MORANBAH NORTH MINE. Analyst & Investor Site Visit Australia 28 October 2011

Transcription

1 MORANBAH NORTH MINE Analyst & Investor Site Visit Australia 28 October 2011

2 DISCLAIMER Disclaimer: This presentation has been prepared by Anglo American plc ( Anglo American ) and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Anglo American. Further, it does not constitute a recommendation by Anglo American or any other party to sell or buy shares in Anglo American or any other securities. All written or oral forward-looking statements attributable to Anglo American or persons acting on their behalf are qualified in their entirety by these cautionary statements. Forward-Looking Statements This presentation includes forward-looking statements. 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Due to the uncertainty which may be attached to some Inferred Mineral Resources, it cannot be assumed, but normally would be expected, that a major part of an Inferred Coal Resource will be upgraded to an Indicated or Measured Coal Resource as a result of continued exploration. 2

3 OPERATION OVERVIEW Moranbah North mine is an underground longwall producing premium hard coking coal 88% ownership with Mitsui, Nippon Steel, JFE, Shinsho & NS Resources Estimated coal inventory at Moranbah North of 960 million tonnes with reserves of 130 million tonnes Key operational data Currently produces 4 to 5 Mt ROM annually Potential to operate two longwalls with future expansion plans Produces high fluidity, hard coking coal mainly for export to steel manufacturers in Japan, Korea, Taiwan, India, Brazil and Europe $200m powered roof support project delivered in 2009 to increase the mine s productivity at depths Life of mine of 17 years Mt ROM Production (all HCC)

4 HISTORY Acquired by Anglo American in 2000 Moranbah North mine began operating in 1998 Coal is mined from the Goonyella Middle Seam, approximately 200 metres below the surface In 2009, Anglo American delivered a $200m powered roof support project to increase the mine s productivity at increasing depths Two longwalls currently in operation Timeline 1991: EPC566 & 506 Tenure awarded : Exploration and application for mining lease : Feasibility Study completed and mining lease granted 1996: Construction commences 1999: First longwall coal utilising 980t supports 2000: Acquisition by Anglo American 2009: Second longwall coal utilising 1750t support 4

5 LIFTING SAFETY PERFORMANCE Implementing the site Target Zero Action Plan Our journey towards Target Zero continues with our plan focussing on three main areas Total Recordable Case Frequency Rate Risk Management (both fatal risk and every day task risk) People and Behaviour Systems and Documentation. 48% reduction in our Total Recordable Case Frequency Rate over the previous year Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 5

6 OUR PEOPLE Employing more than 800 people Current issues: Accommodation and community angst over increasing fly in fly out workforce Currently offer accommodation incentives including assistance for employees to buy and live locally Own 240 houses and units supported by a 400 ensuited camp facility Looking to expand this capacity by an additional 50 units and 80 camp rooms Supporting sustainable growth of Moranbah Establishment of a $20m community investment fund Anglo American has invested more than AUD$100,000 in the Moranbah community in 2011 through our annual sponsorship program, focusing on health and education Supporting people development Leadership Development Program for all leadership roles Targeted diversity program to attract women in mining Trainee program including Mining Associates, Junior Miners, Adult Apprentices, Advanced Trades Program and School Based Apprentices Development pathways for current staff 6

7 BUSINESS PLAN Deliver the Longwall100 project while setting the benchmark for our growth projects Key Elements Single longwall operation operating at 100 cutting hours per week Mt 7 ROM Production 40% improvement in longwall cutting rates by 2015 Technical support and assurance of mine operations through Improved gas and strata management Increased development rates Utilisation of innovative techniques to maintain two heading gate roads in gassy conditions

8 ASSET OPTIMISATION Longwall100 : Targeting 100 operational hours in the longwall 1,031,365 additional tonnes of high value metallurgical coal delivered by the LW108 project in 2010, delivering $131m in benefits The Longwall100 project builds on this success, targeting performance of both longwalls, with Shift Optimisation critical to achieving the goal of 100 operating hours per week Focusing on shift performance: completing all work scheduled for the shift while minimising delays Introducing revised MOS (Management Operating System) to ensure planning and scheduling is optimised Implementing an integrated whole of mine planning and scheduling system to provide supervisors with the latest, most accurate information, at the start of every shift Launch pad for additional improvement programs for current longwalls, while lifting operating standards further for longwall performance in the future Cutting Hours / Week Cutting hours / Week LW100 Program Hourly Benefits Delivered = 74.5hrs 2011 to 2014 Shift Performance Reengineering Reliability 2011 Longwall Cutting Hours 92hr 7 day Period Average = Average = LW Move Joy 2 54hr average is taken pre-roof fall 3 41hr average is post commissioning of the Joy longwall 4 92 hours achieved over 7 day period not coinciding with reporting weeks. Actual for reporting week (Mon Sun) was 86 hours Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 8

9 GROWTH STRATEGY Increased annual output by improved longwall performance through the Longwall100 project Productivity and value improvement through increased panel width to 350m in 2014 Increased annual output by advanced longwall automation and the Longwall100 project Rail and port capacity not a constraint 9

10 THANK YOU