BHP Billiton: Investors to Vote on Demerger Plan in May 2015
Australia-based BHP Billiton is expected to hold a vote for investors in May of next year to share their say on the company’s future demerger plan.
The general meeting, which is expected to be held next year in May, will allow shareholders the opportunity to voice their opinions and thoughts on BHP’s plan to split the company into ‘core’ and ‘non-core’ assets. The split will provide BHP to retain its ‘four pillars’ of iron ore, coal, petroleum and copper, with potash as a possible fifth pillar.
According to chief executive Andrew Mackenzie, additional commodities such as silver and Illawarra Coal will spin off into the new company.
"The new company will be the world's largest producer of manganese ore, will own the world's largest producing silver mine and be a substantial producer of alumina, aluminium, nickel and coal.”
Despite slumping iron ore prices, BHP confirmed its iron ore division was still one of its most profitable businesses. The company recently came under fire from West Australian Premier Colin Barnett, who questioned their expansion strategies and accused BHP of “seemingly acting in concert” to keep iron ore prices at extremely low levels.
According to Business Review Australia, BHP plans to reshuffle management within the organization, changing roles of many of its highest-ranking executives.
“Mike Henry, former head of marketing, was announced as the president of the company’s coal assets; he takes over for Dean Valla Valle, who practically swapped roles with Henry to become marketing, health, safety and environment boss. Daniel Malchuk, former aluminium boss, is the new president of copper. Peter Beaven, previous copper president is on track to become the CFO, with former CFO Graham Kerr moving to run the demerged entity next year.”
BHP also announced plans to cut costs and accelerate a reduction in investment spending to its core assets. The company’s capital spending will be cut by $1 billion in the 2016 financial year, freeing up more cash for shareholder returns.
AngloGold Ashanti establishes BG Umoja JV in Tanzania
AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.
Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited.
The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.
“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa.
“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”
AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.
Scope 3 Emissions
In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.
To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.
Diversity & Inclusion
The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.
AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.
Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.
Geita Gold Mine
Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.