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FUTURESMART OPEN FORUMS AustMine Conference

Dan Alexander – May 2015

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WHO WE ARE AT A GLANCE

Our head quarters are in

London, United Kingdom

Mining Operations in

Southern Africa, North and

South America and Australia

We are listed on the London

and Johannesburg Stock

Exchanges

Platinum Diamonds

(De Beers)

Iron Ore &

Manganese Copper

Thermal

Coal

Metallurgical

Coal

Nickel,

Niobium &

Phosphate

$7.8 bn In

underlying

EBITDA*

151,200 Employees

Worldwide

$31 bn In Group

Revenue*

*2014

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*2014

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FUNDAMENTALLY CHANGING MINING…

Anglo American will focus on step-change initiatives

• Across the full value chain

• Technologies that will make a difference across multiple commodities

• Enhance performance of our Tier 1 & 2 assets

Deliver step change value in our operations by working together with

partners to transform our operational practices using novel technologies

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• Response to the global drive for a

more sustainable approach to mining

– economically, socially and

environmentally

• Use innovation and technology as an

enabler to deliver value

• Holistic (benefit entire systems), open,

and collaborative

• Creates sustainable and lasting

change

• Novel approach to IP management

..WITH FUTURESMARTTM AT THE LEADING EDGE OF

TECHNOLOGY AND INNOVATION IN MINING

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OPEN INNOVATION INSPIRES THE APPROACH…

Open

Innovation

Systems

thinking

Speed

Delivering

quick wins

Adapting from

other industries

Edison did not deliver the lightbulb

through continuous improvement of

the candle…

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..WITH OPEN FORUMS CONSIDERED A VALUABLE TOOL

Open Forums will focus on identifying and selecting the right problem to

address, and bring the right internal and external people to do so

Mining suppliers

Academia

Anglo American BU representatives

Other industries

Entrepreneurs

Finding common business

needs, interests and skills to

develop and deliver industry

game-changing technology

projects

OPEN FORUMS

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OTHER INDUSTRIES AND OPEN INNOVATION

GE Ecomagination

Source: Companies’ websites

Light My Fire: aviation engineers 3D

printed a model jet engine, then took it

to 33,000 RPM

Shell GameChanger

The revolutionary idea of cooling natural

gas to liquid at sea into reality – identified

by open source and boosted by early

funding from the Shell GameChanger

programme

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FUTURESMART

OPEN FORUMS

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WE’VE IDENTIFIED THREE OPEN FORUM AREAS…

Sustainability Processing

Mining

FutureSmart Open Forums are set in the context of objectives that will require us

to address technology challenges that previously may have been seen as impossible

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KICKING THE WATER HABIT: OUR ASPIRATION FOR WATER FREE MINING

What if we could…

Redesign our processes

and technology to be water-

free and only use recycled

water

Consume only minimal clean

water for our own needs and

instead use others’ waste

water

Through water, create

sustainable development

opportunities not only for

Anglo American, but for all

stakeholders

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ADAPTABLE PROCESSING: OUR ASPIRATION FOR THE FIT FOR PURPOSE PLANT

What if we could…

Redesign our processes

and technology to adapt

to any size and grade of

ore deposit

Dramatically reduce the

energy, water and physical

footprint required for

extracting minerals from ore

Transform mineral

processing into a fully flexible

and highly integrated

manufacturing system

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..AND OUR DESIRED OUTCOME IS A PORTFOLIO OF

PROJECTS THAT DELIVER VALUE FROM THE START

• The portfolio project approach will

deliver value early

• Total value will continue to grow as

longer term projects start to generate

benefits

• The selection of suitable projects at

the completion of the Open Forum is a

key deliverable

• Understanding the shape of this graph

will dictate the choice of projects 0 2 4 6 8

Indicative absolute value generation

Short term Medium term Long term TOTAL

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IP ENABLES, NOT IMPEDES, COLLABORATION

Benefit

Right

Property

BASIC UNITS OF VALUE FROM IP

OUR FOCUS IS TO GUARANTEE OUR FREEDOM TO OPERATE

Novel approaches to Intellectual Property (IP)

will facilitate collaboration

Collaboration exposes us to risk

Exchanging confidential information

Clear contract clauses on IP ownership

Development of new processes

A number of options may be considered when

negotiating IP, for example:

Owning the IP

Sharing of IP rights (e.g. joint ownership,

cross licensing)

Future price discounts as co-developer

Securing rights of first refusal to either

own or license the IP

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RELATIONSHIPS ARE KEY

Buyer

Supplier

Provider

Risk boundaries “Valley of Death”

ANGLO AMERICAN

Govt / NGO?

Other Mining Co?

University?

Anglo Business Unit?

SME / Entrepreneur?

Typically, a large OEM

“Valley of Ideas”

“Valley of Support”

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THE LARGER KEY IS CHANGE

Machine gun?

I don’t have time to

talk about that – I

have a war to fight

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KEY MESSAGE

• Anglo American has embarked on an open innovation approach

called FutureSmart Open Forums

• Open Forums is a tool which will use to identify the right problems

• The initial focus of the Open Forums will be identifying the

game changing projects in water and adaptive processing plant

It’s a seemingly

impossible task that,

if achieved, will

simply change

everything…

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THANK YOU www.angloamerican.com