Economic impacts

Economic impacts

Economic capital

R8.5bn R12.2bn 44%
HDSA procurement spend in 2009 total value distributed in 2009 value add on salaries, wages and other benefits

'Economic capital' reflects the productive power and value of the other four types of capital and covers those assets of an organisation that exist in a form of currency that can be owned or traded, including, but not limited to, shares, bonds and banknotes.

PAYMENTS TO GOVERNMENT

The impact of our operations is a complex mix of environmental, social and economic factors, the relationships we have with governments and the payments made to those governments by way of taxes. The taxes we pay as a company, as well as those we collect from employees on behalf of government, and those of suppliers that are dependent on our presence, are important contributions to the creation of wealth and well-being. Social benefits arise where these enhanced revenues are used to provide better social infrastructure and public services.

Over ZAR163 million in taxes was paid directly to the South African Government because of our operations in 2009. This included company taxes, royalties, transaction and other taxes. In addition, we indirectly contributed ZAR1,660 million in employee taxes, which we collected on behalf of governments and paid over to them. We believe that this wider tax footprint is a valid reflection of the tax contribution that results from our activities.

No financial assistance is received from government.

INDIRECT AND OTHER ECONOMIC BENEFITS

Procurement

In 2009 the Group's discretionary procurement spend was broken down as follows: 

• Capital R8.4 billion
• Services R9.6 billion
• Consumables R5.3 billion
• Other R0.8 billion

Value added statement for the year ended 31 December

  2009
Rm		 %   2008
Rm		 % 2007
Rm		 %
Value added              
Net sales revenue 36,687     50,765   46,616  
Less: Purchase of goods and services needed to operate the mines and produce refined metal including market development and promotional expenditure 18,887)     (19,562)   (16,837)  
  Other net (expenditure)/income 1,859     2,090   (113)  
Value added by operations 19,659 99   33,293 97 29,666 97
Income from investments and interest received 139 1   438 3 850 3
  19,798 100   33,731 100 30,516 100
Value distributed              
Salaries, wages and other benefits net of PAYE and SITE 8,712 26   8,841 24 7,471 21
Salaries, wages and other benefits 10,373     10,018   8,311  
PAYE and SITE (1,660)   (1,177) (840)
Government 1,507 17   5,648 25 7,495 22
South African taxation (342)   4,254 6,367
Foreign and withholding taxation 189   217 288
South African indirect taxes 1,660   1,177 840
Providers of capital 1,999 45   15,207 53 16,307 20
Interest paid 1,993   1,391 402
Dividends 6   13,816 15,905
Total value distributed 12,219     29,696   31,273  
Reinvested in the Group 7,580 12   4,035 (2) (756) 37
Amortisation and depreciation 4,214   3,390 2,844
Accumulated profits 3,366   645 (3,601)
  19,798 100   33,731 100 30,516 100

DIRECT VALUE ADDED TO SOUTH AFRICA

Total turnover in 2009 was R39,947 million, distributed as follows:

Employees
Total payroll and benefits paid in South Africa, R millions 2009 2008 2007
Gauteng 836 707 663
Limpopo 4,716 4,587 3,784
North West 4,819 4,723 3,863
Mpumalanga 2 2 —
Total 10,373 10,018 8,311
Wages1 8,685 8,994 7,414
Pension 767 697 585
Other benefits 151 134 101
Share-based payments 487 188 200
Redundancy payments 282 5 10
Total 10,373 10,018 8,311
Public sector      
Taxes paid of all types in South Africa, R millions      
South African normal taxation 91 1,384 4,976
Secondary tax on companies 16 191 1,645
Royalties 56 76 197
Total 163 1,651 6,818
Apart from reimbursement of its payment to the skills development levy, the Company received tax relief or other types of benefits that did not represent a transaction of goods and services.      
Donations in South Africa, R millions      
Community group      
Cash 125 80 52
In-kind — — —
Civil society groups      
Cash 44 10 26
In-kind — — —
Other groups      
Cash 76 51 48
In-kind — — —
Total 245 141 126
Non-core infrastructure development2, R millions 105 21 35
1. Anglo American Platinum Limited (Amplats) is an equal-opportunity employer and to this end remunerates its employees competitively irrespective of race and gender.
2. This is infrastructure built outside main business activities, such as schools, hospitals and roads.
Private Sector      
Suppliers 2009 2008 2007
Cost of goods, materials and services purchased, R millions      
Total 28,318 24,549 23,100
Of which, sourced from South Africa 27,132 23,933 22,520
Note: 100% of contracts was paid in accordance with agreed terms
Customers      
Amplats is primarily a platinum producer operating in South Africa. All other metals produced are by-products of the platinum process. The following analyses of the Company’s revenue are based on the end-use of metals sold, rather than on the location of primary customers. 
Gross sales revenue analysis, R millions 2009 2008 2007
Platinum 25,528 28,636 23,412
Palladium 2,954 4,258 3,858
Rhodium 4,345 13,091 11,325
Nickel 2,269 2,615 4,716
Other 1,851 2,518 3,650
Total 36,947 51,118 46,961
North America 2,692 3,588 3,333
Asia 10,470 23,207 16,940
Europe 18,025 14,211 14,429
Africa 5,645 10,031 12,207
Other 115 81 52
Total 36,947 51,118 46,961
The following data represent the Company’s output as a proportion of demand. This is defined by Johnson Matthey as ‘sales of new metal’. 
Market share of global demand, % 2009 2008 2007
Platinum 40 37 37
Palladium 19 19 16
Rhodium 49 39 41
Providers of capital      
Distributions to providers of capital, R millions      
Interest on short-term debt 2,065 1,391 402
Dividends 6 13,816 15,904
Total 2,071 15,207 16,307
Increase/(decrease) in accumulated profit 3,366 645 (3,601)