REG - Anglo American PLC - Annual Financial Report <Origin Href="QuoteRef">AAL.L</Origin> - Part 2
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Failure to maintain high levels of safety management can result in harm to our employees, contractors and communities near our operations. Occupational health risks to Root cause: Mining is a hazardous industry and working conditions such as weather, altitude and temperature can add to the inherent dangers of mining, whether underground or in open pit mines. Mitigation: Anglo American sets a very high priority on safety and health matters. A safety and health risk management process, global standards and a technical risk assurance programme form part of a consistently applied robust approach to mitigating safety, health and environmental risk. Anglo American provides free anti-retroviral therapy to employees with HIV/AIDS and undertakes education and awareness programmes to help prevent infection or spread of infection. No change in risk
employees and contractors include noise induced hearing loss, occupational lung diseases and tuberculosis (TB). In sub-Saharan Africa in particular, HIV/AIDS is a threat
to economic growth and development. Impact: In addition to injury and damage to health, impacts could include fines and penalties for past, current or future issues,
liability to employees or third parties, impairment of Anglo American's reputation, industrial action or inability to attract and retain skilled employees. Government
authorities may force closure of mines on a temporary or permanent basis or refuse mining right applications. The recruitment and retention of skilled people required to
meet growth aspirations can be affected by high rates of HIV/AIDS.
Commentary: Details of safety performance and our approach to health management are provided on pages 38-39.
EMPLOYEES
The ability to recruit, develop and retain appropriate skills for the Group. Strikes or other industrial relations disputes may occur. Impact: Failure to retain or In the key countries where the Group operates, the majority of employees are members of trade unions. Negotiations over wage levels or working conditions can sometimes fail to result in agreement. Mitigation: Anglo American aims to be the employer of choice in the mining sector. A comprehensive human resources strategy has been devised to support that objective. The Group seeks constructive relationships and dialogue with trade unions and employees in all its businesses. Decrease in risk Commentary: During 2014 we completed the review of our Organisational Model, corporate structure and a number of business units. Implementation of the changes and restructuring programmes identified has progressed. Further details are provided on page 38.
recruit skilled employees may lead to increased costs, and interruptions to existing operations and new projects. Industrial disputes adversely affect production, costs
and the results of operations. Root cause: We are subject to global competition for skilled labour. Our assets and projects are often in remote places or in countries
where it is a challenge to recruit suitably skilled employees.
RELATED PARTY TRANSACTIONS
The Group has a related party relationship with its subsidiaries, joint
operations, associates and joint ventures (see note 37). Members of the Board
and the Group Management Committee are considered to be related parties.
The Company and its subsidiaries, in the ordinary course of business, enter
into various sales, purchase and service transactions with joint operations,
associates, joint ventures and others in which the Group has a material
interest. These transactions are under terms that are no less favourable to
the Group than those arranged with third parties. These transactions are not
considered to be significant, other than purchases by De Beers from its joint
operations in excess of its attributable share of their production, which
amounted to $3,493 million (2013: $3,064 million).
Loans receivable(1)
US$ million 2014 2013
Associates 98 164
Joint ventures 329 265
427 429
(1) These loans are included in 'Financial asset investments'.
At 31 December 2014 the directors of the Company and their immediate relatives
controlled 0.1% (2013: 0.1%) of the voting shares of the Company.
Remuneration and benefits received by directors are disclosed in the
Remuneration report. Remuneration and benefits of key management personnel,
including directors, are disclosed in note 26.
Information relating to pension fund arrangements is disclosed in note 27.
Refinancing of Atlatsa
In January 2014, Platinum completed the second and final phase of the
refinancing transaction for Atlatsa Resources Corporation (Atlatsa). Platinum
sold its existing 27.0% indirect equity interest in Atlatsa to the controlling
Black Economic Empowerment (BEE) shareholders and subscribed for equity shares
in Atlatsa representing a 22.8% direct interest. In return the level of debt
outstanding from Atlatsa was reduced. These transactions resulted in an
increase in 'Investments in associates' of $69 million, a net decrease in
'Financial asset investments' of $47 million and a net gain of $22 million
recorded within 'Non-operating special items'.
The first phase of the refinancing transaction completed in December 2013.
Platinum acquired certain properties from Bokoni Platinum Holdings Proprietary
Limited, which is an associate of the Group and is controlled by Atlatsa. In
return the level of debt outstanding from Atlatsa was reduced. A charge of $37
million was recorded within 'Non-operating special items' for the year ended
31 December 2013 in relation to this transaction.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each
financial year. The directors are required to prepare the Group financial
statements in accordance with International Financial Reporting Standards
(IFRS), as adopted by the European Union and Article 4 of the IAS regulation,
and have elected to prepare the parent company financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). The directors must not
approve the accounts unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or loss of the
Company for that period. In preparing the parent company financial statements,
the directors are required to:
- select suitable accounting policies and then apply them consistently
- make judgements and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
In preparing the Group financial statements, IAS 1 requires that directors:
- properly select and apply accounting policies
- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information
- provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance
- make an assessment of the Company's ability to continue as a going concern.
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