bars, varying in size from 12.5kg to

smaller bars weighing some 1kg or less, all of which contain

99.5% gold. Through the refineries the gold is sold directly

to bullion banks. Bullion banks are registered commercial

banks which deal in gold, distributing bullion bought from

mining companies and refineries to markets worldwide.

These banks hold consignment stocks in all major physical

markets and finance these inventories from the margins they

charge physical buyers.

The physical gold market is dominated by the jewellery and

investment sectors, which together account for over 80% of

total demand. The balance of gold supply is used in electronics

and dentistry. While the quantity of gold used in jewellery

consumption has decreased over the last decade with the

steadily rising gold price, the investment market has largely

absorbed available supply. Investment in physical gold involves

bar and coin hoarding, medals and other retail investment

instruments, as well as the now significant market for

exchange traded funds (ETFs).

In 2011, the gold market continued to be profoundly

influenced by ongoing economic turmoil, particularly in the

United States of America (USA) in the first half of the year and

latterly by the crisis in the Eurozone, which continues to be

driven by fears of sovereign defaults. As anticipated in times of

global turmoil, the gold price rose to a new intra-day high of

$1,921/oz, as gold once again reflected its status as a

reliable store of value and a hedge against dollar weakness.

Our products and our markets

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

AND
SECTORS DOMINATE

This trend persisted until the fourth quarter, as the situation in

Europe deteriorated, and the euro started slipping against the

dollar, in the face of the inability of the European countries to

resolve the funding crisis.

Despite these headwinds, the spot gold price still gained

11% during 2011 and averaged $1,572/oz for the year. This

marks a 28% appreciation over the average spot price of

$1,227/oz in 2010 and marks the 10th consecutive year of

price appreciation, the longest ever bull run in the

gold price.

Investment market

Despite the failure of the gold price to respond to the

worsening crisis in Europe, ETF holdings grew over the

course of the fourth quarter, improving on a sluggish first

quarter and reversing the negative trend of the second and

third quarters.

At year-end, aggregate holdings for the major ETFs totalled

almost 78Moz, which represents a 7% increase of 5.2Moz

for the year. This growth is modest when compared to the

massive surges in ETF holdings of 2009 and 2010

(19.84Moz and 9.97Moz respectively). That said, combined

holdings of the ETFs remain significant. When compared to

official sector holdings, combined ETFs rank sixth behind

official sector holdings of the United States (267Moz),

Germany (109Moz), IMF (91Moz), Italy (79Moz) and France

(78Moz). As was the case last year, official sector demand in

the gold market remained significant, with governments

continuing to increase their gold holdings in the face of

extreme economic uncertainty.

More traditional gold investment products such as bar and

coin experienced a very mixed year. In India, the world’s

biggest single gold market, gold price volatility and a

weakening rupee severely dampened gold demand in both

investment and jewellery. In China, such volatility also played a

negative role but since the value of the Yuan is so closely

managed, the impacts were not as marked. Unlike India, China

recorded growth in both investment and jewellery demand in

2011. In the developed markets, Europe was by far the

strongest for bar and coin hoarding, and in the third quarter

European demand exceeded that of India and China – a highly

rare occurrence. Much of this activity was driven by the debt

crisis in the Eurozone.

Jewellery markets

The key jewellery markets of India and China both experienced

mixed fortunes during the year. After a record year in 2010,

India’s first two quarters remained strong but fell off in the

second half of the year on price volatility and rupee weakness.

Price volatility also dampened demand in China, but unlike

India, which experienced a contraction in the third and fourth

quarters, China still recorded increases all year round, with

total jewellery demand growing by 16% to reach 524t. In the

United States, the jewellery sector showed modest growth of

around 3% as the market finally began to settle after years of

turmoil. Improving credit terms and a mild improvement in

consumer sentiment is likely to continue to fuel growth in this

sector. The high end of the gold jewellery market in the United

States showed the greatest growth for the second year as the

wealthy are less affected by a financial downturn than low to

middle income earners.

AngloGold Ashanti Annual Integrated Report 2011

Our products and our markets

1,400

1,500

1,600

1,700

250,000

300,000

350,000

400,000

450,000

500,000

Average monthly gold price – 2011

(R/kg and $/oz)

Jan

Mar

May

Jul

Sep

Nov

R/kg
$/oz

Demand for gold by sector – 2011

(%)

Jewellery

44%

Physical investment

27%

Net central banks
purchases

10%

Other 19%

Source: Gold Fields Mineral Services (GFMS)

Total gold supply – 2011

(%)

Newly mined gold

64%

Old gold scrap

36%

Source: GFMS

Our approach

Our stakeholders are highly diverse, reflecting the diversity of

the geographical regions in which we operate, the wide range

of groups with whom we interact and the diversity of issues

with which we deal.

We engage with stakeholders in a range of different ways,

guided by the needs of the business, our values, and the

standards and processes on stakeholder engagement that we

have adopted. The nature and frequency of engagement

depends on the type of stakeholder, the nature of the

relationship and the issues under discussion.

Stakeholder identification and engagement is undertaken in all

areas of operation, defined and undertaken at different levels in

the organisation. Broad guidelines on shareholder identification

are set out in the group-level management standard on

engagement, as approved by the executive committee in

October 2011. This standard documents AngloGold Ashanti’s

intention that all operations engage in building successful and

mutually-beneficial relationships with stakeholders throughout

the mine life cycle (including exploration projects, new and

established operations, during closure and post-closure, as

appropriate). The standard recognises that failure to engage

effectively could result in potential disruptions at our operations

and could exacerbate challenges to our reputation. It provides

tools for building social partnerships to secure our social

licence to operate and positions AngloGold Ashanti as

the preferred operator wherever the company has a

presence. This standard is available on our website at

www.aga-reports.com.

Stakeholder groups with whom we interact include communities,

investors, labour, media, employees, governments, politicians,

vendors, non-governmental organisations (NGOs) and joint-

venture partners.

Issues raised in engagement with these stakeholders have

informed the content of our sustainability report, which focuses

on the following broad themes:

•

resource nationalism;

•

artisanal and small scale mining (ASM);

•

criminal activity, including illegal mining and theft;

•

operating with respect for human rights;

•

safety and health;

•

environment and natural resource management;

•

skills shortages; and

•

responsible gold standards.

We view our key stakeholders as partners, and engage with

governments and communities to seek mutually-beneficial

outcomes. Developing long-term partnerships with host

communities and governments compels us to first understand

the risks and drivers that will allow an operation to be

successful, and then to invest in areas that address these risks

and opportunities in a way that is relevant to the communities

affected by that operation.

AngloGold Ashanti is a significant investor in communities in

which we operate and is developing a sustainable development

framework that aims to introduce a step change in the way

in which community relationships are managed. This will

enable a consistent approach to building partnerships for

development across the group. Implementation of this strategy

will position the business to demonstrate tangible benefits to

communities while building operations that consistently meet

performance targets, yield value for communities, customers

and shareholders and balance the priorities of each group.

See the Sustainability Report

for further details – page 15.

Our sustainability report provides examples of stakeholder

engagements which took place in 2011, including with partners,

governments and municipalities.

Our stakeholders

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

DIVERSE
DIVERSE

Integrating risk assessment into
business strategy

Risk analysis has been and continues to be a key component

in building and executing our strategy. Our aim is to further

improve ‘risk awareness’ at all levels of the organisation –

identifying, evaluating and managing significant threats and

opportunities to deliver against business objectives.

Our risk management framework comprises:

•

a policy statement, which sets the context for risk

management within the group and prescribes the scope,

objectives and required outcomes for this process;

•

a risk management plan, prepared by management and

reviewed annually by the recently formed Risk and

Information Integrity Committee of the board; and

•

a risk management standard and guidelines, which

enable operations globally to access detailed information

concerning risk management principles and practice in

order to define risk management strategies.

Risk management structure and accountabilities are defined in

the framework.

Risk identification, assessment and management are considered

at every step in the business planning process, from setting

business strategy, expectations and performance targets;

developing production and service strategies; planning and

scheduling of work; through to task execution.

AngloGold Ashanti has implemented the following measures in

an effort to ensure that the risk management system is applied

consistently through:

•

regional and site-based risk training workshops conducted

at least annually;

•

using the intranet to share information and understanding of

risk management principles and practice, and to provide

regular updates to employees globally;

•

ongoing focus on training;

•

maintaining the group material risk register, as well as the

preparation of a risk knowledge base that can be used to

inform risk identification and for review purposes;

•

regular risk owner and risk champion interaction and

support; and

•

combined assurance review processes.

The revised risk management system was approved by the

board of directors in February 2009.

A risk response identification is conducted regularly to inform

business planning processes and to assist with delivery

according to targets. Significant risks are assessed and

response plans prepared for which adequate budgetary

provision is made. Consideration of the portfolio of risks within

the group, informs strategy and assists with optimising the

allocation of capital.

Key risk areas

The top risks, uncertainties and challenges that we believe the

group faces in executing strategy and delivering on key

business objectives are described overleaf. Mitigation

strategies and a summary of progress against these risks is

also given. Comprehensive disclosure of risk factors is

provided in our Annual Financial Statements

and in our

annual report on Form 20-F, while key sustainability

challenges, risks and opportunities are discussed in the

Sustainability Report

, pages 16 to 19.

Risk review

AngloGold Ashanti Annual Integrated Report 2011

Risk review

IS A KEY COMPONENT
OF STRATEGY

Risk/uncertainty/challenge area

Mitigation strategies

Risk review

continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

The implementation of the safety transformation programme is continuing, with
significant progress made to date. Enhanced incident investigation and reporting
systems are being rolled out. Efforts continue on a range of fronts to deliver on the
company’s vision for a ‘no harm’ workplace.

pages 42 to 47.

Employee safety resulting mainly from deep-
level mine seismicity, as well as employee
health and fatigue, and working practices.

AngloGold Ashanti reserves its rights to defend all claims on their merits since any
employee or past employee bringing an action for common-law damages for
silicosis would have to prove the various elements of a delictual claim including
negligence and wrongfulness. Nonetheless, discussions have begun, through the
Chamber of Mines of South Africa, to address the compensation system on an
industry-wide basis. Further, the company continues to implement measures to
reduce exposure. The latency period of the disease means that we are unlikely to
see results of this work for another decade. Nonetheless, the South Africa region
has achieved a 43% reduction in silicosis cases between 2010 and 2011 as a result
of the implementation of dust management strategies.

page 45.

Potential legacy and on-going issues relating
to occupational health following the South
African Constitutional Court ruling in March
2011, exposing AngloGold Ashanti and
others to individual and class action claims.

Talent pool management is an integral part of AngloGold Ashanti’s human
resource strategy. Succession planning is being developed to ensure skills
development and retention. Proactive recruitment processes are in place and there
is a focus on transformation strategies in South Africa.

pages 55 to 56.

Skills availability and retention. Skills shortages
are anticipated across the sector globally.

A Ghana task team, led at an executive committee level, is developing a holistic
strategy to address legacy and operating issues in Ghana, relating to water,
community relations, land access, and human rights complaints and grievances.

page 23.

Environmental permitting and process water
management in Ghana.

Initiatives have been introduced to reduce power usage, focusing particularly on the
high usage customers. Proactive engagement is undertaken with Eskom in South
Africa, where significant energy efficiency projects have been put in place. Our aim
is to further reduce consumption by 10% by 2013, in line with supply-side
forecasts, and to work with Eskom to enable operational continuity through any
periods of load shedding, should they occur.

Potential for power supply disruptions and
rationing, particularly in South Africa.

An integrated water management strategy has been developed to ensure the
interception of seepage from tailings storage facilities and minimising potential
discharges of process water during heavy rainfall events as well as interventions to
establish safe use of land outside the mining footprint.

page 21.

Concerns relating to the potential for ground
and surface water pollution in South Africa.

Both the Vaal River and West Wits operations are potentially at risk of inter-mine
flooding as the financial viability of neighbouring mines and their ability to continue
mine dewatering remains a concern. In the Vaal River district, a prefeasibility study
of a regional mine water management plan will advise on sustainable options for the
management of mine water going forward. In the West Wits district, both operational
interventions and possible legal actions are being pursued to sustain pumping at the
neighbouring Blyvooruitzicht Mine.

Potential inter-mine flooding in South Africa.

Safety and health

Increased momentum is being gained in the roll out of the management framework,
including Project ONE, thus increasing operational consistency and capacity and
reducing the risk of project delays. A multi-disciplinary task team is spearheading the
Obuasi turnaround. Progress towards stabilising Obuasi is encouraging as Project
ONE gains traction to support production targets. Capital projects benefit from
dedicated project management teams.

Delivery on production targets, including on
potentially critical areas such as the Obuasi
turnaround plan (Ghana), and key capital
project execution including Tropicana
(Australia) and enterprise resource planning
(ERP) implementation.

Productivity

Environment

Production

AngloGold Ashanti Annual Integrated Report 2011

Risk review

Risk/uncertainty/challenge area

Mitigation strategies

page 50.

Imposition or extension of a carbon pricing
mechanism. Australia approved a carbon pricing
scheme to take effect from July 2012. South
Africa has proposed the introduction of a carbon
tax in 2013.

Productivity gains from implementation of the management framework, as well as
broader cost management strategies will assist in mitigating the impact of
increases in input costs. Extreme inflation would support gold demand, enabling
AngloGold Ashanti to benefit from increased prices.

Inflationary cost pressures driven
predominantly by energy price increases,
mining input cost inflation and wage demands.

AngloGold Ashanti participates actively in industry and other stakeholder
engagement processes with governments. These potential risks are taken into
account in determining group strategy and are included where relevant in regional
business plans. Active engagement is undertaken with tax authorities and finance
ministries in affected regions, and stability agreements have been entered into in
several jurisdictions.

pages 28 to 29.

Changes to the regulatory environment (such
as increased royalties, taxation demands or
disputes, or duties and ‘resource nationalism’ in
many guises aimed at expanding state role in
mining), which may increase costs in some
countries of operation.

AngloGold Ashanti has increased its exposure to the gold price through the
elimination of its hedge book. Approximately two thirds of AngloGold Ashanti’s
revenues is naturally hedged, given the strong correlation between the gold price
and foreign exchange movements in major producer countries (Australia, Brazil
and South Africa). AngloGold Ashanti currently benefits from a strong statement of
financial position and international investment grade credit ratings. Debt capacity
remains available under the group’s credit facilities and bond markets.

Global market dynamics from slow recovery
and recession resulting in gold price and
foreign exchange volatility.

Returns

Total cash costs

Ongoing engagement takes place with local and national administrations,
communities and other interested groups. A sustainability framework that
addresses sustainable development issues, including artisanal mining, is in
development.

pages 35 to 36.

Social issues emanating from heightened
community expectations and ASM.

A Ghana task team, led at an executive level, has developed a holistic strategy to
address legacy and operating issues. AngloGold Ashanti participates in industry
and non-governmental organisational (NGO) initiatives relating to ASM and
community resettlement.

Allegations of human rights abuses in Ghana
related to interaction with ASM and
community resettlement.

AngloGold Ashanti participates actively in industry, government and inter-
governmental initiatives relating to responsible use of gold.

Increased legislation and initiatives in response
to concerns regarding the potential for gold to
contribute to conflict.

Community

Production (continued)

A risk-based asset integrity and reliability engineering programme has been
initiated that identifies threats and guides appropriate capital expenditure.

Asset integrity relating to ageing mine
infrastructure, particularly in South Africa.

Management

framework

•

Leadership

•

Line ownership

•

People systems

•

Technical systems

•

Measure and review

Strategic

focus areas

•

People are the business

•

Maximise margins

•

Manage the business as an

asset portfolio

•

Grow the business

•

Embrace sustainability principles

The basis of AngloGold Ashanti’s strategy is our vision, mission

and values – see the inside front cover. The company’s vision

is to become the leading mining company. Our mission is to

create value for shareholders, employees and business and

social partners through safely and responsibly exploring,

mining and marketing our products. Although our primary

focus is gold, AngloGold Ashanti will pursue value-creating

opportunities in other minerals where it can leverage existing

assets, skills and experience to enhance the delivery of value.

Delivery targets

We have set targets – see page 34 – which are measured and

re-evaluated on an ongoing basis. They relate to six key areas

of performance and define our vision of leadership in

our sector. The performance areas are: safety, productivity,

environmental management, production volumes, costs and

financial performance.

Work is under way to develop a seventh target on community

upliftment, which will support the focus of the business on

sustainability and drive the creation of real and long-term

beneficial relationships with social and business partners in

communities where the company operates. Consultation is

currently being undertaken to determine how performance will

be measured in this area and to ensure that our baseline

information is accurate. See page 34 for our five-year targets.

Strategic focus areas

There are five key pillars to the business strategy that will assist

in meeting our delivery targets.

People are the business

Providing the leadership and the supporting management

processes to ensure that we have the right people, in the right

roles, doing the right work, to deliver against our goals.

Maximise margins

Managing revenues to ensure that full value is realised from our

products by delivering a quality product and managing costs

to protect margins and returns on capital employed.

Our strategy

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

INFORMED BY OUR VISION,
MISSION AND VALUES

-80

-60

-40

-20

Comparison of the AngloGold Ashanti
share price vs the NYSE BUGS Index

AngloGold Ashanti

Mar 08

Dec 11

NYSE Acra Gold BUGS Index

Manage the business as an asset portfolio

Optimising asset and project portfolios to meet or exceed

specified rates of returns. To achieve this, each asset is

regularly reviewed and ranked in both absolute terms and

relative to its peer group.

Grow the business

Developing a range of options for growth, including greenfield

and brownfield exploration, new opportunities for promoting

organic growth, value-accretive merger and acquisition

opportunities and maximising the value of commodities other

than gold within our portfolio.

Embrace sustainability principles

Developing business and social partnerships based on mutual

value creation, while maintaining a focus on ensuring the safety

and well-being of employees and managing environmental and

other impacts.

The Project ONE management framework developed internally

is being applied consistently throughout the business in the

support of achieving the broader strategic objectives. At its

core, the framework is designed to reduce variability in

performance and support a seamless flow from strategy to

delivery. This framework prescribes strong leadership,

considered role description, appropriate resourcing to the task

at hand, well-defined and documented business processes in

all areas, clear accountability and consistent analysis and

improvement of work undertaken.

Underpinning this framework is the firmly held conviction that

we must consistently create and sustain value into the future.

To achieve this, our approach must acknowledge broader

societal concerns – namely, developing natural resources in

environmentally-sensitive ways, while delivering an equitable

economic model for local and broader-based communities.

The five strategic focus areas are reflected in the role

descriptions of each executive and senior manager in the

group and form the basis for evaluating their performance.

AngloGold Ashanti Annual Integrated Report 2011

Our strategy

On the pages that follow we provide greater insight into each of AngloGold Ashanti’s five core strategies, showing how

they are implemented in practice.

Results

Our management framework

Leadership

People

Systems
of work

Roles are clear – defining the
responsibilities and accountabilities –
and exactly how we are connected to every
part of the business.

Business process – detailing how all
the tasks flow and fit together – and
exactly how people interact within the
operating system to get work done.

Technical, commercial
and operating systems

Measure and review

In control and capable
plan

Line ownership with
specialist support

Capable, engaged and
effective employees

Employees involved
and engaged

View the current
share price

How we are implementing this strategy

We believe that people are central to our success. The

shortage of key skills is one of the most significant risks that we

face, and one that is shared across the global mining industry.

We aim to create a value proposition that will attract and retain

key skills, and which in turn will create a similar and

appropriate value proposition for communities and other

stakeholder groups.

Our values play a significant role in supporting this component

of our strategy. A company-wide values survey was

undertaken in 2010 and, as a result of the feedback received,

regions have implemented practical initiatives that were

identified and sponsored by employees to improve the way in

which values are communicated and lived.

This values-based approach has been strengthened further

through the development of a code of ethics which expresses

the company’s commitment to conducting business in line

with the highest ethical standards and in compliance with

applicable legal requirements. It sets out the standards of

acceptable behaviour expected of all directors, employees,

consultants, business partners and company representatives,

emphasising performance with integrity. The Audit and

Corporate Governance Committee of the board oversees the

application of the code.

Our strategy and strategic objectives –

People are the business

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

WE NEED THE RIGHT PEOPLE IN THE RIGHT
ROLES DOING THE RIGHT WORK TO DELIVER
AGAINST OUR GOALS.

Strategy in practice:
Implementing effective systems

Our strategic direction as defined in our vision, mission,

values and five core strategies introduced a new approach

to leadership within the group that supports people doing

the right work. We reviewed our management framework

with a focus on strengthening both people and technical

systems so that, in our constantly changing business

contexts, we can reflect an aligned and consistent

working model. We designed and implemented Project

ONE. In essence, Project ONE is aimed at developing and

implementing the systems necessary to enable AngloGold

Ashanti to maximise efficiencies and productivity, and

reduce costs so as to enable us to achieve our stated

vision and mission, and to ensure the company’s

sustainability in the longer term. The key components of

Project ONE are the Business Process Framework (BPF);

the System for People (SP); and engagement.

Through Project ONE, we have rebuilt our business

processes by putting in place people and technical

systems to deliberately change our working environment

and increase our focus on engagement.

These systems are integrated approaches to operating

which together give effect to all our core strategies, but

particularly to give real meaning to the adage: ‘people are

the business’. The SP begins with organisational designs

that delineate clear structures, roles and associated

accountabilities, and clarify how we connect every part of

the business. Technical systems (or the BPF) detail our

business processes and how all tasks fit and flow

together to explain how people interact with each other

within the operating system to get work done.

Engagement encourages line ownership and team work,

defining the way in which we relate to colleagues and

external parties.

AngloGold Ashanti Annual Integrated Report 2011

Our strategy

Simply put:

•

The SP is about making sure we have the right people in

the right role doing the right work.

•

The BPF is about making sure we are doing the right work

at the right time in the right way.

•

Engagement ensures that we involve the right people in

the right way to deliver the right outcome.

The objectives of the SP are to put in place 1) the right

organisational structure with 2) the right people in the right

role and 3) effective working relationships. Although still in

the process of being implemented, we accelerated our

rollout of the SP in 2011, focusing on the following:

1. Structure: organisational design and work complexity.

Again, by way of example, organisational structures

have been reviewed in line with the principles of

Requisite Organisation and to ensure that accountabilities

are assigned at the correct level.

2. People: role accountabilities and individual capability.

By way of example, we have clarified role accountabilities

in alignment to levels of work, and have assessed the

current potential capability of individuals, striving to

match the two in order to achieve the best fit between

challenge and capability.

3. Processes: building the sub-systems that support the

SP (for example, in talent and performance management).

ger

ial le

adership and engag

ent

SP: A comprehensive and integrated system

Organisation design – establishes a common
approach to structuring the business in the most
effective and efficient manner to support the
delivery of the business objectives.

Managerial sub-systems – ensure that we have
the right person in the right place at the right time.

Managerial leadership and engagement –
practices that govern the interaction between
managers and their subordinates.

Organisational values – set the limits within which
the company and all its employees are expected
to behave.

Transformation – ensuring a workplace free from
discrimination, where employees represent the
diverse populations of the countries in which we
operate.

Organisation design
to support business
strategy

•

Functional alignment

•

Levels of work

•

Role descriptions

•

Authority and accountability

•

Working relationships

Human

resources

planning

Talent

pool

development

Recruitment,

selection

and

induction

Remuneration

and conditions
of employment

Transformation

Performance

management

Education

and

training

tie

hic

ill

old

are

accoun

table for our action

s an

und

ertak

e to deliv

er on our comm

itme

nts

tre

ith

Safet

y is our first value

How we are implementing this strategy

AngloGold Ashanti maximises margins by actively managing

both revenues and costs.

On revenues, we seek to realise full value from our products.

We do this by:

•

Offering exposure to spot prices. Since October 2010, we

have been a fully unhedged gold producer. The elimination

of our hedge book was value-accretive, taking into account

gold price gains since the investment was made.

•

Taking our product to an optimum final point to ensure that

we have extracted full value across the value chain.

•

Finding and developing new sources of gold production.

•

Delivering products of a consistent quality, on time.

Costs are closely managed across the business. We

benchmark ourselves on a total cost basis against the

broader industry and strive to maintain these costs below the

industry’s mean in order to protect returns in a potentially

volatile price environment.

Costs are regularly reviewed, focusing on critical processes,

and as part of the annual business planning process. Our

revised objective, after taking account of cost improvements

already effected, taking us to 2015, is to effect a 20%

improvement in real IFRS total cash costs per ounce (adjusted

for mining inflation), from a 2010 baseline.

Our strategy and strategic objectives –

Maximise margins

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

WE NEED TO MANAGE REVENUES AND COSTS TO

ENSURE THE DELIVERY AND PROTECTION OF RETURNS

IN A VOLATILE PRICE ENVIRONMENT. MARGINS

GENERATE CASH FLOW TO SUSTAIN AND GROW

OPERATIONS, SO WE ARE CONSTANTLY STRIVING TO

MAINTAIN AND IMPROVE ON OUR COSTS RELATIVE TO

OUR INDUSTRY PEERS.

EBITDA

1,131

1,663

3,014

1,897

($m)

* Refer to the Non-GAAP section of the Annual Financial Statements for a

definition of EBITDA.

AngloGold Ashanti Annual Integrated Report 2011

Our strategy

Project ONE has been implemented to standardise

operating procedures and achieve key five-year goals,

including cost targets. The technical and people systems

that form part of Project ONE are in various stages of

implementation at the company’s operations, and have to

date contributed to savings of some $697m.

Project ONE principles were applied at Geita in Tanzania,

which recorded exceptional improvements in cost and

operating performance in 2011, reducing cash costs from

$777/oz to $536/oz and increasing production by 38% to

494,000oz since 2008.

In the South Africa region, a major project is under way to

develop a technology-oriented operating model, which has

the potential to achieve significant cost savings, as well as

enable safer operations which minimise environmental

impacts. As a result of ongoing focus on energy saving

initiatives, the South African region has reduced energy

consumption by some 5.65% since 2010. Although

absolute energy costs have risen due to power tariff

increases, energy saving initiatives which are in place have

significantly mitigated the impact of higher electricity prices.

A major area of focus remains the operational turnaround

at Obuasi in Ghana. A multi-disciplinary task team was put

in place in 2010 to focus efforts on improving operational

and sustainability performance. Operational stability has

been achieved. Production targets for 2011 were met and

the operation made a cash contribution to the business.

Although there is still work to be done, the foundation for a

turnaround has been laid.

Strategy in practice: Improving cost performance –
major initiatives and outcomes

Geita EBITDA

($m)

and

EBITDA margin

(%)

EBITDA

EBITDA Margin

100

120

140

160

180

Obuasi free cash flow and EBITDA

($m)

(93)

(17)

141

After all capex and working capital at hedge equalised prices

111

Free cashflow

EBITDA

How we are implementing this strategy

Our ambitious growth targets are balanced by our approach to

portfolio management which ensures that growth is delivered

while securing optimal returns for shareholders.

We carefully consider the allocation of capital within the group,

applying asset portfolio management principles to the

evaluation of projects and the assessment of potential growth

opportunities. Short- and long-term spending priorities are

balanced to ensure that the quality of production ounces is

continually improved. This approach also requires the

evaluation and management of the constraints and risk factors

that exist in relation to each production asset. Capital

deployment is optimised by investing only in assets and

growth opportunities which offer superior returns.

Each asset and project is regularly reviewed as part of the

company’s annual business planning process. Projects are

evaluated in absolute and relative terms to assess whether:

•

the risk-adjusted rates of return have been met;

•

the relative strengths and weaknesses of the portfolio have

been identified, with a particular focus on risk and

opportunities;

•

effective strategies have been implemented to use

resources optimally;

•

operating performance is optimal and based on the most

appropriate methods and design; and

•

detailed planning and scheduling has been undertaken, and

best-practice operating methods are used at each asset.

While operational management continues to be heavily

involved in portfolio reviews and evaluation, a long-term

perspective is also required for this process. A dedicated team

has been established, and this team will conduct a rolling

review of all of the group’s assets as well as evaluating other

potential growth opportunities.

Our strategy and strategic objectives –

Manage the business as an asset portfolio

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

MANAGING SHAREHOLDERS’ FUNDS OPTIMALLY

REQUIRES CONTINUAL FOCUS ON CAPITAL

DEPLOYMENT. WE SEE THE BUSINESS AS AN ASSET

PORTFOLIO WHERE CAPITAL IS CAREFULLY MANAGED

TO MAXIMISE RETURNS.

AngloGold Ashanti Annual Integrated Report 2011

Our strategy

Strategy in practice: 2008 asset assessment delivers results

Through continuous assessment and evaluation of the

portfolio, actions to improve operational performance at

existing assets were identified. The portfolio was also

rationalised, and new opportunities identified.

An internal assessment of our asset portfolio by region was

undertaken in 2008, and the same assessment was

undertaken in September 2011.

All operations were assessed as to whether they had

delivered:

In 2008, three operations – Geita, Cerro Vanguardia and

Obuasi showed evidence of being a ‘material risk’ given the

cash flow drained from the company. Only two operations

– in South Africa and Australia – showed ‘solid

performance’ and no best-performance assets were

identified. EBITDA from each region was also charted as a

fundamental measure of performance.

By 2011, the picture had significantly changed (see

below). No operations evidence ‘material risk’ and while

a few still require improvement, most operations show

a ‘solid performance’ or ‘good trends’ towards a

turnaround. Free cash flow has improved significantly.

● Best performance
▼ Solid performance

▲

Turnaround – good trends

■

Improvement needed

◆

Cash drain – material risk

United States

Cripple Creek & Victor

▲

Brazil

Serra Grande

■

AGA Mineração

▼

Argentina

Cerro Vanguardia

▼

Guinea

Siguiri

▲

Mali

Yatela

▲

Sadiola

▲

Ghana

Iduapriem

▼

Obuasi

■

Namibia

Navachab

■

South Africa

TauTona

▲

Mponeng

■

Surface operations

▼

Moab Khotsong

▲

Great Noligwa

▲

Kopanang

▲

Tanzania

Geita

▼

Australia

Sunrise Dam

▲

September 2011 operational

performance assessment

● a “best performance”
▼ a “solid performance”

▲

was showing a turnaround – with good trends

■

improvement was needed

◆

was a cash drain and a material risk as a result.

EBITDA

($m)

South Africa

Continental Africa

Australia

Americas

Group

680

1,412

1,111

739

190

255

3,014

1,131

Free cash flow

($m)

195

525

833

How we are implementing this strategy

Growth is included as a core strategy as it is a key longer-term

driver of cash flow and financial performance and is essential,

if we are to meet our targets, for the sustained delivery of

shareholder returns.

We have set ambitious targets for production growth.

Our objective is to achieve a gold production base of between

5.4 and 5.6Moz by 2015, increasing current output by some

22% over the 2010 baseline. We are also targeting increased

contributions from uranium.

Our growth targets will be achieved through:

•

Greenfield exploration which is a key value driver, enabling

the business to generate production ounces at competitive

cost. Major discoveries have been recorded by our

greenfield exploration team in Colombia, Australia and the

DRC. During the year, we continued to advance exploration

opportunities across target areas in Colombia, the Tropicana

belt in Australia, the DRC, the Middle East and North Africa,

and in the Solomon Islands. Tropicana, the product of

successful greenfield exploration, is scheduled to pour its

first gold in late 2013. As a result of this work, we have now

established an exceptional portfolio of global exploration

projects, with the potential to add significantly to our

production profile over the next 10 years. See page 56 of

our Annual Financial Statements

•

Brownfield exploration where we leverage our current

infrastructure at existing operations by increasing reserves or

making new discoveries in close proximity to operations.

Brownfield exploration is a low-risk option for growth

which generates significant value. For example, extensive

brownfield exploration has taken place at Cerro Vanguardia in

Argentina and Cripple Creek & Victor in the USA with good

results. At the Córrego do Sítio mine in Brazil, successful

brownfield exploration has led to the development of a new

operation. Production at this mine began in November 2011.

See page 58 for further details and the Annual Financial

Statements .

•

Organic growth is achieved through effective project

development, bringing a range of projects to successful

production. Teams are engaged in progressing heap

leach and underground projects at Cerro Vanguardia;

expansion at Cripple Creek & Victor, at Tropicana in

Australia; in Continental Africa, advancing the Kibali and

Mongbwalu projects in the DRC and the Sadiola Deep

Sulphide projects in Mali, contingent on the completion

of bankable feasibility studies. See page 56 for further

details and the Annual Financial Statements

•

We will selectively pursue value-accretive merger and

acquisition opportunities as they arise.

•

We will maximise the value from other commodities,

including uranium, within our existing and developing asset

portfolio.

The components of our growth strategy work together to

create a range of options for investment in future production

ounces, enabling us to define a growth path which will

continue to build a portfolio of high-quality assets.

Our strategy and strategic objectives –

Grow the business

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

WE ARE DEVELOPING A RANGE OF OPTIONS FOR

GROWTH, RECOGNISING THAT THIS IS A KEY DRIVER OF

VALUE. OUR GROWTH FOCUS IS BALANCED BY THE

IMPERATIVE TO GENERATE SUSTAINABLE RETURNS

FROM CURRENT OPERATIONS.

AngloGold Ashanti Annual Integrated Report 2011

Our strategy

Strategy in practice: Acquiring cost-competitive ounces through greenfield
exploration

AngloGold Ashanti’s greenfield exploration strategy has

enabled the addition of production ounces at relatively

low cost. By way of example, the acquisition cost per

ounce for the Kibali Gold project was $37/oz, and our

greenfield/brownfield exploration cost per ounce is in the

region of $30/oz.

Our objective is to achieve a return greater than 25%

on exploration investment. Discovery costs are targeted

at $25/oz. We estimate that, since 2002, we have

generated extensive value in our exploration portfolio

from these recent discoveries. If prices paid for several

recent acquisitions are applied to the ounces discovered

(some in excess of $300/oz for projects still in exploration

phase) the intrinsic value of these discoveries could run

into billions of dollars.

Our portfolio of exploration assets is carefully managed to

ensure an adequate balance between early stage and

advanced projects in known and emerging exploration

regions. Projects are either wholly owned or undertaken in

partnership with others, to maximise the range of

opportunities in which we can participate while balancing

risk. Local partners bring valuable country or regional

knowledge. Strategic partnerships at regional level, such as

our joint venture with Thani Industries in the Middle East and

North Africa, enhance our ability to add to our exploration

portfolio in a way that manages risk and is value-accretive.

Significant progress has been made through this partnership.

In 2009, the exploration team expanded its activities

to include marine exploration, forming a partnership

with De Beers to explore on the continental shelf. This

programme is continuing in 2012.

For 2012, expensed exploration expenditure of $232m is

planned. In addition $150m will be spent on various

studies. See page 56 for further details.

We frequently review our exploration portfolio to ensure

that exploration assets that do not meet our investment

criteria can be sold to generate funding for future

positions and opportunities and to ensure that an interim

return is captured.

Prefeasibility

Resource definition/

conceptual studies

Drill

testing

Drill target

definition

Target

generation

Project

generation

Early-stage exploration

Mid-stage exploration

Late-stage

Exploration

4-5 years

3-4 years

2-3 years

1-2 years

Konga

Mase / Kele JV

New Georgia JV

Solomon Islands

Hutite

Hodine (Anbat)

Egypt

Mont Tsi, Northwest

Kilo (AGK)

DRC

Saraya, Kounkoun

Blocks 2/3

Blocks 2/3/4

Guinea

Analma-Toche, Quebradona

Colombia Regional

Iceberg, Sidecar, Dragonfly

Beaker, Animal

Tropicana JV, Viking

Havana Deeps, Boston Shaker

How we are implementing this strategy

This core strategy not only reflects our values-based

approach, but also recognises that sustainability performance

is key to ensuring that the company can secure and maintain

its social licence to operate.

AngloGold Ashanti’s operations are managed as four regions

across a diverse range of jurisdictions. Each region manages a

unique set of sustainability priorities, issues and risks reflecting

the local context, the operation and key business objectives.

A global sustainable development framework is currently being

developed which reflects the need for an integrated approach,

recognising the linkages that exist between the various areas

of sustainability management and the need for cross learning

throughout the group. A key deliverable in terms of this

framework will be the implementation of more consistent

strategies for managing community relationships across

AngloGold Ashanti’s operations.

AngloGold Ashanti reports annually on sustainability

performance. More detail on the issues and strategies in

this area is available in our Sustainability Report.

Our strategy and strategic objectives –

Embrace sustainability principles

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Strategy in practice:
Incorporating sustainability principles through the project life cycle

AngloGold Ashanti considers a range of sustainability

principles at each stage of the project life cycle, from

exploration to project development, through the operating

life and ending in closure.

During 2011, steps were taken to strengthen the way

sustainability principles are applied at the exploration phase

of projects. The greenfield exploration business unit

manages exploration across 17 countries, with projects in

Australia, Colombia and the DRC at an advanced stage of

development. We are in the process of enhancing capacity

in the area of sustainability management, based on an

understanding that:

•

greenfields exploration is a critical area of business

growth;

•

exploration activities have the potential to affect local

communities and the local environment both positively

and negatively; and

•

the integration of sustainability principles into exploration

programmes enables the company to mitigate project

risk more effectively; avoid project delays, which

frequently result from a lack of community support; and

take advantage of opportunities to create world-class

operations.

Processes for non-technical due diligence in respect of

exploration projects were introduced during 2011 and

these processes were piloted at AngloGold Ashanti’s joint

venture in the Solomon Islands. A multi-disciplinary due

diligence team, including specialist sustainability expertise

drawn from the group, spent a week in the Solomon Islands

evaluating the site work completed to date by the

managing joint venture partner and using AngloGold

Ashanti’s existing and emerging corporate sustainability

standards as a framework. A series of recommendations

were made as a result of the study, focusing on the

reduction of current and future non-technical risks.

This due diligence exercise was the first step in a longer

term programme of improving oversight of greenfields

exploration programmes, which will enable AngloGold

Ashanti to better identify key risks early in the life cycle of

mining projects and to mitigate these risks more effectively.

LONG-TERM VALUE CREATION IS DEPENDENT ON THE

QUALITY AND SUSTAINABILITY OF OUR RELATIONSHIPS

AND OUR ABILITY TO CREATE MUTUAL VALUE WITH

BUSINESS AND SOCIAL PARTNERS.

AngloGold Ashanti Annual Integrated Report 2011

Letter from the chief executive officer

Letter from the
chief executive officer

To our shareholders and business and
social partners

It has been another milestone year for your company. The

recent years of hard work fortifying the balance sheet and

building the framework for sustained business improvement

has helped propel AngloGold Ashanti’s cash flow from

operating activities to $2.66bn, and adjusted headline earnings

to $1.3bn, both records. At the same time we have rebuilt our

operating foundations positioning the business for physical

growth and improving financial performance.

2011: Improved returns and a platform
for growth established

As the year progressed, AngloGold Ashanti’s unique value

proposition became increasingly clear. The company not only

generated peer-group leading returns and cash flow yields,

but also advanced projects through the pipeline toward its

goal of growing production by 24% to between 5.4 and

5.6Moz by 2015. Our portfolio of growth projects that will take

us to this goal are either in the final study phases or are in

physical development. Importantly, we continue to improve

our competitive position as these projects are priced well

below the industry average capital cost, with associated

competitive operating costs. The combination of these two

factors will help support our industry-leading capital returns.

These are strong differentiating factors in an industry

struggling to increase output amid soaring capital expenditure

bills. While the target is undoubtedly challenging, it remains

eminently achievable given our drive to enhance the

organisation’s overall execution capability levels, from both

within and outside the mining industry.

The higher gold prices seen last year more than vindicated the

decision made in October 2010 to eliminate the legacy, out-

of-the-money hedge positions which created a significant

drag on earnings and cash flow. With full exposure to the

rising gold price for an entire year, free cash flow rose by 59%

from 2010, while adjusted headline earnings were 65% higher

at $1.3bn – both record figures. AngloGold Ashanti ended the

year with a net debt of $610m, reinforcing the health of the

underlying business and the continually improving quality of

earnings.

FOUNDATION
LAID FOR
RETURN TO

POD

CAST:

Mark Cutifani,
Chief Executive Officer

Podcast available at:

www.aga-reports.com/11/podcasts.htm

Mark Cutifani, chief executive officer

Letter from the chief executive officer

continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Given the surging cash inflows, a decision was taken by the

board in November 2011 to switch to quarterly dividends in

order to provide a more timely return to shareholders, and to

improve the pay-out in absolute terms. The full year dividend

of 380 SA cents per share was 235% higher than 2010. This

increase continues to deliver on the Board’s determination to

ensure shareholders participate in the improved fortunes of the

company, while at the same time ensuring that our exciting

pipeline of growth projects can be funded from internal

sources and our investment-grade rating is maintained.

Improved capability among our operating teams, alongside the

continued rollout of AngloGold Ashanti’s Project ONE business

improvement initiative, detailed on page 23, together helped

achieve significant operational success during 2011. The

stand out in the portfolio was Geita in Tanzania, which returned

to its position as a cornerstone asset for the group. From this

mine’s nadir in 2008, when it produced 264,000oz and total

cash costs of $728/oz, the operating teams have achieved a

remarkable turnaround. In 2011, Geita produced 494,000oz

at a total cash cost of $536/oz, which represents an

improvement of $583m in mine operational cash flow since 2008.

A strong operational performance
despite headwinds

Our operating teams made strong progress in their business

improvement objectives during 2011, despite a series of strong

headwinds during the year. Production for the 12 months was

4.33Moz at a total cash cost of $728/oz, with an average

exchange rate of R7.26/$ during the year. That was in line with

revised guidance, but fell short of initial guidance of 4.55Moz to

4.75Moz at a total cash cost of $660/oz to $685/oz.

Obuasi was a key area of focus for AngloGold Ashanti and,

for me in particular, with a sustained improvement in its

overall performance a key objective set by the board. This

operation has a well-documented suite of operating and

sustainability-related challenges, but remains one of the

world’s great orebodies with a resource base of more than

30Moz. The operating taskforce appointed at the beginning

of the year made great strides not only in stabilising its

operating processes but also in looking at options to ensure

a prosperous future for all stakeholders. By delivering

production of 313,000oz at a total cash cost of $862/oz, the

mine achieved its targets for the year and delivered cash

flow, after all sustaining capital expenditures, of $39m. This

compares with $8m the previous year. There remains much

to do here, but the progress already made provides a solid

platform to begin the march back toward annual production

of 500,000oz in coming years.

In Australia, a major flood occurred in February, which

exceeded the one-in-one-hundred year record. Surface

infrastructure at Sunrise Dam was damaged and the

underground mine was inundated with water, which

disrupted underground operations for approximately four

months. In a related event, the main access ramp to the

active open pit was lost when a section of the pit wall failed.

Open pit mining was suspended for over six months while a

new access ramp was established. This caused a 62% drop

in output to 246,000oz and a concomitant rise in costs to

$1,367/oz. Graham Ehm’s team in Australia worked hard to

steady the operation while including in its long-term

development the exciting new discovery of the Vogue

orebody lying beneath the current workings. The new deposit

appears to be conducive to lower cost bulk mining and has

the potential to yield a resource of between 2Moz and 5Moz.

More detail on the long-term potential and future of this

operation will be provided during 2012.

In Continental Africa, Richard Duffy’s team made solid

progress towards stabilising a regional portfolio that has

provided its share of challenges in the past. In 2011, the work

done to substantially improve the performance across the

continent gained traction, evidenced by the $921m increase

in EBITDA since 2008, when our new strategy was launched.

However, there remains urgent operating challenges for us

to address, particularly at Siguiri in Guinea, where a shortfall

in grade curtailed production in 2011. The remedy here lies

in the aggressive drilling campaign already under way to

improve knowledge of the orebody. An ancillary benefit of this

work was the discovery of a seemingly rich patch of ore close

to the operating plant, which will further improve the long-

term growth prospects for this tier-one gold resource. Both

Sunrise Dam and Siguiri present the key operating challenges

for us in the year ahead and plans are in place to ensure their

fortunes improve.

Our South African region continued to hold its title as chief

cash contributor to the group, with the highest quality and

best-run suite of assets in the country, and margins among

the best in the world. A decision taken early in the year to

halt the extraction of the shaft pillar at TauTona, in the

interests of safety, cost 37,000oz, whilst Section 54

* Based on a predicted exchange rate of R7.40/$

AngloGold Ashanti Annual Integrated Report 2011

Letter from the chief executive officer

production stoppages cost another 73,000oz. A short

strike during the year, which cut production by some

45,000oz, presaged a mutually beneficial two-year

settlement with major unions which increased local payroll

costs by around 8.3%. Our engagement with our partners

in labour, while undeniably robust, remains constructive and

respectful. An important outcome of the mining talks is the

undertaking in principle of all parties to investigate methods

that will better utilise our fixed assets, which benefit from

shift-work on only 270 of 365 days in any year, given

sporadic weekend work and extended vacation breaks.

In other jurisdictions, mines are typically operated for

330 days or more, per year. This represents a fortuitous

opportunity to not only improve production and returns from

enormous sunk infrastructure in South Africa, with no

significant capital commitment, but to arrest the declining

employment profile of the gold mining industry. We hope to

report on progress in this regard during 2012.

The gold market

While the operational ‘engine room’ of the business has never

been in better shape, prevailing trends in the gold market

continue to give us cause for optimism. Demand and supply

fundamentals, as well as the reigning uncertainty in global

markets, all underpin a bull market now in its 10th year. Bullion

touched a record closing price of $1,900/oz in September

2011 before settling lower at $1,563/oz at year-end. This

represented an 11% gain for 2011, significantly outperforming

all benchmark equity indices across the globe.

Demand for gold from central banks the world over continued

to grow. After decades of selling, consumers adapted quickly to

higher prices and gold exchange traded funds continued to

grow in popularity among investors of all kinds. Still, the supply

response from the industry in these times of plenty remained

somewhat muted as constraints to new production, including

remoteness, lack of infrastructure, permitting delays and a

dearth of new discoveries, intensified. Meanwhile, the price was

driven higher by a range of factors in different markets, such as

concerns over inflation in India and China, wrangling over lifting

the debt ceiling in the US, and the intensification of the debt

crisis threatening the Eurozone. We believe that a quick and

clean resolution to any one of these challenges remains elusive

in the short to medium term, ensuring on-going support of gold

as a safe harbour investment for the foreseeable future.

It is important to note that once the overall macroeconomic

picture improves, the radically expanded balance sheets of the

world’s largest economies are likely to present a serious

inflationary threat, potentially limiting downside for some time

to come.

The equity market

While gold prices fared well, much of the investment

community remained perplexed at the relative poor

performance of gold equities which lagged the metal during

the year. In our view, general weakness in global equities,

alongside increased resource nationalism across the world, the

constant threat of higher taxes and royalties in several

prominent operating jurisdictions, difficulties in achieving

growth and operating targets, poorly judged acquisitions by

some peers, unchecked costs, and runaway capital

expenditure across the sector, were among the factors that

together conspired to dull investor appetite for gold stocks.

The impact on South African-domiciled gold stocks was

compounded by a proposal from the African National

Congress Youth League and others concerning nationalisation

of the country’s mining assets. While the government at all

levels has made clear that nationalisation will not form part of

its policy – a view AngloGold Ashanti’s management fully

endorses – the increased rhetoric continued to receive

intensive coverage at home and abroad, which unsurprisingly

depressed gold equity valuations.

To counter these headwinds and improve the performance of

the equity, we initiated a concerted shareholder marketing

effort in the second half of the year to clearly communicate

AngloGold Ashanti’s relative value proposition and defuse fears

over expropriation, which we believe to be largely unfounded.

We also worked to expound on the strategies in place to

further diversify the portfolio, to manage costs through the

ONE model, to increase output with an unmatched suite of

projects, to place continued focus on capital discipline and to

further improve returns to shareholders.

Leadership in technology

We are pursuing an exciting opportunity in South Africa to

capture the benefits of technology to safely unlock a resource

of more than 70Moz at the deeper reaches of our resource

base. Work is now into its second year with a multi-disciplinary,

open consortium convened by AngloGold Ashanti, which

Letter from the chief executive officer

continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

counts among its members international luminaries like

General Electric, Schlumberger, 3M, Atlas Copco, ABB,

Sandvik, SNC Lavalin and a range of other specialists and

universities. We have formed teams to tackle a spectrum of

challenges ranging from data management and organisational

change, to environmental management, mine design, rock

breaking and underground logistics, among others. This puts

us at the forefront of the drive to extract minerals at depth,

both safely and profitably. Far from being an academic

exercise, we plan to begin testing machinery and mining

methods developed by the consortium early next year at our

Vaal River operations.

Rather than look at alternatives, like replacing manual labour

with mechanised, larger-scale mining methods, the thrust of

our prototype work will be in re-purposing existing tunnel

boring and ore-transport methods already in use elsewhere in

the mining universe, and to remove the traditional, but

inherently inefficient and unsafe stop-start ‘drill-and-blast’

mining method. In addition to the obvious safety benefit,

shared research and development investment among several

parties makes this a cost-effective exercise. This, in turn, will

open a wealth of opportunities for AngloGold Ashanti.

Robbie Lazare was an early champion of technology in his role

as Executive Vice President: South Africa. During the year he

was succeeded by Mike O’Hare, his long-time lieutenant with

a wealth of operating experience across the continent. Robbie

continued work on the executive committee with a wider brief

that encompassed long-term strategic planning, sustainability

and job creation. He leaves AngloGold Ashanti in 2012 after

30 years of distinguished service, most recently in effecting the

turnaround of the South African operations in 2009/2010. We

wish him well in his retirement.

Safety

A primary benefit of this technology’s application is the

creation of a safer workplace. There is no more eloquent

reminder of the urgency in creating a step-change

improvement in safety than the 15 colleagues who lost their

lives in accidents during the year. Nine of these fatalities were

recorded in South Africa, three in Ghana, one in Brazil, one in

Colombia and one in Eritrea. These tragedies blight what

remains important progress made in lowering benchmark

incidence rates. Since 2006, injury frequency rates have

more than halved, and fatality rates are more than 60%

better, placing us well ahead of our South African peers.

There is no end to the effort and resources we will expend to

eliminate injuries from our sites and 2012 will see this push

continue as we accelerate the rollout of Project ONE. This

operating model carries with it a host of ancillary safety

benefits born of better planning and scheduling, as well as

heightened awareness of risk at all levels in the business. It is

of vital importance that, as the fortunes of this business

improve, everyone enjoys the benefits, together.

Integrating sustainability into the
business

Through this Annual Integrated Report, we have tried to ‘paint

a picture’ for stakeholders of all aspects of our business – the

risks and opportunities we face, our objectives and targets, the

strategies we have developed in response and indeed the

persona of the business. We recognise that ‘people are the

business’ – those within the company, those who interact with

the company, and those around the company – and that we

have a duty and responsibility to engage and interact with

them, and to understand and to meet their expectations of

being a responsible citizen. A report such as this can only

provide a snapshot, however, and we have made more

detailed, specific and localised reporting on our website.

Although we have produced a separate Sustainability Report,

it is important to understand that sustainability as we

understand it is that which underlines the long-term viability of

our business. An important development during the year has

been the development of a sustainable development

framework for the group which, like our values, will ensure a

consistency of interaction and approach across the group, but

that will address the needs embedded within specific

operations and locations.

Executive

In September 2011, we bade farewell to Thero Setiloane,

our executive vice president for sustainability. Thero has

joined Business Leadership South Africa, an organisation

representing the 84 largest businesses in South Africa, of

which AngloGold Ashanti is a member. In 2011, also

welcomed to the executive were Ria Sanz as Group General

Counsel, and Italia Boninelli as Executive Vice President –

people and organisational development.

AngloGold Ashanti Annual Integrated Report 2011

Letter from the chief executive officer

Ria joined AngloGold Ashanti in June 2011 and is responsible

for the legal function for the group, compliance and company

secretarial. Italia joined AngloGold Ashanti in October 2010

and is responsible for the company’s people strategy,

transformation and change management initiatives.

Looking ahead

We must redouble our efforts in 2012 to further press our

advantage and make clear to current and potential

shareholders the competitive edge in operational diversification,

cash flow, returns and growth that set this business apart. With

superior cash flows, we aim to fund all expansions from internal

sources, as we improve the overall balance of the portfolio.

With additional contributions expected from Australia,

Continental Africa and our Americas regions, as well as a

steady contribution from our prized West Wits and Vaal River

assets, South Africa will account for roughly 30% of production

by 2014, from current levels of 37%.

The first of our greenfield projects that will take us to our

medium-term production goal of between 5.4Moz and

5.6Moz, continued to progress well. Tropicana, in Western

Australia, concluded its first year in development and is on

budget and on schedule to pour first gold in 2013, no mean

feat in the current operating environment. All the while, the

resource base continued to grow as predicted, improving

the prospects that the elevated production planned for the

initial three years of operation can be sustained for a longer

period. Similarly, the Kibali joint venture and the Mongbwalu

project in the DRC continued to grow their endowments with

increased drilling, while still keeping to their timetables.

Funding of critical path items for both projects continued in

the first quarter of 2012, ahead of board approval

anticipated in the first half of the year.

Of the raft of brownfield projects that will contribute to the

medium-term growth target, the first, at Córrego do Sítio in

Brazil, began producing on schedule in November 2011,

while the work towards adding incremental production from

heap leach and underground sources at Cerro Vanguardia,

Argentina, continued apace. Our project teams also

continued work to complete final feasibility studies for the

Deep Sulphide project at Sadiola, Mali, and the further

expansion at CC&V in the US. The Continental Africa group,

with support from the technical development and

sustainability groups, made progress on the blueprint for long-

term growth at Obuasi, in Ghana. The fact that each of these

projects are already permitted lends rigour and certainty to

our growth plan and further sets us apart from peers.

Filling that project pipeline through exploration remains a

priority for us, as it has done for more than a decade. We

have a proud record of adding new ounces to our

endowment from greenfield and brownfield drilling, at less

than $30/oz over time. Strong reserve and resource additions

were made in the US, Colombia and Australia, which helped

grow reserves by 6% to 75.6Moz and resources by 5% to

230.9Moz. Rather than focus on large acquisitions to fuel

growth, as several of our peers are forced to do owing to a

lack of exploration success, our primary goal is to continue to

grow resources through the drill-bit. This provides the best

return on investment available.

The exploration budget of $465m for 2012 includes spending

on feasibility studies, with a focus on advancing projects and

adding ounces at properties including those in Australia, the

DRC, Egypt, the Solomon Islands, Guinea, Colombia, Brazil

and the US. Our world-class exploration team has four

greenfield discoveries under its belt and continues to

dominate some of the best real estate in the gold sector. We

believe more significant discoveries will follow.

In closing, I would again like to thank our shareholders for

their loyalty as well as our host communities and

governments for continuing to work with us in responsibly

developing their mineral patrimony. And to every one of my

colleagues at AngloGold Ashanti, thank you again for

another year of focus and hard work in a year that presented

its fair share of challenges, as we moved toward our long-

term goal of building the world’s leading mining company.

Mark Cutifani

Chief executive officer

16 March 2012

Each year, we will report back to shareholders on the progress that we have made towards achieving these targets. The social

licencing targets were only introduced in 2011 and we will report against these in 2012.

Progress against targets

Target

Progress

2010 – 2011

Safety:

Five-year targets and scorecard

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

In 2010, the AngloGold Ashanti board agreed a set of five-year targets for the period 2011 to 2015. These five-year targets are aligned

with our strategy.

AngloGold Ashanti may not be able to reach these goals. Refer to the section titled ‘Forward-Looking Statements’ on p.1 of this

report, to the section titled ‘Risk review’ on page 15 of this report, and to the section titled ‘Risk Management and Risk Factors’

in the Annual Financial Statements.

Five-year targets (2011 to 2015)

Delivery targets

Five-year delivery targets

Relevant performance indicators

Safety

All injury frequency rate (AIFR) of less than

All injury frequency rate

9 per million hours worked

Productivity

20% improvement in productivity (base year 2010)

Productivity per total employee costed

Environmental performance

30% reduction in reportable incidents

Number of reportable environmental incidents*

(base year 2010)

Production volumes

20% increase in production to between

Total gold production

5.4Moz and 5.6Moz (base year 2010)

Total cash costs

20% decrease in real unit costs

Total cash costs ($/oz)

(excluding mining inflation, royalty and

fuel price impact) (base year 2010)

Financial performance

Delivery of returns to shareholders of 15% through

Return on shareholders equity

the cycle

Social licencing

40% improvement through to 2015

Number of operational interruptions

Approvals withheld or delayed on account of

inadequate community engagement

Value added through community engagement

Base: Actual three-year rolling average

2008 to 2010 of 13.68 per million

hours worked

Actual 2011: 9.76 per million hours

worked

Improvement on base rate

of 29%

Target: To achieve an

AIFR of less than

9 per million hours

worked, we must

reduce our AIFR by

34% by 2015.

(per million hours worked)

29%

decrease

(2010-2011)

13.68

9.76

AIFR

Base rate

2011

2015 target

Progress against targets

Target

Progress

2010 – 2011

AngloGold Ashanti Annual Integrated Report 2011

Five year targets and our progress against them

Return on total shareholder equity:

Base: 20%

Actual 2011: 25%

Target exceeded in 2011

Return on net capital

employed 2011: 20%

Target: To achieve a

return on total

shareholder equity of

15% through the cycle

to 2015.

(%)

Return on shareholder equity

Base rate

2011

2015 target

25%

increase

(2010-2011)

Productivity:

Base: 9.15oz/TEC in 2010

Actual 2011: 9.32oz/TEC in 2011.

Improvement from base rate

of 1.85%

Target: To achieve a

20% improvement in

productivity (oz/TEC),

we must increase

productivity to

10.98oz/TEC by 2015.

(oz/TEC)

9.15

9.32

10.98

Productivity

Base rate

2011

2015 target

1.85%

increase

(2010-2011)

Environmental performance:

Base: 27 environmental incidents

reported in 2010

Actual 2011: 27 environmental

incidents reported in 2010

Continental African sustainability

projects should improve performance

Target: To achieve a

30% reduction in

reportable incidents, we

must reduce the number

of environmental

incidents to less than 19

a year by 2015.

Environmental incidents

Base rate

2011

2015 target

no improvement

(2010-2011)

Production:

Base: 4.51Moz in 2010.

Actual 2011: 4.33Moz

2011 actual production adversely

affected by floods in Australia and

Section 54 stoppages in South Africa

Target: To produce

between 5.4Moz and

5.6Moz by 2015, we

must increase

production by at least

20% by 2015.

(Moz)

4.51

4.33

5.4

Production

Base rate

2011

2015 target

decrease

(2010-2011)

Total cash costs:

Base: $638/oz

Actual 2011: $728/oz ($645/oz

excluding mining inflation, royalty and

fuel price impact)

2011 actual unit cash cost

performance affected by production

The impact in 2011 compared to 2010

of foreign currencies against the

US dollar was not significant

Target: To achieve a

20% improvement in

real unit costs by 2015,

we must reduce real

unit costs to $510/oz by

2015.

($/oz)

638

645

510

Total cash costs

Base rate

2011

2015 target

increase

(2010-2011)

Operations at a glance

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Attributable tonnes

Average

Attributable

treated/milled

grade recovered

gold production

(Mt)

(g/t)

(000oz)

Operation

2011

2010

2009

2011

2010

2009

2011

2010

2009

South Africa

1,624

1,785

1,797

Vaal River

Great Noligwa

0.5

0.7

0.9

5.58

5.99

5.73

132

158

Kopanang

1.5

1.6

6.47

6.13

6.74

307

305

336

Moab Khotsong

0.9

1.0

0.8

9.39

9.03

9.36

266

292

247

Tau Lekoa

(1)

–

0.6

1.2

–

3.32

–

124

Surface operations

10.7

10.2

9.7

0.48

0.54

0.53

164

179

164

West Wits

Mponeng

1.6

1.7

1.9

9.71

9.48

8.66

500

532

520

Savuka

0.2

0.1

0.2

6.69

5.30

5.45

TauTona

(2)

1.0

1.1

1.5

7.55

7.01

7.29

244

259

218

Continental Africa

1,570

1,492

1,585

Ghana

Iduapriem

4.3

3.4

1.44

1.70

1.72

199

185

190

Obuasi

(2)

2.0

2.6

4.6

4.82

5.16

5.18

313

317

381

Guinea

Siguiri (85%)

9.7

8.8

0.79

0.97

1.11

249

273

316

Mali

Morila (40%)

1.8

1.7

1.70

2.47

137

Sadiola (41%)

(3)

2.0

1.8

1.7

1.90

2.04

2.52

121

118

135

Yatela (40%)

(4)

1.1

1.2

1.1

1.04

1.23

3.62

Namibia

Navachab

1.4

1.5

1.3

1.46

1.80

1.58

Tanzania

Geita

3.9

4.7

4.5

3.98

2.36

1.89

494

357

272

Australasia

246

396

401

Australia

Sunrise Dam

3.6

3.9

2.16

3.40

3.22

246

396

401

Americas

891

842

816

Argentina

Cerro Vanguardia (92.5%)

1.0

0.9

6.23

6.11

6.51

196

194

192

Brazil

AGA Mineração

(2)

1.7

1.6

1.5

7.43

7.21

7.02

361

338

329

Serra Grande (50%)

0.6

0.5

3.59

4.05

4.52

United States

Cripple Creek & Victor

(4)

20.3

20.6

18.7

0.39

0.43

0.46

267

233

218

AngloGold Ashanti

4,331

4,515

4,599

(1)

Sold in August 2010.

(2)

The yields of TauTona, Obuasi and AGA Mineração represent underground operations.

(3)

Prior to 29 December 2009, AngloGold Ashanti’s shareholding in Sadiola was 38%.

(4)

The yields of Yatela and Cripple Creek & Victor reflect recoverable gold placed/tonnes placed from heap leach operations.

Capital

Total cash costs

expenditure

($/oz)

($m)

Operation

2011

2010

2009

2011

2010

2009

South Africa

694

598

466

532

424

385

Vaal River
Great Noligwa

1,194

884

794

Kopanang

681

613

406

Moab Khotsong

689

588

424

147

120

104

Tau Lekoa

(1)

–

921

718

–

Surface operations

660

485

341

West Wits
Mponeng

546

453

329

172

122

109

Savuka

864

1,100

1,115

TauTona

818

700

559

Continental Africa

765

712

608

420

234

198

Ghana
Iduapriem

853

666

516

Obuasi

862

744

630

132

109

Exploration and other

–

Guinea
Siguiri (85%)

862

643

519

Non-controlling interests and exploration

–

Mali
Morila (40%)

(2)

810

715

527

Sadiola (41%)

(2) (3)

792

650

488

Yatela (40%)

(2)

1,543

807

368

Namibia
Navachab

1,038

727

622

Tanzania
Geita

536

777

954

Democratic Republic of the Congo
Kibali (45%)

(2)

–

Other

–

Australasia

1,431

982

662

102

177

Boddington (33.33%)

–

146

Sunrise Dam

1,367

957

646

Tropicana (70%)

–

Exploration and other

–

Americas

528

432

362

456

311

258

Argentina
Cerro Vanguardia (92.5%)

393

366

355

Brazil
AGA Mineração

525

407

339

259

142

Serra Grande (50%)

767

481

406

United States
Cripple Creek & Victor

564

493

376

Other
Non-controlling interests and exploration

–

Other

–

Sub-total

1,527

1,015

1,027

Equity-accounted investments included above

(88)

(42)

(8)

AngloGold Ashanti

728

638

514

1,439

973

1,019

(1)

Sold in August 2010.

(2)

Equity-accounted investments.

(3)

Prior to 29 December 2009, AngloGold Ashanti’s shareholding in Sadiola was 38%.

AngloGold Ashanti Annual Integrated Report 2011

Operations at a glance

Average number of

All injury frequency

people employed

rate (per million

Reportable

(including contractors)

hours worked)

environmental incidents

Operation

2011

2010

2009

2011

2010

2009

2011

2010

2009

South Africa

(1)

32,082

35,660

37,425

15.57

16.69

17.72

Vaal River

Great Noligwa

2,967

3,315

4,739

23.92

21.63

17.51

Kopanang

5,892

5,938

6,059

23.18

21.86

22.71

Moab Khotsong

6,581

6,452

6,069

20.48

19.72

28.82

Tau Lekoa

(2)

–

2,737

3,114

–

32.41

26.39

Surface operations

745

374

234

6.44

5.99

9.10

West Wits

Mponeng

5,788

5,778

6,029

15.39

15.93

14.31

Savuka

815

981

1,054

8.39

7.69

13.23

TauTona

4,507

4,609

4,293

13.36

19.03

15.84

Other

4,787

5,476

5,834

–

Continental Africa

16,539

15,761

15,267

3.03

5.26

6.09

Ghana

Iduapriem

1,543

1,483

1,447

6.61

9.73

12.26

–

Obuasi

5,538

5,722

5,759

2.37

2.86

4.73

Guinea

Siguiri (100%)

3,666

3,170

2,973

1.27

6.15

5.54

–

Mali

Morila (40%)

(3) (4)

328

356

421

–

Sadiola (41%)

(4)

756

726

582

2.44

1.65

2.31

–

Yatela (40%)

(4)

377

352

321

1.52

2.28

5.54

–

Namibia

Navachab

790

687

578

2.00

25.60

26.30

–

Tanzania

Geita

3,541

3,265

3,186

3.60

5.38

5.56

–

Australasia

509

494

1,776

18.11

13.10

8.64

–

Australia

Sunrise Dam

509

494

455

19.40

13.65

8.94

–

Boddington

–

1,321

–

Americas

7,389

6,582

5,884

6.33

5.66

7.12

–

Argentina

Cerro Vanguardia (100%)

1,644

1,242

1,069

1.59

8.08

9.34

–

Brazil

AGA Mineração

3,825

3,426

2,964

4.05

2.62

4.19

–

Serra Grande (100%)

1,339

1,268

1,289

3.48

7.22

8.99

–

United States

Cripple Creek & Victor

581

646

562

19.80

12.26

15.80

–

Other, including corporate

and non-gold producing

subsidiaries

4,723

3,549

3,012

–

AngloGold Ashanti

61,242

62,046

63,364

9.76

11.50

12.88

(1)

Environmental incidents reported on a regional basis.

(2)

Sold in August 2010.

(3)

Safety statistics for Morila are reported by Randgold Resources, the operator of this mine, and are not included in AngloGold Ashanti’s statistics as this

operation is not managed by AngloGold Ashanti.

(4)

Average number of employees are attributable.

Operations at a glance

continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Total water

Total greenhouse

Total energy usage

consumption

gas emissions

(Million GJ)

(ML)

(ktCO

Operation

2011

2010

2009

2011

2010

2009

2011

2010

2009

South Africa

11.68

12.37

12.34

18,821

20,896

19,649

3,079

3,419

3,396

Vaal River

6.09

6.76

7.03

13,572

15,587

14,330

1,574

1,812

1,894

West Wits

5.58

5.61

5.31

5,249

5,309

5,319

1,505

1,607

1,503

Continental Africa

11.49

11.30

11.13

27,114

24,432

26,344

957

936

969

Ghana

Iduapriem

0.98

1.03

1.05

408

137

Obuasi

1.52

1.53

1.61

8,567

8,369

9,973

203

199

244

Guinea

Siguiri (85%)

2.43

2.37

2.06

6,097

5,265

3,920

184

179

156

Mali

Morila (40%)

Sadiola (41%)

2.00

1.84

1.81

5,992

5,777

6,755

148

137

135

Yatela (40%)

0.62

0.53

1,036

744

1,024

Namibia

Navachab

0.59

0.54

0.47

1,043

1,080

996

Tanzania

Geita

3.35

3.46

3.58

3,970

3,101

3,539

251

261

271

Australasia

2.14

2.27

2.02

4,198

(1)

3,515

(1)

3,720

(1)

130

153

136

Australia

Sunrise Dam

2.14

2.27

2.02

4,059

3,485

3,703

130

153

136

Americas

5.19

4.68

4.31

6,750

5,817

5,426

343

309

287

Argentina

Cerro Vanguardia (92.5%)

1.48

1.37

1.26

939

1,057

818

103

Brazil

AGA Mineração

1.12

1.03

0.94

3,174

2,691

2,703

Serra Grande (50%)

0.45

0.44

0.41

429

393

United States

Cripple Creek & Victor

2.13

1.83

1.71

2,207

1,676

1,854

207

181

173

AngloGold Ashanti

30.49

30.63

29.81

56,883

54,660

55,138

4,509

4,817

4,788

(1)

Australasia total includes groundwater usage at Tropicana of 139ML in 2011, 30ML in 2010 and 17ML in 2009.

AngloGold Ashanti Annual Integrated Report 2011

Operations at a glance

Review of operations and projects

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

EXTENSIVE

PROVIDES OPTIONS

Continental Africa

DRC
Kibali
Mongbwalu
Ghana
Iduapriem
Obuasi
Guinea
Siguiri
Mali
Morila
Sadiola
Yatela
Namibia
Navachab
Tanzania
Geita

Americas

Argentina
Cerro Vanguardia
Brazil
AGA Mineração
Serra Grande
Colombia
Gramalote
La Colosa
United States of America
Cripple Creek & Victor

Australasia

Australia
Sunrise Dam
Tropicana

South Africa

Vaal River
Great Noligwa
Kopanang
Moab Khotsong
Surface operations

West Wits
Mponeng
Savuka
TauTona

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

In 2011, AngloGold Ashanti produced 4.33Moz of gold

(2010: 4.52Moz) as well as 1.38Mlbs of uranium, 2.96Moz of

silver and 206.54 tonnes of sulphuric acid as by-products, and

employed 61,242 people, including contractors, at year-end.

Increased gold production in the Americas and Continental

Africa regions was insufficient to offset declines in South Africa

and Australasia where workplace disruptions and floods

respectively hampered output.

Our exploration programme is extensive yet focused, and

we have five significant greenfield projects – Gramalote and

La Colosa in Colombia, Mongbwalu and Kibali in the DRC and

Tropicana in Australia.

The group’s operations are divided into the following regions:

•

South Africa – includes operations in South Africa;

•

Continental Africa – includes operations in Ghana, Guinea,

Mali, Namibia and Tanzania;

•

Australasia – includes the operation in Australia; and

•

Americas – includes operations in Argentina, Brazil and the

United States.

Accordingly the operations review that follows has been

undertaken on this basis.

For a more detailed account of operational performance, refer

to the Annual Financial Statements

and our website at

www.aga-reports.com.

Group capital expenditure

($m)

1,027

1,015

1,527

Capital expenditure by region

($m)

South Africa

$532m

Continental Africa

$420m

Americas

$456m

Australasia

$102m

Gold production by region

(%)

South Africa

37%

Continental Africa

36%

Americas

21%

Australasia

Contribution to group revenue
by product

(%)

Gold

97%

Uranium

Silver

Sulphuric acid

Average number of employees
by region

South Africa

32,082

Continental Africa

16,539

Americas

7,389

Australasia

509

Other 4,723

(including corporate, greenfield
exploration and non-gold
producing subsidiaries)

Review of operations and projects

continued

– South Africa

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

In South Africa, AngloGold Ashanti has six deep-level mines

and two surface operations. These operations are:

•

Vaal River operations – Great Noligwa, Kopanang, Moab

Khotsong, including surface operations; and

•

West Wits operations – Mponeng, Savuka and TauTona.

These operations produced 1.62Moz of gold in 2011,

equivalent to 37% of group production (Vaal River operations,

51%, and West Wits operations, 49%) and 1.38Mlb of

uranium as a by-product. The South African operations

employed an average of 32,082 people (2010: 35,660).

Regrettably, there were nine fatalities during the year. The AIFR

improved from 17.72 per million hours worked in 2009 to

15.56 in 2011.

Total cash costs in US dollar terms increased by 16% to

$694/oz. Mponeng with a cash cost of $546/oz, was the

lowest cost producer in the region. The South African

operations faced operating challenges during the year,

including a strong rand in the first half, continued interruptions

from Section 54 safety-related stoppages, an industry-wide

strike in the third quarter and a decision taken in the first

quarter to halt mining the main shaft pillar at TauTona to

mitigate safety risk.

Capital expenditure for the region totalled $532m, an

increase of 25% on the $424m spent in 2010. The bulk of this

was spent at Mponeng ($172m), Moab Khotsong ($147m),

Kopanang ($92m) and TauTona ($79m).

AngloGold Ashanti’s Mineral Resource in South Africa totalled

97.63Moz at year-end, and an Ore Reserve of 32.43Moz.

The region has developed a framework to address socio-

economic focus areas within and outside of the business over

a three-year period. This involves government, social and

industry partnerships to address economic gaps created

as the operations mature, and production tapers off over a

10-year period.

on pages 20 to 21.

Risk/uncertainty/challenges

Improving safety performance, particularly in respect
of deep level mine seismicity

Skills shortages and labour relations

Asset integrity relating to aging mine infrastructure

Moab Khotsong and Mponeng life extension projects

Changes to regulatory environment

Potential for inter-mine flooding

Current and legacy groundwater and surface water
pollution

Further development of technology and innovation
strategy to enable safer, deeper mining

Development of socio-economic development
strategy to address technological advances and to
comply with mining licences

Potential disruptions to power supply

Mitigation of potential health impacts, including
silicosis and noise-induced hearing loss (NIHL),
tuberculosis (TB) and HIV/AIDS

oneERP implementation

Gold

Average

production

number of

Operations

(000oz) employees

(1)

South Africa

Vaal River
Great Noligwa

2,967

Kopanang

307

5,892

Moab Khotsong

266

6,581

Surface operations

164

745

West Wits
Mponeng

500

5,788

Savuka

815

TauTona

244

4,507

(1)

Including contractors

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

South Africa – gold production

(000oz)

1,797

1,785

1,624

South Africa – capital expenditure

($m)

385

424

532

37,425

35,660

Including contractors

32,082

South Africa – average number
of employees

32,082

people

employed

1,624

000oz

$532

South Africa – contribution
to production by mine

(%)

Mponeng

31%

Kopanang

19%

Moab Khotsong

16%

TauTona 15%

Surface operations

10%

Great Noligwa

Savuka

(number of injuries and fatalities per million hours worked)

17.72

16.69

15.56

South Africa – AIFR

South Africa: contribution to
group production

(%)

South Africa region

37%

Rest of
AngloGold Ashanti

63%

South Africa – key financial and non-financial statistics

2011

2010

2009

Pay limit

oz/t

0.54

0.53

0.50

g/t

11.98

12.02

12.94

Recovered grade*

oz/t

0.232

0.212

0.201

* underground sources

g/t

7.95

7.28

6.90

Gold production

000oz

1,624

1,785

1,797

Total cash costs

$/oz

694

598

466

Total production costs

$/oz

910

809

617

Capital expenditure

532

424

385

Number of employees

32,082

35,660

37,425

Employees

28,176

31,723

33,355

Contractors

3,906

3,937

4,070

Number of fatalities

Fatal injury frequency rate

per million hours worked

0.11

0.12

0.13

All injury frequency rate

per million hours worked

15.57

16.69

17.72

New cases of silicosis submitted to the MBOD

263

459

409

Compensable cases of NIHL

New cases of TB identified

541

821

974

New cases of occupational lung disease (OLD) identified

169

387

678

Number of employees undertaking voluntary counselling and testing (VCT)

19,133

23,653

30,002

Number of employees on anti-retroviral therapy (ART)

2,378

2,459

2,216

Water usage

18,821

20,896

19,649

Energy usage – direct

Million GJ

0.75

0.84

0.88

– indirect

Million GJ

10.93

11.53

11.46

Greenhouse gas emissions

e (000t)

3,079

3,419

3,396

Cyanide used

(t)

3,913

4,575

4,689

Reportable environmental incidents

Community investment

$000

3,670

3,242

2,962

Review of operations and projects

continued

– South Africa

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

Gold

Average

production

number of

Operations

(000oz)

(1)

employees

(2)(3)

Ghana

Iduapriem

199

1,543

Obuasi

313

5,538

Mali

Morila

328

Sadiola

121

756

Yatela

377

Guinea

Siguiri

249

3,666

Namibia

Navachab

790

Tanzania

Geita

494

3,541

Average

number of

Projects

employees

(2)(3)

DRC

Kibali

(4)

688

Mongbwalu

(4)

603

Risk/uncertainty/challenges

All operations:
Employee safety
Skills shortages
Compensation practices (for land)
Changes to regulatory and fiscal environment
oneERP implementation

Ghana:
Delivery on production targets
Social issues arising from heightened community expectations
and artisanal and small scale mining (ASM)
Environmental permitting and process water management
Security incidents
Asset integrity relating to aging mine infrastructure
Potential for energy shortages

Mali:
Delivery on production targets
Social issues arising from heightened community expectations
and ASM
Environmental permitting and process water management
Planning for closure

Guinea:
Social issues arising from heightened community expectations
and ASM
Security incidents
Potential for energy shortages

Tanzania:
Labour relations/union negotiations
Social issues arising from heightened community expectations
and ASM
Environmental permitting and process water management
Security incidents

DRC:
Delivery of project into production
Social issues arising from heightened community expectations
and ASM
Environmental permitting and process water management
Security incidents
Potential for energy shortages
Increased legislation and initiatives in response to concerns
regarding the potential for gold to contribute to conflict

(1)

Attributable production

(2)

Including contractors

(3)

Average number of employees are attributable

(4)

Feasibility projects

Review of operations and projects

continued

– Continental Africa

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Continental Africa – contribution
to group production

(%)

Continental Africa

36%

Rest of
AngloGold Ashanti

64%

(number of injuries and fatalities per million hours worked)

6.09

5.26

3.03

Continental Africa – AIFR

Continental Africa –
attributable gold production

(000oz)

1,585

1,492

1,570

Continental Africa –
capital expenditure

($m)

198

234

420

15,267

15,761

Including contractors

16,539

Continental Africa –
average number of employees

16,539

people

employed

1,570

000oz

$420

AngloGold Ashanti has eight mining operations in its

Continental Africa region:

•

Iduapriem and Obuasi in Ghana;

•

Siguiri in Guinea;

•

Morila, Sadiola and Yatela in Mali;

•

Navachab in Namibia; and

•

Geita in Tanzania.

Combined production from these operations increased by 5%

to 1.57Moz of gold in 2011, equivalent to 36% of group

production. Declines in production at the Siguiri, Obuasi,

Yatela and Navachab operations were more than made up by

increases at Geita especially, and at Iduapriem, Sadiola and

Morila. Production at Geita rose by 38%.

Total cash costs increased by 7% to $765/oz, with Geita in

Tanzania being the best performer on the cost front with a

cash cost of $536/oz for the year. In all, these operations

employed 16,539 people, including contractors, 778 more

than in 2010. Regrettably, three contractor employees lost

their lives in occupational accidents during 2011. The AIFR

was 3.03 per million hours worked, a significant

improvement as compared to 6.09 per million hours worked

recorded in 2009. Total capital expenditure for the region

Continental Africa – contribution
to production by mine

(%)

Geita 31%

Obuasi

20%

Siguiri

16%

Iduapriem

13%

Sadiola

Morila

Navachab

Yatela

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

Continental Africa – key financial and non-financial statistics

2011

2010

2009

Pay limit

oz/t

0.036

0.040

0.044

g/t

1.235

1.371

1.505

Recovered grade

oz/t

0.055

0.052

0.054

g/t

1.87

1.79

1.86

Gold production

000oz

1,570

1,492

1,585

Total cash costs

$/oz

765

712

608

Total production costs

$/oz

987

867

720

Capital expenditure

420

234

198

Number of employees

16,539

15,761

15,267

Employees

9,783

9,684

9,789

Contractors

6,756

6,077

5,478

Number of fatalities

Fatal injury frequency rate

per million hours worked

0.05

0.09

0.06

All injury frequency rate

per million hours worked

3.03

5.26

6.09

Number of cases of malaria identified

3,012

4,488

6,400

Malaria incidence rate at affected operations

(1)

per 100 employees

17.6

27.6

45.0

Number of employees undertaking voluntary counselling and testing (VCT)

7,745

8,162

9,957

Number of employees on anti-retroviral therapy (ART)

225

121

162

Water usage

27,114

24,432

26,344

Energy usage – direct

Million GJ

9.52

9.40

9.20

– indirect

Million GJ

1.96

1.90

1.93

Greenhouse gas emissions

e (000t)

957

936

969

Cyanide used

(t)

14,219

12,797

15,975

Reportable environmental incidents

Community investment

$000

13,502

8,047

5,525

(1)

Recalculated using a method for standardising employee numbers.

was $420m, an increase of almost 79% on the $234m spent

in 2010. The bulk of this was spent at the Obuasi and

Iduapriem operations in Ghana, Geita in Tanzania and

Navachab in Namibia.

The attributable Mineral Resource of the mining operations in

Continental Africa totalled 76.50Moz at year-end, and an

attributable Ore Reserve of 28.02Moz.

AngloGold Ashanti also has an active greenfield exploration

programme, principally in the DRC, focused on the Mongbwalu

concession and the Kibali joint venture with Randgold

Resources and the DRC government. This is in addition to

brownfield exploration being conducted in and around existing

operations. For further information on the group’s exploration

programme in Continental Africa, see the global exploration

section of this report.

In 2011, the Continental Africa region progressed development

of a transformation model to address sustainability issues that

have affected the region. Refer to the Sustainability Report

– Regional Sustainability Strategies, pages 22 to 23.

In the Americas region, an important growth area for the

company, AngloGold Ashanti has:

•

in Argentina, the Cerro Vanguardia mine;

•

in Brazil, two business units, the AngloGold Ashanti

Córrego do Sítio Mineração (AGA Mineração) and Serra

Grande operation;

•

in Colombia, Gramalote and La Colosa projects; and

•

in the United States, the Cripple Creek & Victor mine.

Combined production from these operations increased by 6%

to 891,000oz of gold in 2011, increasing its contribution to

group production to 21% (2010: 19%).

Total cash costs increased by 22% to $528/oz. The stronger

real and scarce mining skills along with accelerating inflation

across the South American jurisdictions presented significant

cost pressures during the year. Total capital expenditure for the

region was $456m, an increase of 47% on the $311m spent in

2010. The bulk of this was expended at AGA Mineração,

Cripple Creek & Victor and Cerro Vanguardia projects.

In all, 7,389 people including contractors, were employed,

807 more than in 2010. Regrettably, two contractor employees

lost their lives in occupational accidents during 2011. The first

in Brazil, where a worker was run over by a tractor on a

construction site, and the second in Colombia where a worker

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Review of operations and projects

continued

– Americas

Risk/uncertainty/challenges

All operations:
Employee safety
Skills shortages
Changes in regulatory and fiscal environment
OneERP implementation

Argentina:
Delivery on production targets
Potential for energy shortages
Labour relations

Brazil:
Environmental permitting and process
water management
Environment and health legacy issues

USA:
Water scarcity

Colombia:
Social issues arising from heightened
community expectations and ASM
Environmental permitting and process
water management
Security incidents

Gold

Average

production

(1)

number of

Operations (000oz)

employees

(2)

Argentina

Cerro Vanguardia

196

1,644

Brazil

AGA Mineração

361

3,825

Serra Grande

1,339

United States

Cripple Creek & Victor

267

581

Average

number of

Projects

employees

Colombia

Gramalote

(3)

246

La Colosa

(3)

550

(1)

Attributable production

(2)

Including contractors

(3)

Feasibility projects

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

Americas – contribution to
group production

(%)

Americas

21%

Rest of
AngloGold Ashanti

79%

Americas – capital expenditure

($m)

258

311

456

Americas – gold production

(000oz)

816

842

891

Americas – contribution to
production by operation

(%)

AGA Mineração

40%

Cripple Creek & Victor

30%

Cerro Vanguardia

22%

Serra Grande

(number of injuries and fatalities per million hours worked)

7.12

5.66

6.33

Americas – AIFR

was inundated by a naturally occurring landslide after

unusually heavy rainfall. The AIFR was 6.33 per million hours

worked as compared to 7.12 in 2009.

The total Mineral Resource across the Americas, attributable

to AngloGold Ashanti, was 49Moz at the end of 2011 and the

attributable Ore Reserve was 11Moz.

A far-reaching greenfield exploration programme is underway

in the Americas region, most notably in Colombia, South

America, where AngloGold Ashanti has extensive land

holdings. Two significant greenfield discoveries – Gramalote

and La Colosa – together account for 18Moz of the Americas’

Mineral Resource. Exploration activities are conducted by

either AngloGold Ashanti teams or together with joint venture

partners, in Canada, Brazil and Argentina. See global

exploration section of this report for further details.

5,884

6,582

Including contractors

7,389

Americas – average number
of employees

7,389

people

employed

891

000oz

$456

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Americas – key financial and non-financial statistics

2011

2010

2009

Pay limit

oz/t

0.026

0.025

0.03

g/t

0.891

0.843

0.95

Recovered grade

oz/t

0.034

0.037

g/t

1.15

1.17

1.25

Gold production

000oz

891

842

816

Total cash costs

$/oz

528

432

362

Total production costs

$/oz

765

615

496

Capital expenditure

456

311

258

Number of employees

7,389

6,582

5,884

Employees

5,273

4,737

4,233

Contractors

2,116

1,845

1,651

Number of fatalities

–

Fatal injury frequency rate

per million hours worked

0.10

–

All injury frequency rate

per million hours worked

6.33

5.66

7.12

Water usage

6,750

5,817

5,426

Energy usage – direct

Million GJ

4.15

3.78

3.61

– indirect

Million GJ

1.04

0.90

0.70

Greenhouse gas emissions

e (000t)

343

309

287

Cyanide used

(t)

4,795

4,531

4,666

Reportable environmental incidents

–

Community investment

$000

4,939

5,480

2,804

Review of operations and projects

continued

– Americas

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

AngloGold Ashanti’s sole operating mine in the Australasia

region is Sunrise Dam in Australia. Development of the

Tropicana project, proceeds apace.

Production from Australasia declined by 38% to 246,000oz

in 2011. This was equivalent to 6% of group production.

This unforeseen decline in production was due entirely to the

flood-related work stoppage, with excessive rainfall resulting in

operations both underground and at the open pit being

affected for approximately six months.

Total cash costs increased by 46% to $1,431/oz, while in local

currency, total cash costs rose 30% to A$1,386/oz, due

primarily to the increase in the unwinding of deferred stripping

costs. In all, 509 people, including contractors were employed

at the Sunrise Dam operation. Scarce mining skills, the

stronger Australian dollar and accelerating inflation presented

significant cost pressure during the year.

Total capital expenditure for the region more than doubled to

$102m, the bulk of which ($73m) was spent on Tropicana

project, which is scheduled to begin production in 2013. Most

of this was spent on the main access road, accommodation

and operational readiness.

The Tropicana gold mine is being developed by AngloGold

Ashanti (70%) and joint venture partner, Independence Group

Ltd. (30%). AngloGold Ashanti is managing the Tropicana

project and has also undertaken an extensive exploration

programme in the area that covers some 13,500km

tenements along a 600km strike length. This area in Western

Australia is considered one of the most prospective for new

gold discoveries in Australia.

The attributable Mineral Resource for Australasia totalled

7.45Moz at year-end, and an attributable Ore Reserve of

4.26Moz.

Gold

Average

production

(1)

number of

Operation

(000oz)

employees

(2)

Western Australia

Sunrise Dam

246

509

Average

number of

Project

employees

(2)

Tropicana

(3)

132

Risk/uncertainty/challenges

Employee safety, especially effective
contractor management at Tropicana

Skills shortages

Compliance with changing regulatory
and fiscal environment

Flooding and potential impact of
climate change

Development of a regional community
plan

OneERP implementation

Australasia – contribution to
group production

(%)

Australasia

Rest of
AngloGold Ashanti

94%

(1)

Attributable production

(2)

Including contractors

(3)

Development project

Australasia – gold production

(000oz)

401

396

246

000oz

Review of operations and projects

continued

– Australasia

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Australasia – key statistics

2011

2010

2009

Pay limit

oz/t

0.10

0.14

0.08

g/t

3.00

4.32

2.45

Recovered grade

oz/t

0.063

0.099

0.094

g/t

2.16

3.40

3.22

Gold production

000oz

246

396

401

Total cash costs

$/oz

1,431

982

662

Total production costs

$/oz

1,622

1,065

770

Capital expenditure

102

177

Number of employees

509

494

455

Employees

101

Contractors

408

401

356

Number of fatalities

–

Fatal injury frequency rate

per million hours worked

–

All injury frequency rate

per million hours worked

18.11

13.10

8.64

Water usage

4,198

3,515

3,720

Energy usage – direct

Million GJ

2.14

2.27

2.02

– indirect

Million GJ

–

Greenhouse gas emissions

e (000t)

130

153

136

Cyanide used

(t)

1,379

1,444

1,676

Reportable environmental incidents

–

Community investment

$000

276

456

133

Capital expenditure

($m)

177

102

Average number of employees

455

494

509

Including contractors

(number of injuries and fatalities per million hours worked)

8.64

13.10

18.11

AIFR

509

people

employed

$102

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

The following is a summary of the status and progress

of AngloGold Ashanti’s primary development projects. For a

detailed discussion, see the Annual Financial Statements.

Colombia

Gramalote

Ownership and management: joint venture between

AngloGold Ashanti (51%) and Vancouver-based B2Gold

(49%). Managed by AngloGold Ashanti.

Location: Located 110km northeast of Medellin in the municipality

of San Roque, in the department of Antioquia, Colombia.

Current status: AngloGold Ashanti returned as operator and

project manager in 2010, after assuming a controlling stake

from B2Gold, to undertake the pre-feasibility and feasibility

analysis. The drilling programme was accelerated to

improve knowledge of the orebody and increased the

project’s resource.

Key statistics: During 2011, a total of 30,683m of drilling was

undertaken and the resource increased by 83% to 4Moz.

Almost $30m was spent on the pre-feasibility study in 2011,

which included exploration on only about 10% of the

30,000ha concession area. This study will be completed

during 2012, followed by a full feasibility study, to be

completed in 2013. Construction is planned to start in 2014

and first production in 2016.

Progress during the year: The project is expected to be

AngloGold Ashanti’s first operating gold mine in Colombia.

Gramalote has several inherent advantages, most notably

good infrastructure and access to water and power. The area’s

topography presents opportunities for tailings storage.

Gramalote enjoys a high level of community support. This

stems from concerted efforts to engage with local

stakeholders, including artisanal miners in the project area.

Gramalote has the potential to bring significant economic

development to a low income area.

La Colosa

Ownership and management: Exploration rights are wholly-

held by AngloGold Ashanti.

Location: Located 14km from the town of Cajamarca, in the

department of Tolima, Colombia. La Colosa lies less than 6km

from a national highway, close to Colombia’s main power grid.

Current status: This is the largest greenfields discovery made

by AngloGold Ashanti, with a current resource of 16Moz.

Exploration drilling at the site resumed in mid-2010 after a

two-year hiatus, while the permitting process was progressed.

Key statistics: The prefeasibility and feasibility studies are

expected to be completed ahead of construction scheduled to

start at the end of 2015. First production is targeted in late

2019. The concession is of the order of 600km

Progress during the year: A team has been assembled to

develop the appropriate sustainability model for La Colosa,

build the technical case for the project, execute its

development and to work closely with all stakeholders to

secure the necessary permits and approvals. La Colosa lies in

an area designated under Colombian law as a ‘forest reserve,’

a legal term for a tract of land designated for forestry use.

Permits are required to reclassify the land needed for mining

development which follow a revised permitting process.

A prefeasibility study is currently under way and scheduled for

completion in 2014. This will define the extent and size of

the resource, conduct metallurgical testwork, weigh the

alternatives for mining and processing infrastructure, purchase

land necessary for access and infrastructure development,

and conduct the necessary social and environmental baseline

and impact studies. The International Geotechnical and

Tailings Review Panel, comprised of independent experts, was

established in 2009 to ensure design, construction, operation

and closure plans use industry best-practice and technology.

The challenge at La Colosa is related to securing an

unequivocal social licence to operate. This can be achieved, in

part, by demonstrating the economic benefits the project can

bring to the local community, for example, contributions to

improving the quality of local agriculture and in helping to

promote local commerce. AngloGold Ashanti will be sensitive to

the needs of local communities, especially as they pertain to

security of water supply and minimising environmental impact.

While water use is of concern in this mostly agricultural region,

infrastructure location will be analysed to minimise water use

and reduce impacts on critical water sources. In addition,

preliminary figures demonstrate that there would be no material

impact on agricultural or domestic use of water by the project.

Australia

Tropicana

Ownership and management: joint venture between

AngloGold Ashanti Australia Ltd (70%) and Independence

Group NL (30%). Managed by AngloGold Ashanti on behalf of

the Joint Venture Partners.

Location: 330km east-north-east of Kalgoorlie in Western

Australia.

Current status: Project development approval was obtained

in November 2010. At 31 December 2011, the project had

progressed to schedule and within the approved budget, with

all regulatory approvals obtained.

Key statistics: A total attributable capitalised development

cost of A$530m is planned to establish a new 6Mtpa gold

mine with a life of about a decade. Ongoing exploration

success is expected to add to the operation’s life. First gold

production is anticipated in late 2013. Elevated production

from higher grade zones is expected for about the first five

years. The average total cash cost of the life of the project is

A$590-A$710/oz.

Progress during the year: A contract for engineering,

procurement and construction management (EPCM) services

to develop the infrastructure and processing plant, was

awarded in early 2011, and the mining contract for design and

establishment of the infrastructure required to support mining

operations has also been awarded.

The necessary infrastructure, including access road, airstrip,

accommodation village and telecommunications services were

in advanced stages of development. Full transportation access

to site had been achieved. Engineering and design for

processing plant and infrastructure was approximately 75%

complete at the end of the year. Procurement of all equipment

was 90% complete and the delivery of the equipment was in

line with the project schedule.

Construction of the processing plant commenced in late

2011 with bulk earthworks for the plant site and internal

access roads and concrete works scheduled to commence in

early 2012.

A new Mineral Resource estimate was completed for

Tropicana at year-end, with a 1.05Moz increase bringing the

total resource to 6.41Moz (100% basis). The increase was

attributable to drilling in the Havana Deeps area, between the

site’s Tropicana and Havana pits. Exploration drilling has

continued in the area.

DRC

Kibali

Ownership and management: joint venture between

AngloGold Ashanti and Randgold Resources, with each

owning a 45% stake, and Société des Mines d’Or de Kilo-

Moto (Sokimo), a state-owned gold company, which owns the

balance. Randgold is the operator and project manager.

Location: North-eastern DRC, 180km by road from Arua, on

the Ugandan border.

Current status: The deposit, acquired with the purchase of

Moto Goldmines in 2009, lies about 9km from the town of

Watsa, a staging point for the project. Preparatory work has

been completed at the project, where first gold production is

scheduled for the beginning of 2014. The final feasibility study

and integrated execution plan for the project is anticipated to

be presented to AngloGold Ashanti’s board for approval in the

first half of 2012. Until then, AngloGold Ashanti has agreed to

continue to fund its share of critical path items needed to

ensure the timeline for the project was not compromised.

Key statistics: Kibali will comprise an integrated open pit and

underground mining operation, feeding a larger 6Mtpa

processing plant which will include a full flotation section for

treating sulphide ore. The complex will ultimately be supplied

by four hydropower stations supported by a thermal power

station for low rainfall periods and back-up. The core capital

programme is scheduled to run over the next four years.

Review of operations and projects continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

AngloGold Ashanti Annual Integrated Report 2011

Review of operations and projects

Final capital, production and cost estimates will accompany

the announcement of the project’s final approval.

Progress during the year: By the end of 2011, the

construction crew had started mobilising on site, a process

expected to be completed during the first quarter of 2012.

Long-lead plant and equipment items were secured, key

contractors selected and a development management team

assembled. The relocation programme for nearby villages –

a critical component of Kibali’s pre-development phase

– progressed smoothly through the year, with two of the

14 affected villages already resettled in the new model village

of Kokiza by December. Five local contractors are building

houses at the rate of 300 per month, assisting with local

economic development in the region.

The project’s community development plan also seeks to

support food security initiatives with a view to reducing

community dependence on ASM.

Phase 1 of the project, required to deliver the mine’s first gold

production, will cover the metallurgical facility, one hydropower

station and back-up thermal power facility, construction of the

tailings storage facility, relocation of villages, open-pit mining

and all shared infrastructure. This phase will run over a two-

year period. Phase 2, which will run concurrently with Phase 1

but will extend over four years, is focused primarily on

development of the underground mine and includes a twin

decline and vertical shaft system, along with three hydropower

stations. This is expected to bring the underground into first

production by the end of 2014, with steady state production

targeted for the end of 2015.

The project has an improved environment adjustment plan,

which is the legal permit required before mining commences.

An environmental and social impact assessment, however, has

been undertaken to comply with new environmental legislation,

and to provide guidance for the development of an integrated

environmental management plan that allows the mine to be

constructed and operated responsibly and minimises future

liability for shareholders.

Mongbwalu

Ownership and management: is a venture between

AngloGold Ashanti (86.22%) stake and Société des Mines d’Or

de Kilo-Moto (Sokimo) (13.78%).

Location: About 48km from the town of Bunia, a staging point

for the project, in north-eastern DRC.

Current status: Preparatory work has been completed at the

project, where first gold production is scheduled for the

beginning of 2014. Approval by the joint venture board is

anticipated for March, 2012, when the final feasibility study and

integrated execution schedule will be presented.

Key statistics: The initial project will be designed and built

with a view to increasing its size as the aggressive regional

exploration programme identifies new sources of ore. Capital

and cost estimates for the project will be released along with

the announcement of its approval.

Progress during the year: The area around Mongbwalu has

historical gold production of about 2Moz of gold. Belgian

mining companies operated on a relatively small scale in the

area for about 50 years before leaving in 1961, while Sokimo

began mining in 1966. The joint venture holds 18 tenements

which, at the end of the year, covered an extensive area. About

600 people are presently employed on site.

The initial scoping work envisaged an initial underground mine

in the Adidi area of the resource, with the necessary

infrastructure designed to generate cash flow to fund further

exploration and expansion activities within the demarcated

area belonging to the joint venture. The feasibility study for the

project was completed in March 2011, after which the

business and technical development teams conducted the

normal optimisation process through the balance of the year.

Upgrading of staff accommodation on site was undertaken

during the year, substantial progress was made on the

construction of the 60km road to Bunia and a hydropower

plant was refurbished.

A concerted focus was placed on sustainability issues to

support environmental and community development over

the life of the project, which promises to be an important

source of economic and social development both for the

immediate region and for the DRC as a whole. Crucial to this

process is the health and environmental baseline

assessments, commissioned during the year to determine

risks and benefits of developing and operating a new,

modern mine in the area.

Review of exploration and development

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

DESIRABLE REGIONS

Global exploration

Total expensed exploration for 2011 amounted to $313m, of

which $98m was spent on greenfield exploration, $87m on

brownfield exploration and the balance of $19m on marine

exploration. A further amount of $109m was spent on

prefeasibiity studies. The main objective of AngloGold

Ashanti’s greenfield exploration team is to make significant,

high-value gold discoveries in new and existing regions, while

brownfield exploration focuses on incremental additions to

known orebodies and new discoveries in defined areas around

existing operations.

For 2012, expensed exploration of $230m is planned

(including expenditure at equity-accounted joint ventures),

with $108m planned for greenfield exploration, $102m

allocated for brownfield exploration and a further $20m for

the De Beers marine joint venture. A further $150m of

expenditure is allocated to prefeasibility studies at the La

Colosa and Gramalote projects in Colombia, as well as

feasibility studies at Central Mongbwalu deposit in the DRC

and associated expenditures.

Greenfield exploration

An extensive greenfield exploration programme was

undertaken during 2011 in 17 countries. A total of 213,441m

of diamond, reverse circulation and aircore drilling was

completed in testing existing priority targets and in the

delineation of new targets in Australia, Colombia, Brazil,

Argentina, the Solomon Islands, Gabon, Guinea, Egypt,

Ethiopia, the DRC and Canada. Significant airborne

geophysical surveys were undertaken in Colombia.

Greenfield activities are undertaken through joint ventures,

strategic alliances and wholly-owned ground holdings. The

principal objective of the greenfield exploration team is value

creation through the discovery of new long-life, low-cost mines

that maximise shareholder value. Discoveries and ground

positions that do not meet certain investment criteria are joint-

ventured or divested to maximise AngloGold Ashanti’s return

on its exploration investment.

Following the La Colosa, Gramalote, Tropicana-Havana and

Mongbwalu discoveries, greenfield exploration teams are

targeting new discoveries in Colombia, Australia and the DRC.

At the same time, prospects in Guinea and Egypt have

advanced from early stage to tangible projects, where multiple

intersections of potentially economic gold mineralisation have

been intersected.

Before any further expansion of the exploration portfolio can be

considered, the focus has shifted to prioritising expenditure on

projects with potential for significant near-term discoveries.

At the same time, projects that have not met requirements will

be monetised. This process already underway in Canada,

Gabon, China and elsewhere.

AngloGold Ashanti holds a total of 97,531km

of high-priority

greenfield tenements globally from which there is a robust

project pipeline. This is illustrated in the graph below for a

number of key regions (this does not reflect the full extent of

the project portfolio).

Attributable production
from projects

1,800
1,600
1,400
1,200
1,000

800
600
400
200

CC&V MLE1

CVSA Heap Leach

Kibali

Mponeng B120 Phase 1

CC&V MLE2

CVSA u/g

Mongbwalu

Córrego do Sítio

Tropicana

Sadiola Deeps

(000oz)

AngloGold Ashanti Annual Integrated Report 2011

Review of exploration and development

In the Americas, the principal area of focus has been to

advance exploration on a number of key projects in

Colombia. This has included further mapping and airborne

surveys over the Anaima-Tocha project area, covering some

600km

predominantly to the north of La Colosa. It is

anticipated that a number of drill-ready projects will be

explored in 2012 once permits have been obtained. At the

Quebradona project (AngloGold Ashanti/B2Gold joint

venture) a total of 4,711m was drilled targeting porphyry

gold-copper mineralisation.

In Brazil, early stage exploration comprising mapping and

regional geochemical programmes, was undertaken on the

wholly-owned Juruena Belt tenements. The Falcão joint

venture with Horizonte Minerals commenced drill testing of

greenstone hosted gold mineralisation. A total of 15 diamond

holes for a total of 3,663m was completed in 2011.

In sub-Saharan Africa, greenfield exploration programmes were

undertaken in the DRC, Guinea, Gabon and Tanzania, with a

number of prospects in Guinea and the DRC exhibiting

potential. In Guinea, the greenfield exploration teams are

exploring the regional tenements that comprise a combined

area of 1,685km

. Regional geochemical programmes have

defined a number of significant gold-in-soil anomalies with

strike lengths of up to 10km. At Saraya and Saraya South,

located in Block 2 to the west of the Siguiri, ore-grade

intercepts were returned for multiple holes. Similarly, at the

Greenfield exploration countries

Greenfield strategic alliances

● Pre-2011 100% AngloGold Ashanti
▼ Pre-2011 joint ventures

▲

New 2011 joint ventures

●

2011 100% AngloGold Ashanti

■ Blue-sky – AngloGold Ashanti/De Beers

marine exploration joint ventures

Canada

Baffin Is JV

▼

Superior JV

▼

Melville Project

●

USA

Drum Mountain Project

●

Nome, Alaska

▲

Colombia

Western Cordillera JV

▼

Rio Dulce

●

Quebradona JV

▼

Anaima - Tocha

●

Chaparral JV

▼

Salvajina

●

La Llanada

●

Argentina

Santa Cruz (El Volcan)

●

Brazil

Falcão JV

▼

Juruena

●

Santana JV

▼

(South Carajas Block)

Guinea

Siguiri Blocks 1-4

▼

Gabon

Dome JV

▼

Ogooue

●

Amiga JV

●

DRC

AGK JV Kilo Project

▼

South Africa

South African Sea Areas

■

Tanzania

Oryx JV

▼

Mkurumu JV

▼

Ethiopia

Stratex Afar JV

▼

Gordoh JV

▲

Djibouti

Stratex Afar JV

▼

Eritrea

Akordat North

▼

Kerkasha JV

▼

Egypt

Wadi Kareem JV

▼

Hodine JV

▼

Saudi Arabia

▲

China

Jinchanggou CJV

▼

Solomon Islands

Kele & Mase JV

▼

New Georgia

▼

Vangunu JV

▼

Australia

Cornelia Range

●

Tropicana JV

▼

Viking

●

Gawler JV

▼

New Zealand

Sea Field Resources

■

Greenfield exploration

Koun Koun prospect, located in Block 3 to the east of the

Siguiri operations, drilling beneath robust gold-in-soil anomalies

has returned ore-grade intercepts in a deeply weathered profile.

In the DRC, AngloGold Ashanti holds an 86.22% interest in

Ashanti Goldfields Kilo (AGK), while the remaining 13.78% is

held by the state-owned gold company SOKIMO. Of the

7,443km

previously held under exploitation licences by

SOKIMO, 5,447km

has been transferred to AGK under the

terms of an agreement with the government, with 399km

pending transfer at the end of the year. Significant progress

was made in regional soil geochemistry programmes that will

provide significant coverage over much of the landholding

during 2012. This, combined with detailed geologic mapping

and structural interpretation, has enabled the ranking and

prioritisation of drill targets. During 2011, a total of 4,009m of

diamond drilling was undertaken, with some encouraging

results. A total of 789 trench samples were taken at a

number of prospects, some of which returned promising

gold grades.

In the Middle East and North Africa, exploration is conducted

through a regional strategic alliance with Dubai based Thani

Investments. Since the inception of the alliance in mid-2009,

significant progress has been made on advancing exploration

projects on the Wadi Kareem and Hodine concessions in

Egypt. The Hutite project, located on the Hodine concession,

is an orogenic gold deposit where the alliance has to date

completed 54 diamond holes for a total of 12,352m. Visible

gold and significant intercepts have been returned from many

of the completed diamond holes. Mineralisation extends over

a strike length greater than 1.6km.

Elsewhere in the region, early stage exploration is conducted

on alliance-held licences in Eritrea. Exploration in partnership

with Stratex International was conducted for epithermal gold

mineralisation in the Afar depression of Ethiopia where the first-

phase drill programme intersected encouraging low- to

moderate-tenor gold mineralisation. The alliance has

continued with project generation activities in Saudi Arabia and

a number of licence applications have been made.

In the Solomon Islands, where AngloGold Ashanti is in joint

venture with XDM Resources, a dominant land position is held

over the New Georgia Island chain. Work has been focused on

specific epithermal and porphyry targets, including Vulu, Mase

and Konga. Future work will focus on the broader region in

anticipation of securing additional land access agreements.

The joint ventures collectively cover 1,707km

in the New

Georgia Belt, effectively consolidating the entire island chain.

Exploration activities in 2011 included 4,911m of diamond

drilling, mapping and sampling programmes.

In China, AngloGold Ashanti is in the process of divesting its

70% interest in Gansu Longxin Minerals CJV located in the

Gansu Province of western China. All active exploration

activities have been concluded in China.

The Tropicana joint venture (AngloGold Ashanti 70%,

Independence Group NL 30%) is systematically targeting a

belt of tectonically reworked Archaean and Proterozoic rocks

on the eastern margin of the Yilgarn Craton, Western

Australia. Greenfield exploration in the Tropicana joint venture

during 2011 focused on regional aircore drilling and reverse

circulation/diamond drilling of seven priority targets.

A number of prospects have been identified for further work

including the Iceberg prospect, located 35km south of the

Tropicana gold mine. The wholly-owned Viking project covers

the interpreted southeast extensions of the Tropicana belt.

Exploration during 2011 included airborne magnetics/

radiometrics, regional auger sampling and aircore drilling of

selected targets. Several auger anomalies have been identified

for drill testing.

Brownfield exploration

AngloGold Ashanti continues to actively drive the creation

of value by continually growing its Mineral Resource and Ore

Reserve through a well-defined and active brownfield

exploration programme, innovation in geological modelling

and mine planning, and continual optimisation of its asset

portfolio.

South Africa: A total of 14 surface holes were drilled during

the year, five at Moab Khotsong, three at Mponeng and six

shallower surface holes to the west of Kopanang.

Argentina: At Cerro Vanguardia, the drilling programmes for

Mineral Resource expansion and extension continued during

the year. Follow-up drilling for vein extensions laterally and

at depth was successful, identifying bonanza zones in the

Lucy vein at depth. Exploration and Mineral Resource

modelling to identify heap leach material was active during the

year. Initial drilling at the El Volcan project, based on

geophysical surveys and target identification work, was

completed.

Brazil: Mineral Resource development drilling programmes

continued at the Cuiabá and Lamego mines. The surface

drilling programmes at the Córrego do Sítio project to expand

the oxide Mineral Resource were successful, especially at

the Rosalino and Anomaly 1 targets. Underground drilling at

the Córrego do Sítio started during the year to develop the

Sao Bento and Sangue do Boi sulphide orebodies. Exploration

work in the Nova Lima area beyond the production centres

included completing the deep drilling programme at Raposos

Review of exploration and development

continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

AngloGold Ashanti Annual Integrated Report 2011

Review of exploration and development

that identified a second mineralised zone called Santa

Catarina, in addition to the main ES and EW orebodies.

Regional exploration programmes were conducted at the Pari,

Mariana, and Bento Rodriques projects.

At Serra Grande the first year of the ‘fast track’ exploration

programme, to rapidly identify additional resources, was

successfully completed. A total of 70,000m of diamond

drilling was executed. The programme was focused on

Mineral Resource additions along the main orebodies and

regional areas. Pequizão, Mina Nova, Mina III and Structure

NW/Cajueiro were the main targets. Geophysical surveys

were conducted to support exploration for the Mina III and

Palmeiras Mine down-plunge extensions. Soil sampling

campaigns were done to define targets at Cajueiro,

Structure NW and Boa Vista (Votorantim Metais joint

venture) regional targets.

Colombia: Exploration at the Gramalote area was focused on

infill drilling to support the new Mineral Resource estimate for

the Gramalote Central deposit. Drilling programmes were

also conducted for the satellite targets at Monjas Oeste,

Monjas Este, El Limon, El Topacio and Trinidad. As part of the

prefeasibility study, geotechnical drillholes were completed

around the proposed pit limit to support highwall design, and

condemnation drilling started for the potential waste dump and

tailings storage facilities.

At La Colosa, the Mineral Resource development drilling

programme ramped up to five drills by the end of the year with

47,619m completed. The geological model was updated to

support the new Mineral Resource estimation and drilling

support was provided to infrastructure selection studies.

A new structural geology model was also completed.

USA: The drilling programme for Mineral Resource expansion

and to improve high grade definition within the Mineral

Resource area continued at Cripple Creek & Victor. Increase in

grade and tonnage was particularly noticeable for the Grassy

Valley and WHEX areas. A significant conversion of Mineral

Resource to Ore Reserve occurred during the year.

● Operations
▼ Advanced projects

United States

Cripple Creek & Victor

●

Colombia

La Colosa

▼

Gramalote JV

▼

Brazil

Serra Grande

●

AGA Mineração

●

Argentina

Cerro Vanguardia

●

Guinea

Siguiri

●

Mali

Yatela

●

Sadiola

●

Morila

●

Ghana

Iduapriem

●

Obuasi

●

Namibia

Navachab

●

South Africa

Vaal River
Great Noligwa

●

Kopanang

●

Moab Khotsong

●

Surface operations

●

West Wits
Mponeng

●

TauTona

●

Savuka

●

Tanzania

Geita

●

DRC

Kibali JV

▼

Mongbwalu

▼

Australia

Sunrise Dam

●

Tropicana JV

▼

Brownfield exploration

Review of exploration and development continued

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Tanzania: At Geita, Mineral Resource drilling over the

Nyankanga, Geita Hill, Geita Hill East, and Star and Comet

areas was completed during the year. Assay results proved the

down-dip potential underground extension of the Nyankanga

deposit, which still remains open at depth. Reconnaissance

drilling to support a growth strategy was undertaken on three

induced polarisation (IP) targets, namely Nyankumbu,

Nyakabale West and Mgusu and 14 electro-magnetic (EM)

targets. Diamond drilling was conducted at Kukuluma,

Matandani and Area 3 deposits in the Kukuluma Terrain to help

define an optimal processing route. During 2011 a total of

87km of IP surveys were conducted at Nyakabale East,

Kalondwa Hill and the Star & Comet Extension areas. Intensive

geological and structural mapping was undertaken at Ridge 8,

Star & Comet and the P30 area.

Guinea: At Siguiri, brownfields exploration activities in 2011

focused on the Block 1 licence area with a total of 153,955m

drilled during the year. Mineral Resource drilling of oxide

material concentrated on Kozan, Sintroko and Sokunu. Fresh

rock drilling focused on the pits of Sintroko, Tubani Extension

and Kozan to define sulphide ore continuity below the current

pit outlines. A reconnaissance exploration programme in

Block 1 continues to discover new geochemical anomalies.

A new discovery was made at the Silakoro Project, on a

previously unexplored trend, of a potential oxide Mineral

Resource. It is situated 2km west of the processing plant.

IP surveys were completed over the Sokunu East

reconnaissance target as well as over the Seguelen Mineral

Resources as a type-deposit for further targeting. A gravity

survey was completed over a promising shallow oxide target

at Silakoro.

Ghana: Surface exploration resumed on the Obuasi

concession to evaluate any shallow mineralisation potential at

the Anyankyerim deposit and results to date are positive.

Mineral Resource upgrade and extension drilling achieved a

total of 4,413m. Underground drilling to explore the Obuasi

Deeps below 50 level and southern extensions of the current

mining areas above 50 level continued during the year with a

total of 3,771m achieved. A joint Obuasi-University of Western

Australia-Centre for Exploration Targeting three-year research

project commenced mid-year, with the primary deliverable

being an integrated 4D model for controls on the geometry of

mineralisation within the Obuasi system. The study is expected

to enhance delineation of the Obuasi deeps Mineral Resource

and guide exploration strategies in the Ashanti belt and the

greater Birimian. Drilling of the old Teberebie Leach Pads

was undertaken during the year at the Iduapriem gold mine.

The reduced drill rig availability has postponed a planned

underground scoping study drilling programme until the first

quarter of 2012.

DRC: Exploration work progressed at Mongbwalu with

26 diamond core holes completed for 6,446m and

18 RC holes for 2,755m. These were predominantly Mineral

Resource drilling and metallurgical holes at Kanga, and

included mine de-watering holes at the Adidi mine in support

of the continued growth of the project. A Mongbwalu core re-

logging exercise was completed during 2011 with 366

diamond holes re-logged to support the re-estimation of

the overall geological Mineral Resource and increase the

structural understanding of the deposits. A resistivity survey

was undertaken over the Nzebi and Adidi faults in support of

this work.

At Kibali, drilling connected the Sessenge deposit to KCD

(9000 lode) and confirmed over 2km of continuous down plunge

mineralisation. The first deep hole (1,346m) has confirmed

mineralisation a further 450m down plunge from the existing

block model. A second deep hole is currently under way.

The geological model identifies the potential lateral

continuation of the 9000 lode and possible link between KCD

and Gorumbwa. A programme of five diamond drillholes for

3,980m has been approved, which will also test the 3000 lode

extension towards Durba hill where access was previously not

possible due to the presence of Sokimo infrastructure.

This drilling is scheduled to take place during 2012.

Mali: A total of 68,184m RC and 3,628m diamond core holes

were drilled on the Sadiola Concession.

AngloGold Ashanti Annual Integrated Report 2011

Review of exploration and development

Additional drilling involved the sterilisation around the Sadiola

Sulphide Project for planned infrastructure. Preliminary results

from multi-element analysis revealed potential for economic

molybdenum and work is ongoing to assist with a desk-top

study to investigate the financial benefit of potentially

recovering molybdenum by-product.

Exploration over the Yatela concession followed an aggressive

programme based on a short life of mine to identify and

test any additional oxide opportunities in 2011, with

21,888m of RC and 1,805m of diamond drilling completed.

A comprehensive termite mound sampling programme

across the concession, together with ground gravity and IP

geophysics surveys, were carried out concurrently with the

drilling to aid further target generation. Results to date

indicate promising shallow oxide intercepts at the Badji target

to the NW of the Yatela mine. Drilling to follow up on mapping

targets north of Alamoutala North satellite pit also returned

encouraging results.

Namibia: Exploration programmes at Navachab completed

259 holes totalling 39,085m during 2011. Off-mine drilling

focused on the Anomaly 16 Valley and Okatjimukuju target

areas with 41 RC holes drilled for 7,638m and five diamond

drillholes totalling 944m.

Australia: At Tropicana, near-mine exploration has continued

at the site with extensive infill drilling being completed at

Boston Shaker and Havana South Prospect. This has

enabled identification of significant additions to the Ore

Reserve, the estimate of which increased to 56.4Mt at a

grade of 2.16g/t of gold, containing 3.91Moz of gold, an

increase of 540,000oz.

Drilling for the prefeasibility study on the Havana Deeps project

began in April 2011. This project is focused on extending the

higher grade parts of the Havana mineralisation down plunge

beyond the bankable feasibility study pit limits and reviewing

the open pit and underground mining options for this

mineralisation. Drilling is expected to continue until mid 2012,

with the project due for completion by end 2012.

Drilling was sufficiently advanced by year-end to announce a

significant increase in the Measured, Indicated and Inferred

Mineral Resource for the project of 1.05Moz of contained

gold or almost 20% over that estimated in December 2010.

The bulk of this increase (1.00Moz) is in the underground

component of the estimate which increased to 1.63Moz.

At the Sunrise Dam gold mine, near-mine exploration

focused on extensions to the known mineralisation, in

addition to defining large targets beneath the deposit. While

investigating extensions to the GQ, Cosmo and Dolly lodes,

identifying and delineating the Vogue mineralisation were the

highlights of 2011. Initial results have been most encouraging

and an aggressive and detailed exploration strategy is planned

for 2012, which will include drilling the extension and Vogue

targets from both surface and underground positions.

AngloGold Ashanti/De Beers Joint Venture: Results from

the seafield sampling campaign in New Zealand were

analysed and, although offshore gold was detected, the

grades did not warrant any further follow up work.

Subsequently a decision was made to relinquish the offshore

prospecting licences.

Exploration activities in the South African Sea Areas (SASA)

offshore concessions of ~28,000km

entailed the following:

•

logging, sampling and assay of a large number of historical

vibrocores and samples;

•

a geophysical survey campaign of ~3,300km of seismic

data;

•

an 11-day vibrocoring campaign during which 38 cores

were collected; and

•

a reconnaissance fieldtrip to the west coast of South Africa.

All of the above was used to compile a geological and

mineralisation model which was used to derive exploration

targets for the coring campaign that commenced during

December 2011 and was completed in February 2012.

Mineral Resource and Ore Reserve

– a summary

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

The AngloGold Ashanti Mineral Resource and Ore Reserve is

reported in accordance with the minimum standards

described by the Australasian Code for Reporting of

Exploration Results, Mineral Resource and Ore Reserve (The

JORC Code, 2004 edition), and also conform to the standards

set out in the South African Code for the Reporting of

Exploration Results, Mineral Resources and Mineral Reserves

(The SAMREC Code, 2007 edition). The Mineral Resource is

inclusive of the Ore Reserve component unless otherwise

stated.

AngloGold Ashanti strives to actively create value by growing

its major asset – the Mineral Resource and Ore Reserve. This

drive is based on an active, well-defined brownfields

exploration programme, innovation in both geological

modelling and mine planning, and continual optimisation of its

asset portfolio.

Mineral Resource

The total Mineral Resource increased from 220.0Moz in

December 2010 to 230.9Moz in December 2011. A gross

annual increase of 16.8Moz occurred before depletion, while

the net increase after allowing for depletion was 10.9Moz.

Changes in economic assumptions from December 2010 to

December 2011 resulting in an 11.2Moz increase to the

Mineral Resource, while exploration and modelling resulted in

an increase of 7.9Moz. The remaining decrease of 2.2Moz

resulted from various other factors. Depletion from the Mineral

Resource for the year totalled 6.0Moz.

The Mineral Resource was estimated at a gold price of

$1,600/oz (2010: $1,100/oz).

Ore Reserve

The AngloGold Ashanti Ore Reserve increased from 71.2Moz

in December 2010 to 75.6Moz in December 2011. A gross

annual increase of 9.6Moz occurred before depletion of

5.2Moz. The increase net of depletion was therefore 4.4Moz.

Changes in economic assumptions from 2010 to 2011

resulted in an increase of 4.4Moz to the Ore Reserve, while

exploration and modelling resulted in a further increase of

5.0Moz. The remaining increase of 0.2Moz resulted from

various other factors.

The Ore Reserve was calculated using a gold price of

$1,100/oz (2010: $850/oz).

By-products

Several by-products are recovered as a result of the

processing of the gold Ore Reserve. In 2011, the by-products

Ore Reserve included 57,299t of uranium oxide from the South

African operations, 408,348t of sulphuric acid from Brazil and

46.9Moz of silver from Argentina.

Competent persons

The information in this report relating to exploration results,

Mineral Resource and Ore Reserve is based on information

compiled by the Competent Persons. The Competent Persons

consent to the inclusion of exploration results, Mineral

Resource and Ore Reserve information in this report, in the

form and context in which it appears.

INCREASED

AngloGold Ashanti Annual Integrated Report 2011

Mineral Resource and Ore Reserve

Mineral Resource

Moz

Mineral Resource as at 31 December 2010

220.0

Reductions

Great Noligwa

Mineral Resource reduced due to increased costs

(0.6)

Other

Total of non-significant changes

(1.8)

Additions

Tropicana

Exploration success in the underground project

0.8

Gramalote

Exploration success at Trinidad

0.9

Kopanang

Grade increased as a result of exploration

1.1

Geita

Combined effect of price and estimation

1.3

Iduapriem

Improved Mineral Resource price

1.3

Obuasi

Improved Mineral Resource price

2.3

La Colosa

Exploration success

3.8

Other

Total of non-significant changes

1.7

Mineral Resource as at 31 December 2011

230.9

Ore Reserve

Moz

Ore Reserve as at 31 December 2010

71.2

Reductions

Moab Khotsong

Depletion and minor model revision

(0.5)

Other

Total of non-significant changes

(1.1)

Additions

Geita

Improved Ore Reserve price

0.5

Cripple Creek & Victor

Mine life extension added to Ore Reserve

0.5

Vaal River surface operations

Technical studies showed that the economic extraction

3.2

of gold and uranium from the tailings is viable

Other

Total of non-significant changes

1.7

Ore Reserve as at 31 December 2011

75.6

Rounding of numbers may result in computational discrepancies.

During the past decade, the company has developed and

implemented a rigorous system of internal and external

reviews of exploration results, Mineral Resource and Ore

Reserve. A documented chain of responsibility exists from the

Competent Persons at the operations to the company's

Mineral Resource and Ore Reserve Steering Committee.

Accordingly, the chairman of the Mineral Resource and

Ore Reserve Steering Committee, VA Chamberlain,

MSc (Mining Engineering), BSc (Hons) (Geology), MGSSA,

FAusIMM, assumes responsibility for the Mineral Resource and

Ore Reserve processes for AngloGold Ashanti and is satisfied

that the Competent Persons have fulfilled their responsibilities.

Mr Chamberlain may be contacted at 76 Jeppe Street,

Newtown, 2001, South Africa.

A detailed breakdown of Mineral Resource and Ore Reserve

and backup detail is provided on the AngloGold Ashanti

website www.anglogoldashanti.com or in the Mineral Resource

and Ore Reserve Report 2011

Letter from the chief financial officer

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

KEY

OBJECTIVES MET

In a year of record gold prices, better operating performance

from some of the group’s key assets and the first year of full

exposure to spot prices, AngloGold Ashanti successfully met

all three of its key 2011 financial objectives, that were

contained in the 2010 chief financial officer’s report. Taking

each of these objectives in turn:

1. Ensuring that the benefits of the hedge

book elimination are captured in improved
earnings and cash generation

The 2011 earnings and cash flow metrics were well ahead

of the levels seen in 2010, capturing the benefits of the

hedge book elimination. Net profit attributable to

shareholders for 2011 increased 20-fold, to $1.55bn.

Adjusted headline earnings of $1.3bn represented a 65%

increase on the levels seen in 2010 of $787m*. Cash

inflow from operating activities rose by 59% in 2011 to

$2.66bn from $1.67bn* recorded in 2010. Free cash flow

in 2011 also rose by 59% from $525m* in 2010 to $833m

in 2011. These increases demonstrated the leverage

AngloGold Ashanti offers to the average spot gold price,

which rose year-on-year by only 28%.

2. Maintaining our international investment

grade credit ratings

During 2011, AngloGold Ashanti successfully maintained

its international investment grade credit ratings from both

Standard and Poor’s and Moody’s financial services. The

liquidity and solvency metrics improved year-on-year, on the

back of stronger earnings and improved cash generation.

On 15 March 2012, Moody’s Investors Service announced

that it has upgraded AngloGold Ashanti Limited’s credit

rating from Baa3 to Baa2 with a stable outlook.

Srinivasan Venkatakrishnan

Chief financial officer

Dividends declared
per ordinary share

(SA cps)

Full year dividends declared

Q4 2011

100

130

145

380

180

200

AngloGold Ashanti Annual Integrated Report 2011

Letter from the chief financial officer

3. Maintaining a prudent statement of financial

position, whilst at the same time not
compromising the project pipeline and
returns to shareholders

The group’s net debt** position at $610m on 31 December

2011 represents a 53% debt reduction, when compared to

31 December 2010 ($1.29bn). The strong cash generation

helped the group meet its increased 2011 capital

expenditure payments of $1.53bn and at the same time

improve dividends declared to shareholders with respect to

the year by 162% as compared to 2010, from 145 SA cps

(20 US cps) to 380 SA cps (49 US cps). Return on net

capital employed rose from 15% to 20% and return on

equity rose from 20% to 25%.

During the fourth quarter of 2011, AngloGold Ashanti

obtained a A$600m four-year unsecured revolving credit

facility on competitive terms from a syndicate of 11 banks

to fund working capital and development costs at the

group’s Australian operations. None of the group’s

principal financing facilities** (which include the two rated

bonds, 3.5% convertible bonds, $1bn syndicated revolving

credit facility and A$600m syndicated revolving credit

facility) mature for repayment until the second quarter of

2014. The improved cash generation under current market

circumstances, headroom under its debt facilities and

longer debt tenor has placed the group in a position to

meet its 2012 and 2013 project capital requirements.

Turning to the 2011 performance, some of the key financial

metrics include:

•

Gold production: 4.33Moz (4% below 4.52Moz recorded in

2010 due to unprecedented floods in Australia; higher safety

stoppages and industrial action in South Africa);

•

Average US dollar spot price: $1,572/oz (28% higher than

the average spot price of $1,227/oz seen in 2010);

•

Total cash costs: $728/oz (14% higher than $638/oz

recorded in 2010 due to higher inflation, stronger fuel prices,

increased royalty charges and lower units of production);

•

Adjusted headline earnings: $1.3bn (65% higher than the

$787m recorded in 2010 which excluded the impact of

accelerated hedge buy-backs. Adjusted headline loss in

2010 after factoring in the cost of the accelerated hedge

buy-backs was $1.76bn);

•

Adjusted headline earnings per share: 336 US cps (58%

higher than 212 US cps recorded in 2010)*;

•

Net profit attributable to equity shareholders: $1.55bn

(20-fold increase as compared to the $76m recorded

in 2010);

•

Earnings before interest, taxes and depreciation: $3.0bn

(58% increase on the $1.9bn seen in 2010);

•

Free cash flow: $833m (an increase of 59% on the 2010

level of $525m). This excludes proceeds from the sale

of non-core assets of $35m (pre-tax) in 2011 and $134m

in 2010;

•

Net debt at year-end**: $610m (53% reduction when

compared to the 2010 level of $1.29bn);

•

Return on net capital employed: 20% (2010: 15%);

•

Return on equity: 25% (2010: 20%); and

•

Dividends declared per ordinary share: 380 SA cps or

49 US cps (162% increase on the 145 SA cps or 20 US cps

declared in 2010).

* Excludes hedge buy-back costs

** Excludes mandatory convertible bonds

Srinivasan Venkatakrishnan

Chief financial officer

16 March 2012

Five-year summaries

– for the year ended 31 December

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Summarised group financial results – income statement

US dollar million

2011

2010

2009

2008

2007

Gold income

6,570

5,334

3,768 3,619 3,002

Cost of sales

(3,946)

(3,550)

(2,813)

(2,728)

(2,458)

Loss on non-hedge derivatives and other commodity contracts

(1)

(702)

(1,533)

(297)

(792)

Gross profit (loss)

2,623

1,082

(578)

594 (248)

Corporate administration, marketing and other expenses

(278)

(220)

(164)

(144)

Exploration costs

(279)

(198)

(150)

(126)

(117)

Other operating expenses

(27)

(20)

(8)

(6)

(20)

Special items

163

(126)

691 (1,538)

(13)

Operating profit (loss)

2,202

518

(209)

(1,220)

(542)

Interest received

54 66 43

Exchange gain (loss)

112 4

(1)

Dividend received from other investments

–

– – 2

Fair value adjustment on convertible bonds

188

(56)

(33)

25 47

Finance costs and unwinding of obligations

(196)

(166)

(139)

(114)

(120)

Share of equity-accounted investments’ profit (loss)

94 (138)

Profit (loss) before taxation

2,321

405

(121)

(1,377)

(536)

Taxation

(723)

(276)

(147)

197 (101)

Profit (loss) after taxation from continuing operations

1,598

129

(268)

(1,180)

(637)

Discontinued operations
Profit from discontinued operations

–

– 25 1

Profit (loss) for the year

1,598

129

(268)

(1,155)

(636)

Allocated as follows:
Equity shareholders

1,552

(320)

(1,195)

(668)

Non-controlling interests

52 40 32

1,598

129

(268)

(1,155)

(636)

Summarised group financial results – statement of financial position

US dollar million

2011

2010

2009

2008

2007

Assets

Tangible and intangible assets

6,735

6,374

5,996

4,493

7,041

Cash and cash equivalents

(1)

1,112

575

1,100

575

477

Other assets

2,955

2,583

2,691

2,992

2,190

Total assets

10,802

9,532

9,787

8,060

9,708

Equity and liabilities
Total equity

5,166

4,113

3,030

2,511

2,442

Borrowings

2,488

2,704

1,931

1,933

1,848

Deferred taxation

1,158

900

753

617

1,042

Other liabilities

1,990

1,815

4,073

2,999

4,376

Total equity and liabilities

10,802

9,532

9,787

8,060

9,708

Summarised group financial results – statement of cash flows

US dollar million

2011

2010

2009

2008

2007

Cash flows from operating activities

2,655

(942)

502

(529)

866

Cash flows from investing activities

(1,564)

(871)

(195)

(1,041)

(1,015)

Cash flows from financing activities

(463)

1,194

171

1,756

141

Net increase (decrease) in cash and cash equivalents

628

(619)

478

186

(8)

Translation

(102)

105

(88)

Cash and cash equivalents at beginning of year

586

1,100

575

477

471

Cash and cash equivalents at end of year

(1)

1,112

586

1,100

575

477

(1)

The cash and cash equivalents balance at 31 December 2010 includes cash and cash equivalents included in the statement of financial position as part of

non-current assets held for sale of $11m.

AngloGold Ashanti Annual Integrated Report 2011

Five-year summaries

Key performance indicators and statistics

2011

2010

2009

2008

2007

Safety

Number of fatalities

All injury frequency rate (AIFR)

(1)

9.76

11.50

12.88

16.66

20.95

Productivity

Productivity per employee

(2)

oz/TEC

9.32

9.15

9.40

9.94

11.23

Environment and community

Number of reportable environmental incidents

Production

Gold produced

000oz

4,331

4,515

4,599

4,982

5,477

Ore Reserve

Moz

75.6

71.2

70.6

74.9

73.1

Costs

Total cash costs

$/oz

728

638

514

444

357

Total production costs

$/oz

950

816

646

567

476

Capital expenditure

1,527

1,015

1,027

1,201

1,059

Earnings

Average price received

(3)

$/oz

1,576

561

751

485

629

Headline earnings (loss)

1,484

122

(852)

(30)

(648)

Adjusted headline earnings (loss)

(4)

1,297

(1,758)

(50)

(897)

278

Adjusted headline earnings excluding

hedge buy-back costs

(4)

1,297

787

708

278

Profit (loss) per ordinary share

Basic

US cents

402

(89)

(377)

(237)

Diluted

US cents

346

(89)

(377)

(237)

Headline

US cents

384

(236)

(9)

(230)

Adjusted headline

(4)

US cents

336

(473)

(14)

(283)

Dividends per ordinary share

US cents

Return on equity excluding hedge buy-back costs

(4)

Return on net capital employed excluding

hedge buy-back costs

(4)

Exchange rates

Rand/dollar average exchange rate

7.26

7.30

8.39

8.25

7.03

Rand/dollar closing exchange rate

8.04

6.57

7.44

9.46

6.81

Australian dollar/dollar average exchange rate

0.97

1.09

1.26

1.17

1.19

Australian dollar/dollar closing exchange rate

0.97

0.98

1.12

1.44

1.14

Brazilian real/dollar average exchange rate

1.68

1.76

2.00

1.84

1.95

Brazilian real/dollar closing exchange rate

1.87

1.67

1.75

2.34

1.78

Definitions

(1)

The total number of injuries and fatalities per million hours worked.

(2)

Total ounces per total employees costed.

(3)

Average gold price received negatively affected by the reduction of the hedge book in the three years from 2008 to 2010.

(4)

Refer to Non-GAAP disclosure notes in the Annual Financial Statements.

One year forecast – 2012

Below, we provide our best current estimates for 2012 for

production, expected total cash costs and expected capital

expenditure by country of operation. We have also detailed

our five-year strategic targets and the key performance

indicators against which we will measure our performance

and report in next year’s report. Finally, in this section we

discuss our approach to closure and detail the current

expected liabilities and provisions, as these form an integral

part of our planning for the future.

Although we believe that the expectations reflected in this

section are reasonable, we can give no assurances that these

will materialise or prove to be correct. Because these forecasts

are based on assumptions or estimates and are subject to

risks and uncertainties, the actual results or outcomes could

differ materially from those set out here. For a discussion of

some of these risks and uncertainties, refer to the section titled

‘Forward-looking statements’ on page 1 of this report, to the

section titled ‘Risk review’ on page 15 of this report and to the

section titled ‘Risk management and risk factors’ in the Annual

Financial Statements.

AngloGold Ashanti’s annual production guidance for 2012 is

4.3Moz to 4.4Moz. Total cash costs are estimated at $780/oz

to $805/oz. Both the production and total cash cost estimates

will be reviewed quarterly, in the light of any safety-related

stoppages and any other unforeseen factors.

Capital expenditure for 2012 is estimated to range between

$2.2bn and $2.3bn.

Looking forward:
One-year forecast

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

2012 PRODUCTION TARGET
OF TO

Other illustrative estimates

Outlook 2012

Depreciation and amortisation

$880m

Corporate marketing, Project ONE and project development and capacity building costs

$315m

Expensed exploration (including equity-accounted associates and joint ventures)

$230m

Exploration prefeasibility costs (including equity-accounted associates and joint ventures)

$150m

Interest and finance costs (income statement)

(1)

$195m

Interest and finance costs (cash flow)

$140m

Number of shares qualifying for basic EPS at 31 December 2011

386m

(1)

Includes coupon on mandatory convertible bonds.

AngloGold Ashanti Annual Integrated Report 2011

Looking forward

Forecast

Expected total

Capital

Production

cash cost

expenditure

for the year ended 31 December 2012

000oz

$/oz

(1)

(3)

South Africa

(2)

1,638 – 1,676

714 – 737

592 – 619

Continental Africa

Ghana

524 – 536

905 – 933

306 – 320

Guinea

203 – 208

1,056 – 1,090

53 – 55

Mali

216 – 221

979 – 1,010

49 – 51

Namibia

80 – 82

730 – 753

Tanzania

472 – 483

682 – 704

80 – 83

DRC

–

370 – 388

Americas

Argentina

216 – 221

545 – 562

57 – 59

Brazil

469 – 480

706 – 728

228 – 238

United States of America

234 – 240

633 – 653

75 – 78

Australasia

Australia

249 – 255

1,236 – 1,275

308 – 323

Other

–

70 – 74

AngloGold Ashanti

4,300 – 4,400

780 – 805

2,200 – 2,300

(1)

Based on the following assumptions: R7.40/$, A$1.01/$, BRL1.70/$ and Argentinean peso 4.43/$; Brent crude at $110 per barrel.

(2)

In South Africa, production assumes a stable supply of power from Eskom at 62.40c/Kwh.

(3)

Capital expenditure is managed in line with earnings and cash flows and may fluctuate accordingly. Forecast capital expenditure for operations with minorities

is reported at 100%. For entities which are equity accounted, the forecast capital spend is the attributable share.

Planning for closure

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Closure, an integral part of operations

All mining operations eventually cease. An integral aspect of
operating our mines is the on-going planning for closure
planning, together with estimate of associated liability costs
and the assurance of adequate financial provisions to cover
these costs.

A group closure and rehabilitation management standard was
completed in 2009 and all operations were required to comply
with the standard by December 2011. The Continental Africa
operations have been granted an extension to December 2012.

Closure planning is an activity that starts at exploration and
mine design stage and continues throughout the life of mine:

•

The evaluation of new projects takes into account closure
and associated costs in a conceptual closure plan.

•

Our standard requires that an interim closure plan be
prepared within three years of commissioning an operation,
or earlier if required by legislation.

•

This plan is reviewed and updated every three years
(annually in the final three years of a mine’s life) or whenever
significant changes are made, and takes into account
operational conditions, planning and legislative requirements,
international protocols, technological developments and
advances in practice.

For many of the older mines, closure planning and the
evaluation of environmental liabilities is a complex process. This
is particularly so in Brazil, Ghana and South Africa, where many
of the long-life operations present environmental legacies that
may have developed over a century or more.

A particular challenge is concurrent rehabilitation, which is
carried out while a mine is still operational. This practice serves
to decrease the current liability and reduces the final
rehabilitation and closure work that must be undertaken, but has
the potential to sterilise reserves, which the company might wish
to exploit should conditions, such as the gold price, change.

Our closure standard stipulates that closure planning must be

undertaken in consultation with the community. In the course

of these consultations, different issues are raised which

require site-specific solutions. Livelihood preservation and

infrastructure are often key requirements. Local people, who

were previously employed at the mine, may receive education

and training so as to seek viable employment alternatives.

Communities also require information on rehabilitation of the

landscape and on any lasting environmental impacts.

Our long-term remediation obligations include decommissioning

and restoration liabilities relating to past operations, and are

based on our environmental management plans and comply

with current environmental and regulatory requirements.

Provisions for remediation costs are made when there is a

present obligation, it is probable that expenditure on

remediation work will be required and the cost can be

estimated within a reasonable range of possible outcomes.

These costs are based on facts currently available, technology

expected to be available at the time of the clean-up, laws and

regulations presently or virtually certain to be enacted, and

previous experience in the remediation of contaminated sites.

Provision for restoration and decommissioning costs are made

at the present value of the expenditures expected to settle the

obligation, using estimated cash flows based on current prices

and discounted at a pre-tax rate that reflects current market

assessments of the time value of money. An assessment of

closure liabilities is undertaken annually.

In 2011, discounted closure liabilities (excluding joint ventures)

increased from $551m to $747m. This change is largely

attributable to change in mine plans resulting in accelerated

cash flows, change in economic assumptions and discount

rates, change in design of tailings storage facilities and change

in methodology following requests from the Ghana

Environmental Protection Agency.

AngloGold Ashanti Annual Integrated Report 2011

Planning for closure

Rehabilitation liabilities per operation ($m)

2011

2010

Operation

Restoration

Decommissioning

Total

South Africa

73.7

81.1

154.8

184.4

Great Noligwa

3.7

12.0

15.7

19.8

Kopanang

6.2

16.7

22.9

28.6

Moab Khotsong

16.8

14.4

31.2

39.2

TauTona

12.6

11.2

23.8

27.3

Savuka

3.7

4.9

8.6

9.3

Mponeng

3.0

7.2

10.2

14.1

Legacy projects
– Vaal River

0.3

9.1

9.4

8.7

– West Wits

0.1

1.0

1.1

0.7

– Other

0.6

–

0.6

0.7

ERGO

26.7

3.6

30.3

35.0

Nufcor

–

1.0

Continental Africa

238.5

125.8

364.3

231.2

Ghana
Iduapriem

28.8

15.5

44.3

35.1

Obuasi

107.3

36.6

143.9

63.6

Mpasatia (Bibiani pit)

8.6

–

8.6

7.7

Guinea
Siguiri

23.7

29.4

53.1

28.2

Mali

(1)

Morila

4.5

1.1

5.6

5.0

Sadiola

14.0

10.6

24.6

19.4

Yatela

6.4

8.0

14.4

13.2

Namibia
Navachab

1.3

2.0

3.3

3.0

DRC
Kilo

7.9

–

7.9

10.3

Tanzania
Geita

36.0

22.6

58.6

45.7

Australasia

27.8

14.2

38.2

Australia

Sunrise Dam

27.8

12.8

40.6

38.2

Tropicana

–

1.4

–

Americas

192.3

230.3

135.3

Argentina

Cerro Vanguardia

29.6

9.3

38.9

25.7

Brazil

AGA Brasil Mineração

63.0

18.9

81.9

57.3

Serra Grande

21.9

5.7

27.6

6.3

United States of America

Cripple Creek & Victor

77.0

4.1

81.1

46.0

Colombia

AGA Colombia SA

0.8

–

0.8

–

532.3

259.1

791.4

589.1

Less equity-accounted investments included above

(1)

(24.9)

(19.7)

(44.6)

(37.6)

507.4

239.4

746.8

551.5

Board and executive management

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Non-executive chairman

Mr TT Mboweni (52)

BA, MA (Development Economics)

Chairman and independent non-executive director

Tito Mboweni was appointed to the board and as Chairman of
AngloGold Ashanti on 1 June 2010. He has a long and
outstanding record of public service. As Labour Minister from
1994 to 1998, Mr Mboweni was the architect of South Africa’s
post-apartheid labour legislation which today continues to
provide the basis for the mutually respectful labour
relationships central to AngloGold Ashanti’s operational
approach in South Africa. He was the eighth Governor of the
South African Reserve Bank from 1999 to 2009, and
Chancellor of the University of the North from 2002 to 2005.
He is also non-executive chairman of Nampak Limited and an
international adviser to Goldman Sachs. Mr Mboweni is a
founder member of Mboweni Brothers Investment Holdings.
He is also chairman of the fund raising comittee of the Nelson
Mandela Children’s Hospital and a trustee and chairman of the
finance committee of the Thabo Mbeki Foundation. He is
chairman of AngloGold Ashanti’s Nominations Committee and
is a member of the Investment, Financial Analysis and Party
Political Donations committees.

Executive directors

Mr M Cutifani (53)

BE (Mining Engineering)

Chief Executive Officer

Mark Cutifani was appointed to the board of AngloGold
Ashanti on 17 September 2007 and as Chief Executive Officer
on 1 October 2007. He is chairman of the Executive
Committee and a member of the Transformation and Human
Resources Development; Safety, Health and Sustainable
Development; Risk and Information Integrity; and Investment
Committees. Mark has considerable experience in mining,
having been associated with the industry since 1976. Prior to
joining AngloGold Ashanti, he was Chief Operating Officer at
CVRD Inco, a Toronto-based company, where he was
responsible for Inco's global nickel business.

Mr S Venkatakrishnan (Venkat) (46)

BCom, ACA (ICAI)

Chief Financial Officer

Venkat joined AngloGold Ashanti on 1 July 2004, having been
Chief Financial Officer at Ashanti Goldfields Company Limited
(Ashanti) until that company's merger with AngloGold Limited
in May 2004. He was appointed to the board on 1 August
2005, is a member of the Executive, Risk and Information
Integrity and Investment Committees and is invited to attend
meetings of the Audit and Corporate Governance Committee.
Venkat has extensive financial experience, having been a
director in the reorganisation services division of Deloitte &
Touche in London prior to joining Ashanti in 2000. Venkat is a
member of the audit committee of the World Gold Council and
has recently been appointed to the Financial Reporting
Investigation Panel, an advisory panel of the JSE.

Non-executive directors

Mr FB Arisman (67)

BA (Finance), MSc (Finance)

Independent non-executive director

Frank Arisman joined the board of AngloGold Ashanti on
1 April 1998. He is chairman of the Financial Analysis and
Investment Committees, and a member of the Safety,
Health and Sustainable Development, Audit and Corporate
Governance, Nominations, Risk and Information Integrity and
Remuneration Committees. Frank has a rich background
in management and finance through his experiences at
JP Morgan, New York, where he held various positions prior to
his retirement.

Mr R Gasant (52)

CA (SA)

Independent non-executive director

Rhidwaan Gasant was appointed to the board of AngloGold
Ashanti on 12 August 2010. He is chairman of the Risk and
Information Integrity Committee and a member of the Audit
and Corporate Governance, Nominations and Financial

Board of directors

AngloGold Ashanti Annual Integrated Report 2011

Board and executive management

Analysis Committees. He is the former Chief Executive Officer
of Energy Africa Limited and sits on the board of international
companies in the MTN Group.

Mrs NP January-Bardill (61)

BA (Education), MA (Applied Linguistics)

Independent non-executive director

Nozipho January-Bardill was appointed to the board of
AngloGold Ashanti on 1 October 2011 and is a member of the
Audit and Corporate Governance Committee. She recently
retired from the MTN Group where she served as an Executive
Director and spokesperson and on the boards of a number of
operations in the MTN footprint. She is former South African
Ambassador to Switzerland, and former Deputy Director
General, Human Capital Management and Head of the Foreign
Service Institute in the then Department of Foreign Affairs (now
DIRCO). She was reappointed a member of the UN Expert
Committee on the Elimination of Racism, Racial Discrimination,
Xenophobia and Related Intolerances for a four-year period
from 2012-2015 (previously from 2000-2008). She is currently
the founder and executive director of Bardill & Associates, a
consulting company focusing on strategic communications,
high-level government relations and stakeholder management.

Mr WA Nairn (67)

BSc (Mining Engineering)

Independent non-executive director

Bill Nairn was appointed to the board of AngloGold Ashanti
in 2000 as an alternate director and on 16 May 2001 as a
non-executive director. He chairs the Remuneration Committee
and is a member of the Safety, Health and Sustainable
Development; Transformation and Human Resources
Development; Investment; Party Political Donations; Risk and
Information Integrity; and Nominations Committees. Bill, a
mining engineer, has considerable technical experience, having
been the Group Technical Director of Anglo American plc until
2004 when he retired from the company. Having completed
the three-year cooling period, Bill is now considered an
Independent Non-executive Director of AngloGold Ashanti.

Prof LW Nkuhlu (67)

BCom, CA (SA), MBA (New York University)

Independent non-executive director

Wiseman Nkuhlu was appointed to the board on 4 August
2006. He has been the chairman of the Audit and Corporate
Governance Committee since 5 May 2007, having served as
deputy chairman from 4 August 2006. He also serves as a
member of the Financial Analysis; Risk and Information
Integrity; Safety, Health and Sustainable Development;
Nominations, Party Political Donations; and Remuneration
Committees. Wiseman, a respected South African academic,
educationist, professional and business leader, served as
Economic Adviser to the former President of South Africa, Mr
Thabo Mbeki, and as Chief Executive of the Secretariat of the
New Partnership for Africa's Development (NEPAD) from 2000
to 2005. From 1989 to 2000, he served as a director on a
number of major South African companies, including Standard

Bank, South African Breweries, Old Mutual, Tongaat Hulett,
BMW and JCI. Wiseman was President of the South African
Institute of Chartered Accountants from 1998 to 2000 and
Principal and Vice Chancellor of the University of Transkei from
1987 to 1991. He is also a member of the board of Datatec
Limited. He was elected President of the Geneva-based
International Organization of Employers (IOE) in May 2008
for a period of two years. He is a member of the Financial
Crisis Advisory Group of the International Accounting
Standards Board (IASB) and the Financial Accounting
Standards Board (FASB).

Mr F Ohene-Kena (75)

MSc (Engineering), DIC and ACSM

Independent non-executive director

Ferdinand (Fred) Ohene-Kena was appointed to the board of
AngloGold Ashanti on 1 June 2010. He is the former Ghanaian
Minister of Mines and Energy and is currently a member of the
Ghana Judicial Council. He is the chairman of the Ghana
Minerals Commission and a member of the President’s
Economic Advisory Council. Mr Ohene-Kena is a member
of the Safety, Health and Sustainable Development;
Transformation and Human Resources Development; and
Nominations Committees.

Mr SM Pityana (52)

BA (Hons) (Essex), MSc (London), Dtech (Honoris) (Vaal

University of Technology)

Independent non-executive director

Sipho Pityana joined the board of AngloGold Ashanti on
13 February 2007. He is the chairman of the Safety, Health and
Sustainable Development Committee and is a member of the
Remuneration, Party Political Donations, Investment,
Nominations, Financial Analysis, Risk and Information Integrity
and the Transformation and Human Resources Development
Committees. Sipho has extensive experience in management
and finance, and has occupied strategic roles in both the
public and private sectors, including that of Director General of
the national departments of both labour and foreign affairs.
He was formerly a senior executive of Nedbank Limited and is
currently the Executive Chairman of Izingwe Holdings
(Proprietary) Limited, a local empowerment group and a
significant investor in mining, engineering, infrastructure and
logistics, and AngloGold Ashanti’s BEE partner. He serves as a
Non-executive Director on the boards of several other South
African companies.

Mr RJ Ruston (61)

MBA, Business, BE (Mining)

Independent non-executive director

Rodney Ruston was appointed to the board of AngloGold
Ashanti on 1 January 2012. Rodney, a mining engineer,
has over 35 years of experience in the resources industry.
He is currently the President and CEO of North American
Energy Partners, a large Canadian mining and construction
contracting company listed on the NYSE and the TSX.

Executive management

– at 31 December 2011

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Executive management

Ms I Boninelli (55)

MA (Psychology), post-graduate diploma in Labour

Relations

Executive Vice President – People and Organisational

Development

Italia Boninelli joined AngloGold Ashanti on 15 October 2010

as Senior Vice President: Human Resources, Strategy and

Change Management and was appointed to the Executive

Committee on 1 December 2011 where she is responsible for

the company’s people strategy, transformation and change

management initiatives. Italia has more than 25 years’

experience in human resources, marketing communications,

customer relationship management and business transformation,

in a variety of industries including mining, manufacturing,

healthcare and banking. She is a registered industrial

psychologist with the Health Professions Council of South

Africa, holds a masters degree in psychology and a post-

graduate diploma in labour relations.

Dr CE Carter (49)

BA (Hons), DPhil, EDP

Executive Vice President – Business Strategy

Charles Carter has worked in the mining industry in South

Africa and the United States since 1991, in a range of

corporate roles with Anglo American Corporation, RFC

Corporate Finance and AngloGold Ashanti. He was appointed

Executive Vice President – Business Strategy in December

2007 and is currently responsible for corporate strategy and

business planning, risk management, investor relations and

Project ONE implementation.

Mr RN Duffy (48)

BCom, MBA

Executive Vice President – Continental Africa

Richard Duffy joined Anglo American in 1987 and in 1998 was

appointed Executive Officer and Managing Secretary of

AngloGold. In November 2000, he was appointed Head of

Business Planning and in 2004 assumed responsibility for all

new business opportunities globally. In April 2005, this role was

expanded to include greenfields exploration. He was

appointed to the Executive Committee in August 2005.

Richard was appointed Executive Vice President – Continental

Africa in July 2008.

Mr GJ Ehm (55)

BSc Hons, MAusIMM, MAICD

Executive Vice President – Australasia

Graham Ehm has, since 1979, gained diverse experience in

mine operations and project management, covering the nickel,

phosphate, copper, uranium and gold sectors. He was

appointed General Manager of Sunrise Dam gold mine in

2000, Regional Head – Australia in 2006 and Executive Vice

President – Australasia in December 2007. He assumed the

role of Executive Vice President – Tanzania on 1 June 2009

and during August 2010, resumed the position of Executive

Vice President – Australasia.

Mr RW Largent (51)

BSc (Mining Engineering), MBA

Executive Vice President – Americas

Ron Largent has been with AngloGold Ashanti since 1994.

He has served on the board of directors for the Colorado

Mining Association, California Mining Association and Nevada

Mining Association. In 2001, he was appointed General

Manager of the Cripple Creek & Victor gold mine and took up

his current role as Executive Vice President – Americas in

December 2007.

AngloGold Ashanti Annual Integrated Report 2011

Executive management

Mr RL Lazare (55)

BA, HED, DPLR, SMP

Executive Vice President

Robbie Lazare joined Anglo American Gold and Uranium

Division in 1982, working in a variety of management

posts until 1999 when he was appointed General Manager

of TauTona. In December 2004, he was appointed an

Executive Officer with responsibility for South African

operations and in July 2008, Executive Vice President –

Human Resources. From 17 November 2009, Robbie was

assigned to lead a strategy review of the South African

operations and is now responsible for the South Africa region.

Mr MP O'Hare (52)

BSc Engineering (Mining)

Executive Vice President – South Africa

Mike O’Hare joined Anglo American in 1977, and has held a

number of positions at various gold mining operations within

the group. His roles have included General Manager of

Kopanang (1993), Great Noligwa (2003), Head of Mining and

Mineral Resource Management Underground (2006), Vice

President: Technical Support (2008), Senior Vice President:

Operations and Business Planning for South Africa (2010), and

in 2011, he was appointed Executive Vice President –

South Africa.

Mr AM O’Neill (54)

BSc Engineering (Mining), MBA

Executive Vice President – Business and Technical

Development

Tony O’Neill joined AngloGold Ashanti in July 2008 as

Executive Vice President – Business and Technical

Development, having consulted to the company prior to this on

its asset portfolio strategy. His extensive career in mining since

1978 included the roles of Executive – Operations at Newcrest

Mining Limited and Executive General Manager for gold at

Western Mining Corporation.

Ms ME Sanz (46)

BCom LLB, H Dip Tax, Admitted Attorney

Group General Counsel

Maria (Ria) Sanz joined AngloGold Ashanti in June 2011

having worked in a number of industries and major

corporate organisations. She has held legal roles at Investec

Bank, Basil Read, Afrox and Sappi. She was also Group

Head of Sustainability at Sappi. She is responsible for Group

legal services as well as compliance and company

secretarial functions.

Ms YZ Simelane (46)

BA LLB, FILPA, MAP, EMPM

Senior Vice President – Corporate Affairs

Yedwa Simelane joined AngloGold Ashanti in November 2000

from the Mineworkers' Provident Fund where she was the

senior manager of the Fund. She was appointed an executive

officer in May 2004 and Vice President – Government

Relations in July 2008. In November 2009, she was appointed

Senior Vice President – Corporate Affairs with responsibility for

government relations, corporate communications, marketing

and the sustainability report.

Company secretary

Ms L Eatwell (57)

FCIS, FCIBM

Lynda Eatwell joined AngloGold Ashanti in 2000 as Assistant

Company Secretary and was appointed Company Secretary in

December 2006. She is responsible for ensuring statutory

compliance and corporate governance requirements by

AngloGold Ashanti and its subsidiaries. She also advises

members of the board on their duties and responsibilities

as directors.

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Summarised corporate governance and
remuneration report

Corporate governance structure

AngloGold Ashanti has developed a governance structure that is

effective in managing an entity of such geographic diversity and

scale. AngloGold Ashanti is headquartered in Johannesburg and

is the ultimate holding company of several subsidiaries located

in South Africa and in the countries in which it operates. A

number of its non-South African subsidiaries are managed by its

off-shore subsidiary, AngloGold Ashanti Holdings PLC, based in

the Isle of Man. Operationally, the group comprises four regions,

namely, South Africa, Continental Africa, Australasia and the

Americas. Each region is headed by an executive vice president

and day-to-day operational matters are the responsibility of local

mine management.

The governance of the company is guided by internal policies

and external laws, rules, regulations and best practice

guidelines as detailed in the corporate governance structure

alongside. Internal policies and external legislation, regulations,

codes and guidelines are detailed on the corporate website at

www.anglogoldashanti.com/sustainability, under Corporate

Governance and Policies.

Please refer to the Annual Financial Statements for a more

comprehensive report on corporate governance.

Board committees

The board has established and delegated specific roles and

responsibilities to 10 standing committees, including the

Executive Committee, to assist it in the discharge of its duties and

responsibilities. The terms of reference of each committee are

approved by the board and reviewed annually or as necessary.

All committees, except the Executive Committee, are chaired

by independent non-executive directors and the following

committees are composed of non-executive directors only –

Audit and Corporate Governance, Nominations, Remuneration

and Financial Analysis.

All committees meet quarterly in accordance with their terms

of reference, except the Party Political Donations, Nominations

and Financial Analysis Committees which meet on a need-to

basis. Members of the Executive Committee and other

management attend meetings of the various committees as

and when necessary. During 2011, all committees held the

minimum number of meetings as required and discharged their

duties as prescribed by their terms of reference.

The composition of each committee, the number and attendance

at meetings are discussed in the Annual Financial Statements.

Remuneration

The Remuneration Policy applies to all AngloGold Ashanti

operations globally and sets out policies and parameters

relating to the establishment and application of employee

rewards. In determining employee rewards, AngloGold Ashanti

takes into consideration:

•

AngloGold Ashanti’s strategy, business objectives and

company values;

•

Overall business performance;

•

The skills required and how the company attracts and retain

these employees to best deliver the objectives of AngloGold

Ashanti;

•

The relevant labour markets within which the company

operates;

•

The wage differentials between the top and bottom levels of

the organisation (‘wage gap’); and

•

Trade unions and the relationships and requirements which

the company has in negotiations to ensure that all

employees are fairly treated.

In order to address these considerations and to ensure that

employees feel that they are equitably rewarded for their input

AngloGold Ashanti applies the following framework:

•

A pay curve designed according to the applicable

Stratum/grade and substratum;

•

Pay for performance, differentiation in pay according to an

employee’s deliverables;

•

Internal equity; and

•

Market benchmarking using the AngloGold Ashanti principle

of positioning guaranteed pay at the median of the

applicable markets.

The policy should be followed and applied in conjunction with

any local AngloGold Ashanti practices and government

legislation.

Reward components include a base salary, short-term

incentives, long-term incentives and employee benefits and

allowances.

AngloGold Ashanti is in the process of moving from the

administration of compensation into pay ranges developed

around the requisite-based Stratum structure and away from

the previously employed Paterson job evaluation system.

Currently this is complete down to Stratum IV and will progress

through the organisation to all employees not covered by a

collective bargaining unit or union. Where compensation

administration arrangements are negotiated with employee

representatives/trade unions and AngloGold Ashanti is

AngloGold Ashanti Annual Integrated Report 2011

Governance and remuneration

involved with multi-employer agreements, this may only take

place after the required negotiation.

For further details on AngloGold Ashanti’s remuneration policy,

see the Annual Financial Statements.

The composition of each committee, the number and

attendance at meetings are discussed in the Annual Financial

Statements.

Internal assurance:

combined

assurance

External assurance

Competent persons:

resources and

reserves

SOX compliance

Risk management

Disclosures

Committee

Board committees

Board of directors

JSE Listings Requirements
Companies Act 71, of 2008
Sarbanes-Oxley Act, 2002
King Report on Corporate Governance
(King III)
Employment Equity Act of South Africa
Anti-corruption legislation – UK, South
Africa and US
Environmental laws of operational
jurisdictions
Labour laws of operational jurisdictions

Regulations

Assurance

Board charter
Directors’ induction policy
Declaration of interests policy
Board committees terms of reference
Code of business principles and ethics
Delegation of authority policy
Insider trading policy
Compliance policy
Risk management policy
Risk management framework
Gift policy
Disclosures policy
Code of ethics for senior financial officers
Environmental and community policy
HIV/AIDS policy
Directors’ dealings in AngloGold
Ashanti securities
Procurement policy

Group policies

Committee chairman

Not a comprehensive list

Subsequent to year-end, Mr RJ Ruston was appointed to the board, as an independent non-executive director.

Global IT Steering

Committee

Audit and Corporate
Governance
Committee

LW Nkuhlu (Prof)

Nkuhlu (Prof)

FB Arisman

R Gasant
NP January-Bardill

Safety, Health and
Sustainable
Development
Committee

FB Arisman
M Cutifani
WA Nairn

F Ohene-Kena

SM Pityana

Risk and Information
Integrity Committee

R Gasant

FB Arisman
M Cutifani
WA Nairn
LW Nkuhlu (Prof)
SM Pityana
S Venkatakrishnan

Nominations
Committee

TT Mboweni

FB Arisman
R Gasant

WA Nairn
LW Nkuhlu (Prof)
F Ohene-Kena
SM Pityana

Executive Committee

M Cutifani

I Boninelli
CE Carter (Dr)

RN Du y
GJ Ehm
R Largent
RL Lazar
MP O’Hare

AM O’Neill
ME Sanz
YZ Simelane
S Venkatakrishnan

Transformation and
Human Resources
Development
Committee

M Cutifani
WA Nairn
F Ohene-Kena
SM Pityana

Investment
Committee

FB Arisman

S Venkatakrishnan

M Cutifani
TT Mboweni
WA Nairn
SM Pityana

Remuneration
Committee

SM Pityana

NP January-Bardill

FB Arisman

LW Nkuhlu (Prof)

Party Political
Donations Committee

M Cutifani

TT Mboweni

WA Nairn

LW Nkuhlu (Prof)
SM Pityana

Financial Analysis
Committee

FB Arisman

R Gasant

TT Mboweni
LW Nkuhlu (Prof)
SM Pityana

TT Mboweni

WA Nairn

TT Mboweni

Non-executive directors

TT Mboweni (Chairman)
FB Arisman

NP January-Bardill

R Gasant

WA Nairn
LW Nkuhlu (Prof)
F Ohene-Kena
SM Pityana

Executive directors

(Chief executive officer)

M Cutifani

(Chief financial officer)

S Venkatakrishnan

Corporate governance structure at 31 December 2011

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

AngloGold Ashanti’s suite of 2011 annual reports have been

reviewed and assured as follows:

Integrated Annual Report

•

The Integrated Annual Report for the year ended

31 December 2011, which was recommended by the Audit

and Corporate Governance Committee for approval by

the board, was approved by the board of directors on

16 March 2012.

Annual Financial Statements 2011

•

The Annual Financial Statements for the year ended

31 December 2011 were approved by the board of directors

on 16 March 2012.

•

In accordance with Section 29(1)(e)(ii) of the Companies Act,

No 71 of 2008, the Annual Financial Statements for AngloGold

Ashanti Limited, for the year ended 31 December 2011, have

been audited by Ernst & Young Inc., the company’s

independent external auditors, whose unqualified audit report

can be found in the Annual Financial Statements.

The financial statements have been prepared by the

corporate reporting staff of AngloGold Ashanti Limited,

headed by Mr John Edwin Staples, the group’s Chief

Accounting Officer. This process was supervised by

Mr Srinivasan Venkatkrishnan, the group’s Chief Financial

Officer.

Mineral Resource and Ore Reserve
Report 2011

•

The Mineral Resource and Ore Reserve information as

included in the Integrated Annual Report and Annual

Financial Statements were approved by the board of

directors on 16 March 2012.

•

The chairman of the Mineral Resource and Ore Reserve

Steering Committee assumes responsibility for the Mineral

Resource and Ore Reserve Report 2011.

Sustainability Report 2011

•

The Sustainability Report 2011 was approved by the board

of directors on 16 March 2012.

•

Independent assurance in respect of the Sustainability

Report 2011 was provided by Ernst & Young Inc.

Approvals and assurances

AngloGold Ashanti Annual Integrated Report 2011

Shareholder diary and information

Shareholders’ diary

Financial year-end

31 December

Annual Financial Statements

published on or about

4 April 2012

Annual general meeting

11:00 SA time

10 May 2012

Quarterly reports

Released on or about

– Quarter ended 31 March 2012

10 May 2012

– Quarter ended 30 June 2012

7 August 2012

– Quarter ended 30 September 2012

8 November 2012

– Quarter ended 31 December 2012

14 February 2013

Dividends

Last date to trade

ordinary shares

Payment date

Dividend number

Declared

cum dividend

to shareholders

to ADS holders

2011 Final – number 112

15 February 2012

2 March 2012

16 March 2012

26 March 2012

2012 Q2 Interim – number 113*

*Early May 2012

*Late May 2012

*Early June 2012

*Late June 2012

2012 Q3 Interim – number 114*

*Early August 2012

*Late August 2012 *Early September 2012 *Late September 2012

2012 Q4 Interim – number 115* *Early November 2012 *Late November 2012

*Early December 2012

*Late December 2012

* Proposed, subject to board approval.

Shareholder diary and information

Dividend policy

Dividends are proposed by and approved by the board of

directors of AngloGold Ashanti, based on the company’s

financial performance. Dividends are recognised when

declared by the board of directors of AngloGold Ashanti.

During the third quarter of 2011, the company changed the

timing of dividend payments to quarterly rather than half-

yearly. AngloGold Ashanti expects to continue to pay

dividends, although there can be no assurance that

dividends will be paid in the future or as to the particular

amounts that will be paid from year to year. The payment of

future dividends will depend upon the board's ongoing

assessment of AngloGold Ashanti's earnings and cashflow,

after providing for capital expenditure and long-term growth,

cash/debt resources, compliance with the solvency and

liquidity requirements of the Companies Act of 2008, the

amount of reserves available for dividend, based on the going

concern assessment, and restrictions placed by the

conditions of the convertible bonds, other debt facilities,

protection of the investment grade rating and other factors.

Withholding tax

On 21 February 2007, the South African government

announced that a 10% withholding tax on dividends and other

distributions payable to shareholders would be implemented.

In his budget speech on 22 February 2012, the South African

Minister of Finance announced that the withholding tax on

dividends and other distributions payable to shareholders will

be increased from 10% to 15% effective 1 April 2012.

This withholding tax replaces the Secondary Tax on Companies

and although this may reduce the tax payable by AngloGold

Ashanti’s South African operations, thereby potentially

increasing distributable earnings, the withholding tax on

dividends and other distributions will generally reduce the

amount of dividends or other distributions received by

AngloGold Ashanti shareholders, subject to certain exceptions.

The method for the collection of this withholding tax will be

communicated to shareholders in due course.

Introduction

Overview and strategy

Performance in 2011

Future outlook

Governance

Annual general meeting

AngloGold Ashanti will be holding its 68th Annual General

Meeting of shareholders in The Auditorium, 76 Jeppe street,

Newtown, Johannesburg, South Africa on Thursday, 10 May

2012, at 11:00 (South African time).

The Notice of Meeting will be posted to shareholders entitled

to receive same on or about 31 March 2012. Copies of the

notice of meeting, complete with proxy form and voting

instruction forms can be accessed from the company’s

website www.aga-reports.com or are obtainable from

companysecretary@anglogoldashanti.com.

Shareholders on the South African register who have

dematerialised their shares in the company (other than those

shareholders whose shareholding is recorded in their own

names in the sub-register maintained by their CSDP) and who

wish to attend the annual general meeting to be held on

10 May 2012 in person, will need to request their CSDP or

broker to provide them with the necessary authority in terms of

the custody agreement entered into between them and the

CSDP or broker.

Voting rights

The South African Companies Act 71 of 2008 (as amended)

provides that if voting is by a show of hands, any person

present and entitled to exercise voting rights has one vote,

irrespective of the number of voting rights that person would

otherwise be entitled to. If voting is taken by way of poll, any

shareholder who is present at the meeting, whether in person

or by duly appointed proxy, shall have one vote for every share

held. There are no limitations on the right of non-South African

shareholders to hold or exercise voting rights attaching to any

shares of the company. CDI holders are not entitled to vote in

person at meetings, but may vote by way of proxy. Options

granted in terms of the share incentive scheme do not carry

rights to vote.

Change of details

Shareholders are reminded that the onus is on them to keep

the company, through its nominated share registrars, apprised

of any change in their postal address and personal particulars.

Similarly, where shareholders received dividend payments

electronically (EFT), they should ensure that the banking details

which the share registrars and/or CSDPs have on file are correct.

Annual reports

Should you wish to receive a printed copy of AngloGold

Ashanti’s 2011 annual reports, please request same from the

contact persons listed at the end of this report or from the

company’s website.

Shareholder diary and information

continued

AngloGold Ashanti Limited

Registration No. 1944/017354/06

Incorporated in the Republic of South Africa

Share codes:

ISIN:

ZAE000043485

JSE: ANG

LSE: AGD

NYSE: AU

ASX:

AGG

GhSE (Shares):

AGA

GhSE (GhDS):

AAD

JSE Sponsor:

UBS

Auditors:

Ernst & Young Inc.

Offices:

Registered and Corporate

76 Jeppe Street

Newtown 2001

(PO Box 62117, Marshalltown 2107)

South Africa

Telephone: +27 11 637 6000

Fax: +27 11 637 6624

Australia

Level 13, St Martins Tower

44 St George's Terrace

Perth, WA 6000

(PO Box Z5046, Perth WA 6831)

Australia

Telephone: +61 8 9425 4602

Fax: +61 8 9425 4662

Ghana

Gold House

Patrice Lumumba Road

(PO Box 2665)

Accra

Ghana

Telephone: +233 303 772190

Fax: +233 303 778155

United Kingdom Secretaries

St James’s Corporate Services Limited

6 St James's Place

London SW1A 1NP

England

Telephone: +44 20 7499 3916

Fax: +44 20 7491 1989

E-mail: jane.kirton@corpserv.co.uk

Directors:

Executive

M Cutifani ~ (Chief Executive Officer)

S Venkatakrishnan

*(Chief Financial Officer)

Non-Executive

T T Mboweni

†

(Chairman)

F B Arisman #

R Gasant

†

Ms N P January-Bardill

†

W A Nairn

†

Prof L W Nkuhlu

†

F Ohene-Kena +

S M Pityana

†

R J Ruston ~

* British

# American

Indian

~ Australian

†

South African

+ Ghanaian

Officers

Company Secretary: Ms L Eatwell

Investor Relations Contacts:

South Africa

Michael Bedford

Telephone: +27 11 637 6273

Mobile: +27 82 374 8820

E-mail: mbedford@AngloGoldAshanti.com

United States

Stewart Bailey

Telephone: +1-212-836-4303

Mobile: +1-646-717-3978

E-mail: sbailey@AngloGoldAshanti.com

General E-mail enquiries

investors@AngloGoldAshanti.com

AngloGold Ashanti website

http://www.AngloGoldAshanti.com

Company Secretarial E-mail

Companysecretary@AngloGoldAshanti.com

AngloGold Ashanti posts information that is important to investors on the

main page of its website at www.anglogoldashanti.com and under the

“Investors” tab on the main page. This information is updated regularly.

Investors should visit this website to obtain important information about

AngloGold Ashanti.

Administration

5096/11

PURE GOLD

www.anglogoldashanti.com

Download the full
Annual Integrated
Report 2011

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AngloGold Ashanti Limited

Date: May 11, 2012

By:

/s/ L Eatwell

Name: L EATWELL
Title: Company Secretary