Anglo American has one of the strongest and highest quality project pipelines in world mining, which will deliver substantial volume growth. Currently under development are projects spanning a number of countries, totalling $12 billion. Further out, and encompassing South Africa, Chile, Peru, Brazil, Alaska and Canada, are an additional $29 billion of projects under consideration.

Anglo Platinum has a major expansion and replacement programme that will deliver progressively rising quantities of refined platinum, as well as other platinum group metals and nickel, through to 2015.

Coal is involved in a number of projects. In South Africa, the $505 million Zondagsfontein project, to deliver 6.6 million tonnes of coal annually from 2010, has been given the go-ahead. In Australia, Dawson and Lake Lindsay will add an additional 9.7 Mtpa at full production.

In Base Metals, the $1.5 billion Barro Alto expansion in Brazil is making good progress and, when fully on stream in 2011, will boost Anglo American’s total attributable nickel production to an average of around 100,000 tonnes a year.

Los Bronces’ $1.7 billion expansion in Chile will almost double annual copper production at the mine to an initial production level exceeding 400,000 tonnes per annum, making it one of the ten largest copper mines in the world on completion of the expansion in 2011.

In Ferrous Metals, Kumba Iron Ore’s $754 million Sishen Expansion Project produced first commercial output in 2007 and is anticipated to ramp up to design capacity in 2009.

De Beers has two projects, both in Canada, and with a collective cost of around $2 billion, at various stages of development. Snap Lake, De Beers’ first mine in the country, produced its first diamonds in October and is ramping up to full output later this year. A second mine, Victor, is planned to enter production by mid-2008.

A geologist holding a rock and measuring

Diversity: key to success

As mining technologies become more sophisticated and skills shortages are fuelled by boom conditions in the industry, we are constantly looking at alternative ways of meeting the resourcing needs of our expanding business. Through our investment in our bursary and trainee programmes, we have attracted over 4,000 individuals into our early career pipeline, some drawn from local communities and others from further afield.

A key element of our future success will rest on how well we attract, retain and reward women – who are still represented in only modest numbers. Anglo American is aiming to steadily increase the proportion of women throughout its ranks like geologist Dania Tristá (right) from our Mantos Blancos operation in Chile.

Acquisitions and new business relationships

Complementing Anglo American’s programme of organic growth, the Group is building its position in a number of key commodities, in particular copper and iron ore, through strategic value enhancing acquisitions.

The aim of becoming a significant player in the highly consolidated iron ore industry, with its high barriers to entry, has been boosted by the acquisition of 49% in the advanced MMX Minas-Rio project in Brazil. Phase 1 of the mine is expected to cost $3.46 billion, with total projected output of 26.5 million tonnes of iron ore per annum by the end of the decade. The Minas-Rio project, the Amapá mine and the expansions at Kumba’s Sishen mine will contribute towards the goal of lifting the Group’s annual iron ore output to 150 million tonnes by 2017.

The Group increased its copper profile with its successful tender for the Michiquillay project in Peru and by becoming a 50% partner, with Northern Dynasty, in the copper-gold-molybdenum Pebble project in Alaska for a staged cash investment of $1.425 billion. If approval is secured for Quellaveco in Peru, these three projects, combined with the Los Bronces and Collahuasi expansions, could see the Group’s attributable copper production rising to around 1.6 million tonnes a year by 2016.

The acquisition of a 70% stake in the Foxleigh coal mine in Australia for $620 million will further support our coal ambitions.

Recently, Anglo American and China Development Bank entered into a Memorandum of Understanding (MOU). The MOU represents a long term mutual commitment to establish a partnership to identify and develop mining projects in China, Africa and other parts of the world.