Fact Book 2006/7 - files.investis.comfiles.investis.com/aa/docs/Final_PDF.pdf · .ew,argo...
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Anglo American Fact Book 2006/7
Transcript of Fact Book 2006/7 - files.investis.comfiles.investis.com/aa/docs/Final_PDF.pdf · .ew,argo...
Anglo American
Fact Book2006/7
Anglo American is a global leader in miningOur diversified products are essential parts of modern life.
Anglo American is committed to operating in a profitable, sustainable and responsible way.
Anglo American plc
Anglo Platinum 11
Diamonds 27
Anglo Base Metals 37
Anglo Ferrous Metals and Industries 53
Anglo Coal 65
Anglo Industrial Minerals 79
AngloGold Ashanti 89
Further information 102
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Platinum
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Diamonds
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Base Metals
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Ferrous Metals
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Anglo American is a global leader in mining, focused on adding value for shareholders, customers, employees and the communities in which it operates.
The Group has a range of high quality, core mining businesses covering platinum, diamonds, coal, base and ferrous metals and industrial minerals.
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Geographical locations
Coal
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Industrial Minerals
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Gold
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Exploration
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Platinum
Anglo Platinum 75.4%
Diamonds
De Beers(1) 45%
Base Metals
Anglo Base Metals 100%
Ferrous Metalsand IndustriesAnglo Ferrous Metals and Industries 100%
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Coal
Anglo Coal 100%
Industrial Minerals
Anglo Industrial Minerals 100%
Gold
AngloGold Ashanti 41.7%
Projects
Strategy
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Sustainable development
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Platinum Gold DiamondsCoalBase metalsIndustrial mineralsPaper & packagingFerrous metals and industries
Projects and corporate (-11%)
23
34
48
5
5
11
12
2006 underlying earnings by business unit%
South Africa Europe AmericasRest of world35
41
13
11
Geographic underlying earnings mix%
Scale and profitability growthbubble size represents turnover
20000 4000 6000 100001000 3000 5000 7000 8000 90000
5
20
15
30
25
10
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
8
9
10
Anglo Platinum
The world’s leading platinum producerAnglo American’s managed subsidiary, Anglo Platinum, mines, processes, refines and markets the entire range of platinum group metals (platinum, palladium, rhodium, ruthenium, iridium and osmium), and is the world’s largest primary producer of platinum, accounting for some 40% of global supply. All Anglo Platinum’s current operations are located in South Africa.
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Business overview Industry overview
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$2,398m
$854m
$2,845m
$1,282m
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Strategy and business development
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Pretoria
LIMPOPO
GAUTENG MPUMALANGANORTH
WEST
Johannesburg
Bela Bela
Witbank
Polokwane
Mokopane
Bushveld ComplexAnglo PlatinumAnglo Platinum – Joint VentureImpala Platinum MinesLonmin PLCNortham Platinum LimitedSouthern Era
Amandelbult
Ga-Phasha JV
Lebowa Platinum Mines
Twickenham Mines
Modikwa
Der Brochen
Mototolo JV
Booysendal JV
Northam
Union
Bafokeng/Rasimone Styldrift JV
Rustenburg
Kroondal & Marikana JVs
Pandora JV
Potgietersrust Platinums Limited
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Scale and profitability growthbubble size represents platinum production in ounces
5000 1000 1500 2500250 750 1250 1750 2000 22500
35
30
50
45
60
55
40
25
20
15
10
5
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
15
16
Total refined production (excludes production from Northam)
Rustenburg Section
Amandelbult Section
Union Section
PPRust
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Leplats
BRPM
Modikwa Platinum Mine
Western Limb Tailings Retreatment
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Kroondal Joint Venture
Marikana Joint Venture
Mototolo Platinum Mine
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Anglo Platinum – Ore Reserves
20
Anglo Platinum – Mineral Resources
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Anglo Platinum – Ore Reserves
Anglo Platinum –Mineral Resources
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NORTH
WEST
PROVINCE
GAUTENG MPUMALANGA
Johannesburg
8
5
12
4
6
3
7
4. Paardekraal 2 shaft
2. Townlands Ore Replacement
3. Amandelbult East Upper UG2
8. PPRust North expansion
6. Kroondal
1. Mototolo Joint Venture
7. BRPM joint venture
5. Lebowa Brakfontein Merensky Shaft
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2006 share of world production%
2006 platinum supply
World:7,000,000Anglo Platinum:2,863,900(includes share of Northam Platinum)
2006 palladium supply
World:8,480,000Anglo Platinum:1,563,000
40.9
18.4
2006 platinum end use%
AutocatalystChemical and electricalJewelleryOther
50.6
13.6
24.8
11.0
48.7
11.9
20.0
16.4
3.0 AutocatalystJewelleryChemical and electricalDentalOther
2006 palladium end use%
84.7
5.7
2.7
5.81.1 Autocatalyst
ChemicalElectricalGlassOther
2006 rhodium end use%
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2006 platinum supply by region%
South AfricaRussiaNorth AmericaOthers
77.6
4.45.2
12.8
2006 palladium supply by region%
South AfricaRussiaNorth AmericaOthers33.7
3.511.3
51.5
2006 platinum demand by region%
EuropeJapanNorth AmericaChinaRest of world36.9
15
15
16.2
17
2006 palladium demand by region%
Rest of worldNorth AmericaJapanEurope
15.5
25.3
35
24.2
2006 rhodium demand by region%
JapanRest of worldNorth AmericaEurope
18.7
24.6
25.9
30.7
2006 rhodium supply by region%
South AfricaRussiaNorth AmericaOthers
2.5 2.4
7.5
87.6
25
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Diamonds
Leading the world in diamond productionDe Beers is the largest producer and marketer of gem diamonds by value in the world. Its expertise extends to all aspects of the diamond industry, including prospecting, mining and recovery and, through the Diamond Trading Company (DTC), sorting, valuing and the sale of rough gem diamonds.
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Business overviewOwnership structure
Anglo American Group
DB Investments (Lux)
De Beers sa (Lux)
Debswana(Botswana)
Central Holdings Group
Government of Botswana
Namdeb(Namibia)
Williamson(Tanzania)
De Beers Consolidated
Mines(South Africa)
DiamondTrading
Company(UK)
40%45% 15%
100%
100%74%75%50%50%
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$463m
$583m
$541m
$655m
Industry overview and demand drivers
Strategy
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Exploration
29
2
3
4
1
2
1
1
2
32
35
6
7
4
1
30
Scale and profitability growth bubble size represents production carats
3000 600 1200150 450 900750 1050
0
21
18
27
30
24
15
12
9
6
3
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
2006 De Beers mine production by region%
Botswana South Africa Namibia Tanzania
67.1
0.4
28.5
4.1
Total: 51.1m carats
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32
South Africa
Botswana
Namibia
Tanzania
33
South Africa
Botswana
Namibia
Tanzania
34
2
1
43
1. Snap Lake
2. Victor
3. De Beers Marine
4. Voorspoed
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2006 world mine productioncarats%
● Botswana● Australia● Russia● D.R. Congo● South Africa● Canada● Angola● Others● Namibia● Ghana● C.A.R
22.4
19.2
15
14.5
0.7 0.21.4
9.9
8.7
5.5
2.4
2006 split of diamond jewellery retail market by sales%
Hong Kong
Turkey
Taiwan
Gulf
China
France
India
Italy
Japan
Rest of world
US
1.0
1.10
1.80
2.40
2.40
2.50
3.0
5.60
15.10
15.90
49.10
2006 global demand for retail diamond jewellery%
Note: Europe = France and Italy onlyAsia Pacific = China, Hong Kong, Taiwan
● US● Other● Japan● Europe● Asia-Arabia● Asia-Pacific49.1
15.9
15.1
8.1
5.26.5
Source: De Beers
Source: De Beers Source: De Beers
36 | AngloAmericanplc Fact Book 2006/7
DiAmonDs
mARKETinfoRmATion
Anglo Base Metals
Focusing onquality assetsAnglo Base Metals comprises copper, nickel, zinc and mineral sands operations and projects in South America, southern Africa and Ireland.
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Business overview
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Industry overview and demand drivers
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$3,876m
$1,678m
$4,214m
$1,990m
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Strategy and business development
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2
3
1 4
5
2
3
9
4
5
6
5
8
7
1
1
40
Scale and profitability growthbubble size represents combined Cu, Ni, Zn production tonnage
500 1500 2500 45000 1000 2000 3000 3500 4000
70
60
50
40
30
20
10
0
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
41
42
43
Copper Division – Ore Reserves
44
Copper Division – Mineral Resources
45
Zinc Division – Ore Reserves
46
Zinc Division – Mineral Resources
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Nickel Division – Ore Reserves
Nickel Division – Mineral Reserves
Niobium – Ore Reserves
48
Heavy Minerals – Ore Reserves
Heavy Minerals – Mineral Resources
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Projects – Ore Reserves
Projects – Mineral Resources
50
2
1
3
4 5
1. El Soldado 5. Barro Alto 4. Quellaveco (on hold)
2. Collahuasi debottleneck (unapproved)
3. Los Bronces expansion (unapproved)
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Estimated end usage%
Copper
Nickel
Stainless steelNon-ferrous alloysSpecial usesPlatingLow alloy steels and foundry
67
9
7
7
10
Construction Electrical products Machinery/equipment Consumer durables Transport40
10
10
15
25
Zinc
Construction Electrical products Machinery/equipment Consumer durables Infrastructure
48
9
10
10
23
52
Ferrous Metalsand Industries
Leading producer of iron ore and manganese
Anglo Ferrous Metals and Industries principally comprises iron ore, manganese and carbon steel operations in South Africa, manganese operations in Australia, carbon steel and grinding media operations in North America and grinding media operations in South America and Australia.
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Business overview
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$1,360m
$1,456m
$1,560m
$1,779m
Products and applications
55
31
2
45
3
3
3
2
1
1
1
2
1
1
2
56
Scale and profitability growthbubble size represents turnover
250 750 1250 22500 500 1000 1500 1750 2000
35
30
25
20
15
10
5
0
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
2006 turnover by origin%
South AfricaRest of AfricaUSOther North AmericaSouth AmericaAustraliaOther AustralasiaEurope
81.2
4.2 3.9
3.8
1.0
0.6
2.4
2.8
2006 turnover by destination%
South AfricaRest of AfricaUSOther North AmericaSouth AmericaAustraliaChinaIndiaOther AustralasiaEurope
41.7
3.01.2
14.2
11.45.0
6.3
16.4
0.2
0.7
2006 EBIT Contribution%
KumbaHighveld SteelScaw MetalsTongaat-HulettSamancor GroupBoart Longyear (0%)Other (-1%)
57.2
3.8
16.9
11.8
11.3
57
58
59
Kumba Iron Ore – Ore Reserves
Kumba Iron Ore – Mineral Resources
60
Manganese – Ore Reserves
Manganese – Mineral Resources
61
1
1. Sishen Expansion
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Production
Use (finished steel)
ChinaJapanUnited StatesRussiaSouth KoreaGermanyIndiaUkraineItalyBrazilOthers
EU (27)Other EuropeCISNAFTACentral and South AmericaAfricaMiddle EastAsia exc. ChinaChina
9.4
33.8
2.52.53.33.5
3.83.9
23.6
7.95.7
4.3
2.5
16.6
3.3
32.0
3.2
13.9
22.2
2006 steel production and use%
1.9
Production
Consumption
AustraliaBrazilChinaOtherCISIndia
EuropeFormer Soviet UnionUSSouth AmericaAfricaMiddle EastChinaJapanIndiaSouth KoreaOceaniaOther
20.0
20.0
17.0
13.0
20.0
10.0
3.0
4.5
10.8
8.67.8
3.9
1.51.3
2.5 1.4 2.9
51.9
2006 world iron ore production and consumption%
63
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Anglo Coal
One of the world’s largest private sector coal producersAnglo American plc’s coal interests are held through its wholly owned Anglo Coal division, one of the world’s largest private sector coal producers and exporters. Anglo Coal has mining operations in South Africa, Australia, Colombia, Venezuela and Canada. Anglo Coal produces thermal and metallurgical coals for international customers in the Med-Atlantic and Indo-Pacific markets as well as local customers in South Africa and Australia.
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Business overview
Industry overview and demand drivers
66
$864m
$1,019m
$1,082m
$1,243m
International seaborne metallurgical coal market
International seaborne thermal coal market
67
10
3
8
6
7
1
2 94
5
15
34
6
2
1 2
1
68
Scale and profitability growthbubble size represents production tonnes
100 300 500 900 10000 200 400 600 700 800
70
60
50
40
30
20
10
0
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
2006 operating profit split by by region%
South AfricaAustraliaSouth America
Projects and corporate (-2%)44
26
32
69
70
71
Anglo Coal – Coal Reserves
72
Anglo Coal – Coal Resources
73
Anglo Coal – Coal Resources(6)
Anglo Coal – Gas Reserves(8)
74
Footnotes
75
1
34
5
6
2
1. Cerrejon
4. Lake Lindsay (part of the German Creek complex)
5. Mafube
6. Goedehoop: Plant Fine Coal Beneficiation
3. Dawson
2. Peace River Coal
76
World energy consumption by fuel, 2004%
CoalOilGasNuclearRenewablesHydroelectricityOther
34.3
25.1
10.6
20.9
6.5
2.2 0.4
International seaborne metallurgical coal, 2005%
57.3
8.7
11.9
5.5
11.9AustraliaIndonesiaRussiaCanadaChinaUSOthers
Supply
43.4
14.5
13.8
10.3
4.84.8
3.4
4.8 Japan KoreaIndiaBrazilChinaUKTaiwanGermany
Demand
2.8
1.9
International seaborne thermal coal, 2005%
21.5
18.1
13.614.6
13.4
11.2
7.7 AustraliaIndonesiaRussiaSouth AfricaChinaColombiaOthers
Supply
33.8
16.616.9
11
9.2
12.5 Japan KoreaTaiwanUKGermanyOthers
Demand
77
78
Industrial Minerals
Leader inUK aggregatesAnglo Industrial Minerals (AIM) has two subsidiaries: Tarmac and Copebrás. Tarmac is a leader in the construction materials business in the UK, continental Europe, the Middle East and Far East. It is principally involved in the production of crushed rock, sand and gravel, asphalt, concrete and mortar, concrete products, lime and cement. Copebrás is a leading Brazilian producer of phosphate fertilisers, phosphoric acid and sodium tripolyphosphate (STPP).
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Business overview
80
$336m
$370m
$580m
$618m
Industry overview
Strategy and business development
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81
82
2
2
1
4
3
33
3
1
2
2
1
Scale and profitability growthbubble size represents turnover
50 150 250 4000 100 200 300 350
10
9
8
7
6
5
4
3
2
1
0
Operating profit $m
Ope
ratin
g m
argi
n %
2000
2006
24.5
10.2
17.3
8.85.7
33.5
OtherCrushed rockSand and gravelConcrete productsConcreteCoated stone
Operating profit by product 2006%
83
84
Phosphate products – Ore Reserves
Phosphate products – Mineral Resources
85
17
260
11
10 AsphaltConcreteMortar and screedConcrete productsOther aggregates
UK market by product volume%
86
UK consolidation – top five market shares%
Aggregates
40
1980
Asphalt
59
Ready-mixed concrete
65
Aggregates
67
2005
Asphalt
81
Ready-mixed concrete
79
UK market by product value%
23
25
31 4
17AsphaltConcreteMortar and screedConcrete productsOther aggregates
Total value of Tarmac’sUK marketis $11.16 billion
New constructionRepair and maintenance
5446
Private housingPublic housingOther publicIndustrialCommercialInfrastructure
26
5
16
12
32
9
Private housingOther privateOther publicPublic housing32
18
19
31
2006 estimated UK valueof construction market%
New construction marketstructure by value%
Repair and maintenancemarket structure by value%
87
TarmacOther
Primaryaggregates
Asphalt Ready-mixedconcrete
Concreteblocks
Concreteflooring
Lime
22.1 29.0 19.4 23.2 16.036.0
25.8
7.0
Mortar Cement
Tarmac share of UK heavy side building materials
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2005/6 2006/7 2007/8 2008/9 2009/10 2010/11
£ bi
llion
s
Strategic road expenditure in UK
Strategic rail plan
TotalOperating expenditureMaintenanceRenewalsOther enhancements
0
1
2
3
4
5
6
2005/6 2006/7 2007/8 2008/9
£ bi
llion
s
88
Gold
A leading gold producerAnglo American’s gold interests are represented by its 41.7% interest in AngloGold Ashanti, one of the world’s leading gold producers, with operations in Africa, North and South America and Australia.
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Business overview Industry overview
$467m
$332m
$843m
$871m
90
Strategy•
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23
51 6
7
4
1
2
3
5
4
1
867
3
2
2
1
1
92
Scale and profitability growthbubble size represents production in troy ounces
100 15050 300 350 500 550 6000 200 250 400 450
35
30
25
20
15
10
5
0
Operating profit $m
Ope
ratin
g m
argi
n %
2006
2000
2006 group adjusted gross profit by region%
South AfricaRest of AfricaAmericasAustralia/AsiaOther
52
19
13
14
2
93
94
95
96
AngloGold Ashanti – Ore Reserves
97
AngloGold Ashanti – Mineral Resources
98
1. Mponeng
2. TauTona (CLR below 120L)
2. TauTona (CLR shaft pillar)
2. TauTona (VCR pillar)
3. Moab Khotsong
312
99
5
4
4. Cuiabá 5. Boddington
100
2006 gold production
World total:69,760,080ozAngloGold Ashanti total:5,635,000oz
2006 share of world production100% basis
8.1
2006 consumer jewellery demand%
IndiaChinaJapanSouth East AsiaMiddle EastTurkeyUSItalyUK
28.3
15.4
4.5
9.3
17.3
3.6
17
1.9
2.8
2006 world mine production by country%
South AfricaUSAustraliaPeruChinaIndonesiaCanadaRussiaOther
12.2
11.4
11.3
9.4
3.7
29.1
4.8
10.57.6
101
Other Anglo American publications
Contact details
www.angloamerican.co.uk
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