Anglo American plc Investment Analysts Presentation

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2 Anglo American plc Investment Analysts Presentation Dr EC Dowling - Group Mining and Exploration Director 29 March

3 DE BEERS STRATEGIC DRIVERS Drive returns on capital Sustainable Demand growth Profitable production growth Value creation through the DTC Cost efficiencies Partnerships Reputation issues Organisation effectiveness To reach our target of + US$2 BILLION EBIDTA BY

4 THE ROLE OF GME SUPPORTING DELIVERY OF DE BEERS GROWTH STRATEGY Develop and execute a supply strategy which delivers increasing value to the De Beers Family of companies. forever 3

5 DE BEERS OPERATIONS Snap Lake Victor Williamson Diamonds 4

6 DE BEERS SAFETY PERFORMANCE Excellent 2005 safety results for Group : LTIFR improved by 12% LTISR improved by 63% FIFR improved by 80% 5

7 GME KEY OUTPUTS Gaining access to highly prospective ground Finding and bringing to production new deposits Executing high value Group projects (greenfields and brownfields) Providing differentiating technical services and products to Group operating companies that add value to the bottom line Assisting the operating companies to improve the efficiency of the productive assets Providing technical assurance (risk management) Developing human technical leadership across the Family of companies GME is focussed on doing the right things, through portfolio management and the investment decision-making process and doing them right through the Accelerated New Diamond Delivery process and integrated project management process 6

8 GROUP PORTFOLIO DEVELOPMENT FOCUSING ON HIGH VALUE OPPORTUNITIES De Beers Group BU and VC Alignment Group Portfolio Forum Group Recommended Portfolio Investment Committee De Beers Group Demand/Supply Alignment Manage and maintain The World Portfolio Model De Beers Group Portfolio Development and Execution De Beers Preferred Portfolio De Beers Group Partner Alignment Supply Forecast (Find and Produce) Partner Portfolio Management Group Agreed Portfolio Group Partner Forum Page 7

9 ACCELERATED NEW DIAMOND DELIVERY DOING THINGS RIGHT 6 Years 12 Years ANDD Process Access to Ground Access to Ground Early Exploration Discover Deposits Strategic Access Conceptual Studies Exploration Feasibility Advanced Conceptual Exploration Pre- Studies Feasibility Evaluate Deposits Commission and Construction Pre-feasibility Group Portfolio Development Feasibility Projects Construction & Commission shortened the cycle time Gain Faster Access Ensure Sustainable Access Clear Strategy Faster Evaluations Customise process to business Take quantified risks Use Conceptual Framework to guide decision making Reduce risk through Phased Mining Construct mine using Standard Building Blocks Page 8

10 2006 total direct exploration budget: USD 94 million Canad a EEP China India CAR DRC Legend Secondary Source Mines Brasil Angola Botswan a Zimbabwe Australia Primary Source Mines RSA Active Exploration Areas Exploration Presence in Area Kilometers 0 2,500 5,000 7,500 10,000 9

11 GME - SOME SUCCESSES TO DATE Group Portfolio Development Group recommended portfolio identified high value targets Group Business Development/Group Exploration over 30 Joint Venture Agreements signed in 2005 Significant increase in access to prospective ground Group Exploration 31 new kimberlites discovered in 2005 Global restructure of Global Exploration focus on highly prospective areas Back office cost reduced in RSA Bell/Zeppelin system deployed Group Projects Snap Lake, Victor, SASA & Voorspoed Finsch Main Treatment Plant 4 O-O partnerships agreed to build capacity Best Practice Assessment Differentiating Technical Services Competitive advantage more from your ore Jwaneng DMS optimisation $150m revenue Wet X-ray, Mineral Identification Tool Operations Marine production greater than land and approaching 1m carats Page 10

12 RESEARCH AND DEVELOPMENT HIGHLIGHTS Mineral identification tool Development of an Indicator mineral sorter for early exploration at final stages of development. Modular High-Throughput Recovery Unit (ModRUP) Cost effective wet & dry recovery system undergoing testwork Magnetic Sorting High sensitivity magnetic sorter undergoing testwork 11

13 CONCLUSION 2005 was a good start to chapter 2 achieved focus on the high value growth opportunities Good results have begun to flow through People, systems and processes are well positioned to drive out further exploration success and operational efficiencies in