Slide 1: Metallurgical Coal
METALLURGICAL COAL Tyler Mitchelson, CEO Bulks Seminar & Site Visit: Brisbane, 12 November 2019 Grosvenor longwall
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc (“Anglo American”) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following con
Slide 3: Our High Quality Assets
OUR HIGH QUALITY ASSETS 1 Moranbah-Grosvenor (88%/100%) Abbott Point Coal Terminal Underground longwall, high quality HCC 1 Dalrymple Bay Coal Terminal 2 2 Capcoal (70%) 4 3 RG Tanna Coal Terminal Grasstree underground longwall, high quality HCC Open cut operations, HCC, PCI & thermal Brisbane 3 Daw
Slide 4: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities TRCFR2 Fatalities 12.19 10.36 PLANNING & LEADERSHIP CARING CULTURE 9.17 9.04 SCHEDULING 8.70 8.26 6.75 2 RISK & CHANGE MONITORING & LEARNING MANAGEMENT ASSURANCE ORGANISATION 1 1 0 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 Focus ar
Slide 5: Relentless Focus Drives Growth
RELENTLESS FOCUS DRIVES GROWTH Transformed portfolio Operational excellence Value adding growth Product & asset quality Industry leader ~30% growth potential 55
Slide 6: A Transformed Business
A TRANSFORMED BUSINESS Capcoal
Slide 7: Portfolio Shift Towards Quality
PORTFOLIO SHIFT TOWARDS QUALITY Increasing contribution from high margin products Lowest 6% 7% margin 14% 12% Grosvenor ramp-up 43% 19% Moranbah performance improvement 79% 81% 38% Highest Divestment of Callide, Foxleigh, Drayton margin 2012 2019F Long-term potential Thermal PCI HCC Anglo American s
Slide 8: Value Adding Quality Growth
VALUE ADDING QUALITY GROWTH Quality production targeted to double in 10 years Met Coal production (Mt)3 Operating Model & ‘Longwall 100’ +108% Closed & 3 divested 30 26-28 P101 22-24 14 Moranbah-Grosvenor debottlenecking 2012 2019F 2022F Long-term potential 88
Slide 9: Maximising Potential of Benchmark Producer
MAXIMISING POTENTIAL OF BENCHMARK PRODUCER Moranbah ROM (Mt) Moranbah Grosvenor ROM4 (Mt) Post debottlenecking +57% H2 2019 rate 19.2Mt post upgrade +68% 24 14 22 12 16 9 5 5 2012 2019F 2023F US Benchmark 2012 2019F 2023F Long-term potential 99
Slide 10: P101 Focused on Key Cost Drivers
P101 FOCUSED ON KEY COST DRIVERS Underground longwall mining Open pit mining Underground development Drill & blast Cost capitalised Longwall Truck, shovel & dragline Washplant Washplant Distribution Distribution ~5% unit cost 10 10
Slide 11: Disciplined Cost Management
DISCIPLINED COST MANAGEMENT Ongoing cost discipline Driving improved competitive position FOB (excl. royalty) unit cost1 ($/t) Portfolio average improved by 20pp on margin adjusted cost curve Productivity (ROM tonnes/head) 11,600 2013 2019 43% 23% 7,200 90 62 65 57 2012 2019F 2020F Long-term potenti
Slide 12: Efficient Cash Conversion and Balanced Capital Allocation
EFFICIENT CASH CONVERSION AND BALANCED CAPITAL ALLOCATION 2012 2019F $0.6bn Cash generated (post-tax) $1.2bn Cash generated (post-tax) $0.8bn Sustaining capital $0.7bn Sustaining capital $0.3bn Growth capital $0.1bn Growth capital 9% ROCE ~45% ROCE 22% Mining EBITDA margin ~55% Mining EBITDA margin
Slide 13: Sustainable Improvement
SUSTAINABLE IMPROVEMENT Grosvenor Mine Control Moranbah North
Slide 14: Operating Model Drives Sustainable Improvement
OPERATING MODEL DRIVES SUSTAINABLE IMPROVEMENT Stable and predictable Foundation for improved Reduce variability processes performance Copy of Generic Control Chart (3) Control Limits - Set 3: UCL = 4,595, Mean = 4,303, LCL = 4,010 (06/06/2014 - 07/07/2014) (mR = 2) UCL = 4707 UCL = 4588 UCL = 4595
Slide 15: Driving Sustainable Improvement
DRIVING SUSTAINABLE IMPROVEMENT Operating Model: A foundation for improvement Operational planning Work management Feedback & data analysis 2012 2017 2018 Target Automation of longwalls drives improvement 2018 20195 ROM 9 Reduced variability 8 2017 2015 2016 7 2013 Greater control 2014 6 2012 0 0 10
Slide 16: On the Step-Change Journey: More to Come
ON THE STEP-CHANGE JOURNEY: MORE TO COME P101 Longwall face extension Remote operation of longwalls Exceeding industry best-in-class process & equipment Shovel and dragline dig performance Gas and strata management geometries Exploration Longwall mine of the future FutureSmart MiningTM Opencut autom
Slide 17: Technology Initiatives Key Lever Towards Step-Change Growth
TECHNOLOGY INITIATIVES KEY LEVER TOWARDS STEP- CHANGE GROWTH Remote longwall operations LIDAR 3D scanning Underground tablets & tech Advanced machine learning and Improved mapping, real time Underground wireless connectivity steering technology monitoring and dilution Real time communication and acc
Slide 18: Sustainability at the Heart of the Business
SUSTAINABILITY AT THE HEART OF THE BUSINESS 20% reduction in Reduce net GHG ~$160m mine Best practice social water abstraction emissions by 30% rehabilitation plan performance by 2020 by 2030 Our Sustainability approach is integral to FutureSmart Mining™ 18 18
Slide 19: Disciplined Growth Potential
DISCIPLINED GROWTH POTENTIAL Moranbah Grosvenor CHPP Moranbah North
Slide 20: Aquila: Quality Grasstree Lifex
AQUILA: QUALITY GRASSTREE LIFEX Saleable (Mtpa) Mine construction Post-commissioning Saleable production IRR 3.5Mtpa >30% 4 Mine life Margin 3 2 6 years >40% 1 0 2019 2021 2023 2025 2027 Capex Grasstree Aquila Lifex $226m Approved July 2019 Grasstree lifex, high quality metallurgical coal (Anglo Ame
Slide 21: Unlocking Potential of Moranbah-Grosvenor
UNLOCKING POTENTIAL OF MORANBAH-GROSVENOR Saleable (Mtpa) Grosvenor De- MG ramp-up bottlenecking expansion Saleable production IRR 18 16 4-6Mtpa >30% 14 12 10 Payback Margin ~3-4 years >50% 8 6 4 2 Capex 0 2012 2014 2016 2018 2020 2022 2024 $0.3-0.4bn Plant upgrade, stockpile extension & load out ex
Slide 22: Moranbah Hub: Multiple Opportunities of Scale
MORANBAH HUB: MULTIPLE OPPORTUNITIES OF SCALE Moranbah South Reinforces Q1 cost position 2.3bt HCC deposit adjacent to Moranbah Grosvenor 240 50% Anglo American share Moranbah North 200 Moranbah South Concept study incorporating Grosvenor learnings 160 Grosvenor Environmental approvals in place 120
Slide 23: PRC Basin Comparable to Bowen Basin
PRC BASIN COMPARABLE TO BOWEN BASIN Peace River Basin - Canada Existing large footprint in PRC Basin Currently on care & maintenance Logistics infrastructure in place Similar in scale to Bowen Basin Studies underway Anglo American tenure 23 23
Slide 24: Quality Business with Potential for Growth
QUALITY BUSINESS WITH POTENTIAL FOR GROWTH Assets Capabilities Returns High quality product Operating Model Low cost producer Growth potential FutureSmart MiningTM Capital discipline Attractive jurisdictions Integrated marketing Sustainable cash generation 24 24
Slide 25: Footnotes
FOOTNOTES 1. Unit costs exclude royalties, depreciation, study costs and include direct support only. 2. Total Recordable Cases Frequency Rate per million hours. Please note that in 2017 there was a redefinition of TRFCR, which resulted in a significant increase through 2017, 2018 and 2019. 3. Anglo
Slide 26: Moranbah Grosvenor Complex
MORANBAH GROSVENOR COMPLEX The metallurgical coal journey Coal Handling and Coal Face Conveyor ROM stockpile Preparation Plant 4,300 tonnes per hour Reject Stockpiles 110,000 tonnes per train Conveyor ‘Moranbah North ROM Stockpile Product stockpile Train Load Out Rail Port Ship Coal Handling and Pre
Slide 27: MG Phase 1 – Debottleneck Existing Plant
MG PHASE 1 – DEBOTTLENECK EXISTING PLANT ▪ Now 17.5Mtpa with Maximum Sustainable Production Rate ~ 2250tph (up from existing design of Grosvenor upgrade of 2000tph) – includes Somerset De-slimed Tertiary Flotation circuit ▪ MG Phase 2 project has been generated to close the capacity gap 9 9
Slide 28: Moranbah Grosvenor Expansion Phase
AngloAmerican MORANBAH GROSVENOR EXPANSION PHASE 2 Second nit loading fa : 30-40% MM fi Existing plant Capacity increase 14 xisting plan’ y {module one and two) Extensions to_ > product stockpile bine 2022 24MtROM Project completion Production capacity US $300 - 400m Capex 18-20Mt 3,450tph New produ
Slide 29: Metallurgical Coal Open Cut Equipment Performance
METALLURGICAL COAL OPEN CUT EQUIPMENT PERFORMANCE SHOVEL PERFORMANCE CAPCOAL'S CONTINUOUS DRAGLINE PERFORMANCE IMPROVEMENT IMPROVEMENT JOURNEY IMPROVEMENT 2 vt Visible eadership [EP ors tnnme niente vet ki a z z 8 8 3 3 oO o
Slide 30: P101 Shovel Delivery
AngloAmerican P101 SHOVEL DELIVERY ANGLO AMERICAN’S APPROACH TOP 10 LARGE ROPE SHOVEL PERFORMANCE 2019 102% 999%, 90% 76% EB 67% 67% bL% 61% 61% 60% DAWSON SISHEN SISHEN DAWSON WHAT WE HAVE ACHIEVED 31% Production increase across Anglo American large rope shovel fleet since 2017 AREAS OF FOCUS
Slide 31: Moranbah North
MORANBAH NORTH Paul Stephan, General Manager Bulks Seminar & Site Visit: 13 November 2019 Moranbah North surface infrastructure
Slide 32: Moranbah North in Numbers
MORANBAH NORTH IN NUMBERS 431 1 136km Roadways Employees Longwall system 501 4 335m Mining depth Contractors Continuous miners 10 yrs1 Life of Mine, + 10 yr extension potential2 51 64MW Mobile equipment Gas power generated 2019 key performance indicators 8.93 ~7.7Mt ~6.1Mt Saleable production3 ~10.8
Slide 33: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities TRCFR4 Fatalities 22.69 LEADERSHIP CARING CULTURE PLANNING & SCHEDULING 12.88 12.04 9.94 10.50 9.52 8.93 RISK & CHANGE MONITORING & LEARNING 1 MANAGEMENT ASSURANCE ORGANISATION 0 0 0 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 Focus
Slide 34: Moranbah North Site
MORANBAH NORTH SITE Train load out Product stockpiles Coal Handling and Preparation Plant Coarse reject conveyor 44
Slide 35: Integrated Value Chain
INTEGRATED VALUE CHAIN Mining Processing Export Development Longwall Washing Rail Port Costs capitalised ~5% of cost base ~21km Development ~7.7Mt ROM production3 ~6.1Mt Saleable production3 ~6.1Mt Export sales3 55
Slide 36: Moranbah North Mine Plan
MORANBAH NORTH MINE PLAN 600 Series Panels Development activity Development activity Already mined Shaded Panels resource has been extracted Current mining activity 100 Series Panels Currently mining ‘600 series’ panels 600 series mining continues after 2024 66
Slide 37: Underground Mining
UNDERGROUND MINING Development Longwall Installing roof support Longwall shearer cutting hard coking coal Preparation for longwall to commence mining Longwall shearer cuts coal using bi-directional method. Each development pillar ~120m in length and 60m width. ~45 pillars Width of the longwall panel
Slide 38: Coal Handling and Preparation
COAL HANDLING AND PREPARATION Coal Handling and Preparation Plant Stockpiles Washes coal from both Moranbah North and Grosvenor operations to Grosvenor ROM stockpile capacity of 840kt on-site and 160kt at CHPP remove non-coal particles, ensuring quality for customers Moranbah North ROM stockpile cap
Slide 39: Operating Model
OPERATING MODEL Fully integrated master schedule of activities, All work is planned, resourced and scheduled, initiatives and work with risks assessed, therefore safer Operating Model drives Clarity of priorities, targets set using data- Improved data analytics and effective and significant producti
Slide 40: FutureSmart Mining & P101
FUTURESMART MININGTM & P101 Variable Speed Drive technology Underground tablet devices First Australian longwall to implement Variable Speed Drive (VSD) Introduced at Moranbah North Mine in early 2019. Devices capture and technology share real time safety, production and environmental monitoring dat
Slide 41: Ramping Up to Benchmark Performance
RAMPING UP TO BENCHMARK PERFORMANCE Moranbah North cutting rate (tonnes/hr) 2019 demonstrated 10 13 31 85 269 2,550 2020-21 2022+ 2,142 2018 Actual 1m web from 85cm 350m face Increased shearer Shearer drum auto-lower Gate end automation Long-term potential throat (Eickhoff) Moranbah North longwall
Slide 42: Further Improvement to Come
FURTHER IMPROVEMENT TO COME Real time respirable dust monitoring Increased use of automation PDM 3700 device provides additional functionality and accuracy, allowing Remote operation of longwall from surface will drive improvements in workers to make decisions based on real time data safety, product
Slide 43: Sustainable Mining Plan
SUSTAINABLE MINING PLAN EDL Grosvenor power station Continuous rehabilitation Waste gas Social performance Grosvenor rehabilitation 297 hectares of rehabilitation this year Waste coal mine gas infrastructure including one Best practice Anglo American social performance power station (with our part
Slide 44: What You Will See
WHAT YOU WILL SEE Longwall underground operations Coal Handling and Preparation Plant Travel down personnel and equipment drift, which is ~900m in length at a Overview of components that feed into CHPP, stockpiles and train loadout grade of 1:8 Travel ~7.6km to view longwall cutting, conveyor and ot
Slide 45: Footnotes
FOOTNOTES 1. Please refer to the AA plc Ore Reserves and Mineral Resources Report 2018 for the tonnes, grades and a breakdown of the classification categories. 2. Potential reserve life extension with Teviot Brook. 3. Attributable share (Grosvenor: 100%; Moranbah North: 88%). 4. Total Recordable Cas
Slide 46: Grosvenor
GROSVENOR Trent Griffiths, General Manager Bulks Seminar & Site Visit: 13 November 2019 Grosvenor surface infrastructure
Slide 47: Grosvenor in Numbers
GROSVENOR IN NUMBERS 173 1 39km Roadways Employees Longwall system 597 4 220m Mining depth Contractors Continuous miners 29 yrs Life of Mine1 37 36MW Support vehicles Gas power generated 2019 key performance indicators 9.76 ~7.6Mt ~4.7Mt Saleable production2 ~$61/t FOB unit cost TRCFR YTD ROM produc
Slide 48: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities TRCFR3 Fatalities 18.82 15.54 LEADERSHIP CARING CULTURE PLANNING & 13.49 SCHEDULING 9.76 8.26 8.69 5.81 RISK & CHANGE MONITORING & LEARNING MANAGEMENT ASSURANCE ORGANISATION 0 0 0 0 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 Focus a
Slide 49: Grosvenor Project
GROSVENOR PROJECT Tunnel Boring Machine used in construction Delivered $100m under budget and 7 months ahead of schedule $1.6bn Capex 54 months Build time Production in line with investment case 44
Slide 50: Grosvenor Site
GROSVENOR SITE Coal conveyor to surface Admin block Men and Materials Drift Maintenance (Mine entrance) Mine vehicle go line 55
Slide 51: Integrated Value Chain
INTEGRATED VALUE CHAIN Mining Processing Export Development Longwall Washing Rail Port Costs capitalised ~5% of cost base ~16km Development ~7.6Mt ROM production2 ~4.7Mt Saleable production2 ~4.7Mt Export sales2 66
Slide 52: Grosvenor Mine Plan
GROSVENOR MINE PLAN Currently mining ‘100 series’ panels Already mined 200 series mined from 2032 Development activity Development activity Current mining activity 77
Slide 53: Underground Mining
UNDERGROUND MINING Development Longwall Continuous miner Longwall shearer cutting hard coking coal Development roadways are mined 3.7m high by 5.4m wide Longwall panels average ~4km long and are 300m wide Two roadways are mined with cross access roads every 125m so the Coal is cut by the shearer usi
Slide 54: Operating Model
OPERATING MODEL Fully integrated master schedule of activities, All work is planned, resourced and scheduled, initiatives and work with risks assessed, therefore safer Operating Model drives Clarity of priorities, targets set using data- Improved data analytics and effective and significant producti
Slide 55: FutureSmart Mining & P101
FUTURESMART MININGTM & P101 Remote operation Shotcrete rib support Airoduster: Stonedust Application Removing personnel from harm’s way: dust, Remote application of shotcrete to mined Incombustible content applied with no harm heat and equipment interaction roadways to improve strata stability to pe
Slide 56: Ramping Up to Benchmark Performance
RAMPING UP TO BENCHMARK PERFORMANCE Grosvenor longwall cutting rate (tonnes/hr) 50 Automation 100 200 200 2,650 50 65 2,100 1,985 2018 Actual Operational Equipment 2019F Crew Logic Alignment Other process Long-term efficiency efficiency efficiency improvements control improvements potential Grosveno
Slide 57: Further Improvement to Come
FURTHER IMPROVEMENT TO COME Battery-powered UG equipment Proximity detection implementation Advancements in automation Trials to be conducted in 2020 with battery Trials to be conducted in 2020 installing proximity Longwall improvements: increased accuracy via powered underground personnel transport
Slide 58: Sustainable Mining Plan
SUSTAINABLE MINING PLAN EDL Grosvenor power station Continuous rehabilitation Waste gas Social performance Grosvenor rehabilitation Rehabilitation of ~130 hectares per year Waste coal mine gas infrastructure including a Social investment and community consultation power station (with our partner,
Slide 59: What You Will See
WHAT YOU WILL SEE 3D Laser Scanner Technology Room Remote Operating Centre (ROC) 3D scanner setup on the surface allowing State of the art underground coal mining Used to fully operate the longwall from the surface. personnel to see the full scanner functionality in technology room containing fully
Slide 60: Footnotes
FOOTNOTES 1. Please refer to the AA plc Ore Reserves and Mineral Resources Report 2018 for the tonnes, grades and a breakdown of the classification categories. 2. 100% share. 3. Total Recordable Cases Frequency Rate per million hours. 15 15
Slide 61: Capcoal
CAPCOAL Tom Cobcroft, General Manager Bulks Seminar & Site Visit: 14 November 2019 Dragline DL105 at Capcoal Open Cut
Slide 62: Capcoal in Numbers
CAPCOAL IN NUMBERS 464 6 45km Roadways Employees Primary production equipment 525 16 17Mt CHPP Production Capacity Contractors Ancillary equipment 20 yrs Life of Mine1 30 Haul fleet 2019 key performance indicators 3.75 ~3.7Mt ~2.8Mt Saleable production2 ~$75/t FOB unit cost TRCFR YTD ROM production2
Slide 63: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities TRCFR3 Fatalities 10.29 7.63 LEADERSHIP CARING CULTURE PLANNING & SCHEDULING 5.62 5.32 3.92 3.75 2.87 RISK & CHANGE MONITORING & LEARNING MANAGEMENT ASSURANCE ORGANISATION 0 0 0 0 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 Focus are
Slide 64: Capcoal Complex Overview
CAPCOAL COMPLEX OVERVIEW Middlemount CHPP Aquila Capcoal Open Cut main office Grasstree 44
Slide 65: Integrated Value Chain
INTEGRATED VALUE CHAIN Mining Processing Distribution Drill & blast Truck, shovel & dragline Washing Rail Port ~5% cost base ~3.7Mt ~2.8Mt ~2.8Mt ROM production2 Saleable production2 Export sales2 55
Slide 66: Mining Sequence & Equipment
MINING SEQUENCE & EQUIPMENT Pre-strip mining activities – Rope shovel 66
Slide 67: Mining Sequence & Equipment
MINING SEQUENCE & EQUIPMENT Drill and blast Dragline uncovering coal Drilling to lay explosives Longwall shearer cutting hardDragline coking coal Drill holes to a depth of 72m Main dragline (Bucyrus 8750AC) uncovers lower coal seams Explosives laid in overburden Operating weight of 5,613t; bucket ca
Slide 68: Mining Sequence & Equipment
MINING SEQUENCE & EQUIPMENT Uncovering coal with excavators Pit set-up by dozers Continuous miner Dragline Excavator Dozer with dragline and excavator RH340 hydraulic excavators support the shovel in pre-strip operations and Three Caterpillar D11 dozers used for bulk pushing material after blasts in
Slide 69: Coal Handling and Preparation
COAL HANDLING AND PREPARATION Coal Handling and Preparation Plant Rail and Export Capcoal Coal Handling and Preparation Plant processes hard coking Saleable Product is railed to Dalrymple Bay Coal Terminal near coal from Grasstree and Capcoal Open Cut. Mackay and RG Tanna near Gladstone Current prod
Slide 70: Operating Model
OPERATING MODEL Fully integrated master schedule of activities, All work is planned, resourced and scheduled, initiatives and work with risks assessed, therefore safer Operating Model drives Clarity of priorities, targets set using data- Improved data analytics and effective and significant producti
Slide 71: Beyond Benchmark Performance
BEYOND BENCHMARK PERFORMANCE Capcoal Open Cut ROM (Mt)2 0.4 Mine plan optimised with Shovel 0.5 101 pre-strip 0.6 4.6 Lower strip ratio mining in new Oak Park pits and sequencing 3.7 3.1 Third 500t excavator 2018 Actual Shovel 101 2019F Pre-strip 3rd truck & Long-term sequencing shovel fleet potenti
Slide 72: Driving Safety & Productivity Through Technology & P101
DRIVING SAFETY & PRODUCTIVITY THROUGH TECHNOLOGY & P101 Real time bund monitoring Alertness technology Bunds are critical safety control in open pit mining mitigating HME risks. New system using In-cab system being installed to reduce alertness and laser sensors provides cost and time efficient solu
Slide 73: Sustainable Mining Plan
SUSTAINABLE MINING PLAN EDL Grosvenor power station Continuous mine site rehabilitation Reducing raw water consumption Social performance Grosvenor rehabilitation Progressive, industry-leading mine rehabilitation Proposed reverse osmosis water treatment plant Schools-based apprenticeships and trai
Slide 74: What You Will See Today
WHAT YOU WILL SEE TODAY Open pit tour 2018 ‘Golden shovel’ Tour of Capcoal’s open cut operations Capcoal’s 4100 shovel produced at a 42Mt annualised run rate in 2018 - Anglo American’s best performing shovel for the year 14 14
Slide 75: Footnotes
FOOTNOTES 1. Please refer to the AA plc Ore Reserves and Mineral Resources Report 2018 for the tonnes, grades and a breakdown of the classification categories. 2. Anglo American 70% share. 3. Total Recordable Cases Frequency Rate per million hours. 15 15
Slide 76: Aquila
AQUILA Marc Kirsten, General Manager & Tony Willmott, Project Director Bulks Seminar & Site Visit: 14 November 2019
Slide 77: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities 10.91 TRCFR1 YTD 2019 LEADERSHIP CARING CULTURE PLANNING & SCHEDULING Safety focus: Removing people from harm’s way RISK & CHANGE MONITORING & LEARNING Automation technology key to success MANAGEMENT ASSURANCE ORGANISATION Aquila will
Slide 78: Aquila: Quality Grasstree Lifex
AQUILA: QUALITY GRASSTREE LIFEX Saleable (Mtpa) Mine construction Post-commissioning Saleable production IRR 3.5Mtpa >30% 4 Mine life Margin 3 2 6 years >40% 1 0 2019 2021 2023 2025 2027 Capex Grasstree Aquila Lifex $226m Approved July 2019 Grasstree lifex, high quality metallurgical coal (Anglo Ame
Slide 79: Aquila Project Overview
AQUILA PROJECT OVERVIEW First longwall production early 2022 Low capital intensity using existing infrastructure from adjacent Grasstree Mine Staged transition of Grasstree’s skilled and award-winning workforce to Aquila Latest underground innovations and Operating Model in place from outset 44
Slide 80: Mining Equipment
MINING EQUIPMENT Development activity underway Existing underground workings Already mined Continuous miner Dragline Longwall shearer cutting hard coking coal Continuous miner in place with first coal cut Development Completed activity high wall ‘Walk on – walk off’ longwall: No move time mining Ope
Slide 81: Development Activity Underway
DEVELOPMENT ACTIVITY UNDERWAY Continuous miner Current location of continuous miner Continuous miner Dragline Excavator Dozer with dragline and excavator Continuous miner overhauled and underground for development mining First development unit in place (above), with first coal cut late September and
Slide 82: FutureSmart Mining & P101
FUTURESMART MININGTM & P101 Remote operation 3D Lidar scanning All automation advances from other undergrounds Real time strata and longwall management incorporated, including remote operation of longwall Underground technology Dust suppression technology Digitisation and sensing technology to provi
Slide 83: Sustainable Mining Plan
SUSTAINABLE MINING PLAN Circular economy Social performance Circular economy lens across the operation, with focus on full value chain Best practice Anglo American social performance system, including and optimal use of resources in operations engagement with communities and supplier networks 88
Slide 84: Project Timeline
PROJECT TIMELINE No permitting requirement Key priorities Planning and alignment – integration with Grasstree Delivery of major equipment 2019 2020 2021 99
Slide 85: Footnotes
FOOTNOTES 1. Total Recordable Cases Frequency Rate per million hours. 10 10