Slide 1: Analyst & Investor Presentation November 2018
Analyst & Investor Presentation November 2018
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: Índice de Contenidos
01 ÍNDICE OVERVIEW DE CONTENIDOS 02 FACILITIES 03 PERFORMANCE 04 SUSTAINABILITY 05 GROWTH
Slide 4: Location
Location • Collahuasi is located in the Region of Tarapaca in Northern Chile • The operation is located in the high Andes between 3,000 and 5,000 metres above sea level just 10km from the border with Bolivia EMBARUE • Our port facilities are located at Punta Patache which is close to 200km from the
Slide 5: Collahuasi History
9,000 8,000 8.7 million tonnes in 7,000 cumulative copper Collahuasi History 6,000 sales since start of 5,000 operations • First commercial activity in the 4,000 Collahuasi Region dates back to 3,000 the 1880s where exploitation of 2,000 high grade copper and silver 1,000 veins took place - ´00 ´01
Slide 6: A World Class Resource
A World Class Resource Inclusive Reserves Resources • With close to 10 billion tonnes of 3.2 Bt @ 9.9 Bt @ Reserves & Inclusive Resources 0.93% CuT at 0.79% Total Copper, the 0.79% CuT ROSARIO Collahuasi deposit is one of the best on the planet 1 • Collahuasi has consistently ranked within the top 4
Slide 7: Experienced Management Team
CEO Jorge Gomez VP Finance & VP Development & VP Human EVP Operations VP Projects Experienced Management Administration Sustainability Resources Team Michael Francisco Mario Fernando Dalibor Farrelly Carvajal Quiñones Hernandez Dragicevic EMBARUE VP Mining VP Processing Manager Legal Manager Safety
Slide 8: Índice de Contenidos
01 ÍNDICE OVERVIEW DE CONTENIDOS 02 FACILITIES 03 PERFORMANCE 04 SUSTAINABILITY 05 GROWTH
Slide 9: Facilities Overview
Iquique Alto Hospicio Pozo FACILITIES OVERVIEW Almonte Pica Borde • Two primary open cut pits – Costero Rosario & Ujina Mine & • Rosario is the current primary Plant Pipeline operating pit due to higher Patache Port grade of copper contained • Copper concentrate plant with 155-165 ktpd capacity EMBA
Slide 10: Mine
MINE Main Equipment • 4 Bucyrus 73 yd3 shovels, 4 P&H 73 yd3 shovels, 1 CAT-7495 79 yd3 shovel • 3 Hydraulic Shovels: 1 PC-8000 and 2 PC-5500 • 3 Front-end loaders - Letourneau 1850 • 95 Komatsu 930s, 5 Komatsu 980s, 6 Liebherr T 282s • 15 drills Material Moved • Current average 750Ktpd, or 275Mt pe
Slide 11: View of Rosario Pit
Th COLLAHUASI VIEW OF ROSARIO PIT
Slide 12: Plant
PLANT Main Facilities • 3 SAG mills and 4 ball mills with sequential flotation (3 lines) • 36 rougher cells 127m3 & 24 300m3 • 27 cleaner cells 127m3 & 27 160m3 • 190km pipeline carries slurry to Punta Patache where molybdenum concentrate and moisture are extracted PRODUCTS • Cu concentrates ῀ 530kt
Slide 13: Patache Port
PATACHE PORT • Wholly-owned allowing unlimited access to port facilities • 7 & 8 inches dual concentrate pipelines from mine site to port • Molybdenum selective flotation Plant • Filter plant to remove moisture • Shiploading facility for export shipments and road haulage to local smelters and altern
Slide 14: Índice de Contenidos
01 ÍNDICE OVERVIEW DE CONTENIDOS 02 FACILITIES 03 PERFORMANCE 04 SUSTAINABILITY 05 GROWTH
Slide 15: Risk Management Cycle
Risk Management Cycle Operating Model Planning Execution Verification • Through a simple and effective management model, Collahuasi has continued to strengthen Process Work Procedures Verification& Risk Matrix MitigationPlans business performance Maps Authorisation • Key focus on the Risk Management
Slide 16: Safety Performance
CICLO DE GESTIÓN DE RIESGO COLLAHUASI Safety Performance • Continuous improvement in safety indicators since 2012 • Industry-leading results in Chile 8 2.6 2.5 • Rigorous focus on risk 2.0 management in the processes and 1.5 heavy involvement from senior 1.2 management team – “Turno 1.0 0.9 0.9 0.8
Slide 17: Safety & Productivity
115 Productivity 1.0 CICLO DE GESTIÓN DE RIESGO COLLAHUASI108t Safety & Productivity 85 per person 0.7 55 LTIFR 0.4 • Improved Risk Management LTIFR 0.1 performance – both safety and 25 0.1 operational, has resulted in 2012 2013 2014 2015 2016 2017 2018 significant improvements in Productivity LTIFR
Slide 18: Operational Performance
Material Mined (million tonnes) Throughput (million tonnes) Operational Performance • Mining rates increasing from 300 60 275mt per annum up to 300mt 278 ῀ 275 44 48 48 44 49 50 ῀50 by 2020 in order to maximise 257 254 268 252 264 resource returns at current plant throughput rates 2012 2013 2014 201
Slide 19: Productivity
Tonnes of Copper Produced per Person (major Chilean Operations) Productivity 120 • Collahuasi is the most 100 productive operation in Chile and one of the most productive in the world 10 80 • Workforce numbers including 60 permanent contractors have 108 fallen from over 9,000 people in 2012 to below
Slide 20: Costs
Operating Costs (US$b) Costs • Mine costs have reduced by 33% 1,650 1,610 1,528 Operating Costs Split from $1.65 billion in 2012 down 1,242 1,073 1,071 ῀ 1,130 to $1.10 billion today Other 12% Manpower 17% • C1 Costs which are approaching 2012 2013 2014 2015 2016 2017 2018F the first cost quartile h
Slide 21: Moving down the Cost Curve
Moving down the Cost Curve 11 US$/lb 4.00 • Significant progress has been Collahuasi made by the management team Collahuasi 3.00 2012 Collahuasi 2015 in moving down the cost curve 2.00 2018 • Move from 4th Quartile to 1.00 border of 1st and 2nd quartile 0.00 since 2012 -1.00 • Expected 1st Cost Quar
Slide 22: Flotation Cells Project
Flotation Cells Project • This project involved the installation of 24 additional flotation cells in the Concentrator plant • Successful implementation of the flotation cells project in 2018 has resulted in a more than 3% increase in copper recoveries 12 • Capital Investment: US$154m • NPV: US$504m
Slide 23: Production & Costs Guidance
Copper Production KT C1 Costs US$/lb Production & Costs Guidance 570 560 $1.14 to 530 620 to ῀ $1.10 ῀ 550 to 610 524 550 ῀ $1.00 2017 2018F 2019 2020 2021 2017 2018F 2019 24
Slide 24: Índice de Contenidos
01 ÍNDICE OVERVIEW DE CONTENIDOS 02 FACILITIES 03 PERFORMANCE 04 SUSTAINABILITY 05 GROWTH
Slide 25: Community Relations
Area of Influence Community Relations • Collahuasi is located in the Region of Tarapaca • Constructing a better society is central to our business proposition • In 2017, we contributed close to US$10m to the local communities. 35% was used in funding our Community Involvement Educational Foundation
Slide 26: Key Sustainability Statistics
Industry leading safety performance Safety Key focus on risk management in the processes and health of employees 1,969 direct employees Workforce 3,369 contractors 44.1% of the workforce live in the region Uso de Recursos 178 local suppliers with US$200m spend Local 30 local schools are supported by
Slide 27: Índice de Contenidos
01 ÍNDICE OVERVIEW DE CONTENIDOS 02 FACILITIES 03 PERFORMANCE 04 SUSTAINABILITY 05 GROWTH
Slide 28: Growth
Growth Inclusive Reserves • Significant opportunity & Resources 3.2 Bt @ optionality for controlled growth 9.9 Bt @ as a result of: 0.93% CuT 0.79% CuT • Very large resource base with long life • Low risk jurisdiction • Brownfield expansion • Minimal community impact Resource base supports a • Acces
Slide 29: Base Case
Base Case • The current base case for Line 1 Line 2 Line 3 Collahuasi assumes the operation of 3 processing lines in the concentrator plant including 3 SAG mills and 4 ball mills Feasibility stage Copper ῀ 530kt p.a. • Throughput in this configuration averages 155-160Ktpd • Long term average copper
Slide 30: 170Ktpd
170Ktpd • Current environmental approvals Line 1 Line 2 Line 3 5th Mill for Collahuasi allow us to increase throughput capacity of the concentrator plant to 170Ktpd Pre-feasibility in process • Capacity can be increased through Copper ῀ 580kt p.a. the addition of a 5th ball mill as well as upgrades
Slide 31: 210Ktpd
210Ktpd • Collahuasi is currently going through Line 1 Line 2 Line 3 5th Mill the submission and approval process for a new EIA which would extend our license to operate beyond 2020 Concept stage • A nominal throughput capacity Copper ῀ 650kt p.a. expansion to 210Ktpd is being requested as part of t
Slide 32: Bioleaching
Bioleaching • As part of the EIA process SXEW Line 1 Line 2 Line 3 5th Mill Collahuasi is also requesting authorisation for the development of additional leaching pads for a future bioleaching project Concept stage Copper ῀ 710kt p.a. • This projects would utilize the existing SXEW facilities and co
Slide 33: 4th Line
4th Line • Optionality exists for long term SXEW Line 1 Line 2 Line 3 5th Mill Line 4 major growth projects including one complete additional line in the concentrator plant Concept stage • This project would also require Copper ῀ 830kt p.a. additional infrastructure including water supply, flotation
Slide 34: 4th + 5th Line
4th + 5th Line • A 4th Line Project in the SXEW Line 1 Line 2 Line 3 5th Mill Line 4 Line 5 concentrator plant could be extended into a 5th Line • Long term average copper Concept stage production in this configuration is Copper ῀ 925kt p.a. ῀ 925kt p.a. 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 35: Conclusion
Conclusion • Collahuasi is world class copper operation with significant upside potential • Current operational performance in terms of safety, costs and production confirm us as one of Porque somos mucho más que cobre, lideramos con pasión un negocio de excelencia para construir una the worlds lead
Slide 36: Footnotes
1. Please refer to the AA plc Ore Reserves and Mineral Resources Report 2017 for the tonnes, grades and a breakdown of the classification categories. 2. Collahuasi has ranked in the top 4 Copper Mines globally in each of the last 10 years apart from 2012. In 2017 Collahuasi was ranked number 2. 3. A
Slide 37: Footnotes
10. Benchmarking data based on 2017 Encare Survey. Collahuasi productivity number reflect Collahuasi forecast 2018 productivity. These numbers represent tonnes of copper produced per annum per employee. Employees include both own employees and contractors. 11. Information supplied by Wood Mackenzie