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                         Anglo American                       Student Worksheet

Worksheet activities

This worksheet provides you with a range of activities to carry out to help you to better
understand simple economic concepts. There are spaces provided on the sheet for you to input
your answers:

1. Scarcity is a fundamental problem facing all societies and most individuals at least some of the
time. We can’t always have all of what we want.

Because of scarcity of resources we are frequently asked to make choices.

For each of the following examples involving scarcity, explain a choice that might have to be
made by the individual, organisation or society concerned.

What it is that is scarce           The choice that has to be made. In each case we identify
                                    whether the decision has to be made by 1) an individual, 2)
                                    a business organisation, and 3) society at large.
Water in the desert                 An individual travelling across the desert would have to decide
                                    when to consumer their scarce water supplies.
Coal reserves under the ground      A mining company like Anglo American. Describe a choice it
                                    would have to make.

An individual’s income              Example of individual choice:

Resources available for             Example of society’s choice
healthcare in a country

The number of employees             The mining company’s choice
currently employed in a mining

Resources provided by the           Society’s choice
government for spending on

The amount of time an               Individual’s choice
individual has available for
study and leisure activities

Machinery and equipment             Business choice
currently available to a business

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Different types of wood that can   Individual choice
be used for making furniture
such as mahogany from rain
forests and oak and pine from
forests in this country

2. Look at the following list of resources. See if you can identify which of them could be
classified as:

                                   Renewable                        Non-Renewable
i. oil and gas supplies

ii. hardwood timber plantations

iii. pine forests

iv. coal reserves

v. fish stocks

vi .milk supplies from cows

vii. diamonds

viii. water supplies

ix. agricultural crops

x. platinum, gold and silver

3. Explain how renewable resources can be renewed.

4. Explain why it is important to use both renewable and non-renewable resources .Try to use the
words sustainable or sustainable development in your answer.

5. Resources that are mined from the ground cannot be put back into the ground because they are
used up in the production of goods. What then should mining companies do to make sure that
they respect the environment and make a contribution to the sustainability of communities where
mines are located?

6. Here is a list of the main types of money incomes that are paid to the owners of the four types
of factor of production. See is you can match the reward (money income) with the factor of
production in the table below:

The main types of reward are: wages, rent, profit (dividends) and interest payments.

Factor of production                               Income reward for supplying factor services

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7. Primary industry as we have seen involves extracting raw materials and other gifts of nature.
These raw materials are then often processed to manufacture final goods. Processing raw
materials is referred to as manufacturing or secondary industry.

Here is a list of some of the product based divisions owned by Anglo American. In some cases
Anglo American is simply concerned with extracting primary materials which it sells on to
secondary producers. In other cases Anglo American is involved at the secondary or
manufacturing stage.

In each case state whether the division would be involved with primary or secondary industry:

Product based division                             Primary or secondary?

Anglo Coal

Anglo Paper and Packaging (Mondi)

45% ownership of De Beers, the world’s
largest producer of rough diamonds

AngloGoldAshanti (51% owned)

Anglo Industrial Materials (e.g. asphalt and
construction products)- in the UK - Tarmac

8. Mining is classified as a primary industry because it is concerned with extracting gifts of

In each of the following cases explain whether the industry listed is a primary industry or not:

Industry                       Explanation of whether it is a primary industry or not.

Car manufacture

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Oil drilling

Providing insurance


9. An important distinction is made between consumer and capital goods. Capital goods are ones
that are involved in further production. Classify the following according to whether they are
consumer or capital goods:

Example                                                           Consumer or capital goods
A sports magazine read by a manager working for Anglo

A drill bit used in mining.

A sandwich eaten by a miner.

Miners helmets with attached lighting gear.

A miner’s smart suit.

A recycling plant operated by Anglo American.

A bus used to transport Anglo American employees to work.

A school built by Anglo American for its employees.

Digging equipment used by Anglo American for quarrying

Diamond rings, gold bangles, and other items of finished

10. Businesses like Anglo American are involved in the construction and preservation of a
number of types of capital – for example the:

•   creation of man-made capital e.g. the materials to build new roads
•   conservation of natural capital e.g. the recycling of waste products and environmental
•   development of human and social capital e.g. training employees and building schools and
    welfare services

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• gaining of financial capital .e.g. increasing the amount of cash available to a business.
Put a tick in the appropriate boxes according to whether you think that the activity listed for
Anglo American is primarily concerned with the development of man-made, natural, or social
and human capital.

Activity               Man-made           Natural capital     Human &            Financial capital
                       capital                                Social capital
worthwhile jobs
Developing a new
Recycling waste
products from
mining operations
Cleaning water
supplies in lakes
and rivers close to
mining operations
Restoring worked
out mines and
quarries to
alternative uses
Building schools
and hospitals for
miners families
Improving mine
Investing in more
efficient mining
Increasing profits

Maintaining plant
etc to increase life

11. Increasingly minerals are being produced in poorer countries because these resources have
been largely used up in more developed countries. Explain how mining companies like Anglo
American can contribute to the prosperity of poorer countries through their activities in these

12. Study the Good Citizenship section of Anglo American’s Case Study at Explain how Anglo American is seeking to operate as a good
citizen in the communities in which it operates.

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13. Anglo American’s Chief Executive is interested in ‘all the things that make the difference
between a company that will be here for years – or one that will sustain over centuries.’ In your
view explain what will enable a mining company to provide wealth for centuries. Explain your
answer in terms of the following headings:

1.    Providing a good return for shareholders.
2.    Respecting natural capital.
3.    Building human and social capital.
4.    Building partnerships in the community.

14. Study the Long Term Commitment Section 05 of The Times 100 Case Study at Give one example of how Anglo American is investing in
human capital.

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