Driving operational excellence

“In spite of the cost pressures, we achieved $380 million in cost savings, synergies, efficiencies and procurement”

The mining industry continues to experience significant cost pressures across the supply chain, including freight, transportation, fuel and consumables. In spite of the cost pressures, we achieved $380 million in cost savings, synergies, efficiencies and procurement, and we managed to contain our growth in cash costs to 4% above inflation.

Above and beyond these cost-saving activities, we are bringing greater rigour to our operating platform by introducing a value based management (VBM) methodology across all our businesses. A pilot project has been completed in Anglo Coal and we are now rolling VBM out into the other businesses. In addition, an asset optimisation initiative will maximise operational efficiencies at site level and allow us to benchmark our performance and spread best practices.

We have carried out a comprehensive review to define the best approach for delivering key business support functions and, as a result, we have decided to establish three shared services centres providing common accounting and employee services, located in existing offices in Asia Pacific, Latin America and South Africa. We have also launched a centralised procurement programme to maximise the benefits of being a global operator. Initial projections indicate that we shall achieve $1 billion worth of procurement and shared services savings in the next three years.

Sustainable development