Slide 1: Los Bronces Overview
LOS BRONCES OVERVIEW Patricio Chacana, General Manager 17 October 2019
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: Los Bronces: Facilities and Processes
LOS BRONCES: FACILITIES AND PROCESSES Metropolitan Region limit 3
Slide 4: Mine Site Overview
MINE SITE OVERVIEW LOS ANDES Location: 3,500 masl, 65 km NE of Santiago Los Bronces Plant CODELCO El Soldado mine Andina Ventanas Port Chagres smelter LB Las Tórtolas District Los Bronces Viña del Mar plant Pit Colina Santiago Confluencia Plant Cathodes Plant Perez Caldera camp 4
Slide 5: What You Will See and Hear Today
WHAT YOU WILL SEE AND HEAR TODAY Operational Growth optionalities Sustainability performance A transformed A world class asset with At the heart of our business business significant endowment optionality “World class assets and leading capabilities to deliver a world class business” 5
Slide 6: Operational Performance: A Transformed Business
OPERATIONAL PERFORMANCE: A TRANSFORMED BUSINESS 6
Slide 7: Journey to Zero Harm
JOURNEY TO ZERO HARM LTIFR TRIFR 3,4 10,0 TRIFR 3,2 LTIFR 9,0 3,0 2,8 8,0 2,6 6,90 2,4 7,0 2,2 2,0 6,0 5,25 1,8 5,0 1,6 1,4 3,90 3,65 4,0 1,2 3,05 3,05 1,0 3,0 0,8 1,55 1,55 2,0 0,6 0,95 0,85 0,95 0,90 0,4 1,0 0,55 0,65 0,2 0,40 0,35 0,0 0,0 2011 2012 2013 2014 2015 2016 2017 2018 *LTIFR: Lost time
Slide 8: Los Bronces in Numbers
LOS BRONCES IN NUMBERS 1,521 Employees 12 Shovels Electrics Diesel Front Loader 7 4 1 232 Supervisors 9 Drills Electrics Diesel 2 7 2,303 69 KOM 930 56 KOM 960 2 CAT795 11 Permanent contractors Trucks Key performance metrics (2018) C1 Cost (H1 2019, TRIFR Mine Movement Copper production c/lb) 0.85 ~
Slide 9: Los Bronces Is Facing Headwinds
LOS BRONCES IS FACING HEADWINDS We are not immune from industry-wide supply challenges Average haulage distance (km) Strip ratio (ore + marginal ore vs. waste mined) 8.0 2.5 2.0 7.0 1.5 6.0 1.0 5.0 0.5 4.0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021
Slide 10: Applying a Manufacturing Approach to Mining
…AND WE ARE FACING THIS CHALLENGE BY APPLYING A MANUFACTURING APPROACH TO MINING Our Operating Model is based Apply a manufacturing approach to mining, through organised and on three fundamental pillars efficient planning and execution of work Further improvements implemented with little initial pro
Slide 11: Concepts of Operating Model
CONCEPTS OF OPERATING MODEL A structured way of working to convert targets into discrete pieces of work, which is well-planned and scheduled to achieve the desired outcome PLAN DO ACT CHECK 11
Slide 12: Continuous Improvement in Plant Performance
CONTINUOUS IMPROVEMENT IN PLANT PERFORMANCE Confluencia plant operating time (%)(3) Step change in molybdenum recovery (%) +3% 95 53% 93.4 92.7 93.1 Industry 92.0 average 44% 38% 85.8 35% Peer 1 Peer 2 Peer 3 Peer 4 CF 2014 CF 2018 2014 2018 YTD Sep LT 1 Plant LT 2 Plant 12
Slide 13: A Step Change in Mine Performance
A STEP CHANGE IN MINE PERFORMANCE Reconciliation - % Area compliance vs Budget Electric Shovels 73 yd3 Kton (Shovel 08, 10,11,12)) +27.6% +15 97 92 83 76 77 76 76 76 77 75 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 13
Slide 14: With Improved Equipment Productivity
WITH IMPROVED EQUIPMENT PRODUCTIVITY Shovel # P101 Performance (Mt) +63% 35 31 19 2018 • Double side loading increased to 80% • Best operator 80% • Shovel passes per truck 3.5 2019 Focus • Shovel payload • Time management 2014 2018 2019 YTD • Shovel passes per truck 3 14
Slide 15: Growth Optionalities
GROWTH OPTIONALITIES 15
Slide 16: Significant Growth Optionality
SIGNIFICANT GROWTH OPTIONALITY Production (2018) C1 Cost (H1 2019) Reserve life (2018) Permits granted till ~370 ktpa ~$1.35 / lb 30 years 2036 Los Bronces Synergies with Andina Coarse Particle Recovery + Integrated Project Bulk Ore Sorting • Reduced mine interference • Operational continuity of the
Slide 17: Los Bronces - Andina Interaction
LOS BRONCES - ANDINA INTERACTION A constructive pathway for future developments and value generation • Strong collaboration between two neighboring mines • Operation Planning Framework for effective / efficient extraction is in place • Will result in significant cost savings for both mines in time •
Slide 18: Sustainability
SUSTAINABILITY 18
Slide 19: Sustainability Is at the Heart of Our Business
SUSTAINABILITY IS AT THE HEART OF OUR BUSINESS 30% Trusted reduction corporate in energy leader use by 2030 Thriving 50% water communities OPERATIONAL FEWER ACCESS TO abstraction EFFICIENCY SURPRISES RESOURCES by 2030 30% Healthy Improved reduction Development partner environment productivity and of
Slide 20: Sustainability at Los Bronces
SUSTAINABILITY AT LOS BRONCES World's first floating solar plant– Las Tórtolas Tailings Dam 256 photovoltaic panels, with 330 watts of capacity each, which together will generate 86 kilowatts per hour (kW), (150 thousand kWh / year) Renewable Energy Sources Water Evaporation (~3.000 m3/year) Electro
Slide 21: A Flexible Approach to Water Sustainability
A FLEXIBLE APPROACH TO WATER SUSTAINABILITY Recycling more Consuming less Technology & Innovation 75% 50% Coarse particle recovery Water reuse by 2020, Dry tailings Fresh water increasing to 100% by 2030 abstraction by 2030(6) Tailings dam underdrainage Retention Evaporation 153bn Gallons used p.a.(
Slide 22: We Work to Improve the Lives of the People of Our Company
WE WORK TO IMPROVE THE LIVES OF THE PEOPLE OF OUR COMPANY SUCCESSFUL CONSTRUCTION AND IMPLEMENTATION OF NEW CAMP "PEREZ CALDERA" Quality of work life Fatigue control Less exposure Efficiency and productivity in services Same standard own workers and contractors Energy efficiency, Environmental
Slide 23: Step-Change in Performance and Sustainability
STEP-CHANGE IN PERFORMANCE AND SUSTAINABILITY P101 Exceeding industry best-in-class Process & Operating equipment performance Model Stability and optimisation FutureSmart MiningTM Game-changing technology; Sustainable Mining Plan; Digitalisation Incremental improvement c Step-change 23
Slide 24: Context for Delivery of P101 at Operations
CONTEXT FOR DELIVERY OF P101 AT OPERATIONS Identified the pathway to Reviewed all operational areas Prioritisation based on the benchmark, approved by to determine the top operational value of each opportunity technical team and embedded levers by asset in the plan Exceeding industry best-in-class P
Slide 25: Game Changing FutureSmart Mining Technologies
GAME CHANGING FUTURESMART MINING TECHNOLOGIES Advanced Shock-break Bulk ore sorting Fragmentation >50% Reduction in energy intensity Los Bronces 2017 2020 Pilot 25
Slide 26: Committed to Operational Excellence
COMMITTED TO OPERATIONAL EXCELLENCE • Significant progress on our journey to zero harm • Operating Model implemented and delivering benefits • A step change in performance • Further performance improvements committed to increase competitive position • A world leading endowment with significant growt
Slide 27: Thank You
THANK YOU 27