Anglo American plc · LSE:AAL
Anglo American — Bulks Seminar & Site Visit: Brisbane 2019
14 slides from Anglo American's conference presentation, Nov 12, 2019
Slide 1: Thermal Coal
THERMAL COAL July Ndlovu, CEO Bulks Seminar & Site Visit: Brisbane, 12 November 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: A Focused Export Business
A FOCUSED EXPORT BUSINESS Location of operating assets Opencast mining Underground mining Mozambique Beira Zimbabwe Botswana Khwezela (100% share) Zibulo (73% share) Waterberg Witbank 2 4 5 1 Mafube (50% share) Greenside (100% share) 6 3 South Africa RBCT 1. Khwezela 2. Mafube Durban 3. Isibonelo 4.
Slide 4: Safety Is Our Primary Value
SAFETY IS OUR PRIMARY VALUE Performance Elimination of Fatalities TRCFR1 Fatalities 2.67 2.34 CARING CULTURE PLANNING & LEADERSHIP 1.94 SCHEDULING 1.87 1.77 1.45 1.51 3 3 2 RISK & CHANGE MONITORING & LEARNING MANAGEMENT ASSURANCE ORGANISATION 1 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 Focus area
Slide 5: Key Messages
KEY MESSAGES Continued focus on delivering A responsible transition from equipment efficiencies thermal coal 55
Slide 6: An Integrated Export Business
AN INTEGRATED EXPORT BUSINESS Mining Processing Export Export Coal handling and Richards Bay Coal operations processing facilities Terminal 2 Open pit mines 9 Wash plants ~19Mtpa rail capacity 3 Underground mines ~35Mtpa plant capacity Average energy content 5,500 kcal/kg Domestic operation 1 Open p
Slide 7: Mining Equipment Efficiency: The Key Focus in the Value Chain
MINING EQUIPMENT EFFICIENCY: THE KEY FOCUS IN THE VALUE CHAIN Mining Processing Export Improved efficiencies Focused on optimal use of across continuous miners, 5 out of the top 10 South installed capacity draglines, truck & shovel African continuous miners fleets = c.10% cost base 77
Slide 8: Driving Efficiency Improvements
DRIVING EFFICIENCY IMPROVEMENTS Productivity improvement FOB unit cost – export4 +59% +58% -15% 53 ~45 ~45 17.3 ~17.8 ~17.1 86% 1,183 63% 879 54% 750 Open pit2 Underground3 2012 2019F 2020F 2012 2019F 2023 Target Unit cost ($/t)4 Export sales (Mt) 88
Slide 9: Competitive Cost Curve Position
COMPETITIVE COST CURVE POSITION Will continue to take out high cost production, ensuring our Q1 position FOB Australia, Adjusted US$/t Real 2018 Q1 Seaborne Thermal Coal Exports (Mt) 2018 seaborne cost curve, adjusted for quality, excluding China Inland (Wood Mackenzie) 99
Slide 10: Khwezela Lifex
KHWEZELA LIFEX Navigation pit5 ROCE Payback ~55% ~3 years Production Ramped-up 5.5Mtpa 2020July 10 10
Slide 11: "Business as Usual" to "Sustainable Mining"
FUNDAMENTAL SHIFT: “BUSINESS AS USUAL” TO “SUSTAINABLE MINING” 11 11
Slide 12: Green Engine Initiatives
GREEN ENGINE INITIATIVES Case study 1: Crops Case study 2: Solar PV Irrigation trial at Mafube Colliery Installing solar PV in top-soil deficit areas Collaborative effort with the regulator and Collaborative initiative with Department of Energy, communities to use mine water to irrigate crops and Es
Slide 13: A Responsible Transition
A RESPONSIBLE TRANSITION Over the past 5 years, we have reduced our thermal coal production by half Production Profile (Mtpa) 55 Footprint reduction 50 1 through divestments 45 2 Potential lifex projects 40 Transnet Freight Rail 35 1 renegotiation point 30 25 Current rail & port capacity 20 15 10 2
Slide 14: Footnotes
FOOTNOTES 1. Total Recordable Cases Frequency Rate per million hours. 2. Open pit: Prime earth moving equipment operating equipment efficiency from Isibonelo, Khwezela and Mafube. 3. Underground: Continuous Miner average annual rate (ktpa) per CM for the top 6 (Zibulo). 4. Unit costs relates to trad
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