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1 This presentation is to attendees at the Mining Conference hosted by the British & Colombian Chamber of Commerce. The contents are for general information.

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Presentation on theme: "1 This presentation is to attendees at the Mining Conference hosted by the British & Colombian Chamber of Commerce. The contents are for general information."— Presentation transcript:

1 1 This presentation is to attendees at the Mining Conference hosted by the British & Colombian Chamber of Commerce. The contents are for general information only.

2 2 Our Business Platinum (75% of Anglo Platinum) Anglo American plc Gold 17% of AngloGold Ashanti Diamonds (45% of De Beers) Coal 100% Base Metals 100% Industrial Minerals 100% Ferrous Metals 100% Founded in 1917 Opened up South African gold fields Grew to be Africa’s largest company Moved primary listing to London in 1999 Restructured to become focused mining company 150,000 employees and permanent contractors Active in 40 countries Underlying earnings: 2006$5.5 billion (↑ 46%) Operating profit:$9.8 billion (↑ 54%)

3 3 Anglo American in South America Argentina Cerro Vanguardia 92.5% (Anglo Gold) Brasil CODEMIN 100% (Anglo Base Metals) Barro Alto 100% (Anglo Base Metals) Catalao 100% (Anglo Base Metals) Serra Grande 50% (Anglo Gold) COPEBRAS 73% (Anglo Base Metals) AGA Brasil Mineracao 100% (Anglo Gold) MMX 49% (Anglo Ferrous) Venezuela Loma de Níquel 91% (Anglo Base Metals) Carbones del Guasare 25% (Anglo Coal) Colombia Cerrejón 33% (Anglo Coal) Perú Quellaveco 80% (Anglo Base Metals) Michiquillay Copper project (Anglo Base Metals) Chile Collahuasi 44% (Anglo Base Metals) Mantos Blancos 100% (Anglo Base Metals) Mantoverde 100% (Anglo Base Metals) Chagres Smelter 100% (Anglo Base Metals) El Soldado 100% (Anglo Base Metals) Los Bronces 100% (Anglo Base Metals)

4 4 Overview Thermal coal mine in Guajira Province, northern Colombia Amongst world’s largest open pit export coal mines ~ 50% of Colombia’s coal production JV between Anglo Coal, BHP Billiton and Xstrata Own dedicated Rail and Port handling facilities (Puerto Bolivar) 8500 contractors & employees Supplies European & North American markets D:\Cerrejon video.WMV

5 5 Overview

6 6 Anglo Coal’s investments in Colombia & Cerrejon Coal ► Thermal Coal – for power generation and industrial markets ► Med CV, low Ash, Low Sulphur Saleable production has increased from 3 Mtpa (1998) to 30 Mtpa (2007). ► Current expansion to 32 Mtpa by 2008 ► Feasibility study underway to expand beyond 32 Mtpa ► Mine will move close to a million BCM’s / day 100% basis CdelC & CZN operationally merged – 22Mtpa Anglo Coal acquired 50% of CdelC from Glencore ABG acquire 50% of 19 Mtpa CZN complex ABG acquire 2 nd 50% of CZN Expansion to 28Mtpa

7 7 History 1997 - Anglo Coal buys 50% of Carbones del Cerrejon (CdelC) from Glencore 1997 - Consortium of Anglo, Glencore and Rio Tinto awarded Cerrejon Sur Mining Contract 1998 - Anglo, Glencore and Rio Tinto form a consortium, each owning one-third of CdelC, to exploit the Central and Oreganal Leases, 1999 - Agreement between CdelC, Cerrejon Zona Norte (CZN) and government allowing CDC access to rail and port infrastructure of CZN 2000 - Anglo and Glencore buy Rio Tinto’s one-third share of CdelC and then on-sell to BHP Billiton 2000 - Consortium buys Carbocol’s 50% interest of CZN 2001 - CZN shareholders win the tender for the Patilla Norte lease 2002 - Consortium buys ExxonMobil’s 50% Interest in CZN 2002 - CZN and CDC operationally merged 2002 - CMC Ireland incorporated to sell coal produced by CdelC and CZN 2006 - Glencore sells its stake in Cerrejon to Xstrata (US$1,700m) 2007/8 – Completion of 32Mtpa growth project

8 8 Cerrejon’s mining operation represents 50% of La Guajira’s GDP Between 1984 and 2006, Cerrejon has purchased locally US$2.2 billion worth of goods and services. Between 2004 and 2005, Cerrejon invested US$444 million in capital. For 2007, the figure will be close to US$370 million. In 2006 Cerrejon’s direct contribution to community wealth was: –It generated close to 8,600 jobs; –It paid salaries and benefits of US$137 million; –Taxes paid to the nation in 2006 were US$205 million; and –It generated royalties to a value of US$113 million. 84% of these royalties remain in La Guajira, so that ambitious social and economic development projects can take place. Cerrejon’s contribution to Colombia

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11 11 Coal Berth Commodities Pier Retention Ponds Stabilization Ponds Fuel Tanks Surge Bin Sampler Operations Bldg Stacker 1 Stacker 3 Stacker 2 Communications Tower Camp Warehouse Maintenance Shop - Main Substation Train Unloading Station Railroad Shop - Special Equip Shop - Load Handling Equip. Water Plant Power Plant Access Channel Port Facilities


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