Anglo American Plc · LSE:AAL
Anglo American — Corporate Update (May 2015)
23 slides from Anglo American's corporate update, May 2015
Slide 1: Minas-Rio International Media Visit 2015
IRON ORE BRAZIL MINAS-RIO INTERNATIONAL MEDIA VISIT - 2015 May, 2015
Slide 2: Anglo American: The Diversified Miner
ANGLO AMERICAN: THE DIVERSIFIED MINER Diversified across 10 product groups that span the development cycle Founded in 150,000 employees 1917 and contractors Key Headquarters Corporate & representative offices Iron Ore and Manganese Met and Thermal Coal Copper Nickel Niobium and Phosphates Operating
Slide 3: Anglo American in Brazil
ANGLO AMERICAN IN BRAZIL A long and successful partnership Nickel Exploration Office Nickel Niobium Iron Ore (Minas-Rio) More than Phosphates Iron ore export 40 years in terminal Brazil Brazilian corporate office Phosphates 3
Slide 4: Brazil: Economic and Political Scenario
BRAZIL: ECONOMIC AND POLITICAL SCENARIO A challenging set-up in spite of favourable conditions Selected indicators1 – % Brazil OECD Brazilian environment Modest growth due to tighter monetary and fiscal policies, weak external demand, low levels of investment and infrastructure bottlenecks; GDP Grow
Slide 5: Minas-Rio: Safety as a Cornerstone of Performance
MINAS-RIO: SAFETY AS A CORNERSTONE OF PERFORMANCE Benchmark Safety Performance = Leadership, Ownership and Accountability Man-Hours Total Recordable Cases High Potential Incidents Risk Change Management Worked = 170m (TRCFR) HPI = 127 RCM = 96% (million) 40 35 0.38 0.38 41 96% 26 28 0.31 0.23 85% 31
Slide 6: Minas-Rio: Large Reserve & Resource Base
MINAS-RIO: LARGE RESERVE & RESOURCE BASE Long-term value from a Tier 1 deposit with a fully integrated logistics • 2.8 Bt of Total Ore Reserves in addition to 2.6 Bt of Total Mineral Resources* • Easy to mine material due to geological formation • Low strip ratio over LOM ~0.4:1 and easily liberates
Slide 7: Minas-Rio Overview
MINAS-RIO OVERVIEW A fully integrated operational infrastructure – from mine to port BENEFICIATION PLANT MINE IRON ORE TERMINAL FILTRATION PLANT PIPELINE 7
Slide 8: Minas-Rio Process
MINAS-RIO PROCESS A fully integrated operational infrastructure – from mine to ship MINE PLANT PIPELINE FILTRATION IRON ORE TERMINAL • Life of mine is • One 230kV • The longest slurry • Filtration plant located • Dedicated iron ore estimated at 45 years transmission line pipeline in the world the Po
Slide 9: Shipped First Ore on October 2014
SHIPPED FIRST ORE ON 25 OCTOBER 2014 FOOS delivered safely and responsibly within revised plan and budget • First Ore on Ship two months ahead of schedule • Capital saving 0.4 billion - $8.4 billion • Ramp-up: 18 - 20 months post First Ore on Ship • 13 shipments to customers in China, India, Middle
Slide 10: A Major Achievement
A MAJOR ACHIEVEMENT Engineering complexity in an evolving environment 33 MUNICIPALITIES 170,000,000 man hours worked 35,600,000 m3 of earthworks ≈ ≈ 7 Burj Khalifa (Dubai) 2m PEOPLE - Tallest building in the world. 4,100 light vehicles + mobile equipments 4,000,000 km/month 32 FULLY FILLED WEMBLEYS
Slide 11: Minas-Rio Video
MINAS-RIO VIDEO First Ore on Ship delivered in line with revised plan Minas-Rio 11
Slide 12: Competitive Operating Cost Position
COMPETITIVE OPERATING COST POSITION Lower Half of the Cost Curve FOB Cash Cost (post ramp up) Global Iron Ore Cost Curve - 2016 ($/dmt, FOB) 1st 18 yrs. Avg. (Real 2014 Terms wmt) • Minas-Rio in the 2nd quartile of the cash cost curve Mine $10/t - $11/t 200 Beneficiation $9/t 150 Pipeline $2/t 100 F
Slide 13: High Quality Pellet Feed Products
HIGH QUALITY PELLET FEED PRODUCTS With the perfect fit for the evolving iron ore consumer market 0% 2% Minas-Rio • Increased market demand for high quality ore = Minas-Rio • Minas-Rio High quality pellet feed products Alumina + silica content 4% Brazil • Direct Reduction – ~68% Fe North America Othe
Slide 14: The Focus Is Now on Safe Ramp-Up
THE FOCUS IS NOW ON SAFE RAMP-UP World-class performance and strong risk management Delivered project at $8.4 billion capex Product Ramp-up (Mtpa - wet basis) & FOB Cash Cost 8.4 0.4 8.8 0.9 7.5 Product (mt) 26.5 24-26 FOB ($/ wmt) LTD 2015 / Total project Saving Previous ~$60/t Feb15 2016 estimate
Slide 15: Stakeholder Support: Earning Our Social Licence
STAKEHOLDER SUPPORT: EARNING OUR SOCIAL LICENCE Projects and initiatives focusing on the short, medium and long term requirements Education, Culture and Tourism Infrastructure and Access Health Local labour programme Professional Training Senai Pavement works Historical building renovation
Slide 16: Working Together
WORKING TOGETHER There are no limits to what can be achieved if we truly work together OUR VALUES TOGETHER WITH THE COMMUNITY CREATING THE RIGHT ENVIRONMENT % of Total Workforce 100 19 81 • 474 students graduated to date 69 • All of them from local communities 31 • 347 (73%) hired by Anglo American
Slide 17: Minas-Rio International Media Visit
IRON ORE BRAZIL MINAS-RIO INTERNATIONAL MEDIA VISIT
Slide 18: Appendix – Social Licence to Operate
IRON ORE BRAZIL MINAS-RIO INTERNATIONAL MEDIA VISIT APPENDIX – Social Licence to Operate
Slide 19: Community Development Programs
COMMUNITY DEVELOPMENT PROGRAMS Local Supplier Development Program Local Labour Development Program - MOVER Building Blocks Business development, financial support and Prepare the local population for entry into the professional qualification since 2012; labour market; 516 local suppliers suppo
Slide 20: Investment in Education
INVESTMENT IN EDUCATION 30 information technology centres in Conceição do Mato Information Dentro, Alvorada de Minas, Dom Joaquin and Serro; Technology More than 1600 people have benefited; Program Partners: Milplan, CMDNet, Enesa, ARG. 9100 pupils and 910 teachers in 49 schools across 5 mun
Slide 21: Investment in Culture and Infrastructure
INVESTMENT IN CULTURE AND INFRASTRUCTURE Cultural tradition and Restorations Health Care Support cultural tradition and preservation in Conceição do Mato Dentro and Serro; Health care infrastructure in 3 municipalities: Heritage education; • Contracting of health care professionals; Qualific
Slide 22: Investment in the Environment
INVESTMENT IN THE ENVIRONMENT Fauna Monitoring and Flora Rescue Fire awareness and prevention More than 950 fauna species were monitored; Partnership with the State Forest Institute (IEF) aiming to reduce fire incidents in the Espinhaço region; Production of more than 350,000 native seedlings
Slide 23: Anglo American Brazil - Partner in the Future
ANGLO AMERICAN BRAZIL - PARTNER IN THE FUTURE Four main initiatives with the objective of shared benefits IFC Best Practice Sharing ARPA For Life Participation to IFC's Sustainability Exchange Forum Investment of US$5 million - disbursement from December 2014 Unbundle social investments from o