Anglo American plc · LSE:AAL

Anglo American — De Beers Marine Namibia — Corporate Update (2006)

18 slides from Anglo American's corporate update, 2006

  1. Slide 1: De Beers Marine Namibia: The journey continues…

    De Beers Marine Namibia The journey continues… Mission :To prospect for & mine marine diamonds in a sustainable manner to DE BEERS MARINE NAMIBIA the benefit of our shareholders & stakeholders Sharehol der St ruct ure in N amibia GRN DBC 5 0% 5 0% NA MDEB AMD EB 70 % 7 0% 30 % DBM N A MI BI A Shareh

  2. Slide 2: Production has grown by 82% since migration from RSA

    Lüderitz Windblown deposits Elizabeth Bay Deflation NAMIBIA deposits Distribution of Namdeb’s deposits Pocket Beaches Chameis Linear Beaches River OMD deposits Submerged Beaches RSA PRODUCTION HAS GROWN BY 82% SINCE MIGRATION FROM RSA Atlantic 1 - Production Performance 1,000 5,500 CARATS A R EA 950

  3. Slide 3: DBMN – Largest Diamond Miner in 2005

    DBMN – LARGEST DIAMOND MINER IN 2005 DBMN – A1 Namdeb – DA1 Other - marine 922 000 798 000 55 000 52% 45% 3% 1 775 000 100% Motto :Innovation . . . challenging the boundaries DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA DBMN Fleet (2005 – 922 000 carats) 201k 138k CS = 96k Atlantic Ya Toivo 186k 152

  4. Slide 4: LTIFR Trend, OHSAS18001 and Environmental Research Focus

    LTIFR TREND 25 2. 50 OHSAS18001 20 2. 0 0 15 1. 50 LTI FR LTI ' s 10 1. 0 0 5 0 . 50 0 0 .0 0 19 91 19 92 19 93 199 4 199 5 19 96 19 97 19 98 199 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 LTI 's 21 11 7 13 7 7 4 7 4 5 6 2 2 1 4 0 DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA LTI FR 1. 96 1.

  5. Slide 5: More than just a mining company

    More than just a mining company Training & Development is an integral part of overall strategy to ensure a competent & skilled workforce, & to support AA. ƒ 605 permanent employees ƒ 70% Namibian ƒ N$15 million on training per annum ƒ AA certified in 2003/4/5 ƒ Donations to the needy in the society

  6. Slide 6: Tool Development & Future Capacity Building

    TOOL DEVELOPMENT & FUTURE CAPACITY BUILDING DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA CRAWLER MOUNTED DREDGE ƒ Recent technology in Atlantic 1 ƒ Ongoing incremental improvement AIRLIFT DRILL-SHIP ƒ Known technology in Atlantic 1 ƒ Ongoing incremental improvements ƒ Quantum improvement in 2005 6

  7. Slide 7: Trailer Suction Hopper Dredge and DBMN Rate Improvement History

    TRAILER SUCTION HOPPER DREDGE . . . future candidate? ƒ New technology in Atlantic 1 ƒ Quantum leap potential ƒ Chameis trial - Jan 2005 ƒ Environmental sensitivity ƒ Trial mining in Atlantic 1- Q1 2006 DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA DBMN RATE IMPROVEMENT HISTORY 300 Wide Channel 250 E

  8. Slide 8: DBMN Productivity Improvement: Atlantic History – Carats & Grade

    DBMN PRODUCTIVITY IMPROVEMENT DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA ATLANTIC 1 HISTORY – CARATS & GRADE 1000.00 0.700 900.00 Carats Recovered (000) 0.600 Grade Recovered (ct/m2) 800.00 0.500 700.00 600.00 0.400 Carats (000) Cts/m2 500.00 0.300 400.00 300.00 0.200 200.00 0.100 100.00 0.00 0.00

  9. Slide 9: Grand Banks 2005 Utilisation and Resource Generation Efforts

    GRAND BANKS 2005 UTILISATION Hours % 3% 2% 1% 0% Positioning 248 3% 1% 2% Env 198 2% 5% RAS 55 1% 2% 0% Sea Trials - 0% Positioning Env Steaming - 0% RAS Sea Trials Other delays 130 1% Steaming Other delays A/Water del. 178 2% A/Water del. U/Water del. U/Water del. 4 0% WOW PM WOW 452 5% In-port Min

  10. Slide 10: Challenging the Limits

    CHALLENGING THE LIMITS Days to complete a mine support survey 17 15 10.5 8.5 7.9 Spencer Bay Zealous 98 Zealous 99 Zealous 97 Meob Bay 1 AUV DE BEERS MARINE NAMIBIA Bathymetry Pre 2000 Swath Bathymetry Today DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA 10

  11. Slide 11: Tool Performance Assessment and Atlantic 1 Resource Areas

    TOOL PERFORMANCE ASSESSMENT Maximum trench depth: 6 m Trench Tailings Ya Toivo Mined ground Drillship Mined ground 1.5 x vertical exaggeration DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA Primary Exploration Areas ATLANTIC 1 RESOURCE AREAS Areas of low interest Low information High potential 4m over

  12. Slide 12: Global Resource Estimate

    GLOBAL RESOURCE ESTIMATE 2004 - celebrate - CALCULATIONS success Cut-off Area Ave grade Mcts (cts/m²) (km²) (ct/m²) Profitability of Present Resource - July 2005 0.000 1,402 63.5 0.045 0.025 868 60.0 0.069 0.050 574 52.2 0.091 8 0.075 385 43.7 0.113 0.100 263 35.9 0.137 7 0.125 185 29.6 0.160 6 0.15

  13. Slide 13: Future Scenarios: Combined Marine & Land Production

    Combined marine & land production Future Scenarios 3 ,5 0 0 T o ta l M o s t L ik e ly T o ta l B lu e S k y 3 ,0 0 0 2 ,5 0 0 Capital = N$10.32b 2 ,0 0 0 '000c 1 ,5 0 0 1 ,0 0 0 Capital = N$5.29b 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ye a rs Teamwork Integ

  14. Slide 14: Marine SBP Scenarios – Blue Sky

    MARINE SBP SCENARIOS – BLUE SKY 2500 N$6.20b 2000 AMV3 Carats ('000' 1500 AMV2 1000 Other Vessels Current Fleet Improvements 500 Current Fleet 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Vision :The largest diamond miner in Namibia ...forever Marine contribution

  15. Slide 15: Profit Outlook and Risks & Challenges

    While land production continues for years, note profit declines and marine potential growth 2500 Profits to Namdeb(before royalties & taxes) 2000 A1 Dredge DA1 Atlantic 1 1500 N$ millions 1000 500 0 2004 2005 2006 2007 2008 2009 2010 -500 DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA RISKS & CHALLENG

  16. Slide 16: BHAG – Conclusion

    BHAG Short term ƒ N$250 million profit to Namdeb for 2005 Was exceeded. Actual = N$338m Medium term ƒ 1 million carats from existing fleet by 2007 Long term ƒ 10 million carats (Sea + Land) 2006-2010 Motto :Innovation . . . challenging the boundaries DEBEERS DE BEERSMARINE MARINENAMIBIA NAMIBIA CONC

  17. Slide 17: Strategic Alignment and Sustainability

    STRATEGIC ALIGNMENT GRN De Beers Vision 2030 Chapter 2 6% ANNUAL ECONOMIC GROWTH US$2.4 BILLION EBITDA BY 2009 Drivers: 7 strategic levers: • Education & skills development • Demand growth • Infrastructure • PPG • Fiscal policy • Value creation through the DTC • Beneficiation • Cost efficiencies • N

  18. Slide 18: The journey continues… Thank you

    The journey continues… Thank you Questions/discussions 18

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