Plain-text annual report
Integrated
Annual Report
2023
Re-imagining mining to
improve people’s lives
Transforming the very nature of
mining for a safer, smarter, more
sustainable future.
Using more precise technologies, less
energy and less water, we aim to reduce our
environmental footprint for every ounce, carat
and kilogram of precious metal or mineral.
We are combining smart innovation with
operational excellence and the utmost
consideration for our people, their families,
local communities, our customers, and the
world at large – to better connect precious
resources in the ground to all of us who need
and value them.
And we are working together to develop
better jobs, better education and better
businesses, building brighter and healthier
futures around our operations in host
communities and ultimately for billions of
people around the world who depend on our
products every day.
Our metals and minerals help unlock a
cleaner future for our planet and meet the
needs of a growing population, from homes
and electronics, to food and luxuries – these
are future-enabling products.
Revenue
Underlying EBITDA◊
Operating profit
$30.7 bn
$10.0 bn
$3.9 bn
Underlying earnings per share◊
Profit attributable to equity shareholders
Net debt◊
$2.42
$0.3 bn
$10.6 bn
Total dividends per share
Attributable free cash flow◊
Group attributable ROCE◊
$0.96
$(1.4) bn
16%
Number of fatalities
Total recordable injury frequency rate (TRIFR)
Level 4-5 environmental incidents
3
1.78
0
Cover image
At our Quellaveco copper mine in Peru, around two-thirds of
the drilling team, and 30% of the blasting team, are women –
all from the neighbouring Moquegua community.
◊ Alternative Performance Measures
Words with this symbol ◊ are defined in the Alternative Performance Measures
section of the Integrated Annual Report on pages 318–323.
$30.7 bn$35.1 bn20232022322023202216%30%20232022$10.0 bn$14.5 bn20232022$3.9 bn$9.2 bn20232022$0.3 bn$4.5 bn20232022$10.6 bn$6.9 bn20232022$(1.4) bn$1.6 bn20232022$2.42$4.97202320221.782.1920232022$0.96$1.98202320220020232022 Contents
Strategic Report
02 Our business at a glance
04 Chairman’s statement
06 Chief Executive’s statement
08 Our business model
09 Our value chain
10 Purpose to value
11 Creating value for our stakeholders
14 How we make decisions
16 Understanding our stakeholders
20 Our material matters
24 Looking at global trends
29 Reflecting stakeholder views in our
Board decision making
30 Strategy: portfolio
40 Strategy: innovation
66 Strategy: people
76 Capital allocation
79 Managing risk effectively
86 Key performance indicators
90 Group financial review
94 Copper
100 Nickel
104 Platinum Group Metals (PGMs)
108 De Beers
113 Iron Ore
119 Steelmaking Coal
123 Manganese
125 Crop Nutrients
129 Corporate and other
130 Non-financial and sustainability
information disclosures and footnotes
132 Disclosures related to the
recommendations of the TCFD
138 Streamlined energy and carbon reporting
Governance
140 Chairman’s introduction
142 Directors
146 Executive Leadership Team
148 Board roles and responsibilities
151 Board operations
153 Board activity
156 Board effectiveness in 2023
158 Board visits in 2023
161 Stakeholder engagement
164 Sustainability Committee report
166 Nomination Committee report
168 Audit Committee report
178 Directors’ remuneration report
179 Remuneration Committee
chairman’s introduction
182 At a glance
185 Directors’ remuneration policy
191 Annual report on directors’ remuneration
212 Statement of directors’ responsibilities
Financial statements and other
financial information
214 Independent auditors’ report
222 Primary statements
226 Notes to the financial statements
304 Financial statements of the
Parent Company
307 Summary by operation
309 Key financial data
310 Exchange rates and commodity prices
Ore Reserves and Mineral Resources
312 Estimated Ore Reserves
314 Estimated Mineral Resources
Other information
316 Glossary of terms
318 Alternative performance measures
324 Production statistics
327 Quarterly production statistics
328 Non-financial data
330 Directors’ report
334 Shareholder information
335 Other Anglo American publications
and legal disclaimers
The Strategic Report forms part of the Anglo American plc
Integrated Annual Report for the year ended
31 December 2023 and should be read in conjunction
with the Governance section and Financial Statements
of the Integrated Annual Report.
Our reporting suite
You can find this report and others, including the
Sustainability Report, the Climate Change Report, our Tax
and Economic Contribution Report, and the Ore Reserves
and Mineral Resources Report, on our corporate website.
▶ For more information, visit:
angloamerican.com/investors/annual-reporting
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Anglo American
Basis of reporting
The Anglo American plc Integrated Annual Report for
the year ended 31 December 2023 is produced in
compliance with UK regulations. Additionally, we have
compiled this report using the Guiding Principles and
Content Elements set out in the International Integrated
Reporting Council’s Framework.
Integrated Reporting aims to demonstrate how
companies create value sustainably over time, for a
range of stakeholders – consistent with Anglo American’s
Purpose, business approach and strategy. This report,
therefore, includes a comprehensive overview of our
material matters, in the eyes of our stakeholders, and the
impact these matters have on the value we create.
Measuring performance
Throughout the Strategic Report we use a range of
financial and non-financial measures to assess our
performance. A number of the financial measures are
not defined under IFRS so they are termed ‘Alternative
Performance Measures’ (APMs). We have defined and
explained the purpose of each of these measures on
pages 318–323, where we provide more detail, including
reconciliations to the closest equivalent measure under
IFRS. These APMs should be considered in addition to,
and not as a substitute for, or as superior to, measures of
financial performance, financial position or cash flows
reported in accordance with IFRS.
Units
‘Tonnes’ are metric tonnes, ‘Mt’ denotes million tonnes,
‘kt’ denotes thousand tonnes, ‘Mct’ denotes million carats
and ‘koz’ denotes thousand ounces; ‘$’ and ‘dollars’
denote US dollars and ‘cents’ denotes US cents.
Forward-looking statements, third-party information and
Group terminology
This document includes references to the
Anglo American Group, forward-looking statements
and third-party information. For information regarding
the Anglo American Group, forward-looking statements
and such third-party information, please refer to the IBC
of this document.
Non-Financial and Sustainability Information Disclosures
Non-financial and sustainability information in this report
includes subsidiaries and joint operations over which
the Anglo American Group has management or acts as
operator. It does not include independently managed
operations, such as Collahuasi and Samancor, nor does
it include De Beers' non-managed joint operations in
Namibia and Botswana, unless specifically stipulated.
We continue to evolve our non-financial disclosures in
line with emerging recommendations and principles,
ensuring we continue to comply with the reporting
requirements contained in sections 414CA and 414CB
of the Companies Act; the Financial Stability Board's Task
Force on Climate-related Financial Disclosures (TCFD);
and the Streamlined Energy and Carbon Reporting
(SECR) rules. The tables on pages 130 and 132–138
are intended to guide stakeholders to where the relevant
non-financial and sustainability information is included
within our Strategic Report and other externally available
Anglo American plc publications.
02
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Our business at a glance
Anglo American is a leading global mining company with a world
class portfolio of mining and processing operations and undeveloped
resources, providing tailored materials solutions for our customers,
with around 60,000 employees working for us around the world.
North America
1,200 employees(1)
$102 m wages and benefits paid(2)
$66 m taxes and royalties(3)
$166 m local procurement spend(4)
Chile
4,200 employees(1)
$488 m wages and benefits paid(2)
$503 m taxes and royalties(3)
$3,295 m local procurement spend(4)
South Africa
36,100 employees(1)
$1,628 m wages and benefits paid(2)
$1,210 m taxes and royalties(3)
$4,268 m local procurement spend(4)
Australia/Asia
3,600 employees(1)
$629 m wages and benefits paid(2)
$1,279 m taxes and royalties(3)
$1,687 m local procurement spend(4)
Peru
1,400 employees(1)
$164 m wages and benefits paid(2)
$324 m taxes and royalties(3)
$797 m local procurement spend(4)
Brazil
4,000 employees(1)
$187 m wages and benefits paid(2)
$397 m taxes and royalties(3)
$1,257 m local procurement spend(4)
Europe
2,900 employees(1)
$557 m wages and benefits paid(2)
$459 m taxes and royalties(3)
$953 m local procurement spend(4)
Other Africa
6,500 employees(1)
$385 m wages and benefits paid(2)
$844 m taxes and royalties(3)
$596 m local procurement spend(4)
London
1
United
Kingdom
Finland
1
1
Canada
Product groups/corporate*
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Marketing hub
Early-stage project
* Number within dot denotes number
of operations, shown by product.
2
Botswana
2
Namibia
Zimbabwe
1
1
Peru
3
Chile
Brazil 2 1
Shanghai
Shanghai
Singapore
Singapore
South Africa
5
1
1
2
Australia 1 5
See page 131 for footnotes.
Our business at a glance
03
Copper
Nickel
PGMs
De Beers
$3,233 million
Underlying EBITDA◊
32%
Group underlying EBITDA◊
826 kt
Production: Copper
$133 million
Underlying EBITDA◊
1%
Group underlying EBITDA◊
40 kt
Production: Nickel
$1,209 million
Underlying EBITDA◊
12%
Group underlying EBITDA◊
3,806 koz
Production: PGMs
$72 million
Underlying EBITDA◊
1%
Group underlying EBITDA◊
31.9 Mct
Production (100% basis)(5)
Our business
We provide many of the essential
metals and minerals that are fundamental
to the transition to a low carbon economy
and enabling a cleaner, greener, more
sustainable world, as well as meeting the
growing consumer-driven demands of the
world’s developed and maturing economies,
from homes and electronics to food and
luxuries. And we do so in a way that not
only generates sustainable returns for our
shareholders over the long term, but that also
strives to make a real and lasting positive
contribution to society as a whole.
▶ More detailed information and maps can be found
in the business reviews
See pages 94–129
Iron Ore
Steelmaking Coal
Manganese (Samancor)
Crop Nutrients
$4,013 million
Underlying EBITDA◊
40%
Group underlying EBITDA◊
35.7 Mt
Production: Iron ore –
Kumba
24.2 Mt
Production: Iron ore –
Minas-Rio
$1,320 million
Underlying EBITDA◊
13%
Group underlying EBITDA◊
16.0 Mt
Production: Steelmaking
coal
$231 million
Underlying EBITDA◊
2%
Group underlying EBITDA◊
3.7 Mt
Production: Manganese ore
$(60) million
Underlying EBITDA◊
Woodsmith is a greenfield
project
Corporate and other
$(193) million
Underlying EBITDA◊
Our overview video gives a complete
introduction to what we do and our
ambitions for the future
See https://www.youtube.com/
watch?v=cYUz_h97X0A
Strategic Report Integrated Annual Report 2023Anglo American plc 04
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Chairman’s statement
Re-imagining mining to
improve people’s lives
We have been taking clear steps to improve competitiveness and resilience,
while continuing to progress our highly attractive growth options.
The energy transition; an expanding global
population, with an increasingly aspirant
middle class; and the need to improve
agricultural productivity in a sustainable way,
all require mined products to be delivered on
an unprecedented scale. Anglo American
is focused firmly on value-led business
decisions so that we are set up to deliver
enduring value for decades to come.
Safety
Safety is our paramount priority, and keeping
our people safe is an unremitting endeavour.
So, it was deeply saddening that three
people died in 2023 following accidents at
our managed operations: one at our Kumba
Iron Ore business in South Africa, and two at
Copper in Chile.
We are devoting ever more time and
resources to creating an environment where
serious incidents simply don’t happen. A key
focus is on Visible Felt Leadership (VFL),
connecting operational leaders on a one-
to-one or small-group basis around a task or
activity to ensure that it is done safely. This is
being complemented by a new Contractor
Performance Management framework
designed to provide the foundation for
safe and stable production by creating
a physically and psychologically safe
workplace where employees, contractors
and suppliers all have the confidence to
speak up if they have any concerns around
safety.
Sustainable mining
Mined products are ever more central to the
prosperity of our planet and society and
we recognise our role in ensuring they are
delivered as sustainably as possible. Our
Sustainable Mining Plan stretches us across
the three dimensions of ESG and includes
our plans to reduce our own greenhouse
gas (GHG) emissions, reduce fresh water
abstraction, and deliver net-positive impacts
in biodiversity wherever we operate. We aim
to be carbon neutral (Scope 1 and 2 GHG
emissions) across our operations by 2040
and have an ambition to at least halve our
Scope 3 emissions by the same date.
Notwithstanding a 2% increase in
production volumes, our total Scope 1
and 2 GHG emissions were 6% lower
than in 2022. From April 2023, when our
new Quellaveco copper mine in Peru was
supplied with 100% renewable electricity,
all our operations in South America now
draw their electricity from renewable
sources. With our Australia assets moving
to renewable supply from 2025, we then
expect to draw around 60% of our global
grid supply from renewables. In southern
Africa, where we are developing a regional
renewable energy ecosystem through our
partnership with EDF Renewables, known as
Envusa Energy, we are gathering significant
momentum in the development of a number
of wind and solar projects.
As part of our ambition to reduce our Scope 3
emissions, we are focusing on hard-to-
abate sectors such as steel – from which
most of our value-chain emissions derive.
We have joined forces with steelmakers in
Europe and Asia to research efficient feed
materials. As methane emissions from our
Steelmaking Coal operations represent the
largest component of our Scope 1 emissions,
we are also exploring processes such as
regenerative thermal oxidation to manage
and abate these emissions.
Highly attractive portfolio
Anglo American has a highly attractive,
diversified portfolio, with a number of well-
sequenced growth options, in copper, crop
nutrients and high quality iron ore. We are
custodians of some of the world’s most
valuable, long life mineral deposits – a world
class set of copper assets with considerable
growth potential, coupled with platinum
group metals (PGMs), diamonds and high
quality iron ore – and crop nutrients coming
through later in the decade – that distinguish
us from our diversified peers. The vast
majority of the portfolio is geared to supplying
products that are fundamental to enabling
a low carbon economy and meeting the
expectations of a growing global population,
in terms of living standards and food.
“2023 saw a significant
downturn for both PGMs
and diamonds, leading to
weaker financial outcomes.
Against that background and
with continuing geopolitical
turbulence and a number
of constraints specific to
our business, we have been
taking decisive action to
improve margins and returns
to ensure the sustained
competitiveness of our top
calibre assets.”
Stuart Chambers
Chairman
05
Thanks
I would like to express my appreciation to all
our employees, the senior leadership team
and the Board for their outstanding efforts in
a difficult year.
Our Strategic Report
Our 2023 Strategic Report, from pages
2–138, was reviewed and approved by the
Board on 21 February 2024.
Stuart Chambers
Chairman
Quellaveco’s successful development
has transformed our exposure to copper,
a metal critical to economic development
and implementing the energy transition, and
we will continue to progress further growth
options at Los Bronces, Collahuasi and
Sakatti. In PGMs, our flagship Mogalakwena
open pit mine presents competitive
advantage in terms of cost and grade, while
in north east England, we are developing
the Woodsmith mine, to introduce a highly
effective, comparatively low carbon fertiliser
product called POLY4 to the global industry.
POLY4’s physical characteristics help solve
the three interconnected challenges faced
by the agricultural industry: the increasing
demand for food from less available land; the
need to reduce the environmental impact of
farming; and the deteriorating health of soils.
Operating and financial performance
Buffeted by geopolitical and economic
headwinds, and their effect on PGMs
and diamonds revenues in particular,
Anglo American experienced a much
more difficult year. A number of temporary
operational constraints added to a
considerably weaker financial performance,
resulting in a poor return for shareholders,
with a negative Total Shareholder Return
(TSR) for the year of 36%, compared
with the FTSE 100 Index average of +8%,
predominantly reflecting the down cycles
in the two businesses that differentiate
Anglo American – PGMs and diamonds.
Group underlying EBITDA decreased by
31% to $10.0 billion (2022: $14.5 billion),
reflecting lower prices for certain products
and global cost inflation. In line with our
payout-based dividend policy, the Board has
recommended a final dividend of $0.41 per
share, equal to 40% of underlying earnings,
bringing total dividends for the year to
$0.96 per share or $1.2 billion.
Chairman’s statement
As we look to 2024 and beyond, the
management team has taken decisive
action to improve cost performance and
cash generation by reconfiguring certain
production and wider operational plans to
ensure they are realistic.
Governance
Free-market systems need a robust
governance framework if they are to retain
the trust of investors and society. I believe
that the full breadth of sustainability
considerations should always underpin
this framework and be at the heart of how
responsible companies do business. Boards
must take care not to be blown off course
by short term trends and instead ensure
that decisions are reached through holistic
debate and with the company’s values and
purpose in sharp focus.
In recent years, our own Board has stepped-
up its engagement level with the company’s
employees, to further widen its field of view.
Leading this initiative is the Global Workforce
Advisory Panel, which currently includes 12
colleagues drawn from across the Group
and is chaired by non-executive director
Marcelo Bastos. In 2023, the panel met on
three occasions, one of which was in person
in South Africa. Other Board members and
myself were also able to engage directly
with panel members during our Board and
director site visits.
Our Board
On 1 April 2023, Magali Anderson joined
the Board as a non-executive director, and
as a member of the Board’s Sustainability
Committee. As things stand, four of the 10
directors on the Board are female and two
are minority ethnic. Stephen Pearce stepped
down as finance director after serving on
the Board for almost seven years and was
succeeded by John Heasley on 1 December.
I am always keen that our non-executive
directors experience our operations at
first hand and engage face to face with
colleagues. So, it was pleasing to have
our Board visit the Woodsmith project in
September 2023, with the Sustainability
Committee also spending time at Venetia in
South Africa, the Audit Committee meeting
with Marketing leaders at our corporate
office in Singapore, and three non-executive
directors visiting Steelmaking Coal operations
in Australia.
Outlook
There is widespread consensus that 2024
may be another low growth year for the
global economy; there is the possibility of
a mild recession in the US, coupled with a
torpid Eurozone, albeit with China’s economic
output forecast to increase by around
4–5% – which may offer some relief given
the absolute size of that economy and the
potential for further stimulus. We also expect
India’s demographics and growth trajectory
to play an increasing role in raw materials
demand over the coming decades. We
must also overlay the potential for more
geopolitical dislocations affecting global
trade given current conflicts and the effects of
elections across many of the world’s largest
democracies in 2024.
But looking through these challenging macro
factors, many mined products continue to
have strong fundamentals, with supply likely
struggling to meet demand over the long
term. With Anglo American set up to be more
agile and resilient, with an exceptional metals
and minerals portfolio, and considerable
growth optionality, we are well positioned to
capitalise on the irrefutable demand trends
that will characterise the next several decades.
Strategic Report Integrated Annual Report 2023Anglo American plc “We have a world class suite
of assets and a number of
leading market positions,
coupled with technical and
socio-political capabilities, all
underpinned by disciplined
capital allocation and organic
growth options in the right
products.”
Duncan Wanblad
Chief Executive
06
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Chief Executive’s statement
A safer, smarter future for mining
We are focused on delivering
sustainable value through
operational excellence, our
differentiated capabilities and
proactive portfolio choices.
Safety – our first priority
We are unconditional about safety and strive
continuously to create a workplace where
every colleague returns home safe and well
at the end of their working day. ‘Always safe’
is our safety vision, and safety is our number
one value and priority. While our emphasis
on leadership time in the field helped us
achieve our best ever total recordable
injury frequency rate in 2023, it was deeply
saddening that three colleagues died in the
year following two accidents at our managed
operations: at our Kumba Iron Ore business
and at our Los Bronces copper operation in
Chile. We extend our deepest condolences to
their families, friends and colleagues.
In addition to rigorously investigating each
of these tragic incidents, we are committed
to sharing the learnings both internally and
across the industry so that action can be
taken to help prevent repeats. We are also
continuing to implement our targeted safety
strategy, investing in systems and technology,
standards, and training our people, with a
particular focus on leaders spending time in
the field with their teams.
2023 – a volatile backdrop
Over the past 12 months the macro picture
across geopolitics and the global economy
has certainly been volatile, with prolonged
inflationary pressure that has continued to
impact costs across our industry. Coupled
with cyclical lows for our PGMs and diamonds
businesses and temporary operational
challenges at Kumba, due to third-party rail
constraints, and at Los Bronces, we have
reoriented our production profile due to
lower grades to focus on safe, profitable
and repeatable volumes. We are ensuring
that Anglo American is set up to be resilient
over the longer term to seize the tremendous
growth opportunities presented by the quality
of our resource endowments and the major
demand trends.
We are implementing the right set of actions
to enhance value both now and longer
term. By doing so, we are positioned to
capitalise on our attractive suite of products
that play such a critical role in enabling:
decarbonisation; improving global living
standards; and food security. From the
foundations of renewed stability and value-
led discipline, the long term outlook has rarely
looked better.
Focus on value to enhance returns
Operational stability and cost control
represent our biggest margin levers,
supported by sustainable production plans
that prioritise value over volume and thereby
enhance margins and returns. Our focus
has been on achieving safe, repeatable and
consistent operational performance and
working towards positioning the majority
of our assets squarely in the first half of
their respective cost curves. Against that
backdrop, we expect to reduce annual run
rate costs by c.$1 billion and capital spend
by $1.6 billion over the next three years, while
also cutting out unprofitable volumes.
We have streamlined our global business
support activities, removing duplication and
layers, enabling more effective decision
making and more efficient service delivery.
By resetting organisational design, we
have moved decision making closer to
the operations to improve both agility and
accountability and reduce duplication,
resulting in a 25% reduction in the cost of
senior head office roles. As part of these
streamlining initiatives, we have significantly
concentrated our focus onto those
technologies and other capabilities that
bring most benefit to our operations, thereby
optimising the benefits from our investment in
FutureSmart Mining™ of recent years.
Operationally, in Chile, for example, we
are working through a more constrained
phase of the mine plan and are aiming to
improve cash flow by reducing production
and moving to use only the larger and more
efficient of the two copper concentrators at
Los Bronces. This is expected to reduce both
operating and capital costs for the asset
while preserving optionality for when we are
through this constrained phase of the mine
plan. In PGMs, we are focusing on higher
margin own production through our world
class processing assets. While in Australia,
our focus for Steelmaking Coal is on safe and
stable operations in line with new operating
protocols and ongoing challenging ground
conditions at Moranbah.
For 2023 as a whole, we were delighted to
see our new Quellaveco copper operation
in Peru ramp up to full capacity in the fourth
quarter, while ore grades at our copper
assets in Chile and in nickel were lower,
as expected. Operationally, both PGMs
and De Beers performed solidly, albeit
with downstream prices at cyclical lows.
Minas-Rio set a number of performance
records, while Kumba also performed well
operationally – though limited by third-party
rail availability.
Group underlying EBITDA decreased by
31% to $10.0 billion (2022: $14.5 billion),
reflecting a 13% lower basket price for our
products and a 4% unit cost increase – a
strong cost performance that beat inflation.
Against this backdrop, we delivered a
return on capital employed of 16% and a
mining EBITDA margin of 39%. Net debt
increasing to $10.6 billion, 1.1 x underlying
EBITDA, reflects the portfolio investments
we are making in line with our belief in the
strong long term fundamentals, and a build
in working capital of $1.2 billion at the year
end. Reflecting our latest market view of
global GDP growth and consumer demand,
we have written down the book value of
De Beers by $1.6 billion, principally relating to
goodwill, while also impairing the value of our
nickel asset in Brazil, Barro Alto, by $0.8 billion.
Our $1.2 billion total dividend of $0.96 per
share is in line with our 40% payout policy.
World class portfolio offering growth in the
right products
We actively manage the portfolio – always
led by value – to continuously improve
its overall quality, reduce complexities,
and ensure that capital is allocated to the
most value-accretive assets and growth
opportunities, including those with industry
partners in respect of adjacent assets where
there is significant value to be unlocked.
Each of our assets must pull its weight
in playing a dynamic role to support the
portfolio as a whole.
While most industry voice is generally given
to the metals needed for the increasingly
urgent transition to cleaner energy, we
should not forget that uplifting global living
standards for a still fast growing global
population requires an unprecedented level
of economic development. This underlying
driver will continue to represent the baseload
of demand growth – with copper and the
high quality steelmaking ingredients of iron
ore, steelmaking coal and manganese front
and centre.
Chief Executive’s statement
Similarly, to feed and provide improved
nutrition to the world’s population will require
unparalleled volumes of more effective and
environmentally sustainable fertiliser – a
need that we will be well placed to fill as we
develop a crop nutrients business around a
truly differentiated product from Woodsmith.
As we progress Woodsmith’s development
towards Board approval and continue to firm
up our views on the enormous potential of our
product in the market, so we are taking steps
to identify potential syndication partners
with a focus on keeping our investment in
Woodsmith proportionate. This is consistent
with our approach in relation to multi-billion
dollar greenfield projects, being to develop
one at a time and to syndicate for value at
the right time, as we did with Quellaveco.
Sustainability key to unlocking
opportunities
One of our greatest challenges as an
industry is to bridge the clear gap between
increasing recognition of the need for ever
greater volumes of mined materials and
society’s acceptance of the activity required
to produce them. Our experience in delivering
improved sustainability outcomes from
successful projects such as Quellaveco is
part of the solution and is integral to how we
make our strategic and investment choices –
across our current operations and projects in
design and development – and to unlocking
enduring value for all our stakeholders.
Building on our FutureSmart MiningTM
blueprint we established at Quellaveco,
we are deploying the next generation of
technology and sustainability innovation at
Woodsmith, setting a new benchmark for
modern mining – out of sight, safe, reliable,
and catering to our customers’ and society’s
needs. Likewise, we then expect to take these
learnings to our polymetallic project – Sakatti,
in Finland, for which we received the all-
important environmental impact assessment
approval in August 2023. Sakatti is set to be a
remotely operated, low carbon underground
mine, thereby contributing to a sustainable
supply of critical minerals to support the
energy transition in Finland and the EU. We
see such capabilities as essential to our and
the mining industry’s ability to successfully
develop new supply, particularly as orebodies
dictate that we operate in more complex
socio-economic and environmentally
sensitive areas.
In parallel, we are also moving towards our
goal of carbon neutral operations by 2040,
evolving our pathways as we progress, learn,
and as technologies develop. We have
transitioned to 100% renewable electricity
supply across our South America operations,
with Australia to follow in 2025. In southern
Africa, where renewable alternatives are not
yet available at any scale, we are making
good progress in partnership with EDF
Renewables to build a 3–5 GW renewable
energy ecosystem of wind and solar
generation capacity, designed to tackle
our largest remaining source of Scope 2
emissions and support energy reliability and
grid resilience.
An inclusive and rewarding workplace for
our people
Our people are critical to all that we do, and
always front of mind are their safety and
health, employees and contractors alike.
We believe, too, in creating an inclusive
workplace where every colleague can
bring their whole self to work and fulfil
their potential. We have a robust strategic
approach in place which focuses on valuing
and respecting our diverse colleagues,
inclusive leadership, providing an involving,
fair and supportive workplace and having
a safe, effective and enabling work
environment.
This year we were awarded a Living Wage
accreditation that formally recognises
Anglo American’s status as a committed
07
global Living Wage employer. We are
the first mining company to reach this
milestone. Similarly, I was also pleased that
Anglo American was recognised in the
Inclusive Top 50 UK Employers in 2023 for the
fifth year in a row.
Outlook
We have fundamentally reorganised and
reoriented the business during 2023,
including to shift our production mindset
to one that is driven by value rather than
volume and with plans that are both safety-
led and deliverable repeatedly. We have
been systematically reviewing our assets
and organisation over the last 18 months to
drive greater effectiveness and sustainable
performance in the face of the uncertain
macro picture that has been emerging –
and which has had a particularly significant
impact on PGMs and diamonds.
The actions we have taken combine specific
asset performance plans and Group-
wide initiatives that we believe will offer
an evergreen investment proposition that
generates attractive returns through the
cycle. Together with our technical capabilities
and our approach to sustainability, we are
setting ourselves up to deliver significant
value upside from our current assets and
our considerable growth options that are
concentrated in copper, crop nutrients and
high quality iron ore, given the structurally
attractive fundamentals presented by the
major demand trends.
I’d like to thank the Board for its unwavering
support and all our workforce for their hard
work and resilience over the past year.
Duncan Wanblad
Chief Executive
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Our business model
Anglo American draws upon a number of key inputs that, through targeted
allocation, development, extraction and marketing, create sustainable value
for our shareholders and our diverse range of stakeholders.
Our inputs
Our value chain
Outputs
Ore Reserves and Mineral Resources
Our high quality, long life mineral assets provide a
range of organic options for long term value delivery.
Discover
Other natural resources
We aim to effectively manage the water and energy
requirements of our mining and processing activities.
End of life
plan
Plan and
build
Know-how
We use our industry-leading technical, sustainability
and market knowledge to realise optimal value from
our assets.
Plant and equipment
We form strong relationships with suppliers, many of
whom are located in the countries where we operate,
to deliver tailored equipment and operating solutions.
Financial
A strong focus on productivity, cost discipline
and working capital management helps deliver
sustainable positive cash flows, with balanced capital
allocation to optimise returns.
We invest in those parts of the value
chain that provide us with the best return
on our investment, holding ourselves to
the highest standards through our holistic
and integrated approach to sustainable
business practices.
Move and
market
Mine
We deliver many of the metals and minerals that
enable a cleaner, greener, more sustainable world
and that meet the fast growing consumer demands
of developed and maturing economies. We strive to
minimise our environmental footprint through our use
of technologies and bring enduring social benefits
through our approach, encompassed in our ambitious
Sustainable Mining Plan.
Attributable free cash flow
$(1.4) bn
CO2 equivalent emissions
(Scope 1 and 2)
12.5 Mt
Production in 2023
– Copper: 826 kt
– Nickel (from Nickel and
PGMs): 61.8 kt
– Platinum: 1,749 koz refined
– Palladium: 1,269 koz refined
Group attributable ROCE
16%
Mined product shipped
by our fleet
>75 Mt
– Rhodium: 226 koz refined
– Diamonds: 31.9 Mct
– Iron ore: 59.9 Mt
– Steelmaking coal: 16.0 Mt
– Manganese ore: 3.7Mt
Process
▶ For more on the value we create for stakeholders
See pages 11–13
Governance
Our governance controls ensure we respond effectively to those
matters that have the potential to cause financial, operational or
reputational harm, while acting ethically and with integrity.
▶ For more information See pages 139–177
Materiality and risk
Identifying and understanding our material matters and risks is
critical in the development and delivery of our strategy.
▶ For more information See pages 20–23
How we measure the value we create
Safety
and health
Socio-political
Environment
People
Stakeholder engagement
Open and honest engagement with our stakeholders is critical
in gaining and maintaining our social and regulatory licences to
operate. Working within our social performance framework, it is
our goal to build and sustain constructive relationships with host
communities and countries that are based on mutual respect,
transparency and trust.
▶ For more information See pages 16–19
Production
Cost
Financial
▶ For our pillars of value See pages 86–89
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Our value chain
Across every aspect of our value chain, we are thinking innovatively about
how we work to ensure the safety of our people, enhance our sustainability
performance, and deliver industry-leading margins and returns.
09
Discover
Our geologists search for and discover new sources of
the minerals that make our modern lives possible. We
benefit from developing and using world class expertise
and leading technologies, often that we have developed
ourselves, to find deposits we can develop and mine in a
safe and sustainable way.
Plan and build
Before we put a spade in the ground, our geologists
and engineers work together using virtual mine
planning systems to design the most effective, cost-
efficient and environmentally sound construction and
operational mine plan.
Process
By processing, converting and refining our raw materials,
we produce what our customers need and value. Our
processing technologies also enable us to reduce energy
and waste, recycle more water, increase efficiency, drive
innovation and, by adding value to our products, further
support economic activity in the areas we mine.
Mine
In extracting the products that we all need in our daily
lives, we draw on over 100 years of mining experience.
Safety comes first: our whole way of working is focused
on keeping our people safe. We plan for the lifecycle of
the mine and beyond and use our own technologies for
reducing waste and protecting environments.
Move and market
After processing, we then transport our metals and minerals to where
they are needed, to our customers. We use the latest technologies
to co-ordinate and optimise our global shipping needs. And we use
our scale and detailed knowledge of the demand and uses for our
products to offer our customers a reliable supply, tailored to their
requirements and expectations – adding value for them every step
of the way and, ultimately, for billions of consumers who rely on our
products every day.
End of life plan
We don’t only plan for the lifecycle of the mine – we
also take great care to look beyond and determine the
rehabilitation of the site and the real benefits that will help
sustain local communities, long after the site is closed.
10
Anglo American plc
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Purpose to value
We are guided by our Purpose – re-imagining mining to improve people’s
lives – to deliver sustainable value for all our stakeholders.
Our Purpose
Our Strategy
Value
Re-imagining
mining to improve
people’s lives
Transforming the very nature of
mining for a safer, smarter, more
sustainable future.
Our Values
Anglo American’s Values and behaviours
are at the heart of everything we do. Guided
by our Purpose and our Values, we enable
high performance and purposeful action.
Our Values and the way in which we, as
individuals, are expected to behave are the
foundation of our Code of Conduct.
Portfolio
Re-imagining
mining to improve
people’s lives
Innovation
People
Guided by our Purpose, our strategy is to
secure, develop and operate a portfolio
of high quality and long life mineral
assets, from which we aim to deliver
sustainable shareholder returns. We
achieve this through innovative practices
and technologies built upon the
foundations of operational excellence –
in the hands of our world class people.
Capital allocation
Underpinning our strategy, we have a value-
focused approach to capital allocation, with
clear prioritisation. Our Sustainable Mining
Plan outlines ambitious targets that our
projects must support to ensure a Healthy
Environment, Thriving Communities and our
position as a Trusted Corporate Leader.
▶ For more on capital allocation
See pages 76–78
Measuring delivery of our strategy
We track our strategic progress holistically – spanning
non-financial and financial performance using KPIs
that are based on our seven pillars of value:
People
To create a sustainable competitive advantage
through capable people and an effective,
purpose-led, high performance culture
Safety and Health
To ensure our workforce is safe and healthier for
working with us
Production
To supply and increase volumes of
profitable products for our customers
Delivering sustainable value
for all our stakeholders
We are working together to generate
sustainable and competitive
shareholder returns by developing
better jobs, better businesses and
better education, building brighter and
healthier futures around our operations
in host countries and ultimately for
billions of people who depend on our
products every day.
– Investors
– Workforce
– Suppliers
– Customers
– Communities
– Host countries
– Natural environment
Balanced reward
Anglo American’s directors’
remuneration policy is designed to
encourage delivery of the Group’s
strategy and creation of stakeholder
value in a responsible and sustainable
manner, aligned to our Purpose.
The main elements of the remuneration
package are basic salary, annual bonus
and Long Term Incentive Plan (LTIP).
Environment
To have a net positive and sustainable impact on
climate change, water and the natural environment
Cost
To continuously improve our margins and
competitive position through operational excellence
▶ For more on remuneration
See pages 178–211
Socio-political
To build thriving communities and develop trust as a
corporate leader
Financial
To deliver industry-leading sustainable returns to
our shareholders
Creating value for
our stakeholders
Anglo American is re-imagining mining to
improve people’s lives.
Mining has a safer, smarter, more sustainable future.
Using more precise technologies, less energy and
less water, we aim to reduce our environmental
footprint for every ounce, carat and kilogram of
precious metal or mineral.
We are combining smart innovation with operational
excellence and the utmost consideration for our
people, their families, local communities, our
customers and the world at large – to better connect
precious resources in the ground to all of us who
need and value them.
And we are working together to develop better jobs,
better education and better businesses, building
brighter and healthier futures around our operations
in host countries and ultimately for billions of people
around the world who depend on our products
every day.
Our metals and minerals help unlock a cleaner
future for our planet and help meet the needs of a
growing population, from homes and electronics,
to food and luxuries – these are future-enabling
products.
11
Investors
Workforce
Delivering sustainable financial returns
Underpinning our strategy, we have a value-focused
approach to capital allocation, with clear prioritisation:
sustaining capital to maintain asset integrity;
payment of base dividends; and then the allocation
of discretionary capital to either growth investments,
upgrades to our portfolio, or additional returns to
shareholders.
▶ For more information
Visit angloamerican.com/investors
People are at the heart of our business, and that
means our first priority is always workforce safety
Our people are critical to all that we do. And always
front of mind is the safety and health of our employees
and contractors; we train, equip and empower our
people to work safely every day. We believe, too, that
creating an inclusive and diverse working environment
and culture that encourages and supports high
performance and innovative thinking gives our
business a competitive advantage.
▶ For more information
Visit angloamerican.com/employees
$1.2 bn
$4.1 bn
Total returns to shareholders
Total wages and benefits paid
* Calculated using average share price of
$30.69 for the year ended 31 December 2023.
4.2%*
Dividend yield
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Anglo American plc
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Creating value for our stakeholders
Communities
Natural environment
Suppliers
Helping to create thriving communities
Protecting our natural environment
Responsible sourcing aligned to our Purpose
We are committed to delivering a lasting, positive
contribution to host communities, beyond the life
of our mines. This starts with understanding and
responding to their needs and priorities. We manage
the relationship with host communities through our
social performance system, the Social Way, and aim
to drive shared value through our Sustainable Mining
Plan commitments.
We apply holistic thinking to address the
interconnectivity of nature, the environment and
the ecosystems in which we operate as we work
towards delivering positive biodiversity outcomes
and addressing global challenges such as
climate change.
Some of the targets we have set include:
Our approach to responsible sourcing defines the
minimum sustainability requirements and decent
work principles required by our 13,000+ suppliers.
Our vision is to create a more inclusive supply chain
as we seek to generate more equitably shared and
sustainable prosperity in host countries, where over
70,000 jobs are supported by our procurement
worldwide.
▶ For more information
Go to pages 60–65
– To be carbon neutral across our operations
(Scope 1 and 2 GHG emissions) by 2040
▶ For more information
Go to pages 64–65
$148 m
Total Community Social Investment (CSI)
139,308
Total number of jobs supported off site
– Net-positive biodiversity outcomes across our
managed operations
– Reducing absolute fresh water withdrawals by
50% in water scarce areas by 2030, relative to
the 2015 baseline.
$13.0 bn
spent with local suppliers in 2023
91%
of total supplier spend of $14.4 bn
Creating value for our stakeholders
13
Stay up to date
For more on our performance in the year, see the video link.
Visit youtube.com/watch?v=XFbvv9KvAbs
Customers
Host countries
Understanding our customers’ needs
Playing our role in society
We work closely with our customers, who are
increasingly interested in sourcing responsibly
mined materials. In 2022, we met our Sustainable
Mining Plan target of 50% of our mining
operations to be audited against recognised
responsible mining certification systems and
are on course to have all our operations audited
by 2025. In 2023, our Minas-RIo iron ore and
Barro Alto nickel mines in Brazil were assessed
against the Initiative for Responsible Mining
Assurance’s (IRMA) mining standard, achieving
the IRMA 75 level of performance. In South
Africa, our Amandelbult and Mototolo PGMs
mines scored IRMA 50 and 75, respectively. In
addition, two operations have undergone the
Responsible Jewellery Council certification and
we have adopted the Copper Mark certification
at Los Bronces and El Soldado.
▶ For more information
Visit angloamerican.com/about-us
Anglo American contributes to economies and
society both directly and indirectly, through the taxes
and royalties we pay, the jobs we create, the local
workforces we upskill, the local business opportunities
we generate, and the education and community
health initiatives we support.
▶ For more information
See our Sustainability Report 2023
$5.1 bn
Total taxes and royalties borne and taxes collected
▶ For more information
See our Tax and Economic Contribution Report 2023
Strategic Report Integrated Annual Report 2023Anglo American plc 14
Anglo American plc
Integrated Annual Report 2023
Strategic Report
How we
make
decisions
In line with best-practice
corporate reporting,
Anglo American’s Integrated
Annual Report includes a
comprehensive assessment of
the principal risks we face, as
well as those matters that we and
our stakeholders believe have a
material bearing on the success
of the business in the near and
long term – beginning with safety
and environmental sustainability.
By engaging with our stakeholders and
being aware of their perspectives, and
by understanding the risks we know
we face, we are better placed to make
informed decisions that help support
the delivery of our strategy.
Insightful and considered strategic
decision making
Insights
Strategy
Board review
Capital allocation
Stakeholder
engagement and
topics raised
▶ See pages 16–19
Material matters
▶ See pages 20–23
Global trends
▶ See pages 24–28
Principal risks
▶ See pages 79–85
To secure, develop and
operate a portfolio of high
quality and long life mineral
assets, from which we will
deliver leading shareholder
returns. We achieve
this through innovative
practices and technologies
built upon the foundations
of operational excellence
– in the hands of our world
class people – towards our
common Purpose.
▶ For more on our Strategy
See page 10
Underpinning our strategy,
we have a value-focused
approach to capital allocation,
with clear prioritisation:
sustaining capital to maintain
asset integrity; payment of
base dividends; and then the
allocation of discretionary
capital to either growth
investments, upgrades to our
portfolio, or additional returns
to shareholders. All of our
capital allocation decisions
consider sustainability issues
and impacts.
▶ For more information on our capital
allocation approach
See pages 76–78
– Chief executive and the
Executive Leadership Team
formulate the Group’s long
term strategy.
– In addition to regular
discussion on strategic topics,
the Board dedicates a full
meeting to a discussion of the
Group’s strategy, addressing
critical short, medium and
long term issues.
– Board approves critical
strategic decisions and
endorses the Group’s
strategy.
– Board reviews progress
of delivery of the Group’s
strategic goals, as well as
periodic business strategic
reviews.
▶ For more on Board activity
See pages 153–155
How we make decisions
15
The duties of directors with regard to
ensuring there is effective dialogue between
the Group and its shareholders and
stakeholders are broadening in scope, while
society’s expectations of company boards
also continue to grow. At Anglo American,
those matters considered by the Board
and our stakeholders to be of material
importance, and the views of our
stakeholders in relation to those matters,
are integral to the Board’s discussions and
decision making, including in relation to the
Group’s strategy and its evolution.
Determining what is important
Identifying and evaluating matters that are of
common material interest to our stakeholders
and to our business, and understanding
how they may affect our ability to create
value over time, are integral to our planning
processes and help support the delivery of
Anglo American’s strategy.
At the heart of decision making
Consideration of the wide spectrum of
stakeholder and environmental interests
is firmly embedded into Anglo American’s
culture, governance structures and
management systems and is guided by
our Purpose. Stakeholder concerns and
considerations therefore feature prominently
in the discussions of our Board meetings and
those of its committees.
The Board, through its role in setting the
tone from the top, provides leadership to
the Group and is responsible for promoting
and safeguarding the long term success
of the business, supporting the Executive
Leadership Team in its formulation and
implementation of the Group’s strategy.
Chairman Stuart Chambers (left) in conversation with Crop Nutrients CEO Tom McCulley during
the Board’s visit to the Woodsmith site in north east England in September 2023.
Strategic Report Integrated Annual Report 2023Anglo American plc 16
Anglo American plc
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Strategic Report
Understanding our
stakeholders
Healthy stakeholder relationships help us to better engage about how our
business decisions, activities and performance are likely to affect or be
of significant interest to our stakeholders, and provide the opportunity to
co-create effective and lasting solutions to business and other challenges.
Investors
Our shareholders own the business, and
their continued support is key to its long
term sustainability. Regular meetings and
occasional site visits with the investor and
financial analyst community inform and help
to shape our strategy, including our value-
based approach to capital allocation.
Employees
Our people are critical to all that we do and
are essential to our commercial success.
We have more than 90,000 employees and
contractors working for us around the world.
We support labour rights, including the right
to freedom of association and collective
bargaining.
Communities
Building mutually respectful relations with
the communities around our operations is
essential to gaining and maintaining our
licence to operate. We strive to deliver long
term and sustainable economic growth
and social progress to host communities,
including beyond the life of our mine.
Suppliers and contractors
We work with suppliers to deliver tailored
equipment, services and other solutions to
enable best-in-class operating performance
while remaining cost competitive. Our
responsible sourcing programme defines the
sustainability requirements expected of our
13,000+ suppliers.
Customers
We work closely with our customers to
address their raw material needs in a way
that is tailored to their requirements and
expectations. With presence across key
commercial hubs and close market contact,
we have the industry understanding to
provide the solutions customers want.
Civil society (NGOs, faith groups
and academia)
Engagement with the elements that make
up civil society brings a unique ethical and
sustainability lens to our business. The cross-
sector relationships we forge with NGOs
and other groups enable us to be a more
responsive and effective development player.
Governments and multilateral institutions
Our proactive relationships at local, national
and international levels help us to be more
effective in understanding areas of mutual
interest and priority, including in relation to
the evolution of regulation and permitting,
infrastructure financing and debottlenecking,
and maintaining our licence to operate.
Industry associations
Our advocacy role on the international stage,
including our work with industry related
organisations ranging from IRMA and the
TNFD, to the Minerals Councils of South Africa
and Australia, is helping to make mining safer,
cleaner, more sustainable and more attuned
to the modern world’s expectations of the
mining industry of the future.
Understanding our stakeholders
17
Investors
How we engage
Employees
How we engage
Communities
How we engage
The Group, through its investor relations team, has an
active engagement programme with its key financial
audiences, including institutional shareholders. In
October 2023, the investor relations team also hosted a
site visit to our Woodsmith polyhalite fertiliser project for
sell-side analysts and our largest shareholders.
Significant concerns raised by a shareholder are
communicated to the Board. The Board receives a
briefing at each meeting from the investor relations
team. The chairman also hosts meetings with some of
the Company’s largest institutional investors through
the year.
What was important to our stakeholders in the year
– Operational performance (including safety)
– Near-term outlook for our products
The Group undertakes global employee engagement
surveys, the results of which are communicated to the
Executive Leadership Team and the Board. The Group’s
Global Workforce Advisory Panel meets during the
year to discuss a range of topics. Feedback from the
meetings is shared with the Board and the Executive
Leadership Team.
Every business has formal points of contact for union
engagement, and material matters are routinely
reported to various boards. In 2023, we had one
dialogue session with IndustriALL Global Union. In South
Africa, our Tripartite structure (comprising South African
businesses, recognised trade unions, the Department
of Mineral and Energy Resources and industry councils)
met to continue its focus on topics primarily related to
health and safety. A similar structure has been formed at
our Steelmaking Coal business in Australia.
– Sustainability, including climate change (strategy,
targets and progress), water, nature and biodiversity,
and safety
What was important to our stakeholders in the year
– Physical and psychological safety and health
– Progress of major projects, including Woodsmith
– Job security
– Executive management transition
– Organisation and workforce restructuring
– The future of work
Our Social Way engagement requirements and
commitment to local accountability that forms part of
our Sustainable Mining Plan are at the heart of how
we engage with local communities. We aim to always
engage proactively, meaningfully and respectfully
with all of our stakeholders in relation to impacts and
risk and to maximise socio-economic development
opportunities. The principles of informed consultation
and participation are at the heart of our stakeholder
engagement activities, focusing on an in-depth
exchange of views and information in an organised and
iterative process that is tailored to different stakeholders,
including vulnerable groups.
The Sustainability Committee receives a report on
social performance and community issues at each
meeting. The Board is also updated via presentations
from business leaders and visits operations, which
usually include engagement with local community
representatives.
The Social Way Policy sets out requirements for the
management of grievances and incidents with social
consequences. All incidents with Level 4–5 social
consequences are reported to, and discussed by,
the Board.
What was important to our stakeholders in the year
– Community health and safety
– Livelihoods and job creation
– Land access, displacement and resettlement
– Local accountability forums
– Grievances and incidents with social consequences
– Cultural heritage
– Collaboration in emergency preparedness planning
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Strategic Report
Understanding our stakeholders
Suppliers and contractors
Civil society (NGOs, faith groups and
academia)
How we engage
How we engage
Customers
How we engage
The Group engages with suppliers through several
channels, including: supplier events; host community
procurement forums; supplier capability development
initiatives; various digital platforms; and our responsible
sourcing programme.
Material matters are reported to the Board through
the chief executive’s reports. Material supply contracts
are approved by the Board. Reports to the Board
from business leaders contain updates on contractor
management.
What was important to our stakeholders in the year
– How to mitigate the risk of modern slavery and labour
rights abuses within the supplier network
– Stimulating local manufacture of mining goods
and increasing procurement opportunities for host
community suppliers
The Group’s engagement includes one-on-one
interactions (including with Executive Leadership Team
members); various multi-stakeholder initiatives and
partnerships; addresses at civil society gatherings;
and open and ongoing dialogue on tax transparency,
the future of resource taxation and responsible mining
practices. The Group hosts accountability dialogues on
the UN’s Sustainable Development Goals (SDGs), which
bring together a cross-section of stakeholders around
our performance related to SDGs. Any key concerns or
trends from these engagements are reported to relevant
executive and/or Board structures.
Anglo American participates in the global Mining and
Faith Reflections Initiative and the South African multi-
faith ‘courageous conversations’ initiative, and also
has longstanding partnerships with NGOs such as
TechnoServe, Fauna & Flora International, Right to Care,
HBGI and The Global Fund.
– Promoting transparency and access to information
What was important to our stakeholders in the year
– Protecting the safety, health, well-being, human rights
– Climate change and Just Transition
and dignity of workers employed by contracting
companies and suppliers
– Understanding how suppliers can help us meet our
Sustainable Mining Plan goals including commitments
to decarbonisation to meet our Scope 3 ambitions
– Respect for human rights
– The future of resource taxation
– Our impact on water and biodiversity
– Avoiding/mitigating environmental harm
– Investing in social and community development
– Industry transparency and reporting initiatives
– Critical raw materials supply chains
– Ethical value chains/product provenance
– Free, prior and informed consent
Our Marketing business engages with customers
through direct personal engagements and via business
and industry forums.
The CEO of Marketing provides an annual update to the
Board on the Group’s marketing strategy and activities,
including customer engagement. The Board also
receives a regular update on commodity markets from
the Marketing team.
What was important to our stakeholders in the year
– Delivery of product on agreed timing and terms
– Decarbonisation roadmap and carbon management
solutions
– Assurance that products have been responsibly mined
or sourced
– Collaboration opportunities
– Participation in responsible mining certification
systems
– Price risk management in an inflationary environment
– Continued engagement around key industry shifts
Understanding our stakeholders
19
Governments and multilateral
institutions
Industry associations
How we engage
How we engage
The Group participates in more than 130 industry
associations worldwide. An audit of our memberships
is undertaken and published biennially. The Group’s
participation is directed by our Government and
International Relations Policy. The chief executive reports
any matters of significance to the Board.
What was important to our stakeholders in the year
– Contributing constructively in business initiatives, with
the aim of enhancing the collective business interest
– Contributing to shared responses to challenges faced
by governments and societies in host jurisdictions and
markets
– General knowledge sharing on our approach to
managing material issues
The Group engages proactively with host governments
at both local and national levels, as well as with
other governments in countries of strategic interest
– both directly and through industry bodies, and via
participation in inter-governmental and multilateral
processes.
The Board receives regular updates on key geopolitical
factors relevant to the Group’s operating and broader
strategic interests, as well as updates on government
engagements.
What was important to our stakeholders in the year
– Stable, secure supply of responsibly sourced
critical raw materials for the energy transition in an
increasingly challenging geopolitical context
– Wider sustainability and development agenda,
including climate change
– Contribution to national and international
developmental priorities
– Taxation policy, including national and international tax
reforms related to digitalisation, globalisation and the
environment against a backdrop of challenging fiscal
scenarios for many governments
– Permitting of new technology for transformational
change
– Compliance with mining licence and related
requirements
Supervisors Jimmy Ip Lam (left) and Cristobal Ortiz at our
Integrated Remote Operation Centre (IROC) in Santiago, Chile,
which enables operation at Los Bronces copper mine, 67 km away,
to be controlled in an integrated way, and in real time.
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Anglo American plc
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Strategic Report
Our material matters
Determining what is important
Identifying and evaluating matters that are of common material interest to our
stakeholders and to our business, and understanding how they may affect our
ability to create value over time, are integral to our planning processes and help
support the delivery of Anglo American’s strategy.
We identify our material matters through an
externally facilitated materiality assessment,
which we expect to carry out every two to
three years.
In previous years, we have sought to identify
economic, social and environmental factors
that were important to both Anglo American
and our stakeholders. This year, however,
we conducted a robust, stakeholder-driven
double materiality assessment that seeks to
capture the key material issues that impact
society and the environment (external) and
impact Anglo American (internal).
In 2023, our materiality assessment
incorporated externally facilitated in-depth
interviews with a range of internal and
external stakeholders, supplemented by
an internal survey sent to managers across
the Group, and extensive desktop research.
A third-party-led validation workshop then
took place where subject matter experts were
asked to validate the matters identified as
most impactful on both Anglo American and
wider society. The final materiality matrix was
then approved by the Group‘s leadership and
the Board.
Understanding our stakeholders
Healthy stakeholder relationships help us
to better communicate how our business
decisions, activities and performance are
likely to affect or be of significant interest to
our stakeholders, and provide the opportunity
to co-create effective and lasting solutions to
business and other challenges.
Anglo American’s stakeholders include host
communities, governments, our workforce,
customers, business partners, multinational
organisations, industry peers, broader civil
society, trade unions, trade associations and
suppliers, in addition to our shareholders who
own the business. In some instances, we work
with representatives from multi-stakeholder
initiatives to provide a more collaborative and
holistic view on the issues facing our industry.
Beyond the materiality process, we
continually engage with our stakeholders at
global, national and local levels to develop
long term mutually beneficial relationships
and respond to society’s most pressing
challenges.
▶ For more information on how we engage with our
stakeholders
See pages 16–19
Our material matters
21
H
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Material matters in 2023
The matters identified through our materiality
process are naturally numerous and wide-
ranging and can cover a number of topics
and issues. Some also intersect with specific
principal risks facing the Group, as identified
in the Group Risk Register. Principal risks
are those risks, or combination of risks,
that would threaten the business model,
future performance, solvency or liquidity of
Anglo American and are shown with the
following symbol (‡).
▶ For more information on our principal risks
See pages 81–85
The material matters shown in the matrix
are those that relate to sustainability
outcomes, including across the three pillars of
environment, social and governance (ESG).
We are aware that there are numerous
macro-economic and operational factors
that can also impact both our stakeholders
and Anglo American and these are
discussed fully in the following pages of the
Strategic Report:
▶ Looking at global trends see pages 24–28
▶ Group financial review see pages 90–93
▶ Business performance reviews see pages 94–129
Economic impact on
producer countries
Proactive policy
advocacy approach
Diversity, equity and inclusion
Mineral residue
management
Economic development
of communities
Climate resilience/
adaptation‡
Attraction, retention
and engagement
of workforce
Community and
indigenous rights
Human and
labour rights
Community health
and education
development
Resource
re-use/recycling
Biodiversity
and land
management
Community consultation
and engagement‡
Greenhouse gas
emissions and
renewable energy‡
Water use, quality
and availability‡
Safety, health and
well-being of the
workforce
Responsible mine closure
and regeneration
Training and upskilling
opportunities
W
O
L
LOW
Responsible
product offering
Responsible
supply chain
Business ethics,
governance,
transparency
Business Impact
Bribery and
corruption‡
Cybersecurity
and data privacy‡
HIGH
Strategic Report Integrated Annual Report 2023Anglo American plc
22
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Our material matters
To better demonstrate and communicate how
our material matters link to our Sustainable
Mining Plan, we have mapped each material
matter to the plan’s relevant Critical Foundations
and Global Sustainability Pillars.
Critical Foundations
SMP elements
Material matters
Zero mindset
Safety, health and well-being of the workforce‡
Leadership
and culture
Business ethics, governance and transparency‡
Attraction, retention and engagement of workforce
Bribery and corruption‡
Cybersecurity and data privacy‡
Training and upskilling opportunities
Read more
Page 68
Page 74
Page 72
Page 74
Page 34*
Page 72
Inclusion
and diversity
Diversity, equity and inclusion
Page 72
Human rights
Human and labour rights
Governance
and policies
Group standards and processes**
Compliance with legal requirements**
Pages 64–72
Page 47*
Page 47*
* Page reference relates to the Sustainability Report 2023. For more information, see our Sustainability Report 2023 www.angloamerican.com/sustainability-report-2023
** While Group standards and processes and Compliance with legal requirements were not identified in our materiality analysis, they form part of the Critical Foundations of our
Sustainable Mining Plan. We, therefore, include an overview of these topics in our Sustainability Report.
Our material matters
23
Global Sustainability Pillars
SMP elements
Material matters
Climate resilience and adaptation‡
Greenhouse gas emissions (GHGs) and renewable energy‡
Healthy
Environment
Biodiversity and land management
Water use, quality and availability‡
Mineral residue management‡
Resource re-use/recycling
Thriving
Communities
Community and indigenous rights
Community consultation and engagement‡
Economic development of communities
Community health and education development
Responsible mine closure and regeneration
Proactive policy advocacy approach
Responsible product offering
Responsible supply chain
Economic impact on producer countries
Trusted
Corporate
Leader
Read more
Page 50
Page 54
Page 57
Page 58
Page 59
Page 70*
Page 85*
Page 60
Page 60
Page 62
Page 88*
Page 93*
Page 47
Page 64
Page 63
* Page reference relates to the Sustainability Report 2023. For more information, see our Sustainability Report 2023 www.angloamerican.com/sustainability-report-2023
Strategic Report Integrated Annual Report 2023Anglo American plc 24
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Looking at
global trends
In considering the evolution of our long term
strategic context, we identify and analyse a
wide range of trends that are likely to influence
our business.
We assess trends in terms of their potential impact on
the value of our business while also considering the
value created for, and impact on, all our stakeholders
and the timeframe over which they could develop in
significance. We recognise that individual trends do not
unfold in isolation and that when they converge, there is
potential for more pronounced effects.
Our strategy positions us well to navigate the many
dimensions of our external context and, as trends
develop, is flexible enough to allow us to adapt as
required. Our high quality and diversified portfolio of
assets, relentless approach to operational delivery, and
talented people – combined with business decisions
guided by our Purpose – set us up to take advantage of
commercial and other opportunities, thereby unlocking
our full potential for sustainable value creation.
1. Climate change and the environment
What are they?
Climate change is one of the defining
challenges of our time and there is increasing
focus across society on efforts to reduce
carbon dioxide (CO2) emissions and other
greenhouse gases (GHGs). There is also
growing awareness of the implications of
climate change and the need to mitigate
and adapt to its possible impacts across
the economy.
The global response includes a transition
towards renewable power generation,
battery storage, electrification of transport,
development of low carbon industrial
processes and changes to agricultural
practice. There is also a move towards more
efficient use of materials and building more
sustainable and/or circular supply chains.
At the same time, many countries are
tightening air quality standards to mitigate
other harmful emissions, while there is an
increasing focus on measures to protect
water supplies, biodiversity and local
ecosystems.
Looking at global trends
25
We are enhancing our systematic
assessment of climate change physical
risks across our operations and under
different climate trajectories. This supports
the ongoing refinement of our response and
mitigation plans to identified material risks.
▶ For more on our Portfolio
See pages 30–39
▶ For more on our approach to climate change
See pages 49–57
What does it mean for our industry?
Increased demand for the metals and
minerals essential to the low carbon
transition and broadening awareness of the
vital role that mining must play
Low carbon technologies, such as renewable
power generation infrastructure and electric
vehicles (EVs) powered by batteries and
fuel cells, generate additional demand for
many metals, including copper, nickel, PGMs
and steelmaking raw materials (iron ore,
steelmaking coal and manganese). Longer
term, evolution away from carbon emitting
technology could introduce downside
demand risk for some materials. For example,
while increased demand for battery electric
vehicles poses a downside risk to demand for
the PGM-containing catalytic converters used
in internal combustion engine (ICE) vehicles,
it is offset by hybrids, which require similar
quantities of PGMs, and longer term, by fuel
cell electric vehicles.
A focus on reducing the GHG footprint of
the mining value chain, including for carbon
intensive downstream sectors such as the
steel industry
Steel will remain an essential building block
of the modern economy, irrespective of
pressure to develop lower carbon methods
of steel production. Pathways to decarbonise
the steel industry include technologies like
electric arc furnaces that will favour higher
quality steelmaking coal and iron ore (such
as that produced by our operations), as well
as the increased use of recycled material.
Adoption of circular economy practices
The mining industry has a role to play
in supporting the development of more
sustainable supply chains for basic raw
materials. This includes an industry drive to
support the sustainability performance of
our downstream value chains to ensure raw
material supply.
Supply side constraints
Increased regulatory scrutiny on all aspects
of mining, from water use to environmental
impacts, means that projects will be more
costly and difficult to deliver.
Anticipating and preparing for the impacts
of physical risks
Mining operations, their value chains and
their broader social and environmental
networks are already experiencing the
impacts of climate change, including
increased incidences of drought conditions,
flooding, wildfires and supply chain
disruptions. Identifying and assessing risks
and putting in place mitigating measures to
effectively respond to weather events, water
stress and threats to biodiversity enhance
the resilience of the industry and support
surrounding communities.
Delivering value through our strategy
We produce many of the metals and minerals
that are essential to the low carbon transition,
including copper for EVs and renewable
energy capacity, nickel for EV batteries, and
PGMs for hydrogen fuel cells and green
hydrogen production.
In recent years, the commissioning of our
Quellaveco copper mine, our development
of a Crop Nutrients business focused on a
comparatively low carbon fertiliser product,
and our progress towards developing a
number of other copper and wider metals
projects, together represent the latest phase
of improving the quality and nature of our
portfolio towards future-enabling products.
We have a target to be carbon neutral
(Scopes 1 and 2) across our operations
by 2040, with a 30% reduction (against a
2016 baseline) by 2030. We aim to achieve
this through efficiency improvements,
transitioning to renewable power supply
across our operations and implementing
several low carbon technologies through our
FutureSmart Mining™ programme.
In addition, we have an ambition to reduce
our Scope 3 (value chain) emissions by 50%
by 2040. Emissions from the steel value chain
make up most of our Scope 3 emissions and
we are working closely with our customers
and the broader industry to help achieve this
ambition.
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Anglo American plc
Integrated Annual Report 2023
Strategic Report
Looking at global trends
2. Macro-economics and demographics
What are they?
Several developing economies, most
notably China, have experienced a period
of rapid urbanisation and industrialisation
over the past two decades, resulting in an
unprecedented number of households
entering the wealthier middle class.
More recently, the economic fallout of the
pandemic and energy security challenge has
impacted poverty reduction efforts in some
regions, increasing levels of inequality.
Several countries and regions are expected
to experience greater economic maturity in
the coming decades, particularly India, south
east Asia, South America and Africa.
In the developed world and globally,
consumption patterns may also change due
to changing demographics, fertility rates and
ageing populations.
What does it mean for our industry?
As the global population grows (at least
for the next four decades; current rate
c.70 million per year) and as economies
develop, so the need for food supply and
infrastructure (e.g. housing and transport)
grows, resulting in higher demand for
crop nutrients, steel and base metals.
Likewise, as disposable incomes increase,
demand for metals used in a wide array of
consumer products will increase, as well as
for diamonds. Metals are also essential for
economic development, itself an enabler
of decarbonisation.
Delivering value through our strategy
Anglo American has a diversified product
portfolio, increasingly focused on products
that enable lower carbon economic
development and that serve the needs
of the expanding global consumer class.
We have exposure to some of the largest
resource bases in both PGMs and diamonds.
We also have world class copper assets in
Collahuasi, Quellaveco and Los Bronces.
We have exposure to nickel through
Barro Alto and as a co-product of our
PGMs mines. Our high quality iron ore and
steelmaking coal assets are well placed to
support demand for cleaner steelmaking,
and we expect our Crop Nutrients business
to be well positioned to support sustainable,
high yielding, low carbon, organically
certified food production.
▶ For more on Portfolio
See pages 30–39
▶ For more on Innovation
See pages 40–65
Looking at global trends
27
3. Emerging technologies
What does it mean for our industry?
Technology will play a major role in
identifying new mineral deposits, managing
costs of production, improving productivity
and minimising the environmental impact
of mining.
Innovation in materials science has the
potential to significantly impact demand,
presenting both opportunities and risks for
metals and materials. For example, there is
growing potential for the use of PGMs in fuel
cells and for applications in medical science.
Blockchain technologies, enabling secure,
centralised and transparent data, will change
the nature of industry supply chains, and
will support the needs of our customers and
consumers, for whom the provenance of
materials is increasingly important.
Delivering value through our strategy
Our participation across the value chain
allows us to apply our innovations in
technology and sustainability more widely,
looking beyond upstream production to
examine other opportunities in the value
chains in which we participate. For example,
in 2023 we launched ValutraxTM, a proprietary
digital traceability solution designed to
provide customers with greater assurance
about the provenance of the products they
purchase. De Beers is equally a pioneer in
blockchain-based traceability with its Tracr™
platform, applying the technology to the
diamond value chain.
▶ For more on our ValutraxTM digital traceability
technology
See page 47
What are they?
New technologies constantly emerge,
focused on improving existing solutions,
solving global challenges, or addressing
society’s unmet needs. These have the
potential to significantly disrupt the status
quo in some sectors of the economy, while
unlocking opportunities for new products
and services.
Essential areas of technological
development include those related to
digital and big data, the application of
automation and artificial intelligence, and
the opportunities presented by blockchain
and digital finance.
Meanwhile, innovation in the materials
sciences will continue to influence
applications for metals and minerals.
This could create both demand upside
through new use cases and downside
risk from substitution.
Increasing sustainability challenges,
notably access to water and clean energy,
are often at the heart of these emerging
technologies.
Strategic Report Integrated Annual Report 2023Anglo American plc 28
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Strategic Report
Looking at global trends
4. Geopolitical shifts
What are they?
China’s economic growth has shifted
the balance of economic and political
influence eastwards. A resulting shift
in patterns of global trade has seen
the emergence of new regional trade
agreements, as well as more widespread
use of protectionist trade measures.
In the aftermath of the pandemic,
geopolitical instability has intensified,
highlighted by Russia's invasion of
Ukraine and conflict in the Middle East.
This period has also been marked by
shifts in the structure of global alliances.
Rising inequality, high levels of inflation,
stagnant economic growth and a perceived
failure of governments to deliver meaningful
improvements in quality of life have, in some
countries, led to an increase in populism,
polarisation and protest, weakening
democratic norms and government
functioning. This has further increased
geopolitical, political and policy uncertainty.
What does it mean for our industry?
The realignment of regional trading blocs
and greater socio-political complexity can
shift centres of demand, and consequently,
the flow of raw materials to them. Trade
restrictions and interstate conflict can impact
strategically important raw materials, bringing
a renewed focus on supply chain resilience
and alternative sources of supply. This offers
challenges and opportunities to the mining
industry as new sources and routes are found
while the world adjusts.
In countries where sources of mineral
supply are located, governments can
introduce both certainty and uncertainty to
the legislative and regulatory environment.
At the same time, constitutional change can
lead to delays in licensing and permitting
and to tax regime changes, which can
affect operational continuity and influence
investment in those countries.
Reigniting economic growth and combating
the threat of stagflation will reduce the
attractiveness of zero sum, ‘beggar thy
neighbour’ economic policies. This will require
increased investment and global capital
formation. Mining can play an essential role in
this by supplying the materials at the heart of
economic development.
Delivering value through our strategy
Our successful track record of developing
and operating projects in multiple
jurisdictions makes Anglo American a
partner of choice for countries looking to
develop their natural mineral deposits.
Our innovation-led pathway to sustainable
mining – FutureSmart Mining™ and, within
it, our Sustainable Mining Plan – helps us
to work with governments to advocate
for progressive regulatory frameworks
that encourage and support investment
in modern, sustainable mining. We have
sought to invest, over many years, in long
term relationships and sustainable economic
development within host communities so that
we have the relationships in place to manage
periods of complexity.
Our Marketing business focuses on providing
tailored materials solutions for our customers
and, by drawing together our longstanding
relationships, market insight and analytics
capability, we can respond to demand shifts
and redirect flows to fulfil the needs of our
customers and stakeholders.
▶ For more on Innovation
See pages 40–65
Reflecting stakeholder views in our Board decision making
29
Reflecting stakeholder views
in our Board decision making
Anglo American has long understood the role of its business in
society. This is encapsulated in our Purpose as: re-imagining
mining to improve people’s lives.
We consider workforce engagement to be
a priority for every leader at Anglo American
and we run regular surveys available to
all employees to identify areas where, for
example, we need to do more to ensure that
colleagues feel cared for and respected. Our
Global Workforce Advisory Panel aims to give
employees more of a voice in the boardroom
so their views can be better understood
and considered when decisions are being
made about the future of the business. In
2023, the panel met three times – with one
of the meetings taking place in person –
and the panel chair, non-executive director,
Marcelo Bastos, shared the key messages
from those meetings with the Board and the
Executive Leadership Team. The People and
Governance sections of this report provide
more detail on these engagements and
explain the resultant outcomes.
▶ For more information on our
Global Workforce Advisory Panel
See pages 161–162
Anglo American provides many of the
metals and minerals our modern society
needs, combining integrity, creativity and
innovation with due consideration for all
our stakeholders to better connect precious
resources to the people who need and value
them. We work together to provide people
with better jobs, a better education and better
businesses, and we are building brighter and
healthier futures around our operations, in
host countries and ultimately for billions of
people around the world who depend on our
products every day.
Our Values
Safety; Care and Respect; Integrity;
Accountability; Collaboration; and Innovation
shape our culture and guide our behaviour,
and are fundamental to creating enduring
benefit for all our employees, shareholders
and stakeholders in a way that demonstrably
improves people’s lives.
Understanding our employees
Our people are critical to everything we do.
We create safe, inclusive and diverse working
environments that encourage and support
high performance and innovative thinking.
We are acutely aware that to get the best
from our people we need to understand their
viewpoints and address any concerns they
may raise about working for us.
Section 172 statement
The Anglo American plc Board is
cognisant of its legal duty to act in good
faith and to promote the success of the
Group for the benefit of its shareholders
and with regard to the interests of a
broad range of stakeholders. These
include the likely consequences of
any decisions we make over different
time horizons; the need to foster the
relationships we have with all our
stakeholders; the interests of our
employees; the impact our operations
have on the environment and local
communities; and the desire to maintain
a reputation for high standards of
business conduct. The new directors
appointed to the Board in 2023 received
tailored, individual briefings on these
duties, and the Board received updates
in 2023.
As a major global mining company, the
Board understands that our wide range
of stakeholders (identified on page 16)
is integral to the sustainability of our
business, underpinning our social licence
to operate. In addition, the Board is
conscious that expectations around our
performance and contribution to society
– from local to global – are both diverse
and continuously evolving.
By listening to, understanding and
engaging with our stakeholders, the
Board endeavours to live up to their
expectations, by staying true to our
Purpose, acting in accordance with our
Values, and supporting management in
the delivery of our strategy.
Stakeholder considerations are integral
to the discussions at Board meetings and
the decisions we make take into account
any potential impacts on them and the
natural environment. Like any business,
we are aware that some of the decisions
we make may have an adverse impact
on certain stakeholders.
The Board holds management to
account for the delivery of our
Sustainable Mining Plan – a key
component of our FutureSmart Mining™
programme. We are committed to a
series of ambitious medium and longer
term goals that are aligned with the
UN’s SDGs. These goals are designed
to make a comprehensive and lasting
contribution that we expect will positively
transform how our stakeholders
experience our business.
The Board and its committees took a
broad range of factors and stakeholder
considerations into account when
making decisions in the year. Decisions
are made within the context of the long
term factors that may impact the Group,
including key competitive trends and
disruptions; technology capability; and
climate change considerations. For more
detail on Board activity in the year, see
pages 153–155. For more on the global
trends that influence the mining industry
and our business, see pages 24–28,
and for more on our approach to climate
change, see pages 49–57.
The Board (through its Sustainability
Committee) monitors progress towards
our Sustainable Mining Plan targets and
how these may affect future decision
making.
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Anglo American plc
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Strategic Report
Portfolio
The quality and long life of our mineral assets are the
foundations of our global business. We actively manage
our asset portfolio to improve its overall competitive
position, providing metals and minerals essential for a
cleaner, greener, more sustainable world and that meet
the needs of a growing global population, from homes
and electronics, to food and luxuries.
Portfolio
31
Hydrogen in the driving seat
The global response to climate change,
particularly the decarbonisation of energy,
transport and industry, is driving a major and
accelerating transition.
The growing role of hydrogen
Hydrogen is increasingly being seen as a key enabler of
this transition. It is a clean, versatile, energy carrier of almost
infinite supply that can be employed in sectors where
emissions are hard to abate, such as heavy-duty transport,
chemicals, steel, cement, aviation and shipping.
Mining has a critical role to play in supplying many of the
metals and minerals needed to decarbonise the global
economy. Anglo American is a leading producer of PGMs
such as platinum, palladium and rhodium, which will
continue to be used in internal combustion engine (ICE)
vehicles’ catalytic converters to ‘scrub’ noxious exhaust
gases. And, as a major producer of the platinum, along with
sister metal iridium, needed as a catalyst in fuel cells and
electrolysers, we have been an early supporter of fuel cell
electric vehicles (FCEVs) and an advocate of, and investor in,
the emerging hydrogen economy.
Hydrogen – opening up the market for FCEVs
As global energy demand continues to grow and consumers
look for alternatives to fossil fuel powered transport, electric
vehicle (EV) adoption is growing rapidly. The International
Energy Agency estimates that EVs will have a 35% share of
the global vehicle car market by 2035. A range of electric
vehicle technologies will likely be required to meet the
expected demand and breadth of applications, with some
more suited to battery electric vehicles (BEVs) and others to
FCEVs.
FCEVs work by chemically fusing hydrogen gas (stored in
a fuel tank within the vehicle) with oxygen from the air to
produce electricity that is used to power an electric motor
– with the only waste product being water. One major
advantage of FCEVs over BEVs is their quick refuelling time,
as well as their longer range. Fuel-cell refuelling is similar to a
conventional filling-station experience; a vehicle can be filled
in a few minutes for a range of 500 kilometres or more for
most FCEVs.
FCEVs are particularly well suited to vehicle fleets, such as
taxis and buses, as well as to heavy-duty trucks that require
long range and rapid refuelling times. Increasingly, FCEVs
are being seen as the preferred option for long-haul trucks,
because batteries – which would represent most of the
weight, and take up most of the space, in such vehicles –
would be too big, heavy, and costly. This is particularly
relevant given growing concerns about the global availability
of battery critical raw materials.
3 million
kilometres completed by H2 Moves Berlin
FCEV taxis across 250,000 customer journeys
Aligning with our strategy to help accelerate zero-emission
transport through the deployment of PGMs-enabled
hydrogen FCEVs, Anglo American has driven several
initiatives. In China, we launched the Foshan FCEV project
which aims to deliver three hydrogen refuelling stations and
deploy 500 multi-model FCEVs by the end of 2026. We also
co-launched a BMW iX5 FCEV demonstration project with
BMW and Sasol at the South Africa Green Hydrogen Summit,
held in Cape Town, in October 2023.
FCEV taxis on the streets of Berlin
In Germany, we launched H2 Moves Berlin, together with
Toyota Germany and leading taxi operator SafeDriver
Group-ENNOO, at the end of 2022. H2 Moves Berlin makes
use of Berlin’s well developed existing hydrogen-refuelling
infrastructure and the Uber ride-hailing platform to operate
the country’s largest hydrogen-powered FCEV fleet. On
track to expand to as many as 200 vehicles, the taxis have
now driven some 3 million kilometres and completed over
250,000 customer journeys.
“Passengers are very enthusiastic about the comfort
and sustainability that FCEVs can provide. Our drivers
and their cars cannot afford to be off the road, and they
appreciate the driving performance of an electric car
with the range and refuelling speed of a combustion
engine. As a fleet operator looking to minimise vehicles’
downtime while delivering zero-emission mobility, FCEVs
simply make sense.”
Thomas Mohnke
Managing Director of the SafeDriver Group
President and Managing Director of Toyota Germany, André
Schmidt, comments: “H2 Moves Berlin proves that alternative
drivetrains and everyday use go hand in hand. These
milestones underline the reliability of hydrogen-powered
vehicles – and everyone benefits from reducing air and noise
pollution on Berlin’s streets.”
Next steps
Many governments are looking to hydrogen to support
their decarbonisation objectives, and the focus now is on
overcoming the barriers that currently exist to deploying
hydrogen more widely. These include improving the cost-
competitiveness of producing zero carbon hydrogen using
renewable energy, building supporting infrastructure and
the necessary supply chains, as well as promoting scale
deployment in key industries. Anglo American is working
with third parties such as car makers and liaising with
governments to actively support the hydrogen economy.
Anglo American’s head of market development, Benny
Oeyen, says: “The successful deployment of hydrogen-
powered taxis in Berlin demonstrates FCEVs’ performance in
high usage, real-life driving conditions, and we are continuing
to support Germany’s emerging ecosystem of hydrogen-
powered transport. Looking further ahead, and afield,
Anglo American is identifying additional light-duty FCEV
deployment opportunities in Europe, China, the US, and
South Africa.”
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Anglo American plc
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Portfolio
Unique portfolio supplying
three major demand trends
The outlook for demand for many mined metals and minerals has rarely
looked better due to three major demand trends: the urgent need to
decarbonise the global economy; the pull for improved living standards
from a growing and urbanising global population; and the need for
greater food security and nutritional standards as available productive
farmland struggles to keep up.
60
new copper mines the size
of Quellaveco needed
by 2040 to enable the
energy transition
1
3.5 tonnes
of copper per MW of electricity
are required in solar PV panels –
compared with c.1 tonne per MW in
conventional electricity production
2
4.6 Mt
forecast annual
consumption of nickel
in battery electric
vehicles compared
with 0.5 Mt in 2022
3
1. Copper is critical to decarbonisation,
in particular to the transition of the global
energy system. Increased electrification will
lift electricity demand significantly, requiring
greater investment in copper intensive
electricity grids. Furthermore, electricity
generation will shift from carbon intensive
to renewable sources, which require many
times more copper per unit of electricity
supply.
2. Nickel has become a crucial metal in the
global transition to green energy. It is a key
component in lithium-ion batteries that are
commonly used in EVs. High nickel content
batteries offer greater energy density and
longer range, making EVs more viable for
widespread adoption. Nickel is also integral
to the production of other green energy
technologies, including solar panels and
wind turbines.
3. Demand for PGMs will continue to be
driven by low and zero-emission transport,
on the back of more stringent global
emissions legislation. The demand for ICE
vehicles is expected to grow in developing
countries owing to the significant costs
related to BEVs and their supporting
infrastructure. PGMs demand is expected
to be augmented by emerging new
applications, including hydrogen fuel cell
electric transport.
Portfolio
But, as an industry, we need to transform the
way we operate – by re-imagining processes
and technologies to minimise our physical
footprint while maximising our positive social
impact. Anglo American’s diverse portfolio
and innovation-led approach through our
FutureSmart Mining™ programme positions
us to live up to our Purpose and meet the
world’s needs in a safe and responsible way.
140 bn tonnes
The amount of steel required to deliver the equivalent
living standards across the whole world as currently
enjoyed by the developed world, from a current
global stock-in-use base of c.34 billion tonnes
4
33
0.5 bn
The forecast growth of the
global upper and middle classes
by 2030
10 bn
The number of people to feed
sustainably by 2050 based on
a projected global population
growth of up to 2 billion people
over the next 25 years
5
6
4. Steel is essential for almost all
infrastructure, including the low carbon
economy – literally in the case of the
electricity grid and wind turbines which
won’t stand up without steel. While new
clean steelmaking technologies are in
development, the amount of primary
iron units required is largely unaffected.
Furthermore, technologies that require less
or no steelmaking coal will take many years
to reach scale and, therefore, high quality
steelmaking coal will be required to support
infrastructure development for decades
to come.
5.The demand for ethically sourced natural
diamonds is expected to continue to
grow, particularly in the fast-developing
economies of Asia. The world’s upper
and middle classes are forecast to grow
by 0.5 billion by 2030, with an associated
30% increase in spending to an estimated
$50 trillion annually.
6. Feeding a predicted global population
of nearly 10 billion by 2050 will require
up to a 40% increase in crop production.
But, despite the intense pressure to raise
agricultural output, there is a growing
awareness that this has to be achieved
using less land and with less impact on
the environment. Our low carbon POLY4
fertiliser product is perfectly placed to play a
significant role to help farmers improve crop
yield and quality, while improving soil health.
3-5%
Increase in crop yields through
the use of POLY4 – the fertiliser
product from our Woodsmith
polyhalite project
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34
Anglo American plc
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Portfolio
Anglo American is a leading global mining company and
our products are the essential ingredients in almost every
aspect of modern life.
Our portfolio of world class operations,
development projects and undeveloped
resources provides many of the metals and
minerals that enable a cleaner, greener,
more sustainable world through a lower
carbon global economy and that meet the
fast growing consumer-driven demands of
developed and maturing economies. We are
a responsible producer of copper and nickel,
PGMs, diamonds (through De Beers), and the
steelmaking ingredients of high quality iron
ore and steelmaking coal. In recent years,
the commissioning of our new Quellaveco
copper project, our development of a
Crop Nutrients business focused on a low
carbon fertiliser product, and our progress
towards developing a number of other
copper and wider metals projects, together
represent the latest phase of improving the
quality and nature of our portfolio towards
future-enabling products.
The scale and diversity of our portfolio
allow us to optimise our financial resources,
technical expertise and supplier relationships
to deliver on our potential, for the benefit of
all our stakeholders. The portfolio’s depth and
breadth create a measured risk profile that
is financially resilient in a low carbon world,
and support sustainable returns through
spreading our investments across diverse
asset geographies and end markets.
Building strategic advantage
The primary source of competitive advantage
in the mining industry is owning high quality,
large scale, long life mineral assets, and
operating them more effectively (productivity)
and efficiently (cost) than other comparable
assets. There is then room for further
enhancement when those assets deliver
products into structurally attractive markets.
The evolution of the Anglo American portfolio
is guided by our strategy. Specific choices
with respect to our portfolio are governed by
a set of strategic principles. These principles
also inform our capital allocation and
investment appraisal processes, ensuring
consistency of strategic decision making
across the Group, as we work towards
embedding climate-related and broader
sustainability considerations at each stage.
In assessing our asset portfolio, the strategic
principles we consider include:
– The stand-alone quality of individual
assets, including their relative cost position,
asset life and growth potential
– Our global competitive position within the
individual product groups
– The asset’s specific role and contribution to
the portfolio as a whole
– The additional value potential generated
through leveraging our internal capabilities.
A future-enabling portfolio*
Production mix from
long term portfolio
● Copper
● High quality Iron Ore
● Nickel
● PGMs
● Steelmaking Coal
● Manganese
● Diamonds
● Crop Nutrients
* Based on attributable copper equivalent production
which is calculated using long term parameters.
Future production levels, based on information available
at December 2023, are indicative and subject to final
approval.
Our product groups
Future-enabling metals and minerals
constitute approximately 85% of current
production. That trend is set to continue in
the coming years as we bring new copper
production on stream and introduce low
carbon fertiliser into our global customer
offering.
Copper
Anglo American has a world class position
in copper, built around its interests in three of
the world’s largest copper mines. In Chile, we
have interests in Collahuasi (44% interest in
the independently managed joint operation)
and Los Bronces (a 50.1% owned and
managed operation), with Reserve Lives of
74 and 33 years, respectively – all tier one
assets. Quellaveco copper mine, located in
Peru, started production in mid-2022. It has
one of the world’s largest untapped copper
orebodies and is expected to add around
300,000 tonnes per annum of copper
equivalent production (100% basis) on
average in the first 10 years of production.
The significant resource base of these assets
underpins our future near-asset growth
opportunities, in addition to the polymetallic
Sakatti deposit, which is being evaluated
extensively by our Projects team in Finland.
Copper is critical to decarbonisation, in
particular to the transition of the global
energy system. The transition from fossil fuel
energy production to electrified and
renewable alternatives relies on a reliable
and significantly increased supply of copper,
including the transformation of energy grids
and distribution, as well as the transition to
hybrid and electric vehicles.
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35
Across the copper mining industry, many
companies are expected to struggle to
increase production to meet longer term
demand growth, as declining grades
and more challenging physical and
environmental conditions, along with tougher
licensing and permitting requirements, are
expected to limit the industry’s ability to
deliver new copper supply.
Nickel
Anglo American produces two types of
nickel. Our Barro Alto and Codemin nickel
assets (both 100% owned) are located in
Brazil and produce ferronickel, the majority of
which is used in the production of high quality
stainless and heat resistant steels. Our PGMs
operations produce nickel as a co-product,
amounting to 21,800 tonnes in 2023. This
co-product – battery grade nickel – can be
used in lithium-ion batteries that are integral
to multiple carbon abatement technologies,
including BEVs.
Platinum Group Metals (PGMs)
Our PGMs business (held through an
effective 79.2% interest in Anglo American
Platinum Limited) is a leading producer of
PGMs — platinum, palladium, rhodium, iridium
and ruthenium. We mine, process and refine
the PGM basket of five precious metals from
its high quality resource base, located in the
biggest known PGM deposit in the world –
the Bushveld Complex in South Africa. We
also own and operate Unki mine – one of
the world’s largest PGM deposits outside of
South Africa, on the Great Dyke in Zimbabwe.
Our flagship mine, Mogalakwena, is designed
to be one of the world’s highest margin PGM
producers, in part due to being the only large
open pit PGM mine that exists.
We are continuing to reposition the business
around a leaner, best-in-class operating
footprint at our Mogalakwena, Amandelbult
and Mototolo mines in South Africa, and
well as increasing hardness; electrical
conductivity; and corrosion, acid and wear
resistance. It can also be incorporated
into the production of stainless steel; for
example, steel with 4–5% molybdenum
content is often used in the manufacture
of marine and chemical equipment.
Downstream, molybdenum’s applications
include its use in the manufacture of jet
engines for aircraft, automotive engine
parts, power-generation turbines, drills
and saws.
Molybdenum’s other main applications
are in the chemical industry, where it is
used in catalysts and lubricants, including
as a catalyst in petroleum refineries to
help remove sulphur from natural gas
and refined petroleum products. Other
important applications include the
electrical and electronics, medicine,
fertiliser, and paint sectors.
Next steps
Quellaveco’s technical vice president,
Justo Enriquez, comments: “We have now
installed a digital twin so that, using smart
sensors, we can digitally replicate the
entire process of extracting molybdenum
– including its functionality, features, and
behaviour – in a virtual environment. This
will optimise the safety and efficiency of
the molybdenum plant, putting our people
out of harm’s way. In the eight months
of operation it has completed, the plant
has delivered very reliable results, with
excellent recovery percentages achieved.
And, as a Peruvian, I am pleased that our
flagship Quellaveco mine is adding to
Peru’s production of this important, future-
enabling metal.”
Outside Quellaveco copper mine’s molybdenum plant warehouse, a flotation concentrator operator’s
radio allows him to stay in touch at all times with his team in the flotation area.
Molybdenum – another valuable
product from Quellaveco
Quellaveco, one of the world’s most
technologically advanced mines, which
we commissioned in mid-2022, now has
a new plant that has been producing
molybdenum since April 2023. Once
constructed, the facility completed its
testing regime and started production in
under a month – an industry record.
Molybdenum is only found in small
proportions in Quellaveco’s copper-
bearing ore, but there is enough of it to
make its processing into a concentrate
of around 52% purity commercially
viable. To separate it from the copper, the
molybdenum goes through a flotation
process, before being dried, bagged as
a powder and dispatched to end-users.
Although relatively simple and compact,
the processing facility is equipped
with state-of-the-art technology and
automated processes, which are
controlled remotely from the Integrated
Operations Centre. The plant, which
is now operating at full capacity, is set
to produce more than 5,000 tonnes of
contained molybdenum annually, on
average, over the next five years.
Molybdenum’s properties and many uses
Molybdenum is a silver-grey metal that
is usually extracted as a by-product of
copper and tungsten mining. Its melting
point of 2,610°C is one of the highest of
all the elements, a characteristic that gives
molybdenum many valuable uses.
Demand from the steelmaking industry
accounts for around 80% of the total
consumption of molybdenum. Its primary
use is as a valuable alloying agent, with
the metal improving the strength of steel
at high pressures and temperatures, as
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Portfolio
Unki mine in Zimbabwe, alongside our joint
operation interest in the Modikwa mine in
South Africa.
Demand for PGMs is forecast to remain
healthy, helped by the ongoing trend towards
cleaner-emission vehicles, driven by more
stringent global emissions legislation. Strong
demand from the automotive industry is likely
to be augmented by growing opportunities
for emerging new applications, including
hybrid (which require similar quantities of
PGM loadings as ICE vehicles) and hydrogen
fuel cell electric transport. Meanwhile,
emerging economies, such as India, offer
the potential of developing, from a relatively
low base, into significant platinum jewellery
markets. The versatility of the basket of
metals is highlighted too in the breadth of
applications for the lesser-known PGMs.
We are well positioned to proactively
stimulate demand for PGMs, including
through targeted campaigns in emerging
jewellery markets; through direct investment
in a number of companies developing new
technologies that are expected to drive
industrial demand for PGMs; and creating
new investment demand for these precious
metals as a store of value.
Diamonds
De Beers is a global leader in diamonds,
producing around a third of the world’s
rough diamonds, by value, across four
countries: Botswana, Canada, Namibia
and South Africa. Within its portfolio,
De Beers (Anglo American: 85% interest),
in partnership with the Government of the
Republic of Botswana – through a 50:50 joint
operation known as Debswana – has one
of the richest diamond mines in the world at
Jwaneng, and one of the largest resources, in
terms of total carats, at Orapa.
De Beers’ major diamond mining assets have
large, long life and scalable resources and
we are continuing to invest in the existing
operations to extend mining activities. The
Cut-9 expansion of Jwaneng will extend the
life of the mine and, in South Africa, Venetia
is transitioning to an underground operation,
extending the life of mine to 2045.
The lack of significant kimberlite discoveries
globally over recent years, combined with
the ongoing trend of growth in consumer
demand for diamond jewellery in both
mature and developing markets, points to
good prospects for the diamond business
in the long term, despite the current short
term challenges being experienced across
the industry. The continued investment in
diamond mining support technologies will
enhance De Beers’ portfolio of high quality
and high margin assets, and the ability of
the business to flex production to prevailing
demand.
Through its differentiated rough diamond
distribution model, which includes
Sightholders, De Beers has a range of
insights into its customers’ demand patterns.
The company seeks to stimulate consumer
demand for diamonds through its retail
brands and through its participation in the
Natural Diamond Council. Rigorous ethical
standards are underpinned by De Beers’ Best
Practice Principles (BPP) programme, while
the business also provides source assurance
through its proprietary Tracr™ blockchain
platform.
Although diamonds have a limited role in
the transition to a low carbon economy,
our mined diamond production is highly
aligned with a low carbon future – aiming
to be carbon neutral by 2030 – while
continuing to contribute significantly to
the local economies that host our mines,
most notably in Botswana and Namibia.
De Beers has a longstanding commitment to
sustainability and environmental protection
and restoration.
Iron Ore
Steel is an essential material for almost all
infrastructure and provides the backbone
of the low carbon economy and wider,
long term socio-economic development.
Steelmaking is currently carbon intensive, but
our high quality iron ore and steelmaking coal
products support efficient – and therefore
lower emitting – steelmaking today and are
well positioned to support the transition of the
sector to lower carbon production methods
centred around the use of hydrogen.
Anglo American’s iron ore operations provide
customers with high iron content ore, a large
percentage of which is direct-charge product
for steelmaking blast furnaces. In South
Africa, we have a 69.7% shareholding in
Kumba Iron Ore, whose Sishen and Kolomela
mines produce high grade and high quality
lump ore and also a fine ore.
In Brazil, our Minas-Rio operation (100%
ownership), consisting of an open pit mine
and beneficiation plant, produces a high
grade pellet feed product, with low levels
of contaminants. The iron ore is transported
through a 529 km pipeline to the iron ore
handling and shipping facilities (50% owned)
at the port of Açu.
As steel producers in China and elsewhere
face ever-tighter emissions regulation and
are seeking ways to make their furnaces
cleaner and more efficient, so the demand
for higher quality iron ore products increases.
The lump iron ore produced from Kumba’s
operations commands a premium price,
owing to its excellent physical strength and
high iron content (63–65% average Fe
content), as well as its suitability for lower
carbon, direct reduction steelmaking.
Minas-Rio’s pellet feed product also
commands a premium price, as its ultra-low
contaminant levels and high iron content
(c.67% Fe content) are sought after by steel
producers who are seeking to minimise
emissions while boosting productivity.
Steelmaking Coal
We are the world’s third largest exporter of
steelmaking coal and our operations, located
in Australia, serve customers throughout Asia,
Europe and South America.
Our steelmaking coal assets, located in
Queensland, include the Moranbah and
Grosvenor mines (both 88% ownership).
The mines are underground longwall
operations and produce premium
quality hard coking coal. More stringent
environmental and safety regulations have
led to a requirement for many steel producers
to run cleaner, larger and more efficient blast
furnaces which, combined with a number
of mine closures in recent years, results in
increased global structural demand for high
quality coking coal, such as that produced by
our Australian mines.
Manganese
We have a 40% shareholding in the
Samancor joint venture (managed by
South32, which holds 60%), with operations
based in South Africa and Australia.
Alongside copper, manganese is a
critical material, enabling the growth of
concentrated solar energy and the increased
penetration of battery technology. Nickel-
manganese-cobalt is one of the leading
battery technologies.
Portfolio
37
non-diesel-powered vehicles and
equipment; low CO2 emissions and water
usage; and zero waste generation.
But it’s all in the permitting
As with many potential new mining
projects around the world, permitting is
a long and detailed process. This is no
different for Sakatti, as it is located on land
designated as ‘Natura 2000’ territory –
a network of protected areas covering
Europe’s most valuable and threatened
species and habitats. For example, the
need to protect the region’s unique
biodiversity has restricted the amount of
exploration drilling that we can do; we
have safeguarded reindeer-migration
routes; and purchased forestry land in
compensation for our planned activities.
In order to progress the project towards
development, Anglo American has
engaged closely with local and national
government, as well as a continuous
dialogue – guided by our Social Way
– with local communities and other
interested parties.
The appropriateness of this approach
was endorsed in August 2023 when
the Lapland Centre for Economic
Development, Transport and the
Environment approved Sakatti’s
environmental impact assessment
(EIA), marking a major milestone for
the development of Sakatti. The EIA
process, initiated in 2017, and rooted
in extensive baseline studies since the
orebody’s discovery in 2009, received
recognition for its level of detail,
particularly in hydrogeological modelling
and water management, and for its
overall comprehensiveness. The EIA also
covered factors such as extractive-waste
management, noise, vibration, dust,
socio-economics, Sakatti’s use of eDNA to
identify reindeer movement, stakeholder
engagement and logistics.
What’s next?
We are making progress on several fronts.
Notably, we are carrying out further work
to augment the existing studies in order
to secure a Natura 2000 derogation from
the Finnish government, given the location
of Sakatti in an ecologically sensitive
area. At the same time, we are continuing
to explore the orebody, progress the
technical studies and engage with
stakeholders.
“Without secure and
sustainable access to the
necessary raw materials, our
ambition to become the first
climate-neutral continent is
at risk … Without critical raw
materials, we will not lead the
digital decade and will not be
able to develop our defence
capabilities either.”
Ursula von der Leyen
President of the European Union,
State of the European Union
address 2022
Geologist, Emil Andersson, inspects a drill core at our Sakatti polymetallic project in northern Finland.
Sakatti – a significant source of
future-enabling minerals
The Sakatti orebody is located in Finnish
Lapland. It is primarily a nickel-sulphide
deposit, though it contains an array of
other metals, including copper, cobalt,
platinum and palladium, gold, and silver.
Its high copper-equivalent grade of c.4%
marks it out as one of the most promising
sources of copper and nickel – two metals
critical to the battery and automotive
value chain – in the heart of Europe.
A FutureSmart mine
At Sakatti, Anglo American is planning its
next generation of the FutureSmart mine
– an underground mine that will reflect
the company’s integrated approach
to delivering improved sustainability
outcomes through technology and
innovation. Many of the mine’s operations
will be conducted remotely and
autonomously; use renewable energy;
not require wet tailings storage; and have
only a small on-surface footprint. It will
be distinguished by its fully electronic,
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Crop Nutrients
Anglo American is progressing the
development of the Woodsmith project
in the north east of England to access the
world’s largest known deposit of polyhalite,
a natural mineral fertiliser product containing
potassium, sulphur, magnesium and calcium.
Our fertiliser product – known as POLY4 –
will be exported to a network of customers
overseas from our port facilities at Teesside.
As we develop the mine and associated
infrastructure, we are also developing
demand for its product. POLY4 continues to
demonstrate the significant benefits of its
multi-nutrient, low chloride characteristics on
a wide variety of crops at commercial scale.
Beyond its crop yield and quality benefits,
the value of the product is also expected to
be enhanced by its positive environmental
properties – a comparatively low carbon
footprint (given minimal processing
requirements), its natural ability to improve
soil health, and its suitability for organic use.
This long life, tier one asset fits well with
our established strategy of securing and
developing world class assets, particularly
in the context of Anglo American’s trajectory
towards products that support a fast growing
global population – in this case, to meet ever
growing demand for food – and enable a
cleaner, greener, more sustainable world.
Portfolio update
We continue to seek to refine and upgrade
the quality of our asset portfolio, including
reducing its complexity, to ensure that our
capital is deployed effectively to generate
enhanced and sustainable returns for our
shareholders over the long term.
Anglo American has transformed the quality
and performance of its portfolio over the
last decade, producing significantly more
physical product from a far smaller number
of larger and higher quality assets.
Portfolio management
During 2023, our focus was on progressing
the Woodsmith polyhalite project.
Woodsmith is a large scale, long life, tier
one fertiliser project being developed in
north east England, with a final design
capacity of c.13 Mtpa of polyhalite ore,
subject to studies and approval. Polyhalite
is a naturally occurring mineral that, via a
simple granulation process, is converted to a
multi-nutrient product – POLY4 – an organic,
comparatively low carbon, environmentally
responsible crop nutrition solution that
contains four of the six key nutrients that
all plants need for healthy growth. The
project will add greater diversity and long
term value-adding growth to the portfolio,
in a low risk jurisdiction. Core infrastructure
activities of shaft sinking and tunnel boring
continue to progress well. In parallel, and as
previously communicated, we are enhancing
the project’s configuration to accommodate
higher production volumes of c.13 Mtpa,
an optimised phased development, and
to enable more efficient, scalable mining
methods over time. The required studies are
progressing well. Following conclusion of
the study programme, we expect the project
to be submitted for Board approval in the
first half of 2025, with first product to market
expected in 2027. Capital expenditure in
2023 was $0.6 billion and is expected to be
c.$0.9 billion in 2024.
In October 2022, Anglo American formalised
a partnership with EDF Renewables (EDFR)
to form a new jointly owned company,
Envusa Energy, with the aim of developing
a regional renewable energy ecosystem
(RREE) in South Africa. Significant progress
has been made in the pathway to deliver
wind and solar power to our operations in
the country, where the RREE is expected to
meet 100% of Anglo American’s operational
power requirements, as well as support
Construction progress of the material transport tunnel that will connect the Woodsmith mine site to the
materials handling and port infrastructure.
the resilience of the local electricity
supply systems and the country’s wider
decarbonisation.
▶ For more on progress of our regional renewable energy
efficiency and returns, cognisant of balancing
current macro-economic uncertainties
with the compelling longer term supply and
demand dynamics.
partnership
See page 55
Future growth
Anglo American offers an attractive long
term organic growth profile with significant
optionality focused on future-enabling
metals and minerals, predominantly in
copper, crop nutrients and high quality iron
ore. Quellaveco alone increased our global
production base by 10%(6) and serves as the
cornerstone of our sequence of value-adding
potential growth projects. We are sequencing
options appropriately, based on capital
The fundamental demand picture for mined
metals and minerals is ever stronger as most
of the world’s major economies accelerate
their decarbonisation efforts and as the
global population increases and continues
to urbanise. We aim to keep growing our
business into that demand, drawing on the
range of margin-enhancing organic options
within our business.
39
in the geological past. The opportunity lies
in the discovery potential in this vast, still
poorly explored, covered search space.
Anglo American’s discovery portfolio includes
many district-scale holdings that are partially
or wholly covered. Deeply buried mineral
deposits are commonly not accessible using
traditional open-pit mining methods.
The tilt towards new covered search
spaces brings with it the opportunity to turn
‘under cover’ discoveries into safe, highly
efficient underground operations with a
minimal surface footprint that is harmonious
with the landscape and with local
communities. Current such examples include
finding further mineral deposits deeper
underground at our near-asset Los Bronces
underground copper project in Chile, and our
discovery of polymetallic ores at Sakatti in
northern Finland.
Discovery
Discovery and Geosciences, including our
exploration activities, is consolidated and
centrally co-ordinated, covering near-asset
and greenfield discovery activities, projects
and operations. The integrated team
represents a strategic differentiator, enabling
the detailed understanding of our world class
assets to inform our pursuit of discoveries.
Anglo American was founded on world class
mineral discoveries. Building on the Group’s
strategy and long track record of discovery
success, we continue to shape a global,
diversified, risk-balanced portfolio focused
on new discovery search spaces and mineral
system thinking. This effort is enhancing our
position as a discoverer of superior-value
deposits that have the potential to improve
materially our production profile, over time.
Quality discovery portfolio
We are concentrating on the discovery of
mineral deposits in existing and new district-
scale positions that are capable of delivering:
– Sustainable returns to the business, on a
material scale
– Further improved diversification and
optionality for the business, especially
with respect to future-facing products
that will enable a cleaner, greener,
decarbonised world.
Our robust and diverse discovery portfolio
includes:
Near-asset discovery projects
Our near-asset discovery projects are
focused on the district-scale mineral
tenure around Anglo American’s existing
operations. Innovative geoscientific thinking
and sustained effort have yielded notable
discoveries over the past years that continue
to grow and provide development optionality
with further drilling. For example, production
Portfolio
from the Los Bronces Underground discovery
(Copper Chile) gives the operation an
option to replace future lower grade ore
by accessing higher grade ore from a new
underground section of the mine. Continued
drilling of this discovery has increased
contained copper in Mineral Resources by
160% to c.45 million tonnes since these
were first reported in 2009. Similarly, drilling
at the Northern Limb of the Bushveld
complex (South Africa) is helping to enhance
optionality by materially increasing the
confidence in Mineral Resources that support
a potential underground development
pathway. In other districts such as Quellaveco
(Peru), and Sakatti (Finland), additional
copper and PGM prospects respectively
have been identified and are currently
being evaluated.
Greenfield discovery projects
Greenfield discovery projects are those that
identify and secure district-scale mineral
tenure covering strategic, highly prospective
search space in established and frontier
settings. Our greenfield discovery focus
includes copper, nickel, PGMs and diamonds.
The mineral-system focus also brings the
potential for co/by-products, including gold,
cobalt, silver, molybdenum and zinc. The
Group has active greenfield programmes
in Australia (Queensland and Western
Australia), Canada, Greenland, South
America (Brazil, Chile, Ecuador and Peru),
Europe and sub-Saharan Africa (Angola,
Botswana, Namibia and Zambia).
Taking Discovery under cover
While many explorers limit their search to
traditional and now well-explored search
spaces, Anglo American’s Discovery function
recognises the strategic significance in
exploring for mineral deposits concealed
beneath younger rocks and sediments
deposited after the mineral deposits formed
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Innovation
Across every aspect of our business, we are thinking
innovatively to ensure the safety of our people, to
enhance the sustainability of our business, and to deliver
enduring value in its many forms for all our stakeholders.
Innovation
41
CPR and HDS – transforming
the future of tailings
The mining industry uses significant amounts
of water and energy in its processing of ore.
Traditionally, much of this water has been combined
with ‘fines’ (finely crushed rock) to form a slurry
material known as ‘wet’ tailings.
These frequently require large, expensive tailings storage
facilities, or TSFs – which present the mining industry with
potentially catastrophic risks from tailings dam failure. During
the past decade, two major such failures have tragically
occurred within the mining industry, causing significant loss
of life and environmental damage.
With more than 80% of Anglo American’s operations being
situated in water-constrained areas, along with the huge
expense involved in constructing, maintaining and monitoring
wet TSFs, there has been a clear imperative to identify
alternative solutions – to conserve water and energy, and to
remove risk.
Anglo American has been trialling and developing two
technologies: coarse particle recovery (CPR) and hydraulic
dewatered stacking (HDS). CPR allows the separation of the
valuable ore from larger-size rock particles to be processed –
grains of sand rather than fine dust. This reduces the amount
of energy required to crush and grind the ore, and saves
water since the resulting tailings are free draining, allowing for
greater water recycling and instead delivering unsaturated,
drier tailings for storage. HDS is a newer, complementary,
technology, patented by Anglo American, developed from
the company’s experience with CPR in base-metal sulphide
operations. HDS is an engineered co-disposal method which
combines free-draining sands from CPR and other processes
in a layered ‘sandwich’ for the ‘dry’ stacking of material
traditionally regarded as waste.
Following an 18-month pilot period at our El Soldado copper
mine’s technology-testing hub in Chile, the two processes,
working in tandem with each other, have accelerated
dewatering times significantly and yielded water recoveries
of around 80%, while considerably lowering the liquefaction
risk of stored tailings, as well as delivering significant energy
savings. Moreover, with a reduced and dry, re-usable area
needed for tailings storage, mine closure-related activities
can be carried out in months, rather than years, and the land
can be repurposed for community benefit, as appropriate.
c. 80%
Water recoveries of around 80%
at our El Soldado CPS/HDS trial
What’s next?
From being piloted at El Soldado, full-scale CPR plants are
at an advanced stage of construction at Mogalakwena
(PGMs) and Quellaveco (Copper), which was completed and
handed over to operations in November 2023. Additionally,
an HDS demonstration trial has just been completed on a
portion of an existing TSF at Mogalakwena; and both types
of plant are being planned elsewhere in the Group. Looking
further afield, we have established an HDS Working Group to
lead our outreach to other industry participants – from original
equipment manufacturers to other mining groups – to create
opportunities for CPR and HDS across the mining industry.
Neatly landscaped hydraulic dewatered stacking (HDS) tailings at
El Soldado. The tailings are able to be remediated into dry and
economically viable land following the mine’s closure.
“Safe storage and management of tailings are essential
if mining is to maintain its licence to operate. Through
repurposing the so-called ‘waste’ stream, we are
changing the mindset on tailings from being one of
risk management, to considering it as a recycling
opportunity, avoiding sterilisation of large tracts of land,
with significant benefits in the areas of processing, safety,
sustainability, safety, and public accountability.”
Phil Newman
Anglo American Lead – Innovation
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Innovation
Our approach
to innovation
Across every aspect of our business, from mineral
exploration to delivering our products to our customers, we
are thinking innovatively to ensure the safety of our people,
to enhance the sustainability of our business, and to deliver
enduring value in its many forms for all our stakeholders.
e -i m a
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O p e r a ting Model
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Innovation
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The combination of operational improvements provided
by the stable platform of our Operating Model and through
FutureSmart Mining™ – our innovation-led pathway to
sustainable mining – is fundamentally changing the way
we extract, process and market metals and minerals,
together providing our next step-change in operating and
financial performance.
Innovation
43
Marketing
Operating Model
Our Marketing business optimises the value from our
mineral assets and product offerings. We do this by fully
understanding and addressing our customers’ specific
needs and optimising our capabilities in the financial
and physical markets to drive the right commercial
decisions across the value chain – from mine to market.
▶ For more information
See pages 47–48
We believe we can build a long term sustainable
competitive advantage by securing access to
the best resources and through operating assets
more effectively (productive) and more efficiently
(cost competitive) than our competitors.
Our Operating Model is the foundation to support us
by providing structure, stability and predictability in the
way that we plan and execute every task. Planned
work is inherently safer and more cost effective than
unplanned work.
FutureSmart Mining™
FutureSmart Mining™ is our blueprint for the future of
our business. The intrinsic links between technology
and many of our sustainability outcomes are driving
the innovations that will transform the nature of
mining and how our stakeholders experience our
business. A future in which broad, innovative thinking,
enabling technologies and collaborative partnerships
are helping to shape an industry that is safer, more
sustainable and efficient, and better harmonised with
the needs of host communities and society. This is
about transforming our physical and societal footprint.
Technology
Through step-change technologies and digitalisation,
our mining operations are becoming safer and more
water- and energy-efficient. FutureSmart Mining™
is enhancing our performance across the entire
mining value chain, from the discovery of new mineral
deposits, to mining equipment and processing
techniques, to tailoring products to our customers.
▶ For more on technology and digitalisation
See pages 44–45
P101 is our asset productivity programme that
builds on the stability provided by our Operating
Model. It is about improving the performance of our
most value-accretive mining and other processes
to best-in-class benchmarks in terms of safety,
efficiency and productivity.
▶ For more information
See page 48
Sustainability
Our Sustainable Mining Plan, integral to FutureSmart
Mining™, is built around three Global Sustainability
Pillars and sets out our commitment to stretching
goals – driving sustainability outcomes through
technology, digitalisation and our innovative approach
to sustainable economic development.
Our Sustainable Mining Plan is designed to be a
flexible, living plan and we will continue to evolve it
as we learn and make progress and as technologies
develop, while also ensuring it stays relevant and
suitably stretching, in tune with our employees’
and stakeholders’ ambitions for our business. We
are currently exploring a number of areas of the
Sustainable Mining Plan that we feel may benefit
from being updated to align more closely with
our stakeholder expectations or deliver improved
sustainability outcomes and will update the plan when
we have developed these options more fully.
▶ For more on our Sustainable Mining Plan
See page 46
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Innovation
Technology
By integrating technology and data
intelligence with our Sustainable
Mining Plan commitments, we are
creating new systems that optimise
value for our stakeholders. We expect
this integrated and holistic approach
to deliver increasingly significant
safety, environmental and social
benefits, while reinforcing the ethical
credentials of our products.
FutureSmart Mining™ has systemic thinking
at its core – with additional value being
realised through multiple new technologies
working together. The framework for our
approach to technology and digitalisation is
set out as follows:
of transportation and lowers our energy
footprint, with 30% less mass transported
to high intensity downstream smelters.
The sensor fusion loop in South Africa has
been used to support BOS operations
globally, enabling the development of
intellectual property on selective mining
and ore sorting.
tailings was slurry commissioned in
November 2023, and early signs are
promising. In ‘tails scavenging’ mode,
it is projected to add c.12,000 tonnes
of copper production per annum.
Concentrating the Mine™
We are optimising mining processes
through technologies that target the
required metals and minerals more
precisely, with reduced water, energy
and capital intensity, and producing
less waste. These technologies include
bulk ore sorting (BOS), coarse particle
recovery (CPR), fines flotation, dry
processing and novel classification,
with their implementation integrated
into resource development planning.
WaterSmart Mine
With more than 80% of our assets
located in water scarce areas, we must
reduce our dependence on water and
associated tailings facilities. We will
always need water, but we can get
closer to full recovery recycling. Through
an integrated system of technologies,
including CPR and hydraulic dewatered
stacking (HDS), we are reducing fresh
water usage, moving to closed loop
and, potentially, the ultimate aim of fresh
water-less processing in our operations,
thereby eliminating the need for
saturated tailings storage; instead
creating stable, dry, economically viable
land available for re-purposing for the
benefit of stakeholders.
Progress in 2023
A full-scale BOS unit is operational at our
PGMs’ Mogalakwena North concentrator
(c.70% of complex feed). The unit is
configured to reject waste prior to entering
the concentrator, increasing plant feed
grade.
A modular ultrafines recovery plant was
installed at Mogalakwena to address
the industry-wide challenge of reducing
ultrafine mineral losses. Results of the trial
indicate that the use of ultrafines recovery
technology significantly increases product
grades at equivalent metal recoveries.
In 2024, ultrafine recovery modules will
be implemented at Mogalakwena and
Amandelbult. The project allows for ease
Progress in 2023
The HDS pilot at Copper’s El Soldado mine
received its first CPR sand in November
2022. Water recovery has already been
measured at c.80% (our initial target), and
dewatering is continuing. The tailings are
currently being measured as unsaturated,
which is critical for the impact of the project.
The trial is still ongoing and is expected
to continue into the third quarter of 2024.
A brownfield trial to assess benefits from
water quality and quantity improvements
started at Mogalakwena in the first quarter
of 2023.
A full-scale CPR plant has been
constructed at the Mogalakwena North
concentrator. The project is currently in the
commissioning and optimisation phase.
Construction of a full-scale CPR plant at
Quellaveco (Copper) to treat flotation
Modern Mine
Safety is our number one priority and we
are committed to achieving zero harm,
so that all of our colleagues return home
safely, every day. We are developing
a new generation of engineered
controls to reduce exposure to risk in
work processes. We are using existing
modernisation technologies, introducing
remotely operated machinery, such as
automated drilling and blasting, and
continuous hard rock cutting, to remove
people from harm’s way.
Intelligent Mine
We are transforming how we make best
use of data, through integrated digital
tools for planning, simulation, execution
and monitoring, from resource definition
to the output of processing plants.
Our integrated digital transformation
platform is bringing the full mining
value chain together in a digital form
to help our people make data-driven
decisions in the most efficient manner,
predicting outcomes and driving
safety, environmental and productivity
improvements.
Innovation
Progress in 2023
A full-scale continuous hard rock cutting
system was installed underground at
our Mototolo PGMs mine. It is remotely
operated, and consists of continuous
cutting and material transport with
integrated ground support.The system
provides a number of benefits, including:
improved productivity; a safer working
environment, with fewer people working in
the production stopes area, and reducing
ore dilution. During 2024, the system
will contribute to production at Mototolo
and demonstrate a pathway to transition
from conventional to fully mechanised
operations in steeply dipping, narrow,
tabular orebodies.
Progress in 2023
During 2023, we made considerable
progress on the digitalisation of our
business – bringing digital technologies to
our mines to make them safer, to connect
our people and support their productivity.
Our digital strategy is based around
connecting what we can – our vehicles,
machinery, equipment and plants – to
our control systems to help us automate
processes and continuously monitor and
improve them.
We run a range of advanced automation
initiatives for the business:
Advanced Process Control (APC)
In 2023, we made significant progress
on our multi-year programme, delivering
on average three new ‘virtual controllers’
a week across our mines and plants. At
Quellaveco, where we have one of the
largest single site APC systems in the
world, we have added the automation of
the CPR plant and the new molybdenum
recovery plant.
45
Anglo American’s first fleet of 30
autonomous mining trucks is fully
operational at our Quellaveco copper
mine in Peru, where they are working
alongside six autonomous production drills
controlled from the Integrated Operations
Centre (IOC) some 20 km by road from
the mine. During 2023, control of the
autonomous truck system transitioned to
the operations centre.
APC allows us to tune the controllers using
historical data to provide predictive insights,
increasing the speed of the tuning process
and stabilising operations by mitigating
the impact of variability from individual
operator preference.
Digital twins
Over the past few years, we have
introduced digital twins that allow us to
comprehensively model many of our
plants. These twins allow us to produce
virtual copies of our major infrastructure
for the purpose of scenario analysis,
operator training and detailed virtual 3D
reconstructions of plant infrastructure
to improve operational maintenance
planning. Our twins are linked to our plant
control systems and maintenance planning
systems to support hazard reduction and
minimise plant downtime. These models
are also used to tweak and adjust variables
– at a fraction of the cost of making
changes on our installed infrastructure.
Machine learning
We leverage machine learning to harness
our data, including from a range of
geoscience sources, such as soil samples,
drill results and chemical assays.
Machine learning allows us to model
complex processes and we are using
this capability across the business. For
example, we are applying machine
learning to deliver a step-change in our drill
core interpretation practices using Assisted
Core Logging (ACL).
ACL uses advanced sensing, machine
robotics, the interconnectedness of
in-field equipment and the scalability
of cloud-based computing to improve
the efficiency of our drilling workflow,
augmenting expert knowledge with
machine learning. Geologists are now
able to search for similar textural patterns
across multiple cores and log numerous
zones simultaneously. This has reduced
the time it takes create a lithology log by
approximately 90%.
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Innovation
Our Sustainable
Mining Plan
Our Sustainable Mining Plan, integral to FutureSmart Mining™, is built
around our Critical Foundations and three Global Sustainability Pillars
and sets out our commitment to stretching goals – driving sustainability
outcomes through technology, digitalisation and our innovative
approach to sustainable economic development.
Environment
Social
Governance
Healthy Environment
Thriving Communities
Trusted Corporate Leader
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Climate change
2030: Reduce absolute Scope 1 and 2 GHG emissions by
30%, relative to the 2016 baseline; improve energy efficiency
by 30%; carbon neutral at 8 sites
2040: Carbon neutral at all operations; reduce Scope 3
emissions by 50%, relative to the 2020 baseline
Biodiversity
2030: Deliver net-positive impact (NPI) on biodiversity across
our managed operations
Water
2030: Reduce absolute withdrawal of fresh water by 50% in
water scarce areas, relative to the 2015 baseline
▶ For more information See pages 49–58
Health and well-being
2030: Relevant SDG3 targets for health to be achieved in our
host communities (operations to be halfway to target by 2025)
Education
2025: Host community schools to perform within top 30% of
state schools nationally
2030: Host community schools to perform within top 20% of
state schools nationally
Livelihoods
2025: Three jobs supported off site for every job on site
2030: Five jobs supported off site for every job on site
▶ For more information See pages 60–65
Accountability
2030: Establish open and accountable dialogue with host
communities and wider society, leading to greater mutual
trust and recognition of the benefits/challenges of mining
Policy advocacy
2030: Recognition of our leadership in policy advocacy.
Strong levels of engagement in policy debates
Ethical value chains
2025: All operations to undergo third-party audits against
responsible mine certification systems
▶ For more information See pages 90–101 of our
Sustainability Report 2023
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Collaborative Regional Development
Our innovative partnership model to catalyse independent, scalable and sustainable economic development
in regions around our operations – the objective being to improve lives by creating truly thriving communities
that endure and prosper well beyond the life of the mine.
▶ For more information See pages 61–62
Our Critical Foundations
These form the common and minimum requirements for each of our operations and our business as a whole.
The Critical Foundations are essential to the long term credibility and success of both the Sustainable Mining
Plan and our social licence to operate.
Zero
mindset
▶ For more information
See pages 66–70
Leadership
and culture
▶ For more information
See pages 70–75
Inclusion
and diversity
▶ For more information
See page 72
Human
rights
▶ For more information
See page 64
Group standards
and processes
▶ For more information
See page 50 of our
Sustainability Report 2023
Compliance with
legal requirements
▶ For more information
See page 48 of our
Sustainability Report 2023
Our Marketing business
Our Marketing business optimises the value
from our mineral assets and product offerings
for the benefit of all our stakeholders,
with a focus on shaping long term, direct
commercial relationships that place the
expectations of our customers firmly at the
centre of our approach.
Whether from our own mine portfolio or
sourced through complementary third-party
production, we offer a reliable supply of
essential resources to our customers and
the industries they support, which are key
to the development of a cleaner and more
connected future.
By understanding, addressing and
anticipating our customers’ specific needs,
and evolving our capabilities in the financial
and physical markets, we are taking an active
role in building customised solutions and
successfully bringing them to the industries
we serve.
Our approach in action
Across our activities, we harness the
potential of our diversified portfolio to
provide a commercial offering that responds
to customer requirements, is supported
by consistently high quality service, and
reflects society’s increasing expectations for
responsible production and sourcing.
Our trading activities have continued to
evolve, allowing us to use our scale and
market insight to help ensure security of
supply and mitigate risk. Through our third-
party sourcing framework, we can flex and
expand our supply capabilities, responding to
evolving industry demand while also helping
partners bring their resources to market and
extend their reach.
We endeavour to match our commitment to
reliable supply with robust assurance around
responsible production, prioritising ethical
decision making across our entire supply
Innovation
47
an at-a-glance view of key data – from
provenance and carbon emissions
intensity to safety and the social impact
of our operations.
Looking ahead
Paul Ward, executive head of base
metals marketing, comments: “We know
that in their purchasing decisions, our
customers value Anglo American’s
longstanding reputation as a leader in
sustainable mining, and our commitment
to responsible business practices.
Through driving greater transparency
across the entire production and
logistics chain, Valutrax™ allows our
customers direct access to indicators
that determine their compliance with
requirements in their specific industries
or jurisdictions, and to then make the
appropriate decisions in support of their
sustainability strategies and other value
drivers. Already, Valutrax™ is available to
customers purchasing Anglo American
ferronickel, copper concentrates and
iron ore mined products, with plans under
way to integrate mined products from our
other businesses.”
Product manager – digital and innovation,
marketing, Maya Sturm: adds “ What
started as a blockchain initiative has
become so much more than the
underlying technology. Valutrax™ has
required us, as a business, to be very
clear about our strategy with regard to
traceability and transparency. It sets the
foundation of what we want to do in this
space, which is to collaborate with our
customers and reinforce our commitment
to sustainable, responsible mining.”
ValutraxTM, developed by our Marketing Team, provides customers with a comprehensive picture
of a product’s origin and sustainability credentials.
Driving greater value chain
visibility
At Anglo American, our Sustainable
Mining Plan outlines our vision to be
part of a value chain that supports and
reinforces positive human rights and
sustainability outcomes.
With the ever-growing focus on
sustainability, customers want to feel
reassured by understanding the ethical
origins of the products they buy. That
is why Anglo American is a founding
member of the Initiative for Responsible
Mining Assurance (IRMA) and plays a
leading role in the Responsible Jewellery
Council (RJC), which bring together
a range of stakeholders to help provide
independent assurance around the
provenance of the metals and minerals
we mine and market. Taking this further,
our Group businesses have initiatives
of their own – such as Copper, PGMs,
Iron Ore, Nickel and De Beers aligning
with internationally recognised assurance
standards for the responsible sourcing,
production and refining of their products.
Valutrax™
In November 2023, Anglo American
launched Valutrax™, a digital traceability
platform developed by our Marketing
business, to drive greater transparency
across our value chain. Valutrax™ is
an easy-to use, single point of access
platform that is designed to provide
customers with relevant sustainability
data and policies about the metals and
minerals they buy from us.
How does it work?
Valutrax™ uses proven blockchain
technology to build a decentralised
system that is immutable and fully
auditable, and gives participating
customers access to a comprehensive
view of a product’s core information via
a user-friendly portal. A digital label can
be downloaded for each delivery, offering
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Innovation
chain. With reference to Anglo American’s
Responsible Sourcing Standard, we are
building a consistent and comprehensive
approach to sustainability screening, due
diligence and post-deal management of
sustainability risks and opportunities so that,
when buying Anglo American products,
our customers know that our processes are
underpinned and guided by our Values and
focus on Ethical Value Chains.
We also recognise the value of independent
assurance to verify these aspects of our
performance, against which we can test
our internal criteria for alignment with best
practice, as demonstrated by our goal to
have all our operations assessed against an
independent, globally recognised, third-
party mining standard by 2025. Our support
for the Initiative for Responsible Mining
Assurance (IRMA) and the Responsible
Jewellery Council (through De Beers) are
key examples of this approach in action. In
2023, our Minas-Rio iron ore and Barro Alto
nickel mines in Brazil were assessed against
IRMA’s comprehensive mining standard and
achieved the IRMA 75 level of performance –
the first iron ore and nickel mines in the world
to complete an IRMA audit. And in South
Africa, our Amandelbult and Mototolo PGM
mines scored IRMA 50 and 75 respectively,
following our Unki PGMs mine in Zimbabwe,
which also achieved IRMA 75 in 2021.
Work continues on developing digital
solutions that can help us trace the journey
of our products – part of our efforts to drive
visibility of the provenance and value chain,
of the metals and minerals we produce.
In 2023, we launched Valutrax™, our
proprietary digital traceability solution.
Built on blockchain, it provides a single
point of access to core information about
our products, helping to trace metals and
minerals from source to customers through
a tailored selection of key provenance and
sustainability indicators.
Collaborating across industry to
decarbonise our value chain
As part of the Group’s ambition to reduce
our Scope 3 emissions by 50% by 2040,
we are focusing on hard-to-abate sectors
such as steel – from which most of our value
chain emissions derive. We are working with
steelmakers in Europe and Asia to research
efficient feed materials – capitalising on the
premium physical and chemical qualities
of our minerals, including iron ore pellets
and lump iron ore. These premium products
are suited for use in the direct reduced iron
(DRI) process, a technically proven and
significantly less carbon intensive steel
production method. In 2023, we continued
building our network of collaboration with
steelmakers to include Sweden’s H2 Green
Steel, Singapore’s Meranti Steel and China’s
Baosteel.
We continue to make headway in our
roadmap to deliver on our ambition to
achieve carbon neutrality by 2040 for our
controlled ocean freight with the delivery and
launch of eight of our 10 dual-fuelled Ubuntu
dry bulk carriers. The fleet cuts emissions by
up to 35% when running on LNG, coupled
with advances in ship design and technology.
The final two vessels will be delivered in the
first quarter of 2024. The shipping team
continues to explore alternative fuels and
newer technologies that drive greater
efficiencies and safety onboard our vessels.
We have developed trading capabilities
which allow us to deliver carbon
compensation projects and offsets for
our customers, which can be packaged
together with our existing product and
service portfolio to meet our clients’ needs.
Finally, through focused investment, industry
collaborations and stakeholder engagement,
we are looking to unlock the potential of
technology development, materials science
and circularity to discover, accelerate and
scale-up climate positive innovations for long
term decarbonisation, with a focus on those
industry sectors which most contribute to our
Scope 3 emissions profile.
Making targeted interventions for new and
sustainable demand
We continue to nurture additional sources of
sustainable demand for our products, with
a focus on PGMs. Our integrated approach
includes advancing, financing and backing
new technologies, from the spark of an idea
through to commercialisation, to create and
sustain scale.
Beyond our wide-ranging, long-lasting focus
on developing the hydrogen economy – from
promoting the adoption of hydrogen-fuelled
solutions for the electrification of transport
to researching the use of hydrogen as a
reductant in steel production – our efforts
to capitalise on the unique qualities and
unparalleled versatility of PGMs continue
to grow in a variety of future-focused
applications. These include investing in the
development of palladium-containing lithium
battery technologies; support for the creation
of new materials and technologies, such as
alloys and 3D printing, to serve industries
ranging from jewellery to aerospace; and
programmes aimed at accelerating the
adoption of PGM-containing memory chips
to enable low energy consumption and high
performance computing.
Operating Model
We believe we can build a long term
sustainable competitive advantage by
securing access to the best resources
and through operating assets safely, more
effectively (productive), and more efficiently
(cost-competitive) than our competitors.
The Anglo American Operating Model is the
foundation that provides structure, stability
and predictability in the way that we plan
and execute every task. Planned work is
inherently safer and more cost-effective than
unplanned work. We have implemented the
Operating Model across all managed assets
and cemented a strong foundation for safe
and sustainable business performance.
We continue to build organisation
capability across the core disciplines of
operational planning, work management
and performance improvement, supported
by a comprehensive set of advanced
learning resources which enable all our
employees to understand, adopt and sustain
our Operating Model.
P101
P101 is our asset productivity programme
that builds on the stability provided by
our Operating Model. It improves the
performance of the most value-accretive
processes in our value chain to achieve
best-in-class benchmarks in terms of
safety, efficiency and productivity. Our
programmatic approach seeks to identify,
prioritise and ultimately eliminate operational
instability and system constraints that prevent
the realisation of full value from assets.
FutureSmart Mining™
FutureSmart Mining™ has systemic thinking
at its core – with the greatest value being
realised through multiple new technologies
working together. We envisage a much-
reduced environmental footprint from new
ways of mining, including by using a number
of precision mining technologies and data
analytics, while our collaborative approach
to regional economic development and our
ambitious global stretch goals, aimed at
delivering improvements to areas such as
health and education, are at the heart of how
we will create truly sustainable and thriving
communities.
We are working on a number of key initiatives
that show our FutureSmart Mining™
approach in action, including:
– Envusa Energy – our regional renewable
energy ecosystem in South Africa.
– Coarse Particle Recovery (CPR) – the
innovative flotation process, which permits
material to be ground to a larger particle
size, allowing the early rejection of coarse
waste and greater water recovery, has
enabled a 16% increase in copper
production without the need for additional
energy at El Soldado. Additional CPR units
have been installed at Quellaveco and
Mogalakwena, with further deployment
planned at other operations.
– Hydraulic Dewatered Stacking (HDS) – we
have successfully demonstrated HDS at
the El Soldado mine which, combined with
CPR, can help deliver significant water
savings and reduce the need for wet
tailings.
– SandLix™ – our novel heap leach process,
currently in development, allows heap
leach treatment of low-grade, complex
ores, including chalcopyrite. By optimising
particle size, temperature and chemistry
for each ore, highly permeable heaps are
formed and precisely controlled to achieve
high copper recoveries. The process has
roughly half the water and energy intensity
of flotation and smelting and produces
no wet tailings. The technology has been
proven at laboratory scale and the current
focus is on scale-up.
Climate change
Climate change is one of the defining
challenges of our time and our commitment
to being part of the solution to climate
change is embedded across the business.
We continue to align our portfolio with
the needs of a low carbon world; we are
transforming our operations towards
carbon neutrality; we are pushing for
decarbonisation along our value chains;
Innovation
and we are considering carefully the social
and wider environmental inter-relationships
associated with our decarbonisation journey.
Approach and policies
Mining’s critical enabling role in providing
the metals and minerals needed for a low
carbon world is increasingly recognised.
Against this backdrop, we know that
understanding the implications of climate
change for our business is imperative and
as such, we consider climate change to be
a principal risk. Being resilient as a company
however, is not enough. We also recognise
our responsibility to understand the impact
of our business, to minimise our footprint
and maximise the value we create for all our
stakeholders. Doing so is right for the long
term sustainability of our business and the
right thing for society.
Our aim is to increasingly entrench our
climate change strategy across the business.
Informed by robust analysis and constant
engagement with stakeholders, we continue
to work to align our asset and product
portfolio with the needs of a low carbon
world; we are re-orientating our operations
towards carbon neutrality – and doing so in
a value accretive way; we are pushing for
decarbonisation along our value chains;
and we are considering carefully the social
and wider environmental interrelationships
associated with our decarbonisation
journey – doing what we can to support
a Just Transition.
In 2015, we demonstrated our commitment
to the Paris Agreement through our signature
of the Paris Pledge for Action. That pledge
demonstrates our willingness to work to
support efforts in meeting and exceeding the
ambition of governments to keep the world
on a trajectory that limits the global warming
temperature rise to well below 2°C.
49
Governance
Anglo American applies a principled and
consistent approach throughout our climate
change governance and management
systems.
At Anglo American, the Board approves the
Group’s strategy on climate change. Climate-
related activities, including decarbonisation
plans are discussed by the Board throughout
the year as standalone agenda items and
as part of strategic discussions. The Board
is updated on progress against our targets
through management reports at each
scheduled Board meeting. The Board’s
Sustainability Committee is responsible for
addressing climate change-related topics.
The Committee oversees, on behalf of the
Board, material policies, processes and
strategies designed to manage safety, health,
environment, social and climate-related risks
and opportunities.
Matters relating to climate change are
included in quarterly reports to the Committee
at each of its meetings and as dedicated
items on its agendas throughout the year.
The chairman of the Sustainability Committee
provides a summary of the Committee’s
discussions at Board meetings, which
addresses the most material issues raised by
the Committee. Other non-executive directors
on the Board regularly attend meetings of the
Committee, at the invitation of the chair.
▶ For more information and the work of the Board and its
committees
See pages 139–177
Executive remuneration
For senior leaders, a proportion of their
variable pay each year is tied to the
delivery of climate-related goals. This
is predominantly incorporated into the
performance measures through the Group
Long Term Incentive Plan (LTIP). The LTIP
is awarded to our most senior leaders
across Anglo American, in total around
400 employees across our jurisdictions.
We have linked 20% of the 2023 LTIP to
environmental, social and governance
(ESG) measures, specifically the delivery
of our 2030 Sustainable Mining Plan goals.
This is broken down as follows: renewable
energy production from approved projects
(8% of award); all mines assured against a
recognised responsible mine certification
(6% of award); social responsibility measure
on the number of off site jobs we help
to create in the communities where we
operate (6% of award).
In addition to the measures as outlined
above for the 2023 LTIP, a portion of our
in-flight 2021 and 2022 LTIPs is also linked
to climate-related measures. For 2021,
this includes reducing our GHG emissions.
For 2022, it includes a renewable energy
production target, with three sites to have
approved renewable energy projects in
operation by the end of 2024.
▶ For more information on our executive remuneration
See pages 178–211
Assessing climate-related risks
The scientific evidence of human-induced
climate change is clear. However, the longer
term impacts to our business remain subject
to extreme uncertainty. As a consequence, our
risk management processes embed climate
change in the understanding, identification
and mitigation of risk. We have aligned
ourselves with the Task Force on Climate-
related Disclosures (TCFD) recommendations
on climate-related risks and we are
committed to disclosing in alignment with the
recommendations of the UK’s Transition Plan
Taskforce.
We assess risks to support the achievement
of our business objectives and consider
them against our risk appetite – the nature
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and extent of risk Anglo American is
willing to accept in relation to the pursuit
of our strategic objectives. We look at risk
appetite from the context of severity of the
consequences should the risk materialise,
likelihood of the risk materialising, any
relevant internal or external factors
influencing the risk and the status of
management actions to mitigate or control
the risk. If a risk exceeds our appetite, it will
threaten the achievement of objectives and
may require a change to strategy. Risks that
are approaching the limit of the Group’s risk
appetite may require management actions
to be accelerated or enhanced to ensure the
risks remain within acceptable levels.
The main physical climate-related risks that
have the potential to affect the continued
operation of our assets include the
availability of water, operating temperatures
and the exposure to extreme weather events.
In addition, the context within which the
business operates may change as the world
transitions to a lower carbon economy; this
could include access to finance or changes
in demand for our products.
Testing our resilience
While the exact future pathway is uncertain,
we expect climate change to affect
the mining industry through risks and
opportunities in two broad areas:
– Transition risks/opportunities: The
potential impact on demand for different
products, given assumptions on the
regulatory, technological and behavioural
changes in both the transition to a low
carbon economy (e.g. lower-carbon
power generation) and the mitigation of
the impact of climate change (e.g. carbon
capture and storage). Second-order
impacts to adapt to climate change are not
considered, such as measures to manage
temperature changes or rising sea levels.
Outlook for mining commodity profit pools (Indexed 2050 vs 5 year average (2019–2023))
Highly
positive
>3.0x(1)
Positive
2.0x
Neutral
1.0x
Negative
0.0x
Current levels
Copper
Nickel
Iron ore(2)
SMC(3)
PGMs
POLY4(4)
Diamonds
n Reference pathway, 2.5°C n 1.5°C
(1) Maximum impact shown is 3x, some products may see a greater impact (e.g. nickel and polyhalite).
(2) Global iron ore market.
(3) Seaborne steelmaking coal market.
(4) Early view on nascent market.
– Physical risks/opportunities: The potential
impact on our operations and surrounding
communities from both acute extreme
weather events and chronic shifts in climate
patterns and the required adaptations to
minimise these effects.
▶ For more on Anglo American’s principal risks, including
Climate change
See pages 79–85
▶ For our TCFD disclosures
See pages 132–137
Transition risks and opportunities in a
1.5°C scenario
To consider potential transition impacts
and inform our strategic choices, we
have used the Wood Mackenzie Energy
Transition Outlook (ETO) as the reference
case scenario, one that is expected to result
in 2.5°C warming. We contrast this with
the Wood Mackenzie Accelerated Energy
Transition (AET) scenario which limits an
increase in global warming to 1.5°C. Our
judgement is that these two scenarios cover
the appropriate range of outcomes within
which to assess the impacts of transition
risks. The Wood Mackenzie scenarios do
not, however, include agriculture, forestry
and other land use (AFOLU) developments
and emissions. To account for this, we
have supplemented the Wood Mackenzie
forecasts with various scenario outlooks
vetted by the IPCC for AFOLU.
▶ For more information on our climate scenario work
See our Climate Change Report 2023, Resilience to
transition impacts section
Low carbon transition risks and opportunities*
Innovation
51
AA impact and
impact timing
Description of impact
Commodity
Industry change
AA impact and
impact timing
Description of impact
An accelerated use of scrap steel would limit demand growth for
primary iron ore
PGMs
Increased demand for
catalytic converters
Commodity
Industry change
Iron ore
Increased collection
and use of scrap steel
Shift to direct reduced iron
(DRI)
Increased steel demand
Shift to low carbon direct reduced iron – electric arc furnace (DRI-
EAF) routes will rapidly grow demand for higher quality iron ore
pellet feed
Steel is critical in the construction of power generation facilities and
the grid, contributing to the growth in demand for iron ore
Steelmaking
coal
Increased collection
and use of scrap steel
An accelerated use of scrap steel would limit demand growth for
steelmaking coal
Copper
Maturing of carbon capture
and storage (CCS)
Shift to DRI
Lack of maturing of CCS
Increased steel demand
Growth in power
demand and increase
of renewables
Shift to electric vehicles
Lower energy intensity of
development
Reduced demand for
personal vehicles
Increased collection and
use of scrap copper
Nickel
Increased demand for
batteries
High-quality steelmaking coal will remain a key input into steel
production in the short to medium term and adoption of CCS/CCUS
could support demand in the long term
An emphasis on decarbonising steel supply chains could move
the production methods away from steel-using blast furnaces and
towards other methods
Limited development and deployment of CCS could accelerate the
shift to EAF and away from blast furnace iron
Steel is critical in the construction of power generation facilities and
the grid, contributing to the demand for steelmaking coal
Copper is a key material used in renewable power generation and
the necessary expansion of power grids
Copper is a key material for enabling increased electrification
across sectors including the shift from ICE vehicles to BEVs
As energy efficiency improves, energy intensity of development
decreases. This decreased energy intensity could have a negative
impact on copper demand, which is a central commodity in power
generation
Greater adoption of public transportation, ride sharing and other
mobility levers could limit demand for personal vehicles
A greater than expected improvement in scrap collection could
offset demand growth for primary copper
Nickel is widely used in lithium-ion batteries which are, in turn,
used in multiple carbon abatement technologies, including BEVs
and could provide a solution for energy storage in the context of
intermittent power generation
Shift to hydrogen economy
Growth in heavy-duty
FCEVs
Increased demand for
hybrid vehicles
Shift to battery electric
vehicles
Reduced demand for
personal vehicles
Polyhalite
Decreasing crop land
availability
Increasing efforts to
decrease emissions from
farming
Diamonds
Evolving consumer
preferences
With potential further tightening of air quality legislation, PGMs play
a crucial role in reducing pollution from ICE vehicles, through PGM-
containing catalytic converters. This is expected to be an interim
step towards more comprehensive transportation decarbonisation
As intermittent renewable power generation accounts for an
increasing share of power grids, hydrogen is a potential energy
storage solution. PGMs will play a major role across the upstream,
midstream and downstream segments of the hydrogen value
chain. PGMs are required upstream for polymer electrolyte
membrane (PEM) electrolysis; the synthesis, dehydrogenation
and cracking in the midstream; and the separation, purification and
compression downstream
As FCEVs become necessary to decarbonise heavy-duty vehicles,
demand for PGMs is expected to grow
Hybrid vehicles, which contain similar quantities of PGMs as ICE
vehicles, are expected to play a role in the decarbonisation of
vehicles, even in the longer term
An accelerated shift away from ICE vehicles towards BEVs poses
a downside risk for PGMs which are contained in ICE catalytic
converters and in FCEVs
Greater adoption of public transportation, ride sharing and other
mobility levers could limit demand for personal vehicles
As reforestation efforts grow, available land for crop development
will decrease, leading to an increase in fertiliser use to improve
crop yield
Polyhalite may also support efficient use of nitrogen fertilisers to
reduce excess nitrous oxide soil emissions, as well as reverse the
degradation of soil and the resultant carbon emissions. All else
being equal, the lower carbon nature of polyhalite may justify a
price premium over higher emission alternatives
Across scenarios, there is high uncertainty related to future
consumer behaviours and attitudes to diamond jewellery as well as
historical cyclicity in demand, although we expect carbon neutral
diamond producers, such as De Beers, to benefit from evolving
consumer preferences. However, these factors are not directly
influenced by the differences across the scenarios. Due to this, we
believe that the net impact on rough diamond demand is likely to
be immaterial across scenarios
Change to low or no nickel
batteries
Reduced demand for
personal vehicles
Maturing of battery
recycling
Uncertainty of battery chemistry outlook introduces downside
demand risk if low or no nickel battery cathode chemistries become
the preferred technological pathway
Key
Greater adoption of public transportation, ride sharing and other
mobility levers could limit demand for personal vehicles
As secondary battery supply reaches scale, demand growth for
primary nickel could slow
Risk
Opportunity
Short term = 0–5 years
Medium term = 5–15 years
Long term = 15+ years**
Short to medium
Short to long
Medium to long
Long
Neutral
* This table only includes risks we consider to be of sufficient magnitude to require monitoring.
** Long term time frame of 15+ years chosen to align to typical time frame for commodity supply
response to major demand shifts.
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The evolution of the industry sectors our
products serve could create risks and
opportunities for our portfolio. Similarly, the
technological developments that underpin
the transition of each sector could also
present risks and opportunities for our
products. For example, the speed and
technology mix of the transition towards low
carbon vehicles – specifically, the mix of BEVs,
FCEVs and hybrid vehicles – will impact
the outlook for the PGMs we produce. The
table on page 51 summarises the risks and
opportunities we have identified between
the reference case and the 1.5°C scenario
against which we have assessed our
resilience.
Resilience to a low carbon temperature
pathway
In assessing our resilience to alternative
climate scenarios, we pressure test
whether our strategy is robust and our
financial position resilient across those
climate scenarios. We consider a number
of dimensions and assess risks identified
against our internal risk appetite threshold.
We test resilience on a first-order effect basis,
meaning that we do not include any adaptive
measures we may take as we see indications
of industry shifts or the effects of megatrends.
This assessment therefore shows a ‘worst
case scenario’ test of our resilience because,
in reality, we would be able to shift the focus,
capital and effort of the business depending
on the nature of the transition risk.
Through this assessment, we have concluded
that our business is resilient in the 1.5°C
pathway. Our profit pools remain attractive
and our diversified portfolio allows us to make
changes and grow as needed as the world
transitions. We are committed to playing a
role in supporting, and our portfolio contains
several materials critical to, the transition to a
low carbon economy. Our balance sheet, free
cash flows and value of the business remain
robust – both at the 2050 scenario end-point
and throughout the transition period.
Across the two scenarios, we assessed
cash flow development through to 2050.
We expect our cash flow to remain resilient
under both the reference pathway and the
1.5°C pathway, while the range of cash flow
change across the scenarios falls within our
risk tolerance, giving us confidence in our
business resilience.
While we have assessed the strategic and
financial resilience of our portfolio under
1.5°C and 2.5°C scenarios, it should
be noted that these scenarios are not used
for financial reporting purposes as no single
scenario is representative of management’s
best estimate of the likely assumptions that
would be used by a market participant when
valuing the Group’s assets.
Physical risk – adapting to a changing
climate
Our global footprint means we operate in
places which are experiencing differing
effects of climate change. To understand
and monitor these risks and plan for any
necessary short, medium, and long term
adaptive measures, we have established a
robust Physical Climate Change Risk and
Resilience (PCCRR) framework. Our PCCRR
framework combines top-down climate
change projection models with bottom-up
assessments of the local vulnerabilities and
adaptive capacities to anticipate emerging
impacts. This builds upon and standardises
work undertaken previously at our sites
on physical climate risk, as detailed in our
2022 Climate Change Report. Our aim is to
ensure that the resilience of our operations,
communities and partners today continues
into the future.
Underpinning our process are robust,
science-based climate analytics.
Utilising multiple blended global climate
models, dynamically downscaled to our
operating sites, we obtain future climate
change projections across a broad set
of climate variables for our chosen future
scenarios.
Aligning the model’s outputs with the on-
the-ground reality, we also assess historical
weather data for each site, in addition to
any extreme weather events that may have
already occurred. In regions where previous
predictive climate change assessments
have been undertaken, we compare the
results with our own model outputs. To further
increase accuracy, where comprehensive
site-based weather data sets already exist,
we establish these as the baseline from
which we project the percentage change
over both the life of that facility and for 20
years beyond (or at maximum until 2100)
to include closure. We also seek to identify
the particular vulnerabilities and adaptive
capacities of the region and site, in order to
complete a holistic local context assessment.
Implementing our PCCRR framework
To facilitate the implementation of our
framework, we have split it into two phases.
Phase one is a high level risk screening using
the SSP5 (~4.4°C) scenario, to ensure that
we identify and prioritise all plausible risks.
The most significant risks identified proceed
through to phase two of the framework,
involving a secondary assessment to aid
understanding and quantification against
SSP2 (~2.7°C).
We model SSP1 (~1.8°C) as a best-case
scenario, although we believe that this
appears to be a low likelihood pathway.
As a result, we do not use this scenario in our
present planning.
Operational resilience
During 2023, our focus has been on
embedding adaptation and climate
resilience into our operations and processes.
By doing so, we are deepening our
understanding of the impacts of climate
change across our entire value chain,
helping us identify how best to prepare to be
more operationally resilient in response to a
changing climate. We rolled out our updated
PCCRR risk screening process at our Sishen
iron ore operation in South Africa and also
began implementing the framework at our
nickel and iron ore operations in Brazil. Our
intention is that all sites will complete phase
one of the updated process by the end of
2024 and phase two of the framework by the
end of 2025.
▶ For more on the key physical risks facing our assets
See page 53
Water and tailings risk
Most of our operations are in water scarce
regions – such as Chile and Peru; southern
Africa; and Australia. Yet operations in these
regions can also experience extreme
precipitation events – both our steelmaking
coal operations in Australia and Kumba’s iron
ore sites in South Africa have been exposed
to serious flooding in recent years, impacting
production.
Our initial work to determine physical
climate change risks at our sites confirmed
that water is the greatest risk factor at
most of our operations; there is likely to be
either too much or too little. In recognition,
we established the need for quantified
assessments of the impacts of climate
change on water balances and flood risk at
each site, to allow for a tailored approach to
climate change-related water management
across all operations. In 2023, we initiated an
update of asset water balances and flood
risk models with climate change projections,
starting with sites that have Very High
and Extreme Consequence Classification
Ratings, as defined by the Global Industry
Standard on Tailings Management (GISTM)
– 12 facilities across eight of our operations.
The findings have been incorporated into
our design basis and are part of all current
and future water management assessments.
Further information on our GISTM approach
and our results can be found on page 68 of
our 2023 Sustainability Report.
Community resilience
The impacts of climate change will also affect
the lives and livelihoods of host communities
around our operations. Our responsibility
is to support our operations with the tools
to understand how climate change could
affect vulnerabilities in host communities,
exacerbate or create new impacts and
present opportunities for us to proactively
support those closest to our operations
to adapt.
Driven through our existing Social
Performance management system – the
Social Way – we are integrating climate-
related social and community impacts into
individual site management approaches.
The inclusion of a community climate
vulnerability risk assessment considers
how host communities can build climate
resilience and adaptation measures and
how Anglo American and its partners
can support their development and
implementation. This includes refining our
approaches to social and human rights
risk and impact identification and analysis,
livelihood-based vulnerability assessments
using a sustainable-livelihoods model, and
building informed consultation through
stakeholder engagement.
Logistics
Part of our PCCRR process includes working
with our logistics partners to assess the
vulnerabilities of our logistics routes, which
are in some cases already facing climate-
related impacts. For example, the rail line
from our Sishen mine to the Saldanha port,
critical to our Kumba iron ore operations
in South Africa, is a bottleneck that continues
Innovation
Identified potential hazards in
2050: managed operations and key
greenfield projects
The following is based on a top-down
hazard assessment, conducted in 2023,
using climate hazard metric projections for
the SSP5–8.5 scenario in the year 2050.
We use this scenario to inform phase one of
our PCCRR process, to ensure we capture
all potential risks, i.e. the potential impacts
resulting from a particular hazard. These
risks are further studied in phase two against
the SSP2–4.5. scenario to ascertain risk
significance. We have full, detailed hazard
assessments for each of our assets across
all three SSP temperature scenarios detailed
above, in five-year increments from 2020
until the year 2100. Below is a simplification
of this data for reporting purposes.
53
Finland
Canada
UK
Peru
Brazil
Zimbabwe
Australia
Chile
South Africa
Physical hazard
Change in hazard
Extreme weather events
Increase in average annual precipitation
>15%
Extreme change
Water stress/drought
Wildfires
10% –15% Significant change
Extreme heat (days over 35°C)
Rise in average annual temperature
5%–10% Material change
Key physical climate change risks
across our operations
Through the PCCRR assessments conducted
to date, we have identified a range of
risks that are relevant across many of our
sites. Most of the risks arising are already
impacting our operations today, and
we recognise that over the next decades,
their likelihood and consequence will be
exacerbated by climate change. Through
the site level PCCRR work, we are improving
controls and implementing adaptation
actions to address these risks and continue
to strive for resilience in the context of a
changing climate.
Change in annual precipitation
– Change in availability of water
– Ecological impacts
Water stress/drought
– Disruption from lack of access to water for operations
– Impact on ecosystems and agriculture
– Reduced community access to water
– Compromised viability of vegetation on rehabilitation
– Challenges managing dust impacts
Extreme weather events
– Operational disruption from heavy winds, lightning,
heavy rains
– Inadequate design parameters on key infrastructure
(tailings, dams, water treatment etc)
– Rehabilitation stability impacted through intense
rains
– Delays at ports due to impacts on docking and
loading and offloading operations
Extreme heat
– Increased heat exposure leading to reduction in
workforce efficiency and increase in fatigue
– Exceeding equipment design criteria leading to
breakdowns and downtime
– Increase in energy consumption for ventilation
and cooling
– Impact on railways (rail buckling)
Rise in average annual temperature
– Impact on ecosystems, ecological shifts
– Potential spread of pests/diseases to wider ranges
Wildfires
– Safety and health risks
– Impact on biodiversity and communities
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to cause disruptions. Analysis of our internal
data on the current causes indicates
that over the period 2020–2022, 21%
of the disruptions on the Sishen-Saldanha rail
were weather related. The projected increase
in extreme weather across South Africa will
further increase the pressure on this railway,
potentially increasing the rate of wash-
aways, derailments and traffic stoppages
due to extreme temperatures and excessive
rainfall. Engagement with Transnet, the entity
managing the railway, has therefore been
initiated to explore the climate resilience of
the railway.
A strategy to deliver a future-enabling
portfolio
The evolution of Anglo American’s portfolio is
guided by our strategy. Specific choices with
respect to our portfolio are governed by a set
of strategic principles. These principles also
inform our capital allocation and investment
appraisal processes, ensuring consistency
of strategic decision making across the
Group, and embedding climate-related
considerations at all stages.
In addition to these principles, we also
assess the alignment with and resilience of
our portfolio and opportunities to a range
of long term trends including, critically, the
implications of climate change. We explore
how the world might develop under a
range of climate change pathways and the
potential outcomes for mining profit pools
and for our business.
Our portfolio comprises future-enabling
products that support the transition to a
cleaner, greener, more sustainable world and
that cater to demand trends of a growing
global population. Our growth capital
expenditure is earmarked for projects in
key future-enabling metals and minerals,
including copper, polyhalite and high quality
iron ore.
Allocating capital to achieve our targets
Anglo American’s Purpose to re-imagine
mining to improve people’s lives is brought
to life in the composition of our portfolio,
supplying materials that enable a more
sustainable, lower carbon future and the
demand to improve living standards and
nutrition for a growing global population.
We draw on multiple sources to judge the
contribution that individual assets would
make to the portfolio under different climate
scenarios and, amongst other things, this
informs the way that we allocate capital. As a
result, the mix of our portfolio is predominantly
towards future-enabling metals and minerals.
More than 90% of our growth capital
expenditure is allocated to projects in these
future-enabling products.
Ensuring the continued resilience of our
portfolio to the physical impacts of a
changing climate is also a key priority
in our allocation of capital. Investments
in maintaining this resilience are driven
by our continuing climate change risk
management processes and, for example,
include investments related to reducing
the consumption of fresh water where it is
expected to become scarcer, or where there
is a risk of future disruption owing to flooding.
These investments are subject to the Group’s
robust investment evaluation criteria and to
technical and financial assurance.
Carbon pricing
Our major investments take into account the
potential future cost of carbon by embedding
forward-looking carbon price assumptions,
which are developed in conjunction
with leading external providers and are
differentiated by geography and time horizon,
into our multi-faceted investment decision
making considerations. The aim is to reflect
our best estimate of the level of carbon
pricing likely to prevail in the respective
jurisdictions over time. We forecast carbon
prices to be between $20 and $95 per tonne
on a 2023 real basis across regions by 2030.
This approach ensures that project returns
are evaluated on a realistic basis alongside
consideration of a project’s impact on carbon
abatement and portfolio resilience to the
effects of climate change.
Accounting judgements and estimates
Climate change potentially impacts a
number of the judgements and estimates
made when preparing the Group’s financial
statements. Potential impacts arise in three
principal areas: physical risk such as extreme
weather events; transition risk as demand
shifts between products; and the Group’s
climate ambitions, as the financial impact
(both risks and opportunities) of climate
targets is reflected in operational decisions
and cost structures.
The estimation of recoverable amount for
the Group’s non-current assets is currently
the only judgement or estimate which is
materially impacted by climate change.
Further information about this estimate,
together with additional information in other
areas which may be impacted in the medium
to long term, can be found on pages 234–
236 of this report.
▶ For more information on how we allocate capital
See pages 76– 78
Our pathway to operational carbon
neutrality by 2040
Achieving our target of carbon neutrality(7)
across our operations is a complex, multi-
dimensional challenge. It begins from a
clear and detailed understanding of current
emissions sources. This understanding
allows us to take decisions on the best
means of abatement. The target of a 30%
reduction in Scope 1 and 2 GHG emissions
by 2030 is an interim target on our journey to
carbon neutrality.
Progress in 2023
In 2023, our total Scope 1 and 2 emissions
decreased by 6% to 12.5 Mt CO2e (2023:
7.5 Mt CO2e and 5.0 Mt CO2e respectively,
2022: 8.3 Mt CO2e and 5.0 Mt CO2e
respectively). This equates to a 7% reduction
compared with the 2016 baseline on which
our 2030 target is set. The emissions intensity
of our production (Scopes 1 and 2) reduced
by 4% compared with 2022 (2023: 5.8 t
CO2e/t CuEq and 6.1 t CO2e/t CuEq).
Compared with 2019, when our emissions
peaked, we have delivered a 26% reduction
in our total Scope 1 and 2 emissions (2019:
16.8 Mt CO2e) and a19% reduction in our
emissions intensity.
Improvements in the management of
methane in our steelmaking coal business
have made the largest contribution to this
reduction in emissions. Completing the
roll-out of renewable energy in South
America in 2023 was also a significant
milestone. Nevertheless, the associated
Scope 2 emissions reductions were offset
by an increase in electricity consumption
in South Africa, as a result of restarting a
number of processing plants initially shut
down in 2022.
Progress to 2030
Scope 1 – methane
Methane emitted from our Australian
steelmaking coal operations makes up the
largest component of the Group’s Scope
1 emissions. In 2023, we reduced our
methane emissions by 19% to 3.8 Mt CO2e
(2022: 4.7 Mt CO2e).
We have two predominant categories of
methane emissions: rich gas, which we
capture and use for power generation
and ventilation air methane (VAM). As we
mine deeper, we are producing more gas,
including both rich gas and VAM.
The reduction seen in 2023 has been
achieved primarily through improved
operational practices aiming to eliminate
venting of rich gas by leveraging improved
infrastructure. This has also allowed us to
increase further the beneficial use of gas with
third parties. Our aim is to eliminate methane
venting from our operations, while safe to
do so.
We have invested significantly, c.$100 million
per annum, in methane pre-drainage
infrastructure at our underground
steelmaking coal operations. In 2023, across
these operations, we abated approximately
60% of methane emissions, including
5.3 Mt CO2e emissions through the capture
and delivery of methane to gas-fired power
stations with our partner and third-party
operator, EDL. These power stations have an
electricity generation capacity of 145 MW –
enough to power more than 100,000 homes
in Queensland each year.
The remaining 40% of methane emissions
are principally in the form of lower
concentration VAM. The lower concentrations
make it more difficult to capture and use
safely than rich gas. Through concept studies,
we are increasing our levels of confidence of
how we can manage these emissions in an
economic, safe, and technologically viable
way. A frontrunning technology is the use of
regenerative thermal oxidation (RTO), which
has now progressed to the pre-feasibility
stage. RTO is an air pollution control process
that destroys hazardous air pollutants, volatile
organic compounds and odorous emissions
created through industrial processes. A key
feature of the process is regenerative heat
recovery, which makes the system extremely
fuel efficient.
▶ For more on how we are capturing methane at our
steelmaking coal operations
See page 56
Innovation
Scope 1 – energy efficiency
Our electrification programme and the
transition away from fossil fuels will contribute
to the energy efficiency of our operations.
The technologies we deploy through our
FutureSmart Mining™ programme and our
continued focus on improving operational
and production efficiencies are reducing
energy demand and costs and helping us
avoid GHG emissions. These technologies,
underpinned by our energy and CO2
management (ECO2MAN) programme,
are pivotal to ensuring continuous energy
management and optimisation at our sites.
In 2023, our energy consumption increased
by 7% to 89.0 m GJ (2022: 83.3 m GJ). This
increase was driven mainly by the ramp-
up of our Quellaveco operation towards
full production, anticipated as part of our
updated trajectory, which was supplied by
100% renewable energy sources.
Scope 2 – powered by renewables
In 2023, we sourced 53% of our electricity
supply from renewable sources. We are
committed to working towards decarbonising
the balance of our electricity supply via the
use of power purchase agreements and
self-developed generation at site.
With our Quellaveco operation in Peru
reaching 100% renewable energy through
its supply partnership with Engie in April
2023, all our South American operations
(Brazil, Chile and Peru) are now powered by
100% renewable electricity. Building on this
progress, as announced last year, we have
secured 100% renewable supply to meet all
our electricity needs in Australia from 2025.
Partnering with the Queensland government-
owned provider of electricity and energy
solutions, Stanwell Corporation, we will
effectively remove all Scope 2 emissions from
our Steelmaking Coal business. This new
55
agreement brings significant environmental
benefits and is net present value (NPV)
positive compared with our current energy
mix, while underwriting a large investment in
650 MW renewable energy generation for
Queensland, materially impacting emissions
in the region.
Climate change performance
Scope 1 emissions 2023
7.5Mt CO2e
(2022: 8.3 Mt CO2e)
This means that from 2025, we expect
to be drawing approximately 60% of
our global electricity requirements from
renewable sources, transforming our Scope 2
emissions profile.
Scope 2 emissions 2023
5.0 Mt CO2e
(2022: 5.0 Mt CO2e)
In October 2022, Anglo American formalised
a partnership with EDF Renewables
(EDFR) to form a jointly owned company,
Envusa Energy. Envusa Energy is expected
to develop a regional renewable energy
ecosystem in South Africa with the aim
of meeting 100% of Anglo American’s
operational power requirements, with excess
electricity aimed to be supplied to the grid to
add capacity.
Scope 3 emissions 2023*
96 Mt CO2e
(2022: 105 Mt CO2e)
Anglo American GHG emissions 2023
Scope 1 (Mt CO2e)
Scope 2 (Mt CO2e)
● CO2e from fugitive emissions from coal mining
● CO2e from methane flaring
● CO2e from processes
● CO2e from fossil fuel consumption
● Australia
● South Africa
● Other
* Scope 3 emissions include each of the 15 categories included in the Greenhouse Gas Protocol’s methodology.
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Innovation
Envusa Energy has made significant progress
in the delivery of its mature pipeline of more
than 600 MW of solar and wind power to
our operations. Financial close on the three
projects that form the Koruson 2 project
on the border of the Northern and Eastern
Cape provinces in South Africa is expected
in the first quarter of 2024. Once operational,
Koruson 2 aims to supply 520 MW of
renewable power (240 MW of solar and two
140 MW wind projects) to our operations,
displacing 12% of our global Scope 2
emissions, approximately 1.5 Mt CO2e.
Anglo American’s businesses with
operations in South Africa (Anglo American
Platinum, Kumba Iron Ore, and De Beers)
have committed to 20-year electricity
offtake agreements with Envusa Energy.
These agreements will see Anglo American
Platinum receiving 461 MW of supply,
Kumba’s Kolomela mine 11 MW, and
De Beers’ Venetia mine 48 MW. All projects
are to reach commercial operation
during 2026.
On-site solar projects at both our Sishen
(65 MW) and Unki (35 MW) operations are
also progressing, targeting the end of 2024/
early 2025 to commence construction, with
a mature pipeline of additional projects
following shortly thereafter.
In 2023 Envusa Energy was also granted a
licence to trade electricity in South Africa.
Progress to 2040
Transitioning from diesel consumption is
a notable challenge; we have therefore,
prepared a technology development
roadmap, including hydrogen, battery
and other forms of diesel fuel alternatives.
Working in conjunction with First Mode, as
announced in 2022, we are developing
multiple pathways to deliver operational
decarbonisation, comparing technologies
across different time horizons. We remain
A frontrunner is our engineering study
using regenerative thermal oxidation
(RTO), which has now progressed to the
pre-feasibility stage. RTO is an air pollution
control process that destroys hazardous
air pollutants, volatile organic compounds
and odorous emissions created during
industrial processes. A key feature of the
process is regenerative heat recovery,
which makes the system extremely fuel
efficient.
We are also partnering with Low Emission
Technology Australia to study possible
solutions for VAM abatement as well
as actively participating in several
industry methane management forums
and supporting the UN Environmental
Programme’s International Methane
Emissions Observatory measurement
trials through 2023.
Steelmaking coal – stronger for longer
CEO of our Steelmaking Coal business,
Daniel van der Westhuizen, comments:
“Methane emissions represent the largest
component of Anglo American’s Scope
1 emissions, and how successful we
are in methane mitigation will be crucial
to meeting our goal of reducing our
Scope 1 and 2 GHG emissions by 30%
by 2030. This process must be ongoing
because even in low-carbon pathways,
steelmaking coal is likely to remain a key
input into steel until at least the 2040s.”
Gas plant at Grosvenor. Around 60% of the methane gas from our underground coal mines is captured,
and then supplied to Queensland’s electricity grid.
Capturing and recycling methane
Coal mining everywhere creates methane
emissions. Methane is produced during
the coal mining process when the
gas, which is trapped in coal seams,
is released. At our Steelmaking Coal
operations in Queensland, Australia, we
encounter two predominant sources
of methane emissions: rich gas, which
we seek to capture and use for power
generation, and ventilation air methane
(VAM). Given the limits of current
technology, however, the low methane
concentrations in VAM cannot currently
be captured for beneficial use.
As part of our constant endeavour to
improve safety, Anglo American since
2006 has been capturing methane,
a greenhouse gas (GHG) some 80
times more potent than carbon dioxide
(CO2) over a 20-year period. Methane is
being captured at Moranbah, Grosvenor
and Capcoal mines’ underground
coal seams through a series of shafts
and pipeline networks. The methane-
capture infrastructure, which includes
third-party-owned power stations on
our sites, captures around 60% of the
methane produced, which is supplied to
power generators for the production of
electricity for the grid, powering 100,000
Queensland homes. This reduces
emissions by around 5.3 Mt CO2e per year.
Ventilation air methane (VAM)
abatement
Initial concept studies have been
undertaken to identify the best
approaches to VAM abatement
and methane emission reduction.
Innovation
57
technology agnostic in our drive to evolve
and transform our operations. We are
also looking at options to transition mining
underground in various operating regions
and are developing electrified, lower impact
equipment and mining methods to help
deliver sustainable and profitable operations.
Our approach to emissions reduction has
always been guided by the mitigation
hierarchy: Avoid – Reduce – Substitute –
Sequester – Inset – Offset. In anticipation of
the fact that we do not yet see a pathway
to absolute zero for our Scope 1 and 2
emissions, we are working to address our
harder-to-abate residual emissions in line
with this hierarchy, while permanent solutions
are sought.
▶ For more on our carbon abatement projects
See pages 33–37 of our Climate Change Report 2023
Scope 3 – our commitment to decarbonising
our value chains
Anglo American remains committed to
working across value chains to reduce
emissions. We have set an ambition to reduce
our Scope 3 emissions by 50% by 2040, on
an absolute basis, against a 2020 baseline.
Each year we improve our understanding of
how decarbonisation can be achieved across
our value chains and the role we can play in
supporting this.
In 2023, our Scope 3 emissions reduced
by 8% compared with 2022 (2023:
95.8 Mt CO2e; 2022: 104.5 Mt CO2e; 2021:
98.5 Mt CO2e). This equates to a reduction
of 17%, compared with our 2020 baseline.
No changes were made to our Scope 3
methodology when calculating our emissions
for 2022 and 2023.
We continue to make progress in reducing
emissions from our primary source of Scope
3. The processing of our iron ore remains the
largest contributor to our emissions profile,
with category 10 emissions from steelmaking
accounting for 50.9 Mt CO2e, or 47% of total
emissions, in 2023 (2022: 47.8 Mt CO2e and
54% of total emissions; 2021: 47.2 Mt CO2e
and 52% of total). The emissions intensity of
our iron ore* has fallen by 5% in 2023 versus
the 2020 baseline.
adoption of less carbon intensive production
technologies, such as in the DRI and electric
arc furnace (EAF), using Anglo American’s
premium quality iron ore products from
Kumba Iron Ore’s mines in South Africa and
Minas-Rio in Brazil.
To deliver on our ambition of reducing
Scope 3 emissions by 50% by 2040, we are
focused on collaborating with our highest
emitting customers and supplier partners to
work towards a common goal of emissions
reduction through efficiency savings and
technological advancements.
Steel is a critical foundational material for
almost all infrastructure and will provide
the backbone of the low carbon economy
and wider, long term socio-economic
development. In 2023, an estimated
1.9 billion tonnes of crude steel were
produced globally.
Despite increased interest in the use of
recycled steel in the industry, c.70% of steel
production is dependent on primary iron
ore supplies. This is expected to remain at
around 60% out to 2050. The steel industry
is continuing to develop and grow new
technologies to provide lower carbon
steel and iron. This includes the use of
more efficient processing, natural gas and
hydrogen fuelled DRI, which are reliant on
high-quality iron ore feed. We are growing
our share of high-quality pellet feed and
premium lump ore to support the scaling of
these technologies and lower emissions from
the steelmaking industry.
In 2023, we agreed several MoUs with
our customers, including H2 Green Steel,
Meranti Green Steel and Baosteel, with a
focus on reducing emissions within the steel
value chain. These new MoUs join ongoing
MoUs with counterparties including Nippon
Steel, Salzgitter, and Thyssenkrupp. The
collaborations focus on accelerating the
Our activities with suppliers and our
operations contributed approximately 5%
of Anglo American’s Scope 3 footprint
in 2023, predominantly through the
procurement of mining equipment, services
and capital goods.
We have set an ambition to achieve carbon
neutrality across our controlled ocean freight
activities by 2040, with an interim 30%
reduction in emissions by 2030. Emissions
reductions up to 2030 will largely come
from existing or emerging technology. We
anticipate a large proportion of the reductions
will come from existing alternative fuels, such
as LNG and biofuels, with the rest coming
from energy-saving devices and commercial
optimisation strategies, wherever applicable.
▶ For more on how we are decarbonising our
shipping fleet
See pages 36–37 of our Climate Change
Report 2023
Protecting our natural environment
Protecting our natural environment is
material to us and is increasingly expected
by our stakeholders and society. As
custodians of the land and ecosystems
around our operations, we seek to improve
the footprint of our operations and direct
our efforts towards delivering positive
and lasting environmental outcomes for
host communities and our wide range
of stakeholders. Our environmental work
involves protecting the biodiversity of areas
in which we operate, accounting for and
optimising our water use, supporting the
circular economy throughout the value chain
and across our business, and addressing
quality of the air around our operations.
Our approach and policies
Our approach to the environment is a
blend of helping nature by protecting and
restoring it, while simultaneously investing
in innovative technology and nature-based
solutions to mitigate impacts, develop a
circular economy, drive sustainable value
chains and create an enabling policy
environment to address challenges and
unlock opportunities.
Our Sustainable Mining Plan outlines our
strategic approach to sustainability and
upholds our commitment to being stewards
of the natural environment in which we
operate.
In particular, the Sustainable Mining Plan
focuses on a mindset of causing zero harm
to the environment and delivering a net
positive impact (NPI) for biodiversity and,
at the same time, a lasting positive legacy
for society. We also look beyond what we
can achieve alone, collaborating globally
with a diverse range of partners to develop
and implement sophisticated solutions
that support our sustainability goals. We
believe that delivering positive outcomes
for the environment in turn delivers positive
outcomes for people and our business. This
is consistent not only with our Purpose and
our Sustainable Mining Plan, but also with
the UN SDGs and Kunming-Montreal Global
Biodiversity Framework.
Our approach is to prioritise the environment
throughout the lifespan of our operations. We
look at the entire ecosystem to understand
the intertwining relationships of people,
nature, climate, air, water, land and the
economy.
Aligned with our Purpose, Values, and
internationally recognised safety, health and
environmental standards (ISO 45001 and
14001), our Safety, Health and Environmental
* Intensity based on dry metric tonnes sold.
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Innovation
(SHE) Policy embodies three guiding
principles: zero mindset; no repeats; and non-
negotiable minimum standards. Our SHE
Way V.2 is the tool we use to manage and
improve performance across safety, health
and the environment.
We classify environmental incidents on five
levels, according to their impact. Our chief
executive reports all Level 3–5 incidents (from
moderate to significant) to the Board, which
discusses them through its Sustainability
Committee.
▶ For more information on the SHE Policy
Visit angloamerican.com/policies-and-data
Governance
The Board’s Sustainability Committee
has oversight of the Group’s nature and
biodiversity related programmes of work
and is updated on a pre-planned schedule
and, as needed, on progress against those
programmes and delivery of targets.
Progress against the Group’s biodiversity
management programmes is included in the
chief executive’s scorecard on a quarterly
basis.
The chief executive’s scorecard offers a
succinct, yet comprehensive view of our
business performance closely aligned with
Anglo American Operating Model principles.
It is a management tool used by the chief
executive to track business performance
through a focused set of financial and
non-financial measurements. Each business,
asset and function are also responsible to set
their own scorecard aligned with the Group
scorecard and report against performance
on a quarterly basis to the Executive
Leadership Team. The Group scorecard is
shared with the Board and performance
against sustainability metrics shared with the
Sustainability Committee of the Board.
Land rehabilitation (reshaping and seeding
completed) performance is embedded in
our executive remuneration arrangements
and is reflected in executive director bonus
payouts. This metric is also subject to external
assurance as part of the year end reporting
process.
Performance
In 2023, our managed operations completed
905 hectares of rehabilitation out of a
planned 1,124 hectares. The completion
target was missed due to inclement weather
and difficulty in sourcing sufficient seed
resources.
In 2023, we saw no Level 3 and above
environmental incidents. We were also not
issued with any material environment-related
fines.
Water
Mining remains a water-intensive industry
and we anticipate global water supplies to
remain stressed amid the ongoing impact
of climate change and variability, with
increasing extreme weather events. To
address these challenges, we have made
water stewardship an integral part of how
we operate across all our sites, including
our target of a 50% reduction in fresh water
withdrawals in water scarce areas by 2030,
relative to the 2015 baseline.
Approach and policies
Our approach to water management is
embedded in our business plans and aligned
with the Social Way, which recognises
that access to water is a priority for our
stakeholders. We are guided in our work
by our Group Water Policy and the Group
Water Management Standard. The standard
incorporates water issues into the lifecycle
of any project, from site selection and early
studies, through design to operation, closure
and post-closure.
In Limpopo province, South Africa, a water pipe undergoes inspection at the south concentrator plant at
our Mogalakwena PGMs mine, which regularly experiences prolonged periods of drought.
Governance
The Board’s Sustainability Committee has
oversight of the Group’s water-related
programmes of work and is updated on a
pre-planned schedule and, as needed, on
progress against those programmes and
delivery of targets. Progress against our
water targets is also included in the chief
executive’s quarterly scorecard.
Fresh water withdrawal data is subject to
external assurance as part of the year end
reporting process.
Performance
Our fresh water withdrawals (for target
sites) increased by 6% to 38,040 megalitres
(ML) (2022: 35,910 ML), reflecting a rise in
dewatering required for mining to progress
into new areas at our Kolomela iron ore mine
in South Africa, increased water demands
due to higher operational requirements for
the underground operations at Moranbah-
Grosvenor steelmaking coal mine in Australia,
and higher precipitation at Los Bronces
copper mine in Chile. Such annual variability
is expected until such time as major fresh
water savings and replacement projects are
completed.
Mineral residue management
The management and storage of waste
rock and processed mineral residue
remains a critical issue for the global mining
industry. Mineral residue management
presents us with social, safety and
environmental challenges throughout the
lifecycle of our mining operations and, as
such, we welcome the introduction of the
comprehensive Global Industry Standard on
Tailings Management (GISTM). In 2023, we
made significant progress towards bringing
our 12 tailings storage facilities (TSFs) that
are currently within the two highest potential
consequence categories into conformance
with the GISTM, while also working to develop
and implement technological solutions
– including enhanced and standardised
control systems – across our operations.
Our approach and policies
Our Group Mineral Residue Facilities and
Water Management Structures Standard and
Policy address the risks of both processed
mineral residue and water management
facilities, as well as waste rock dumps. The
standard sets out requirements for design,
monitoring, inspection and surveillance of our
processed mineral residue facilities, which we
follow as a minimum requirement practice
in each jurisdiction where we operate. It is
aligned with current best practice, including
the requirements of the GISTM where
applicable.
As a member of the ICMM, Anglo American
has adopted the ICMM Conformance
Protocols that enable progress towards
conformance with the GISTM to be assessed.
We make available publicly our Processed
Mineral Residue Facilities and Water
Management Structures Standard, and Policy,
which have been approved by the Board and
include all the technical requirements of the
GISTM.
▶ To view the full standard and policy
Visit angloamerican.com/esg-policies-and-data/
download-centre
Innovation
Governance
To ensure proper management and oversight
of our TSFs, we seek to build in additional
lines of internal and external operational
support and assurance.
As part of our GISTM implementation,
Anglo American requires the appointment of
an accountable executive who is responsible
for safety and emergency management at
each TSF. An accountable executive has
been appointed at all managed operations
and the majority of our non-managed
operations.
The GISTM also requires the appointment
at each TSF of an internal engineer to be
the competent person responsible for the
integrity of a facility, known as the responsible
tailings facility engineer (RTFE); and an
external engineer, known as the engineer of
record (EoR), which entails the engagement
of a specialist engineering firm. All of our TSFs
with a consequence rating of ‘major’ have an
RTFE and EoR in place.
In addition, the GISTM requires an
independent tailings review board (ITRB) to
be in place for additional oversight. All major
TSFs have appointed an ITRB.
Our Risk, Assurance and Governance
Policy implements a model based on the
‘three lines of defence model’: the first line
comprises of the accountable executive,
RTFE and EoR, who own and manage the
risk. The second is an internal corporate
team, which provides expertise and support,
and challenges the assumptions of the
first line. Conformance with the standard
and associated technical specifications is
approved by the accountable executive,
then verified and reported to the technical &
operations director, the chief executive, and
the Board and Sustainability Committee.
An independent third line is provided
by Anglo American’s internal audit
59
Mogalakwena PGMs mine in South Africa is piloting the first brownfield application of hydraulic
dewatered stacking (HDS) tailings at Anglo American.
function, which could include external and
independent consultants based on the
objectives of the audit. Findings are reported
to the Board’s Audit Committee.
We have made very significant progress
towards conformance with the GISTM over
the past three years, building upon our
already high technical standards.
▶ For more information and disclosure
Visit angloamerican.com/tailings
Performance
Anglo American played an active role in the
multi-stakeholder process of developing the
GISTM, which covers standards and practices
over the entire tailings facility lifecycle and
sets a high bar for the mining industry to
achieve strong social, environmental and
technical outcomes. The GISTM is intended
to be applied to existing and future tailings
facilities, wherever they are found, and to
whomever operates them.
We are continuing to work towards full
conformance with the requirements of the
GISTM, as well as the social and community
aspects that are already encompassed in our
comprehensive Social Way management
system. As set out in our 2023 GISTM
disclosure, we are addressing the few
outstanding areas for the tailings facilities
with Very High and Extreme Consequence
Classification Ratings, and have set out the
work needed to get us there.
▶ To view our Tailings database
Visit angloamerican.com/esg-policies-and-data/
tailings-summary/tailings-database
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Innovation
Playing our role in society
As a global business, we see it as our role to
make a positive contribution to society. We
are continuing to implement our industry-
leading social performance management
system for the global extractive sector, the
Anglo American Social Way. It represents
a comprehensive and innovative approach to
how we interact with host communities that
prioritises respect and mutual benefit for all
stakeholders.
Through our Collaborative Regional
Development (CRD) approach, we work
to catalyse independent, scalable and
sustainable economic development in
regions around our operations to support
our Sustainable Mining Plan commitments.
We also transparently and continuously
engage stakeholders to collaboratively find
solutions to the most pressing issues of our
time. We set our standards high, embedding
them into our Code of Conduct. We also
have high expectations of our suppliers, and
provide guidance and support to emerging
companies to meet those expectations,
ensuring we address sustainability matters
throughout the entire value chain.
Engaging with local communities
Engaging with local communities plays a
pivotal role throughout the lifecycle of a
mine, from exploration through to project
development, the production phase and
finally mine closure.
By understanding community concerns
and actively involving residents, indigenous
groups and other local stakeholders in
decision making processes, we identify the
best ways to share the benefits of mining with
the communities that host our operations.
Our approach and policies
The Social Way provides a social
performance management framework
for all Anglo American-managed sites, at
all phases of development. Aligned with
our Purpose and our strategic business
objectives, the Social Way embeds
international standards and best practice
and sets out clear minimum requirements to:
– Engage with affected and interested
stakeholders
– Avoid, prevent, and, where appropriate,
mitigate and remediate adverse social
impacts
– Maximise development opportunities.
The Social Way emphasises the integration of
social performance into our core operational
planning and processes, including our
Operating Model and Sustainable Mining
Plan. The Social Way Management System
is one of the main vehicles through which we
are working to achieve some of our ambitious
Sustainable Mining Plan commitments. We
have made the Social Way publicly available
for other companies to use, and, just as
importantly, so stakeholders know what our
standards are and what they can expect of us.
Our Sustainable Mining Plan site-level local
accountability goal has been incorporated
into our Social Way stakeholder engagement
requirements.
Governance
Progress against the Group’s implementation
of the Social Way, including local
accountability strategies and mechanisms,
is included in the chief executive’s scorecard
on a quarterly basis and is reviewed by the
Board’s Sustainability Committee at least
annually. Incidents with social consequences
are also reported to the chief executive and
Sustainability Committee.
The Social Way requires an integrated
and cross-disciplinary approach to the
management of social performance at
site level.
Performance
Due to internal organisational change and
the resultant need to respond to an internal
assurance efficiency review, our 2023 Social
Way assurance programme was completed
via self-assessment, rather than third-party
review. The site level self-assessments were
supported by a verification exercise with
the relevant members of the business and
Group Social Impact team to stress-test the
results and gaps, and support improvement
planning. Data from this exercise shows
that 73% of Social Way requirements had
been implemented across relevant sites.
Although sites are assessed annually against
all requirements applicable to their context,
for consistency during the transition period,
this metric reflects performance against the
Social Way foundational requirements.
Grievances and incidents
We define a grievance as a complaint
from an external stakeholder relating to the
site, its policies, activities, real or perceived
impacts, or the behaviour of its employees or
contractors. Grievances are an expression of
dissatisfaction with the company on the part
of stakeholders.
Incidents with social consequences are the
unwanted events related to site activities
that have an adverse impact on the health
and safety, economic welfare, personal and
political security and/or cultural heritage
of stakeholders. An incident with social
consequences may arise from a site’s
technical failure or accident, or a failure to
anticipate, prevent or mitigate an impact.
Our objective is to avoid incidents, but
also to encourage stakeholders to raise
their grievances or concerns with us in a
free and open manner. Because of this,
while we keep a track of the number of
grievances received, we do not use this as
a performance indicator. An increase in the
number of grievances may reflect greater
confidence that grievances will be heard
and acted upon. As a metric of performance,
we prefer to focus on the number of actual
incidents with social consequence. We rate
the seriousness of incidents according to the
consequences experienced by stakeholders,
the most significant being Level 5.
In 2023, we recorded one incident with social
consequences (2022: zero).
Economic development of local
communities
We are committed to working with other
businesses and organisations that support
local economies. This includes, but is
not restricted to, helping businesses and
organisations to strengthen the skills and
capabilities needed to enable an area to
diversify its economic activities beyond
mining and become more resilient. Partnering
with governments, communities, other private
sector companies, academia, financial
development institutions and NGOs through
our CRD work, we jointly identify opportunities
for long term social and economic
development, which we then collectively
deliver.
Sustainable job creation
Our approach and policies
Our operations are often located in remote or
rural areas with limited alternative economic
activities and high levels of unemployment,
particularly youth unemployment.
Joblessness dominates many domestic
policy agendas and is a frequently cited
issue in community consultations. It also
represents a major financial pressure on the
fiscal resources of many countries in which
we operate.
We seek to ensure residents in host
communities have access to employment
opportunities that will allow them to
improve their standard of living and their
livelihoods. The nature of mining, involving
Innovation
61
the stewardship of finite resources, means
that transitions are an integral part of our
work, especially with respect to mine closure.
Creating off site non-mining-related job
opportunities is particularly important in
mitigating risks to changing workforce skill
and quantum.
The socio-economic contribution we make to
the communities in which we operate takes
various forms:
– The royalties and taxes we pay (and
collect on behalf of governments) add
economic value to a country
– Business operations that deliver economic
value to communities, enhanced by
policies on inclusive procurement, local
recruitment and supporting local suppliers
– Long-running socio-economic
development interventions, in
collaboration with local partners,
which address local needs, building
and strengthening sustainable local
economies that are less dependent on our
mines.
Taking a long term view, we design our
operations and community development
initiatives so that communities and
economies continue to thrive, particularly
after our mines have closed.
Governance
The Thriving Communities pillar of our
Sustainable Mining Plan includes a
livelihoods stretch target to support five jobs
off site for every job on site by 2030. We have
an interim target to achieve three jobs off site
for every job on site by 2025. The Group’s
off site jobs supported ratio is included
in the chief executive’s scorecard that is
reviewed on a quarterly basis, and is then
reviewed and discussed by the Sustainability
Committee.
grow and scale up, and then matching
them with potential impact investors.
Delivering impact in southern Africa –
and beyond
Anglo American’s impact investment
manager, Emma Parker, comments:
“Our PGMs business is exploring how it
could modify the IFN standard operating
model to deliver greater impact in South
Africa’s Limpopo province. We have
already taken a close interest in several
promising companies in Limpopo, and
are building our network there through
initiatives like roadshows and our
recent impact investment conference
in Polokwane, which brought together
impact and sustainable investors. We are
also partnering with banks and non-bank
credit providers to support host-region
business growth by making available
affordable debt funding to businesses in
non-mining sectors, thereby unlocking
value, impact and jobs.
“Since 2021, we've identified a pipeline of
businesses with operations in South Africa,
Namibia, Botswana, Zimbabwe, Zambia
and Chile and brought them together with
a network of impact investors seeking
social investment opportunities. We’ve
provided technical assistance to more
than 80 social and environmental impact
companies in our operating markets,
supported 22 companies to close deals
with a cumulative value of $25.5 million,
and projected to support over 13,000
livelihoods.
“And we are just getting started. Our plans
are to expand our geographic reach and
we are now implementing a pilot in Peru
and planning a Brazil pilot in 2024. We
see huge potential to expand the IFN’s
scope and influence.”
Taking onions to market in Limpopo province, South Africa. Agriculture is a key area where the IFN is
helping to make a real difference, at scale, to economic upliftment.
Our Impact Finance Network –
uplifting regional economies
How to foster lasting and sustainable
socio-economic development in the
poorer, mainly rural, regions around
mining operations is a constant challenge
for the mining industry.
At Anglo American, we have longstanding
experience in the business of uplifting
communities and improving people’s
lives. Aligned and closely integrated
with the goals of our Sustainable Mining
Plan, and our innovative Collaborative
Regional Development partnership
model, our Impact Finance Network
(IFN) is our tailored technical assistance
and matching programme designed to
mobilise third-party impact capital to
create positive, sustainable social and
environmental change in host countries
and regions around our mines.
Helping high-impact entrepreneurs
Impact investing is thriving. It is estimated
to be worth $1.2 trillion globally. There
are, however, still significant barriers that
prevent the flow of capital to impact
enterprises: for instance, entrepreneurs
often lack knowledge and experience in
presenting their businesses to potential
investors, which makes closing impact-
investing deals challenging for both
businesses and investors.
That is why the IFN is partnering with
experienced enterprise-development
consultants such as Impact Capital Africa
and Edge Growth in southern Africa, and
Fundación Chile and Andes Impact in
Chile and Peru. Concentrating primarily
on jobs and opportunities ‘beyond the
mine’, the IFN is helping to accelerate
the process of supporting enterprises to
become ‘investment ready’ by identifying
impact businesses with the potential to
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Innovation
The off site jobs supported ratio is embedded
in our executive remuneration arrangements,
with the executive director and senior
management LTIP arrangements, including
targets related to achievement of the ratio.
The off site jobs supported ratio is subject to
external assurance as part of the year end
reporting process.
Performance
By the end of 2023, we had supported
139,308 jobs through socio-economic
development programmes since the launch
of our Sustainable Mining Plan in 2018. In
2023, we supported 2.4 off site jobs for every
on site job (2022: 1.8).
Community development – education
and health
We recognise that living our Values and
achieving our Purpose of re-imagining
mining to improve people’s lives requires us to
be innovative, inclusive and ambitious in our
support for host communities.
We are committed to supporting local
community education and health owing to its
direct impact on both our workforce and their
families. By investing in local education and
health capacity and preventative healthcare
measures, we can help secure a more stable
and supportive operational environment and
help foster positive relationships with local
stakeholders.
Our approach and policies
Community education
Our approach to community engagement
and working in partnership with host
communities and other stakeholders to
deliver education programmes is guided by
the Social Way.
As part of the Thriving Communities pillar of
our Sustainable Mining Plan, we aim to drive
systemic and long term gains through our
education goals. We believe that education
is essential to address the triple evils of
poverty, inequality and unemployment
because it increases students’ abilities
to access economic and employment
opportunities while preparing them with
the skills for the future.
Our vision in education is for all children
in host communities to have access to
excellent education and training. We have
established targets of helping schools in host
communities to perform within the top 30% of
public (state) schools nationally by 2025 and
within the top 20% by 2030. To achieve this,
we aim to enhance school governance and
education practices and, provide the space,
didactic tools and technological solutions to
deliver quality education.
Our education programmes focus primarily
on eight countries: South Africa, Zimbabwe,
Peru, Brazil, Chile, the UK, Australia and
Canada. We are also exploring programmes
for Botswana and Namibia as part of
De Beers’ Building Forever goals.
Community health
Our approach to community health is
informed by guidance and investment
targeting that are aligned to the World Health
Organization’s (WHO) whole of society
approach to community health.
Community health programmes involve,
but extend beyond, our workforce and their
dependants to support the wider community,
which means that targeted individuals
do not necessarily have a connection to
Anglo American, as these initiatives view
our communities holistically and strive to
achieve equitable access. All stakeholder
engagement processes are conducted in line
with the Social Way.
Governance
Community education and health
Progress against our community education
and health targets are included within the
chief executive’s quarterly scorecard and
shared with the Sustainability Committee as
required.
Performance
Community education
We continue to make progress against our
Sustainable Mining Plan targets for host
community education.
In 2023, we continued to focus on
implementing proactive education
programmes that deliver measurable
impacts and outcomes tailored to the
unique needs of young learners in each
host community. A key area of focus for our
work during the year, particularly in South
Africa, has been on driving the long term
sustainability of our programmes through
supporting parental and school leadership
involvement, and providing ICT resources to
students and communities.
Community health
As part of the Thriving Communities pillar
of our Sustainable Mining Plan, we plan to
achieve prioritised SDG 3 targets for health
in host communities by 2030. We also have
an interim milestone where all our operations
should be halfway to closing the gap
between the baseline and our 2030 target.
In order to achieve this stretch goal, a
robust process of prioritisation of relevant
SDG 3 sub-goals was undertaken in each
host community, and three priorities per
community were identified. Progress is
being made towards the 2025 milestone,
with programmes in place to address
identified health priorities by the close of
2025. Our operations in Australia, Canada,
South Africa, the UK and Zimbabwe already
have fully functional programmes in place.
Priority regions for 2024 include Brazil, Chile
and Peru.
The economic value we add
By employing people, paying and collecting
taxes, spending money with suppliers
and undertaking community and social
investments, we make a significant positive
contribution to both host communities and
their regional and national economies. Most
of these are in developing countries. Thanks
to the multiplier effect, our total economic
contribution extends far beyond the direct
value we add. And our contribution does
not stop there, with payments to providers of
capital also providing returns to lenders and
shareholders.
In 2023, we distributed $26.8 billion of cash
value to our stakeholders, as detailed in the
charts on page 63.
▶ For more information
See our Tax and Economic Contribution Report 2023
Innovation
Women from the local Gweru community. The work Unki is doing in Zimbabwe is helping to strengthen
both local community-health and education systems.
Unki – Enhancing communication
and information around health
services
Southern Africa continues to suffer from a
challenging combination of widespread
poverty, high unemployment, elevated
levels of HIV infection, and prevalent
violence against women. This is taking
a heavy toll on people’s everyday lives,
with health and education systems in
particular experiencing many challenges.
Forging partnerships to strengthen
health and education systems
In Zimbabwe, health issues, including
HIV and other sexually transmitted
diseases, and lack of capacity in, and
under-delivery by, health systems are
serving to undermine both the state
and its people. To help address the
situation, Anglo American is working with
government and third-party institutions to
improve equitable access to quality care,
and to support individuals to seek care
when they need it. To this end, our Unki
PGMs mine is working with the Ministry
of Health and Child Care, the Zvandiri
NGO, and the National AIDS Commission
in supporting children and adolescents
living with HIV to improve health outcomes
through peer and family support, and
health systems strengthening.
Building capacity on the ground
In the rural Shurugwi district community
around Unki, there are high levels of
school drop-out, particularly in the case
of girls. This makes girls vulnerable to
negative sexual and reproductive health
outcomes – a situation aggravated by the
transient nature of Shurugwi’s contractor
and migrant workforce. To help keep
pupils in schools longer, and boost their
life chances, Unki has invested $2.8 million
in education in Shurugwi through a
programme named Step-Up.
Working in conjunction with community
organisations and NGOs, Unki is not only
building physical infrastructure such as
classrooms and bringing solar power to
schools, but is also funding peer-to-peer
social behaviour change communication,
counselling and information programmes
for Shurugwi’s children and youth. Sexual
and reproductive health information is
particularly important in this respect,
and there is a strong emphasis on peer-
counselling for girls and young women,
who are able to meet up and participate
in social and behaviour-change
communication programmes designed
to strengthen their agency to prevent
HIV and pregnancy, and enhance their
physical and mental health. Adolescent
boys, migrant/contract workers and
artisanal miners are also benefiting from
community health initiatives that use
peer mentors and role models to help
provide psychological and social support,
as well as clinical support, to enable
HIV and sexual and reproductive health
associated testing and access to care.
Anglo American’s Head of Community
Well-being, Alexandra Plowright
comments: “The work we are doing
in strengthening community health in
Zimbabwe is inextricably interwoven with
our determination to boost the country’s
education systems. We are working
with young women to support them to
access information and knowledge that
can inform health seeking behaviour,
particularly on sexual and reproductive
health issues that concern them, and
on ensuring they get the counselling
and advice needed to empower them
to take control of their future.”
Cash value distributed to stakeholders(1)
Employees
$ billion
Taxes and royalties
Suppliers (including capital investment)
Community social investment
Providers of capital
63
15%
19%
53%
1%
12%
Total
26.8
(1) Computational discrepancies may occur due to rounding.
Social investment
In 2023, our Community Social
Investment (CSI) reached $148 million
(2022: $175 million), which represents 2% of
underlying earnings before interest and taxes
(EBIT), less underlying EBIT of associates and
joint ventures.
Since the beginning of the pandemic in
2020, we have increased our CSI investment
and slightly readjusted our funding priorities,
investing more in health.
Anglo American Foundation
The Anglo American Foundation puts youth
at the heart of everything it does, giving
young people the tools to create positive
impact within their communities and around
the world. The Foundation believes a green
and fair future relies on an empowered,
supported and engaged generation
to unlock their full potential and seize
sustainable economic opportunities.
Together with its partners, the Anglo
American Foundation works closely with
young people to understand the challenges
they face and collaborate on innovative
approaches to drive transformative change.
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Innovation
Human rights
Consistent with our Values, we are committed
to respecting human rights across every
area of our business. We embed human
rights as a foundation of the approaches
and standards that we apply throughout our
business and value chains.
Our approach and policies
Consistent with our commitments, we have
enshrined human rights as one of the critical
foundations of our Sustainable Mining Plan.
Respect for human rights is stated explicitly in
our Code of Conduct and is reflected in our
Values. Specific commitments are expressed
in our Group Human Rights Policy, which is
aligned with the UN Guiding Principles on
Business and Human Rights (UNGPs).
Our commitment to human rights is further
expressed through our being a signatory
to the UN Global Compact, the Voluntary
Principles on Security and Human Rights, and
the Business Network Commitment on Civic
Freedoms and Human Rights Defenders.
Due diligence is central to Anglo American’s
approach to human rights. It includes the
following four components: assessing
potential and actual human rights impacts;
integrating and acting on the findings from
the assessment to prevent, mitigate or
remediate the impacts identified; tracking the
effectiveness of the actions taken to address
impacts; and communicating externally
about how impacts are addressed.
As part of the ongoing process to identify
and manage key human rights risks, we
have integrated due diligence into existing
standards that apply to our critical risks and,
increasingly, business activities that cut
across several risk areas.
The primary Group standards and policies
that support due diligence for salient issues
– particularly for those matters where there
is heightened risk of causing or contributing
to adverse human rights impacts – include
the Social Way, SHE Way, Responsible
Sourcing Standard for Suppliers, Responsible
Commodity Sourcing Policy and the Group
Security Policy, as well as several labour-
related policies (such as the inclusion and
diversity; and anti-bullying, harassment and
victimisation policies).
Human rights considerations are also
routinely incorporated into due diligence
for sourcing, origination, and business
development opportunities, as well as
divestments. Increasingly, contracts with
other counterparties, such as joint ventures,
include ESG and human rights clauses.
Human rights considerations were
integrated throughout the development of
our Contractor Performance Management
Framework, including the specification of
minimum labour rights standards.
We recognise and are committed to the
ongoing work required to ensure that our
policies and practices are fully aligned with
these and other external commitments we
have made.
▶ For more on our Contractor Performance Management
Framework
See page 68
Governance
A human rights update is presented to the
Executive Leadership Team and the Board’s
Sustainability Committee at least annually,
with additional topics presented as the need
arises. The Board also approves the Modern
Slavery Statement.
Adverse impacts on labour rights in the
workplace outside of safety and health –
such as discrimination, bullying, victimisation
and harassment – are reported through
YourVoice or human resources processes,
but not currently categorised using the same
1–5 severity levels.
Human rights metrics are considered at those
operating sites which are undergoing IRMA
assurance assessments. Our internal Social
Way assessments also include human rights
reviews.
Performance
Incidents and grievances can be reported in
various ways, including through YourVoice,
operational grievance mechanisms and
internal reporting processes. Since human
rights touches on almost every aspect of
human life, a number of incidents relate
in some way to human rights. Our focus is
therefore on incidents with the most severe
actual or potential human rights impacts.
Such incidents are generally categorised
as incidents with Level 4–5 safety, health,
environment or social consequences.
In 2023, there were three recordable
occupational safety losses of life, which
constitute the most severe human rights
impact. On social consequences, there
was one significant Level 4 incident which
involved the loss of life of a contractor, a
community member, who was working off site
in support of a livelihood programme. There
were no health or environmental incidents
with a human rights impact in 2023.
▶ For more on YourVoice
See page 74
Supply chain
Our approach to responsible sourcing
is aligned to our Purpose. We expect all
suppliers to meet applicable laws – while
sharing our commitment to improve people’s
lives, society and our environment. Our
programme defines minimum sustainability
requirements and decent work principles
required by our 13,000+ suppliers. This
allows us to prioritise ethical decision making
when selecting and managing the suppliers
we work with, and to support and uphold
fundamental human rights through our
supply chain.
Our approach and policies
We require our suppliers to comply at a
minimum with relevant laws and applicable
industry regulations. We also expect them
to meet Anglo American’s policies, site
requirements and other supply conditions,
including those outlined in our Responsible
Sourcing Standard. The standard sets out
our conditions for working with our business.
This includes our expectations of suppliers in
relation to protecting the health and safety
of workers and the environment, respecting
labour and human rights, contributing to
thriving communities, and ethical business
conduct. It clarifies steps that suppliers must
take to comply with the standard.
65
Innovation
Our Inclusive Procurement Standard seeks
to provide guidelines that will ensure our
employees and contractors are involved in
sourcing decisions. It works to adequately
equip and advance meaningful inclusion of
host communities and other marginalised
groups into our supply chain to generate
shared, sustainable prosperity in those
communities. The standard ensures
an effective, consistent approach and
commitment towards inclusive procurement
across all our operations.
Governance
Our supply chain leadership team tracks
a number of performance metrics on a
monthly basis across inclusive procurement
and responsible sourcing. These include,
procurement spend with host community
suppliers, the number of high-risk suppliers
where responsible due diligence was
conducted, the number of high risk issues
under management, and the number of
small- and medium-sized suppliers on
capacity development programmes.
Performance
In 2023, our operations spent approximately
$14.4 billion ($14.8 billion) with suppliers, of
which $13.0 billion was with local suppliers
(2022: $13.6 billion). Our expenditure with
designated suppliers (Black Economic
Empowerment in South Africa, Indigenous
communities in Canada and Aboriginal
Suppliers in Australia) was $3.7 billion
(2022: $3.4 billion), representing 26% of total
supplier expenditure, including $2.4 billion
with host communities in the direct vicinity of
our operation (2022: $1.9 billion).
Global supply chains can generate
economic growth and contribute significantly
to social development – many businesses,
therefore, seek to diversify sources of supply
or further integrate into new jurisdictions or
local economies. However, as some markets
or regions may not have safe workspaces
and labour protection as a non-negotiable
imperative, there is an increased risk
of potential for human rights violations,
including the use of child labour, modern
slavery, forced labour and human trafficking.
In their onboarding process, suppliers are
required to confirm agreement to, and may
be required to provide further evidence
of, compliance with Anglo American
policies – including Inclusive Procurement,
Business Integrity, Safety, Environment,
and Responsible Sourcing. As part of the
contracting process, these requirements are
included in supplier agreements. We also
require suppliers to provide information and
attestations on a range of ESG topics.
Global CSI expenditure by type(1)
Community development
$m
Education and training
Health and welfare
Water and sanitation
Other
Institutional capacity development
Sports, art, culture and heritage
Disaster and emergency relief
Environment
Total
148
(1) Discrepancies may occur due to rounding.
Global CSI expenditure by region(1)
Africa
Americas
United Kingdom
Rest of World
Australia
Total
(1) Discrepancies may occur due to rounding.
$m
148
43%
24%
11%
8%
7%
2%
3%
2%
1%
54%
37%
5%
3%
1%
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People
Our people are critical to all that we do. The partnerships
we build, both within Anglo American and with our
stakeholders – locally and globally – are central to
maintaining our regulatory and social licences to operate
and our commercial success.
People
67
A more engaged and inclusive
approach to safety leadership
Central to our Purpose is our relentless endeavour
to keep our people safe and well.
So, alongside our introduction of new technologies that
are making Anglo American a safer and healthier place to
work, we are building a stronger safety culture, based on the
established concept of Visible Felt Leadership (VFL), to help
leaders, at all levels, demonstrate in a personal way how
much they care about their teams’ safety and well-being in
the workplace.
At Anglo American, we see VFL as an active, practical and
highly visible expression of living our Values, connecting,
in the field, on a one-to-one or small-group basis around
a task or activity, and ensuring that it is done safely and
effectively. Unlike traditional ‘top-down’ interventions, which
were generally regarded by both leaders and front line
workers as “looking to see what’s wrong”, our approach
to VFL recognises people for doing the right things, and
encourages them to stand up for safety and speak up if they
see something that doesn’t look or feel right.
VFL is central to improving safety
Applying the concept of VFL provides the opportunity for
leaders to see for themselves what is really happening on the
front line, to understand and influence employee behaviours,
and help to instil a safety ethic. These conversations enable
managers and supervisors alike to demonstrate their team
commitment, foster understanding, break down barriers, and
are vital to building greater trust with our workforce.
When we ask our leaders to engage directly with front line
personnel, we want to create not just physical, but also
psychological safety. By encouraging our operational leaders
to create a psychologically safe working environment, our
workforce feels more empowered to speak up about unsafe
work practices and to stop unsafe work. As well as improving
At our Minas-Rio iron ore mine in Brazil, senior manager – operations,
Bruno Cipriani, talks with members of his team about the day’s
operational plans.
overall safety, this approach brings further benefits such as
enhanced levels of engagement, better morale, and higher
productivity.
How VFL is being implemented
Building a safety culture in any organisation can be a slow
and painstaking task – and it demands more of everyone’s
time. So, how is the time our leaders spend in the field, an
essential component of this, being rolled out?
At a Group level, we are monitoring our newly introduced
Leadership Time in Field key performance indicator (KPI)
which now forms part of management bonus structures for
all sites. That said, the focus is on leaders spending quality
time in the field engaging in a meaningful way rather than
on collecting data. For example, following a VFL engagement,
the information collected, which may include critical safety
aspects such as the identification of high-potential hazards,
is captured in a central system for any necessary follow-up
actions and further analysis.
Since introducing the KPI, we are seeing a more encouraging
overall improvement in our total recordable injury frequency
rate (TRIFR), and this correlates well with the greater amount
of quality time being spent by our leadership with the frontline
at site level.
Next steps
We are exploring how best to use various technology options
such as data analytics and artificial intelligence (AI) to help
identify safety trends across the organisation and to measure
the impact of leadership time in the field across our sites
and operations.
Roll-out of a new mobile app to leaders is under way;
this will make capturing records of VFL engagement and
communicating insights gained in the field a more efficient
process. We have also introduced an operational guide
to provide additional guidance and support to leaders in
conducting meaningful, quality VFL engagements that
support the culture shift we are looking for.
“Visible Felt Leadership (VFL) is a key component of
improving our safety culture. What distinguishes it today
from earlier approaches is the greater amount of time
leaders, at all levels of the organisation, spend in the field
– and the fact that it is interactive, in that it encourages
two-way dialogue with colleagues to speak up for safety.
VFL is also underpinned by the latest developments in
technology, which are able to identify potential hazards
and incidents, along with safety trends, and capture
them on a central data base. This is allowing us to
measure VFL’s impact across the company and to get a
comprehensive perspective of the positive difference it is
making at our operations.”
Tony Brock
Group Head of Safety, Health and Environment
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People
Safety comes foremost in everything
we do; we train, equip and empower
our people to work safely every
day. We believe, too, that creating
an inclusive and diverse working
environment and culture that supports
high performance and innovative
thinking gives our business a
competitive advantage.
Adopting a zero mindset
Anglo American’s number one value is
safety, and it is our first priority, always. We
are committed, and believe it is possible, to
stop our people from being harmed at work
and strive to create an environment where
everybody, everywhere comes home safe at
the end of their working day.
In 2023, we renewed our focus on three key
safety levers: supporting operational leaders
to spend more time in the field; using our
Operating Model principles to deliver planned
work, with risk identification and mitigation at
the heart of that work; and implementing our
new Contractor Performance Management
framework across the business.
Governance
Site general managers are accountable
for the delivery of safe and responsible
production, and ensuring that minimum
occupational safety expectations, as laid out
in our policies and procedures, are met.
Business safety data is reviewed by the
Executive Leadership Team on a monthly
basis, and is then reviewed and discussed by
the Board and its Sustainability Committee at
each meeting.
Safety performance continues to be
embedded in our executive remuneration
arrangements, with the short term incentives
of the executive directors impacted by safety
performance across the Group, as outlined
in our Remuneration Report and determined
by our Remuneration Committee. Executive
director bonus payouts reflect performance
for Group TRIFR and Operational Excellence
in Safety metrics – comprising Visible Felt
Leadership (VFL) time in field and scheduled
maintenance activities.
Group safety performance
It is with deep sadness that we report three
colleagues – all contractors – lost their lives
in work-related incidents at our managed
operations in 2023. These losses leave a
lasting impact on many lives and serve as a
constant reminder to be unconditional about
safety, every day.
Total number of fatal injuries and fatal injury
frequency rate (FIFR) 2019–2023
Fatal injuries
FIFR
Safety data (fatal injuries and TRIFR) is
subject to external assurance as part of the
year end reporting process.
Our approach and policies
Our overarching approach to safety is
incorporated in our Safety, Health and
Environmental management framework,
covered in our SHE Policy and SHE Way.
▶ For more information on the SHE Policy
Visit angloamerican.com/policies-and-data
Contractor performance management
To deliver safe, responsible production,
we know that we need to be better at how
we work with our contractors and how we
support their safety on our sites, ensuring
they feel valued and respected as a critical
contributor to everyone’s safety.
As part of our broader Elimination of
Fatalities programme, we worked with our
Supply Chain function to build an integrated
Contractor Performance Management
(CPM) framework. Launched in 2023, this
framework will support the implementation
of an industry best-practice approach to
contractor performance management
across our business, focusing on the delivery
of improved risk-based planning and work
execution.
The CPM framework incorporates people,
processes and systems and provides the
foundation for safe and stable production
by helping to create a psychologically and
physically safe, healthy and productive work
environment for everyone who works for us.
Nico Molwagae was fatally injured in
February 2023, in a drilling incident at
Kolomela iron ore mine in South Africa
and, in August 2023, Jorge Navarrete and
Gerardo Cariman were fatally injured while
investigating a communication failure in an
electrical room at Los Bronces copper mine
in Chile. Both incidents were investigated
by independent experts and actions were
agreed to mitigate the risks identified and to
prevent these types of tragic incidents from
reoccurring.
We have made solid progress in our safety
journey, recording our lowest TRIFR of 1.78 in
2023 (2022: 2.19).
Lost time injuries, medical treatment cases and
TRIFR 2019–2023
Injuries
TRIFR
Health
Our concern for the health of our workforce
extends throughout and beyond the
workplace. While the threat of the Covid-19
pandemic may have lessened, we continue
to build on the important lessons learned. We
are now focusing on preparedness measures
that will ensure our resilience to future health
threats.
A crucial aspect of our work in 2023,
therefore, has been a continued focus on
strengthening individual health, including the
physical and mental well-being, and quality
of life, of every employee and contractor, their
families and host communities.
Governance
Site general managers, supported by
occupational health and hygiene managers,
are accountable for ensuring that minimum
TRIFRLost time injuriesMedical treatment cases2019202020212022202302505007501,0001,2501,50000.511.522.533.5FIFRFatal injuries2019202020212022202302468100.0000.0050.0100.0150.0200.0250.0300.035 69
New cases of occupational disease
2019–2023
occupational health expectations, as laid out
in our policies and procedures, are met.
Business occupational health data is
reviewed by the Executive Leadership
Team on a quarterly basis, and is then
reviewed and discussed by the Board and its
Sustainability Committee at each meeting.
Occupational health performance is
embedded in our executive remuneration
arrangements. Executive director short
term incentives reflect performance for total
number of employees potentially exposed
to noise over the occupational exposure limit
(OEL), total number of employees potentially
exposed to inhalable hazards over the OEL,
and total number of employees potentially
exposed to carcinogens over the OEL.
Occupational health data is subject to
external assurance as part of the year end
reporting process.
Our approach and policies
Our overarching approach to health
is covered by the SHE Policy and SHE
Way, our Safety, Health and Environment
management framework.
In 2023, we continued to implement our
Health and Well-being strategy in line with
the World Health Organization (WHO)
Healthy Workplace model and framework
covering employee health. This strategy,
supported by our WeCare well-being and
livelihoods support programmes, requires us
to work together to support our people and
achieve our health and well-being goals.
Our many years of work with employees
and host communities on HIV/AIDS and TB,
and some four years on Covid-19, have
positioned us to extend our learnings from
managing communicable diseases to
non-communicable diseases, a major focus
in 2023. We are committed to delivering
People
effective interventions that reduce health
risks, including occupational disease-
causing exposures and addressing unhealthy
lifestyles such as smoking, excess alcohol
consumption and poor nutrition.
Our Global Mental Wellness Framework
Our Global Mental Wellness Framework
is a key part of our Health and Well-being
strategy and outlines our approach to
supporting the mental health of our
colleagues.
Under the framework, we have focused on
making immediate mental health support
available to our people when they need it.
We have trained more than 500 employee
mental health first aiders to ensure coverage
across our global operations. We also offer
counselling, available through employee
assistance programmes, while using apps
and other platforms to provide additional
options for relaxation and mindfulness that
aid mental wellness.
Workplace Health Standard
Our standard defines the minimum
workplace health requirements aimed at
preventing harmful workplace exposures and
related occupational illness, and improving
the wellness of our workforce. An enhanced
Total Health Standard was approved in
January 2024, replacing our previous
Workplace Health Standard. We expect all
operations to complete a self-assessment
against the new standard in 2024.
The Total Health Standard continues
to require each operation to provide all
personnel, including contractors, any
information, instruction, training or supervision
that is necessary to enable them to perform
their work without risk to health. It extends the
focus to workplace welfare requirements and
health promotional activities and requires
operations to create links between these
efforts to community health activities.
Performance
Occupational disease
In 2023, there were 15 reported new cases
of occupational disease, of which 14 were
related to noise exposure (2022: 5, all related
to noise exposure). A significant challenge
in reporting occupational disease is that
many hazards do not cause immediate
symptoms or measurable health harms.
Occupational disease is often not detectable
or definable until many years after exposure.
This means cases reported in a given year
are most likely to reflect accumulated past
working conditions. This latency challenge
underscores the importance of long term
environment monitoring, comprehensive
worker occupational health surveillance,
and proactive risk assessment – preventative
management strategies that are an ongoing
focus at Anglo American.
Occupational exposures
We target a year-on-year reduction in
workforce occupational hazard exposure.
Reduction targets are set taking into
consideration operational risk profiles and
delivery of work plans within an annual cycle,
thus ensuring that the targets we set drive
continuous improvement.
At the beginning of 2023, we changed the
definition of our occupational exposure
metrics to reduce the threshold of definitions
of exposure to inhalables and carcinogens in
line with the Occupational Health and Safety
Act 85 (1993) South Africa. This change to
the reporting basis has led to an increase in
the number of exposure incidents captured,
resulting in 2023 data being incomparable to
that reported in 2022.
Although it is not possible to compare year-
on-year exposure levels, there has been
a reduction in the number of employees
exposed to occupational hazards above the
occupational exposure limit over the course
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of 2023. Occupational noise exposure
enhancements were driven by acoustic
improvements at both PGMs and Copper.
Advancements in relation to employees
exposed to inhalables and carcinogens were
largely driven by enhanced local exhaust
ventilation controls at our PGMs processing
operations and retrofitting of diesel exhaust
after-treatment systems on a range of diesel-
powered equipment at our underground
operations.
Non-communicable diseases
Having exceeded our 2022 non-
communicable disease goal of assessing
62.5% of the global workforce for
cardiovascular risk factors, including smoking,
heart health and obesity, we have increased
our target to have assessed 90% of our
employees over a rolling three-year period by
the end of 2026.
Heart disease is a common non-
communicable disease, with enormous
impacts on our people and host
communities. It is the leading cause
of premature death and shortened life
expectancy in most of our operating
countries. However, it is also preventable and
treatable when diagnosed properly and in a
timely manner. Hence, in 2023, we continued
our Healthy Hearts programme, including
offering all employees annual health checks
and a heart health score to help them make
informed decisions about their health and
lifestyles. We have also expanded the scope
of the healthy heart score to incorporate
other cardiovascular risk factors such as
blood cholesterol, alcohol consumption,
physical activity and hours of sleep.
Managing HIV and TB
One of the top-line pathways towards
meeting the UNAIDS goal of ending the AIDS
epidemic by 2030 includes the 95-95-95
treatment target: 95% of people living with
HIV knowing their HIV status; 95% of people
who know their status on treatment; and
95% of people on treatment with suppressed
viral loads.
Our HIV Workplace programme in South
Africa, which is informed by the UNAIDS
targets, covers the three interlinked areas
below:
– The enabling environment: addressing
social and structural barriers to HIV
prevention, testing and treatment
– Treatment targets and service access:
achieving the 95-95-95 treatment targets
and improving access to reproductive
health services
– Service integration: expanding the service
offering for people living with HIV to
ensure access to mental health support,
preventing and addressing gender-
based violence, and management of
communicable and non-communicable
diseases.
Infection numbers continue to rise in many
of the countries where we operate, and we
recognise that the collective effort of also
addressing social issues can help to reverse
this trend.
Under our community health and well-being
programme, there are multiple initiatives
designed to increase access to treatment
and testing that are being implemented
across geographies, with a focus on southern
Africa. These initiatives are guided by the
SDG framework, prioritising the SDG 3 goals
which are relevant to each host community.
In 2023, 88% of our employees in southern
Africa knew their status (2022: 90%), with
95% (2022: 89%) of those employees living
with HIV on anti-retroviral therapy at the end
of the year. We recorded 124 new cases of
HIV and no HIV/AIDS-related deaths.
In 2023, the TB incidence rate was 313 per
100,000 compared with 154 per 100,000
in 2022, reversing the downward trend
witnessed up to the emergence of the
Covid-19 pandemic. In addition to the work
we are doing to meet the 95-95-95 treatment
targets for HIV/AIDS, we are intensifying our
TB screening and prevention therapies,
including community-wide health screening
to identify individuals with active TB disease.
Helping our people thrive
We aim to attract the best people in the
industry, putting them into the right roles
to suit their talents, and meet our business
objectives – now and into the future.
Empowering our employees through
professional and personal development
opportunities, we give them the support
they need to thrive and, by continuously
engaging with our employees, we are able to
build relationships based on trust. Living our
Values, we aim to be an inclusive workplace
where everyone – without exception – can
bring their full selves to work.
Attracting, retaining and developing our
talent
Governance
The Group people & organisation director
is accountable for the delivery of our talent
work programmes, managed though
the Group head of talent. The Executive
Leadership Team is updated on talent
management and succession on a regular
basis, with a particular focus on succession
planning and diversity of the talent pool.
Executive appointments and succession
plans are reviewed by the Nomination
Committee and the Board as appropriate.
Our Global Workforce Advisory Panel
Our Global Workforce Advisory Panel
helps the Board to better understand the
views of our workforce, in line with the
recommendations of the UK Corporate
Governance Code. The Panel is currently
made up of 12 employees, representing
the countries where the Group has a
significant presence. Panel members are
nominated using agreed criteria set out in
its terms of reference and selected to ensure
representatives throughout the organisation
are appropriately balanced across the areas
of gender, ethnicity, age and seniority. In
2023, the panel met on three occasions –
one of which was in person in South Africa
– and the panel chair, non-executive director,
Marcelo Bastos, shared the key messages
from those meetings with the Board and
Executive Leadership Team.
People
Featured in Crop Nutrients’ bespoke cybersecurity classroom is apprentice Lydia Kynman.
Our Crop Nutrients business –
a cybersecurity incubator
Helping to revitalise the local economy
Woodsmith, the biggest mining
project in the UK in decades, makes
Anglo American a major new employer
in an area of north east England that
has long suffered from limited well-paid
job opportunities. We are committed
to creating significant employment
opportunities outside, and ultimately
beyond the mine, so we are engaging
with key stakeholders to support the
creation of new high-value jobs by
stimulating growth in key regional growth
sectors, such as tourism, the bio economy
and cybersecurity.
Cybersecurity – a regional growth
opportunity
The region around the Woodsmith project
has distinct cybersecurity advantages,
including, most notably, GCHQ, the UK’s
intelligence, security and cyber agency,
which has a satellite ground station near
Scarborough, about 30 kilometres from
the Woodsmith mine site. Leveraging
on this, Anglo American is determined
to enhance the region’s standing in the
business-critical field of cybersecurity.
Consequently, over the past few years,
we have supported GCHQ’s National
Cyber Security Centre (NCSC), including
collaborating with the NCSC to open the
world of cybersecurity to schoolchildren
and young people and develop
a cybersecurity network within the region.
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Our approach and policies
Our Organisation Model
Our Organisation Model ensures we have
the right people in the right roles doing
the right work, with clear accountabilities
and minimal duplication of work. Along
with our Values and our Operating Model,
the Organisation Model supports the
delivery of positive outcomes through a
set of structures, systems and processes.
The model creates consistency in how we
approach organisational issues, by providing
a common language and approach about
organisations and management.
To support Organisation Model capability
development, we have created enhanced
learning materials that are available for all
employees through our Learn+ platform,
complemented by tailored workshops with
leaders across the business.
Our performance management programme,
Team+, creates the conditions for high
performing teams where every member takes
accountability not only for their individual
success, but also for the success of the team.
This is supplemented with regular feedback
conversations to ensure that all employees
are clear on what is expected of them and
how they are performing.
Employee engagement and workplace
relations
The strategy that governs our employee
relations and engagement efforts has
five pillars: trade unions, HR excellence,
psychological safety, physical safety and
authentic leadership.
Developing cybersecurity expertise
from within
As part of our plans to help to boost the
skills of a local workforce through our
ongoing apprenticeship programme
– as well as our work in schools to
promote careers in science, technology,
engineering and maths – we identified
that there was a pressing need to train
people in cybersecurity ourselves, so that
we have the talent, both within our own
business and across the region.
In November 2021, Anglo American
launched its own cybersecurity two-year,
Level 4, apprenticeship programme to
teach trainees how to thwart a range
of cybersecurity threats and also learn
general business skills, while gaining
valuable experience of working in
a large multinational organisation.
The programme started out with one
apprentice, Billy Chambers. While Billy
continued into his second year, a new
cohort of seven apprentices joined
the programme. During that period,
we also invested in a state-of-the-art
cyber classroom in Crop Nutrients’
headquarters in Scarborough.
Billy became our first cybersecurity
graduate in November 2023. There are
now 13 apprentices in the programme:
six in year one and seven in year
two. We aim to recruit another four
apprentices in 2024.
A final word comes from Olivia Procter,
an apprentice in the 2nd-year cohort:
“Cybersecurity is opening up the world
for me … To be able to do this in a global
organisation, but staying so close to
home in Scarborough, is fantastic.”
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People
Mental wellness questions form a part of
our regular employee engagement surveys.
The data from these surveys is also used
to establish progress in our Inclusion and
Psychological Safety indexes, as well as to
analyse gaps where we can focus initiatives
to improve safety and inclusion for all our
people.
We take a decentralised approach to
working with trade unions, works councils
and other representative bodies, enabling
our businesses to address specific issues and
concerns affecting them.
We continue to engage with IndustriALL,
the global union federation, on topics
such as health, safety and gender based
violence; our Sustainable Mining Plan and the
UN SDGs; our Code of Conduct; and policy
matters of shared interest.
Following on from the success of the South
African Tripartite Structure – a partnership
between the mining regulator, organised
labour and industry councils to jointly address
health and safety issues in the workplace,
our Steelmaking Coal business launched a
similar structure in March 2023.
Promoting a learning culture
We strive to enable a continuous learning
culture and a passion for breakthrough
performance and innovative thinking, driven
by agile people development approaches
that unlock the full capabilities of our people.
Learn+, our main learning platform, offers a
single, user-friendly interface that makes it
easy for our employees to access a growing
range of online learning resources. This
learning experience platform feeds from
other areas to provide learning experiences,
with a focus not only on what people learn,
but how learning can be delivered in the line
of work, at the time of need.
Performance
Talent attraction
In 2023, our focus on refining our talent
attraction model extended beyond
leveraging external platforms. We prioritised
the development of the candidate
experience and the crucial role of our Talent
Acquisition team as ambassadors for
Anglo American.
Our strategy moved beyond recruitment
by aligning Talent Acquisition and Talent
Management functions more closely.
This integration drives an ‘internals first’
philosophy, which leverages our talent
management and succession planning
processes, while delivering on our career
proposition for our employees. In 2023,
59% of new hires came from our internal
talent pool (2022: 44%).
Our graduate development programme is
intentionally designed to recruit and develop
the future leaders of Anglo American. In
2023, we increased our global graduate
intake by 41% in response to future demand
planning.
In addition to our graduate programme,
we also offer internships, apprenticeships
and vacation work experience across our
operating regions. In the UK, a cybersecurity
apprenticeship aligned to the UK government
cybersecurity skills framework was launched
in 2021, and continues to run successfully.
Our Marketing business also runs a highly
successful internship for our China and
Singapore offices, while our Australian and
South African businesses have a strong track
record of offering meaningful vacation work
for students engaged in Science, Technology,
Engineering and Maths (STEM) related
undergraduate studies.
▶ For more information on our cyber security
apprenticeship scheme
See page 71
Learning and development
In 2023, Anglo American invested $60 million
in direct training activities (2022: $69 million).
There were also no reported incidents of
under-age or forced labour at our operations
during 2023.
Users of our Learn+ platform conducted
51,339 searches during the year, the
large majority of which targeted non-role-
specific skills. Of those, there was a heavy
skew towards user-level technical skills,
such as support for commonly used office
software applications. In addition, a total
of 607,659 learning course completions
(comprising e-learning, virtual classroom
and classroom learning) were recorded on
our global Learning Management System,
covering a range of topics across technical,
non-technical and compliance courses – a
29% increase on 2022.
Employee engagement
Our Pulse survey was launched in April 2023,
aimed primarily at our more senior and
functional colleagues. Over 8,000 colleagues
answered questions covering engagement,
advocacy, accountability, collaboration,
and communication. This survey suggested
an employee engagement score of 90%,
consistent with previous global surveys. The
findings were shared with the Executive
Leadership Team, country CEOs, and their
respective HR leadership teams.
Our employee voluntary turnover rate for
the year was 3.5% (2022: 3.6%). New
hires represented 12% of our permanent
employees in 2023, compared with 14% in
the prior year.
Labour relations
Approximately 71% of our permanent
workforce was represented by worker
organisations and covered by collective
bargaining agreements. During 2023, there
were no recorded incidents of industrial
action at our managed operations.
Several successful wage agreements were
concluded during the year at our businesses
and operations, resulting in acceptable salary
increases and productivity improvements.
Other engagements with unions in South
Africa related to consultation on our
restructuring process.
An inclusive and diverse environment
We continue to strive for a workplace culture
that is fair and supportive; where the well-
being of our people is prioritised and all
colleagues feel able to contribute fully and
thrive at work, regardless of gender, sexual
orientation, age, race, ethnicity, religion,
national origin or disability, including mental
wellness. We also recognise our responsibility
to positively influence and contribute towards
progress on inclusion and diversity issues
within our broader sector and work closely
with bodies such as the ICMM and Women in
Mining to help achieve this.
Governance
Across our businesses and functions, we
have inclusion and diversity employee
representatives who provide inputs into
the Inclusion and Diversity Working Group.
The working group is made up of senior
representatives from each of our businesses
and Group functions. It also includes heads
of people & organisation and is chaired
by the people & organisation director. All
feedback from the working group, including
progress on inclusion and diversity targets
and initiative highlights, is reported to the
Board and chief executive on a quarterly
basis by the people & organisation director.
People
Tania Alvarez Pulleches supervises drilling and blasting operations at Quellaveco from the safety
of the Integrated Operations Centre (IOC), several kilometres away from the blasting area.
Quellaveco – where women are
helping to shape the future
Quellaveco is widely regarded as Peru’s
most technically advanced mine to date.
It is a highly digitalised and automated
operation, with all data integrated and
accessible in real time. This is transforming
the way we mine, transport and process
the copper-bearing ore, and is creating a
far safer workplace.
And females from local communities are
showing the way
What is less well-known is the growing
role of women in shaping this new work
environment. In an industry that has been
overwhelmingly male-dominated in the
past, things are changing. At Quellaveco,
from the outset, there has been a focus on
training females from the neighbouring
Moquegua community so that they are
able to take up roles in all areas of the
business – from starter positions to senior
management. Today, women represent
around 22% of the mine’s workforce –
including 30% of leadership roles.
A day in the life of an all-women
drilling team
Females – nearly all Moqueguans – make
up around 65% of the mine’s drilling
controllers, while some sub-teams are
composed entirely of women. A typical
day starts at the Integrated Operations
Centre (IOC), several kilometres away
from the designated blasting area in the
open pit. Here, Blasting technical assistant
Melody Echegaray prepares the drilling
plan for the day, including determining the
drill sequencing. She inputs all the data on
an in-house-developed Work Execution
Platform app, which is downloaded
by the drilling team on to their mobile
phones. The drilling team then carries
out both a remote and on-site check of
all in-pit equipment needed, as well as
verifying that the area to be blasted meets
all of Quellaveco’s safety standards.
Once this has been completed, Drone
operator Aynne Anchante conducts an
aerial topographic survey to confirm that
conditions are suitable.
At the IOC, each drill rig controller, who
can monitor up to six rigs simultaneously,
directs the autonomous drilling machines
to make holes for explosives. A specialist
explosives company, Enaex (where
the workforce comprises about 30%
women), then fills the drill holes with
explosives, sets detonators and initiates
the blasting protocol – while a drone is
again employed to record the blasting
operation.
A new world in mining opens up
Melody Echegaray comments:
“Anglo American has opened our eyes
to what we, as women, can achieve in
the future. The company is giving us the
opportunity and the tools to succeed in
jobs we never thought would ever be
open to us.” Those sentiments are echoed
by Aynne Anchante, who says: “Before
Quellaveco came into being, many of us
had only low-paid jobs such as cleaners
or working in the hospitality business. Now
we work in a place where there is a culture
of encouraging continuous learning and
upskilling and promoting female talent.”
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Anglo American’s inclusion and diversity
team is responsible for the overall monitoring
and delivery of Group-wide targets, initiatives
and policies. Our agile reporting mechanisms
allow us to capture progress quickly and in
detail.
Our approach and policies
We strive to achieve our aims through an
emphasis on inclusion, diversity and well-
being. This approach is governed by a suite
of policies that we regularly update and
supplement to ensure continued alignment
with current best practice. Our Inclusion
and Diversity Policy is supported by our
Global Enabling You Strategy; Group Policy
on Bullying, Harassment and Victimisation;
and our Group Policy on Recognising and
Responding to Domestic Violence. Other
aspects of our approach are captured in our
Group Family Friendly and Carer Leave Policy
and Group Flexible Working Policy. These
policies and initiatives across inclusion and
diversity are helping to build psychologically
and physically safe work environments.
Our zero-tolerance approach
We are committed to eliminating all forms
of bullying, harassment and victimisation
across our organisation, through our
global policy and Stand Up for Everyone
campaign. All reported incidents are
anonymised and shared with the highest
level of the organisation. Our zero-tolerance
approach extends to include domestic
violence and abuse that might occur outside
the immediate workplace. We provide
mandatory bullying, harassment and
victimisation training for our colleagues to
ensure they are aware of our zero-tolerance
approach, are familiar with our reporting
structures, and feel confident to act as
inclusion and diversity advocates.
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Performance
By the end of 2023, we exceeded our
consolidated target of 33% female
representation across the business for our
management population*, reaching 34%.
However, for female representation for
those on the Executive Leadership Team
and for those reporting into an Executive
Leadership Team member, we achieved
25% and 29%, respectively. The company is
committed to building female representation
in our Executive Leadership Team and those
reporting to them. We have seen positive
improvements year on year on other key
performance metrics such as the percentage
of women in the workforce which increased
to 26% in 2023 (2022: 24%).
At 31 December 2023, there were four
female directors and six male directors
serving on the Board. In 2023, on average,
the Group had 30 female senior managers
and 71 male senior managers and 14,959
female and 44,941 male employees.
We report on our gender pay gap in
UK operations, in line with legislative
requirements. As of 5 April 2023, our UK
average (mean) gender pay gap for
Anglo American Services (UK) Ltd was
32% and our median pay gap was 23%
(2022: 39% mean and 29% median). This
was primarily due to the high representation
of men in the most senior management roles
in our UK head office – an issue mirrored
across our sector, and one that we continue
to address.
At year end, the proportion of our permanent
employees aged under 30 was 11%, 70%
were aged between 30 and 50, and the
remaining were over 50 years of age.
In South Africa, historically disadvantaged
South Africans held 85% of our management
positions (2022: 71%).
Building a purpose-led culture
We understand that ethical reputation is
a critical asset for building trust with our
stakeholders. We expect our employees and
business partners alike to show integrity, care
and respect for colleagues, communities
and the environment in which we operate,
by acting honestly, fairly, ethically and
transparently when conducting our business.
These non-negotiable foundations are
central to our Code of Conduct and Business
Integrity Policy.
Our Code of Conduct is an example of our
Values in action. Serving as a single point
of reference for everyone associated with
us, it brings together in one place, and in a
clear way, the commitments and standards
that determine how we conduct business.
It explains the basic requirements and
behaviours we all need to live up to every day.
Governance
Anglo American’s chief executive is
accountable for the Code of Conduct and
for ensuring that its related policies are
implemented.
The Group Compliance Committee assists
the Board, the Board’s Audit Committee and
Executive Leadership Team in overseeing the
implementation of an annual compliance
management programme that supports
building and sustaining a culture of
compliance with business-integrity-related
policy requirements.
Regular updates are provided to the Group
Compliance Committee on progress against
businesses compliance management plans.
Our approach and policies
Our Code of Conduct
We recognise that our responsibilities and
commitments as a business must extend
above and beyond compliance if we are to
build relationships of trust with stakeholders.
Our overriding approach to the ethical
business conduct that underpins our
reputation as a reliable and dependable
partner is outlined in our Code of Conduct.
Our Code of Conduct also serves as a guide
that directs us to policies, standards and
further information sources that can support
us, and all those associated with us, to
choose to do the right thing.
Business integrity
Our Business Integrity Policy sets out the
standards of ethical business conduct that
we require at every level within our business –
including our subsidiaries and those joint
operations we manage – in combating
corrupt behaviour. For non-managed joint
operations, we seek to influence the adoption
of a framework commensurate with the
requirements of our policies and procedures
and, at a minimum, to comply with local laws
and associated requirements. In line with
this approach, our intention is that industry
associations of which we are a member work
on a similar basis.
Anglo American is a signatory of the UN
Global Compact and is committed to its
10 principles of business, including fighting
corruption, extortion and bribery. We use our
annual performance in the Business Conduct
and Ethics categories of the Dow Jones
Sustainability Index and Sustainalytics as an
opportunity to benchmark best practice and
continuously improve our internal processes
and level of disclosure.
* Management includes middle and
senior management across the Group.
Whistleblowing
Our Whistleblowing Policy sets out our
approach to reporting issues and concerns
confidentially or, if preferred, anonymously.
Anglo American does not tolerate any form
of retaliation against anyone raising or
helping to address a concern. This policy
also outlines the availability and use of our
YourVoice confidential reporting service,
which empowers employees, contractors,
suppliers and other stakeholders to raise
concerns anonymously about potentially
unethical, unlawful or unsafe conduct or
practices that conflict with our Values and
Code of Conduct. YourVoice is operated by
an independent multilingual whistleblowing
service provider.
Performance
Using YourVoice
During 2023, we received 1,403 reports
through YourVoice, a 29% increase over
2022. The increase can be attributed to
several awareness initiatives, including
running an ‘Action for Integrity’ campaign in
August 2023 to raise the awareness and use
of the YourVoice channel.
An independent investigation team reviews
the allegations. In 2023, 25% of those
received were substantiated or partially
substantiated. Corrective actions were
taken against substantiated allegations
in accordance with our policies, resulting
in 182 sanctions against employees and
contractors, which include 55 exits from the
organisation.
People
Benchmarking anti-corruption initiatives
Our collaboration with the Transparency
International Corporate Anti-Corruption
Benchmark continued, and we used the
result of its annual benchmarking to support
improvement efforts.
Engaging and training our people
We developed and launched a new
online training module for employees at
the manager level. This module on Doing
Business with Integrity, combined several
business integrity-related topics providing
practical examples and showing the
connections between the compliance areas.
By the end of 2023, 12,355 of our colleagues
had completed the training.
Breakdown of YourVoice reports received (%)(1)
People
Bullying, harassment, victimisation and other related matters
Employment, personnel policy and other people-related matters
37%
Legal and regulatory
(including corruption, fraud and criminal activity)
Other
Safety and health
Suppliers and procurement
Information security and data privacy
Social and environment
(1) Computational discrepancies may occur due to rounding.
26%
18%
8%
5%
5%
1%
1%
75
At Anglo American we strive to enable a continuous learning culture, and unlock our people’s full
capabilities. Studying our Code of Conduct in the Johannesburg office is Zimele team assistant
Thozama Lucky Khumalo.
Strategic Report Integrated Annual Report 2023Anglo American plc
76
Anglo American plc
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Strategic Report
Capital allocation
Underpinning our strategy, we have
a value-focused approach to capital
allocation, with clear prioritisation:
first to sustaining our operations
and maintaining asset integrity
(including Reserve Life); secondly to
the base dividend to our shareholders,
determined on a 40% underlying
earnings-based payout ratio.
A strong focus on capital discipline
All remaining capital is then allocated to
discretionary capital options in line with
strategic priorities, which include organic
and inorganic growth options, as well as
additional shareholder returns. In all cases,
discretionary projects are robustly assessed
against financial and non-financial metrics,
including their delivery of net-positive benefit
to our shareholders and the communities
in which we operate, and their ability to
improve and upgrade our portfolio in line with
the transition to a low carbon economy and
global consumer demand trends.
Capital allocation is prioritised to ensure we
maintain balance sheet flexibility, with our
near term objective to ensure the Group’s
net debt does not exceed 1.5 x underlying
EBITDA, using bottom of the cycle pricing,
without there being a clear plan to recover.
Further detail on balance sheet discipline
and our credit can be found on page 93.
Capital is allocated in support of the
execution of our strategy. Our Sustainable
Mining Plan outlines ambitious targets
that our projects must support to ensure a
healthy environment, thriving communities
and Anglo American’s position as a trusted
corporate leader.
▶ For more on our Sustainable Mining Plan
See page 46
Surplus capital is returned to shareholders
in the form of either special dividends or
through a share buyback programme.
During 2023, we have taken deliberate
action to right size our capital expenditure,
as part of our broader cost and capital
discipline efforts to improve cash generation.
Significant capital savings of c.$1.6 billion
were identified across 2024–2026, while still
prioritising the integrity of our operations and
investments in high quality organic growth
optionality in the portfolio.
Sustaining capital
We continue to focus on capital discipline
and sustaining capital efficiency, while
maintaining the operational integrity of all
our assets. Sustaining capital comprises
stay-in-business, capitalised development
and stripping, and life-extension expenditure,
less the proceeds from disposals of property,
plant and equipment.
p it a l
a
2. C
o
m
m
it
m
e
n
t
t
o
b
a
s
e
d
i
v
i
d
e
n
d
Balance sheet
flexibility
ustainin g c
r s
e
t
f
a
w
o
fl
h
s
a
C
.
1
3. Discretionary capi t a l
s
n
o p t i o
Future project
options
Portfolio
upgrade
Additional
shareholder returns
We expect sustaining capital expenditure
of c.$4.5 billion in 2024 to reduce to
c.$4.0 billion in 2026 as a result of the
cost out efforts. The 2024–2026 spend
includes our c.$0.6 billion share of the
remaining construction of the Collahuasi
desalination plant and $0.5–0.7 billion per
annum expenditure on life-extensions. Life-
extensions primarily relate to the ongoing
Venetia underground project at De Beers
and the underground development of our
Mogalakwena PGMs mine.
Commitment to base dividends
Our clear commitment to a sustainable
base dividend remains a critical part of the
overall capital allocation approach and is
demonstrated through our dividend policy
of a 40% payout ratio based on underlying
earnings, paid each half year.
Our dividend policy provides shareholders
with increased cash returns upon
improvement in earnings, while retaining
balance sheet flexibility during periods of
lower earnings.
Shareholder returns
In line with the Group’s established dividend
policy to pay out 40% of underlying earnings,
the Board has proposed a final dividend of
$0.41 per share (2022: $0.74 per share),
equivalent to $0.5 billion (2022: $0.9 billion).
Discretionary capital options
Strict value criteria are applied to the
assessment of Anglo American’s organic
growth options, which are strategically
focused on copper, crop nutrients and high
quality iron ore, and support our sustainability
commitments.
Capital allocation
For major greenfield projects, we will
sequence their development to prevent
overlap of peak construction and will look to
syndicate at the right time, for value.
Woodsmith is a large scale, long life, tier
one fertiliser project being developed in
north east England, with a final design
capacity of c.13 Mtpa of polyhalite ore,
subject to studies and approval. Polyhalite
is a naturally occurring mineral that, via a
simple granulation process, is converted to a
multi-nutrient product – POLY4 – an organic,
comparatively low carbon, environmentally
responsible crop nutrition solution that
contains four of the six key nutrients that
all plants need for healthy growth. The
project will add greater diversity and long
term value-adding growth to the portfolio,
in a low risk jurisdiction. Core infrastructure
activities of shaft sinking and tunnel boring
continue to progress well. In parallel, and as
previously communicated, we are enhancing
the project’s configuration to accommodate
higher production volumes of c.13 Mtpa,
an optimised phased development, and
to enable more efficient, scalable mining
methods over time. The required studies are
progressing well. Following conclusion of
the study programme, we expect the project
to be submitted for Board approval in the
first half of 2025, with first product to market
expected in 2027. Capital expenditure in
2023 was $0.6 billion and is expected to be
c.$0.9 billion in 2024.
We continue to progress permitting and
studies on organic growth opportunities,
primarily within our high quality copper
business, that will further enhance our
portfolio.
77
This new solar plant, and the hydrogen plant (nearing completion) it will supply, is making Mogalakwena
a strategically important centre for hydrogen production in South Africa’s developing hydrogen valley.
The recently commissioned fifth ball mill at
the independently managed joint operation,
Collahuasi, is the first step of this growth
pathway, adding c.15 ktpa, with ramp-up
expected to conclude in the second quarter
of 2024. Additional debottlenecking options
to further increase production remain under
study and are expected to add c.25 ktpa
(44% share) between 2025–2028. Further
expansions are in early-stage study to
increase plant capacity beyond 210 ktpd,
delivering up to c.150 ktpa of copper from
c.2032 (44% share).
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Strategic Report
Capital allocation
Allocating capital for a sustainable future
Our capital allocation process underpins
the execution of our strategy and our goal to
become a leader in sustainable mining – with
over 90% of our growth capital expenditure
allocated to future-enabling products.
Our major investments take into account the
potential future cost of carbon by embedding
forward-looking carbon price assumptions,
which are developed in conjunction
with leading external providers and are
differentiated by geography and time horizon,
into our multi-faceted investment decision
making considerations. The aim is to reflect
our best estimate of the level of carbon
pricing likely to prevail in the respective
jurisdictions over time. We forecast carbon
prices to be between $20 and $95 per tonne
on a 2023 real basis across regions by 2030.
This approach ensures that project returns
are evaluated on a realistic basis alongside
consideration of a project’s impact on carbon
abatement and portfolio resilience to the
effects of climate change.
Ensuring the continued resilience of our
portfolio to the physical impacts of a
changing climate is a key priority in our
allocation of capital. These investments, for
example in infrastructure related to managing
water where it is expected to become scarcer,
or where there is a risk of future disruption
due to flooding, are driven by our risk
management processes. These investments
are subject to the Group’s investment
evaluation criteria, and to independent
technical and financial assurance.
An example of how we tailor our approach
to capital allocation for our decarbonisation
goals is the sourcing of electricity. In
jurisdictions where there is a plentiful supply
of renewable power, we have negotiated
renewable power purchase agreements
with suppliers. More than 60% of our global
electricity supply will be sourced from
renewables from 2025 without significant
capital expenditure on power generation
infrastructure. The transition to these
renewable arrangements not only contributes
to our emissions reduction targets, but also
represents a significant source of economic
value given the increasingly competitive cost
of renewable energy and volatility of fossil-
based energy supply.
Where we deploy capital in pursuit of
sustainability goals, we seek to do so in a way
that, wherever possible, generates economic
returns, and we consider syndicating our
investment where appropriate. For example,
in partnership with EDF Renewables, we have
formed Envusa Energy to develop a regional
renewable energy ecosystem (RREE) in
South Africa. The ecosystem is expected to
meet our operational electricity requirements
in South Africa through the supply of 3–5 GW
of 100% renewable electricity (solar and
wind) and storage by 2030, with excess
electricity supplied to the grid to help improve
its capacity. The work is progressing well
and we expect to reach a key milestone
– financial close – on the three Koruson 2
(K2) projects in the first quarter of 2024. We
have provided for community participation
and secured project financing debt that
is consistent with high quality renewable
energy projects.
This syndicated structure will help manage
both our risk and total capital deployed,
while enabling a significant reduction in our
Scope 2 emissions.
▶ For more on Envusa
See pages 55–56
Capital expenditure
$ million
Stay-in-business
Development and stripping
Life-extension projects
Proceeds from disposal of property, plant and equipment
Sustaining capital
Growth projects
Total capital expenditure
2023
2,902
920
598
(16)
4,404
1,330
5,734
2022
2,558
1,010
582
(7)
4,143
1,595
5,738
Group capital expenditure
Capital expenditure remained in line with
prior year at $5.7 billion as higher sustaining
capital was offset by reduced growth capital.
Sustaining capital expenditure increased
to $4.4 billion (2022: $4.1 billion), driven
by additional stay-in-business expenditure
for Copper Chile related to the Collahuasi
desalination plant project, the new tailings
filtration plant for Minas-Rio (Iron Ore) in Brazil,
and increased expenditure at Quellaveco as
it transitioned into operations.
Growth capital expenditure of $1.3 billion
primarily related to the Woodsmith project
and the remaining spend on completing
Quellaveco. This was lower than the prior
year (2022: $1.6 billion) as the Quellaveco
project was successfully delivered in July
2022, and reached commercial production
levels in June 2023.
Managing risk effectively
The effective management of risk is integral to good management practice
and fundamental to living up to our Purpose and delivering our strategy. By
understanding, prioritising and managing risk, Anglo American safeguards
our people, our assets, our values and reputation, and the environment,
and identifies opportunities to best serve the long term interest of all our
stakeholders. As understanding our risks and developing appropriate
responses are critical to our future success, we are committed to an effective,
robust system of risk identification, and an effective response to such risks,
in order to support the achievement of our objectives.
How does risk relate to our strategy?
Risks can arise from events outside of our
control or from operational matters. Each of
the risks described on the following pages
can have an impact on our ability to deliver
our strategy.
Viability statement
Context
An understanding of our business model
and strategy is key to the assessment of our
prospects. Our strategy is to:
– Secure, develop and operate a portfolio
of high quality and long life assets safely,
effectively and efficiently to deliver
sustainable and competitive shareholder
returns
– Apply a clear set of technical, sustainability
and commercial capabilities to deliver
competitive advantage from the portfolio,
from discovery through to delivering
products to customers
– Create an inclusive and diverse working
environment to encourage and support a
high performance culture.
Details of our business model are found on
pages 8–9 and more information on our
strategy is provided on page 10.
Continued geopolitical and macro-
economic uncertainty were the key drivers
of the price volatility experienced across
our diversified product portfolio in 2023,
most pronounced in PGMs and diamonds
(predominantly driven by mix), contributed
to a 13% decrease in the Group’s realised
basket price across all products. Against
that background, the Board maintains a
cautious appetite for major new projects
and investments. Large greenfield projects
will be considered for syndication with
other investors at the appropriate stage of
a project’s development, and for value, as a
means of reducing our risk profile and capital
requirements.
The assessment process and key
assumptions
Assessment of the Group’s prospects is
based upon the Group’s strategy, its financial
plan and principal risks. During 2023, the
focus was on driving efficiencies through
regaining operational stability and targeted
incremental performance improvement,
upgrading the quality of our portfolio in order
to improve cash flow generation, maintaining
a strong balance sheet and creating
sustainable value through disciplined
allocation of capital.
A financial forecast covering the next three
years is prepared based on the context of the
strategic plan and is reviewed on a regular
basis to reflect changes in circumstances.
The financial forecast is based on a number
of key assumptions, the most important of
which include product prices, exchange
rates, estimates of production, production
costs and future capital expenditure. In
addition, although planned as part of the
ordinary course of business, the forecast
does not assume the renewal of existing debt
or the raising of new debt. A key component
of the financial forecast and strategic plan
is the life of asset plans created for each
operation, providing expected annual
production volumes over the anticipated
economic life of mine.
The principal risks are those that we believe
could prevent the Group from delivering its
strategic objectives. A number of these risks
are deemed catastrophic to the Group’s
prospects, including the impacts of a tailings
dam failure, fire and slope wall failure risks,
and have been considered as part of the
Group’s viability.
79
Assessment of viability
The assessment of viability has been made
with reference to the Group’s current position
and expected performance over a three-year
period, using budgeted product prices and
expected foreign exchange rates. Financial
performance and cash flows have then been
subjected to stress and sensitivity analysis
over the three-year period using a range of
severe, but plausible, downside scenarios.
Scenarios were selected for stress testing
based upon an assessment of the Group’s
principal risks, and each includes a risk
deemed catastrophic to the Group. Risks
chosen for modelling were those considered
to have the greatest financial impact upon
the Group’s financial statements, and have
been linked to the principal risks below. The
scenarios tested include:
– Phased product price reductions of up
to 30% from conservative budget prices
(Principal Risk 2)
– Operational incidents that have a
significant impact on production at key
sites in the Group (Principal Risks 1, 6
and 12)
– The impact of a cyber attack upon the
Group’s key information technology
systems (Principal Risks 3, 6 and 12)
– Market and product developments
affecting demand for diamonds (Principal
Risks 2 and 13)
– Technology developments in the
automobile industry affecting demand for
PGMs (Principal Risks 2 and 13)
– The impact of a reduction in water supply in
Chile, being a physical risk associated with
climate change (Principal Risks 7 and 10)
– Logistics constraints on certain operations
in South Africa impacting sales (Principal
Risk 12).
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Strategic Report
Managing risk effectively
The Group’s liquidity (defined as cash
and undrawn committed facilities) was
$13.2 billion, comprising cash and cash
equivalents of $6.1 billion (see note 21 to
the Consolidated financial statements), and
undrawn committed facilities of $7.2 billion
(see note 25 to the Consolidated financial
statements) as at 31 December 2023.
The most severe scenario considered by
management, albeit unlikely, considers
the combined financial impact of pricing
and production downsides throughout the
assessment period, and an operational
incident materialising at the start of the
assessment period. This scenario would
result in negative attributable free cash
flows over the assessment period. The
Group has a range of management actions
available in such a scenario to preserve
resilience, including accessing lines of credit
(including bank and debt capital markets),
reducing capital expenditure, reviewing
capital allocation and production profiles,
and raising debt while maintaining the
shareholder return policy.
Viability statement
The directors confirm they have a reasonable
expectation that the Group will continue in
operation and meet its liabilities as they fall
due for the next three years. This period has
been selected as the volatility in commodity
markets makes confidence in a longer
assessment of prospects highly challenging.
Emerging risks
We define an emerging risk as a risk that
may become a principal risk in time but is
not expected to materialise in the next five
years. Emerging risks that are currently being
monitored are:
– Failure to replace Ore Reserve depletion
in key businesses through exploration,
projects or acquisitions
– Liabilities incurred as a result of
environmental harm
– Failure to deliver certain elements of the
Sustainable Mining Plan, which could
cause reputational damage, threaten the
organisation’s licence to operate, affect
future growth, and may also result in
increased costs and a negative effect on
the Group’s financial results
– Unexpected mine-closure liabilities that
have the potential to increase costs.
The above risks are closely monitored and
actively managed to minimise their threat.
Principal risks
We define a principal risk as a risk or
combination of risks that would threaten
the business model, future performance,
solvency or liquidity of Anglo American. In
addition to these principal risks, we continue
to be exposed to other risks related to
currency, inflation, community relations,
environment, litigation and regulatory
proceedings, changing societal expectations,
infrastructure and human resources. These
risks are subject to our normal procedures to
identify, implement and oversee appropriate
mitigation actions, supported by internal
audit work to provide assurance over the
status of controls or mitigating actions. These
principal risks are considered over the next
three years as a minimum, but we recognise
that many of them will be relevant for a longer
period. The principal risks and uncertainties
facing the Group are unchanged from those
reported in 2022.
– Future demand for metals and minerals
deviating from assumptions as a result of
efforts to reduce global warming
▶ For more on principal risks
See pages 81–85
Catastrophic risks
We also face certain risks that we deem
catastrophic risks. These are very high
severity, very low likelihood events that could
result in multiple fatalities or injuries, an
unplanned fundamental change to strategy
or the way we operate, and have significant
financial consequences. We do not consider
likelihood when assessing these risks, as the
potential impacts mean these risks must be
treated as a priority. Catastrophic risks are
included as principal risks.
▶ For more on catastrophic risks
See page 81
Risk appetite
We define risk appetite as ‘the nature and
extent of risk Anglo American is willing
to accept in relation to the pursuit of its
objectives’. We look at risk appetite from
the context of severity of the consequences
should the risk materialise, any relevant
internal or external factors influencing the risk,
and the status of management actions to
mitigate or control the risk. A scale is used to
help determine the limit of appetite for each
risk, recognising that risk appetite will change
over time.
If a risk exceeds appetite, it will threaten
the achievement of objectives and may
require a change to strategy. Risks that are
approaching the limit of the Group’s risk
appetite may require management actions
to be accelerated or enhanced to ensure the
risks remain within appetite levels.
For catastrophic and operational risks, our
risk appetite for exceptions or deficiencies
in the status of our controls that have safety
implications is very low. Our internal audit
programme evaluates these controls with
technical experts at operations and the
results of that audit work will determine
the risk appetite evaluation, along with
the management response to any issues
identified.
▶ For more on the risk management and internal control
systems and the review of their effectiveness
See pages 176–177
Summary
Our risk profile evolved in 2023, mainly due to
external factors. Macro-economic uncertainty
remained as a result of the Russia – Ukraine
conflict, global inflation and weak economic
growth in key markets. The regulatory
environment in which we operate remains
impacted by political and societal changes
in key countries, which could affect future
production and delay the deployment of new
technologies to support future production
and sustainability objectives. Operationally,
reliance on third-party infrastructure
and power supply remain ongoing risks,
particularly in South Africa. Climate change
remains one of the defining challenges of
our era and our unequivocal commitment to
being part of the global response presents
both opportunities and risks. A number of
our principal risks are directly or indirectly
related to climate change and our strategies
to reduce its impact on our business, and the
planet.
Our catastrophic risks are the highest priority
risks, given the potential consequences.
Principal risks
Pillars of value
Safety and health
Socio-political
Production
Financial
Environment
People
Cost
81
1. Catastrophic and natural catastrophe risks
2. Product prices
3. Cybersecurity
We are exposed to the following risks we deem as potentially
catastrophic: tailings dam failure; geotechnical failure;
mineshaft failure; and fire and explosion.
Root cause: Any of these risks may result from inadequate
design or construction, adverse geological conditions,
shortcomings in operational performance, natural events
such as seismic activity or flooding, and failure of structures or
machinery and equipment.
Impact: Multiple fatalities and injuries, damage to assets,
environmental damage, production loss, reputational
damage and loss of licence to operate. Financial costs
associated with recovery and liability claims may be
significant. Regulatory issues may result and community
relations may be affected.
Mitigation: Technical standards exist that provide minimum
criteria for design and operational performance requirements,
the implementation of which is regularly inspected by
technical experts. Additional assurance work is conducted to
assess the adequacy of controls associated with these risks.
Risk appetite: Operating within the limits of our appetite.
Commentary: These very high impact but very low frequency
risks are treated with the highest priority.
Pillars of value:
Global macro-economic conditions leading to sustained low
product prices and/or volatility.
Root cause: Factors that could contribute to this risk include
a deep and protracted slowdown in economic growth,
armed conflict involving major world powers, trade wars
between major economies and a disrupted recovery from the
Covid-19 pandemic.
Impact: Low product prices can result in lower levels of cash
flow, profitability and valuation. Debt costs may rise owing to
ratings agency downgrades and the possibility of restricted
access to funding. The Group may be unable to complete
any divestment programme within the desired timescales or
achieve expected values. The capacity to invest in growth
projects is constrained during periods of low product prices –
which may, in turn, affect future performance.
Mitigation: Maintaining a conservative balance sheet,
proactive management of debt and the delivery of cash
improvement and operational performance targets are
the key mitigation strategies for this risk. Regular updates
of economic analysis and product price assumptions are
discussed with the Executive Leadership Team and Board.
Loss or harm to our technical infrastructure and the use
of technology within the organisation from malicious or
unintentional sources.
Root cause: Attacks motivated by fraud, ransomware, and/or
access to sensitive data or information.
Impact: Theft or loss of intellectual property, financial losses,
increased costs, reputational damage, operational disruption
and compromise of safety systems.
Mitigation: We have a dedicated Global Information
Management Security team with appropriate specialist
third-party support to oversee our network security. We
have aligned to the internationally recognised NIST
Cybersecurity Framework, as well as ISO 27001 in sensitive
areas. Additionally, we employ the IRAM2 risk assessment
methodology to large scale projects and maintain an
ongoing cyber awareness programme across the Group.
Risk appetite: Operating within the limits of our appetite.
Commentary: During 2023, our controls responded as
planned and no cyber attack attempt resulted in significant
impacts for Anglo American.
Risk appetite: Operating within the limits of our appetite.
Pillars of value:
Commentary: Macro-economic conditions remain uncertain;
that may result in price volatility in the products mined, and
marketed, by Anglo American.
Pillars of value:
Strategic Report Integrated Annual Report 2023Anglo American plc 82
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Strategic Report
Principal risks
4. Political
Political decisions, events or conditions in locations where
Anglo American operates or transacts could affect our ability
to conduct normal business and meet anticipated profit or
performance targets.
Root cause: Geopolitical disputes between major economic
countries, regional and national political tensions. The
effectiveness of national governance in countries in which
we operate may be compromised by corruption, weak policy
framework and ineffective enforcement of the law.
Impact: Global supply chains may be impacted by the threat
of or actual disputes between major economies. Regional
and national political tensions may result in social unrest
affecting our operations and employees. Uncertainty over
future business conditions leads to a lack of confidence in
making investment decisions, which can influence future
financial performance. Increased costs can be incurred
through additional regulations or economic contributions to
government, while the ability to execute strategic initiatives
that reduce costs or divest assets may also be restricted, all of
which may reduce profitability and affect future performance.
These may adversely affect the Group’s operations or
performance of those operations.
Mitigation: Anglo American has an active engagement
strategy with governments, regulators and other stakeholders
within the countries in which we operate, or plan to operate,
as well as at an international level. We make significant
efforts to contribute to public policy objectives such as socio-
economic development to demonstrate the broader value
of our presence. We assess portfolio capital investments
against political risks and avoid or minimise exposure to
jurisdictions with unacceptable risk levels. We actively monitor
regulatory and political developments at a national level, as
well as global themes and international policy trends, on a
continuous basis. See pages 16–19 for more detail on how
we engage with our key stakeholders.
Risk appetite: Operating within the limits of our appetite.
Commentary: Global economic conditions can have a
significant impact on countries whose economies are
exposed to mining products, placing greater pressure on
governments to find alternative means of raising revenues,
and increasing the risk of social and labour unrest.
Pillars of value:
5. Community and social relations
Failure to maintain healthy relationships with local
communities and society at large.
Root cause: Failure to identify, understand and respond to
community and societal needs and expectations.
Impact: A breakdown in trust with local communities and
society at large threatens Anglo American’s licence to
operate, potentially leading to increased costs, future growth
being impacted, business interruption and reputational
damage.
Mitigation: The Anglo American Social Way is our integrated
management system for social performance, adopted
and implemented at all managed sites. In addition, the
commitments we have made as part of the Thriving
Communities pillar of our Sustainable Mining Plan will deliver
tangible and valued benefits to host communities.
Risk appetite: Operating within the limits of our appetite.
Commentary: Through the Social Way, we ensure that
policies and systems are in place at all Anglo American
managed sites to support effective engagement with
communities, avoid or minimise adverse social impacts, and
maximise development opportunities. For further information
on how we engage with key stakeholders, see pages
16–19. For more information on our Sustainable Mining Plan
commitments, see page 46.
Pillars of value:
Principal risks
83
Pillars of value
Safety and health
Socio-political
Production
Financial
Environment
People
Cost
6. Safety
Failure to eliminate fatalities.
Root cause: Fatalities may result from operational leaders,
employees and contractors failing to apply safety rules
and poor hazard identification and control, including
non-compliance with critical controls.
Impact: A fatal incident is devastating for the bereaved
family, friends and colleagues. Over the longer term, failure
to provide a safe working environment threatens our licence
to operate.
Mitigation: All operations continue to implement safety
improvement plans, with a focus on: effective management
of critical controls required to manage significant safety
risks; learning from high potential incidents and hazards;
embedding a safety culture; and leadership engagement
and accountability. Our Elimination of Fatalities Taskforce
oversees targeted improvement initiatives to further improve
safety performance.
Risk appetite: Operating within the limits of our appetite.
Commentary: During 2023, there were three work-related
fatalities in our managed operations. Management remains
fully committed to the elimination of fatalities.
Pillars of value:
7. Climate change
8. Corruption
Climate change is one of the defining challenges of our era
and our commitment to being part of the global response
presents both opportunities and risks.
Root cause: We are committed to the alignment of our
portfolio with the needs of a low carbon world in a responsible
manner; however, different stakeholder expectations
continue to evolve and may not always be aligned. Long
term demand for metals and minerals mined and marketed
by Anglo American may deviate from assumptions based
on climate change abatement initiatives. Changing weather
patterns and an increase in extreme weather events may
impact operational stability and our local communities. Our
Scope 1 and 2 carbon emission reduction targets are partly
reliant on new technologies that are at various stages of
development, and our Scope 3 reduction ambition is reliant
on the adoption of greener technologies in the steelmaking
industry.
Bribery or other forms of corruption committed by an
employee or agent of Anglo American.
Root cause: Anglo American has operations in some
countries where there is a higher prevalence of corruption.
Impact: Potential criminal investigations, adverse media
attention and reputational damage. A possible negative
impact on licensing processes and valuation.
Mitigation: A comprehensive anti-bribery and corruption
policy and programme, including risk assessment, training
and awareness, with active monitoring, are in place.
Risk appetite: Operating within the limits of our appetite.
Commentary: A Group Compliance Committee oversees the
organisation’s anti-bribery management system to ensure its
continuing suitability, adequacy and effectiveness.
Impact: Potential loss of stakeholder confidence, negative
impact on reputation, financial performance and valuation.
Pillars of value:
Mitigation: We have articulated our climate change plans,
policies and progress and engage with key stakeholders to
ensure they understand them. Our Sustainable Mining Plan
includes operation-specific and Group targets for reductions
in carbon emissions, power and water usage.
Risk appetite: Operating within the limits of our appetite.
Commentary: For more information on our Sustainable
Mining Plan and approach to climate change, see pages 46
and 49–57, and for further information on how we engage
with key stakeholders, see pages 16–19.
Pillars of value:
Strategic Report Integrated Annual Report 2023Anglo American plc 84
Anglo American plc
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Strategic Report
Principal risks
9. Regulatory and permitting
10. Water
11. Pandemic
Failure to comply with permitting and other mining
regulations.
Root cause: Regulations impacting the mining industry are
evolving as a result of political developments, changes in
societal expectations and the public perception of mining
activities. Failure to comply with management processes will
threaten the ability to adhere to regulations and permits.
Impact: Delays to projects and disruption to existing
operations may impact future production, delays in
deploying new technologies that support future growth and
sustainability objectives, legal claims and regulatory actions,
fines and reputational damage.
Mitigation: All operations must comply with our Minimum
Permitting Requirements, which is a management system to
ensure necessary permits and other regulatory requirements
are identified and embedded in life of asset plans and
management routines. Through our Sustainable Mining Plan,
we make considerable efforts to meet community aspirations
for socio-economic development and carefully manage the
environmental impacts of our business to avoid causing harm
and nuisance.
Risk appetite: Operating within the limits of our appetite.
Commentary: Annual assessments of compliance with
the Anglo American Minimum Permitting Requirements are
undertaken, as well as periodic independent audits.
Pillars of value:
Inability to obtain or sustain the level of water security
needed to support operations over the current life of asset
plan or future growth options.
Root cause: Poor water resource management or
inadequate on site storage, combined with reduced water
supply at some operations as weather patterns change,
can affect production. Water is a shared resource with local
communities and permits to use water in our operations are
at risk if we do not manage the resource in a responsible and
sustainable manner.
Impact: Loss of production and inability to achieve cash flow
or volume improvement targets. Damage to stakeholder
relationships or reputational damage can result from failure to
manage this critical resource.
Mitigation: Various projects have been implemented at
operations most exposed to this risk, focused on: water
efficiency; water security; water treatment; and discharge
management; as well as alternative supplies. New
technologies are being developed that will reduce water
demand.
Risk appetite: Operating within the limits of our appetite.
Commentary: This continues to be a risk to the majority of our
operations. For more information on our Sustainable Mining
Plan, see page 46.
Pillars of value:
Large scale outbreak of infectious disease increasing
morbidity and mortality over a wide geographic area.
Root cause: Human population growth, urbanisation,
changes in land use, loss of biodiversity, exploitation of
the natural environment, viral disease from animals, and
increased global travel and integration are all contributory
causes of health pandemics.
Impact: As has been witnessed by the Covid-19 pandemic,
widespread consequences include the physical and mental
health and well-being of our people and local communities;
economic shocks and disruption; social unrest; an increase in
political stresses and tensions; a rise in criminal acts; and the
potential for increased resource nationalism.
Mitigation: Anglo American actively monitors global
pandemic-potential diseases. In the event of a pandemic, our
Group Crisis Management Team is activated at an early stage
to direct the Group’s response, prioritising the well-being
of our people, their families and our host communities, and
ensuring the continuity of the operations.
Risk appetite: Operating within the limits of our appetite.
Commentary: For more information on how we support the
health and well-being of our workforce, see pages 68–70.
Pillars of value:
Principal risks
85
Pillars of value
Safety and health
Socio-political
Production
Financial
Environment
People
Cost
12. Operational performance
13. Future demand
Unplanned operational stoppages affecting production and
profitability.
Demand for metals and minerals produced and marketed by
Anglo American may deviate from our assumptions.
Root cause: We are exposed to risks of interruption to power
supply and the failure of critical third-party owned and
operated infrastructure; e.g. rail networks and ports. Failure
to implement and embed our Operating Model, maintain
critical plant, machinery and infrastructure, and operate in
compliance with Anglo American’s Technical Standards, will
affect our performance levels. Our operations may also be
exposed to natural catastrophes and extreme weather
events.
Impact: Inability to achieve production, cash flow or
profitability targets. There are potential safety-related risks
associated with unplanned operational stoppages, along
with a loss of investor confidence.
Mitigation: We maintain ongoing engagement with critical
power and infrastructure suppliers and have appropriate
business continuity and emergency preparedness plans.
Implementation of our Operating Model and compliance
with Technical Standards, supported by operational risk
management and assurance processes, are key to the
mitigation against this risk. Regular tracking and monitoring
of progress against the underlying production plans is
undertaken.
Root cause: Technological developments and/or product
substitution leading to reduced demand, growth in the
circular economy and shifts in consumer preferences.
Impact: Potential for negative impact on revenue, cash flow,
profitability and valuation.
Mitigation: Regular reviews of production and financial plans,
as well as longer term portfolio decisions, are based on
extensive research. Our businesses invest in marketing and
other activities to enhance the inherent value of the products
we produce, including building consumer confidence in the
ethical provenance of our products.
Risk appetite: Operating within the limits of our appetite.
Commentary: We monitor new business opportunities in line
with our strategy to secure, develop and operate a portfolio
of high quality and long life mineral assets, from which we will
deliver leading shareholder returns. Our Ethical Value Chain
commitments within the Trusted Corporate Leader pillar of
our Sustainable Mining Plan ensure we operate in line with
stakeholder expectations for responsible mining. For more
information on our ethical value chains and responsible
mining certification, see pages 64–65.
Risk appetite: Operating within the limits of our appetite.
Pillars of value:
Commentary: In 2023, some of our operations in South Africa
were impacted by power outages, water supply issues and
logistics constraints.
Pillars of value:
Strategic Report Integrated Annual Report 2023Anglo American plc 86
Anglo American plc
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Strategic Report
Key performance indicators
Safety and health
Strategic element: Innovation, People
Environment
Strategic element: Innovation
Work-related
fatal injuries(8)
Target: Zero
ER
Total recordable injury
frequency rate(8)
ER
New cases of
occupational disease(8)
Target: Year-on-year reduction
Target: Year-on-year reduction
GHG emissions(8)
ER
Energy consumption(8)
ER
Target: Reduce absolute emissions by
30% by 2030, relative to 2016 baseline
Target: Improve energy efficiency by
30% by 2030, relative to 2016 baseline
Number of work-related
fatal injuries
TRIFR
NCOD
Measured in million tonnes
of CO2 equivalent emissions
Measured in million GJ
Workforce noise
exposure(8)
ER
Workforce inhalable
hazard exposure(8)
ER
Target: Year-on-year reduction
Target: Year-on-year reduction
Fresh water withdrawals(8)
ER
Target: Reduce the absolute withdrawal
of fresh water in water scarce areas by
50%, relative to the 2015 baseline
Level 4-5
environmental incidents(8)
Target: Zero
Employees potentially exposed to
noise > 85 dBA
Employees potentially exposed to
inhalable hazards over OEL
Measured in million ML
Number of Level 4-5
environmental incidents
▶ For full description and calculation methodology
See pages 316–317
ER
KPIs with this symbol are linked to executive remuneration; for more
information, see the Remuneration report on pages 178–211.
32224202320222021202020191.782.192.242.142.21202320222021202020191551630392023202220212020201919,17323,17930,83233,25329,598202320222021202020195333171,7961,9942,1512023202220212020201938,04035,91036,88837,24742,52720232022202120202019000002023202220212020201912.513.314.515.416.920232022202120202019898384788320232022202120202019
Key performance indicators
87
Socio-political
Strategic element: Innovation
People
Strategic element: People
Social Way
implementation(9)
Target: Full implementation of the Social
Way by end 2022
Taxes and royalties borne
and taxes collected(3)
Voluntary labour turnover
Women in management
Target: <5%
Target: 33% by 2023
In 2023, 73% of Social Way
requirements fulfilled
Spend in $ billion
Percentage of full-time employees
Women in management
(B5 and above) (%)
Jobs supported off site(10)
ER
Local procurement(4)
Women in workforce
Cumulative number of jobs
supported off site
Spend in $ billion
Women as a percentage
of total workforce
Strategic Report Integrated Annual Report 2023Anglo American plc139,308114,534104,86092,39720232022202120205.15.97.13.820232022202120207366492320232022202120203.53.63.52.82.92023202220212020201934323127242023202220212020201926242323212023202220212020201913.013.610.010.09.120232022202120202019 88
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Key performance indicators
Production
Production volumes
Copper equivalent production 2023 vs 2022: 2% increase
Strategic element: Portfolio, Innovation
Copper – thousand tonnes
Nickel – thousand tonnes
PGMs – thousand ounces (5E+Au)
De Beers – million carats (100%
production)
Iron ore (Kumba) – million tonnes
(wet basis)
Iron ore (Minas-Rio) – million
tonnes (wet basis)
Steelmaking coal (export coking
and PCI) – million tonnes
31.934.632.325.130.8202320222021202020198266646476476382023202220212020201940.039.841.743.542.6202320222021202020193,8064,0244,2993,8094,4412023202220212020201935.737.740.937.643.12023202220212020201924.221.622.924.123.12023202220212020201916.015.014.916.822.920232022202120202019 Key performance indicators
89
Cost
Strategic element: Portfolio, Innovation
Financial
Strategic element: Portfolio, Innovation
Unit cost of production
Copper equivalent unit cost 2023 vs 2022: 4% increase in $ terms
Attributable return on
capital employed (ROCE)
ER
Underlying earnings per
share (EPS)
ER
Copper – c/lb
Nickel – c/lb
PGMs – $/PGM ounce
Group attributable ROCE (%)
Group underlying EPS – $
De Beers – $/carat
Kumba – $/tonne (wet basis)
Iron Ore Brazil – $/tonne (wet basis)
Attributable free
cash flow(11)
ER
Group attributable free cash flow
($ billion)
Steelmaking Coal – $/tonne
Strategic Report Integrated Annual Report 2023Anglo American plc715958576320232022202120202019414039313320232022202120202019333524212120232022202120202019121107105866320232022202120202019166154120113126202320222021202020195415133773343802023202220212020201996893786871370520232022202120202019163043171920232022202120202019(1.4)1.67.81.22.3202320222021202020192.424.977.222.532.7520232022202120202019 90
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Group financial review
Anglo American’s profit attributable to equity shareholders
decreased to $0.3 billion (2022: $4.5 billion). Underlying earnings
were $2.9 billion (2022: $6.0 billion), while operating profit was
$3.9 billion (2022: $9.2 billion).
Financial performance
Underlying EBITDA◊ ($ billion)
Operating profit ($ billion)
Production volumes increased by 2% on a
copper equivalent basis, primarily driven by
the ramp-up of our Quellaveco copper mine
in Peru, a strong operational performance
at our Minas-Rio iron ore operation in Brazil,
as well as higher production from our
Steelmaking Coal operations in Australia.
Production was lower at De Beers, as the
Venetia mine transitions from open pit to
underground operations, and at PGMs
due to lower production from the Kroondal
joint operation (now sold) and planned
infrastructure closures at Amandelbult. Lower
grades impacted production at Los Bronces
(Copper Chile).
Underlying EBITDA◊
Group underlying EBITDA decreased
by $4.5 billion to $10.0 billion (2022:
$14.5 billion) due to lower commodity
prices and inflationary cost pressures,
which increased our input costs. As a result,
the Group Mining EBITDA margin of 39%
was lower than the prior year (2022: 47%).
A reconciliation of ‘Profit before net finance
costs and tax’, the closest equivalent IFRS
measure to underlying EBITDA, is provided
within note 2 to the Consolidated financial
statements.
Underlying earnings◊ ($ billion)
Profit attributable to equity shareholders of the Company
($ billion)
Basic underlying earnings per share◊ ($)
Basic earnings per share ($)
Total dividend per share ($)
Group attributable ROCE◊
Underlying EBITDA reconciliation 2022–2023
$ billion
2023
10.0
3.9
2.9
0.3
2.42
0.23
0.96
16%
2022
14.5
9.2
6.0
4.5
4.97
3.72
1.98
30%
14.5(4.8)1.0(0.7)(0.1)0.110.02022PriceForexInflationNet cost and volumeOther2023 Underlying EBITDA◊ by segment
Reconciliation from underlying EBITDA◊ to underlying earnings◊
Group financial review
Copper
Nickel
PGMs
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Total
2023
3,233
133
1,209
72
4,013
1,320
231
(60)
(193)
9,958
4,417
1,417
3,455
2,749
378
(44)
(440)
14,495
Price
Average market prices for the Group’s
basket of products decreased by 13%
compared to 2022, reducing underlying
EBITDA by $4.8 billion. The PGMs basket
price decreased by 35%, primarily driven by
rhodium and palladium, which decreased
by 58% and 37% respectively. Alongside
this, the weighted average realised price
for steelmaking coal reduced by 14%,
and the De Beers consolidated average
realised price for diamonds fell by 25%,
predominantly driven by mix.
Foreign exchange
Favourable foreign exchange benefited
underlying EBITDA by $1.0 billion, primarily
reflecting the favourable impact of the
weaker South African rand on costs.
Inflation
The Group’s weighted average CPI was 5%
in 2023 as inflation continued to increase in
all regions, albeit lower than the 8% in 2022.
The impact of CPI inflation on costs reduced
underlying EBITDA by $0.7 billion (2022:
$0.9 billion).
Net cost and volume
The net impact of cost and volume was a
$0.1 billion decrease in underlying EBITDA,
driven by lower sales volumes at De Beers
due to weaker market sentiment, and
lower sales at Copper Chile primarily as a
result of lower grades and ore hardness at
Los Bronces impacting production and costs.
In addition, above-CPI inflationary pressures
contributed to higher costs across the Group,
particularly in South Africa at both PGMs
and Kumba. These were largely offset by
the ramp-up of volumes at Quellaveco and
improved sales at Minas-Rio due to higher
production volumes.
Underlying earnings◊
Group underlying earnings decreased to
$2.9 billion (2022: $6.0 billion), driven by
the lower underlying EBITDA, partly offset
by a corresponding decrease in income
tax expense and earnings attributable to
non-controlling interests.
2022
2,182
Underlying EBITDA◊
381
Depreciation and amortisation
Net finance costs and income tax expense
Non-controlling interests
Underlying earnings◊
Depreciation and amortisation
Depreciation and amortisation
increased by 10% to $2.8 billion (2022:
$2.5 billion), largely due to Quellaveco
commencing commercial production in June
2023, as well as a higher carrying value
of our Steelmaking Coal assets due to the
impairment reversal recognised in 2022.
Net finance costs and income tax expense
Net finance costs, before special items
and remeasurements, were $0.6 billion
(2022: $0.3 billion). The increase was
principally driven by the impact of higher
floating interest rates on the Group’s
interest expenses.
The underlying effective tax rate (ETR)
was higher than the prior year at 38.5%
(2022: 34.0%), impacted by the relative levels
of profits arising in the Group’s operating
jurisdictions as well as the revaluation
of deferred taxes in Chile following the
enactment of the Mining Royalty Bill during
the year, which contributed a 1.2 percentage
point increase to the Group’s ETR. The tax
charge for the year, before special items and
remeasurements, was $2.3 billion (2022:
$3.6 billion), reflecting lower profit before tax.
91
2022
14,495
(2,532)
(4,307)
(1,620)
6,036
2023
9,958
(2,790)
(3,126)
(1,110)
2,932
Non-controlling interests
The share of underlying earnings attributable
to non-controlling interests of $1.1 billion
(2022: $1.6 billion) principally relates to
minority shareholdings in Kumba (Iron Ore),
Copper and PGMs.
Special items and remeasurements
Special items and remeasurements (after
tax and non-controlling interests) are a net
charge of $2.6 billion (2022: net charge
of $1.5 billion), principally relating to the
impairments after tax and non-controlling
interests of $1.6 billion recognised in
De Beers and $0.5 billion recognised in
Barro Alto (Nickel).
Full details of the special items and
remeasurements recorded are included
in note 9 to the Consolidated financial
statements.
Strategic Report Integrated Annual Report 2023Anglo American plc 92
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Group financial review
Net debt◊
$ million
Opening net debt◊ at 1 January
(6,918)
Underlying EBITDA◊ from subsidiaries and joint operations
Working capital movements
Other cash flows from operations
Cash flows from operations
Capital repayments of lease obligations
Cash tax paid
Dividends from associates, joint ventures and financial asset
investments
Net interest(1)
Dividends paid to non-controlling interests
Sustaining capital expenditure
Sustaining attributable free cash flow◊
Growth capital expenditure and other(2)
Attributable free cash flow◊
Dividends to Anglo American plc shareholders
Acquisitions and disposals
Foreign exchange and fair value movements
Other net debt movements(3)
Total movement in net debt◊
Closing net debt◊ at 31 December
2023
9,241
(1,167)
41
8,115
(309)
(2,001)
382
(727)
(978)
(4,404)
78
(1,463)
(1,385)
(1,564)
200
21
(969)
(3,842)
2022
13,370
(2,102)
621
11,889
(266)
(2,726)
602
(253)
(1,794)
(4,143)
3,309
(1,724)
1,585
(3,549)
564
(238)
(1,438)
(3,697)
(10,615)
(3,076)
(6,918)
(1)
Includes cash outflows of $403 million (2022: outflows of $14 million), relating to interest payments on derivatives hedging net debt, which are included in cash
flows from derivatives related to financing activities. For more information, please refer to note 21 to the Consolidated financial statements.
(2) Growth capital expenditure and other includes $133 million (2022: $129 million) of expenditure on non-current intangible assets.
(3)
Includes the purchase of shares (including for employee share schemes) of $274 million; Mitsubishi’s share of Quellaveco capital expenditure of $129 million;
other movements in lease liabilities (excluding variable vessel leases) increasing net debt by $120 million; and contingent and deferred consideration paid in
respect of acquisitions completed in previous years of $128 million. 2022 includes the purchase of shares under the 2021 buyback programme of $186 million;
the purchase of shares for other purposes (including for employee share schemes) of $341 million; Mitsubishi’s share of Quellaveco capital expenditure of
$446 million; other movements in lease liabilities (excluding variable vessel leases) decreasing net debt by $33 million; and contingent and deferred
consideration paid in respect of acquisitions completed in previous years of $165 million.
Net debt◊
Net debt (including related derivatives)
of $10.6 billion increased by $3.7 billion
since 31 December 2022, which includes
a working capital cash outflow of
$1.2 billion, primarily due to a reduction in
payables. The Group generated sustaining
attributable free cash flow of $0.1 billion.
Further funding includes growth capital
expenditure of $1.3 billion and dividends
paid to Anglo American plc shareholders of
$1.6 billion. Net debt at 31 December 2023
represented gearing (net debt to total
capital) of 25% (2022: 17%). Net debt to
EBITDA ratio of 1.1x (2022: 0.5x) remains
well within our target range of <1.5x at the
bottom of the cycle.
Cash flow
Cash flows from operations
Cash flows from operations decreased to
$8.1 billion (2022: $11.9 billion), reflecting
a reduction in underlying EBITDA from
subsidiaries and joint operations, and
a working capital build of $1.2 billion
(2022: build of $2.1 billion). Payables
reduced by $0.8 billion, largely driven by
the impact of lower PGM prices on the
valuation of the Purchase of Concentrate
(POC) creditor as well as the PGM customer
prepayment. Receivables increased by
$0.4 billion led by higher price and volume
across Iron Ore and Copper. Inventory
was flat in the year, with price and volume
led reductions at PGMs offsetting a build
at De Beers driven by weak demand for
diamonds and the impact of logistics
constraints on Kumba’s inventory levels.
Bond maturity profile
$ billion
93
Capital expenditure
Capital expenditure remained in line with
prior year at $5.7 billion as higher sustaining
capital was offset by reduced growth capital.
▶ For more detail on capital expenditure
See page 78
Attributable free cash flow◊
The Group’s attributable free cash flow
decreased to an outflow of $1.4 billion
(2022: inflow of $1.6 billion), mainly
due to lower cash flows from operations
of $8.1 billion (2022: $11.9 billion) and
an increase in net interest to $0.7 billion
(2022: $0.3 billion). This was partially offset
by decreased tax payments of $2.0 billion
(2022: $2.7billion) and a reduction in
dividends paid to non-controlling interests
to $1.0 billion (2022: $1.8 billion).
Shareholder returns
In line with the Group’s established dividend
policy to pay out 40% of underlying earnings,
the Board has proposed a final dividend of
$0.41 per share (2022: $0.74 per share),
equivalent to $0.5 billion (2022: $0.9 billion).
Acquisitions and disposals
Net cash inflows on disposals of $0.2 billion
principally relate to the settlement of the
deferred consideration balance relating to
the sale of the Rustenburg operations (PGMs)
completed in November 2016.
Balance sheet
Net assets decreased by $2.3 billion
to $31.6 billion (2022: $34.0 billion),
reflecting dividend payments to Company
shareholders and non-controlling interests
as well as foreign exchange movements,
partially offset by the profit in the year,
which was impacted by the impairments
at De Beers and Nickel.
Group financial review
Attributable ROCE◊
Attributable ROCE decreased to 16%
(2022: 30%). Attributable underlying EBIT
decreased to $5.4 billion (2022: $9.7 billion),
reflecting the impact of lower realised prices
for the Group’s products and inflationary
cost pressures. Average attributable
capital employed increased to $33.2 billion
(2022: $32.0 billion), primarily due to capital
expenditure, largely at Quellaveco and
Collahuasi (Copper), and shipping vessel
lease additions and revaluations (Corporate
and Other), partly offset by the reduction in
capital employed following the De Beers and
Nickel impairments recorded in 2023.
Liquidity and funding
Group liquidity stood at $13.2 billion (2022:
$16.1 billion), comprising $6.1 billion of cash
and cash equivalents (2022: $8.4 billion) and
$7.2 billion of undrawn committed facilities
(2022: $7.7 billion).
During the first half of 2023, the Group issued
$2.0 billion of bond debt. In March 2023, the
Group issued €500 million 4.5% Senior Notes
due 2028, €500 million 5.0% Senior Notes
due 2031 and, in May 2023, $900 million
5.5% Senior Notes due 2033. These were
swapped to US dollar floating interest rate
exposures in line with the Group’s policy.
Consequently, the weighted average maturity
on the Group’s bonds was broadly in line with
the prior year at 7.4 years (2022: 7.7 years).
In the second half of 2023, the Group
refinanced its $4.7 billion revolving credit
facility maturing in March 2025, to a one year
$1 billion facility maturing in November 2024,
and a $3.7 billion five year facility maturing in
November 2028.
Strategic Report Integrated Annual Report 2023Anglo American plc0.71.20.61.51.20.91.80.50.70.50.80.50.50.9Existing bondsNew issuance202420252026202720282029203020312032203320502052 94
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Integrated Annual Report 2023
Strategic Report
Copper
From our three mining operations in Chile
and our newly commissioned Quellaveco
mine in Peru, we produce copper, essential to
modern living and the future of clean energy
and transport. Our products include copper
concentrate, copper cathode and associated
by-products such as molybdenum and silver.
Management team
Ruben Fernandes
Regional Director, Americas
Patricio Hidalgo
CEO, Anglo American, Chile
Adolfo Heeren
CEO, Anglo American, Peru
Quellaveco
Collahuasi
El Soldado
Los Bronces
Chagres
Sakatti
Finland
Chile and Peru
Key
Copper operations
Early-stage project
Smelter
Copper Chile
Copper
2023 summary
2
Fatalities
1.14
TRIFR
$1,452 m
Underlying EBITDA
31%
Mining EBITDA margin
507 kt
Production volume
On-site monitoring stations help to build a comprehensive picture of environmental conditions facing
our operations.
Predictive environmental monitoring
– shaping a new era for mining
Today, mining and processing operations
are far safer, cleaner and less polluting than
they were just a few years ago. Much of
this can be attributed to the development
and widespread adoption of digital
technologies which provide operators
with dynamic new tools to predict and
mitigate risks, while also being able to
continuously monitor mining’s impact on
the environment.
Predictive environmental monitoring (PEM)
is a form of data management to identify
trends and patterns to predict future
environmental outcomes. It is proving to
be a valuable tool to assist in maintaining
compliance with increasingly stringent
environmental legislation, as well as in
anticipating, and consequently avoiding or
minimising, production-related constraints.
Improving operational and environmental
outcomes at Chagres
At our Chagres copper smelter in Chile,
PEM allows control-room operators to input
a range of climate, environmental and
operational information, collected from
our internal monitoring stations. They are
then able to apply data analytics, machine
learning and artificial intelligence (AI)
tools to create a comprehensive picture of
conditions facing the operation, and then
build predictive models of future effects.
95
One of PEM’s many benefits is that day-
to-day mining operations can be planned
more accurately. This has brought greater
certainty and stability to our processes, and
has led to a significant reduction in copper
production losses.
Patricio Rojas, smelting superintendent,
comments: “Because most copper-
ores are sulphur-based, their smelting
releases sulphur dioxide (SO2), which has
many harmful effects, along with noxious
particulate matter. At Chagres, therefore,
a key aim is to reduce dust emissions at
source so that they do not spread to the
surrounding communities and agricultural
areas. Since implementing PEM, we
have not had to shut down the smelter
due to environmental conditions, or any
exceedances in our emissions. And,
importantly, being able to better manage,
and reduce, environmental dust – and to be
able to demonstrate this to the authorities
and the local community – has led to a rise
in stakeholder trust.”
Next steps
PEM is an essential part of our Sustainable
Mining Plan, and we will continue to extend
it across the Group. This includes rolling
out our operational emissions dashboards
and forecasting tools, covering noise,
vibration, particulates and other types of
emissions, as part of our holistic approach
to environmental management and to
support positive health outcomes for our
workforce and for the communities that
neighbour our operations.
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Strategic Report
Copper
Our business
In Chile, we have interests in two major
copper operations: a 50.1% interest in
Los Bronces mine, which we manage
and operate, and a 44% share in the
independently managed Collahuasi mine;
we also manage and operate the El Soldado
mine and the Chagres smelter (50.1%
interest in both).
Safety
Copper Chile, tragically, had two work-
related fatalities in 2023. Jorge Navarrete
and Gerardo Cariman, both employed by
a contracting company, were fatally injured
while investigating a communication failure in
an electrical room situated in a remote area
of Los Bronces mine. A team of independent
experts performed a full investigation and
actions were agreed to mitigate the risks
identified.
As part of the response to the incidents
and, aligned with the Group-wide focus on
improving safety performance, the Copper
CEO launched an Integrated Safety Plan
for all Chilean operations, as well as an
Integrated Safety Office to provide guidance,
governance, and oversight for the successful
implementation of the plan.
Some key initiatives of the plan include:
– Golden rules commitments were reinforced
to employees and contractors
– Leadership interventions were conducted
across all sites to review Priority Unwanted
Events to assess the effectiveness of safety
routines and operational risk management
processes
– A 60-day safety plan was completed for
all sites, including 35 field training sessions
with the participation of more than 1,300
employees and contractors
– A catastrophic-risk taskforce was initiated,
covering fire, electrical hazards, structural
integrity risks and a pipeline integrity review.
Despite the fatal incidents, Copper Chile’s
TRIFR decreased by 20% to 1.14 (2022:
1.42). The TRIFR significantly improved
following the introduction of the measures
described above.
An emergency response taskforce was
established and monitoring procedures are
in place to ensure it performs properly. Safety
routines are also being set up to ensure
continuity of work already under way as
part of the Integrated Safety Plan, including
monitoring actions defined during the setting-
up of the catastrophic risk taskforce and the
technical standards governance review.
A number of other safety initiatives continue
to be implemented, including reviewing
and redefining safety routines, second-line
assurance, improvements to the quality of
Learning from Incidents investigations, and
digital control monitoring of safety initiatives.
Environmental performance
At Copper’s Chilean operations, energy use
decreased by 3% to12.6 million GJ (2022:
13.0 million GJ), reflecting the decrease
in production. Scope 1 GHG emissions
remained consistent with the previous year
at 0.4 Mt CO2e (2022: 0.4 Mt CO2e).
While GHG emissions were in line with the
prior year, Copper Chile no longer records
any Scope 2 GHG emissions, with all Chilean
copper operations being wholly supplied
by renewable power sources since 2021,
resulting in an overall c. 60% reduction in
GHG emissions over the period.
The decrease in energy use primarily reflects
the reduction in copper production from
Los Bronces mine.
2023 results – Copper Chile
Production volume (kt)
Sales volume (kt)(1)(2)
Unit cost (c/lb)(1)(3)
Group revenue – $m(1)(4)
Underlying EBITDA – $m(1)
Mining EBITDA margin(5)
Underlying EBIT – $m(1)
Capex – $m(1)
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
2023
507
505
200
4,615
1,452
31%
893
1,268
22%
2
1.14
12.6
0.4
32.6
2022
562
563
157
4,991
1,952
40%
1,387
1,217
32%
0
1.42
13.0
0.4
34.9
4,000
4,400
(1) Results by asset and the consolidated results for Copper can be found in the Summary by operation on pages
307–308.
(2) Excludes 444 kt third-party sales (2022: 422 kt).
(3) C1 unit cost includes by-product credits.
(4) Group revenue is shown after deduction of treatment and refining charges (TC/RCs).
(5) Excludes impact of third-party sales.
Financial performance
Underlying EBITDA decreased by 26% to
$1,452 million (2022: $1,952 million), driven
by lower sales and higher unit costs. C1 unit
costs increased by 27% to 200 c/lb (2022:
157 c/lb), reflecting the impact of lower
production, cost inflation and a stronger
Chilean peso, partially offset through cost
control and higher by-product credits.
Capital expenditure increased by 4% to
$1,268 million (2022: $1,217 million), mainly
driven by expenditure at Collahuasi on the
desalination plant and the fifth ball mill.
Markets
Average market price
(c/lb)
Average realised price
(Copper Chile – c/lb)
2023
2022
385
399
384
386
The differences between the market
price and the realised prices are largely a
function of provisional pricing adjustments
and the timing of sales across the year.
At Copper Chile, 114,500 tonnes of copper
were provisionally priced at 386 c/lb at
31 December 2023 (31 December 2022:
166,900 tonnes provisionally priced at
379 c/ lb).
Copper prices were relatively stable
during 2023, with LME prices averaging
385 c/ lb, down 4% from last year (2022:
399 c/lb). Concerns over China’s property
sector weighed on market sentiment and
copper prices, masking the solid underlying
demand growth from China during the
year, particularly from electric vehicles
and the renewable energy sector. Copper
prices remained sensitive to fluctuations
in the strength of the US dollar throughout
much of 2023, with prices benefiting in
December from expectations that US
interest rates have now peaked. Copper
demand is well supported by ongoing global
decarbonisation efforts and the infrastructure
associated with the energy transition.
However disruptions, mostly from social and
environment concerns, continue to impact
global mine supply.
Operational performance
Copper production of 507,200 tonnes
was 10% lower than the prior year (2022:
562,200 tonnes), due to lower grades and
ore hardness at Los Bronces.
At Los Bronces, production decreased by
20% to 215,500 tonnes (2022: 270,900
tonnes), due to lower ore grade (0.51% vs
0.62%) and continued ore hardness, as
well as an electrical sub-station fire that
interrupted plant facilities' power supply for
16 days. The unfavourable ore characteristics
in the current area of mining will continue to
affect the operation until the next phase of
the mine, where the grades are expected to
be higher and the ore softer. Development
work for this phase is now under way and is
expected to benefit production from early
2027 (refer to ‘Operational outlook’ below for
further details).
At Collahuasi, Anglo American’s attributable
share of copper production increased
marginally to 252,200 tonnes (2022:
Copper
251,100 tonnes), due to planned higher
grades (1.17% vs 1.11%) and the ongoing
commissioning of a fifth ball mill that started
at the end of October, partially offset by lower
copper recovery.
Production at El Soldado decreased by 2%
to 39,500 tonnes (2022: 40,200 tonnes).
Planned higher grades were offset by
an existing geotechnical fault that was
exacerbated by record levels of rain during
the third quarter, resulting in the temporary
closure of the mine. The production impact
was partially mitigated by processing lower
grade ore from stockpiles.
Chile´s central zone, where Los Bronces
is located, faced dry conditions during
the first half of the year followed by heavy
precipitation. The increase in precipitation
and the decision to place the smaller and less
efficient of the two plants at the Los Bronces
operation (the ‘Los Bronces plant’) on
care and maintenance during 2024, has
significantly reduced the risk in relation to
water availability for Los Bronces in 2024.
For Collahuasi, which is located in the north of
the country, the outlook for 2024 remains dry;
a desalination water solution is expected to
be operational from 2026.
Operational outlook
Los Bronces
Los Bronces is currently mining a single
phase impacted by ore hardness, and with
expected lower grades. Additional mining
phases and intermediate ore stockpiles that
would typically provide operational flexibility
have not been developed as a result of
delays in mine development, permitting and
operational challenges.
While the operation works through the
challenges in the mine, and until the
economics improve, the older, smaller
(c.40% of production volumes) and more
costly Los Bronces processing plant will
be placed on care and maintenance from
mid-2024. This value over volume decision
will enable the business to significantly
reduce operating costs and improve
competitiveness, at both the mine and the
plant, reduce overheads, and reduce capital
spend, as well as reduce reliance on external
water sources (such as transportation via
truck). The expected annualised unit cost
saving from this action is c.30–40 c/lb.
The development of the first phase of the
Los Bronces integrated water solution is
also ongoing, which will secure a large
portion of the mine’s water needs through a
desalinated water supply from the beginning
of 2026.
Los Bronces remains a world class copper
deposit, accounting for more than 2% of
the world’s known copper resources. The
environmental permit for the Los Bronces
open pit expansion and underground
development was issued by the authorities
in November 2023. Development work for
the next higher grade, softer ore phase of
the mine, Donoso 2, is now under way and is
expected to benefit production and unit costs
from early 2027. Pre-feasibility studies for
the Los Bronces underground expansion are
ongoing and are expected to be finalised in
mid-2025.
Collahuasi
Collahuasi is a world class orebody with
significant growth potential. Near term
grades are expected to be c.1.05% TCu,
with the exception of 2025, where the
grade temporarily declines to c.0.95%
TCu. Various debottlenecking options are
being studied that are expected to add
c.25,000 tonnes per annum (tpa) (our 44%
share) between 2025–2028. Beyond that,
studies and permitting are under way for a
fourth processing line in the plant and mine
97
expansion that would add up to 150,000 tpa
(our 44% share). Timing of that expansion is
subject to the permitting process; assuming
permit approval in 2027, first production
could follow from c.2032.
A desalination plant is currently under
construction that will meet a large portion
of the mine’s water requirements when
complete in 2026, and has been designed to
accommodate capital-efficient expansion as
the fourth processing line project progresses.
El Soldado
Following the exacerbation of the
geotechnical fault at El Soldado by the heavy
rainfall in 2023, the mine plan was revised in
the third quarter of 2023. Production in 2024
is expected to be broadly comparable to
2023, before declining to 30,000–35,000 tpa
as the mine reaches end of life by mid-2028.
Following receipt of the environmental permit
for phase 5, options are being evaluated that
may enable a life extension.
Copper Chile
Production guidance for Chile for 2024
is 430,000–460,000 tonnes, subject to
water availability. 2024 unit cost guidance
is c.190 c/ lb.
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Copper
Copper Peru
2023 summary
0
Fatalities
1.47
TRIFR
$1,781 m
Underlying EBITDA
65%
Mining EBITDA margin
319 kt
Production volume
Our business
In Peru, we have a 60% interest in the
Quellaveco mine, which was successfully
delivered on time and on budget during
2022. One of the largest mines to be
developed across the mining industry
in many years, it has ramped up and is
expected to produce 300,000 tonnes of
copper equivalent per year on average
over the first 10 years of production, with
a 35-year Reserve Life.
Safety
During 2023, Quellaveco recorded no
fatalities and a 34% decrease in the TRIFR
to 1.47 (2022: 2.23). This improvement in
safety performance was driven primarily by
an increase in leadership time in the field
through our Visible Field Leadership (VFL)
activities, as well as a Safety Stop in May,
when work was halted across the site to
discuss safety risks and the improvements
and actions required to reverse the
negative trend.
Safety performance was also discussed
regularly with contractor management,
identifying changes needed to reduce risk
exposure and improve safety management.
Quellaveco’s safety culture is reinforced
by safety campaigns addressing risk
management and controls, people feeling
empowered to say no if they deem work to be
unsafe, and recognition programmes, where
exemplary employees are rewarded for good
safety practices.
Preventive safety management was a focus
in the year, with a significant increase in high
potential hazard (HPH) reports and learning
and investigation of repeat high potential
incidents (HPIs). Fatigue management was
supported by the adoption of technology
devices installed on vehicles; for example,
Advanced Driver Assistance Systems that
help to reduce risky behaviour such as using
phones while driving, and speeding.
Environmental performance
Energy use amounted to 6.3 million GJ
(2022: 3.4 million GJ), reflecting the
increased production, following the start
of operations in July 2022. GHG emissions
totalled 0.2 Mt CO2e (2022: 0.2 Mt CO2e), as
the benefit of renewable energy supply offset
the impact of higher operational activity. In
2023, Quellaveco’s power needs were fully
supplied from renewable sources, via wind
turbines from the supplier’s (Engie) newly
commissioned Punta Lomita wind farm.
Quellaveco has completed the pre-feasibility
phase of the Group’s Net Positive Impact
(NPI) initiative, establishing the main
offset options and key biodiversity species
recognised as priorities to comply with the
Group’s Sustainable Mining Plan NPI goals.
Quellaveco continues to collect data to
understand its water consumption baseline,
as operations stabilise following first
production.
Financial performance
The significant increase in underlying EBITDA
to $1,781 million (2022: $230 million),
reflects higher sales volumes and lower unit
costs, as the operation ramped up. C1 unit
costs decreased by 18% to 111 c/lb (2022:
136 c/lb), reflecting the benefit of higher
production volumes.
Capital expenditure decreased by 49% to
$416 million (2022: $814 million), reflecting
the completion of major project spend for
the construction of Quellaveco, which was
successfully delivered in July 2022.
Markets
Average market price
(c/lb)
Average realised price
(Copper Peru – c/lb)
2023
2022
385
399
384
379
At Copper Peru, 39,000 tonnes of copper
were provisionally priced at 385 c/lb at
31 December 2023 (31 December 2022:
74,800 tonnes provisionally priced at
380 c/ lb.
Copper
2023 results – Copper Peru
Production volume (kt)
Sales volume (kt)(1)
Unit cost (c/lb)(1)(2)
Group revenue – $m(1)(3)
Underlying EBITDA – $m(1)
Mining EBITDA margin
Underlying EBIT – $m(1)
Capex – $m(1)(4)
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
2023
319
339
111
2,745
1,781
65%
1,558
416
19%
0
1.47
6.3
0.2
20.0
1,000
2022
102
78
136
608
230
38%
208
814
2%
0
2.23
3.4
0.2
8.7
1,000
(1) The consolidated results for Copper can be found in the Summary by operation on pages 307–308.
(2) C1 unit cost includes by-product credits.
(3) Group revenue is shown after deduction of treatment and refining charges (TC/RCs).
(4) Figures on a 100% basis (Group’s share: 60%). Included in capex is the project capex which represents the
Group’s share after deducting direct funding from non-controlling interests. The Group’s share of project capex
was $138 million (on a 100% basis, $230 million). In 2022, the Group’s share was $633 million (on a 100% basis,
$1,055 million).
99
While current focus remains on embedding
safe, consistent and stable operational
performance, there is significant expansion
potential that could sustain production
beyond the initial high grade area. The first
step, subject to permitting, would be an
increase in throughput rates to 150,000
tonnes per day (tpd) (from the currently
permitted level of 127,500 tpd), with limited
capital required and no additional water
required. Beyond that, different expansion
alternatives are under study, including a
possible third ball mill. There is also interesting
regional potential that our Discovery team is
progressing – including the adjacent Mamut
area, c.10 km away.
Production guidance for Peru for 2024 is
300,000–330,000 tonnes and 2024 unit cost
guidance is c.110 c/lb. Production in Peru will
be weighted to the second half of the year,
primarily as a result of the grades temporarily
declining to between 0.6–0.7% TCu in the first
half of the year.
Operational performance
Quellaveco produced 319,000 tonnes
(2022: 102,300 tonnes), reflecting the
progressive ramp-up in production
volumes since first production in July 2022,
with commercial production achieved in
June 2023.
Following first production from the
molybdenum plant in April 2023, commercial
production was achieved in November 2023.
With the mine operational, focus is on
the commissioning of the coarse particle
recovery plant, which started in November
2023, and will treat flotation tails, leading to
improved metal recoveries.
Operational outlook
A localised geotechnical fault in one of the
phases previously scheduled for mining
in 2024 necessitated a revised mining
plan in the latter part of 2023, as it was
determined that a change in the inter-ramp
angle of that phase was required to ensure
safety standards. While this stripping work
progresses, other lower grade phases will be
mined. As a result, access to higher grade
sectors that were previously planned to be
mined in 2024 have been rephased to 2027.
However, as a result of further optimisation
work within the revised mine plan, an
additional c.25,000 tonnes of copper is
expected to be mined over the next five years.
Given the current copper market outlook,
higher real term prices for these volumes
may be achieved; thereby negating, or even
benefiting, the NPV impact of the revised
mine plan.
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Nickel
Our nickel assets, based in Brazil, produce
ferronickel – a key ingredient in the production
of stainless steel.
Management team
Ruben Fernandes
Regional Director, Americas
Wilfred Bruijn
CEO, Anglo American, Brazil
(until December 2023)
Ana Sanches
CEO, Anglo American, Brazil
(from December 2023)
Barro Alto
Codemin
1
Brazil
Key
Nickel operations
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Nickel
101
Nickel
2023 summary
0
Fatalities
5.65
TRIFR
$133 m
Underlying EBITDA
20%
Mining EBITDA margin
40,000 t
Production volume
Progressing through partnership
Following extensive laboratory tests, which
proved to be successful, the next step was
to move to the pilot-plant testing phase.
Director of Nickel operations, Eduardo
Caixeta, points out that the Federal
University of Goiás (UFG) was an essential
partner in all this: “The partnership with
UFG was formalised in 2022, enabling
us to work closely together to install a
leaching pilot plant in the university’s
Chemistry institute. The pilot testing, which
lasted from October 2022 to March 2023,
yielded very encouraging results, both in
terms of increased nickel extraction and
the recovery of other minerals of interest
– with extractions of between 70–90%
for marginal and ferruginous ores and
extractions exceeding 90% for cobalt and
manganese. We are now jointly engaged
in simulating the process on a larger scale
so that we can determine whether the
hybrid processing approach will be viable
commercially. If it is successful in real-world
conditions – and I am optimistic it will be
– this will make Anglo American’s Nickel
business a more efficient and attractive
producer, offering a wider range of metals
to customers, and it may well result in
an extension of operational life at our
Nickel sites.”
Process engineer Naiara Nascimento holding a pregnant leach solution (PLS) enriched with soluble nickel,
derived from comprehensive tests conducted in the leaching pilot plant.
Improving metal recovery in our
Nickel business
The global steel industry uses two-thirds of
the world’s nickel production – and almost
all the ferronickel produced each year.
Over the past few years, however, the nickel
grade has naturally declined at both Barro
Alto, our main refining facility, and Codemin.
Reversing the downward trend
In order to halt, and then turn around,
this declining trend, Anglo American’s
Technical team investigated the current
production process, which led to the
development of a new hybrid method.
This involves combining the current
pyrometallurgical process, whereby the
physical and chemical characteristics of
the ore are altered at high temperatures,
with an innovative hydrometallurgical
wet extraction technique that allows
the separation of elements in the ore
when they reach a liquid phase. Apart
from the principal objective of improving
nickel recovery, this novel approach
allows the use of more marginal and
ferruginous (iron-bearing) ores – with
the additional prospect of releasing a
range of by-products, such as copper,
magnesium, cobalt (a vital battery metal)
and scandium (used increasingly in the
aerospace industry, and bicycle frames),
that are currently unobtainable through the
conventional pyrometallurgical process.
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Strategic Report
Nickel
they feel are unsafe. Contractors have
been included in Anglo American Brazil’s
Safety Culture Programme; Nickel is also
implementing the Group’s Contractor
Performance Management framework,
designed to improve contractor performance
management, with a focus on the delivery
of improved risk-based planning and safe
work execution.
Environmental performance
Energy consumption at Nickel increased
marginally to 20.6 million GJ (2022:
20.3 million GJ) due to higher electricity
consumption from the refinery process.
Scope 1 GHG emissions were in line with
the prior year at 1.1 Mt CO2e (2022: 1.1 Mt
CO2e). Nickel has no Scope 2 GHG emissions
as all power for the operation comes from
renewable sources.
In 2023, the Nickel business partnered with
COOPEAG (Agroecological Cooperative of
Family Producers of Niquelândia) to restore
approximately 170 hectares of degraded
land through the planting of approximately
300,000 seedlings, including from
endangered species.
Our business
Our nickel assets are wholly owned,
consisting of two ferronickel production sites:
Barro Alto and Codemin. Our Nickel business
produces ferronickel – whose primary end
use is in the global stainless steel industry.
Uses of nickel
The stainless steel industry uses two-thirds of
the world’s nickel production and virtually all
ferronickel produced each year. The balance
is used mainly in the manufacture of alloy
steel and other non-ferrous alloys.
Stainless steel is a key input in high-tech
construction, and most stainless steels
contain about 8–10% nickel. As an alloying
element, nickel enhances important
properties of stainless steel such as
formability, weldability and ductility, while
increasing corrosion resistance in certain
applications.
Safety
Our Nickel business has not had a fatal
incident since 2012. Disappointingly,
however, in 2023 the TRIFR continued its
upward trend, reaching 5.65 (2022: 3.67).
High workforce turnover and under-skilled
contractor employees were the main reasons
behind the increase.
Actions under way are concentrated on
improving training quality and providing
better oversight of peripheral activities.
Nickel is also encouraging leaders to spend
more time in the field, reflecting the focus
on VFL being driven across the business,
supporting the workforce by creating a
psychologically safe work environment
where they feel empowered to speak
up when they encounter activities that
Molten metal is poured from a furnace at our Barro Alto operation, an important producer of ferronickel
for the stainless steel industry.
2023 results – Nickel
Production volume (t)
Sales volume (t)
Unit cost (c/lb)(1)
Group revenue – $m
Underlying EBITDA – $m
Mining EBITDA margin
Underlying EBIT – $m
Capex – $m
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
(1) C1 unit cost.
Nickel
103
2023
40,000
39,800
2022
39,800
39,000
541
653
133
20%
62
91
6%
0
5.65
20.6
1.1
6.9
513
858
381
44%
317
79
24%
0
3.67
20.3
1.1
7.0
1,000
1,400
Financial performance
Underlying EBITDA decreased by 65% to
$133 million (2022: $381 million), primarily
as a result of lower realised prices. C1 unit
costs increased by 5% to 541 c/lb (2022:
513 c/lb), reflecting the stronger Brazilian real
and the impact of higher costs of production
due to lower grade ore, including planned
maintenance costs to secure asset integrity
and availability.
Offsetting this, global nickel consumption
grew strongly year on year, particularly
in China, which saw record volumes of
nickel consumed in the stainless steel and
battery sectors.
Operational performance
Nickel production increased marginally
to 40,000 tonnes (2022: 39,800 tonnes),
reflecting improved operational stability.
Operational outlook
Following safety improvements within the
mine plan, certain geotechnical parameters
have been revised, so the amount of material
accessed from higher grade areas of the
mine has reduced. The next higher grade
area of the pit is currently going through
permitting, with production expected from
2028 to blend with the lower grade areas of
the existing pit. Also, bulk ore sorting has not
yet delivered the scale that had previously
been anticipated. While studies are ongoing
to calibrate and adapt the technology,
these benefits are no longer incorporated
into guidance due to their early maturity.
Additional drilling is under way to increase
coverage and enhance confidence levels
within the geological models.
Production guidance for 2024 is 36,000–
38,000 tonnes, and 2024 unit cost guidance
is c.600 c/lb.
Capital expenditure increased by 15% to
$91 million (2022: $79 million), mainly driven
by higher deferred stripping costs capitalised.
Within special items and remeasurements,
total impairments of $779 million (before
tax) were recognised at Barro Alto in 2023
following revisions to the pricing outlook and
the long term cost profile of the asset.
Markets
Average market price
($/lb)
Average realised price
($/lb)
2023
2022
9.74
11.61
7.71
10.26
Differences between the market price (which
is LME-based) and our realised price (the
ferronickel price) are due to the discounts
to the LME price, which depend on market
conditions, supplier products and consumer
preferences.
The average LME nickel price of $9.74/lb
was 16% lower than prior year (2022:
$11.61/lb), mainly due to significant supply
growth of refined nickel products in Indonesia
and China, along with the impact of higher
interest rates on consumer inventory levels,
resulting in consumer destocking and
widening market discounts for ferronickel.
Strategic Report Integrated Annual Report 2023Anglo American plc
104
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Platinum Group
Metals (PGMs)
Our PGMs business (held through an effective
79.2% interest in Anglo American Platinum Limited)
is a leading producer of PGMs, essential metals
for cleaning vehicle exhaust emissions and as the
catalyst in electric fuel cell technology.
Management team
Themba Mkhwanazi
Regional Director, Africa
and Australia
Craig Miller
CEO, Platinum Group Metals
Great
Dyke
Unki
Bushveld
Complex
Mogalakwena
Amandelbult
Kroondal
Modikwa
Mototolo
South Africa and Zimbabwe
Key
PGM operations
PGMs
2023 summary
0
Fatalities
1.61
TRIFR
$1,209 m
Underlying EBITDA
30%
Mining EBITDA margin
3,806 koz
Production volume –
PGMs 5E+gold(1)
Our business
We wholly own and operate three mining
operations in South Africa’s Bushveld
complex: Mogalakwena – the world’s
largest open pit PGMs mine – Amandelbult
and Mototolo. We also own and operate
Unki mine – one of the world’s largest PGM
deposits outside of South Africa, on the
Great Dyke in Zimbabwe. We own smelting
and refining operations, located in South
Africa, which treat concentrates from our
(1) PGMs production is shown on a 5E+gold
basis, i.e. platinum, palladium, rhodium,
ruthenium and iridium plus gold.
Platinum Group Metals
105
there’s any situation where someone’s life
could be at risk while undertaking their day-
to-day work. So, we examined how best
to remove, or engineer out, risk and then
we focused on making the right decisions
more consistently through a combination
of behaviour-based training, enhanced
engineered controls, and embedding
operational improvements.”
Groupwide collaboration on new safety
technology
In our PGMs business’ underground
mines, ‘barring’ (the removal of loose
rock slabs from the hanging wall/roof
and sidewalls) until recently has a been a
critical safety issue. But PGMs, supported
by Group Mining, is reducing the need for
barring through installing ‘blast on mesh’,
a high-tensile steel mesh that provides
passive support and affords protection
from rockfalls. A crucial extra benefit is
that the mesh is designed to withstand
the blasting process.
PGMs’ chief geotechnical engineer, Lizelle
Prinsloo, observes: “Blast on mesh has
proved to be so effective that we’re rolling
it out on all PGMs’ underground mines.
But it’s just one of the technologies we
are using; ‘moving the dial’ often requires
integrating a number of technologies.
So, in conjunction with our colleagues in
Group Mining, and also third parties, we
are also developing innovative safety
equipment such as an underground radar,
no bigger than a mobile phone, that can
detect rock movements and alert people
at the working face to any danger, while
also introducing new strata-displacement
monitoring devices. Such technologies,
working in combination, are setting new
benchmarks in rockfall safety.”
The decline excavation to access underground ore at Mogalakwena, where the installation of high-tensile
steel ‘blast on mesh’ (clearly visible on the stope wall) provides a vital extra layer of protection to
development crews.
Preventing rockfalls underground
Advances in technology, improved
operational practices and monitoring,
and a positive shift in attitudes towards
safety, are all helping to make mining safer.
At Anglo American, over the past two
decades, fatalities and serious injuries have
steadily trended downwards.
But in spite of this progress, we are still not
where we ultimately want to be – which is a
work environment where it is impossible to
get hurt.
historically, rockfalls – mainly from the
hanging wall/roof and sidewalls, but also
from the stope face area – have been
responsible for a high proportion of fatal
and severe injuries.
Tackling rockfalls at Anglo American
gained renewed traction in 2019, when
our Group Mining team collaborated
with several operating sites to instigate
a Rockfall Fatality Elimination programme.
Since then, fatalities from rockfalls have
fallen sharply, and no one has died from
a rockfall for three years running.
Mitigating the hazards of mining
underground
Underground mining generally carries
more risk than operations on surface and,
Group Mining’s head of geotechnical,
Lesley Munsamy, attributes much of this to
a shift in mindset around safety culture: “It’s
fundamentally about not accepting that
Strategic Report Integrated Annual Report 2023Anglo American plc 106
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Platinum Group Metals
wholly owned mines, joint operations
and third parties. In 2023, we also had an
interest in two jointly owned, non-managed
PGM mines – Modikwa and Kroondal, both
located in South Africa. We disposed of
our 50% interest in Kroondal in November
2023. Kroondal has now transitioned to a
100% third-party purchase of concentrate
arrangement, which is then expected to
transition to a toll arrangement at the end of
the first half of 2024.
Uses of PGMs
PGMs are used in an extensive range of
applications. In the automotive industry,
they are used in catalytic converters and in
fuel cell electric vehicle (FCEV) technology.
Platinum, palladium and rhodium enable
catalytic converters to reduce pollutants from
car exhaust gases. FCEVs provide a zero
emissions powertrain technology, particularly
well suited to heavy duty, long range and
fleet vehicles. Demand for PGMs from the car
industry is forecast to remain healthy, helped
by the ongoing trend towards cleaner-
emission vehicles, driven by more stringent
emissions legislation. While we recognise
that increased demand for battery electric
vehicles poses a downside risk to demand for
the PGM-containing catalytic converters used
in internal combustion engine vehicles, it is
partly offset by hybrids, which require similar
quantities of PGMs, and longer term, FCEVs.
With rising concerns about the environment
and energy costs, there is also growing
interest in platinum-based fuel cells as
an alternative energy source. Fuel cell
mini-grid electrification technology is an
attractive, cost-competitive alternative to grid
electrification in remote rural areas and could
accelerate access to electricity.
Platinum is also widely used in jewellery
owing to its purity, strength, resistance to
fading and ability to hold precious stones
securely.
Platinum, palladium and rhodium each have
a wide range of other uses in the chemical,
electrical, medical, glass and petroleum
industries. PGMs enable efficient production
of goods, ranging from glass to fertilisers, as
well as a diverse range of other products,
such as cancer-treatment drugs. Ruthenium
is used as a catalyst in many chemical and
electro-chemical processes, with properties
that make it widely used in semiconductors
and hard disks. Iridium is also widely used as
a chemical and electro-chemical catalyst,
for instance in chloralkali electrodes. Being
highly corrosion-resistant, it is also used
to make crucibles, in which crystals for the
electronics industry are grown.
We are committed to developing demand for
PGMs and invest both directly and through
AP Ventures, an independent venture
capital fund with a mandate to invest in
the development of new applications for
the full suite of PGMs. We are also a major
participant in the Platinum Guild International,
which plays a key role in supporting and
growing platinum jewellery demand.
Safety
In 2023, and for the second successive year,
PGMs recorded zero fatalities at its own
managed and joint venture operations and
reached a record-low TRIFR of 1.61. This
represents a year-on-year improvement
of 31% and an improvement of 85% since
2012. Mogalakwena, Mototolo and Unki
mines have reported more than 11 years
of fatality-free mining, with Amandelbult
recording 9.6 million fatality-free shifts. PGMs
continues to focus on working towards safe,
stable and capable operations, as this as
a critical foundation for safe production, as
well as continuously improving its safety
leadership and risk management practices.
Tragically, and in a non-work-related fatality
in December 2023, Oupa Lazaros Mashego
passed away when the bus he was driving
while transporting employees from Mototolo
mine was involved in a road traffic accident.
The other employees on the bus were treated
for minor injuries.
Environmental performance
Total energy consumption increased by
9% to 20.6 million GJ (2022: 18.9 million
GJ) and GHG emissions increased by 5%
to 4.3 Mt CO2e (2022: 4.1 Mt CO2e), driven
by increased smelter production and
higher than expected energy usage at our
Mogalakwena and Amandelbult operations.
Energy efficiency has improved by 9% over
the 2016 baseline.
PGMs continues to invest in energy efficiency
projects across all operations, while switching
to low carbon energy sources and renewable
energy to transition the energy mix. PGMs
will benefit from the Group’s partnership with
EDF Renewables (Envusa Energy) to develop
a regional renewable energy ecosystem in
southern Africa, including the large-scale
solar photovoltaic and wind generation
plants that are currently under development.
Total water withdrawals decreased by 11%
to 37.5 million m3 (2022: 42.2 million m3)
as PGMs continued to focus on operational
improvements and water efficiency, re-use,
and conservation opportunities. The delivery
of specific water reduction projects in 2024
and the implementation of new technologies
that improve water reduction efforts, such as
CPR and HDS, are expected to help PGMs
meet its water withdrawal targets.
Financial performance
Underlying EBITDA decreased to $1,209
million (2022: $4,417 million), primarily driven
by a lower basket price, which resulted in
lower POC margins and affected the cost of
POC inventory. Additionally, own-mined unit
costs increased by 3% to $968/PGM ounce
(2022: $937/PGM ounce), due to lower
production and higher inflation, partly offset
by the weaker South African rand.
Capital expenditure increased by 9% to
$1,108 million (2022: $1,017 million), as
planned higher stay-in-business expenditure
was partially offset by the weaker South
African rand.
Average platinum
market price ($/oz)
Average palladium
market price ($/oz)
Average rhodium
market price ($/oz)
US$ realised basket
price ($/PGM oz)
2023
2022
965
961
1,336
2,111
6,611
15,465
1,657
2,551
Markets
Following record pricing in 2021–2022,
a general easing of supply concerns that
had arisen post Russia’s invasion of Ukraine
and end-user destocking saw sharp falls in
palladium and rhodium prices. This drove the
average realised PGM basket price down
by 35% in 2023 to $1,657 per PGM ounce
(2022: $2,551 per PGM ounce).
The average rhodium market price of
$6,611 per ounce was 57% lower than in
2022, impacted in the first half of the year
by persistent selling of excess stock from the
glass industry, which had shifted to a lower
rhodium, higher platinum mix. Palladium
declined 37%, averaging $1,336 per ounce,
as robust Russian metal flows met automotive
industry destocking. Platinum was broadly
flat at $965 per ounce. The minor PGMs,
iridium and ruthenium, continued to make
historically large contributions to the basket
price. By the end of the year, PGM pricing
was firmly into the cost curve, and several
producers responded by restructuring
existing mines or mothballing future plans.
2023 results
PGM production volume (koz)(1)(2)
PGM sales volume (koz)(2)(3)
Unit cost ($/PGM oz)(2)(4)
Group revenue – $m(2)
Underlying EBITDA – $m(2)
Mining EBITDA margin(5)
Processing and trading margin
Underlying EBIT – $m(2)
Capex – $m(2)
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers(6)
Platinum Group Metals
2023
3,806
3,925
968
6,734
1,209
30%
(6%)
855
1,108
15%
0
1.61
20.6
4.3
37.5
2022
4,024
3,861
937
10,096
4,417
54%
24%
4,052
1,017
86%
0
2.34
18.9
4.1
42.2
27,000
26,500
(1) Production reflects own-mined production and purchase of metal in concentrate. PGM volumes consist of 5E metals
and gold.
(2) Results by asset can be found in the Summary by operation on pages 307–308.
(3) Sales volumes exclude tolling and third-party trading activities. PGMs is 5E metals and gold.
(4) Total cash operating costs (includes on-mine, smelting and refining costs only) per own mined PGM ounce of
production.
(5) The total PGMs mining EBITDA margin excludes the impact of the sale of refined metal purchased from third parties,
purchase of concentrate and tolling.
(6) Employee numbers for 2022 have been restated to exclude contractors.
Operational performance
Total PGM production decreased by 5%
to 3,806,100 ounces (2022: 4,024,000
ounces), primarily due to lower production
from the Kroondal joint operation (now
sold), planned infrastructure closures
at Amandelbult and lower grades at
Mogalakwena, partially offset by higher
production from Unki.
Own-mined production
PGM production from own-managed mines
(Mogalakwena, Amandelbult, Unki and
Mototolo) and equity share of joint operations
decreased by 7% to 2,460,200 ounces
(2022: 2,649,200 ounces).
Amandelbult production decreased by 11%
to 634,200 ounces (2022: 712,500 ounces)
due to planned infrastructure closures and
poor ground conditions at Dishaba.
Mogalakwena production decreased by
5% to 973,500 ounces (2022: 1,026,200
ounces), largely as a result of lower grades,
and lower throughput from unplanned
maintenance, despite moving into a higher
grade, lower waste area towards the end of
the year.
Production from other operations decreased
by 6% to 852,500 ounces (2022: 910,500
ounces), mainly due to lower production from
Kroondal, reflecting both a planned ramp-
down of the operation and the disposal
of our 50% interest, effective 1 November
2023; Kroondal has now transitioned to a
100% third-party purchase of concentrate
arrangement. This arrangement is then
expected to transition to a toll arrangement
at the end of the first half in 2024.
Purchase of concentrate
Purchase of concentrate decreased by
2% to 1,345,900 ounces (2022: 1,374,800
ounces), primarily due to lower production
from Kroondal in light of the planned ramp-
down of the operation.
Refined production and sales volumes
Refined PGM production (excluding
toll-treated metal) was broadly
unchanged at 3,800,600 ounces
(2022: 3,831,100 ounces).
PGM sales volumes increased marginally to
3,925,300 ounces (2022: 3,861,300 ounces)
as inventory was drawn down to mitigate the
lower production.
Operational outlook
PGM prices remain at low levels and the
prevailing macro-economic conditions
and uncertainty have prompted the difficult
but necessary action to reconfigure our
PGM business to ensure the long term
sustainability and competitive position of
our operations.
107
There is an intentional strategy at the
concentrators to produce higher grade
concentrate which results in the same PGM
content, but from lower concentrate volume.
This reduces required primary furnace
capacity and allows us to place the Mortimer
smelter on care and maintenance – reducing
both operating and capital expenditure
while enhancing overall processing
competitiveness.
Overall, sustainable cost reduction
initiatives will deliver annual cost savings
of c.$0.3 billion from a 2023 baseline, and
in 2024, the business is targeting an all-in-
sustaining cost of c.$1,050/3E oz.
Furthermore, in line with lower capital
expenditure and near term asset
optimisation, work on the option for the
third concentrator at Mogalakwena will
not be progressing, nor will the expansion
opportunities at both Amandelbult and
Mototolo.
These extensive measures will improve the
positioning of our world-class PGM assets for
the long term, securing the highly attractive
value proposition of Mogalakwena.
PGM metal in concentrate production
guidance for 2024 is 3.3–3.7 million ounces,
with own-mined output of 2.1–2.3 million
ounces and purchase of concentrate of
1.2–1.4 million ounces. Refined PGM
production guidance for 2024 is 3.3–3.7
million ounces. Refined production is usually
lower in the first quarter than the rest of
the year, due to the annual stock count
and planned processing maintenance.
Production remains subject to the impact
of Eskom load-curtailment. Unit cost
guidance for 2024 is c.$920/PGM ounce.
Strategic Report Integrated Annual Report 2023Anglo American plc
108
Anglo American plc
Integrated Annual Report 2023
Strategic Report
De Beers
Anglo American owns 85% of De Beers, a world
leader in the diamond industry. The balance
of 15% is owned by the Government of the
Republic of Botswana. De Beers and its partners
produce around one-third of the world’s rough
diamonds, by value.
Management team
Al Cook
CEO, De Beers
* See page 109 for footnotes.
Damtshaa(2)(3)
Letlhakane(2)
Orapa(2)
Jwaneng
Gahcho Kué
Debmarine Namibia
Namdeb
Venetia
Canada
Key
Diamond operations
Botswana and Namibia
South Africa
De Beers
2023 summary
0
Fatality
2.05
TRIFR(1)
$72 m
Underlying EBITDA
48%
Mining EBITDA margin
31,865
Production volume ('000 carats)
(1) TRIFR relates to managed operations only.
(2) All managed as one operation, the ‘Orapa Regime’.
(3) Damtshaa was placed onto extended care and
maintenance in 2021.
(4) Refer to Anglo American plc Ore Reserves and Mineral
Resources Report 2023 for additional information.
De Beers
Our business
De Beers sells the majority of its rough
diamonds through 10 Sight sales each year
to Sightholders, with the balance being
sold via its Auctions business to registered
buyers. De Beers markets and sells polished
diamonds and diamond jewellery via its
retail brands.
De Beers recovers diamonds from four
countries: Botswana, Canada, Namibia and
South Africa.
In Botswana, via a 50:50 joint operation with
the Government of the Republic of Botswana
– known as Debswana – diamonds are
recovered from two mines(3), including
Jwaneng, one of the world’s richest diamond
mines by value. This mine’s high grade ore
contributes around 75% of Debswana’s
revenue. The $2 billion (100% basis)
Cut-9 expansion of Jwaneng extends the
life of the mine to 2036 and is expected to
deliver c. 9 million carats per annum (100%
basis) of rough diamonds. De Beers and
the Government of Botswana have signed
Heads of Terms setting out the key terms
for a new 10-year sales agreement for
Debswana’s rough diamond production
(through to 2034) and the new 25-year
Debswana mining licences (through to
2054). De Beers and the Government of
Botswana are working together to progress
and then implement the formal new sales
agreement and related documents including
the mining licences. In the interim, the terms
of the most recent sales agreement remain
in place. The new arrangements constitute
a related party transaction under the UK
Listing Rules, given that both Anglo American
and the Government of Botswana are
shareholders in De Beers, and therefore will
be subject to approval by Anglo American’s
shareholders in due course.
Underwater kelp forests help to sustain a wealth
of biodiversity and marine species, and are vital
to society through supporting fisheries, nutrient
cycling, and carbon and nitrogen removal.
Investing in a nature-based
solution to mitigate climate change
To meet the needs of a growing and more
environmentally aware global population,
countries and businesses alike are
seeking innovative ways to harness the
power of nature to address hard-to-abate
emissions and sequester carbon.
Kelp – an abundant, and relatively
untapped, renewable natural resource
Research has shown that kelp can
sequester carbon significantly faster than
terrestrial woodland. Marine forests act as
an extremely efficient carbon sink, with the
potential to permanently lock away vast
amounts of CO2 in the ocean, as well as
supporting a healthy marine environment
and boosting biodiversity.
As part of our climate action strategy, our
De Beers business is supporting Kelp Blue,
an innovative start-up focused on growing
and managing large scale kelp forests.
As a first step, De Beers has invested
$2 million in a pilot project off the coast of
Namibia, in the Atlantic ocean.
109
As part of its work with Kelp Blue,
De Beers is supporting the development
of a scientific methodology to measure
the amount of carbon that is being
sequestered. This will accelerate research
and understanding of kelp’s decarbonising
potential, and assist the development of
this pioneering nature-based solution.
Kelp forests also boost healthy marine
ecosystems by providing food and shelter
for many species and assist them to
survive growing ocean acidification. The
forests can be sustainably and repeatedly
harvested for at least seven years, with the
harvested kelp being used in agricultural
fertilisers, as well as in a wide range of
everyday household products.
Benefiting the environment – and the
local community
Another priority of De Beers’ sustainability
framework is to partner with host
communities to nurture talent, support
economic diversification and deliver
enduring benefits. Kelp Blue provides
an opportunity to support the green
economy and build skills for the future.
The investment in Kelp Blue will not
only lead to a significant increase in the
amount of CO2 sequestered from the
atmosphere, it will also bring potential
benefits, in terms of job creation and
upskilling opportunities, to Namibia.
Strategic Report Integrated Annual Report 2023Anglo American plc 110
Anglo American plc
Integrated Annual Report 2023
Strategic Report
De Beers
In Namibia, De Beers operates via a
50:50 joint operation with the Namibian
government, recovering both land-based
diamonds (Namdeb) and offshore diamonds
(Debmarine Namibia). Namibia has the
richest known marine diamond deposits
in the world, with Diamond Resources
estimated at approximately 82 million carats
(100% basis)(4) in approximately 1.0 million
k (m2) of seabed. Marine diamond deposits
represent around 78% of the partnership’s
total diamond production and 94% of its
Diamond Resources.
Venetia is South Africa’s leading diamond
mine. Open pit mining was completed, as
scheduled, in 2022 and first production from
the underground operation was delivered
in June 2023. The $2.3 billion Venetia
Underground project will continue to ramp
up over the next few years and is expected to
extend the life of the mine to 2045 and yield
an estimated 80 million carats(4).
In Canada, De Beers has a 51% interest in,
and is the operator of, Gahcho Kué open pit
mine in the Northwest Territories. It began
commercial production in 2017 and has
an eight-year remaining life, producing an
average of 5 million carats a year, yielding
an estimated total of 35 million carats
(100% basis)(4).
De Beers also develops industrial
supermaterials through Element Six, which
includes the production of laboratory grown
diamonds for Lightbox Jewelry.
Safety
De Beers recorded zero work-related loss of
life in 2023. The TRIFR decreased by 6% to
2.05 (2022: 2.19).
The implementation of De Beers’ ‘Pioneering
Brilliant Safety’ framework is currently
under way, with Gahcho Kué mine and the
midstream operations completing their
assessments in the year. This framework has
identified five focus areas, including:
– Contractor performance management:
Ensuring appropriate oversight of
contractors and efficient and effective
onboarding, as well as exhibiting Visible
Felt Leadership in the field
– Human factors: Fostering trust and
psychological safety through engaging
employees and promoting effective
leadership
– Design for safety: Incorporating safety
features into plant and equipment during
the design phase
– Technology for safety: Enhancing
safety through implementing advanced
technologies
– Emergency management: Developing
world class emergency management
and response practices through strategic
partnerships.
Environmental performance
Energy use decreased by 7% to 3.8 million
GJ (2022: 4.2 million GJ), while GHG
emissions were 6% lower than the prior
year at 0.4 Mt CO2e, reflecting the lower
production. In 2023, De Beers furthered
its climate ambitions by setting near term
(i.e. 2030) emission reduction targets for
Scope 1, 2 and 3 GHG emissions, aligned
with Science Based Targets initiative (SBTi)
criteria. The SBTi formally validated these
targets in March 2023.
In collaboration with Envusa Energy – the
renewable energy partnership formed
between Anglo American and EDF
Renewables in 2022 – good progress
was made in the development of solar
and wind energy in southern Africa. The
electrification of Venetia mine, as it transitions
to underground operations, progressed well;
however, the positive impact on the mine’s
carbon footprint will only be felt when the
Envusa Energy renewable energy projects
come online.
De Beers made significant progress
in implementing its Integrated Water
Management Plan, which aims to achieve
a 50% reduction in fresh water withdrawals
in water scarce areas by 2030. Detailed
site-specific pathways have been developed
based on water balance modelling
from operations in such areas, boosting
confidence that De Beers will meet its target
reduction by 2030.
Financial performance
Due to the downturn in industry conditions
from 2022 to 2023, total revenue decreased
to $4.3 billion (2022: $6.6 billion), with rough
diamond sales decreasing to $3.6 billion
(2022: $6.0 billion). Total rough diamond
sales volumes decreased by 19% to 24.7
million carats (2022: 30.4 million carats). The
average realised price decreased by 25% to
$147/ct (2022: $197/ct), reflecting a larger
proportion of lower value rough diamonds
being sold, as well as a 6% decrease in the
average rough price index.
Underlying EBITDA decreased to $72 million
(2022: $1,417 million) as a result of
significantly lower sales volumes, coupled
with a lower average realised price
(impacted by both the mix of products sold
and a lower average rough price index)
which negatively impacted margins in the
trading business. The current year results
incorporate an inventory write-down of
$0.2 billion on rough stock. The increase
in unit cost to $71/ct (2022: $59/ct) was
primarily driven by lower production volumes
from Venetia as the underground operations
ramp up.
Capital expenditure increased by 5% to
$623 million (2022: $593 million), due to the
ramp-up of the Venetia underground project
as well as the continued execution of other
life-extension projects, including Jwaneng
Cut-9.
An impairment of $1.6 billion (before tax
and non-controlling interests) to the carrying
value of De Beers has been recognised within
special items and remeasurements, reflecting
the near term adverse macro-economic
outlook and industry-specific challenges.
Please refer to note 8 in the Consolidated
financial statements for further details.
De Beers Jewellers delivered a stable sales
performance given the global macro-
economic headwinds and challenging
Chinese sector.
De Beers
2023 results
Production volume (’00 cts)(1)
Sales volume (’00 cts)(1)(2)
Price ($/ct)(1)(3)(4)
Unit cost ($/ct)(1)(4)(5)
Revenue – $m(1)(6)
Underlying EBITDA – $m(1)(4)
Mining EBITDA margin(1)(7)
Trading margin
Underlying EBIT – $m(1)(4)
Capex – $m(1)(4)
Attributable ROCE(1)
Fatalities(8)
TRIFR(8)
Energy consumption – million GJ(8)
GHG emissions – Mt CO2 equivalent(8)
Total water withdrawals – million m3(9)
Employee numbers(10)
2023
31,865
24,682
147
71
4,267
72
48%
(3%)
(252)
623
(3%)
0
2.05
3.8
0.4
7.3
2022
34,609
30,355
197
59
6,622
1,417
52%
10%
994
593
11%
1
2.19
4.2
0.5
7.2
10,900
10,500
(1) Prepared on a consolidated accounting basis, except for production, which is stated on a 100% basis, except for the
Gahcho Kué joint operation in Canada, which is on an attributable 51% basis.
(2) Total sales volumes on a 100% basis were 27.4 million carats (2022: 33.7 million carats). Total sales volumes (100%)
include De Beers Group’s joint arrangement partners’ 50% proportionate share of sales to entities outside De Beers
Group from Diamond Trading Company Botswana and Namibia Diamond Trading Company.
(3) Pricing for the mining business units is based on 100% selling value post-aggregation of goods. Realised price
includes the price impact of the sale of non-equity product and, as a result, is not directly comparable to the unit cost.
(4) Results by country can be found in the Summary by operation on pages 307–308.
(5) Unit cost is based on consolidated production and operating costs, excluding depreciation and operating special
items, divided by carats recovered.
Includes rough diamond sales of $3.6 billion (2022: $6.0 billion).
(6)
(7) Total De Beers EBITDA margin shows mining EBITDA margin on an equity basis, which excludes the impact of
non-mining activities, third-party sales, purchases, trading downstream and corporate.
(8) Data is for De Beers’ managed operations.
(9) Data is for De Beers’ managed operations and other managed entities.
(10) Average number of employees, excluding contractors and associates' and joint ventures' employees, and including
a share of employees within joint operations, based on shareholding.
111
Operational performance
Mining
Operational performance was strong in
2023. The new Venetia underground project
delivered first production in June and will
ramp up over the next few years.
Rough diamond production decreased to
31.9 million carats (2022: 34.6 million carats),
due to planned lower production levels
at Venetia as the operation transitions to
underground.
In Botswana, production was broadly stable,
with a 2% increase to 24.7 million carats
(2022: 24.1 million carats), driven by the
planned treatment of higher grade ore
at Orapa.
Namibia production increased by 9%
to 2.3 million carats (2022: 2.1 million
carats), primarily driven by a full year of
production from the Benguela Gem vessel
(commissioned in March 2022) and the
ongoing ramp-up and expansion of the
mining area at the land operations.
South Africa production decreased by
64% to 2.0 million carats (2022: 5.5 million
carats), due to the planned completion of the
Venetia open pit in December 2022. Venetia
continues to process lower grade surface
stockpiles, while the new underground
project commenced operations in June,
and will ramp up over the next few years as
development continues.
Production in Canada was stable at
2.8 million carats (2022: 2.8 million carats),
with higher throughput offset by planned
treatment of lower grade ore.
Markets
After strong demand in 2021 and 2022,
global rough diamond demand fell
significantly in 2023. With polished diamond
inventories rising and increases in inflation
and interest rates, jewellery retailers took
a cautious approach to purchasing new
stock. US consumer demand for natural
diamonds was impacted by macro-
economic challenges as well as rising supply
of lab-grown diamonds – however, while
sales of lab-grown diamonds to consumers
increased, wholesale lab-grown prices
continued to fall sharply, supporting further
differentiation from natural diamonds. In
China, economic challenges led to low
consumer confidence, which led to marginal
consumer demand contraction off the
subdued levels seen in 2022. In contrast,
consumer confidence and demand growth in
India were robust in 2023, especially towards
the end of the year.
The retail slowdown led to already inflated
midstream polished diamond inventories
increasing over the course of the year,
resulting in downward pressure on polished
diamond wholesale prices. In response, the
midstream industry in India implemented
a voluntary moratorium on rough diamond
imports into the country between 15 October
and 15 December. De Beers supported its
Sightholders by offering full flexibility for rough
diamond allocations for Sight 9 and Sight 10
as the midstream sought to re-establish
equilibrium. This resulted in very low rough
diamond sales in the fourth quarter.
Overall, during the fourth quarter, industry
conditions began to stabilise. Retail
demand improved over the end of year
holiday season, especially in the United
States, helping to ease midstream inventory
pressure. However, with ongoing macro-
economic uncertainty, it is anticipated that
recovery in rough diamond demand will
be gradual.
Strategic Report Integrated Annual Report 2023Anglo American plc
112
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Integrated Annual Report 2023
Strategic Report
De Beers
Operational outlook
Venetia is processing lower grade surface
stockpiles while the operation transitions
to underground. This will continue as the
underground production slowly ramps up
following the first production blast in mid-
2023. It is expected to ramp up to steady-
state levels of c.4 million carats per annum
(Mctpa) production over the next few years.
Near term unit cost will be impacted by a low
carat profile from Venetia as the underground
project ramps up and is subsequently
expected to reach a steady-state of c.$75/ct
from 2026.
Production guidance for 2024 is 29–32
million carats (100% basis) and 2024 unit
cost guidance is c.$80/ct. However, De Beers
will assess options to reduce production in
response to prevailing market conditions.
Outlook
Market outlook
Industry conditions are expected to remain
challenging in the short term, but the long
term outlook is favourable. Midstream and
retail demand stabilised towards the end
of 2023, but inventories of rough diamonds
reportedly grew at producers globally. Over
the course of 2024, assuming a measured
approach from producers to the release
of upstream inventory, the high midstream
inventory levels seen in 2023 are expected
to decline as retailers replenish their stocks.
Limited consumer demand growth and
ongoing retailer caution are anticipated
ahead of an expected return to growth
into 2025.
The ongoing focus on diamond provenance
– especially given the expected introduction
of Russian diamond import restrictions by
G7 nations – has the potential to reinforce
demand for De Beers’ rough diamonds,
supported by the blockchain Tracr™ platform.
The global supply of rough diamonds is
anticipated to continue to decline owing to
the maturity of major mines and limited new
discoveries.
The wholesale prices of lab-grown diamonds
are falling sharply, leading to financial
challenges at some leading lab-grown
diamond producers. These price declines
are expected to lead to further substantial
reductions in retail prices (with De Beers’
Lightbox brand testing significantly lower
prices for its products). This will further
reinforce consumers’ understanding of the
fundamental differences between lab-grown
and natural diamond jewellery.
Venetia, South Africa’s premier diamond mine, is transitioning from open pit to underground mining.
Clearly visible in front of the drill rig is the high-tensile steel mesh that is applied, ahead of drilling, on
stope roofs and walls to protect operators in the development area.
Anglo American plc
Integrated Annual Report 2023
Iron Ore
Strategic Report
113
Anglo American’s iron ore operations provide
customers with high grade iron ore products
which help our steel customers meet ever-tighter
emissions standards. In South Africa, we have a
69.7% shareholding in Kumba Iron Ore. In Brazil
we own the integrated Minas-Rio operation.
Management team
Ruben Fernandes
Regional Director, Americas
Themba Mkhwanazi
Regional Director, Africa
and Australia
Minas-Rio
Ferroport Açu port (50% ownership)
Kolomela
Sishen
Wilfred Bruijn
CEO, Anglo American, Brazil
(until December 2023)
Mpumi Zikalala
CEO, Kumba Iron Ore
Brazil
South Africa
Ana Sanches
CEO, Anglo American, Brazil
(from December 2023)
Key
Iron Ore operations
Other
114
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Integrated Annual Report 2023
Strategic Report
Iron Ore
Kumba Iron Ore
2023 summary
1
Fatality
0.98
TRIFR
$2,415 m
Underlying EBITDA
52%
Mining EBITDA margin
35.7 Mt
Production volume
One of the stormwater channels that has been constructed at Sishen to divert excess water away from
the mine site.
Climate change: building resilience
at our operations
We expect climate change to have
numerous implications for our business,
including the physical and social risks and
impacts caused by ever-more frequent
extreme-weather events, such as flooding
and prolonged drought conditions.
Most of our operations are in regions
that habitually experience severe water
constraints – such as Chile and Peru;
southern Africa; and Australia. Yet
operations in these regions can also
experience excessive precipitation events;
in recent years, our Steelmaking Coal
business in Australia and Kumba Iron Ore
in South Africa have been exposed to
serious flooding.
That is why we have been working for over
10 years to ensure that our operations
have the best available models to
understand, assess, mitigate and adapt to
the physical risks of climate change. We
draw on international expertise and latest
science to understand future climate
projections and the vulnerability of our
operations.
To assess these potential impacts and
to develop short, mid, and long term
adaptation actions, we have developed
climate and weather projections as part
of our physical climate change risk and
resilience approach. A key aspect of
our modelling, which now incorporates
a probable maximum precipitation
metric, is that we are gaining a better
understanding of how the projected
climate changes may impact water
management in the future.
Our initial data projections indicated
significant variability across our Group
and, as a result, each site will have its own
tailored approach to climate change-
related water management. For example,
despite being in a water-scarce area,
Kumba’s operations are water positive,
requiring active dewatering to maintain
safe and effective mining operations. This
water surplus means we were able to
supply 18,075 megalitres (ML) of water to
local communities.
At Kumba, any significant increase in
rainfall could lead to production delays,
land erosion on and off site, as well as
flooding and washouts along rail lines
and port-loading facilities. The Sishen
site, which is prone to extreme rainfall
events, is in the process of implementing
a comprehensive adaptive water
management plan, including investment
in stormwater infrastructure. Sishen has
also enhanced its Rainfall Readiness
Plan, focusing on limiting production
impacts arising from flooding. Currently,
a key constraint is not having sufficient
storage on site to capture and contain all
stormwater, so we are investigating the
feasibility of using a decommissioned
pit as a water-storage facility, which
would enable Sishen to be a zero water
discharge site and unlock other beneficial
use opportunities for the water captured
on site.
Next steps
The pathway we are on is based on
global efforts to mitigate climate change.
As such, it is continually evolving and
needing regular updates to make sure
current projections are still valid. We also
recognise that further analysis is required
to understand the potential impacts of
climate change outside of the mine fence,
as access to water will be an ongoing
issue for host communities and countries.
2023 results – Kumba Iron Ore(1)
Production volume (Mt)(2)
Sales volume (Mt)(2)
Unit cost ($/t)(3)
Group revenue – $m
Underlying EBITDA – $m
Mining EBITDA margin
Underlying EBIT – $m
Capex – $m
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
115
2022
37.7
36.7
40
4,580
2,211
48%
1,894
674
66%
0
1.55
9.0
1.0
11.4
6,700
2023
35.7
37.2
41
4,680
2,415
52%
2,136
538
71%
1
0.98
8.9
1.0
9.9
6,700
(1) Sales volumes, stock and realised price could differ to Kumba’s stand-alone reported results due to sales to other
Group companies.
(2) Production and sales volumes are reported as wet metric tonnes. Product is shipped with c.1.6% moisture from
Kumba.
(3) Unit costs are reported on an FOB wet basis.
Iron Ore
develop psychologically safe workspaces
where colleagues feel empowered to speak
up when they see unsafe work practices.
Environmental performance
In 2023, Kumba’s GHG emissions
were in line with the prior year at 1.0 Mt
CO2e (2022: 1.0 Mt CO2e), with energy
consumption decreasing marginally to
8.9 million GJ (2022: 9.0 million GJ). Despite
a 5% decrease in production, energy
consumption decreased to a lesser extent
owing to changing mining conditions, mainly
as a result of mining deeper pits and, as a
consequence, longer haul distances.
Total water withdrawals decreased by 13%
to 9.9 million m3, with Sishen being the main
contributor. We anticipate Sishen’s water
consumption to increase until 2025 when
dewatering will stabilise, offering the potential
to unlock further opportunities to provide
water to communities.
Financial performance
Underlying EBITDA increased by 9% to
$2,415 million (2022: $2,211 million), driven
by the higher average realised price as well
as slightly higher sales volumes. Unit costs
increased by 3% to $41/tonne (2022:
$40/tonne) due to lower production volumes
and high cost inflation, partly offset by a
weaker South African rand.
Capital expenditure decreased by 20% to
$538 million (2022: $674 million), mainly
as a result of lower deferred stripping
capitalisation due to lower waste volumes at
Kolomela and a weaker South African rand.
Our business
Kumba operates two open pit mines –
Sishen and Kolomela – both located in the
Northern Cape of South Africa, producing
high grade (63–65% average Fe content)
and high quality lump ore and a fine ore.
Around 65% of Kumba’s production is
lump, which commands a premium price,
owing to its excellent physical strength and
high iron content, as well as its suitability for
lower carbon, direct reduction steelmaking.
Kumba is serviced by an 861 km rail line to
the Atlantic coast at Saldanha Bay, managed
by Transnet, the third-party rail and port
operator.
Our Marketing teams work closely with our
customers to blend and match our products
with their needs – before shipment from
Saldanha Bay to China, Japan, Europe,
the Middle East and the Americas.
Safety
After being fatality-free for more than six
years, Kumba, regrettably, recorded a fatal
incident, when Nico Molwagae, a contractor,
was fatally injured in a drilling incident at
Kolomela mine. Several safety improvement
initiatives were implemented to strengthen
Kumba’s safety culture and performance,
including greater supervisory oversight and
improved equipment design. Sishen has
completed seven years of production without
a fatality.
Kumba continuously drives for zero harm
and the elimination of fatalities, which is
reflected in the improvement on most lagging
indicators, as well as the Leadership Time in
Field leading indicator. As a result, Kumba’s
TRIFR decreased by 37% to 0.98 (2022:
1.55). Kumba is reinvigorating its focus on
safety through the simplification of critical
controls and by embedding the Friendly
Safety Care Practice, launched to help
Strategic Report Integrated Annual Report 2023Anglo American plc
116
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Integrated Annual Report 2023
Strategic Report
Iron Ore
Operational outlook
Kumba is committed in its support of key
measures being undertaken by the National
Logistics Crisis Committee to improve the
logistics network. However, following an
extended period of under-performance by
the third-party logistics provider, Transnet,
and the amount of work required to turn
the situation around, the logistics network
is expected to remain constrained over the
near term. The decision has been made to
reduce production to align with this reduced
rail capacity and ensure a balanced value
chain. Production is therefore expected to
remain at 35–37 Mtpa for the period 2024 to
2026. Unit costs are expected to be between
$38–40/tonne during this three-year
period, benefiting from Kumba’s business
reconfiguration and cost optimisation
programme, in line with the lower production
profile.
Production guidance for 2024 is 35–37 Mt,
subject to third-party rail and port
performance, and 2024 unit cost guidance
is c.$38/tonne.
Markets
Average market price
(Platts 62% Fe CFR
China – $/tonne)
Average realised price
(Kumba export – $/
tonne) (FOB wet basis)
2023
2022
120
120
117
113
Kumba’s FOB realised price of $117/wet
metric tonne (wmt) was 15% higher than
the equivalent Platts 62% Fe FOB Saldanha
market price (adjusted for moisture) of
$102/wmt. This was driven by premiums for
higher iron content (at 63.7%) and relatively
high proportion of lump sold (approximately
66%) alongside provisional pricing benefits.
Operational performance
Production decreased by 5% to 35.7 Mt
(2022: 37.7 Mt), driven by a 6% decrease
at Sishen to 25.4 Mt (2022: 27.0 Mt) and
a 4% decrease at Kolomela to 10.3 Mt
(2022: 10.7 Mt). The under-performance
by the third-party logistics provider, Transnet,
resulted in production in the fourth quarter
being reduced to align to lower rail capacity
and alleviate mine stockpile constraints.
Sales volumes were 37.2 Mt, slightly higher
than the prior year (2022: 36.7 Mt), driven
by improved performance at Saldanha Bay
port, despite the low levels of finished stock
at the port.
As a result of actively managing inventory,
total finished stock decreased to 7.1 Mt(1)
(2022: 7.8 Mt(1)), with stock at the mines
decreasing to 6.5 Mt(1), which remains
above desired levels. However, due to rail
under-performance, stock at the port is
very low, having decreased to 0.6 Mt(1)
(2022: 0.8 Mt(1)).
(1) Production and sales volumes, stock and realised price
are reported on a wet basis and could differ to Kumba's
stand-alone results due to sales to other Group
companies.
At Kolomela, this bucket wheel excavator and stacker reclaimer work in combination 24/7 to reclaim
iron ore and then stack it in bulk quantities.
Minas-Rio
2023 summary
0
Fatalities
1.32
TRIFR
$1,598 m
Underlying EBITDA
48%
Mining EBITDA margin
24.2 Mt
Production volume (wet basis)
Iron Ore
Our business
Our integrated iron ore operation in Brazil,
Minas-Rio, consists of an open pit mine and
beneficiation plant, which produces a high
grade (c.67% Fe) pellet feed product, with
low levels of contaminants. The iron ore is
then transported through a 529 km pipeline
to the iron ore handling and shipping facilities
at the port of Açu.
Safety
Minas-Rio has not had a fatal incident since
2015. In 2023, the TRIFR decreased by 18%
to 1.32 (2022: 1.60).
Efforts during the year focused on improving
operational planning and encouraging
leaders to spend more time in the field,
supporting the workforce by creating a
psychologically safe work environment
where employees and contractors alike
feel empowered to speak up when they
encounter activities that they feel are unsafe.
Contractors have been included in Anglo
American Brazil’s Safety Culture Programme;
Minas-Rio is also implementing the Group’s
Contractor Performance Management
framework, designed to improve contractor
performance management, with a focus on
the delivery of improved risk-based planning
and safe work execution.
117
What rehabilitation involves
The Santo Antônio river project is
emblematic of our Sustainable Mining
Plan‘s many innovative water-stewardship
initiatives. The multi-year project that
commenced in 2021 is aimed at
regenerating 23 degraded springs at
the source of the Santo Antônio, a major
tributary of the Doce river. By the end of
2023, an important milestone had been
reached with the completion of the initial
‘Techniques for Ecosystem Recovery’
phase.
Working with the Instituto Espinhaço, and
supported by rural landowners, the project
has involved unclogging water courses,
installing protective fencing, removing
invasive trees and plant species, planting
native saplings, and monitoring the
vegetation of the area.
The project also includes developing a
network of local leaders and providing
training in environmental education
to encourage people to get involved
in looking after the environment.
Environmental engineer, Luiz Gustavo Dias,
explains: “The regeneration of these areas
aims to reinforce provision of ecosystem
services that benefit the whole of society
by increasing water availability and
improving water quality.”
Environmental manager, Tiago Alves,
adds: “This project highlights the
importance of partnerships between the
private sector, non-profit organisations
and other organisations involved in the
journey of mining towards sustainability.
The recognition from UNESCO shows
that we are heading in the right direction
to achieve an increasingly healthy
environment.”
After a series of interventions to unclog water
sources and remove invasive trees and plants,
water flows freely again in this stream that forms
part of the Santo Antônio river catchment area.
(Photo credit: Agroflor.)
Regenerating a precious water
resource
An important focus of Anglo American’s
Sustainable Mining Plan is to be
recognised as an industry leader in
biodiversity. We are putting that into
practice with a river-generation project
near to Minas-Rio which is located in
Brazil’s Minas Gerais state, a region noted
for its biodiversity hotspots and one of the
country’s priority conservation areas.
Recognition by UNESCO
The United Nations Organisation for
Education, Science and Culture (UNESCO)
has recognised Anglo American for its
water catchment regeneration project
on the Santo Antônio river in Minas
Gerais’ Conceição do Mato Dentro
municipality. This recognition means that
this initiative, developed in collaboration
with Instituto Espinhaço – a non-profit
NGO that operates throughout Brazil,
focusing on biodiversity, culture and
social development – is now listed as an
hydroecology project that is available for
study and benchmarking by UNESCO
partners the world over.
Strategic Report Integrated Annual Report 2023Anglo American plc 118
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Iron Ore
2023 results – Minas-Rio
Production volume (Mt)(1)
Sales volume (Mt)
Unit cost ($/t)
Group revenue – $m
Underlying EBITDA – $m
Mining EBITDA margin
Underlying EBIT – $m
Capex – $m
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
(1) Production is Mt (wet basis). Product is shipped with c.9% moisture.
2023
24.2
24.3
33
3,320
1,598
48%
1,413
371
24%
0
1.32
5.4
0.2
27.5
2,600
2022
21.6
21.3
35
2,954
1,244
41%
1,068
160
18%
0
1.60
5.1
0.2
41.4
2,600
Environmental performance
Energy consumption at Minas-Rio increased
by 5% to 5.4 million GJ (2022: 5.1 million GJ),
while Scope 1 GHG emissions were in line
with the prior year at 0.2 Mt CO2e (2022: 0.2
Mt CO2e). Minas-Rio has no Scope 2 GHG
emissions, as all power for the operation
comes from renewable sources.
Minas-Rio acquired new areas of natural
habitat as part of its strategy to create an
ecological corridor around the operation,
further reinforcing our commitment to
sustainable practices and ecological
connectivity in the region. To date, the
business manages more than 22,000
hectares of native vegetation, divided into
multiple protected areas.
Financial performance
Underlying EBITDA increased by 28%
to $1,598 million (2022: $1,244 million),
reflecting higher sales volumes and a higher
realised price, as well as lower unit costs.
Unit costs decreased by 6% to $33/tonne
(2022: $35/tonne), primarily reflecting higher
production volumes, partially offset by the
stronger Brazilian real.
Capital expenditure was 132% higher at
$371 million (2022: $160 million), mainly as
construction is under way for a new tailings
filtration plant that will reduce the deposition
rate on the tailings facility and extend its life.
In addition, there was higher spend on projects
to improve recoveries in the flotation circuit.
Markets
Average market price
(MB 65% Fe Fines CFR
– $/tonne)
Average realised price
(Minas-Rio – $/tonne)
(FOB wet basis)
2023
2022
132
139
110
108
Minas-Rio’s pellet feed product is higher
grade (with iron content of 67% and lower
impurities) so the MB 65 Fines index is used
when referring to the Minas-Rio product
since the cessation of the MB 66 index. The
Minas-Rio realised price of $110/wmt was
11% higher than the equivalent MB 65 FOB
Brazil index (adjusted for moisture) of
$99/wmt, reflecting the premium for our
high-quality product as well as provisional
pricing benefits.
Operational performance
Production increased by 12% to 24.2 Mt
(2022: 21.6 Mt), the best performance since
the start of Minas-Rio operations in 2014,
reflecting an integrated focus on stable and
capable operating performance across the
operation. The strong mining performance
was underpinned by improved mine access
and equipment availability, which led to
higher mine movement and enabled an
improved performance at the plant due to
the quality of ore feed, as well as increased
crushing circuit availability.
Operational outlook
Following the record quarterly production
in the fourth quarter of 2023, focus is on
embedding consistent, stable and strong
operating performance, while increasing the
maturity of capital projects to sustain and
grow production volumes. Beyond the three-
year guidance period, production growth will
be supported by projects to debottleneck
the plant and increase recoveries and
throughput. Optionality is also being
evaluated to maximise long term value in light
of the agreement to acquire and integrate the
contiguous Serra da Serpentina high grade
iron ore resource.
In parallel, Minas-Rio is focused on increasing
tailings storage capacity. The tailings filtration
plant project is on track for completion
by early 2026 and alternative, additional
disposal options continue to be studied.
In mid-2025, Minas-Rio will undertake the
next pipeline inspection of the 529 km
pipeline that carries iron ore slurry from the
plant to the port. Improvements were made
to the inspection strategy that extended
its duration to ensure the rigour of data
collection while also incorporating some
additional plant maintenance to coincide
with the operational stoppage. Pipeline
inspections take place every five years and
are validated by external consultants and
agreed with the Brazilian Environmental
Authorities.
Production guidance for 2024 is 23–25 Mt
and 2024 unit cost guidance is c.$35/tonne.
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Steelmaking Coal
Our high quality steelmaking coal assets, located
in Australia, produce premium quality hard coking
coal for our customers in the steelmaking industry.
Steel is the world’s most important engineering
and construction material. Over half of the world’s
steel is consumed by the construction industry,
which includes buildings and infrastructure,
such as railways and roads. Steel is also used
to manufacture vehicles, machinery, household
appliances and many other items associated with
everyday life.
Management team
Themba Mkhwanazi
Regional Director, Africa
and Australia
Daniel van der Westhuizen
CEO, Anglo American,
Australia
(1) Non-managed, equity accounted associate.
(2) Part of the Capcoal complex.
Key
Steelmaking Coal operations
Grosvenor
Moranbah North
Grasstree/Aquila(2)
Capcoal(2)
Dawson
Jellinbah(1)
119
1
Australia
120
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Steelmaking Coal
Steelmaking Coal
2023 summary
0
Fatalities
4.39
TRIFR
$1,320 m
Underlying EBITDA
32%
Mining EBITDA margin
16.0 Mt
Production volume
Kiri Sullivan (left) and Kiri Blanch from our Women of Steel mines rescue team.
Women of Steel: Queensland’s first
all-female mines rescue team
At Anglo American, safety comes first in
everything we do; we train, equip and
empower our people to work safely every
day. Mines rescue teams are a network
of experienced teams at each of our
operations that are on standby 24/7,
primarily providing emergency response to
the industry in case of incidents and mine
emergencies.
Equipped with the training and
lifesaving skills to respond to challenging
environments and hazards, our mines
rescue teams help us maintain safety in our
operations and protect our people.
Women of Steel
As the number of women in operational
roles continues to grow in our workforce,
a group of women at our Steelmaking
Coal Capcoal Open Cut operation have
come together to form Queensland's
first all-female mines rescue competition
team. The competitions will test the team’s
capabilities and response in various
scenarios to help build their confidence
in handling real-life situations.
Team captain, and emergency response
team co-ordinator, Kiri Blanch, comments:
“While women have been part of our
mines rescue teams for some years, both
on site and in competitions, an all-female
competition team simply made sense.
So, seven of us got together, a mixture of
experienced mines rescue members and
new recruits to train hard and achieve
the best results possible. We became
known as the ‘Women of Steel’, and it was
wonderful to see how enthusiastically we
were supported. For me, this is what living
the company’s Values and diversity are
all about.”
Looking ahead
CEO of Steelmaking Coal, Daniel van der
Westhuizen, observes: “It's a great source
of pride that our Australian mines rescue
teams have gained global recognition
for their expertise. The creation of the first
all-female rescue team in Queensland
marks a significant milestone in our
ongoing journey, and we are thrilled to
have established a new precedent in the
evolution of mines rescue.
“Our skilled mines rescue teams are a
critical part of our continued commitment
to the emergency capabilities of the
Queensland coal mining industry. I hope
that more people will be inspired by both
the existing leading rescue teams as well
as this new Women of Steel team and
volunteer with their local rescue teams to
learn essential skills. Being prepared for
emergency situations is crucial, whether
at work or in the community.”
121
2022
15.0
14.7
304
107
5,034
2,749
55%
2,369
648
85%
1
5.63
9.2
5.8
31.8
2,000
2023
16.0
14.9
261
121
4,153
1,320
32%
822
619
27%
0
4.39
10.2
4.9
32.8
2,500
(1) Production volumes are saleable tonnes, excluding thermal coal production of 1.1 Mt (2022: 1.6 Mt). Includes
production relating to third-party product purchased and processed at Anglo American’s operations, and may
include some product sold as thermal coal.
(2) Sales volumes exclude thermal coal sales of 1.7 Mt (2022: 1.7 Mt). Includes sales relating to third-party product
purchased and processed by Anglo American.
(3) Realised price is the weighted average hard coking coal and PCI sales price achieved at managed operations.
(4) FOB cost per tonne, excluding royalties and study costs.
Steelmaking Coal
controls on the job. Full deployment of FRM
is scheduled at all sites during 2024.
2023 results – Steelmaking Coal
Production volume (Mt)(1)
Sales volume (Mt)(2)
Price ($/t)(3)
Unit cost ($/t)(4)
Group revenue – $m
Underlying EBITDA – $m
Mining EBITDA margin
Underlying EBIT – $m
Capex – $m
Attributable ROCE
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
Our business
We are the world’s third largest exporter
of steelmaking coal and our operations
serve customers throughout Asia, Europe
and South America. Our assets include
the Moranbah and Grosvenor (both 88%
ownership) steelmaking coal mines, located
in Queensland, Australia.
Uses of steelmaking coal
Steelmaking coal is used principally in blast-
furnace steelmaking production; around
70% of global steel output is produced using
this method and, currently, there are no viable
at scale substitutes for metallurgical coal in
the steelmaking process.
Emerging markets, particularly in the Asia-
Pacific region, continue to drive demand
for steelmaking coal – helping to generate
the steel needed for infrastructure, housing,
transport and machinery.
Safety
There were zero fatalities in our Steelmaking
Coal business in 2023, and the TRIFR
decreased by 22% to 4.39 (2022: 5.63).
To support a step-change in safety
performance, there were several key focus
areas in the year, including VFL, learning
and investigations, system simplification
and standardisation, and contractor safety.
These workstreams were all supported
by Steelmaking Coal’s Safety Leadership
Practices programme that continued to
be rolled out during 2023 to raise safety
awareness, ownership, and accountability
at all levels of the organisation.
In the second half of the year, Steelmaking
Coal also started the Fatal Risk Management
(FRM) project, which is a strategic priority
for the business. This project will simplify
and operationalise risk management at the
frontline through a clear toolkit that supports
identification and verification of fatal risks and
Environmental performance
GHG emissions decreased by 15% to
4.9 Mt CO2e (2022: 5.8 Mt CO2e). This
significant progress on Steelmaking Coal’s
decarbonisation pathway was driven by
a reduction in methane venting at the
underground operations and an increase in
capacity to transfer methane to third parties
for beneficial use. Steelmaking Coal is on
track with the transition to source all its power
from renewables from 2025, after agreeing
terms for a 10-year supply partnership
with Stanwell Corporation, the Queensland
government-owned provider of electricity
and energy solutions.
Energy use increased by 11% to 10.2 million
GJ (2022: 9.2 million GJ), driven by higher
production levels.
Total water withdrawals increased by 3%
to 32.8 million m3 (2022: 31.8 million m3).
To help decrease fresh water withdrawals
across Steelmaking Coal, a 4 ML per day
reverse-osmosis plant was commissioned
at Aquila mine in June 2023.
Financial performance
Underlying EBITDA decreased to
$1,320 million (2022: $2,749 million), as
a result of a 14% decrease in the weighted
average realised price for steelmaking
coal and a 13% increase in unit costs to
$121/tonne (2022: $107/tonne), reflecting
the impact of high inflation and additional
operating activity. Furthermore, 2022
included a $343 million receipt from the
Group’s self-insurance entity.
Capital expenditure decreased to
$619 million (2022: $648 million), reflecting
lower life-extension expenditure following the
completion of the Aquila project in 2022.
Strategic Report Integrated Annual Report 2023Anglo American plc
122
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Steelmaking Coal
Markets
Average benchmark
price – hard coking coal
($/tonne)(1)
Average benchmark
price – PCI ($/tonne)(1)
Average realised price
– hard coking coal
($/tonne)(2)
Average realised price
– PCI ($/tonne)(2)
2023
2022
296
364
219
331
269
310
214
271
(1) Represents average spot prices.
(2) Realised price is the sales price achieved at managed
operations.
Average realised prices differ from the
average market prices due to differences in
material grade and timing of shipments. Hard
coking coal (HCC) price realisation increased
to 91% of average benchmark price (2022:
85%), as a result of the timing of sales.
The average benchmark price for Australian
HCC was $296/tonne (2022: $364/tonne).
At the start of 2023, steelmaking coal
prices rose in response to supply impacts in
Queensland arising from flooding and a rail
outage. Prices declined during the second
quarter amid supply recovery, but increased
in the second half of 2023 following low spot
availability of premium HCC as labour strikes
and production issues impacted Australian
supply. Seaborne supply from Australia was
further reduced by a cyclone event affecting
Queensland port operations in December.
Strong demand from Indian steelmakers for
imported steelmaking coal was driven by a
healthy domestic steel industry that resulted
in a substantial year-on-year increase in
crude steel production.
Operational performance
Production increased to 16.0 Mt (2022:
15.0 Mt), reflecting a steady step-up in
performance from the Aquila underground
operation due to its largely automated
longwall, and increased production at
Dawson and Capcoal open cut operations
which were impacted by unseasonal wet
weather in 2022.
The increased production was partly offset
by challenging operating conditions at
the Moranbah and Grosvenor longwall
operations.
Operational outlook
Following an extensive review during the
course of 2023 on realistic opportunities
to improve productivity, debottleneck the
operations and leverage technology, a
downwardly revised pathway has been
developed to progressively ramp-up towards
20 Mtpa of steelmaking coal production. This
pathway also incorporates the more stringent
safety operating protocols implemented by
the Queensland regulator in recent years,
as well as the more complex geotechnical
strata conditions that the Moranbah and
Grosvenor underground longwall operations
are navigating.
Export steelmaking coal production
guidance for 2024 is 15–17 Mt and 2024
unit cost guidance is c.$115/tonne. The next
longwall moves scheduled at Moranbah
and Grosvenor are both in the third quarter
of 2024. A walk-on/walk-off longwall move
is scheduled at Aquila during the second
quarter, with the impact on production
expected to be minimal.
Workers underground at Aquila, where longwall production began in 2022.
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Manganese
In Manganese, we have a 40% shareholding in the
Samancor joint venture (managed by South32,
which holds 60%). The manganese operations are
located in South Africa and Australia, producing
ore products for the steelmaking industry.
123
Hotazel Manganese Mines
GEMCO
South Africa
1
Australia
Key
Manganese operations
2023 results – Manganese
Production volume (Mt)
Sales volume (Mt)
Group revenue – $m
Underlying EBITDA – $m
Mining EBITDA margin
Underlying EBIT – $m
ROCE
2023
3.7
3.7
670
231
34%
145
81%
2022
3.7
3.6
840
378
45%
312
138%
124
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Manganese
Manganese
2023 summary
$231 m
Underlying EBITDA
34%
Mining EBITDA margin
3.7 Mt
Production volume – ore
Uses of manganese
The most significant use of manganese is
steel production, which consumes more
than 85% of all manganese mined. The ore
is particularly useful in increasing steel’s
resistance to oxidation; it can also improve
the overall strength, durability and workability
of the material.
Financial performance
Underlying EBITDA decreased by 39% to
$231 million (2022: $378 million), primarily
driven by the weaker average realised
manganese ore price, partially offset by lower
operating costs.
The average benchmark price for
manganese ore (Metal Bulletin 44%
manganese ore CIF China) decreased by
22% to $4.75/dmtu (2022: $6.06/dmtu).
Prices were on a declining trend throughout
much of the year as supply improved,
while demand continued to soften in the
second half of 2023. Prices stabilised during
December, however, ending the year at
$4.17/dmtu.
Operational performance
Attributable manganese ore production was
flat at 3.7 Mt (2022: 3.7 Mt).
125
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Crop Nutrients
Anglo American is developing the Woodsmith
project in the north east of England to access
the world’s largest known deposit of polyhalite,
a natural mineral fertiliser product containing
potassium, sulphur, magnesium and calcium – four
of the six nutrients that every plant needs to grow.
Management team
Woodsmith
Tom McCulley
CEO, Crop Nutrients
United Kingdom
Key
Crop Nutrients project
126
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Crop Nutrients
Crop Nutrients
2023 Summary
0
Fatalities
1.96
TRIFR
$641 m
Capital expenditure
We are already planning a sustainable future beyond Woodsmith’s life of mine, focused on economic
diversification and nature-based solutions.
Woodsmith – what a future mine
should look like
Building a major new mine today involves
long timeframes. From the initial discovery
of a mineral deposit, the planning, design,
permitting and construction phases
collectively can take up to 20 years. Once
in production, a mine may have a life of
several decades. And, after the mine gates
close for the final time, it is our duty to
ensure the site is returned back to its natural
state as far as possible.
Doing things right
Woodsmith will be a long-life mine, located
within the North York Moors National Park.
Therefore the utmost care is being taken
to ensure that the project is designed to
minimise environmental impact both in
construction and operations.
The mine site is designed to blend in
with the local landscape, with a low
visual presence. All mining operations
and the ore-transport system will be
out of sight below ground. The number
and size of surface buildings have been
kept to a minimum and designed to
look like agricultural buildings. Extensive
landscaping, planting and screening
will ensure the site blends in with the
surrounding area. Construction and
operational activities have also been
planned to minimise noise and light
intrusion, as well as limit surface traffic.
The distinctive characteristics of polyhalite
ore means that it can be extracted in a
1:1 ore ratio to produce our future-facing
product, POLY4, with next-to-no wasted
ore. Our simple granulation process
enables low energy and water use, a low
carbon footprint relative to comparable
fertiliser products, and generates next to
no waste. Further, and in contrast to the
great majority of existing mines, our mining
activities will generate no tailings, leading to
a smaller operational footprint and minimal
encroachment on the environment.
As well as having a low environmental
production footprint, POLY4 is uniquely
positioned to help tackle three key
agricultural industry challenges: the
increasing need to produce more food from
less available land; the need to reduce the
environmental impact of farming; and the
deteriorating health of soils.
Stakeholder engagement
Woodsmith and POLY4 will turn our vision
for the future of mining into a reality. Our
project will have a positive impact on the
local, regional and national economy
while having a minimal environmental
impact. An important part of our approach
is to ensure that we engage with and
listen to the full range of our stakeholders,
especially those most likely to be affected
by our presence. We are committed to
taking an active and positive role in our
local communities, making a meaningful
contribution to the social and economic
well-being of the region. We are proud of
the contribution we have already made,
and of the longer term commitments into
the operating phase of the mine. To date,
Woodsmith has contributed £1 million to
the local charitable foundation, as well
as creating close to 2,000 new jobs, with
over 70% being from the local area. As
well as job creation and apprenticeships,
we are also responding to key regional
challenges through the creation of
proactive programmes to develop skills
and improve outcomes for disadvantaged
young people, address health inequalities
and diversify the regional economy by
supporting the growth of key sectors.
First product is expected in 2027, with a
final design capacity of c.13 Mtpa, subject
to studies and approval.
Crop Nutrients
As a result of the highly efficient mine and
conveyor design and the minimal processing
requirements of the polyhalite ore, our POLY4
product will benefit from a comparatively low
carbon footprint, as well as being suitable for
organic agriculture.
Aside from the world class nature of the
orebody and the quality of the operation we
are developing, the addition of POLY4 to our
product range aligns well with our portfolio
trajectory towards those products that
support a low carbon economy and global
consumer demand – in this case, for food.
Woodsmith project
Throughout 2023, we saw continued good
progress on the core infrastructure, with
capital expenditure of $641 million
(2022: $522 million). Sinking activities at the
two deep shafts continue to progress well.
The service shaft is now c.745 metres deep,
having reached the expected depth for the
year. Sinking activities on the production
shaft began in January 2023 as planned, at
120 metres below the surface, and following
a successful ramp-up to planned sinking
rates, is now at a depth of c.510 metres.
Excavation of the three shallow shafts that
will provide both ventilation and additional
access to the Mineral Transport System (MTS)
tunnel is complete. The MTS tunnel is also
progressing to plan and has now reached
c.27.5 km of the total 37 km length.
Crop Nutrients
During 2024, a key focus area for shaft
sinking will be on progress through a strata
called the Sherwood sandstone, where we
expect sink rates to decrease due to the
expected hardness of the rock and potential
water fissures. This is planned for in progress
rates, and the intersection of the strata is
expected around mid-2024. On the tunnel
boring machine, there is a planned 3–4
month maintenance pause from the second
quarter of 2024, during which the tunnel
will be connected to the final intermediate
shaft, providing further tunnel access and
ventilation.
In parallel to the core infrastructure
development, we are enhancing the project’s
configuration to allow a higher production
capacity and more efficient, scalable mining
methods over time. The required studies for
this are progressing well and will ensure that
additional infrastructure is optimally designed
to enable future optionality and maximise
long term value over the expected multi-
decade asset life.
The project is planned to be submitted for
a Board approval decision on Full Notice to
Proceed in the first half of 2025, following
conclusion of the study programme.
Capital expenditure of $0.9 billion is
approved for 2024, the bulk of which will
continue to be invested on shaft sinking and
tunnel boring activities.
The project is expected to deliver first
product to market in 2027, with a final design
capacity of 13 Mtpa, subject to studies and
approval.
127
2022
254
(44)
522
0
1.90
0.1
0.0
0.1
500
2023
225
(60)
641
0
1.96
0.3
0.0
0.1
1,000
2023 results – Crop Nutrients
Group revenue – $m(1)
Underlying EBITDA – $m(1)
Capex – $m
Fatalities
TRIFR
Energy consumption – million GJ
GHG emissions – Mt CO2 equivalent
Total water withdrawals – million m3
Employee numbers
(1) Includes results from the interest in The Cibra Group, a fertiliser distributor based in Brazil.
Safety
The Woodsmith project recorded zero
fatalities (2022: zero) and a TRIFR of
1.96 (2022: 1.90).
Environmental performance
Across the Woodsmith project, energy usage
increased to 0.3 million GJ (2022: 0.1 million
GJ), in line with the increased activity on site,
as the project progresses. The percentage
contribution of renewable energy to overall
electricity use increased to 63% (2022: 34%).
Strategic Report Integrated Annual Report 2023Anglo American plc
128
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Crop Nutrients
The ongoing focus of market development
activities is to develop and implement
detailed sales and marketing strategies for
each region and to support customers with
their own market development activities to
further promote POLY4 to the end-users of
the product – farmers.
We have continued to develop our routes
to market partnerships in key high-value
regions, working closely with our distribution
partners, and also engaging deeper into
the value chain to ensure we deliver what
is needed at the farm gate. Through our
ongoing engagements with some 350 value
chain partners to date – including top retailers
in the United States, large distributors and co-
operatives in Europe, and major blenders and
mega farms in Brazil – we are working across
the full value chain to introduce POLY4 to the
market. We have also already engaged more
than 570 influencers in the industry, including
major universities, farming associations,
and academic research institutes, to ensure
that the industry recognises the benefits
that POLY4 will bring at scale into the
marketplace.
POLY4 has significant value beyond its
multi-nutrient content, and our innovative
marketing strategy will ensure that we unlock
the full potential of our product.
Market development – POLY4
POLY4 provides farmers, through one core
product, with a fertiliser solution to tackle the
three key challenges facing the food industry
today – the increasing demand for food from
less available land; the need to reduce the
environmental impact of farming; and the
deteriorating health of soils.
In tackling these challenges, the fertiliser
industry will evolve and need new solutions.
POLY4 represents a new solution, helping
farmers to deliver balanced, nutrient-efficient
and environmentally responsible crop
nutrition practices that are required at scale.
POLY4 offers farmers superior performance
compared to existing fertiliser products:
demonstrated crop yield improvement of
3–5% across a wide variety of crops and soil
types, improved crop quality and resilience to
drought and disease, and help in preserving
the health of a farmer’s greatest asset – their
soil. The use of POLY4 can also help minimise
the nutrients lost to the environment by
improving the ability of crops to take up and
utilise available nutrients – i.e. improving a
plant’s nutrient-use efficiency. Furthermore,
its granular form offers a more flexible and
convenient in-field application for farmers,
compared with common existing fertilisers.
All this, while also being low carbon relative
to comparable products, and certified for
organic agriculture.
Through our global agronomy programme,
we have conducted over 1,800 field
demonstrations to date, on over 80 crops,
and our research continues to reinforce
these superior qualities and characteristics
of POLY4.
A farmer inspects tomato plants in Zambia as part of our Crop Nutrients business’ global series of farm
trials of POLY4.
129
Corporate and other
Segment total
Prior year
Exploration
Prior year
Corporate activities and unallocated costs(1)
Prior year
Group revenue◊
$m
Underlying
EBITDA◊
$m
Underlying
EBIT◊
$m
Capex◊
$m
440
554
n/a
—
440
554
(193)
(440)
(107)
(155)
(86)
(285)
(403)
(593)
(107)
(162)
(296)
(431)
59
14
3
2
56
12
(1) Revenue within Corporate activities and unallocated costs primarily relates to third-party shipping activities, as well as the Marketing business’
energy solutions activities.
Financial overview
Exploration
Underlying EBITDA was a $107 million
loss (2022: $155 million loss) following a
decrease in other expenses due to timing
differences in copper. Exploration expenditure
across the Group was broadly in line with the
prior year.
Corporate activities and unallocated costs
Underlying EBITDA was a $86 million loss
(2022: $285 million loss), this improved result
was driven primarily by the Group’s self-
insurance entity and corporate cost savings.
The positive year-on-year variance reflects
the finalisation of the Grosvenor gas ignition
claim and the Moranbah overpressure event
claim in 2022 by the Group’s self-insurance
entity, which resulted in an expense in
Corporate activities that was offset within
the underlying EBITDA of Steelmaking Coal.
There have been no equivalent insurance
claim settlements in the current year.
Corporate cost savings of $0.3 billion were
realised and are partially recognised in the
overheads of the underlying businesses.
Strategic Report Integrated Annual Report 2023Anglo American plc
130
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Non-financial and sustainability
information disclosures and footnotes
Non-financial and sustainability information statement
The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 amend sections 414C, 414CA and 414CB of the Companies Act 2006, placing requirements
on the Group to incorporate climate disclosures in our integrated annual report. We believe these have been addressed within our climate-related disclosures on pages 49 to 57 and, as such,
have referenced the location of each disclosure within our TCFD disclosure table on pages 132–137.
Reporting requirement
Environmental matters
Policies and standards
Outcomes and additional information
Safety, Health and Environment (SHE) Way and Policy
Protecting our natural environment
Climate Change Policy
Disclosures related to the recommendations of the TCFD
Energy and GHG Emissions Standard
Climate change
Water Policy and Water Management Standard
Water
Mineral Residue Technical Management Standard
Mineral residue management
Employees
Human rights
Social matters
Code of Conduct
SHE Way and Policy
HIV/AIDS Policy
Human Rights Policy
The Social Way
Responsible Sourcing Standard for Suppliers
Supply Chain Local Procurement Policy
Anti-corruption and anti-bribery
Code of Conduct
Business Integrity Policy
Principal risks and impact of
business activity
Non-financial KPIs
Building a purpose-led culture
Safety
Health
Human rights
Social performance
Supply chain
Supply chain
Building a purpose-led culture
Business integrity
Our business model
Our material matters
Managing risk effectively
Key performance indicators
Page reference
57–58
132–137
49–57
58
59
74
68
68
64
60
64
64
74
74
8
20–22
79–85
86–89
Non-financial information disclosures and footnotes
131
Footnotes
(1) Throughout this Strategic Report, ‘employees’ is the average number of Group employees, excluding employees of
contractors, associates and joint ventures, and including a proportionate share, based on the percentage
shareholding, of employees within joint operations.
(2) Wages and benefits are the payments made to the Group’s employees, excluding employees of contractors,
associates and joint ventures, and including a proportionate share, based on the percentage shareholding, of
payments made to employees within joint operations. Includes social security costs of $181 million borne by the
Group which are also included in the Taxes and royalties figure.
(3) Taxes and royalties include all taxes and royalties borne and taxes collected by the Group. This includes corporate
income taxes, withholding taxes, mining taxes and royalties, employee taxes and social security contributions and
other taxes, levies and duties directly incurred by the Group, as well as taxes incurred by other parties (e.g. customers
and employees) but collected and paid by the Group on their behalf. Figures disclosed are based on cash remitted,
being the amounts remitted by entities consolidated for accounting purposes, plus a proportionate share, based on
the percentage shareholding, of joint operations. Taxes borne and collected by equity accounted associates and joint
ventures are not included.
(4) Local procurement is defined as procurement from businesses that are registered and based in the country of
operation – also referred to as in-country procurement – and includes local procurement expenditure from the Group’s
subsidiaries and a proportionate share of the Group’s joint operations, based on shareholding.
(5) With the exception of Gahcho Kué, which is on an attributable 51% basis.
(6) Copper equivalent volume growth from 2022 baseline, pre the commissioning of Quellaveco.
(7) Carbon neutrality is a condition in which during a specified period there has been no net increase in the global
emission of greenhouse gases (GHGs) to the atmosphere as a result of the GHG emissions associated with the
subject during the same period.
(8) Data relates to subsidiaries and joint operations over which Anglo American has management control. Data excludes
(9)
De Beers’ joint operations in Namibia and Botswana. Historical GHG, energy consumption and fresh water
withdrawals data has been adjusted to exclude Thermal Coal South Africa, which was divested in June 2021.
In 2020, we launched a new integrated social performance management system (Social Way) which has raised
performance expectations and has resulted in continued improvement in our social performance. While sites are
assessed annually against all requirements applicable to their context, for consistency during the transition period, the
metric reflects performance against the Social Way foundational requirements.
(10) Anglo American supports jobs through training, mentoring and capacity development. The number of jobs supported
includes existing jobs (in activities supported by the intervention) and newly created jobs through the programmes.
Jobs supported are measured as full time equivalent jobs. Data represents jobs supported since 2018, in line with the
Sustainable Mining Plan Livelihoods stretch goal. Induced jobs – employment generated by local spending on goods
and services by our employees and the employees of our suppliers – are estimated using input-output analysis; a well
established economic modelling approach.
(11) Attributable free cash flow includes expenditure on non-current intangible assets (excluding goodwill).
Strategic Report Integrated Annual Report 2023Anglo American plc 132
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Disclosures related to the recommendations of the TCFD
Disclosures related to the
recommendations of the TCFD
While we endeavour to include as much
information as possible on our approach
to climate change in the Integrated Annual
Report, our Climate Change Report offers
more comprehensive disclosure, including
more detail on physical and adaptation risk,
our most recent detailed scenario analysis
and the pathway to achieving our Scope 3
GHG reduction ambition. References in the
table below include the Integrated Annual
Report 2023 and the Climate Change Report
2023, both of which are available on our
website.
▶ For more on our Climate Change Report 2023
Visit angloamerican.com/climate-change-2023
Anglo American’s response to climate
change is multi-disciplinary and is detailed
throughout our reporting suite – including
the Integrated Annual Report and our
Climate Change Report. In line with the
UK Listing Rules, we confirm that the
disclosures included in the Integrated
Annual Report 2023 and the Climate
Change Report 2023 are consistent
with the TCFD Recommendations and
Recommended Disclosures, as well as the
TCFD’s supplementary guidance for non-
financial groups, but note monitoring of
company climate-related financial reporting
transfers from the Financial Stability Board
to the International Sustainability Standards
Board (ISSB) and the International Financial
Reporting Standards (IFRS) from 2024
onwards. Additionally, following amendment
of sections 414C, 414CA and 414CB of the
Companies Act 2006, we have indicated in
the table below which of the climate-related
disclosures, outlined in Section 414CB,
are addressed by the TCFD disclosures,
alongside the pages of the 2023 Integrated
Annual Report where these are located.
The table below offers guidance on where to find information relating to each of the TCFD’s recommendations and Companies Act section 414CB disclosure requirements.
Disclosures related to the recommendations of the TCFD
Governance
Disclose the organisation’s governance around climate-related risks and opportunities.
Recommended disclosures
References
a) Describe the Board’s
oversight of climate-
related risks and
opportunities.
Summary: The Board provides leadership to the Group and is collectively responsible for promoting and safeguarding the long term success of the
business, including the resilience of the business to, and the opportunities that flow from climate change. The Board focuses on workstreams that
underpin our 2040 carbon neutrality targets and considers global trends that may have a consequence on the Group’s strategy, including climate
change. The Board delegates powers and oversight of climate-related considerations to its various committees, including its Sustainability Committee,
which oversees material policies, processes and strategy designed to manage climate-related risks and opportunities.
Integrated Annual Report 2023: Page 14 describes the insights the Board considers when reviewing and endorsing the Group’s long term strategy and
related decisions. Climate change considerations are included within the material matters (pages 20–23), our analysis of global trends (pages 24–28),
our capital allocation decisions (pages 76–78) and within our principal risks – specifically risks 7 and 10 (pages 79–85). Page 49 describes our policies
and governance processes related to climate change. Page 154 describes the discussions and decisions taken by the Board in the year that relate to
climate change. Page 165 details the items related to climate change discussed by the Board’s Sustainability Committee in the year.
Climate Change Report 2023: Pages 42–43 describe the Board’s climate change capability and gives detail on the Group’s climate-related
governance, oversight and management structure.
133
CA 414CB
(a)
b) Describe
management’s
role in assessing and
managing climate-
related risks and
opportunities.
Summary: Anglo American has a Climate Change Steering Committee, which is chaired by the strategy & sustainability director. The Committee
was established as a cross-functional body to draw together all workstreams across the Group related to climate change and to have collective
oversight and scrutiny the associated workstreams. A cross-functional Climate Change Working Group exists to provide expert, working level
support to Executive and Board level leadership. The chief executive, who is advised and supported by the wider Executive Leadership Team (ELT), is
responsible and accountable for aligning our business practices with our climate change commitments and ambitions. Sitting on the ELT, the strategy &
sustainability director is responsible for overseeing the company’s overall approach climate change, in addition to co-ordination of the work to meet our
commitments.
(a)
Integrated Annual Report 2023: Page 14 describes the insights the chief executive and senior management take into account when formulating the
Group’s long term strategy. Climate change considerations are included within the material matters (pages 20–23), our analysis of global trends (pages
24–28), our capital allocation decisions (pages 76–78) and within our principal risks (pages 79–85). Page 49 describes our policies and governance
processes related to climate change, including climate-related targets within executive remuneration. Page 194 of the Remuneration report details
progress against climate-related targets and the impact on executive remuneration in the year.
Climate Change Report 2023: Pages 42–43 describe the Board’s climate change capability and give detail on the Group’s climate-related
governance, oversight and management structure, including the role of the Group’s Climate Change Steering Committee and the ELT.
Strategic Report Integrated Annual Report 2023Anglo American plc 134
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Disclosures related to the recommendations of the TCFD
Strategy
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning where such information is material.
Recommended disclosures
References
a) Describe the
climate-related risks
and opportunities
the organisation has
identified over the
short, medium and
long term.
b) Describe the
impact of climate-
related risks and
opportunities on
the organisation’s
businesses, strategy,
and financial
planning.
Summary: Climate change has the potential for significant long term impact on our world and on our industry. We expect climate change to impact
the mining industry through both risks and opportunities in two broad areas: transition impacts – the potential impact on demand for different products,
given assumptions on regulatory, technological and behavioural changes in the transition to a low carbon economy; and physical impacts – the
potential impact on our operations and surrounding communities from both acute extreme weather events and chronic shifts in climate patterns.
Integrated Annual Report 2023: Pages 50–53 describe the potential impacts of climate change on both Anglo American and the mining industry, as
well as the opportunities the Group believes it can realise through its strategic choices. Page 50 gives an indication of the outlook for mining products
profit pools under both a 1.5oC and 2.50C global warming scenario. Page 51 describes the transitional impacts we believe climate change will have
on our business including the short, medium and long term risks and opportunities related to each of the products and commodities we produce.
Pages 52–53 describe the physical risks our operations and host communities face, as well as our approach to adaptation. Pages 30–39 and page
54 describe the Group’s portfolio strategy and evolution and how that has been influenced by the threat of climate change. Pages 44–45 describe the
technological innovations being delivered across the Group to reduce energy and water consumption and pages 47–48 describe the efforts of our
Marketing business to deliver products that help enable our customers to achieve their climate change ambitions. The principal risks related to climate
change and water are described on pages 83–84.
Climate Change Report 2023: Pages 20–23 have more detail on the physical and adaptation climate risks facing our operations and host
communities in the short, medium and long term, and our approach to them.
CA 414CB
(d)
Summary: Anglo American’s strategy seeks opportunities in the metal and mineral needs of the future, including, critically, the impacts of climate
change and the energy transition. The resilience of our portfolio to a changing climate also forms a key part of the Company’ s strategy. We draw on
multiple sources to judge the contribution that individual assets would make to the portfolio under different climate scenarios, and, amongst other
things, this informs the way that we allocate capital.
(e)
Integrated Annual Report 2023: Pages 30–39 and page 54 describe the Group’s portfolio strategy and evolution and how that has been influenced
by climate change. Pages 44–45 describe the technological innovations being delivered across the Group to reduce energy and water consumption
and pages 47–48 describe the efforts of our Marketing business to deliver products that help enable our customers to achieve their climate change
ambitions. Page 54 gives more detail on our strategy to deliver a future-enabling portfolio and pages 76–78 describe our approach to capital
allocation to achieve our carbon reduction targets, including the carbon pricing we use when appraising investment decisions. Pages 50–51 describe
our approach to transition risk and explains how we believe Anglo American will remain resilient in a 1.5˚C future. Pages 76–78 describe how broader
sustainability considerations, including climate change, are embedded in our capital allocation decisions.
Climate Change Report 2023: Page 11 explains the strategic principles that guide our portfolio choices and how we assess the resilience of our
portfolio in a 1.5˚C world. Page 11 also gives further details on the role we believe our products have to play in a low carbon future. Pages 11–17
explain how we manage transition risks through portfolio evolution. Pages 18–23 have more detail on the physical and adaptation climate risks facing
our operations and host communities in the short, medium and long term, and our approach to them.
Disclosures related to the recommendations of the TCFD
Recommended disclosures
References
c) Describe the
resilience of
the organisation’s
strategy, taking
into consideration
different climate-
related scenarios,
including a 2°C or
lower scenario.
Summary: Anglo American’s strategy seeks opportunities in the metal and mineral needs of the future, including critically the impacts of climate
change and the energy transition. The resilience of our portfolio to a changing climate also forms a key part of the Company’s strategy. We draw on
multiple sources to judge the contribution that individual assets would make to the portfolio under different climate scenarios, and, amongst other
things, this informs the way that we allocate capital.
Integrated Annual Report 2023: Pages 50–53 describe the potential impacts of climate change on both Anglo American and the mining industry, as
well as the opportunities the Group believes it can realise through its strategic choices. Page 50 gives an indication of the outlook for mining commodity
profit pools under both a 1.5oC and 2.50C global warming scenario. Pages 50–51 describe the transitional impacts we believe climate change will
have on our business including the short, medium and long term risks and opportunities related to each of the products and commodities we produce.
Pages 52–53 describe the physical risks our operations and host communities face, as well as our approach to adaptation.Pages 30–39 and page 54
describe the Group’s portfolio strategy and evolution and how that has been influenced by climate change. Pages 44–45 describe the technological
innovations being delivered across the Group to reduce energy and water consumption and pages 47–48 describe the efforts of our Marketing
business to deliver products that help enable our customers to achieve their climate change ambitions. Page 54 gives more detail on our strategy to
deliver a future-enabling portfolio and pages 76–78 describe our approach to capital allocation to achieve our carbon reduction targets, including
the carbon pricing we use when appraising investment decisions. Pages 76–78 describe how broader sustainability considerations, including climate
change, are embedded in our capital allocation decisions.
Climate Change Report 2023: Page 11 explains the strategic principles that guide our portfolio choices and how we assess the resilience of our
portfolio in a 1.5˚C world. Page 11 also gives further details on the role we believe our products have to play in a low carbon future. Pages 11–17
explain how we manage transition risks through portfolio evolution. Pages 18–23 have more detail on the physical and adaptation climate risks facing
our operations and host communities in the short, medium and long term, and our approach to them.
135
CA 414CB
(f)
Strategic Report Integrated Annual Report 2023Anglo American plc 136
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Disclosures related to the recommendations of the TCFD
Risk management
Disclose how the organisation identifies, assesses and manages climate-related risks.
Recommended disclosures
References
a) Describe the
Summary: Our risk management processes embed climate change in the understanding, identification and mitigation of risk.
organisation’s
processes for
identifying and
assessing climate-
related risks.
Integrated Annual Report 2023: Pages 49–54 describe our approach to climate-related risk, including both transition and physical risks. Pages 79–85
describe the Group’s risk identification process and has more detail on climate change and water, both considered principal risks.
Climate Change Report 2023: Page 46 describes our understanding, assessment and management of climate-related risks. Pages 11–17 explain
how we manage transition risks through portfolio evolution. Pages 18–23 have more detail on the physical and adaptation climate risks facing our
operations and host communities in the short, medium and long term, and our approach to them.
CA 414CB
(b)
b) Describe the
Summary: Our risk management processes embed climate change in the understanding, identification and mitigation of risk.
(b)
organisation’s
processes for
managing climate-
related risks.
c) Describe how
processes for
identifying, assessing
and managing
climate-related risks
are integrated into
the organisation’s
overall risk
management.
Integrated Annual Report 2023: Pages 49–54 describe our approach to climate-related risk, including both transition and physical risks. Pages 79–85
describe the Group’s risk identification process and has more detail on climate change and water, both considered principal risks, and how we manage
and mitigate those risks. Our Portfolio (pages 30–39) and Innovation (pages 42–65) sections of this report provide detail on the strategic portfolio
choices we have made and the technological innovations we are delivering across the Group to reduce energy and water consumption and mitigate
the impacts of climate change. Pages 54–57 describe how we plan to decarbonise our operations, page 57 explains the pathway to decarbonising
our value chains.
Climate Change Report 2023: Page 46 describes our understanding, assessment and management of climate-related risks. Pages 42–43 describe
the Board’s climate change capability and give detail on the Group’s climate-related governance, oversight and management structure, including the
role of the Group’s Climate Change Steering Committee and the ELT. Pages 11–17 explain how we manage transition risks through portfolio evolution.
Pages 18–23 have more detail on the physical and adaptation climate risks facing our operations and host communities in the short, medium and long
term, and our approach to them.
Summary: Our risk management processes embed climate change in the understanding, identification and mitigation of risk.
(c)
Integrated Annual Report 2023: Pages 49–54 describe our approach to climate-related risk, including both transition and physical risks. Pages 79–85
describe the Group’s risk identification process and has more detail on climate change and water, both considered principal risks, and how we manage
and mitigate those risks.
Climate Change Report 2023: Page 46 describes our understanding, assessment and management of climate-related risks. Pages 42–43 describe
the Board’s climate change capability and give detail on the Group’s climate-related governance, oversight and management structure, including the
role of the Group’s Climate Change Steering Committee and the ELT. Pages 11–17 explain how we manage transition risks through portfolio evolution.
Pages 18–23 have more detail on the physical and adaptation climate risks facing our operations and host communities in the short, medium and long
term, and our approach to them.
Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
Disclosures related to the recommendations of the TCFD
Recommended disclosures
References
a) Disclose the
Summary: We use a range of metrics to assess climate-related risks and opportunities, including Scope 1, 2 and 3 GHG emissions and energy use.
137
CA 414CB
(h)
Integrated Annual Report 2023: Page 55 and page 57 show the metrics used by the Group when assessing climate-related risks and opportunities.
metrics used by
the organisation
to assess
climate-related risks
and opportunities
in line with its
strategy and risk
management
process.
b) Disclose Scope
Summary: We use a range of metrics to assess climate-related risks and opportunities, including Scopes 1, 2 and 3 GHG emissions and energy use.
(g)
Integrated Annual Report 2023: Page 55 and page 57 show our Scope 1, 2 and 3 GHG emissions. Page 329 shows current and historical Scopes 1
and 2 emissions by business.
Climate Change Report 2023: Page 33 provides more details on our Scope 3 GHG by each of the categories included in the Greenhouse Gas
Protocol’s methodology.
Summary: We are targeting a 30% reduction in GHG emissions by 2030 on a 2016 baseline and have a goal to be carbon neutral across our
operations for Scopes 1 and 2 emissions by 2040. Our ambition is to reduce our Scope 3 footprint by 50% against a 2020 baseline by 2040.
(g)
Integrated Annual Report 2023: Pages 54–57 describe our climate-related goals and ambitions.
1, Scope 2, and, if
appropriate, Scope
3 GHG emissions
and the related risks.
c) Describe the
targets used by
the organisation to
manage climate-
related risks and
opportunities
and performance
against targets.
Strategic Report Integrated Annual Report 2023Anglo American plc 138
Anglo American plc
Integrated Annual Report 2023
Strategic Report
Streamlined energy and carbon reporting
Scope 1 emissions – Global
Scope 2 emissions – Global
Total Scope 1 and 2 emissions – Global
Group emission intensity
Scope 3 emissions – Global*
Total Scope 1 and 2 emissions from UK-based entities
Energy use from UK-based entities
Energy use – Global*
2023
7.5
5.0
12.5
5.8
95.82
0.02
2022
8.3
5.0
13.3
6.1
104.5
0.01
131,476,718
90,902,808
Commentary
Measured in Mt CO2e
Measured in Mt CO2e
Measured in Mt CO2e
Measured in tonnes CO2e per tonne CuEq production
Measured in Mt CO2e
Measured in Mt CO2e
Measured in kWh
89
83
Measured in million GJ
* Global energy use is presented in million GJ as this is the measurement the Group uses internally. The equivalent energy use figure in kWh is 24,723,511,650 (2022: 22,977,777,778 kWh).
Further information:
Disclosure of our energy and Scope 1, 2 and
3 emission reduction targets can be found on
page 46.
Disclosure of the principal energy efficiency
initiatives deployed by the Group to meet
those targets can be found on pages 54–57.
Methodologies used to calculate energy use
and emissions data can be found on pages
316–317.
Assurance of data:
As a member of the International Council on
Mining and Metals (ICMM), Anglo American
is committed to obtaining specific assurance
over specified assertions related to the
Sustainability Report, including data related
to GHG emissions and energy use.
IBIS ESG Consulting Africa (Pty) Ltd (IBIS)
was commissioned by Anglo American
to conduct an independent third-party
assurance engagement in relation to its
Sustainability Report for the year ended
31 December 2023. This data has been
reproduced in the Anglo American plc
Integrated Annual Report 2023.
See pages 102–103 of the Anglo American plc
Sustainability Report 2023 for more details on
the assurance process and conclusions.
▶ For more information, see our Sustainability Report 2023
Visit angloamerican.com/sustainability-report-2023
Anglo American plc
Integrated Annual Report 2023
139
Governance
This section of the Integrated Annual Report provides an overview
of the means by which the Company is directed and controlled.
The Board is there to support and challenge management and
to ensure that we operate in a manner that promotes the long
term success of Anglo American. In this section we describe the
ways in which we seek to achieve this.
Contents
140 Chairman’s introduction
142 Directors
146 Executive Leadership Team
148 Board roles and responsibilities
151 Board operations
153 Board activity
156 Board effectiveness in 2023
158 Board visits in 2023
Compliance with the UK Corporate
Governance Code
The Board supports the principles and provisions of the
UK Corporate Governance Code 2018 (the Code) issued by the
Financial Reporting Council (FRC), which is available on the FRC’s
website (www.frc.org.uk). The principles and provisions of the Code
have applied throughout the financial year ended 31 December
2023. It is the Board’s view that the Company has complied
throughout the year with the Code. The ways in which the Code
has been applied can be found on the following pages:
Code section and where to find details
Section 1: Board leadership and company purpose
Further detail on how the Board promotes the long term success
of the Group is provided in the Strategic Report on pages 2–138.
Relations with shareholders are described on page 163. For the
ways in which the Board engages with its key stakeholders, see
pages 16–19 of our Strategic Report and our Section 172
statement on page 29, and the Stakeholder engagement section
on pages 161–163 of this report. Our whistleblowing programme
is described on page 177.
The Governance report and Financial Statements form part of the Anglo American plc
Integrated Annual Report for the year ended 31 December 2023 and should be read
in conjunction with the Strategic Report of the Integrated Annual Report.
161 Stakeholder engagement
164 Sustainability Committee report
166 Nomination Committee report
168 Audit Committee report
178 Directors’ remuneration report
185 Directors’ remuneration policy
191 Annual report on directors’ remuneration
212 Statement of directors’ responsibilities
Section 2: Division of responsibilities
Pages 142–150 give details of the Board and executive
leadership and the Board governance structure.
Section 3: Composition, succession and evaluation
The work of the Nomination Committee, and the processes
used in relation to Board appointments, are illustrated on
pages 166–167. The findings of the internal effectiveness
review of the Board and committees are described on
pages 156–157.
Section 4: Audit, risk and internal control
The report of the Audit Committee is found on pages
168–177, with further detail on the Group’s principal risks
to the business in the Strategic Report on pages 81–85.
Section 5: Remuneration
The Group’s remuneration policy and the report of the
Remuneration Committee are found on pages 178–211.
140
Anglo American plc
Integrated Annual Report 2023
Governance
Chairman’s introduction
Chairman’s introduction
On behalf of the Board, I am pleased to introduce
the Anglo American plc Governance report,
in which we describe our corporate governance
arrangements, the activities of the Board and
its committees, and how the Board discharged
its duties throughout 2023.
Board composition and succession
Board and executive leadership succession in public
companies has – rightly – been the subject of scrutiny in recent
years. In our own Company, Board succession planning
continued to be a focus area in 2023. In carrying out our
ongoing Board renewal, we strive to maintain the right balance
of capabilities, experience, diversity and continuity required to
sustain the Group’s long term success as it continues to evolve
its portfolio and wider business interests.
In April 2023, I was pleased to welcome Magali Anderson to
the Board as a non-executive director and member of the
Sustainability Committee. Magali’s experience in capital
intensive industries from her international executive career
in operational, commercial and business transformation
leadership roles, and a deep understanding of sustainability in
its broadest sense, adds greater breadth of insight to the Board.
In December, Stephen Pearce stepped down as finance
director after serving on the Board since 2017. Stephen was
succeeded by John Heasley, who joined the Board as finance
director on 1 December 2023. John brings proven financial,
strategic and commercial expertise to the role of finance
director, coupled with hands-on operational experience of
supporting sustainable mining through technology.
On behalf of the Board, I would like to reiterate my thanks to
Stephen for his considerable contributions to Anglo American
and his steady hand as finance director for nearly seven years.
At the date of this report, four of the 10 Board directors are
female, including our Audit Committee chair; two are historically
disadvantaged South Africans; and six different nationalities
are represented, bringing experience from all of our major
regions, notably southern Africa, South America and Australia.
In 2024, the Nomination Committee will continue to focus
on succession planning for the Board and the Executive
Leadership Team, to ensure the organisation has a strong
and diverse pipeline to take up senior leadership roles in
the future.
The operation of the Board in 2023
The Board has continued to operate effectively throughout
2023. Each year, the Board undertakes a rigorous review of
its effectiveness and performance, and that of its committees
and individual directors, while at least every three years this is
facilitated by an external third party. In 2023, our review was
carried out internally. I am pleased to report that the overall
conclusion of the internal review is that the Board and
committees continue to be effective and function well.
I believe director and Board site visits to be invaluable. They
provide an opportunity for directors to learn more about the
operations and understand the opportunities and challenges
faced by the businesses in their local environments. Site visits
are a key mechanism for the Board to directly engage with the
workforce from a range of backgrounds and levels of seniority,
and also present opportunities to meet with representatives
from host communities. I was delighted that, in 2023, we were
able to facilitate several site visits for directors. As a Board, in
September, we went to see the progress being made at our
Woodsmith project in north east England, and in July our
Sustainability Committee spent time at the Venetia mine in
South Africa. In April, the Audit Committee met with Marketing
leaders in our Singapore hub, and three non-executive directors
visited our Steelmaking Coal operations in Australia.
“Free market systems need a robust
governance framework if they are to
retain the trust of shareholders and
society. I believe that the full breadth
of sustainability considerations should
always underpin this framework and
be at the heart of how responsible
companies do business.”
Stuart Chambers
Chairman
Anglo American plc
Integrated Annual Report 2023
Governance
Chairman’s introduction
141
Board engagement with stakeholders
Stakeholder considerations are integral to our discussions
at Board meetings and the decisions we make take into
account potential impacts on them. Following our 2022 internal
evaluation, the Board agreed one of its effectiveness priorities
in 2023 was to pursue opportunities to have greater direct
engagement with representatives of host communities. I am
pleased that Board members were able to engage directly
with local communities at the various site visits during the
year in order to gain a better understanding of their interests
and perspectives.
Our investor relations team manages the day-to-day
interactions with investors and our key financial audiences.
Our chief executive, finance director and other senior executives
host regular meetings with investors, as well as potential
shareholders, throughout the year. As chairman, I meet with
many of our major shareholders in the course of the year.
The Board also recognises the importance of the AGM as
an opportunity for shareholders to engage with the Board
and provide feedback.
The Board continues to enthusiastically embrace the board-
workforce engagement recommendations contained in the
UK Corporate Governance Code. Anglo American’s Global
Workforce Advisory Panel currently comprises 12 employees
drawn from across our business and is chaired by non-
executive director Marcelo Bastos. To help facilitate the Board’s
oversight role in the evolution of the organisation’s culture, the
Panel enables the Board to better understand and take into
account the views of the workforce, and how well the Group’s
purpose, values and desired culture are embedded. In 2023,
the Panel met on three occasions, one of which was in person in
South Africa. I was delighted that Duncan Wanblad, a number of
non-executive directors and I were able to engage directly with
Panel members during our Board site visits on a number of
occasions during the year. On behalf of the Board, I thank Panel
members for their ongoing commitment and look forward to the
Panel’s continued insights.
▶ The outcomes of our Board effectiveness review are described on
pages 156–157 and our Board site visits are illustrated on pages 158–160.
▶ For more information on the Panel and the ways in which we currently
engage with our key stakeholders
See pages 161–163
Stuart Chambers speaking with Leah Swain, chief executive of the
Woodsmith Foundation, at the Eastside Community Hub in Whitby
during the Board visit in September 2023.
Committee governance
Starting on page 164, each Board committee chair presents
a report on the activities of their committee during 2023. The
effective and efficient operation of the committees and their
interaction with the Board are vital to ensure that all matters
receive the necessary attention in a timely manner. I am
grateful to the members and the chairs of those committees
in particular for their commitment and the work that they do
throughout the year in this regard.
2024 Annual General Meeting
Our 2024 AGM will again be held as a hybrid meeting and
shareholders will be welcome to attend, vote, raise questions
and be heard both physically in the room and via the virtual
platform. I look forward to engaging with as many of you as
possible at the AGM, in person or virtually, and would
encourage you to vote your shares even if you cannot attend
in person, so that we gain a better understanding of the views
of our shareholders as a whole.
Stuart Chambers
Chairman
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Governance
Directors
Directors
Committee member key
Audit Committee
Nomination Committee
Remuneration Committee
Sustainability Committee
Chair of Committee
Member of Committee
Stuart Chambers
Chairman
Duncan Wanblad
Chief Executive
Qualifications: BSc (Applied Physics), PhD
Business Administration, FIChemE
Appointed: 1 September 2017 and as Chairman
on 1 November 2017
Qualifications: BSc (Eng) Mech, GDE
(Eng Management)
Appointed: 19 April 2022 as Chief Executive
John Heasley
Finance Director
Qualifications: BA, CA
Appointed: 1 December 2023 as Finance
Director
Skills and experience
Skills and experience
Skills and experience
Stuart contributes to Anglo American
significant global executive and boardroom
experience across the industrial, logistics
and consumer sectors.
Duncan brings to the Board more than
30 years of global mining experience and
a deep understanding of Anglo American,
its culture and context.
Stuart served as chairman of Travis Perkins
plc from 2017 to 2021, and previously
chaired ARM Holdings plc and Rexam plc
until 2016. In his non-executive career,
Stuart has served on the boards of Tesco
PLC, Manchester Airport Group plc, Smiths
Group plc and Associated British Ports
Holdings plc.
Stuart’s executive career included 13 years
at Pilkington plc and its subsequent parent
company Nippon Sheet Glass until 2010,
in a number of executive roles and ultimately
as chief executive of both companies.
Prior to that, he gained 10 years of sales
and marketing experience at Mars
Corporation, following 10 years at Shell
as a chemical engineer.
Current external appointments
A Visiting Fellow of Saïd Business School,
Oxford University.
Nationality:
British
Age:
67
Duncan leads the Executive Leadership
Team (ELT), having served as a member
since 2009, and is chairman of De Beers.
From 2016 to 2022, Duncan was
Group Director – Strategy and Business
Development, also serving as CEO of
our Base Metals business from 2013
to 2019. Until 2022, he chaired the
Anglo American Foundation.
Between 2009 and 2013, Duncan held the
position of Group Director – Other Mining
and Industrial, responsible for a global
portfolio of mining and industrial businesses
for disposal or turnaround to maximise
shareholder value. He was appointed CEO
of our Copper operations in 2008, prior to
which he served as joint interim CEO of
Anglo American Platinum in 2007 (having
served on the board since 2004). From 2004
to 2007, Duncan was Executive Director of
Projects and Engineering at Anglo American
Platinum. Duncan began his career at
Johannesburg Consolidated Investment
Company Limited in 1990.
Current external appointments
None
Nationality:
South African
Age:
57
John brings to Anglo American proven
financial, strategic and commercial
expertise, coupled with hands-on
operational experience of supporting
sustainable mining through technology.
John is a member of the ELT and is a director
of De Beers. Prior to joining Anglo American
in 2023, he was chief financial officer and an
executive director at The Weir Group PLC,
the FTSE 100 listed global engineering
company providing engineering
technologies to the global mining industry,
a role held since 2016.
Prior to joining Weir in 2008, John served as
group financial controller of Scottish Power
plc, following his early career in professional
services firms in audit, mergers &
acquisitions, and corporate finance roles.
Current external appointments
Non-executive director and honorary
treasurer of the Royal Scottish National
Orchestra, a charitable organisation.
Nationality:
British
Age:
49
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Governance
Directors
143
Ian Tyler
Senior Independent Director
Magali Anderson
Independent Non-executive Director
Ian Ashby
Independent Non-executive Director
Qualifications: BCom, ACA
Qualifications: Mech Eng
Qualifications: B Eng (Mining)
Appointed: 1 January 2022 and as Senior
Independent Director on 19 April 2022
Appointed: 1 April 2023
Appointed: 25 July 2017
Skills and experience
Skills and experience
Skills and experience
Ian contributes to Anglo American a wealth
of boardroom and financial experience
spanning a number of industrial sectors,
including as chair of remuneration and
audit committees.
Ian has previously served as chairman of
Amey, and of Vistry Group plc (formerly
Bovis Homes Group) and Cairn Energy plc,
and is a former non-executive director of
BAE Systems plc, VT Group plc and Cable &
Wireless Communications plc, amongst
other non-executive board roles. Ian’s senior
executive career was at Balfour Beatty plc, a
global infrastructure business, joining as
finance director in 1996 and serving as chief
executive from 2005 to 2013.
Current external appointments
Chairman of BMT Group Ltd, a maritime-
orientated consultancy, and of Affinity
Water, a privately-held business (stepping
down from this role in 2024); and a non-
executive director of Synthomer plc. A non-
executive director and chair designate of
Grafton Group plc from 1 March 2024.
Nationality:
British
Age:
63
Magali brings to Anglo American highly
relevant experience in capital intensive
industries from an international executive
career in operational, commercial and
business transformation leadership roles,
and a deep understanding of sustainability
in its broadest sense.
Until September 2023, Magali was chief
sustainability and innovation officer and a
member of the executive committee of
Holcim Group, the Switzerland-based global
building materials company. She joined
Holcim in 2016, becoming chief
sustainability officer in 2019 and adding
innovation to her remit in 2021. During her
Holcim tenure, Magali was a member of the
advisory boards of industry organisations:
Business for Nature, the MIT Climate and
Sustainability Consortium, the World Green
Building Council and the 50L Home Coalition
on water efficiency; and co-chair of the
2050 net-zero work for the Global Cement
and Concrete Association. Prior to joining
Holcim, Magali spent the majority of her
career with Schlumberger, holding
operational line management positions
including CEO, Angola and region head,
Europe. Magali started her career as a field
engineer on offshore oil rigs in Nigeria.
Current external appointments
None
Nationality:
French
Age:
56
Ian contributes to Anglo American
substantial knowledge of the minerals
industry across a wide range of
commodities, combined with global
operating, major projects and capital
development experience.
Ian served as president of iron ore for BHP
Billiton between 2006 and 2012, when he
retired from the company. During his 25-year
tenure with BHP Billiton, Ian held numerous
roles in its iron ore, base metals and gold
businesses in Australia, the US and Chile, as
well as projects roles in the corporate office.
He began his nearly 40-year mining career
as an underground miner at the Mount Isa
Mines base metals operations in
Queensland, Australia.
Ian has previously served as chairman of
Petropavlovsk plc, and a non-executive
director of IAMGOLD Corporation, Alderon
Iron Ore Corp, Nevsun Resources Ltd, New
World Resources PLC and Genco Shipping
& Trading, and in an advisory capacity with
Apollo Global Management and Temasek.
Current external appointments
Independent director of Suncor Energy Inc.
Nationality:
Australian
Age:
66
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Directors
Directors continued
Committee member key
Audit Committee
Nomination Committee
Remuneration Committee
Sustainability Committee
Chair of Committee
Member of Committee
Marcelo Bastos
Independent Non-executive Director
Hilary Maxson
Independent Non-executive Director
Hixonia Nyasulu
Independent Non-executive Director
Qualifications: MBA, BSc (Hons) Mech Eng
Appointed: 1 April 2019
Qualifications: MBA, B.S. (Applied Economics
& Management)
Appointed: 1 June 2021
Qualifications: BA Hons
Appointed: 1 November 2019
Skills and experience
Skills and experience
Skills and experience
Hilary contributes to Anglo American
experience in business, spanning finance,
the capital markets, energy transition and
technology, gained across her executive
career in the US, Europe, Africa and Asia.
Hilary is CFO of Schneider Electric and
a member of its executive committee, based
in Paris. She previously served as CFO
of their largest business unit, Energy
Management, having joined the company
in 2017 as CFO of the Building and IT
business, situated in Hong Kong. Prior
to joining Schneider Electric, Hilary spent
12 years with the AES Corporation in
a variety of finance, M&A and business
development roles, based across the US,
Cameroon and the Philippines, ultimately
as CFO for Asia. Hilary began her career at
Bank of America and Citigroup, in New York.
Current external appointments
None
Nationality:
American
Age:
45
Marcelo contributes to Anglo American more
than 30 years of operational and project
experience in the mining industry across
numerous commodities in South America,
Australia, Africa and south east Asia.
He is designated by the Board to chair
and engage with Anglo American’s Global
Workforce Advisory Panel.
Marcelo served as chief operating officer of
MMG between 2011 and 2017, responsible
for the group’s copper, zinc, silver, lead and
gold operations, and sales and marketing.
In this role, he also led the planning and
development of the Las Bambas copper
mine in Peru. Prior to MMG, Marcelo served
as president and CEO of the BHP Mitsubishi
Alliance joint venture (metallurgical coal),
president of BHP’s Cerro Matoso nickel
operation in Colombia, president of nickel
Americas, and president of Nickel West in
Australia. He had a 19-year career at Vale
until 2004 in a range of senior executive
positions in Brazil. Marcelo is a former non-
executive director of Golder Associates and
Oz Minerals Ltd.
Current external appointments
Non-executive director of Aurizon Holdings
Ltd and Iluka Resources Ltd.
Nationality:
Age:
Brazillian/Australian 60
Hixonia contributes to Anglo American
significant global board experience drawn
from the natural resources, financial services
and consumer industries.
Until December 2023, Hixonia was a
member of the board of AGRA and chaired
the Africa Economic Challenge Fund, both
not-for-profit organisations. She previously
served as senior independent director of
Vivo Energy plc, and as a non-executive
director on the boards of Sasol, including five
years as chairman, Nedbank, Unilever NV
and Unilever plc. She has also served as a
member of the South Africa advisory board
of J.P. Morgan and on the board of the
Development Bank of Southern Africa. In
2004, Hixonia founded Ayavuna Women’s
Investments (Pty) Ltd, a female-controlled
investment holding company. Prior to that,
she ran T.H. Nyasulu & Associates, a
strategy, marketing and research company,
after starting her career at Unilever in South
Africa. Hixonia was a founder member of the
Advisory Group formed by the World
Economic Forum to set up a community
of global chairs.
Current external appointments
Non-executive director and vice chair of
Olam Agri Holdings Pte. Ltd.
Nationality:
South African
Age:
69
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Governance
Directors
145
Board diversity policy statement: gender and ethnicity targets
The Board is committed to ensuring that it has the right balance of skills, experience and
diversity, and reflects the global reach of the Group, its employees and major markets.
The Board strongly supports the targets of the FTSE Women Leaders and Parker
reviews on gender and ethnic diversity. In support of these aims, in leading search
processes to appoint new directors, the Nomination Committee retains the services of
executive search firms that are accredited under the UK Government’s Voluntary Code
of Conduct for Executive Search Firms.
At the date of this report, four (40%) of the 10 directors are female and two (20%)
identify as minority ethnic. Six different nationalities are represented, bringing
experience from all of Anglo American’s major regions. A substantial majority of the
Board have a nationality or place of origin outside the UK. The Company satisfies the
targets in the UK Listing Rules on having at least 40% female representation on its Board,
and at least one Director from a minority ethnic background.
The Company does not currently meet the UK Listing Rule target that at least one of
the senior positions on its Board (defined under the Listing Rules as the chair, chief
executive, senior independent director or chief financial officer) is held by a woman.
Appointments to the Board are made on merit following rigorous search processes,
ensuring the overall composition of the Board and its committees continues to reflect
an appropriate mix of capabilities, experience and diversity (of gender, ethnicity,
nationality, age and perspectives). In considering succession plans for these four
positions, due attention will be given to this target. We are confident that future
appointments will, as a whole, continue to support the Board’s diversity aims.
The additional diversity data required under the UK Listing Rules is set out on
page 167.
Board experience and diversity
The broad range of skills and experience and the diversity of our Board as at the
date of this report are illustrated below.
Gender diversity
4
ò Male (60%)
ò Female (40%)
Professional experience
Mining
Large project management
Construction in extractive industries
Finance
6
Marketing (downstream) or commodity trading
Safety, health, environment
Digital technology and innovation
Climate change or clean energies
Board nationality or place of origin
External quoted boardroom experience
1
3
1
1
1
3
ò British
ò South African
ò American
ò Australian
ò French
ò Brazilian
Previous chief executive
Regional experience
North America
Southern Africa
China
South America
Australia
India
50%
50%
40%
60%
60%
100%
50%
30%
80%
50%
80%
60%
60%
50%
30%
10%
Nonkululeko Nyembezi
Independent Non-executive Director
Qualifications: MBA, MSc, BSc
Appointed: 1 January 2020
Skills and experience
Nonkululeko contributes to Anglo American
great breadth of technical and strategic
insights with a background in engineering
and extensive experience spanning mining,
steel, financial services and technology in
South African and global organisations.
Nonkululeko was previously chairman of JSE
Limited. She was also formerly CEO of Ichor
Coal N.V., and has previously served as
chairman of Alexander Forbes Group, as a
non-executive director on the boards of Old
Mutual plc, Exxaro Resources, Universal Coal
plc and Denel, and as CEO of ArcelorMittal
South Africa. In her earlier career,
Nonkululeko was chief officer of M&A for the
Vodacom group and chief executive officer
of Alliance Capital, the then local subsidiary
of a New York-based global investment
management company.
Current external appointments
Chairman of Standard Bank Group, and of
Macsteel Service Centres SA, a privately
held business (anticipated to step down
from this role in March 2024).
Nationality:
South African
Age:
63
In addition, the following director served
during the year:
Stephen Pearce stepped down from the
Board as finance director on 1 December
2023, having served on the Board since
April 2017.
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Governance
Executive Leadership Team
Leadership team
Executive Leadership Team members
Duncan Wanblad
Chief Executive
Alison Atkinson
Projects & Development
Director
Monique Carter
People & Organisation
Director
Member since:
October 2009
Qualifications: BEng (Hons) (Civil Engineering) FREng
Member since: May 2023
Qualifications: BA (Hons), MCIPD
Member since: June 2023
John Heasley
Finance Director
Member since;
December 2023
▶ For full biographical details
of the executive directors
See page 142
Skills and experience
As Projects & Development Director, Alison
leads the Projects, Carbon and Innovation
disciplines at Anglo American.
Prior to joining Anglo American in 2023, Alison
was CEO of AWE plc from 2020-2023. Alison
joined AWE in 2005 and fulfilled a number of
senior roles, delivering multi-billion dollar
infrastructure projects and technology
programmes and developing capabilities and
products that support the UK's nuclear defence
programme. Prior to AWE, Alison spent 14 years
at Halcrow, the global engineering consultancy,
managing a wide variety of capital projects in
the UK and overseas in both the public and
private sectors.
Alison is a Chartered Civil Engineer and is a
Fellow of the Royal Academy of Engineering.
She is also a non-executive director of
Kier Group plc and chair of its safety, health and
environment committee.
Skills and experience
As People & Organisation Director, Monique
leads all the people-related disciplines across
the Group, including Culture and Learning,
Performance and Reward, and Talent
Development.
Prior to joining Anglo American in 2023, Monique
served as executive vice president People &
Organisation for Novo Nordisk, the life science
and global healthcare company, for four years
until 2023. Her global career experience spans
engineering, chemicals, manufacturing and
retail. Prior to her most recent role, Monique was
Group HR Director at GKN, following a number
of senior HR roles during her career at
AkzoNobel and ICI.
Al Cook
CEO of De Beers
Matt Daley
Technical & Operations
Director
Ruben Fernandes
Regional Director,
Americas
Qualifications: M.A. Hons (Natural Sciences)
Member since: February 2023
Qualifications: BEng (Mining) Hons, PgDip (Fin)
Member since: January 2023
Qualifications: MBA, MSc (Metallurgical Engineering)
Member since: March 2019
Skills and experience
As CEO of De Beers, Al is responsible for
its strategy and operations from mines to
retail stores.
Prior to joining the Group in 2023, Al was
executive vice president of exploration and
production international for Equinor, the
Norway-based energy company, with
responsibility for its businesses in 12
countries around the world.
Al previously held the role of executive vice
president for global strategy and business
development at Equinor, where he
developed a net zero strategy and
reshaped its portfolio for the energy
transition. He joined Equinor after a 20-year
career at BP, which included operational
roles offshore, leadership of the Southern
Corridor gas project and chief of staff to the
CEO. Al is a trustee of The Power of
Nutrition, an independent charitable
foundation. He is a Fellow of the Geological
Society and the Energy Institute.
Skills and experience
As Technical & Operations Director, Matt leads
the Discovery & Geosciences, Engineering &
Maintenance, Information Management, Mining,
Processing, Supply Chain, and Safety, Health &
Environment disciplines. He is also a non-
executive director of Anglo American Platinum.
Skills and experience
As Regional Director for the Americas, Ruben is
responsible for ensuring safe and responsible
operations, optimising performance, future
options and commercial value across the
Americas, including the company’s operational
footprint in Brazil, Chile and Peru.
Prior to joining Anglo American in 2017 as
Group Head of Mining, Matt was the Executive
General Manager for Glencore Canada based
in Toronto and served as a non-executive
director on the board of PolyMet Mining.
He has previously worked for Xstrata and
Minera Alumbrera and started his career with
Mount Isa Mines in Queensland, Australia.
Prior to starting this role in 2023, he served
as CEO of Base Metals and CEO of Anglo
American Brazil.
Ruben joined Anglo American in 2012, and was
previously head of mining at Votorantim Metals
in Brazil, responsible for projects and exploration
activities around the world, as well as operations
in Peru and Colombia. Between 2009 and 2011,
he was COO at Vale Fertilizers, responsible for
the fertiliser operations, sales and marketing.
Ruben was also CEO of Kaolin Companies –
Pará Pigments and Cadam – two subsidiaries of
Vale, between 2007 and 2009, and held various
analysis, marketing and project roles in Vale’s
Base Metals business which he joined in 1999.
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Governance
Executive Leadership Team
147
Tom McCulley
CEO of Crop Nutrients
Themba Mkhwanazi
Regional Director, Africa &
Australia
Helena Nonka
Strategy & Sustainability
Director
Qualifications: B.S. (Accounting)
Member since: October 2022
Qualifications: B Eng (Chemical) Hons
Member since: August 2019
Qualifications: M.A. Hons, LL.M
Member since: October 2022
Skills and experience:
As CEO of Crop Nutrients, Tom is responsible
for the on-plan and safe delivery of the
Woodsmith project, aligned with the successful
development of the market for, and premium
value of, the mine’s polyhalite fertiliser product.
Prior to starting this role in 2022, Tom served
as CEO of Anglo American in Peru and Group
Head of Projects.
Tom joined Anglo American in 2015 and
previously held several senior global roles
at Newmont, including Vice President of
Investment and Value Management and
Vice President of Discovery and Development
Planning and Services. Tom began his career
at Fluor Corporation in international oil & gas
and mining projects, developing his full project
lifecycle expertise.
Skills and experience:
As Regional Director for Africa & Australia,
Themba is responsible for ensuring safe and
responsible operations, optimising performance,
future options and commercial value across
Africa and Australia. He is also a non-executive
director of Anglo American Platinum and
Kumba Iron Ore.
Prior to starting this role in 2023, Themba
served as CEO of Bulk Commodities. He has
also served as CEO of Kumba Iron Ore and CEO
for Anglo American’s Thermal Coal business
in South Africa.
Themba joined Anglo American in 2014 and
was previously managing director for Huntsman
Tioxide in South Africa until 2007 when he was
appointed COO of Richards Bay Minerals, a joint
venture between Rio Tinto and BHP. In 2011,
he was seconded to Rio Tinto’s Australian coal
business, before taking up the role of regional
general manager for the Americas in 2012.
Themba is a Vice President of the Minerals
Council of South Africa.
Richard Price
Legal & Corporate Affairs
Director
Matt Walker
CEO of Marketing
Qualifications: LL.B, BA (Hons)
Member since: May 2017
Qualifications: Bsc (Hons), CA
Member since: December 2023
Skills and experience
As Legal & Corporate Affairs Director, Richard
leads the Legal, Government & International
Relations, Communications, Company
Secretarial and Security disciplines. He also
serves as Company Secretary of Anglo
American plc.
Prior to joining Anglo American in 2017, he was
a partner at Shearman & Sterling, the
international law firm working across EMEA, Asia
and North America. In private practice, Richard
acted for clients across the metals, mining,
energy and financial services sectors, among
others, assisting them with complex financing,
corporate and compliance matters.
A champion for diversity, equity and inclusion
in the legal profession, Richard was one of the
founders and serves as Chair of General
Counsel for Diversity & Inclusion.
Skills and experience
As CEO of our Marketing business, Matt is
responsible for optimising the value of the
company’s products in the market through the
implementation of effective sales and trading
strategies.
Prior to taking up this role in 2023, Matt was
Group Head of Corporate Finance, leading
capital allocation and integrated planning,
as well as the M&A transaction team.
Matt joined Anglo American’s finance team in
2007 and has held a number of senior finance
and other roles across Anglo American,
including as CFO of our Copper business in
Chile. Between 2019 and 2021, he served as
Group Treasurer responsible for the Group’s
bank and debt market funding.
Skills and experience
As Strategy & Sustainability Director, Helena
leads the Business Development, Portfolio
Management, Social Impact, Strategy, and
Sustainability disciplines.
Prior to joining Anglo American in 2022, Helena
was executive vice president corporate
development for Norsk Hydro ASA, with
responsibility for group strategy, business
development, sustainability and technology.
Helena’s global career spans more than
20 years in the natural resources industry,
professional services, consulting, and academia
across Europe, Asia and North America. She
previously worked as the global head of new
business for natural resources at Switzerland-
based SGS. From 2007 to 2019, she worked for
Rio Tinto, where she held several global senior
commercial leadership roles, including leading
corporate strategy.
The following members stepped
down from executive leadership
in 2023:
Stephen Pearce served as Finance Director
until 1 December 2023.
Peter Whitcutt served as CEO of Marketing
until 1 December 2023.
Natascha Viljoen served as CEO of
Anglo American Platinum until 30 June 2023.
Didier Charreton served as Group Director –
People and Organisation until 5 June 2023.
Nolitha Fakude served as Group Director –
South Africa until 31 May 2023.
Anik Michaud served as Group Director –
Corporate Relations and Sustainable Impact
until 31 May 2023.
Bruce Cleaver served as CEO of De Beers Group
until 20 February 2023.
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Governance
Board roles and responsibilities
Board roles and responsibilities
The Board, through its role in setting the tone
from the top, provides leadership to the Group
and is collectively responsible for promoting and
safeguarding the long term success of the business.
The Board is supported by a number of committees,
to which it has delegated certain powers.
The role of these committees is summarised overleaf, and their
membership, responsibilities and activities during the year are
detailed on pages 164–211.
Some decisions are sufficiently material that they can only
be made by the Board as a whole. The schedule of ‘Matters
Reserved for the Anglo American plc Board’, and the
committees’ terms of reference, explain which matters are
delegated and which are retained for Board approval; these
documents can be found on the Group’s website.
Executive structure
The Board delegates executive responsibilities to the chief
executive, who is advised and supported by the Executive
Leadership Team (ELT). In 2023, our executive management
team, formerly known as the Group Management Committee,
was re-organised to lead Anglo American’s next phase of value
delivery. The ELT comprises the chief executive, regional
directors and Group directors of corporate functions, including
the company secretary. The names of the ELT members, their
roles and biographical details appear on pages 146–147.
Board composition
At the date of this report, the Board comprises 10 directors: the
chairman, two executive directors (our chief executive and our
finance director) and seven independent non-executive
directors. The roles of our directors are summarised overleaf,
alongside the divisions of responsibility between the chairman,
the executive and non-executive members of the Board.
Magali Anderson joined the Board as an independent non-
executive director on 1 April 2023. In May 2023, we announced
Stephen Pearce’s intention to retire during the year, having
served as finance director since 2017, and on 1 December
2023 he stepped down from the Board. As announced in July
and November, John Heasley joined the Board as finance
director on 1 December 2023.
The broad range of skills and experience our Board members
contribute to the long term sustainable success of the Group
are set out on pages 142–145. The Board is supported by the
legal & corporate affairs director who also serves as the Group
company secretary.
There is a clear separation of responsibilities at the head of
the Company between the leadership of the Board (the
responsibility of the chairman) and the executive responsibility
for leadership of the Company’s business (the responsibility of
the chief executive).
Independence of the non-executive directors
At the date of this report, more than two-thirds of the Board are
independent non-executive directors. The Board determines
all the non-executive directors (other than the chairman) to be
independent of management and free from any business or
other relationship which could interfere materially with their
ability to exercise independent judgement. The UK Corporate
Governance Code (the Code) does not consider a chairman
to be independent due to the unique position the role holds in
corporate governance. Stuart Chambers met the
independence criteria contained in the Code when he was
appointed as the Group’s chairman in 2017.
To ensure the continued effectiveness of the Board, the
chairman and the non-executive directors meet without the
executive directors present several times a year. The chairman
also meets regularly with each of the non-executive directors.
The senior independent director (SID) engages with the other
non-executive directors without the chairman present, at least
annually, to appraise the chairman’s performance. In 2023,
Ian Tyler, as the SID, met with the non-executive directors on
one such occasion.
Time commitment and external appointments
The Board, through the Nomination Committee, conducts an
annual review of the time commitment expected from each
of the non-executive directors and affirms that the directors
devote the requisite time to meet the expectations of their role.
In making this assessment, the Nomination Committee
considers directors’ attendance at Board and committee
meetings, their external positions, and the chairman is asked
to comment on their individual performance as part of the
Board’s effectiveness review. Overall, a minimum expected
time commitment of 30 days per annum is set out in the non-
executive directors’ letters of appointment; however, the SID
and committee chairs devote more time as required by their
roles. The chairman’s anticipated annual time commitment is
the equivalent of two to three days per week in the normal
course of business. Directors are expected to prepare for and
attend Board and committee meetings as relevant, a full day
Board Strategy meeting, the AGM and at least one operational
site visit annually.
The Board acknowledges that non-executive directors have
business interests other than those of the Company. Prior to
their appointment to the Board, non-executive directors are
required to declare any directorships, appointments and other
business interests to the Company in writing. Non-executive
directors are required to seek the approval of the chairman,
chief executive and Group company secretary, on behalf of the
Board, before accepting additional significant commitments
that might be a potential conflict of interest or affect the time
they are able to devote to their role. New appointments are then
reported to the full Board.
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149
Stuart Chambers at our 2023 AGM with legal & corporate affairs director (and company secretary) Richard Price (left), senior independent director Ian
Tyler (far left) and chief executive Duncan Wanblad (right).
Currently, only one of the non-executive directors holds more
than two external board appointments. The Nomination
Committee has considered these external commitments,
taking into account the time commitment required for each
role, and is satisfied they do not impact the individual Board
members’ ability to discharge their responsibilities fully and
effectively. As evidenced in the table on page 151, all directors
attended 100% of the Board meetings that they were eligible
to do so in 2023.
Executive directors are required to seek approval from the
Board, following consideration by the Nomination Committee,
before accepting an external directorship. The Board would
not normally permit an executive director to hold more than
one external non-executive directorship in a FTSE 100
company (or other equivalent publicly quoted company),
nor the chairmanship of any such company.
Duncan Wanblad, Stuart Chambers and non-executive director
Hixonia Nyasulu at the Eastside Community Hub in Whitby, a project
supported by the Woodsmith Foundation, in September 2023.
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Board roles and responsibilities
Chairman
Stuart Chambers leads the Board, ensuring it works constructively as a team. His main
responsibilities include: chairing the Board and the Nomination Committee and setting their
agendas; Board composition and succession planning; providing support and counsel to the
chief executive and his team; promoting the highest standards of integrity and governance;
facilitating effective communication between directors; effective dialogue with shareholders
and other stakeholders; and acting as ambassador for the Group.
Senior Independent Director (SID)
Independent Non-executive Directors (NEDs)
Ian Tyler serves as the Board’s SID. He acts as a sounding
board for the chairman and as an intermediary between
the other directors. The SID leads the annual review of the
performance of the chairman and is available to shareholders
on matters where the usual channels of communication are
deemed inappropriate.
The role of the NEDs is to support, constructively challenge,
and provide advice to executive management; effectively
contribute to the development of the Group’s strategy;
scrutinise the performance of management in meeting
agreed goals; and monitor the delivery of the Group’s strategy.
Chief Executive
Duncan Wanblad manages the Group. His main responsibilities include:
executive leadership; formulation, implementation and delivery of the
Group’s strategy as agreed by the Board; approval and monitoring of
business plans; organisational structure and senior appointments; business
development; and stakeholder relations.
Finance Director
John Heasley joined the Board as finance director in December 2023.
John leads the global finance function and supports the chief executive
in formulating, implementing and delivering the strategy in relation to the
financial and operational performance of the Group.
Audit Committee
Nomination Committee
Remuneration Committee
Sustainability Committee
Oversight of financial
reporting, audit, internal
control and risk
management.
▶ For more information
See pages 168–177
Responsible for Board
composition, appointment of
directors and ensuring
effective succession planning
for the Board and senior
management.
Determines the remuneration
of executive directors, the
chairman and senior
management, and oversees
remuneration policy for
all employees.
▶ For more information
See pages 166–167
▶ For more information
See pages 178–211
Oversees management
of sustainability issues,
including safety, health,
environment, climate
change and
social performance.
▶ For more information
See pages 164–165
Corporate Committee
Executive Leadership Team (ELT)
Operational Committee
Responsible for effective decision
making over cross-functional matters
including Group policies.
Principal executive committee.
Responsible for formulating strategy,
monitoring Group performance, setting
targets/budgets and managing the
Group’s portfolio.
Responsible for driving operational
best practices across the Group and
the setting of technical standards.
Investment Committee
Marketing Risk Committee
Responsible for ensuring effective capital
investment and material operational
spend decision-making processes.
Responsible for evaluating, monitoring,
directing and controlling the management
of risk associated with the sales and
marketing activities of the Group.
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Board operations
151
Board operations
Board information and support
Board induction and development
All directors have full and timely access to the information
required to discharge their responsibilities fully and effectively.
They have access to the advice and services of the Group
company secretary and his team, other members of the
Group’s management and employees, and external advisers.
Directors may take independent professional advice in the
furtherance of their duties, at the Company’s expense.
Where a director is unable to attend a Board or committee
meeting, they are provided with all relevant papers and
information relating to that meeting and encouraged to discuss
issues arising with the chairman, the respective committee
chairs and other Board and committee members. In 2023,
all directors attended 100% of the Board meetings they were
eligible to attend, as evidenced in the table below.
The Board recognises the importance of director education and
ongoing development. Following appointment, and as required,
all directors receive training and development appropriate to their
level of experience and knowledge. This includes the provision of
a comprehensive induction programme tailored to the director’s
experience and background, individual briefings with ELT
members and their teams to provide newly appointed directors
with information about the Group’s business, culture and values,
meetings with external advisers, site visits and other relevant
information to assist them in effectively performing their duties
and contributing to Board discussions and decision making.
In addition to scheduled Board operational site visits, non-executive
directors are expected to spend time at the Group’s operations
to meet management and members of the workforce.
All non-executive directors are provided with access to papers
for each of the Board’s committees, including those who do
not serve as members of those committees. Non-executive
directors are encouraged to regularly attend meetings of the
Board’s committees they do not serve on, at the invitation of the
respective committee chair.
Board and committee meetings in 2023 – frequency and attendance of members
The table below shows the attendance of directors at meetings of the Board and committees during the year. Attendance is expressed
as the number of meetings attended out of the number eligible to attend.
Independent
Board(1)
Board Strategy
Audit
Nomination(2)
Remuneration(3)
Sustainability(4)
Stuart Chambers
Duncan Wanblad
John Heasley(5)
Stephen Pearce(6)
Magali Anderson(7)
Ian Ashby(8)
Marcelo Bastos
Hilary Maxson
Hixonia Nyasulu
Nonkululeko Nyembezi
Ian Tyler
n/a
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
8/8
8/8
1/1
7/7
6/6
8/8
8/8
8/8
8/8
8/8
8/8
1/1
1/1
—
1/1
1/1
1/1
1/1
1/1
1/1
1/1
1/1
—
—
—
—
—
—
—
4/4
—
4/4
4/4
4/4
—
—
—
—
3/4
4/4
4/4
4/4
—
4/4
—
—
—
—
—
6/6
—
—
6/6
—
6/6
4/4
4/4
—
—
3/3
4/4
4/4
—
—
4/4
—
(1) The number of Board meetings included seven scheduled meetings and one special purpose meeting.
(2) All the independent non-executive directors were invited to attend the Nomination Committee meeting in April, at the invitation of the chairman, where the topic of discussion was executive
succession planning. Attendance of the non-Nomination Committee members is not reflected in the table above.
(3) The number of Remuneration Committee meetings included four scheduled meetings and two special purpose meetings to consider executive remuneration.
(4) All the independent non-executive directors have a standing invitation to attend Sustainability Committee meetings, at the invitation of the committee chair. Attendance of the non-committee
members is not reflected in the table above.
(5) Appointed to the Board on 1 December 2023. John attended the Board Strategy meeting in November at the invitation of the chairman; his attendance is not reflected in the table above.
(6) Stepped down from the Board on 1 December 2023.
(7) Appointed to the Board on 1 April 2023.
(8)
Ian Ashby was unable to join the Nomination Committee meeting in July 2023 for personal reasons. Ahead of the meeting, Mr Ashby confirmed his support for the proposals under
consideration.
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Board operations
At the Woodsmith project’s Lockwood Beck site, non-executive directors Magali Anderson (centre) and Marcelo Bastos (right) are shown around
the Mineral Transport System (MTS) tunnel by tunnel area manager Mark Pooleman.
Highlights
– Following her appointment as an independent non-executive
director in April 2023, Magali Anderson undertook a tailored
and comprehensive onboarding programme, including
meetings with senior leaders, site visits and a briefing on the
role and responsibilities of being a director of a UK listed
company. Magali has attended over 20 meetings with
management and external advisers on a variety of topics
related to her Board and Sustainability Committee
appointments.
– In April 2023, Audit Committee members visited our
Marketing office in Singapore, where they met and engaged
with members of the Marketing leadership team.
– In April 2023, non-executive directors Marcelo Bastos,
Nonkululeko Nyembezi and Ian Tyler visited the Group’s
Steelmaking Coal operations in Queensland, Australia.
– In July 2023, the Board’s Sustainability Committee visited
De Beers’ Venetia mine in South Africa.
– In September 2023, the Board held one of its scheduled
meetings at our Crop Nutrients office in north east England,
and visited our Woodsmith project.
– Since joining the Board as finance director in December
2023, John Heasley has commenced a comprehensive
onboarding programme, including meetings with the Group’s
senior leaders, engagements with key investors, site visits,
and meetings with external advisers.
▶ Further details of these site visits can be found on pages 158–160
Newly appointed finance director John Heasley (second from right)
greeting employees at our Johannesburg corporate office.
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Board activity
153
Board activity
The Board is responsible for the overall conduct of
the Group’s business, its strategic direction and its
organisational culture, ensuring these are aligned to
our Purpose and Values. The chairman is responsible
for setting the agenda. The agenda of matters
discussed by the Board in 2023 is described and
explained below.
Principal activities during the year
Topic and link to pillars of value
Activities | Outcomes/decisions
The Board is scheduled to meet at least six times a year but
meets more often when circumstances warrant this. In addition,
the Board dedicates a full meeting, usually held over two days,
to the discussion of the Group’s strategy, addressing critical
short, medium and long term issues. This augments the
discussion of strategic topics at every Board meeting. Annually,
the leaders and regional directors of the Group’s businesses
present to the Board in some depth on the key aspects of their
business. In between meetings, the Board receives regular
updates from the chief executive on operational and business
performance; and engages with senior management on
specific topic briefings.
Safety and health
Fatal incidents, total
recordable injury
frequency rate, health
and medical incidents
▶ Further reading pages 67–70
Safety is the most critical area of focus for the Board and the first topic discussed at Board
meetings. The causes of fatal incidents and those causing injury were examined in detail by
the Sustainability Committee and the findings discussed by the Board.
Management performance in reducing safety incidents was monitored throughout the year.
The Board continued to monitor the operational and technical innovation initiatives that have
the potential to positively impact the Group’s safety performance and make mining safer and
more sustainable.
The Sustainability Committee considered the Group’s new contractor performance
management framework and policy, which aims to ensure the safety of our contractor workforce.
Rigorous and unremitting focus on oversight of safety performance.
People
Inclusion and diversity,
talent and performance
management, employee
engagement
▶ Further reading pages 70–75
People are a pillar of the Group’s strategy and the Board is focused on creating an inclusive and
diverse culture.
The Board was updated on progress made on Group initiatives in the areas of gender and ethnic
diversity, mental health, LGBTQ+, and Living with Dignity.
Succession plans for the ELT were reviewed by the Nomination Committee, on behalf of
the Board.
The Board received feedback on discussions and outcomes of three meetings of the
Global Workforce Advisory Panel, chaired by one of the independent non-executive directors.
The Board also considered insights from the 2022 global employee engagement surveys,
including our journey of gathering feedback from employees to help drive a purpose-led, high
performing culture.
Approved senior leadership changes during the year.
Provided input into the topics of discussion for the Global Workforce Advisory Panel.
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Board activity
Topic and link to pillars of value
Activities | Outcomes/decisions
Environment
Environmental incidents,
energy and climate
change, water availability
and rehabilitation
▶ Further reading pages 48–60
The Board reviewed the steps taken by management to reduce energy and natural resource
consumption, and key projects and technologies contributing to energy transition.
Climate-related activities, energy efficiency targets and decarbonisation strategies were
considered during the year by the Board and the Sustainability Committee. The Board discussed
the Group’s roadmap to carbon neutrality, focusing on the underlying initiatives, workstreams
and plans underpinning delivery of our target of carbon neutral operations by 2040. The Board
considered initiatives towards achieving carbon neutral energy in the Group’s operations.
External insights from expert speakers on steel industry decarbonisation pathways and drivers
were shared with the Board.
The Board received updates and in-depth briefings on the Group’s conformance and disclosure
against the Global Industry Standard on Tailings Management for the Group’s managed tailings
storage facilities, the ongoing risk measures and dam safety monitoring.
The Board approved:
– The acquisition, execution, and funding of three Koruson 2 renewable energy
projects through Envusa Energy, the renewable energy joint venture partnership with
EDF Renewables, enabling the acceleration of carbon neutral electricity in the Group’s
southern African businesses.
Socio-political
Social incidents and
performance,
government, media,
investor and stakeholder
relations
▶ Further reading pages 60–65
The Board receives updates on key geopolitical developments in the Group’s operating
jurisdictions, significant social incidents, and a briefing from the Group head of investor relations,
at each meeting. Feedback from meetings held between executive leaders and institutional
investors is communicated to the Board.
Board members engaged directly with local community representatives during their site visits
in 2023 in South Africa, the UK and Australia.
The chief executive and business leaders updated the Board on engagement with the
governments of host countries and on local community dialogue. The Board was briefed by
management on feedback following the Group’s two Sustainability Performance updates held
in 2023.
The Board received briefings from internal teams on trends in relevant areas and likely scenarios
for global economic growth. The Board received regular updates on commodity markets from
Marketing leadership.
The Board received an update from the Strategy team on the Group’s commodity price outlook.
Economic outlook
and commodity
price
Macro-economic
environment and
commodity price outlook
▶ Further reading pages 24–39
Operations
Operational performance
by each business unit and
progress of key projects
The Board received detailed updates on the operational performance, strategy, safety and
sustainability performance, people, technological innovation, and key risks of its businesses.
The Board was updated throughout the year on the progress of the De Beers Venetia
Underground and Crop Nutrients Woodsmith projects.
▶ Further reading pages 94–128
The Board approved:
– Agreement in principle between De Beers Group and the Government of the Republic
of Botswana for a new 10-year sales agreement for Debswana's rough diamond production
(through to 2034) and the new 25-year Debswana mining licences (through to 2054).
– Initial funding for the Exploration Access Development Phase at De Beers Jwaneng
underground project.
– Additional funding to complete pre-feasibility studies and advance critical path activities for
the Los Bronces underground expansion in Chile.
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155
Topic and link to pillars of value
Activities | Outcomes/decisions
Financial
Key financial measures,
liquidity and balance
sheet strength, cost
improvements, dividend
The Board monitored financial performance and discussed progress against the annual budget
and five-year plan. Liquidity strategy and balance sheet strength were reviewed. A revised
Group treasury policy was considered by the Board and Audit Committee.
The Board and Audit Committee considered the Group’s dividend policy.
▶ Further reading pages 76–78
Recommended the 2022 final dividend (approved at the 2023 AGM) and approved the 2023
interim dividend.
The Board approved:
– The Group’s 2024 budget, incorporating capital expenditure for critical projects
– A revised Group treasury policy
– A mandate to enable the issuance of $2.0 billion of bonds in 2023, and the refinancing of the
Group’s $4.7 billion revolving credit facility maturing in 2025.
Strategy
Portfolio outlook, progress
on critical tasks and long
term strategic pathways
The Board considered strategic issues at every meeting in 2023, and held a two-day dedicated
strategy meeting. The Board discussed progress towards delivery of the Group’s strategic goals
in the context of Portfolio, Innovation and People, including: portfolio and growth strategy, key
competitive trends and value creation, technology development strategy, climate change and
decarbonisation strategies, delivery of organisational efficiencies, and exploration activities.
▶ Further reading pages 10–75
The Board considered options for moving its portfolio towards future-enabling products,
while supporting a Just Transition that seeks to balance the needs and expectations of all
stakeholders, including environmentally and socially sustainable jobs, consistent with
addressing the overriding issue of climate change.
Board governance
Reports from committees,
legislative and regulatory
compliance, succession
planning
▶ Further reading pages
156-211
Approved the Group’s critical strategic objectives.
Key decisions made during the year in support of the Group’s pathways to carbon neutrality.
Each of the committee chairs reported on their respective meetings. Reports were received
on the Group’s compliance with relevant legislation and regulation and any actions needed to
respond to recent developments.
The Board received updates on material litigation across the Group. The Audit Committee
chair provided an update on material whistleblowing reports.
The Board undertook a rigorous review of its effectiveness and that of its committees and
individual directors.
The Board and Nomination Committee reviewed the Board’s composition, diversity
and succession plans for non-executive and executive directors, and members of the ELT.
The Board was updated on the implementation of a more active and co-ordinated Group
engagement strategy in relation to the influence, management, and governance of its non-
managed joint ventures.
The Board received a briefing on business integrity and the key compliance risks facing the
Group from anti-corruption laws. Updates were provided on regulatory developments, including
proposed changes to the UK Corporate Governance Code (since published in January 2024).
Approved Board and ELT appointments:
– Magali Anderson as a non-executive director and member of the Sustainability Committee
from 1 April 2023.
– John Heasley as Finance Director from 1 December 2023.
– Monique Carter and Matt Walker as members of the ELT, on the recommendation of the
chief executive.
The Board endorsed the re-organisation of the senior management team to lead the next phase
of value delivery.
The Chairman and executive directors approved increases to the non-executive directors’ fees
for 2023 and the introduction of an annual fee for acting as the designated non-executive
director to chair the Global Workforce Advisory Panel.
Agreed Board effectiveness priorities for 2023.
Approved Anglo American’s 2023 Modern Slavery Act statement.
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Board effectiveness in 2023
Board effectiveness in 2023
Each year, the Board undertakes a rigorous review
of its own effectiveness and performance, and that
of its committees and individual directors. At least
every three years, the review is externally facilitated.
In 2023, an internal evaluation was undertaken.
The process for how the review was conducted
and its findings are illustrated below.
The last externally facilitated effectiveness review of the Board
was undertaken in 2021, the results of which were reported in
the 2021 Integrated Annual Report. Taking account of the
findings of the 2022 review, the Board had identified four
priority areas for 2023, the details of which were reported in the
2022 Integrated Annual Report. Actions to address these areas
were identified and progressed throughout the year. The Board
made good progress on implementing the actions to address
the findings, as illustrated in the table below.
Again in 2023, the directors completed online, questionnaire-
based internal effectiveness reviews. To allow the Board and
its committees to judge progress over a three-year period, the
reviews explored similar areas to the 2022 review. The 2023
review reaffirmed that the Board believes that it continues to
operate effectively, is collegiate and well-functioning.
The review of the chairman’s performance was led by the senior
independent director. The chairman was not present during the
discussions with both executive and non-executive directors as
it related to him. The directors commended the chairman on his
effective leadership of the Board, noting that he fosters an open
and supportive culture that facilitates the contribution of each
member. It is the directors view that the chairman has an
appropriately strong, constructively challenging, and supportive
relationship with the chief executive and his leadership team
and they felt this was an important component in the overall
effectiveness of the Board. In addition, the chairman received a
report evaluating the individual directors’ performance. To
complement the internal review process, the chairman holds
regular one-to-one meetings with each of the directors.
Actions taken in 2023 to address the areas identified by the Board as
effectiveness priority areas following the 2022 internal review are
summarised below:
Topic
People
Areas identified for action
Actions taken in 2023
Maintain Board focus on the Group’s talent
management, including its processes to
identify and develop talent. Maximise
opportunities for the Board to have exposure
to future leaders in the Group’s talent pipeline.
Opportunities for Board’s exposure to future
leaders and high potential employees in the
Group’s talent pipeline were facilitated during
the year. High potential employees presented
regularly at Board and committee meetings,
and gained additional exposure through one-
to-one meetings with non-executive directors,
and in more informal settings during Board
and director site visits.
Talent management will continue to be a
priority focus area for the Board in 2024.
Formal location visits were facilitated for
Board members in 2023, to South Africa and
the UK, in addition to ad hoc non-executive
director site visits. The visits afforded
opportunities for the Board to engage directly
with community representatives, as described
in this report.
Opportunities for Board engagement with the
Group’s customers will be further developed
in 2024.
Community
and customer
engagement
With the return of Board site visits, pursue
opportunities for the Board to have direct
engagement with representatives of host
communities. Seek opportunities for the
Board to engage with the Group’s customers.
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157
Topic
Areas identified for action
Actions taken in 2023
External insights
Increase the Board’s exposure to external
insights in pertinent areas, particularly climate
change and geopolitical trends.
Strategy
Redirect the Board’s strategic focus towards
the making of strategic choices and
overseeing the execution of strategy.
There was greater focus on providing external
insights and industry trends to the Board
during strategic discussions. For example,
external expert speakers provided insights
on steel decarbonisation to the Board as part
of its strategic discussions.
Senior leaders presented updates to the Board
on geopolitical and macro-economic trends.
The Board considered strategic issues at
every meeting in 2023, and held a two-day
dedicated strategy meeting. The Board
discussed progress towards delivery of the
Group’s strategic goals and implementation
of business strategy, including: portfolio
and growth strategy, technology
development strategy, climate change
and decarbonisation strategies, and delivery
of organisational efficiencies.
Building on the priority areas identified and the actions taken during
2023, and taking account of the findings of the 2023 review, the
Board has identified the following effectiveness priorities for 2024:
Topic
People
Areas identified for action
Following the re-organisation of the Executive Leadership Team in 2023, continue the Board’s
focus on senior leadership succession, and increase visibility of high potential employees and
future leaders in the Group’s talent pipeline.
Stakeholder
engagement
Building on the increased Board-community engagement in 2023, focus the Board’s attention
on further developing its understanding of stakeholder views, particularly the Group’s customers
and investors.
External insights
Continue to maximise opportunities for the Board to obtain greater external perspectives,
particularly in the areas of macro-economic, industry and geopolitical trends.
Strategy
Evolve the Board’s focus from the making of strategic choices to strategy implementation and
supporting executive management in execution of the Group’s strategy.
Committee effectiveness
The committee reviews looked at ways in which they could
improve their overall effectiveness, their performance and
effectiveness priority areas they needed to address in 2024.
All Board committees were believed to be performing well and
were appropriately constituted.
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Board visits in 2023
Board and non-executive directors’ visits
to Group operations in 2023
Undertaking regular site visits allows the directors
to gain a better understanding of the Group’s
operations and culture, and affords Board members
the opportunity to meet and engage with a diverse
cross-section of employees and local stakeholders
to appreciate, at first-hand, their interests
and concerns.
The directors spent two days visiting the Woodsmith mine sites,
hosted by members of the Crop Nutrients leadership team
and site employees, focusing on safety, progress on core
infrastructure and the study programme, research and
development (R&D), social performance, and environmental
management and biodiversity. The Board visited the
Woodsmith mine, the Wilton site including the Mineral Transport
System (MTS) tunnel, port and R&D plant, and the Lockwood
Beck site, where they descended into the MTS tunnel.
The Board usually meets at least once a year at one of the
Group’s major operations. During 2023, Board, committee
and non-executive director site visits were facilitated, as
described below.
Board visit to Woodsmith
In September 2023, the Board held one of its meetings at our
Crop Nutrients corporate office in north east England and
visited our Woodsmith project, accompanied by senior leaders
from the business. During the visit, the Board received detailed
presentations from Crop Nutrients management on how they
aim to set the benchmark in sustainable mining operations,
while maintaining our social licence to operate and building
a thriving community in the region surrounding the project.
Board members engaged directly with local community
representatives at projects supported by the Woodsmith
Foundation and got an on-the-ground feel for the positive
impact the projects are making on local communities: The
Whitby Lobster Hatchery aims to build resilience and
sustainability in the local fishing community, creating new jobs
and promoting tourism; while the Eastside Community Hub
provides a wide range of community-based activities with
the aim of reducing isolation, providing opportunities for skills
development, and enabling better health and well-being.
As part of the visit, the chairman hosted an evening event
for Board members to engage with the Crop Nutrients
leadership team.
Non-executive director Magali Anderson (right) and projects & development director Alison Atkinson (centre) speaking with newly graduated
apprentice engineer Ross Dickinson from our Crop Nutrients business during the Board’s visit to Woodsmith.
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Sustainability Committee members and directors being briefed during
their visit to De Beers’ Venetia mine in July 2023.
Sustainability Committee visit to Venetia
In July 2023, the Sustainability Committee visited the Venetia
mine in South Africa, accompanied by De Beers CEO Al Cook
and senior leaders. Other non-executive directors who are not
members of the Committee joined the visit.
The visit focused on safety, the transition of Venetia from an
open-pit mine into an underground mining operation, initiatives
towards achieving carbon neutrality and net-positive impact on
biodiversity, and community engagement.
The Committee witnessed first hand the work being done
locally to foster equal opportunities for women, and on
empowering female-owned enterprises to flourish in host
communities. The Committee also learnt about the
collaborative work that has brought together Venetia and
the International Youth Foundation, driving youth skills
development and creating job opportunities through a
partnership which supports the Musina TVET College.
During the visit, the Committee chairman, Ian Ashby, hosted an
evening function for directors to meet with leaders and
employees from Venetia.
Left: Stuart Chambers speaking with Morakana Molalathoko, the owner
of a catering enterprise in Musina, the nearest town to Venetia mine, who
is supported by the AWOME (Accelerating Women Owned Micro
Enterprise) programme, which aims to empower women in business.
Below surface: the Sustainability Committee and senior leaders met with site management and employees underground to see the progress being
made as Venetia transitions from being a surface mining operation to an underground mine.
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Governance
Board visits in 2023
Non-executive directors’ visits
In April 2023, Audit Committee members and the Group
finance director met with leaders from our Marketing business in
Singapore, where they attended in-depth presentations on the
control processes which support value creation through the
end to end deal lifecycle.
Also in April, non-executive directors Marcelo Bastos,
Nonkululeko Nyembezi and Ian Tyler spent two days at our
Steelmaking Coal operations in Queensland, Australia, hosted
by CEO Australia Daniel van der Westhuizen. The directors
visited operations at Moranbah North, Grosvenor and Aquila,
where the focus was on safety, underground operations, gas
management, carbon neutrality, and stakeholder engagement.
The group visited the Moranbah Youth & Community Centre,
where they learned more about how the business partners in the
community to create shared value, and engaged directly with
community leaders of the Barada Barna Traditional Owners.
“Site visits enable non-executive directors to get a
better understanding of the issues facing our operations
and how these are being managed, with real-life
exposure to colleagues at various levels in the organisation.
They also allow us to interact directly with representatives
from host communities.”
Ian Ashby
Independent non-executive director
and Sustainability Committee chairman
(Left to right) Non-executive director Nonkululeko Nyembezi
with section engineer Peter Jaure and mechanical technician
Dean Duboczky at Woodsmith in September 2023.
Sustainability Committee chairman Ian Ashby during the Committee’s
visit to Venetia in July 2023.
Anglo American plc
Integrated Annual Report 2023
Governance
Stakeholder engagement
161
Stakeholder engagement
How the Board has engaged
The Board is committed to ensuring collaboration and
partnering with a broad range of stakeholders, both
directly and indirectly through reports from senior
management. Stakeholder considerations form part of
discussions at Board meetings and decision making
takes into account potential impacts on our stakeholders,
as described in the Section 172 statement on page 29 of
the Strategic Report. How the Board interacts directly
with certain of its key stakeholders is illustrated below.
For further information on reflecting stakeholder views in
the Board’s decision making, please see page 29.
Creating shared value
Investors
Employees and unions
Communities
Suppliers and contractors
Civil society (NGOs, faith
groups and academia)
Customers
Governments and
multilateral institutions
Industry associations
Global Workforce Advisory Panel
Anglo American’s Global Workforce Advisory Panel (the Panel)
was established in 2019. Its purpose is to give employees more
of a ‘voice’ in the boardroom so their views can be better
understood and considered when decisions are being made
about the future of the business. The Panel affords valuable
opportunities for the Board to understand how the Group’s
culture, purpose and values are embedded into the organisation.
The Panel operates alongside Anglo American’s existing
employee engagement mechanisms, such as regular employee
engagement surveys and director interaction with employees.
Composition of the Panel
The Panel is currently made up of 12 employees, representing
the countries where the Group has a significant presence, and
is chaired by Marcelo Bastos, one of the Board’s independent
non-executive directors. Panel members are nominated using
agreed criteria set out in its terms of reference and selected to
ensure representatives, throughout the organisation, are
appropriately balanced across the areas of gender, ethnicity,
age and seniority. New Panel members undertake an induction
to ensure a clear understanding of their role and to support
them in being effective employee representatives. The Panel is
supported by the Group’s company secretarial and employee
engagement teams. Panel members meet at least twice a year
with the Panel chair.
Panel meetings and discussions in 2023
The Panel met on three occasions in 2023, in March, July and
October. The first meeting of the year was held virtually over
two sessions, to accommodate members in different global
time zones. The second meeting was held in person at the Group’s
corporate office in Johannesburg. The third was a short informal
meeting held virtually.
Topics for discussion in 2023 included: feedback on the Group’s
diversity data sharing campaign, our change management
processes, our colleague wellness activity, and performance
management framework. Panel feedback was also sought on
how the Group’s organisational changes, announced in May
2023, were received in their part of the business.
Members of the Global Workforce Advisory Panel with non-executive
director Marcelo Bastos, who chairs the Panel.
Panel members are provided with briefings in advance on
topics for discussion at Panel meetings and asked to engage
with the workforce populations they represent, in order to
provide feedback with their collective views at Panel meetings.
At the Panel’s in-person engagement in 2023, in addition to the
formal meeting, members engaged in pre- and post-meeting
activities, including internally facilitated team effectiveness
training, and local educational site visits. Panel members had
the opportunity to engage at an informal event with the Panel
chair, and senior leaders in the Group. Opportunities for
relevant Panel members to meet informally with the Board
chairman, chief executive, and other independent non-
executives were facilitated in the year during the Board’s and
non-executive directors’ site visits.
The Panel is scheduled to meet three times in 2024, and we
anticipate one of these meetings taking place in person.
162
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Governance
Stakeholder engagement
Community engagement
Anglo American is committed to delivering a lasting positive
contribution to host communities, beyond the life of our mines.
Our Social Way 3.0 engagement requirements and
commitment to local accountability that forms part of our
Sustainable Mining Plan are at the heart of how we engage
with local communities. We aim to always engage
proactively, meaningfully and respectfully with all of our
stakeholders in relation to impacts and risk and to maximise
development opportunities.
The Board’s Sustainability Committee receives a report on
social performance and community issues at each meeting.
The Board is also updated via presentations from business
leaders and visits operations, which affords opportunities for
direct engagement with local community representatives.
“To me, being a Panel member means really listening to my
colleagues and, through our meetings chaired by Marcelo,
gives me the opportunity to represent their voice in the
boardroom on Panel topics.”
Gugu Kubeka
Gugu is an HR Adviser based in South Africa, and has been a Panel
member since 2022
Board and Panel feedback
Following each Panel meeting, Marcelo Bastos discussed the
key themes with the Board chairman and chief executive. At
three Board meetings in 2023, Marcelo provided his reflections
from Panel engagements and discussed the key themes with
the full Board. The key messages from each meeting were
shared and discussed with the ELT. Marcelo provided his
reflections and insights at one ELT meeting, following a year of
chairing the Panel. Marcelo shares feedback from the Board
meeting discussions with the Panel at its following meeting.
Topics for discussion at Panel meetings are proposed equally
by Panel members, the Panel chair and members of the Board,
and management.
“Being able to interact directly with a cross-section of
employees through the Panel, and share my insights in the
boardroom, gives the Board a unique vantage point through
which to assess employee sentiment.”
Marcelo Bastos
Independent non-executive director and Panel chair
Non-executive director engagement with employees
In addition to feedback from the Panel, non-executive directors
interacted with employees of varying levels of seniority during
the year, during Board and director site visits to operations and
corporate offices. In April, our Audit Committee chair Hilary
Maxson and members of the Audit Committee engaged with
colleagues during a visit to our Marketing hub in Singapore.
Magali Anderson engaged with female colleagues
participating in one of the Group’s Leadership Academy
programmes aimed at developing female talent.
Global employee engagement surveys
The Board was updated during the year on the feedback and
resulting actions that had been developed by management
from global employee engagement surveys undertaken
in 2022.
Duncan Wanblad and Pannett Art Gallery curator Helen Berry at the
Eastside Community Hub in Whitby during the Board visit in September
2023. The gallery is an open access community resource for cultural
activities and is supported by the Woodsmith Foundation.
In September 2023, the Board visited our Woodsmith project
in north east England, where they engaged directly with local
community representatives at projects supported by
the business. The Sustainability Committee visited De Beers’
Venetia mine in the Limpopo district in South Africa in July,
where they visited several local projects supported by the mine.
In April 2023, three non-executive directors spent time at the
Moranbah Youth & Community Centre during their visit to the
Group’s Steelmaking Coal operations, where they engaged
directly with community leaders of traditional owners of
the land.
▶ For more information on Board and non-executive directors’ site visits
See pages 158–160
Anglo American plc
Integrated Annual Report 2023
Governance
Stakeholder engagement
163
Investor engagement
Investor engagements in 2023
The Group has an active engagement programme with its key
financial audiences, including investors and sell-side analysts,
as well as potential shareholders.
The Group’s investor relations team manages the interactions
with these audiences through roadshow meetings, presentations
including at the time of the interim and final results and twice
yearly sustainability updates, as well as regular attendance
at industry conferences organised mainly by investment banks
for their institutional investor base. Key topics covered include
market outlooks, financial and operating performance,
sustainability and governance matters. The focus of sustainability
discussions continues to primarily be on climate change and
providing an update on the Group’s transition plan; while the
Group’s approach to biodiversity and water management also
becoming more priority engagement areas for many investors
in the latter part of the year. In December, the Company hosted
its annual investor update to the investment community, which
outlined resets to production guidance. The chief executive and
finance director subsequently hosted meetings with the largest
shareholders through December and into January 2024.
In addition to roadshows and industry events, the investor
relations and management teams meet with investors and sell-
side analysts regularly throughout the year for ad hoc
discussions. Significant concerns raised by shareholders in
relation to the Company and its affairs are communicated
to the Board.
January
Closed period
Climate Action 100+
investor meeting
March
Investor roadshows: London
(virtual), Edinburgh (virtual),
North America and South Africa
Conferences: Exane Basic
Materials
UBS Santiago investor tour
May
Investor roadshows: London
(virtual) and North America
(virtual)
Conferences: Bank of America
Metals & Mining
The Board receives a briefing at each meeting from the Group
head of investor relations and analysts’ reports are circulated to
the directors. Feedback from meetings held between executive
management, or the investor relations department, and
institutional shareholders, is also communicated to the Board.
The Chairman also engages directly with the Company’s
largest shareholders.
July
Closed period
Q2 Production Report
2023 interim results
Investor roadshows: London
(virtual)
Annual General Meeting
The Board values the AGM as an opportunity for all shareholders,
but in particular its retail shareholders, to raise questions and
comments to the Board. Shareholders were invited to submit
their questions in advance of the AGM and also offered the
opportunity to ask questions during the meeting both in person
and electronically. The Company’s 2023 AGM was held in
a hybrid format. Voting levels at the 2023 AGM were
approximately 70%, with generally less than 2% being votes
withheld. All resolutions submitted to the meeting in 2023 were
passed with at least 87% of votes in favour.
September
Investor Roadshows: London
(virtual), Edinburgh (virtual) and
North America
Conferences: Raymond James
Strategic Metals & Materials
(virtual)
Danske bank virtual investor
group
November
ESG investor meetings (virtual)
Chairman investor meetings
Climate Action 100+ investor
meeting
February
Q4 2022 Production Report
2022 full year results
Investor roadshows: London
(virtual)
Conferences: BMO Global
Metals & Mining
April
Q1 Production Report
Sustainability Performance
update
AGM
UBS London Mining Tour (virtual)
June
Conferences: BofA Smart Mine
4.0 (virtual)
Berenberg Thematic Mining
event, BofA Virtual Commodity
conference
Morgan Stanley Materials
Cannonball Run fireside session
(virtual)
UN PRI Advance human rights
engagement
August
Investor Roadshow: South Africa
October
Investor and sell-side
analyst visit to Woodsmith
Q3 Production Report
Sustainability Performance
update
ESG investor meetings (virtual)
Conferences: Deutsche Copper
CEO conference (virtual)
December
2023 investor update call
CE and FD investor meetings
Chairman investor meetings
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Anglo American plc
Integrated Annual Report 2023
Governance
Sustainability Committee report
Sustainability Committee report
Committee members
Ian Ashby – Chairman
Magali Anderson (appointed 1 April 2023)
Marcelo Bastos
Stuart Chambers
Nonkululeko Nyembezi
Duncan Wanblad
▶ For further detail on biographies and Board
experience: pages 142–145
Business regional directors, Group directors of
strategy & sustainability, technical & operations,
and legal & corporate affairs, and the Group heads
of safety and sustainability also participate in
meetings of the Committee. Other members of
senior management are invited to attend when
necessary. Other non-executive directors
regularly attend Committee meetings at the
invitation of the chair.
“ We are not only custodians of the land
we mine; our stewardship extends to
the impact we have on the environment
and the way in which we engage with
host communities. The Sustainability
Committee ensures that the Board is
constantly apprised of any sustainability
issues that may affect our licence to
operate or stand in the way of our
achieving a net positive overall impact."
Ian Ashby
Committee chairman
Role and responsibilities
The Committee oversees, on behalf of the Board, material
management policies, processes, and strategies designed to
manage safety, health, environment, climate change-related and
socio-political risks and opportunities, to achieve compliance with
sustainable development responsibilities and commitments
and strive to be a global leader in sustainable mining.
The Committee is responsible for reviewing the causes of any
fatal or significant sustainability incidents and ensuring
learnings are shared across the Group.
The Committee’s terms of reference are available to view online.
▶ For more information
Visit angloamerican.com/about-us/governance
Committee discussions in 2023
The Committee met four times in 2023, with full attendance
as described on page 151. At each meeting, the Committee
reviews detailed reports covering the Group’s performance
across a range of sustainability areas, including: safety; health
and wellness; socio-political trends; human rights; climate
change; and environmental and social performance.
Significant safety, social, health and environmental incidents
are reviewed at each meeting, as are the results from
operational risk reviews and operational risk assurance.
The Committee seeks to address the fundamental root causes
of all fatal incidents occurring across Anglo American.
In 2023, three members of the workforce lost their lives at the
Group’s managed operations. The preliminary observations
from each of these fatal incidents were reported to the next
Committee meeting following their occurrence, noting the
factors surrounding the incidents, mitigation steps being taken
and the process for formal investigation. Following completion
of the independent investigations, findings were presented to
the Committee and the learnings shared internally.
Sustainability Committee members visiting Venetia mine in July 2023.
Anglo American plc
Integrated Annual Report 2023
Governance
Sustainability Committee report
165
Sustainability Committee chairman Ian Ashby (standing) and members engaging with senior leaders and site management during the Committee’s
visit to Venetia mine in July 2023.
In addition to the Committee’s standing agenda items,
the following matters were discussed during 2023:
– The approach to managing physical climate change risk
and resilience across the Group
– Group risks relating to sustainability
– Updates on the pathways to reduce the Group’s
Scope 3 emissions, with the Committee updated throughout
the year on progress against our Scopes 1 and 2 targets
– Water management: progress on implementation of
standards, and the achievement of sustainability targets
– Progress towards achieving our commitment to deliver net-
positive impact on biodiversity, and an overview of the
Group’s biodiversity management programme
– Updates on the delivery of our Sustainable Mining Plan
commitments
– Social Way 3.0 – assessment results and progress on
implementation across the Group
– Anglo American’s 2022 Sustainability Report and 2022
Climate Change Report
– The management of land access, displacement and
resettlement across the Group
– Permitting: an update on permitting management across
the Group
– Shaft integrity management and the Group’s shaft
management assurance programme
– Geotechnical risk management (slopes and underground) –
an update on the initiatives to sustainably eliminate rockfall
fatalities and disruptions at the Group’s mining operations
– Fire risk management across Anglo American
– Review of annual bonus and incentive plan measures
proposed to the Remuneration Committee in relation
to safety, health and environment.
– Human rights trends and an overview of the most salient
human rights issues across Anglo American
– Outcome of the 2022 external audit of the Group’s safety
and sustainability data
– Climate and ESG-related litigation
– Committee effectiveness.
– Cultural heritage management in the Group
– Tailings and water storage facilities stewardship: risk
management updates
– Updates on the Group’s conformance and disclosure
against the Global Industry Standard on Tailings
Management
– Legacy SHE risks and liabilities
– Mine closure and site regeneration activities across
the Group
– Overview of the new Group Contractor Performance
Management Policy and framework
In July 2023, the Committee visited De Beers’ Venetia mine in
South Africa. In April 2023, non-executive members of the
Committee visited a number of the Group’s Steelmaking Coal
operations in Queensland, Australia. More information on Board
and non-executive directors’ visits to Group operations can be
found on pages 158–160.
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Integrated Annual Report 2023
Governance
Nomination Committee report
Nomination Committee report
Committee members
Stuart Chambers – Chairman
Ian Ashby
Marcelo Bastos
Hilary Maxson
Hixonia Nyasulu
Ian Tyler
▶ For further detail on biographies and Board
experience: pages 142–145
The chief executive, and the Group directors of people &
organisation, and legal & corporate affairs also participate
in meetings of the Committee, when relevant to do so.
Other non-executive directors may attend committee
meetings at the invitation of the chairman.
“ The Committee plays a vital role in
ensuring the composition of the Board,
and the leadership needs of the
organisation, reflect an appropriate
mix of skills, experience, diversity and
perspectives to suit the evolving nature
of the business and the expectations
of society and our stakeholders”.
Stuart Chambers
Chairman
Role and responsibilities
The role of the Nomination Committee is to assist the Board in
regularly reviewing its composition and those of its committees,
to lead the process for Board appointments, and ensure effective
succession planning for the Board and senior management.
The Committee’s terms of reference are available to view online.
▶ For more information
Visit angloamerican.com/about-us/governance
Committee discussions in 2023
The Committee met four times in 2023, with attendance
by the members as described on page 151. Discussions
at the meetings covered the responsibilities outlined above,
with particular focus on executive and non-executive
succession planning.
The following matters were considered during 2023:
– The composition, structure and size of the Board and its
committees, and the leadership needs of the organisation
– Non-executive director succession planning
– Recommending to the Board the appointment of
Magali Anderson as a non-executive director and member
of the Sustainability Committee
– The time commitment expected from the non-executive
directors to meet the expectations of their role
– Recommending that the Board support the election or
re-election of each of the directors standing at the Annual
General Meeting in 2023
– Succession planning for the Group finance director and
recommending to the Board the appointment of
John Heasley to succeed Stephen Pearce as finance director
– Oversight of succession planning, and the development of
a diverse talent pipeline, for executive leadership
– Overseeing a tender process for the appointment of an external
search consultancy to facilitate future non-executive recruitment.
The findings of the internal 2023 Board and committee
effectiveness review are set out on pages 156–157.
Process used in relation to non-executive Board appointment
As reported in the 2022 Integrated Annual Report, as part of the
Board’s ongoing cycle of refreshment, in the second half of 2022 the
Nomination Committee led a search process to recruit a new non-
executive director with a deep understanding of sustainability in its
broadest sense, to ensure the composition of the Board reflected an
appropriate mix of skills, experience, diversity and perspectives.
Spencer Stuart had been retained by the Committee in 2022 to
assist with the search process. Spencer Stuart has previously
worked for the Group in recruiting for non-executive and senior
leadership appointments and accordingly has a good
understanding of the Board’s requirements. They are
accredited under the UK Government’s Voluntary Code
of Conduct for Executive Search Firms.
Anglo American plc
Integrated Annual Report 2023
Governance
Nomination Committee report
167
Prior to the search commencing, the Nomination Committee
agreed the skills and experience it considered necessary for the
role. A longlist of gender and ethnically diverse candidates was
then identified and discussed with the Committee to agree
a shortlist to be interviewed. Shortlisted candidates were
interviewed by members of the Committee and other Board
members, as relevant.
Following conclusion of the formal process, the Committee
concluded that Magali Anderson had the requisite skills,
attributes and capabilities to take on the role as a non-
executive director, and agreed to recommend Ms Anderson’s
appointment to the Board for approval. As announced in
February 2023, Ms Anderson’s appointment was approved
by the Board with effect from 1 April 2023.
Board and executive management diversity
The Board’s statement on its approach to gender and ethnicity
targets, including how it meets the diversity targets set out in the
UK Listing Rules, can be found on page 145. The additional
numerical data on the diversity of the Board and executive
management, in the format prescribed by UK Listing Rule
9.8.6R(10), is set out below as at 31 December 2023. The
underlying data was collected directly from the Board and ELT.
The definition of executive management for these purposes is
the Anglo American ELT (the executive committee and most
senior executive body below the Board).
Information on the Group’s policy on inclusion and diversity,
their aims, details of the gender balance of senior management
and their direct reports, and performance against our targets
can be found in the People section on pages 72–74. The
definition of senior management for these purposes, in
accordance with the UK Corporate Governance Code, is the
ELT and those reporting to the ELT.
Group finance director appointment process in 2023
Succession planning for all directors, including the
executive directors, is an ongoing cycle of work. The
Nomination Committee has oversight of senior
leadership succession plans, ensuring they are aligned to
the long term strategic ambitions and the diverse
leadership needs of the Group.
The Board, through its Nomination Committee, initiated a
global process to identify the best person for the role
of finance director, following Stephen Pearce stating his
intention to retire from the Group. The Committee approved
an updated role profile for the Group finance director,
including the leadership capabilities and characteristics
required to be successful in the role. The Committee
discussed the development of candidates on our internal
succession plan, and an externally facilitated benchmarking
exercise of the external talent market was completed.
The search process included a number of internal
candidates on our internal succession plan, and a diverse
range of external candidates. The Committee considered
gender and ethnically diverse candidates for the role.
Shortlisted candidates undertook formal leadership
capability assessments.
The shortlisted candidates were interviewed by the
chief executive, chairman, Audit Committee chair, senior
independent director, and a panel of ELT members.
Following conclusion of the rigorous process and
a recommendation from the Committee, the Board
concluded that John Heasley would bring proven
financial, strategic and commercial expertise to the role,
coupled with hands-on operational experience of
supporting mining through technology. The remuneration
arrangements for the appointment of John Heasley and
the retirement of Stephen Pearce were approved by the
Remuneration Committee. John Heasley joined the
Board as Group finance director on 1 December 2023.
Gender identity
Men
Women
Ethnic background
Number of Board
members
Percentage of the
Board
Number of senior
positions on the
Board(1)
Number in
executive
management(2)
Percentage of
executive
management(2)
6
4
60%
40%
4
0
9
3
75%
25%
White British or other White (including minority white groups)
Mixed/Multiple Ethnic Groups
Asian/Asian British
Black/African/Caribbean/Black British
Other ethnic group, including Arab
Not specified/prefer not to say
Number of Board
members
Percentage of the
Board
Number of senior
positions on the
Board(1)
Number in
executive
management(2)
Percentage of
executive
management(2)
8
0
0
2
0
0
80%
0%
0%
20%
0%
0%
4
0
0
0
0
0
10
1
0
1
0
0
83 %
8 %
0 %
8 %
0 %
0 %
(1) Senior positions are defined under UK Listing Rule 9.8.6 R(9)(a) as the chair, the chief executive, the senior independent director, or the chief financial officer.
(2) In accordance with UK Listing Rule 9.8.6 R(10), executive management for these purposes is the Anglo American Executive Leadership Team (the executive
committee or most senior executive body below the Board). The Group company secretary is a member of the ELT.
168
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Governance
Audit Committee report
Audit Committee report
Role and responsibilities
– Monitoring the integrity of the annual and interim
financial statements
– Making recommendations to the Board concerning the
adoption of the annual and interim financial statements
– Overseeing the Group’s relations with the external auditor
– Reviewing the independence, effectiveness and objectivity
of the external auditor
– Reviewing and monitoring the effectiveness of the Group’s
risk management and internal control mechanisms
– Approving the terms of reference of the internal audit
function and assessing its effectiveness
– Approving the internal audit plan and reviewing regular
reports from the Group head of risk management and
business assurance on effectiveness of the internal
control system
– Receiving reports from management on the principal risks
of the Group. Details of the principal risks are contained
on pages 81–85
– Overseeing completion of the viability statement
– Reviewing the effectiveness of the Group’s Code of
Conduct and the arrangements to counter the risk of bribery
and corruption.
The Committee’s terms of reference are available to view online.
▶ For more information
Visit angloamerican.com/about-us/governance
Committee members
Hilary Maxson* – Chair
Nonkululeko Nyembezi
Ian Tyler*
*Audit Committee members deemed to have recent and
relevant financial experience in accordance with the UK
Corporate Governance Code. The Committee as a
whole has competence relevant to the sector.
▶ For further detail on biographies and Board
experience: pages 142–145
The chairman, the chief executive, the finance director, the
Group head of finance and performance management,
the head of financial reporting, the Group head of risk
management and business assurance, and the legal &
corporate affairs director also participate in meetings of
the Committee.
“ The Audit Committee remains vigilant
in ensuring the integrity of the
Company’s financial statements and
for strengthening its internal controls,
risk management framework, and the
annual reporting on their effectiveness.”
Hilary Maxson
Committee chair
Anglo American plc
Integrated Annual Report 2023
Governance
Audit Committee report
169
Fair, balanced and understandable
Committee discussions in 2023
A key requirement of our financial statements is for the report to
be fair, balanced, understandable and provide the information
necessary for shareholders to assess the Group’s and Parent
Company’s position and performance, business model and
strategy. The Audit Committee and the Board are satisfied
that the 2023 Integrated Annual Report meets this requirement,
as appropriate weight has been given to both positive and
negative developments in the year.
In justifying this statement, the Audit Committee has considered
the robust processes which operate in creating the 2023
Integrated Annual Report, including:
The Committee met four times in 2023, with full attendance as
described on page 151. Throughout the course of 2023, and
consistent with prior years, the Committee paid particular
attention to the valuation of assets, one-off transactions, tax
matters, financial controls and the Group’s liquidity position. In
addition, there were in-depth discussions on ad hoc topics as
requested by the Audit Committee; for example, Woodsmith,
Our Code of Conduct, cyber risk, artificial intelligence
technology risk, pensions funding and exposures, and
sustainability reporting governance and assurance. The
Committee reviewed the system of internal control and risk
management.
– Review and approval of management’s assessment of the
risk of misstatement in financial reporting
– Clear guidance and instruction provided to all contributors
The Committee met with leaders from our Marketing business in
Singapore in April 2023, where they had in-depth presentations
and discussions on risks and controls.
– Revisions to regulatory reporting requirements are provided
An internal effectiveness review of the Committee was undertaken.
The key topics discussed by the Committee during 2023 are set
out on the following pages.
to contributors and monitored on an ongoing basis
– Early-warning meetings focused on accounting matters are
conducted between management of each business, Group
functions, the Group finance team and the external auditor
in advance of the year end reporting process
– A thorough process of review, evaluation and verification
of the inputs from businesses is undertaken to ensure the
accuracy and consistency of information presented in the
2023 Integrated Annual Report
– External advisers provide advice to management and the
Audit Committee on best practice with regard to the creation
of the 2023 Integrated Annual Report
– A meeting of the Audit Committee was held in February
2024 to review and approve the draft 2023 Integrated
Annual Report, in advance of the final approval by the
Board. This review included the significant accounting
matters explained in the notes to the consolidated
financial statements
– The Audit Committee considered the conclusions of the
external auditor over the key audit matters that contributed
to their audit opinion, specifically impairment charges and
impairment reversals and environmental restoration and
decommissioning obligations.
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Significant accounting issues considered by the Audit Committee in
relation to the Group’s financial statements
— Impairment and impairment
reversals of assets
The value of mining operations
is sensitive to a range of
characteristics unique to each
asset. Management is required
to apply judgement in the
estimation of Ore Reserves,
and price and production
forecasts which drive cash
flow projections.
Response of the Audit Committee
The Committee exercises oversight over the impairment review process. The Committee
assessed the identification of impairment and impairment reversal indicators, the impact of
climate change on commodity prices and exchange rate assumptions, the review of changes in
the valuation of cash generating units (CGUs) and associated sensitivity analysis, and the
appropriateness of disclosures made within the 2023 Integrated Annual Report on key sources
of estimation uncertainty.
The Committee paid particular attention to the impact of climate change on the Group’s
impairment analysis. In addition to the linkage to commodity prices, the impact of carbon
pricing through carbon cost assumptions was considered for the operations where a valuation
was prepared together with the consistency of climate-related assumptions to the Group’s
wider climate strategy. The Committee reviewed and approved the associated climate-related
impairment disclosure.
During 2023, the most significant assets considered were the following:
De Beers
The annual impairment assessment for goodwill relating to De Beers indicated a lower
valuation than in 2022, primarily driven by lower prices reflecting a reduction in forecast
consumer demand and resulted in an impairment charge of $1.6 billion to bring the carrying
value into line with the recoverable amount.
The valuation continues to be sensitive to changes in foreign exchange rates and consumer
demand, impacting prices. The Committee concluded that the impairment charge recorded at
31 December 2023 was appropriate and carefully considered and approved the proposed
disclosure.
Barro Alto, Nickel
At 30 June 2023, changes in the long term cost profile were identified as an indicator of
impairment and the carrying value of the CGU was assessed, resulting in an impairment charge
of $0.4 billion. At 31 December 2023, revisions to the short and medium term nickel price
forecast were identified as an indicator of further impairment and an additional impairment
charge of $0.4 billion was recorded.
The Committee considered the valuation scenarios presented by management and approved
the conclusions of the assessment and the proposed disclosure. The Committee also
considered the recoverability of long term inventory stockpiles relating to the Nickel business
and concluded that no adjustment to the carrying value was required.
Minas-Rio, Iron Ore
At 31 December 2023 changes to the medium and long term price outlook and revisions to the
forecast production and capital expenditure profile were identified as indicators that the
recoverable amount may have changed. The valuation model indicated that no adjustment to
the carrying value was required.
The Committee considered the valuation scenarios presented by management together with
the impact of the resource acquisition transaction (see note 31 to the Consolidated Financial
Statements) and approved the conclusions of the assessment and the proposed disclosure.
For each of the CGUs noted above the Committee considered disclosures and was satisfied
they were appropriate. Particular attention was paid to the significant judgements and
estimates made in the course of each assessment and the related disclosures.
Other
In addition to the assets noted above, the Committee was updated on the valuation drivers of
assets that had either previously been impaired and therefore are considered to have an
inherent risk of either further impairment or impairment reversal or where other events had
prompted a more detailed assessment.
An annual assessment of the valuation of CGUs containing goodwill and indefinite life
intangible assets was undertaken. The Committee was satisfied with the conclusions reached
and disclosure given. Impairment reviews were undertaken and considered by the Committee
for certain other smaller CGUs of the Group with the Committee satisfied with the conclusions
reached and where applicable the immaterial impairment charges recognised.
The Committee gave careful consideration to whether there were indicators of impairment or
impairment reversal for Woodsmith (Crop Nutrients) or Moranbah-Grosvenor (Steelmaking
Coal) as well as other previously impaired assets. No indicators of impairments or impairment
reversals were identified for these assets.
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Significant accounting issues considered by the Audit Committee in
relation to the Group’s financial statements
— Taxation
The Group’s tax affairs are
governed by complex domestic
tax legislations, international
tax treaties between countries
and the interpretation of both
by tax authorities and courts.
Given the many uncertainties
that could arise from these
factors, judgement is often
required in determining the tax
that is due. Advice is received
from independent experts
where required.
— Provision for restoration,
rehabilitation and
environmental costs
The estimation of
environmental restoration and
decommissioning liabilities is
inherently uncertain, given the
long time periods over which
these expenditures will be
incurred, and the potential for
changes in regulatory
frameworks and industry
practices over time.
— Special items, remeasurements
and one-off transactions
The Group’s criteria for
recognising a special item or
remeasurement involves the
application of judgement in
determining whether an item,
owing to its size or nature,
should be separately disclosed
in the income statement.
— Retirement benefits
The estimation of retirement
benefits requires judgement
over the estimation of scheme
assets and liabilities. Areas of
judgement include
assumptions for discount and
inflation rates and life
expectancy. Changes in the
assumptions used would affect
the amounts recognised in the
financial statements.
Response of the Audit Committee
The Group head of tax provided the Committee with updates throughout the year on various
tax matters, including relevant international and domestic tax policy updates, the
implementation and operational outcomes of the tax risk governance framework, the impact of
international events and trends on the global tax environment and the future of resource
taxation, the status of tax audits, tax reporting, and the status of uncertain tax positions. While
all these matters are inherently judgemental, no significant issues arose during 2023.
Response of the Audit Committee
The Committee reviewed the update provided by management on estimates of environmental
and decommissioning liabilities, which are based on the work of external consultants and
internal experts. The Committee continued to pay particular attention to the impact of the
Group’s public commitment of conformance with the Global Industry Standard on Tailings
Management (GISTM) and were satisfied that obligations for conformance with the standard
had been appropriately provided for.
The Committee considered the changes in liability assumptions, including discount rates, and
other drivers of movements in the amounts provided on the balance sheet and concluded that
the provisions recorded as at 31 December 2023 appropriately reflected these updates.
Response of the Audit Committee
The Committee reviewed each of the items classified as special items or remeasurements in the
financial statements, and the related disclosures, to ensure that the separate disclosure of
these items was appropriate.
Response of the Audit Committee
The Committee reviewed the assumptions behind the calculations of the asset and liability
positions of the Group’s pension and medical plans and concluded that the amounts recorded
as at 31 December 2023 appropriately reflected these updates.
In addition, the Committee reviewed the funding levels of the plans, any additional funding
being provided to the plans and the overall expense recognised for the year. The Committee
assessed the appropriateness of the Group’s overall risk management approach to retirement
benefits and was comfortable the recent purchase of an insurance policy to settle pension
liabilities related to the De Beers UK pension scheme (a ‘buy-in’) was aligned with this approach
and appropriately disclosed.
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Significant accounting issues considered by the Audit Committee in
relation to the Group’s financial statements
— Legal matters
A provision is recognised
where, based on the Group’s
legal views and, in some cases,
independent advice, it is
considered probable that an
outflow of resources will be
required to settle a present
obligation that can be measured
reliably. This requires the
exercise of judgement. The
Committee was updated by
the legal & corporate affairs
director on the status of legal
matters over the course of
the year.
— Accounting standards and
best practice guidance
The impact of new accounting
standards, and any elections
made in their application,
involves judgement to ensure
their adoption is managed
appropriately.
— Going concern basis of
accounting in preparing the
financial statements
The ability of the Group to
continue as a going concern
requires judgement in the
estimation of future cash flows
and compliance with debt
covenants in future years.
Response of the Audit Committee
During the year the Committee considered developments with the Kabwe case including with
respect to the class certification application which was rejected by the court in December
2023. The litigation is still subject to significant uncertainty, and it was concluded that it is not
currently possible to make a reasonable estimate of the outcome, quantum or timing of any
potential future determination.
Various other legal matters were reviewed and the Committee considered management’s
assessment that there were no individually material provisions required with respect to ongoing
legal matters and that the disclosures made in respect of contingent liabilities were
appropriate. The Committee endorsed management’s proposal.
Response of the Audit Committee
The Committee received updates on new accounting standards (none of which had a material
impact on the Group or Company) and the latest guidance and best practice examples issued
by relevant regulators. The Committee ensured that appropriate enhancements had been
made to disclosures where relevant.
The Committee received updates on developments in environmental, social and governance
reporting, including the publication of the International Sustainability Standards Board’s first
standards and considered the appropriateness of management’s plans to conform with these
standards in due course.
The Committee received updates on government consultations regarding UK corporate reform
which are anticipated to bring wide-ranging changes to the corporate regulatory landscape.
Response of the Audit Committee
The Committee assessed the forecast levels of net debt, headroom on existing borrowing
facilities and compliance with debt covenants. This analysis covered a period of least
12 months from the date of approval of the financial statements, and considered a range of
downside sensitivities linked to the Group’s principal risks, including a reduction in commodity
prices and potential operational incidents. The Committee concluded it was appropriate to
adopt the going concern basis.
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Liquidity management
— Liquidity and debt
Reviewing the application of
the debt strategy, funding and
capital structure and the
Group’s forecast cash position.
Judgement is required in the
estimation of future cash flows
and their impact on financing
plans and contingencies.
— Payment of the dividend
Reviewing management’s
recommendation to the Board
regarding the level of dividend
to be paid for 2023, based on
the payout-ratio-driven
dividend policy.
— Viability statement
The viability statement, and the
underlying process to analyse
various scenarios that support
the development of the viability
statement, are found on pages
79–80.
Response of the Audit Committee
The Committee received regular updates on the profile of the Group’s debt maturities and
liquidity headroom, continued capital expenditure requirements, free cash flow generation and
dividend payments.
The Committee reviewed management’s debt capital markets and banking plans for
2024, in the context of strategy-defined targets, to ensure the continued sufficiency of
financing facilities.
Response of the Audit Committee
During 2023, the Committee reviewed the proposals for payments of dividends, in accordance
with the payout-ratio-driven dividend policy based on 40% of underlying earnings. Taking into
account the Group’s liquidity position, the Committee endorsed the proposal by management,
and recommended to the Board for approval, the payments of the 2022 final dividend and the
2023 interim dividend.
Response of the Audit Committee
The Committee reviewed the time period over which the assessment is made, along with the
scenarios that are analysed, the potential financial consequences and assumptions made in
the preparation of the statement.
The Committee concluded that the scenarios analysed were sufficiently severe but plausible
and the time period of the viability statement was appropriate.
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Risk assurance
— Risk management
The Group’s risk profile and the
process by which risks are
identified and assessed.
Response of the Audit Committee
The Committee assessed the Group’s risk profile, in particular the principal risks (see pages
81–85). The Committee discussed the key risks, the mitigation plans in place and the
appropriate executive management responsibilities. The Committee also considered the
process by which the risk profile is generated, the changes in risk definitions and how the risks
aligned with the Group’s risk appetite. Following discussion and challenge, the risk profile
was approved.
— Various risk matters
The Committee oversees the
implementation of work to
mitigate a variety of key risks.
Response of the Audit Committee
During the course of 2023, the Committee reviewed work to mitigate information technology
risk, risks associated with the Woodsmith project, cyber risk, artificial intelligence risk, and
marketing and trading risks. The Committee evaluated the work being performed, progress made
and provided challenge to satisfy itself that these risks were being adequately managed.
— Ethical business conduct
The Committee monitors the
effectiveness of, and
compliance with, the Group’s
Code of Conduct. The
Committee also reviews the
Group’s whistleblowing
arrangements and procedures.
— Mineral Resources and Ore
Reserves statements
The year-on-year changes to
Mineral Resources and Ore
Reserves for operations and
projects across the Group.
Response of the Audit Committee
The Committee reviewed the ongoing work to enhance the effectiveness of ethical business
conduct and compliance across the Group. The Committee received reports on bullying and
harassment investigations, anti-corruption initiatives and the Action for Integrity campaign. The
Committee considered the activities undertaken to strengthen Code of Conduct and Group
policy governance such as undertaking risk management effectiveness reviews of 16 Group
policies and implementation of a Compliance Management System.
Response of the Audit Committee
The Committee reviewed the significant year-on-year changes, satisfying itself that
appropriate explanations existed. The Committee also reviewed the ongoing improvements
in the process to estimate and report Mineral Resources and Ore Reserves.
— Internal audit work
Reviewing the results of internal
audit work and the 2023 plan.
Response of the Audit Committee
The Committee received reports on the results of internal audit work. The Committee discussed
areas where control improvement opportunities were identified and reviewed the progress in
completion of agreed management actions.
The Committee reviewed the proposed 2024 internal audit plan, assessing whether the plan
addressed the key areas of risk for the business units and Group. The Committee approved the
plan, having discussed the scope of work and its relationship to the Group’s risks.
— External audit
Reviewing the results of the
external audit work, evaluating
the quality of the external audit
and consideration of
management letter
recommendations.
Response of the Audit Committee
The Committee reviewed the planning report from PwC in June 2023 and approved the final
audit plan and fee, having given due consideration to the audit approach, materiality level and
audit risks. The Committee received updates during the year on the audit process, including
how the auditor had challenged the Group’s assumptions on the accounting issues noted in this
report. In February 2024, the Committee reviewed the output of the external audit work that
contributed to the auditor’s opinion.
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– The Audit Committee has primary responsibility for making
recommendations to the Board on the appointment, re-
appointment and removal of the external auditor.
– The Audit Committee has the authority to engage
independent counsel and other advisers as they determine
necessary to resolve issues on the auditor’s independence.
– An annual assessment is undertaken of the auditor’s
effectiveness through a structured questionnaire and input
from all businesses and Group functions covering all aspects
of the audit process. The Audit Committee members also
participate in this assessment, which evaluates audit
planning, execution, communications and reporting. The
assessment identifies strengths and areas for improvement,
which are discussed with the auditor and action plans
agreed. The Committee reviewed the measures taken by
PwC to support audit quality, including their significant focus
on robust challenge and appropriate scepticism in respect of
management’s assumptions. The evaluation of the external
audit concluded that the external auditor was independent,
objective and effective in the delivery of the audit.
Anglo American confirms compliance during the year with the
provisions of the Competition and Markets Authority Order on
mandatory tendering and audit committee responsibilities.
Conclusions of the Audit Committee for 2023
The Committee has satisfied itself that the external auditor’s
independence was not impaired.
The Committee held meetings with the external auditor, in the
absence of management, on two occasions, and the chair of
the Audit Committee held regular meetings with the lead audit
engagement partner during the year.
Consideration given to the appointment of the
external auditor
Following the conclusion of a formal tender process in 2019,
Anglo American appointed PwC as its external auditor with
effect from and including the year ending 31 December 2020.
The Audit Committee’s assessment of the external auditor’s
performance and independence underpins its
recommendation to the Board to propose to shareholders the
re-appointment of PwC as auditor until the conclusion of the
AGM in 2025. Resolutions to authorise the Board to re-appoint
and determine the remuneration of PwC will be proposed at the
AGM on 30 April 2024.
Ensuring the independence and effectiveness of the
external auditor
Anglo American’s Group policy on External Auditor
Independence incorporates the requirements of the FRC’s
revised Ethical Standard published in 2019.
A key factor that may impair an auditor’s independence is a
lack of control over non-audit services provided by the external
auditor. The external auditor’s independence is deemed to be
impaired if the auditor provides a service that:
– Results in the auditor acting as a manager or employee
of the Group
– Puts the auditor in the role of advocate for the Group
– Creates a mutuality of interest between the auditor
and the Group.
Anglo American addresses this issue through the
following measures:
– Services performed by PwC are permitted non-audit
services. The permitted non-audit services mirrors the
'Whitelist’ included in the FRC’s revised Ethical Standard
– Prior approval by the Audit Committee of non-audit services
where the cost of the proposed service exceeds or is
expected to exceed $100,000
– Disclosure of the extent and nature of non-audit services.
Anglo American’s approach to the provision of non-audit
services is contained within its policy on External Auditor
Independence.
Non-audit work is only undertaken where there is commercial
sense in using the auditor without jeopardising auditor
independence; for example, where the service is related
to the assurance provided by the auditor or benefits from
the knowledge the auditor has of the business.
Non-audit fees represented 14% of the 2023 audit fee of
$16.2 million. A more detailed analysis is provided on page 294.
Other safeguards
– The external auditor is required to adhere to a rotation policy
based on best practice and professional standards in the UK.
The standard period for rotation of the audit engagement
partner and any key audit partners is five years. The audit
engagement partner, Mark King, was appointed in 2020 and
will rotate off at the end of the 2024 audit in accordance with
this requirement.
– Any PwC partner designated as a key audit partner of
Anglo American will rotate off the audit after no more than
five years and shall not be employed by Anglo American
in a key management position unless a period of at least
two years has elapsed since the conclusion of the last
relevant audit.
– The external auditor is required to assess periodically
whether, in their professional judgement, they are
independent of the Group.
– The Audit Committee ensures that the scope of the auditor’s
work is sufficient and that the auditor is fairly remunerated.
The Committee agreed an audit fee of $16.2 million
(2022: $16.2 million) for statutory audit services in the year.
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Risk management
Risk appetite
Risk management is the responsibility of the Board and is
integral to the achievement of the Group’s objectives. The
Board establishes the system of risk management, setting risk
appetite and maintaining the system of internal control to
manage risk within the Group. The robust process of identifying
and evaluating the principal and emerging risks was in place
during 2023 and up to the date of this report. The Group’s
system of risk management and internal control is monitored
by the Audit Committee under delegation from the Board.
The Board confirms that it has completed a robust assessment
of the Company’s emerging and principal risks.
We define risk appetite as “the nature and extent of risk that
Anglo American is willing to accept in relation to the pursuit of
its objectives”. Each principal risk is assessed as to whether it is
operating within the limit of appetite for the Group. This is based
on review of the external factors influencing that risk, the status
of management actions to mitigate or control the risk and the
potential impact should the risk materialise. For risks operating
beyond the limit of appetite, a change in strategy may be
required. For risks operating within, but approaching the limit of
appetite, specific management actions may be required to
ensure the risk remains within the limit of appetite.
The system of risk management is designed to ensure
awareness of risks that threaten the achievement of objectives.
The controls that mitigate those risks are identified so that
assurance can be provided on the effectiveness of those
controls. A determination can then be made as to whether the
risk is operating within the Group’s risk appetite. We seek to
embed a culture of risk awareness into the development of our
strategic and operational objectives.
The process for identification and assessment of the principal
risks combines a top-down and bottom-up approach. At the
operations level, a process to identify risks that prevent the
achievement of objectives is undertaken. Detailed analysis
of the material risks at each location is performed to ensure
management understanding of the risk and controls that
reduce likelihood of occurrence and impact should the risk
materialise. These operational risk profiles contribute to the
assessment of risks at the business level. Executive
management at each business assesses risks that threaten
achievement of the business objectives and the status of
controls, or actions, that mitigate those risks. At the Group
level, risks are identified through assessment of global factors
affecting the industry and the Group specifically, as well as
the risks arising from the business assessments. Consideration
is given to the views and interests of Anglo American
stakeholders. Materiality of risk is determined through
assessment of the various impacts that may arise and
likelihood of occurrence. An exception relates to those risks
deemed catastrophic in nature, where the focus of assessment
is on impact and status of internal controls, given the very low
likelihood of occurrence. When considering the impact of any
risk, we assess safety, environmental, financial, legal or
regulatory, social and reputational consequences.
Regular reports on the status of risks and controls are presented
to executive management teams throughout the year. The
Audit Committee reviews reports on the overall Anglo American
risk profile on two occasions during the year and conducts in-
depth reviews of specific risks during its meetings over the
course of the year. Each principal risk is assigned to either the
Board or the relevant Board committees to oversee executive
management actions in response to that risk. The Audit
Committee reviews that oversight process on an annual basis.
Details of the principal risks are provided on pages 81–85.
Risk management and the system of internal control
Controls either reduce the likelihood or impact of any risk, while
the identification of material controls – i.e. those controls that
have the most influence in mitigating a risk – is an important
input for audit planning.
The system of internal control operates on a collaborative ‘three
lines’ approach, with operating management owning and
managing risks and controls on a day-to-day basis, and
business or functional management fulfilling a second line role
through frequent oversight of implementation of controls, and
providing complementary expertise, support and challenge
relating to the management of risk.
A centrally managed internal audit department provides the
third line role by reviewing the design and operating
effectiveness of the internal control framework, which includes
the work performed by the first and second lines management
teams. External assurance providers sit outside the three lines’
roles but provide additional assurance to satisfy legislative and
regulatory expectations, or requests from management or the
Board to complement internal sources of assurance.
The above is reflected in the Anglo American Risk and
Assurance Governance (RAG) Model, introduced in 2020, and
work has continued in 2023 together with the respective
functions and operations to embed this further. This work
included the development of a combined assurance calendar
to enable monitoring of assurance activities across different
assurance providers. This was used as a key input in developing
the 2024 assurance plans for the second and third lines.
Internal audit operated in all the Group’s managed businesses
in 2023, reporting its work to executive management and the
Audit Committee on a regular basis. The internal audit
department’s mandate and annual audit coverage plans were
approved by the Audit Committee.
The scope of internal audit work covers the broad spectrum
of risk to which the Group is exposed. The audit of controls
associated with major operating/technical risks was
undertaken by utilising external technical experts as well as
relevant internal experts from the Technical & Operations
function, the results of which were shared with the Sustainability
and Audit committees.
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177
In determining its opinion that the internal financial controls
and internal control and risk management environment was
effective during 2023, the Audit Committee considered the
following factors:
– The results of internal audit work, including the response
of management to completion of actions arising from
audit work
– The key risk areas of judgement and estimation
uncertainty within financial reporting and mitigating actions
taken by management
– The output of risk management work
– The output of external audit work and other
assurance providers
– Issues identified by management or reported through
whistleblowing arrangements, and the results of
investigations into allegations of breaches of our values
and business principles.
Reviewing the effectiveness of the system of risk
management and internal control
The Board, through the Audit Committee, fulfils its responsibility
in reviewing the effectiveness of the system of risk
management and internal control through review of reports
submitted over the course of the year covering the risk
management process, adequacy of the internal control
environment, consideration of risk appetite, in-depth reviews
of specific risks and the results of external audit work. The
Sustainability Committee also reviews safety and sustainability
risks in detail and reports its findings to the Board.
Reviewing the effectiveness of internal audit
The Committee assesses the work of internal audit on a regular
basis through the receipt of reports on the progress of the
internal audit plan and issues arising and through its annual
effectiveness review. The resources of internal audit are also
monitored to ensure appropriate expertise and experience.
The Committee met with the Group head of risk management
and business assurance, in the absence of management
on two occasions during 2023. Furthermore, the chair of the
Committee held regular one-to-one meetings with the Group
head of risk management and business assurance.
Whistleblowing programme
The Group operates a multilingual whistleblowing facility which
uses a reporting platform provided by a third-party service
provider. The whistleblowing programme is called YourVoice
and continues to facilitate confidential and anonymous
reporting of a wide range of concerns about potentially
unethical, unlawful or unsafe conduct or practices that conflict
with our Values and Code of Conduct.
The YourVoice channel is available to our employees in our
managed operations as well as to all external stakeholders,
such as suppliers, community members and members of the
public affected by our operation.
During 2023, we received 1,403 reports through the YourVoice
channel, a 29% increase from 2022.
1,370 allegations were closed during this reporting period,
which include intakes from prior years. 25% of the 2023
allegations closed were substantiated or partially
substantiated.
All YourVoice reports are assessed and investigated as
appropriate by a dedicated investigation team based
across the Group using a standardised investigation
framework. Appropriate actions were taken against
substantiated allegations.
The continued rise in reports is attributed to the increased
awareness of the channel, and a growing culture of trust
among our employees and other stakeholders to raise their
concerns with confidence. The promotion of this channel
through other relevant Group-wide initiatives, such as the
Action for Integrity month, policies and programmes, also
encouraged a healthier ‘speak up’ culture.
The current process facilitates the opportunity to take early
remedial actions and enables management to address any
systemic issues identified. For this purpose, protocols have
been agreed with the Group’s senior management for early
involvement and support in sensitive investigation cases, such
as fraud, bullying, harassment, safety and others with the
potential for significant reputational damage.
The Audit Committee is responsible for monitoring and
advancing the programme on a continuous basis.
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Governance
Directors’ remuneration report
Directors’ remuneration report
Committee members
Ian Tyler – Chairman
Ian Ashby
Hixonia Nyasulu
▶ For further detail on biographies and Board
experience: pages 142–145
The chairman, chief executive, people & organisation
director, the Group head of performance & reward, and
external advisers also attend meetings at the invitation of
the Committee chair.
“ The Remuneration Committee believes
that the reward framework drives
outcomes that appropriately balance
incentivising delivery of the strategy
throughout the cycle, and reflecting
shareholder experience.”
Ian Tyler
Chairman
Role and responsibilities
– Establishing and developing the Group’s general policy
on executive and senior management remuneration
– Determining specific remuneration packages for the
chairman, executive directors, members of the ELT
and other senior management
– Input and oversight on the reward policy for the
broader workforce
– Engaging with shareholders and other stakeholders
regarding executive remuneration.
The Committee’s terms of reference are available to
view online.
▶ For more information
Visit angloamerican.com/about-us/governance
Changes to the Committee
There were no changes to the Committee in 2023.
Committee discussions and focus areas in 2023
– Approval of incentive results for the 2022 annual
bonus and vesting levels of the 2020 LTIP
– Setting of incentive targets for the 2023 annual bonus
and LTIP
– Approval of the 2023 directors’ remuneration policy at
the 2023 AGM
– Approval of remuneration arrangements and service
agreement for incoming finance director
– Approval of remuneration arrangements for outgoing
finance director on cessation of employment
– Approval of remuneration arrangements for ELT members,
including new appointments
– Updates on broader employee pay.
Key areas of focus for 2024
– Assessment of 2023 incentive outcomes, including for
the 2023 annual bonus and 2021 LTIP award
– Setting of incentive targets for 2024, including the 2024
annual bonus and 2024 LTIP award
– Continued focus on embedding ESG priorities into executive
pay outcomes, and the related assurance processes
– Review of corporate governance in relation to remuneration
issues, remuneration market trends and any implications for
the Group.
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Governance
Directors’ remuneration report
179
Remuneration Committee chairman’s introduction
Dear Shareholders
As the Remuneration Committee, our primary role is to ensure
that the remuneration arrangements for executive directors
and Executive Leadership Team (ELT) members are aligned
with delivering the Company’s strategy, both in the short
and longer term, to deliver shareholder value in a fair and
sustainable manner. Retaining a strong link between pay
and broader performance is paramount.
2023 continued to be a year of volatility and Anglo American
experienced a more difficult year, affected by geopolitical
turbulence and prolonged inflationary pressures. In a
challenging year, full consideration to the Company’s strategy,
shareholder interests and the shareholder experience has
been imperative when making decisions on remuneration, to
ensure we protect our business and remain resilient for years
to come.
It has also been a difficult year for the Group financially,
with specific challenges as we navigate the down cycles
of PGMs and De Beers. The focus during 2023 has been
to reorientate the business to position value and growth
opportunities in the long term over short term production
volumes. Safety of our people remains at the forefront and this
sustainable and measured approach supports this priority.
2023 remuneration policy
As detailed in last year’s directors’ remuneration report, an
updated remuneration policy was put to a vote at the AGM
on 26 April 2023. I am pleased to report that the new policy
passed with extremely strong support; 95.92% of shareholders
voted for the policy.
The Committee engaged extensively with shareholders and
stakeholders as part of a comprehensive review of the policy
and I would like to extend my personal thanks to all of those
who took part in the consultations for their constructive
dialogue and feedback.
As a reminder, the key changes in the 2023 policy were:
– The maximum opportunity under the LTIP was increased to
350% of salary for executive directors (this was applied only
to the Chief Executive in 2023)
– The annual salary increase cap and annual benefits cap
were removed to better align with market practice
– The formula driven LTIP grant reduction mechanism was
replaced with a discretionary, principle-based approach
to determine any adjustment, to ensure outcomes are
appropriate in light of all prevailing circumstances and to
better align with market practice.
Director changes during the year
A key focus of the Committee’s agenda during 2023 was
the remuneration arrangements for our finance director
succession, following the announcement of Stephen Pearce’s
intention to retire in May 2023.
As announced in July and November, John Heasley joined the
Board as finance director on 1 December 2023. The terms of
the remuneration package for John were announced in July
2023 and comprise a base salary of £810,000, a pension
contribution of 15% of base salary (aligned with the wider
UK workforce), a maximum bonus opportunity of 210% and
an annual LTIP award of 350%. The Committee took the
opportunity to re-balance John Heasley’s remuneration
package on appointment, with a lower base salary and a
higher LTIP award as compared to his predecessor to align
with the chief executive to focus the remuneration package
more on the delivery of long-term performance. The package
complies fully with the approved directors’ remuneration
policy. Full details are provided in the executive director
remuneration in 2023 section on page 185.
John was also granted an award of shares in compensation for
the incentives forfeited from his previous employer, structured
on a ‘like-for-like’ basis to mirror the opportunity and terms of
the forfeited incentives. Full details are provided on page 198.
Stephen Pearce stepped down from the Board as finance
director on 1 December 2023, remaining an Anglo American
employee until 29 February 2024. Between stepping down as
finance director and leaving the Group, he continued to
provide services to the Group in support of a smooth transition
into the role for the incoming finance director, John Heasley.
Stephen’s remuneration and incentive arrangements on
retirement were determined by the Committee and are in line
with the current directors’ remuneration policy, his service
agreement and the rules of our incentive arrangements.
Further information in respect of his remuneration
arrangements on leaving is provided on page 199.
Decision making
The Committee has taken into consideration: company
performance, which includes financial performance; health
and safety; and personal achievements of each executive
director linked to the Group’s strategic priorities, when
making decisions on pay. We also continue to consider the
shareholder experience and shareholder views, pay for
the wider workforce, and wider societal expectations. As a
Committee, we continue to strive to make decisions that strike
a balance between incentivising the management team into
the future, paying for good performance and being equitable
in the broader context. To avoid conflicts of interest, no
executive director is present when their pay is discussed;
likewise, the chairman is not present in the meeting when his
remuneration is discussed.
2023 outcomes
Safety, health and environment
We continue to make progress on our long term safety journey;
in 2023, our total recordable injury frequency rate (TRIFR)
decreased significantly to 1.78, a 19% improvement year on
year and the lowest in the Company’s history. However, it is
with deep sadness that we experienced three fatalities at our
managed operations during 2023.
Any loss of life on our sites can not be tolerated and we will
continue to work tirelessly until we hit our goal of zero fatalities
on a consistent basis. The tragic loss of three colleagues
during 2023 led the Committee to again consider the way in
which we incentivise safety performance through our variable
pay structures.
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The Committee is convinced that in order to create an
environment in which we can reach our goal of zero fatalities,
we must continue to incentivise operational excellence in
safety, by reducing accident frequency and severity, and
increasing our leadership visibility. The 2023 annual bonus
included measures related to TRIFR, delivery of planned work
and leadership time in the field. These measures will continue
to be included in the 2024 bonus.
The Committee also continues to feel strongly that all fatalities
must be reflected in executive pay outcomes. Taking this into
account, the Committee has determined that it is appropriate
to apply a 15% deduction to annual bonus payouts for the
executive directors for 2023. The Committee considers that
this outcome provides an appropriate balance of rewarding
performance against the safety measures within the bonus,
reflecting our broader, strong safety performance during the
year, and recognising the unacceptable loss of life.
Financial performance
Prevailing macro factors – principally resulting in weaker prices
for some of our products, with PGMs and diamonds at cyclical
lows, and input cost inflation – have put pressure on mining
margins and overall returns across the industry. Operational
constraints at Kumba, Los Bronces and Steelmaking Coal
resulted in lower overall production than originally planned,
albeit the effect mitigated by the full ramp up and strong
performance at Quellaveco.
Group underlying EBITDA for the year has decreased by
31% to $10.0 billion, largely reflecting the weaker prices for
some of our products, and to a lesser extent, cost inflation.
Against this backdrop, we delivered mixed results, with
a return on capital employed result of 16%, and a mining
EBITDA margin of 39%. TSR was negative 36% for the year,
reflecting the significant challenges outlined, particularly in
relation to PGMs and diamonds that are distinct to our
portfolio in the industry.
Annual bonus outcomes
With the underlying financial performance described above,
underpinned by the challenging economic environment, the
financial measures within the annual bonus paid out at 11%.
This was due to marginal vesting for the EPS at actual price
and foreign exchange target, which was supported by
prices for some of our products and favourable exchange
rates in-year.
Performance against our safety, health and environment
targets was strong, with these measures paying out at 90.5%
for 2023. The measures are largely leading in nature and
designed to support strengthened safety outcomes in future
years, which supports our ongoing drive for zero fatalities.
Bonus outcomes for the executive directors after the safety
deductor were at 38% of maximum for the chief executive
and 39% of maximum for the former finance director.
2021 LTIP outcomes
The shareholder experience over the three-year
performance period was mixed, with a positive outcome
for the majority of the performance period, followed by a
challenging year in 2023.
TSR measures:
– Shareholders have seen a TSR outcome of 19%(1),
positioning us above the FTSE 100 median TSR of 14.1%
and below the S&P Euromoney Global Mining Index TSR
of 32.3%
– The total TSR weighting within the LTIP is 50%, 17% is
based on performance against the FTSE 100, with 38.6%
of this 17% vesting. The remaining 33% is based on TSR
performance against the S&P Global Mining Index, with
vesting of zero. In total, 6.6% of the LTIP has therefore vested
based on TSR performance.
Financial measures:
– 15% of the award was dependent on ROCE. This vested at
63.5%, based on attributable ROCE of 16% for the year
– 15% of the award was based on Group Cumulative
Sustainable Attributable Free Cash Flow. This measure
vested at 68%, largely due to contribution from strong
commodity prices and market fundamentals during the first
two years of the performance period.
ESG measures:
– 8% of the award was based on improvements in GHG
efficiency. Overall the Group achieved a 25% improvement,
indexed on 2020, resulting in 100% vesting of this measure
– The 6% of the award based on social responsibility and the
number of jobs supported off site for each job on site also
vested at 100%. By the end of 2023, we had supported
139,308 jobs through socio-economic development
programmes since the launch of our Sustainable Mining Plan
in 2018. In 2023, we supported 2.4 jobs off site for every job
on site job (2022: 1.8)
– The 6% of the LTIP for the tailings facilities measure required
100% implementation of the updated Anglo American
tailings standard (2020) that incorporated all Global Industry
Standard on Tailings Management (GISTM) requirements
across the Group. We have made tremendous progress in
this area, as demonstrated in the August 2023 disclosures.
However, the measure was deliberately ‘binary’ in nature to
reflect the importance of tailings management, and as such
despite our market-leading progress the100% was not
delivered across all areas, resulting in vesting at 0%. While
the Committee judges it appropriate not to adjust this
outcome upwards, as we progress our GISTM journey we
have articulated the measures in a different way for the
2024 LTIP – further details can be found below.
As a result of the performance across the different elements
of the scorecard, the 2021 LTIP award therefore vested at
40.3% of maximum.
Overall assessment of 2023 outcomes
The remuneration policy sets out to incentivise in-year
financial, SHE and operational performance, and delivery
of the longer term strategy, whilst taking into account the
shareholder experience. Having considered the 2023
outcomes through these various lenses, the Committee
believes that they are fair and reasonable.
(1) Based on three-month average prices as at the end of 2023, in line with
the TSR calculation methodology for LTIP awards.
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181
In 2023, the Panel met on three occasions, one of which was in
person. Board members were also able to engage directly with
Panel members on several occasions during the Board’s and
non-executive director site visits.
CEO pay ratio
The CEO pay ratio compares the chief executive’s
remuneration to the pay for an employee at the median, lower
quartile and upper quartile of our UK employee population
(including De Beers and Crop Nutrients employees).
The median CEO pay ratio for 2023 is 36:1, down from 72:1
for 2022. A significant proportion of the chief executive’s
remuneration package is made up of LTIP shares. The sizeable
reduction compared to the prior year is largely a result of the
lower vesting outcome, a fall in share price in 2023, and the
vesting relating to LTIP awards granted to the current chief
executive prior to joining the Board. Further details on the CEO
pay ratio can be found on page 208.
Looking ahead
Salaries
The Committee approved a 4% increase to the chief
executive’s salary for 2024, in line with the 4% awarded to the
Group’s UK-based employees. The finance director did not
receive an increase for 2024, having joined towards the end
of 2023.
Implementation of incentives in 2024
Performance measures attached to the 2024 annual bonus
and LTIP awards are in line with the terms of the 2023 policy
and are designed to drive delivery of both financial returns
and the priorities within our Sustainable Mining Plan. Details
of these performance conditions can be found in the
implementation report that begins on page 185. During 2023
the Euromoney (EMIX) Global Mining Index was discontinued,
and the Committee determined that the S&P Global Mining
Index will be used to measure relative TSR against the mining
industry going forward, for both inflight and future awards. The
S&P index is materially similar to the EMIX index and was
therefore the most appropriate comparator group.
Conclusion
In what has been a very busy first full year as chairman
of the committee, supporting the implementation of the
organisational changes, I am pleased with the engagement
of both the Committee and the management team in
focusing on the remuneration-related issues that are the most
important in support of driving the business forward. I am
committed to ensuring the decisions on remuneration will
continue to underpin the delivery of the Company’s strategy
and vision, supported by the implementation of the 2023
remuneration policy.
Ian Tyler
Chairman, Remuneration Committee
2024 LTIP grant reduction
An updated LTIP grant reduction mechanism to mitigate
windfall gains in the event of a material share price fall
between successive grants was included in the 2023
remuneration policy, and was intended to provide additional
flexibility to the Committee to consider the broader
circumstances around the share price fall when considering
any reduction.
Each year, the Committee formally reviews any share price
fall since the last LTIP grant date. In the event that there has
been a fall in share price prior to grant (compared to the share
price used to determine the number of shares granted under
the previous award), the Committee will first consider whether
that fall is material.
If the reduction is greater than 25%, the Committee will
carry out a review of the possible reasons for the reduction,
and its starting point will be that a reduction in grant level is
likely to be appropriate, unless there is a compelling
reason otherwise.
At the current share price of c.£17.50 at the time of writing,
the reduction in grant price from 2023 is c.40%. A Committee
review has therefore been carried out, examining the broader
circumstances driving the share price fall. There are many
factors contributing to the share price movement, including
cyclical movements, expected future production and short
term transitory factors. Taking these into account, particularly
the short term impacts, the Committee has decided that it is
appropriate to reduce the value of the LTIP grant in 2024 from
350% to 325% of salary for executive directors. If there is a
further material change in share price prior to the grant date in
early March, this will be reviewed.
The quantum of the reduction has been carefully considered,
and is intended to mitigate the risk of windfall gains. The
Committee is mindful that many of the factors influencing the
share price movement are already reflected in annual bonus
and LTIP vesting outcomes, and wants to ensure that there is
symmetry in this respect. Looking forward, the Committee is
also determined to ensure that management is appropriately
incentivised to deliver the Company's strategic goals in the
context of the reorientation of the business, supported by
plans that are deliverable repeatedly and safety-led. The
Committee’s view is that the reduction strikes an appropriate
balance between these various considerations.
Fairness and wider workforce pay
We care deeply about our workforce and continue to prioritise
their safety and well-being. Throughout the year we remained
committed in this respect, and the challenges faced by our
people will continue to be front of mind as we go into 2024.
Workforce engagement on remuneration
Anglo American’s Global Workforce Advisory Panel (the Panel)
currently comprises 12 employees drawn from across our
business, and is chaired by non-executive director Marcelo
Bastos. The Panel’s purpose is to give the workforce more
of a ‘voice’ in the Boardroom so their views can be better
understood and considered when decisions are being made
about the future of the business. This includes how the
committee takes on board the views of the wider workforce
in making decisions on executive remuneration. The Panel
operates alongside Anglo American’s existing employee
engagement mechanisms, such as regular employee
engagement surveys and director interaction with employees.
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At a glance
This section provides a summary of the key information
presented across the remuneration report. This includes an
overview of the 2023 policy, performance and remuneration
outcomes, as well as how our remuneration is linked to strategy.
Summary of our remuneration structure
Summary of 2023-26 remuneration policy components
Link to strategy
Key features
Fixed pay
Salary
Recruitment and retention
of high calibre executives
– Reviewed annually by Remuneration Committee
– Increases based on Group performance, individual
performance, levels of increase for the broader UK population
and inflation
Benefits
– Include car-related benefits, medical insurance, personal-
taxation and financial advice, among others
Pension
Aligned with the wider workforce
– 15% of salary
2
0
2
4
2
0
2
5
2
0
2
6
2
0
2
7
2
0
2
8
Annual bonus
Cash
Rewards delivery of strategic
priorities and financial success
Deferred shares
Encourages sustained
performance in line with
shareholder interests
LTIP
Encourages long term
shareholder return and
accomplishment of longer term
strategic objectives
Shareholding guidelines
In-post
To align with long term
shareholder interests
Post employment
To align with long term
shareholder interests
– Maximum bonus award of 210% of salary
– Outcome based on financial, SHE, strategic and personal
measures subject to a safety deductor
– 50% of bonus is paid in cash following determination
of performance
– Cash bonus subject to malus and clawback
– 50% of bonus is deferred into shares (Bonus Shares)
– One-third of Bonus Shares will vest after two years, with the
remaining Bonus Shares vesting after a further one year
– Bonus Shares are subject to malus and clawback
O
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– Shares granted with a face value of 350% of salary
– Shares vest after a three-year performance period
and released after a further two-year holding period
– Vesting based on measures linked to strategic priorities
– LTIP award is subject to malus and clawback
– Chief executive: 400% of salary
– Finance director: 300% of salary
– Lower of the in-post requirement at the time of cessation
and the actual shareholding at cessation
– To be held for two years post-employment
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Incentive performance metrics – financial measures
Underlying EPS◊
$2.42/share
Three-year shareholder return
Group attributable ROCE◊
19%
16%
2023
2022
$2.42/share
$4.97/share
2023
2022
19.0%
80.6%
2023
2022
16%
30%
2024 Implementation table
Key remuneration element
Implementation
Salary
Car allowance
Duncan Wanblad
John Heasley
£1,352,000 (4% increase effective 1 January 2024)
£810,000
Duncan Wanblad
John Heasley
£36,012
£33,719
Pension
15% of base salary (aligned to wider UK workforce)
Annual bonus
Maximum of 210% of salary
50% paid out as cash
17% paid out as shares deferred for 2 years
33% paid out as shares deferred for 3 years
LTIP
325% of salary (due to grant reduction for 2024)
3-year performance period with 2-year post-vesting holding period
Performance metrics
34% EPS
16% SAFCF
20% SHE
10% Strategic
20% Individual
50% TSR
15% ROCE
15% SAFCF
20% ESG
Key performance metrics for 2024
Metrics
Pillars of value
Rationale
Annual Bonus
weighting
LTIP
weighting
Safety and zero harm
Safety and health
Underlying EPS◊
Sustaining attributable
free cash flow◊
Financial
Financial
Environmental footprint
Environment
– Workforce safety is the Group’s first and most
10%
important value
– Links reward to delivery of in-year underlying equity
34%
returns to shareholders
– Incentivises cash generation for use either as
16%
incremental capital investment, for capital returns
to shareholders or debt reduction
– Reduction in the Group’s environmental footprint
10%
based on four pillars of ecological health (land, air,
water and nature)
TSR
Financial
Group attributable ROCE◊
Financial
Sustaining attributable
free cash flow
Financial
Greenhouse gas
emissions
Tailings – GISTM
Total
Environment
Environment
Environment
– Creates a direct link between executive pay and
50%
shareholder value
– Measure is split between comparison against sector
index (S&P Global Mining Index(1)) and comparison
against local peers (constituents of FTSE 100 index)
– ROCE promotes disciplined capital allocation by
linking reward to investment return over the
performance period
– Incentivises cash generation for use either as
incremental capital investment, for capital returns
to shareholders or debt reduction
– Commitment to help address climate change by
reducing absolute GHG emissions
– Ensuring conformance to the Global Industry Standard
on Tailings Management (GISTM) – Objective 1
facilities
– Conformance to GISTM based on self-assessment and
third-party verification initiated – Objective 2 facilities
15%
15%
10%
5%
5%
70%(2)
100%
(1) The Euromoney (EMIX) Global Mining Index ceased on 31 July 2023. In July 2023, the Committee approved the replacement of the EMIX Global Mining Index with
the S&P Global Mining Index from the date of cessation to the end of the performance period for both in-flight and future LTIP grants.
(2) 30% of annual bonus dependent on achievement of strategic and individual goals.
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Executive directors’ shareholdings
Requirement
Shareholding as at 31 Dec 2023(1)
Duncan Wanblad
400%
John Heasley
300%
Stephen Pearce
300%
776%
131%
1201%
400%
776%
300%
131%
300%
1,201%
nnn Shareholding requirement nnn Shareholding as 31 December 2023
Executive directors are expected to build up and hold a percentage of their salary in shares (400% for the chief executive, 300% for other executive directors) within
five years of being appointed.
As at 31 December 2023, Duncan Wanblad and Stephen Pearce’s executive director shareholdings exceeded the required levels. John Heasley will be expected to
meet the requirement of 300% of salary by 1 December 2028.
(1) Stephen Pearce’s shareholdings are shown as at the date he stepped down from the Board. Further details on Stephen Pearce’s post-cessation shareholding
requirements can be found on page 202.
▶ For more information
See pages 202–203
2023 pay outcomes £’000
Duncan Wanblad
2023
2022
John Heasley
2023
£85
2022
0
Stephen Pearce
2023
2022
£1,814
£1,046
£1,215
£787
£738
£2,387
£1,465
£681
£934
£1,148
£791
£3,020
nnn Fixed nnn Bonus paid nnn LTIP paid
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185
Directors’ remuneration policy
Summary of policy and statement of implementation of
policy in 2024
The following pages provide a summary of the key elements of
our directors’ remuneration policy. The last column of the table
states how the remuneration policy will be applied for 2024.
For 2024, there are no significant changes in the structure of
the remuneration package for directors compared to last year.
Performance measures
Performance measures for 2024 are set out in the table below.
The annual bonus targets for 2024 are considered by the
Board to be commercially sensitive; they will be disclosed in
the 2024 annual report on remuneration. Specific details of the
individual and strategic performance targets for 2024 will also
be included in the 2024 report.
In line with the policy, 50% of the annual bonus will be linked to
financial performance with the remaining 50% based on
safety, health and environment measures (20%), strategic
measures (10%) and personal measures (20%).
In 2024, the structure of the LTIP will continue to include a 50%
weighting on relative TSR. Financial measures based on ROCE
and SAFCF remain unchanged and continue to account for
15% each and the remaining 20% will be focused on ESG
measures. These ESG measures will continue will continue to
support the delivery of our Sustainable Mining Plan (SMP)
goals, with two measures included for 2024.
The 2022 and 2023 LTIP measures have focused on the
delivery of renewable energy, the foundation of low carbon
operations. In 2024, the Climate Change measure proposed
will focus on an absolute reduction in Greenhouse gas (GHG)
emissions, linking more directly with the 2030 commitments
with a focus on absolute reduction in GHG emissions, providing
a simplified pathway for the business.
A Tailings measure has been reintroduced and will focus
on compliance to the Global Industry Standard on Tailings
Management (GISTM). Tailings management forms part of
the Group’s principal risks and compliance with GISTM seeks
to improve safety and performance of the tailings facilities,
reducing this risk. As a member of the International Council
on Mining & Metals (ICMM) that expects its members to
demonstrate their levels of conformance to GISTM, the Tailings
measure has considered the required pathways towards
conformance across the various tailings’ storage facilities.
2023 executive directors’ remuneration policy
The 2023 remuneration policy was set out in the 2022 Annual
Report and was presented for shareholder approval at the
AGM held on 26 April 2023. This policy was approved with
95.92% support. It is intended that this policy will apply until
the Company’s 2026 AGM.
▶ The full remuneration policy can be found in the 2022 Annual Report
available on our Group website
www.angloamerican.com/annual-report-2022
How our remuneration policy addresses UK Corporate
Governance Code provision 40 principles
The 2023 remuneration policy was designed taking into
consideration the principles of provision 40 of the UK
Corporate Governance Code.
The table below outlines how the policy addresses each of
those principles:
Principle
Clarity
Simplicity
Risk
Predictability
How this is addressed in the 2023 remuneration policy
Our remuneration structure is clearly defined, and
performance-based elements, including metrics
and vesting schedules are clearly disclosed.
Our remuneration elements are well-understood
and in line with market standards.
Our policy limits the risk of unfair or excessive
remuneration and supports long term sustainable
decision making through the following measures:
– Clearly defined limits on the maximum
opportunities of incentive awards
– Operation of deferral on annual bonus awards
– Operation of a post-vesting holding period for
LTIP awards
– The Committee has discretionary powers to
adjust formulaic outcomes of incentive awards
to ensure payouts are aligned to Group
performance and the experience of key
stakeholders
– Robust malus and clawback provisions on
all incentives
– Discretion to reduce LTIP awards on grant to
protect against potential ‘windfall gains’.
The policy has defined limits which can be used
to determine potential values. Scenario charts are
presented in the policy to illustrate potential
payout scenarios.
Proportionality Payouts under incentive awards are linked to the
fulfilment of performance measures that support
the Group’s long term strategy. Deferral and
annual grants ensure long term alignment with
shareholders.
Alignment to
culture
The Committee’s powers of discretion ensure
incentive outcomes are reflective of Company
performance.
Focus on share ownership and long term
sustainable performance is reflected in the policy.
LTIP performance measures support a long term
focus for executives, including in relation to our
sustainability objectives.
Payouts for a significant portion of both the annual
bonus and LTIP are dependent on the achievement
of ESG and SHE measures, which underlines the
importance of safety and sustainability to the
Group strategy.
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2023 remuneration policy table
Key aspects of the remuneration policy for executive directors
Basic salary
To recruit and retain
high calibre executives
Operation
Opportunity/performance measures
Implementation for 2024
Basic salary levels are reviewed
annually by the Committee,
taking account of factors
including the Group’s
performance, individual
performance, market practice
at other companies of a similar
size and complexity as well as
at other companies in the
mining sector, levels of increase
for the wider workforce and
inflation.
Salary increases for executive
directors will normally at most
be in line with the increase
awarded to the Company’s
wider UK workforce.
There may be occasions when
the Committee may award a
higher annual increase,
including (but not limited to):
– Where there is a change in
The chief executive received a 4% increase in
salary for 2024. This increase is in line with the
increase for the Company’s UK employees.
After commencing employment on 1
December 2023, John Heasley’s first salary
review will take place in 2025.
The salaries for the executive directors are
therefore:
– Duncan Wanblad – £1,352,000
role or responsibility
– John Heasley – £810,000
The Committee considers the
impact of any basic salary
increase within the context of
the total remuneration
package.
– An executive director’s
development or performance
in role (e.g. to align a new
appointment’s salary with
the market over time)
– Where there is a significant
change in the size and/or
complexity of the Group.
Annual bonus
To encourage and
reward delivery of the
Group’s strategic
priorities for the
relevant year.
To ensure, through the
deferral of a portion into
shares, that longer term
focus is encouraged
and in line with
shareholder interests.
The annual bonus is awarded
based on a combination of
measures, determined by the
Committee each year to ensure
continued alignment with the
Group’s financial goals,
strategic priorities and business
needs.
50% of the annual bonus
earned will be deferred into
awards/shares under the Bonus
Share Plan (BSP), vesting 17%
after two years and 33% after
three years.
Vesting of BSP shares is subject
to continued employment.
Dividends or dividend
equivalents are paid on Bonus
Shares.
Malus and clawback provisions
apply as described below.
The maximum annual bonus
opportunity is 210% of salary in
respect of a financial year.
The maximum annual bonus opportunity for
each of the executive directors remains at
210% of salary.
The bonus earned at threshold
performance is normally up to
25% of the maximum.
Performance below threshold
results in zero payout.
The Committee has discretion
to adjust the bonus outcome if
it is not deemed to reflect the
underlying performance of the
Group or the experience of key
stakeholders during the
performance period.
Performance measures for the
annual bonus for each year
must meet the following criteria:
– Minimum 50% financial
measures
– Minimum 15% SHE measures
– Maximum 20% personal
measures
– Remainder of the award to
be linked to strategic
measures.
The performance measures for the 2024
award will be as follows:
– EPS (34% weighting) – Half on
performance at actual prices and FX, and
half on performance at fixed prices and FX
– SAFCF (16%) – Sustaining attributable free
cash flow at fixed prices and FX
– SHE measures (20%) – Safety objectives
focused on TRIFR, planned maintenance,
visible felt leadership (VFL) and
environmental footprint improvement
– Strategic measures (10%) and individual
measures (20%).
The Committee may reduce the bonus
outcome in the event of one or more fatalities,
taking into consideration all relevant facts
and circumstances including the number of
fatalities, the cause of such fatalities, any
repeat failures in safety and the number of
high potential incidents.
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Operation
Opportunity/performance measures
Implementation for 2024
Long Term Incentive
Plan (LTIP)
To encourage and
reward the achievement
of long term sustainable
shareholder returns and
the delivery of financial/
strategic priorities.
To align executive
director interests to
shareholder interests.
Conditional awards of shares
or nil-cost options are granted
annually, with a performance
period of normally at least
three years.
Any awards that vest are
subject to a holding period
so that the overall LTIP time
horizon normally is at least
five years.
Vested awards may not
generally be sold during the
holding period, other than to
cover tax liabilities arising on
vesting.
Dividend equivalents accrue
over the vesting period and are
payable in respect of awards
that vest.
Malus and clawback provisions
apply as described below.
The maximum annual LTIP
opportunity is 350% of salary in
respect of a financial year.
The Committee reviews the
executive directors’ LTIP award
sizes annually, prior to grant, to
ensure they are appropriate.
This includes consideration of
the share price at the time of
grant in comparison to prior
years and the Committee may
reduce award sizes where it
judges that there has been a
material decline in the share
price and that a downward
adjustment would be
appropriate in the
circumstances.
For each performance element,
threshold performance would
normally not exceed 25%
vesting of the element, rising on
a broadly straight-line basis to
100% for achieving stretch
targets.
Performance below threshold
results in zero vesting.
Performance measures
attached to each award should
be linked to the Group’s
strategic priorities and may
include, but are not limited to,
TSR, ROCE, SAFCF and other
strategic or ESG objectives.
The Committee has discretion
to adjust the vesting outcome if
it is not deemed to reflect the
underlying performance of the
Group or the experience of key
stakeholders during the
performance period.
In 2024, due to the share price fall of c.40%
and in line with the updated grant reduction
mechanism included in the 2023
remuneration policy to mitigate windfall
gains, unless there is a material change in
share price prior to the grant date, the
Committee has deemed it appropriate to
reduce the value of the LTIP grant in 2024
from 350% to 325% of salary. Further details
can be found on page 181.
The performance measures for the 2024 LTIP
will be as follows:
– TSR vs S&P Global Mining Index (33%
weighting) – 25% vesting for TSR equal to
Index; 100% for Index performance +6%
per annum
– TSR vs FTSE 100 (17%) – 25% vesting for
TSR equal to median performance; 100%
vesting for TSR equal to 80th percentile
performance
– ROCE (15%) – 25% vesting for 12% return;
100% vesting for 20% return
– SAFCF (15%) - Sustaining attributable free
cash flow at actual prices and FX
– GHG emissions reduction (10%) –
Commitment to address climate change
by reducing absolute GHG emissions. 25%
vesting for a reduction of 27.5% against a
FY2023 baseline; 100% vesting for a
reduction of 32.5% against a FY2023
baseline
– Tailings (5%) – Conformance to the Global
Industry Standard on Tailings Management
– Objective 1 facilities. 25% vesting for
85% vs plan and 100% for >=95% vs plan
– Tailings (5%) – Conformance to the Global
Industry Standard on Tailings Management
based on self-assessment and third party
verification initiated – Objective 2 facilities.
25% vesting for 80% compliance; 100%
vesting for >=95% Compliance.
Operation
Opportunity/performance measures
Implementation for 2024
All-employee share
plans
To encourage eligible
employees to build up a
shareholding in the
Company.
Executive directors are eligible
to participate in applicable all-
employee share plans on the
same basis as other eligible
employees in the relevant
country they work in. In the UK,
these currently comprise the
Company’s Save As You Earn
(SAYE) scheme and Share
Incentive Plan (SIP) on identical
terms to other UK employees.
In line with the award limits
applicable to the share plan, on
the same basis that apply to
other eligible employees.
SIP free, partnership and matching schemes
continue to be operated for 2024.
The SAYE scheme also continues to be
operated for 2024.
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Operation
Opportunity/performance measures
Implementation for 2024
Maximum pension contribution
or cash allowance is aligned
with the contribution levels
available for all of the wider UK
workforce (currently 15% of
salary).
The pension contribution for executive
directors for 2024 will be 15% of base salary.
No changes to benefits operated for 2024.
The value of benefits is set at
a level which the Committee
considers to be appropriate,
taking into account the overall
cost to the Company, individual
circumstances, benefits
provided to the wider workforce
and market practice.
Pension
To provide a market
competitive level of
pension provision, taking
account of the provisions
for the wider workforce,
to attract and retain high
performing executive
directors.
Other benefits
To provide market
competitive benefits.
Executive directors participate
in defined contribution pension
arrangements.
Executive directors may request
a pension allowance to be paid
in place of defined contribution
arrangements.
Executive directors appointed
prior to December 2022 had
the choice for contributions
which may not be paid to a UK-
registered pension scheme as a
result of applicable limits (either
annual allowance or lifetime
allowance) to be treated as if
paid to an unregistered
unfunded retirement benefit
scheme (UURBS).
With effect from December
2022, the UURBS was closed to
new members. As a result,
executive directors are no
longer eligible to join this
scheme. Instead any pension
contributions outside of
applicable limits may be paid as
a cash equivalent.
Benefits include (but are not
limited to):
– 28 days’ leave, with
encashment of any
accumulated leave in excess
of 20 days
– Car and/or travel related
benefits
– Medical insurance (family)
– Death and disability
insurance
– Directors’ liability insurance
– Limited personal taxation
and financial advice
– Club membership
– Other ancillary benefits,
including attendance at
relevant public events.
The Committee may introduce
other benefits if it is considered
appropriate to do so.
The Company reimburses all
necessary and reasonable
business expenses and may
pay the tax costs on benefit
provisions.
The Committee reserves the
discretion to award certain
situation-specific benefits (such
as relocation) either on a one-
off or ongoing basis.
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Malus and clawback
Awards under the annual bonus (including both cash
and deferred bonus awards under the BSP) and LTIP are
subject to malus and clawback provisions over the following
time periods:
Malus
Clawback
Annual bonus
To such time as
payment is made
Up to two years
following payment
Deferred bonus To such time as the
LTIP
award vests
To such time as the
award vests
Up to two years
following vesting
Up to two years
following vesting
Clawback may be applied in the circumstances below. Malus
may be applied in the circumstances below, as well as in other
exceptional circumstances, at the Committee’s discretion.
– Material misstatement in results
– Misconduct
– Material failing in risk management
– Error in calculation.
Shareholding guidelines
Executive directors are expected to build up and retain a
holding in shares in the Company with a value of four times
basic salary in respect of the chief executive and three times
basic salary in respect of other executive directors. The
Committee takes into consideration achievement against
these in-post guidelines when making grants under the
Company’s various incentive plans.
Executive directors who step down from the Board will
normally be required to continue to hold the lower of the in-
post requirement or their actual shareholding at the point
of stepping down.
The Committee retains discretion to allow exceptions to
these guidelines in exceptional circumstances. Full disclosure
will be included in the relevant annual report should this
discretion be utilised.
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Non-executive director fee policy
The full remuneration policy for our non-executive directors
(NEDs) is outlined in the 2022 directors’ remuneration report.
The policy does not set limits for individual fees, but provides
that the maximum annual aggregate basic fees for all NEDs
(excluding the chairman) should not exceed £1.25 million.
Chairman and non-executive director fees: implementation
for 2024
For 2024, the chairman’s fee and NED base fees will be
increased by 4%, in line with the increase for executive
directors and the increase for the wider UK workforce.
Following an external market review, for 2024 the senior
independent director’s fee will also be increased by 15% to
ensure the fee level remains competitive with the Group’s
closest industry and FTSE peers. The remaining Board
committee chair and membership fees are unchanged.
Determining the fees paid to NEDs is a matter for the Board,
with the NEDs abstaining; therefore, increases were approved
by the chairman and the executive directors. The chairman’s
increase was approved by the Remuneration Committee, in
consultation with the chief executive. No directors were
involved in any decision as to their own fees.
Role
Chairman fee
NED base fee
2024 Fee (£’000)
836(1)
105.5
2023 Fee (£’000)
804(1)
101.4
Senior independent director
37.4 (additional to base fee)
32.5 (additional to base fee)
Chair of audit, remuneration or sustainability committees
40 (additional to base fee)
40 (additional to base fee)
Audit, remuneration or sustainability committee membership
20 (each committee membership)
20 (each committee membership)
Nomination
Designated NED to chair Global Workforce Advisory Panel
(1) Includes service on any Board committees.
12.5
20
12.5
20 (from May 2023)
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Annual report on directors’ remuneration
Audited Information
Under schedule 8 of the Large and Medium-sized Companies and Groups (accounting and reports) Regulations 2008
(as amended), elements of this section of the report have been audited. The areas of the Accounts and Reports subject
to audit are indicated in the headings.
Executive director remuneration in 2023 (audited)
The table below sets out the remuneration paid to the executive directors for 2023 (and 2022).
Single total figure of remuneration for executive directors
Total basic
salary(1)
£’000
Benefits in
kind
£’000
Annual bonus
– cash and
Bonus
Shares(2)
£’000
LTIP(3)(4)(5)
award
vesting
£’000
Pension(6)
£’000
Other(7)
£’000
Total
£’000
Total
fixed
remuneration
£’000
Total
variable
remuneration
£’000
Executive directors
Duncan Wanblad
Duncan Wanblad (2022)
John Heasley
John Heasley (2022)
Stephen Pearce
Stephen Pearce (2022)
1,300
880
68
—
828
868
210
126
8
—
478
92
1,046
787
—
—
681
791
738
2,387
—
934
3,020
304
209
9
—
159
188
5
5
2,078
—
5
5
3,603
4,393
2,163
—
3,085
4,964
1,814
1,215
85
—
1,465
1,148
1,789
3,179
2,078
—
1,620
3,816
(1) 2023 salaries, benefits in kind and pension for Stephen Pearce and John Heasley are pro-rated for the period in year served as a director. For Stephen Pearce,
this is the period between 1 January 2023 and 1 December 2023. For John Heasley, this is between 1 December 2023 and 31 December 2023. Stephen Pearce
continued to be paid a salary, benefits in kind and pension for the period he remained an employee of the Company (1 December 2023 to 29 February 2024)
(see page 199 for details).
(2) 2023 bonus for Stephen Pearce is pro-rated for the period in year served as a director (1 January 2023 to 1 December 2023). He also received a bonus of £61,901
for the 2023 period he remained an employee of the Company (1 December 2023 to 31 December 2023) assessed on the same basis as his 2023 bonus
received for serving as a director. His aggregate 2023 bonus was therefore £742,817.
(3) The 2021 LTIP vesting level was confirmed by the Remuneration Committee at its meeting on 19 February 2024. As the awards are due to vest after publication of
this report, an average share price between 1 October 2023 and 31 December 2023, of £20.98, was used to calculate the value and will be trued up in the 2024
report. The LTIP values shown include dividend equivalent amounts of £158,339 for Duncan Wanblad and £200,347 for Stephen Pearce. This includes an
equivalent payment for the special dividend paid in September 2021. The values of LTIP awards that vested in 2023 have been restated using the share price at
vesting of £30.09, see page 197 for further details.
(4) The value for Duncan Wanblad represents vesting of shares he received prior to joining the Board.
(5) For the 2021 LTIP vesting in 2024, between grant and valuation of the award for single figure purposes, the share price decreased from £29.28 to £20.98 for
original grant shares and decreased from £31.37 to £20.98 for additional shares granted on the demerger of Thungela resources. For the 2021 LTIP, 0% of the
value disclosed in the single figure is therefore attributable to share price. For the 2020 LTIP vesting in 2023, the share price increased from £18.13 to £30.09 at
vesting, equating to an increase in value of each vesting share of £11.96. The proportion of the value disclosed in the single figure attributable to share price
growth is 39.7%. No discretion has been exercised by the Committee in relation to the 2021 and 2020 LTIP vestings as a result of share price movements over the
vesting periods.
(6) Pension figures includes value of notional return on UURBS balances where applicable and do not include employer NIC values where pension is received as a
cash allowance.
(7) For Duncan Wanblad and Stephen Pearce ‘Other’ comprises the value of free and matching shares awarded under the SIP based on the value of shares at grant.
Awards are not subject to performance in line with the scheme terms as applicable for all employees. For John Heasley, ‘Other’ comprises the value of the shares
awarded under the Non-cyclical award plan to compensate the shares forfeited as a result of joining Anglo American, see page 198 for further details.
Basic salaries for 2023
The basic salaries for 2023 were as follows (in £’000s):
Duncan Wanblad
£1,300
Stephen Pearce
£828
Paid in 2023
(2022: £1,250 – full year equivalent salary)
Paid in 2023
(£903 – full year equivalent salary)
(2022: £868)
John Heasley
£68
Paid in 2023
(£810 – full year equivalent salary)
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Benefits in kind (audited)
Benefits for executive directors with a value over £5,000
are set out below. During the year, executive directors
may receive benefits including car-related benefits,
accommodation, tax advice, club membership, death and
disability insurance, directors’ liability insurance, medical
insurance and other ancillary benefits.
2023 Benefits
Car related Benefits (£’000)
Tax advice (£’000)
Accommodation(1) (£’000)
Relocation (£’000)
Duncan
Wanblad
Stephen
Pearce
161
13
28
31
8
53
377
(1) Benefit relating to provision of accommodation for attending business events.
As part of Stephen Pearce’s joining arrangements, the cost
of his relocation from Australia to the UK was covered by
the Group, and the resulting income tax paid on his behalf.
Full disclosure is set out in the 2017 Annual Report.
Stephen’s intention had always been to return to Australia
following retirement. Therefore, as part of Stephen’s retirement
arrangements, £200,000 of the cost of his relocation back to
Australia was supported by the Group, and the resulting
income tax paid.
The provision of such relocation support is consistent with that
taken for employees who undertake international assignments
or who are required to relocate on a local contract in order to
fulfil their role and would be considered for repatriation on a
case-by-case basis.
The Committee considered and is satisfied that the level of
aggregate benefit provision, taking into account the situation
and circumstances, in particular in relation to the provision of
relocation support, was appropriate.
John Heasley’s benefits for 2023 included accommodation,
car-related benefits, professional membership and medical
insurance. The value of the benefits did not exceed £5,000
individually.
Annual bonus outcomes for 2023 (audited)
50% of the total 2023 annual bonus is payable in cash, with
50% deferred into shares. One-third of the deferred shares
will vest after two years; the remaining two-thirds will vest after
three years. The bonus deferred as shares is not subject to
further performance but is subject to continued employment.
50% of each executive director’s bonus outcome was
assessed against financial targets. 20% was assessed against
strategic measures and a further 20% was assessed on
Safety, Health and Environment (SHE) measures, with the
remaining 10% being assessed against the achievement of
individual objectives.
Strategic and SHE objectives are shared by the executive
directors, with individual objectives being tailored for their
specific roles. The key individual performance measures are
assessed against the overall operational and financial
performance of the business.
In 2023, tragically, three colleagues lost their lives following
two accidents at our managed operations: one at our Kumba
Iron Ore business in South Africa, and two in Chile. With these
deeply saddening events occurring, it is a stark reminder that
keeping our people safe must be at the forefront of everything
we do in order to reduce the number of fatalities to zero.
As a result of the three fatalities that have occurred during the
year, the Committee judged that there will be a 15% reduction
to 2023 executive director bonus outcomes. This reduction
was determined following consideration by the Committee,
taking into account full details of the incidents.
Discretion
Incentives are designed to ensure they drive appropriate short
and long term behaviours, and it is the Committee’s general
preference to avoid making any adjustments. Aside from the
utilisation of discretion to apply the safety deductor, the
Committee did not make any discretionary adjustments to the
2023 bonus outcomes.
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Summary of 2023 annual bonus outcome
Duncan Wanblad
Stephen Pearce
Financial
metrics (50%)
SHE metrics
(20%)
Strategic
metrics (20%)
Personal
metrics (10%)
5.5%
5.5%
18.1%
18.1%
14.5%
14.5%
7.0%
8.0%
Total payout
pre-safety
deductor (%)
45.1%
46.1%
Payout after
15% safety
deductor
(%)(1)
38.3%
39.2%
Annual bonus
value
(£’)(2)
£1,046,168
£680,916
(1) Safety deductor applied on a multiplicative basis against overall annual bonus outcomes.
(2) Bonus for Stephen Pearce pro-rated bonus for period served as a director from 1 January 2023 up to 1 December 2023. His total bonus for the year includes an
additional amount of £61,901 for the period between him stepping down as a director and the remainder of 2023.
Annual bonus performance assessment for 2023 (audited)
The financial element of the 2023 annual bonus is measured
against underlying EPS and sustaining attributable free cash
flow (SAFCF) measures.
The EPS elements of the award accounted for 34% of the total
annual bonus, split equally between EPS measured at fixed
prices and FX rates and EPS measured at actual prices and FX
rates. The fixed price and FX rate EPS portion is designed to
reflect Group operational performance, excluding the impact
of variations in price and currency. Both target ranges are
illustrated in the financial performance table, with 25% vesting
for performance at threshold. SAFCF, measured at fixed prices
and FX rates, accounted for 16% of the total annual bonus.
With the underlying financial performance, underpinned by the
challenging economic environment and ongoing geo-political
turbulence, the financial measures within the annual bonus
paid out at 11%. This was due to marginal vesting for the EPS
at actual target, which was supported by prices for some of our
commodities and favourable exchange rates in-year.
The shared strategic objectives accounted for 20% of the total
award. These objectives reflect the Group’s strategic priorities
for the year, incorporating a combination of quantitative and
qualitative metrics. Following the end of the year, the
Committee made a detailed assessment of performance,
leading to the evaluations shown in the tables below.
For 2023 the executive directors have 10% of the annual
bonus weighted to individual performance measures,
focusing on the critical deliverables for each executive
director. The following tables detail the achievement against
these objectives.
Financial performance
Metric
EPS at actual prices and FX rates
EPS at fixed prices and FX rates
SAFCF at fixed prices and FX rates
Total
Threshold (25%)
Maximum
(100%)
Achievement
Weighting
Outcome
$2.31/share
$3.47/share
$2.42/share
$2.60/share
$3.18/share
$1.93/share
$2.7bn
$4.0bn
$281m
17.0%
17.0%
16.0%
50.0%
5.5%
—%
—%
5.5%
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SHE performance
Metric
Metric type
Achievement
Total recordable injury frequency rate
(TRIFR) – improvement of 15% on
prior three-year Group average
Safety
Planned work – % of maintenance
work planned and scheduled
Operations
Total Recordable Injuries were significantly down on 2023,
supporting a full-year TRIFR of 1.78, a 19% improvement year on
year and the lowest in the Company's history. Strong lead-
indicator performance underpins the result and is testament to
commitment and drive at operational level.
Threshold has been met, with performance against this measure
showing continuous improvement throughout 2023, driving
improved reliability and safety at our operations.
Weighting Outcome
5%
5%
Leadership Time in Field – one high
quality visible felt leadership (VFL)
per week between 1 March – 30 June
then three high quality VFLs per week
between 1 July – 31 December by all
band 4-6 employees based at
managerial operations
Ecological Health – improvement in
footprint intensity – expressed as the
sum of metrics for Land, Air, Nature
and Water
Total
Shared strategic performance
Operations With the introduction of this measure for 2023, we have seen a
sustained focus at all Businesses resulting in an improved safety
performance, as demonstrated by TRIFR outcome. This measure
has been delivered in full.
5%
3.1%
Environment
Targets have been met across the four target areas, delivering full
vesting for this measure.
10%
10%
20%
18.1%
Metric
Metric type
Achievement
Weighting Outcome
Delivery of decarbonisation
Innovation
– The grid connection and the trading licence have been
obtained, with financial close expected during Q1 2024. Delays
in financial close due to Eskom connection process, national
reform and delays in obtaining the trading licence
– Hydrogen supply workstream is under way with First Mode,
supporting various alternative deployment models.
For SA renewables, deliver 2023
milestones, to enable Phase 1
production of 425MW in 2025:
– Power purchase agreements
agreements, and electricity offtake
agreements signed
– Bank mandate in place and
financial close
– For hydrogen infrastructure, work
with FirstMode to develop a
roadmap to secure necessary
infrastructure for on-site hydrogen
production, to support truck
operations.
Key strategic choices
Portfolio
Significantly progressed subject to further market analysis.
Update assessment of portfolio
opportunities.
Effectiveness review
People
Define and implement a more
effective organisational model
focused on strategy execution.
Inclusion & Diversity; Talent Delivery
Detailed succession and/or retention
plans for critical senior management
roles in place as part of restructuring
process.
Following the restructure, detailed
roadmap to deliver gender diversity
targets by 2025.
Total
Organisational changes were implemented by 31 December
as planned. This resulted in prioritisation of work, clear
accountabilities, significant corporate headcount reduction,
and sustainable annual corporate cost savings.
People
Majority of in-scope senior roles had viable succession plans in
place. Female representation in the CE’s employee-once-
removed (EoR) population was 29% at year end, versus a target
of 33%, largely due to a decrease in the overall number of CE EoR
positions as a consequence of organisational design work, with
2025 roadmap under way.
5%
2.5%
5%
3%
5%
5%
5%
4%
20%
14.5%
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Personal performance
Duncan Wanblad
Financial
SHE
Strategic
Personal
Total
Safety deductor
Overall result
Percentage weighting
50%
20%
20%
10%
100%
A percentage reduction from overall bonus outcome on a multiplicative basis
—
Details of personal objectives
Achievement
Deliver Operational Excellence (5%)
– Improve operational stability by
achieving minimum AOM of 80%
compliance across priority sites.
– Achieve reduction in variability for priority
sites over 3-year rolling period.
Deliver Growth – Collahuasi (5%)
– Submit permit applications, to allow for
debottlenecking and other activities to
reach the approved 210ktpd capacity.
– Finalise scope, select service provider,
and commence pre-feasibility study for
4th line.
Overall individual performance
Stephen Pearce
Financial
SHE
Strategic
Personal
Total
Safety deductor
Overall result
(1) Compliance score for priority assets at 76% versus target of 80%.
(2) The overall variability of saleable production for priority assets reduced by 2.2%
during 2023, as compared to baseline.
(1) Permit applications prepared and submitted.
(2) Approval of scope and funds for pre-feasibility integrated growth studies (4th
line and CPF 240) provided by all shareholders in October 2023. Bidding processes
for most engineering studies are complete, with the project director appointed to
start in February 2024.
10% total weighting
7%
Percentage weighting
50%
20%
20%
10%
100%
A percentage reduction from overall bonus outcome on a multiplicative basis
—
Details of personal objectives
Achievement
Finance Value Delivery (4%)
– Complete Project Aegis (Capital
Project Aegis completed key elements of the target operating model deployed.
Value delivered exceeded plan.
Structure Review and Optimisation) and
transition to embed in to BAU.
– Implement key elements of the target
operation model arising from the review
of the Group’s Global Cash
Management footprint.
Functional Excellence (4%)
– Complete Release 3 Beyond Finance
Deployment by end of 2023.
– Successful Group UKCR attestation dry
run with rectification plans and
preparation for Dec 2023.
Beyond Finance Release 3 rolled out in October, successful UK Corporate Reform
(UKCR), dry run completed on 2022 results in 2023, and again for H1 results 2023,
with full planning in place for 2024 process.
People (2%)
– Improve psychological Safety score for
Group Finance.
– At least 90% of Group Finance
Improvement in psychological safety; numerous team workshops, feedback
sessions and team leader training conducted throughout the year. In relation to
inclusion & diversity, achieved 58% female and 42% male (previously 50% female
at senior levels) after organisational redesign.
permanent appointments meet the
inclusion & diversity functional target of
gender parity at each stage of the
recruitment process.
Overall individual performance
10% total weighting
8%
2023
outcome
5.5%
18.1%
14.5%
7.0%
45.1%
15.0%
38.3%
Outcome
2%
5%
2023
outcome
5.5%
18.1%
14.5%
8.0%
46.1%
15.0%
39.2%
Outcome
3%
3%
2%
196
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
2021 LTIP award vesting (audited)
In 2021, Duncan Wanblad and Stephen Pearce received LTIP
grants of 68,257 and 86,366 conditional shares respectively;
in addition to this, they received 291 and 368 additional
conditional shares respectively as a result of the demerger
of our South African thermal coal operations into Thungela
Resources Ltd in June 2021. Duncan Wanblad’s shares under
the 2021 LTIP from both the original grant and the additional
shares from the Thungela Resources demerger were awarded
prior to becoming an executive director; vesting of his shares is
on the same basis as for the other executive directors. More
details on the Thungela Resources additional shares can be
found in the 2021 remuneration report.
Vesting of 2021 LTIP conditional share awards was subject to:
– The Group’s TSR performance relative to:
– Euromoney Global Mining Index (from 1 January 2021
to 31 July 2023) and S&P Global Mining Index (from
1 August 2023 to 31 December 2023)(1)
– FTSE 100 constituents over the three-year period to
31 December 2023
– Group attributable ROCE in year to 31 December 2023
– Group cumulative sustaining attributable FCF at actual price
and FX rates over the three-year period to 31 December
2023
– Improvement in greenhouse gas (GHG) intensity
– Number of off-site jobs supported for each on-site job
ROCE performance for 2023 was within the target range at
16%, resulting in 63.5% vesting of this portion of the award.
The cumulative cash flow measure vested at 68% largely
due to contribution from strong commodity prices and
market fundamentals during the first two years of the
performance period.
GHG efficiency improved by 25%, indexed on 2020 actual.
Stretch goal achievement has been largely driven by
renewable energy electricity sourcing and methane
reduction projects.
The 6% of the LTIP for social responsibility and the number of
jobs supported off site for each job onsite also vested at 100%.
By the end of 2023, we had supported 139,308 jobs through
socio-economic development programmes since the launch
of our Sustainable Mining Plan in 2018. In 2023, we supported
2.4 jobs off site for every job on site job (2022: 1.8).
The 6% of the LTIP for the tailings dam measure required
100% implementation of the updated Anglo American tailings
standard that incorporates all GISTM requirements across the
Group (Managed Operations) for tailings facilities that has a
Potential Loss of Life (PLL) rating of at least one person or
more by 5 August 2023 – no allowance was included for any
achievement below 100%. The standard set was a
deliberately high bar and considerable progress has been
made towards meeting it in full, despite the scarcity of
independent experts available to verify progress. Overall,
risks are being managed effectively. Given that the 100%
requirement was not met, the result is 0% vesting.
– Implementation of the Anglo American standard that
The LTIP awards will therefore vest at 40.3% of maximum.
incorporates GISTM requirements.
TSR performance over the three-year period has been
mixed, with a particularly challenging environment in 2023.
Shareholders have seen a TSR of 19%, positioned above
the FTSE 100 median TSR of 14.1% and below the S&P
Euromoney Global Mining Index TSR of 32.3%.
Performance assessment for 2021 LTIP awards
Discretion
No discretionary adjustments were made to the LTIP targets
or outcome.
Measure
S&P Global Mining Index TSR(1)(2)
FTSE 100 constituents TSR(3)
Group attributable ROCE
Group sustaining attributable free cash
flow (cumulative)
Improvement in greenhouse gas (GHG)
intensity(4)
Number of off-site jobs supported for
each on-site job
Implementation of updated AA standard
(2020) that incorporates GISTM
requirements
17%
15%
15%
8%
6%
6%
Weighting
Threshold performance
(25% vesting)
Stretch performance
(100% vesting)
Actual
performance
33%
Index performance (32.3%)
Median TSR performance
(14.1%)
Index +6% p.a.
(55.2%)
80th percentile TSR
performance (58%)
Vesting
outcome
—%
19%
19%
38.6%
12%
$9.7 bn
20%
16%
$14.6 bn
$12.5 bn
5% improvement
15% improvement
1.5 jobs
2 jobs
100% vesting for implementation of the updated AA
standard all Group-managed operations for tailings
facilities that have a Potential Loss of Life rating of at least
one person or more by 5 August 2023. 0% vesting if not met
Above
target
Above
target
Target not
met
63.5%
68%
100%
100%
0%
(1) The Euromoney (EMIX) Global Mining Index ceased on 31 July 2023. In July 2023, the Remuneration Committee approved the replacement of the EMIX Global Mining Index with the S&P
Global Mining Index from the date of cessation to the end of the performance period.
(2) 25% of the award will vest if Anglo’s TSR performance is equal to the Index (threshold). 100% of the award will vest if Anglo’s TSR performance is equal to or above the Index + 6% p.a. (stretch).
Between threshold and stretch, vesting will be applied on a straight-line basis by reference to Anglo’s TSR performance relative to the Index and Index + 6% p.a.
(3) 25% of the award will vest if, based on its TSR performance, Anglo is ranked at the median of the comparator group (threshold). 100% of the award will vest if, based on its TSR performance,
Anglo is ranked at or above the upper quintile of the comparator group (stretch). Between threshold and stretch, vesting will be applied on a straight-line basis by reference to Anglo’s ranking
relative to the median and upper quintile ranking of the comparator group. With 93 constituents the median rank is 47, and upper quintile rank is 19.4; Anglo is ranked 42.
(4) Measures the ratio of total GHG emissions (tonnes CO2e) to product mass (tonne Cu equivalent).
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
197
Total outcome of the 2021 LTIP
Duncan Wanblad (award granted prior to appointment to the Board)
Stephen Pearce (maximum opportunity 300% of salary)
Numbers
shares
granted(1)
68,548
86,734
Numbers
shares
vesting at
40.3%
Dividend
equivalents
on vested
value
27,645
£158,339
Value based
on vesting at
40.3%(2) Total value (2)
£738,448
£580,109
34,979
£200,347
£734,014
£934,360
(1) Number of shares includes additional Anglo American shares resulting from adjustment following the demerger of Thungela Resources Ltd. Dividend equivalents
for additional adjusted shares accrue from the date of demerger.
(2) As the awards are due to vest after publication of this report, an average share price between 1 October 2023 and 31 December 2023, of £20.98, was used to
calculate the value and will be trued up in the 2024 report. The share price decreased from £29.28 to £20.98 for original grant shares and decreased from £31.37
to £20.98 for additional shares granted on the demerger of Thungela resources. Therefore, 0% of the value is attributable to share price growth. No discretion has
been exercised by the Committee in relation to the 2021 vesting as a result of share price movements over the vesting period.
Restatement of value of 2020 LTIP
Duncan Wanblad
Stephen Pearce
Number of
shares vesting
67,455
85,351
Dividend
equivalents
value
2022
estimated
value(1)
(ex dividends)
2022
estimated total
value
Actual value
of award at
vesting(2)
Restated 2020
LTIP value
356,629
2,033,286
2,839,914
2,029,990
2,386,620
451,244
2,572,722
3,023,966
2,568,552
3,019,798
(1) 2022 estimated value uses three-month average share price up to 31 December 2022 of £30.14 as stated in the 2022 Annual Report.
(2) The share price on vesting was £30.09.
Pension (audited)
The pension contribution amounts in the table below should be
read in conjunction with the following information:
– The total amounts of pension contributions treated as having
been paid into the UURBS for the executive directors are:
– Duncan Wanblad – £191,004
– Stephen Pearce – £124,168 (up to 1 December 2023)
– Contributions treated as being paid into the UURBS earn a
fixed return of 5.125%. The total return earned in 2023 was
£109,304 for Duncan Wanblad and £34,914 for Stephen
Pearce. The interest levels outlined only relate to the period
that they served as an executive director during the year
External directorships
Executive directors are not permitted to hold external
directorships or offices without the prior approval of the Board.
If approved, they may each retain the fees payable from only
one such appointment.
In the year, Stephen Pearce retained fees for one external non-
executive directorship, at BAE Systems plc, amounting to
£109,766 for the period 1 January 2023 to 1 December 2023.
John Heasley holds a voluntary role as non-executive director
and honorary treasurer of the Royal Scottish National
Orchestra (RSNO), a charitable organisation for which he does
not receive fees.
– As at 31 December 2023, the total balance due to executive
directors in relation to the UURBS was £3,186,490(1).
Retirement benefits can only be drawn from the UURBS if a
member has attained age 55 and has left Group service
– As detailed in the 2023 remuneration policy, the UURBS was
closed to new members and future executive directors are
not eligible to join the scheme. As such, John Heasley is not a
participant of the UURBS.
(1) Includes Stephen’s Pearce’s UURBS balance as at 1 December 2023.
Total pension for 2023
DC contribution (£’000)
UURBS contribution (£’000)
UURBS Notional Increase (£’000)
Pension allowance (£’000)
Total (£’000)(1)
Duncan
Wanblad
John
Heasley
Stephen
Pearce(2)
£4
£191
£109
—
£304
—
—
—
£9
£9
—
£124
£35
—
£159
(1) Stephen Pearce and John Heasley’s total pension are pro-rated for the period
served as a director in 2023.
(2) Stephen Pearce continued to receive pension contributions for the period
1 December 2023 to 29 February 2024. Further details can be found on page
199.
Payments for past directors (audited)
In addition to retirement benefits, the Company provides six
former executive directors with private medical insurance
arrangements. The total annual cost to the Company is
£58,194.
In addition to the five former directors disclosed in the 2022
directors’ remuneration report, the 2023 recipients include
one additional former director. In line with the others, this
arrangement is a longstanding commitment that has not
been fulfilled to date due to the overseas home location of
the former director following their exit date and the rules of the
UK private medical insurance arrangements. As the individual
has relocated back to the UK, the Company has agreed to
meet the pre-existing agreement that had been committed
to previously.
The Committee continues to meet these longstanding
commitments, but no new commitments have been made
during the year or will be made in future.
198
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
Remuneration arrangements for the appointment of
John Heasley
Restricted Shares forfeited. Vested awards will be subject to
a two-year holding period.
John Heasley was appointed as finance director and
joined the Board on 1 December 2023. The Committee took
the opportunity to re-balance John Heasley’s remuneration
package on appointment, with a lower base salary and
higher LTIP compared to his predecessor. The terms of the
remuneration comprise a base salary of £810,000, a pension
contribution of 15% of base salary (aligned with the wider UK
workforce), a maximum bonus opportunity of 210% and an
annual maximum LTIP award of 350%. In addition, his
remuneration package also includes compensation for
incentives forfeited from his previous employer. The value,
vesting dates, performance requirements, holding periods
and other applicable terms and conditions of these awards
reflect those of the original awards, as required by the
remuneration policy:
Cash bonus
John Heasley will receive, following the publication of his
previous employer’s 2023 annual report and accounts, a cash
payment in respect of the cash portion (70% of the total) of his
forfeited annual bonus for 2023. The amount will be calculated
by reference to his previous employer’s disclosed performance
against the relevant objectives, as well as the original
opportunity level.
Share awards
The Committee agreed to buy-out share awards forfeited
by John Heasley as a result of him joining Anglo American.
These being:
– Unvested Restricted shares granted between 2019 and
2023, which collectively would have vested on a phased
basis in April 2024, April 2025 and April 2026
– Deferred Bonus Shares which would have been granted in
April 2024 in respect of the 2023 annual bonus (30% of the
total amount earned) and would have vested in April 2027.
On 1 December 2023, John Heasley was granted an
award over 95,287 Anglo American shares (with a grant
value of £2,078,400) to compensate for the unvested
Restricted Shares forfeited. The award will vest on a ‘like-for-
like’ basis to mirror the opportunity and terms of the Restricted
Shares forfeited.
The number of Anglo American shares awarded was
calculated by reference to the average closing share price of
Anglo American and the previous employer for the five dealing
days prior to John Heasley commencing employment with
Anglo American on 1 December 2023.
The award will vest in three tranches, aligned to the original
vesting dates of the Restricted Shares forfeited, as follows:
– 26,774 of the shares will vest on 1 April 2024
– 41,196 of the shares will vest on 1 April 2025
– 27,317 of the shares will vest on 1 April 2026.
Vesting of each tranche is subject to continued
employment during the vesting period and the number
of shares that vest will be aligned with the vesting levels
as publicly disclosed by his previous employer following
assessment of the performance underpins attached to the
As soon as reasonably practicable following the publication
of his previous employer’s 2023 annual report and accounts,
John Heasley will be granted an award over Anglo American
shares to compensate for the Deferred Bonus Shares that
would have been granted in April 2024. The number of
Anglo American shares to be awarded will be calculated
by reference to the average closing shares price of
Anglo American and his previous employer the five dealing
days prior to grant. The award will vest after three years from
grant, which aligns with the vesting date that would have
applied to the Deferred Bonus Shares.
Payments for loss of office (audited)
Tony O’Neill
Tony O’Neill retired and stepped down from the Board on
31 December 2022. He remained an employee of the
Company until 30 June 2023, continuing to provide
services to the Group to support an orderly transition of his
responsibilities. His remuneration for the proportion of 2023
when he was not a director was as follows:
– For the period between 1 January 2023 and 30 June 2023,
Tony O’Neill continued to be paid his salary, pension and
benefits. The value of these during this period was £535,814
– Tony O’Neill did not receive a bonus or LTIP award for 2023
– Tony O’Neill also received a payment of £193,944 for
unused holiday days as at his date of cessation of
employment.
Treatment of outstanding share awards
Good leaver treatment was applied in respect of Tony O’Neill’s
outstanding share awards. Subject to the terms of the awards,
BSP and LTIP awards will vest at their original vesting dates
and any LTIP awards will be subject to a two-year holding
period.
Tony O’Neill’s outstanding shares as at 31 December 2023
are:
Award
2019 BSP 5-year
2020 BSP 5-year
2021 BSP 3-year
2022 BSP 2-year
2022 BSP 3-year
2021 LTIP
2022 LTIP
Number of shares
12,084
12,606
12,408
6,012
11,672
74,956
34,626
Vesting date
March 2024
March 2025
March 2024
March 2024
March 2025
March 2024
March 2025
The LTIP shares are pro-rated from the start of the
performance period of each award to Tony O’Neill’s date
of cessation of employment of 30 June 2023 and vesting
remains subject to performance. These numbers include
additional Anglo American shares awarded as a result of
the demerger of Thungela Resources in 2021.
Tony O’Neill is expected to maintain a holding of
Anglo American shares of three times his salary, for a period
of two years following him stepping down from the Board.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
199
Stephen Pearce
Stephen Pearce stepped down from the Board on 1 December
2023. He remained an employee of the Company to facilitate
a smooth transition for the finance director until 29 February
2024. His remuneration for the proportion of 2023 where he
was not a director was as follows:
These numbers include additional Anglo American shares
awarded as a result of the demerger of Thungela Resources
in 2021.
Stephen is expected to maintain a holding of Anglo American
shares of three times his salary, for a period of two years
following him stepping down from the Board.
– For the period between 1 December 2023 and 29 February
2024, Stephen Pearce continued to be paid his salary,
pension and benefits. The value of these during this period
was £269,349
– Stephen Pearce received a bonus for 2023, £680,916
related to the period in year served as a director (1 January
2023 to 1 December 2023) and £61,901 for the period he
remained an employee of the Company (1 December 2023
to 31 December 2023) assessed on the same basis, with
50% of the bonus for 2023 paid in cash and 50% to be
deferred as shares. Please see page 193 for further details
– He is also eligible to receive a 2024 bonus for the period
1 January 2024 – 29 February 2024, which will be paid fully
in cash at the normal time following the sign-off of the 2024
Annual Report
– On cessation of employment (for the period between
1 March 2024 and 31 May 2024), Stephen Pearce will
receive payments in lieu of notice, paid in monthly
instalments, as per his service agreement
– Stephen Pearce will also receive a payment for unused
holiday days at his date of cessation of employment.
Further details in relation to any outstanding payments will be
disclosed in the 2024 remuneration report.
Treatment of outstanding share awards
Good leaver treatment was applied in respect of outstanding
share awards. Subject to the terms of the awards, the BSP
and LTIP awards will vest at their original vesting dates and
any LTIP awards which vest will be subject to a two-year
holding period.
LTIP awards will be pro-rated for service up to 29 February
2024 and vesting remains subject to performance. No LTIP
was granted for 2024. Stephen Pearce’s outstanding shares
as at 31 December 2023 are:
Award
2019 BSP 5-year
2020 BSP 5-year
2021 BSP 3-year
2022 BSP 2-year
2022 BSP 3-year
2023 BSP 2-year
2023 BSP 3-year
2021 LTIP
2022 LTIP
2023 LTIP
Number of shares
11,820
12,155
11,964
5,798
11,255
4,563
8,858
86,734
66,779
91,882
Vesting date
March 2024
March 2025
March 2024
March 2024
March 2025
March 2025
March 2026
March 2024
March 2025
March 2026
200
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
Other director remuneration in 2023 (audited)
Non-executive director remuneration
The table below sets out the remuneration paid to the NEDs in
2023. Fees shown include any additional fees paid in respect
of chairing or being a member of one of the Board’s
committees or acting as the senior independent director.
As outlined in the 2021 remuneration report, fees for the
chairman and NEDs have been reviewed annually from
2023 onwards.
Role
Chairman fee
NED base fee
Fee (£’000)
804(1)
101.4
Senior independent director
32.5 (additional to base fee)
Chair of Audit, Remuneration or
Sustainability committees
Audit, Remuneration or Sustainability
committee membership
Nomination committee membership
Designated NED to chair Global
Workforce Advisory Panel
40 (additional to base fee)
20 (each committee
membership)
12.5
20(2)
(1) Includes service on any Board committees.
(2) From 1 May 2023, following approval of the 2023 remuneration policy at
the AGM.
Single-total figure of remuneration for non-executive directors
Non-executive directors
Stuart Chambers
Magali Anderson(1)
Ian Ashby
Marcelo Bastos
Hilary Maxson
Hixonia Nyasulu
Nonkululeko Nyembezi
Ian Tyler
Total Fees
2023
£'000
Benefits in
Kind 2023
£'000(2)
Total
2023
£'000(3)
Total Fees
2022
£'000
Benefits in
Kind 2022
£'000(2)
Total
2022
£'000(3)
804
91
174
147
154
134
141
206
5
809
91
174
147
154
134
141
206
773
—
170
130
132
130
137
183
8
—
781
—
170
130
132
130
137
183
(1) Magali Anderson joined the Board on 1 April 2023; her fees are a part-year figure.
(2) Stuart Chambers’ benefits in kind figure relates to the reimbursement of travel expenses during the year and the settlement of tax in relation to the reimbursement.
(3) Total is comprised only of fixed remuneration.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
201
Scheme interests granted during 2023 (audited)
The table below summarises the BSP, NCA and LTIP share
awards granted to executive directors during 2023.
The LTIP is granted in the form of conditional shares and
vesting is dependent on the Group’s performance over 2023–
2025 based on the performance metrics detailed.
The BSP award granted in 2023 was granted in the form of
forfeitable shares and is included in the applicable total annual
bonus values as set out in the applicable single figure table.
The non-cyclical award is granted in the form of conditional
shares.
Summary of conditional share awards and options granted in 2023
Type of
award
Bonus
Share Plan
LTIP share
awards
Performance
measure
—
Vesting schedule
Performance
period end
Director
Basis of award
—
— Duncan Wanblad
50% of bonus
Stephen Pearce
50% of bonus
Number of
shares
awarded
16,415
13,421
Face value
at grant(1)(2)
£483,980
£395,705
31/12/2025 Duncan Wanblad
350% of salary
154,320 £4,549,971
Stephen Pearce
300% of salary
91,882 £2,709,049
TSR vs.
S&P
Global Mining
Index (33%)
TSR vs.
FTSE 100
constituents
(17%)
Balanced
Scorecard
50%
25% for TSR
equal to the Index;
100% for the Index
+6% p.a. or above
25% for TSR
equal to median;
100% for 80th percentile
or above
ROCE (15%)
25% for 12%;
100% for 20%
SAFCF at actual prices and FX
rates (15%)
Renewable Energy (8%)
25% for 350MW production
100% for 500MW production
Ethical Value Chains (6%)
25% for all mines assured
against recognised
responsible mining standard
by end of 2025
100% for threshold target plus
80% of top 10 managed
metals mining operations to
achieve IRMA 50 or equivalent
Social responsibility (6%)
25% for 2 jobs supported
off-site for each job on-site
100% for 3 off-site jobs
supported for each job on-site
Non-
cyclical
awards
—
—
—
John Heasley
Replacement
award
Replacement
award
Replacement
award
26,774
£583,995
41,196
£898,567
27,317
£595,838
(1) The face values of the BSP and LTIP awards have been calculated using a grant share price of £29.48. This share price has been calculated based on the average
closing share prices between 27 February 2023 and 3 March 2023. As receipt of the LTIP awards is conditional on performance, the actual value of these awards
may be nil. Vesting outcomes will be disclosed in the remuneration report for 2025.
(2) The face values of the non-cyclical awards for John Heasley have been calculated using a grant share price of £21.81. This share price has been calculated based
on the average closing share prices between 24 November and 30 November 2023. The awards were granted to compensate the incentives forfeited as a result
of joining Anglo American as detailed on page 198. The number of shares that vest will be aligned with the vesting levels as publicly disclosed by his previous
employer following assessment of the performance underpins attached to the Restricted Shares forfeited.
202
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
Differences from 31 December 2023 to 21 February 2024
Duncan Wanblad’s interests increased by 28 shares during
the period between 31 December 2023 to 21 February 2024,
as a result of the acquisition of shares under the SIP. His
total holdings therefore increased to 823,164. There have
been no other changes in the interests of the directors in
shares between 31 December 2023 and 21 February 2024.
Total interests in shares (audited)
The table below summarises the total interests of the
directors (including any share interests held by connected
persons) in shares of Anglo American plc as at 31 December
2023. These include beneficial and conditional interests.
Executive director shareholding requirements
As per the 2023 remuneration policy, within five years of
being appointed, the chief executive is expected to hold
interests in shares to a value of four times basic salary, and
other executive directors are expected to hold shares to a
value of three times salary. For the purposes of calculating
progress against the shareholding requirement, the following
shares are included:
– Beneficially owned shares
– Vested incentive shares in a holding period
– In-flight BSP shares on a net of tax basis
– In-flight NCA shares which are not subject to performance
measures on a net of tax basis
– SIP shares.
LTIP share awards with performance conditions are not
included.
At the date of preparation of this report, Duncan Wanblad has
met his shareholding requirements and has net shareholdings
(including Bonus Shares) equal to 776% of basic salary. John
Heasley has net shareholdings equal to 131% of basic salary
and is expected to meet his shareholding requirement of three
times salary by 1 December 2028. These holdings are
calculated using the average share price between 1 October
and 31 December 2023 of £20.98.
During 2023, Stephen Pearce stepped down from the Board.
He is required to retain holdings in Anglo American to satisfy
the post-cessation shareholding requirement. The post-
cessation shareholding requirement states that executive
directors must for two years from the date they step down from
the Board retain shares equal to the lower of their in-post
shareholding requirement or their actual holdings as at the
date of cessation. Stephen had built substantial holdings of
Anglo American shares and as such his shareholding
requirement will be his in-post requirement 300% of his final
salary. At the year end, Stephen Pearce retained holdings well
above the required level.
Stephen Pearce must retain shares up until 1 December 2025.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
203
Shares in Anglo American plc at 31 December 2023
Directors
Duncan Wanblad
John Heasley
Stuart Chambers
Magali Anderson
Ian Ashby(1)
Marcelo Bastos
Hilary Maxson
Hixonia Nyasulu
Nonkululeko Nyembezi
Ian Tyler
Former directors
Stephen Pearce(2)
Conditional
(no performance conditions)
Conditional
(with performance conditions)
Beneficial
360,528
—
19,478
641
2,671
1,803
500
2,564
4,029
701
Within a
holding
period
81,199
BSP Bonus
Shares
61,166
SIP
6,397
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
SAYE
(options over
shares)
—
—
—
—
—
—
—
—
—
—
LTIP
313,846
—
—
—
—
—
—
—
—
—
378,288
102,741
63,147
2,205
807
245,395
NCA
—
95,287
—
—
—
—
—
—
—
—
—
Total
823,136
95,287
19,478
641
2,671
1,803
500
2,564
4,029
701
792,583
(1) Included in the beneficial interests of Ian Ashby are shares held via unsponsored ADRs.
(2) Stephen Pearce stepped down from the board on 1 December 2023. His interests are shown as at this date.
204
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Integrated Annual Report 2023
Governance
Directors’ remuneration report
Fairness
Introduction
In 2020, we introduced this dedicated fairness section to
the remuneration report, incorporating disclosures that
demonstrate the Committee’s belief that our remuneration
structures are fair and appropriate.
Workforce engagement on remuneration
The Committee takes into account a wide range of internal
and external considerations when making decisions on
executive remuneration, including engaging with relevant
stakeholders.
Anglo American’s Global Workforce Advisory Panel (the Panel)
met on three occasions during the year. The Panel’s purpose is
to give the workforce more of a ‘voice’ in the Boardroom so
their views can be better understood and considered when
decisions are being made about the future of the business,
including how the committee takes aboard the views of the
wider workforce in making decisions on executive
remuneration. The Panel operates alongside Anglo American’s
existing employee engagement mechanisms, such as regular
employee engagement surveys and director interaction with
employees.
▶ For more information on our People and workforce culture
See pages 66–75
▶ For more information on the operation of the Panel and the ways
in which we currently engage with our workforce culture
See pages 161–162
MyShare
In 2022, we launched MyShare – a global all employee
share scheme.
MyShare is a global employee share plan designed to
facilitate employee share ownership, create greater equity
in wealth creation opportunities across the wider global
workforce and enhance employee engagement. The plan
enables employees to share in the success of the Company
and encourage employees to act as owners. It operates
alongside our existing all-employee share ownership plans,
including SIP and SAYE in the UK and the ESOPs in South
Africa, promoting share ownership for all employees across the
globe.
The MyShare offering consists of two elements:
– An annual award of free shares of £1,000 to all eligible
employees
– The opportunity to participate in a purchase and match
scheme through the deduction of a portion of their salary.
Individuals can purchase up to £150 worth of shares per
month. The Company matches all share purchases on a
1 to 1 basis.
Free shares and matched shares carry a two-year vesting
period before they are released to individuals.
In September 2023, the second grant of free shares was
made to all eligible employees. In total, awards were made to
12,766 employees across participating countries.
The related purchase and match scheme continued to
exceed our target of 10% uptake, with 15% of eligible
participants enrolling.
Remuneration arrangements elsewhere in the Group
The remuneration arrangements for the executive directors
outlined on pages 186-188 are broadly aligned with those for
other executives serving on the Executive Leadership Team
(ELT), although opportunity levels vary. The arrangements are
also broadly aligned with the arrangements for the wider
workforce, dependent on seniority within the business. For
further details of the cascade of pay elements through
employee population, please see the table below.
Consideration of the views of the wider workforce and
shareholders.
In reviewing and developing the 2023 remuneration policy,
the Committee took into account:
– The internal context for remuneration policy design at
Anglo American, including the remuneration arrangements
that apply for other employee groups
– Developments in the governance landscape for executive
remuneration in UK-listed companies
– The views of shareholders.
As a standing item in the annual agenda, the Committee
reviews in detail how the remuneration arrangements for the
executive directors’ compare to those other members of the
ELT, to ensure an appropriate balance between internal
alignment and line of sight to an executive’s own areas of
responsibility. A further standing item presents the Committee
with information on wider employee pay. The Committee
welcomes feedback on the remuneration policy, which the
Company facilitates through the wider engagement of
employees on corporate matters as described elsewhere in
this report (see pages 161-162). In addition, many of the
Company’s employees are shareholders, through the global
employee share ownership arrangements, and many of them,
like other shareholders, are able to express their views on
directors remuneration at each general meeting.
Living wage
Anglo American has been an accredited Living Wage
employer in the UK since 2014 via the Living Wage
Foundation. In January 2023, we strengthened our
commitment by receiving global Living Wage certification with
the Fair Wage Network, formalising our status as a committed
global employer. The Fair Wage Network is a trusted
organisation that has developed an online database that
covers Living Wage reference values for every country in the
world and is considered an expert in this field.
A Living Wage analysis forms part of our annual pay review
process so that we continue to pay workers above living wage
thresholds for the localities in which they operate.
Additionally, we are an active member of the Business Fights
Poverty ‘Living Wage Peer Circle’, which is a forum to
collaborate, engage and share Living Wage insights with
peers from across multiple industries.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
205
Our key SHE and ESG commitments flow through to the
incentives for all eligible employees. The annual bonus scheme
outcomes for all eligible employees are determined by team-
based goals that include SHE measures, financial metrics
and critical strategic measures. All eligible employees are
incentivised to work collectively on key priorities in these areas,
and are subject to a safety deductor. The LTIP awards granted
to management and senior management include the
performance measures applicable to our executive directors,
which for 2024 include ESG measures relating to GHG
emissions and Tailings.
Cascade of pay elements through employee population
The following table represents the cascade of our
remuneration elements across our UK employee population.
Population
All UK
employees
Remuneration
element
Details
Salary
Pension
Benefits
SAYE
SIP
Salaries are determined based on
the role and market rates; regular
benchmarking exercises are taken to
ensure salaries remain competitive
against the market.
We are an accredited Living Wage
employer and all employees are paid
at least the Real Living Wage.
All employees are able to participate
in the Company’s Defined
Contribution scheme.
All employees are eligible to
participate in our range of benefits
ranging from private medical
coverage, occupational health
services, and life assurance to a
range of well-being and shopping
benefits.
All employees are eligible to
participate in the Company’s SAYE
scheme, which encourages
employee share ownership and the
opportunity to share in the value
created in the Company.
All employees who have been in
employment for three months or
more are eligible to participate in the
Company’s SIP scheme of
partnership and matching shares.
The Company matches the number
of partnership shares bought on a
1:1 basis.
All employees are also eligible to
receive discretionary annual awards
of free shares.
Annual Bonus Our UK permanent employees are
eligible to participate in our annual
bonus scheme. Performance for the
bonus is determined on a team basis,
ensuring that everyone is working
towards the company’s collective
goals.
LTIP
Management
and senior
management
Executive
directors and
ELT members
Shareholding
requirements
LTIP performance measures for the
management population are the
same as those for the executive
directors, providing appropriate
alignment. The LTIP ensures the
focus of the decision-making
population is on long term value
creation.
The executive director shareholding
requirements ensure greater
alignment with interests of
shareholders. ELT members are also
subject to a shareholding
requirement.
206
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Governance
Directors’ remuneration report
Gender pay gap
Introduction
Closing our Gender Pay Gap continues to be a priority for us –
we understand that striving for parity of pay for women
reflects a culture where women are valued and can reach
their full potential in the workplace. We also know that a
business where women are proactively supported to reach
their full potential will be better performing and sustainable
in the long-term.
Initiatives such as our Global Carers’ Leave Policy; our
Responding to Domestic Violence Policy; our Global Bullying
Harassment and Victimisation Policy and training and
awareness around inclusive recruitment all contribute towards
this end.
Creating a workplace where women can thrive is part of our
broader inclusion approach and we continue to monitor and
address issues that are barriers to women’s progression
through our Inclusion and Diversity Policy and work.
As at April 2023, women made up 55% of our UK HQ
employees, the same as in 2022 at the same point. Over the
year, female representation continued to increase across our
total management population. By focusing on areas such as
talent acquisition, development, succession planning and
mentoring as well as intersectionality, we made sure we are
on target to achieve our goal of having 33% female
representation across our Executive Committee and those
that report to it, from 18% in 2017 when UK gender pay gap
legislation took effect.
We have made good progress and will continue to develop
and embed initiatives designed to make a positive difference
to women’s experience in the workplace and help us to realise
our vision of a truly inclusive workplace where everyone can
thrive and contribute fully.
Summary
Anglo American Services (UK) Limited is the UK company
that employs the majority of Anglo American’s UK workforce
and is predominantly engaged in the provision of head office
corporate services to Anglo American’s global operations.
The following sets out the information required by the UK
regulation for Anglo American Services (UK) Limited, as at
5 April 2023.
Our mean UK hourly pay gap of 32.4% is down 6.6% from
2022 and, while there has been improvement, the gap remains
primarily a function of the representation of men in the most
senior management roles in our UK head office, as shown most
clearly in the quartile analysis. On a global basis, our gender
pay gap(1) of c.16.4% reflects the far greater balance across
the full breadth of our business activities.
Hourly pay
Anglo American is a global mining business, headquartered
in the UK, and the majority of the senior leadership team is
UK-based. The gaps shown below are largely attributable to
the fact that more men than women are working in more highly
paid, senior roles.
At the snapshot date of 5 April 2023, Anglo American Services
(UK) Ltd comprised of:
– A UK workforce of 498 employees of which 45% were men
and 55% were women
– Although there has been a significant improvement year-on-
year, the senior management population was made up of a
substantially higher proportion of men (64%) than women
(36%)
– A 32% mean and 23% median UK hourly pay gap
(2022: 39% mean and 29% median).
Hourly pay gap ratios
The table below ranks Anglo American’s 498 UK employees’
hourly pay from lowest to highest and then splits the number
of employees into equally sized groups.
Reflecting the hourly pay gap described above, this chart
shows that there has been an increase in the upper quartile,
where the percentage of women increased to 35%, however,
the percentage of women in the upper middle quartile
decreased year on year from 57% to 55%. Proportionally there
remains more male employees than female employees in the
higher pay quartiles.
Hourly pay quartiles
Hourly pay quartiles
Lower
Lower Middle
Upper Middle
Upper
2023
Percentage
males
in Quartile
2023
Percentage
females
in Quartile
2022
Percentage
males
in Quartile
2022
Percentage
females
in Quartile
25
46
45
65
75
54
55
35
23
47
43
66
77
53
57
34
Proportion of employees awarded a bonus for 2023
Anglo American’s UK performance pay schemes operate
irrespective of gender, with the majority of UK employees
eligible to receive variable bonus pay during the year. 2023
saw 85% of male and 86% of female employees receive a
bonus.
% awarded a bonus
Male
Female
2023
85%
86%
2022
81%
82%
(1) Weighted average gender pay gap of the basic pay of those employees in
Australia, Brazil, Chile, Peru, Singapore, South Africa and the UK who are
subject to the Anglo American Group-wide reward structures.
The population for which bonus pay relates to was 501,
reflecting the different rules for the statutory reporting of hourly
rate and bonus figures.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
207
Bonus pay gap
The factors driving the bonus pay gap are the same as for
the hourly pay gap shown in metrics 1 and 2, being the
imbalanced gender composition across the more senior roles
in our UK headquarters. Variable performance pay structures
for the most senior employees differ from those of the wider
workforce, thereby further widening the gap. The decrease in
the mean and median bonus pay gap for 2023 reflects the
increasing proportion of female employees in more senior roles
recognising there will be a lag given the vesting period for
bonuses.
Bonus pay gap
Male
Female
2023
64%
53%
2022
75%
63%
The UK Gender Pay Gap Requirement
The UK Gender Pay Gap reporting requirement is a
regulation under The Equality Act 2010 (Gender Pay Gap
Information) Regulations 2017 that is designed to provide
public transparency in relation to the difference between
men’s and women’s earnings within a company.
This regulation came into effect on 6 April 2017 and all UK
registered companies that employ, in the UK, 250 or more
people are required to disclose the specifically defined
information by 4 April 2024. The source data for the required
information must be at the ‘snapshot date’ of 5 April 2023.
Anglo American is confident that it complies with the UK’s
Equal Pay legislation, which governs the right to equal pay
between men and women for equal work. I confirm the data
reported is accurate.
Remuneration disclosures
10-year remuneration and returns
The TSR chart shows the Group’s TSR performance against the
performance of the FTSE 100 index from 1 January 2014 to
31 December 2023. The FTSE 100 index was chosen as this is
a widely recognised broad index of which Anglo American has
been a long term constituent. In comparison to the FTSE 100,
the Company’s TSR performance over this period is positive.
TSR is calculated in US dollars, and assumes all dividends are
reinvested. The TSR level shown as at 31 December each year
is the average of the closing daily TSR levels for the five-day
period up to and including that date.
The table opposite shows the total remuneration earned by
the incumbent chief executive over the same 10-year period,
along with the proportion of maximum opportunity earned in
relation to each type of incentive.
The total amounts are based on the same methodology as for
the single figure table for executive directors on page 191 of
this report.
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Directors’ remuneration report
10-year CEO remuneration
Financial year ending
Duncan Wanblad
Total remuneration
(single figure, £’000)
Annual bonus (% of maximum)
LTIP (% of maximum)
Mark Cutifani
Total remuneration
(single figure, £’000)
31
December,
2014
31
December,
2015
31
December,
2016
31
December,
2017
31
December,
2018
31
December,
2019
31
December,
2020
31
December,
2021
31
December,
2022
31
December,
2023
3,725
3,462
3,996
6,693
15,636
10,745
9,331
11,928
5,134(1)
—
4,393(1)
3,603
42.6%
62.2%
38.3%
40.3%
Annual bonus (% of maximum)
60%
36.5%
87.5%
76.9%
63.4%
58%
LTIP (% of maximum)
—
50.0%
—%
50.0%
100%
92.5%
54.6%
83.8%
75.2%
90.0%
42.6%
62.2%
—%
—%
(1) Mark Cutifani and Duncan Wanblad’s 2022 total remuneration figure has been restated with updated LTIP value based on actual share price at vesting and as
outlined on page 197.
CEO pay ratio
The table shows our CEO pay ratio for 2023 based on our total
UK population, and the methodology used for the calculation.
At 36:1, the CEO pay ratio at the median has decreased from
the median ratio of 72:1 (restated) in 2022. This is as a result of
the following:
– In line with our executive director remuneration strategy, our
chief executive pay comprises a higher proportion of
incentive pay compared to the wider employee population.
In particular, a significant proportion of the chief executive’s
total remuneration package is made up of LTIP shares, and
therefore the chief executive’s total remuneration is strongly
influenced by the value of the LTIP awards at vesting.
– The value of LTIP awards vesting for the chief executive in
respect of the three year performance period ended 31
December 2023 is significantly less compared to the prior
year. This is a result of a lower vesting outcome, a fall in share
price in 2023, and the vesting relating to LTIP awards
granted to the current chief executive prior to joining the
Board (which were at a lower level compared to his
predecessor).
– The chief executive’s total remuneration has fallen from
£7.14 million to £3.6 million in 2023, largely due to the LTIP
vesting level.
The total remuneration of the median employee has increased
from £98,541 to £101,277. This is due to the median
employee this year being on a higher salary, due in part to an
inflationary increase at the start of the year that was higher for
the broader workforce than that implemented for the chief
executive.
Option A has been used to calculate the ratio, being the most
comprehensive methodology of the three prescribed methods.
This methodology uses the full-time equivalent pay and
benefits data for all UK employees during the year and
compares the single-figure number for employees at the 25th,
50th and 75th percentiles against the chief executive at the
snapshot date of 31 December 2023, the last day of the
financial year.
The salary, benefits and share plan data has been taken on
a full-time equivalent basis, however, the annual bonus and
LTIP values have been taken on an estimated basis. All other
elements were calculated in line with the methodology used
for the chief executive.
The employee at the 50th percentile does not participate in
a long term incentive plan and does not receive all benefits
applicable to the chief executive. Therefore, the ratio is not
a direct comparison with the total remuneration of the chief
executive. Having reviewed the reasons for the change in
the median pay ratio, the Company is satisfied that the ratio
is appropriate.
Financial year ending
2023
2022(1)
2021
2020
2019
Method
used
Option A
Option A
Option A
Option A
Option A
25th
percentile
Median
percentile
75th
percentile
60:1
122:1
225:1
188:1
205:1
36:1
72:1
141:1
126:1
133:1
19:1
41:1
79:1
74:1
60:1
(1) 2022 numbers have been restated in line with the updated LTIP value based on actual share price at vesting and restated benefits value as outlined on page 197.
CEO pay ratio
25th percentile
employee
Median percentile
employee
75th percentile
employee
2023
2022
2021
2020
2019
2023
2022
2021
2020
2019
Salary
Total remuneration
£47,520
£41,738
£44,761
£45,039
£41,706
£60,088
£58,523
£53,027
£49,805
£52,301
£83,838
£70,637
£60,029
£64,080
£54,810 £101,277
£98,541
£84,452
£74,193
£80,811
£107,555 £110,452
£99,176
£91,350 £108,200 £189,059 £173,168 £150,876 £126,812 £178,416
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
209
Change in directors’ remuneration compared to
UK employees
The following table sets out the directors’ basic salary, benefits
and annual bonus amounts between 2023 and 2020 and the
year-on-year changes. We show the average change in each
element for UK-based Anglo American Services (UK) Ltd and
Anglo American Technical & Sustainability Services Ltd
employees below ELT level (this excludes the De Beers and
Crop Nutrients businesses’ employees). This population is
being used, as Anglo American plc does not have any direct
employees. The chosen population is considered to be the
most relevant employee comparator group, given the Group-
wide nature of roles performed at the corporate head office.
The results show that the average UK employee salary has
increased; the comparable salaries for employees who have
been employed for both years shows a 9% rise from 2022.
This is due to a combination of promotions and an 8% salary
increase having being applied for all employees. Benefits
have increased by 25% on a like-for-like basis, largely due to
an increase in pension level. Bonus levels for employees on a
like-for-like basis have fallen by 4%.
2023(1)
Salaries/
fees
2023(2)
Benefits
2023
Bonus
2022(1)
Salaries/
fees
2022(2)
Benefits
2022
Bonus
2021(1)
Salaries/
fees
2021(2)
Benefits
2021
Bonus
2020(1)
Salaries
/fees
2020(2)
Benefits
2020
Bonus
Executive directors
Duncan Wanblad
£’000
1,300
John Heasley(3)
Non-executive directors
Stuart Chambers(4)
% change
£’000
% change
£’000
% change
Magali Anderson(5)
£’000
Ian Ashby
% change
£’000
% change
Marcelo Bastos
£’000
Hilary Maxson
% change
£’000
% change
Hixonia Nyasulu
£’000
Nonkululeko Nyembezi £’000
% change
4%
810
—%
804
4%
121
—%
174
2%
147
13%
154
17%
134
3%
141
3%
206
210
17%
98
—%
1,046
(6%)
—%
5
0
(31%)
—%
—%
0
—%
0
—%
—%
—%
—%
0
—%
0
—%
0
—%
0
—%
0
—%
0
—%
0
—%
1250
—%
0
—%
773
8%
183
—%
170
17%
130
15%
132
25%
130
15%
137
15%
183
—%
868
3%
111
6%
179 1117
—%
—%
0
0
—%
—%
8
0
(12%)
—%
0
—%
—%
0
0
—%
—%
0
0
—%
—%
0
—%
—%
0
—%
—%
0
—%
—%
0
—%
—%
92
791
46%
(41%)
24
77
18%
(16%)
0
—%
0
—%
714
2%
0
—%
145
—%
113
8%
105
—%
113
13%
120
—%
0
—%
843
2%
105
6%
0
0
0
0
0
—%
—%
—%
—%
—%
0
0
0
0
0
—%
—%
—%
—%
—%
9
0
18%
—%
0
0
—%
—%
0
0
700
—%
145
4%
145
7
0
46%
—%
0
0
—%
—%
0
0
—%
—%
10%
—%
—%
0
0
—%
—%
0
0
—%
—%
0
0
105
2%
0
—%
100
0
0
—%
—%
0
0
—%
—%
0
0
—%
—%
11%
—%
—%
0
0
—%
—%
0
0
—%
—%
63
1,330
71%
38%
21
98
28%
42%
115
—%
145
4%
826
2%
106
5%
0
0
—%
—%
0
0
—%
—%
37
(5%)
19
11%
965
(4%)
92
7%
Ian Tyler
Former directors
Stephen Pearce(6)(7)
UK employees
% change
£’000
% change
13%
—%
£’000
% change
£’000
% change(8)
903
4%
112
9%
478
419%
26
743
(6%)
63
25%
(4%)
(1) The Chairman and NED base fees increased in 2023 by 4%.
(2) Benefits for UK employees comprise pension and car allowances (where applicable), these being the most material.
(3) John Heasley joined the Board on 1 December 2023; values shown represent his full-year equivalent remuneration for comparability.
(4) Stuart Chambers’ benefits in kind figure relates to the reimbursement of travel expenses during the year and the settlement of tax in relation to the reimbursement.
(5) Magali Anderson joined the Board on 1 April 2023; her fees are full-year equivalents for comparability.
(6) Stephen Pearce stepped down from the Board on 1 December 2023; values shown represent his full-year equivalent remuneration for comparability.
(7) The 2023 benefit value for Stephen Pearce includes a one-off relocation support payment of £377,358. The year-on-year change in benefits would be 9% if this
support was excluded. Further details on the relocation support payment can be found on page 192.
(8) Annual salary increase for UK employees was 2%, 3% and 8% for 2021, 2022 and 2023 respectively; increases shown include pay uplifts from promotions.
210
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
Distribution statement for 2023
The table below sets out the total expenditure on employee reward over 2023, compared to profit generated by the Company
and the dividends received by investors. Underlying earnings are shown, as this is one of the Group’s key measures of
performance, while employee numbers help put the payroll costs of employees into context.
Distribution statement
Underlying earnings(1)
Dividends payable for year to company shareholders(2)
Distributions payable for year to non-controlling interests(2)
Payroll costs for all employees
Share buybacks
Employee numbers
(1) See page 227 for details on how underlying earnings are calculated.
(2) Includes value of special dividend paid in September 2021.
(3) Platinum Group Metals prior year number of employees was restated to exclude contractors.
Results of AGM shareholder votes on remuneration aspects
Vote
2022 Annual Report on Remuneration (at 2023 AGM)
2023 Remuneration Policy (at 2023 AGM)
External advisers and fees
Advisers
$m
% change
$m
% change
$m
% change
$m
% change
$m
% change
’000
% change
2023
2,932
(51)
1,564
(56)
957
(39)
4,096
6
—
—
58
2
2022(3)
6,036
(32)
3,549
(12)
1,566
(45)
3,849
1
—
(100)
57
(8)
Number of votes
For
Against
Abstain
855,645,764
49,149,531
19,226,899
(94.57%)
(5.43%)
867,857,873
36,937,576
19,226,745
(95.92%)
(4.08%)
Fees for
Committee
assistance
£102,300
Deloitte LLP Appointed by the Committee as external advisers from November 2020 following a competitive tender process.
Support during 2023 includes attendance and advice at Remuneration Committee meetings and advice on the
remuneration elements relating to the announcement of the change of finance director.
Other services provided to the Company
Corporate tax advisory services; risk advisory services including cyber, governance and ethics; financial advisory
services in relation to transformation, mergers and acquisitions and capital restructuring; legal managed
services; and consulting services including, human capital, enterprise and legal technology, operational and
strategy and management consulting.
Anglo American plc
Integrated Annual Report 2023
Governance
Directors’ remuneration report
211
Directors’ service agreements
The terms of employment are set out in the executive
directors’ service agreements which are rolling contracts with
no fixed term. Notice periods for both executive directors are
12 months.
The dates of the executive directors’ service agreements are
set out below.
Duncan Wanblad
John Heasley
Date of appointment
19 April 2022
1 December 2023
The chairman and NEDs are appointed by the Company under
letters of appointment and do not have service agreements.
The dates of appointment for each NED are set out below.
Stuart Chambers
Magali Anderson
Ian Ashby
Marcelo Bastos
Hilary Maxson
Hixonia Nyasulu
Nonkululeko Nyembezi
Ian Tyler
Date of appointment
1 September 2017
1 April 2023
25 July 2017
1 April 2019
1 June 2021
1 November 2019
Remuneration Committee in 2023
Membership
The Committee comprised the independent NEDs listed on
page 178 as at 31 December 2023.
External advisers to the Committee
The table on the previous page details the external advisers to
the Committee and the fees paid for services provided during
2023. The fees for external advisers are charged on a time
and expenses basis and are in accordance with the terms
and conditions set out in each relevant engagement letter.
Deloitte is one of the founding members of the Remuneration
Consulting Group.
The Committee is satisfied that the Deloitte engagement team,
which provides remuneration advice to the Committee, does
not have connections with Anglo American plc or its directors
that may impair its independence. The Committee reviewed
the potential for conflicts of interest and judged that there were
appropriate safeguards against such conflicts.
Approval
This directors’ remuneration report has been approved by the
Board of directors of Anglo American plc.
1 January 2020
Signed on behalf of the Board of directors.
1 January 2022
Ian Tyler
Chairman, Remuneration Committee
21 February 2024
The Company’s policy on termination is consistent with
provisions relating to termination of employment in the
executive directors’ service agreements and with provisions
in the incentive plan rules. Also set out are the key terms
relating to change in control, where there is no termination.
There are no provisions for enhanced payments in the event
of a change in control of the Company.
Non-executive directors
All NEDs have letters of appointment with the Company
and are expected to serve for an initial period of three years,
subject to annual re-appointment by shareholders. The
Company Chair’s appointment may be terminated by either
side giving six months’ notice. All other NEDs have a notice
period of one month. The appointment letters for the Chair and
NEDs provide that no compensation is payable on termination,
other than any accrued fees and expenses.
212
Anglo American plc
Integrated Annual Report 2023
Governance
Statement of directors’ responsibilities
The directors are responsible for preparing the Integrated
Annual Report and the financial statements in accordance
with applicable law and regulation.
subject to any material departures disclosed and explained in the
financial statements
– Make judgements and accounting estimates that are reasonable
Company law requires the directors to prepare financial statements for
each financial year. Under that law the directors have prepared the
Group financial statements in accordance with UK-adopted
International Accounting Standards and the Parent Company financial
statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
comprising FRS 101 “Reduced Disclosure Framework”, and
applicable law).
Under company law, directors must not approve the financial
statements unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and Parent Company and of the
profit or loss of the Group for that period. In preparing the financial
statements, the directors are required to:
– Select suitable accounting policies and then apply them consistently
– State whether applicable UK-adopted International Accounting
Standards have been followed for the Group financial statements
and United Kingdom Accounting Standards, comprising FRS 101
have been followed for the Parent Company financial statements,
and prudent
– Prepare the financial statements on the going concern basis unless
it is inappropriate to presume that the Group and Parent Company
will continue in business.
The directors are responsible for safeguarding the assets of the Group
and Parent Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are also responsible for keeping adequate accounting
records that are sufficient to show and explain the Group’s and Parent
Company’s transactions and disclose with reasonable accuracy at any
time the financial position of the Group and Parent Company and
enable them to ensure that the financial statements and the Directors’
Remuneration Report comply with the Companies Act 2006.
The directors are responsible for the maintenance and integrity of the
Parent Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Directors’ confirmations
for the year ended 31 December 2023
The directors consider that the Integrated Annual Report and accounts,
taken as a whole, is fair, balanced and understandable and provides
the information necessary for shareholders to assess the Group’s and
Parent Company’s position and performance, business model and
strategy.
We confirm that, to the best of our knowledge:
– the Group financial statements, which have been prepared in
accordance with UK-adopted international accounting standards,
give a true and fair view of the assets, liabilities, financial position and
profit of the Group
– the Parent Company financial statements, which have been
prepared in accordance with United Kingdom Accounting
Standards, comprising FRS 101, give a true and fair view of the
assets, liabilities and financial position of the Parent Company and
– the Strategic Report includes a fair review of the development and
performance of the business and the position of the Group and
Parent Company, together with a description of the principal risks
and uncertainties that it faces.
By order of the Board
Duncan Wanblad
Chief Executive
21 February 2024
John Heasley
Finance Director
Anglo American plc
Integrated Annual Report 2023
213
Financial statements
and other financial
information
Contents
Independent auditors’ report to the members of
214
Net debt and financial risk management
Anglo American plc
Primary statements
Consolidated income statement
Consolidated statement of comprehensive
income
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in equity
Notes to the financial statements
Financial performance
222
222
223
224
225
1. Operating profit from subsidiaries and joint
226
operations
2. Financial performance by segment
3. Earnings per share
4. Net finance costs
5. Income tax expense
6. Dividends
Significant items
7. Significant accounting matters
8. Impairment and impairment reversals
9. Special items and remeasurements
Capital base
10. Capital by segment
11. Intangible assets
12. Property, plant and equipment
13. Capital expenditure
14. Investments in associates and joint
ventures
15. Financial asset investments
16. Provisions for liabilities and charges
17. Deferred tax
Working capital
18. Inventories
19. Trade and other receivables
20. Trade and other payables
227
229
230
230
233
234
237
240
242
243
244
245
246
248
248
250
252
253
253
21. Net debt
22. Borrowings
23. Leases
24. Financial instruments and derivatives
25. Financial risk management
Equity
254
255
256
257
261
26. Called-up share capital and consolidated
264
equity analysis
27. Non-controlling interests
Employees
28. Employee numbers and costs
29. Retirement benefits
30. Share-based payments
Unrecognised items and uncertain events
31. Events occurring after end of year
32. Commitments
33. Contingent assets and liabilities
Group structure
34. Disposals
35. Basis of consolidation
36. Related undertakings of the Group
Other items
37. Related party transactions
38. Auditors’ remuneration
39. Accounting policies
Financial statements of the Parent Company
Summary by operation
Key financial data
Exchange rates and commodity prices
265
267
268
273
274
274
274
276
277
279
294
294
295
304
307
309
310
214
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the
members of Anglo American plc
Report on the audit of the financial statements
Our audit approach
Opinion
In our opinion:
– Anglo American plc’s Group financial statements and Parent
Company financial statements (the “financial statements”) give
a true and fair view of the state of the Group’s and of the Parent
Company’s affairs as at 31 December 2023 and of the Group’s
profit and the Group’s cash flows for the year then ended;
– the Group financial statements have been properly prepared in
accordance with UK-adopted international accounting standards
as applied in accordance with the provisions of the Companies
Act 2006;
– the Parent Company financial statements have been properly
prepared in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework”, and applicable
law); and
– the financial statements have been prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements, included within the
Integrated Annual Report 2023 (the “Annual Report”), which comprise:
the Consolidated and Parent Company balance sheets as at
31 December 2023; the Consolidated income statement, the
Consolidated statement of comprehensive income, the Consolidated
cash flow statement and the Consolidated and Parent Company
statements of changes in equity for the year then ended; and the notes
to the financial statements, comprising material accounting policy
information and other explanatory information.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
under ISAs (UK) are further described in the Auditors’ responsibilities for
the audit of the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical
requirements that are relevant to our audit of the financial statements
in the UK, which includes the FRC’s Ethical Standard, as applicable to
listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit
services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in note 38, we have provided no non-audit
services to the Parent Company or its controlled undertakings in the
period under audit.
Overview
Audit scope
– Our audit included full scope audits, audit of specific account
balances or specified procedures at each of the Group’s twelve in-
scope businesses, joint ventures and associates (“components”).
– Taken together, the components at which audit work was performed
accounted for 98% of consolidated revenue, 95% of consolidated
profit before tax and 94% of consolidated profit before tax, special
items and remeasurements.
Key audit matters
– Assessment of impairment and impairment reversals for intangible
assets, property, plant and equipment (Group) and investments in
subsidiaries (Parent Company)
– Provisions for environmental restoration and decommissioning
(Group)
Materiality
– Overall Group materiality: $400 million (2022: $400 million) based
on approximately 3.4% of the Group’s three year-average
consolidated profit before tax, special items and remeasurements.
– Overall Parent Company materiality: $300 million
(2022: $300 million) based on approximately 1% of the Parent
Company’s total assets.
– Performance materiality: $300 million (2022: $300 million) (Group)
and $225 million (2022: $225 million) (Parent Company).
The scope of our audit
As part of designing our audit, we determined materiality and assessed
the risks of material misstatement in the financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional
judgement, were of most significance in the audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to fraud)
identified by the auditors, including those which had the greatest effect
on: the overall audit strategy; the allocation of resources in the audit;
and directing the efforts of the engagement team. These matters, and
any comments we make on the results of our procedures thereon, were
addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
215
Key audit matter
How our audit addressed the key audit matter
Assessment of impairment and impairment reversals for intangible
assets, property, plant and equipment (Group) and investments in
subsidiaries (Parent Company)
As at 31 December 2023, the Group has intangible assets of
$1,479 million (2022: $2,828 million) and property, plant and
equipment of $43,949 million (2022: $41,125 million). All of these
asset categories require review for indicators of impairment, and
where relevant, impairment reversal.
The determination of whether an impairment or impairment reversal
indicator exists can be judgemental. Management must determine
the recoverable amount when impairment indicators or indicators of
impairment reversal are identified.
Goodwill is required to be tested for impairment at least annually. The
Group’s goodwill of $270 million (2022: $1,671 million), decreased
following the impairment recorded during the year at De Beers of
$1.6 billion.
The determination of recoverable amount, being the higher of value-in-
use (“VIU”) and fair value less costs of disposal (“FVLCD”), requires
judgement and estimation on the part of management in identifying
and then determining the recoverable amounts for the relevant cash-
generating units (“CGUs”). Recoverable amounts are based on
management’s view of key value driver inputs and external market
conditions such as future commodity prices, budgeted operating
expenditure, the timing and approval of future capital expenditure,
and the most appropriate discount rate. As these assumptions were
derived from observable data available to a market participant as
required under IFRS, they are not necessarily aligned with the Paris
Agreement scenario. Estimation uncertainty is considered to be
significant due to the long lives of the majority of assets and
uncertainty in the quantum and timing of cash flows, including the
uncertain impact of climate change on the Group’s operations, as
described in note 7 to the financial statements.
Impairment indicators were identified in the year for Minas-Rio (Iron
Ore Brazil) and Barro Alto (Nickel). No indicators for impairment
reversal were identified. As indicators for impairment were identified in
respect of these CGUs, management prepared a detailed cash flow
model on a FVLCD basis to estimate the recoverable amount.
Management’s analysis over those CGUs with indicators for
impairment determined that an impairment loss during the year had
occurred within the Barro Alto CGU of $0.8 billion. This includes the
impairment of $0.4 billion recognised within Barro Alto at the half year
ended 30 June 2023.
Separately, the Group holds goodwill associated with the De Beers
and Platinum Group Metals segments and the Los Bronces - Chagres
(Copper Chile) CGU and so annual goodwill impairment tests are
performed for these assets. Management’s analysis over those assets
with goodwill determined that an impairment loss had occurred at
De Beers ($1.6 billion).
Refer to notes 7 and 8 for management conclusions and the Audit
Committee’s views on page 170.
At 31 December 2023, the Parent Company holds investments in
subsidiaries amounting to $33,113 million (2022: $32,971 million).
Investments in subsidiaries are accounted for at historical cost less
accumulated impairment. Judgement is required to assess if
impairment indicators exist and where indicators are identified, if the
investment carrying value is supported by the recoverable amount.
In forming this assessment, management compares the underlying
net assets of the investments to their carrying amount and any other
relevant facts and circumstances, including the impact of any
impairments recorded in the Group financial statements.
Refer to note 1 to the Parent Company’s financial statements.
For all material finite-lived intangible assets and property, plant and
equipment, we undertook the following to test management’s
assessment for indicators of impairment/impairment reversal:
– we understood management’s processes and evaluated the design
and implementation of controls in respect of the impairment
indicator assessment process;
– we assessed the appropriateness of management’s identification of
the Group’s CGUs; and
– we evaluated and challenged management’s assessment and
judgements in respect of impairment/impairment reversal indicators,
including ensuring that the impact of climate change, and recent
commodity price and foreign exchange volatility, were appropriately
considered in management’s impairment indicator assessment and
conclusions.
For each CGU where indicators for impairment were identified, and in
respect of the De Beers segment and other CGUs where an annual
goodwill impairment test was required, management prepared a
detailed cash flow model on a FVLCD basis to estimate the
recoverable amount, or compared the carrying value to the fair value
indicated by the share price of listed subsidiaries, where relevant. Our
procedures in respect of each model included:
– verifying the integrity of formulae and the mathematical accuracy of
management’s valuation models;
– consideration of the impact of the latest life of asset plan
assumptions and ensuring that the valuation model reflects the
latest plans and, where relevant, sufficient value has been attributed
to residual reserves and resources to the extent this would be
undertaken by a third party market participant. This included
assessing the competence and objectivity of management’s internal
technical experts in preparing the plan as well as reviewing the
supporting information underpinning the internal expert’s report,
where appropriate;
– assessing the reliability of management’s forecast capital and
operating expenses with reference to comparing budgeted results
with actual performance in prior periods;
– with the support of our valuations experts, assessing the discount
rate used in each model and whether it fell within a reasonable
range taking into account external market data. Our assessment of
discount rates also included consideration of country and asset
specific risks and challenging management to ensure that these had
been appropriately captured in either the discount rate or underlying
cash flow forecasts;
– benchmarking management’s forecast commodity price and
foreign exchange assumptions against our own collated consensus
data to assess whether they fell within an external analyst range.
Specifically in respect of De Beers, we engaged our economics
experts to challenge and assess the appropriateness of the
methodology and assumptions used in deriving forecast diamond
prices;
– challenging and verifying that the cash flow forecasts appropriately
captured and considered the impact of carbon emissions on price,
mine plan costs and cost of capital, where material;
– verifying that costs and benefits of the implementation of projects to
mitigate physical climate risk were appropriately included in cash
flow forecasts, where such costs and benefits have been
incorporated into the approved life of asset plan;
– assessing whether the assumptions had been determined and
applied on a consistent basis, where relevant, across the Group; and
– assessing the disclosure made over the impairment charges and
sensitivities within note 8 to the financial statements and challenging
management where any inconsistencies were noted.
216
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
Key audit matter
How our audit addressed the key audit matter
Based on the procedures performed, we noted no material issues
arising from our work.
In respect of investments in subsidiaries in the Parent Company,
we undertook the following to test management’s assessment for
indicators of impairment:
– evaluated and challenged management’s assessment and
judgements, including ensuring that consideration had been given
to the results of the Group’s impairment assessment in respect of
intangible assets and property, plant and equipment;
– verified the mathematical accuracy of management’s assessment
including that the net assets of the subsidiaries being assessed
agreed to the respective subsidiary balance sheet at 31 December
2023; and
– examined management’s assessment of other internal and external
impairment indicators, including considering the market
capitalisation of the Group with reference to the carrying value of
investments in subsidiaries in the Parent Company to identify other
possible impairment indicators.
Based on the procedures performed, we noted no material issues
arising from our work.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
217
Key audit matter
How our audit addressed the key audit matter
Provisions for environmental restoration and
decommissioning (Group)
The Group has provisions for environmental restoration and
decommissioning of $2,801 million as at 31 December 2023
(2022: $2,667 million).
The calculation of these provisions requires management to estimate
the quantum and timing of future costs, taking into account the unique
nature of each site, the long timescales involved and the potential
associated obligations. These calculations also require management
to determine an appropriate rate to discount future costs to their net
present value.
Management reviews the environmental restoration and
decommissioning obligations at each reporting period, using experts
to provide support in its assessment where appropriate. This review
incorporates the effects of any changes in local regulations, mining
disturbance and rehabilitation activities that have taken place during
the year, and management’s anticipated approach to restoration
and rehabilitation.
During the 2023 financial year, the Group announced its significant
progress towards conformance for all tailings dams in the highest
priority rankings according to the GISTM. The Group continues to refine
designs and all material costs of conformance with GISTM have been
recorded within decommissioning and environmental restoration
provisions.
Refer to note 16 for management’s conclusions and the Audit
Committee’s views on page 171.
We assessed management’s process for the review of environmental
restoration and decommissioning provisions and, for those estimates
we consider to be material, performed detailed testing in respect of the
cost estimates.
We validated the existence of legal and/or constructive obligations
with respect to the provision and considered whether the intended
method of restoration and rehabilitation was appropriate. We
evaluated the competence and objectivity of management’s experts
who produced cost estimates. We read correspondence between
management and management’s experts, as well as with mining
regulatory bodies, where applicable, and also held meetings with the
experts, where relevant, to understand their methodology and inputs.
We considered whether any risks associated with climate change
impacted either the timing or extent of remediation activities.
For certain of the Group’s environmental restoration and
decommissioning provisions, we engaged our own internal experts to
assess the work performed by management’s expert. This assessment
included a review of any potential contingent liabilities which are not
provided for, and identification of any other potential costs requiring
recognition or disclosure that could be material.
In assessing the appropriateness of cost estimates, we focused on
validating that costs underpinning the accounting provision represent
management’s and the experts’ best estimate of expenditure, based
on the current extent of mine disturbance as well as any risk
adjustments included in the estimate. In respect of claims that have
been made by regulatory authorities or government bodies regarding
closure estimates, we met with legal counsel, where relevant, to assess
the probable outcomes in relation to ongoing claims and exposure and
areas where legal requirements are open to interpretation. We
assessed the timing of the cash flows and discount rates applied to
calculate the present value of estimated costs by comparing the rates
applied by management to the yields on government bonds with
maturities approximating the timing of cash flows for each territory and
currency.
Specifically in relation to the Group’s conformance with the GISTM, we
obtained the assessments performed by management to ensure cost
estimates had been included for any material expenditure required
with respect to the tailings facilities.
We validated the integrity of formulae and mathematical accuracy of
management’s calculations.
Based on the procedures performed, we noted no material issues
arising from our work.
218
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the Group and the
Parent Company, the accounting processes and controls, and the
industry in which they operate.
The Group is organised into eight reportable segments – De Beers,
Copper, Platinum Group Metals, Iron Ore, Steelmaking Coal, Nickel,
Manganese and Crop Nutrients, as well as a Corporate function. Each
segment is further divided into businesses which align to discrete
country or joint venture operations. We have identified each business
as a component, with each component typically representing a
consolidation of a number of discrete country operations.
The Group’s accounting processes for managed operations are
structured around a local finance function at each component, which
is supported by the Group’s central functions including: i) one of the
Group’s three shared service centres in South Africa, Brazil or Australia;
and ii) with the exception of De Beers and Steelmaking Coal, the
Group’s Marketing business in Singapore where the majority of the
Group’s commodity sales are transacted and processed. Each
component reports to the Group through an integrated consolidation
system.
Based on our risk and materiality assessments, we determined which
components required an audit of their complete financial information
having consideration to the relative significance of each component to
the Group, locations with significant inherent risks and the overall
coverage obtained over each material line item in the consolidated
financial statements.
We scoped in ten components requiring an audit of their complete
financial information, of which five were considered to be financially
significant components. The additional five components subject to a
complete audit were selected due to specific risk characteristics and
in order to achieve sufficient coverage in respect of each material line
item in the financial statements, including the Group’s Corporate
function. In addition, one component was scoped in for an audit of
specific account balances and one component was scoped in for
specified procedures to obtain appropriate coverage of all material
balances.
Recognising that not every operation or business in a component is
included in our Group audit scope, we considered as part of our Group
audit oversight responsibility what audit coverage had been obtained
in aggregate by our component teams by reference to operations or
businesses at which audit work had been undertaken. For all other
components, the Group team performed analytical review procedures.
Where the work was performed by component audit teams or at a
central function, we determined the level of involvement we needed
to have in the audit work at those components to be able to conclude
whether sufficient appropriate audit evidence had been obtained as
a basis for our opinion on the Group financial statements as a whole.
The Group audit team visited component teams and local operations
in South Africa, Singapore and Brazil during the 2023 audit. This is in
addition to site visits to component teams and local operations in
Chile, Peru, South Africa, Australia and Singapore in the prior year.
Furthermore, our oversight procedures included the issuance of formal,
written instructions to component auditors setting out the work to be
performed at each location and regular communication throughout
the audit cycle including regular component calls through video
conferencing, review of component auditor workpapers and
participation in audit clearance meetings.
Taken together, the components where we performed our audit work
accounted for 98% of consolidated revenue, 95% of consolidated
profit before tax and 94% of consolidated profit before tax, special
items and remeasurements. This was before considering the
contribution to our audit evidence from performing audit work at the
Group level, including disaggregated analytical review procedures
and our evaluation of entity level controls, which covers a significant
portion of the Group’s smaller and lower risk components that were not
directly included in our Group audit scope.
The financial statements of the Parent Company are prepared using
the same accounting processes as the Group’s central functions and
were audited by the Group audit team.
The impact of climate risk on our audit
Climate change is one of the Group’s principal risks. As part of our
audit, we made enquiries of management to understand its process to
assess the extent of the potential impact of climate change risks on the
Group and its financial statements. Management has explained how it
has considered the impact of climate change on the financial
statements, including specifically in respect of cash flow projections for
impairment testing, in note 7 to the financial statements. This includes
its consideration of risks and opportunities that could impact the
financial statements.
We used our knowledge of the Group to consider the risk assessment
performed by management, including its assessment of the strategic
and financial resilience of the Group’s portfolio under various scenarios.
Management remains committed to achieving its previously stated
2040 climate ambitions. During 2022, management engaged the
Carbon Trust to conduct an independent assessment to provide
external verification regarding the alignment of the Group’s Scope 1
and 2 ambitions with a well-below 2° scenario. As a result of this
assessment, and recognising that with forecasts of any type there is a
margin of error, management has confidence that capital deployment
in accordance with the Group’s operational carbon neutrality ambitions
is capital aligned with a contribution to achieving the goals of the Paris
Agreement. For financial statement reporting purposes, as detailed in
note 7, no specific climate scenario is used when determining asset
valuations as no single scenario is representative of management’s
best estimate of the likely assumptions that would be used by a market
participant when valuing the Group’s assets. The forecasts for
determining asset valuations also include an adjustment for the cost of
unabated future Scope 1 and 2 emissions irrespective of whether each
jurisdiction currently has a carbon tax or similar regime in place.
We considered management’s financial statement reporting risk
assessment in respect of climate change, focusing on those areas
considered to be most heavily impacted such as management’s
impairment assessment over non-current assets. Whilst the impact is
uncertain, we particularly considered the impact of both physical and
transition risks arising due to climate change, as well as related
opportunities and climate targets made by the Group, including any
incremental capital expenditure and/or operating costs, on the
recoverable value of the Group’s assets.
The Group has set climate targets, which include a commitment to be
carbon neutral (Scopes 1 and 2) by 2040. Whilst a pathway has been
set out to achieve this commitment, further project studies are required
to determine how specific categories of emissions can be managed
effectively. As a result, not all costs and benefits associated with the
projects that will be required to achieve this commitment are included
in forward looking estimates including those used to determine the
recoverable amount of the Group’s assets. However, this is factored
into asset valuations through the application of a carbon cost as
described above. Where the Group has a high degree of confidence
that projects supporting the achievement of these targets are
technically feasible, the related costs and benefits are included in the
relevant Life of Asset Plan and relevant forward looking estimates.
The useful lives of the Group’s mines are reassessed annually and
changes could impact depreciation charges and timing of mine
restoration activities. Based on the current life of asset plans there were
no indications that useful lives had been materially impacted by
climate change. Our work on impairment is further described in the
relevant Key Audit Matter. We have also read the disclosures made in
relation to climate change, in the other information within the Annual
Report, and considered their consistency with the financial statements
and our knowledge from our audit.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
219
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the
individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the
financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall materiality
How we determined it
Rationale for benchmark applied
Financial statements – Group
Financial statements – Parent Company
$400 million (2022: $400 million).
$300 million (2022: $300 million).
approximately 3.4% of the Group’s three year-average
consolidated profit before tax, special items and
remeasurements
Profit before tax, special items and remeasurements is
used as the materiality benchmark. The directors use
this measure as they believe that it reflects the
underlying performance of the Group. We consider that
it is most appropriate to calculate materiality based on a
three-year average of profit before tax, special items
and remeasurements to respond to longer-term trends
in commodity markets and to dampen the impact of
short-term price volatility. We used judgement to cap
our materiality at $400 million.
approximately 1% of the Parent Company’s total assets
We considered total assets to be an appropriate
benchmark for the Parent Company, given that it is the
ultimate holding company and holds material
investments in subsidiary undertakings. We used
judgement to cap our materiality at $300 million.
For each component in the scope of our Group audit, we allocated
a materiality that is less than our overall Group materiality. The range
of materiality allocated across components was $60 million to
$110 million.
We use performance materiality to reduce to an appropriately low
level the probability that the aggregate of uncorrected and undetected
misstatements exceeds overall materiality. Specifically, we use
performance materiality in determining the scope of our audit and the
nature and extent of our testing of account balances, classes of
transactions and disclosures, for example in determining sample sizes.
Our performance materiality was 75% (2022: 75%) of overall
materiality, amounting to $300 million (2022: $300 million) for the
Group financial statements and $225 million (2022: $225 million) for
the Parent Company financial statements.
In determining the performance materiality, we considered a number
of factors - the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls - and concluded that
an amount at the upper end of our normal range was appropriate.
We agreed with the Audit Committee that we would report to them
misstatements identified during our audit above $20 million (Group
audit) (2022: $20 million) and $15 million (Parent Company audit)
(2022: $15 million) as well as misstatements below those amounts
that, in our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s and the
Parent Company’s ability to continue to adopt the going concern basis
of accounting included:
– Obtaining and examining management’s base case forecast and
downside scenarios, which include pricing and production
downsides alongside a significant operational incident, and
checking that the forecasts have been subject to board review and
approval;
– Considering the historical reliability of management forecasting for
cash flow and net debt by comparing budgeted results to actual
performance;
– Checking the key inputs into the models, such as commodity prices
and production forecasts, to ensure that these were consistent with
our understanding and the inputs used in other key accounting
judgements in the financial statements;
– Performing our own independent sensitivity analysis to understand
the impact of changes in cash flow and net debt on the resources
available to the Group;
– Checking the covenants applicable to the Group’s borrowings and
examining whether management’s assessment supports ongoing
compliance with those covenants; and
– Reading management’s paper to the Audit Committee in respect of
going concern, and agreeing the forecasts set out in this paper to
the underlying base case cash flow model.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group’s and the
Parent Company’s ability to continue as a going concern for a period
of at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted,
this conclusion is not a guarantee as to the Group’s and the Parent
Company’s ability to continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK
Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the financial
statements about whether the directors considered it appropriate to
adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect
to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual
Report other than the financial statements and our auditors’ report
thereon. The directors are responsible for the other information. Our
opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or,
except to the extent otherwise explicitly stated in this report, any form
of assurance thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If we identify an
220
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
apparent material inconsistency or material misstatement, we are
required to perform procedures to conclude whether there is a material
misstatement of the financial statements or a material misstatement of
the other information. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report based on
these responsibilities.
With respect to the Strategic Report and Directors’ report, we also
considered whether the disclosures required by the UK Companies Act
2006 have been included.
considering the directors’ process supporting their statement; checking
that the statement is in alignment with the relevant provisions of the UK
Corporate Governance Code; and considering whether the statement
is consistent with the financial statements and our knowledge and
understanding of the Group and Parent Company and their
environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit:
Based on our work undertaken in the course of the audit, the
Companies Act 2006 requires us also to report certain opinions and
matters as described below.
Strategic Report and Directors’ report
In our opinion, based on the work undertaken in the course of the audit,
the information given in the Strategic Report and Directors’ report for
the year ended 31 December 2023 is consistent with the financial
statements and has been prepared in accordance with applicable
legal requirements.
In light of the knowledge and understanding of the Group and Parent
Company and their environment obtained in the course of the audit,
we did not identify any material misstatements in the Strategic Report
and Directors’ report.
Directors’ Remuneration
In our opinion, the part of the Directors’ remuneration report to be
audited has been properly prepared in accordance with the
Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in
relation to going concern, longer-term viability and that part of the
corporate governance statement relating to the Parent Company’s
compliance with the provisions of the UK Corporate Governance Code
specified for our review. Our additional responsibilities with respect to
the corporate governance statement as other information are
described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded
that each of the following elements of the corporate governance
statement, included within the Directors’ report is materially consistent
with the financial statements and our knowledge obtained during the
audit, and we have nothing material to add or draw attention to in
relation to:
– The directors’ confirmation that they have carried out a robust
assessment of the emerging and principal risks;
– The disclosures in the Annual Report that describe those principal
risks, what procedures are in place to identify emerging risks and an
explanation of how these are being managed or mitigated;
– The directors’ statement in the financial statements about whether
they considered it appropriate to adopt the going concern basis of
accounting in preparing them, and their identification of any material
uncertainties to the Group’s and Parent Company’s ability to
continue to do so over a period of at least twelve months from the
date of approval of the financial statements;
– The directors’ explanation as to their assessment of the Group's and
Parent Company’s prospects, the period this assessment covers and
why the period is appropriate; and
– The directors’ statement as to whether they have a reasonable
expectation that the Parent Company will be able to continue in
operation and meet its liabilities as they fall due over the period of its
assessment, including any related disclosures drawing attention to
any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term
viability of the Group and Parent Company was substantially less in
scope than an audit and only consisted of making inquiries and
– The directors’ statement that they consider the Annual Report, taken
as a whole, is fair, balanced and understandable, and provides the
information necessary for the members to assess the Group’s and
Parent Company’s position, performance, business model and
strategy;
– The section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems; and
– The section of the Annual Report describing the work of the Audit
Committee.
We have nothing to report in respect of our responsibility to report
when the directors’ statement relating to the Parent Company’s
compliance with the Code does not properly disclose a departure from
a relevant provision of the Code specified under the Listing Rules for
review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of directors’ responsibilities,
the directors are responsible for the preparation of the financial
statements in accordance with the applicable framework and for
being satisfied that they give a true and fair view. The directors are also
responsible for such internal control as they determine is necessary to
enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for
assessing the Group’s and the Parent Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or the Parent Company
or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with
laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud,
is detailed below.
Based on our understanding of the Group and industry, we identified
that the principal risks of non-compliance with laws and regulations
related to the failure to comply with environmental regulations, health
and safety regulations and anti-bribery and corruption laws, and we
considered the extent to which non-compliance might have a material
effect on the financial statements. We also considered those laws and
regulations that have a direct impact on the financial statements such
as the Companies Act 2006 and applicable tax legislation in the
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Independent auditors’ report to the members of Anglo American plc
221
Appointment
Following the recommendation of the Audit Committee, we were
appointed by the members on 5 May 2020 to audit the financial
statements for the year ended 31 December 2020 and subsequent
financial periods. The period of total uninterrupted engagement is
four years, covering the years ended 31 December 2020 to
31 December 2023.
Other matter
In due course, as required by the Financial Conduct Authority
Disclosure Guidance and Transparency Rule 4.1.14R, these financial
statements will form part of the ESEF-prepared annual financial report
filed on the National Storage Mechanism of the Financial Conduct
Authority in accordance with the ESEF Regulatory Technical Standard
(‘ESEF RTS’). This auditors’ report provides no assurance over whether
the annual financial report will be prepared using the single electronic
format specified in the ESEF RTS.
Mark King (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
21 February 2024
jurisdictions in which the Group has material operations. We evaluated
management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of override
of controls), and determined that the principal risks were related to
posting inappropriate journal entries and management bias in
accounting estimates. The Group engagement team shared this risk
assessment with the component auditors so that they could include
appropriate audit procedures in response to such risks in their work.
Audit procedures performed by the Group engagement team and/or
component auditors included:
– Understanding and evaluating the design and implementation of
controls designed to prevent and detect irregularities and fraud;
– Inquiry of management, Internal Audit and the Group’s legal
advisors regarding their consideration of known or suspected
instances of non-compliance with laws and regulations and fraud;
– Identifying and testing journal entries, in particular any journal entries
posted with unusual account combinations; and
– Challenging assumptions and judgements made by management in
respect of significant accounting judgements and estimates, and
assessing these judgements and estimates for management bias.
There are inherent limitations in the audit procedures described above.
We are less likely to become aware of instances of non-compliance
with laws and regulations that are not closely related to events and
transactions reflected in the financial statements. Also, the risk of not
detecting a material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve deliberate
concealment by, for example, forgery or intentional misrepresentations,
or through collusion.
Our audit testing might include testing complete populations of certain
transactions and balances, possibly using data auditing techniques.
However, it typically involves selecting a limited number of items for
testing, rather than testing complete populations. We will often seek
to target particular items for testing based on their size or risk
characteristics. In other cases, we will use audit sampling to enable
us to draw a conclusion about the population from which the sample
is selected.
A further description of our responsibilities for the audit of the financial
statements is located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our auditors’
report.
Use of this report
This report, including the opinions, has been prepared for and only for
the Parent Company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other
purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in
our opinion:
– we have not obtained all the information and explanations we
require for our audit; or
– adequate accounting records have not been kept by the Parent
Company, or returns adequate for our audit have not been received
from branches not visited by us; or
– certain disclosures of directors’ remuneration specified by law are
not made; or
– the Parent Company financial statements and the part of the
Directors’ remuneration report to be audited are not in agreement
with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
222
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Primary statements
Consolidated income statement
for the year ended 31 December 2023
US$ million
Revenue
Operating costs
Operating profit
Non-operating special items
Net income from associates and joint ventures
Profit before net finance costs and tax
Investment income
Interest expense
Other net financing gains/(losses)
Net finance costs
Profit before tax
Income tax expense
Profit for the financial year
Attributable to:
Non-controlling interests
Equity shareholders of the Company
Earnings per share (US$)
Basic
Diluted
Before special
items and
remeasurements
Special items and
remeasurements
(note 9)
Note
2023
Total
Before special
items and
remeasurements
Special items and
remeasurements
(note 9)
2022
Total
2
30,656
(4)
30,652
(24,100)
(2,648)
(26,748)
(2,652)
3,904
(100)
—
(100)
378
35,127
(24,203)
10,924
—
641
(9)
35,118
(1,672)
(25,875)
(1,681)
9,243
(77)
—
(77)
641
(2,752)
4,182
11,565
(1,758)
9,807
—
—
(31)
(31)
427
(990)
(24)
(587)
(2,783)
3,595
86
(2,251)
(2,697)
1,344
214
(515)
(41)
(342)
11,223
(3,570)
7,653
—
—
15
15
214
(515)
(26)
(327)
(1,743)
9,480
114
(3,456)
(1,629)
6,024
6,556
—
378
6,934
427
(990)
7
(556)
6,378
(2,337)
4,041
1, 2
9
2, 14
4
5
27
1,109
2,932
(48)
1,061
(2,649)
283
1,617
6,036
(107)
(1,522)
1,510
4,514
3
3
2.42
2.40
(2.19)
(2.17)
0.23
0.23
4.97
4.92
(1.25)
(1.24)
3.72
3.68
Consolidated statement of comprehensive income
for the year ended 31 December 2023
US$ million
Profit for the financial year
Items that will not be reclassified to the income statement (net of tax)(1)
Remeasurement of net retirement benefit obligation
Net revaluation (loss)/gain on equity investments
Items that have been or may subsequently be reclassified to the income statement (net of tax)(1)
Net exchange differences:
Net loss (including associates and joint ventures)
Cumulative loss transferred to the income statement on disposal of foreign operations
Revaluation of cash flow hedges:
Net revaluation loss
Other comprehensive loss for the financial year (net of tax)
Total comprehensive income for the financial year (net of tax)
Attributable to:
Non-controlling interests
Equity shareholders of the Company
(1) Tax amounts are shown in note 5C.
2023
1,344
2022
6,024
(53)
(40)
(207)
20
(938)
(1,153)
9
—
(11)
(80)
(1,033)
(1,420)
311
4,604
850
(539)
1,285
3,319
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Primary statements
223
Consolidated balance sheet
as at 31 December 2023
US$ million
ASSETS
Non-current assets
Intangible assets
Property, plant and equipment
Environmental rehabilitation trusts
Investments in associates and joint ventures
Financial asset investments
Inventories
Trade and other receivables
Deferred tax assets
Derivative financial assets
Pension asset surplus and other non-current assets
Total non-current assets
Current assets
Inventories
Trade and other receivables
Current tax assets
Derivative financial assets
Current financial asset investments
Cash and cash equivalents
Total current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Short term borrowings
Provisions for liabilities and charges
Current tax liabilities
Derivative financial liabilities
Total current liabilities
Non-current liabilities
Trade and other payables
Medium and long term borrowings
Royalty liability
Retirement benefit obligations
Deferred tax liabilities
Derivative financial liabilities
Provisions for liabilities and charges
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Called-up share capital
Share premium account
Own shares
Other reserves
Retained earnings
Equity attributable to equity shareholders of the Company
Non-controlling interests
Total equity
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Note
2023
2022
(restated)(1)
11
12
16, 24
14
15
18
19
17
24
18
19
24
15
21
20
21, 22
16
24
20
21, 22
24
29
17
24
16
1,479
43,949
108
1,066
391
847
467
262
238
410
49,217
6,387
4,516
170
118
48
6,088
17,327
66,544
2,828
41,125
107
1,056
390
809
440
198
49
469
47,471
6,598
4,483
201
204
38
8,412
19,936
67,407
(6,511)
(1,740)
(684)
(326)
(94)
(9,355)
(189)
(15,172)
(578)
(531)
(5,580)
(648)
(2,874)
(25,572)
(7,380)
(1,420)
(684)
(569)
(441)
(10,494)
(249)
(12,945)
(510)
(510)
(5,249)
(888)
(2,609)
(22,960)
(34,927)
(33,454)
31,617
33,953
26
26
27
734
2,558
(6,275)
(12,820)
40,860
25,057
6,560
31,617
734
2,558
(6,272)
(12,070)
42,368
27,318
6,635
33,953
The financial statements of Anglo American plc, registered number 03564138, were approved by the Board of directors on 21 February 2024
and signed on its behalf by:
Duncan Wanblad
Chief Executive
John Heasley
Finance Director
224
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Primary statements
Consolidated cash flow statement
for the year ended 31 December 2023
US$ million
Cash flows from operating activities
Profit before tax
Net finance costs including financing special items and remeasurements
Net income from associates and joint ventures
Non-operating special items
Operating profit
Revenue and operating special items and remeasurements
Cash element of special items
Depreciation and amortisation
Share-based payment charges
Increase in provisions and net retirement benefit obligations
Decrease/(increase) in inventories
Increase in operating receivables
(Decrease)/increase in operating payables
Other adjustments
Cash flows from operations
Dividends from associates and joint ventures
Dividends from financial asset investments
Income tax paid
Net cash inflows from operating activities
Cash flows from investing activities
Expenditure on property, plant and equipment
Cash flows used in derivatives related to capital expenditure
Proceeds from disposal of property, plant and equipment
Investments in associates and joint ventures
Expenditure on intangible assets
Net issuance of financial asset investments
Interest received and other investment income
Net cash outflow on acquisitions
Net cash inflow on disposals
Other investing activities
Net cash used in investing activities
Cash flows from financing activities
Interest paid
Cash flows used in derivatives related to financing activities
Dividends paid to Company shareholders
Distributions paid to non-controlling interests
Proceeds from issuance of bonds
Proceeds from other borrowings
Capital repayment of lease obligations
Repayments of bonds and borrowings
Purchase of shares by Group companies
Other financing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at start of year
Cash movements in the year
Effects of changes in foreign exchange rates
Cash and cash equivalents at end of year
Note
2023
2022
4
14
9
1
9
3,595
587
(378)
100
3,904
2,652
(89)
1
2,685
175
25
2
(384)
(785)
(70)
9,480
327
(641)
77
9,243
1,681
(12)
2,446
215
250
(1,776)
(374)
48
168
14
13
13
13
14
15
34
21
6
27
8,115
11,889
379
3
602
—
(2,001)
(2,726)
6,496
9,765
(5,876)
(6,191)
(3)
16
(15)
(133)
(63)
377
(10)
210
(63)
—
7
(37)
(129)
(142)
181
—
564
(70)
(5,560)
(5,817)
(701)
(605)
(1,564)
(978)
1,950
1,113
(420)
(1)
(3,549)
(1,794)
1,963
1,537
(309)
(266)
(1,650)
(1,098)
(274)
(205)
(527)
(213)
(3,223)
(4,368)
(2,287)
(420)
21
8,400
(2,287)
(39)
21
6,074
9,057
(420)
(237)
8,400
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Primary statements
225
Consolidated statement of changes in equity
for the year ended 31 December 2023
US$ million
At 31 December 2021
Adoption of amendments to IAS 12 (see note 39A)
—
—
(43)
—
3,295
(6,141)
41,716
(11,696)
3,295
(6,141)
41,673
(11,696)
Total share
capital(1)
Own
shares(2)
Retained
earnings
Cumulative
translation
adjustment
reserve
Other
reserves
(note 26)
Total equity
attributable
to equity
shareholders
of the
Company
Non-
controlling
interests
Total equity
(183)
(963)
(49)
(1,195)
(225)
(1,420)
651
—
651
—
27,825
6,945
34,770
(43)
(28)
(71)
27,782
4,514
6,917
1,510
34,699
6,024
—
1
—
3
(17)
589
—
(3,549)
(1,566)
(5,115)
339
(527)
—
(46)
(1)
—
—
—
338
(527)
—
(46)
27,318
283
6,635
1,061
33,953
1,344
4,514
—
(3,549)
(59)
—
—
(28)
—
—
—
—
—
283
—
(45)
(730)
(47)
(822)
(211)
(1,033)
(1,564)
(137)
—
(38)
(7)
—
—
—
—
—
—
25
—
—
2
(1,564)
(957)
(2,521)
160
(275)
(38)
(5)
(3)
—
37
(2)
157
(275)
(1)
(7)
—
—
—
—
—
(3)
—
—
—
—
397
(527)
—
(1)
—
—
—
—
—
—
—
—
—
—
272
(275)
—
—
3,292
(6,275)
40,860
(13,389)
569
25,057
6,560
31,617
At 1 January 2022 (restated)
Profit for the year
Other comprehensive loss
Dividends
Equity settled share-based payment schemes(3)
Treasury shares purchased(3)
Shares cancelled during the year
Other
Profit for the year
Other comprehensive loss
Dividends
Equity settled share-based payment schemes
Treasury shares purchased
Change in ownership interest in subsidiaries
Other
At 31 December 2023
(1)
Includes share capital and share premium.
At 31 December 2022 (restated)
3,292
(6,272)
42,368
(12,659)
(2) Own shares comprise shares of Anglo American plc held by the Company, its subsidiaries and employee benefit trusts (note 26).
(3) The prior year equity settled share-based payment schemes were presented net of treasury shares purchased. Comparatives were re-presented to align with the current presentation.
226
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Financial performance
Profit attributable to equity shareholders
decreased by 94% to $283 million
(2022: $4,514 million).
Underlying earnings decreased by 51% to
$2,932 million (2022: $6,036 million).
Profit attributable to equity shareholders
$0.3 bn
(2022: $4.5 bn)
The following disclosures provide further information about the
drivers of the Group’s financial performance in the year. This
includes analysis of the respective contribution of the Group’s
reportable segments along with information about its
operating cost base, net finance costs and tax. In addition,
disclosure on earnings per share and the dividend is provided.
1. Operating profit from subsidiaries and joint operations
Overview
US$ million
Revenue before special items and remeasurements
Operating costs:
Employee costs
Depreciation of property, plant and equipment
Amortisation of intangible assets
Third-party commodity purchases
Consumables, maintenance and production input costs
Logistics, marketing and selling costs
Royalties
Exploration and evaluation
Net foreign exchange gains/(losses)
Other operating income
Other operating expenses
Operating profit before special items and remeasurements
Revenue special items and remeasurements
Operating special items and remeasurements
Operating profit
Note
2023
30,656
2022
35,127
28
(3,839)
(2,623)
(62)
(4,488)
(7,464)
(2,749)
(971)
(319)
45
190
(3,630)
(2,401)
(45)
(6,350)
(5,492)
(2,898)
(1,238)
(322)
(6)
313
(1,820)
(2,134)
6,556
10,924
(4)
(9)
(2,648)
(1,672)
3,904
9,243
9
9
Royalties exclude items which meet the definition of income tax on profit and which have been accounted for as taxes. Exploration and evaluation
excludes associated employee costs. The full exploration and evaluation expenditure (including associated employee costs) is presented in the
table below:
Operating profit before special items and remeasurements is stated after charging:
US$ million
Exploration expenditure
Evaluation expenditure
Research and development expenditure
Provisional pricing adjustment
2023
(145)
(197)
(147)
(6)
2022
(155)
(191)
(167)
(96)
Accounting policy
See note 39C for the Group’s accounting policy on revenue and exploration and evaluation expenditure.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
227
Financial performance
2. Financial performance by segment
Overview
The Group’s operating segments are aligned to those businesses that are evaluated regularly by the chief operating decision maker in deciding
how to allocate resources and in assessing performance. Operating segments with similar economic characteristics are aggregated into
reportable segments.
The Group aggregates the following operating segments into reportable segments:
– Kumba Iron Ore and Iron Ore Brazil are aggregated into Iron Ore
– Copper Chile and Copper Peru are aggregated into Copper.
Shipping revenue related to shipments of the Group’s products is shown within the relevant operating segment. Revenue from other marketing
and trading activities from shipping and energy solutions within the Marketing business is presented within the ‘Corporate and other’ segment,
which also includes unallocated corporate costs and exploration costs.
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
Segment results
US$ million
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Less: associates and joint ventures
Subsidiaries and joint operations
Reconciliation:
Net income from associates and joint ventures
Special items and remeasurements
Revenue
Profit before net finance costs and tax
Profit attributable to equity shareholders of the Company
US$ million
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Less: associates and joint ventures
Subsidiaries and joint operations
Reconciliation:
Net income from associates and joint ventures
Special items and remeasurements
Revenue
Profit before net finance costs and tax
Profit attributable to equity shareholders of the Company
Group
revenue
7,360
653
6,734
4,267
8,000
4,153
670
225 (1)
440
32,502
(1,846)
30,656
(4)
30,652
Group
revenue
5,599
858
10,096
6,622
7,534
5,034
840
254 (1)
554
37,391
Underlying
EBITDA
3,233
133
1,209
72
4,013
1,320
231
(60)
(193)
Depreciation
and
amortisation
Underlying
EBIT
2,451
62
855
(252)
3,549
822
145
(61)
(403)
(782)
(71)
(354)
(324)
(464)
(498)
(86)
(1)
(210)
9,958
(717)
9,241
(2,790)
105
(2,685)
7,168
(612)
6,556
Net finance
costs and
income tax
expense
(1,127)
3
(226)
(113)
(987)
(138)
(77)
(14)
(447)
(3,126) (2)
233
(2,893)
2023
Non-
controlling
interests
Underlying
earnings
1,099
65
448
(314)
1,792
684
66
(75)
(833)
(225)
—
(181)
51
(770)
—
(2)
—
17
(1,110)
1
(1,109)
2,932
(378)
2,554
378
(2,649)
283
2022
378
(2,752)
4,182
Underlying
EBIT
1,595
317
4,052
994
2,962
2,369
312
(45)
(593)
11,963
Depreciation
and
amortisation
Net finance
costs and
income tax
expense
Non-
controlling
interests
Underlying
EBITDA
2,182
381
4,417
1,417
3,455
2,749
378
(44)
(440)
14,495
(587)
(64)
(365)
(423)
(493)
(380)
(66)
(1)
(153)
(2,532)
Underlying
earnings
760
259
2,266
552
1,337
1,640
148
(51)
(875)
6,036
(151)
—
(654)
(108)
(698)
—
(3)
—
(6)
(1,620)
3
(641)
(684)
(58)
(1,132)
(334)
(927)
(729)
(161)
(6)
(276)
(4,307) (2)
395
(2,264)
(1,125)
86
(1,039)
35,127
13,370
(2,446)
10,924
(3,912)
(1,617)
5,395
(9)
35,118
641
(1,758)
9,807
641
(1,522)
4,514
(1) Group revenue in respect of Crop Nutrients principally relates to revenue from its associate, The Cibra Group, a fertiliser distributor based in Brazil.
(2) Comprises net finance costs of $593 million (2022: $358 million) and income tax expense of $2,533 million (2022: $3,949 million).
The segment results are stated after elimination of inter-segment interest and dividends and include an allocation of corporate costs.
228
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Financial performance
2. Financial performance by segment continued
Further information
Group revenue by product
Segments predominantly derive revenue as follows – Copper: copper; De Beers: rough and polished diamonds; Platinum Group Metals: platinum
group metals and nickel; Iron Ore: iron ore; Steelmaking Coal: steelmaking coal; Nickel: nickel; Manganese: manganese ore. Revenue reported
within Corporate and other includes margins from marketing and trading activities in the Group’s Energy Solutions activities and shipping services
provided to third parties. See note 39C for the Group’s accounting policy on revenue recognition.
Other revenue principally relates to iridium, gold, ruthenium and molybdenum. The revenue analysis below includes the Group’s share of revenue
in equity accounted associates and joint ventures excluding special items and remeasurements. See note 14.
US$ million
Copper
Nickel
Platinum
Palladium
Rhodium
Diamonds
Iron ore
Steelmaking coal
Thermal coal(1)
Manganese ore
Shipping
Other
Reconciliation:
Less: Revenue from associates and joint ventures
Special items and remeasurements
Revenue
Revenue from
contracts with
customers
6,824
1,046
1,723
1,681
1,509
4,198
6,548
3,155
213
—
1,115
1,770
29,782
—
—
29,782
Revenue from
other sources
86
47
8
9
22
69
606
755
169
670
—
279
2,720
2023
Group
revenue
6,910
1,093
1,731
1,690
1,531
4,267
7,154
3,910
382
670
1,115
2,049
32,502
(1,846)
(1,846)
Revenue from
contracts with
customers
5,247
1,422
1,680
2,542
4,066
6,608
6,597
3,544
495
—
1,362
1,484
35,047
—
—
Revenue from
other sources
(80)
15
6
6
21
14
(45)
990
188
840
—
389
2,344
2022
Group
revenue
5,167
1,437
1,686
2,548
4,087
6,622
6,552
4,534
683
840
1,362
1,873
37,391
(2,264)
(2,264)
(9)
71
(9)
35,118
(4)
870
(4)
30,652
35,047
(1) For the year ended 31 December 2023, thermal coal represents 1% of Group revenue and comprises sales volumes of 15.3Mt. These arise from transitional marketing support provided to
Thungela Resources, purchases from other third parties included within the Marketing business’ energy solutions activities, and secondary product sales from the Steelmaking Coal business.
Revenue from other sources for subsidiaries and joint operations of $870 million (2022: $71 million) includes net fair value gains relating to
derivatives of $880 million (2022: net fair value gains of $176 million), net fair value losses relating to provisionally priced contracts of $6 million
and revenue remeasurements loss of $4 million (2022: $96 million and $9 million respectively). Derivative net gains/losses include both financial
derivatives and the net margin arising on contracts for the physical sale and purchase of third-party material (third-party sales) where these
contracts are accounted for as derivatives prior to settlement and are entered into to generate a trading margin.
Group revenue by destination
The Group’s geographical analysis of segment revenue is allocated based on the customer’s port of destination. Where the port of destination
is not known, revenue is allocated based on the customer’s country of domicile.
China
India
Japan
Other Asia
South Africa
Other Africa
Brazil
Chile
Other South America
North America
Australia
United Kingdom(1)
Other Europe
(1) United Kingdom is Anglo American plc’s country of domicile.
US$ million
9,891
2,275
3,783
5,710
833
1,403
923
882
63
1,230
103
1,902
3,504
32,502
2023
%
30%
7%
12%
18%
3%
4%
3%
3%
—
4%
—
6%
10%
100%
US$ million
8,965
2,798
5,542
6,944
1,312
2,080
986
811
10
1,160
309
1,502
4,972
37,391
2022
%
24%
7%
15%
18%
4%
6%
3%
2%
—
3%
1%
4%
13%
100%
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
229
Financial performance
3. Earnings per share
Overview
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
US$
Earnings per share
Basic
Diluted
Underlying earnings per share
Basic
Diluted
Headline earnings per share
Basic
Diluted
2023
2022
0.23
0.23
2.42
2.40
2.06
2.05
3.72
3.68
4.97
4.92
4.98
4.93
Further information
The calculation of basic and diluted earnings per share is based on the following data:
Earnings (US$ million)
Basic and diluted earnings
Weighted average number of shares (million)
Basic number of ordinary shares outstanding
Effect of dilutive potential ordinary shares
Diluted number of ordinary shares outstanding
Profit attributable to equity
shareholders of the Company
Underlying earnings
Headline earnings
2023
2022
2023
2022
2023
2022
283
4,514
2,932
6,036
2,496
6,050
1,214
6
1,220
1,215
11
1,226
1,214
6
1,220
1,215
11
1,226
1,214
6
1,220
1,215
11
1,226
The weighted average number of ordinary shares in issue is the weighted number of shares in issue throughout the year, and excludes shares
held by employee benefit trusts and Anglo American plc shares held by Group companies. The diluted number of ordinary shares outstanding,
including share options and awards, is calculated on the assumption of conversion of all dilutive potential ordinary shares. In the year ended
31 December 2023 there were 345,152 (2022: 342,939) share options that were potentially dilutive but not included in the calculation of diluted
earnings because they were anti-dilutive.
Headline earnings, a Johannesburg Stock Exchange defined performance measure, is reconciled from profit attributable to equity shareholders
of the Company as follows, and the reconciling items below are shown gross and net of tax and non-controlling interests:
US$ million
Profit attributable to equity shareholders of the Company
Special items and remeasurements
Underlying earnings for the financial year
Revenue remeasurements
Operating special items – restructuring
Operating remeasurements
Non-operating special items – charges relating to BEE transactions
Non-operating special items – remeasurement of deferred consideration
Non-operating special items – disposals
Financing special items and remeasurements
Tax special items and remeasurements
Other reconciling items
Headline earnings for the financial year
Gross
(4)
(142)
(86)
—
(17)
8
(31)
—
(4)
2023
Net
283
2,649
2,932
(3)
(131)
(82)
—
(14)
6
(31)
(183)
2
2,496
Gross
(9)
—
(80)
(10)
(111)
(3)
15
—
63
2022
Net
4,514
1,522
6,036
(14)
—
(72)
(9)
(73)
(4)
15
126
45
6,050
Other reconciling items principally comprise adjustments relating to business combinations in prior years partially offset by impairments in
De Beers (2022: relate to adjustments to former operations and disposals of Property, plant and equipment).
230
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Financial performance
4. Net finance costs
Overview
US$ million
Investment income
Interest income from cash and cash equivalents
Interest income from associates and joint ventures
Net interest income on defined benefit arrangements
Other interest income
Less: Interest income capitalised
Investment income
Interest expense
Interest and other finance expense
Lease liability interest expense
Net interest cost on defined benefit arrangements
Unwinding of discount relating to provisions and other liabilities
Less: Interest expense capitalised
Interest expense
Other net financing (losses)/gains
Net foreign exchange (losses)/gains
Other net fair value gains/(losses)
Other net financing gains/(losses) before special items and remeasurements
Financing remeasurements
Other net financing losses
Net finance costs
2023
2022
345
15
24
43
427
—
427
173
6
20
16
215
(1)
214
(1,322)
(721)
(62)
(42)
(79)
(1,505)
515
(990)
(51)
58
7
(31)
(24)
(42)
(45)
(86)
(894)
379
(515)
105
(146)
(41)
15
(26)
(587)
(327)
Further information
Interest income recognised on financial assets at amortised cost is $183 million (2022: $96 million) and interest expense recognised on financial
liabilities at amortised cost is $769 million (2022: $302 million).
Interest expense capitalised predominantly relates to US dollar denominated borrowings which were capitalised at a weighted average interest
rate of 7.1% (2022: 3.7%).
Included in other net fair value gains/losses is $46 million (2022: loss of $47 million) in respect of fair value gains on the revaluation of deferred
consideration balances relating to the Mototolo acquisition. Revaluation of deferred consideration balances are classified as special items and
remeasurements only when the original gain or loss on disposal or acquisition has been classified as a special item.
5.
Income tax expense
Overview
Calculation of effective tax rate (statutory basis)
Adjusted for:
Special items and remeasurements
Associates’ and joint ventures’ tax and non-controlling interests
Calculation of underlying effective tax rate
2023
Profit
before tax
US$ million
Tax charge
US$ million
Effective
tax rate
3,595
(2,251)
62.6%
2,783
197
6,575
(86)
(196)
(2,533)
38.5%
The underlying effective tax rate was 38.5% for the year ended 31 December 2023. This is higher than the underlying effective tax rate of 34.0%
for the year ended 31 December 2022. The underlying effective tax rate in 2023 was mainly impacted by the relative level of profits arising in the
Group’s operating jurisdictions.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
231
Financial performance
5. Income tax expense continued
Uncertainty and changes to tax regimes can materialise in any country in which we operate and the Group has no control over political acts,
actions of regulators, or changes in local tax regimes. Global and local economic and social conditions can have a significant influence on
governments’ policy decisions and these have the potential to change tax and other political risks faced by the Group.
A new Mining Royalty Bill in Chile was enacted during August 2023. This legislation creates a new mining royalty regime including both an
‘ad valorem tax’ and a ‘specific mining tax’. While current taxes do not start to accrue until 1 January 2024, the rebasing of the Group's
Chilean deferred taxes to reflect the impact of this new regime, has increased the Group's underlying effective tax rate for the year ended
31 December 2023 by 1.2 percentage points.
In line with our published Tax Strategy, the Group actively monitors tax developments at a national level, as well as global themes and
international policy trends, on a continuous basis, and has active engagement strategies with governments, regulators and other stakeholders
within the countries in which the Group operates, or plans to operate, as well as at an international level. This includes global tax reforms such as
those being agreed through the OECD’s Digitalisation of the Economy Project which seeks to reallocate taxing rights for large profitable groups
(‘Pillar 1’) and implement a minimum effective tax rate of 15% on profits of large multinational groups in each country in which they operate (‘Pillar
2’). On 23 March 2023, HM Treasury released draft legislation for the Global Minimum Tax rules in the UK which was enacted on 11 July 2023.
Although these rules will only apply to the Group from the financial year ended 31 December 2024 onwards, the Group has carried out an
assessment of its potential exposure to Pillar 2 taxes. This assessment is principally based on the application of the transitional safe harbour
exemptions within the UK's Pillar 2 legislation and uses data from the most recent submission of the Group’s Country-by-Country report, being for
the year ended 31 December 2022. As part of this assessment, the Group has adjusted for one-off events in the year ended 31 December 2022,
which are not expected to be repeated in future periods. The Group is not aware of any events in the current year ended 31 December 2023
which would give a materially different result. The assessment has identified a potential exposure where the Pillar 2 effective tax rate is estimated
to have been lower than 15%. This exposure is estimated to have had an impact of less than one percentage point to the Group's underlying
effective tax rate based on underlying profit before tax for 2022.
The Group continues to review legislation to evaluate the potential impact and is engaging with policymakers in efforts to ensure that guidance
and any required additional legislation is aligned to the stated policy objectives and that the Group is well placed to comply.
The Group has applied the mandatory temporary exception under IAS 12 in relation to the accounting for deferred taxes arising from the
implementation of the Pillar 2 rules.
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
A. Analysis of charge for the year
US$ million
United Kingdom tax
South Africa tax
Other overseas tax
Prior year adjustments
Current tax
Deferred tax
Income tax expense before special items and remeasurements
Special items and remeasurements tax (note 9)
Income tax expense
2023
165
585
1,074
(76)
1,748
589
2,337
(86)
2,251
2022
106
1,409
1,128
(80)
2,563
1,007
3,570
(114)
3,456
Current tax includes royalties which meet the definition of income tax and are in addition to royalties recorded in operating costs.
232
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Financial performance
5. Income tax expense continued
B. Factors affecting tax charge for the year
The reconciling items between the statutory corporation tax rate and the income tax expense are:
US$ million
Profit before tax
Less: Net income from associates and joint ventures
Profit before tax (excluding associates and joint ventures)
Tax calculated at the weighted average annual statutory rate of corporation tax in the United Kingdom of 23.5% (2022:
19.0%)
Tax effects of:
Items non-deductible/taxable for tax purposes
Temporary difference adjustments
Current year losses and temporary differences not recognised
Recognition of losses and temporary differences not previously recognised
Utilisation of losses and temporary differences not previously recognised
Write-off of losses and temporary differences previously recognised
Other temporary differences
Special items and remeasurements
Functional currency remeasurements (note 9)
Taxable income on intercompany loan write-off
Utilisation of losses and other temporary differences not previously recognised against intercompany loan write-off income
Other special items and remeasurements
Other adjustments
Withholding taxes
Effect of differences between local and United Kingdom tax rates
Prior year adjustments to current tax
Other adjustments
Income tax expense
2023
3,595
(378)
3,217
2022
9,480
(641)
8,839
756
1,679
61
(2)
523
(96)
(25)
33
105
(119)
—
—
687
108
396
(76)
(102)
390
(6)
(55)
54
(23)
(72)
298
(298)
289
104
1,176
(80)
2
2,251
3,456
The special items and remeasurements reconciling charge of $568 million (2022: $217 million) relates to the net tax impact of total special items
and remeasurements before tax calculated at the United Kingdom corporation tax rate less the associated tax recorded against these items and
tax special items and remeasurements.
Included within withholding taxes for the year ended 31 December 2023 is a charge of $2 million (2022: credit of $67 million) due to
a reassessment of future dividend distributions.
Associates’ and joint ventures’ tax included within Net income from associates and joint ventures for the year ended 31 December 2023 is
a charge of $196 million (2022: $379 million). Excluding special items and remeasurements, this remains a charge of $196 million
(2022: $379 million).
C. Tax amounts included in other comprehensive income
The Consolidated statement of comprehensive income includes a tax credit on the remeasurement of net retirement benefit obligations
recognised directly in equity that will not be reclassified to the income statement of $18 million (2022: $80 million). In addition, there is a tax credit
on the net revaluation credit on equity investments recognised directly in equity that will not subsequently be reclassified to the income statement
of $1 million (2022: $3 million).
D. Tax amounts recognised directly in equity
In 2023, deferred tax of $6 million (2022: $6 million) was charged directly to equity mainly in relation to movements in share-based payments.
Accounting judgement
The Group’s tax affairs are governed by complex domestic tax legislations, international tax treaties between countries and the interpretation of
these by tax authorities and courts. Given the many uncertainties that could arise from these factors, judgement is often required in determining
the tax that is due. Where management is aware of potential uncertainties, and where it is judged not probable that the taxation authorities would
accept the uncertain tax treatment, a provision is made following the appropriate requirements set out in IFRIC 23 Uncertainty over income tax
treatments, and determined with reference to similar transactions and, in some cases, reports from independent experts.
Accounting policy
See note 39G for the Group’s accounting policy on tax.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
233
Financial performance
6. Dividends
Proposed final ordinary dividend per share (US cents)
Proposed final ordinary dividend (US$ million)
These financial statements do not reflect the proposed final ordinary dividend as it is still subject to shareholder approval.
Dividends paid during the year are as follows:
US$ million
Final ordinary dividend for 2022 – 74 US cents per ordinary share (2021: 118 US cents per ordinary share)
Final special dividend for 2021 – 50 US cents per ordinary share
Interim ordinary dividend for 2023 – 55 US cents per ordinary share (2022: 124 US cents per ordinary share)
2023
41
500
2022
74
905
2023
905
—
659
1,564
2022
1,440
612
1,497
3,549
As at the dividend record date, there are forecasted to be 1,219,991,762 (2022: 1,222,809,154) dividend bearing shares in issue.
234
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Significant items
Special items and remeasurements are a net
charge of $2.6 billion and include a $1.6 billion
impairment of De Beers assets and a $0.8 billion
impairment of Nickel assets.
Special items and remeasurements loss
$2.6 bn
(2022: $1.5 bn)
During 2023, the significant accounting judgements and
estimates made by management included:
– The assessment of impairment and impairment
reversal indicators
– The estimation of recoverable amount for impairment testing
7. Significant accounting matters
Management necessarily makes judgements and estimates that can
have a significant impact on the financial statements. The significant
judgements and key sources of estimation uncertainty that affect the
results for the year ended 31 December 2023 are set out below and
relate to the impairment and impairment reversal of assets. In addition
to these items, information about other judgements and estimates
determined by management is provided, where applicable, in the
relevant note to the financial statements.
The Group also considers the impact of climate change on judgements
and estimates. Although not a key judgement or estimate in itself,
climate change potentially impacts a number of judgements and
estimates made by the Group, particularly where these are reliant on
longer term forecasts.
Significant accounting judgements and estimates
Impairment and impairment reversals of assets
Significant accounting judgement – identification of impairment and
impairment reversal indicators
The Group assesses at each reporting date whether there are any
indicators that its assets and cash generating units (CGUs) may be
impaired, or that an impairment reversal is required for previously
impaired assets and CGUs (other than goodwill). Assets which have
previously been impaired are generally carried on the balance sheet at
a value close to their recoverable amount at the last assessment.
Therefore in principle any change in operational assumptions or
economic parameters could result in further impairment or impairment
reversal if an indicator is identified.
The assessment considers a wide range of potential indicators,
including revisions to forecast operating performance, changes to
capital projects, the impact of external factors such as tax rates for
relevant geographies and both the Group’s internal long term
economic forecasts and external market data. Judgement is required
to determine whether the updates represent significant changes in the
service potential of an asset or CGU, and are therefore indicators of
impairment or impairment reversal.
Particular judgement may be required to determine whether multiple
changes are linked to the same underlying factor and hence should be
assessed together, for example where inflationary pressures lead to
offsetting increases in both forecast revenues and costs. The Group
uses quantitative data and sensitivity analysis using discounted
cashflow models to inform these judgements where relevant.
For certain previously impaired assets where an impairment or
impairment reversal trigger has not been identified at
31 December 2023, it is reasonably possible that an impairment
or reversal trigger, and hence a potential material adjustment to
the carrying value, may arise within the next twelve months. Further
information about these assets is provided below:
Woodsmith
The Woodsmith polyhalite project is currently under construction and
has recognised previous impairments of $1.7 billion (2022) which
remain eligible for potential impairment reversal. The valuation remains
inherently sensitive to changes in economic and operational
assumptions, in particular the forecast polyhalite price and discount
rate. The Group has reassessed key input assumptions as at
31 December 2023. At this stage the Group believes the
assumptions for these key inputs used in the valuation prepared at
31 December 2022 remain appropriate and hence no indicators of
impairment or reversal have been identified.
Moranbah-Grosvenor
Moranbah-Grosvenor is a CGU within the Steelmaking Coal segment
and has recognised previous impairments of $0.1 billion which remain
eligible for potential impairment reversal. The asset valuation is
inherently sensitive to changes in economic and operational
assumptions, in particular the steelmaking coal price and the AUD/
USD exchange rate. The Group has reviewed operational and
macroeconomic developments in the year, including the potential
impact of global decarbonisation efforts in response to climate change
on forecast steelmaking coal prices, and concluded that there are no
indicators of impairment or impairment reversal.
Significant accounting estimate – estimation of recoverable amount
Where indicators of impairment or impairment reversal are identified
(or at least annually for goodwill and indefinite life assets), the Group
performs impairment reviews to assess the recoverable amount of the
relevant operating assets. The recoverable amount is assessed with
reference to fair value less costs of disposal, as this is higher than the
value in use model for the Group’s assets. The fair value less cost of
disposal is estimated with reference to the share price of listed
subsidiaries, where appropriate, and for other assets is based on
discounted cash flow models. The expected future cash flows used in
these models are inherently uncertain and could materially change
over time. They may be significantly affected by a number of factors
including Ore Reserves and Mineral Resources, together with
economic factors such as commodity prices, exchange rates, discount
rates and estimates of production costs and future capital expenditure.
Where discounted cash flow models based on management’s
assumptions are used, the resulting fair value measurements are
considered to be at level 3 in the fair value hierarchy, as defined in IFRS
13 Fair Value Measurement, as they depend to a significant extent on
unobservable valuation inputs.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
235
Significant items
7. Significant accounting matters continued
Cash flow projections are based on financial budgets and Life of Asset
Plans or, for non-mine assets, an equivalent appropriate long term
forecast, incorporating key assumptions as detailed below:
– Ore Reserves and Mineral Resources
Ore Reserves and, where considered appropriate, Mineral
Resources are incorporated in projected cash flows, based on Ore
Reserves and Mineral Resources statements and exploration and
evaluation work undertaken by appropriately qualified persons.
Mineral Resources are included where management has a high
degree of confidence in their economic extraction, despite
additional evaluation still being required prior to meeting the
required confidence to convert to Ore Reserves. Risk adjustments
are applied to the inclusion of these resources where appropriate.
For further information refer to the unaudited Ore Reserves and
Mineral Resources Report 2023.
– Commodity and product prices
Commodity and product prices are based on latest internal
forecasts, benchmarked with external sources of information such
as the range of available analyst forecasts and for the short term,
spot prices where applicable. In estimating the forecast cash flows,
management also takes into account the expected realised price
from existing contractual arrangements. Price forecasts are made
with reference to the impact of climate change on supply and
demand fundamentals for each commodity but are not aligned to
any particular emissions scenario.
– Foreign exchange rates
Foreign exchange rates are based on latest internal forecasts,
benchmarked with external sources of information for relevant
countries of operation or directly from external forecasts.
– Discount rates
Cash flow projections used in fair value less costs of disposal
impairment models are discounted based on real post-tax discount
rates, assessed annually. Adjustments to the rates are made for any
risks that are not reflected in the underlying cash flows, including the
risk profile of the individual asset and country risk.
– Operating costs, capital expenditure and other operating factors
Operating costs and capital expenditure are based on the most
recently approved financial budgets. Cash flow projections beyond
the budget period are based on Life of Asset Plans, as applicable,
and internal management forecasts. Cost assumptions incorporate
management experience and expectations, as well as the nature
and location of the operation and the risks associated therewith
(for example, the grade of Ore Reserves varying significantly over
time and unforeseen operational issues). Underlying input cost
assumptions are consistent with related output price assumptions.
Other operating factors, such as the timelines of granting licences
and permits, are based on management’s best estimate of the
outcome of uncertain future events at the balance sheet date.
Where an asset has potential for future development through capital
investment, to which a market participant would attribute value, and
the costs and economic benefits can be estimated reliably, this
development is included in the recoverable amount (with appropriate
risk adjustments).
Significant estimate: sensitivity disclosures
The recoverable amounts of the following assets are considered to be
significant accounting estimates as a material impairment or an
impairment reversal could arise within the next twelve months due to a
realistic change in assumptions:
– De Beers
– Barro Alto
– Minas-Rio.
Key input and sensitivity information for these assets is provided in
note 8.
Climate change
Tackling climate change is the defining challenge of our time and
understanding and addressing the implications of climate change for
our business is embedded in our strategy. The Group’s response to
climate change is implemented at an asset-level through the Group’s
Sustainable Mining Plan and related Life of Asset Plans. Climate
change potentially impacts judgements and estimates made when
preparing the Group’s financial statements. Potential impacts arise in
three principal areas; physical risk such as extreme weather events or
long term changes in climate patterns, transition risk as demand shifts
between commodities and the Group’s climate ambitions as the
financial impact of climate targets is reflected in operational decisions
and cost structures.
The estimation of recoverable amounts for the Group’s non-current
assets is currently the only judgement or estimate which is materially
impacted by climate change. Further information about this estimate,
together with additional information in other areas which may be
impacted in the medium to long term, is provided below:
Judgement/Estimate
Estimation of recoverable amounts
Useful economic lives of non-current assets
Net realisable value of inventory
Measurement of rehabilitation and
decommissioning provisions
↟ Significant impact on judgement/estimate
↥ Moderate impact on judgement/estimate
— Limited impact on judgement/estimate
Physical
Risk
Transition
Risk
↥
_
_
↥
↟
↥
_
↥
Estimation of recoverable amounts
Physical risk
The cashflow forecasts used to determine the recoverable amount of
the Group’s assets reflect our current best-estimate of the impact of
material physical risks. The most significant impacts generally relate to
managing either an excess or scarcity of water resources and the
resulting impact on production levels. Cashflow forecasts also include
the costs (and benefits) of risk mitigation actions included in the Life of
Asset Plan, such as water purchases and the cost of new infrastructure.
These forecasts may be revised in future periods as the Group
continues its programme of detailed site-specific monitoring and
assessments.
Transition risk
Transition risk may impact the recoverable amount of the Group’s
assets as forecast commodity prices are a key input in the discounted
cashflow models which are used to calculate the recoverable amount.
The Group’s discounted cashflow models are prepared on a fair value
less cost of disposal basis, which requires input assumptions to be
determined from the perspective of a market participant. While the
Group has confirmed the strategic and financial resilience of its
portfolio under a 1.5°C scenario as part of its Task Force on Climate-
Related Financial Disclosures (TCFD) reporting, this scenario is not
used for financial reporting purposes as it is not representative of
management’s best estimate of the likely assumptions that would be
used by a market participant when valuing the Group’s assets.
The Group has not performed a full assessment of the implications of
any resilience scenario on asset valuations used for financial reporting
purposes. While there is a wide range of possible transition impacts for
each level of warming depending on the assumptions made, we
anticipate that prices for the majority of the Group’s commodities
would be higher than existing forecasts in the short and medium term
under a 1.5°C scenario, driven by growing investment in infrastructure
associated with the transition to a low carbon economy while carbon
prices are also likely to be higher than existing forecasts.
236
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Significant items
7. Significant accounting matters continued
In the longer term, the more rapid decarbonisation of the steel value
chain under a 1.5°C scenario through higher steel recycling rates and
technological change would be expected to lead to lower benchmark
prices for both iron ore and steelmaking coal, although we anticipate
that for iron ore this may largely be offset by higher product premiums
for the Group’s high quality lump and high grade pellet-feed products
given these are particularly well-suited to less carbon intensive
steelmaking technologies. The valuation of the Group’s steelmaking
coal assets is less sensitive to changes in the long term price than other
operations given the remaining asset lives.
Increased demand for battery electric vehicles in a 1.5°C scenario may
also pose a downside risk to demand for the PGM-containing catalytic
converters used in internal combustion engine (ICE) vehicles, although
this is expected to be partly offset by hybrids, which require similar
quantities of PGMs, and in the longer term, fuel cell electric vehicles.
The recoverable amount of the Group’s PGM assets is currently
significantly in excess of their accounting carrying values, which makes
these carrying values less sensitive to changing valuation input
assumptions than other assets.
Climate ambitions and targets
The Group has announced a number of climate targets, which are
disclosed on pages 54-57.
When preparing valuation models on a fair value less cost of disposal
basis the Group generally assumes that any purchaser would retain
similar climate targets and ambitions. The Group therefore includes the
cost and commercial benefits of achieving its emissions reduction
ambitions and targets once the Group has a high degree of
confidence that a project is technically feasible and it is included in the
Life of Asset Plan, which typically aligns with the related capital project
being internally approved. This is consistent with the approach taken
for other key assumptions such as forecasted operating costs and
capital expenditures as outlined above.
Some projects relating to the Group’s climate targets and ambitions
are not included in the Life of Asset Plans, generally because it is not
yet possible to reliably estimate the costs and benefits or technical
feasibility has not been demonstrated. While the costs and benefits of
such projects are not included in cashflow forecasts (other than study
costs within the next five years), the Group includes an adjustment
within the forecast for the cost of unabated future Scope 1 and 2
emissions irrespective of whether each jurisdiction currently has a
carbon tax or similar regime in place. When new emissions reduction
projects are included in the Life of Asset Plan, the valuation impact of
including the related project’s cost is therefore offset by the removal of
the cost of the emissions.
Carbon prices are used both as an input into our commodity price
forecasts and in our forecast carbon cost for each operation. Carbon
costs included in the valuation of each asset are based on the forecast
carbon price per tonne/CO2e, multiplied by estimated Scope 1 and 2
emissions for the relevant operation. Short term carbon prices are
incorporated based on currently enacted legislation (where relevant).
Short term carbon prices for jurisdictions without currently enacted
legislation and long term prices for all jurisdictions are based on the
latest internal views of what a market participant would assess, formed
with reference to external forecasts. Separate carbon prices are used for
each region in which the Group operates. These internal prices range
between $20 and $95 per tonne (2023 real basis) by 2030.
The Group has an ambition to reduce its Scope 3 emissions by 50%
(against a 2020 baseline) by 2040. The Group has signed a number
of agreements with steel producers to explore how the Group’s high
quality iron ore and steelmaking coal products can facilitate the
decarbonisation of the steel value chain. The financial cost of these
agreements is incurred centrally and is not expected to be material to
the Group. It is therefore not included in asset-level valuation models.
Useful economic lives of non-current assets
Physical risk
Physical risk is not expected to have a material impact on the useful
economic lives of the Group’s assets based on the risk assessments
conducted to date, given the risk mitigation strategies in place.
Transition risk
Transition risk may impact the useful economic lives of the Group’s
mining properties if changing commodity prices extend or reduce the
period in which resources can be extracted from an orebody
economically. This would in turn impact the depreciation charge.
The depreciation charge relating to mining properties is $859 million.
Considering the alignment of the Group’s portfolio to future-enabling
products we believe any impact of transition risk is not likely to be
material.
The useful economic lives of other assets are generally shorter and
therefore less exposed to transition risk than mining properties.
Climate ambitions and targets
Any impact is not currently expected to be material as new
technologies will be phased in as existing equipment or other
infrastructure naturally come to the end of their life. The introduction of
new dual-fuelled LNG vessels into the Group’s shipping fleet has not
significantly impacted asset lives as vessels have previously been
leased for relatively short periods of up to two years.
Net realisable value of inventory
Physical risk
Any impact is not currently expected to be material.
Transition risk
Transition risk could result in the recognition of an impairment if falling
commodity prices mean that the net realisable value is lower than the
production cost at which inventory balances are generally recorded.
Notwithstanding this, the majority of the Group’s inventory is expected
to be used within one year and is therefore less exposed to transition
risk, which will principally impact prices in the medium and long term.
The Group’s long term inventory balances principally relate to the Iron
Ore and Nickel reportable segments. These commodities are future-
enabling for a more sustainable world and hence the carrying value of
related inventory is less likely to be impacted by climate change.
Climate ambitions and targets
Any impact is not currently expected to be material.
Measurement of rehabilitation and decommissioning provisions
Physical risk
Physical risk may impact the cost of rehabilitating the Group’s sites, for
example higher average rainfall may impact the water management
strategies required for the tailings storage facilities. Changing weather
patterns may also lead to increased rates of soil erosion and reduced
vegetation rates. Cashflow forecasts include the Group’s current best
estimate of the impact of such changes.
Transition risk
Transition risk may impact the useful economic lives of the Group’s
mines and hence the present value of rehabilitation and
decommissioning provisions by changing the period over which the
future costs are discounted. The Group has reviewed the sensitivity of
its provisions to changing asset lives and concluded that this does not
represent an area of material estimation uncertainty.
Climate ambitions and targets
Any impact is not expected to be material.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
237
Significant items
8.
Impairment and impairment reversals
Overview
The Group has recognised the following impairments as special items in the year ended 31 December 2023:
US$ million
Impairments
De Beers (Diamonds)
Barro Alto (Nickel)
Codemin (Nickel)
Kolomela (Iron Ore)
Woodsmith (Crop Nutrients)
Impairments recognised as special items
Impairment reversals
Moranbah-Grosvenor (Steelmaking Coal)
Dawson (Steelmaking Coal)
Impairment reversals recognised as special items
Net impairments recognised as special items
Before tax
Tax
Non-
controlling
interests
2023
2022
Net
Before tax
Net
(1,601)
(779)
(40)
—
—
12
235
—
—
—
31
(1,558)
—
—
—
—
(544)
(40)
—
—
(2,420)
247
31
(2,142)
—
—
—
—
—
—
(313)
(1,707)
(2,020)
(122)
(1,707)
(1,829)
—
—
—
—
—
—
(2,420)
247
—
—
—
31
—
—
—
211
217
428
147
152
299
(2,142)
(1,592)
(1,530)
Further information
Additional information is provided for each of the Group’s assets where an impairment or impairment reversal has been recorded. Additional
sensitivity disclosures are also provided for CGUs or groups of CGUs containing the most significant goodwill balances and for other assets where
the recoverable amount is considered to be a significant estimate (see note 7).
US$ million
Allocates as:
Intangibles
Property, plant and equipment
Other
Total
Recognised before tax:
As special items
Within operating costs before special items
Total
2023
Impairments
Impairments
2022
Impairment
reversals
(1,438)
(1,044)
(10)
(40)
(2,025)
(3)
(2,492)
(2,068)
(2,420)
(2,020)
(72)
(48)
(2,492)
(2,068)
—
438
—
438
428
10
438
238
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Significant items
8. Impairment and impairment reversals continued
Impairments recorded
De Beers
Overview
The recoverable amount of De Beers was assessed as at
31 December 2023 and an impairment of $1.6 billion ($1.6 billion after
tax and non-controlling interest) was recorded to bring the carrying
value into line with the recoverable amount of $7.6 billion, calculated
using a discount rate of 7.5% (2022: 7.5%). The impairment was
allocated primarily to goodwill ($1.4 billion), which has been fully
impaired, and property, plant and equipment ($0.2 billion).
Changes in 2023
The reduction in the recoverable amount is primarily driven by lower
prices than previous forecasts reflecting a reduction in forecast
consumer demand. This reflects macroeconomic uncertainty mainly in
the US and China, as well as a strengthening of the US dollar against
consumer country currencies which has had an adverse impact on
demand in US dollar terms. Management has also updated its best
estimates of the timing of differentiation between lab grown and
natural diamonds, the impact of recycling, the latest Ore Reserves and
Mineral Resources estimates and life of asset plans for the Group’s
mines and, less significantly, the financial impact of revised contractual
terms relating to De Beers’ longstanding mutually beneficial
relationship with the Government of the Republic of Botswana (which
are expected to be finalised during 2024).
Inputs to the valuation
The following are key inputs in the consumer demand forecast which in
turn drives forecast prices:
– The model assumes real GDP growth, weighted by the markets in
which we operate, of 3.3% (2022: 3.4%) over the next five years and
starting from a lower base in 2023.
– The external foreign exchange medium term forecast against the US
dollar in our end consumer markets is annual US dollar depreciation
of 2.5% against the Chinese renminbi, 6.2% against the Japanese
yen, 1.7% against the euro and 1.3% against the Indian rupee for the
medium term compared to 2023 actual average rates.
– It is still assumed that lab grown diamonds will become clearly
established as a product distinct from natural diamonds (as is
increasingly clear in the market today given the significant and clear
price and consumer offering differential). The model forecasts an
imminent bifurcation between lab grown and natural diamond
product offerings with only limited residual impact on the natural
diamond market in the medium to long term.
Forecast producer currencies are also a key input to the model as the
forecasts impact operating costs in US dollar terms. In the medium
term, we assume the Southern African producer currencies exchange
rates depreciate by 0.1% for the Botswana pula and 0.6% for the South
African rand per annum against the US dollar compared to the 2023
actual rates. Thereafter we assume purchasing power parity against
the US dollar.
Sensitivities
The valuation remains sensitive to reasonably possible changes in the
key inputs. Sensitivities are presented below on the basis that all other
assumptions remain constant, although in reality changes may not
occur independently of each other:
– A 0.5 percentage point increase or decrease in consumer countries
GDP growth rate results in a change in the impairment charge of
$0.6 billion.
– A 5% appreciation or depreciation of the US dollar against consumer
countries’ currencies results in a change in the impairment charge of
$0.3 billion.
– A 5% appreciation or depreciation of producer country currencies
against our assumed US dollar results in a change in the impairment
charge of $0.6 billion.
– An increased level of residual competition from lab grown diamonds
or a 1 year delay in bifurcation of natural diamonds and lab grown
diamonds would result in an increase in the impairment charge of
$0.4 billion and $0.3 billion respectively.
– A 0.5% change in the discount rate would result in a change in the
impairment charge of $0.2 billion.
Impairments of goodwill are not eligible for reversal in future periods.
The maximum potential reversal within the next twelve months is
therefore $0.2 billion.
Barro Alto
The Barro Alto nickel operations had been previously impaired, of
which $1 billion remained eligible for potential reversal at the start of
the year. The recoverable amount of the CGU was assessed at
30 June 2023 as changes in the long term cost profile were identified
as an indicator of impairment. This resulted in an impairment of
$0.4 billion.
At 31 December 2023 the recoverable amount of the CGU was
assessed again principally due to the short and medium term price
outlook changes in the second half of the year, which were considered
to be an indicator of impairment. The valuation, calculated using a
discount rate of 8.3%, resulted in a further impairment of $0.4 billion,
total for the year of $0.8 billion ($0.5 billion after tax), allocated to
property, plant and equipment. The remaining carrying value of the
CGU represents long term ore stockpiles (non-current inventory), which
are required to be blended with future production. The net realisable
value of these stockpiles is assessed under IAS 2 Inventories and
currently exceeds their carrying value of $0.2 billion.
The valuation is inherently sensitive to changes in economic and
operational assumptions. The model prepared at 31 December 2023
uses forecast nickel prices that fell within the analyst range throughout
the model. The long term price from 2028 in the model fell within the
third quartile of the analyst price range of $8.41/lb to $8.83/lb (LME
Nickel, 2023 real basis). The model used a forecast for the average
Brazilian real to US dollar real exchange rate which fell within the range
of 5.0 BRL/$ to 5.3 BRL/$.
Sensitivities were considered to assess the impact of changes in key
assumptions, principally price and foreign exchange forecasts. If the
future nickel prices were increased by 10% throughout the valuation
model with all other valuation assumptions remaining the same, the
valuation would have increased by $0.4 billion. A 10% depreciation of
the Brazilian real compared to the valuation assumptions would have
resulted in an increase to the valuation of $0.3 billion.
Other assets
Minas-Rio
The Minas-Rio CGU includes the Minas-Rio iron ore mine and the
Ferroport joint venture, which provides port services to ship the mine’s
production. The CGU has been previously impaired, of which $5.9
billion remained eligible for potential reversal at the start of the year. At
31 December 2023 the recoverable amount of the CGU was assessed
as changes to the medium and long term price outlook and revisions to
the forecast production and capital expenditure profile indicated that
the recoverable amount may have changed. The valuation, calculated
using a discounted cashflow model and a discount rate of 7.8% was
consistent with the carrying amount of $7.3 billion.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
239
Accounting judgements
Impairment testing involves a number of significant accounting
judgements and estimates, which are set out in note 7.
CGU assessment
As set out in note 7, the Group regularly assesses each of its cash
generating units (CGUs) for indicators of impairment or impairment
reversal. The Group applies judgement when allocating its assets to
CGUs, which are defined as the smallest group of assets that generate
cash inflows that are largely independent of the cash inflows from
other assets or groups of assets. Where an operation is vertically
integrated so that each activity/process feeds into the next one until
a final product is produced, particular judgement may be required to
determine whether there is an active market for any intermediate
product.
The Group’s platinum group metals mining, smelting and processing
business is considered to be a single CGU on the basis that there is
only an active market for the final refined product and hence none of
the preceding stages in the production process would be capable of
generating independent cash inflows.
Significant items
8. Impairment and impairment reversals continued
The valuation is inherently sensitive to changes in economic and
operational assumptions and the recoverable amount is considered to
be a significant accounting estimate. The valuation model uses
forecast iron ore prices that fall within the analyst range throughout the
model. The long term price from 2028 fell within the top quartile of the
analyst price range of $84/tonne to $100/tonne (Platts 62% CFR
Reference basis, 2023 real basis). The model used a forecast for the
average Brazilian real to US dollar real exchange rate which fell within
the range of 5.0 BRL/$ to 5.3 BRL/$.
Sensitivities were considered to assess the impact of changes in key
assumptions, principally price and foreign exchange forecasts. If the
future iron ore prices were increased or decreased by 10% throughout
the valuation model with all other valuation assumptions remaining the
same, the valuation would have changed by $2.0 billion. A 10%
depreciation of the Brazilian real compared to the valuation
assumptions would have resulted in an increase to the valuation of
$0.9 billion. A 10% appreciation of the Brazilian real compared to the
valuation assumptions would have resulted in a decrease to the
valuation of $1.0 billion.
2022
Impairments/impairment reversals recorded
Kolomela
At 31 December 2022, following revisions to the forecast production
and cost profile in the latest Life of Asset Plan, the valuation of the
Kolomela mine was assessed and an impairment of $0.3 billion
($0.1 billion after tax and non-controlling interest) was recorded
against property, plant and equipment to bring the carrying value in
line with the recoverable amount of $0.7 billion, calculated using a
discount rate of 8.8%.
Moranbah-Grosvenor
Improvements in the economic environment and the current market
conditions were considered to be a trigger for impairment reversal.
A partial impairment reversal of $0.2 billion ($0.1 billion after tax) was
recognised against property, plant and equipment, based on
discounted cashflows using a discount rate of 6.7%, to bring the
carrying value to $2.4 billion.
Dawson
Improvements in the economic environment and the current market
conditions were considered to be a trigger for impairment reversal.
An impairment reversal of $0.2 billion ($0.2 billion after tax) was
recognised against property, plant and equipment, based on
discounted cashflows using a discount rate of 6.7%, bringing the
carrying value to $0.3 billion.
Woodsmith
In 2022, project team proposals, endorsed by the Board at the end of
the year, indicated there would be changes to the configuration of the
project that would incur higher future capital expenditure and result in
a longer construction schedule with first product expected to be
brought to market in 2027. These items were identified as an indicator
of impairment and the carrying value of the related assets was
assessed as at 31 December 2022 based on discounted cashflows
using a discount rate of 9.58%. This resulted in an impairment of
$1.7 billion ($1.7 billion after tax) to bring the carrying value into line
with the recoverable amount of $0.9 billion. The impairment was
allocated primarily to property, plant and equipment.
240
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Significant items
9. Special items and remeasurements
Overview
US$ million
Revenue remeasurements
Impairments
Impairment reversals
Restructuring costs
Operating remeasurements
Operating special items and remeasurements
Disposals of businesses and investments
Adjustments relating to business combinations
Adjustments relating to former operations
Charges relating to BEE transactions
Non-operating special items
Financing special items and remeasurements
Tax special items and remeasurements
Total
Before tax
(4)
Non-
controlling
interests
3
Tax
(2)
(2,420)
247
—
(142)
(86)
—
5
5
31
—
6
(1)
2023
2022
Net
(3)
Net
(14)
(2,142)
(1,829)
—
(131)
(82)
299
—
(72)
(2,648)
257
36
(2,355)
(1,602)
(40)
(36)
(24)
—
(100)
(31)
3
10
(1)
—
12
—
8
—
3
—
11
—
(29)
(26)
(22)
—
(77)
(31)
—
(181)
(2)
(183)
32
(24)
(46)
(9)
(47)
15
126
(2,783)
86
48
(2,649)
(1,522)
Special items
Special items are those items of financial performance that, due to their
size and nature, the Group believes should be separately disclosed on
the face of the income statement. The Group classifies subsequent
adjustments to items classified as special items on initial recognition in
subsequent periods as special items. These items, along with related
tax and non-controlling interests, are excluded from underlying
earnings, which is an Alternative Performance Measure (APM). For
more information on the APMs used by the Group, including definitions,
please refer to page 318.
– Operating special items are those that relate to the operating
performance of the Group and principally include impairment
charges and reversals and restructuring costs relating to significant
reorganisation programmes.
– Non-operating special items are those that relate to changes in the
Group’s asset portfolio. This category principally includes profits and
losses on disposals of businesses and investments or closure of
operations, adjustments relating to business combinations, and
adjustments relating to former operations of the Group, such as
changes in the measurement of deferred consideration receivable
or provisions recognised on disposal or closure of operations in prior
periods. This category also includes charges relating to Black
Economic Empowerment (BEE) transactions.
– Financing special items are those that relate to financing activities
Remeasurements
Remeasurements are items that are excluded from underlying
earnings in order to reverse timing differences in the recognition of
gains and losses in the income statement in relation to transactions
that, whilst economically linked, are subject to different accounting
measurement or recognition criteria. Remeasurements include mark-
to-market movements on derivatives that are economic hedges of
transactions not yet recorded in the financial statements, in order to
ensure that the overall economic impact of such transactions is
reflected within the Group’s underlying earnings in the period in which
they occur. When the underlying transaction is recorded in the income
statement, the realised gains or losses are recorded in underlying
earnings within either revenue, operating costs or net finance costs as
appropriate. If the underlying transaction is recorded in the balance
sheet, for example capital expenditure, the realised amount remains in
remeasurements on settlement of the derivative.
– Revenue remeasurements, presented within revenue from other
sources, include gains and losses on unsettled derivatives relating
to revenue.
– Operating remeasurements include unrealised gains and losses
on derivatives relating to operating costs or capital expenditure
transactions. They also include the reversal through depreciation
and amortisation of a fair value gain or loss, arising on revaluation
of a previously held equity interest in a business combination.
and include realised gains and losses on early repayment of
borrowings, and the unwinding of the discount on material
provisions previously recognised as special items.
– Financing remeasurements include unrealised gains and losses on
financial assets and liabilities that represent economic hedges,
including accounting hedges, related to financing arrangements.
– Tax special items are those that relate to tax charges or credits
where the associated cash outflow or inflow is anticipated to be
significant due to its size and nature, principally including resolution
of tax enquiries.
– Tax remeasurements include foreign exchange impacts arising in
US dollar functional currency entities where tax calculations are
generated based on local currency financial information and hence
tax is susceptible to currency fluctuations.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
241
2022
The charge of $9 million relates to a modification charge under IFRS 2
Share-based Payments following the amendment of the De Beers
agreement with Ponahalo Investments (Pty) Ltd.
Financing special items and remeasurements
Financing special items and remeasurements comprise a net fair value
loss of $31 million (2022: a net fair value gain of $15 million) in respect
of fair value adjustments in relation to cross currency and interest rate
swap derivatives and the related bonds.
Tax associated with special items and remeasurements
Tax associated with special items and remeasurements includes
a tax remeasurement credit of $119 million (2022: credit of $72 million)
principally arising on Brazilian deferred tax, a tax on special items and
remeasurement credit of $267 million (2022: charge of $14 million)
and a tax special items charge of $300 million (2022: credit of
$56 million).
Of the total tax credit of $86 million (2022: credit of $114 million), there
is a net current tax charge of $34 million (2022: charge of $41 million)
and a net deferred tax credit of $120 million (2022: credit of
$155 million).
Significant items
9. Special items and remeasurements continued
Revenue remeasurements
The loss of $4 million ($3 million after tax and non-controlling interests)
(2022: loss of $14 million) relates to remeasurements on derivatives
presented in revenue from other sources. For further details see note 2.
Operating special items
Impairments
Impairments of $2,420 million ($2,142 million after tax and non-
controlling interests) recognised for the year ended 31 December 2023
primarily relate to impairments within De Beers: $1,601 million
($1,558 million after tax and non-controlling interests) and Barro Alto
(Nickel): $779 million ($544 million after tax).
Further information on significant accounting matters relating to
impairments is provided in note 8.
2022
Impairments of $1,829 million recognised for the year ended
31 December 2022 comprise impairments within Woodsmith (Crop
Nutrients) $1,707 million and Kolomela (Iron Ore): $122 million.
Impairment reversals
There were no impairment reversals recognised for the year ended
31 December 2023.
2022
Impairment reversals of $299 million for the year ended
31 December 2022 relate to Steelmaking Coal.
Restructuring costs
Restructuring costs associated with an organisational change
programme of $142 million ($131 million after tax and non-controlling
interests) have been recognised for the year ended
31 December 2023 (2022: nil).
Operating remeasurements
Operating remeasurements reflect a loss of $86 million ($82 million
after tax and non-controlling interests) (2022: $72 million) which
principally relates to a $82 million (2022: $84 million) depreciation and
amortisation charge arising due to the fair value uplift on the Group’s
pre-existing 45% shareholding in De Beers, which was required on
acquisition of a controlling stake in 2012.
Non-operating special items
Disposals of businesses and investments
The $40 million loss ($29 million after tax and non-controlling interests)
relates to the disposal of Kroondal (Platinum Group Metals). Further
information is provided in note 34.
2022
The $32 million profit relates to the disposal of Bokoni (Platinum Group
Metals).
Adjustments relating to business combinations
The $36 million loss ($26 million after tax) (2022: $24 million) related to
adjustments in respect of business combinations in prior years.
Adjustments relating to former operations
The net loss of $24 million ($22 million after tax and non-controlling
interests) (2022: $46 million) principally related to deferred
consideration adjustments in respect of the Group’s interests in
Rustenburg and Union (Platinum Group Metals). The Rustenburg
consideration was received in full in March 2023.
Charges relating to BEE transactions
There were no charges relating to BEE transactions for the year ended
31 December 2023.
242
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Capital base
We have a value-focused approach to capital allocation with clear
prioritisation: maintain asset integrity; pay dividends to our shareholders
while ensuring a strong balance sheet. Discretionary capital is then
allocated based on a balanced approach.
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Attributable ROCE %
2023
20
6
15
(3)
34
27
81
n/a
n/a
16
2022
16
24
86
11
28
85
138
n/a
n/a
30
Value-disciplined capital allocation throughout the cycle is
critical to protecting and enhancing our shareholders’ capital,
given the long term and capital intensive nature of our
business.
The Group uses attributable return on capital employed
(ROCE) to monitor how efficiently assets are generating profit
on invested capital for the equity shareholders of the
Company. Attributable ROCE is an Alternative Performance
Measure (APM). For more information on the APMs used by the
Group, including definitions, please refer to page 318.
Attributable ROCE decreased to 16% (2022: 30%).
Attributable underlying EBIT decreased to $5.4 billion
(2022: $9.7 billion), reflecting the impact of lower realised
prices for the Group’s products and inflationary cost pressures.
Average attributable capital employed increased to
$33.2 billion (2022: $32.0 billion(1)), primarily due to capital
expenditure, largely at Quellaveco and Collahuasi (Copper),
and shipping vessel lease additions and revaluations
(Corporate and Other), partly offset by the reduction in capital
employed following the De Beers and Nickel impairments
recorded in 2023.
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
10. Capital by segment
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
Capital employed by segment
Capital employed is the principal measure of segment assets and liabilities reported to the Executive Leadership Team. Capital employed is
defined as net assets excluding net debt, vessel lease contracts that are priced with reference to a freight index, the debit valuation adjustment
attributable to derivatives hedging net debt and financial asset investments.
US$ million
Copper(1)
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Capital employed
Reconciliation to Consolidated balance sheet:
Net debt
Variable vessel leases excluded from net debt (see note 21)
Debit valuation adjustment attributable to derivatives hedging net debt
Financial asset investments
Net assets
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Capital employed
2023
14,309
2022
(restated)(1)
13,661
588
5,175
7,257
9,044
3,364
141
1,309
1,240
1,393
4,753
8,218
8,488
2,837
210
489
492
42,427
40,541
(10,615)
(6,918)
(637)
(127)
3
439
29
428
31,617
33,953
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
243
Capital base
10. Capital by segment continued
Non-current assets by location
US$ million
South Africa
Botswana
Other Africa
Brazil
Chile
Peru
Other South America
North America
Australia and Asia
United Kingdom(1)
Other Europe
Non-current assets by location
Unallocated assets
Total non-current assets
(1) United Kingdom is Anglo American plc’s country of domicile.
Intangible assets,
Property, plant and equipment
Total non-current assets
2023
10,352
2,025
844
7,112
8,253
8,654
—
630
4,357
3,102
99
45,428
2022
10,074
2,979
1,084
7,529
7,424
8,075
—
563
3,591
2,536
98
43,953
2023
10,986
2,031
848
7,817
8,330
8,693
1
642
4,838
3,291
99
47,576
1,641
49,217
2022
10,778
2,982
1,088
8,138
7,498
8,079
2
581
4,083
2,653
98
45,980
1,491
47,471
Total non-current assets by location primarily comprise Intangible assets, Property, plant and equipment and Investments in associates and
joint ventures.
11.
Intangible assets
Overview
Intangible assets comprise goodwill acquired through business combinations, brands, contracts and other non-mining assets.
US$ million
Net book value
At 1 January
Acquired through business combinations
Additions
Amortisation charge for the year
Impairments
Currency movements
At 31 December
Cost
Contracts
and other
intangibles
Brands
Goodwill
Total
Brands
Contracts
and other
intangibles
Goodwill
Total
2023
2022
517
—
—
—
(21)
—
496
517
640
—
191
(76)
(27)
(15)
713
1,258
1,671
50
—
—
(1,390)
(61)
270
1,732
2,828
50
191
(76)
(1,438)
(76)
1,479
3,507
517
—
—
—
—
—
517
517
—
608
—
153
(59)
(40)
(22)
640
1,183
1,877
—
—
—
—
(206)
1,671
1,742
3,002
—
153
(59)
(40)
(228)
2,828
3,442
(543)
(71)
(614)
Accumulated amortisation and impairment
(21)
(545)
(1,462)
(2,028)
Brands, contracts and other intangibles includes $822 million (2022: $889 million) relating to De Beers, principally comprising assets
that were recognised at fair value on acquisition of a controlling interest in De Beers in August 2012. At 31 December 2023, $496 million
(2022: $517 million) of intangible assets that are deemed to have indefinite useful lives relating to brands in De Beers.
Further information
Goodwill relates to the following cash generating units (CGUs) or groups of CGUs:
US$ million
Copper Chile
Platinum Group Metals
De Beers
Other
2023
124
96
—
50
270
2022
124
103
1,434
10
1,671
Accounting judgements and estimates
Goodwill and brands are tested at least annually for impairment by assessing the recoverable amount of the related CGU or group of CGUs.
Further information in relation to De Beers is set out in note 8. Management believes that any reasonably possible change in a key assumption, on
which the recoverable amount of goodwill allocated to the Los Bronces - Chagres CGU (Copper Chile) and Platinum Group Metals is based,
would not cause the carrying values to exceed their recoverable amounts. Further details about how the recoverable amounts have been
determined are set out in notes 7 and 8.
Accounting policy
See note 39D for the Group’s accounting policies on intangible assets.
244
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Capital base
12. Property, plant and equipment
Overview
Property, plant and equipment comprises the physical assets that make up the Group’s operations. These include acquired mineral rights,
capitalised waste stripping and mine development costs, processing plants and infrastructure, vehicles and other equipment.
US$ million
Net book value
At 1 January
Additions
Depreciation charge for the year
Impairments
Revaluation of shipping leases
Disposals
Reclassifications
Currency movements
At 31 December
Cost
2023
Owned and leased assets
Mining
properties
– Owned
Land and
buildings
– Owned
Land and
buildings
– Right-of-
use assets
Plant and
equipment
– Owned
Plant and
equipment
– Right-of-
use assets
Capital
works in
progress
Total
10,032
1,655
464
13,999
312
14,663
41,125
307
(859)
(283)
—
12
(147)
(310)
—
(20)
(11)
2,825
4,453
53
258
536
6,162
7,328
(52)
(1,437)
(240)
—
(2,735)
(11)
(268)
(34)
(138)
(1,044)
—
—
—
—
(88)
362
(1)
—
362
(1)
(121)
3,689
—
(10,967)
—
(473)
(51)
(11)
(147)
(1)
(283)
(966)
11,529
25,913
5,601
7,052
443
16,006
934
9,436
43,949
682
35,130
1,840
11,381
81,998
Accumulated depreciation and impairment
(14,384)
(1,451)
(239) (19,124)
(906)
(1,945) (38,049)
US$ million
Net book value
At 1 January
Additions
Depreciation charge for the year
Impairments
Impairments reversed
Revaluation of shipping leases
Disposals
Reclassifications
Currency movements
At 31 December
Cost
Accumulated depreciation and impairment
Mining
properties
– Owned
Land and
buildings
– Owned
Land and
buildings
– Right-of-
use assets
Plant and
equipment
– Owned
Plant and
equipment
– Right-of-
use assets
Capital
works in
progress
Total
2022
Owned and leased assets
10,119
586
(890)
(106)
181
—
(12)
664
(510)
10,032
25,896
(15,864)
1,776
16
(81)
(82)
24
—
(1)
50
(47)
1,655
2,673
(1,018)
454
76
(44)
(32)
—
—
(6)
22
(6)
13,590
102
(1,347)
(142)
197
—
(35)
1,827
(193)
312
194
(195)
—
4
8
(7)
—
(4)
13,250
5,860
—
39,501
6,834
(2,557)
(2,025)
430
8
(84)
—
(982)
(1,663)
24
—
(23)
(2,563)
(222)
464
13,999
312
14,663
41,125
648
(184)
32,394
(18,395)
987
(675)
16,496
(1,833)
79,094
(37,969)
Additions include $515 million (2022: $378 million) of net interest expense incurred on borrowings which fund the construction of qualifying
assets that have been capitalised during the year, principally for the Quellaveco copper project in Peru and the Woodsmith project in the UK. The
Quellaveco project achieved commercial production on 1 June 2023, after which interest expense incurred on borrowings was recognised within
finance costs in the Consolidated income statement.
Depreciation includes $2,623 million (2022: $2,401 million) of depreciation within operating profit, $68 million (2022: $69 million) of depreciation
arising due to the fair value uplift on the pre-existing 45% shareholding in De Beers which has been included within operating remeasurements
(see note 9), and $44 million (2022: $87 million) of pre-commercial production depreciation on assets used in capital projects which has been
capitalised.
The impairment charge for the year relates principally to the Group’s Nickel reportable segment. A charge of $213 million relates to the De Beers
reportable segment and was primarily recorded within the mining properties asset class.
Disposals includes disposals of assets and businesses.
Accounting judgements and estimates
Impairment testing
Impairment testing involves a number of significant accounting judgements and estimates, which are set out in note 7.
Commercial production
The Group applies judgement in determining when a mine reaches commercial production. The Group assesses a number of factors when making
this judgement. Typically, a mine reaches commercial production when mine assets are consistently operating at 80% of nameplate production
capacity. The Group’s Quellaveco copper project is most affected by this judgement in the current year. The Quellaveco project achieved
commercial production on 1 June 2023, after which borrowing costs were recognised within finance costs in the Consolidated income statement
and assets considered ready for use were reclassified from Capital Work in Progress to appropriate asset classes and subsequently depreciated.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
245
Capital base
12. Property, plant and equipment continued
Depreciation
Depreciation is calculated with reference to the Group’s best estimate of useful economic lives of assets. Useful economic lives of mining
properties are generally limited to the expected life of the related orebody. The life of the orebody, in turn, is estimated on the basis of the Life of
Asset Plan. Where an asset is not dependent on the life of a related orebody, management applies judgment in estimating the remaining useful
economic life of the asset. Climate change may impact the useful economic lives of the Group’s mining properties if changing commodity prices
extend or reduce the period in which resources can be extracted from an orebody economically.
Deferred stripping
In certain mining operations, rock or soil overlying a mineral deposit, known as overburden, and other waste materials must be removed to access
the orebody. The process of removing overburden and other mine waste materials is referred to as stripping.
The Group defers stripping costs onto the balance sheet where they are considered to improve access to ore in future periods. Where the amount
to be capitalised cannot be specifically identified because stripping activities and production occur simultaneously, the amount to be capitalised
is calculated based on the waste moved in excess of the life of mine average for the component. Determining the average strip ratio for the mine
is an accounting estimate. The identification of components is an area of judgement, reflecting the design of each mine. Both accounting
judgements and estimates are made with reference to the Life of Asset Plan.
Accounting policy
See note 39D for the Group’s accounting policies on property, plant and equipment.
13. Capital expenditure
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
Capital expenditure by segment
US$ million
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Crop Nutrients
Corporate and other
Capital expenditure
Reconciliation to Consolidated cash flow statement:
Cash flows used in derivatives related to capital expenditure
Proceeds from disposal of property, plant and equipment
Direct funding for capital expenditure received from non-controlling interests
Expenditure on property, plant and equipment
2023
1,684
91
1,108
623
909
619
641
59
2022
2,031
79
1,017
593
834
648
522
14
5,734
5,738
(3)
16
129
5,876
—
7
446
6,191
Direct funding for capital expenditure from non-controlling interests related to the Quellaveco project was fully drawn in April 2023. Mitsubishi has
continued to provide direct funding for its 40% share of capital expenditure relating to the coarse particle recovery project via draw-downs
against a committed shareholder facility which are recorded as borrowings on the Group’s Consolidated balance sheet.
Capital expenditure by category
US$ million
Growth projects
Life-extension projects
Stay-in-business
Development and stripping
Proceeds from disposal of property, plant and equipment
2023
1,330
598
2,902
920
2022
1,595
582
2,558
1,010
(16)
(7)
5,734
5,738
Growth projects and life-extension projects capital expenditure includes the cash flows from derivatives related to capital expenditure and is net
of direct funding for capital expenditure received from non-controlling interests.
246
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Capital base
14.
Investments in associates and joint ventures
Overview
Investments in associates and joint ventures represent businesses the Group does not control, but instead exercises significant influence or joint
control. These include (within the respective businesses) the associate Jellinbah (steelmaking coal production in the Steelmaking Coal segment)
and the joint ventures Ferroport (port operations in the Iron Ore segment) and Samancor (manganese mining in the Manganese segment). The
Group’s other investments in associates and joint ventures arise primarily in the Platinum Group Metals segment and Crop Nutrients segment.
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
US$ million
At 1 January
Net income from associates and joint ventures
Dividends received
Investments in equity and capitalised loans
Impairments
Other movements
Currency movements
At 31 December
Associates
416
248
(203)
4
(10)
2
(1)
Joint ventures
640
130
(184)
11
—
(2)
15
456
610
2023
Total
1,056
378
(387)
15
(10)
—
14
1,066
Associates
388
452
(398)
6
(3)
3
(32)
Joint ventures
633
189
(210)
31
—
(2)
(1)
416
640
2022
Total
1,021
641
(608)
37
(3)
1
(33)
1,056
Further information
The Group’s total investments in associates and joint ventures include long term loans of $125 million (2022: $137 million), which in substance
form part of the Group’s net investment. These loans are not repayable in the foreseeable future.
The Group’s share of the results of the associates and joint ventures is as follows:
Income statement
US$ million
Group revenue
Operating costs (before special items and remeasurements)
Associates’ and joint ventures’ underlying EBIT
Net finance costs
Income tax expense
Non-controlling interests
Net income from associates and joint ventures
Balance sheet
US$ million
Non-current assets
Current assets
Current liabilities
Non-current liabilities
Net assets as at 31 December 2023
Net assets as at 31 December 2022
2023
1,846
(1,234)
612
(37)
(196)
(1)
378
Associates
179
494
(155)
(62)
Joint ventures
1,087
416
(214)
(679)
456
416
610
640
2022
2,264
(1,225)
1,039
(16)
(379)
(3)
641
Total
1,266
910
(369)
(741)
1,066
1,056
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
247
Capital base
14. Investments in associates and joint ventures continued
Further information
The Group’s share of the results of the associates and joint ventures is as follows:
US$ million
Samancor
Jellinbah
Ferroport
Other
US$ million
Samancor
Jellinbah
Ferroport
Other
US$ million
Samancor
Jellinbah
Ferroport
Other
Underlying
EBITDA
231
Underlying
EBIT
145
Share of net
income
66
373
82
31
717
360
74
33
612
244
50
18
378
2023
Dividends
received
127
198
55
7
387
2022
Underlying
EBITDA
378
Underlying
EBIT
312
Share of net
income
148
Dividends
received
169
Group
revenue
670
779
105
292
1,846
Group
revenue
840
1,056
99
269
674
75
660
69
(2)
(2)
2,264
1,125
1,039
454
47
(8)
641
393
41
5
608
Aggregate investment
2023
147
415
290
214
2022
212
370
280
194
1,066
1,056
Accounting judgements
Impairment
No indicators of impairment were identified for the Group’s material investments in associates and joint ventures during 2023. The key
assumptions used in determining the recoverable amounts are set out in note 7.
Accounting policy
See note 39I for the Group’s accounting policy on associates and joint arrangements, which includes joint ventures.
248
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Capital base
15. Financial asset investments
Overview
Financial asset investments include three categories. Financial assets at amortised cost principally comprise loans to and deposits with third
parties including the Group’s associates and joint ventures. Assets classified at fair value through other comprehensive income principally
comprise investments in equities of other companies. Financial assets held at fair value through profit and loss comprise financial assets that
do not meet the criteria to be classified under either of the other two categories.
US$ million
At 1 January
Additions
Interest receivable
Net loans (repaid)/advanced
Disposals
Impairments
Impairment reversals
Fair value and other movements
Currency movements
At 31 December
Current
Non-current
Financial
assets at
amortised cost
226
At fair value
through
profit and loss
35
At fair value
through other
comprehensive
income
167
—
6
(1)
—
—
—
—
3
234
17
217
6
2
39
—
—
—
(9)
—
73
31
42
50
—
—
(5)
—
—
(76)
(4)
132
—
132
2023
Total
428
56
8
38
(5)
—
—
(85)
(1)
439
48
391
Financial
assets at
amortised cost
127
At fair value
through
profit and loss
60
At fair value
through other
comprehensive
income
182
2022
Total
369
87
2
84
80
—
—
(134)
(134)
—
—
50
(11)
167
—
167
(2)
17
9
(4)
428
38
390
7
—
(5)
—
—
—
(29)
2
35
24
11
Accounting policy
See note 39D for the Group’s accounting policies on financial asset investments.
16. Provisions for liabilities and charges
Overview
US$ million
At 1 January
Additional provisions charged to income
statement
Changes in discount rate
Capitalised
Unwinding of discount
Amounts applied
Unused amounts reversed
Disposals
Currency movements
At 31 December
Current
Non-current
Environmental
restoration Decommissioning
Employee
benefits
Onerous
contracts
(1,761)
(906)
(161)
(30)
(246)
38
(42)
(48)
97
7
28
39
(1,888)
(148)
(1,740)
(29)
29
(121)
(26)
56
65
15
4
(913)
(30)
(883)
(76)
—
—
(3)
52
7
—
1
(180)
(160)
(20)
(4)
—
—
(2)
4
18
—
(9)
(23)
(23)
—
Restructuring
(17)
(56)
—
—
—
17
1
—
1
(54)
(53)
(1)
Other
(168)
Total
(3,293)
(18)
—
(130)
—
14
24
—
7
(271)
(247)
(24)
(463)
67
(295)
(79)
279
155
43
28
(3,558)
(684)
(2,874)
—
2
89
—
(2)
17
(12)
5
226
14
212
Legal
(250)
(34)
—
(2)
—
39
33
—
(15)
(229)
(23)
(206)
Further information
Environmental restoration
The Group has an obligation to undertake restoration, rehabilitation and environmental work when environmental disturbance is caused by the
development or ongoing production of a mining property. A provision is recognised for the present value of such costs, based on management’s
best estimate of the legal and constructive obligations incurred. Changes in legislation could result in changes in provisions recognised. It is
anticipated that the majority of these costs will be incurred over a period in excess of 20 years.
Decommissioning
Provision is made for the present value of costs relating to the decommissioning of plant or other site restoration work. It is anticipated that the
majority of these costs will be incurred over a period in excess of 20 years.
The pre-tax, real discount rates that have been used in calculating the environmental restoration and decommissioning liabilities as at
31 December 2023, in the principal currencies in which these liabilities are denominated and with matching maturities to the timelines are
as follows: US dollar: 1.7%–1.9% (2022: 1.7%–1.9%); South African rand: 4.9%–5.0% (2022: 4.5%–5.0%); Australian dollar: 1.5%–1.8%
(2022: 1.5%–1.8%); Chilean peso: 2.2%–2.6% (2022: 1.7%–2.2%); and Brazilian real: 5.5%–5.9% (2022: 5.6%–6.0%).
Movements in environmental restoration and decommissioning provisions resulted in a net charge of $219 million within operating profit
(2022: net charge of $324 million). In addition, the Group is required to provide guarantees in several jurisdictions in respect of environmental
restoration and decommissioning obligations. These have not resulted in the recognition of any additional liabilities.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
249
Capital base
16. Provisions for liabilities and charges continued
Decommissioning and environmental restoration provisions also includes management's best estimates of all material costs of conformance with
Global Industry Standard for Tailing Management (GISTM). For further details see note 33.
Employee benefits
Provision is made for statutory or contractual employee entitlements where there is significant uncertainty over the timing or amount of
settlement. It is anticipated that these costs will be incurred when employees choose to take their benefits.
Onerous contracts
Provision is made for the present value of certain long term contracts where the unavoidable cost of meeting the Group’s obligations is expected
to exceed the benefits to be received.
Other
Other provisions relate to social commitments and other claims and liabilities.
Environmental rehabilitation trusts
The Group makes contributions to controlled funds that were established to meet the cost of some of its restoration and environmental
rehabilitation liabilities in South Africa. The funds comprise the following investments, which with the exception of some cash balances, are held in
unit trusts:
US$ million
Equity
Bonds
Cash and cash equivalents
2023
76
14
18
108
2022
74
13
20
107
These assets are primarily denominated in South African rand. Where not held in a unit trust, cash and cash equivalents are held in short term
fixed deposits or earn interest at floating inter-bank rates. Bonds held in unit trusts earn interest at a weighted average fixed rate of 10.0%
(2022: 10.0%) for an average period of eight years (2022: seven years).
These funds are not available for the general purposes of the Group (see note 24). All income from these assets is reinvested to meet specific
environmental obligations. These obligations are included in provisions as stated above.
Accounting judgements and estimates
Environmental restoration and decommissioning provisions
The recognition and measurement of environmental restoration and decommissioning provisions requires judgement and is based on
assumptions and estimates, including the required closure and rehabilitation costs, the timing of future cash flows, and the discount rates applied.
Future cash flows used to determine environmental restoration and decommissioning provisions are risk adjusted to reflect potential changes in
relation to the key assumptions made in the mine closure plan. Discount rates applied to determine environmental restoration and
decommissioning provisions represent a market assessment of the time value of money only i.e. a risk-free rate. These rates are calculated on a
real basis with reference to the yield for government bonds of the appropriate currency and duration. The Group has considered reasonably
possible changes to discount rates and if the discount rates at 31 December 2023 were decreased by 1.0% then the total environmental
restoration and decommissioning provisions would increase by $0.5 billion. Increase in discount rates by 1.0% would decrease the total
restoration and decommissioning provisions by $0.4 billion.
The Group considers the impact of climate change on environmental restoration and decommissioning provisions, specifically the timing of future
cash flows, and has concluded that it does not currently represent a key source of estimation uncertainty. Changes to legislation, including in
relation to climate change, are factored into the provisions when the legislation becomes enacted.
Accounting policy
See note 39D for the Group’s accounting policy on environmental restoration and decommissioning obligations.
250
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Capital base
17. Deferred tax
Overview
The movement in net deferred tax liabilities during the year is as follows:
US$ million
At 1 January
Charged to the income statement
Credited to equity
Currency movements
At 31 December
2023
(5,051)
2022
(restated)(1)
(4,404)
(469)
(852)
13
189
77
128
(5,318)
(5,051)
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Further information
Where there is a right of offset of deferred tax balances within the same tax jurisdiction, IAS 12 Income Taxes requires these to be presented after
such offset in the Consolidated balance sheet. The closing deferred tax balances before this offset are as follows:
US$ million
Deferred tax assets before offset
Tax losses
Depreciation in excess of capital allowances
Other temporary differences
Deferred tax liabilities before offset
Capital allowances in excess of depreciation
Fair value adjustments
Withholding tax
Other temporary differences
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
The closing deferred tax balances after offset are as follows:
US$ million
Deferred tax assets
Deferred tax liabilities
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Other temporary differences primarily arise in relation to deferred stripping costs and functional currency differences.
The amount of deferred tax charged to the Consolidated income statement is as follows:
US$ million
Capital allowances in excess of depreciation
Fair value adjustments
Tax losses
Provisions
Other temporary differences
2023
706
240
638
2022
(restated)(1)
875
163
745
1,584
1,783
(4,410)
(4,317)
(548)
(22)
(1,922)
(6,902)
(645)
(20)
(1,852)
(6,834)
2023
262
(5,580)
(5,318)
2022
(restated)(1)
198
(5,249)
(5,051)
2023
(252)
67
(92)
(123)
(69)
(469)
2022
(712)
1
(404)
45
218
(852)
Deferred tax charged to the income statement includes a credit of $119 million (2022: $72 million) relating to deferred tax remeasurements,
a deferred tax on special items and remeasurement credit of $301 million (2022: $27 million) and a deferred tax special items charge of
$300 million (2022: credit of $56 million).
Deferred tax assets are recognised to the extent that the business has forecast taxable profits against which the assets can be recovered. While
the Group is in an overall net deferred tax liability (2022: liability) position, some deferred tax assets remain unrecognised in jurisdictions where
no taxable profits are forecast and no right of offset against the Group's deferred tax liabilities exists.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
251
Capital base
17. Deferred tax continued
The Group has the following temporary differences for which no deferred tax assets have been recognised:
US$ million
Expiry date
Less than five years
Greater than five years
No expiry date
Tax losses
– revenue
Tax losses
– capital
Other
temporary
differences
2023
Total
Tax losses
– revenue
Tax losses
– capital
Other
temporary
differences
2022 (restated)(1)
155
864
9,767
10,786
—
—
139
898
294
1,762
2,394
2,394
6,594
18,755
7,631
20,811
126
832
6,239
7,197
—
—
2,501
2,501
Total
128
832
2
—
5,509
14,249
5,511
15,209
(1) The 2022 comparative figures have been restated to include $1,279 million of revenue tax losses and other temporary differences.
No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and
interests in joint ventures and joint operations where the Group is in a position to control the timing of the reversal of the temporary differences and
it is probable that such differences will not reverse in the foreseeable future. Consistent with the Group's impairment testing, the Group uses the
Board approved forecasts as the basis for the profits expected to arise in the foreseeable future. The aggregate amount of temporary differences
associated with such investments in subsidiaries, branches, associates and interests in joint ventures and joint operations is represented by the
contribution of those investments to the Group’s retained earnings and amounted to $20,969 million (2022: $20,620 million).
Accounting judgements and estimates
Recognition of deferred tax asset
In accordance with the requirements of IAS 12 Income Taxes, the Group reassesses the recognition and recoverability of deferred tax assets at
the end of each reporting period.
Accounting policy
See note 39G for the Group’s accounting policy on tax.
252
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Working capital
This section includes analysis of inventories, receivables and payables.
These balances principally relate to current assets and liabilities held to
support operating activities.
US$ million
Inventories
Trade and other receivables
Trade and other payables
18.
Inventories
2023
7,234
4,983
2022
7,407
4,923
(6,700)
(7,629)
5,517
4,701
Net working capital increased in 2023 led by a decrease in
payables largely driven by the impact of lower Platinum Group
Metals prices. Inventory and receivables remain broadly flat.
Overview
Inventories represent goods held for sale in the ordinary course of business (finished products), ore being processed into a saleable condition
(work in progress) and spares, raw materials and consumables to be used in the production process (raw materials and consumables).
US$ million
Raw materials, consumables and other
Work in progress
Finished products
Expected to
be used
within one
year
1,100
Expected to
be used
after more
than one year
8
2,138
3,149
6,387
822
17
847
2023
Total
1,108
2,960
3,166
7,234
Expected to
be used
within one
year
889
Expected to
be used
after more
than one year
—
2,777
2,932
6,598
798
11
809
2022
Total
889
3,575
2,943
7,407
Further information
The cost of inventories recognised as an expense and included in operating costs amounted to $15,457 million (2022: $16,983 million). The
write-down of inventories to net realisable value (net of revaluation of provisionally priced purchases) amounted to $357 million
(2022: $106 million).
Accounting estimates
Accounting for inventory involves the use of judgements and estimates, particularly in relation to the measurement and valuation of work in
progress inventory within the production process. Certain estimates, including expected metal recoveries and work in progress volumes, are
calculated by engineers using available industry, engineering and scientific data. Estimates used are periodically reassessed taking into account
technical analysis, historical performance and physical counts. During the year, the Platinum Group Metals business updated its estimate of work
in progress quantities following the completion of a physical count. This change in estimate reduced the carrying value of inventories by
$89 million.
Accounting policy
See note 39E for the Group’s accounting policy on inventories.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
253
Working capital
19. Trade and other receivables
Overview
Trade receivables are amounts due from the Group’s customers for commodities and services the Group has provided. Many of the Group’s sales
are provisionally priced, which means that the price is finalised at a date after the sale takes place. When there is uncertainty about the final
amount that will be received, the receivable is marked to market based on the forward price.
Trade and other receivables also includes amounts receivable for VAT and other indirect taxes, prepaid expenses and deferred consideration.
US$ million
Trade receivables
Tax receivables
Accrued income
Prepayments
Contract assets
Other receivables
Due within
one year
2,468
974
182
391
67
434
4,516
Due after
one year
43
214
—
22
—
188
467
2023
Total
2,511
1,188
182
413
67
622
Due within
one year
2,175
978
254
530
46
500
4,983
4,483
Due after
one year
46
120
—
41
—
233
440
2022
Total
2,221
1,098
254
571
46
733
4,923
Further information
The Group applies the simplified expected credit loss model for its trade receivables measured at amortised cost, as permitted by IFRS 9 Financial
Instruments. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience,
credit profiles and financial metrics, adjusted as appropriate for current observable data.
As part of its approach to working capital management, the Group uses debtor discounting arrangements. These arrangements are on
a non-recourse basis and hence the related receivables are derecognised from the Consolidated balance sheet.
Of the year end trade receivables balance $82 million (2022: $76 million) were past due, stated after an associated impairment provision of
$33 million (2022: $22 million). Given the use of payment security instruments and the nature of the related counterparties, these amounts are
considered recoverable. The historical level of customer default is minimal and there is no current observable data to indicate a material future
default. As a result, the credit quality of year end trade receivables is considered to be high.
Trade receivables do not incur any interest as they are principally short term in nature and therefore are measured at their nominal value (with the
exception of receivables relating to provisionally priced sales, as set out in the revenue recognition accounting policy, see note 39C), net of
appropriate provisions for estimated irrecoverable amounts.
20. Trade and other payables
Overview
Trade and other payables include amounts owed to suppliers, tax authorities and other parties that are typically due to be settled within 12
months. The total also includes contract liabilities, which represents monies received from customers but for which we have not yet delivered the
associated goods or service. These amounts are recognised as revenue when the goods are delivered or the service is provided. All revenue
relating to performance obligations which were incomplete as at 31 December 2022 was recognised during the year. Other payables include
deferred consideration in respect of business combinations and dividends payable to non-controlling interests.
US$ million
Trade payables
Accruals
Contract liabilities and deferred income
Tax and social security
Other payables
2023
2,716
2,504
719
198
563
2022
2,987
2,399
1,492
131
620
6,700
7,629
Further information
Trade payables are non-interest bearing and are measured at their nominal value (with the exception of payables relating to provisionally priced
commodity purchases which are marked to market using the appropriate forward price) until settled. $189 million (2022: $249 million) of trade
and other payables are included within non-current liabilities.
Contract liabilities and deferred income include $608 million (2022: $1,358 million) for payments received in advance for metal which is expected
to be delivered within six months and $80 million (2022: $99 million) in respect of freight and performance obligations which are expected to be
completed within 30 to 45 days. The decrease in contract liabilities and deferred income is primarily driven by a decrease in metal prices.
254
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Net debt and financial risk management
Net debt increased from $6.9 billion to $10.6 billion during the year, which includes a
working capital cash outflow of $1.2 billion, primarily due to a reduction in payables.
Gearing has increased from 17% at 31 December 2022 to 25% at 31 December 2023.
US$ million
Net assets
Net debt including related derivatives (note 21)
Variable vessel leases
Total capital
Gearing
2023
31,617
10,615
637
42,869
25%
2022
(restated)(1)
33,953
6,918
127
40,998
17%
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Net debt is calculated as total borrowings excluding variable
vessel lease contracts that are priced with reference to a
freight index, less cash and cash equivalents (including
derivatives that provide an economic hedge of net debt but
excluding the impact of the debit valuation adjustment on
these derivatives). Total capital is calculated as ‘Net assets’ (as
shown in the Consolidated balance sheet) excluding net debt
and variable vessel leases.
21. Net debt
Overview
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
Movement in net debt
US$ million
At 1 January 2022
Cash flow
Interest accrued on borrowings
Reclassifications
Movement in fair value
Other movements
Currency movements
At 31 December 2022
Cash flow
Interest accrued on borrowings
Reclassifications
Movement in fair value
Other movements
Currency movements
At 31 December 2023
Short term
borrowings
Medium and
long term
borrowings
Total
financing
activity
liabilities
Removal of
variable
vessel leases
Cash
and cash
equivalents
Derivatives
hedging
net debt
Net debt
including
derivatives
(1,226)
(11,621)
(12,847)
1,274
(2,990)
(1,716)
74
(86)
9,057
(420)
(126)
103
(430)
(940)
8
(130)
(560)
940
886
—
894
(141)
(143)
(284)
47
113
160
(1,408)
(12,945)
(14,353)
1,538
(1,941)
(719)
(847)
14
(329)
25
(75)
847
(293)
(622)
(143)
(403)
(794)
—
(279)
(951)
(118)
(1,726)
(15,172)
(16,898)
1
—
—
138
—
127
—
—
—
—
(237)
—
—
(1,069)
—
—
8,400
(1,092)
(133)
(2,287)
610
12
—
—
631
—
637
—
—
—
—
(39)
—
—
54
—
—
6,074
(428)
(10,615)
(3,842)
(2,119)
(559)
—
(175)
(146)
(77)
(6,918)
(2,213)
(782)
—
(225)
(320)
(157)
Other movements within financing activity liabilities include $576 million relating to leases entered into in the year ended 31 December 2023
(2022: $278 million) and $362 million (2022: $8 million) relating to shipping lease revaluations, refer to note 23.
Further information
Reconciliation to the Consolidated balance sheet
US$ million
Balance sheet
Bank overdrafts
Net cash/(debt) classifications
Cash and cash equivalents
Short term borrowings
Medium and
long term borrowings
2023
6,088
(14)
6,074
2022
8,412
(12)
8,400
2023
(1,740)
14
2022
(1,420)
12
2023
(15,172)
2022
(12,945)
—
—
(1,726)
(1,408)
(15,172)
(12,945)
Other
Debit valuation adjustments of $3 million (2022: $29 million) reduce the valuation of derivative liabilities hedging net debt reflecting the impact
of the Group’s own credit risk. These adjustments are excluded from the Group’s definition of net debt.
Cash and cash equivalents includes $532 million which is restricted (2022: $513 million). This primarily relates to cash which is held in joint
operations where the timing of dividends is jointly controlled by the joint operators.
Accounting policy
See note 39F for the Group’s accounting policy on cash and debt.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
255
Net debt and financial risk management
22. Borrowings
Overview
The Group borrows mostly in the capital markets through bonds issued in the US markets and under the Euro Medium Term Note (EMTN)
programme. The Group uses interest rate and cross currency swaps to ensure that the majority of the Group’s borrowings are exposed to floating
rate US dollar interest rates.
As part of its routine financing activities, in March 2023, the Group issued €500 million 4.5% Senior Notes due September 2028 and €500 million
5% Senior Notes due March 2031, and in May 2023, $900 million 5.5% Senior Notes due May 2033.
At 31 December 2022, the following bonds were retained as fixed rate exposure: $193 million 5.375% due April 2025, $99 million 5% due May
2027, $500 million 3.95% due September 2050, and $750 million 4.75% due March 2052. During the year ended 31 December 2023, the Group
converted the following bonds to floating rates of interest for the next ten years by entering into interest rate swaps for a notional amount totalling
$1.25 billion: $500 million 3.95% due September 2050 and $750 million 4.75% due March 2052. All other bonds at 31 December 2023 and
31 December 2022 were swapped to floating rate exposures.
Further information
US$ million
Secured
Bank loans and overdrafts
Leases
Unsecured
Bank loans and overdrafts
Bank sustainability linked loans
Bonds issued under EMTN programme
3.25% €750m bond due April 2023
1.625% €600m bond due September 2025
1.625% €500m bond due March 2026
4.5% €500m bond due September 2028
3.375% £300 million bond due March 2029
5% €500m bond due March 2031
4.75% €745m sustainability linked bond due
September 2032
US bonds
3.625% $650m bond due September 2024
5.375% $193m bond due April 2025
4.875% $339m bond due May 2025
4.75% $700m bond due April 2027
5% $99m bond due May 2027(1)
4% $650m bond due September 2027
2.25% $500m bond due March 2028
4.5% $650m bond due March 2028
3.875% $500m bond due March 2029
5.625% $750m bond due April 2030
2.625% $1bn bond due September 2030
2.875% $500m bond due March 2031
5.5% $900m bond due May 2033
3.95% $500m bond due September 2050
4.75% $750m bond due March 2052
Mitsubishi facility
Interest payable and other loans
Total borrowings
Short term
borrowings
Medium and
long term
borrowings
Total
borrowings
Contractual
repayment at
hedge rates
Short term
borrowings
Medium and
long term
borrowings
Total
borrowings
2023
2022
Contractual
repayment at
hedge rates
43
408
451
489
—
—
—
—
—
—
—
—
635
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
165
71
1,107
1,178
114
1,515
1,629
114
1,515
1,629
503
66
—
637
523
570
341
578
825
—
193
326
664
128
609
448
622
464
753
811
430
874
499
749
992
66
—
637
523
570
341
578
825
635
193
326
664
128
609
448
622
464
753
811
430
874
499
749
2,381
—
2,381
165
992
66
—
714
566
528
395
528
745
650
193
339
700
159
650
500
650
500
750
1,000
500
900
500
750
2,381
165
1,289
13,994
15,283
1,740
15,172
16,912
15,821
17,450
38
184
222
253
—
800
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
145
1,198
1,420
96
676
772
509
40
—
595
485
—
306
—
749
620
192
320
651
120
595
433
612
454
748
780
419
—
490
732
134
860
994
762
40
800
595
485
—
306
—
749
620
192
320
651
120
595
433
612
454
748
780
419
—
490
732
2,323
—
12,173
12,945
2,323
145
13,371
14,365
134
860
994
762
40
1,033
714
566
—
395
—
745
650
193
339
700
159
650
500
650
500
750
1,000
500
—
500
750
2,323
145
14,564
15,558
(1) Bond acquired as part of the acquisition of Sirius Minerals plc (Crop Nutrients). At maturity the bond will be redeemed at 160% of par value.
Accounting policy
See note 39F for the Group’s accounting policies on bank borrowings and lease liabilities.
256
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Net debt and financial risk management
23. Leases
Overview
Leases relate principally to shipping vessels, corporate offices, employee accommodation and diamond jewellery retail outlets. Leases for
shipping vessels typically run for 1 to 10 years and the majority are priced with reference to a freight index and the lease liability is therefore
revalued to the spot freight rate at the end of each period. The leases for office space typically run for 5 to 25 years, employee accommodation
up to 25 years and leases of retail stores 5 to 25 years. Some longer leases incorporate fixed increases in rentals or provide for annual uplifts
based upon an index, typically a measure of inflation.
Further information
Amounts recognised in the Consolidated balance sheet
Lease agreements give rise to the recognition of a right-of-use asset (see note 12) and a related liability for future lease payments (see note 22).
Lease liabilities balance and maturity analysis:
US$ million
Amount due for repayment within one year
Greater than one year, less than two years
Greater than two years, less than three years
Greater than three years, less than four years
Greater than four years, less than five years
Greater than five years
Total due for repayment after more than one year
Total
Effect of discounting
Lease liabilities
Amounts recognised in the statement of profit or loss
US$ million
Depreciation of right-of-use assets (see note 12)
Interest expense for lease liabilities (included in finance costs, see note 4)
Expense relating to short term leases less than 12 months, variable leasing costs and leases of low value
2023
450
266
176
153
124
806
1,525
1,975
(460)
1,515
2023
292
62
145
2022
204
121
96
80
67
579
943
1,147
(287)
860
2022
239
42
167
Amounts recognised in the Consolidated cash flow statement
In the Consolidated cash flow statement for the year ended 31 December 2023, the total amount of cash paid in respect of leases recognised
on the Consolidated balance sheet are split between repayments of principal of $309 million (2022: $266 million) and repayments of interest of
$53 million (2022: $31 million), both included within cash flows from financing activities. The repayment of both principal and interest forms part
of both the Attributable free cash flow and Sustaining attributable free cash flow Alternative Performance Measures (APMs). For more information
on the APMs used by the Group, including definitions, please refer to page 318.
Further disclosures
In addition to the lease commitments above, the Group has lease commitments in relation to leases not yet commenced of $204 million.
Accounting judgements
At the date of inception of a new contract or significant modification of an existing contract, the Group assesses whether the contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the asset for a period of time in exchange for
consideration. To identify lease arrangements, the Group assesses whether:
– The contract specifies the use of an identified asset or collection of assets
– The Group has the right to obtain substantially all of the economic benefits from the use of the identified asset(s)
– The Group has the right to direct the use of the asset(s).
The Group has paid particular attention to the judgement over whether the lessor has a substantive right to substitute the specified assets for
alternatives.
– Many assets used by the Group are highly specialised in nature and are purpose-built or modified to meet the Group’s specification.
Judgement is required to assess whether the assets can be substituted and used for other purposes without significant additional modification.
– The remote location of some of the Group’s operations presents practical difficulties to the substitution of assets. Judgement is required to
determine whether assets in remote locations can be relocated to other locations within a reasonable timeframe and cost.
– At some locations, high levels of security restrict the movement of assets to alternative locations, limiting the ability to substitute assets.
– The Group’s health and safety standards exceed statutory requirements in some jurisdictions. This places limitations on the ability to substitute
certain assets, such as vehicles. Judgement is required to assess whether equivalent assets meeting the Group’s requirements can be sourced
within required operational timeframes.
Accounting policy
Accounting policies applied to lease liabilities and corresponding right-of-use assets are set out respectively in notes 39F and 39D.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
257
Net debt and financial risk management
24. Financial instruments and derivatives
Financial instruments overview
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is
determined by reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows,
considered to be reasonable and consistent with those that would be used by a market participant, and based on observable market data
where available (for example forward exchange rate, interest rate or commodity price curve), unless carrying value is considered to approximate
fair value.
Where discounted cash flow models based on management’s assumptions are used, the resulting fair value measurements are considered to be
at level 3 in the fair value hierarchy, as defined in IFRS 13 Fair Value Measurement, as they depend to a significant extent on unobservable
valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
US$ million
Financial assets
Trade and other receivables
Derivative financial assets
Cash and cash equivalents
Financial asset investments
Environmental rehabilitation trusts(1)
Financial liabilities
Trade and other payables
Derivative financial liabilities
Royalty liability
Borrowings
Net financial assets/(liabilities)
US$ million
Financial assets
Trade and other receivables
Derivative financial assets
Cash and cash equivalents
Financial asset investments
Environmental rehabilitation trusts(1)
Financial liabilities
Trade and other payables
Derivative financial liabilities
Royalty liability
Borrowings
Net financial assets/(liabilities)
At fair value
through profit
and loss
Financial
assets at
amortised cost
At fair value
through other
comprehensive
income
Designated
into hedges
Financial
liabilities at
amortised cost
2,247
241
4,359
73
103
7,023
(668)
(172)
—
—
(840)
6,183
1,082
—
1,729
234
5
3,050
—
—
—
—
—
—
—
—
132
—
132
—
—
—
—
—
3,050
132
—
115
—
—
—
115
—
—
—
—
—
—
—
(570)
(91)
(11,509)
(12,170)
(12,055)
(5,115)
—
(487)
(5,403)
(11,005)
(11,005)
At fair value
through profit
and loss
Financial
assets at
amortised cost
At fair value
through other
comprehensive
income
Designated
into hedges
Financial
liabilities at
amortised cost
2,106
241
6,447
35
100
8,929
(735)
(592)
—
—
(1,327)
7,602
1,114
—
1,965
226
7
3,312
—
—
—
—
—
—
—
—
167
—
167
—
—
—
—
—
3,312
167
—
12
—
—
—
12
—
(737)
(80)
(8,681)
(9,498)
(9,486)
—
—
—
—
—
—
(5,271)
—
(430)
(5,684)
(11,385)
(11,385)
2023
Total
3,329
356
6,088
439
108
10,320
(5,783)
(742)
(578)
(16,912)
(24,015)
(13,695)
2022
Total
3,220
253
8,412
428
107
12,420
(6,006)
(1,329)
(510)
(14,365)
(22,210)
(9,790)
(1) These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations. These obligations are included in
provisions as per note 16.
The Group’s cash and cash equivalents at 31 December 2023 include $4,359 million (2022: $6,447 million) held in high grade money market
funds. These funds are selected to ensure compliance with the minimum credit rating requirements and counterparty exposure limits set out in the
Group’s Treasury policy.
258
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Net debt and financial risk management
24. Financial instruments and derivatives continued
Fair value hierarchy
An analysis of financial assets and liabilities carried at fair value is set out below:
US$ million
Financial assets
At fair value through profit and loss
Provisionally priced trade receivables
Other receivables
Derivatives hedging net debt
Other derivatives
Cash and cash equivalents
Financial asset investments
Environmental rehabilitation trusts(1)
Designated into hedges
Derivatives hedging net debt
At fair value through other comprehensive income
Financial asset investments
Financial liabilities
At fair value through profit and loss
Provisionally priced trade payables
Other payables
Derivatives hedging net debt
Other derivatives
Debit valuation adjustment to derivative liabilities
Designated into hedges
Derivatives hedging net debt
Royalty liability
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
—
—
—
—
4,359
—
—
—
2,113
12
119
122
—
68
103
115
—
122
—
—
—
5
—
—
2023
Total
2,113
134
119
122
73
103
115
4,359
6,447
—
—
—
—
—
—
—
60
1,799
—
49
192
—
31
100
12
—
2022
Total
1,799
307
49
192
6,447
35
100
12
—
307
—
—
—
4
—
—
46
—
4,405
2,652
86
213
132
7,270
6,507
2,183
107
418
167
9,108
—
—
—
—
—
—
—
—
(426)
—
—
(242)
(92)
(82)
3
—
(1)
—
(426)
(242)
(92)
(83)
3
(570)
—
—
(91)
(570)
(91)
(1,167)
(334)
(1,501)
—
—
—
—
—
—
—
—
(368)
—
—
(367)
(416)
(205)
29
(737)
—
—
—
—
—
(80)
(368)
(367)
(416)
(205)
29
(737)
(80)
(1,697)
(447)
(2,144)
Net assets carried at fair value
4,405
1,485
(121)
5,769
6,507
486
(29)
6,964
(1) These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations. These obligations are included in
provisions as per note 16.
Fair value hierarchy Valuation technique
Level 1
Level 2
Level 3
Valued using unadjusted quoted prices in active markets for identical financial instruments. This category includes cash and cash
equivalents held in money market funds, listed equity shares and quoted futures.
Instruments in this category are valued using valuation techniques where all of the inputs that have a significant effect on the
valuation are directly or indirectly based on observable market data. This category includes provisionally priced trade receivables
and payables and over-the-counter derivatives.
Instruments in this category have been valued using a valuation technique where at least one input (which could have a significant
effect on the instrument’s valuation) is not based on observable market data. Where inputs can be observed from market data
without undue cost and effort, the observed input is used. Otherwise, management determines a reasonable estimate for the input.
This category includes deferred consideration, receivables relating to disposals, unlisted equity investments and the embedded
derivative relating to the Royalty liability.
The movements in the fair value of the level 3 financial assets and liabilities are shown as follows:
US$ million
At 1 January
Net (loss)/profit recorded in the income statement
Net (loss)/profit recorded in the statement of comprehensive income
Reclassification (from)/to level 3 financial assets/(liabilities)
Additions
Settlements and disposals
Currency movements
At 31 December
2023
418
(22)
(12)
(7)
94
(233)
(25)
213
Assets
2022
830
(79)
53
9
22
(388)
(29)
418
2023
(447)
9
(11)
(23)
—
119
19
Liabilities
2022
(464)
(73)
(80)
—
—
153
17
(334)
(447)
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
259
Net debt and financial risk management
24. Financial instruments and derivatives continued
Further information on financial instruments
Borrowings designated in fair value hedges represent listed debt which is held at amortised cost, adjusted for the fair value of the hedged interest
rate risk. The fair value of these borrowings is $11,546 million (2022: $8,846 million), which is measured using quoted indicative broker prices and
consequently categorised as level 2 in the fair value hierarchy. The carrying value of the remaining borrowings at amortised cost includes bonds
which are not designated into hedge relationships, bank borrowings and lease liabilities. The carrying value of these bonds is $323 million
(2022: $1,608 million) and the fair value is $330 million (2022: $1,381 million). The carrying value of the remaining borrowings at amortised cost
are considered to approximate the fair value.
Offsetting of financial assets and liabilities
The Group offsets financial assets and liabilities and presents them on a net basis in the Consolidated balance sheet only where there is a legally
enforceable right to offset the recognised amounts, and the Group intends to either settle the recognised amounts on a net basis or to realise the
asset and settle the liability simultaneously.
At 31 December 2023, certain over-the-counter derivatives entered into by the Group and recognised at fair value through profit and loss are
both subject to enforceable ISDA master netting arrangements and intended to be settled on a net basis. In accordance with the requirements
of IAS 32 Financial Instruments: Presentation, the positions of these derivatives have been offset; those in a liability position totalling $9 million
(2022: $7 million) were offset against those in an asset position totalling $281 million (2022: $149 million). The net asset position of $272 million
(2022: $142 million) is presented within derivative assets (2022: within derivative assets) in the Consolidated balance sheet.
If certain credit events (such as default) were to occur, additional derivative instruments would be settled on a net basis under ISDA agreements.
Interest rate and cross currency interest rate swaps in an asset position totalling $243 million (2022: $78 million) would be offset against those in
a liability position totalling $681 million (2022: $1,129 million). These instruments are presented on a gross basis in the Consolidated balance
sheet as the Group does not have a legally enforceable right to offset the amounts in the absence of a credit event occurring.
Royalty liability
When the Group acquired the Woodsmith project, the Hancock royalty liability and related embedded derivative were recognised. The royalty
liability and associated derivative does not form part of borrowings on the basis that obligations to make cash payments against this liability only
arise when the Woodsmith project generates revenues, and that otherwise the Group is not currently contractually liable to make any payments
under this arrangement (other than in the event of Anglo American Crop Nutrients Limited’s insolvency).
Derivatives overview
The Group utilises derivative instruments to manage certain market risk exposures; however, it may choose not to designate certain derivatives as
hedges for accounting purposes. Such derivatives are classified as ‘Held for trading’ and fair value movements are recorded in the Consolidated
income statement.
The use of derivative instruments is subject to limits and the positions are regularly monitored and reported to senior management.
Fair value hedges
In accordance with the Group’s policy, interest rate swaps are taken out to swap the Group’s fixed rate borrowings to floating rate. These have
been designated as fair value hedges. The carrying value of the hedged debt is adjusted at each balance sheet date to reflect the impact on
its fair value of changes in market interest rates. At 31 December 2023, this adjustment was to decrease the carrying value of borrowings by
$508 million (2022: $787 million decrease). Changes in the fair value of the hedged debt are offset against fair value changes in the interest rate
swap and recognised in the Consolidated income statement as financing remeasurements. Recognised in the Consolidated income statement
is a loss on fair value hedged items of $279 million (2022: $894 million gain), offset by a gain on fair value hedging instruments of $274 million
(2022: $906 million loss).
Cash flow hedges
The royalty liability contains an embedded derivative as future payments are linked directly to future revenues. The Group has designated this
embedded derivative as a cash flow hedge of future revenue from the Woodsmith project. During the year the Group recognised a loss within
other comprehensive income of $11 million (2022: loss of $80 million) and a liability of $91 million (2022: liability of $80 million) within the royalty
liability in respect of this derivative.
Held for trading
The Group may choose not to designate certain derivatives as hedges. This may occur where the Group is economically hedged but IFRS 9
Financial Instruments hedge accounting cannot be achieved or where gains and losses on both the derivative and hedged item naturally offset
in the Consolidated income statement, as is the case for certain cross currency swaps of non-US dollar debt. A fair value gain of $149 million in
respect of these cross currency swaps has been recognised in the Consolidated income statement (2022: loss of $1 million) and is presented
within financing remeasurements net of foreign exchange losses on the related borrowings of $149 million (2022: gains of $30 million). Fair value
changes on held for trading derivatives are recognised in the Consolidated income statement as remeasurements or within underlying earnings
in accordance with the policy set out in note 9.
260
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Net debt and financial risk management
24. Financial instruments and derivatives continued
Further information on derivatives
Fair value of derivative positions
The fair value of the Group’s open derivative positions at 31 December (excluding normal purchase and sale contracts held off balance sheet)
recorded within ‘Derivative financial assets’ and ‘Derivative financial liabilities’, is as follows:
US$ million
Derivatives hedging net debt
Fair value hedge
Interest rate swaps
Held for trading
Cross currency swaps
Debit valuation adjustment to derivative liabilities
Other derivatives
Total derivatives
2023
Current
2022
2023
Non-current
2022
Asset
Liability
Asset
Liability
Asset
Liability
Asset
Liability
—
—
—
—
118
118
(11)
12
—
115
(559)
—
(737)
—
—
(11)
(83)
(94)
—
—
12
192
204
(265)
29
(236)
(205)
(441)
119
—
234
4
238
(92)
3
(648)
—
(648)
49
—
49
—
49
(151)
—
(888)
—
(888)
Other derivatives primarily relate to forward foreign currency contracts hedging capital expenditure, forward commodity contracts and other
commodity contracts that are accounted for as ‘Held for trading’. These marked to market valuations are not predictive of the future value of
the hedged position, nor of the future impact on the profit of the Group. The valuations represent the cost of closing all hedge contracts at
31 December, at market prices and rates available at the time.
Interest Rate Benchmark Reform
Benchmark transition progress
The Group transitioned all remaining trades referenced to the USD LIBOR rate to incorporate alternative risk-free rates with the principal
benchmarks used now being EURIBOR, SOFR and SONIA. The Group does not hold any material lease agreements that contain references to
existing benchmarks and as a result there is no material impact on the lease liabilities or right-of-use assets at 31 December 2023. Further details
of the Group’s transition is included in note 39F.
Fair value of financial instruments
Certain of the Group’s financial instruments, principally derivatives, are required to be measured on the balance sheet at fair value. Where a
quoted market price for an identical instrument is not available, a valuation model is used to estimate the fair value based on the net present value
of the expected cash flows under the contract. Valuation assumptions are usually based on observable market data (for example forward foreign
exchange rate, interest rate or commodity price curves) where available.
Accounting policies
See notes 39D and 39F for the Group’s accounting policies on financial asset investments, impairment of financial assets, derivative financial
instruments and hedge accounting.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
261
Net debt and financial risk management
25. Financial risk management
Overview
The Board approves and monitors the risk management processes, including documented treasury policies, counterparty limits and controlling
and reporting structures. The risk management processes of the Group’s independently listed subsidiaries are in line with the Group’s own
policies.
The types of risk exposure, the way in which such exposure is managed and quantification of the level of exposure in the Consolidated balance
sheet at 31 December is as follows:
– Liquidity risk
– Credit risk
– Commodity price risk
– Foreign exchange risk
– Interest rate risk.
A. Liquidity risk
The Group ensures that there are sufficient committed loan facilities (including refinancing, where necessary) in order to meet short term business
requirements, after taking into account cash flows from operations and its holding of cash and cash equivalents, as well as any Group distribution
restrictions that exist. In addition, certain projects may be financed by means of limited recourse project finance, if appropriate.
Certain borrowing facilities within the Group are the subject of financial covenants that vary from facility to facility, but which would be considered
normal for such facilities, such as the ratio of debt to tangible net worth. The respective borrowers were not in breach with these financial
covenants as at 31 December 2023.
The expected undiscounted cash flows of the Group’s financial liabilities, by remaining contractual maturity, based on conditions existing at the
balance sheet date, are as follows:
US$ million
Net financial liabilities
Borrowings
Expected future interest payments
Derivatives hedging debt – net settled
Derivatives hedging debt – gross settled:
– gross inflows
– gross outflows
Other financial liabilities
Total
US$ million
Net financial liabilities
Borrowings
Expected future interest payments
Derivatives hedging debt – net settled
Derivatives hedging debt – gross settled:
– gross inflows
– gross outflows
Other financial liabilities
Total
Amount due for
repayment
within one year
Greater than
one year, less
than two
years
Greater than
two years, less
than three
years
Greater than
three years,
less than four
years
Greater than
four years, less
than five years
Greater than
five years
2023
Total
(1,590)
(1,523)
(1,166)
(1,651)
(1,805)
(9,726)
(17,461)
(547)
(257)
496
(560)
(5,651)
(8,109)
(491)
(122)
721
(801)
—
(460)
(73)
578
(595)
(11)
(430)
(67)
(359)
(45)
(2,140)
(4,427)
(61)
(625)
20
(22)
(8)
19
(22)
(14)
387
(400)
(445)
2,221
(2,400)
(6,129)
(2,216)
(1,727)
(2,158)
(2,226)
(12,385)
(28,821)
Amount due for
repayment
within one year
Greater than
one year, less
than two
years
Greater than
two years, less
than three
years
Greater than
three years,
less than four
years
Greater than
four years, less
than five years
Greater than
five years
2022
Total
(1,267)
(459)
(237)
1,044
(1,343)
(5,963)
(8,225)
(773)
(420)
(198)
80
(104)
(95)
(1,340)
(1,056)
(1,568)
(379)
(127)
709
(796)
—
(350)
(87)
563
(595)
(15)
(321)
(79)
22
(22)
(14)
(9,077)
(2,012)
(115)
(15,081)
(3,941)
(843)
388
(423)
(358)
2,806
(3,283)
(6,445)
(1,510)
(1,933)
(1,540)
(1,982)
(11,597)
(26,787)
The table above does not include cash flows in relation to the Woodsmith royalty financing on the basis that cash flows under this arrangement
are not contractually defined, but instead are wholly dependent upon Woodsmith revenue in future years. However, should the Woodsmith
primary subsidiary, Anglo American Crop Nutrients Limited, enter insolvency, then it would be required to repay Hancock the principal value of
$250 million upon its request.
262
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Net debt and financial risk management
25. Financial risk management continued
The Group had the following undrawn committed borrowing facilities at 31 December:
US$ million
Expiry date
Within one year
Greater than one year, less than two years
Greater than two years, less than three years
Greater than three years, less than four years
Greater than four years, less than five years
Greater than five years
2023
2022
1,383
691
789
547
3,747
1
414
1,082
5,632
—
587
—
7,158
7,715
In the second half of 2023, the Group refinanced its $4.7 billion revolving credit facility maturing in March 2025, to a one year $1.0 billion facility
maturing in November 2024, and a $3.7 billion five year facility maturing in November 2028.
B. Credit risk
Credit risk is the risk that a counterparty to a financial instrument will cause a loss to the Group by failing to pay its obligation.
The Group’s principal financial assets are cash, trade and other receivables, investments and derivative financial instruments. The Group’s
maximum exposure to credit risk primarily arises from these financial assets and is as follows:
US$ million
Cash and cash equivalents
Trade and other receivables
Financial asset investments
Derivative financial assets
Environmental rehabilitation trust
2023
6,088
3,329
307
356
108
2022
8,412
3,220
261
253
107
10,188
12,253
The Group limits credit risk on liquid funds and derivative financial instruments through diversification of exposures with a range of financial
institutions. Counterparty limits are set for each financial institution with reference to credit ratings assigned by Standard & Poor’s, Moody’s and
Fitch Ratings, shareholder equity (in the case of relationship banks) and fund size (in the case of asset managers).
Given the diverse nature of the Group’s operations (both in relation to commodity markets and geographically), and the use of payment security
instruments (including letters of credit from financial institutions), it does not have significant concentration of credit risk in respect of trade
receivables, with exposure spread over a large number of customers.
The classification of trade and other receivables excludes prepayments and tax receivables, the classification of financial asset investments
excludes equity investments held at fair value through other comprehensive income.
C. Commodity price risk
The Group’s earnings are exposed to movements in the prices of the commodities it produces.
The Group’s policy is to sell its products at prevailing market prices and is generally not to hedge commodity price risk, although some hedging
may be undertaken for strategic reasons. In such cases, the Group generally uses forward contracts and other derivative instruments to
economically hedge the price risk.
Certain of the Group’s sales and purchases are provisionally priced, meaning that the selling price is determined normally 30 to 180 days after
delivery to the customer, based on quoted market prices stipulated in the contract, and as a result are susceptible to future price movements.
The exposure of the Group’s financial assets and liabilities to commodity price risk is as follows:
US$ million
Total net financial instruments
(excluding derivatives)
Derivatives
Commodity price linked
Subject to
price
movements
Fixed price
Not linked to
commodity
price
2023
Total
Commodity price linked
Subject to
price
movements
Fixed price
Not linked to
commodity
price
2022
Total
1,691
42
1,733
67
—
67
(15,067)
(13,309)
1,254
(428)
(386)
(13)
(15,495)
(13,695)
1,241
203
—
203
(10,171)
(1,063)
(11,234)
(8,714)
(1,076)
(9,790)
Commodity price linked financial instruments subject to price movements include provisionally priced trade receivables and trade payables.
Commodity price linked financial instruments at fixed price include receivables and payables for commodity sales and purchases no longer
subject to price adjustment at the balance sheet date.
D. Foreign exchange risk
As a global business, the Group is exposed to many currencies principally as a result of non-US dollar operating costs and, to a lesser extent, from
non-US dollar revenue.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
263
Net debt and financial risk management
25. Financial risk management continued
The South African rand, Australian dollar, Chilean peso, and Brazilian real are the most significant non-US dollar currencies influencing costs.
A strengthening of the US dollar against the currencies to which the Group is exposed has a positive effect on the Group’s earnings. The Group’s
policy is generally not to hedge such exposures given the correlation, over the longer term, with commodity prices and the diversified nature of the
Group, although exceptions can be approved by a committee with delegated authority from the Executive Leadership Team.
In addition, currency exposures exist in respect of non-US dollar capital expenditure projects and non-US dollar borrowings in US dollar functional
currency entities. The Group’s policy is to evaluate whether or not to hedge its non-US dollar capital expenditure on a case-by-case basis, taking
into account the estimated foreign exchange exposure, liquidity of foreign exchange markets and the cost of executing a hedging strategy.
Further detail with respect to the Group’s non-US dollar borrowings approach is included in note 22.
Net other financial liabilities (excluding net debt related balances, variable vessel leases and cash in disposal groups, but including the debit
valuation adjustment attributable to derivatives hedging net debt) are $2,443 million. This includes net assets of $220 million denominated in
US dollars, and net liabilities of $506 million denominated in Brazilian real, $413 million denominated in Australian dollars, $343 million
denominated in Chilean pesos and $949 million denominated in South African rand.
E. Interest rate risk
Interest rate risk arises due to fluctuations in interest rates which impact the value of short term investments and financing activities. The Group
is principally exposed to US and South African interest rates.
The Group transitioned all derivative instruments referenced to USD LIBOR to alternative risk-free rates during the year. Please see note 39F for
further details.
The Group’s policy is to borrow funds at fixed rates of interest. The Group uses interest rate derivatives to convert the majority of borrowings to
floating rates of interest and manage its exposure to interest rate movements on its debt.
In respect of financial assets, the Group’s policy is to invest cash at floating rates of interest and to maintain cash reserves in short term
investments (less than one year) in order to maintain liquidity.
Analysis of interest rate risk associated with net debt balances and the impact of derivatives to hedge against this risk is included within the table
below. Net other financial liabilities (excluding net debt related balances, variable vessel leases and cash in disposal groups, but including the
debit valuation adjustment attributable to derivatives hedging net debt) of $2,443 million (2022: $2,745 million) are primarily non-interest bearing.
The table below reflects the exposure of the Group’s net debt to currency and interest rate risk:
US$ million
US dollar
Euro
South African rand
Brazilian real
Australian dollar
Sterling
Other
Impact of interest rate derivatives
Total
Reconciliation:
Variable vessel leases
Net debt
US$ million
US dollar
Euro
South African rand
Brazilian real
Australian dollar
Sterling
Other
Impact of interest rate derivatives
Total
Reconciliation:
Variable vessel leases
Net debt
Cash
and cash
equivalents
5,058
22
280
16
254
95
349
—
Floating rate
borrowings
Fixed rate
borrowings
Derivatives
hedging
net debt
Impact of
currency
derivatives
(3,049)
—
(240)
—
—
(7)
(3)
(11,509)
(9,432)
(3,185)
(150)
(38)
(43)
(663)
(88)
11,509
(428)
—
—
—
—
—
—
—
(428)
(3,534)
3,183
—
—
—
351
—
—
6,074
(14,808)
(2,090)
—
(11,252)
2023
Total
(11,385)
20
(110)
(22)
211
(224)
258
—
Cash
and cash
equivalents
6,667
29
421
735
161
84
303
—
Floating rate
borrowings
Fixed rate
borrowings
(2,994)
—
(11)
—
—
(6)
(1)
(8,682)
(7,742)
(2,673)
(168)
(18)
(45)
(613)
(82)
8,682
Derivatives
hedging
net debt
(1,092)
—
—
—
—
—
—
—
Impact of
currency
derivatives
(2,985)
2,669
—
—
—
316
—
—
8,400
(11,694)
(2,659)
(1,092)
—
637
(10,615)
2022
Total
(8,146)
25
242
717
116
(219)
220
—
(7,045)
127
(6,918)
Based on the net foreign currency and interest rate risk exposures detailed above, and taking into account the effects of the hedging
arrangements in place, management considers that earnings and equity are not materially sensitive to reasonable foreign exchange or interest
rate movements in respect of the financial instruments held as at 31 December 2023 or 2022.
264
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Equity
Equity represents the capital of the Group
attributable to Company shareholders and non-
controlling interests, and includes share capital,
share premium and reserves.
Total equity
$31.6 bn
(2022: $34.0 bn)
Total equity has decreased from $34.0 billion to $31.6 billion in
the year, driven by dividends to Company shareholders and
non-controlling interests of $2.5 billion.
26. Called-up share capital and consolidated equity analysis
Called-up share capital
Ordinary shares of 5486/91 US cents each:
At 1 January
Shares cancelled(1)
At 31 December
Number of shares
US$ million
Number of shares
US$ million
2023
2022
1,337,577,913
734
1,341,651,975
—
—
(4,074,062)
1,337,577,913
734
1,337,577,913
737
(3)
734
(1) During the year, no shares were cancelled under the buyback programme. In 2022, 4,074,062 shares were cancelled under the buyback programme.
The number and carrying value of called-up, allotted and fully paid ordinary shares as at 31 December 2023 (including the shares held by the
Group in other structures, as outlined below) was 1,337,577,913 and $734 million (2022: 1,337,577,913 and $734 million).
At general meetings, every member who is present in person has one vote on a show of hands and, on a poll, every member who is present in
person or by proxy has one vote for every ordinary share held.
Own shares
Own shares
Number of shares
US$ million
Number of shares
US$ million
2023
2022
Own shares held by subsidiaries and employee benefit trusts
Total
125,245,665
125,245,665
6,275
124,618,014
6,275
124,618,014
6,272
6,272
Included in Own shares are 112,300,129 (2022: 112,300,129) Anglo American plc shares held by Epoch Investment Holdings (RF) Proprietary
Limited, Epoch Two Investment Holdings (RF) Proprietary Limited and Tarl Investment Holdings (RF) Proprietary Limited, which are consolidated
by the Group by virtue of their contractual arrangements with Tenon Investment Holdings Proprietary Limited, a wholly owned subsidiary of
Anglo American South Africa Proprietary Limited. Further details of these arrangements are provided in note 39B.
Included in the calculation of the dividend payable are 4,561,006 ($115 million) shares held in the Employee Benefit Trust in respect of forfeitable
share awards granted to certain employees. Under the terms of these awards, the shares are beneficially owned by the respective employees,
who are entitled to receive dividends in respect of the shares. The shares are released to the employees on vesting of the awards, and any shares
that do not vest are returned to the Company or the Employee Benefit Trust. These shares are recognised on the Consolidated balance sheet
within Own shares and are excluded from the calculation of basic earnings per share. They are included in the calculation of diluted earnings per
share to the extent that the related share awards are dilutive (see note 3).
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
265
Equity
26. Called-up share capital and consolidated equity analysis continued
Consolidated equity analysis
Fair value and other reserves comprise:
US$ million
At 1 January 2022
Other comprehensive income/(loss)
Equity settled share-based payment schemes
Cancellation of treasury shares
Other
At 31 December 2022
Other comprehensive loss
Equity settled share-based payment schemes
Other
At 31 December 2023
Share-based
payment
reserve
460
Financial
asset
revaluation
reserve
31
—
1
—
(4)
457
—
25
(3)
479
31
—
—
(32)
30
(36)
—
4
(2)
Other
reserves
160
Total
fair value
and other
reserves
651
(80)
(49)
—
3
19
102
(11)
—
1
92
1
3
(17)
589
(47)
25
2
569
Other reserves comprise a capital redemption reserve of $153 million (2022: $153 million) and other reserves.
27. Non-controlling interests
Overview
Non-controlling interests that are material to the Group relate to the following subsidiaries:
– Anglo American Sur S.A. (Anglo American Sur) is a company incorporated in Chile. Its principal operations are the Los Bronces and El Soldado
copper mines and the Chagres smelter, which are located in Chile. Non-controlling interests hold a 49.9% (2022: 49.9%) interest in
Anglo American Sur.
– Anglo American Quellaveco S.A. (Anglo American Quellaveco) is a company incorporated in Peru. Its principal operation is the Quellaveco
copper mine, which is located in Peru. Non-controlling interests hold a 40.0% (2022: 40.0%) interest in Anglo American Quellaveco.
– Anglo American Platinum Limited (Anglo American Platinum) is a company incorporated in South Africa and listed on the Johannesburg Stock
Exchange (JSE). Its principal mining operations are the Mogalakwena and Amandelbult platinum group metals mines, which are located in
South Africa. Non-controlling interests hold an effective 20.8% (2022: 20.8%) interest in the operations of Anglo American Platinum, which
represents the whole of the Platinum Group Metals reportable segment.
– De Beers plc (De Beers) is a company incorporated in Jersey. It is one of the world’s leading diamond companies with operations across all key
parts of the diamond value chain. Non-controlling interests hold a 15.0% (2022: 15.0%) interest in De Beers, which represents the whole of the
Diamonds reportable segment.
– Kumba Iron Ore Limited (Kumba Iron Ore) is a company incorporated in South Africa and listed on the JSE. Its principal mining operations are
the Sishen and Kolomela iron ore mines, which are located in South Africa. Non-controlling interests hold an effective 46.6% (2022: 46.6%)
interest in the operations of Kumba Iron Ore, comprising the 30.0% (2022: 30.0%) interest held by other shareholders in Kumba Iron Ore and
the 23.7% (2022: 23.7%) of Kumba Iron Ore’s principal operating subsidiary, Sishen Iron Ore Company Proprietary Limited, that is held by
shareholders outside the Group.
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group,
including definitions, please refer to page 318.
US$ million
Sur Quellaveco
Anglo
American
Anglo
American
Platinum
De
Beers
Kumba
Iron Ore Other
Anglo
American
Total
Sur Quellaveco
Anglo
American
Platinum
De
Beers
Kumba
Iron Ore Other
Total
2023
2022
Underlying earnings
attributable to non-
controlling interests
(Loss)/profit attributable to
non-controlling interests
Distributions paid to non-
controlling interests(1)
Balance sheet information:
Equity attributable to non-
controlling interests(2)
(92)
317
181
(56) 757
2
1,109
(93)
319
170
(89) 753
1
1,061
88
88
63
653
105
682
26
1,617
65
641
103
586
27
1,510
—
(320)
(149) (46) (420) (43) (978)
(234)
—
(754) (21) (738) (47) (1,794)
1,532
987
1,148
1,210 1,668
15
6,560
1,630
988
1,202
1,378 1,434
3
6,635
(1)
Includes payments of $320 million related to share buy-backs at Quellaveco and dividend payments of $658 million.
(2) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
266
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Equity
27. Non-controlling interests continued
Further information
Summarised financial information on a 100% basis and before inter-company eliminations for Anglo American Sur, Quellaveco, Anglo American
Platinum, De Beers and Kumba Iron Ore is as follows:
US$ million
Non-current assets
Current assets
Current liabilities
Non-current liabilities
Net assets (restated)(1)
Revenue
(Loss)/profit for the financial year(2)
Total comprehensive (expense)/income
2023
2022
Anglo
American
Sur Quellaveco
8,831
5,154
Anglo
American
Platinum De Beers
6,422
6,249
Kumba
Iron Ore
3,229
Anglo
American
Sur
4,890
Quellaveco
(restated)(1)
8,194
Anglo
American
Platinum De Beers
8,023
6,125
Kumba
Iron Ore
3,104
891
1,306
3,758
4,585
2,129
1,231
1,188
5,296
5,147
1,818
(1,003)
(869) (2,531)
(939) (798)
(1,036)
(563)
(3,425)
(949)
(915)
(1,968)
(6,800) (1,416) (2,808) (858)
(1,817)
(6,352)
(1,531) (2,489)
(802)
3,074
2,468
6,060
7,260
3,702
3,268
2,467
6,465
9,732
3,205
2,382
2,722
6,734
4,198
4,674
2,758
(186)
(195)
798
798
692
(1,989) 1,604
261
(2,328) 1,423
177
160
772
600
162
162
10,096
6,609
4,612
3,053
633
1,247
2,592
57
1,034
(193)
2,869
1,112
1,746
Net cash inflow/(outflow) from operating activities
318
1,704
899
(513) 1,584
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
(2) Stated after special items and remeasurements.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
267
Employees
This section contains information about the
Group’s employee numbers and associated costs
as well as the post employment benefits incurred
by the Group.
Employees(1)
58,000
(2022: 57,000)
(1)Excluding contractors and associates’ and joint ventures’ employees and including
a proportionate share of employees within joint operations.
28. Employee numbers and costs
Employee numbers
The average number of employees, excluding contractors and associates’ and joint ventures’ employees and including a proportionate
share of employees within joint operations, by segment was:
Thousand
Copper
Nickel
Platinum Group Metals(1)
De Beers
Iron Ore
Steelmaking Coal
Crop Nutrients
Corporate and other
2023
2022(1)
5
1
27
9
9
3
1
3
5
1
27
9
9
2
1
3
58
57
(1) Platinum Group Metals prior year number of employees was restated to exclude contractors.
The average number of employees, excluding contractors and associates’ and joint ventures’ employees and including a proportionate share of
employees within joint operations, by principal location of employment was:
Thousand
South Africa(1)
Other Africa
South America
North America
Australia and Asia
Europe
(1) Prior year number of employees in South Africa was restated to exclude contractors.
Employee costs
Payroll costs in respect of the employees included in the tables above were:
US$ million
Wages and salaries
Social security costs
Post employment benefits
Share-based payments
Total payroll costs
Reconciliation:
Less: Employee costs capitalised
Less: Employee costs included within special items
Employee costs included in operating costs before special items and remeasurements
2023
36
4
10
1
4
3
58
2022(1)
36
5
9
1
3
3
57
2023
3,357
181
365
193
2022
3,180
193
258
218
4,096
3,849
(160)
(97)
3,839
(219)
—
3,630
Post employment benefits include contributions to defined contribution pension and medical plans, current and past service costs related to
defined benefit pension and medical plans and other benefits provided to certain employees during retirement.
268
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Employees
28. Employee numbers and costs continued
Key management
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the
Group, directly or indirectly, including any director (executive and non-executive) of the Group. Key management comprises members of the
Board and the Executive Leadership Team.
Compensation for key management was as follows:
US$ million
Salaries and short term employee benefits
Social security costs
Termination benefits
Post employment benefits
Share-based payments
2023
31
10
3
2
18
64
2022
30
12
1
2
20
65
Disclosure of directors’ emoluments, pension entitlements, share options and long term incentive plan awards required by the Companies Act
2006 and those specified for audit by Part 3 and Schedule 8 of the Large and Medium-Sized Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2013 are included in the Remuneration report.
29. Retirement benefits
Overview
The Group operates a number of defined contribution and defined benefit pension plans with the most significant plans being in South Africa and
the United Kingdom. It also operates post employment medical plans, the majority of which are unfunded, principally in South Africa. The post
employment medical plans provide health benefits to retired employees and certain dependants.
Defined contribution plans
The charge for the year for defined contribution pension plans (net of amounts capitalised) was $171 million (2022: $153 million) and for defined
contribution medical plans (net of amounts capitalised) was $68 million (2022: $61 million).
Defined benefit pension plans and post employment medical plans
Characteristics of plans
The majority of the defined benefit pension plans are funded. The assets of these plans are held separately from those of the Group, in
independently administered funds, in accordance with statutory requirements or local practice in the relevant jurisdiction. The responsibility for the
governance of the funded retirement benefit plans, including investment and funding decisions, lies with the Trustees of each scheme. The
unfunded liabilities are principally in relation to termination indemnity plans in Chile.
South Africa
The defined benefit pension plan in South Africa is in surplus. It is closed to new members and closed to future benefit accrual except for a small
number of members. As the plan is in surplus no employer contributions are currently being made. The Group’s provision of anti-retroviral therapy
to HIV positive staff does not significantly impact the post employment medical plan liability.
United Kingdom
The Group operates a number of funded pension plans in the United Kingdom. These plans are closed to new members and to the future accrual
of benefits. The Group is committed to make payments to certain United Kingdom pension plans under deficit funding plans agreed with the
respective Trustees.
Other
Other pension and post employment medical plans primarily comprise obligations in Chile where legislation requires employers to provide for
a termination indemnity, entitling employees to a cash payment made on the termination of an employment contract.
Contributions
Employer contributions are made in accordance with the terms of each plan and may vary from year to year. Employer contributions made to
funded pension plans in the year ended 31 December 2023 were $6 million (2022: $4 million). In addition, $17 million (2022: $14 million) of
benefits were paid in relation to unfunded pension plans and $13 million (2022: $14 million) of benefits were paid in relation to post employment
medical plans. The Group expects to contribute $32 million to its pension plans and $14 million to its post employment medical plans in 2024.
Income statement
The amounts recognised in the Consolidated income statement are as follows:
US$ million
Charged to operating costs
Net (credit)/charge to net finance costs
Total net charge to the income statement
Pension
plans
18
Post
employment
medical plans
1
(2)
16
20
21
2023
Total
19
18
37
Pension
plans
15
Post
employment
medical plans
2
5
20
20
22
2022
Total
17
25
42
Net (credit)/charge to net finance costs includes interest expense on surplus restriction of $11 million (2022: $15 million).
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
269
Employees
29. Retirement benefits continued
Comprehensive income
The pre-tax amounts recognised in the Consolidated statement of comprehensive income are as follows:
US$ million
Return on plan assets, excluding interest income
Actuarial (losses)/gains on plan liabilities
Movement in surplus restriction
Remeasurement of net defined benefit obligation
Pension
plans
(32)
(64)
18
(78)
Post
employment
medical plans
(2)
9
—
7
2023
Total
(34)
(55)
18
(71)
Pension
plans
(1,576)
1,239
38
(299)
Post
employment
medical plans
(14)
26
—
12
2022
Total
(1,590)
1,265
38
(287)
Actuarial gains on plan liabilities comprise net gains from changes in financial and demographic assumptions as well as experience on plan
liabilities. The tax amounts arising on remeasurement of the net defined benefit obligations are disclosed in note 5.
Balance sheet
A summary of the movements in the net pension plan assets and retirement benefit obligations on the Consolidated balance sheet is as follows:
US$ million
Net (liability)/asset recognised at 1 January
Net income statement charge before special items
Remeasurement of net defined benefit obligation
Employer contributions to funded pension plans
Benefits paid to unfunded plans
Effects of curtailments/settlements
Other
Currency movements
Net liability recognised at 31 December
Amounts recognised as:
Defined benefit pension plans in surplus
Retirement benefit obligation – pension plans
Retirement benefit asset – medical plans
Retirement benefit obligation – medical plans
2023
(56)
(37)
(71)
6
30
2
(32)
32
(126)
339
(285)
66
(246)
(126)
2022
284
(42)
(287)
4
28
—
—
(43)
(56)
381
(243)
73
(267)
(56)
The Group, in consultation with scheme and legal advisers, has determined that once all beneficiaries of the schemes have been settled the full
economic benefit of the surplus of each of the schemes would become payable to the relevant Group company. Therefore, defined benefit
pension plans and post retirement medical plans assets are included in Pension asset surplus and other non-current assets on the Consolidated
balance sheet.
Further information
Movement analysis
The changes in the fair value of plan assets are as follows:
US$ million
At 1 January
Interest income
Return on plan assets, excluding interest income
Contributions paid by employer to funded pension plans
Benefits paid
Effects of curtailments/settlements
Other
Currency movements
As at 31 December
Pension
plans
3,315
Post
employment
medical plans
84
190
(32)
5
(198)
(33)
(19)
104
3,332
7
(2)
1
(7)
—
—
(8)
75
2023
Total
3,399
197
(34)
6
(205)
(33)
(19)
96
3,407
Pension
plans
5,450
142
Post
employment
medical plans
102
9
2022
Total
5,552
151
(1,576)
(14)
(1,590)
3
(214)
—
7
(497)
3,315
1
(7)
—
—
(7)
84
4
(221)
—
7
(504)
3,399
270
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Employees
29. Retirement benefits continued
The changes in the present value of defined benefit obligations are as follows:
US$ million
At 1 January
Current service costs
Interest costs
Actuarial (losses)/gains
Benefits paid
Effects of curtailments/settlements
Other
Currency movements
As at 31 December
Post
employment
medical plans
Post
employment
medical plans
Pension
plans
(3,068)
(18)
(177)
(64)
215
35
(13)
(93)
(278)
(1)
(27)
9
20
—
—
22
2023
Total
(3,346)
(19)
(204)
(55)
235
35
(13)
(71)
Pension
plans
(4,811)
(15)
(132)
1,239
228
—
(7)
430
(315)
(2)
(29)
26
21
—
—
21
2022
Total
(5,126)
(17)
(161)
1,265
249
—
(7)
451
(3,183)
(255)
(3,438)
(3,068)
(278)
(3,346)
The most significant actuarial loss arose from changing financial assumptions totalling $78 million (2022: $1,353 million actuarial gain).
Pension plan assets and liabilities by geography
The split of the present value of funded and unfunded obligations in defined benefit pension plans and the fair value of pension assets at
31 December is as follows:
US$ million
Corporate bonds
Government bonds
Debt (Repurchase Agreements)
Equity
Cash
Other
Fair value of pension plan assets
Active members
Deferred members
Pensioners
Present value of funded obligations
Present value of unfunded obligations
Net surplus/(deficit) in pension plans
Surplus restriction
Recognised retirement benefit assets/(liabilities)
Non-current assets – pension asset surplus
Retirement benefit obligation – pension plans
South
Africa
96
326
United
Kingdom
1,427
1,313
(39)
(452)
77
14
12
1
448
37
486
2,774
(3)
(1)
—
(629)
(387)
(1,832)
(391)
(2,461)
—
95
(95)
—
—
—
(32)
281
—
281
338
2023
Total
1,524
1,705
(491)
83
462
49
3,332
(9)
(633)
(2,285)
(2,927)
(256)
149
(95)
54
339
Other
1
66
—
5
—
—
72
(6)
(3)
(66)
(75)
(224)
(227)
—
(227)
1
South
Africa
115
341
United
Kingdom
1,621
1,566
Other
1
61
2022
Total
1,737
1,968
(27)
(844)
(1)
(872)
77
39
8
1
301
49
553
2,694
(3)
(2)
(407)
(412)
—
141
(109)
32
32
—
—
(576)
(1,792)
(2,368)
(25)
301
—
301
349
6
1
—
68
(6)
(2)
(57)
(65)
(198)
(195)
—
(195)
—
84
341
57
3,315
(9)
(580)
(2,256)
(2,845)
(223)
247
(109)
138
381
(57)
(228)
(285)
(48)
(195)
(243)
Other assets principally comprise debt backed securities, annuities and property.
The fair value of assets is used to determine the funding level of the plans. The fair value of the assets of the funded plans was sufficient to cover
114% (2022: 117%) of the benefits that had accrued to members after allowing for expected increases in future earnings and pensions. The
present value of unfunded obligations includes $234 million (2022: $203 million) relating to active members. All material investments are quoted.
In South Africa, the asset recognised is restricted to the amount in the Employer Surplus Account. The Employer Surplus Account is the amount
that the Group is entitled to by way of a refund, taking into consideration any contingency reserves as recommended by the funds’ actuaries.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
271
Employees
29. Retirement benefits continued
Actuarial assumptions
The principal assumptions used to determine the actuarial present value of benefit obligations and pension charges and credits are detailed
below (shown as weighted averages):
Defined benefit pension plans
Average discount rate for plan liabilities
Average rate of inflation
Average rate of increase of pensions in payment
Post employment medical plans
Average discount rate for plan liabilities
Average rate of inflation
Expected average increase in healthcare costs
South
Africa
United
Kingdom
11.4%
6.4%
6.4%
11.4%
6.4%
9.1%
4.6%
3.0%
3.3%
n/a
n/a
n/a
2023
Other
5.6%
3.0%
2.6%
11.3%
6.9%
9.4%
South
Africa
United
Kingdom
11.4%
6.6%
6.6%
11.4%
6.6%
8.7%
4.9%
3.1%
3.4%
n/a
n/a
n/a
2022
Other
6.1%
3.7%
3.2%
11.5%
7.1%
9.5%
The weighted average duration of the South African plans is 7 years (2022: 9 years), United Kingdom plans is 13 years (2022: 13 years) and
plans in other regions is 13 years (2022: 13 years). This represents the average period, weighted by discounted value, over which future benefit
payments are expected to be made.
Mortality assumptions are determined based on standard mortality tables with adjustments, as appropriate, to reflect experience of conditions
locally. In South Africa the PA90 tables are used. The main plans in the United Kingdom use CMI tables or Club Vita models with plan specific
adjustments based on mortality investigations. The mortality tables used imply that a male or female aged 60 at the balance sheet date has the
following future life expectancy (shown as weighted averages):
Years
South Africa
United Kingdom
Other
2023
18.7
27.4
26.0
Male
2022
18.8
27.8
24.2
2023
23.4
29.2
30.2
Female
2022
23.4
29.6
28.9
The table below summarises the expected life expectancy from the age of 60 for a male or female aged 45 at the balance sheet date. When
viewed together with the respective life expectancy at age 60 in the table above, this indicates the anticipated improvement in life expectancy
(shown as weighted averages):
Years
South Africa
United Kingdom
Other
2023
18.7
28.1
27.8
Male
2022
18.8
28.6
25.6
2023
23.4
30.3
31.7
Female
2022
23.4
30.8
30.2
Risk of plans
The Group has identified the main risk to its defined benefit pension schemes as being interest rate risk due to the impact on the UK discount rate
assumption:
Risk
Description
Mitigation
Interest rate risk
An increase in longer term real and
nominal interest rates expectations
causes gilt yields and corporate bond
yields to increase, which results in a
higher discount rate being applied to
the UK pension liabilities and so, with
all else being held equal, the value of
the pension scheme liabilities
decreases.
If the pension scheme assets
decrease by more than the decrease
in the pension scheme liabilities
(caused by the increase in interest
rates) then, all else being equal, this
will result in a worsening of the
pension scheme funding position.
The Trustees’ investment strategies vary by plan for the UK and include investing, with the
intention of counter-balancing the movements in the liabilities, in fully owned (fully funded)
physical credit and gilts, and by gaining unfunded exposure to gilts (via gilt repurchase
agreements) and other fixed income based derivatives to match the real and nominal
interest rate sensitivity of the pension scheme liabilities.
Approximately 90-100% (depending on the scheme) of the pension scheme liabilities are
currently hedged against movements in real and nominal interest rates.
The Trustees’ hedging strategies are typically designed to protect the respective schemes’
funding plans against volatility in market yields. The discount rate used to calculate any
funding requirement for the schemes is linked to gilt yields rather than to corporate bond
yields as required under IAS 19 Employee Benefits. Consequently the valuation of the net
retirement benefit obligation for accounting purposes remains susceptible to movements
in value due to the difference between corporate bond and gilt yields. In addition, since
corporate bond yields are typically higher than gilt yields, this can result in the recognition
of accounting surpluses in respect of schemes where cash contributions continue to be
made to meet funding shortfalls.
272
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Employees
29. Retirement benefits continued
Sensitivity analysis
Significant actuarial assumptions for the determination of pension and medical plan liabilities are the discount rate, inflation rate and mortality.
The sensitivity analysis below has been provided by local actuaries on an approximate basis based on changes in the assumptions occurring
at the end of the year, assuming that all other assumptions are held constant and the effect of interrelationships is excluded. The effect on plan
liabilities is as follows:
US$ million
Discount rate – 1% decrease
Inflation rate – pension plans – 0.5% increase
Inflation rate – medical plans – 0.5% increase
Life expectancy – increase by 1 year
South
Africa
United
Kingdom
(47)
(14)
(8)
(20)
(338)
(49)
—
(97)
Other
(20)
(10)
(3)
(3)
2023
Total
(405)
(73)
(11)
(120)
Independent qualified actuaries carry out full valuations at least every three years using the projected unit credit method. The actuaries have
updated the valuations to 31 December 2023. Assumptions are set after consultation with the qualified actuaries. While management believes
the assumptions used are appropriate, a change in the assumptions used would impact the Group’s other comprehensive income.
Accounting judgements and estimates
Recoverability of pension asset surplus and estimation of retirement benefit obligations
The value of the Group’s obligations for defined benefit schemes and post employment medical plans is dependent on the present value of the
amount of benefits that are expected to be paid. The most significant assumption used in the calculation of this accounting estimate is the
discount rate. The discount rate used is based on AA rated corporate bonds of a suitable duration and currency or, where there is no deep market
for such bonds, is based on government bonds.
The Group does not believe that a reasonably possible change in the assumptions used to estimate retirement benefit obligations will have a
material impact on the carrying value to the net surplus position within the next year given the hedging arrangements in place. The sensitivity of
the gross liability value to reasonably possible changes in discount rate is presented above.
Management apply judgement in determining how much of any surplus is recoverable considering the arrangements in place for each scheme.
Accounting policy
See note 39H for the Group’s accounting policy on retirement benefits.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
273
Employees
30. Share-based payments
Overview
During the year ended 31 December 2023 the Group had share-based payment arrangements with employees relating to shares of the
Company. All of these Company schemes, as well as any non-cyclical awards, are equity settled either by award of ordinary shares (BSP,
LTIP, MyShare, SIP and Non-cyclical) or award of options to acquire ordinary shares (SAYE). The awards are conditional on employment. LTIPs
vest in accordance with the achievement of relative TSR targets and a balanced scorecard of operational and financial measures.
The total share-based payment charge relating to Anglo American plc shares for the year is split as follows:
US$ million
BSP
LTIP
Other schemes
Share-based payment charge relating to Anglo American plc shares
2023
123
23
22
168
2022
99
82
6
187
In addition there are equity settled share-based payment charges of $11 million (2022: $13 million) relating to Kumba Iron Ore Limited shares
and $13 million (2022: $14 million) relating to Anglo American Platinum Limited shares. Certain entities also operate cash settled employee
share-based payment schemes.
Further information
The movements in the number of shares for the more significant share-based payment arrangements are as follows:
Bonus Share Plan
Ordinary shares of 5486/91 US cents may be awarded under the terms of this scheme for no consideration.
Number of awards
Outstanding at 1 January
Conditionally awarded in year
Vested in year
Forfeited or expired in year
Outstanding at 31 December
Further information in respect of the BSP, including vesting conditions, is shown in the Remuneration report.
Long Term Incentive Plan
Ordinary shares of 5486/91 US cents may be awarded under the terms of this scheme for no consideration.
Number of awards
Outstanding at 1 January
Conditionally awarded in year
Vested in year
Forfeited or expired in year
Outstanding at 31 December
2023
8,210,594
2022
8,891,489
2,782,466
2,564,499
(4,765,627)
(3,084,708)
(218,488)
(160,686)
6,008,945
8,210,594
2023
10,461,665
2022
12,002,419
3,880,609
2,734,704
(3,081,508)
(3,465,625)
(3,077,814)
(809,833)
8,182,952
10,461,665
The early vesting of share awards is permitted at the discretion of the Company upon, inter alia, termination of employment, ill health or death.
Further information in respect of the LTIP, including performance conditions, is shown in the Remuneration report.
Accounting policy
See note 39H for the Group’s accounting policy on share-based payments.
274
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Unrecognised items and uncertain events
This section includes disclosure of items and transactions that are not
reflected in the Group’s results because they are uncertain or have been
incurred after the end of the year. These disclosures are considered
relevant to an understanding of the Group’s financial position and the
effect of expected or possible future events.
31. Events occurring after end of year
Iron Ore resource acquisition at Minas-Rio
On 21 February 2024, the Anglo American plc Board approved the acquisition and integration of the contiguous Serra da Serpentina
("Serpentina") high-grade iron ore resource owned by Vale SA ("Vale") into Anglo American’s Minas-Rio mine in Brazil. Vale will contribute
Serpentina and $157.5 million in cash to acquire a 15% shareholding in Anglo American Minério De Ferro Brasil S.A, the owner of the Minas-Rio
operation subject to normal completion adjustments. A purchase price adjustment payment will be made depending on average iron ore prices
over a four-year period in line with an agreed formula.
Following completion of the transaction, Vale will receive its pro rata share of Minas-Rio production. Vale will also have an option to acquire an
additional 15% shareholding in the enlarged Minas-Rio operation, for cash subject to certain licensing milestones being achieved, at fair value
calculated at the time of exercise of the option.
Management has considered the potential impact of the transaction on the valuation of the Minas-Rio CGU (see note 8), of which the mine forms
part, and concluded that the valuation supports the carrying value of Minas-Rio at 31 December 2023 with no impairment or impairment reversal
required. The transaction is expected to complete in Q4 2024, subject to regulatory conditions.
With the exception of the proposed final dividend for 2023 (see note 6), there have been no further reportable events since 31 December 2023.
32. Commitments
Overview
A commitment is a contractual obligation to make a payment in the future which is not provided for in the Consolidated balance sheet. The Group
also has purchase obligations relating to take or pay agreements which are legally binding and enforceable.
Capital commitments (including cancellable and non-cancellable contracts) for subsidiaries and joint operations relating to the acquisition of
property, plant and equipment are $3,055 million (2022: $4,531 million), of which 67% (2022: 55%) relates to expenditure to be incurred within
the next year.
The Group’s outstanding commitments relating to take or pay agreements are $14,320 million (2022: $14,233 million), of which 9% (2022: 11%)
relate to expenditure to be incurred within the next year.
33. Contingent assets and liabilities
Overview
The assessment of risk and estimation of future outflows in respect of contingent liabilities is inherently uncertain and hence a material outflow
may arise in future periods in relation to these matters.
Contingent assets
Steelmaking Coal
In 2014, the Steelmaking Coal business was granted an arbitration award of $94 million (Group’s share) against MMTC Limited in respect of a
contractual dispute. The award has since been challenged in the Indian courts, during which time interest has continued to accrue. On 17
December 2020, the Indian Supreme Court found in favour of the Steelmaking Coal business. The award, inclusive of interest, is currently valued
at approximately $133 million (Group’s share). The precise timing and value of receipt remains uncertain and hence no receivable has been
recognised on the Consolidated balance sheet as at 31 December 2023.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
275
Contingent liabilities
Global Industry Standard for Tailing Management (GISTM)
In 2022 the Group disclosed a contingent liability for costs of conformance with the GISTM for sites where reliable cost estimates were not
available as technical studies and surveys were ongoing. In August 2023, the Group announced its significant progress towards conformance
for all tailings dams in the highest priority rankings according to the GISTM. The Group continues to refine designs and all material costs of
conformance with GISTM have been recorded within decommissioning and environmental restoration provisions.
Although the Group targets conformance with Anglo American equivalent standards for non-managed operations, there is no constructive
obligation in respect of GISTM where the partner is not an ICMM member, unless a public commitment has been made by that partner.
Anglo American South Africa Proprietary Limited (AASA)
In October 2020, an application was initiated against Anglo American South Africa Proprietary Limited (AASA). The application sought the
certification of class action litigation to be brought on behalf of community members residing in the Kabwe area in Zambia in relation to alleged
lead-related health impacts. The certification hearing was held late in January 2023.
On 15 December 2023, the High Court of South Africa issued a judgment dismissing the claimants’ application for certification and ruled that the
applicants pay the costs incurred by AASA in responding to the application. In its judgment, the Court recognised the multiple legal and factual
flaws in the claims made against AASA and deemed that it is not in the interests of justice for the class action to proceed.
The claimants have filed an application seeking leave to appeal against the December 2023 ruling. In light of the pending appeal lodged by the
claimants, the outcome of this litigation is still subject to significant uncertainty, and no provision is recognised for this matter.
De Beers
Guarantees provided in respect of environmental restoration and decommissioning obligations involve judgements in terms of the outcome of
future events. In one of the territories in which De Beers operates, conditions exist, or are proposed, with respect to backfilling pits on closure. A
formal appeal has been lodged to remove the existing backfilling condition and no provision has been raised on the basis that it is not probable
that this condition will be enforced. Should the appeal not be successful the estimated cost of backfilling is $217 million.
Accounting judgement
Where the existence of an asset is contingent on uncertain future events which are outside the Group’s control, the asset is only recognised once
it becomes virtually certain that the Group will receive future economic benefits.
A provision is recognised where it is considered probable that an outflow of resources will be required to settle a present obligation that can be
measured reliably.
Determining the likelihood of a future event is an accounting judgement. These judgements are based on the Group’s legal views and, in some
cases, independent advice.
276
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
This section includes details about the composition of the Group and
how this is reflected in the Consolidated financial statements. It also
includes disclosures of significant corporate transactions such as
acquisitions and disposals.
34. Disposals
On 1 November 2023, the Platinum Group Metals business completed the disposal of its 50% interest in the Kroondal pool-and-share agreement
(Kroondal PSA) and the Marikana pool-and-share agreement (Marikana PSA) (collectively the PSAs), to Sibanye-Stillwater Limited (Sibanye-
Stillwater), the other 50% owner of the PSAs.
The gross assets and liabilities disposed of amounted to $161 million and $51 million, respectively. Estimated deferred consideration of
$70 million was recognised within receivables. A loss on disposal of $40 million was recognised as a non-operating special item, refer to note 9.
Cash received of $210 million in respect of disposals principally related to the settlement of deferred consideration balances relating to the sale
of the Rustenburg operations (Platinum Group Metals) completed in November 2016.
2022
Cash received of $564 million in respect of disposals for year ended 31 December 2022 principally related to the settlement of deferred
consideration balances relating to the sale of the Rustenburg operations (Platinum Group Metals) completed in November 2016, the sale of the
Group’s remaining 8.0% shareholding in Thungela Resources Limited, the Group’s disposal of the Cerrejón associate and the sale of the Group’s
49% interest in Bokoni mine to African Rainbow Minerals Limited (Platinum Group Metals).
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
277
Group structure
35. Basis of consolidation
Overview
The principal subsidiaries, joint operations, joint ventures and associates of the Group and the Group percentage of equity capital are set out
below. All these interests are held indirectly by the Parent Company and are consolidated within these financial statements.
A complete list of the Group’s related undertakings can be found in note 36.
Location
Accounting treatment
Segment and asset
Copper
Copper Chile
Los Bronces
El Soldado
Chagres
Collahuasi
Copper Peru
Quellaveco
Nickel
Barro Alto
Platinum Group Metals(1)
Mogalakwena Mine
Amandelbult complex(2)
Twickenham Mine
Unki Mine
Platinum Refining
Modikwa Platinum Joint Operation
Mototolo
Kroondal Pooling and Sharing Agreement(3)
De Beers(4)
Debswana(5), comprising:
Jwaneng
Orapa regime
Namdeb Holdings(6), comprising:
Namdeb Diamond Corporation
Debmarine Namibia
Chile
Chile
Chile
Chile
Peru
Brazil
South Africa
South Africa
South Africa
Zimbabwe
South Africa
South Africa
South Africa
South Africa
Full consolidation
60%
60%
Full consolidation
100%
100%
Full consolidation
Full consolidation
Full consolidation
Joint operation
Full consolidation
Full consolidation
Full consolidation
Full consolidation
Full consolidation
Joint operation
Full consolidation
Joint operation
Percentage of equity owned
2023
2022
50.1%
50.1%
50.1%
44%
50.1%
50.1%
50.1%
44%
79%
100%
100%
100%
100%
100%
50%
100%
—
85%
19.2%
79%
100%
100%
100%
100%
100%
50%
100%
50%
85%
19.2%
Botswana
Joint operation
Namibia
Joint operation
50%
50%
De Beers Consolidated Mines(7), comprising:
South Africa
Full consolidation
100%
100%
Venetia
De Beers Canada, comprising:
Snap Lake
Victor
Gahcho Kué
Sales, comprising:
De Beers Global Sightholder Sales
De Beers Sightholder Sales South Africa
Auction Sales
DTC Botswana
Namibia DTC
Element Six, comprising:
Element Six Technologies
Element Six Abrasives
Brands, comprising:
Forevermark
De Beers Jewellers
See page 278 for footnotes.
Canada
Canada
Canada
Botswana
South Africa
Singapore
Botswana
Namibia
Global
Global
Global
Global
Full consolidation
Full consolidation
Joint operation
Full consolidation
Full consolidation
Full consolidation
Joint operation
Joint operation
Full consolidation
Full consolidation
Full consolidation
Full consolidation
100%
100%
51%
100%
100%
100%
50%
50%
100%
60%
100%
100%
100%
100%
51%
100%
100%
100%
50%
50%
100%
60%
100%
100%
278
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
35. Basis of consolidation continued
Segment and asset
Location
Accounting treatment
Iron Ore
Kumba Iron Ore
Sishen(8)
Kolomela(8)
Minas-Rio
Ferroport(9)
Steelmaking Coal
Coal Australia and Canada, comprising:
Moranbah(10)
Grosvenor(10)
Capcoal(10)
Dawson(10)
Jellinbah(11)(12)
Dalrymple Bay Coal Terminal Pty Ltd
Peace River Coal
Manganese
Samancor(11)(13)
Crop Nutrients
Woodsmith
Corporate and other
South Africa
South Africa
South Africa
Brazil
Brazil
Australia
Australia
Australia
Australia
Australia
Australia
Canada
Full consolidation
Full consolidation
Full consolidation
Full consolidation
Equity accounted joint venture
Joint operation
Joint operation
Joint operation
Joint operation
Equity accounted associate
Equity accounted associate
Full consolidation
Percentage of equity owned
2023
2022
69.7%
76.3%
76.3%
100%
50%
88%
88%
70%
51%
33.3%
25.3%
100%
69.7%
76.3%
76.3%
100%
50%
88%
88%
70%
51%
33.3%
25.3%
100%
South Africa and Australia
Equity accounted joint venture
40%
40%
United Kingdom
Full consolidation
100%
100%
Envusa Energy Proprietary Limited
South Africa
Equity accounted joint venture
50%
50%
(1) The Group’s effective interest in Anglo American Platinum is 79.2% (2022: 79.2%), which
excludes shares issued as part of a community empowerment deal.
(2) Amandelbult complex comprises Tumela mine and Dishaba mine.
(3) On 31 January 2022, Anglo American Platinum agreed to dispose of its 50% interest in the
Kroondal pool-and-share agreement and Marikana pool-and-share agreement to
Sibanye-Stillwater Limited, the other 50% owner. The remaining conditions precedent were
waived and the disposal was effective 1 November 2023.
(4) 85% should be applied to all holdings within De Beers to determine the Group’s attributable
share of the asset.
(5) De Beers owns 50% of equity in Debswana, but consolidates 19.2% of Debswana on a
proportionate basis, reflecting the economic interest. The Group’s effective interest in
Debswana is 16.3% (taking into account the Group’s 85% interest in De Beers Group).
(6) The 50% interest in Namdeb Holdings is held indirectly through De Beers. The Group’s
effective interest in Namdeb Holdings is 42.5%.
(7) De Beers’ legal ownership of De Beers Consolidated Mines (DBCM) and its subsidiaries is
74%. For accounting purposes De Beers consolidates 100% of DBCM as it is deemed to
control the BEE entity, Ponahalo, which holds the remaining 26%. The Group’s effective
interest in DBCM is 85%.
(8) Sishen and Kolomela are fully owned by Sishen Iron Ore Company Proprietary Limited
(SIOC). Kumba Iron Ore Limited has a 76.3% interest in SIOC (2022: 76.3%). Including
shares held by Kumba Iron Ore in relation to its own employee share schemes, the Group’s
effective interest in Kumba Iron Ore is 69.97% (2022: 69.97%). Consequently, the Group’s
effective interest in SIOC is 53.4% (2022: 53.4%).
(9) Ferroport owns and operates the iron ore handling and shipping facilities at the port of Açu.
(10) The wholly owned subsidiary Anglo American Steelmaking Coal Holdings Limited holds the
proportionately consolidated joint operations. These operations are unincorporated and
jointly controlled.
(11) These entities have a 30 June year end.
(12) The Group’s effective interest in the Jellinbah operation is 23.3%.
(13) Samancor is comprised of investments in Groote Eylandt Mining Company Proprietary
Limited, Samancor Marketing Pte. Limited and Samancor Holdings Proprietary Limited.
Samancor Holdings Proprietary Limited is the parent company of Hotazel Manganese
Mines Proprietary Limited (HMM) and the Metalloys Smelter. BEE shareholders hold a 26%
interest in HMM and therefore, the Group’s effective ownership interest in HMM is 29.6%.
Accounting judgements
Joint arrangements
Joint arrangements are classified as joint operations or joint ventures according to the rights and obligations of the parties, as described in note
39I. Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual
arrangement. When a joint arrangement has been structured through a separate vehicle, consideration has been given to the legal form of the
separate vehicle, the terms of the contractual arrangement and, when relevant, other facts and circumstances. When the activities of an
arrangement are primarily designed for the provision of output to the parties and, the parties are substantially the only source of cash flows
contributing to the continuity of the operations of the arrangement, this indicates that the parties to the arrangement have rights to the assets and
obligations for the liabilities. Certain joint arrangements that are structured through separate vehicles including Collahuasi, Debswana and
Namdeb Holdings are accounted for as joint operations. These arrangements are primarily designed for the provision of output to the parties
sharing joint control, indicating that the parties have rights to substantially all the economic benefits of the assets. The liabilities of the
arrangements are in substance satisfied by cash flows received from the parties; this dependence indicates that the parties effectively have
obligations for the liabilities. It is primarily these facts and circumstances that give rise to the classification as joint operations.
Functional Currency
The Group presents its financial statements in US dollars, the currency in which its business is primarily conducted. The functional currency for
each subsidiary, joint operation, joint venture and associate is the currency of the primary economic environment in which it operates. The Group
applies judgement in determining the functional currency of its operations, particularly where businesses primarily incur costs in local currencies
and earn revenue in US dollars. Where the functional currency is unclear from analysis of the revenue and costs, particular attention is paid to the
currency in which financing activities are conducted. The determination of functional currency affects the measurement of non-current assets
such as property, plant and equipment and intangible assets and therefore the depreciation and amortisation charge for those assets. It also
impacts the presentation of exchange gains and losses included in the income statement and in equity.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
279
Group structure
36. Related undertakings of the Group
The Group consists of the Parent Company, Anglo American plc, incorporated in the United Kingdom and its subsidiaries, joint operations, joint
ventures and associates. In accordance with Section 409 of the Companies Act 2006 a full list of related undertakings, the country of
incorporation and the effective percentage of equity owned as at 31 December 2023 is disclosed below. Unless otherwise disclosed all entities
with an indirect equity holding of greater than 50% are considered subsidiary undertakings. See note 35 for the Group’s principal subsidiaries,
joint operations, joint ventures and associates.
As disclosed in the Group’s published tax strategy, the Group does not use tax haven jurisdictions to manage taxes. There remain a small
number of undertakings in the Group which are registered in tax haven jurisdictions and have remained so for other business purposes. The
Group is well advanced in our strategy to remove legacy undertakings from tax haven jurisdictions, and, where possible, these entities are
resident for tax purposes in the United Kingdom regardless of where they are registered. Where the tax residency of a related undertaking is
different from its country of incorporation, this is referenced in the notes to the list below.
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Angola
Anglo American Discovery (Moxico) -
100%
Quota
Rua Rainha Ginga, no. 87 - 9th floor, Urban District of
Prospeccao E Exploracao Mineira (SU),
LDA
Ingombota, Luanda
Angola
Anglo American Discovery (Cunene) -
100%
Quota
Rua Rainha Ginga, no. 87 - 9th floor, Urban District of
Prospeccao E Exploracao Mineira (SU),
LDA
Ingombota, Luanda
Angola
De Beers Angola Holdings SARL
85%
Quota
Rua Rainha Ginga, no. 87 - 9th floor, Urban District of
Ingombota, Luanda
Angola
De Beers Angola Lunda Norte, Limitada
77%
Quota
Rua Rainha Ginga, no. 87 - 9th floor, Urban District of
Ingombota, Luanda
Angola
De Beers Angola Lunda Sul, Limitada
77%
Quota
Rua Rainha Ginga, no. 87 - 9th floor, Urban District of
Argentina
Minera Anglo American Argentina S.A.U
100%
Ingombota, Luanda
Esteban Echeverría 1776, Piso 2, Godoy Cruz, Mendoza
Ordinary
Nominative
Non-Endorsable
Australia
Australia
Australia
Australia
Anglo American Australia Finance Limited
Anglo American Australia Holdings Pty
100%
100%
Ordinary
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Limited
Anglo American Australia Limited
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo American Energy Solutions (Australia)
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Pty Ltd
Australia
Anglo American Exploration (Australia) Pty
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Limited
Australia
Anglo American Steelmaking Coal Assets
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Eastern Australia Limited
Australia
Anglo American Steelmaking Coal Assets
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Pty Ltd
Australia
Anglo American Steelmaking Coal Finance
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Limited
Australia
Anglo American Steelmaking Coal Holdings
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Limited
Australia
Australia
Australia
Australia
Australia
Anglo American Steelmaking Coal Pty Ltd
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo Coal (Archveyor Management) Pty Ltd 100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo Coal (Capcoal Management) Pty
100%
Limited
A Class Ordinary
B Class Ordinary
C Class Ordinary
D Class Ordinary
E Class Ordinary
F Class Ordinary
G Class Ordinary
H Class Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo Coal (Dawson Management) Pty Ltd
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo Coal (Dawson Services) Pty Ltd
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
280
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Australia
Anglo Coal (Dawson South Management)
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Australia
Australia
Australia
Australia
Australia
Pty Ltd
Anglo Coal (Dawson South) Pty Ltd
Anglo Coal (Dawson) Holdings Pty Ltd
Anglo Coal (Dawson) Limited
Anglo Coal (German Creek) Pty Ltd
Anglo Coal (Grasstree Management) Pty
Limited
100%
100%
100%
100%
100%
Ordinary
Ordinary
Limited by
guarantee
Ordinary
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Australia
Anglo Coal (Grosvenor Management) Pty
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Anglo Coal (Grosvenor) Pty Ltd
Anglo Coal (Jellinbah) Holdings Pty Ltd
100%
100%
Ordinary
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo Coal (Moranbah North Management)
100%
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Pty Limited
Anglo Coal (Roper Creek) Pty Ltd
Anglo Coal (Theodore South) Pty Ltd
Anglo Operations (Australia) Pty Ltd
Bowen Basin Coal Pty. Ltd.
100%
100%
100%
23%
Ordinary
Ordinary
Ordinary
Ordinary
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
Capricorn Coal Developments Joint Venture 70%
N/A
N/A
Dalrymple Bay Coal Terminal Pty. Ltd.
Dawson Coal Processing Pty Ltd
Dawson Highwall Mining Pty Ltd
Dawson Joint Venture
Dawson Sales Pty Ltd
Dawson South Exploration Joint Venture
Dawson South Joint Venture
Dawson South Sales Pty Ltd
De Beers Australia Exploration Limited
First Mode Pty Ltd
German Creek Coal Pty. Limited
25%
100%
100%
51%
51%
51%
51%
51%
85%
81%
70%
Martin Armstrong Drive, Hay Point QLD 4740
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
N/A
Level 11, 201 Charlotte Street, Brisbane QLD 4000
N/A
N/A
Level 11, 201 Charlotte Street, Brisbane QLD 4000
23 North Street, Mount Lawley, WA 6050
165-169 Aberdeen Street, Northbridge, 6003,
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Ordinary
Ordinary
Ordinary
N/A
Ordinary
N/A
N/A
Ordinary
Ordinary
Ordinary
B Class Ordinary
C Class Ordinary
D Class Ordinary
E Class Ordinary
Australia
Groote Eylandt Mining Company Proprietary
40%
Ordinary
Level 35, 108 St Georges Terrace, Perth WA 6000
Limited
Australia
Australia
Jellinbah East Joint Venture
Jellinbah Group Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Jellinbah Mining Pty Ltd
Jellinbah Resources Pty Ltd
Jena Pty. Limited
Jena Unit Trust
JG Land Company Pty Ltd
Lake Vermont Joint Venture
Lake Vermont Marketing Pty Ltd
Lake Vermont Resources Pty Ltd
Monash Energy Coal Limited
Moranbah North Coal (No2) Pty Ltd
Moranbah North Coal (Sales) Pty Ltd
23%
33%
33%
33%
100%
100%
23%
23%
33%
33%
100%
100%
88%
N/A
N/A
Ordinary
A Class Ordinary
E Class Ordinary
F Class Ordinary
Ordinary
Ordinary
Ordinary
N/A
Ordinary
N/A
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
N/A
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Level 11, 201 Charlotte Street, Brisbane QLD 4000
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
281
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Belgium
Belgium
Moranbah North Coal Joint Venture
Moranbah North Coal Pty Ltd
Moranbah South Exploration Joint Venture
QCMM (Lake Vermont Holdings) Pty Ltd
QCMM Finance Pty Ltd
Roper Creek Joint Venture
Theodore South Joint Venture
Tremell Pty. Ltd.
De Beers Auction Sales Belgium NV
International Institute of Diamond Grading
and Research (Belgium) NV
Bermuda
Bermuda
Coromin Insurance Limited
Holdac Insurance Limited
Botswana
Ambase Prospecting (Botswana) (Pty) Ltd
88%
100%
50%
33%
33%
86%
51%
33%
85%
85%
100%
100%
100%
N/A
Ordinary
N/A
Ordinary
Ordinary
N/A
N/A
Ordinary
Ordinary
Ordinary
Common
Common
Ordinary
N/A
Level 11, 201 Charlotte Street, Brisbane QLD 4000
N/A
Level 20, 66 Eagle Street, Brisbane QLD 4000
Level 20, 66 Eagle Street, Brisbane QLD 4000
N/A
N/A
Level 20, 66 Eagle Street, Brisbane QLD 4000
21 Schupstraat, 2018 Antwerp
21 Schupstraat, 2018 Antwerp
Wellesley House, 90 Pitts Bay Road, Hamilton
Wellesley House, 90 Pitts Bay Road, Hamilton
Plot 32, Unit G3 Victoria House, Independence Avenue,
Gaborone, AD54 ACJ
Botswana
Anglo American Corporation Botswana
100%
Ordinary
Plot 67977, Fairground Office Park, Gaborone
(Services) Limited
Botswana
Broadhurst Primary School (Proprietary)
45%
Ordinary
Plot 113, Unit 28 Kgale Mews, Gaborone International
Limited
Finance Park, Gaborone
Botswana
De Beers Global Sightholder Sales (Pty) Ltd
85%
Ordinary
3rd Floor, DTCB Building, Plot 63016, Block 8, Airport
Botswana
Botswana
De Beers Holdings Botswana (Pty) Ltd
85%
Debswana Diamond Company (Proprietary)
43%
Ordinary
Ordinary
Limited(4)
Road, Gaborone
5th Floor, Debswana House, Main Mall, Gaborone
First Floor Debswana Corporate Centre, Plot 64288
Airport Road, Block 8, Gaborone
Botswana
Debswana Wellness Fund
43%
N/A
First Floor Debswana Corporate Centre, Plot 64288
Airport Road, Block 8, Gaborone
Botswana
Diamond Trading Company Botswana (Pty)
43%
Ordinary
Plot 63016, Airport Road, Block 8, Gaborone
Ltd
Botswana
Naledi Mining Services Company
43%
Ordinary
First Floor Debswana Corporate Centre, Plot 64288
(Proprietary) Limited
Airport Road, Block 8, Gaborone
Botswana
Sesiro Insurance Company (Proprietary)
43%
Ordinary
First Floor Debswana Corporate Centre, Plot 64288
Botswana
Botswana
Limited
The Diamond Trust
Tokafala (Proprietary) Limited
85%
57%
N/A
Ordinary
Brazil
Brazil
Brazil
Anglo American Comercializadora E
100%
Exportadora Ltda.
Anglo American Holding Patrimonial Ltda.
100%
Anglo American Investimentos - Minério de
100%
Ferro Ltda.
Membership
interest
Membership
interest
Membership
interest
Brazil
Anglo American Minério de Ferro Brasil S.A
100%
Ordinary
Brazil
Anglo American Niquel Brasil Ltda.
100%
Membership
interest
Brazil
Anglo Ferrous Brazil Participações S.A.
100%
Ordinary
Brazil
Ferroport Logística Comercial Exportadora
50%
Ordinary
S.A.
Airport Road, Block 8, Gaborone
Debswana House, The Mall, Gaborone
3rd Floor, DTCB Building, Plot 63016, Block 8, Airport
Road, Gaborone
Rua Maria Luiza Santiago, n.,200, 16º andar, parte,
bairro Santa Lúcia, CEP 30360-740
Rua Maria Luiza Santiago, n.,200, 16º andar, parte,
bairro Santa Lúcia, CEP 30360-740
Rua Maria Luiza Santiago, nº 200, 16º andar, sala 1603,
bairro Santa Lúcia, CEP 30360-740, Belo Horizonte,
Minas Gerais
Rua Maria Luiza Santiago, nº 200, 16º andar, sala 1601,
bairro Santa Lucia, CEP 30360-740, Belo Horizonte,
Minas Gerais
Rua Maria Luiza Santiago, nº. 200, 8º andar (parte),
Santa Lúcia, CEP 30360-740, Belo Horizonte, Minas
Gerais
Rua Maria Luiza Santiago, nº 200, 16º andar, sala 1601,
bairro Santa Lucia, CEP 30360-740, Belo Horizonte,
Minas Gerais
Rua da Passagem, nº 123, 11º andar, sala 1101,
Botafogo, CEP 22290-030, Rio de Janeiro/RJ
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
282
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
GD Empreendimentos Imobiliários S.A.
33%
Guaporé Mineração Ltda.
Ordinary
Preference
Membership
interest
Membership
interest
49%
49%
Brazil
Mineração Tanagra Ltda.
Ventos de Santa Alice Energias Renováveis
98%
Ordinary
S/A
Ventos de Santa Alice Holding S/A
98%
Ordinary
Ventos de Santa Sara Energias Renováveis
98%
Ordinary
S/A
Ventos de Santa Sara Holding S/A
98%
Ordinary
Ventos de São Felipe Energias Renováveis
98%
Ordinary
S/A
Ventos de São Felipe Holding S/A
98%
Ordinary
Rua Visconde de Ouro Preto, nº 5, 11º andar (parte),
Botafogo, Rio de Janeiro/RJ
Rua Maria Luiza Santiago, nº. 200, 8º andar (parte),
bairro Santa Lúcia, CEP 30.360-740, Belo Horizonte,
Minas Gerais
Rua Maria Luiza Santiago, nº. 200, 20º andar (parte),
bairro Santa Lúcia, CEP 30.360-740, Belo Horizonte,
Minas Gerais
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
Rodovia Doutor Mendel Steinbruch, nº 10.800, sala 236,
Distrito Industrial, Maracanaú/CE, CEP 61939-906
De Beers Centenary Angola Properties Ltd
85%
Ordinary
Craigmuir Chambers, Road Town, Tortola, VG1109
Delibes Holdings Limited(5)
85%
A Ordinary
Craigmuir Chambers, Road Town, Tortola, VG1110
Loma de Niquel Holdings Limited(5)
94%
Class A1
Class A2
Class B
Class C
Craigmuir Chambers, Road Town, Tortola, VG1110
Canada
0912055 B.C. Ltd.
100%
Common
c/- McCarthy Tetrault, Suite 2400, 745 Thurlow Street,
Canada
Anglo American Exploration (Canada) Ltd.
100%
Canada
Canada
Auspotash Corporation
Central Ecuador Holdings Ltd.
Canada
De Beers Canada Holdings Inc.
Canada
Canada
De Beers Canada Inc.
Lion Battery Technologies Inc.
Canada
Peace River Coal Inc.
Canada
Peregrine Diamonds Ltd
100%
70%
85%
85%
37%
100%
85%
Vancouver, BC, V6E 0C5
Suite 620 – 650 West Georgia Street, Vancouver, BC,
V6B 4N8
Common
Class B Preference
Class C Preference
N/A
333 Bay Street, Suite 2400, Toronto, ON, M5H2T6
Class A Common
Class B Common
c/o Borden Ladner Gervais, 1200 Waterfront Centre,
200 Burrard Street, Vancouver, BC, V6C 3L6
A Ordinary
B Ordinary
2400-333 Bay St, Toronto, ON, M5H2T6
Preference
2400-333 Bay St, Toronto, ON, M5H2T6
Class A Preferred
Suite 2600, Three Bentall Centre, 595 Burrard Street,
P.O. Box 49314, Vancouver, BC, V7X 1L3
Common
Class A Non-
Voting Preference
Common
Preference
c/- McCarthy Tetrault, Suite 2400, 745 Thurlow Street,
Vancouver, BC, V6E 0C5
2400-333 Bay St, Toronto, ON, M5H 2T6
Chile
Chile
Chile
Chile
Chile
Anglo American Chile Limitada
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Anglo American Copper Finance SpA
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Anglo American Marketing Chile SpA
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Anglo American Sur S.A.
50%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Compañía Minera Dona Ines De Collahuasi
44%
Ordinary
Av. Andrés Bello 2457 Piso 39 Providencia, Santiago,
SCM
Región Metropolitana
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
283
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Chile
Chile
Chile
Chile
Chile
Compañía Minera Westwall S.C.M
50%
Ordinary
Av. Andrés Bello 2457 Piso 39 Providencia, Santiago,
First Mode Chile SpA
81%
Nominative and
without par value
Región Metropolitana
Alonso De Cordova 4355, Of 1503, Vitacura
Inversiones Anglo American Norte SpA
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Inversiones Anglo American Sur SpA
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
Inversiones Minorco Chile SpA
100%
Ordinary
Isidora Goyenechea 2800, piso 46, Las Condes,
Santiago
China
Anglo American Resources Trading (China)
100%
Equity interest
Units 01, 02A, 07A, 08, Floor 32, No. 1198 Century
Co., Ltd.
Avenue, Pudong New Area, Shanghai
China
De Beers Jewellers Commercial (Shanghai)
85%
Equity interest
Suite 4607, The Park Place, No.1601 Nan Jing West
Co., Ltd
Road, Shanghai
China
Element Six Trading (Shanghai) Co., Ltd
51%
Equity interest
Room 807, Floor 8, No 390-408 East Beijing Road,
Huangpu District, Shanghai
China
Forevermark Marketing (Shanghai)
85%
Equity interest
Suite 4601, 4602 and 4608, The Park Place, No.1601
Company Limited
Nan Jing West Road, Shanghai
China
Platinum Guild International (Shanghai) Co.,
77%
Ordinary
Room 601, L'Avenue, 99 XianXia Road, Shanghai
Limited
200051
China
Suzhou Yibai Environmental Protection
24%
N/A
No. 558, Fenhu Avenue, Lili Town, Wujiang District,
Technologies Co., Ltd
Suzhou
Colombia
Anglo American Colombia Exploration S.A.
100%
Ordinary
Carrera 7 No. 71-52 Torre B, Piso 9, Bogotá
Democratic
Republic
of Congo
Ecuador
Ecuador
Ambase Exploration Africa (DRC) SPRL
100%
Ordinary
c/o KPMG, 500b. Av. Mpala/Quartier Golf, Lubumbashi
Anglo American Ecuador S.A.
Central Ecuador EC-CT S.A.
100%
70%
Ordinary
Ordinary
Av. Patria E4-69 y Av. Amazonas, Cofiec ,16th Floor
Av. Patria E4-69 y Av. Amazonas, Edif.COFIEC, piso 17,
Quito
Finland
AA Sakatti Mining Oy
100%
Ordinary
AA Sakatti Mining Oy, Tuohiaavantie 2, 99600,
Sodankylä
Gabon
Samancor Gabon SA
40%
Ordinary
C/- Fiduge SARL, Battery IV, Soraya Building, PO Box
Germany
Germany
Element Six GmbH
Kupfer Copper Germany GmbH
51%
80%
Ordinary
Ordinary
15.950, Liberville
Staedeweg 18, 36151, Burghaun
Alfred-Herrhausen-Allee 3-5, 65760 Eschborn,
Deutschland
Germany
Anglo American Exploration Germany GmbH 100%
Ordinary
Alfred-Herrhausen-Allee 3-5, 65760 Eschborn,
Greenland
NAIP West Exploration A/S
Hong Kong
De Beers Auction Sales Holdings Limited
75%
85%
Ordinary
Ordinary
Deutschland
Issortarfimmut 6, 3905 Nuussuaq
2602-2606, 26/F, Kinwick Centre, 32 Hollywood Road,
Central
Hong Kong
De Beers Jewellers (Hong Kong) Limited
85%
Ordinary
RM 02B&03-06 26/F, Kinwick Centre, 32 Hollywood
Road, Central
Hong Kong
Forevermark Limited
85%
Ordinary
RM 02B&03-06 26/F, Kinwick Centre, 32 Hollywood
Road, Central
Hong Kong
Platinum Guild International (Hong Kong)
77%
Ordinary
Suites 2901-2, Global Trade Square, No.21 Wong Chuk
Limited
Hang Road
India
India
India
Anglo American Crop Nutrients (India)
100%
Ordinary
Regus Elegance, 2F, Elegance, Jasola Districe Centre
Private Limited
Old Mathura Road, New Delhi, 110025
Anglo American Services (India) Private
100%
Equity
A- 1/292, Janakpuri, New Delhi - 110058
Limited
De Beers India Private Ltd
85%
Ordinary Equity
Preference Equity
601, 6th floor, TCG Financial Centre, C -53, G Block,
Bandra Kurla Complex, Bandrar (East), Mumbai - 400
058
284
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
India
India
Hindustan Diamond Company Private
43%
Ordinary equity
Office No. 12, 14th Floor, Navjivan Society Building, No.3,
Limited
Lamington Road, Mumbai - 400 008
Platinum Guild India Private Limited
77%
Ordinary
Notan Classic, 3rd Floor, 114 Turner Road, Bandra West,
Mumbai 400 050
Indonesia
PT Anglo American Indonesia
100%
Ordinary
Treasury Tower, 11th Floor Unit A & B, District 8, SCBD
Lot. 28 Jl. Jend. Sudirman Kav. 52-53, RT/RW 5/3, Kel.
Senayan, Kec. Kebayoran Baru, South Jakarta 12190
Indonesia
PT Minorco Services Indonesia
100%
Ordinary
Treasury Tower, 11th Floor Unit A & B, District 8, SCBD
Lot. 28 Jl. Jend. Sudirman Kav. 52-53, RT/RW 5/3, Kel.
Senayan, Kec. Kebayoran Baru, South Jakarta 12190
Coromin Insurance (Ireland) DAC
100%
Ordinary
Charlotte House, Charlemont Street, Dublin 2, D02 NV26
Ireland
Ireland
Ireland
Ireland
Ireland
Ireland
Ireland
Element Six (Holdings) Limited
Element Six (Trade Marks) Limited
Element Six Abrasives Treasury Limited
Element Six Limited
Element Six Technologies Limited
Element Six Treasury Limited
Isle of Man
Element Six (Legacy Pensions) Limited
51%
51%
51%
51%
85%
85%
85%
Ordinary
Ordinary
A Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
A Ordinary
Shannon Airport, Shannon, Co.Clare
Shannon Airport, Shannon, Co.Clare
Shannon Airport, Shannon, Co.Clare
Shannon Airport, Shannon, Co.Clare
Shannon Airport, Shannon, Co.Clare
Shannon Airport, Shannon, Co.Clare
1st Floor, 18-20 North Quay, Douglas, IM1 4LE
Israel
De Beers Auction Sales Israel Ltd
85%
Ordinary
11th Floor, Yahalom (Diamond) Building, 21 Tuval Street
Ramat Gan 5252236
Italy
Japan
Forevermark Italy S.R.L.
De Beers Jewellers Japan K.K.
85%
85%
Ordinary
Via Burlamacchi Francesco 14, 20135, Milan
Common stock
New Otani Garden Court 7th Floor, 4-1 Kioi-cho,
Chiyoda-ku, Tokyo.
Japan
De Beers K.K.
43%
Common stock
New Otani Garden Court, 7th Floor, 4-1 Kioi-cho,
Chiyoda-ku, Tokyo
Japan
Element Six Limited
51%
Ordinary
9F PMO Hatchobori, 3-22-13 Hatchobori, Chuo-ku,
Tokyo, 104
Japan
Forevermark KK
85%
Common stock
New Otani Garden Court, 7th Floor, 4-1 Kioi-cho,
Chiyoda-ku, Tokyo
Japan
Furuya Eco-Front Technology Co., Ltd
31%
Common
MSB-21 Minami Otsuka Building, 2-37-5 Minami Otsuka,
Toshima-ku, Tokyo
Japan
PGI KK
77%
Ordinary
Imperial Hotel Tower 17F, 1-1-1 Uchisaiwai-cho,
Jersey
Jersey
A.R.H. Investments Limited(5)
A.R.H. Limited(5)
Jersey
Ambras Holdings Limited(5)(6)
Chiyoda-ku,Tokyo, 100-8575
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
100%
100%
100%
Ordinary
Class A
Class B
Class C
Repurchaseable
Class A Ordinary
Repurchaseable
Class B Ordinary
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Ammin Coal Holdings Limited(5)
100%
Anglo African Exploration Holdings Limited(5) 100%
Ordinary
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
Anglo American Amcoll UK Ltd(5)
Anglo American Buttercup Company
Limited(5)
Anglo American Chile Investments UK Ltd(5)
Anglo American Clarent UK Ltd(5)
Anglo American Corporation de Chile
Holdings Limited(5)
100%
100%
100%
100%
100%
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
285
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Jersey
Anglo American Exploration Colombia
100%
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
Limited(5)
Jersey
Anglo American Exploration Overseas
100%
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
Holdings Limited(5)
Jersey
Anglo American Finland Holdings 2 Limited(5) 100%
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
Jersey
Anglo American Midway Investment
100%
Limited(5)
Jersey
Anglo American Overseas Limited(5)(7)
100%
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
Jersey
100%
Anglo Australia Investments Limited(5)
Anglo Diamond Investments Limited(5)
Anglo Iron Ore Investments Limited(5)
Anglo Operations (International) Limited(5)
Anglo Peru Investments Limited(5)
Anglo Quellaveco Limited(5)
100%
Anglo South American Investments Limited(5) 100%
100%
100%
100%
100%
Anglo Venezuela Investments Limited(5)
Aval Holdings Limited(5)
Cheviot Holdings Limited(5)
De Beers Centenary Limited(5)
De Beers Exploration Holdings Limited(5)
De Beers Holdings Investments Limited(5)
De Beers Investments plc(5)
De Beers plc(5)
Highbirch Limited(5)
Kumba International Trading Limited(5)
Minorco Overseas Holdings Limited(5)
Minorco Peru Holdings Limited(5)
Minpress Investments Limited(5)
Sirius Minerals Finance Limited(5)
100%
100%
85%
85%
85%
85%
85%
85%
100%
53%
100%
100%
100%
100%
Sirius Minerals Finance No.2 Limited(5)
100%
Luxembourg
Kumba Iron Ore Holdings S.à r.l.
Macau
De Beers Jewellers (Macau) Company
53%
85%
Limited
A Shares
B Shares
Repurchaseable
Class A Ordinary
Repurchaseable
Class B Ordinary
Repurchaseable
Class C Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
A Ordinary
B Ordinary
Class A
Class B
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Preference
Ordinary
Preference
Ordinary
Ordinary
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
3rd Floor, 44 Esplanade, St Helier, JE4 9WG
58 rue Charles Martel, L-2134
Avenida da Praia Grande No. 409, China Law Building
16/F – B79
Madagascar
Societe Civille De Prospection De Nickel A
32%
N/A
Unknown
Madagascar
Mauritius
Anglo American International Limited(5)
100%
C/o AXIS Fiduciary Ltd, 2nd Floor, The AXIS, 26 Bank
Street, Cybercity Ebene, 72201
Normal Class A
Ordinary
Ordinary-B
Repurchaseable
Class A Ordinary
Mexico
Anglo American Mexico S.A. de C.V.
100%
Common
c/o Sanchez Mejorada, Velasco y Ribe, S.C., Paseo de la
Reforma No. 450, Col. Lomas de Chapultepec, 11000
286
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
Mexico
Servicios Anglo American Mexico S.A. de C.V. 100%
Common
c/o Sanchez Mejorada, Velasco y Ribe, S.C., Paseo de la
Reforma No. 450, Col. Lomas de Chapultepec, 11000
Mozambique
Anglo American Corporation Mocambique
100%
Quota
PricewaterhouseCoopers, Ltda. Avenida Vladimir
Servicos Limitada
Lenine, No 174, 4o andar, Edifício Millennium Park,
Maputo
Namibia
Namibia
Ambase Prospecting (Namibia) (Pty) Ltd
De Beers Marine Namibia (Pty) Ltd
100%
43%
Ordinary
Ordinary
c/o SGA, 24 Orban Street, Klein Windhoek, Windhoek
4th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
De Beers Namibia Holdings (Pty) Ltd
85%
Ordinary
6th floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Debmarine Namdeb Foundation
43%
N/A
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
DTC Valuations Namibia (Pty) Ltd
85%
Ordinary
4th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Exclusive Properties (Pty) Ltd
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Namibia
Longboat Trading (Pty) Ltd
Mamora Mines & Estates Limited
100%
28%
Ordinary
Ordinary
24 Orban Street, Klein Windhoek, Windhoek
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Namdeb Diamond Corporation (Pty) Ltd
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Namdeb Holdings (Pty) Ltd
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Namdeb Properties (Pty) Ltd
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Windhoek
Namibia
Namibia Diamond Trading Company (Pty)
43%
Ordinary
9th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Ltd
Windhoek
Namibia
OMDis Town Transformation Agency
43%
N/A
Unit 6, Gold Street Business Park, Gold Street, Prosperita,
Windhoek
Namibia
Oranjemund Private Hospital (Proprietary)
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Limited
Windhoek
Namibia
Oranjemund Town Management Company
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
(Pty) Ltd
Windhoek
Namibia
Namdeb Hospital Pharmacy (Pty) Ltd
43%
Ordinary
10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street,
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
Netherlands
100%
100%
Anglo American (TIH) B.V.(5)
Anglo American Europe B.V.(5)
Anglo American Exploration B.V.(5)
100%
Anglo American Exploration (Philippines) B.V.(5) 100%
Anglo American International B.V.(5)
Anglo American Netherlands B.V.(5)
Anglo Operations (Netherlands) B.V.(5)
Erabas B.V.(5)
Loma de Niquel Holdings B.V.(5)
Minorco Exploration (Indonesia) B.V.(5)
100%
100%
100%
100%
100%
77%
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Windhoek
17 Charterhouse Street, London, EC1N 6RA
Kingsfordweg 151, 1043GR, Amsterdam
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
North
Anglo American Exploration West Tetyan
100%
Ordinary
Str. Risto Ravanovski no. 13A, 1000, Skopje, Municipality
Macedonia
Skopje
of Karpos
Papua New
Guinea
Papua New
Guinea
Anglo American (Star Mountain) Limited
100%
Ordinary
c/o Pacific Legal Group Lawyers, Ground Floor,
Iaraguma Haus, Lot 30 Section 38 Off Cameron Road,
Gordons, National Capital District
Anglo American Exploration (PNG) Limited
100%
Ordinary
c/o Pacific Legal Group Lawyers, Ground Floor,
Iaraguma Haus, Lot 30 Section 38 Off Cameron Road,
Gordons, National Capital District
Peru
Anglo American Marketing Peru S.A.
100%
Ordinary
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
287
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Anglo American Peru S.A.
Anglo American Quellaveco S.A.
Peru
Peru
Peru
Peru
Peru
Percentage
of equity
owned(3)
100%
60%
Share class
Registered address
Ordinary
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Class A Ordinary
Class B Non-
Voting
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Anglo American Servicios Perú S.A. en
100%
Ordinary
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Liquidación
Asociación Quellaveco
Cobre del Norte S.A.
100%
100%
N/A
Ordinary
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Philippines
Anglo American Exploration (Philippines) Inc. 100%
Ordinary
c/o SyCipLaw Center, 105 Paseo de Roxas, Makati City
1226, Metro Manila
Sierra Leone
Gemfair (SL) Limited
85%
Ordinary
31 Lightfoot Boston Street, Freetown
Singapore
Anglo American Crop Nutrients (Singapore)
100%
Ordinary
9 Raffles Place, #26-01 Republic Plaza, 048619
Pte Ltd
Singapore
Anglo American Shipping Pte. Limited
100%
Ordinary
10 Collyer Quay, #38-00 Ocean Financial Centre,
049315
Singapore
De Beers Auction Sales Singapore Pte. Ltd.
85%
Ordinary
10 Collyer Quay, #03-04 Ocean Financial Centre,
049315
Singapore
Kumba Singapore Pte. Ltd.
53%
Ordinary
10 Collyer Quay, #38-00 Ocean Financial Centre,
049315
Singapore
MR Iron Ore Marketing Services Pte. Ltd.
50%
Ordinary
10 Collyer Quay, #38-00 Ocean Financial Centre,
049315
Singapore
Singapore
Samancor Marketing Pte.Ltd.
Sulista Forte Pte. Ltd.
40%
100%
Ordinary
Ordinary
16 Collyer Quay #18-00 Collyer Quay Centre, 049318
77 Robinson Road, #13-00 Robinson 77 Singapore
068896
South Africa
African Pipe Industries North (Pty) Ltd
40%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Amandelbult Solar Pv (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Amaprop Townships Ltd
100%
Ordinary
61 Katherine Street, Sandton, 2196
South Africa
Ambase Investment Africa (Botswana) (Pty)
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
Ambase Investment Africa (DRC) (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Ambase Investment Africa (Tanzania) (Pty)
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
Ambase Investment Africa (Zambia) (Pty)
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
Anglo American Corporation of South Africa
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
(Pty) Ltd
Johannesburg
South Africa
Anglo American EMEA Shared Services (Pty)
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
Anglo American Farms (Pty) Ltd
100%
Ordinary
Vergelegen Wine Farm, Lourensford Road, Somerset
West, 7130
South Africa
Anglo American Farms Investment Holdings
100%
Ordinary
Vergelegen Wine Farm, Lourensford Road, Somerset
(Pty) Ltd
West, 7130
South Africa
Anglo American Group Employee
Shareholder Nominees (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo American Marketing South Africa (Pty)
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
Anglo American Platinum Limited
79%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo American Properties Ltd
100%
Ordinary
61 Katherine Street, Sandton, 2196
South Africa
Anglo American Prospecting Services (Pty)
100%
Ordinary
55 Marshall Street, Johannesburg, 2001,
Ltd
288
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
South Africa
Anglo American SA Finance Proprietary
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Limited
Johannesburg
South Africa
Anglo American SEFA Mining Fund (Pty) Ltd
50%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo American South Africa Investments
100%
Proprietary Limited
Ordinary
Preference
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo American South Africa Proprietary
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Limited
Johannesburg
South Africa
Anglo American Zimele (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo American Zimele Loan Fund (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo Coal Investment Africa (Botswana)
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
(Pty) Ltd
Johannesburg
South Africa
Anglo Corporate Enterprises (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Anglo Corporate Services South Africa
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Proprietary Limited
Johannesburg
South Africa
Anglo Platinum Management Services (Pty)
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
South Africa
Anglo South Africa (Pty) Ltd
100%
South Africa
Anglo South Africa Capital (Pty) Ltd
100%
Johannesburg
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
Ordinary
Redeemable
Preference
Ordinary
Redeemable
Preference
South Africa
Atomatic Trading (Pty) Limited
57%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Balgo Nominees (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Blinkwater Farms 244KR (Pty) Ltd
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
South Africa
Damelin Emalahleni (Pty) Ltd
South Africa
DBCM Holdings (Pty) Ltd
20%
63%
South Africa
De Beers Consolidated Mines (Pty) Ltd(8)
63%
South Africa
De Beers Group Services (Pty) Ltd
85%
Johannesburg
Ordinary
Cnr OR Tambo & Beatrix Avenue, Witbank, 1035
Ordinary
Redeemable
Preference
Ordinary
Redeemable
Preference
Ordinary
Redeemable
Preference
36 Stockdale Street, Kimberley, 8301
36 Stockdale Street, Kimberley, 8301
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
De Beers Marine (Pty) Ltd
85%
Ordinary
DMB Gardens Golf Park, 2 Raapenberg Road, Cape
Town, Western Cape, 7405
South Africa
Dido Nominees (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Dingleton Home Owners Resettlement Trust
53%
N/A
144 Oxford Road, Rosebank, Melrose 2196,
South Africa
Element Six (Production) Proprietary Limited 51%
South Africa
Envusa Energy Proprietary Limited
South Africa
First Mode SA (Pty) Ltd
South Africa
First Mode SA Holdings (Pty) Ltd
50%
81%
81%
Johannesburg
Ordinary
Ordinary
Debid Road, Nuffield, Springs, 1559
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
Ordinary No Par
Value
Ordinary No Par
Value
144 Oxford Road, Rosebank, Johannesburg, Gauteng,
2196
144 Oxford Road, Rosebank, Johannesburg, Gauteng,
2196
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
289
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
South Africa
HMM Rehabilitation Trust Fund
South Africa
Hotazel Manganese Mines Proprietary
Limited
30%
30%
N/A
Ordinary
Preference
6 Hollard Street, Johannesburg, 2001
39 Melrose Boulevard, Melrose Arch, Johannesburg,
2076
South Africa
Khongoni Haaskraal Coal (Pty) Ltd
20%
Ordinary
Unit 3, Bauhinia Street, Highveld Technopark, Centurion,
0157
South Africa
KIO Investments Holdings (Pty) Ltd
70%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Kumba BSP Trust
53%
N/A
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Kumba Iron One Rehabilitation Trust
70%
N/A
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Kumba Iron Ore Limited
70%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Lexshell 49 General Trading (Pty) Ltd
35%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Longboat (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Main Place Holdings Limited
39%
Ordinary
Suite 801, 76 Regent Road, Sea Point, Western Cape
8005
South Africa
Marikana Ferrochrome Limited
South Africa
Marikana Minerals (Pty) Ltd
South Africa
Matthey Rustenburg Refiners (Pty) Ltd
100%
100%
77%
Ordinary
Ordinary
44 Main Street, Johannesburg, 2001
55 Marshall Street, Johannesburg, 2001
A Ordinary Shares
B Ordinary Shares
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Metalloys Manganese Smelter Proprietary
40%
Ordinary NPV
39 Melrose Boulevard, Melrose Arch, Johannesburg,
Limited
2076
South Africa
Micawber 146 (Pty) Ltd
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
South Africa
Modikwa Mining Personnel Services (Pty) Ltd 38%
South Africa
Modikwa Platinum Mine (Pty) Ltd
South Africa
Mogalakwena Platinum Limited
38%
77%
Ordinary
Ordinary
Ordinary
Johannesburg
29 Impala Road, Chislehurston, Standton, 2196
16 North Road, Dunkeld Court, Dunkeld West, 2196
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Newshelf 480 (Pty) Ltd
55%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
South Africa
Norsand Holdings (Pty) Ltd
77%
Johannesburg
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
Ordinary
B Ordinary
Non-Cumulative
Redeemable
Preference
South Africa
Peglerae Hospital (Pty) Ltd
31%
Ordinary
21 Oxford Manor, Rudd & Chaplin Roads, Illovo,
Johannesburg, 2196
South Africa
Platmed (Pty) Ltd
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Platmed Properties (Pty) Ltd
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Polokwane Iron Ore Company (Pty) Ltd
27%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Precious Metals Refiners Proprietary Limited
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Pro Enviro (Pty) Ltd
South Africa
Resident Nominees (Pty) Ltd
20%
100%
Ordinary
Ordinary
Greenside Colliery, PTN 0ff 331, Blackhills, 1032
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Rustenburg Base Metals Refiners Proprietary
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Limited
Johannesburg
290
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
South Africa
Rustenburg Platinum Mines Limited
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Samancor Holdings Proprietary Limited
40%
Ordinary
39 Melrose Boulevard, Melrose Arch, Johannesburg,
2076
South Africa
Samancor Manganese Proprietary Limited
40%
Ordinary NPV
39 Melrose Boulevard, Melrose Arch, Johannesburg,
South Africa
Samancor Manganese Rehabilitation Trust
South Africa
Sheba's Ridge Platinum (Pty) Ltd
South Africa
Sibelo Resource Development (Pty) Ltd
40%
27%
53%
N/A
Ordinary
Ordinary
2076
6 Hollard Street, Johannesburg, 2001
Harrowdene Office Park Building 5, Woodmead, 2128
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
SIOC Employee Benefit Trust
53%
N/A
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
SIOC Employee Share Ownership Plan Trust 53%
N/A
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
SIOC Solar SPV (Pty) Ltd
53%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Sishen Iron Ore Company (Pty) Ltd
53%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Spectrem Air Pty Ltd
93%
Ordinary and no
par value
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Tenon Investment Holdings (Pty) Ltd
100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Terra Nominees Proprietary Limited
40%
Ordinary
39 Melrose Boulevard, Melrose Arch, Johannesburg,
2076
South Africa
The Village of Cullinan (Pty) Ltd
South Africa
The Work Expert (Pty) Ltd
63%
46%
Ordinary
Ordinary
36 Stockdale Street, Kimberley, 8301
17 Du Plooy Street, FH Building, Potchefstroom, North
West, 2530
South Africa
Venetia Solar Project Pty Ltd
64%
Ordinary
De Beers House, Corner Diamond Drive and Crownwood
Road, Theta, Johannesburg, 2013
South Africa
Vergelegen Wine Estate (Pty) Ltd
100%
Ordinary
Vergelegen Wine Farm, Lourensford Road, Somerset
West, 7130
South Africa
Vergelegen Wines (Pty) Ltd
100%
Ordinary
Vergelegen Wine Farm, Lourensford Road, Somerset
West, 7130
South Africa
Whiskey Creek Management Services (Pty)
77%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Ltd
Johannesburg
South Africa
WPIC Holdings Pty Ltd
40%
Ordinary
Rosebank Towers, 19 Biermann Ave, Rosebank,
Johannesburg, 2196
South Africa
Zero Emissions Hydrogen Solutions (PTY) Ltd 100%
Ordinary
144 Oxford Road, Rosebank, Melrose 2196,
Johannesburg
South Africa
Main Street 1252 (Pty) Ltd (RF)
63%
Ordinary
Cornerstone, Corner of Diamond Drive and Crownwood
Road, Theta, Johannesburg, 2013
Sweden
Switzerland
Element Six AB
De Beers Centenary AG(5)
51%
85%
Ordinary
Ordinary
c/o Advokatbyrån Kaiding, Box 385, 931 24 Skellefteå
c/o Telemarketing, Plus AG, Sonnenplatz 6, 6020,
Emmenbrücke
Switzerland
PGI SA
77%
Ordinary
Avenue Mon- Repos 24, Case postale 656, CH- 1001
Lausanne
Switzerland
Synova S.A.
28%
Ordinary
13 Route de Genolier, 1266 Duillier
Tanzania
Ambase Prospecting (Tanzania) (Pty) Ltd
100%
Ordinary
c/o Mawalla Advocates, Mawalla Road, Mawalla
Heritage Park, Plot No. 175/20, Arusha
United Arab
Emirates
De Beers DMCC
85%
Ordinary
Office 4D, Almas Tower, Jumeirah Lakes Towers, Dubai
United Kingdom Anglo American Australia Investments
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Limited(9)
United Kingdom Anglo American Capital Australia Limited
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
291
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
United Kingdom Anglo American Capital plc(9)
Percentage
of equity
owned(3)
100%
Share class
Registered address
Ordinary
3% Cumulative
Preference
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American CMC Holdings Limited
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American Corporate Secretary Limited 100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American Crop Nutrients Limited
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American Diamond Holdings Limited
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American Energy Solutions Limited
United Kingdom Anglo American Finance (UK) Limited
United Kingdom Anglo American Holdings Limited
100%
100%
100%
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
Ordinary
Ordinary
Ordinary
8% Preference
8.3% Preference
B shares
United Kingdom Anglo American International Holdings
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Limited
United Kingdom Anglo American Investments (UK) Limited
United Kingdom Anglo American Marketing Limited
United Kingdom Anglo American Medical Plan Limited
United Kingdom Anglo American Medical Plan Trust
United Kingdom Anglo American Prefco Limited(9)
United Kingdom Anglo American Rand Capital Limited
United Kingdom Anglo American REACH Limited
United Kingdom Anglo American Services (UK) Ltd.(9)
100%
100%
100%
100%
100%
100%
100%
100%
Ordinary
Ordinary
Preference
Ordinary
N/A
Ordinary
Capital Preference
Preference
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
Ordinary
Ordinary
Ordinary
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
United Kingdom Anglo American Technical & Sustainability
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Limited
United Kingdom Anglo American Technical & Sustainability
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Services Ltd
United Kingdom Anglo American Woodsmith (Teesside)
100%
Limited
United Kingdom Anglo American Woodsmith Limited
100%
United Kingdom Anglo Base Metals Marketing Limited
United Kingdom Anglo Platinum Marketing Limited
United Kingdom Anglo UK Pension Trustee Limited
United Kingdom AP Ventures Fund I LP
United Kingdom Birchall Gardens LLP
United Kingdom Charterhouse CAP Limited
United Kingdom Curtis Fitch Limited
United Kingdom De Beers Capital Southern Africa Limited
United Kingdom De Beers Corporate Secretary Limited
United Kingdom De Beers Jewellers Limited
100%
77%
100%
39%
50%
85%
21%
85%
85%
85%
Ordinary
Non-voting
Ordinary
B preference
Non-voting
Ordinary
Ordinary
Ordinary
N/A
N/A
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
16 Littleworth Lane, Esher, Surrey, KT10 9PF
Bardon Hall, Copt Oak Road, Markfield, Leicestershire,
LE67 9PJ
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Ordinary B
Formal House, 60 St George’s Place, Cheltenham,
Gloucestershire, GL50 3PN
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
Ordinary
Ordinary
A Ordinary
B Ordinary
Deferred Share
Special Dividend
Share
United Kingdom De Beers Jewellers Trade Mark Limited
United Kingdom De Beers Jewellers UK Limited
United Kingdom De Beers UK Limited
85%
85%
85%
Ordinary
Ordinary
Ordinary
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
292
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
United Kingdom Debcore Limited
United Kingdom Ebbsfleet Property Limited
Percentage
of equity
owned(3)
43%
50%
Share class
Registered address
Ordinary-A
17 Charterhouse Street, London, EC1N 6RA
Ordinary
Bardon Hall, Copt Oak Road, Markfield, Leicestershire,
LE67 9PJ
United Kingdom Element Six (UK) Limited
51%
Ordinary
Global Innovation Centre, Fermi Avenue, Harwell, Oxford,
United Kingdom Element Six Abrasives Holdings Limited
51%
United Kingdom Element Six Holdings Limited
United Kingdom Element Six Limited
85%
85%
Ordinary
Preference
Ordinary
Ordinary
Didcot, Oxfordshire, OX11 0QR
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
Global Innovation Centre, Fermi Avenue, Harwell, Oxford,
Didcot, Oxfordshire, OX11 0QR
United Kingdom Element Six Technologies Limited
85%
Ordinary
Global Innovation Centre, Fermi Avenue, Harwell, Oxford,
Didcot, Oxfordshire, OX11 0QR
United Kingdom Ferro Nickel Marketing Limited
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
United Kingdom First Mode IPP Limited
United Kingdom Forevermark Limited
United Kingdom Gemfair Limited
United Kingdom IIDGR (UK) Limited
United Kingdom Lightbox Jewelry Ltd.
United Kingdom Rhoanglo Trustees Limited
United Kingdom Sach 1 Ltd
United Kingdom Sach 2 Ltd
United Kingdom Security Nominees Limited
United Kingdom Sirius Minerals Holdings Limited
United Kingdom Swanscombe Development LLP
81%
85%
85%
85%
85%
100%
100%
100%
100%
100%
50%
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Redeemable
Preference
Ordinary
Ordinary
N/A
10 Bloomsbury Way, London, WC1A 2SL
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
Bardon Hall, Copt Oak Road, Markfield, Leicestershire,
LE67 9PJ
United Kingdom Tarvos Limited
30%
N/A
Unit 107, 121 Upper Richmond Road, London, England,
SW15 2DW
United Kingdom The Diamond Trading Company Limited
United Kingdom TRACR Limited
85%
85%
Ordinary
Ordinary
17 Charterhouse Street, London, EC1N 6RA
17 Charterhouse Street, London, EC1N 6RA
United Kingdom York Potash Holdings Limited
100%
Ordinary
1 More London Place, London, SE1 2AF
United Kingdom York Potash Intermediate Holdings Limited
100%
Ordinary
1 More London Place, London, SE1 2AF
United Kingdom YPF Limited
Anglo American Crop Nutrients (USA), LLC
100%
100%
Ordinary
17 Charterhouse Street, London, EC1N 6RA
Membership
interest
7700 E Arapahoe Road, Suite 220, Centennial Colorado,
80112
United States
of America
United States
of America
United States
of America
United States
of America
United States
of America
United States
of America
United States
of America
United States
of America
United States
of America
Anglo American US Holdings Inc.
100%
Common
c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington Delaware, 19808
De Beers Jewellers US, Inc.
85%
Common
300 First Stamford Place, Stamford, CT, 06902
Element Six Technologies (OR) Corp.
85%
Ordinary
Cogency Global Inc., 850 New Burton Road, Suite 201,
Dover, DE 19904
Element Six Technologies US Corporation
85%
Ordinary
3901 Burton Drive, Santa Clara, CA 95054
Element Six US Corporation
51%
Common stock
24900 Pitkin Road, Suite 250, Spring TX 77386
First Mode Holdings Inc.
81%
Ordinary
1209 Orange Street, City of Wilmington, Delaware,
19801
Forevermark US Inc.
85%
Common
300 First Stamford Place, Stamford, CT, 06902
Lightbox Jewelry Inc.
85%
Ordinary
Cogency Global Inc., 850 New Burton Road, Suite 201,
Dover, DE 19904
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
293
Group structure
36. Related undertakings of the Group continued
Country of
incorporation(1)(2)
Name of undertaking
See page 293 for footnotes.
Percentage
of equity
owned(3)
Share class
Registered address
United States
of America
United States
of America
Platinum Guild International (U.S.A.) Jewelry
77%
Ordinary
125 Park Avenue, 25th Floor, New York, New York 10017
Inc.
Synchronous LLC
81%
Membership Units C/O Corpserve, Inc., 1001 Fourht Avenue, Ste. 4400,
Seattle, WA 98154
Venezuela
Minera Loma de Niquel C.A.
100%
Class A
Torre Humboldt, floor 9, office 09-07, Rio Caura Street,
Prados del Este. Caracas 1080.
Zambia
Anglo Exploration (Zambia) (Pty) Ltd
100%
Ordinary
11 Katemo Road, Rhodes Park, Lusaka
Zimbabwe
Amzim Holdings Limited
Zimbabwe
Southridge Limited
Zimbabwe
Unki Mines (Private) Limited
Zimbabwe
Unki Solar PV (Private) Limited
79%
79%
79%
79%
Ordinary
Ordinary
Ordinary
Ordinary
28 Broadlands Road, Emerald Hill, Harare
28 Broadlands Road, Emerald Hill, Harare
28 Broadlands Road, Emerald Hill, Harare
28 Broadlands Road, Emerald Hill, Harare
(1) All the companies with an incorporation in the United Kingdom are registered in England
and Wales.
(2) The country of tax residence is disclosed where different from the country of incorporation.
(3) All percentages have been rounded.
(4) The interest in Debswana Diamond Company (Pty) Ltd is held indirectly through De Beers
and is consolidated on a 19.2% proportionate basis, reflecting economic interest. The
Group’s effective interest in Debswana Diamond Company (Pty ) Ltd is 16.3%.
(5) Tax resident in the United Kingdom.
(6) 2% direct holding by Anglo American plc.
(7) 0.03% direct holding by Anglo American plc.
(8) A 74% interest in De Beers Consolidated Mines (Pty) Ltd (DBCM) and its subsidiaries is held
indirectly through De Beers. The 74% interest represents De Beers’ legal ownership share in
DBCM. For accounting purposes De Beers consolidates 100% of DBCM as it is deemed to
control the BEE entity, Ponahalo, which holds the remaining 26%. The Group’s effective
interest in DBCM is 85%.
(9) 100% direct holding by Anglo American plc.
294
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Other items
This section includes disclosures about related party transactions, auditors’
remuneration and accounting policies.
37. Related party transactions
The Group has related party relationships with its subsidiaries, joint operations, associates and joint ventures (see notes 35 and 36). Members of
the Board and the Executive Leadership Team are considered to be related parties.
The Company and its subsidiaries, in the ordinary course of business, enter into various sale, purchase and service transactions with joint
operations, associates, joint ventures and others in which the Group has a material interest. These transactions are under terms that are no less
favourable to the Group than those arranged with third parties.
US$ million
Transactions with related parties
Sale of goods and services
Purchase of goods and services
Balances with related parties
Trade and other receivables from related parties
Trade and other payables to related parties
Loans receivable from related parties
Associates
Joint ventures
Joint operations
2023
2022
2023
2022
2023
2022
—
—
—
—
2
—
—
—
—
2
3
16
118
181
(204)
(190)
(2,980)
(4,253)
2
(18)
163
7
(18)
147
18
17
(86)
(250)
1
—
Balances and transactions with joint operations or joint operation partners represent the portion that the Group does not have the right to offset
against the corresponding amount recorded by the respective joint operations. These amounts primarily relate to purchases by De Beers and
Platinum Group Metals from their joint operations in excess of the Group’s attributable share of their production.
Loans receivable from related parties are included in Financial asset investments on the Consolidated balance sheet.
Remuneration and benefits received by directors are disclosed in the Remuneration report. Remuneration and benefits of key management
personnel, including directors, are disclosed in note 28. Information relating to pension fund arrangements is disclosed in note 29.
38. Auditors’ remuneration
US$ million
Paid to the Company’s auditor for audit
of the Anglo American plc Annual Report(1)
Paid to the Company’s auditor for other
services to the Group
Audit of the Company’s subsidiaries
Total audit fees
Audit related assurance services
Other assurance services
Total non-audit fees
Paid/payable to PwC
United
Kingdom
Overseas
Total
2023
Paid/payable
to auditor
(if not PwC)
United
Kingdom and
overseas
Paid/payable to PwC
United
Kingdom
Overseas
Total
2022
Paid/payable
to auditor
(if not PwC)
United
Kingdom and
overseas
4.9
2.7
7.6
—
6.0
1.7
7.7
—
1.6
6.5
1.0
0.4
1.4
7.0
9.7
0.7
0.2
0.9
8.6
16.2
1.7
0.6
2.3
0.4
0.4
—
—
—
1.1
7.1
0.9
0.4
1.3
7.4
9.1
0.8
0.1
0.9
8.5
16.2
1.7
0.5
2.2
0.3
0.3
—
—
—
(1) In addition there is $0.6 million of audit fees paid in 2023 related to the audit for the year ended 31 December 2022.
Audit related assurance services includes $1.7 million (2022: $1.7 million) for the interim review.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
295
Other items
39. Accounting policies
A. Basis of preparation
Basis of preparation
The financial statements have been prepared in accordance with the
requirements of the Companies Act 2006, UK-adopted International
Accounting Standards and those parts of the Companies Act 2006
applicable to companies reporting under those standards and the
requirements of the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority in the United Kingdom as applicable to
periodic financial reporting. The financial statements have been
prepared under the historical cost convention as modified by the
revaluation of pension assets and liabilities and certain financial
instruments. A summary of the material Group accounting policies is
set out below.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Although these
estimates are based on management’s best knowledge of the
amount, event or actions, actual results ultimately may differ from
those estimates.
The Group’s results are presented in US dollars, the currency in which
its business is primarily conducted.
Changes in accounting policies, estimates and disclosures
The accounting policies applied are consistent with those adopted
and disclosed in the Group financial statements for the year ended
31 December 2022 with the exception of new accounting
pronouncements, which became effective on 1 January 2023 and
have been adopted by the Group. The adoption of these new
accounting pronouncements has not had a significant impact on the
accounting policies, methods of computation or presentation applied
by the Group except for the adoption of the amendment to IAS 12
Income Taxes below.
IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
An amendment to IAS 12 Income Taxes was published in May 2021
and became effective for the Group from 1 January 2023. The
amendment narrowed the scope of the deferred tax recognition
exemption so that it no longer applies to transactions that, on initial
recognition, give rise to equal taxable and deductible temporary
differences.
The Group has considered the impact of this amendment, notably in
relation to the accounting for deferred taxes on leases and
decommissioning and environmental restoration provisions. The
impact of transitioning to the revised standard was to increase net
deferred tax liabilities and reduce total equity as at 1 January 2022
and 31 December 2022 by $71million ($43 million reducing Retained
earnings and $28 million reducing Non-controlling interests).
Going concern
The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are set out in the Group financial review on pages
90–93. Further details of our policy on financial risk management are
set out in note 25 to the financial statements on pages 261-263. The
Group’s net debt (including related hedges) at 31 December 2023
was $10.6 billion (2022: $6.9 billion). During the first half of 2023, the
Group issued $2.0 billion of bond debt. In March 2023, the Group
issued €500 million 4.5% Senior Notes due 2028, €500 million 5.0%
Senior Notes due 2031 and, in May 2023, $900 million 5.5% Senior
Notes due 2033. In the second half of 2023, the Group refinanced its
$4.7 billion revolving credit facility maturing in March 2025, to a one
year $1 billion facility maturing in November 2024, and a $3.7 billion
five year facility maturing in November 2028. The Group’s liquidity
position (defined as cash and undrawn committed facilities) of
$13.2 billion at 31 December 2023 remains strong. Further details of
borrowings and facilities are set out in note 22 and note 25 on pages
255 and 261–263 respectively, and net debt is set out in note 21 on
page 254.
The directors have considered the Group’s cash flow forecasts for the
period to the end of December 2025 under base and downside
scenarios, with reference to the Group’s principal risks as set out within
the Group viability statement on pages 79–80. In the downside
scenario modelled (including pricing and production downsides,
alongside a significant operational incident), the Group maintains
sufficient liquidity throughout the period of assessment without the use
of mitigating actions.
The Board is satisfied that the Group’s forecasts and projections,
taking account of reasonably possible changes in trading
performance, show that the Group will be able to operate within the
level of its current facilities for the period of at least 12 months from the
date of approval of the financial statements. For this reason the
Group continues to adopt the going concern basis in preparing its
financial statements.
New IFRS accounting standards, amendments and interpretations
not yet adopted
The Group has not early adopted any other amendment, standard or
interpretation that has been issued but is not yet effective. It is
expected that where applicable, these standards and amendments
will be adopted on each respective effective date. The following new
or amended IFRS accounting standards, amendments and
interpretations not yet adopted are not expected to have a significant
impact on the Group:
– Amendments to IAS 1 Presentation of financial statements: non-
current liabilities with covenants
– Amendments to IFRS 16 Leases: Lease Liability in a Sale and
Leaseback
– Amendments to IAS 7 and IFRS 7, Supplier finance-disclosure
requirements
B. Basis of consolidation
Basis of consolidation
The financial statements incorporate a consolidation of the financial
statements of the Company and entities controlled by the Company
(its subsidiaries). Control is achieved where the Company is exposed,
or has rights, to variable returns from its involvement with the investee
and has the ability to affect those returns through its power over the
investee.
The results of subsidiaries acquired or disposed of during the year are
included in the income statement from the effective date of acquisition
or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the results of subsidiaries,
joint arrangements and associates to bring their accounting policies
into line with those used by the Group. Intra-group transactions,
balances, income and expenses are eliminated on consolidation,
where appropriate.
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Financial statements and other financial information
Notes to the financial statements
Other items
39. Accounting policies continued
For non-wholly owned subsidiaries, non-controlling interests are
presented in equity separately from the equity attributable to
shareholders of the Company. Profit or loss and other comprehensive
income are attributed to the shareholders of the Company and to non-
controlling interests even if this results in the non-controlling interests
having a deficit balance.
Changes in ownership interest in subsidiaries that do not result in a
change in control are accounted for in equity. The carrying amounts of
the controlling and non-controlling interests are adjusted to reflect the
changes in their relative interests in the subsidiary. Any difference
between the amount by which the non-controlling interest is adjusted
and the fair value of the consideration paid or received is recorded
directly in equity and attributed to the shareholders of the Company.
Foreign currency transactions and translation
Foreign currency transactions by Group companies are recognised in
the functional currencies of the companies at the exchange rate ruling
on the date of the transaction. At each reporting date, monetary assets
and liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the reporting date. Gains and
losses arising on retranslation are included in the income statement for
the period and are classified in the income statement according to the
nature of the monetary item giving rise to them.
Non-monetary assets and liabilities that are measured at historical
cost in a foreign currency are translated using the exchange rate at the
date of the transaction.
On consolidation, the assets and liabilities of the Group’s foreign
operations are translated into the presentation currency of the Group
at exchange rates prevailing on the reporting date. Income and
expense items are translated at the average exchange rates for the
period where these approximate the rates at the dates of the
transactions. Any exchange differences arising are classified within the
statement of comprehensive income and transferred to the Group’s
cumulative translation adjustment reserve. Exchange differences on
foreign currency balances with foreign operations for which settlement
is neither planned nor likely to occur in the foreseeable future, and
therefore form part of the Group’s net investment in these foreign
operations, are offset in the cumulative translation adjustment reserve.
Cumulative translation differences are recycled from equity and
recognised as income or expense on disposal of the operation to
which they relate.
Goodwill and fair value adjustments arising on the acquisition of
foreign entities are treated as assets of the foreign entity and
translated at the closing rate.
Tenon
Tenon Investment Holdings Proprietary Limited (Tenon), a wholly
owned subsidiary of Anglo American South Africa Proprietary Limited
(AASA), has entered into agreements with Epoch Investment Holdings
(RF) Proprietary Limited (Epoch), Epoch Two Investment Holdings (RF)
Proprietary Limited (Epoch Two) and Tarl Investment Holdings (RF)
Proprietary Limited (Tarl) (collectively the Investment Companies),
each owned by independent charitable trusts whose trustees are
independent of the Group. Under the terms of these agreements, the
Investment Companies have purchased Anglo American plc shares on
the market and have granted to Tenon the right to nominate a third
party (which may include Anglo American plc but not any of its
subsidiaries) to take transfer of the Anglo American plc shares each
has purchased on the market. Tenon paid the Investment Companies
80% of the cost of the Anglo American plc shares including associated
costs for this right to nominate, which together with subscriptions by
Tenon for non-voting participating redeemable preference shares in
the Investment Companies, provided all the funding required to
acquire the Anglo American plc shares through the market. These
payments by Tenon were sourced from the cash resources of AASA.
Tenon is able to exercise its right of nomination at any time up to
31 December 2025 against payment of an average amount of $2.93
per share to Epoch, $4.56 per share to Epoch Two and $3.78 per share
to Tarl which will be equal to 20% of the total costs respectively
incurred by Epoch, Epoch Two and Tarl in purchasing shares
nominated for transfer to the third party. These funds will then become
available for redemption of the preference shares issued by the
Investment Companies. The amount payable by the third party on
receipt of the Anglo American plc shares will accrue to Tenon and, as
these are own shares of the Company, any resulting gain or loss
recorded by Tenon will not be recognised in the Consolidated income
statement of Anglo American plc.
Under the agreements, the Investment Companies will receive
dividends on the shares they hold and have agreed to waive the right
to vote on those shares. The preference shares issued to the charitable
trusts are entitled to a participating right of up to 10% of the profit after
tax of Epoch and 5% of the profit after tax of Epoch Two and Tarl. The
preference shares issued to Tenon will carry a fixed coupon of 3% plus
a participating right of up to 80% of the profit after tax of Epoch and
85% of the profit after tax of Epoch Two and Tarl. Any remaining
distributable earnings in the Investment Companies, after the above
dividends, are then available for distribution as ordinary dividends to
the charitable trusts.
The structure effectively provides Tenon with a beneficial interest in the
price risk on these shares together with participation in future dividend
receipts. The Investment Companies will retain legal title to the shares
until Tenon exercises its right to nominate a transferee.
At 31 December 2023 the Investment Companies together held
112,300,129 (2022: 112,300,129) Anglo American plc shares, which
represented 8.4% (2022: 8.4%) of the ordinary shares in issue
(excluding treasury shares) with a market value of $2,818 million
(2022: $4,400 million). The Investment Companies are not permitted
to hold more than an aggregate of 10% of the issued share capital of
Anglo American plc at any one time.
The Investment Companies are considered to be structured entities.
Although the Group has no voting rights in the Investment Companies
and cannot appoint or remove trustees of the charitable trusts, the
Group considers that the agreement outlined above, including Tenon’s
right to nominate the transferee of the Anglo American plc shares held
by the Investment Companies, results in the Group having control over
the Investment Companies as defined under IFRS 10 Consolidated
Financial Statements. Accordingly, the Investment Companies are
required to be consolidated by the Group.
C. Financial performance
Revenue recognition
Revenue from contracts with customers
Revenue from contracts with customers is recognised in a manner that
depicts the pattern of the transfer of goods and services to customers.
The amount recognised reflects the amount to which the Group
expects to be entitled in exchange for those goods and services. Sales
contracts are evaluated to determine the performance obligations, the
transaction price and the point at which there is transfer of control. The
transaction price is the amount of consideration due in exchange for
transferring the promised goods or services to the customer, and is
allocated against the performance obligations and recognised in
accordance with whether control is transferred over a defined period
or at a specific point in time.
Revenue is derived principally from commodity sales. A sale is
recognised when control has been transferred. This is usually when title
and insurance risk have passed to the customer and the goods have
been delivered to a contractually agreed location. Revenue from
contracts with customers is measured at the fair value of consideration
received or receivable as at the date control is transferred, after
deducting discounts, volume rebates, value added tax and other sales
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
297
Other items
39. Accounting policies continued
taxes. Some sales are provisionally priced such that the price is not
settled until a predetermined future date and is based on the market
price at that time or a specified period to that date. For these sales,
revenue from contracts with customers is recognised on the date
control is transferred to the customer using the relevant forward price
at that date. Sales of metal concentrate are stated at their invoiced
amount which is net of treatment and refining charges.
Revenues from the sale of material by-products are recognised within
revenue from contracts with customers at the point control passes.
Where a by-product is not regarded as significant, revenue may be
credited against operating costs.
Revenue from services is recognised over time in line with the policy
above. For contracts which contain separate performance obligations
for the sale of commodities and the provision of freight services, the
portion of the revenue representing the obligation to perform the
freight service is deferred and recognised over time as the obligation is
fulfilled. In situations where the Group is acting as an agent, amounts
billed to customers are offset against the relevant costs.
Revenue from other sources
Revenue from other sources principally relates to gains and losses on
financial instruments which are intrinsically linked to the delivery of
commodities to customers or to the Group’s commodity trading
activities.
Sales of commodities which are provisionally priced are marked to
market at each reporting date using the forward price for the period
equivalent to that outlined in the contract. Mark-to-market adjustments
arising after control of the goods transfers to the customer are
recognised in revenue from other sources.
Physically-settled contracts relating to the purchase and sale of
material produced by third parties (third-party sales) are presented on
a net basis within revenue from other sources where these contracts
are entered into and managed collectively to generate a trading
margin as part of the Group’s Marketing business and are accounted
for as derivatives prior to settlement. This includes third-party material
purchased for blending activities conducted to benefit from short term
pricing differentials (usually of less than twelve months). The sale and
purchase of third-party material to mitigate shortfalls in the Group’s
own production are shown on a gross basis with sales reported within
revenue from contracts with customers as such contracts are used to
maintain customer relationships and fulfil physical sale commitments
rather than to generate a trading margin.
Revenue from other sources also includes fair value gains and losses
arising from mark-to-market adjustments to inventory purchased from
third parties as part of trading activities and accounted for at fair value less
costs to sell under the broker-trader exemption of IAS 2 Inventories.
Contracts with a right to repurchase
Where the Group enters into commodity sale or purchase agreements
in the course of its commodity trading activities in which the seller has a
right to repurchase, consideration is given to whether the risks and
rewards of ownership have been transferred as a result of the sale. This
assessment is made with reference to the criteria in IFRS 9 Financial
Instruments. Key considerations in this assessment include whether the
purchaser has a practical ability to use the commodity and whether
price risk has been transferred.
Where risks and rewards have been transferred, the sale or purchase
contract is accounted for separately from the repurchase obligation
(which is recorded as a derivative financial instrument). Where risks
and rewards have not been transferred or the arrangements do not
relate to the Group’s commodity trading activities, any consideration
received or paid is recorded as a liability or asset as appropriate and
no adjustment is made to revenue or inventory.
Interest income
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable.
Dividend income
Dividend income from investments is recognised when the
shareholders’ rights to receive payment have been established.
Exploration and evaluation expenditure
Exploration and evaluation expenditure is expensed in the year in
which it is incurred.
Exploration expenditure is the cost of exploring for Mineral Resources
other than that occurring at existing operations and projects and
comprises geological and geophysical studies, exploratory drilling and
sampling and Mineral Resource development.
Evaluation expenditure includes the cost of conceptual and pre-
feasibility studies and evaluation of Mineral Resources at existing
operations.
When a decision is taken that a mining project is technically feasible
and commercially viable, usually after a pre-feasibility study has been
completed, subsequent directly attributable expenditure, including
feasibility study costs, are considered development expenditure and
are capitalised within property, plant and equipment.
Exploration properties acquired are recognised on the balance
sheet when management considers that their value is recoverable.
These properties are measured at cost less any accumulated
impairment losses.
Short term and low value leases
Leases with a term of less than 12 months or those with committed
payments of less than $5,000 are not recognised in the balance sheet.
The Group recognises payments for these leases as an expense on a
straight-line basis over the lease term within operating costs in
underlying EBITDA.
Borrowing costs
Interest on borrowings directly relating to the financing of qualifying
assets in the course of construction is added to the capitalised cost of
those projects under ‘Capital works in progress’, until such time as the
assets are substantially ready for their intended use or sale.
Where funds have been borrowed specifically to finance a project, the
amount capitalised represents the actual borrowing costs incurred.
Where the funds used to finance a project form part of general
borrowings, the amount capitalised is calculated using a weighted
average of rates applicable to relevant general borrowings of the
Group during the period. All other borrowing costs are recognised in
the income statement in the period in which they are incurred.
All cash flows relating to interest on borrowings are presented within
interest paid in the cash flow statement.
D. Capital base
Business combinations and goodwill arising thereon
The identifiable assets, liabilities and contingent liabilities of a
subsidiary, a joint arrangement or an associate, which can be
measured reliably, are recorded at their provisional fair values at the
date of acquisition. The estimation of the fair value of identifiable
assets and liabilities is subjective and the use of different valuation
assumptions could have a significant impact on financial results.
Goodwill is the fair value of the consideration transferred (including
contingent consideration and previously held non-controlling interests)
less the fair value of the Group’s share of identifiable net assets on
acquisition.
Where a business combination is achieved in stages, the Group’s
previously held interests in the acquiree are remeasured to fair value at
the acquisition date and the resulting gain or loss is recognised in the
income statement.
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Financial statements and other financial information
Notes to the financial statements
Other items
39. Accounting policies continued
Amounts arising from interests in the acquiree prior to the acquisition
date that have previously been recognised in other comprehensive
income are reclassified to the income statement, where such
treatment would be appropriate if that interest were disposed of.
Transaction costs incurred in connection with the business
combination are expensed. Provisional fair values are finalised within
12 months of the acquisition date.
Goodwill in respect of subsidiaries and joint operations is included
within intangible assets. Goodwill relating to associates and joint
ventures is included within the carrying value of the investment.
Where the fair value of the identifiable net assets acquired exceeds the
cost of the acquisition, the surplus, which represents the discount on
the acquisition, is recognised directly in the income statement in the
period of acquisition.
For non-wholly owned subsidiaries, non-controlling interests are
initially recorded at the non-controlling interests’ proportion of the fair
values of net assets recognised at acquisition.
Impairment of goodwill, intangible assets and property, plant and
equipment
Goodwill arising on business combinations is allocated to the group of
cash generating units (CGUs) that is expected to benefit from
synergies of the combination, and represents the lowest level at which
goodwill is monitored by the Group’s Board of directors for internal
management purposes. The recoverable amount of the CGU, or group
of CGUs, to which goodwill has been allocated is tested for impairment
annually, or when events or changes in circumstances indicate that it
may be impaired.
Any impairment loss is recognised immediately in the income
statement. Impairment of goodwill is not subsequently reversed.
At each reporting date, the Group reviews the carrying amounts of its
property, plant and equipment and intangible assets to determine
whether there is any indication that those assets are impaired. If such
an indication exists, the recoverable amount of the asset is estimated
in order to determine the extent of any impairment. Where the asset
does not generate cash flows that are independent from other assets,
the Group estimates the recoverable amount of the CGU to which the
asset belongs. An intangible asset with an indefinite useful life is tested
for impairment annually and whenever there is an indication that the
asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal
and value in use (VIU) assessed using discounted cash flow models,
as explained in note 7. In assessing VIU, the estimated future cash
flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset or CGU is estimated to be less
than its carrying amount, the carrying amount of the asset or CGU is
reduced to its recoverable amount. An impairment loss is recognised
in the income statement.
Where an impairment loss is subsequently reversed, the carrying
amount of the asset or CGU is increased to the revised estimate of its
recoverable amount, to the extent that the increased carrying amount
does not exceed the carrying amount that would have been
determined had no impairment been recognised for the asset or CGU.
A reversal of an impairment loss is recognised in the income statement.
In addition, in making assessments for impairment, management
necessarily applies its judgement in allocating assets, including
goodwill, that do not generate independent cash inflows to
appropriate CGUs.
Subsequent changes to the CGU allocation, timing of cash flows or
assumptions used to determine the cash flows could impact the
carrying value of the respective assets.
Non-mining licences and other intangible assets
Non-mining licences and other intangible assets are measured at cost
less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired as part of an acquisition of a business are
capitalised separately from goodwill if the asset is separable or arises
from contractual or legal rights and the fair value can be measured
reliably on initial recognition. Intangible assets are amortised over their
estimated useful lives, usually between 3 and 20 years, except
goodwill and those intangible assets that are considered to have
indefinite lives. For intangible assets with a finite life, the amortisation
period is determined as the period over which the Group expects to
obtain economic benefits from the asset, taking account of all relevant
facts and circumstances including contractual lives and expectations
about the renewal of contractual arrangements without significant
incremental costs. An intangible asset is deemed to have an indefinite
life when, based on an analysis of all of the relevant factors, there is no
foreseeable limit to the period over which the asset is expected to
generate cash flows for the Group. Indefinite lived intangible assets
are principally brands for which there is global recognition with
no foreseeable timeframe of expected contribution that the Group
is continuing to invest and actively market. Amortisation methods,
residual values and estimated useful lives are reviewed at
least annually.
Deferred stripping
The removal of rock or soil overlying a mineral deposit, overburden and
other waste materials is often necessary during the initial development
of an open pit mine site, in order to access the orebody. The process of
removing overburden and other mine waste materials is referred to as
stripping. The directly attributable cost of this activity is capitalised in
full within ‘Mining properties – owned’, until the point at which the mine
is considered to be capable of operating in the manner intended by
management. This is classified as growth or life-extension capital
expenditure, within investing cash flows.
The removal of waste material after the point at which depreciation
commences is referred to as production stripping. When the waste
removal activity improves access to ore extracted in the current period,
the costs of production stripping are charged to the income statement
as operating costs in accordance with the principles of IAS 2
Inventories.
Where production stripping activity both produces inventory and
improves access to ore in future periods the associated costs of waste
removal are allocated between the two elements. The portion that
benefits future ore extraction is capitalised within ‘Mining properties –
owned’. This is classified as stripping and development capital
expenditure, within investing cash flows. If the amount to be capitalised
cannot be specifically identified, it is determined based on the volume
of waste extracted compared with expected volume for the identified
component of the orebody. This determination is dependent on
an individual mine’s design and Life of Asset Plan and therefore
changes to the design or Life of Asset Plan will result in changes to
these estimates. Identification of the components of a mine’s orebody
is made by reference to the Life of Asset Plan. The assessment
depends on a range of factors including each mine’s specific
operational features and materiality.
In certain instances, significant levels of waste removal may occur
during the production phase with little or no associated production.
This may occur at both open pit and underground mines, for example
longwall development.
The cost of this waste removal is capitalised in full to ‘Mining properties
– owned’.
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Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
299
Other items
39. Accounting policies continued
All amounts capitalised in respect of waste removal are depreciated
using the unit of production method for the component of the orebody
to which they relate, consistent with depreciation of property, plant and
equipment.
The effects of changes to the Life of Asset Plan on the expected cost of
waste removal or remaining Ore Reserves for a component are
accounted for prospectively as a change in estimate.
Property, plant and equipment
Property, plant and equipment is stated at cost, less accumulated
depreciation and accumulated impairment losses. Cost is the fair value
of consideration required to acquire and develop the asset and
includes the purchase price, acquisition of mineral rights, costs directly
attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by
management, the initial estimate of any decommissioning obligation
and, for assets that take a substantial period of time to get ready for
their intended use, borrowing costs. Revenue and costs arising from
assets before they are capable of operating in the manner intended by
management are recognised in the income statement.
Gains or losses on disposal of property, plant and equipment are
determined by comparing the net proceeds from disposal with the
carrying amount. The gain or loss is recognised in the income
statement.
Depreciation of property, plant and equipment
Mining properties are depreciated to their residual values using the unit
of production method based on Proved and Probable Ore Reserves
and, in certain limited circumstances, other Mineral Resources included
in the Life of Asset Plan. These other Mineral Resources are included in
depreciation calculations where, taking into account historical rates of
conversion to Ore Reserves, there is a high degree of confidence that
they will be extracted in an economic manner. This is the case
principally for diamond operations, where depreciation calculations
are based on Diamond Reserves and Diamond Resources included in
the Life of Asset Plan. This reflects the unique nature of diamond
deposits where, due to the difficulty in estimating grade, Life of Asset
Plans frequently include significant amounts of Inferred Resources.
Buildings and items of plant and equipment for which the consumption
of economic benefit is linked primarily to utilisation or to throughput
rather than production, are depreciated to their residual values at
varying rates on a straight-line basis over their estimated useful lives, or
the Reserve Life, whichever is shorter. Estimated useful lives normally
vary from up to 20 years for items of plant and equipment to
a maximum of 50 years for buildings. Under limited circumstances,
items of plant and equipment may be depreciated over a period that
exceeds the Reserve Life by taking into account additional Mineral
Resources other than Proved and Probable Reserves included in the
Life of Asset Plan, after making allowance for expected production
losses based on historical rates of Mineral Resource to Ore Reserve
conversion.
‘Capital works in progress’ are measured at cost less any recognised
impairment. Depreciation commences when the assets are capable of
operating in the manner intended by management, at which point they
are transferred to the appropriate asset class.
Land is not depreciated.
When parts of an item of property, plant and equipment have different
useful lives, they are accounted for as separate items (major
components).
Depreciation methods, residual values and estimated useful lives are
reviewed at least annually.
Leased right-of-use assets
Leased right-of-use assets are included within property, plant and
equipment, and on inception of the lease are recognised at the
amount of the corresponding lease liability, adjusted for any lease
payments made at or before the lease commencement date, plus any
direct costs incurred and an estimate of costs for dismantling,
removing, or restoring the underlying asset and less any lease
incentives received.
The right-of-use asset is depreciated on a straight-line basis over the
term of the lease, or, if shorter, the useful life of the asset. The useful
lives of right-of-use assets are estimated on the same basis as those of
owned property, plant and equipment.
Financial assets
Investments, other than investments in subsidiaries, joint arrangements
and associates, are financial asset investments and are initially
recognised at fair value. The Group’s financial assets are classified into
the following measurement categories: debt instruments at amortised
cost, equity instruments and debt instruments designated at fair value
through other comprehensive income (OCI), and debt instruments,
derivatives and equity instruments at fair value through profit and loss.
Financial assets are classified as at amortised cost only if the asset is
held within a business model whose objective is to collect the
contractual cash flows and the contractual terms of the asset give rise
to cash flows that are solely payments of principal and interest.
At subsequent reporting dates, financial assets at amortised cost are
measured at amortised cost less any impairment losses. Other
investments are classified as either at fair value through profit or loss
(which includes investments held for trading) or at fair value through
OCI. Both categories are subsequently measured at fair value. Where
investments are held for trading purposes, unrealised gains and losses
for the period are included in the income statement within other gains
and losses.
The Group has elected to measure equity instruments, which are
neither held for trading nor are contingent consideration in a business
combination, at fair value through OCI as this better reflects the
strategic nature of the Group’s equity investments. For equity
instruments at fair value through OCI, changes in fair value, including
those related to foreign exchange, are recognised in other
comprehensive income and there is no subsequent reclassification of
fair value gains and losses to profit or loss.
Impairment of financial assets
A financial asset not measured at fair value through profit or loss is
assessed at each reporting date to determine whether there is any
objective evidence that it is impaired. The Group assesses on a
forward-looking basis the expected credit losses, defined as the
difference between the contractual cash flows and the cash flows
that are expected to be received, associated with its assets carried
at amortised cost and fair value through OCI. The impairment
methodology applied depends on whether there has been a
significant increase in credit risk. For trade receivables only, the
simplified approach permitted by IFRS 9 is applied, which requires
expected lifetime losses to be recognised from initial recognition of
the receivables.
Losses are recognised in the income statement. When a subsequent
event causes the amount of impairment loss to decrease, the
decrease in impairment loss is reversed through the income statement.
Impairment losses relating to equity instruments at fair value through
OCI are not reported separately from other changes in fair value.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when the right to receive cash flows
from the asset has expired, the right to receive cash flows has been
retained but an obligation to on-pay them in full without material delay
has been assumed or the right to receive cash flows has been
transferred together with substantially all the risks and rewards of
ownership.
300
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Other items
39. Accounting policies continued
Financial liabilities are derecognised when the associated obligation
has been discharged, cancelled or has expired.
Environmental restoration and decommissioning obligations
An obligation to incur environmental restoration, rehabilitation and
decommissioning costs arises when disturbance is caused by the
development or ongoing production of a mining asset. Costs for
restoration of site damage, rehabilitation and environmental costs are
estimated using either the work of external consultants or internal
experts. Such costs arising from the decommissioning of plant and
other site preparation work, discounted to their net present value, are
provided for and capitalised at the start of each project, as soon as the
obligation to incur such costs arises.
These costs are recognised in the income statement over the life of the
operation, through the depreciation of the asset and the unwinding of
the discount on the provision. Costs for restoration of subsequent site
damage which is created on an ongoing basis during production are
provided for at their net present values and recognised in the income
statement as ore extraction progresses.
The amount recognised as a provision represents management’s best
estimate of the consideration required to complete the restoration and
rehabilitation activity, the application of the relevant regulatory
framework and timing of expenditure. These estimates are inherently
uncertain and could materially change over time. Changes in the
measurement of a liability relating to the decommissioning of plant or
other site preparation work (that result from changes in the estimated
timing or amount of the cash flow or a change in the discount rate), are
added to or deducted from the cost of the related asset in the current
period. If a decrease in the liability exceeds the carrying amount of the
asset, the excess is recognised immediately in the income statement.
If the asset value is increased and there is an indication that the revised
carrying value is not recoverable, an impairment test is performed in
accordance with the accounting policy set out above.
For some South African operations, annual contributions are made to
dedicated environmental rehabilitation trusts to fund the estimated
cost of rehabilitation during and at the end of the life of the relevant
mine. The Group exercises full control of these trusts and therefore the
trusts are consolidated. The trusts’ assets are disclosed separately on
the balance sheet as non-current assets.
The trusts’ assets are measured based on the nature of the underlying
assets in accordance with accounting policies for similar assets.
Carbon credits
Carbon credits held for future sale as part of the Group’s trading
activities, to meet obligations in compliance markets and those
expected to be surrendered for the production of ‘green’ or ‘carbon
neutral’ products are accounted for under the Group’s inventory
accounting policy.
Carbon credits used for other purposes such as to satisfy the Group's
voluntary carbon emission targets or for capital appreciation over an
extended period are accounted for under the Group’s accounting
policy for intangible assets.
Where carbon credits are required to meet obligations in compliance
markets, provisions are recognised which reflect the cost of carbon
credits needed to settle the obligation relating to emissions recorded
to date.
E. Working capital
Inventories
Inventory and work in progress are measured at the lower of cost and
net realisable value, except for inventory held by commodity broker-
traders which is measured at fair value less costs to sell and are
disclosed separately to the extent that they are material. The
production cost of inventory includes an appropriate proportion of
depreciation and production overheads. Cost is determined on the
following basis:
– Raw materials and consumables are measured at cost on a first in,
first out (FIFO) basis or a weighted average cost basis
– Work in progress and finished products are measured at raw
material cost, labour cost and a proportion of production overhead
expenses
– Metal and coal stocks are included within finished products and are
measured at average cost.
At precious metals operations that produce ‘joint products’, cost is
allocated among precious metal products according to production
volumes.
Inventory is recognised as a current asset where it is expected to be
consumed in the next 12 months. Stockpiles are classified as non-
current where stockpiles are not expected to be processed in the next
12 months and there is no market to sell the product in its current state.
Metal leasing
Where the Group enters into metal leasing arrangements and metal is
received or provided to counterparties for a specific period of time in
return for a lease fee, consideration is given to the purpose of the
arrangement and whether control of the metal inventory has been
transferred.
Key considerations in this assessment include whether the lessee has
a practical ability to use the commodity and whether price risk has
been transferred.
Where control of the inventory has been transferred to the
counterparty, inventory is derecognised and a financial receivable is
recorded for the future receipt of metal. The financial receivable forms
part of trade and other receivables where the purpose of the
arrangement is to generate a trading margin and is otherwise
presented within financial asset investments.
Where the Group receives control of inventory as a result of a lease
arrangement, inventory is recognised and a payable is recorded to
reflect the future return obligation. This liability forms part of trade and
other payables where the purpose of the arrangement is to generate
a trading margin or manage physical delivery requirements and is
otherwise presented within financing liabilities.
Where control of the inventory is not transferred, the arrangement has
no impact on the value of inventory recorded.
Trade and other payables
The majority of the Group’s trade and other payables are measured at
amortised cost, using the effective interest method.
Payables related to the purchase of provisionally priced third party
PGM concentrate as part of the Group’s processing activities are
recognised at amortised cost on delivery. Any changes in pricing
between the delivery date and the date that prices are confirmed is
recognised as an embedded derivative. Changes in the fair value of
the embedded derivative is capitalised to inventory as it forms part of
the cost directly related to bringing the inventory to its present location
and condition.
Provisionally priced payables arising from the Group’s commodity
trading activities are recognised at fair value and subsequent fair value
movements form part of the net margin reported within revenue from
other sources.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
301
Other items
39. Accounting policies continued
F. Net debt and financial risk management
Cash and debt
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and on demand
deposits, together with short term, highly liquid investments that are
readily convertible to a known amount of cash and that are subject to
an insignificant risk of changes in value. Initial margin relating to the
Group’s commodity trading activities is presented within cash and
cash equivalents as the terms of the agreement allow the Group to
request closure of the open positions and return of the margin within
three days. Bank overdrafts are shown within short term borrowings in
current liabilities on the balance sheet.
Cash and cash equivalents in the cash flow statement are shown net
of overdrafts. Cash and cash equivalents are measured at amortised
cost except for money market fund investments which are held at fair
value as they are redeemed through the sale of units in the funds and
not solely through the recovery of principal and interest.
Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified and
accounted for as debt or equity according to the substance of the
contractual arrangements entered into.
Borrowings
Interest bearing borrowings and overdrafts are initially recognised at
fair value, net of directly attributable transaction costs. Finance
charges, including premiums payable on settlement or redemption
and direct issue costs, are recognised in the income statement using
the effective interest method. They are added to the carrying amount
of the instrument to the extent that they are not settled in the period in
which they arise.
Where interest or principal payments are linked to non-financial ESG
targets, the best estimate of the future payment is included in the
calculation of the effective interest rate at inception. If this best
estimate changes in subsequent periods, the carrying value of the
borrowing is adjusted to reflect the revised forecast, discounted using
the effective interest rate determined at inception and any resulting
gain or loss is recognised in the income statement.
Lease liabilities
Lease liabilities recognised on balance sheet are recognised within
borrowings, and with the exception of variable vessel leases are
recognised as part of net debt. On inception, the lease liability is
recognised as the present value of the expected future lease
payments, discounted using the Group’s incremental borrowing rate,
adjusted to reflect the length of the lease and country of location. For
a minority of leases where it is possible to determine the interest rate
implicit in the lease, it is used in place of the Group’s incremental
borrowing rate.
Lease payments included in the lease liability consist of each of the
following:
– Fixed payments, including in-substance fixed payments
– Payments whose variability is dependent only upon an index or
a rate, measured initially using the index or rate at the lease
commencement date. The lease liability is revalued when there is a
change in future lease payments arising from a change in an index
or rate
– Any amounts expected to be payable under a guarantee of residual
value
– The exercise price of a purchase option that the Group is reasonably
certain to exercise, the lease payments after the date of a renewal
option if the Group is reasonably certain to exercise its option to
renew the lease, and penalties for exiting a lease agreement unless
the Group is reasonably certain not to exit the lease early.
Variable leasing costs (other than those referred to above) and the
costs of non-lease components are not included in the lease liability
and are charged to operating costs in underlying EBITDA as they
are incurred.
The lease liability is measured at amortised cost using the effective
interest method. It is remeasured when there is a change to the
forecast lease payments. When the lease liability is remeasured, an
adjustment is made to the corresponding right-of-use asset.
Derivative financial instruments and hedge accounting
In order to hedge its exposure to foreign exchange, interest rate and
commodity price risk, the Group enters into forward, option and swap
contracts. Commodity based (own use) contracts that meet the scope
exemption in IFRS 9 are recognised in earnings when they are settled
by physical delivery. Commodity contracts which do not meet the own
use criteria are accounted for as derivatives.
All derivatives are held at fair value in the balance sheet within
‘Derivative financial assets’ or ‘Derivative financial liabilities’ except if
they are linked to settlement and delivery of an unquoted equity
instrument and the fair value cannot be measured reliably, in which
case they are carried at cost. A derivative cannot be measured reliably
where the range of reasonable fair value estimates is significant and
the probabilities of various estimates cannot be reasonably assessed.
Derivatives are classified as current or non-current depending on the
contractual maturity of the derivative.
Changes in the fair value of derivative financial instruments that are
designated and effective as hedges of future cash flows (cash flow
hedges) are recognised directly in equity. The gain or loss relating to
the ineffective portion is recognised immediately in the income
statement. If the cash flow hedge of a firm commitment or forecast
transaction results in the recognition of a non-financial asset or liability,
then, at the time the asset or liability is recognised, the associated
gains or losses on the derivative that had previously been recognised
in equity are included in the initial measurement of the asset or liability.
For hedges that do not result in the recognition of a non-financial asset
or liability, amounts deferred in equity are recognised in the income
statement in the same period in which the hedged item affects profit
or loss.
For an effective hedge of an exposure to changes in fair value, the
hedged item is adjusted for changes in fair value attributable to the risk
being hedged. The corresponding entry and gains or losses arising
from remeasuring the associated derivative are recognised in the
income statement within financing remeasurements.
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between
the hedged item and hedging instrument. The Group’s material
hedging instruments are interest rate swaps that have similar critical
terms to the related debt instruments, such as payment dates,
maturities and notional amount. As all critical terms matched during
the year, there was no material hedge ineffectiveness. The Group also
uses cross currency swaps to manage foreign exchange risk
associated with borrowings denominated in foreign currencies. These
are not designated in an accounting hedge as there is a natural offset
against foreign exchange movements on associated borrowings.
The Group has designated the embedded derivative component of
the royalty liability (see note 24) as a cash flow hedge of future
revenue cash flows from the Woodsmith project. In future periods,
assuming the hedge remains effective, fair value derivative gains and
losses as a result of changing forecast price and production forecasts
will be recorded within other comprehensive income and recycled to
revenue as the related revenue is recognised.
302
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
Other items
39. Accounting policies continued
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated, exercised, revoked, or no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss on the
hedging instrument recognised in equity is retained until the forecast
transaction occurs. If a hedge transaction is no longer expected to
occur, the net cumulative gain or loss previously recognised in equity is
recycled to the income statement for the period.
Changes in the fair value of any derivative instruments that are not
designated in a hedge relationship are recognised immediately in the
income statement.
Derivatives embedded in other financial instruments or non-financial
host contracts (other than financial assets in the scope of IFRS 9) are
treated as separate derivatives when their risks and characteristics are
not closely related to those of their host contracts and the host
contracts themselves are not carried at fair value with unrealised gains
or losses reported in the income statement.
Derivatives embedded in contracts which are financial assets in the
scope of IFRS 9 are not separated and the whole contract is
accounted for at either amortised cost or fair value.
Interest Rate Benchmark Reform: IFRS 9 Financial Instruments and
IFRS 7 Financial Instruments: Disclosures
The Group uses interest rate derivatives to swap the majority of its
Euro, Sterling and US dollar bonds from fixed interest rates to EURIBOR,
SONIA and SOFR rates respectively. Any non-USD interest rate
derivatives are swapped to SOFR using cross currency interest rate
swaps which are not designated into accounting hedges. The interest
rate derivatives are designated into accounting fair value hedges.
The Group transitioned all remaining trades referenced to the USD
LIBOR rate to incorporate alternative risk-free rates with the principal
benchmarks used now being EURIBOR, SOFR and SONIA. The Group
does not hold any material lease agreements that contain references
to existing benchmarks and as a result there is no material impact on
the lease liabilities or right-of-use assets at 31 December 2023.
G. Taxation
Tax
The tax expense includes the current tax and deferred tax charge
recognised in the income statement.
Current tax payable is based on taxable profit for the year. Taxable
profit differs from profit before tax as reported in the income statement
because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are not
taxable or deductible. The Group’s liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by
the reporting date.
Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes.
Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the
extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised. Probable
taxable profits are based on evidence of historical profitability and
taxable profit forecasts limited by reference to the criteria set out in
IAS 12 Income Taxes. Such assets and liabilities are not recognised if
the temporary differences arise from the initial recognition of goodwill
or of an asset or liability in a transaction (other than in a business
combination) that affects neither taxable profit nor accounting profit,
and does not give rise to equal taxable and deductible temporary
differences.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, joint arrangements
and associates except where the Group is able to control the reversal
of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
reporting date and is adjusted to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the
asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in
the period when the liability is settled or the asset is realised, based on
the laws that have been enacted or substantively enacted by the
reporting date. Deferred tax is charged or credited to the income
statement, except when it relates to items charged or credited directly
to equity, in which case the deferred tax is also taken directly to equity.
Deferred tax assets and liabilities are offset when they relate to income
taxes levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis with that
taxation authority.
H. Employees
Retirement benefits
The Group’s accounting policy involves the use of ‘best estimate’
assumptions in calculating the schemes’ valuations in accordance with
the accounting standard. This valuation methodology differs from that
applied in calculating the funding valuations, which require the use of
‘prudent’ assumptions, such as lower discount rates, higher assumed
rates of future inflation expectations and greater improvements in life
expectancy, leading to a higher value placed on the liabilities. The
funding valuations are carried out every three years, using the
projected unit credit method, by independent qualified actuaries and
are used to determine the money that must be put into the funded
schemes. The Group operates both defined benefit and defined
contribution pension plans for its employees as well as post
employment medical plans. For defined contribution plans the amount
recognised in the income statement is the contributions paid or
payable during the year.
For defined benefit pension and post employment medical plans, full
actuarial valuations are carried out at least every three years using the
projected unit credit method and updates are performed for each
financial year end. The average discount rate for the plans’ liabilities is
based on AA-rated corporate bonds of a suitable duration and
currency or, where there is no deep market for such bonds, is based on
government bonds. Pension plan assets are measured using year end
market values.
Remeasurements comprising actuarial gains and losses, movements
in asset surplus restrictions and the return on scheme assets (excluding
interest income) are recognised immediately in the statement of
comprehensive income and are not recycled to the income statement.
Any increase in the present value of plan liabilities expected to arise
from employee service during the year is charged to operating profit.
The net interest income or cost on the net defined benefit asset or
liability is included in investment income or interest expense
respectively.
The retirement benefit obligation recognised on the balance sheet
represents the present value of the deficit or surplus of the defined
benefit plans. Any recognised surplus is limited to the present value of
available refunds or reductions in future contributions to the plan.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements
303
Investments in associates and joint ventures are accounted for using
the equity method of accounting except when classified as held for
sale. The Group’s share of associates’ and joint ventures’ net income is
based on their most recent audited financial statements or unaudited
interim statements drawn up to the Group’s balance sheet date.
The total carrying values of investments in associates and joint
ventures represent the cost of each investment including the carrying
value of goodwill, the share of post-acquisition retained earnings, any
other movements in reserves and any long term debt interests which in
substance form part of the Group’s net investment, less any cumulative
impairments. The carrying values of associates and joint ventures are
reviewed on a regular basis and if there is objective evidence that an
impairment in value has occurred as a result of one or more events
during the period, the investment is impaired. Investments which have
been previously impaired are regularly reviewed for indicators of
impairment reversal.
The Group’s share of an associate’s or joint venture’s losses in excess
of its interest in that associate or joint venture is not recognised unless
the Group has an obligation to fund such losses. Unrealised gains
arising from transactions with associates and joint ventures are
eliminated against the investment to the extent of the Group’s interest
in the investee. Unrealised losses are eliminated in the same way, but
only to the extent that there is no evidence of impairment.
Non-current assets and disposal groups held for sale
Non-current assets and disposal groups are classified as held for sale
if their carrying amount will be recovered through a sale transaction
rather than through continuing use. This condition is met only when a
sale is highly probable within one year from the date of classification,
management is committed to the sale and the asset or disposal group
is available for immediate sale in its present condition.
Non-current assets and disposal groups are classified as held for sale
from the date these conditions are met and are measured at the lower
of carrying amount and fair value less costs to sell. Any resulting
impairment loss is recognised in the income statement.
On classification as held for sale the assets are no longer depreciated.
Comparative amounts are not adjusted.
Black Economic Empowerment (BEE) transactions
Where the Group disposes of a portion of a South African based
subsidiary or operation to a BEE company at a discount to fair value,
the transaction is considered to be a share-based payment (in line
with the principle contained in South Africa interpretation AC 503
Accounting for Black Economic Empowerment (BEE) Transactions).
The discount provided or value given is calculated in accordance with
IFRS 2 Share-based Payments and the cost, representing the fair value
of the BEE credentials obtained by the subsidiary, is recorded in the
income statement.
Other items
39. Accounting policies continued
Share-based payments
The Group makes equity settled share-based payments to certain
employees, which are measured at fair value at the date of grant and
expensed on a straight-line basis over the vesting period, based on the
Group’s estimate of shares that will eventually vest. For those share
schemes with market related vesting conditions, the fair value is
determined using the Monte Carlo model at the grant date. The fair
value of share options issued with non-market vesting conditions has
been calculated using the Black Scholes model.
For all other share awards, the fair value is determined by reference to
the market value of the shares at the grant date. For all share schemes
with non-market vesting conditions, the likelihood of vesting has been
taken into account when determining the relevant charge. Vesting
assumptions are reviewed during each reporting period to ensure they
reflect current expectations.
I. Group structure
Associates and joint arrangements
Associates are investments over which the Group has significant
influence, which is the power to participate in the financial and
operating policy decisions of the investee, but without the ability to
exercise control or joint control. Typically the Group owns between
20% and 50% of the voting equity of its associates.
Joint arrangements are arrangements in which the Group shares joint
control with one or more parties. Joint control is the contractually
agreed sharing of control of an arrangement, and exists only when
decisions about the activities that significantly affect the
arrangement’s returns require the unanimous consent of the parties
sharing control.
Judgement is required in determining this classification through an
evaluation of the facts and circumstances arising from each individual
arrangement. Joint arrangements are classified as either joint
operations or joint ventures based on the rights and obligations of the
parties to the arrangement. In joint operations, the parties have rights
to the assets and obligations for the liabilities relating to the
arrangement, whereas in joint ventures, the parties have rights to the
net assets of the arrangement.
Joint arrangements that are not structured through a separate vehicle
are always joint operations. Joint arrangements that are structured
through a separate vehicle may be either joint operations or joint
ventures depending on the substance of the arrangement. In these
cases, consideration is given to the legal form of the separate vehicle,
the terms of the contractual arrangement and, where relevant, other
facts and circumstances. When the activities of an arrangement are
primarily designed for the provision of output to the parties, and the
parties are substantially the only source of cash flows contributing
to the continuity of the operations of the arrangement, this indicates
that the parties to the arrangements have rights to the assets and
obligations for the liabilities.
Certain joint arrangements that are structured through separate
vehicles including Collahuasi, Debswana and Namdeb are accounted
for as joint operations. These arrangements are primarily designed for
the provision of output to the parties sharing joint control, indicating
that the parties have rights to substantially all the economic benefits of
the assets. The liabilities of the arrangements are in substance satisfied
by cash flows received from the parties; this dependence indicates
that the parties effectively have obligations for the liabilities. It is
primarily these facts and circumstances that give rise to the
classification as joint operations.
The Group accounts for joint operations by recognising the assets,
liabilities, revenue and expenses for which it has rights or obligations,
including its share of such items held or incurred jointly.
304
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Financial statements of the Parent Company
Balance sheet of the Parent Company, Anglo American plc, as at 31 December 2023
US$ million
Fixed assets
Investment in subsidiaries
Financial asset investments
Current assets
Cash at bank and in hand
Creditors due within one year
Amounts owed to Group undertakings
Net current liabilities
Total assets less current liabilities
Net assets
Capital and reserves
Called-up share capital
Share premium account
Capital redemption reserve
Other reserves
Retained earnings
Total shareholders’ funds
Note
2023
2022
1
33,113
32,971
—
7
33,113
32,978
—
—
2
2
(2,239)
(2,239)
(2,239)
30,874
30,874
(1,874)
(1,874)
(1,872)
31,106
31,106
2
2
2
2
2
734
2,558
153
1,955
25,474
30,874
734
2,558
153
1,955
25,706
31,106
Statement of changes in equity of the Parent Company
US$ million
At 1 January 2022
Profit for the financial year
Dividends(1)
Equity settled share-based payments schemes
Treasury shares purchased
Shares cancelled during the year
Capital contribution to Group undertakings
Other
At 31 December 2022
Profit for the financial year
Dividends(1)
Equity settled share-based payments schemes
Treasury shares purchased
Capital contribution to Group undertakings
Other
At 31 December 2023
Called-up
share capital
737
Share
premium
account
2,558
Capital
redemption
reserve
150
Other
reserves
1,955
—
—
—
—
(3)
—
—
—
—
—
—
—
—
—
—
—
—
—
3
—
—
—
—
—
—
—
—
—
734
2,558
153
1,955
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Retained
earnings
26,563
1,921
Total
31,963
1,921
(2,661)
(2,661)
1
1
(308)
(308)
—
187
3
—
187
3
25,706
1,061
31,106
1,061
(1,213)
(1,213)
2
(254)
168
4
2
(254)
168
4
734
2,558
153
1,955
25,474
30,874
(1) Dividends relate only to shareholders on the United Kingdom principal register excluding dividends waived by Wealth Nominees Limited as nominees for Estera Trust (Jersey) Limited, the
trustee for the Anglo American employee share scheme. Dividends paid to shareholders on the Johannesburg branch register are distributed by a South African subsidiary in accordance with
the terms of the Dividend Access Share Provisions of Anglo American plc’s Articles of Association. The directors are proposing a final dividend in respect of the year ended 31 December 2023
of 41 US cents per share (see note 6 to the Consolidated financial statements). The profit after tax for the year of the Parent Company amounted to $1,061 million (2022: $1,921 million).
The financial statements of Anglo American plc, registered number 03564138, were approved by the Board of directors on 21 February 2024
and signed on its behalf by:
Duncan Wanblad
Chief Executive
John Heasley
Finance Director
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements of the Parent Company
305
1.
Investment in subsidiaries
US$ million
Cost
At 1 January
Capital contributions(1)
Additions
At 31 December
Provisions for impairment
At 1 January
Impairment reversal
At 31 December
Net book value
2023
2022
32,971
142
—
33,113
31,804
167
1,000
32,971
—
—
—
(8)
8
—
33,113
32,971
(1) This amount represents the Group share-based payment charge and is net of $26 million (2022: $20 million) of intra-group recharges.
Further information about subsidiaries is provided in note 36 to the Consolidated financial statements.
2. Accounting policies: Anglo American plc (the Company)
The Parent Company balance sheet and related notes have been prepared under the historical cost convention and in accordance with
Financial Reporting Standard 100 Application of Financial Reporting Requirements (FRS 100) and Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101).
The Parent Company financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and The Large
and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410).
A summary of the material accounting policies is set out below.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires
management to exercise judgement in applying the Parent Company’s accounting policies.
As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Parent Company is not presented as
part of these financial statements.
The Parent Company has taken advantage of the following disclosure exemptions under FRS 101:
– the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based Payments
– the requirements of IFRS 7 Financial Instruments: Disclosures
– the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
– the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of paragraph
79(a)(iv) of IAS 1
– the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial
Statements
– the requirements of IAS 7 Statement of Cash Flows
– the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
– the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures
– the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of
a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Material accounting policies
Investments
Investments represent equity holdings in subsidiaries and are measured at cost less accumulated impairment.
Financial instruments
The Parent Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial
instruments are derecognised when they are discharged or when the contractual terms expire.
Dividends
Interim equity dividends are recognised when declared. Final equity dividends are recognised when approved by the shareholders at an Annual
General Meeting.
Share-based payments
The Parent Company has applied the requirements of IFRS 2 Share-based Payments.
306
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Notes to the financial statements of the Parent Company
2. Accounting policies: Anglo American plc (the Company) continued
The Parent Company makes equity settled share-based payments to the directors, which are measured at fair value at the date of grant and
expensed on a straight-line basis over the vesting period, based on the Parent Company’s estimate of shares that will eventually vest. For those
share schemes with market related vesting conditions, the fair value is determined using the Monte Carlo model at the grant date. The fair value of
share options issued with non-market vesting conditions has been calculated using the Black Scholes model. For all other share awards, the fair
value is determined by reference to the market value of the shares at the grant date. For all share schemes with non-market vesting conditions,
the likelihood of vesting has been taken into account when determining the relevant charge. Vesting assumptions are reviewed during each
reporting period to ensure they reflect current expectations.
The Parent Company also makes equity settled share-based payments to certain employees of certain subsidiary undertakings. Equity settled
share-based payments that are made to employees of the Parent Company’s subsidiaries are treated as increases in equity over the vesting
period of the award, with a corresponding increase in the Parent Company’s investments in subsidiaries, based on an estimate of the number of
shares that will eventually vest.
Any payments received from subsidiaries are applied to reduce the related increases in Investments in subsidiaries.
Insurance contracts
IFRS 17 Insurance Contracts was issued in May 2017 and became effective for the Parent Company from 1 January 2023.
Adoption of the new standard principally impacts issued financial guarantee contracts, which have previously been asserted to be insurance
contacts under IFRS 4 Insurance Contracts. The Parent Company has elected to account for the majority of such arrangements under IFRS 9
Financial Instruments. The additional liabilities under these arrangements are deemed to be of an immaterial value.
Taxation
Current and deferred tax is recognised in the statement of comprehensive income of the Parent Company, except that a charge attributable to an
item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other
comprehensive income or directly in equity respectively.
The only income of the Parent Company is dividend income from subsidiaries. This income is non-taxable and there is no tax charge for the year
(2022: nil).
Significant accounting judgements and estimates
In the course of preparing financial statements, management necessarily makes judgements and estimates that can have a significant impact on
the financial statements. The critical judgements that affect the results for the year ended 31 December 2023 are set out below.
Impairment of investments in subsidiaries
Judgement is required to determine whether there are indicators that the Company’s equity investments in subsidiaries may be impaired. When
making this judgement, consideration is given to various factors, including the market capitalisation of the Group, the net asset value of the
Company’s direct subsidiaries and the recoverable amount of operating assets based on the Group’s impairment and impairment reversal
assessments (see note 7 and note 8 for further information).
If an impairment indicator were identified, estimation would be required to determine the recoverable amount of the investments. Recoverable
amount is the higher of fair value less costs of disposal and value in use.
If the recoverable amount of an investment is estimated to be less than its carrying amount, the carrying amount of the investment is reduced to its
recoverable amount and an impairment loss is recognised in the statement of comprehensive income.
3. Fees for non-audit services
Fees payable to PwC for non-audit services to the Parent Company are not required to be disclosed because they are included within the
consolidated disclosure in note 38 to the Consolidated financial statements.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
307
Summary by operation
This section includes certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including
definitions, please refer to page 318.
Marketing activities are allocated to the underlying operation to which they relate.
US$ million (unless otherwise stated)
Sales
volume
Realised
price
Unit cost
Group
revenue(1)
Underlying
EBITDA
Underlying
EBIT
Underlying
earnings
Capital
expenditure
2023
Copper
Copper Chile
Los Bronces(5)
Collahuasi(6)
Other operations(7)
Copper Peru (Quellaveco)(8)
Nickel
Platinum Group Metals
Mogalakwena
Amandelbult
Processing and trading(13)
Other(14)
De Beers
Mining
Botswana
Namibia
South Africa
Canada
Trading
Other(19)
Iron Ore
Kumba Iron Ore(23)
Iron Ore Brazil (Minas-Rio)
Steelmaking Coal
Manganese (Samancor)
Crop Nutrients
Woodsmith
Other(27)
Corporate and other(28)
Exploration
Corporate activities and
unallocated costs
See page 308 for footnotes.
kt
843 (2)
505 (2)
c/lb
384 (3)
384 (3)
217
248
40
339
kt
40
koz
n/a
n/a
n/a
384
$/lb
7.71
$/PGM oz
3,925 (10)
1,011 (10)
1,657 (11)
1,718 (11)
$/PGM oz
968
884
(12)
(12)
(12)
668 (10)
1,934 (11)
1,189
1,352 (10)
894
’000 cts
24,682 (15)
n/a
1,587
n/a
973
$/ct
147 (16)
$/ct
71 (17)
c/lb
166 (4)
200
304 (4)
113 (4)
n/a
7,360
4,615
1,724
2,197
694
2,451
1,099
3,233
1,452
114
893
(94)
1,372
1,124
(34)
(137)
111 (4)
2,745
1,781
1,558
c/lb
541 (9)
653
133
62
6,734
1,740
1,294
2,247
1,453
1,209
778
323
(138)
246
855
601
276
(173)
151
n/a
n/a
760
n/a
578
65
448
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Mt
61.5 (20)
37.2 (20)
24.3
(20)
Mt
14.9 (24)
Mt
3.7
n/a
n/a
n/a
n/a
n/a
n/a
n/a
168 (16)
515 (16)
109 (16)
85
(16)
n/a
n/a
$/t
114 (21)
117 (21)
110 (21)
$/t
261 (25)
$/t
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
$/t
38
41
33
$/t
121
$/t
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
31 (17)
246 (17)
97 (17)
48 (17)
4,267 (18)
72
(252)
(314)
n/a
n/a
n/a
n/a
n/a
n/a
412
159
26
35
(104)
(456)
349
123
5
(6)
(111)
(612)
n/a
n/a
n/a
n/a
n/a
n/a
(22)
(22)
(22)
8,000
4,680
3,320
4,013
2,415
1,598
3,549
2,136
1,413
1,792
772
1,020
(26)
4,153
1,320
822
145
(61)
n/a
(61)
(403)
(107)
684
66
(75)
n/a
(75)
(833)
(97)
231
(60)
n/a
(60)
(193)
(107)
670
225
n/a
225
440
n/a
440
(86)
(296)
(736)
32,502
9,958
7,168
2,932
1,684
1,268
552
678
38
416
91
1,108
519
75
n/a
514
623
74
35
403
63
2
46
909
538
371
619
—
641
641
—
59
3
56
5,734
308
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Summary by operation
US$ million (unless otherwise stated)
Sales
volume
Realised
price
Unit
cost
Group
revenue(1)
Underlying
EBITDA
Underlying
EBIT
Underlying
earnings
Capital
expenditure
2022
(4)
(4)
c/lb
154
157
214
87
n/a
136
c/lb
513 (9)
(4)
(4)
5,599
4,991
2,185
2,180
626
608
2,182
1,952
533
1,512
(93)
230
1,595
1,387
306
1,259
(178)
208
858
381
317
$/PGM oz
937 (12)
826 (12)
1,127 (12)
n/a
928
$/ct
59
(17)
10,096
2,466
2,010
3,350
2,270
4,417
1,548
1,036
800
1,033
6,622
(18)
1,417
4,052
1,380
982
768
922
994
537
149
315
(68)
582
(521)
2,962
1,894
1,068
n/a
n/a
n/a
n/a
n/a
n/a
7,534
4,580
2,954
614
181
413
(10)
589
(370)
3,455
2,211
1,244
Copper
Copper Chile
Los Bronces(5)
Collahuasi(6)
Other operations(7)
Copper Peru (Quellaveco)(8)
Nickel
Platinum Group Metals
Mogalakwena
Amandelbult
Processing and trading(13)
Other(14)
De Beers
Mining
Botswana
Namibia
South Africa
Canada
Trading
Other(19)
Iron Ore
Kumba Iron Ore(23)
Iron Ore Brazil (Minas-Rio)
Steelmaking Coal
Manganese (Samancor)
Crop Nutrients
Woodsmith
Other(27)
Corporate and other(28)
Exploration
Corporate activities and
unallocated costs
(2)
(2)
kt
641
563
268
256
39
78
kt
39
koz
3,861 (10)
1,010 (10)
700 (10)
1,309 (10)
842
’000 cts
30,355 (15)
n/a
n/a
n/a
n/a
n/a
n/a
Mt
58.0
36.7 (20)
21.3 (20)
Mt
14.7 (24)
Mt
3.6
(20)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
c/lb
385 (3)
386 (3)
n/a
n/a
n/a
379
$/lb
10.26
$/PGM oz
2,551 (11)
2,451 (11)
2,883 (11)
n/a
2,615
$/ct
197 (16)
193 (16)
599 (16)
134 (16)
100 (16)
n/a
n/a
$/t
111
113 (21)
108
$/t
304
$/t
n/a
(21)
(21)
(25)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(17)
(17)
(17)
(17)
(22)
(22)
(22)
(26)
32
293
42
50
n/a
n/a
$/t
38
40
35
$/t
107
$/t
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
5,034
2,749
2,369
1,640
378
312
148
840
254
n/a
254
554
n/a
554
(44)
n/a
(44)
(440)
(155)
(45)
n/a
(45)
(593)
(162)
(285)
(431)
37,391
14,495
11,963
760
n/a
n/a
865
n/a
87
259
2,266
n/a
n/a
n/a
n/a
552
n/a
n/a
n/a
n/a
n/a
n/a
1,337
653
684
(51)
n/a
(51)
(875)
(148)
(727)
6,036
2,031
1,217
725
419
73
814
79
1,017
394
74
n/a
549
593
70
34
378
48
4
59
834
674
160
648
—
522
522
—
14
2
12
5,738
(1) Group revenue is shown after deduction of treatment and refining charges (TC/RCs).
(2) Excludes 444 kt third-party sales (2022: 422 kt).
(3) Represents realised copper price and excludes impact of third-party sales.
(4) C1 unit cost includes by-product credits.
(5) Figures on a 100% basis (Group’s share: 50.1%).
(6) 44% share of Collahuasi sales and financials.
(7) Other operations form part of the results of Copper Chile. Production and sales are from El
Soldado mine (figures on a 100% basis, Group’s share 50.1%). Financials include El
Soldado and Chagres (figures on a 100% basis, Group’s share 50.1%), third-party trading,
projects and corporate costs.
(8) Figures on a 100% basis (Group’s share: 60%). Included in capex is the project capex
which represents the Group’s share after deducting direct funding from non-controlling
interests. The Group’s share of project capex was $138 million (on a 100% basis,
$230 million). In 2022, the Group’s share was $633 million (on a 100% basis,
$1,055 million).
(9) C1 unit cost.
(10) Sales volumes exclude tolling and third-party trading activities. PGM volumes consist of 5E
metals and gold.
(16) Pricing for the mining businesses is based on 100% selling value post-aggregation of
goods. Realised price includes the price impact of the sale of non-equity product and, as a
result, is not directly comparable to the unit cost.
(17) Unit cost is based on consolidated production and operating costs, excluding depreciation
and operating special items, divided by carats recovered.
(18) Includes rough diamond sales of $3.6 billion (2022: $6.0 billion).
(19) Other includes Element Six, brands and consumer markets, and corporate.
(20) Sales volumes are reported as wet metric tonnes. Product is shipped with c.1.6% moisture
from Kumba and c.9% moisture from Minas-Rio.
(21) Prices for Kumba Iron Ore are the average realised export basket price (FOB Saldanha)
(wet basis). Prices for Minas-Rio are the average realised export basket price (FOB Brazil)
(wet basis). Prices for total iron ore are a blended average.
(22) Unit costs are reported on an FOB wet basis. Unit costs for total iron ore are a blended
average.
(23) Sales volumes and realised price could differ to Kumba’s stand-alone reported results due
to sales to other Group companies.
(24) Sales volumes exclude thermal coal sales of 1.7 Mt (2022: 1.7 Mt). Includes sales relating to
third-party product purchased and processed by Anglo American.
(11) Average US$ realised basket price, based on sold ounces (own mined and purchased
(25) Realised price is the weighted average hard coking coal and PCI export sales price
concentrate). Excludes the impact of the sale of refined metal purchased from third parties.
achieved at managed operations.
(12) Total cash operating costs (includes on-mine, smelting and refining costs only) per own
mined PGM ounce of production.
(13) Includes purchase of concentrate from joint operations and third parties for processing into
refined metals, tolling and third-party trading activities, with the exception of production
and sales volumes which exclude tolling and trading. The disposal of our 50% interest in
Kroondal on 1 November 2023, resulted in Kroondal moving to a 100% third-party POC
arrangement, until it transitions to a toll arrangement expected at the end of H1 2024.
(14) Includes Unki, Mototolo, our 50% share of Modikwa (joint operation), and our 50% share of
Kroondal until the disposal of our interest in the joint operation on 1 November 2023.
(15) Total sales volumes on a 100% basis were 27.4 million carats (2022: 33.7 million carats).
Total sales volumes (100%) include De Beers Group’s joint arrangement partners’ 50%
proportionate share of sales to entities outside De Beers Group from Diamond Trading
Company Botswana and Namibia Diamond Trading Company.
(26) FOB unit cost comprises managed operations and excludes royalties.
(27) Other comprises projects and corporate costs as well as the share in associate results from
The Cibra Group, a fertiliser distributor based in Brazil.
(28) Revenue within Corporate activities and unallocated costs primarily relates to third-party
shipping activities, as well as the Marketing business’s energy solutions activities.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
309
Key financial data
This section includes certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including
definitions, please refer to page 318.
US$ million (unless otherwise stated)
Income statement measures
Group revenue(1)
Underlying EBIT
Underlying EBITDA
Revenue(1)
Net finance costs (before special
items and remeasurements)
Profit/(loss) before tax
Profit/(loss) for the financial year
Profit/(loss) attributable to equity
shareholders of the Company
Underlying earnings
Balance sheet measures
Capital employed(2)
Net assets(2)
Non-controlling interests(2)
Equity attributable to equity
shareholders of the Company(2)
Cash flow measures
2023
2022
(restated)
2021
2020
(restated)
2019
(restated)
2018
2017
2016
2015
2014
32,502
37,391
43,258
26,883
31,825
30,196
28,650
23,142
23,003
30,988
7,168
11,963
17,790
7,050
7,010
9,958
14,495
20,634
9,802
10,006
6,377
9,161
6,247
8,823
3,766
6,075
2,223
4,854
4,933
7,832
30,652
35,118
41,554
25,447
29,870
27,610
26,243
21,378
20,455
27,073
(556)
3,595
1,344
(342)
9,480
6,024
(277)
(775)
(420)
17,629
5,464
6,146
11,699
3,328
4,582
283
2,932
4,514
6,036
8,562
2,089
3,547
8,925
3,135
3,468
(380)
6,189
4,373
(824)
3,549
3,237
(473)
5,505
4,059
(893)
3,166
3,272
(209)
(458)
2,624
(5,454)
(256)
(259)
1,926
(5,842)
(1,524)
(332)
218
(989)
1,594
(5,624)
(2,513)
2,210
827
2,217
42,427
40,541
38,312
37,970
35,576
32,269
32,813
31,904
32,842
43,782
31,617
33,953
34,770
32,766
31,385
29,832
28,882
24,325
21,342
32,177
(6,560)
(6,635)
(6,945)
(6,942)
(6,590)
(6,234)
(5,910)
(5,309)
(4,773)
(5,760)
25,057
27,318
27,825
25,824
24,795
23,598
22,972
19,016
16,569
26,417
Non-controlling interests
(1,061)
(1,510)
(3,137)
(1,239)
(1,035)
Cash flows from operations
8,115
11,889
20,588
7,998
9,260
7,782
8,375
5,838
4,240
6,949
Capital expenditure
Net debt(3)
Metrics and ratios
Underlying earnings per share (US$)
Earnings per share (US$)
Ordinary dividend per share
(US cents)
Ordinary dividend cover (based on
underlying earnings per share)
Underlying EBIT margin
Underlying EBIT interest cover(4)
Underlying effective tax rate
Gearing (net debt to total capital)(5)
(5,734)
(5,738)
(5,193)
(4,125)
(3,840)
(2,818)
(2,150)
(2,387)
(4,177)
(6,018)
(10,615)
(6,918)
(3,842)
(5,530)
(4,535)
(2,848)
(4,501)
(8,487)
(12,901)
(12,871)
2.42
0.23
4.97
3.72
7.22
6.93
2.53
1.69
2.75
2.81
2.55
2.80
2.57
2.48
1.72
1.24
0.64
(4.36)
1.73
(1.96)
96
198
289
100
109
100
102
2.5
2.5
2.5
2.5
2.5
2.6
2.5
—
—
22.1%
32.0%
41.1%
26.2%
22.0%
21.1%
21.8%
16.3%
15.5
31.8
45.2
11.2
18.0
19.9
16.5
16.7
32
85
2.0
9.7%
10.1
2.0
15.9%
30.1
38.5%
34.0%
31.4%
31.2%
30.8%
31.3%
29.7%
24.6%
31.0%
29.8%
25%
17%
10%
14%
13%
9%
13%
26%
38%
29%
(1) Third-party trading amounts restated from a gross to a net presentation in 2020. Amounts prior to 2020 have not been restated.
(2) 2022 figures are restated for the adoption of the amendment to IAS 12, see note 39A.
(3) The Group amended the definition of net debt in 2021 to exclude variable vessel leases. The amounts for 2020 and 2019 were therefore restated from $5,575 million to $5,530 million in 2020
and from $4,626 million to $4,535 million in 2019. Amounts prior to 2019 have not been restated.
(4) Underlying EBIT interest cover is underlying EBIT divided by net finance costs, excluding net foreign exchange gains and losses, unwinding of discount relating to provisions and other liabilities,
financing special items and remeasurements, and including the Group’s attributable share of associates’ and joint ventures’ net finance costs.
(5) Net debt to total capital is calculated as net debt divided by total capital (being ‘Net assets’ as shown in the Consolidated balance sheet excluding net debt and variable vessel leases). 2020
restated to exclude variable vessel leases. Amounts prior to 2020 have not been restated.
310
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Exchange rates and commodity prices
US$ exchange rates
Year end spot rates
South African rand
Brazilian real
Sterling
Australian dollar
Euro
Chilean peso
Botswanan pula
Peruvian sol
Average rates for the year
South African rand
Brazilian real
Sterling
Australian dollar
Euro
Chilean peso
Botswanan pula
Peruvian sol
Commodity prices
Year end spot prices
Copper(1)
Nickel(1)
Platinum(2)
Palladium(2)
Rhodium(3)
Iron ore (62% Fe CFR)(4)
Iron ore (65% Fe Fines CFR)(5)
Hard coking coal (FOB Australia)(4)
PCI (FOB Australia)(4)
Manganese ore (44% CIF China)(5)
Average market prices for the year
Copper(1)
Nickel(1)
Platinum(2)
Palladium(2)
Rhodium(3)
Iron ore (62% Fe CFR)(4)
Iron ore (65% Fe Fines CFR)(5)
Hard coking coal (FOB Australia)(4)
PCI (FOB Australia)(4)
Manganese ore (44% CIF China)(5)
(1) Source: London Metal Exchange (LME).
(2) Source: London Platinum and Palladium Market (LPPM).
(3) Source: Johnson Matthey.
(4) Source: Platts.
(5) Source: Metal Bulletin.
2023
2022
18.52
16.94
4.86
0.79
1.47
0.90
885
13.43
3.70
5.28
0.83
1.47
0.93
859
12.76
3.82
18.46
16.37
4.99
0.80
1.51
0.92
840
13.35
3.74
5.16
0.81
1.44
0.95
874
12.34
3.83
2023
2022
384
7.39
1,006
1,119
4,425
141
152
324
176
4.17
385
9.74
965
1,336
6,611
120
132
296
219
4.75
380
13.80
1,065
1,788
12,250
117
132
295
285
5.13
399
11.61
961
2,111
15,465
120
139
364
331
6.06
US cents/lb
US$/lb
US$/oz
US$/oz
US$/oz
US$/tonne
US$/tonne
US$/tonne
US$/tonne
US$/dmtu
US cents/lb
US$/lb
US$/oz
US$/oz
US$/oz
US$/tonne
US$/tonne
US$/tonne
US$/tonne
US$/dmtu
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
311
Ore Reserves and Mineral Resources
as at 31 December 2023
The Ore Reserve and Mineral Resource estimates presented in this
report were prepared in accordance with the Anglo American Group
Ore Reserves and Mineral Resources Reporting Policy. This policy
stipulates that the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code), 2012
edition, be used as a minimum standard. This section should be read
in conjunction with the Ore Reserves and Mineral Resources
Report 2023.
Mineral Resource classification defines the confidence associated with
different parts of the Mineral Resource. The confidence that is assigned
refers collectively to the reliability of estimates of grade and tonnage.
This includes considering the quality of the underlying sample data,
the demonstrated continuity of the geology and the likely precision of
grade and density estimates that collectively affect confidence in the
Mineral Resource. Most businesses have developed commodity-
specific approaches to the classification of their Mineral Resources.
Some Anglo American subsidiaries have a primary listing in South
Africa where public reporting is carried out in accordance with the
South African Code for Reporting of Exploration Results, Mineral
Resources and Mineral Reserves (the SAMREC Code), 2016 edition.
The SAMREC Code is similar to the JORC Code and the Ore Reserve
and Mineral Resource terminology appearing in this section follows the
definitions in both the JORC (2012) and SAMREC (2016) Codes. Ore
Reserves in the context of this report have the same meaning as
‘Mineral Reserves’ as defined by the SAMREC Code and the CIM
(Canadian Institute of Mining Metallurgy and Petroleum) Definition
Standards on Mineral Resources and Mineral Reserves.
The Anglo American Mineral Resources and Reserves (MinRes) team is
responsible for ensuring the implementation of the Ore Reserve and
Mineral Resource Reporting Policy and associated requirements
document by all Anglo American businesses. This team provides
technical assurance, through the Technical & Operations director, to
the Anglo American Audit Committee and the Anglo American Board
of directors on the integrity of the published estimates. MinRes’s role is
to plan and manage the annual reporting process, to validate the
information supplied by the businesses and from that, compile the Ore
Reserves and Mineral Resources Report. Anglo American has well-
established governance processes and internal controls to support the
generation and publication of Ore Reserves and Mineral Resources,
including a series of peer reviews.
The information on Ore Reserves and Mineral Resources was prepared
by or under the supervision of Competent Persons (CPs) as defined in
the JORC or SAMREC Codes. All CPs have sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking. All the
CPs consent to the inclusion of the information in this report, in the form
and context in which it appears. The names of the CPs, along with
their Recognised Professional Organisation (RPO) affiliation and years
of relevant experience, are listed in the Ore Reserves and Mineral
Resources Report 2023.
The Anglo American Group of companies is subject to reviews aimed
at providing assurance in respect of Ore Reserve and Mineral Resource
estimates. The reviews are conducted by suitably qualified CPs from
within the Group or independent consultants. The frequency and depth
of review are a function of the perceived risks and/or uncertainties
associated with a particular Ore Reserve and Mineral Resource. The
overall value of the entity and time that has elapsed since an
independent third-party review are also considered. Those operations/
projects subjected to independent third-party reviews during the year
are indicated in explanatory notes to the tables in the Ore Reserves
and Mineral Resources Report 2023.
Both the JORC and SAMREC Codes require due consideration of
reasonable prospects for eventual economic extraction for Mineral
Resource definition. The estimation of Ore Reserves and Mineral
Resources is based on long term price assumptions, which include long
range commodity price forecasts that are prepared by in-house
specialists using projections of future supply and demand and long
term economic outlooks. Ore Reserves are dynamic and likely to be
affected by fluctuations in the prices of commodities, uncertainties in
production costs, processing costs and other mining, infrastructure,
legal, environmental, social and governmental factors which may
impact the financial condition and prospects of the Group. Mineral
Resource estimates also change in time and tend to be mostly
influenced by new information pertaining to the understanding of the
deposit, as well as by conversion to Ore Reserves.
The appropriate Mineral Resource classification is determined by the
appointed CPs. The choice of appropriate category of Mineral
Resource depends upon the quantity, distribution and quality of
geoscientific information available and the level of confidence in
this data.
Anglo American makes use of a web-based Group reporting database
called the Anglo Reserve and Resource Reporting system (ARR) for the
compilation, review and approval of Ore Reserve and Mineral
Resource data. The system allows the CPs to capture the estimates,
year-on-year reconciliations and other supplementary information,
thus supporting the Ore Reserves and Mineral Resources publication.
The estimates of Ore Reserves and Mineral Resources are stated as
at 31 December 2023. The tabulated estimates are rounded and, if
used to derive totals and averages, minor differences may result.
Unless stated otherwise, Mineral Resources are additional to
(i.e. exclusive of) those resources converted to Ore Reserves and are
reported on a dry tonnes basis. Mineral Resources should not be added
to Ore Reserves, as Modifying Factors have been applied to
Ore Reserves.
The Ore Reserves and Mineral Resources Report 2023 should be
considered the only valid source of Ore Reserve and Mineral Resource
information for the Group exclusive of Kumba Iron Ore Limited and
Anglo American Platinum Limited, which publish their own independent
annual reports.
It is accepted that mine planning may include some Inferred Mineral
Resources. Inferred Mineral Resources in the Life of Asset Plan (LoAP)
are described as ‘Inferred (in LoAP)’ separately from the remaining
Inferred Mineral Resources described as ‘Inferred (ex. LoAP)’, as
required. These resources are declared without application of
Modifying Factors. Reserve Life reflects the scheduled extraction or
processing period in years for the total Ore Reserves (in situ and
stockpiles) in the approved LoAP.
The ownership (attributable) percentage that Anglo American holds
in each operation and project is presented beside the name of each
entity and reflects the Group’s share of equity owned. The reported
estimates represent 100% of the Ore Reserves and Mineral Resources.
Operations and projects which fall below the internal threshold for
reporting (25% attributable interest) are not reported. Operations
which were disposed of during 2023 and hence not reported are:
Kroondal, Marikana, Siphumelele 3 shaft (Platinum Group Metals).
Ore Reserves and Mineral Resources are reported for properties over
which mineral tenure has been granted and is valid, or where
applications have been submitted or will be submitted at the
appropriate time and there is a reasonable expectation that the rights
will be granted in due course (any associated comments appear in the
Ore Reserves and Mineral Resources Report 2023).
The effective management of risk is integral to good management
practice. Anglo American is committed to an effective, robust system of
risk identification and an appropriate response to such risks, in order to
support the achievement of our objectives. Risk registers related to Ore
Reserves and Mineral Resources are maintained for each operation,
covering key risks pertaining to, but not limited to, technical,
environmental, social, health, safety, economic and political aspects.
Mitigation measures are identified and actioned to address the
material risks at each operation.
uThe detailed Ore Reserve and Mineral Resource estimates, Ore Reserve and Mineral
Resource reconciliation overview, Definitions and Glossary are contained in the separate
Ore Reserves and Mineral Resources Report 2023, which is available in the Annual
Reporting Centre on the Anglo American website.
312
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Ore Reserves and Mineral Resources
Estimated Ore Reserves(1)
as at 31 December 2023
Detailed Proved and Probable estimates appear on the referenced pages in the Ore Reserves and Mineral Resources Report 2023.
COPPER OPERATIONS
(See pages 23 & 24 in R&R Report for details)
Collahuasi
Sulphide (direct feed)
El Soldado
Los Bronces
Low grade sulphide (incl. stockpile)
Sulphide – flotation (incl. stockpile)
Sulphide – flotation
Sulphide – dump leach
Ownership
%
44.0
50.1
50.1
Mining
Method
OP
OP
OP
Quellaveco
Sulphide – flotation (incl. stockpile)
60.0
OP
Total Proved and Probable
Reserve Life(2)
(years)
74
Contained
Copper (kt)
25,578
ROM Tonnes
(Mt)
2,634.3
5
33
35
7,243
208
6,520
1,204
8,212
1,483.7
28.9
1,227.7
426.3
1,595.2
NICKEL OPERATIONS
(See page 33 in R&R Report for details)
Barro Alto
Niquelândia
Saprolite (incl. stockpile)
Saprolite
PGMs(3) OPERATIONS
(See page 39 in R&R Report for details)
Amandelbult
Mogalakwena
MR & UG2 Reefs
Platreef (incl. stockpile)
Modikwa
Mototolo
Unki
UG2 Reef
UG2 Reef
Main Sulphide Zone
DIAMOND(4) OPERATION – DBCi
(See page 46 in R&R Report for details)
Gahcho Kué
Kimberlite
DIAMOND(4) OPERATION – DBCM
(See page 50 in R&R Report for details)
Venetia (UG)
Kimberlite
DIAMOND(4) OPERATIONS – Debswana
(See page 54 in R&R Report for details)
Jwaneng
Letlhakane
Orapa
Kimberlite
TMR & ORT
Kimberlite
DIAMOND(4) OPERATIONS – Namdeb
(See pages 60 & 63 in R&R Report for details)
Mining Area 1
Orange River
Beaches
Fluvial placers
Atlantic 1
Marine placers
58.5
6.2
ROM Tonnes
(Mt)
84.0
1,201.5
37.8
126.5
44.6
Ownership
%
Mining
Method
Reserve Life(2)
(years)
Contained Nickel
(kt)
ROM Tonnes
(Mt)
100
100
OP
OP
18
13
737
77
Ownership
%
78.6
Mining
Method
UG
78.6
39.3
78.6
78.6
OP
UG
UG
UG
Ownership
%
43.4
Mining
Method
OP
Ownership
%
62.9
Ownership
%
42.5
42.5
42.5
Ownership
%
42.5
42.5
Mining
Method
UG
Mining
Method
OP
n/a
OP
Mining
Method
OC
OC
Ownership
%
42.5
Mining
Method
MM
Contained Metal
(4E Moz)
12.3
114.3
5.1
13.3
4.7
Reserve Life(2)
(years)
25
74
25
51
19
LoA(5)
(years)
8
LoA(5)
(years)
22
Saleable Carats
(Mct)
32.0
Treated Tonnes
(Mt)
22.0
Saleable Carats
(Mct)
59.7
Treated Tonnes
(Mt)
79.1
LoA(5)
(years)
13
Saleable Carats
(Mct)
113.2
Treated Tonnes
(Mt)
90.2
20
14
LoA(5)
(years)
19
5
LoA(5)
(years)
34
5.6
127.2
25.9
79.7
Saleable Carats
(kct)
18
Treated Tonnes
(kt)
346
95
16,476
Saleable Carats
(kct)
9,682
Area
k (m2)
165,681
Operations = mines in steady-state or projects in ramp-up phase.
Mining method: OP = open pit, UG = underground, OC = opencast/cut, MM = marine mining. TMR = Tailings Mineral Resource. ORT = Old Recovery Tailings.
Mt = Million tonnes. kt = thousand tonnes. Moz = Million troy ounces. Mct = Million carats. kct = thousand carats. k (m²) = thousand square metres.
ROM = run of mine.
TCu = total copper.
4E is the sum of platinum, palladium, rhodium and gold. g/t = grams per tonne. MR = Merensky Reef.
Diamond Recovered Grade is quoted as carats per hundred metric tonnes (cpht) or as carats per square metre (cpm²).
Grade
(%TCu)
0.97
0.49
0.72
0.53
0.28
0.51
Grade
(%Ni)
1.26
1.24
Grade
(4E g/t)
4.55
2.95
4.22
3.27
3.27
Recovered
Grade
(cpht)
145.4
Recovered
Grade
(cpht)
75.4
Recovered
Grade
(cpht)
125.4
21.5
159.5
Recovered
Grade
(cpht)
5.20
0.58
Recovered
Grade
(cpm2)
0.06
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Ore Reserves and Mineral Resources
313
Estimated Ore Reserves continued
KUMBA IRON ORE OPERATIONS
(See page 68 in R&R Report for details)
Kolomela
Sishen
Haematite (incl. stockpile)
Haematite (incl. stockpile)
IRON ORE BRAZIL OPERATION
(See page 72 in R&R Report for details)
Serra do Sapo
Friable itabirite & haematite
Itabirite
STEELMAKING COAL OPERATIONS
(See page 77 in R&R Report for details)
Capcoal (OC)*
Metallurgical – coking
Metallurgical – other
Thermal – export
Capcoal (UG) – Aquila*
Metallurgical – coking
Dawson
Grosvenor
Moranbah North
Metallurgical – coking
Thermal – export
Metallurgical – coking
Metallurgical – coking
SAMANCOR MANGANESE(8) OPERATIONS
(See page 84 in R&R Report for details)
GEMCO(9)
ROM
Sands
Mamatwan
Wessels
CROP NUTRIENTS PROJECT
(See page 88 in R&R Report for details)
Woodsmith
Shelf
Ownership
%
52.5
52.5
Ownership
%
100
Mining
Method
OP
OP
Reserve Life(2)
(years)
11
15
Mining
Method
OP
Reserve Life(2)
(years)
51
Ownership
%
79.5
Mining
Method
OC
70.0
51.0
88.0
88.0
UG
OC
UG
UG
Reserve Life(2)
(years)
17
6
13
13
21
Ownership
%
40.0
Mining
Method
OP
Reserve Life(2)
(years)
5
29.6
29.6
OP
UG
14
38
Ownership
%
100
Mining
Method
UG
Reserve Life(2)
(years)
27
Operations = mines in steady-state or projects in ramp-up phase.
Mining method: OP = open pit, UG = underground, OC = opencast/cut.
Mt = Million tonnes.
ROM = run of mine.
*Capcoal comprises opencast operations at Lake Lindsay and Oak Park, with an underground longwall operation at Aquila.
Total Proved and Probable
Saleable Product
(Mt)
125.3
379.6
Saleable Product(6)
(Mt)
619.7
1,062.8
Saleable Tonnes(7)
(Mt)
32.8
44.3
10.6
26.6
64.6
26.3
63.1
151.6
Tonnes
(Mt)
37
6.3
39
57
ROM Tonnes
(Mt)
290.0
Grade
(%Fe)
63.4
64.1
Grade(6)
(%Fe)
67.0
67.0
Saleable Quality(7)
5.0 CSN
6,750 kcal/kg
5,970 kcal/kg
9.0 CSN
7.0 CSN
5,930 kcal/kg
8.0 CSN
7.5 CSN
Grade
(%Mn)
42.6
40.0
36.1
41.8
Grade
(%Pht)
88.8
(1) Estimated Ore Reserves are the sum of Proved and Probable Ore Reserves (Mineral Resources are reported as additional to Ore Reserves unless stated otherwise). Refer to the detailed
Ore Reserve estimate tables in the Anglo American Ore Reserves and Mineral Resources Report for the individual Proved and Probable Ore Reserve estimates. The Ore Reserve estimates
are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012) as a minimum standard. Ore
Reserve estimates for operations in South Africa are reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
(the SAMREC Code, 2016), unless stated otherwise. The figures reported represent 100% of the Ore Reserves. Anglo American ownership is stated separately and reflects the Group’s
share of equity owned in each operation. Rounding of figures may cause computational discrepancies.
(2) Reserve Life = The scheduled extraction or processing period in years for the total Ore Reserves (in situ and stockpiles) in the approved LoAP.
(3) In the 2022 report, Reserve Life was defined as the scheduled extraction restricted by the current mining right. In this report the mining right restriction has been removed and Reserve Life is
stated per the schedule in the approved LoAP.
(4) DBCi = De Beers Canada, DBCM = De Beers Consolidated Mines, Debswana = Debswana Diamond Company, Namdeb = Namdeb Holdings. Reported Diamond Reserves are based on a
bottom cut-off (BCO), which refers to the bottom screen size aperture and varies between 1.00 mm and 3.00 mm (nominal square mesh). Specific BCOs applied to derive estimates are
included in the detailed Diamond Reserve tables in the Anglo American Ore Reserves and Mineral Resources Report.
(5) LoA = Life of Asset is the scheduled extraction or processing period in years of Probable Diamond Reserves, including some Inferred Diamond Resources, considered in the LoAP.
(6) Iron Ore Brazil Saleable Product tonnes are reported on a wet basis (average moisture content is 9.5 weight % of the wet mass) with grade stated on a dry basis.
(7) Total Saleable Tonnes represents the product tonnes quoted as metric tonnes on a product moisture basis. The coal quality for Coal Reserves is quoted as either kilocalories per kilogram
(kcal/kg) or Crucible Swell Number (CSN). Kilocalories per kilogram represent Calorific Value (CV) on a Gross As Received (GAR) basis. CV is rounded to the nearest 10 kcal/kg and CSN to the
nearest 0.5 index.
(8) The Ore Reserve estimates are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012) for
Australian and South African operations.
(9) GEMCO Ore Reserve manganese grades are reported as expected product and should be read together with their respective mass yields, ROM: 56%, Sands: 22%.
314
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Ore Reserves and Mineral Resources
Estimated Mineral Resources(1)
as at 31 December 2023
Detailed Measured, Indicated and Inferred estimates appear on the referenced pages in the Ore Reserves and Mineral Resources Report 2023.
Total Measured and Indicated
Total Inferred(2)
COPPER OPERATIONS
(See pages 25, 26 & 27 in R&R Report for details)
Ownership
%
Mining
Method
Contained
Copper (kt)
Tonnes
(Mt)
Grade
(%TCu)
Contained
Copper (kt)
Tonnes
(Mt)
Grade
(%TCu)
Collahuasi
Oxide and mixed leach
44.0
OP
468
66.7
0.70
551
110.3
0.50
El Soldado
Los Bronces
Sulphide – flotation
Low grade sulphide
Sulphide – flotation (incl. stockpile)
Sulphide – flotation
Sulphide – dump leach
8,884
987.9
0.90
25,979
2,885.3
0.90
1,873
398.4
0.47
9,399
2,040.2
0.46
50.1
50.1
OP
1,109
193.8
0.57
121
28.7
0.42
OP
13,056
2,887.7
0.45
3,194
738.2
0.43
—
—
—
29
8.7
0.33
Quellaveco
Sulphide – flotation
60.0
OP
2,744
703.7
0.39
4,888
1,186.0
0.41
NICKEL OPERATIONS
(See pages 33 & 34 in R&R Report for details)
Ownership
%
Mining
Method
Contained
Nickel (kt)
Tonnes
(Mt)
Grade
(%Ni)
Contained
Nickel (kt)
Tonnes
(Mt)
Grade
(%Ni)
Barro Alto
Saprolite (incl. stockpile)
100
OP
180
16.0
1.13
110
9.2
1.19
Niquelândia
Saprolite
100
OP
Ferruginous laterite
87
32
—
6.9
1.26
2.5 1.25
—
—
47
—
36
4.1
1.15
—
—
3.2
1.13
Amandelbult
MR & UG2 Reefs
78.6
UG
53.9
283.6
5.92
23.0
114.2
6.26
Mogalakwena
Platreef (incl. stockpile)
78.6 OP, UG
129.0 1,685.3
Ownership
%
Mining
Method
Contained
Metal (4E Moz)
Tonnes
(Mt)
Grade
(4E g/t)
Contained
Metal (4E Moz)
Tonnes
(Mt)
Grade
(4E g/t)
Ferruginous laterite
PGMs(3) OPERATIONS
(See pages 40 & 41 in R&R Report for details)
Modikwa
Mototolo
Twickenham
Unki
MR & UG2 Reefs
MR & UG2 Reefs
MR & UG2 Reefs
Main Sulphide Zone
DIAMOND(4) OPERATION – DBCi
(See page 46 in R&R Report for details)
Gahcho Kué
Kimberlite
DIAMOND(4) OPERATIONS – DBCM
(See page 50 in R&R Report for details)
Venetia (UG)
Kimberlite
DIAMOND(4) OPERATIONS – Debswana
(See pages 54 & 55 in R&R Report for details)
Damtshaa
Jwaneng
Letlhakane
Orapa
Kimberlite
Kimberlite
TMR & ORT
TMR & ORT
Kimberlite
DIAMOND(4) OPERATIONS – Namdeb
(See pages 60, 61 & 63 in R&R Report for details)
Mining Area 1
Orange River
Beaches
Fluvial placers
39.3
78.6
78.6
78.6
UG
UG
UG
UG
32.1 204.2
28.5 208.2
60.7 335.7
17.1 127.9
2.38
4.89
4.25
5.62
4.16
Ownership
%
Mining
Method
43.4
OP
Ownership
%
Mining
Method
62.9
UG
Ownership
%
Mining
Method
OP
OP
n/a
n/a
42.5
42.5
42.5
42.5
Carats
(Mct)
3.3
Carats
(Mct)
—
Carats
(Mct)
5.5
54.3
—
0.6
Tonnes
(Mt)
Grade
(cpht)
2.2
146.2
Tonnes
(Mt)
—
Grade
(cpht)
—
Tonnes
(Mt)
Grade
(cpht)
25.2
21.9
67.7
80.2
—
—
0.0
6,644.4
OP
271.7
280.4
96.9
Ownership
%
Mining
Method
Carats
(kct)
Tonnes
(kt)
Grade
(cpht)
26.4
27.2
26.7
56.0
4.2
Carats
(Mct)
23.8
Carats
(Mct)
51.6
Carats
(Mct)
6.4
66.2
18.1
12.3
64.5
Carats
(kct)
366.3 2.24
207.3 4.08
197.7 4.20
313.9 5.55
32.6 3.96
Tonnes
(Mt)
Grade
(cpht)
13.3
179.3
Tonnes
(Mt)
Grade
(cpht)
59.8
86.3
Tonnes
(Mt)
Grade
(cpht)
26.6
24.1
80.3
82.4
20.2
89.8
45.5
27.0
75.0
86.0
Tonnes
(kt)
Grade
(cpht)
42.5
42.5
OC
219
19,000
1.15
3,332
187,193
1.78
OC
78 20,158
0.39
159
54,316
0.29
Ownership
%
Mining
Method
Carats
(kct)
Area
k (m2)
Grade
(cpm2)
Carats
(kct)
Area
k (m2)
Grade
(cpm2)
Atlantic 1
Midwater
Marine placers
Marine
42.5
42.5
MM
13,605
204,299
0.07
66,798
829,059
0.08
MM
998
5,557
0.18
672
5,173
0.13
Operations = mines in steady-state or projects in ramp-up phase.
Mining method: OP = open pit, UG = underground, OC = opencast/cut, MM = marine mining. TMR = Tailings Mineral Resource. ORT = Old Recovery Tailings.
Mt = Million tonnes. kt = thousand tonnes. Moz = Million troy ounces. Mct = Million carats. kct = thousand carats. k (m²) = thousand square metres.
TCu = total copper.
4E is the sum of platinum, palladium, rhodium and gold. g/t = grams per tonne. MR = Merensky Reef.
Diamond Grade is quoted as carats per hundred metric tonnes (cpht) or as carats per square metre (cpm²).
Values reported as 0.0 represent estimates less than 0.05.
Anglo American plc
Integrated Annual Report 2023
Financial statements and other financial information
Ore Reserves and Mineral Resources
315
Estimated Mineral Resources continued
Total Measured and Indicated
Total Inferred(2)
KUMBA IRON ORE OPERATIONS
(See page 68 in R&R Report for details)
Ownership
%
Mining
Method
Kolomela
Sishen
Haematite
Haematite (incl. stockpile)
IRON ORE BRAZIL OPERATION
(See page 72 in R&R Report for details)
52.5
52.5
Ownership
%
Serra do Sapo
Friable itabirite & haematite
100
OP
OP
Mining
Method
OP
Itabirite
STEELMAKING COAL OPERATIONS
(See page 78 in R&R Report for details)
Ownership
%
Mining
Method
Capcoal (OC)*
Capcoal (UG) – Aquila*
Dawson
Grosvenor
Moranbah North
SAMANCOR MANGANESE(7) OPERATIONS
(See page 84 in R&R Report for details)
GEMCO(8)
ROM
Sands
Mamatwan
Wessels
CROP NUTRIENTS PROJECT
(See page 88 in R&R Report for details)
Woodsmith
Shelf
Basin
79.5
70.0
51.0
88.0
88.0
OC
UG
OC
UG
UG
Ownership
%
40.0
Mining
Method
OP
29.6
29.6
OP
UG
Ownership
%
100
Mining
Method
UG
Tonnes
(Mt)
114.2
444.0
Grade
(%Fe)
64.0
55.9
Tonnes(5)
(Mt)
Grade(5)
(%Fe)
268.1
1,376.4
33.0
31.0
Tonnes(6)
(Mt)
Coal
Quality(6)
(kcal/kg)
140.5
6,900
39.4
6,700
594.0
6,720
294.5
6,460
178.3
6,670
Tonnes
(Mt)
97
12
65
118
Tonnes
(Mt)
230.0
—
Grade
(%Mn)
43.4
20.0
35.0
41.9
Grade
(%Pht)
81.5
—
Tonnes
(Mt)
18.5
9.1
Grade
(%Fe)
62.6
49.6
Tonnes(5)
(Mt)
Grade(5)
(%Fe)
41.6
363.4
36.1
31.0
Tonnes(6)
(Mt)
Coal
Quality(6)
(kcal/kg)
137.0
6,840
2.8
6,190
220.7
6,730
95.9
6,390
25.4
6,530
Tonnes
(Mt)
26
—
—
14
Tonnes
(Mt)
810.0
960.0
Grade
(%Mn)
44.2
—
—
41.8
Grade
(%Pht)
82.3
86.3
Operations = mines in steady-state or projects in ramp-up phase.
Mining method: OP = open pit, UG = underground, OC = opencast/cut.
Mt = Million tonnes.
*Capcoal comprises opencast operations at Lake Lindsay and Oak Park, with an underground longwall operation at Aquila.
(1) Estimated Mineral Resources are presented on an exclusive basis, i.e. Mineral Resources are reported as additional to Ore Reserves unless stated otherwise. Refer to the detailed Mineral
Resource estimate tables in the Anglo American Ore Reserves and Mineral Resources Report for the individual Measured, Indicated and Inferred Resource estimates. The Mineral
Resource estimates are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012) as a
minimum standard. The Mineral Resource estimates for operations in South Africa are reported in accordance with the South African Code for the Reporting of Exploration Results, Mineral
Resources and Mineral Reserves (the SAMREC Code, 2016), unless stated otherwise. The figures reported represent 100% of the Mineral Resources. Anglo American ownership is stated
separately and reflects the Group’s share of equity owned in each operation. Rounding of figures may cause computational discrepancies.
(2) Total Inferred is the sum of ‘Inferred (in LoAP)’, the Inferred Resources within the scheduled LoAP and ‘Inferred (ex. LoAP)’, the portion of Inferred Resources with reasonable prospects for
eventual economic extraction not considered in the LoAP as relevant. Due to the uncertainty attached to Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred
Mineral Resource will necessarily be upgraded to an Indicated or Measured Mineral Resource after continued exploration.
(3) Merensky Reef, UG2 Reef and Main Sulphide Zone Mineral Resources are estimated over a ‘resource cut’ which takes cognisance of the mining method, potential economic viability and
geotechnical aspects in the hangingwall or footwall of the reef.
(4) DBCi = De Beers Canada, DBCM = De Beers Consolidated Mines, Debswana = Debswana Diamond Company, Namdeb = Namdeb Holdings. Estimated Diamond Resources are presented
on an exclusive basis, i.e. Diamond Resources are quoted as additional to Diamond Reserves. Reported Diamond Resources are based on a bottom cut-off (BCO), which refers to the bottom
screen size aperture and varies between 1.00 mm and 3.00 mm (nominal square mesh). Specific BCOs applied to derive estimates are included in the detailed Diamond Resource tables in the
Anglo American Ore Reserves and Mineral Resources Report.
(5) Iron Ore Brazil Mineral Resource tonnes and grade are reported on a dry basis.
(6) Coal Resources are quoted on a Mineable Tonnes In Situ (MTIS) basis in million tonnes, which are in addition to those Coal Resources that have been modified to produce the reported Coal
Reserves. Dawson, Grosvenor and Moranbah North operations have been reported on a Gross Tonnes In Situ (GTIS) basis in million tonnes. Coal Resources are reported on an in situ moisture
basis. The coal quality for Coal Resources is quoted on an in situ heat content as kilocalories per kilogram (kcal/kg), representing Calorific Value (CV) on a Gross As Received (GAR) basis. CV is
rounded to the nearest 10 kcal/kg.
(7) The Mineral Resource estimates are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012) for
Australian and South African operations. Manganese Mineral Resources are quoted on an inclusive basis and must not be added to the Ore Reserves.
(8) GEMCO ROM Mineral Resource tonnes are stated as in situ, manganese grades are given as per washed ore samples and should be read together with their respective mass recovery
expressed as yield. GEMCO Sands Mineral Resource tonnes and manganese grades are stated as in situ.
316
Anglo American plc
Integrated Annual Report 2023
Other information
Glossary of terms
Ore Reserves
An ‘Ore Reserve’ is the economically mineable part of a Measured and/
or Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined or
extracted and is defined by studies at pre-feasibility or feasibility level
as appropriate that include application of Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction could
reasonably be justified. ‘Modifying Factors’ are (realistically assumed)
considerations used to convert Mineral Resources to Ore Reserves.
These include, but are not restricted to, mining, processing,
metallurgical, infrastructure, economic, marketing, legal, environmental,
social and governmental factors. Ore Reserves are sub-divided in
order of increasing confidence into Probable Ore Reserves and Proved
Ore Reserves.
A ‘Proved Ore Reserve’ is the economically mineable part of a
Measured Mineral Resource. A Proved Ore Reserve implies a high
degree of confidence in the Modifying Factors.
A ‘Probable Ore Reserve’ is the economically mineable part of an
Indicated, and in some circumstances, a Measured Mineral Resource.
The confidence in the Modifying Factors applying to a Probable Ore
Reserve is lower than that applying to a Proved Ore Reserve. A
Probable Ore Reserve has a lower level of confidence than a Proved
Ore Reserve but is of sufficient quality to serve as the basis for a
decision on the development of the deposit.
Mineral Resources
A ‘Mineral Resource’ is a concentration or occurrence of solid material
of economic interest in or on the Earth’s crust in such form, grade (or
quality), and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade (or quality),
continuity and other geological characteristics of a Mineral Resource
are known, estimated or interpreted from specific geological evidence
and knowledge, including sampling. Mineral Resources are sub-
divided, in order of increasing geological confidence, into Inferred,
Indicated and Measured categories.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with confidence sufficient to allow the
application of Modifying Factors to support detailed mine planning and
final evaluation of the economic viability of the deposit. Geological
evidence is derived from detailed and reliable exploration, sampling
and testing gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes, and is
sufficient to confirm geological and grade (or quality) continuity
between points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than
that applying to either an Indicated Mineral Resource or an Inferred
Mineral Resource. It may be converted to a Proved Ore Reserve or
under certain circumstances to a Probable Ore Reserve.
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine
planning and evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes, and is sufficient to assume geological and grade (or
quality) continuity between points of observation where data and
samples are gathered.
An Indicated Mineral Resource has a lower level of confidence than
that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve.
An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for
which quantity and grade (or quality) are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply, but not verify, geological and grade (or quality)
continuity. It is based on exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted
to an Ore Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.
Life of Asset Plan (LoAP)
Life of Asset Plan is the most recent annual plan summarising a
forecast of the development, operation and maintenance of the asset
based on realistically assumed Modifying Factors. This plan shall cover
a detailed mine design and schedule for ore tonnes and grade, waste
movements, treatment schedule, production of saleable product,
capital, operating and reclamation costs, together with reasonable
estimates of cash flows and other costs and expenses (including
corporate costs), in sufficient detail to demonstrate at the time of
reporting that extraction is reasonably justified.
Reserve Life
The scheduled extraction or processing period in years for the total Ore
Reserves (in situ and stockpiles) in the approved LoAP.
Inferred (in LoAP)
Inferred Resources within the scheduled LoAP.
Inferred (ex. LoAP)
The portion of Inferred Resources with reasonable prospects for
eventual economic extraction not considered in the LoAP.
Fatal-injury frequency rate (FIFR)(1)
FIFR is the number of employee or contractor fatal injuries due to all
causes per 1,000,000 hours worked.
Lost time injury frequency rate (LTIFR)(1)
LTIFR is the number of lost time injuries (LTIs) for both employees and
contractors per 1,000,000 hours worked. An LTI is a work-related injury
resulting in the person being unable to attend work or perform the
routine functions of his/her job, on the next calendar day after the day
of the injury, whether a scheduled workday or not. Restricted work
cases are therefore counted as LTIs.
Total recordable injury frequency rate (TRIFR)(1)
TRIFR is the number of fatal injuries, lost time injuries and medical
treatment cases for both employees and contractors per 1,000,000
hours worked.
New cases of occupational disease (NCOD)(1)
NCOD is the sum of all recorded, irreversible occupational diseases.
An occupational disease is a health condition or disorder (e.g., silicosis,
coal-workers’ pneumoconiosis, chronic obstructive air ways disease,
occupational cancers, sensitisation to platinum or rhodium salts, work-
related mental disorders, etc.) that is caused by the work environment
or activities related to work.
Total energy consumed(1)
Total amount of energy consumed is the sum of total energy from
electricity purchased, total energy from fossil fuels and total energy
from renewable fuels and is measured in million gigajoules (GJ).
Anglo American plc
Integrated Annual Report 2023
Other information
Glossary of terms
317
Commercial initiatives include enterprise development and other
community initiatives/partnerships that can also directly support the
success of the Company (such as supplier development). There must,
however, be a clear and primary element of public benefit.
We prohibit the making of donations for political purposes to any
politician, political party or related organisation, an official of a political
party or candidate for political office in any circumstances either
directly or through third parties.
Jobs supported through livelihoods’ initiatives
Anglo American supports jobs through various community livelihoods’
initiatives. This includes – but is not limited to – local procurement,
training, mentoring and capacity development, loan funding to small
businesses, agriculture programmes and collaborative regional
development initiatives. The number of jobs supported includes
existing jobs through activities to support increased security of those
jobs, as well as newly created jobs through a range of development
programmes and projects. Jobs supported are measured as full time
equivalent jobs.
Inclusive procurement measurement
Our Inclusive Procurement Policy provides a framework for supporting
development outcomes through targeted procurement interventions.
This policy is further strengthened by region specific regulations and
processes where it relates to host community procurement. Inclusive
procurement strategies take into account the regions and communities
within which our operations are located.
The measurement of performance against our inclusive procurement
strategy is informed by a combination of development outcomes and
legal requirements. Inclusive procurement encompasses a
combination of multiple factors, including procurement from local (or in
country/region), host and designated entities.
– Host communities: includes suppliers who have their main place of
business in the direct vicinity of the operation, as defined per region.
– Designated groups: include First Nation-owned companies
(Canada region), Aboriginal owned supplier businesses (Australia)
and BEE entities (South Africa).
– Local companies: businesses that are registered and based in the
country of the operation – also referred to as in-country suppliers.
Our inclusive procurement initiatives are aimed at ensuring maximum
impact on host communities.
(1) Data relates to subsidiaries and joint operations over which Anglo American has
management control. See Anglo American plc Sustainability Report 2023 for the full list of
entities within the reporting scope.
Total water withdrawals(1)
Total water withdrawals by source, reported in line with International
Council on Metals and Mining (ICMM) guidance, includes: surface
water; groundwater; seawater, and third-party water, and is measured
in million m3.
Fresh water withdrawals in water scarce areas(1)
Naturally occurring water that meets the criteria of the Minerals Council
of Australia’s Water Accounting Framework (WAF) Category 1,
excluding precipitation and run-off, which reasonably cannot
effectively be prevented from entry into our operational processes in
million m3.
Greenhouse gases (GHGs)(1)
The Intergovernmental Panel on Climate Change 2006 report (as
updated in 2011) factors are applied as defaults for all carbon dioxide-
equivalent (CO2e) and energy calculations. Where emission factors
are available for specific countries or sub-regions from government
and regulatory authorities, these are applied. Australian operations
apply conversion factors required by the government for regulatory
reporting and operations in Brazil apply local factors for biomass and
biofuel. Factors for CO2e from electricity are based on local
grid factors.
Based on a self-assessment, Anglo American believes it reports in
accordance with the WRI/WBCSD GHG Protocol, as issued prior to the
2015 revision on Scope 2 emissions reporting. In line with the GHG
Protocol’s ‘management control’ boundary, 100% of the direct and
indirect emissions for managed operations are accounted for while
zero emissions for associates, joint ventures and other investments are
included in the reporting scope.
Level 3, 4 and 5 environmental incidents(1)
Environmental incidents are unplanned or unwanted events resulting
from our operations that adversely impact the environment or
contravene local regulations/permit conditions. They are classified
from minor (Level 1) to significant (Level 5) depending on the duration
and extent of impact, as well as the sensitivity and/or biodiversity value
of the receiving environment. Level 3-5 incidents are those which we
consider to have prolonged impacts on the local environments, lasting
in excess of one month and affecting areas greater than several
hundred metres on site, or extending beyond the boundaries of our
immediate operations.
Total amount spent on community social investment
Categories for community social investment (CSI) expenditure include
charitable donations, community investment and community
commercial initiatives. CSI contributions can take the form of cash
donations, contributions in kind and employees’ working hours spent
on charity and volunteering projects during work hours. Not included is
expenditure that is necessary for the development of an operation (e.g.
resettlement of families) or receiving a licence. Training expenditure for
individuals who will be employed by the Company following
completion of training is not included. CSI is reported in US dollars and
converted from the currency of the operations at the average foreign
exchange rate applied by Anglo American for financial reporting
purposes.
Charitable donations include charitable and philanthropic gifts and
contributions that tend to be ad hoc and one-offs.
Community investment includes the funding of community projects/
programmes which address social issues, the costs of providing public
facilities to community members who are not employees or
dependents, the marginal value of land or other assets transferred to
community ownership, and income creation schemes or mentoring/
volunteering initiatives that do not have a principally commercial
justification.
318
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Integrated Annual Report 2023
Other information
Alternative performance measures
Introduction
When assessing and discussing the Group’s reported financial
performance, financial position and cash flows, management makes
reference to Alternative Performance Measures (APMs) of historical or
future financial performance, financial position or cash flows that are
not defined or specified under International Financial Reporting
Standards (IFRS).
The APMs used by the Group fall into two categories:
– Financial APMs: These financial measures are usually derived from
the financial statements, prepared in accordance with IFRS. Certain
financial measures cannot be directly derived from the financial
statements as they contain additional information, such as financial
information from earlier periods or profit estimates or projections.
The accounting policies applied when calculating APMs are, where
relevant and unless otherwise stated, substantially the same as
those disclosed in the Group’s Consolidated financial statements for
the year ended 31 December 2022 with the exception of the new
accounting pronouncements disclosed in note 39.
– Non-financial APMs: These measures incorporate certain non-
financial information that management believes is useful when
assessing the performance of the Group.
APMs are not uniformly defined by all companies, including those in the
Group’s industry. Accordingly, the APMs used by the Group may not be
comparable with similarly titled measures and disclosures made by
other companies.
APMs should be considered in addition to, and not as a substitute for or
as superior to, measures of financial performance, financial position or
cash flows reported in accordance with IFRS. Measures used by the
Group exclude the impact of certain items, which impact the financial
performance and cash flows, in order to aid comparability of financial
information reported. The adjustments performed to defined IFRS
measures and rationale for adjustments are detailed on pages 318
to 320.
Purpose
The Group uses APMs to improve the comparability of information
between reporting periods and businesses, either by adjusting for
uncontrollable factors or special items which impact upon IFRS
measures or, by aggregating measures, to aid the user of the Annual
Report in understanding the activity taking place across the Group’s
portfolio.
Their use is driven by characteristics particularly visible in the mining
sector:
1. Earnings volatility: The Group mines and markets commodities and
precious metals and minerals. The sector is characterised by
significant volatility in earnings driven by movements in macro-
economic factors, primarily price and foreign exchange. This
volatility is outside the control of management and can mask
underlying changes in performance. As such, when comparing year-
on-year performance, management excludes certain items (such as
those classed as ‘special items’) to aid comparability and then
quantifies and isolates uncontrollable factors in order to improve
understanding of the controllable portion of variances.
2. Nature of investment: Investments in the sector typically occur over
several years and are large, requiring significant funding before
generating cash. These investments are often made with partners
and the nature of the Group’s ownership interest affects how the
financial results of these operations are reflected in the Group’s
results e.g. whether full consolidation (subsidiaries), consolidation of
the Group’s attributable assets and liabilities (joint operations) or
equity accounted (associates and joint ventures). Attributable
metrics are therefore presented to help demonstrate the financial
performance and returns available to the Group, for investment and
financing activities, excluding the effect of different accounting
treatments for different ownership interests.
3. Portfolio complexity: The Group operates in a number of different,
but complementary commodities, precious metals and minerals. The
cost, value of and return from each saleable unit (e.g. tonne, pound,
carat, ounce) can differ materially between each business. This
makes understanding both the overall portfolio performance, and
the relative performance of its constituent parts on a like-for-like
basis, more challenging. The Group therefore uses composite APMs
to provide a consistent metric to assess performance at the portfolio
level.
Consequently, APMs are used by the Board and management for
planning and reporting. A subset is also used by management in
setting director and management remuneration, such as attributable
free cash flow prior to growth capital expenditure. The measures are
also used in discussions with the investment analyst community and
credit rating agencies.
Financial APMs
Group APM
Closest equivalent
IFRS measure
Income statement
Adjustments to reconcile to primary statements
Rationale for adjustments
Group revenue Revenue
– Revenue from associates and joint ventures
– Revenue special items and remeasurements
Underlying EBIT Profit/(loss) before
net finance income/
(costs) and tax
– Revenue, operating and non-operating special items
and remeasurements
– Underlying EBIT from associates and joint ventures
Underlying
EBITDA
Profit/(loss) before
net finance income/
(costs) and tax
– Revenue, operating and non-operating special items
and remeasurements
– Depreciation and amortisation
– Underlying EBITDA from associates and joint ventures
– Exclude the effect of different basis of
consolidation to aid comparability
– Exclude the impact of certain items due to
their size and nature to aid comparability
– Exclude the impact of certain items due to
their size and nature to aid comparability
– Exclude the effect of different basis of
consolidation to aid comparability
– Exclude the impact of certain items due to
their size and nature to aid comparability
– Exclude the effect of different basis of
consolidation to aid comparability
Anglo American plc
Integrated Annual Report 2023
Other information
Alternative performance measures
319
Group APM
Underlying
earnings
Underlying
effective tax
rate
Basic underlying
earnings
per share
Mining EBITDA
margin
Operating profit
margin, defined by
IFRS
Balance sheet
Net debt
Borrowings less cash
and related hedges
Closest equivalent
IFRS measure
Profit/(loss) for the
financial year
attributable to equity
shareholders of the
Company
Adjustments to reconcile to primary statements
Rationale for adjustments
– Special items and remeasurements
– Exclude the impact of certain items due to
their size and nature to aid comparability
Income tax expense
– Tax related to special items and remeasurements
– The Group’s share of associates’ and joint ventures’ profit
– Exclude the impact of certain items due to
their size and nature to aid comparability
before tax, before special items and remeasurements, and
tax expense, before special items and remeasurements
– Exclude the effect of different basis of
consolidation to aid comparability
Earnings per share
– Special items and remeasurements
– Revenue from associates and joint ventures
– Revenue, operating and non-operating special items
and remeasurements
– Underlying EBIT from associates and joint ventures
– Adjustment to Debswana to reflect as a 50/50
joint operation
– Exclusion of third-party sales, purchases and
trading activity
– Debit valuation adjustment
– Borrowings are adjusted to exclude vessel lease contracts
that are priced with reference to a freight index
– Borrowings do not include the royalty liability (note 24) on
the basis that obligations to make cash payments against
this liability only arise when the Woodsmith project
generates revenues, and that otherwise the Group is not
currently contractually liable to make any payments under
this arrangement (other than in the event of the Anglo
American Crop Nutrients Limited’s insolvency)
– Exclude the impact of certain items due to
their size and nature to aid comparability
– Exclude non-mining revenue and EBITDA
to show a margin for mining operations
only, which provides a relevant comparison
to peers
– Exclude the impact of accounting
adjustments from the net debt obligation of
the Group
– Exclude the volatility arising from vessel lease
contracts that are priced with reference to a
freight index. These liabilities are required to
be remeasured at each reporting date to the
latest spot freight rate, which means that the
carrying value of the lease liability is not
necessarily consistent with the average lease
payments which are expected to be made
over the lease term
– Exclude the effect of different basis of
consolidation to aid comparability
Attributable
ROCE
No direct equivalent
– Non-controlling interests’ share of capital employed and
underlying EBIT
– Average of opening and closing attributable
capital employed
320
Anglo American plc
Integrated Annual Report 2023
Other information
Alternative performance measures
Group APM
Cash flow
Capital
expenditure
(capex)
Closest equivalent
IFRS measure
Expenditure on
property, plant and
equipment
Adjustments to reconcile to primary statements
Rationale for adjustments
– Cash flows from derivatives related to capital expenditure
– To reflect the net attributable cost of
– Proceeds from disposal of property, plant and equipment
– Direct funding for capital expenditure from non-
capital expenditure taking into account
economic hedges
Attributable free
cash flow
Cash flows from
operations
controlling interests
– Capital expenditure
– Cash tax paid
Sustaining
attributable free
cash flow
Cash flows from
operations
– Dividends from associates, joint ventures and financial
asset investments
– Net interest paid
– Dividends to non-controlling interests
– Capital repayment of lease obligations
– Expenditure on non-current intangible assets
(excluding goodwill)
– Cash tax paid
– Dividends from associates, joint ventures and financial
asset investments
– Net interest paid
– Dividends to non-controlling interests
– Capital repayment of lease obligations
– Sustaining capital expenditure
– Capitalised operating cash flows relating to life
extension projects
– To measure the amount of cash available to
finance returns to shareholders or growth
after servicing debt, providing a return to
minority shareholders and meeting existing
capex commitments
– To measure the amount of cash available to
finance returns to shareholders or growth
after servicing debt, providing a return to
minority shareholders and meeting the
capex commitments needed to sustain the
current production base of existing assets.
It is calculated as attributable free cash flow
prior to growth capex and expenditure on
non-current intangible assets (excluding
goodwill)
Group revenue
Group revenue includes the Group’s attributable share of associates’
and joint ventures’ revenue and excludes revenue special items and
remeasurements. A reconciliation to ‘Revenue’, the closest equivalent
IFRS measure to Group revenue, is provided within note 2 to the
Consolidated financial statements.
Underlying EBIT
Underlying EBIT is ‘Operating profit/(loss)’ presented before special
items and remeasurements(1) and includes the Group’s attributable
share of associates’ and joint ventures’ underlying EBIT. Underlying
EBIT of associates and joint ventures is the Group’s attributable share
of associates’ and joint ventures’ revenue less operating costs before
special items and remeasurements(1) of associates and joint ventures.
A reconciliation to ‘Profit/(loss) before net finance income/(costs) and
tax’, the closest equivalent IFRS measure to underlying EBIT, is provided
within note 2 to the Consolidated financial statements.
Underlying EBITDA
Underlying EBITDA is underlying EBIT before depreciation and
amortisation and includes the Group’s attributable share of associates’
and joint ventures’ underlying EBIT before depreciation and
amortisation.
A reconciliation to ‘Profit/(loss) before net finance income/(costs) and
tax’, the closest equivalent IFRS measure to underlying EBITDA, is
provided within note 2 to the Consolidated financial statements.
Underlying earnings
Underlying earnings is ‘Profit/(loss) for the financial year attributable to
equity shareholders of the Company’ before special items and
remeasurements(1) and is therefore presented after net finance costs,
income tax expense and non-controlling interests.
A reconciliation to ‘Profit/(loss) for the financial year attributable to
equity shareholders of the Company’, the closest equivalent IFRS
measure to underlying earnings, is provided within note 2 to the
Consolidated financial statements.
Underlying effective tax rate
The underlying effective tax rate equates to the income tax expense,
before special items and remeasurements(1) and including the Group’s
share of associates’ and joint ventures’ tax before special items and
remeasurements(1), divided by profit before tax before special items
and remeasurements(1) and including the Group’s share of associates’
and joint ventures’ profit before tax before special items and
remeasurements(1).
A reconciliation to ‘Income tax expense’, the closest equivalent IFRS
measure to underlying effective tax rate, is provided within note 5 to the
Consolidated financial statements.
(1) Special items and remeasurements are defined in note 9 to the Consolidated
financial statements.
Underlying earnings per share
Basic and diluted underlying earnings per share are calculated as
underlying earnings divided by the basic or diluted shares in issue. The
calculation of underlying earnings per share is disclosed within note 3
to the Consolidated financial statements.
Mining EBITDA margin
The mining EBITDA margin is derived from the Group’s underlying
EBITDA as a percentage of Group revenue, adjusted to exclude certain
items to better reflect the performance of the Group’s mining business.
The mining EBITDA margin reflects Debswana accounting treatment
as a 50/50 joint operation, excludes third-party sales, purchases and
trading and excludes Platinum Group Metals’ purchase of concentrate.
Anglo American plc
Integrated Annual Report 2023
Other information
Alternative performance measures
321
US$ million (unless otherwise stated)
Underlying EBITDA
Group revenue
Margin
Adjustments for:
2023
9,958
32,502
31%
2022
14,495
37,391
39%
Debswana adjustment to reflect as a 50/50
joint operation
Exclude third-party purchases, trading
activity and processing(1)
Mining EBITDA margin
2%
3%
6%
39%
5%
47%
(1) Third-party purchases, trading activity and processing consists of Platinum Group Metals’
purchase of concentrate, third-party sales and purchases and the impact of third-party
trading activity.
Sustaining capital
Sustaining capital is calculated as capital expenditure excluding
growth projects. Expenditure on growth projects in 2023 and 2022
principally related to Quellaveco and the Woodsmith project. The
Group uses sustaining capital as a measure to provide additional
information to understand the capital needed to sustain the current
production base of existing assets.
Attributable return on capital employed (ROCE)
ROCE is a ratio that measures the efficiency and profitability of a
company’s capital investments. Attributable ROCE displays how
effectively assets are generating profit on invested capital for the
equity shareholders of the Company. It is calculated as attributable
underlying EBIT divided by average attributable capital employed.
Attributable underlying EBIT excludes the underlying EBIT of non-
controlling interests.
Net debt
Net debt is calculated as total borrowings less variable vessel lease
contracts that are priced with reference to a freight index, and cash
and cash equivalents (including derivatives that provide an economic
hedge of net debt, see note 24, but excluding the impact of the debit
valuation adjustment on these derivatives, explained in note 21). A
reconciliation to the Consolidated balance sheet is provided within
note 21 to the Consolidated financial statements.
Capital employed is defined as net assets excluding net debt, vessel
lease contracts that are priced with reference to a freight index, the
debit valuation adjustment attributable to derivatives hedging net debt
and financial asset investments. Attributable capital employed
excludes capital employed of non-controlling interests. Average
attributable capital employed is calculated by adding the opening and
closing attributable capital employed for the relevant period and
dividing by two.
Capital expenditure (capex)
Capital expenditure is defined as cash expenditure on property, plant
and equipment, including related derivatives, and is presented net of
proceeds from disposal of property, plant and equipment and includes
direct funding for capital expenditure from non-controlling interests in
order to match more closely the way in which it is managed.
A reconciliation to ‘Expenditure on property, plant and equipment’, the
closest equivalent IFRS measure to capital expenditure, is provided
within note 13 to the Consolidated financial statements.
Following the adoption of the amendment to IAS 16 Proceeds before
intended use in 2022, operating cash flows generated by operations
that have not yet reached commercial production are presented in
Cash flows from operating activities in the Consolidated cash flow
statement and no longer included in capital expenditure.
Attributable ROCE is also used as an incentive measure in executives’
remuneration and is predicated upon the achievement of ROCE
targets in the final year of a three year performance period.
A reconciliation to ‘Profit/(loss) before net finance income/(costs)
and tax’, the closest equivalent IFRS measure to underlying EBIT,
is provided within note 2 to the Consolidated financial statements.
A reconciliation to ‘Net assets’, the closest equivalent IFRS measure
to capital employed, is provided within note 10 to the Consolidated
financial statements. The table below reconciles underlying EBIT and
capital employed to attributable underlying EBIT and average
attributable capital employed by segment.
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Attributable ROCE %
2023
20
6
15
(3)
34
27
81
n/a
n/a
16
2022
16
24
86
11
28
85
138
n/a
n/a
30
322
Anglo American plc
Integrated Annual Report 2023
Other information
Alternative performance measures
US$ million
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
US$ million
Copper
Nickel
Platinum Group Metals
De Beers
Iron Ore
Steelmaking Coal
Manganese
Crop Nutrients
Corporate and other
Less:
Non-
controlling
interests’
share of
underlying
EBIT
(608)
—
(227)
29
Underlying
EBIT
2,451
62
855
(252)
Attributable
underlying
EBIT
1,843
Opening
attributable
capital
employed
8,909
62
628
(223)
3,549
(1,044)
2,505
822
145
(61)
(403)
—
(2)
—
34
822
143
(61)
(369)
1,393
3,915
7,089
7,245
2,837
210
489
492
2023
Less:
Non-
controlling
interests’
share of
closing
capital
employed
(5,016)
—
(960)
(1,181)
(1,391)
—
—
—
(16)
Closing
attributable
capital
employed
9,293
Average
attributable
capital
employed
9,101
588
4,215
6,076
7,653
3,364
141
1,309
1,224
991
4,065
6,583
7,449
3,101
176
899
858
Closing
capital
employed
14,309
588
5,175
7,257
9,044
3,364
141
1,309
1,240
7,168
(1,818)
5,350
32,579
42,427
(8,564)
33,863
33,223
Less:
Non-
controlling
interests’
share of
underlying
EBIT
(286)
—
(896)
(171)
(952)
—
(3)
—
14
Attributable
underlying
EBIT
1,309
Opening
attributable
capital
employed
(restated)(1)
7,307
Closing
capital
employed
(restated)(1)
13,661
317
3,156
823
2,010
2,369
309
(45)
(579)
1,285
3,411
7,256
7,169
2,712
238
1,563
406
1,393
4,753
8,218
8,488
2,837
210
489
492
Underlying
EBIT
1,595
317
4,052
994
2,962
2,369
312
(45)
(593)
Less:
Non-
controlling
interests’
share of
closing capital
employed
(restated)(1)
(4,752)
—
(838)
(1,129)
(1,243)
—
—
—
—
2022
Closing
attributable
capital
employed
(restated)(1)
8,909
Average
attributable
capital
employed
(restated)(1)
8,108
1,393
3,915
7,089
7,245
2,837
210
489
492
1,339
3,663
7,173
7,207
2,775
224
1,026
448
11,963
(2,294)
9,669
31,347
40,541
(7,962)
32,579
31,963
(1) Comparative figures are restated for the adoption of the amendment to IAS 12, see note 39A.
Attributable free cash flow
Attributable free cash flow is calculated as ‘Cash flows from
operations’ plus dividends received from associates, joint ventures and
financial asset investments, less capital expenditure, less expenditure
on non-current intangible assets (excluding goodwill), less tax cash
payments excluding tax payments relating to disposals, less net
interest paid including interest on derivatives hedging net debt, less
dividends paid to non-controlling interests.
A reconciliation of ‘Cash flows from operations’, the closest equivalent
IFRS measure, is provided on page 92 of the Group financial review.
Sustaining attributable free cash flow
Sustaining attributable free cash flow is used to measure the amount
of cash available to finance returns to shareholders or growth after
servicing debt, providing a return to minority shareholders and meeting
the capex commitments needed to sustain the current production
base of existing assets. Sustaining attributable free cash flow is also
used as an incentive measure in executives’ remuneration. It is
calculated as attributable free cash flow prior to growth capex and
expenditure on non-current intangible assets (excluding goodwill).
A reconciliation of ‘Cash flows from operations’, the closest equivalent
IFRS measure, is provided on page 92 of the Group financial review.
Growth capital expenditure in 2023 and 2022 principally related to
Quellaveco and Woodsmith.
Anglo American plc
Integrated Annual Report 2023
Other information
Alternative performance measures
323
Non-financial APMs
Some of our measures are not reconciled to IFRS either because
they include non-financial information, there is no meaningful IFRS
comparison or the purpose of the measure is not typically covered
by IFRS.
Volume and cash cost improvements
The Group uses an underlying EBITDA waterfall to understand its year-
on-year underlying EBITDA performance. The waterfall isolates the
impact of uncontrollable factors in order that the real year-on-year
improvement in performance can be seen by the user.
Three variables are normalised, in the results of subsidiaries and joint
operations, for:
– Price: The movement in price between comparative periods is
removed by multiplying current year sales volume by the movement
in realised price for each product group.
– Foreign exchange: The year-on-year movement in exchange is
removed from the current year non-US dollar cost base i.e. costs are
restated at prior year foreign exchange rates. The non-US dollar
cash cost base excludes costs which are price linked (e.g. purchase
of concentrate from third-party PGMs providers, third-party diamond
purchases).
– Inflation: CPI is removed from cash costs, restating these costs at the
pricing level of the base year.
The remaining variances in the underlying EBITDA waterfall are in real
US dollar terms for the base year i.e. for a waterfall comparing 2023
with 2022, the sales volume and cash cost variances exclude the
impact of price, foreign exchange and CPI and are hence in real 2022
terms. This allows the user of the waterfall to understand the underlying
real movement in sales volumes and cash costs on a consistent basis.
Copper equivalent production
Copper equivalent production, expressed as copper equivalent
tonnes, shows changes in underlying production volume. It is
calculated by expressing each commodity’s volume as revenue,
subsequently converting the revenue into copper equivalent units by
dividing by the copper price (per tonne). Long term forecast prices
(and foreign exchange rates where appropriate) are used, in order that
period-on-period comparisons exclude any impact for movements
in price.
When calculating copper equivalent production, sales from non-
mining activities are excluded. Volume from projects in pre-commercial
production are included.
Unit cost
Unit cost is the direct cash cost including direct cash support costs
incurred in producing one unit of saleable production. Unit cost relates
to equity production only.
For iron ore and coal, unit costs shown are FOB i.e. cost on board at
port. For copper and nickel, they are shown at C1 i.e. after inclusion of
by-product credits and logistics costs. For PGMs and diamonds, unit
costs include all direct expensed cash costs incurred i.e. excluding,
among other things, market development activity, corporate overhead
etc. Royalties are excluded from all unit cost calculations.
Copper equivalent unit cost
Copper equivalent unit cost is the cost incurred to produce one tonne
of copper equivalent. Only the cost incurred in mined output from
subsidiaries and joint operations is included, representing direct costs
in the Consolidated income statement controllable by the Group. Costs
and volumes from associates and joint ventures are excluded, as are
those from operations that are not yet in commercial production, that
deliver domestic production, and those associated with third-party
volume purchases of diamonds and PGMs concentrate.
When calculating copper equivalent unit cost, unit costs for each
commodity are multiplied by relevant production, combined and then
divided by the total copper equivalent production, to get a copper
equivalent unit cost i.e. the cost of mining one tonne of copper
equivalent. The metric is in US dollars and, where appropriate, long
term foreign exchange rates are used to convert from local currency to
US dollars.
324
Anglo American plc
Integrated Annual Report 2023
Other information
Production statistics
The figures below include the entire output of consolidated entities and the Group’s attributable share of joint operations, associates and joint
ventures where applicable, except for De Beers’ joint operations which are quoted on a 100% basis.
Copper (tonnes)(1)
Copper production
Copper sales
Copper Chile
Los Bronces mine(2)
Ore mined
Ore processed – Sulphide
Ore grade processed – Sulphide (% TCu)(3)
Production – Copper in concentrate
Production – Copper cathode
Total production
Collahuasi 100% basis (Anglo American share 44%)
Ore mined
Ore processed – Sulphide
Ore grade processed – Sulphide (% TCu)(3)
Production – Copper in concentrate
Anglo American’s 44% share of copper production for Collahuasi
El Soldado mine(2)
Ore mined
Ore processed – Sulphide
Ore grade processed – Sulphide (% TCu)(3)
Production – Copper in concentrate
Chagres Smelter(2)
Ore smelted(4)
Production
Total copper production(5)
Total payable copper production
Total copper sales volumes
Total payable sales volumes
Third party sales(6)
Copper Peru
Quellaveco mine(7)
Ore mined
Ore processed – Sulphide
Ore grade processed – Sulphide (% TCu)(3)
Total copper production
Total payable copper production
Total copper sales volumes
Total payable copper sales volumes
Nickel (tonnes)(8)
Barro Alto
Ore mined
Ore processed
Ore grade processed – %Ni
Production
Codemin
Ore mined
Ore processed
Ore grade processed – %Ni
Production
Total nickel production
Nickel sales volumes
See page 326 for footnotes.
2023
2022
826,200
843,300
664,500
640,500
50,430,300
46,756,500
43,763,800
45,943,600
0.51
184,800
30,700
215,500
0.62
231,500
39,400
270,900
60,577,500
82,222,600
57,351,800
57,316,400
1.17
573,200
252,200
1.11
570,700
251,100
7,656,200
6,779,300
6,799,500
7,548,500
0.72
39,500
0.65
40,200
113,500
110,100
507,200
487,600
504,800
485,000
443,700
100,600
97,500
562,200
540,200
563,000
540,600
422,300
42,047,000
27,431,000
39,764,900
11,719,400
0.96
319,000
308,400
338,500
327,000
1.12
102,300
98,900
77,500
74,800
4,300,800
3,424,800
2,476,400
2,421,600
1.45
31,800
1.49
32,700
27,800
800
599,500
531,100
1.41
8,200
40,000
39,800
1.44
7,100
39,800
39,000
Anglo American plc
Integrated Annual Report 2023
Other information
Production statistics
325
Platinum Group Metals
Produced PGMs (’000 oz)(9)
Own-mined
Mogalakwena
Amandelbult
Unki
Mototolo
Modikwa – joint operation(10)
Kroondal – joint operation(11)
Purchase of concentrate
Modikwa – joint operation(10)
Kroondal – joint operation(11)
Third parties
Refined production(9)(12)
Platinum (’000 oz)
Palladium (’000 oz)
Rhodium (’000 oz)
Other PGMs and Gold (’000 oz)
Nickel (tonnes)
Tolled material (‘000 oz)(13)
4E Head grade (g/tonne milled)(14)
PGMs sales – own-mined and purchase of concentrate(9)
PGMs sales – third party trading(9)(15)
De Beers(16)
Carats recovered (’000 carats) 100% basis
Jwaneng
Orapa(17)
Botswana
Debmarine Namibia
Namdeb (land operations)
Namibia
Venetia
South Africa
Gahcho Kué (51% basis)
Canada
Total carats recovered
Sales volumes
Total sales volume (100%) (Mct)(18)
Consolidated sales volume (Mct)(18)
Number of Sights (sales cycles)(18)
Iron Ore (‘000 tonnes)
Iron Ore production(19)
Iron Ore sales(19)
Kumba production(19)
Lump
Fines
Kumba production by mine
Sishen
Kolomela
Kumba sales volumes(19)(20)
Export iron ore(20)
Minas-Rio production
Pellet feed (19)
Minas-Rio sales
Export – pellet feed (wet basis)(19)
See page 326 for footnotes.
2023
2022
3,806.1
2,460.2
973.5
634.2
243.8
288.7
145.4
174.6
4,024.0
2,649.2
1,026.2
712.5
232.1
289.9
144.5
244.0
1,345.9
1,374.8
145.4
174.6
1,025.9
1,749.1
1,268.6
225.6
557.3
21,800
620.6
3.22
3,925.3
4,336.4
13,329
11,371
24,700
1,859
468
2,327
2,004
2,004
2,834
2,834
144.5
244.0
986.3
1,782.9
1,198.5
249.2
600.5
21,300
622.6
3.27
3,861.3
1,849.9
13,445
10,697
24,142
1,725
412
2,137
5,515
5,515
2,815
2,815
31,865
34,609
27.4
24.7
10
59,926
61,488
35,715
23,290
12,425
25,421
10,294
33.7
30.4
10
59,281
57,985
37,699
24,671
13,028
27,017
10,682
37,172
36,670
24,211
21,582
24,316
21,315
326
Anglo American plc
Integrated Annual Report 2023
Other information
Production statistics
Steelmaking Coal (‘000 tonnes)
Steelmaking Coal production(21)(22)(23)
Hard coking coal(22)
PCI/SSCC
Export thermal coal
Steelmaking Coal sales by product(22)
Hard coking coal(22)
PCI/SSCC
Export thermal coal
Steelmaking Coal production by operation(21)(22)(23)
Moranbah(22)
Grosvenor
Capcoal (including Aquila)(22)(24)
Dawson(23)
Jellinbah
Manganese (tonnes)
Samancor production
Manganese ore(25)
Sales volumes
Manganese ore
2023
2022
16,001
12,239
3,762
1,083
14,940
11,566
3,374
1,673
16,001
3,132
2,797
4,138
2,902
3,032
15,007
12,088
2,919
1,645
14,683
11,311
3,372
1,681
15,007
3,395
3,037
3,446
2,087
3,042
3,670,600
3,740,700
3,725,000
3,596,200
(1) Excludes copper production from the Platinum Group Metals business.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is
50.1%. Production is stated at 100% as Anglo American consolidates these operations.
(3) TCu = total copper. Includes third-party concentrate.
(4) Copper contained basis.
(5) Total copper production includes Anglo American’s 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
(7) Anglo American ownership interest of Quellaveco is 60%. Production is stated at 100% as
Anglo American consolidates this operation.
(8) Excludes nickel production from the Platinum Group Metals business.
(9) Ounces refer to troy ounces. PGMs consists of 5E+gold (platinum, palladium, rhodium,
ruthenium and iridium plus gold).
(10) Modikwa is a 50% joint operation. The 50% equity share of production is presented under
‘Own mined’ production. Anglo American Platinum purchases the remaining 50% of
production, which is presented under ‘Purchase of concentrate'.
(11) Kroondal was a 50% joint operation until 1 November 2023. Up until this date, the 50%
equity share of production was presented under ‘Own mined’ production and the
remaining 50% of production, that Anglo American Platinum purchased, was presented
under ‘Purchase of concentrate'. Upon the disposal of our 50% interest, Kroondal
transitioned to a 100% third-party POC arrangement, whereby 100% of production will be
presented under ‘Purchase of concentrate: Third parties' until it transitions to a toll
arrangement, expected at the end of H1 2024.
(12) Refined production excludes toll material.
(13) Tolled volume measured as the combined content of platinum, palladium, rhodium and
gold, reflecting the tolling agreements in place.
(14) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and
gold, excludes tolled material. Minor metals are excluded due to variability.
(15) Relates to sales of metal not produced by Anglo American operations, and includes metal
lending and borrowing activity.
(16) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint operation
which is on an attributable 51% basis.
(17) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(18) Consolidated sales volumes exclude De Beers Group’s JV partners’ 50% proportionate
share of sales to entities outside De Beers Group from the Diamond Trading Company
Botswana and the Namibia Diamond Trading Company, which are included in total sales
volume (100% basis).
(19) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes.
Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with
~9% moisture.
(20) Sales volumes could differ to Kumba’s standalone results due to sales to other
Group companies.
(21) Anglo American’s attributable share of saleable production.
(22) Includes production relating to third-party product purchased and processed at Anglo
American’s operations.
(23) Steelmaking coal production figures may include some product sold as thermal coal.
(24) Includes production from the Aquila longwall operation from February 2022. Prior to then,
includes production from the Grasstree longwall operation.
(25) Anglo American’s 40% attributable share of saleable production.
Anglo American plc
Integrated Annual Report 2023
Other information
327
Quarterly production statistics
Copper (tonnes)(1)
Copper Chile
Copper Peru
Nickel (tonnes)(2)
PGMs M&C (’000 oz)(3)
PGMs refined (’000 oz)(3)(4)
Platinum (’000 oz)
Palladium (’000 oz)
Rhodium (’000 oz)
Other PGMs and gold (’000 oz)(3)
Nickel (tonnes)
De Beers(5)
Carats recovered (’000 carats)
100% basis
Diamonds
Iron Ore (‘000 tonnes)(6)
Iron ore – Kumba
Iron ore – Minas-Rio
Steelmaking Coal (‘000 tonnes)(7)
Hard Coking Coal
PCI/SSCC
Export thermal Coal
Manganese (tonnes)
Manganese ore(8)
31 December
2023
229,900
30 September
2023
209,100
30 June
2023
209,100
31 March
2023
178,100
31 December
2022
244,300
31 December 2023 v
30 September 2023
10 %
31 December 2023 v
31 December 2022
(6) %
Quarter ended
% Change (Quarter ended)
136,200
121,600
130,800
118,600
162,300
93,700
87,500
78,300
59,500
82,000
11,100
9,300
9,900
9,700
10,200
932.2
1,029.6
1,191.1
565.2
400.0
61.3
164.6
7,000
909.7
428.5
285.5
57.1
138.6
5,400
943.1
1,073.8
489.4
352.6
68.4
163.4
6,100
901.2
626.0
266.0
230.5
38.8
90.7
3,300
990.4
877.2
391.2
278.5
51.7
155.8
4,800
12 %
7 %
19 %
(9) %
31 %
32 %
40 %
7 %
19 %
30 %
(16) %
14 %
9 %
(6) %
36 %
44 %
44 %
19 %
6 %
46 %
7,937
7,408
7,590
8,930
8,155
7 %
(3) %
13,806
15,397
15,647
15,076
15,682
7,234
6,572
4,756
3,804
952
34
9,736
5,661
4,356
3,235
1,121
284
9,320
6,327
3,356
2,358
998
481
9,425
5,651
3,533
2,842
691
284
9,961
5,721
4,650
3,647
1,003
428
(10) %
(26) %
16 %
9 %
18 %
(15) %
(88) %
(12) %
(27) %
15 %
2 %
4 %
(5) %
(92) %
847,800
1,012,100
969,800
840,900
984,300
(16) %
(14) %
(1) Copper production shown on a contained metal basis. Reflects copper production
from the Copper operations in Chile and Peru only (excludes copper production from
the Platinum Group Metals business).
(2) Excludes nickel production from the Platinum Group Metals business.
(3) Ounces refer to troy ounces. PGMs consists of 5E+gold (platinum, palladium, rhodium,
ruthenium and iridium plus gold).
(4) Refined production excludes toll refined material.
(5) De Beers Group production is on a 100% basis, except for the Gahcho Kué joint
operation which is on an attributable 51% basis.
(6) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes.
Kumba product is shipped with ~1.6% moisture and Minas-Rio product is shipped with
~9% moisture.
(7) Anglo American’s attributable share of saleable production. Steelmaking coal
production may include some product sold as thermal coal and includes production
relating to third-party product purchased and processed at Anglo American’s
operations.
(8) Anglo American’s 40% attributable share of saleable production.
328
Anglo American plc
Integrated Annual Report 2023
Other information
Non-financial data
Non-financial data
Anglo American plc data
Safety(1)
Work-related fatalities(2)(3)
Fatal-injury frequency rate (FIFR)(2)(3)
Total recordable injury frequency rate (TRIFR)(2)
Lost-time injury frequency rate (LTIFR)(2)
Occupational health(1)
New cases of occupational disease (NCOD)(2)
Environment(1)
Total greenhouse gas (GHG) emissions – Scopes 1 and 2 (Mt CO2e)(2)
Total energy consumed (million GJ)(2)
Fresh water withdrawals (million m3)
People
Number of employees (’000)(4)
Women in senior management(5)
Historically Disadvantaged South Africans in management(6)
Voluntary turnover (%)(7)
Social
Community Social Investment spend (total in US$ million)(8)
Community Social Investment spend (% of underlying EBIT)(8)
Number of jobs supported off site(9)
Select Business data
Safety(1)
Work-related fatalities – Copper Chile
Work-related fatalities – Copper Peru
Work-related fatalities – Nickel
Work-related fatalities – PGMs
Work-related fatalities – De Beers
Work-related fatalities – Iron Ore – Kumba
Work-related fatalities – Iron Ore – IOB
Work-related fatalities – Coal – Steelmaking Coal
Work-related fatalities – Coal – Thermal Coal South Africa
Work-related fatalities – Crop Nutrients(10)
Work-related fatalities – Corporate and Other
TRIFR – Copper Chile
TRIFR – Copper Peru
TRIFR – Nickel
TRIFR – PGMs
TRIFR – De Beers
TRIFR – Iron Ore – Kumba
TRIFR – Iron Ore – IOB
TRIFR – Coal – Steelmaking Coal
TRIFR – Coal – Thermal Coal South Africa
TRIFR – Crop Nutrients(10)
TRIFR – Corporate and Other
See next page for footnotes.
2023
2022
2021
2020
2019
3
0.010
1.78
1.23
2
0.008
2.19
1.40
2
0.008
2.24
1.52
2
0.010
2.14
1.34
4
0.017
2.21
1.36
15
5
16
30
39
12.5
89
38
60
29%
85%
3.5%
13.3
83
36
59
29%
71%
3.6%
14.5
84
37
64
29%
73%
3.5%
15.4
78
37
65
27%
68%
2.8%
148
2
175
2
138
1
125
2
139,308
114,534
104,860
92,397
2
—
—
—
—
1
—
—
n/a
—
—
1.14
1.47
5.65
1.61
2.05
0.98
1.32
4.39
n/a
1.96
1.58
—
—
—
—
1
—
—
1
n/a
—
—
1.42
2.23
3.67
2.34
2.19
1.55
1.60
5.63
n/a
1.90
0.37
—
1
—
1
—
—
—
—
—
—
—
1.55
2.93
1.26
2.60
2.03
0.80
2.24
4.12
1.57
2.59
0.97
—
—
—
1
—
—
—
—
1
—
—
1.58
2.20
1.51
2.40
2.18
1.74
1.87
4.72
1.55
0.81
0.63
16.9
83
43
63
24%
65%
2.9%
114
2
n/a
1
1
—
—
—
—
—
1
1
n/a
—
1.15
0.91
2.75
2.50
3.07
2.06
1.48
6.20
1.56
n/a
0.17
Anglo American plc
Integrated Annual Report 2023
Other information
Non-financial data
329
2023
2022
2021
2020
2019
0.4
0.2
1.1
4.3
0.4
1.0
0.2
4.9
n/a
0.0
0.0
12.6
6.3
20.6
20.6
3.8
8.9
5.4
10.2
n/a
0.3
0.2
32.6
20.0
6.9
37.5
7.3
9.9
27.5
32.8
n/a
0.1
0.0
0.4
0.2
1.1
4.1
0.5
1.0
0.2
5.8
n/a
0.0
0.0
13.0
3.4
20.3
18.9
4.2
9.0
5.1
9.2
n/a
0.1
0.1
34.9
8.7
7.0
42.2
7.2
11.4
41.4
31.8
n/a
0.1
1.9
0.4
0.1
1.3
4.5
0.4
1.0
0.3
6.4
0.8
0.0
0.0
12.8
1.6
20.8
20.8
4.2
8.7
5.1
9.3
3.1
0.2
0.1
33.5
0.7
7.0
42.6
11.6
11.2
32.2
20.9
14.9
0.1
1.8
1.1
0.1
1.2
3.9
0.4
0.9
0.2
8.2
0.8
0.0
0.0
11.3
0.6
21.3
18.1
3.8
8.1
5.2
8.5
3.5
0.1
0.1
35.8
1.5
8.0
43.9
10.1
10.6
35.3
21.0
31.0
0.2
0.0
1.2
0.2
1.2
4.4
0.5
1.0
0.2
6.9
0.9
n/a
0.0
12.3
2.0
20.2
20.1
4.5
8.8
5.1
10.1
3.5
n/a
0.1
24.7
n/a
6.3
47.4
9.9
10.6
28.8
17.9
34.2
n/a
n/a
4,000
1,000
1,000
27,000
10,900
6,700
2,600
2,500
n/a
1,000
3,200
4,400
1,000
1,400
26,500
10,500
6,700
2,600
2,000
n/a
500
3,000
4,300
750
1,400
31,400
10,000
6,100
2,600
1,900
n/a
600
4,700
3,800
400
1,400
31,500
10,700
6,200
2,500
2,000
4,600
300
6,900
4,000
300
1,000
31,000
9,000
6,000
3,000
2,000
5,000
n/a
2,000
(7) The number of people who resigned as a percentage of the total work force, excluding
contractors.
(8) CSI spend is the sum of donations for charitable purposes and community investment
(which includes cash and in-kind donations and staff time) as well as investments in
commercial initiatives with public benefit (such as enterprise development).
(9) The number of jobs supported includes existing jobs (in activities supported by the
intervention) and newly created jobs through Anglo American’s various community
Livelihoods’ programmes. Jobs supported are measured as full time equivalent jobs.
(10) Comparative data for Crop Nutrients prior to 2020 is not presented as the acquisition
of Sirius Minerals Plc was completed in 2020.
Environment(1)
GHG emissions – Mt CO2e – Copper Chile
GHG emissions – Mt CO2e – Copper Peru
GHG emissions – Mt CO2e – Nickel
GHG emissions – Mt CO2e – PGMs
GHG emissions – Mt CO2e – De Beers
GHG emissions – Mt CO2e – Iron Ore – Kumba
GHG emissions – Mt CO2e – Iron Ore – IOB
GHG emissions – Mt CO2e – Coal – Steelmaking Coal
GHG emissions – Mt CO2e – Coal – Thermal Coal South Africa
GHG emissions – Mt CO2e – Crop Nutrients(10)
GHG emissions – Mt CO2e – Corporate and Other
Energy consumption – million GJ – Copper Chile
Energy consumption – million GJ – Copper Peru
Energy consumption – million GJ – Nickel
Energy consumption – million GJ – PGMs
Energy consumption – million GJ – De Beers
Energy consumption – million GJ – Iron Ore – Kumba
Energy consumption – million GJ – Iron Ore – IOB
Energy consumption – million GJ – Coal – Steelmaking Coal
Energy consumption – million GJ – Coal – Thermal Coal South Africa
Energy consumption – million GJ – Crop Nutrients(10)
Energy consumption – million GJ – Corporate and Other
Total water withdrawals – million m3 – Copper Chile
Total water withdrawals – million m3 – Copper Peru
Total water withdrawals – million m3 – Nickel
Total water withdrawals – million m3 – PGMs
Total water withdrawals – million m3 – De Beers
Total water withdrawals – million m3 – Iron Ore – Kumba
Total water withdrawals – million m3 – Iron Ore – IOB
Total water withdrawals – million m3 – Coal – Steelmaking Coal
Total water withdrawals – million m3 – Coal – Thermal Coal South Africa
Total water withdrawals – million m3 – Crop Nutrients(10)
Total water withdrawals – million m3 – Corporate and Other
People(4)
Number of employees – Copper Chile
Number of employees – Copper Peru
Number of employees – Nickel
Number of employees – PGMs
Number of employees – De Beers
Number of employees – Iron Ore – Kumba
Number of employees – Iron Ore – IOB
Number of employees – Coal – Steelmaking Coal
Number of employees – Coal – Thermal Coal South Africa
Number of employees – Crop Nutrients(10)
Number of employees – Corporate and Other
(1) Data relates to subsidiaries and joint operations over which Anglo American has
management control. Data excludes De Beers’ joint operations in Namibia and
Botswana. See page 107 of the Anglo American plc Sustainability Report 2023 for
the full list of entities within the reporting scope. Divested businesses are included up
until the point of divestment, with the exception of total Group GHG emissions,
energy consumed and total water withdrawals where current and historical data has
been adjusted to exclude Thermal Coal South Africa, which was divested in May
2021.
(2) See pages 316–317 for definitions and basis of calculation.
(3) The work-related fatal injuries and FIFR figures presented for 2021 have been restated
to reflect the death of an employee in April 2022, following a fall-related injury in
November 2021.
(4) Average number of employees for 2023–2020 excludes contractors and associates
and joint ventures employees, and includes a share of employees within joint
operations, based on shareholding. Data for 2019 is presented on the same basis,
with the exception of Debswana (De Beers), where employee numbers are included
at 19.2%, reflecting Anglo American’s economic interest. PGMs employee numbers
for 2022 have been restated to exclude contractors.
(5) Female representation within the Executive Leadership Team and those reporting
to them.
(6) Historically Disadvantaged South African employees within bands seven and above
divided by the total number of South African employees in bands seven and above.
330
Anglo American plc
Integrated Annual Report 2023
Other information
Directors’ report
This section includes certain disclosures which are required by law to
be included in the Directors’ report.
In accordance with the Companies Act 2006 (Companies Act), the
following items have been reported in other sections of the Integrated
Annual Report and are included in this Directors’ report by reference:
– Details of the directors of the Company can be found on pages
142–145
– Directors’ interests in shares at 31 December 2023 and any
changes thereafter, can be found on page 202–203 of the directors’
remuneration report
– Events occurring after the end of the year are set out in note 31 to
the financial statements on page 274
– The Strategic Report on pages 2–138 gives a fair review of the
business and an indication of likely future developments and fulfils
the requirements set out in section 414C of the Companies Act
– Details of the Group’s governance arrangements and its compliance
with the UK Corporate Governance Code (the Code) can be found
on pages 139–211
– Comprehensive details of the Group’s approach to financial risk
management are given in note 25 to the financial statements on
pages 261–263
– The Group’s disclosure of its greenhouse gas emissions can be
found on page 55. The Group’s Streamlined Energy and Carbon
Reporting (SECR) disclosures can be found on page 138
– The Group’s disclosures related to the recommendations of the
Taskforce on Climate-Related Financial Disclosures (TCFD) can be
found on pages 132–137
facilities for the period of at least 12 months from the date of approval
of the financial statements. For this reason the Group continues to
adopt the going concern basis in preparing its financial statements.
Dividends
An interim dividend of US$0.55 per ordinary share was paid on
26 September 2023. The directors are recommending that a final
dividend of US$0.41 per ordinary share be paid on 3 May 2024 to
ordinary shareholders on the register at the close of business on
15 March 2024 subject to shareholder approval at the AGM to be held
on 30 April 2024. This would bring the total dividend in respect of 2023
to US$0.96 per ordinary share. In accordance with the UK-adopted
International Accounting Standards, the final dividend will be
accounted for in the financial statements for the year ended
31 December 2024.
The Anglo American Employee Benefit Trust (EBT) holds shares to
facilitate the operation of certain of the Group’s share option and share
incentive schemes (share plans). The EBT has waived the right
to receive dividends on all unallocated shares not allocated to
dividend bearing share awards.
Share capital
The Company’s issued share capital as at 31 December 2023 is set
out in note 26 on page 264–265.
Significant shareholdings
Taking into account the information available to the Company as
at 21 February 2024, the table below shows the Company’s
understanding of interests in 3% or more of the Total Voting Rights
attaching to its issued ordinary share capital:
– Details of employee engagement can be found on pages 70–75
Company
and 161–162
Public Investment Corporation
– Details of stakeholder engagement can be found on pages 16–19
BlackRock Inc
Number of
shares
Percentage of
voting rights
93,551,783
84,968,927
6.86
6.05
47,275,613
3.37
42,166,686
3.01
Tarl Investment Holdings (RF) Proprietary
Limited(1)
Epoch Two Investment Holdings (RF)
Proprietary Limited(1)
(1) Epoch Two Investment Holdings (RF) Proprietary Limited (Epoch Two) and Tarl Investment
Holdings (RF) Proprietary Limited (Tarl) are two of the independent companies that
have purchased shares as part of Anglo American’s 2006 share buyback programme.
Epoch Two and Tarl have waived their right to vote all the shares they hold, or will hold,
in Anglo American plc.
Sustainable development
The Sustainability Report 2023 will be published on the Group’s
website on 4 March 2024.
This report focuses on the safety, health, sustainable development and
environmental performance of the Group’s managed operations, its
performance with regard to our Code of Conduct, and the operational
dimensions of its social programmes.
Audit information
The directors confirm that, so far as they are aware, there is no relevant
audit information of which the auditor is unaware, that all directors
have taken all reasonable steps to make themselves aware of any
relevant audit information and to establish that the auditor is aware of
that information.
and 161–163.
Going concern
The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are set out in the Group financial review on pages
90-93. The Group’s net debt (including related hedges) at
31 December 2023 was $10.6 billion (2022: $6.9 billion). During the
first half of 2023, the Group issued $2.0 billion of bond debt. In March
2023, the Group issued €500 million 4.5% Senior Notes due 2028,
€500 million 5.0% Senior Notes due 2031 and, in May 2023,
$900 million 5.5% Senior Notes due 2033. In the second half of 2023,
the Group refinanced its $4.7 billion revolving credit facility maturing in
March 2025, to a one year $1 billion facility maturing in November
2024, and a $3.7 billion five year facility maturing in November 2028.
The Group’s liquidity position (defined as cash and undrawn
committed facilities) of $13.2 billion at 31 December 2023 remains
strong. Further details of borrowings and facilities are set out in note 22
and note 25 on pages 255 and 261–263 respectively, and net debt is
set out in note 21 on page 254.
The directors have considered the Group’s cash flow forecasts for the
period to the end of December 2025 under base and downside
scenarios, with reference to the Group’s principal risks as set out within
the Group viability statement on pages 79–80. In the downside
scenario modelled (including pricing and production downsides,
alongside a significant operational incident), the Group maintains
sufficient liquidity throughout the period of assessment without the use
of mitigating actions.
The Board is satisfied that the Group’s forecasts and projections, taking
account of reasonably possible changes in trading performance, show
that the Group will be able to operate within the level of its current
Anglo American plc
Integrated Annual Report 2023
Other information
Directors’ report
331
Disclosure table pursuant to Listing Rule 9.8.4C
Listing Rule
Information to be included
Disclosure
9.8.4(1)
Interest capitalised by the
Group
See note 4, page 230
9.8.4(2) Unaudited financial
None
information (LR 9.2.18)
9.8.4(4)
Long term incentive scheme
only involving a director
(LR 9.4.3)
None
9.8.4(5) Directors’ waivers of
None
emoluments
9.8.4(6) Directors’ waivers of future
None
emoluments
9.8.4(7) Non pro rata allotments for
None
cash (issuer)
9.8.4(8) Non pro rata allotments for
None
cash (major subsidiaries)
9.8.4(9)
Listed company is a
subsidiary of another
company
Not applicable
9.8.4(10) Contracts of significance
None
involving a director
9.8.4(11) Contracts of significance
Not applicable
involving a controlling
shareholder
9.8.4(12) Waivers of dividends
9.8.4(13) Waivers of future dividends
9.8.4(14) Agreement with a controlling
shareholding LR
9.2.2AR(2)(a)
See ‘Dividends’ paragraph on
page 330
See ‘Dividends’ paragraph on
page 330
Not applicable
Employment and other policies
The Group’s key operating businesses are empowered to manage
within the context of the different legislative and social demands of
the diverse countries in which those businesses operate, subject to the
standards embodied in Anglo American’s Code of Conduct. Within all
the Group’s businesses, the safe and effective performance of
employees and the maintenance of positive employee relations are
of fundamental importance. Managers are charged with ensuring that
the following key principles are upheld:
– Adherence to national legal standards on employment and
workplace rights at all times
– Adherence to the International Labour Organization’s core labour
rights, including: prohibition of child labour; prohibition of inhumane
treatment of employees and any form of forced labour, physical
punishment or other abuse; recognition of the right of our employees
to freedom of association and the promotion of workplace equality;
and the elimination of all forms of unfair discrimination
– Continual promotion of safe and healthy working practices
– Provision of opportunities for employees to enhance their work
related skills and capabilities
– Adoption of fair and appropriate procedures for determining terms
and conditions of employment.
It is the Group’s policy that everybody should have full and fair
consideration for all vacancies. Employment is considered on merit
and with regard only to the ability of any applicant to carry out the role.
We endeavour to retain the employment of, and arrange suitable
retraining, for any employees in the workforce who become disabled
during their employment. Where possible we will adjust a person’s
working environment to enable them to stay in our employment.
The Group promotes an inclusive and diverse environment where
every colleague is valued and respected for who they are, and has
the opportunity to fulfil their potential. The Group is focused on
providing a workplace where everyone can thrive and has
introduced a number of Group-wide policies to encourage this.
The Group’s inclusion and diversity policy reflects its commitment
as a signatory to the United Nations Global Compact and is
aligned both to the labour rights principles set out in the
International Labour Organization core conventions and with the
United Nations Sustainable Development Goals. The Group has
also introduced policies related to bullying, harassment and
victimisation and recognising and responding to domestic
violence, which clearly states its zero tolerance to such behaviours,
along with a Group-wide flexible working policy and family friendly
and carer policy recognising changing societal needs.
Further, the Group is committed to treating employees at all levels
with respect and consideration, to investing in their development
and to ensuring that their careers are not constrained by
discrimination or arbitrary barriers.
Our Code of Conduct is supported by a number of policies and
procedures which provide specific guidance to employees on the
behaviour required to reinforce the Group’s Values and uphold the
Group’s commitments to prioritise safety, health and the environment;
treat people with care and respect, conduct business with integrity and
protect its physical assets and information. The Code of Conduct can
be accessed via the Group’s website.
In addition to meeting legal requirements, suppliers to Anglo American
must adhere to the requirements of the Responsible Sourcing
Standard for Suppliers, which is available on the Group’s website and
referenced in contracts. The standard includes a dedicated pillar
providing unambiguous guidance on our expectations of conducting
business fairly and with integrity; including anti-bribery, anti-
competitive, anti-collusive, information security and transparent
business behaviours expected by all supplier partners.
The Business Integrity Policy sets out the Group’s anti-bribery and
corruption commitment by clearly stating that the Group will
neither give nor accept bribes, nor permit others to do so in its
name. The Policy sets out the standards of conduct required
across Anglo American, (including subsidiaries and managed joint
operations), by those with which the Group does business and by
those who work on the Group’s behalf, in combating corrupt behaviour
of all types. The Policy is supported by 11 Prevention of Corruption
Procedures, which have been translated into the main languages that
are used across the Group’s operations.
A dedicated team, operating within a broader risk management and
business assurance team oversees the implementation of the Business
Integrity Policy. Working closely with other corporate functions, and
senior managers in the businesses, the team provides guidance and
support on the implementation and monitoring of the Policy. The team
also assists on bribery and corruption risk identification and
management, and providing online and face-to-face training for
relevant employees, including those in high-risk roles. The internal audit
team regularly provide risk based assurance on the implementation of
the anti-bribery and corruption controls framework.
The Group’s whistleblowing facility, YourVoice, is available to
employees and external stakeholders to confidentially and, if they
choose, anonymously report concerns about behaviour which might
be unethical, unlawful or unsafe, or contrary to the Group’s Values and
Code of Conduct.
Political donations
No political donations were made during 2023. Anglo American has
an established policy of not making donations to, or incurring
expenses for the benefit of, any political party in any part of the
world, including any political party or political organisation as
defined in the Political Parties, Elections and Referendums Act 2000.
332
Anglo American plc
Integrated Annual Report 2023
Other information
Directors’ report
Additional information for shareholders
Set out below is a summary of certain provisions of the Company’s
current Articles of Association (Articles) and applicable English law
concerning companies (the Companies Act) required as a result of the
implementation of the Takeover Directive in English law. This is a
summary only and the relevant provisions of the Articles or the
Companies Act should be consulted if further information is required.
Dividends and distributions
Subject to the provisions of the Companies Act, the Company may, by
ordinary resolution, from time to time declare final dividends not
exceeding the amount recommended by the Board. The Board may
pay interim dividends whenever the financial position of the Company,
in the opinion of the Board, justifies such payment.
The Board may withhold payment of all, or any part of any dividends or
other monies payable in respect of the Company’s shares, from a
person with a 0.25% interest or more (as defined in the Articles) if such
a person has been served with a notice after failing to provide the
Company with information concerning interests in those shares
required to be provided under the Companies Act.
Rights and obligations attaching to shares
The rights and obligations attaching to the shares are set out in the
Articles.
The Articles may only be changed by a special resolution passed by
the shareholders.
Voting
Subject to the Articles generally and to any special rights or restrictions
as to voting attached by or in accordance with the Articles to any class
of shares, on a show of hands every member who is present in person
at a general meeting shall have one vote and, on a poll, every member
who is present in person or by proxy shall have one vote for every share
of which he/she is the holder. It is, and has been for some years, the
Company’s practice to hold a poll on every resolution at shareholder
meetings.
Where shares are held by trustees/nominees in respect of the Group’s
employee share plans and the voting rights attached to such shares
are not directly exercisable by the employees, it is the Company’s
practice that such rights are not exercised by the relevant trustee/
nominee.
Under the Companies Act, members are entitled to appoint a proxy,
who need not be a member of the Company, to exercise all or any of
their rights to attend and to speak and vote on their behalf at a general
meeting or class meeting.
A member may appoint more than one proxy in relation to a general
meeting or class meeting provided that each proxy is appointed to
exercise the rights attached to a different share or shares held by that
member. A member that is a corporation may appoint one or more
individuals to act on its behalf at a general meeting or class meeting as
a corporate representative. Where a shareholder appoints more than
one corporate representative in respect of its shareholding, but in
respect of different shares, those corporate representatives can act
independently of each other, and validly vote in different ways.
Restrictions on voting
No member shall, unless the directors otherwise determine, be entitled
in respect of any share held by him/her to vote either personally or by
proxy at a shareholders’ meeting, or to exercise any other right
conferred by membership in relation to shareholders’ meetings, if any
call or other sum presently payable by him/her to the Company in
respect of that share remains unpaid. In addition, no member shall be
entitled to vote if he/she has been served with a notice after failing to
provide the Company with information concerning interests in those
shares required to be provided under the Companies Act.
Issue of shares
Subject to the provisions of the Companies Act relating to authority
and pre-emption rights and of any resolution of the Company in a UK
general meeting, all unissued shares of the Company shall be at the
disposal of the directors and they may allot, grant options over, or
otherwise dispose of them to such persons at such times, and on such
terms, as they think proper.
Shares in uncertificated form
Any share or class of shares of the Company may be issued or held
(including any shares or class of shares held on the South African
Branch Register or any other overseas branch register of the members
of the Company) on such terms, or in such a way, that: title to it or them
is not, or must not be, evidenced by a certificate; or it or they may or
must be transferred wholly or partly without a certificate. The directors
have power to take such steps as they think fit in relation to: the
evidencing of and transfer of title to uncertificated shares (including in
connection with the issue of such shares); any records relating to the
holding of uncertificated shares; the conversion of certificated shares
into uncertificated shares; or the conversion of uncertificated shares
into certificated shares. The Company may by notice to the holder of
a share require that share: if it is uncertificated, to be converted into
certificated form; and if it is certificated, to be converted
into uncertificated form, to enable it to be dealt with in accordance with
the Articles.
If the Articles give the directors power to take action, or require other
persons to take action, in order to sell, transfer or otherwise dispose of
shares; and uncertificated shares are subject to that power, but the
power is expressed in terms which assume the use of a certificate or
other written instrument, the directors may take such action as is
necessary or expedient to achieve the same results when exercising
that power in relation to uncertificated shares. The directors may take
such action as they consider appropriate to achieve the sale, transfer,
disposal, forfeiture, re-allotment or surrender of an uncertificated
share or otherwise to enforce a lien in respect of it. This may include
converting such share to certificated form. Unless the directors
resolve otherwise, shares which a member holds in uncertificated
form must be treated as separate holdings from any shares which
that member holds in certificated form. A class of shares must not be
treated as two classes simply because some shares of that class are
held in certificated form and others are held in uncertificated form.
Deadlines for exercising voting rights
Votes are exercisable at a general meeting of the Company in respect
of which the business being voted upon is being heard. Votes may be
exercised in person, by proxy, or in relation to corporate members, by
corporate representative. The Articles provide a deadline for
submission of proxy forms of not less than 48 hours before the time
appointed for the holding of the meeting or adjourned meeting.
Variation of rights
Subject to statute, the Articles specify that rights attached to any class
of shares may be varied with the written consent of the holders of not
less than three-quarters in nominal value of the issued shares of that
class, or with the sanction of an extraordinary resolution passed at a
separate general meeting of the holders of those shares. At every
such separate general meeting the quorum shall be two persons
holding, or representing by proxy, at least one-third in nominal value
of the issued shares of the class (calculated excluding any shares held
as treasury shares). The rights conferred upon the holders of any
shares shall not, unless otherwise expressly provided in the rights
attaching to those shares, be deemed to be varied by the creation or
issue of further shares ranking pari passu with them.
Transfer of shares
All transfers of shares that are in certificated form may be effected by
transfer in writing in any usual or common form or in any other form
acceptable to the directors and may be under hand only. The
instrument of transfer shall be signed by, or on behalf of, the transferor
and (except in the case of fully paid shares) by or on behalf of the
transferee. The transferor shall remain the holder of the shares
concerned until the name of the transferee is entered in the register of
shareholders. All transfers of shares registered on the main register of
members that are in uncertificated form may be effected by means of
the CREST system. All transfers of uncertified shares registered on the
Anglo American plc
Integrated Annual Report 2023
Other information
Directors’ report
333
branch register of members in South Africa may be effected via the
Transfer Secretary.
The directors may decline to recognise any instrument of transfer
relating to shares in certificated form unless it:
re-election, shall retire from office. In addition, a director may at any
AGM retire from office and stand for re-election. However, in
accordance with the Code, all directors will be subject to annual
re-election.
Stock Exchange Listings
The Company’s ordinary shares are listed on the London Stock
Exchange (the primary listing), the JSE Limited, the SIX Swiss Exchange,
the Botswana Stock Exchange and the Namibian Stock Exchange.
Significant agreements: change of control
At 31 December 2023, Anglo American had committed bilateral and
syndicated borrowing facilities totalling $9.6 billion with a number of
relationship banks which contain change of control clauses.
$11.3 billion of the Group’s bond issues also contain change of control
provisions. In aggregate, this financing is considered significant to the
Group and in the event of a takeover (change of control) of the
Company, these contracts may be terminated, become immediately
payable or be subject to acceleration.
In the ordinary course of its business the Group’s subsidiaries enter into
a number of other commercial agreements, some of which may alter
or be terminated upon a change of control of the Company. None of
these are considered by the Group to be significant to the Group as
a whole.
Purchases of own shares
At the AGM held on 26 April 2023, authority was given for the
Company to purchase, in the market, up to 200.5 million ordinary
shares of 5486/91 US cents each. The Company did not purchase any
of its own shares under this authority during 2023. This authority will
expire at the 2024 AGM and, in accordance with usual practice, a
resolution to renew it for another year will be proposed.
Indemnities
To the extent permitted by law and the Articles, the Company has
made qualifying third-party indemnity provisions for the benefit of its
directors during the year, which remain in force at the date of this
report. Copies of these indemnities are open for inspection at the
Company’s registered office.
By order of the Board
Richard Price
Legal and Corporate Affairs Director (Company Secretary)
21 February 2024
(a) is in respect of only one class of share
(b) is lodged at the transfer office (duly stamped if required)
accompanied by the relevant share certificate(s) and such other
evidence as the directors may reasonably require to show the right
of the transferor to make the transfer (and, if the instrument of
transfer is executed by some other person on his/her behalf, the
authority of that person so to do).
The directors may decline to register any transfer of shares in
certificated form unless: the instrument of transfer is in respect of only
one class of share; the instrument of transfer is lodged (duly stamped
if required) at the Transfer Office accompanied by the relevant share
certificate(s) or such other evidence as the directors may reasonably
require to show the right of the transferor to make the transfer or, if the
instrument of transfer is executed by some other person on the
transferor’s behalf, the authority of that person to do so; and it is fully
paid. The directors may also refuse to register an allotment or transfer
of shares (whether fully paid or not) in favour of more than four
persons jointly.
If the directors refuse to register an allotment or transfer, they shall send
the refusal to the allottee or the transferee within two months after the
date on which the letter of allotment or transfer was lodged with the
Company.
A shareholder does not need to obtain the approval of the Company,
or of other shareholders of shares in the Company, for a transfer of
shares to take place.
Directors
Directors shall not be fewer than five nor more than 18 in number. A
director is not required to hold any shares of the Company by way of
qualification. The Company may by ordinary resolution increase or
reduce the maximum or minimum number of directors.
Powers of directors
Subject to the Articles, the Companies Act and any directions given by
special resolution, the business of the Company will be managed by
the Board who may exercise all the powers of the Company.
The Board may exercise all the powers of the Company to borrow
money and to mortgage or charge any of its undertaking, property and
uncalled capital and to issue debentures and other securities, whether
outright or as collateral security, for any debt, liability or obligation of
the Company or of any third party.
The Company may by ordinary resolution declare dividends, but no
dividend shall be payable in excess of the amount recommended by
the directors.
Subject to the provisions of the Articles and to the rights attaching to
any shares, any dividends or other monies payable on or in respect of
a share may be paid in such currency as the directors may determine.
The directors may deduct from any dividend payable to any member
all sums of money (if any) presently payable by him/her to the
Company on account of calls or otherwise in relation to shares of the
Company. The directors may retain any dividends payable on shares
on which the Company has a lien, and may apply the same in or
towards satisfaction of the debts, liabilities or engagements in respect
of which the lien exists.
Appointment and replacement of directors
The directors may from time to time appoint one or more directors.
The Board may appoint any person to be a director (so long as the
total number of directors does not exceed the limit prescribed in the
Articles). Any such director shall hold office only until the next AGM
and shall then be eligible for election.
The Articles provide that at each AGM all those directors who have
been in office for three years or more since their election, or last
334
Anglo American plc
Integrated Annual Report 2023
Other information
Shareholder information
Annual General Meeting (AGM)
Our AGM will be held at 11:00 on Tuesday, 30 April 2024, at
The Mermaid London, Puddle Dock, London EC4V 3DB and online
via the Lumi platform.
Further details on how to access the AGM electronically or attend in
person, ask questions and vote, can be found in the Notice of 2024
AGM which will be available on our website.
Investors holding shares through a nominee service should arrange
with that nominee service for them to be appointed as a proxy in
respect of their shareholding to attend and vote at the meeting
electronically.
Shareholding enquiries
Enquiries relating to shareholdings should be made to the Company’s
UK Registrars, or the South African Transfer Secretaries, at the relevant
address below:
UK Registrars
Equiniti
Aspect House, Spencer Road, Lancing
West Sussex BN99 6DA, England
Telephone:
In the UK: 0371 384 2026
From overseas: +44 (0) 371 384 2026
Transfer Secretaries in South Africa
Computershare Investor Services (Pty) Limited
Rosebank Towers, 15 Biermann Avenue
Rosebank, Johannesburg, 2196, South Africa
Private Bag X9000, Saxonwold, 2132, South Africa
Telephone: +27 (0) 11 370 5000
Enquiries on other matters should be addressed to the company
secretary at the following address:
Registered and Head Office
Anglo American plc
17 Charterhouse Street
London EC1N 6RA
England
Telephone: +44 (0) 20 7968 8888
Registered number: 03564138
www.angloamerican.com
CoSec.Admin@angloamerican.com
On the Investors section of the Group website a range of useful
information for shareholders can be found, including: Investor
calendar and presentations; share price and tools; dividend
information; AGM information; FAQs.
Electronic communication
Shareholders may elect to receive, electronically, notification of
the availability on the Group’s website of future shareholder
correspondence, e.g. Integrated Annual Reports and Notices
of AGMs.
By registering for this service, UK shareholders can also vote online
in respect of future AGMs and access information on their
shareholding including, for example, dividend payment history, sales
and purchases and indicative share prices. In order to register for
these services, UK shareholders should contact the UK Registrars or
log on to www.shareview.co.uk and follow the on-screen
instructions. It will be necessary to have a shareholder reference
number when registering, which is shown on share certificates,
dividend tax vouchers and proxy cards.
Dividends
Dividends are declared and paid in US dollars to shareholders with
registered addresses in all countries except the UK, eurozone
countries, Botswana and South Africa where they are paid in sterling,
euros, Botswanan pula and South African rand respectively.
Shareholders outside Botswana and South Africa may elect to
receive their dividends in US dollars.
Shareholders with bank accounts in the UK or South Africa can have
their cash dividends credited directly to their own accounts.
Shareholders should contact the relevant Registrar or Transfer
Secretary to make use of this facility. South African branch register
shareholders would need South African exchange control approval to
mandate their dividends to an account outside South Africa.
The Company operates a dividend reinvestment plan (DRIP) in the UK
and South Africa, which enables shareholders to reinvest their cash
dividends into purchasing Anglo American shares. Details of the DRIP
and how to join are available from Anglo American’s UK Registrars and
South African Transfer Secretaries and on the Group’s website.
ShareGift
The Company supports ShareGift, the charity share donation scheme
administered by The Orr Mackintosh Foundation (registered charity
number 1052686). Through ShareGift, shareholders with very small
numbers of shares which might be considered uneconomic to sell are
able to donate them to charity. Donated shares are aggregated and
sold by ShareGift, the proceeds being passed on to a wide range of
charities. For those shareholders who wish to use ShareGift, transfer
forms are available from the Registrars and further details of the
scheme can be found on the website www.sharegift.org.
Share dealing service
Telephone, internet and postal share dealing services have been
arranged through Equiniti, providing a simple way for UK residents to
buy or sell Anglo American shares. For telephone transactions call
0345 603 7037 (or +44 (0) 345 603 7037 from overseas) during
normal office hours and for internet dealing log on to
www.shareview.co.uk/dealing. You will need your shareholder
reference number, found on share certificates, dividend tax vouchers
and proxy cards. For further details on the postal dealing service,
which is available for certain European residents, call 0371 384 2248
(or +44 (0) 371 384 2248 from overseas).
Unsolicited mail
Under the Companies Act, the Company is obliged to make the share
register available upon request on payment of the appropriate fee.
Because of this, some shareholders may receive unsolicited mail. If you
wish to limit the receipt of addressed marketing mail you can register
with the Mailing Preference Service (MPS). The quickest way to register
with the MPS is via the website: www.mpsonline.org.uk. Alternatively
you can register by telephone on: 020 7291 3310, or by email to:
mps@dma.org.uk, or by writing to MPS Freepost LON20771,
London W1E 0ZT.
Anglo American plc
Integrated Annual Report 2023
Other information
335
Other Anglo American publications
– Sustainability Report
– Ore Reserves and Mineral Resources Report
– Tax and Economic Contribution Report
– Transformation Report
– Climate Change Report
– Our Code of Conduct
– The Safety, Health and Environment (SHE) Way
– The Social Way
– Notice of 2024 AGM
– www.facebook.com/angloamerican
– www.twitter.com/angloamerican
– www.linkedin.com/company/anglo-american
– www.youtube.com/angloamerican
– www.flickr.com/angloamerican
– www.slideshare.com/angloamerican
Financial and other reports may be found at:
www.angloamerican.com/reporting
A printed copy of the Anglo American Integrated Annual Report can be ordered online at:
www.angloamerican.com/site-services/contact-us
©Anglo American plc 2024. All rights reserved.
Group terminology
In this document, references to “Anglo American”, the “Anglo American Group”, the “Group”, “we”, “us”, and “our” are to refer to either Anglo American plc
and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of
those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured,
managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not
limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management,
training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform
practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies
and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and
procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.
Disclaimer
This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or the recommendation, solicitation,
inducement or offer to buy, subscribe for or sell shares in Anglo American or any other securities by Anglo American or any other party. Further, it should
not be treated as giving investment, legal, accounting, regulatory, taxation or other advice and has no regard to the specific investment or other
objectives, financial situation or particular needs of any recipient.
Forward-looking statements and third party information
This document includes forward-looking statements. All statements other than statements of historical facts included in this document, including,
without limitation, those regarding Anglo American’s financial position, business, acquisition and divestment strategy, dividend policy, plans and
objectives of management for future operations, prospects and projects (including development plans and objectives relating to Anglo American’s
products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental,
social and governance) goals, ambitions, targets, visions, milestones and aspirations, are forward-looking statements. By their nature, such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of Anglo American or industry results to be materially different from any future results, performance or achievements expressed or implied
by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and future business strategies and the
environment in which Anglo American will operate in the future. Important factors that could cause Anglo American’s actual results, performance or
achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period,
levels of global demand and commodity market prices, unanticipated downturns in business relationships with customers or their purchases from
Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities,
safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties
on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of
litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to
produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and
adoption of new or competing technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign
currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation,
terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving
societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures,
competitive pressures and the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or
forcing closure of mines and ceasing of operations or maintenance of Anglo American’s assets and changes in taxation or safety, health, environmental
or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk
factors identified in Anglo American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors
and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this document.
Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the
UK Listing Rules, the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities
exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any
other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in
Anglo American’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical
published earnings per share. Certain statistical and other information included in this document is sourced from third party sources (including, but not
limited to, externally conducted studies and trials). As such it has not been independently verified and presents the views of those third parties, but may
not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of,
such information.
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Anglo American plc
17 Charterhouse Street
London
EC1N 6RA
United Kingdom
Tel +44 (0)20 7968 8888
Registered number 3564138
www.angloamerican.com
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