Anglo American Plc · LSE:AAL
Anglo American — H1 2018 Earnings Presentation
76 slides from Anglo American's earnings presentation, Jul 26, 2018
Slide 1: 2018 Interim Results
2018 INTERIM RESULTS 26 July 2018 Copper – Quellaveco
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: Interim Results Agenda
INTERIM RESULTS AGENDA 1. Business Performance Mark Cutifani 2. Financial Results Stephen Pearce 3. Capital Allocation Mark Cutifani 3. Building on Firm Foundations Mark Cutifani 3
Slide 4: Business Performance
BUSINESS PERFORMANCE Mark Cutifani Platinum – Mogalakwena
Slide 5: H1 2018 – Continued Delivery
H1 2018 – CONTINUED DELIVERY Operating performance Earnings and cash flow Margins and returns Production volumes1 EBITDA3 EBITDA margin5 6% $4.6bn 41% Cost & volume improvements2 Attributable free cash flow4 ROCE6 $0.4bn $1.6bn 19% 5
Slide 6: Safety, Health & Environment
SAFETY, HEALTH & ENVIRONMENT Safety Health Environment Group TRCFR7 Fatalities Occupational health – new cases8 Major incidents9 15 203 30 4.98 173 11 155 4.14 9 108 15 6 6 96 5.49 3.78 3.46 2 6 2.62 26 4 4 2 2013 2014 2015 2016 2017 H1 2013 2014 2015 2016 2017 H1 2013 2014 2015 2016 2017 H1 2018 20
Slide 7: Productivity Improvement Continues
PRODUCTIVITY IMPROVEMENT CONTINUES Copper equivalent production and productivity10,11 2012 to H1 2018 Productivity10 200 180 160 182 82% 140 120 Production Volumes11 100 80 60 108 8% 40 2012 2013 2014 2015 2016 2017 H1 2018 annualised Number of assets10 Copper equivalent Production Index11 47% Coppe
Slide 8: A Compelling Asset Example - Mogalakwena
A COMPELLING ASSET EXAMPLE - MOGALAKWENA Mining Concentrating Value enhancing Shovel loading rate (tonnes / hr) Tonnes milled (million) PGM ounces (‘000 ounces) +34% +35% +60% 34% 35% 60% 2,322 14.0 1,100 1,150 126 1,727 10.4 6.9 6.9 721 5.8 6.3 509 5.0 89 H1 2018 vs 2012 2018e vs 2012 2018e vs 2012
Slide 9: An Improved Competitive Position
AN IMPROVED COMPETITIVE POSITION Group: 46th percentile 52nd percentile 2018 2013 2018 2013 Copper 2018 2013 Met Coal 2018 2014 Diamonds (De Beers) 2018 2013 Platinum 2018 Nickel 2013 2013 2018 Thermal Coal 2013 2018 Iron Ore Cost curve position Q1 Q2 Q3 Q4 9
Slide 10: Performance & Upgraded Portfolio Drive Margins
PERFORMANCE & UPGRADED PORTFOLIO DRIVE MARGINS +11pp Mining EBITDA margin5 (%) Uplift to mining margin5 since 2012 from Operating Model, portfolio upgrade and Marketing 5-10pp ~50% +11pp 41% Further… 30% 5-10pp Uplift to be achieved through: • Operational Efficiency (1-5 years) • Innovation and Tech
Slide 11: Financials
FINANCIALS Stephen Pearce Copper – Collahuasi
Slide 12: H1 2018 – Continued Delivery
H1 2018 – CONTINUED DELIVERY EBITDA3 Underlying EPS14 Free cash flow4 $4.6bn $1.23/sh $1.6bn up 11% vs H1 2017 up 4cps vs H1 2017 up 23% after one-offs Capital expenditure13 Net debt Dividend $1.2bn $4.0bn 49c/sh $2.6-2.8bn expected for FY18 down $0.5bn vs FY 2017 40% of underlying earnings 12
Slide 13: Continued Delivery of Improvements
CONTINUED DELIVERY OF IMPROVEMENTS EBITDA variance: H1 2018 vs. H1 2017 ($bn) 0.8 PGMs (0.2) (0.2) Copper (0.3) 0.4 Thermal 108 Coal Other 4.6 4.6 4.1 H1 2017 Price15 Currency Inflation16 Minas-Rio Cost & H1 2018 volume2 13
Slide 14: $4.6bn Cost & Volume Improvement Delivered
$4.6BN COST & VOLUME IMPROVEMENT DELIVERED …the next $3-4bn Operational Efficiency Technology and Innovation Project Delivery ~$1.5bn ~$1.0bn ~$1.5bn 1-5 years 3-5 years 3-5 years Benchmark and beyond Concentrated Mine Quellaveco (Copper) Amandelbult turnaround Digitally Intelligent Mine Moranbah-Gr
Slide 15: Continued Growth in Earnings and Returns
CONTINUED GROWTH IN EARNINGS AND RETURNS Underlying EPS ($bn) Return on capital employed6 (%) 3% 6% 1.19 1.23 19% 18% H1 2017 H1 2018 H1 2017 H1 2018 15
Slide 16: Strong Free Cash Flow Generation Continues
STRONG FREE CASH FLOW GENERATION CONTINUES Attributable Free Cash Flow4 ($bn) 2.7 H1 2017 items not repeated in H1 2018 incl. lower capex, tax +23% and dividends to minorities 1.6 1.3 H1 2017 H1 2018 16
Slide 17: A Resilient Balance Sheet
A RESILIENT BALANCE SHEET Net debt17 ($bn) Net debt / EBITDA Gearing ratio18 36% y-o-y 42% y-o-y 37% y-o-y 6.2 0.8x 19% 4.5 13% 4.0 0.5x 12% 0.4x H1 2017 FY 2017 H1 2018 H1 2017 FY 2017 H1 2018 H1 2017 FY 2017 H1 2018 (annualised) (annualised) 17
Slide 18: Delivering Returns to Shareholders
DELIVERING RETURNS TO SHAREHOLDERS H1 2018 dividend Payout per share Committed to payout policy $630m 49c 40% $1.9bn returned since +2% vs H1 2017 of underlying earnings H1 2017 18
Slide 19: Deleveraging and Dividend Sustainability
DELEVERAGING AND DIVIDEND SUSTAINABILITY Capital allocation framework19 H1 2018 • Attributable free cash flow of $1.6bn 1.8 • Add back discretionary spend Cash flow Discretionary after capital sustaining options capital • Reduced net debt by $0.5bn • Paid final dividend of $0.7bn (1.7) • Other adjus
Slide 20: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Mark Cutifani De Beers – SS Nujoma
Slide 21: Portfolio – Asset Quality Focus
PORTFOLIO – ASSET QUALITY FOCUS Longer term positioning Quality asset focus Exceptional resource endowment High quality growth opportunities Copper Long life, low cost assets Los Bronces, Collahuasi & Quellaveco Discretionary Capital Diamonds Industry leader with diversification Capacity to respond
Slide 22: Continued Portfolio Upgrade in H1 2018
CONTINUED PORTFOLIO UPGRADE IN H1 2018 PGMs Diamonds Copper Thermal Coal repositioning (De Beers) Quellaveco Union sold Eskom-tied mines Lightbox approval & sold syndication BRPM sale Offer for Peregrine New Largo project Mototolo sale acquisition 22
Slide 23: Quellaveco: A World Class Copper Project
QUELLAVECO: A WORLD CLASS COPPER PROJECT Copper - Quellaveco
Slide 24: Quellaveco – A World Class Copper Project
QUELLAVECO – A WORLD CLASS COPPER PROJECT Attractive returns… …for a world class copper project IRR Low cost Q1 on cost curve >15% Long life Real, post-tax Significant Large scale potential ROCE Endowment upside >20% Capital Average over first 10 years Successful syndication discipline Permitted Pay
Slide 25: Execution Ready
EXECUTION READY Strong local support, key permits in place Target construction schedule of <4 years Community support Land access 26 Dialogue Table commitments ~$300m • Secured 100% of land access for mine / plant • All 5 family relocations successfully completed Community investment River diversion
Slide 26: Successfully Syndicated with Mitsubishi Corp
SUCCESSFULLY SYNDICATED WITH MITSUBISHI CORP Consideration22 Implied NPV Anglo American ownership $600m $2.74bn 60% $500m upfront, $100m contingent for 100% of the project from 82%, reducing capex and risk Syndication confirms the world-class quality of the asset • Raises Mitsubishi stake from 18.1%
Slide 27: Attractive Returns Profile
ATTRACTIVE RETURNS PROFILE Robust financial returns on project capex of $5.0-5.3bn IRR23 ROCE Payback period >15% >20% 4 years Real, post-tax Average over first 10 years From first production in 2022 EBITDA margin Construction capex 2018 construction capex24 >50% $2.5-2.7bn ~$0.4bn Average over firs
Slide 28: Competitive Cost Curve Position
COMPETITIVE COST CURVE POSITION Quellaveco improves our cost position C1 cash cost 2018 Copper C1 cash cost curve25 $1.05/lb Q1 Q2 Q3 Q4 Average over first 10 years Quellaveco will improve AA Copper’s Quellaveco position on cost curve Structural cost advantages • Low strip ratio • Efficient & short
Slide 29: The Start of the Resource Journey
THE START OF THE RESOURCE JOURNEY Favourable mineralisation characteristics 4,000m above sea level Mineralisation open at depth, and to north & south Cuajone Quellaveco Toquepala Neighbouring mines operating >40 yrs & 2-3x deeper26 2,000m above sea level Quellaveco at start of its resource journey R
Slide 30: Building on Firm Foundations
BUILDING ON FIRM FOUNDATIONS Mark Cutifani De Beers – Gahcho Kué
Slide 31: Portfolio: Long Life with Optionality
PORTFOLIO: LONG LIFE WITH OPTIONALITY A unique endowment Longer term asset optionality 2017 average asset life28 Los Bronces UG, Collahuasi Copper 30 years & Sakatti Diamonds Jwaneng, Orapa (De Beers) & Marine Namibia Average life28 (years) Mogalakwena, Amandelbult PGMs & Mototolo 30 30 Aquila, Mora
Slide 32: Resource Discovery: Pathway to Value
RESOURCE DISCOVERY: PATHWAY TO VALUE Geographies Innovation New search spaces - FutureSmart Mining™ can Frontier & undercover unlock value District-scale positions (1,000 to >10,000km2 ) Rapid implementation of concepts and tools Agility Value Focus Discovery Operating Strong cash generation Model p
Slide 33: Prospective Districts in Diversified Geographies
PROSPECTIVE DISTRICTS IN DIVERSIFIED GEOGRAPHIES Australia Cu Sakatti Mt Isa South, >7,000km2 under application Peregrine Brazil Cu-Au Uniao Uniao, >19,000km2 under application, Ecuador Zambezi West Corcapunta Quellaveco Los Bronces Mogalakwena Ecuador Cu-Au Mt Isa South Securing prime position, >80
Slide 34: Asset Quality: Differentiated Portfolio
ASSET QUALITY: DIFFERENTIATED PORTFOLIO Revenue by product29 Capital employed by geography29 Nickel and Manganese Other 7% 4% PGMs Australia Thermal coal 18% 8% 14% Brazil 25% Diamonds Met coal (De Beers) 17% 22% Chile, Peru & Colombia Iron ore 19% South Africa 9% Copper 26% Namibia & 14% Botswana 1
Slide 35: Portfolio Positioned for a Changing World
PORTFOLIO POSITIONED FOR A CHANGING WORLD Electrification A Greener Growing and Innovation World Middle Class ~1Mt copper ~37Mct diamonds (De Beers) ~5Moz PGMs ~70Mt high grade iron ore ~21Mt premium coking coal ~30Mt export thermal coal ~75kt nickel and ~3.5Mt manganese 35
Slide 36: Potential Turned into Delivery
POTENTIAL TURNED INTO DELIVERY Assets Capabilities Returns Quality Operating Model Strong balance sheet Diversification Innovation and Capital discipline sustainability Growth Marketing Sustainable dividend “World class assets & leading capabilities to deliver a world class business” 36
Slide 37: Footnotes
FOOTNOTES 1. Copper equivalent production is normalised for Bokoni being placed on care and 13. Cash expenditure on property, plant and equipment including related maintenance, and the suspension of operations at Minas-Rio. De Beers production derivatives, net of proceeds from disposal of property,
Slide 38: Appendix
APPENDIX De Beers - Forevermark
Slide 39: Production Outlook
PRODUCTION OUTLOOK Units 2016 2017 2018F 2019F 2020F Diamonds1 Mct 27.3 33.5 34-36 ~32 ~32 Copper2 Kt 577 579 630-6603 600-660 600-660 Platinum4 Moz 2.4 2.4 2.4-2.45 ~2.05 ~2.05 (Previously 2.3-2.4) Palladium4 Moz 1.5 1.6 1.5-1.6 1.3-1.45 1.3-1.45 Iron ore (Kumba)6 Mt 41 45 43-44 44-45 44-45 (Previo
Slide 40: Unit Cost Performance by Business Unit
UNIT COST PERFORMANCE BY BUSINESS UNIT De Beers (US$/ct)1 Copper (C1 USc/lb) Platinum (US$/Pt oz)2 Kumba (FOB US$/t)3 6% -3% +10% +15% 63 67 <70 147 142 ~145 1,443 1,591 <1,600 31 35 ~35 2017 H1 2018 2018F 2017 H1 2018 2018F 2017 H1 2018 2018F 2017 H1 2018 2018F Minas-Rio (FOB US$/t)4 Met Coal (US$/
Slide 41: Earnings Sensitivities – H1 2018
EARNINGS SENSITIVITIES – H1 2018 Impact of 10% change Sensitivity Analysis – H1 20181 in price / FX Commodity / Currency 30 June spot Average realised EBITDA ($m) Copper(c/lb) 301 297 2092 Platinum ($/oz) 851 932 62 Palladium ($/oz) 953 1,005 51 Rhodium ($/oz) 2,250 1,938 12 Iron Ore ($/t) 64 69 152
Slide 42: De Beers – Strong Production Performance
DE BEERS – STRONG PRODUCTION PERFORMANCE Average Realised Underlying EBITDA Sales Production1 Unit cost2 Capex3 price index price EBITDA margin (Cons.) H1 2018 17.5Mct 123 $162/ct $67/ct $712m 22% $156m 17.8Mct4 vs. H1 2017 #8% #2% #4% #6% $9% $3pp #111% $3% Underlying EBITDA ($m) 786 16 (6) 776 (20
Slide 43: Copper – Strong Operational Performance with Support from Price
COPPER – STRONG OPERATIONAL PERFORMANCE WITH SUPPORT FROM PRICE Underlying EBITDA Production Realised price C1 unit cost Capex Sales EBITDA margin¹ H1 2018 313kt 297c/lb 142c/lb $966m 52% $368m 306kt vs. H1 2017 #10% #13% $4% #65% #12pp #64% #18% Underlying EBITDA ($m) (17) 94 (22) 865 24 (19) 320 9
Slide 44: PGMs – 85% Improvement to EBITDA
PGMS – 85% IMPROVEMENT TO EBITDA Realised Underlying EBITDA Production1 Unit cost2,3 Capex Pt sales5 Headcount Basket price2 EBITDA margin4 H1 2018 1,233 koz $2,318/oz $1,591/oz $511m 30% $216m 1,117 koz 23,100 vs. H1 2017 #4% #26% #5% #85% #11pp #71% - $19% Underlying EBITDA ($m) 511 (110) 11 44 26
Slide 45: Kumba Iron Ore – Production Increased by 3%
KUMBA IRON ORE – PRODUCTION INCREASED BY 3% Realised price Unit cost Gross cash Underlying EBITDA Production Capex (FOB)1 (FOB) margin ($/t) EBITDA margin H1 2018 22.4Mt $69/t $35/t $34/t $574m 36% $138m vs. H1 2017 #3% $3% #9% $13% $18% $7pp #70% Underlying EBITDA ($m) 700 (60) (48) 556 574 (36) 24
Slide 46: Minas-Rio Operations Suspended Following Pipeline Leaks
MINAS-RIO OPERATIONS SUSPENDED FOLLOWING PIPELINE LEAKS Realised price Unit cost Gross cash Underlying EBITDA Production Capex1 Sales (FOB) (FOB) margin ($/t) EBITDA margin H1 2018 3.2 Mt (wet) $70/wmt nm nm $(74)m nm $15m 3.2Mt vs. H1 $64% #6% nm nm nm nm nm $63% 2017 Underlying EBITDA ($m) 291 26
Slide 47: Metallurgical Coal – Strong Operational Performance
METALLURGICAL COAL – STRONG OPERATIONAL PERFORMANCE Metallurgical Underlying FOB realised price2 Unit cost3 EBITDA margin Capex production1 EBITDA H1 2018 10.8Mt $194/t $66/t $1,157m 55% $219m vs. H1 2017 #17% #1% #3% #23% #2pp #42% Underlying EBITDA ($m) 22 (15) 84 1,157 110 12 (13) 956 943 14 H1 2
Slide 48: Thermal Coal – SA and Colombia – Higher Prices Drive EBITDA
THERMAL COAL – SA AND COLOMBIA – HIGHER PRICES DRIVE EBITDA Underlying Export prod. FOB price1 Unit cost2 EBITDA margin3 EBITDA SA Capex SA / Col SA / Col SA / Col SA / Col SA / Col H1 2018 8.8Mt / 5.2Mt $88/t / $79/t $48/t / $35/t $341m / $190m 36% / 46% $87m vs. H1 2017 $9% / 0% #22% / #11% #17% /
Slide 49: Nickel – Stronger Prices Boost EBITDA
NICKEL – STRONGER PRICES BOOST EBITDA Realised C1 unit Underlying EBITDA Production1 Capex Sales1 price cost2 EBITDA margin H1 2018 19.4kt 632c/lb 378c/lb $88m 31% $15m 20.1kt vs. H1 2017 $8% #43% #4% #487% #24pp #114% $3% Underlying EBITDA ($m) (5) 101 8 (1) (1) (11) 83 15 88 H1 2017 Price FX Infla
Slide 50: De Beers: The World's Leading Diamond Business
DE BEERS: THE WORLD’S LEADING DIAMOND BUSINESS Best-in-class business Consumer focused product Lightbox EBITDA mining margin1 Global demand Rest of world ~55% India USA Gulf China Trading business delivering Diversified customer base2 stable margins Other gifts Bridal Clarity for consumers ~8% Femal
Slide 51: Asset Focused PGM Strategy
ASSET FOCUSED PGM STRATEGY The world’s leading PGM business European diesel only ~20% of platinum demand1 $2,887/oz European light duty autocats 1. Mogalakwena Other ~20% Base metals Industrial & other ~30% 52% Palladium Platinum Other autocats H1 2018 margin ~20% Basket price Jewellery ~30% 2. Aman
Slide 52: Positioned Well for Structural Changes in the Steel Industry
ANGLO AMERICAN POSITIONED WELL FOR STRUCTURAL CHANGES IN THE STEEL INDUSTRY H1 2018 average Fe content (%) – peer comparison Focus on premium products 66.7 Kumba production 64.1 64.5 60.8 60.7 64.5%Fe of which two thirds is lump 57.7 Peer 1 Peer 2 Peer 3 Peer 4 Kumba Minas-Rio Minas-Rio production W
Slide 53: Minas-Rio Update
MINAS-RIO UPDATE 525km pipeline • Clean up work complete • Pipeline scan underway • Constructive engagement with authorities ongoing • 4km pipeline section to be replaced as a precaution • Re-start expected late 2018 • FY 2018 expected EBITDA: negative $300m - $400m 53
Slide 54: Debt Maturity Profile at 30 June 2018
DEBT MATURITY PROFILE AT 30 JUNE 2018 Debt repayments ($bn) at 30 June 2018 1.9 1.4 1.4 1.2 1.1 0.8 0.7 0.7 0.5 0.5 H2 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Euro Bonds US$ Bonds Other Bonds Subsidiary Financing % of portfolio 55% 33% 8% 4% Capital markets 96% Bank 4% US bonds Euro b
Slide 55: Quellaveco
QUELLAVECO Copper - Quellaveco
Slide 56: South Peru – An Established Mining Region
SOUTH PERU – AN ESTABLISHED MINING REGION Located in mining-friendly South Peru, 34 kms from the city of Moquegua Fastest growing copper producing region in Peru Hosts many of the world’s foremost mining companies Established infrastructure Skilled workforce Investor friendly framework Investment gr
Slide 57: Overview
OVERVIEW Plant Conventional concentrator plant: two production lines, each with one Titire Weir SAG and one ball mill. (water source, Initial throughput of 127.5ktpd, with potential to increase in early years. >4,500m elevation) Plans for low capital intensity expansion to 150ktpd, post ramp-up. Viz
Slide 58: High Quality Concentrate
HIGH QUALITY CONCENTRATE Quality of concentrate offers marketing advantages Arsenic content benchmarking 6,000 • High grade copper concentrate with low impurities 5,500 Import limit 5,000 • Clean concentrate with exceptionally low arsenic levels into China 4,500 Arsenic content (parts per million) •
Slide 59: Financial Modelling
FINANCIAL MODELLING Ownership Anglo American 60%, Mitsubishi 40%, once syndication complete Accounting treatment Fully consolidated with a 40% minority interest. Shareholder loans from minority shareholder to be consolidated in Anglo American Group net debt. Project capex (nominal) $5.0-5.3 billion
Slide 60: Outlook for Copper Demand Remains Robust
OUTLOOK FOR COPPER DEMAND REMAINS ROBUST 44 Industrial 33 36 Transport – Electric Vehicles and associated charging infrastructure 30 31 Consumer & – Build out of renewable energy generating capacity and distributed power, e.g, in China Other1 – Increased power generation capacity and construct
Slide 61: Supply Outlook for Copper Appears Constrained
SUPPLY OUTLOOK FOR COPPER APPEARS CONSTRAINED Copper primary supply1 – Resource degradation and long development time for possible new supply Primary demand2 – Most probable projects unlikely to be sufficient longer term Possible Supply – Few additional scale projects/endowments to add signifi
Slide 62: Purpose and Sustainability Framework
PURPOSE AND SUSTAINABILITY FRAMEWORK
Slide 63: Purpose
PURPOSE Anglo American’s Purpose is to: Re-imagine mining to improve people’s lives What mining could be and how we envisage A Purpose is about more than just the work mining in the future. How we think differently we do and the profits we make, it’s about the and innovatively about mining and our e
Slide 64: Trusted Corporate Leader
TRUSTED CORPORATE LEADER Accountability Vision: To transform the relationship between mines, communities and wider society. Policy Advocacy Vision: To take a lead on issues that affect our business in a way that is collaborative and aimed at society’s wider goals. Ethical Value Chains Vision: To be
Slide 65: Thriving Communities
THRIVING COMMUNITIES Livelihoods Vision: Shared, sustainable prosperity in our host communities. Education Vision: For all children in host communities to have access to excellent education and training. Health and well-being Vision: For the SDG targets for health to be achieved in all our host comm
Slide 66: Healthy Environment
HEALTHY ENVIRONMENT Climate change Vision: To operate carbon-neutral mines. Biodiversity Vision. To deliver net positive impact (NPI) across Anglo American through implementing the mitigation hierarchy and investment in biodiversity stewardship. Water Vision. To operate waterless mines in water scar
Slide 67: Choosing to Do the Right Thing
CHOOSING TO DO THE RIGHT THING We are committed to six values which guide how we conduct ourselves We are creating an organisation where all people are treated in such a way that they bring the best of who they are to work. Our values and the way in which we, as individuals, are expected to behave a
Slide 68: Climate Change and Energy
CLIMATE CHANGE AND ENERGY Greenhouse Gas (GHG) emission and savings Energy consumption and savings Million tonnes CO2e % saved Million GJ % saved 7 20 100 15 6 18 80 60 5 10 16 14 40 4 5 12 20 3 0 10 0 2 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 GHG emissions (LHS) % saved against BAU (RHS)(
Slide 69: Water and Environment
WATER AND ENVIRONMENT Water usage Environmental incidents Number of major incidents2 50% of operations in water stressed areas, and 75% located in high water-risk regions. 30 25 Vision to operate waterless mines in water scarce regions. This to 20 primarily done through: 15 10 • Rapid dewatering of
Slide 70: Thermal Coal
THERMAL COAL • Thermal coal will remain a material part of the global energy mix until at least 2040. Fossil fuels will be increasingly contested by society and, as a result, the role of thermal coal will decline, however not right now. • Thermal coal makes up 37% of the global electricity mix1. It
Slide 71: Innovation and Technology
AngloAmerican INNOVATION AND TECHNOLOGY
Slide 72: Concentrate the Mine
CONCENTRATE THE MINE™ Precisely targeting the metal and mineral with less waste, water and energy CHALLENGE Precision mining with minimal energy, water and capital intensity APPROACH Concentrate the mine™ concept: 1. Coarse particle recovery 2. Bulk Sorting COARSE PARTICLE 3. Grade Engineering ™ REC
Slide 73: The Waterless Mine
THE WATERLESS MINE Dry processing without the need for tailings dams CHALLENGE Around 75% of our current portfolio is located in high-water-risk regions APPROACH Coarse particle recovery • Pilot complete at Los Bronces, next unit at El Soldado • Applicability in Platinum Dry tailings disposal focus
Slide 74: The Intelligent Mine
THE INTELLIGENT MINE A smart, connected, learning mine CHALLENGE Predict and shape operational outcomes APPROACH • Predictive maintenance using digital twins • Increased use of AI in exploration and geosciences • Pervasive fibre-optic sensors – real time insights into the process and facilitation of
Slide 75: Modern Mine
MODERN MINE Continuous, hard rock mining for safer, more economic mines Underground testing at our platinum mines 1 2 1. The Rapid Mine Development System (RMDS) Safely excavates low-profile tunnels with rapid access to ore 2. Continuous Haulage System (CHS) A remote controlled system to transfer bu
Slide 76: Modern Mine
MODERN MINE Continuous, hard rock mining for safer, more economic mines CHALLENGE Predict and shape operational outcomes APPROACH • Modernise – Electro-hydraulic drills, gel explosives, no scraper-winches • Mechanise – Remote operated ultra-low- profile equipment • Continuous cutting – Hard rock cut