Corporate responsibility

CAG is cognisant that, by its very nature, mining is a non-sustainable activity. It also recognises that its exploration and mining activities can and will have an impact on the natural environment and communities in which the company operates. In the case of exploration, the degree of this impact will depend on whether or not a mine is established and the period of time over which the exploitation occurs.

As a relatively new company CAG is in the process of establishing its sustainable development policies. Particularly in respect of the Bibiani mine in Ghana (which was acquired in December 2006) and the mines in Zimbabwe (which were acquired in March 2007), an audit is currently being undertaken to establish what programmes are in place, what programmes should be in place, and to engage with stakeholders in these communities on community needs.

While CAG is not a member of the International Council on Mining and Metals (ICMM) (an advocacy body made up of the world’s largest resources companies), the company is supportive of the ICMM principles that underpin the ICMM Sustainable Development Framework. These principles (see below) will be incorporated into the strategy and plans that CAG puts in place to address issues relating to sustainable development.

Our stakeholders:

CAG recognises that its stakeholders extend far beyond the company’s shareholders. CAG’s stakeholders include:

• Our employees and contractors;
• Local communities in which our operations are located or in which our exploration activities are conducted;
• Non-governmental organisations and community-based organisations representing the communities and regions in which we operate;
• Governments – local, regional and national.
• Regulatory authorities in the countries in which we operate; and
• Traditional leaderships structured in the areas in which we operate.

As an indication of the way in which CAG proposes to conduct its business, the company officially inaugurated the Bibiani mine in January 2007 by way of a celebration for employees, the local communities and local dignitaries.

CAG employees attending the Bibiani inauguration

Local dignitaries and communities were well-represented at the inauguration proceedings

CAG’s ownership of Bibiani is officially unveiled

Safety and health

The safety and health of employees is of primary concern to CAG. The Bibiani mine has a health and safety policy in place. This is being reviewed and integrated into a group-wide policy which will apply at all other sites and operations.

There were no fatal or serious accidents at any of CAG’s operations within the last year. The lost time injury frequency rate at Bibiani for 2006 was 1.14 per million man hours.

CAG recognises, however, that with the transition to underground mining at Bibiani and with the expansion of operations in Zimbabwe, the company’s risk profile will change and that measures need to be put in place to address this.

Environment

Bibiani mine’s environmental management programme has been developed in line with the requirements of ISO14001, the international environmental standard. Historically, the Bibiani mine was certified to be in compliance with ISO14001, with the most recent certification expiring in January 2006. Since the mine was in closure mode prior to its acquisition by CAG this certification was not maintained. CAG is confident that the programmes required by ISO14001 have been institutionalised at the mine and will ensure that similar programmes are implemented at its other operations and projects.

Reforestation nursery at Bibiani Mine – Ghana

Community development

CAG is in the process of developing a community development policy and programme.

Current community development initiatives in place at Bibiani include community farms, support for a community bakery, community health programmes run by the mine clinic and a reforestation programme. The company intends refocusing the current programme in consultation with the local community to address the most pressing needs. Initially, key among these priorities appears to be malaria prevention and control and local economic development.

In Mali, the company has focused on malaria prevention. In particular, in July 2006, CAG (together with its joint venture partners) donated treated mosquito nets to more than 2,000 people in Bamako district. Prominent Malian NGO, Alliance de Meilleure Pratiques Pour le Development and Bamako local health authorities assisted CAG in purchasing and distributing the mosquito nets in Bamako.