Anglo American Plc · LSE:AAL

Anglo American — Global Iron Ore & Steel Forecast (March 2012)

23 slides from Anglo American's conference presentation, Mar 20, 2012

  1. Slide 1: Anglo American Iron Ore: Quality & Volume

    ANGLO AMERICAN IRON ORE QUALITY & VOLUME James Harman - Head of Business Development, Iron Ore and Coal Global Iron Ore & Steel Forecast 20 March 2012 Perth, Australia

  2. Slide 2: Disclaimer

    DISCLAIMER Disclaimer This presenta,on has been prepared by Anglo American plc (“Anglo American”) and comprises the wri;en materials/slides for a presenta,on concerning Anglo American. By a;ending this presenta,on and/or reviewing the slides you agree to be bound by the following condi,ons. This pre

  3. Slide 3: Anglo American Overview

    ANGLO AMERICAN OVERVIEW

  4. Slide 4: To Be the Leading Global Mining Company

    TO BE THE LEADING GLOBAL MINING COMPANY Key Corporate office Representa,ve offices Pla,num Diamonds Copper Nickel Iron ore and Manganese Metallurgical Coal Thermal Coal 4

  5. Slide 5: Delivering Real & Sustainable Value

    DELIVERING REAL & SUSTAINABLE VALUE Productivity continues to improve Optimised and simplified portfolio Improving cost positions with optimisation initiatives 2011 Underlying Earnings % Export Export Hard Copper Nickel Platinum 2% Iron Ore Coking Coal Longwall cutting hours – Grasstree 100% 100 +28

  6. Slide 6: Financial Overview

    FINANCIAL OVERVIEW Underlying EPS ($) Key financials 2.14 4.13 5.06 ($bn) 2011 2010 change EBITDA 13.3 12.0 11% Operating profit 11.1 9.8 14% Effective tax rate 28.3% 31.9% Underlying earnings 6.1 5.0 23% Capex (1) 5.8 5.0 15% Net debt 1.4 7.4 (81%) H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 Re

  7. Slide 7: Our View of the Global Economy

    OUR VIEW OF THE GLOBAL ECONOMY

  8. Slide 8: Long Term Demand Growth Remains Healthy

    LONG TERM DEMAND GROWTH REMAINS HEALTHY Chinese Regional Urbanisation(1) 2009 China’s expected growth 2010 to 2018 Heilongjiang Truck output 100% Jilin Inner Mongolia Liaoning Xinjiang Huang River Beijing Car output 85% Tianjin Hebei Shanxi Qinghai Shandong Ningxia Gansu Jiangsu Urban floor space 84

  9. Slide 9: Anglo American Iron Ore

    ANGLO AMERICAN IRON ORE

  10. Slide 10: Anglo American Has a Unique Iron Ore Footprint

    ANGLO AMERICAN HAS A UNIQUE IRON ORE FOOTPRINT 2 Thabazimbi Amapá State 2 1 Kolomela Sishen Mine and Minas Gerais State Santana Port 1 Saldanha Port 525km Slurry Pipeline Açu Rio de Janeiro State Port Kumba Iron Ore Minas-Rio Amapá 2011 Production 43.5 Mt Target Prod. (Phase 1) 26.5 Mtpa 2011 Produc

  11. Slide 11: Current Export Operations: South Africa - Sishen

    ANGLO AMERICAN'S CURRENT EXPORT OPERATIONS South Africa - Sishen • Kumba Iron Ore (KIO) (majority owned by Anglo American) • Northern Cape province of South Africa • One of the largest open-­‐pit mines in the world • Produced 39 Mt in 2011 • Very high quality lump ore with outstanding physical prope

  12. Slide 12: Current Export Operations: South Africa - Kolomela

    ANGLO AMERICAN'S CURRENT EXPORT OPERATIONS South Africa - Kolomela • Successfully commissioned in 2011 – 5 months ahead of schedule • Produced 1.5 Mt in 2011 • Forecast to produce 4-­‐5 Mt in 2012 • At full capacity the mine will deliver 9 Mtpa of high quality seaborne iron ore • Expected to operate

  13. Slide 13: Current Export Operations: Brazil - Amapá

    ANGLO AMERICAN'S CURRENT EXPORT OPERATIONS Brazil - Amapá • Located in Amapá state, in North-­‐East Brazil • Fully integrated operaSon uSlizing shovel and truck, beneficiaSon and rail to the Amazon port of Santana • Produced 4.8 Mt of iron ore in 2011 13 Source: Anglo American

  14. Slide 14: Iron Ore Growth Story: Brazil - Minas-Rio

    ANGLO AMERICAN'S IRON ORE GROWTH STORY Brazil – Minas-Rio • One of the world’s largest mining projects • Acquired by Anglo American in 2007-­‐2008 • Tier 1 asset • Situated in an established iron ore mining area of Brazil • 5.8 Bt resource • Integrated mine, pipeline and port operaSons • Extremely h

  15. Slide 15: Minas-Rio: Pipeline and Port

    ANGLO AMERICAN'S IRON ORE GROWTH STORY Brazil – Minas-Rio PIPELINE PORT • IniSal underground 26 inch diameter slurry • 100% owned by LLX Minas-­‐Rio – 49% Anglo pipeline with 26.5Mtpa capacity American; 51% LLX SA • Well-­‐tested logisScs method in Brazil built by • Anglo American managing port cons

  16. Slide 16: Minas-Rio Development Progress

    ANGLO AMERICAN'S IRON ORE GROWTH STORY Brazil – Minas-Rio • Key components advancing for FOOS H2 2013 • Significant progress with licenses and permits • Engineering and major equipment purchases substanSally completed • BeneficiaSon plant – earthworks almost complete; civil works well advanced • Pipel

  17. Slide 17: Iron Ore Assets Potential to Exceed 150 Mtpa

    ANGLO AMERICAN'S IRON ORE GROWTH STORY Anglo American’s iron ore assets have the potential to produce in excess of 150mtpa of high quality iron ore • Projects currently in implementation or approved will result in ~80 Mtpa production: South Africa ü Sishen ü Thabazimbi ü Kolomela ü Sishen Expans

  18. Slide 18: A Unique Product Portfolio

    A UNIQUE PRODUCT PORTFOLIO

  19. Slide 19: Iron Ore – A Quality Proposition

    ANGLO AMERICAN IRON ORE – A QUALITY PROPOSITION Minas-Rio is a high grade, low contaminant expandable resource 10% Do;ed bubble indicates processed ore Bubble size indicates an average produc,on of 50 Mtpa 8% Australia -­‐ high quality India Other Africa CIS Alumina + silica content 6% Australia -­‐

  20. Slide 20: Iron Ore – Quality Portfolio

    ANGLO AMERICAN IRON ORE – QUALITY PORTFOLIO Type Products / CharacterisScs Benefits Kumba Premium Lump: Fe – 66.3% /Al2O3 – 1.2%/SiO2 – 2.8% Lowest US in the Market Lumps Kumba Standard Lump : Fe – 64.5% /Al2O3 – 1.5%/SiO2 – 4.8% Very low RDI / Low US Kumba Premium Fines : Fe – 64.2% /Al2O3 – 1.8%/Si

  21. Slide 21: Positioned for Growth

    POSITIONED FOR GROWTH

  22. Slide 22: Inorganic Growth

    INORGANIC GROWTH Unique iron ore geographic footprint in Brazil and South Africa. Examining potenSal value adding, high quality iron ore opportuniSes across the globe. 22 Source: Anglo American

  23. Slide 23: Conclusions

    CONCLUSIONS • Iron ore has a strong future • Large, geographically diverse footprint • Rapidly growing production of high quality iron ore • Examining high quality, inorganic growth

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