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A PERSPECTIVE ON COPPER…AND WHY WE NEED TO RE-IMAGINE MINING

Copper to the World, Adelaide, June 2019

Andrew Shaw – Principal, Market Intelligence, Copper, Anglo American Marketing

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WHO WE ARE

Our portfolio of world-class competitive mining operations

and undeveloped resources provides the metals and

minerals that enable a cleaner, more electrified world and

that meet the fast 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

Anglo American is a leading global mining company

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OUR PURPOSE

…to improve people’s lives

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 and everybody we touch.

Re-imagine mining…

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.

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OUR STRATEGY

• High quality, long-life assets

• Differentiated growth portfolio

• Sustainable cash flow & returns

• Performance foundations

1. Operating Model

2. P101

• FutureSmart MiningTM

1. Technical innovation

2. Sustainable Mining Plan

• Value from mine to market

• Social licence to operate

• Purpose-led, high-performance culture

• Organisation Model

Portfolio

Innovation

People

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WHERE WE OPERATE

De Beers

Copper

Platinum

Iron Ore

Coal

Nickel and Manganese

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2018 PERFORMANCE – CONTINUED DELIVERY

42%

Dividend Free cash flow

Mining marginProduction volumes

$9.2bn

EBITDA

19%$3.2bn$1.3bn

ROCE

6%

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A FUNDAMENTALLY DIFFERENT BUSINESS

Copper equivalent production and productivity

108

40

60

80

100

120

140

160

180

200

20142012 2013 201820172015 2016

Production index (Cu Eq)

Productivity index (Cu Eq tonnes/full-time equivalent)

Cu Eq unit cost

Production volumes

10%

Unit costs11

26%

+98%productivity

Number of assets

50%

2012 to 2018

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OUR COPPER BUSINESS

FROM LEFT TO RIGHT:

HENNIE FAUL, CEO COPPER;

TOM MCCULLEY, CEO ANGLO AMERICAN PERU;

RUBEN FERNANDES, CEO BASE METALS

• Interests in two major copper operations in Chile:

– a 50.1% interest in the Los Bronces mine, which we

manage and operate

– a 44% share of the Collahuasi mine

• 50.1% interest in the El Soldado mine and Chagres Smelter

in Chile, both of which we manage and operate

• In Peru, we have a 60% interest in the Quellaveco project

which is expected to produce 300kt/y copper

• Our high value portfolio will produce ~1 million tonnes of

copper annually, with further growth potential

Financial highlights (US$ million unless otherwise stated)

Our Copper Business 2018 2017

Production volume (equity interest, kt) 668 579

Underlying EBIT 1,234 923

Underlying EBITDA 1,856 1,508

Capital expenditure 703 665

Attributable return on capital employed (ROCE) % 22% 16%

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INNOVATION ESSENTIAL TO ENSURE SUSTAINABILITY

What is required to produce

40kg of copper

1t Waste

1t Ore

4% Cu

3m3 Water

10kWhr Energy

24t Waste

8t Ore

0.5% Cu

6m3 Water

160kWhr Energy

1900 2018 Future

Unsustainable trajectory Precision trajectory

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WE ARE RE-IMAGINING MINING

Operating Model

P101

FutureSmart Mining

Digitalisation

The Intelligent Mine

Technology Innovation

The Concentrated Mine

The Waterless Mine

The Modern Mine

Sustainability

Sustainable Mining Plan

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DATA ANALYTICS PLATFORMProviding business insight, empowering better decisions

Approach

1. Build an end-to-end data

platform that supports the

entire value chain

2. Use artificial intelligence to

interpret data

3. Engage end users with

next generation apps that

are mobile-friendly

4. Productization strategy

helps with scaling our

value generation

Value

Speed to market

Scale of deployment

IT/OT integration delivers

value

Operations decision support

focused

Anglo American Data Platform

MINING DATA LAKE

io io

Ingestion

services

MINING

PROCESSING

GEOSCIENCE

MARKET PRICES

NEXTGEN APPS

Technical expert

MinePlan

ANALYTICS

DATA SCIENCE

Datascientist

Sensors Real-time

Historians

Fleet Management Systems

Application Data Consumptionservices

QC

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THE ESSENCE OF FUTURESMART MINING™

Trusted corporate leader

Thriving communities

Healthy environment

Concentrated mine™

Waterless mine

Intelligent mine

Modern mine

Su

sta

ina

ble

Min

ing

Pla

n +

Te

ch

nic

al In

no

va

tio

n

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A PERSPECTIVE ON COPPER

“Anyone who believes there is

no more expansion left in the

uses of copper must also

believe that centuries of

human achievement have

come to an end”

…Andrew Shaw

Copper is central to improving living standards and mitigating environmental risks

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AVERAGE COPPER USE PER PERSON SET TO RISE

Source: Anglo American, CRU, Wood Mackenzie

0

5,000

10,000

15,000

20,000

Europe N America S America Africa Other Asia China Japan Australasia

If uses grew at the average

rate of the past 100 years, the

world would need the

equivalent of 20 new

Collahuasi mines by 2030

Post War

Industrialization

and restoration

Lift-off for copper

fabrication in Asia.

The ‘China Miracle’

Early and mid

1900s: Military

Uses

1800s and

1900s: Early

electrification

China’s boom has shifted

the axis of global refined

copper use to new

fabrication centres

Weakness in emerging

markets but signs of

renewed growth in recent

times

Developed nations have

lost market share at the

“first use” level

Refined Copper Consumption in 1900-2018 (kt Cu)

Copper use per person globally is about 3 kg vs. 8 kg in Japan and 0.2 kg in India

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THOUGHT FOR THE NEXT CENTURY

“No society can surely be flourishing and happy, of which the far greater members are poor and miserable”

– Adam Smith

Source: CIA, World Factbook, 2018

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

GDP Per Capita For Selected Countries (US$, PPP)

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SUPPLY HAS TO KEEP UP WITH DEMAND…OR SOCIETY LOSES OUT

“For every tonne of copper mined and

embedded in the global economy,

carbon dioxide emissions can be

reduced by between 150t and 1,000t

per year. The move from a high CO2

emitting economy to a more

sustainable one is, in many ways,

simply the shift from a carbon economy

to a copper economy.”

…Bernstein Study, May 2019

Source: Bernstein, Anglo American

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THE SUPPLY GAP

Source: Wood Mackenzie

0

5

10

15

20

25

30Base Case Supply

Brownfield Additions

Demand

Gap of more than 9 Mt by 2030

Mine Supply and Brownfield Additions vs Demand (Mt Copper)

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GRADES HAVE FALLEN CLOSER TO THOSE OF RESERVES

Source: Wood Mackenzie, International Copper Study Group

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024

All Operations

Primary Mines

Co-By Product Mines - (RH axis)

Mine Head Grades(% Cu)

World Copper Reserves

& Mine Production