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CEO's letter to stakeholders

CEO's letter to stakeholders

Dear stakeholders,

It is with great pleasure that I present to you the sustainable development section of our annual report. Although sustainable development is presented as a separate section, we fi rmly believe that our business success is due to our approach of integrating sustainability into all aspects of our decision-making. Sustainability is a cornerstone of our business and is a working concept that is inherent in our DNA.

Sustainable development is integrated as a component in our all-in cost (NCE) of operations and as such critical as we target a long-term 25 per cent NCE margin. Our approach to sustainable development is one premised on the simple notion of managing our risks responsibly and capitalising on our opportunities. At the same time we are adopting an ever-increasing measure of proactivity to the long-term sustainability of the business.

This implies that we integrate sustainable development considerations into our activities right from the earliest stages of exploration through to feasibility studies, construction, mining and, ultimately, to mine closure. At the exploration stage we currently assign around ten per cent of our budget to sustainable development projects. We believe that applying such an early commitment to responsible practices has resulted in the success of our Cerro Corona Mine in Peru, which has evolved into a world-class operating mine that is economically viable, environmentally responsible and enjoys considerable social support. A case study of the cradle-to-grave approach adopted at Cerro Corona is presented on page 97 of this report.

Owning some of the world’s best gold ore bodies enables us to pursue our vision of being the global leader in sustainable gold mining. We are cognisant of the fact that all of our mines have fi nite lives, which makes it even more critical that we convert the natural capital of our ore bodies into broad social benefit. We undertake this transfer in a manner that provides superior returns to our shareholders while being environmentally responsible and benefi cial to our communities.

Sustainable development is a working concept that evolves with societal needs and expectations and our approach to sustainable development is thus informed by continuous stakeholder engagement. As you read through the following pages detailing our achievements and challenges in the various areas of sustainable development, I would encourage you, as a key stakeholder, to give us feedback on how we are faring on this journey.

NJ Holland
Chief Executive Officer