Copper Mitsubishi Preergsentation

7/26/2019 Copper Mitsubishi Preergsentation

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ANGLO AMERICAN COPPERMITSUBISHI ANALYSTS VISIT9 10 March 2015

Los Bronces mine


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2

AGENDA

Our strategy Hennie Faul CEO 3

Overview of the Copper business,Performance and Outlook

Craig Fish CFO 9

Focus on Los Bronces Juan Carlos Roman VP Operations Sur 16

Quellaveco Hennie Faul CEO 24

Key risks and Sustainabili ty issues Hennie Faul CEO 26

Summary and Outlook Hennie Faul CEO 29


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OUR STRATEGY


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4

THE DIVERSIFIED MINEROur strategy and its component parts

WEARE

ANGLOAMERICAN

HOW WE WORK TOGETHER

OURWORLD

OURAMBITION

HOW WEDELIVER

The Diversified Miner that takes avalues-based approach to business bytogether, creating sustainable value that

makes a real difference to becomepartners in the future

Responding to a changing world in which: Mining remains important, but demand growth and

prices are normalising Anglo American has not delivered on its potential

A business turn-around is needed alongside long-term

continuous improvement and profitable growth

Double our 2014 operatingprof it by 2020 by:

Focusing on core miningassets with long-term valuecreation

Maintaining a highly

competitive mind-set, with

innovation and delivery at the

forefront

Developing critical core skillsto improve our returns

Four strategic imperatives: Deliver Driving Value

Focus the portfolio

Develop core businessprocesses

Create a high performance

culture

Measure progress through aholistic Busin ess Scorecard

The right people in the right roles doing the right work (organisationmodel) and our structured approach for how we set targets, plan, execute

and improve work(operating model)


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5

STRATEGY

Our approach to building performance is simpleand continuous

establish stabilitybuild a foundation for capabilityrealise potential.

Value

Time

STABILITY

CAPABILITY

Realise Potential

Operations

Markets People

Brownfield options

Debottleneck Operating Model

Resource potential

Priority capital options FutureSmartTMinnovation

2013 2016

Build Capability

Establish Stability


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6

PORTFOLIO AND RESOURCE OPTIONALITY

We have focused on Priority 1 opportunities to reshape the portfolio

and we are priori tising our opportunity pipeline.

Los Bronces

Collahuasi

Quellaveco

Priority growth options

Los Bronces District

Quellaveco

Collahuasi further expansion

Portfolio optimisation

Mantos Blancos/Mantoverde

Sale process to commence in H12015

El Soldado/Chagres inconsultation with key stakeholders


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7

A STEP CHANGE IN SUSTAINABILITY PERFORMANCE

Our ambition is spread across three time horizons

We aim to reset global conversations.

20162030+ 2030

Do No Harm

Provide safe andhealthy workplaces

Respect the rights oflocal stakeholders

Honour our licensingcommitments

Net positiveimpact

Change in miningapproach to achievecommunity support

Shared Purpose

Employees are moved torealise our vision

Relationships with businessand social partners

Delivering on all of ourcommitments

FlourishingEcosystems

Competitive companies,communities and countriesall win together

Clean, effective and

efficient mines.

From extractive industry

to development partnerSupport employee

wellbeing

Employ leading

designs and

technology

Work with others to

reshape perception

of mining

To be a valued

part of society

Have a net positive

impact on local

communities

as we believe this work is Mission Critical" in our industry.

Integrated into operating model

Environmental and

social responsibility


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8

KEY CHALLENGES

In looking forward the key challenges are

managing short-term prior ities; delivering long-term value potential.

External environment Prices reverting to marginal costs more quickly than expected

places focus on asset quality.

Operating performance

Continuing positive performance improvements

accelerating the pace of the operating model roll-out.

Capital management Cash flow and balance sheet pressure

intense focus on capital discipline is key.

Restructuring Refocusing the portfolio

to dedicate time and capital to priority assets.


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OVERVIEW OF THE

COPPER BUSINESS,PERFORMANCEAND OUTLOOK


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OUR COPPER ASSETS

Quellaveco projectAA ownership: 81.9%

Los BroncesAA ownership: 50.1%

2014 Cu production: 405kt

Mantos BlancosAA ownership: 100%


Chagres (smelter)AA ownership: 50.1%

2014 anode production: 128kt

CollahuasiAA ownership: 44%

2014 Cu production (44%): 207kt

El SoldadoAA ownership: 50.1%


MantoverdeAA ownership: 100%


1

2

5

6

3

Q

4

Q


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COPPER RESULTS SUMMARY

Copper turnaround since 2012

has delivered excellent results.

Los Bronces material mined turnaround (Mt)Driving value delivering results

Production (kt)US$ mi ll ion FY2012 FY2013 FY 2014Revenue 5,122 5,392 4,827

EBITDA 2,288 2,402 1,902

EBIT 1,736 1,739 1,193

Underlying earnings 941 803 493

Capex SIB(1)(2) 854 695 572

Capex Growth(2) 360 264 156

Att ributable ROCE 29% 25% 18%

Realised pri ce (c/lb) 364 326 300

C1 unit cash cost (3) (c/lb) 171 162 169

Primary focus is first on stabilising, then optimising the operations

Los Bronces has stabilised the mine and plant, having caught up onwaste backlogs from previous years. 2016 Asset Review targets already

met, including:

Record material mined in 2014 of 145Mt vs. 129Mt in 2012

Continuous ore feed from mine to plant, increasing plant throughput

Greater residence time in flotation plant leading to higher recoveries

Collahuasi mine has been stabilised, with the focus now shifting to the

plant

0

50

100

150

200

20142012 2013

-12%-26% +6%

Actual

Plan

(1) SIB includes development and stripping capex

(2) Capital expenditure on PPE, net of proceeds from disposal of PPE and net of capital expenditure funded directly by non-controlling interests on a cash basis

(3) Unit costs presented on a nominal basis

660

2015

720-750

2014

775

2012

748

2013 2016

Other

710-740

2017

AA Sur

720-750


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12

STRATEGY IN ACTION LOS BRONCES CASE STUDY

The business turnaround since 2012 has established stabil ity in 2014

Value

2012 20152013 2014 2020+

Realise PotentialBuild Capability

Establish Stability

Under-delivered on budgets

Waste backlog; development

behind plan

Plant processing constraints

Strong focus on compliance to mine plan

Waste backlog caught up

Pit flexibility reinstated

Improve ore flow continuity; Debottleneck

plants and increase total throughput

Implementation of Anglo American Operating Model Optimise Contractor Services & Productivity

Operational efficiencies

Mitigate long term decline in ore grades Massive resource endowment

Development of Los Bronces Underground

project

We

transformedLos Broncesfrom this in2010

as we move to building capabil ity and efficiency in 2015.

To this in

2014

Establish Stability


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13

LOS BRONCES OPERATIONAL PERFORMANCE

Performance at the Los Bronces mine and plants has significantly improved

waste stripping is now back on schedule and mine flexibility has been reinstated.

129 128

145

67%78%

91%

201420132012

88%

92%94%

Mine compliance to planMaterial mined (Mt)

201420132012201420132012

Confluencia plant feed (ktpd)

27-09-201431-07-201428-05-201425-03-201420-01-201417-11-201314-09-201312-07-201309-05-201306-03-201301-01-2013

140

120

100

80

60

40

20

0

ktpd

_X=87,7

_X=91,0

_X=91,3

_X=87,6

_X=88,7

_X=9

2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3

1

1

11

1

1

1

111

1111

1

1

11

1

1

1

111

1

1

1

1

1

1

1

1

1

1

1111

1

1

1

1

1

1

1

1

ControlChart:CFPlantThroughput(ktpd)Confluencia Plant Feed (ktpd)

Summer Winter WinterSummer

Major maintenance

27-09-201431-07-2014 28-05-2014 25-03-2014 20-01-2014 17-11-2013 14-09-2013 12-07-2013 09-05-2013 06-03-2013 01-01-2013

700

600

500

400

300

200

100

0

Control Chart: LB Mine Rock Extraction (ktpd)

Summer Winter WinterSummer

ktpd

2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3

1

11

1

1

1

1

1

1

1

1

1

11

1

1

1

1

11

1

1

1

1

1

11

11

11

1

11

1

11

1

1

1

1

1

1

11

11

1

Confluencia plant operating time (%)

Mine extraction (ktpd)

Establish Stability


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14

COMMODITY PRICES

The near-term pressure induced by lower Copper pr ices

gives further impetus to our imperative to optimise for the long-term.

Indexed commodity price (1st

Jan 2014 = 1)

1.2

1.1

0.7

1.0

0.9

0.8

0.6

0.5

0.4

31 Dec 1401 Oct 1401 Jul 1401 Apr 1401 Jan 14

Thermal Coal (-16%)

Iron Ore (-47%)

Met Coal (-16%)

Platinum (basket) (-2%)

Copper(-23%)


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Sale of smaller-scalecopper assets

Capital redeployed intoPriority 1 asset

developments

RESPONSE TO WEAKENING MACRO ENVIRONMENT

Our portfol io, operating and capital management strategies

are contr ibuting to the delivery of a more competitive business.

Operating Model Capital Management Managing Margins The Portfo lio

Operating model focusesimproving labour

productivity and waste

cost

Reducing overhead andindirect costs improve cost

base

Supply focus on strategicbuyers reduces major

OEM costs

Operating modelimprovements supports

reduced capital spending

Improved planningrequires less capital in

mine developed inventory

Lower return projects arebeing deferred for re-work

Projects outside scope onmarginal assets are cut

Mining process changesimprove asset capability

Planning supportsconsistent delivery

Stability improves productrecoveries

Technical focus on corebusiness processes

supports capability

delivery


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FOCUS ON LOSBRONCES


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17

Location: The Cordillera of the Andes, 3,500m above sea level and 65km east of Santiago Type: Open pit mine with 2 processing plants, plus Las Trtolas flotation plant

Copper concentrate and Cathodes production, plus molybdenum and other by-products

Production 2014: 404.5kt fine copper

Employees: c.6,000 (own employees and contractors)

Ownership %: 50.1% Anglo American20.4% Mitsubishi Corporation

20.0% Codelco

9.5% Mitsui

SUMMARY

One of the worlds largest copper mines

Details of the Reserve and Resource estimates appear in the Anglo American Annual Report - 31 December 2013. Mineral Resources are additional to the Ore Reserves.

with signif icant further potential.

LB Reserves and Resources (2013) Tonnes(Mt)

Grade(%TCu)

ContainedMetal (kt)

Sulphide(flotation)

Proved 721.4 0.69 4,977

Probable 724.1 0.53 3,838

Total Ore Reserves 1,445.4 0.61 8,815

Measured & Indicated 1,211.1 0.40 4,860

Total Inferred 3,576.9 0.37 13,101

Sulphide(dump leach)

Proved 439.1 0.32 1,405

Probable 158.5 0.29 460

Total Ore Reserves 597.6 0.31 1,865

Total Inferred 175.0 0.28 490Los Sulfatos Inferred 1,200.0 1.46 17,520

San EnriqueMonolito

Inferred 900.0 0.81 7,290


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RECENT HISTORY

Is punctuated by a series of quantum capacity expansions

most recently with the Confluencia plant (LBDP) coming onl ine in 2011.


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LOS BRONCES PERFORMANCE VS. PEERS

Benchmarking Confluencias Sag Mill 40

shows its class-leading performance vs. peers.Note: Data shown as at H1 2014 unless stated otherwise; data based on encare Survey Chile and Peru major private miners

7147

86 79

encare

benchmark2013

Mine BMine ALos Bronces

Total Los Bronces productivity (2013; cu t/person)

Mine B

2.3

Mine A

1.9

Confluencia

0.6

Mean time to repair (hr)

encare

benchmark

2013

94.7%

Mine B

92.7%

Mine A

87.9%

Confluencia

96.3%

Availabil it y (%)

90.7%

Mine BMine A

86.1%

Confluencia

93.8%

Operating t ime (%)

Build Capability


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IMPLEMENTATION OF ANGLO AMERICAN OPERATING MODEL

Anglo American Operating Model to be rol led out in 2015 at Los Bronces, going l ive in December

ProjectSet-up

Project scope and

schedule is

agreed and

signed-off and the

project is set-up

to ensure that it is

adequately

planned and

resourced.

Detailed

Training

Los Bronces

Implementation

team and support

teams undergo

training required

to ensure

successful

implementation.

Configure

Workshop

LB Senior

management and

implementation

teams configure

all flowsheets and

assign

responsibilities.

Gap

Analysis

Social, technical,

resources,

metrics and

measurement

assessments .

Critical

Issue

Resolution

All barriers

identified in gap

analyses need to

be addressed.

Site

Readiness

The site is

configured to new

systems, roles

and procedures.

Role

Holder

TrainingSupervisors and

operators

undergo training

required to

ensure successful

implementation.

GO

LIVE

Date from which

measurement of

compliance will

start.

Stabilize

Coaching,

continued

measurement,

resolution of new

items.

1 2 3 4 5 6 7 8

9

2014 2015 2016 2017 2018

Los Bronces


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LOS BRONCES IS A WORLD-CLASS ASSET

With over 8BT of mineral reserves and resources, 65km from Chiles capital

LosBronces

LosBroncesSur

LosSulfatos

Realise Potential


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RESERVES AND RESOURCES

Los Bronces is one of the largest copper deposits in the world

...and is well posit ioned for the future vs. its peers.Source: R&R database of Woodmac based on 2013 public ly available information. (1)Includes only inferred resources ([email protected]%)

Details of the Reserve and Resource estimates appear in the Anglo American Annual Report - 31 December 2013. Due to the uncertainty associated with some Inferred resources it cannot

be assumed that all or part of the Inferred Mineral Resources will necessarily be upgraded to Indicated or Measured Resources with continued exploration.

Pebble

Cobre Panama

Cerro Colorado (Pn)

Radomiro Tomic PhllQuebrada Blanca Mill

Toromocho

Quellaveco

Golpu

Sierra GordaRelincho

Kerr Sulphurets Mitchell

Agua Rica

Panantza

Sentinel

Namosi

Michiquillay

Caserones

Haquira

Canariaco Norte

Galeno

El Morro

Galore Creek

Rosemont

Shaft Creek

Cristalino

Los sulfatos Ore body(1)

0.00

0.50

1.00

1.50

2.00

0 6,000 12,000 18,000

Oyu Tolgoi

Contained Copper KT

Cu(%)G

rade

Mill Reserves Base Case

in Construction

In Production, Reserves

(Sources: Rio Tinto

Chartbook September

2014)

High potential to

expand capacity

Top-20 copper project deposits by contained copper in Mill Reserves (Highly probable, possible, probable)

Inferred Resources

Project

Realise Potential
mailto:[email protected]%mailto:[email protected]%


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LOS BRONCES DISTRICT

Significant resources to sustain production with expansion potential

with studies being advanced for execution post-2020.

Main development focus is on the Los Sulfatos orebody, which is one of the

largest untapped high-grade deposits in the world

Principally replacement ore for the current mine plan, to maintain copper

production as grades decline

Initial studies indicate high grade underground mining possible

8km exploration tunnel completed in 2012 to provide access

15,000m of exploration drilling planned for 2015 and 84,000m by 2019

A number of other options in the district show promising results

-

5

10

15

20

Reserves Measured &Ind.

Inferred San EnriqueMonolito Inf.

Los SulfatosInf.

0.61%

0.40%

0.37%

1.46%

0.81%

Cu grade

(flotation)

Con

tainedCu(Mt,flotation)

Los Bronces

LosSulfatos

San Enrique

MonolitoExplorationtunnel

Details of the Reserve and Resource estimates appear in the Anglo American Annual Report - 31 December 2013. Due to the uncertainty associated with some Inferred resources it cannot

be assumed that all or part of the Inferred Mineral Resources will necessarily be upgraded to Indicated or Measured Resources with continued exploration.


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QUELLAVECO


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QUELLAVECO PROJECT

A significant orebody with attractive grades

Quellaveco complements our quality re-shaped copper portfolio.Source: Wood Mackenzie 2020 cost curve data and Anglo American actual data. Quellaveco C1 cost averaged over the first six years of production

Details of the Reserve and Resource estimates appear in the Anglo American Annual Report - 31 December 2013.

Located in southern Peru, at >3,500 metres in an

established mining district - strong social/political support

An attractive cost curve position with CuEq grades over0.90% in initial years

Reserves of 916Mt at 0.65% Cu, 0.019% Mo plus Ag anda 28 year LOM with production of ~220ktpa (~315ktpa in

initial years)

Construction early works commenced in 2012 and theFeasibility Study is on schedule for completion in 2015

Construction would result in a copper portfolio consistingof three major mines in the lower half of the cost curve

Given the magnitude of the project, Anglo American willlook to syndicate the capital exposure

Cost curve positioning (2020)

Quellaveco cross section

0.01%0.2%0.3%0.4%0.6%> 1.0%

GRADE

-50

-

50

100

150

200

250

300

350

400

0% 25% 50% 75% 100%

Quellaveco

Collahuasi

Los Bronces


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KEY RISKS ANDSUSTAINABILITYISSUES


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We will lead the industry in resourcedevelopment, mining and operationalinnovation to drive margins that support thedelivery of exceptional returns from ourassets.

Our employees are the business and wepartner with our customers and our broader

stakeholders across society to together, deliversustainable value that makes a real difference.

Key risks to achieve sustainable value forCopper:

Environment (legislation and regulationreform)

Water(water security and extreme weather)

People(labour reforms and negotiations)

APPROACH TO SUSTAINABILITY

Together, we create sustainable value that makes a real difference

but recognise we have some key risks to address along the way.

Pillars of Value KPI

Safety andHealth

FIFR(1)

NCOD(1)

TRCFR(1)

Environment Energy consumption

GHG(2)emissions

Total new water consumed

Socio-political Corp. social investment

Enterprise development

People Voluntary labour t/o

Gender diversity

Production Production volume

Cost C1 unit cash cost of production

Financial Attributable ROCE

(1) FIFR: Work-related fatal injury frequency rate; NCOD: New cases of occupational

disease; TRCFR: Total recordable case frequency rate. Managed operations only

(2) GHG: Greenhouse gas


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STRUCTURAL HEADWINDS A CHALLENGE AT LOS BRONCES

Plans are in place to mitigate the impact

offset by productiv ity gains and grade in 2015.

Average h aulage distance (km)

Average haulage dis tance increase 80% from 2012 to 2016Grades are variable and declining

Despite this, plant throughput levels wi ll be maintainedOre hardness is increasing

2017

0.74%

2016

0.74%

2015

0.89%

2014

0.78%

2013

0.83%

Grade%

20172016201520142013

142 146148

133

146

4.2

2017

+80%

6.3

5.2 5.6

3.5

20162015201420132012

5.8

ktpd

2012

126

2012

0.84%

-11%

+16%

2017

107

2016

122

2015

109

2014

82

2013

82

Ore hardness(SPI)

2012

85

+43%


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SUMMARY ANDOUTLOOK


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OPERATIONAL IMPROVEMENTS HAVE BEEN EMBEDDED

Increased product ion versus prior forecasts

...although grade variability remains.

Variable copper g rades (% Cu)(1)

(1) Grade shown is the weighted average grade for sulphide flotation across all assets

Copper production increased to 2017

0.75%

0.80%

0.85%

0.90%

0.95%

2013 2014 2015 2016 2017

700 700 700

748

+7%

720-750720-750

710-740

2014E 2015 2016 2017

2013 guidance 2014 guidance


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STRATEGY

Our approach to building performance is simpleand continuous

establish stabilitybuild a foundation for capabilityrealise potential.

Value

Time

STABILITY

CAPABILITY

Realise Potential

Operations

Markets

People

Brownfield options

Debottleneck

Operating Model

Resource potential

Priority capital options

FutureSmartTMinnovation

2013 2016

Build Capability

Establish Stability

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