ANGLO AMERICAN BENEATH THE SURFACE JSE ESG Showcase

ANGLO AMERICAN: BENEATH THE SURFACE JSE ESG Showcase, November 2018

WHO WE ARE AT A GLANCE Anglo American is a globally diversified mining business Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world’s developed and maturing economies. – Diamonds (De Beers) – Copper – Platinum Group Metals (PGMs) – Iron Ore – Coal (metallurgical & thermal) – Nickel & Manganese 2

OUR PURPOSE Re-imagine mining to improve people’s lives Anglo American’s purpose is to: Re-imagine mining to improve people’s lives What mining could be and how we envisage A Purpose is about more than just the work mining in the future. How we think differently we do and the profits we make, it’s about the and innovatively about mining and our entire impact we have on everything we touch. value chain. 3

OUR STRATEGY Portfolio, Innovation, People • High quality and long-life assets Portfolio • Differentiated portfolio with growth options • Sustainable cash flow and returns • Future. Smart Mining. TM 1. Technical innovation Innovation 2. Operating Model 3. Sustainability Strategy • Marketing – creating value from mine to market • Valuing partnerships – People our licence to operate • High performance, inclusive culture • Organisation Model 4

OUR SEVEN PILLARS OF VALUE Designed to deliver value for all our stakeholders We track our strategic progress using KPIs based on our seven pillars of value: • Safety and Health: to do no harm to our workforce • Environment: to minimise our impact on the environment • Socio-political: to partner in the benefits of mining with local communities and governments • People: create sustainable competitive advantage through capable people and an effective, performance-driven organisation • Production: to sustainably produce valuable product • Cost: to be competitive by operating as efficiently as possible • Financial: to deliver sustainable returns to our shareholders. 5

WHERE WE OPERATE Our operating assets De Beers Iron Ore Copper Coal Platinum Nickel and Manganese 6

SAFETY IS OUR PRIORITY Our vision is for zero harm • Our vision is for zero harm; to eliminate fatal injuries in the workplace and to mine in an injury-free way. • In 2018 we have recorded the loss of 5 lives (9 in 2017). • The Group Total recordable case frequency rate per million hours at end-Sept 2. 60 (2017: 3. 46). • Our safety-management approach is risk- based and focuses on integrating safe working practices into every aspect of what we do. This is founded on three key principles: • a mindset of zero harm; • no repeats; • and the application of simple, nonnegotiable standards. 7

FUTURESMART MININGTM Our blueprint for the future of our business • Future. Smart Mining™ is Anglo American’s innovation-led approach to sustainable mining. • Future. Smart Mining. TM incorporates both technical innovation and our Sustainability Strategy. • Together, these pieces of work will deliver step-change improvements across all aspects of our business. • We are focusing on finding new ways to make mining: – safer – more efficient – more sustainable – with a smaller physical footprint 8

TECHNICAL INNOVATION Creating shared value through the smart application and adaptation of technology • The focus of our technical innovation work is • In response to the global drive for a more sustainable approach to mining – identifying where value can be realised quickly economically, socially and environmentally – through the smart application and adaptation of we have articulated a new approach to technology. innovation and technology that addresses mining’s major challenges. Grasp Challenges Consider entire value chain. 3 lenses: • Sustainability (water, energy) • Processing • Mining Value identification Deliver Consolidate Ideate • Open Forums • Internal participation • Open and collaborative Collaboration • Technology Programmes • Valued defined • Balance delivery over time • Rapid dev. cycles (Smart. Path) • Learning plans • Smart. Box Fast, iterative execution 9

PICTURE THIS… Innovation that redefines modern mining (safety, productivity, sustainability) The Modern Mine: Continuous mining deep underground with our people out of harms way. The Concentrated Mine: A mine that gets more directly to the precious metal. The Waterless Mine: Extracting precious resources without the need for fresh water The Intelligent Mine: A mine that learns for itself supporting safer, more productive mining 10

OUR SUSTAINABILITY STRATEGY The framework 11

TRUSTED CORPORATE LEADER Accountability Vision: To transform the relationship between mines, communities and wider society. Policy Advocacy Vision: To take a lead on issues that affect our business in a way that is collaborative and aimed at society’s wider goals. Ethical Value Chains Vision: To be a part of a value chain that supports and reinforces positive human rights and sustainability outcomes. 12

THRIVING COMMUNITIES Livelihoods Vision: Shared, sustainable prosperity in our host communities. Education Vision: For all children in host communities to have access to excellent education and training. Health and well-being Vision: For the SDG targets for health to be achieved in all our host communities. 13

HEALTHY ENVIRONMENT Climate change Vision: To operate carbon-neutral mines. Biodiversity Vision. To deliver net positive impact (NPI) across Anglo American through implementing the mitigation hierarchy and investment in biodiversity stewardship. Water Vision. To operate waterless mines in water scarce regions. 14

GENERATING LASTING ECONOMIC BENEFITS The needs and concerns of all our stakeholders inform and guide our approach to doing business We strive to generate long term benefits everywhere we operate – to create value for shareholders as well as local communities 15

WORKING WITH THE COMMUNITY Improving operations’ understanding of their socio-economic impacts - SEAT • SEAT (Socio-Economic Assessment Toolbox) is the primary means by which we enhance the development outcomes and capacities of host communities. • Operations undertake SEAT every three years • An industry tool: competitors, suppliers and NGOs now use SEAT • Generated initiatives in education, housing, health training and enterprise development “The toolkit represents one of the most significant corporate investments we know of to equip personnel to better understand, plan, implement and account for the social and economic performance at the local operations level. ” Aron Cramer, Chief Executive Business for Social Responsibility (BSR ) 16

A WORLD-LEADING RESPONSE TO HIV/AIDS AND TB We are recognised leaders for our workplace health programmes • We are recognised leaders for our TB and HIV/AIDS programmes in the workplace. • First to provide free counselling, testing and treatment to employees and dependants (since extended to contractors) • Building on our strong foundations for improving our management of TB and HIV/AIDS, we have set the following ambitious targets for 2020 and 2022: – Achieve the UNAIDS 90/90/90 targets for 2020: 90% of our employees should know their HIV status; 90% of identified seropositive individuals should be on ART; and 90% of those should have undetectable viral loads – By 2022, we aim to reduce TB incidence in our workforce to 30% of 2015 levels, and HIV incidence in the workforce to less than 0. 1%. 17

DEVELOPING ENTREPRENEURS More than 25 years’ experience in enterprise development • Our first enterprise development programme, Zimele, was launched in South Africa in 1989 • We have since developed a best practice model and have now implemented schemes in Chile, Botswana, Brazil and Peru • Since 2008, across all schemes, we have supported 120, 812 jobs and supported 64, 291 SMEs inside and outside our supply chains 18

CLIMATE CHANGE AND ENERGY Anglo American’s climate change policy articulates our commitment to five principles: • Building internal agility and ensuring resilience to climate change • Driving energy and carbon savings throughout our business • Understanding and responding to the carbon life-cycle risks and opportunities of our products • Developing and implementing collaborative solutions with our stakeholders • Contributing our skills and knowledge to the development of responsible public policy. 19

WATER STEWARDSHIP We use water sparingly and efficiently, and re-use what we can • In 2017, we started implementing and embedding our new water-management standard and associated reporting requirements. • The standard guides a risk-based, regional approach to water management, in line with global best practice and the ICMM water reporting guidelines. • We are working towards the following revised, more ambitious targets: By 2020: –Reduce the abstraction of freshwater in water-scarce regions by 20% –Increase water-recycling levels to 75% By 2030 –Reduce the abstraction of freshwater in waterscarce regions by 50% 20

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