A strategy for unlocking value
Delivering operational efficiencies
- Asset optimisation and procurement delivered more than $1.6 billion of benefits in 2009 ($1.4 billion from core operations), exceeding target
- Asset optimisation and procurement target of $2 billion now to be delivered from core businesses alone by 2011
- Anglo Platinum - significant restructuring achieved, flat cash operating costs target met, 3 high cost shafts on care and maintenance, labour productivity up 21% in 2 years
- Significant cash cost reduction of $712 million (5%) and productivity improvements achieved across the Group - headcount reduced by 23,400
Creating a more effective, focused business
- Major Group reorganisation completed, creating new generation of leadership within a leaner, more effective structure
- Board strengthened and refreshed - new chairman and 3 new non-executive directors to bring further mining, commercial and financial expertise
- Divestment programme under way - running businesses to maximise value; sales of Tarmac's European aggregates and Polish concrete products businesses agreed with expected proceeds of approximately $400 million; Zinc sale process initiated with significant buyer interest
Clear strategy driving targeted, high quality growth of selected commodities
- $17 billion of approved projects in most attractive commodities to drive organic production growth of more than one third by 2013 - copper to grow by 33%; iron ore by 82%; nickel by 139%
- Development of four key strategic projects on track - Minas Rio, Los Bronces, Barro Alto and Kolomela (Sishen South)
- New growth projects: Quellaveco (copper) and Grosvenor (metallurgical coal) - first stage approvals expected in 2010
Operating profit includes share of associates' operating profit (before share of associates' tax, finance charges and minority interests) and is before special items and remeasurements, unless otherwise stated. See note 2 and note 3 to the financial statements for operating profit on a total Group basis. For definition of special items and remeasurements, see note 7 to the financial statements. See note 12 to the financial statements for basis of calculation of underlying earnings.
Operations considered core to the Group are Platinum, Diamonds, Copper, Nickel, Iron Ore and Manganese, Metallurgical Coal and Thermal Coal.
Unless otherwise stated, 'tonnes' are metric tons, 'Mt' denotes million tonnes, 'kt' denotes thousand tonnes and 'koz' denotes thousand ounces.
Unless otherwise stated, '$' and 'dollars' denote US dollars and 'cents' denotes US cents.
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