Anglo American plc · LSE:AAL
Anglo American — Conference Presentation (November 2006)
13 slides from Anglo American's conference presentation, Nov 15, 2006
Slide 1: China and global mining challenges
China and global mining challenges Speech by Sir Mark Moody-Stuart Chairman, Anglo American plc 15 November 2006 Beijing
Slide 2: Agenda
AGENDA • Introduction to Anglo American • Anglo American in China • China’s growing influence on mining and metals • Global challenges for mining’s licence to operate
Slide 3: Anglo American plc
Anglo American plc Platinum Gold Diamonds Coal Base Metals Industrial Paper and Ferrous 74.8% 42% 45% 100% 100% Minerals Packaging Metals of Anglo AngloGold De Beers 100% 100% 100% Platinum Ashanti
Slide 4: Anglo American in China
Anglo American in China AngloGold Anglo Ashanti’s Coal’s exploration JV Xiwan JV Beijing Representative Office AngloGold Ashanti’s exploration JV with Tarmac and Mondi Dynasty offices Tarmac’s Quarry Anglo Platinum’s exploration JV De Beers Sales and Marketing Office
Slide 5: Tarmac
Tarmac Yang Quarry, Huzhou, Zhejiang Province • Yang Quarry set up in 2003, formerly operated by five local businesses and each year between 12 and 15 people were killed • Investment of $24m, capacity is 3 Mt of aggregate • Production started Jan 2006 and now at 1.4 Mt
Slide 6: Anglo Coal
Anglo Coal Xiwan Coal to Chemical project - Shaanxi • CJV formed with Shaanxi Coalfield Geology Bureau • Coal to gas, power and chemicals • Completed pre – feasibility and now on feasibility study • Investment ~ US$4 billion, start date about 2009
Slide 7: China's Share of World First-use Metals Consumption
Copper 50 China's Share of World 40 First-use Metals Consumption in 1994, 2005 and 2010e (%) 30 Nickel Zinc Note: Fe ore is sea-borne. 20 Ni includes Ni content of stainless imports. 10 Source: MSU, WBMS, INSG, Macquarie (Fe Ore, Steel and Al). 0 1994 2005 2010 Aluminium Fe Ore (traded) MSU - AngloB
Slide 8: Global yearly consumption of new platinum for jewellery
Global yearly consumption of new platinum for jewellery 3000 Europe Others US 2500 China Japan 2000 1500 1000 500 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 est 2003 2004 2005
Slide 9: Global Challenges for Mining Companies
Global Challenges for Mining Companies • Growing community assertiveness • Ensuring community access to ‘fair share’ of benefits • Adoption of IFC Performance Standards • Equator Principles banks • International Council on Mining and Metals – Resource Endowment Project
Slide 10: Raising Standards through Voluntary Initiative
Raising Standards through Voluntary Initiative • Extractive Industries Transparency Initiative • Kimberley Process • Voluntary Principles on Security and Human Rights • Global Reporting Initiative
Slide 11: Climate Change
Climate Change • Key global challenge • Kyoto – ‘common but differentiated responsibilities’ • Energy efficiency • Potential for Chinese leadership in carbon efficient technologies
Slide 12: Climate Change and Anglo American
Climate Change and Anglo American • Big energy consumer (equivalent of Chile) • Energy efficiency target (12% improvement by 2014) • Biofuels • 4 Clean Development Mechanism project • Carbon Capture and Storage (Monash, Australia) • FutureGen zero emissions generation project • Xiwan clean coal proj
Slide 13: Conclusion
Conclusion • China is transforming mining and metals sector – Impact on commodity markets – Desire for security of supply – Major Chinese companies emerging as competitors and partners • Common challenges for all mining companies – Defining limits to corporate responsibilities – Addressing indirect
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