Antam made significant progress in 2003 in further establishing the structure necessary to ensure that Antam is well governed. The next, and arguably the more challenging task, is to ensure consistent implementation and a dynamic strategy open to new governance methods and measurements. The most important pitfall to avoid is falling into a bureaucratic mentality, which is more concerned with form over function. Good corporate governance is as much an "art" as a science and Antam is cognizant that despite all the corporate governance rules and practices a company may have in place, or that are thrust upon it by market regulators, they can not guarantee a company is well governed.

A company’s Board of Directors and Board of Commissioners must make good governance a strategy, an integral part of achieving corporate objectives. For Antam good corporate governance is as much about doing the ‘right’ thing and meeting international standards as it is about sustaining long term profitability. If a mine does not have good community relations and environmental management it risks operational disruptions, higher costs and difficulties in maintaining permits. Without a methodical and transparent approach to decision-making shareholders and investors cannot be sure the best interests of the company are the top priority and cannot sufficiently scrutinize the company and compare performance to its peers. All of this impacts the capital market’s perception of the company as an investment and immobilizes and complicates the company’s efforts to attract cost-effective capital. Without certainty about operational performance and cost-effective funds a company cannot grow sustainably and increase returns on investment

Review of Corporate Governance Work in 2003
The most significant three steps Antam took in 2003 regarding improving its corporate governance was, working together with Ernst & Young, to complete the Corporate Policy Manual (CPM), complete the Code of Ethics and establish four new board committees, including the Nomination, Remuneration and Human Resources Committee, the Mine Closure Committee, the Good Corporate Governance Committee, and the Risk Management Committee. The new committees were formally established September 1, 2003 and all report to the Board of Commissioners. The Audit Committee, which also reports to the Board of Commissioners, was established in 2000; it’s membership was changed in 2003. The members of the committees are chosen for their expertise, knowledge and independence.

The CPM, is a 175 page document which took two years to complete, from audit, to review, to compose and then formally approve, which was done at a ceremony at Antam’s offices in December 2003. The purpose of the CPM is to guide Antam’s directors and employees along a path of good governance. Governance is first and foremost concerned with the Boards, however, as it is crucial everyone at Antam clearly understand the importance of good governance and how Antam will achieve and maintain it, Antam worked hard to socialize the contents of the CPM at all levels of the company. The CPM is to be reviewed annually to ensure relevance.

After some initial concern that the committees would simply duplicate work that was already performed by the Board of Commissioners, Antam decided it was best to formalize key governance tasks with a structure which would institutionalize these important responsibilities to ensure consistency and that the best methods are used. The Board committees will be discussed in greater detail below.

Throughout the year, Antam was often asked to speak at good corporate governance seminars and conferences and met with several visitors who were interested in Antam’s governance efforts.