Principles of corporate governance and structure

Principles of corporate governance and structure
Corporate governance encompasses the concept of sound business practice, which is inextricably linked to the Groupís management systems, structures, policies and culture of governance, and ensures that the Group acts towards all stakeholders in a responsible and transparent manner from an economic, social and environmental perspective.
 

We have aligned ourSD-related policies and management systems to comply fully with those of Anglo American and report internally on our performance at prescribed periods

The Board reaffirms its commitment to sound governance. It ensures that the Groupís business is conducted in accordance with high standards of corporate governance, using risk management and control in accordance with local and internationally accepted corporate practice. These standards are well embedded in the Groupís system of internal controls, which have been implemented to comply with King III recommendations and the governance requirements of the 2008 Companies Act which became effective from 1 May 2011.

A detailed overview of Anglo American Platinum Limitedís governance structures and processes are provided in the Integrated Annual Report. This report is available at www.angloplatinum.com.

OUR RELATIONSHIP WITH ANGLO AMERICAN plc

Anglo American holds 79.83% of Anglo American Platinum Limitedís shares. As the Companyís majority shareholder, it sets the business policy and performance standards to which Anglo American Platinum Limited adheres. These were developed by Anglo American to enable it to meet its many SD obligations. We have aligned our SD-related policies and management systems to comply fully with those of Anglo American and report internally on our performance at prescribed periods.

Anglo Americanís investment decisions, their approach to planning and implementing projects, and the way in which they manage their operations and the closure of their mines, are governed by a comprehensive set of mandatory performance requirements that form part of Anglo Americanís Way documents: the Safety Way, the Social Way, the People Development Way, the Occupational Health Way, the Environment Way and the Projects Way. Each of these documents outline the vision, principles, policies, frameworks and management system requirements for the respective area of focus.

Anglo American requires all service providers acting on their behalf to adopt and follow these Group standards and policies. They also promote the adoption of comparable standards in joint ventures or associate companies.

Implementation of the Anglo American policies is confirmed from time to time via peer-reviews and internal and external audits. The diagram to follow is an illustration of the hierarchy of Anglo American policies and documents; and of the ways in which these obligations correlate with Anglo American Platinum Limitedís policies, procedures and guidelines.

GOVERNANCE AND OUR JOINT-VENTURE PARTNERS

In 2011, a strategic review of the Companyís joint-venture portfolio was undertaken. A decision was made to move from being a passive investor to an active one. This will ensure more direct involvement with joint ventures to ensure Anglo American Platinum Limited's policies and standards are complied with.

Non-managed joint ventures and associates are governed by monthly steering and management committee meetings and quarterly joint-venture Executive Committee meetings at which Anglo American Platinum Limited has representation. The agreements make provision for the management committees to constitute subcommittees to monitor areas such as employment equity, resource management, planning, production, safety, health, environment, audit, social development, community engagement and remuneration. The joint-venture governance structures are provided in the joint-venture committees section.