Leadership commitment – communicating from the top? intrODuctiOn Delivering real change Our ambitiOn Our aim is to be the leading global mining company, by becoming the investment, the partner and the employer of choice. We will achieve this by continuing to develop our portfolio of world class mining assets; operate an efficient, streamlined business model; embed sustainability and safety in everything we do; and attract and retain the best people. This report provides an overview of how we have delivered against our strategy this year and made a real difference in our host communities. Anglo American 2010 Annual Report Basic Materials United Kingdom Anglo American plc Annual Report 2010 Delivering real excellence Annual Report 2010 Within this report we have included references to find out more information on certain sections, either within the report itself or online. For more information within this report For more in-depth information online visit www.angloamerican.com using this repOrt anD where tO finD Out mOre… 10 OVERVIEW: Our strategy Anglo American plc — Annual Report 2010 11 Anglo American plc — Annual Report 2010 DEFINING OUR AMBITION OUR STRATEGY Anglo American aims to be the leading global mining company – the investment, the partner and the employer of choice – through the operational excellence of world class assets in the most attractive commodities and a resolute commitment to the highest standards of safe and sustainable mining. Our focused commodity businesses are driving superior operating performances, through major productivity improvements, disciplined cost management and the significant benefits of our asset optimisation and global supply chain programmes. Cynthia Carroll Chief executive In 2010 we considerably strengthened our balance sheet and are well positioned to finance our project pipeline and to take advantage of any attractive M&A opportunities. Talent development remains a key priority. In pursuit of this aim, we launched the People Development Way, a global capability framework that describes the behaviours, knowledge, skills and experiences needed to enable Anglo American to achieve its strategic objectives. Mervyn Walker Group Director of Human Resources and Communications Project delivery is a major challenge in our industry. At Anglo American we have chosen to focus on the way that we develop and approve our projects, ensuring that we harness the full capacity of our technical resources in a disciplined and consistent way. David Weston Group Director of Business Performance and Projects Overview Operating and financial review Réne Médori Finance Director Anglo American performed strongly in 2010, both operationally and financially, and we have continued to deliver on our clear strategic objectives. Strategic highlights from the year include: KEY STRATEGIC HIGHLIGHTS 2 We have exceeded all expectations by achieving asset optimisation and procurement benefits of $2.5 billion from our core businesses alone (including one-off benefits), well ahead of our 2011 target of $2 billion ore project in Brazil, and expect civil works for the beneficiation plant and tailings dam construction to begin in March 2011 Governance 4 1 We have completed $3.3 billion of divestments of non-core businesses, including our zinc portfolio, Moly-Cop and AltaSteel, five undeveloped coal assets in Australia and a number of Tarmac’s European businesses. We have received strong interest in the remaining businesses and will divest those in a manner and on a timetable that maximise value. In February 2011, we announced our intention to combine the UK businesses of Tarmac and Lafarge, to create a leading UK construction materials company 3 We have made excellent progress on our four major projects, enabling us to start up a major project every six to nine months over the next few years. The first of these, the Barro Alto nickel project, will begin production on schedule in March 2011, more than doubling our Nickel business’ output when it reaches full production. The expansion of our Los Bronces copper operation in Chile and the Kolomela iron ore project in South Africa are progressing on schedule and on budget. We have also secured key licences and permits for the Minas-Rio iron We continue to focus on our safety performance across the board and recorded further improvements during the year, with fatalities and lost time injury rates both continuing to reduce. We have now achieved a near 70% improvement in safety since 2006 as we pursue our goal of zero harm. Creating trust is at the heart of our licence to operate; in 2010 we made further headway, with another significant improvement in our safety performance, while extending our internationally recognised community engagement programme. Brian Beamish Group Director of Mining and Technology Financial statements OUR FOUR STRATEGIC ELEMENTS INVESTING in world class assets in the most attractive commodities We own, operate and grow world class mining assets in those commodities that we believe deliver the best returns through the economic cycle and over the long term. We aim to focus on those commodities in which we have advantaged positions and on large scale assets with long lives, low cost profiles and with clear expansion potential, that is: copper, diamonds, iron ore, metallurgical coal, nickel, platinum and thermal coal. ORGANISING efficiently and effectively Our structure aims to facilitate the delivery of performance and efficiencies to outperform the competition. Each commodity business unit is focused on operational excellence, project delivery and driving its cost position further down its industry curve, while the lean corporate centre facilitates the extraction of value beyond what is achievable by the businesses alone. Through close collaboration, value-driven leadership, the sharing of best practice, technical innovation, operational know-how and the pursuit of synergies in key valuedriving functions such as supply chain and asset optimisation, the substantial benefits of Anglo American’s scale and performance oriented culture are realised. OPERATING safely, sustainably and responsibly Operating safely, sustainably and responsibly is embedded in everything we do. The safety of our people is our key core value and we are relentless in striving to achieve our goal of zero harm. We are committed to environmental stewardship and minimising the environmental impact of our operations. We aim to make a sustainable and positive difference to community development and act with integrity to build respectful relationships with the societies in which we work. Behaving in this way, supported by strong governance and risk management processes, enables us to develop and helps maintain trust with all our stakeholders and create value, which is fundamental to our ability to deliver superior long term returns to our shareholders. EMPLOYING the best people Ore Reserves and Mineral Resources INVESTING World class assets in the most attractive commodities Our people are as vital to our success as our mining assets. We are committed to our people, who determine how effectively we operate and build our reputation with our investors, partners and fellow employees every day, and whom we require to uphold our values. Ultimately, it is our people who will realise our ambition and deliver our strategy to be the leading global mining company. OPERATING Safely, sustainably and responsibly BECOMING THE LEADING MINING COMPANY Investment, partner and employer of choice ORGANISING Efficiently and effectively Other information EMPLOYING The best people pp 10-11 Sustainable development is a key issue discussed in both the Chairman and CEO statements and is referred to as being central to the group strategy and management of the day-to-day activities of the business. The strategic content in the CEO statement clearly refers to safety, sustainability and responsibility as being core to the group strategy. 22 Integrated thinking in reporting
