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ANGLO AMERICAN METALLURGICAL COAL OUR NEWS AUSTRALIA - NO.01 SEPTEMBER 2010 ANGLO AMERICAN BUILDS ITS IDENTITY IN AUSTRALIA Anglo American’s new brand roll out underway RIO PROGRAMME REELS IN FUTURE EMPLOYEES Students to complete a ten day resource industry introductory course ANGLO AMERICAN EXCELLENCE AWARDS Three finalists from Metallurgical Coal AAMC will lift production across Capcoal’s underground and open cut operations over the next two years to increase the Run of Mine (ROM) tonnes to the Coal Handling Processing Plant (CHPP) to 15 million tonnes per annum (Mtpa) and increase sales to 11 Mtpa. AAMC Head of Operations Dieter Haage said for AAMC to double the value of the business in ten years, the most efficient way to achieve this was to improve the productivity of its current assets. “A study team recently undertook a holistic review of all Capcoal’s operations and explored options for increasing production at Lake Lindsay, Grasstree, Aquila and Bundoora,” Dieter said. “In line with the study’s recommendations, additional ROM coal is proposed to come from Bundoora and Aquila using the bord and pillar coal extraction method, delivering a further 850,000 tonnes of coal a year. “The Aquila operation will start up in October, with full production potential anticipated by Q1 2011,” he said. The Bundoora longwall is scheduled to complete its available resource at the end of 2010 and introducing bord and pillar operations form a key part of a replacement strategy developed to ensure AAMC can continue to mine in this location well into the future. At the Grasstree longwall, site based business improvement projects are being implemented to take the average cutting of coal to a five Mtpa rate by the end of 2010. “The Grasstree operation was running at approximately four Mtpa rate earlier this year, and this had the potential for significant production improvement,” Dieter said. DRIVING VALUE AT CAPCOAL

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Page 1: OUR - Anglo American

ANGLO AMERICAN METALLURGICAL COAL

OUR NEWS

AUSTRALIA - NO.01SEPTEMBER 2010

ANGLO AMERICAN BUILDS ITS IDENTITY IN AUSTRALIAAnglo American’s new brand roll out underway

RIO PROGRAMME REELS IN FUTURE EMPLOYEESStudents to complete a ten day resource industry introductory course

ANGLO AMERICAN EXCELLENCE AWARDSThree finalists from Metallurgical Coal

AAMC will lift production across Capcoal’s underground and open cut operations over the next two years to increase the Run of Mine (ROM) tonnes to the Coal Handling Processing Plant (CHPP) to 15 million tonnes per annum (Mtpa) and increase sales to 11 Mtpa.

AAMC Head of Operations Dieter Haage said for AAMC to double the value of the business in ten years, the most efficient way to achieve this was to improve the productivity of its current assets.

“A study team recently undertook a holistic review of all Capcoal’s operations and explored options for increasing production at Lake Lindsay, Grasstree, Aquila and Bundoora,” Dieter said.

“In line with the study’s recommendations, additional ROM coal is proposed to come from Bundoora and Aquila using the bord and pillar coal extraction method, delivering a further 850,000 tonnes of coal a year.

“The Aquila operation will start up in October, with full production potential anticipated by Q1 2011,” he said.

The Bundoora longwall is scheduled to complete its available resource at the end of 2010 and introducing bord and pillar operations form a key part of a replacement strategy developed to ensure AAMC can continue to mine in this location well into the future.

At the Grasstree longwall, site based business improvement projects are being implemented to take the average cutting of coal to a five Mtpa rate by the end of 2010.

“The Grasstree operation was running at approximately four Mtpa rate earlier this year, and this had the potential for significant production improvement,” Dieter said.

DRIvINg vALUE AT CAPCOAL

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2 OUR NEWS SEPTEMBER 2010

LETTER FROM THE CEO

“The team has done very well to lift the game so far, and we expect to achieve a five Mtpa rate by the end of 2010.

“In addition, through the Longwall 100 Project, we aim to increase the cutting hours of our longwall systems to a 100 cutting hour per week average by the end of 2011 and this equates to between six and 6.5 million tonnes per year of ROM production from Grasstree alone,” he said.

With additional coal to process, Dieter said major upgrades will need to be carried out at the Capcoal CHPP.

“This will target both the processing rate and operating hours to ensure this increased throughput can be achieved,” Dieter said.

“We plan to increase the tonnes of coal processed at the Capcoal wash plant by 25 per cent.”

The CAP15 project is a prime example of taking a best for business approach to deliver asset optimisation, focussing on identifying the value-driving areas of each operation.

“Increasing the Capcoal total product output to 11Mtpa will deliver a significant portion of AAMC’s short term growth strategy,” Dieter said.

WHAT IS BORD AND PILLAR MININg?The bord and pillar mining method will be used to mine coking coal difficult to access using conventional methods such as longwall mining.

The bord and pillar method uses a grid of mining tunnels. It involves using continuous miners to cut panels into the coal seam while leaving behind standing pillars of coal to support the roof, which is also kept in place by bolts and reinforcement.

CONTINUED FROM PAgE 1

The blasting incident that occurred at Drayton Mine in July provides a timely reminder of the dangers we face everyday, and why safety is so important for our business.

We were very fortunate the five employees impacted by this blast were not seriously injured. Thorough investigations were conducted to determine the cause of the incident, bringing together expertise from all areas of our business to map out a way forward to ensure it never happens again. Blasting has recommenced at site, as we are confident we have engineered the right controls to keep our people safe.

We need to learn from these occurrences and lift our safety performance for the remainder of the year. We are still outperforming 2009’s safety indicators, however, our Lost Time Injury Frequency Rate is at 0.5. Our target for 2010 is 0.4. We will be implementing remedial plans to ensure this is our focus over the next three months.

At the end of July the Group released the mid year results and I was pleased to report our Australian business delivered a record half year production across all coal products of 14.4 million tonnes, a 43 per cent increase in sales of high margin metallurgical coal and a seven per cent reduction in unit cost.

These results deliver on our strategic objectives in Australia of doubling the size of the metallurgical coal business in the next ten years by developing high quality and high margin long life assets. A key part of our strategy for the first half of 2010 was to increase production of metallurgical coal products and to drive down unit costs through asset optimisation

and continuous improvement at our operations. In this issue of Our News you will read about business improvement projects including the CAP15 and the Longwall 100 projects. Both are key examples of driving production from our high quality metallurgical coal products.

The Applaud employee excellence awards finalists were announced in August, and Met Coal had three finalists out of a possible 16. I would like to congratulate Ed Crawford, Ian Curtis and Scott Brown for their outstanding projects that have been recognised globally and for the value these individuals have added to the business. I would also like to congratulate all the Met Coal nominees for helping us do what we do even better. You will read more about all the Australian nominees in this issue of Our News.

With implementation of our new global brand and identity well underway, we are now focused on lifting our profile in Australia and promoting who we are and what we do to our external stakeholders. From late September 2010 Anglo American will launch an advertising campaign in Australian press that highlights stories about the people who work for this great company. The campaign is about real people making a difference in a company making a difference. The people appearing in the advertisements are our own employees photographed going about their work. It is through telling their stories of innovation, environmental responsibility and commitment to the highest standards of safety that we communicate to others what it means to work for Anglo American and how we will achieve our ambition of becoming the leading global mining company.

CAPCOAL TO LIFT PRODUCTION

Safety is at the forefront of everything we do at Anglo American. It influences the way we design our mines, the shifts we work, the training we complete and the way we interact with each other.

Seamus French, CEO.

“I am pleased to report our Australian business delivered a record half year production across all coal products.”

Page 3: OUR - Anglo American

3OUR NEWSSEPTEMBER 2010

IF YOU CAN PUT RESPONSIBILITY OVER RISK AND RESPECT BEFORE REWARD. IF YOU CAN THINK FORWARD,BY LEARNING FROM THE PAST AND CAN KEEP TRUST ON THE SAME PEDESTAL AS PROFIT. IF YOU CAN ADMIRE FOUNDATIONS AS MUCH AS SPIRES. IF YOU SEEK THE BIGGER PICTURE, BY EXAMINING EVERY DETAIL.IF YOU CAN DREAM BIG AND KEEP YOUR EGO SMALL. IF YOU HAVE THE COURAGE TO QUESTION WHAT YOU THINK IS NOT RIGHT AND CHAMPION WHAT IS.THEN YOU UNDERSTAND WHAT IT TAKES TO WORK FOR ANGLO AMERICAN.

28595 AA_DPS_AUSTRALIA manifesto_Kyle Gorman

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KYLE GORMAN Anglo American, Australia

Regional Manager for External Affairs Aldo Pennini said the campaign has been developed in the same style across Anglo American, but has been tailored to the specific objectives of each business unit.

“For Met Coal this means increasing awareness of Anglo American, particularly in Queensland and NSW, in order to attract more people to our company and demonstrate to our employees the value of their work,” Aldo said.

“From late September advertisements will start appearing in national, state and some regional newspapers as well as online, promoting Anglo American: who we are, what we stand for, what we do and why we are a good company to be a part of.”

The advertisements will demonstrate Anglo American’s commitment to innovation, environmental responsibility and safety by highlighting stories about our initiatives:

• Dust suppression on coal trains at Callide Mine;

• The introduction of the SmartCap at Capcoal;

• Dartbrook’s River Restoration Project; and

• Partnering with EDL at Moranbah North and Capcoal mines to reduce our greenhouse gas emissions.

The advertisements will contain short summaries of these projects, presented next to black and white portrait photographs taken of employees at Capcoal Surface and Underground operations.

“The campaign is built on the real people that work for our company and the real things we do to make a difference,” Aldo said.

Readers will be directed to learn more about Anglo American by visiting a website: www.getthefullstory.com.au where they can read a full report on the project and download related fact sheets.

The campaign will be undertaken in two phases with phase one commencing this month and phase two from April 2011. The campaign will there after become an annual programme across Anglo American.

ANgLO AMERICAN BUILDS ITS IDENTITy IN AUSTRALIAWith the rollout of Anglo American’s new brand now well underway, the next critical step in the roll out of the new brand identity is the launch of a global advertising campaign.

One of the Australian advertisements, with a portrait photograph of Kyle Gorman from Grasstree.

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4 OUR NEWS SEPTEMBER 2010

AAMC Head of Operations Dieter Haage said the Longwall 100 business improvement project is focused on increasing longwall coal cutting time to a sustained 100 hours per week.

“The Met Coal strategy to double the value of the business has, as a critical contribution, the intention of improving the productive capacity of our underground operations,” Dieter said.

“At the heart of the opportunity lies the potential to increase the cutting hours of our longwall systems in AAMC from the 55 hours a week

prior to the commencement of the project to the benchmark of 100 hours per week sustained on an annualised basis.

“Industry best practice has changed over the last three years, and we identified significant improvement can be made in our underground operations to enable us to operate our longwalls for increased durations.

“Our objective is to achieve 100 hours per week in the next 12 to 18 months,” Dieter said.

To achieve the changes required, the company must significantly reduce the operational and maintenance delays on the longwalls while ensuring that the development rate keeps up with the anticipated accelerated performance.

“Both underground operations have targeted improvement plans setting out what needs to be completed to achieve this,” Dieter said.

“Both sites have completed an independent site review and diagnostic process, highlighting areas in need of enhancement to improve cutting times.

“Grasstree Mine has entrenched its defect elimination process, is now taking steps to become a 24 hour, seven day operation and will complete an upgrade of its coal clearance systems.

“Moranbah North will continue with its defect elimination process, targeting critical single failures, and implement an improved roster arrangement to increase the resourced time for the longwall,” he said.

Dieter said the project would be facilitated by a dedicated project manager, Brett Capper, and will involve additional resources, including subject matter expert input for areas of the business posing the biggest constraints to goal achievement.

“We look forward to a record busting performance that will add significant value to our company and take us a step closer to achieving our vision to be the best metallurgical coal business,” Dieter said.

RIO PROgRAMME REELS IN FUTURE EMPLOyEES

ANGLO AMERICAN METALLURGICAL COAL’S

LONgWALLS SHEAR OFF DOWN TIME

Students from Biloela, Moura and Wadja Wadja State High School will have the opportunity to complete an intensive ten day resource industry introductory course at Callide and Dawson Mines over their Christmas school holidays.

AAMC Operational Training Specialist Debbie Butler said the Certificate 1 in Resources and Infrastructure Operations (RIO) programme was developed to address the need for an entry level qualification for the resources industry.

“The Certificate 1 in RIO training programme is designed to provide students with knowledge and skills to help them gain future employment in the resources and infrastructure industries,” Debbie said.

“The qualification is flexible, functional and provides a solid foundation for students wishing to progress through the industry.

“In June, representatives from Callide and Dawson mines manned an information stand at the Biloela Careers Day, where they encouraged students with aspirations to one day work for the resources industry to register their interest for the popular course,” Debbie said.

“It’s a smart program for Anglo American to be involved in as it engenders interest in the mining industry and provides students in our areas of operation with future employment opportunities.

“This year Anglo American received 840 applicants for apprentice positions across five Anglo American sites and 230 were specifically for six available positions at Moranbah North.

“The top 40 applicants for Moranbah North were individuals who had completed a RIO Certificate,” Debbie said.

The Certificate 1 in RIO will be delivered at Callide and Dawson mines over 15 days. Commencing during term four 2010, students will attend up to 10 days of combined learning sessions and complete a further five days of structured workplace learning in the first week of school holidays following the completion of term four.

“The qualification is flexible, functional and provides a solid foundation for students wishing to progress through the industry.”

The Longwall 100 business improvement project commenced in June 2010 and since then Moranbah North and Grasstree longwalls have already lifted weekly cutting hours by approximately 20 per cent.

Page 5: OUR - Anglo American

5OUR NEWSSEPTEMBER 2010

On 10 August 2010 Dawson Mine opened the much anticipated Gibihi Road Viewing Platform and officially handed it over to the Banana Shire Council for public use.

Anglo American Dawson Mine General Manager Brett Thompson said the viewing platform would provide the general public with a safe vantage point to view Dawson Mine and its activities, and could potentially become a popular destination point for visitors to the region.

“We started this project four years ago to establish a safe viewing enclosure that would satisfy the curiosity of visitors and people passing by the mine who often stop on the side of the road to watch the operations,” Brett said.

“The mine has always been a keenly sought place to show visiting family and friends due to the scope of the operation and the size of the equipment, and we wanted to find a way to allow people to do this, while keeping them separated from mining activities,” Brett said.

For more than three years Dawson Mine has worked with the Banana Shire Council to progress the sustainable future of the Banana Shire and to improve the safety of the general public around the mine.

“In addition to constructing the viewing platform and car park area, a haul road overpass has been constructed to ensure the general public do not interact with mining equipment on the road, and measures are underway to restrict public access through other areas of Dawson Mine,” Brett said.

An information board has been installed at the viewing platform, providing some history about the operation, general open cut mining facts and an overview of present activities.

“Demonstrating our commitment to supporting local businesses, both the council and local small businesses were contracted to install the platform and create the information sign about the mine,” Brett said.

“We welcome the general public’s interest in our mining activities and operations, and support the community’s desire to develop a more significant tourism industry presence for the Banana Shire,” Brett said.

PLANNINg FOR THE FUTUREIn the week starting 16 August 2010 Anglo American’s Dawson Mine held community consultation meetings in Theodore, Moura and Biloela as part of a long-term mine planning process to identify sustainable opportunities for the region’s future, looking beyond present mining activities.

Anglo American incorporates mine completion planning into its mine operating plans, and as part of this process, community input is sought to help map out a positive and sustainable legacy for the region post mining.

Dawson Mine’s Acting Sustainable Development Superintendent Tom Hayes said through the completion planning process, Dawson Mine aims to capture ideas for initiatives that will enhance this region and offer alternative employment opportunities for the people who live here.

“Dawson Mine has already started investing in initiatives outside of mining that could offer long-term benefits to the local economy including a trial hardwood plantation and a trial aquaculture project,” Tom said.

Tom said the objective of the planning meetings was to talk to stakeholders and the community to gain a clear understanding of where the people of this region want to be in the future.

General Manager Brett Thompson said Dawson Mine was committed to operating in the Banana Shire for decades to come.

“It is important we understand that talking about and planning for the completion of mining activities does not shorten the life expectancy of the operation,” Brett said.

The recent community meetings were well attended and provided an opportunity for Dawson Mine to capture community ideas and identify opportunities to partner together to plan for the regions’ sustainable future post mining.

ANGLO AMERICAN’S GIBIHI ROAD VIEWING PLATFORM

OPEN TO THE PUBLIC

“ Demonstrating our commitment to supporting local businesses, both the council and local small businesses were contracted to install the platform and create the information sign about the mine .”

Youth worker Debbie Palms, Cr Maureen Clancy, Brett Thompson and Banana Shire Mayor John Hooper.

Tom Hayes presents in Moura.

Page 6: OUR - Anglo American

6 OUR NEWS SEPTEMBER 2010

In June 2010 entries for Anglo American’s new global employee excellence awards programme closed, with 19 quality nominations received from across the Metallurgical Coal business. The inaugural Applaud Awards celebrate outstanding achievements across the Group, across four categories: safety, sustainability innovation and partnership.

On 7 August 2010 the global judging panel announced the finalists from across the Group. AAMC had three successful finalists who had demonstrated true initiative and innovation in the projects they were recognised for. The Australian finalists were:

INNOvATION1. JIM McDOUgALL – MINE TECHNICIAN gRASSTREEJim proposed a new system for road construction which uses prefabricated concrete pavers to construct underground roadways. This reduces construction time and enables the road to be ready for use immediately after the construction has been completed, which would not be possible if wet concrete was used.

2. FOxLEIgH MINE – HOT SEATFoxleigh Mine was nominated for its “Hot Seat Crew” programme for haul truck operators, which provides women with a genuine entry-level opening into the resource industry and family-friendly flexibility.

3. DAN REyNOLDS – DEDICATED TRAINSDan Reynolds developed the concept of dedicated trains for AAMC that allow the most effective utilization of rail capacity across the various Queensland networks.

4. DAWSON MINE MAINTENANCE TEAM – ExCAvATOR LOAD ROLLERThe team was nominated for their introduction of an innovative safety tool – the Terex Excavator Load Roller Tool to reduce the high risks associated with changing load rollers on the undercarriage track frame of Terex excavators. The tool has improved safety, reduced wastage and maximised asset performance by decreasing change-out time. Associated benefits include increasing production time and reducing costs.

5. STEvE BROMBy – CABLE BELTSSteve Bromby is the Mechanical Coordinator for the Cable belts at Dawson. These belts were very sensitive and suffered major failures about once a week. Steve derived a simple low cost solution to keep the belt held on the pulleys around the curve sections. Once installed, this provided a step change in reliability of the belts, saving significant labour and material costs but more importantly, significantly increasing the realisable capacity of the conveyor system.

SUSTAINABILITy6. CAMERON STEWART – DAWSON CHPP SPECIALISTDawson CHPP Process Specialist Cameron Stewart successfully trialled and implemented tailings dam flocculation at Dawson’s CHPP. The existing dam was almost at full capacity and a second dam was to be constructed. Cameron identified a potential risk to the business if the CHPP was forced to shut down while the new tailings dam was constructed, and found

an innovative solution to get more out of the existing dam. Both performance and efficiency have improved as a result. Flocculated tailings enhance the water recovery and quality of tailings return water.

7. BRIAN BAUMHAMMER, DARTBROOk TECHNICAL SERvICES MANAgERSince 2006, Anglo American Metallurgical Coal’s Dartbrook Mine has planted more than 2500 Red River Gum seedlings along reaches of the Hunter River as part of a rehabilitation project to successfully extend a remnant strand of the endangered Australian native trees located on mine land. The project has been undertaken by Anglo American in partnership with the Hunter-Central Rivers Catchment Management Authority (CMA). Since its inception, it has expanded the remnant stand of Red Gums by eight hectares.

PARTNERSHIP8. FOxLEIgH MINE gEOLOgISTS – COAL RECOvERyFoxleigh Geologists have been nominated for their outstanding coal recovery procedures, which have been shared across Anglo American sites. The Foxleigh Geology Department have established benchmark coal recovery techniques which is a credit to all Foxleigh personnel involved in mining production. In geological terms, Foxleigh is one of the most structurally complex mines within the Bowen Basin. Despite its complexity the operation is successful, which is attributable to numerous departments working together with the Geologists to optimise coal recovery.

ANgLO AMERICAN ExCELLENCE AWARDS

AUSTRALIAN APPLAUD AWARD NOMINATIONS

Ian Curtis (third from left) on site with Dartbrook dairy farmers (from left) Emma Burnett, Tony Burnett, Butch Smith, Robyn Smith and Anglo American environmental contractor Ron Connolly (far right).

Page 7: OUR - Anglo American

7OUR NEWSSEPTEMBER 2010

SUSTAINABILITy ED CRAWFORDCallide Mine’s Ed Crawford championed the introduction of a veneer dust suppression system for Callide trains to Gladstone. This initiative has improved the company’s reputation with stakeholders in Gladstone, including customers, regulators and residents.

The coal veneering process applies a water-based polymer spray to the profiled coal in rail wagons after loading at the mine. The spray quickly dries to form a durable crust, which prevents fugitive dust escaping from the wagon during transit to port. Thermal coal produced from Callide Mine is transported approximately 120 kilometres by rail to customers in Gladstone. Verification by independent environmental consultants found the crust maintained its integrity throughout the 120 kilometre trip, with trains reaching up to 80 kilometres per hour.

9. ADAM gRAy – CAPCOAL UNDERgROUND MININg ENgINEERAdam was nominated for an individual Applaud award for his role in introducing the MCS Project (electronic telemetry from face machinery) at Capcoal’s Grasstree Mine. The implementation of the MCS project has improved productivity by 40 per cent which led to the ability to complete pre-install phase prior to Grasstree Longwall Move in early 2010.

10. JUSTIN MURRAy – MORANBAH NORTH MINE TRAININg SUPERINTENDENTMoranbah North Mine was nominated for the partnership formed with Moranbah High School to attract more school leavers to pursue underground mining as a future career option. Moranbah North Management has an established partnership with Moranbah State High School though its work with the Queensland Minerals and Energy Academy (QMEA). A key element of this partnership is the promotion of underground mining as a viable option for students entering the workforce.

11. SCOTT MCEWAN – gERMAN CREEk AND MORANBAH WASTE COAL MINE gAS POWER STATIONSScott McEwan project managed a partnership established with energy producing company Energy Developments Limited, to find a green use for waste coal mine gas. In the past six years, two waste coal mine gas power stations have been constructed and commissioned, at Anglo American’s Capcoal Underground Operations and Moranbah North Mine. The combined greenhouse gas reduction of the two power stations is approximately 2.3 million tonnes annually, the equivalent of planting 3.6 million trees or taking 580, 000 of cars off the road.

SAFETy12. PETER TANNPeter Tann has been nominated for his involvement rolling out the A1 safety programme at Capcoal Underground and at Foxleigh Mine. He was instrumental in the roll out of the A1 programme to Anglo American Met Coal (Capcoal and Foxleigh).

13. THE MORANBAH NORTH MINE CONTRACTS IMPLEMENTATION TEAMThe Contracts Implementation Team at Moranbah North Mine was nominated for the development of an Internet portal for use by their contractors. This is assisting contractors in the performance of their safety, health and environmental obligations on the mine site.

14. gRASSTREE MINE’S 806 B CREW DEvELOPMENT AND CREW DEPUTyThe team has been nominated for the introduction of a colour coding system to quickly identify the installed length of bolt on the fibreglass cuttable rib support at Grasstree.

The team identified a deficiency in an existing safety system: the fibreglass cuttable rib support had no means of identifying the installed length of bolt. Due to the varying geological conditions encountered underground, crews need the ability to quickly identify the length of the installed rib support. This enables them to determine if the support is appropriate and complies with mine manager support rules.

15. DRAyTON MINE – ENgINEERINg AND MAINTENANCE TEAM ACHIEvINg 1212 DAyS LTI FREE.This department consists of 92 full time employees made up of 49 plant mechanics, 11 electricians, 16 staff and 16 apprentices. Furthermore, the operation employs an additional nine full time equivalents and up to 50 contractors at any point in time, all of which have conscientiously worked for 1,212 days without a lost time injury. This is a truly outstanding achievement. Manager of this Department is Chris Gardner.

16. DAvID CAREy AND IAN BROWNBoth David and Ian were nominated for demonstrated visible leadership and implementation of the A1 Safety Risk Management Training Programme to the whole workforce at Capcoal Underground Mine.

17. DANNy RyAN AT CAPCOAL UNDERgROUNDAAMC’s Capcoal Mine has a procedure which specifies clear rules commonly known as no go zones. The no go zones or restricted zones are defined as an area where a machine must be stationary while people are within three metres either side, or five metres front and back of the machine. Danny Ryan developed an educational DVD about no go and restricted zones.

INNOvATION SCOTT BROWNScott Brown delivered a forecast US$10.3 million of value to AAMC in 2010 through the use of innovative blends and knowledge of coke making techniques such as stamp charging. His work in customer development and his technical expertise has allowed for thermal coal to be uniquely applied into the growing Indian steel industry.

Blending thermal coal and metallurgical coal for coke making has allowed AAMC to take advantages of the significant price differential between thermal coal and metallurgical coal. Using these blending principles Scott was also able to achieve premium prices for blends of some of AAMC’s lower grade coking coals. Scott through his insights, initiative and drive has added significant value to the business.

The practices developed by Scott are highly transferable and of mutual economic benefit to both AAMC and the coke-makers. By upgrading to stamp charge coke ovens, which is a low impact technology, nearly all toxic waste gases are consumed and surplus heat is recycled to generate electricity.

PARTNERSHIP IAN CURTISIan Curtis has been instrumental in developing Anglo American’s relationships with its rural dairy lease holders, who have established dairy farms on Dartbrook Mine’s lease area. Ian’s support and dedication to build these relationships has led to profitable business arrangements for both Anglo American and its lease holders.

Ian Curtis has worked tirelessly over the last three years to develop a strong and positive relationship with our rural neighbours. He has promoted the Farm Safe Accreditation through the Anglo American owned properties, with a strong emphasis on safety, educating these lessees about safety. 100 per cent of farms have been inducted including the farm children. Electrical safety has been of high priority following an incident.

Ian has also worked with passion on significant Heritage Projects at Dartbrook and Saddlers Creek in NSW, and at Dawson in QLD. This has included raising the required funds to pay for a new roof on the historic Plashett property, a house of historical significance located on the Dartbrook Mine lease.

Page 8: OUR - Anglo American

8 OUR NEWS SEPTEMBER 2010

CALLIDE MINE

PROTECTS TREE SPECIESAnglo American Metallurgical Coal has teamed up with Central Queensland University to research a rare tree species found on Callide Mine near Biloela.

Callide Mine Environmental Coordinator Sally Bulten said Callide Mine was offering a tax-free PhD scholarship and research support for studies on the biology and conservation of the threatened plant, Quassia bidwillii.

“Anglo American is committed to operating in an environmentally sustainable way, and this includes the protection of native species located on our mine lease areas,” Sally said.

“The protection of this plant will be made possible by better understanding the conditions under which it thrives,” she said.

The programme is aimed at producing a report on population ecology and conservation of Quassia bidwillii in Central Queensland.

CQUniversity Associate Professor Ashwath said there were more than 40 threatened species on mining leases of Central Queensland.

“Hopefully, the current project will encourage other mining companies to help conserve the remaining threatened species to ensure they survive for future generations,” he said.

The Quassia bidwillii research will focus on:

• Taxonomy

• Autecology

• Reproductive biology, including tissue culture

• Habitat assessment, and

• Threat abatement.

On Sunday 28 August 2010 Anglo American representatives and Dawson Mine registered native title claimants the Wulli Wulli People and their Elders met in Theodore, as part of negotiations for a Cultural Heritage Management Agreement with the Wulli Wulli People.

The day was positive and constructive, with the Wulli Wulli Elders given a tour of the Dawson development area, to see first-hand areas that had been surveyed by the cultural heritage inspection team.

WULLI WULLI

ELDERS DAy

ACCOUNTABILITyCOLLABORATION CARE AND RESPECT

AAMC’s Aboriginal and Torres Straight Islander Policy states Anglo American’s commitment to and respect of the traditions and cultures of Aboriginal people.Our goal is to work in partnership and close cooperation with the Indigenous Australians of the areas in which we operate, in a relationship of respect, understanding and trust. Through these relationships we regularly consult with traditional owners to assess potential cultural heritage issues relevant to our planned developments, and devise management plans to address these issues.

Page 9: OUR - Anglo American

9OUR NEWSSEPTEMBER 2010

LONgWALL MOvEIn early 2010 Grasstree Mine set a new standard within Anglo American for longwall moves when its 300 metre-wide longwall was transported 3.5 kilometres to a new underground location in 18 short days with zero lost time injuries.

Capcoal Underground General Manager David Carey said completing the move in 18 days was a commendable performance, made possible by months of planning, organisation and hard work.

“This alone is an excellent performance, but it was further enhanced by the mine’s safety record during this relocation period,” David said.

“During the 18 days of longwall move, 134 safety interactions were conducted, indicating an unwavering commitment to safety by Grasstree employees and contractors during this busy time.

“In addition, more than 1000 Stop, Look, Assess, Manage (SLAMs) were completed by Grasstree employees and contractors.

“This proactive approach to safety resulted in the longwall move being completed lost time injury free for both our employees and contractors,” David said.

Prior to the longwall move to the 805 panel, the Grasstree 804 longwall had retreated 3400 metres and produced around 4.25 million tonnes of premium metallurgical coal, which was shipped to international steel manufacturing customers in East, South and West Asia, Europe and Latin America.

The removal, transport and installation of the shields over to the new wall soon followed, with 170 shields moved 3.5 km onto the newly developed install road.

“This new benchmark has the potential to improve even further,” David said.

“We will apply lessons learnt from the longwall move during the planning process for the next move, which is scheduled for April 2011.

“Through this we will identify how we can increase efficiency and further reduce the window of production downtime during the relocation without any compromises to our safety standards.”

Grasstree Mine is part of Metallurgical Coal’s Capcoal mining complex and is situated in the Bowen Basin in Central Queensland. The mine produces tier one coking coal from its single longwall which is supported by three continuous miner development units.

On 2 September 2010 Anglo American’s Grasstree Mine Rescue Team came second in the EK Healy mines rescue challenge at Carborough Downs Mine in Moranbah, securing the team a position in the Annual Australian competition being held at Grasstree Mine on 22 October 2010.

This follows Grasstree’s second place position at the Queensland Mines Rescue Memorial Cup at the Newlands Mine in Glenden on 5 August 2010.

The EK Healy assessment included a mock exercise involving an underground explosion, with mines rescue required for ground work recovery and for the rescue of a person who had walked down the pit. The team were then required to set up a fresh air base and declare it operational.

Capcoal Underground Operations General Manager David Carey congratulated the team on their achievement and made special mention to team manager John Rowe who assisted with training leading up to the events.

“The Mines Rescue Challenge provides us with the opportunity to not only fine tune the mine’s emergency response capabilities, but to promote mines rescue to the wider industry,” David said.

“I know the team is extremely proud to have made it through to the finals and to be able to compete at Grasstree on their home turf.

“We wish them all the best in the Nationals,” he said.

GRASSTREE MINE IN

MINES RESCUE NATIONAL CHAMPIONSHIPS

Back row: Craig McKenzie, Mick Wilson, Kristijan Rodier, Jason Fairweather (Captain), Jason Andrews-Reid (Vice Captain)

Front row: Nathan Bulgarelli, Gus WilsonCOLLABORATION SAFETy

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10 OUR NEWS SEPTEMBER 2010

Moranbah North Mine’s longwall maintenance department has recently purchased two new Fabricated Oil Recovery pods, which will be used to recover waste oil from equipment gearboxes on both longwall faces, improving safety and environmental standards for the underground operation.

There are a number of gearboxes on the longwall face primarily used to transfer energy from the electric motors to the conveyor systems used to relay coal off the longwall face onto the conveyor belt.

The oil pods will be used to capture the waste oil, rather than discharging the oil onto the floor underground. The oil pods will then be transported to the surface and the waste oil pumped into a collection tank for processing.

MORANBAH NORTH MINE

IMPROvINg STANDARDS

Technology at Moranbah North six months ahead of schedule.

“Mitchell is now employed full time at the mine as a mine electrician,” he said.

Receiving the individual award for Excellence in Training, Justin was recognised for his outstanding work overseeing all apprentices and trainees taken on at Moranbah North Mine, as well as his efforts to build a strong partnership with Moranbah State High School.

“Moranbah North has brought education and industry together by offering school-based apprentice and trainee positions at the mine for the past three years,” Justin said.

“This involvement has significantly influenced the success of students entering the resources sector, by providing them with a working knowledge of the mining industry through ongoing support and mentoring provided by mine readiness programmes delivered at Moranbah State High School for the past five years.

“We have also done a lot to promote underground mining as an attractive career option for the youth in our local community.

“We look forward to lifting the bar even further in future years by continuing to attract outstanding people to our growing industry,” he said.

MORANBAH NORTH MINE

SkILLS ON SHOWJustin Murray receiving his MiSkill Award.

Justin said the recognition reinforces how important it is for the resources industry to have well-structured programmes for learning and development for people entering the industry.

“Anglo American is committed to ensuring employees coming through our apprenticeship programmes are provided with the right learning environment and coaching to enable them to develop their skills in their chosen trade,” Justin said.

“Winning the Apprentice of the Year Award is a fantastic achievement for Mitchell, who recently completed his four-year Certificate 3 in Electro

Two Anglo American Moranbah North Mine employees received industry-wide recognition at the 2010 Mining Industry Skills Centre Training Awards (MiSkills) on Friday 3 September 2010, with Moranbah-based apprentice Mitchell Green taking home the Apprentice of the Year Award and Training and Development Superintendent Justin Murray receiving the Individual Award for Excellence in Training.

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11OUR NEWSSEPTEMBER 2010

In the Banana Shire, Dawson and Callide Mine have contributed to a large number of community groups throughout the year, as well as continuing with ongoing commitments such as the annual $15,000 donation towards the Moura Coal and Country Festival from Dawson Mine.

Callide Mine General Manager, David O’Rourke, said Callide was pleased to provide $2500 towards the Chaplaincy Service for students in Biloela High and Primary Schools.

“Our $2500 donation secures a chaplain, Lyn Webb, for our local schools, and her guidance and support is cherished by parents, teachers and the students of the school,” David said.

“It is wonderful to be able to make a difference to the young people in our areas of operation,” David said.

Other supported initiatives supported by Callide and Dawson include:

• $3000 towards the annual Callide Valley Agricultural and Pastoral Society;

• $500 for the Biloela Girl Guides;

• $15,000 for the Central Queensland Capricorn Helicopter Rescue Service;

• $12,000 to the Callide Dawson Special Needs Support Group;

• $3000 to the Moura Tennis Club;

• $350 towards the Callide Dawson Valley Seniors Tennis Association; and

• A donation of materials to fence the Thangool playgroup’s fort area.

HOUSINg BOOST FOR MOURAOn 30 August 2010 Dawson Mine General Manager, Brett Thompson, announced a major boost for mine worker accommodation in Moura with a three year plan to almost double the capacity of the Dawson Town Village, upgrade existing housing stock and enable employees to salary sacrifice rent or mortgage interest payments if they choose to live in the town.

On Thursday 27 August 2010, representatives from Anglo American met with Banana Shire Mayor John Hooper, Deputy Mayor Cr Maureen Clancy and community members to discuss the current housing situation in Moura.

“Our accommodation plan is a win for the Moura community and a win for Anglo American workers,” Brett said.

“We are currently finalising applications to obtain additional land from the State Government to allow us to relocate more than 350 rooms from Kotti Doon to the Dawson Town Village in 2011, so our employees can live in the community and spend more in local businesses.

“Our strategy is to offer employees choice of accommodation and in doing so support the long term sustainability of the local community, particularly the town of Moura,” Brett said.

“As part of our plan, employees will have the choice to salary sacrifice their rental or mortgage interest payments if they choose to rent or buy a property in the local community.

“From 2011 to 2013 we will also start improvement works on housing for couples and families,” Brett said.

“Anglo American cares about Moura and we will continue to support this community through our accommodation plan and other local initiatives,” Brett said.

Recent initiatives in Moura supported by Anglo American include:

• The donation of land for General Practitioner accommodation;

• Active participation in the Moura Medical Group;

• $20,000 for local health support specifically around aged care;

• $60,000 commitment to establish a gymnasium;

• $100,000 commitment toward establishing an extended day care facility; and

• Support for local schools through donation of computers and funding for new technology.

CALLIDE MINE SUPPORTS CHAPLAINCy SERvICE

Chaplain Lyn with Biloela High School and Primary School students.

Met Coal has demonstrated its commitment to giving back to the communities it operates in by announcing its 2010 sponsorship programme, with more than $225,000 distributed to local community groups in the first half of this year.

Chaplain Lyn with Biloela High School and Primary School students.

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ANgLO AMERICAN METALLURgICAL COAL

201 Charlotte Street Brisbane QLD 4000 GPO Box 1410 QLD 4001 Australia

T +61 (0) 7 3834 1333 F +61 (0) 7 3834 1366

www.angloamerican.com.au

TENTH ANNIvERSARy IN AUSTRALIA27 July 2010 marked the 10 year anniversary of the acquisition by Anglo American of the Shell Coal assets in Australia. The transaction was settled on 27 July 2000, marking the commencement of Anglo American’s coal operations in Australia. At the time, Australian employees totalled about 1,600 people and assets consisted of significant interests in four underground and three open cut mines at five locations: Callide, Capcoal, Moranbah North, Drayton and Dartbrook.

20 yEARS LTI FREECapcoal Surface Operations’ electrical department achieved 20 years Lost Time Injury-free on 16 July 2010. There are 22 personnel on the team. Electrical supervisor George Todman attributes their safety success to “the nature of the trade instilling a safe and diligent approach to each task”. “Being a close knit group we all communicate well with each other and with other departments. As all site electricians are in the one department, everyone receives the same information and discusses the same issues and has the drive to achieve results,” George said.

SCHOLARSHIPS 2010Positions were recently advertised for the 2010 Undergraduate Scholarship programme with AAMC. Our scholarship programme financially supports university students throughout their degrees, with $12,500 per year over the course of their studies, valuable practical experience through guaranteed vacation work and the opportunity of a Graduate position once they have graduated. The successful candidates will be advised in November.

DAWSON MINE SPONSORS MOURA COAL AND COUNTRy FESTIvALA coal shovelling competition was held in Moura on the weekend of 27 August 2010, a tradition to attract people to the mining industry, and honouring the town’s history of mining. Dawson Mine supported the festival with a $15,000 donation to go towards security guards, entertainers and generators. In addition to this Dawson employees assisted with preparations including baking for bake sales. This annual sponsorship helps attract visitors to Moura and help support local businesses in the area.

DID yOU kNOW?

The oldest known cemetery in the New South Wales Hunter Valley is located on the Dartbrook Mine lease area. The Cemetery is managed and maintained regularly by Anglo American’s Dartbrook Mine in accordance with the Kayuga Cemetery Conservation Plan. In recent years Anglo American has carried out an extensive restoration programme to restore the cemetery and protect a valuable piece of the Hunter Valley’s history.

DID yOU kNOW?

More than 750 cows are milked daily on the Dartbrook Mine lease area. The dairy has been in operation for more than ten years.

10,000 STEP CHALLENgECapcoal and Foxleigh Mines are calling for interested participants for this year’s 10,000 steps challenge, commencing on 27 September for four weeks until the 24 October 2010. The challenge promotes health and wellness for employees and the community.

DRAyTON MINE’S APPRENTICESOn Thursday 5 August 2010 three first year apprentices from Drayton Mine attended a presentation evening to mark their graduation from the Upper Hunter Industry Training Centre’s mining skills course. In the Hunter Valley, all first year apprentices are put through an intensive six month course at a mining skills centre prior to permanent full-time work at site. Drayton’s graduating apprentices, Duncan Collins, Travis Reid and Sam Wright had attended Muswellbrook TAFE where they learnt a variety of skills to help them transition into the mining industry and their respective apprenticeships.

FEEDBACkYour feedback and story ideas are welcome. Please contact Jacqui Strambi: E: [email protected]: +61 (0)7 3834 1935

NEWS IN BRIEF