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Anglo American plc's disclosure of environmental non-compliances in annual reports

The company’s sustainable development reports include data on “environmental incidents” which have occurred throughout the year (throughout Anglo American’s worldwide operations and not just its South African operations). Such incidents are ranked from level 3 (medium environmental impact) to level 5 (high environmental impact).1 Level 1 and 2 incidents are not reported publicly as they are regarded by the company as minor in nature.2 This scale was introduced in 2011. Previously a three tiered scale was used.3

Anglo American’s company reports do not contain any information on compliance monitoring and enforcement action by regulatory authorities.

2009 company reports

In 2009 the company reported 62 Level 2 incidents across the group, 42% of which were water related incidents.4

2010 company reports

In 2010 the company reported 61 Level 2 incidents across the group, including 38 water related incidents. It was reported that these were primarily as a result of high levels of rainfall in Australia and South Africa.5

2011 company reports

In 2011, the company reported 27 Level 3 environmental incidents and one Level 4 incident. The Level 4 incident occurred in Canada. It was reported that 12 of the Level 3 incidents related to water and more specifically included ineffective sewerage containment and contaminated water dam overflows. It is not clear from the 2011 Sustainable Development Report where the Level 3 incidents occurred.

2012 company reports

In 2012, the company reported 12 Level 3 incidents.6 7 of these related to water and there was also one Level 4 water related incident.7 The Level 3 water incidents related to “unplanned discharges” and the Level 4 incident related to an operation in Brazil.

Also in relation to water it was stated that “Anglo American’s exposure to acid rock drainage (ARD) in southern Africa is limited to some of our Thermal Coal mines in the country’s Mpumalanga province.”8

The above figure of 12 Level 3 incidents during the year excludes the number of environmental incidents at De Beers’ operations, which amounted to 10 Level 3 incidents.9 No details of these incidents are provided.

2013 company reports

In 2013, the company reported 30 Level 3 incidents.10 In the same report it is stated that excluding De Beers there were 24 Level 3 incidents and 150 Level 2 incidents. 6 of the Level 3 incidents occurred at Thermal Coal (operating in South Africa, Colombia, Canada and Australia) and 1 at Platinum.11 Further information is available regarding these “incidents”, but it is not always clear whether or not such incidents relate to South African operations.

15 incidents during the 2013 reporting period related to water and “mostly to unauthorised discharges at the coal businesses in South Africa and Australia, following heavy rainfall”.12 Seven environmental incidents in 2013 related to land, which included three hydrocarbon spills at Thermal Coal in South Africa.13

The company reported five biodiversity related incidents in 2013, which included trees being cut down at De Beers’ Voorspoed mine, three slime spills and an overflow of municipal raw sewerage into a rehabilitated mining area at Kimberley mine.14

The Mogalakwena mine, operated by Anglo American Platinum, experienced a Level 3 tailings spillage in 2013.15 The tailings leaked into the Mohlosane River and extended for four kilometres into communal land.16 It is notable that this incident was classified as only Level 3.17

2014 company reports

In 2014, the company reported one Level 4 incident and 14 Level 3 incidents.18 One of the Level 3 incidents was a hydrocarbon spill at Kumba Iron Ore19 and another involved damage to indigenous trees and natural vegetation at De Beers’ Kimberley mine.20 Other Level 3 incidents include unauthorised mine water discharges at coal operations in South Africa.21

The Level 4 incident occurred at a South African coal mine, where an acidic water discharge caused water discolouration and metal precipitation in a stream.22

  1. Anglo American Sustainable Development Report 2013 at p16, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  2. Anglo American Sustainable Development Report 2013 at p59, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  3. Anglo American Sustainable Development Report 2011 at p49, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/sustainable-development/SD-Report-2011a.pdf
  4. Anglo American Sustainable Development Report 2010 at p50, available at http://www.angloamerican.com/~/media/Files/A/Anglo-American-PLC-V2/investors/reports/angloamerican-sd-reporthjz-2010.pdf
  5. Anglo American Sustainable Development Report 2010 at p50, available at http://www.angloamerican.com/~/media/Files/A/Anglo-American-PLC-V2/investors/reports/angloamerican-sd-reporthjz-2010.pdf
  6. Anglo American Sustainable Development Report 2012 at p74, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/sd-report-2012.pdf
  7. Anglo American Sustainable Development Report 2012 at p59, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/sd-report-2012.pdf
  8. Anglo American Sustainable Development Report 2012 at p59, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/sd-report-2012.pdf
  9. Anglo American Sustainable Development Report 2012 at p76, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/sd-report-2012.pdf
  10. Anglo American Sustainable Development Report 2013 at p17, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  11. Anglo American Sustainable Development Report 2013 at p76, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  12. Anglo American Sustainable Development Report 2013 at p59, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  13. Anglo American Sustainable Development Report 2013 at p66, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  14. Anglo American Sustainable Development Report 2013 at p66, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  15. Anglo American Sustainable Development Report 2013 at p68, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  16. Anglo American Sustainable Development Report 2013 at p68, available at http://www.angloamerican.co.za/~/media/Files/A/Anglo-American-South-Africa/Attachments/media/AA-SDR-2803.pdf
  17. Anglo American provided an explanation for this classification in its response to Full Disclosure. Please see http://cer.org.za/full-disclosure/company/anglo-american-plc?correspondence
  18. Anglo American Sustainable Development Report 2014 at p56, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa-V2/documents/sdr14-interactive-version.pdf
  19. Anglo American Sustainable Development Report 2014 at p57, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa-V2/documents/sdr14-interactive-version.pdf
  20. Anglo American Sustainable Development Report 2014 at p57, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa-V2/documents/sdr14-interactive-version.pdf
  21. Anglo American Sustainable Development Report 2014 at p65, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa-V2/documents/sdr14-interactive-version.pdf
  22. Anglo American Sustainable Development Report 2014 at p65, available at http://southafrica.angloamerican.com/~/media/Files/A/Anglo-American-South-Africa-V2/documents/sdr14-interactive-version.pdf