ANGLO AMERICAN: BENEATH THE SURFACE JSE ESG Showcase, November 2018 - - PowerPoint PPT Presentation

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ANGLO AMERICAN: BENEATH THE SURFACE JSE ESG Showcase, November 2018 - - PowerPoint PPT Presentation

ANGLO AMERICAN: BENEATH THE SURFACE JSE ESG Showcase, November 2018 WHO WE ARE AT A GLANCE Anglo American is a globally diversified mining business Our portfolio of world-class competitive mining operations and undeveloped resources provides


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ANGLO AMERICAN: BENEATH THE SURFACE

JSE ESG Showcase, November 2018

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WHO WE ARE AT A GLANCE

Anglo American is a globally diversified mining business

Our portfolio of world-class competitive mining

  • perations and undeveloped resources

provides the raw materials to meet the growing consumer-driven demands of the world’s developed and maturing economies. – Diamonds (De Beers) – Copper – Platinum Group Metals (PGMs) – Iron Ore – Coal (metallurgical & thermal) – Nickel & Manganese

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OUR PURPOSE

Re-imagine mining to improve people’s lives

Anglo American’s purpose is to:

What mining could be and how we envisage mining in the future. How we think differently and innovatively about mining and our entire value chain. A Purpose is about more than just the work we do and the profits we make, it’s about the impact we have on everything we touch.

Re-imagine mining to improve people’s lives

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OUR STRATEGY

Portfolio, Innovation, People

  • High quality and long-life assets
  • Differentiated portfolio with growth
  • ptions
  • Sustainable cash flow and returns
  • FutureSmart MiningTM
  • 1. Technical innovation
  • 2. Operating Model
  • 3. Sustainability Strategy
  • Marketing – creating value from

mine to market

  • Valuing partnerships –
  • ur licence to operate
  • High performance, inclusive

culture

  • Organisation Model

Portfolio

Innovation

People

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OUR SEVEN PILLARS OF VALUE

Designed to deliver value for all our stakeholders

We track our strategic progress using KPIs based on our seven pillars of value:

  • Safety and Health: to do no harm to our

workforce

  • Environment: to minimise our impact on the

environment

  • Socio-political: to partner in the benefits of

mining with local communities and governments

  • People: create sustainable competitive

advantage through capable people and an effective, performance-driven organisation

  • Production: to sustainably produce valuable

product

  • Cost: to be competitive by operating as

efficiently as possible

  • Financial: to deliver sustainable returns to our

shareholders.

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WHERE WE OPERATE

Our operating assets

De Beers Copper Platinum Iron Ore Coal Nickel and Manganese

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SAFETY IS OUR PRIORITY

Our vision is for zero harm

  • Our vision is for zero harm; to eliminate fatal

injuries in the workplace and to mine in an injury-free way.

  • In 2018 we have recorded the loss of 5 lives

(9 in 2017).

  • The Group Total recordable case frequency

rate per million hours at end-Sept 2.60 (2017: 3.46).

  • Our safety-management approach is risk-

based and focuses on integrating safe working practices into every aspect of what we do. This is founded on three key principles:

  • a mindset of zero harm;
  • no repeats;
  • and the application of simple, non-

negotiable standards.

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FUTURESMART MININGTM

Our blueprint for the future of our business

  • FutureSmart Mining™ is Anglo American’s

innovation-led approach to sustainable mining.

  • FutureSmart MiningTM incorporates both technical

innovation and our Sustainability Strategy.

  • Together, these pieces of work will deliver

step-change improvements across all aspects of

  • ur business.
  • We are focusing on finding new ways to make mining:

– safer – more efficient – more sustainable – with a smaller physical footprint

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TECHNICAL INNOVATION

Creating shared value through the smart application and adaptation of technology

  • In response to the global drive for a more

sustainable approach to mining – economically, socially and environmentally – we have articulated a new approach to innovation and technology that addresses mining’s major challenges.

  • The focus of our technical innovation work is

identifying where value can be realised quickly through the smart application and adaptation

  • f technology.

Grasp Challenges Ideate Consolidate Deliver Value identification Collaboration Fast, iterative execution

Consider entire value

  • chain. 3 lenses:
  • Sustainability

(water, energy)

  • Processing
  • Mining
  • Open Forums
  • Internal

participation

  • Open and

collaborative

  • Technology

Programmes

  • Valued defined
  • Balance delivery
  • ver time
  • Rapid dev. cycles

(SmartPath)

  • Learning plans
  • SmartBox
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PICTURE THIS…

Innovation that redefines modern mining (safety, productivity, sustainability)

The Modern Mine: Continuous mining deep underground with our people out of harms way. The Concentrated Mine: A mine that gets more directly to the precious metal. The Waterless Mine: Extracting precious resources without the need for fresh water The Intelligent Mine: A mine that learns for itself supporting safer, more productive mining

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OUR SUSTAINABILITY STRATEGY

The framework

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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

  • ur business in a way that is collaborative

and aimed at society’s wider goals.

Ethical Value Chains

Vision: To be a part of a value chain that supports and reinforces positive human rights and sustainability outcomes.

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THRIVING COMMUNITIES

Livelihoods

Vision: Shared, sustainable prosperity in our host communities. 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 communities.

Education

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HEALTHY ENVIRONMENT

Climate change

Vision: To operate carbon-neutral mines.

Water

  • Vision. To operate waterless mines in

water scarce regions.

Biodiversity

  • Vision. To deliver net positive impact (NPI)

across Anglo American through implementing the mitigation hierarchy and investment in biodiversity stewardship.

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GENERATING LASTING ECONOMIC BENEFITS

The needs and concerns of all our stakeholders inform and guide our approach to doing business

We strive to generate long term benefits everywhere we operate – to create value for shareholders as well as local communities

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WORKING WITH THE COMMUNITY

Improving operations’ understanding of their socio-economic impacts - SEAT

  • SEAT (Socio-Economic Assessment Toolbox)

is the primary means by which we enhance the development outcomes and capacities of host communities.

  • Operations undertake SEAT every three years
  • An industry tool: competitors, suppliers and

NGOs now use SEAT

  • Generated initiatives in education, housing,

health training and enterprise development

“The toolkit represents one of the most significant corporate investments we know

  • f to equip personnel to better understand,

plan, implement and account for the social and economic performance at the local

  • perations level.”

Aron Cramer, Chief Executive Business for Social Responsibility (BSR)

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A WORLD-LEADING RESPONSE TO HIV/AIDS AND TB

We are recognised leaders for our workplace health programmes

  • We are recognised leaders for our TB and HIV/AIDS

programmes in the workplace.

  • First to provide free counselling, testing and treatment to

employees and dependants (since extended to contractors)

  • Building on our strong foundations for improving our

management of TB and HIV/AIDS, we have set the following ambitious targets for 2020 and 2022: – Achieve the UNAIDS 90/90/90 targets for 2020: 90% of

  • ur employees should know their HIV status; 90% of

identified seropositive individuals should be on ART; and 90% of those should have undetectable viral loads – By 2022, we aim to reduce TB incidence in our workforce to 30% of 2015 levels, and HIV incidence in the workforce to less than 0.1%.

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DEVELOPING ENTREPRENEURS

More than 25 years’ experience in enterprise development

  • Our first enterprise development

programme, Zimele, was launched in South Africa in 1989

  • We have since developed a best practice

model and have now implemented schemes in Chile, Botswana, Brazil and Peru

  • Since 2008, across all schemes, we have

supported 120,812 jobs and supported 64,291 SMEs inside and outside our supply chains

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CLIMATE CHANGE AND ENERGY

Anglo American’s climate change policy articulates

  • ur commitment to five principles:
  • Building internal agility and ensuring resilience to

climate change

  • Driving energy and carbon savings throughout
  • ur business
  • Understanding and responding to the carbon

life-cycle risks and opportunities of our products

  • Developing and implementing collaborative

solutions with our stakeholders

  • Contributing our skills and knowledge to the

development of responsible public policy.

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WATER STEWARDSHIP

We use water sparingly and efficiently, and re-use what we can

  • In 2017, we started implementing and embedding
  • ur new water-management standard and

associated reporting requirements.

  • The standard guides a risk-based, regional

approach to water management, in line with global best practice and the ICMM water reporting guidelines.

  • We are working towards the following revised,

more ambitious targets: By 2020: –Reduce the abstraction of freshwater in water-scarce regions by 20% –Increase water-recycling levels to 75% By 2030 –Reduce the abstraction of freshwater in water- scarce regions by 50%

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THANK YOU