Slide 1: Technical and Innovation Update
AngloAmerican Technical and 11 May 2021 Anglo American
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: Host and Speakers
Host Speakers Matt Daley Group Head of Mining Dave Palmer Group Head of Business Improvement Rohan Davidson Group Chief Information Officer Tony O’Neill Group Technical Director Arun Narayanan Group Chief Data Officer Donovan Waller Group Head of Technology Development Pierre Herben Group Head of Ca
Slide 4: Re-imagine mining to improve people's lives
Re-imagine mining to improve people's lives Anglo American 4
Slide 5: A new trajectory for mining
A new trajectory for mining Operational Excellence Full potential Stability Digitalisation through VOXEL™ FutureSmart Mining™ Technologies Bulk ore sorting Coarse particle recovery Hydraulic dry stacking Microwave Hydrogen trucks Carbon Neutrality Energy Strategy The challenge The pathways Progress
Slide 6: Delivering our full potential through P101
Delivering our full potential through P101 What is P101? • P101 is our breakthrough productivity programme • Initiatives are focused on delivering industry leading performance and productivity across all our key plant and equipment • Ensure integration across all processes and focused on value deliv
Slide 7: Delivering our full potential through P101: Mining
Delivering our full potential through P101: Mining P101 Tactical Mine Design • Planning the mine around the equipment • Enabling high plan compliance • Further incorporating safety in design • Key contributor to delivering >25% improvement in shovel productivity Before After Anglo American 7
Slide 8: Delivering our full potential through P101: Mining
Delivering our full potential through P101: Mining Blasting Design • Fragmentation models enabling fit-for-purpose designs • Improved fragmentation delivering improved truck and shovel payloads and milling rates • Eliminated unproductive trim / buffer blasts • 20-50% reduction in number of weekly bl
Slide 9: Delivering our full potential through P101: Mining
Delivering our full potential through P101: Mining Haul Road Digital Twins • Analyse and improve existing haul roads • Mogalakwena – 23% reduction in haul cycle time; 40% improvement in truck average empty speeds on main haul cycle • Locking in benefits during design phase of future haul roads Compu
Slide 10: Delivering our full potential through P101: Processing
Delivering our full potential through P101: Processing Maximising Processing Value Drivers Throughput • Systematic debottlenecking through dynamic modelling enabled targeted process design upgrades • Circuit reconfiguration to achieve increased process efficiency utilising existing infrastructure •
Slide 11: Delivering our full potential through P101: Processing
Delivering our full potential through P101: Processing Maximising Processing Value Drivers Recovery • Geometallurgical modelling tailoring operating parameters to mined material • Circuit reconfiguration, reagent optimisation, and operating parameter adjustment • 2% increase in Minas Rio mass recove
Slide 12: Delivering our full potential through P101
Delivering our full potential through P101 P101 Best Practice Principles • Locking in the improvements • Building a foundation to redefine the benchmark • Positioned for future autonomy / technology deployment Anglo American 12
Slide 13: Delivering our full potential through P101
Delivering our full potential through P101 +16% +9% Beneficiation Truck Rate Utilisation Minas-Rio Orapa +5% Truck Payload Los Bronces +5% Concentrator Runtime Mogalakwena +25% +5% +30% Rope Shovel Volume Lump:Fine CHPP Mogalakwena Ratio Throughput Kumba Moranbah Anglo American 13
Slide 14: Tangible value delivered
Tangible value delivered $0.1bn $0.2bn Recovery Beneficiation Rate PGMs 0.3 Processing Minas-Rio 0.2 0.6 0.3 $2bn 0.7 Annual improvement 0.3 $0.1bn Transformation Project $0.1bn Efficiency De Beers Gross run rate improvement Los Bronces 2020 vs. 2017 baseline 0.5 0.3 0.6 $0.1bn $0.5bn Longwall Recov
Slide 15: Stability is the key to sustaining our full potential
Stability is the key to sustaining our full potential Anglo American 15
Slide 16: Stability is the key to sustaining our full potential
Stability is the key to sustaining our full potential Delivery of Operating Improvements Instability Stabilise Variability Capability 2020 improvement run-rate (vs 2017) ~$2bn ~$1bn ~$1bn Increased EBITDA conversion rate P101, Operating Timing & Net benefit Model, Tech & Instability to EBITDA Innova
Slide 17: Stability delivers EBITDA
Stability delivers EBITDA 2017-2022 EBITDA Anglo American Operating Model & P101 Delivery – On track Improvement Commitment ($bn) Gross delivery ($bn) Net EBITDA delivery ($bn) 2.0 $3bn - $4bn ~$1.5bn Improvement 0.8 journey continues beyond 2022 Operating Model & P101 Technology & Innovation 2020 2
Slide 18: Advanced Process Control automates stability of plant process
Advanced Process Control automates stability of plant process Minas-Rio: 48% 48% increased stability in float circuit, lifting throughput by 4% Los Bronces: SAG mill 32% throughput maintained at 32% greater stability 17% reduction in 17% energy per tonne milled Anglo American 18
Slide 19: APC improves energy and water efficiency
APC improves energy and water efficiency Sustainability benefits include • 4% reduction in water consumption at Los Bronces grinding mills • 4-12% energy reductions from APCs controlling SAG mills 14ktCO2e Carbon reduction • 80% reduction in plant micro-stoppages from plant-wide optimisers in South
Slide 20: APC improves energy and water efficiency
APC improves energy and water efficiency Large Virtual asset: scale 3D • Virtual plant walks scanning 2D diagrams / drawings & • Access to equipment data / specs equipment data base • Live process data feed • Live video feed Digital Twin 3D point cloud extraction from scan Live APC data APC plant mo
Slide 21: Industry-first digital transformation platform for data-driven decisions
Industry-first digital transformation platform for data-driven decisions Anglo American 21
Slide 22: Data Fabric
Sensors real-time Fleet Management Systems Application data Historians Data Fabric Geoscience Privacy & Security Mining Data Governance & Environment Cataloging Data Market prices Ingestion & Data Quality & Master Data Provisioning Data Lake Anglo American 22
Slide 23: VOXEL is different
VOXEL is different Others Built for mining Built for equipment Spans full value chain Focused on equipment health VS Leverages technical and sustainability knowledge Leverages other industry knowledge Digital twins of the entire value chain Digital twin of one asset Anglo American 23
Slide 24: VOXEL drives intellectual property and data ownership
VOXEL drives intellectual property and data ownership Business outcomes Workflows / User successes Full-stack IP Business specific apps ownership Long term data & IP ownership Applications Data science models Data toolkit Data Consultants Infrastructure Software purchase We make our data discoverabl
Slide 25: Digital Operational Planning value chain
Asset Maintenance Optimisation Ensuring that Rapid maintenance on assets Resource is carried out with the least impact on costs Modelling and plans overall and in People & Creating a digital the long-term Process version of the ground in Encouraging and which we operate to supporting our people prov
Slide 26: Processing Optimisation
Processing Optimisation Process Health – Mogalakwena North (PGM concentrator) Before Challenges detecting • Comparing current performance against its historical statistical mean, bottlenecks which had moving bottlenecks that led to process instability After • P3 points out process deviations seamles
Slide 27: Asset Management
Asset Management Predictive maintenance – ACP (PGM processing) Before Assets People Under/over maintenance • Traditional approach is reactive • Breakdown of assets resulted in Assets broken production impact • Unplanned stoppages Overhaul After Assets Digital People • Proactive continuous monitoring
Slide 28: Safety and Health
Safety and Health COVID-19 response Purpose Potential • Understand COVID-19 levels across Anglo American infection risks • Identify people recently exposed • Enable testing Outcomes • Dashboards deployed • Proven accurate case identification Identified without • Benefits to employees and to the undu
Slide 29: Sustainable Operations
Sustainable Operations Greenhouse Gas modelling Purpose GHG emissions • Provide a sustainability lens view across the mining value chain not impacting plans Outcomes • Simulate and provide optimal environmental recommendations based on integrated value Capability to balance generated across the mini
Slide 30: Digital Operational Planning
Digital Operational Planning Digitising our operational planning Operational Work Planning Management Digital integration Designed for the Anglo American Operating Model • DOP delivers digital planning – value driver 1 2 3 trees and opportunity assessment Am I stable? Will I be stable? Could I be mo
Slide 31: Digital literacy is a key enabler
Digital literacy is a key enabler Building a digitally literate organisation Data / Digital Literacy & Data and digital foundations Nano-degrees • Training for all employees to drive a better understanding of data and digital concepts • Underpins the evolution of a data and digitally-enabled culture
Slide 32: VOXEL enables remote work
VOXEL enables remote work Integrated Remote Operating Centre (IROC) Before In-person, on-site • Effort and risks of travel to mining sites • Data sourced from multiple, separated working systems • Limited access to experts After • New way of working • Integrated data sets and expert access Digitally
Slide 33: Digital Transformation
Digital Transformation Sustainability Value Growth Efficiencies Technology People Process Technology Training and Processes provide the infrastructure that provides the tools support provides empowers a new way of working the skills Data transparency Data & Digital Foundations Data sharing reated fr
Slide 34: FutureSmart Mining integrates technology & sustainability
FutureSmart Mining™ integrates technology & sustainability Anglo American 34
Slide 35: Concentrating the Mine: Bulk ore sorting
oncentrating the Mine™: Bulk ore sorting Overview • Early rejection of waste increases plant grades and metal output Key benefits example – Mogalakwena • Reduces energy and water intensity • Mass reject 5% - 20% • Delivery in 2021 Rollouts • Barro Alto 2021/2022 • Los Bronces 2021-2023 • Other sites
Slide 36: Concentrating the Mine: Coarse particle recovery
oncentrating the Mine™: oarse particle recovery Overview • Increased throughput by recovering metal at larger particle sizes • An enabler for hydraulic dry stacking Key benefits example – Quellaveco • 10-20% less energy and wet tailings • Up to 85% water recovery with hydraulic dry stack • Up to 4%
Slide 37: Concentrating the Mine: Hydraulic dry stacking
oncentrating the Mine™: Hydraulic dry stacking Overview • Low cost, safe, geotechnically stable dry tailings Key benefits • Eliminate risk of liquefaction • Increased water recovery ~ 85% • Can be repurposed, benefiting host communities and biodiversity Rollouts • El Soldado demonstration 2021 • Tog
Slide 38: Hydrogen truck and plant
Hydrogen truck and plant Mogalakwena update • Hydrogen plant and solar P ready at Mogalakwena Q4 2021 • Scale up to 2024, with expected electrolyser capacity above 100 megawatts Key benefits • Potential to eliminate 46% of diesel related GHG emissions equivalent to 1MtCO2e pa • Enables new local ec
Slide 39: Concentrating the Mine: Microwave
oncentrating the Mine™: Microwave Overview • Use microwave energy to precondition ores, increasing throughput and recovery Key benefits • Reduces energy and water intensity • Hardness reduction in ores, Pt 5%-25%, Cu 8%-12% Rollouts • Los Bronces, Mogalakwena, Collahuasi and Quellaveco • Further imp
Slide 40: Speed of innovation to value
Speed of innovation to value Accelerators of value • Accelerated development methods • Risk managed approach • Agile deployment methods compress rollout time • Modular concepts • Implement and improve, using Anglo American Operating Model and P101 Benefits • Time to value reduced from 15-20 to 2-5 y
Slide 41: The carbon neutrality challenge offers a new mining landscape
The carbon neutrality challenge offers a new mining landscape 0.2 2019 Emissions Overview Baseline (Mt CO2e) Other • Strong, market-leading carbon neutrality agenda announced in 2020 0.3 • 3 main sources of GHG emissions provides focused effort • Innovations, technical solutions and viability analys
Slide 42: A multi-faceted pathway to carbon neutrality
A multi-faceted pathway to carbon neutrality Our carbon neutrality strategy focuses on 6 levers which, when connected, provide the architecture for a zero carbon future 1 Renewable energy generation 4 Methane capture Developing a supply of renewable power generation to deliver Leveraging developing
Slide 43: Initial progress is on track for critical emissions areas
Initial progress is on track for critical emissions areas In South America, all electricity supply is now contracted through competitive Power Purchase Agreements (PPAs), with offtake In Australia, planning under way phased for Quellaveco ramp-up by to convert electricity supply to 2022 renewables V
Slide 44: Technical innovation unlocks optionality
Technical innovation unlocks optionality Carbon Neutrality VOXEL Energy & APC Strategy Bulk Ore Sorting Hydrogen Truck Hydraulic Anglo American CPR P101 Dry Stack44
Slide 45: An integrated view of value for the Group
An integrated view of value for the Group NPV of 10 Assets 30% - 50% potential uplift P101 (Asset Optimisation) and Digitalisation Conventional Expansion Technology Development 2020 Further upside Anglo American 45
Slide 46: Q&A: Our investment proposition
Q&A Our investment proposition… Competitive Differentiated Sustainable Assets Capabilities Returns “Leading capabilities actively improving a competitive, world-class asset base to drive sustainable, attractive returns” To ask a question, please dial: UK +44 (0) 2071 928338 / SA 0800 014552 / US 1 8
Slide 47: Thank you
AngloAmerican Thank you Anglo American
Slide 48: Appendix
Appendix Anglo American 48
Slide 49: Progress on 2017-2022 EBITDA improvement target
Progress on 2017-2022 EBITDA improvement target Anglo American Technology & Innovation Operating Model & P101 On track – majority of 2.0 On track ✓ ~1.0 ✓ benefits expected 2021/22 ~1.5 0.3 0.8 $3-4bn 0.2 2017-2022 Gross Net improvement1 Gross Net improvement improvement improvement ~1.5 Project del