Anglo American Plc · LSE:AAL
Anglo American — Investor Presentation (2002)
35 slides from Anglo American's investor presentation, 2002
Slide 1: Anglo Coal Australia
Anglo Coal Australia
Slide 2: Group Structure
Group Structure A n g lo A m e rica n p lc P la tin um G o ld Coal D ia m o n ds F e rro us /B a se F o rre st In d u s trial M e ta ls P ro d u c ts M in e ra ls S o u th A m e rica S o u th A frica A n g lo C o al A u s tra lia C a llid e D a rtb ro o k K a yu g a 1 00% 7 7% P ro je ct M o u ra D
Slide 3: Anglo Coal Australia
Anglo Coal Australia Australia’s third largest coal producer Investment in Australia totals USD 1.3bn Plans to invest a further USD 400m on Australian mine development over the next 5years Australia is essential to Anglo Coal’s long-term growth
Slide 4: Major Australian Producers
Major Australian Producers 60 50 Rio Tinto Thermal Coal (Mt) 40 30 Glencore BHP Billiton 20 Anglo 10 MIM 0 0 10 20 30 40 50 60 Coking Coal (Mt)
Slide 5: 2001 Performance – On Target
2001 Performance – On Target Overall stretch target achieved in first full year All business units “On Target” or better Operating profit USD 173m and above plan, ROCE 19% Strong cash flow Unit cost and production on target Achieved sustainable cost savings of USD 12m in 2001
Slide 6: Products & Markets
Products & Markets Sold over 29 Mt of coal in 2001 Diverse product range Strategy is to double managed production by 2007
Slide 7: Thermal Coal Demand
Thermal Coal Demand 500 South Asia 450 400 350 Pacific Million Tonnes 300 250 200 Americas 150 Other 100 Europe 50 EC 0 998 999 000 001 002 003 004 005 006 007 008 009 010 1 1 2 2 2 2 2 2 2 2 2 2 2
Slide 8: Metallurgical Coal Demand
Metallurgical Coal Demand 250 200 South Asia Million Tonnes 150 Pacific 100 Americas 50 Other Europe EC 0 1998 1999 2000 2001 2002 2003 2004 2005 2006
Slide 9: Anglo Coal Australia – Core Strategies
Anglo Coal Australia – Core Strategies One Team – One Business Skilled workforce Continuous improvement Growth Australian opportunities Indo-Pacific expansion
Slide 10: In the Community
In the Community Responsible corporate citizen Sponsor of Queensland Community Fund Sponsor of Camp Quality Providing scholarships & training Industry leader in safety
Slide 11: Leader in Safety
Leader in Safety 30 30 25 25 20 Anglo CoalCoal Anglo Aust. Aust. 20 Aust. CoalCoal Aust. Industry Industry 15 15 Aust. Mining Aust. Industry Mining Industry 10 10 5 5 0 0 Opencut Underground Total Opencut Underground Total Industry Comparison – LTIFR 2000/2001 (per million hours)
Slide 12: LTIFR – Qld & NSW Underground Mines 2000-2001
LTIFR 0 40 80 120 160 Cordeaux Nardell German Creek Central German Creek Central Dartbrook German Creek Southern German Creek Southern Moranbah North Oaky Creek No. 1 Crinum Ulan Bellambi West Appin Glennies Creek Oaky North U/G Angus Place Queensland Mines Kestrel Clarence New South Wales Mines Cha
Slide 13: LTIFR – Qld & NSW Open Cut Mines 2000-2001
LTIFR 0 20 40 60 80 Callide Callide Jellinbah Jellinbah Oakleigh South Walker Charbon Donaldson Invincible Curragh Moura South Blackwater Burton German Creek German Creek Queensland Mines Ebenezer Blackwater New South Wales Mines Gregory Newlands Ensham Saraji Meandu Coppabella Ravensworth/Narama Je
Slide 14: Callide
Callide rr Gladstone Power Station (NRG) Gladstone 7 Qid Alumina Refinery (QAL) To “ Brisbane S RUSTRALIA @)@Callide Power Stations To Moura
Slide 15: Capcoal (German Creek)
Capcoal (German Creek) 150 o N EW LA N D S 148o EA STERN C REEK M ackay Dalrym ple Bay/ NT Suttor Creek Hay Point QLD E n la rg e d Lake Elphinstone A re a Lacewood Hail Creek WA SA NSW Wards W ell N O RTH G O O N YELLA BURTON Bee C reek V IC RIVERSID E G O O N YELLA SO UTH Kem m is/Walker T WA LKER
Slide 16: Capcoal (cont’d)
Capcoal (cont’d) Produces 5 Mtpa hard coking coal Two underground mines and one open cut mine German Creek employs 758 people All coal is exported to steel companies The new Grasstree Mine to extend mining life
Slide 17: Moranbah
Moranbah 150 o N EW LA N D S 148 o EA STERN C REEK M ackay Dalrym ple Bay/ NT Suttor Creek Hay Point QLD E n la rg e d Lake Elphinstone A re a Lacewood Hail Creek WA SA NSW Wards Well N O RTH G O O N YELLA BURTON Bee Creek V IC RIVERSID E G O O N YELLA SO UTH Kem mis/W alker T WA LKER W est N ebo MO
Slide 18: Moranbah (cont’d)
Moranbah (cont’d) Produces 5 Mtpa hard coking coal Coal is exported to various steel manufacturers in Asia One of Australia’s most productive underground longwall mines Moranbah employs 448 people
Slide 19: Jellinbah
Jellinbah 150 o N EW LA N D S 148o EA STERN C REEK M ackay Dalrym ple Bay/ NT Suttor Creek Hay Point QLD E n la rg e d Lake Elphinstone A re a Lacewood Hail Creek WA SA NSW Wards W ell N O RTH G O O N YELLA BURTON Bee C reek V IC RIVERSID E G O O N YELLA SO UTH Kem m is/Walker T WA LKER W est N ebo
Slide 20: Moura
Moura B O U N D A R Y H IL L SO U T H B L A CK W AT ER M ine D eposit MOURA CA L L I D E Coal M easures R O L L ESTO N TH EO D O R E Coal F ired G eneration D A W SO N M O N TO Railway (high capacity) Railway (low capacity) TA R O O M WAN DOAN TA RO N G A CL A N D W I L K I E CREEK M IL L M ERR AN J
Slide 21: Dartbrook
Dartbrook M urrurundi Aberdeen DARTBROOK M uswellbrook DARTBROOK No. 2 G L O U CE S T E R Mount P leasant GU N N EDA H Scone B A SI N Stratford Bengalla B ASIN Aberdeen D RAYTO N Mount P leasant Ben galla M uswellbrook N o. 2 Duralie Bayswater No. 2 Ulan Bayswater N o. 2 DR AYTO N M ount Arthur Nort
Slide 22: Dartbrook (cont’d)
Dartbrook (cont’d) Produces approx 3.4 Mtpa of thermal coal All coal is exported to Asia Low sulphur product Dartbrook employs 293 people Kayuga seam project extends mine life
Slide 23: Drayton
Drayton M urrurundi Aberdeen DA RTB R O O K M uswellbrook G L O U CE S T E R M ount P leasant No. 2 G U N N ED A H B A SI N Scone DA RTB R O O K B A SI N Bengalla D R AY T O N Stratford Aberdeen LID DELL PO W E R Bayswater No. 2 D R AY T O N STATIO N Mount P leasant M uswellbrook N o. 2 Duralie Ben
Slide 24: Drayton (cont’d)
Drayton (cont’d) Mine produces approx 5 Mtpa of thermal coal Dragline and truck & shovel mining Export – approx 3 Mtpa Domestic – approx 2 Mtpa Drayton employs 264 people Saddlers Creek identified as replacement reserve
Slide 25: Forecast Production - 2002
Forecast Production - 2002 Mine Saleable Type Anglo Production (100% Mt) Share Callide 10.7 Thermal 100% Capcoal 5.3 Metallurgical 70% Drayton 5.0 Thermal 88% Dartbrook 3.2 Thermal 77% Moranbah 5.1 Metallurgical 88% Moura 6.0 Thermal & Met 51% Jellinbah 3.7 PCI 23% TOTAL 39.0
Slide 26: Improving our Competitiveness
Improving our Competitiveness Competitive position is a key success factor Continuous improvement philosophy Internal and external benchmarking studies External learning Acquire long life operations with low cost structures
Slide 27: Dragline Benchmarking
Dragline Benchmarking Detailed comparative data analysis prepared with external consultants Analysis highlighted large potential for improvement in dragline productivity Target improvement areas identified for each dragline
Slide 28: Dragline Productivity Improving
Dragline Productivity Improving Annual Output (t) Target v RSL (end 2001) Improvements Result Rank vs Data Top Priority Actions to May 02 (150) Rank Dragline Base 1 BH BE1350W +14.4% 36 Payload On track (16%) 2 DR BE1370W +2.3% 64 Payload On track (15%) 3 CA M8750 -5.3% 82 Payload On track (15%) 4 C
Slide 29: Longwall Production - 2001
Mine Output (Mt) - 1 2 3 4 5 6 7 OAKY NORTH MORANBAH NTH Moranba KESTRAL h NEWLANDS S. BULGA ULAN WAMBO GC-SOUTHERN GC DARTBROOK Southern Dartbrook W. WALLSEND BAAL BONE APPIN KENMARE CRINIUM NEWSTAN OAKY CREEK WEST CLIFF N. GOONYELLA SPRINGVALE CUMNOCK 1 ANGUS PLACE ELOUERA GC-CENTRAL GC Longwall P
Slide 30: Coal Reserves and Development
Coal Reserves and Development ACA has mining plans across reserves totalling almost 800 Mt Many sites still have extensive areas that have not been fully explored Confident that reserves will grow significantly as the exploration program is intensified
Slide 31: Qld Reserve Areas – Northern Bowen Basin
Qld Reserve Areas – Northern Bowen Basin N ew lands Ea s tern MACKAY C reek D al rymple B ay G lenden H ay P oi nt S uttor C reek L anc ew oo d S arina Q ue e n sla nd H ail C reek W ards W ell A U S T R AL IA K em m is W alker N or th G o onyella B ee B ur ton C reek N ebo R ivers ide S o uth W alk
Slide 32: Qld Reserve Areas – Southern Bowen Basin
Qld Reserve Areas – Southern Bowen Basin C apella Yarra bee Go rdo ns to ne J ELLIN B AH E AS T R OCK H AMPT ON Ens ham C urragh E meral d B luff B luff C omet B lackwater D ingo P ort A lma D uari nga M ount B lac kw a ter M organ C ullin-la- ringo C oo k GL ADST ON E S o uth B lac kw ater To gara
Slide 33: New South Wales Coal Reserve Areas
New South Wales Coal Reserve Areas M urru r undi 0 25 50 kilo m e tre s A U S T R A L I A N SW S con e S tratfo rd DARTBROOK A ber deen M us w ellbro o k N o2 W ards R iver M uswell br ook U lan B YL O N G D R AY TO N D enman L iddell M t. O w en G lennies C reek M itc hells SADD LERS CREEK L em ing
Slide 34: Future Directions
Future Directions ACA and Mitsui joint ventures Dawson Valley projects China Indonesia
Slide 35: Conclusion
Conclusion Anglo Coal is committed to achieving its key strategic goals of: Growth Continuous, sustainable improvement Maintaining its leading position in safety Investment in Indo-Pacific