Anglo American - Enterprise Africa March 2024

ANGLO AMERICAN

Innovation Underpins Sustainable Long-Term Strategy

Innovation Underpins Sustainable Long-Term Strategy

PRODUCTION: Jamie Waters

Anglo American is leading the way in the global mining community when it comes to decarbonisation and sustainability. Transforming the giant miner to be agile and lean is a challenge, but innovation is underway that will keep the company at the industry’s cutting edge.

//Anglo American’s presence in South Africa is important for the country but critical for the wider global economy. The company’s mines are drivers of progress, unearthing valuable materials that allow people to build, thrive, and prosper. Platinum group metals (PGM), diamonds, iron ore, manganese and more have been successfully mined by the company for decades, and around 45,000 people are employed across the country’s 26 Anglo sites.

But mining is changing. More technology, less people; more about value, less about volume. Safety and sustainability remain key concerns for miners, and Anglo American is no exception. Despite its long and rich history in South Africa, and its corporate weight across the globe, the company must adapt and change to ensure long-term success.

CEO Duncan Wanblad has commented on how challenging it can be to manoeuvre such a mining behemoth with agility, but various initiatives are underway to provide

a sustainable way forward for one of the world’s most recognised mining and minerals brands.

Importantly, Anglo American is addressing emissions at its sites, looking at ways to harness renewable energy at scale.

AWAKENING

In February, the company announced that Envusa Energy, a venture jointly owned alongside EDF Renewables, had completed project financing for three wind farms and solar projects in South Africa. Located between the Northern and Eastern Capes, the projects will have the capacity of 520MW.

The Umsobomvu Wind project (140MW), the Hartebeesthoek Wind project (140MW), and the Mooi Plaats Solar project (240MW) will be generated on Anglo sites and feed supply of high-quality renewable energy to the Eskom grid. Anglo operations will take some of the power through 20-year offtake agreements, with commercial operation set for 2026. Ultimately, the projects

– collectively known as Koruson 2 –will help to keep 1.5 million tonnes of CO2 out of the atmosphere.

In mining, where pressure is always on cost, and where external global factors can swing results either way, to invest in such activities deserves recognition. Themba Mkhwanazi, Anglo American’s Regional Director for Africa and Australia, was excited, saying:

“The successful project financing of these initial projects marks our first major step towards addressing Anglo American’s largest remaining source of Scope 2 emissions – our electricity supply in Southern Africa. As we make progress towards our 2040 carbon neutral operations commitment, we also see the opportunity to enhance energy reliability and grid resilience in South Africa. We expect that energy availability to help catalyse extensive socio-economic activity, playing a critical role in unlocking South Africa’s economic development and growth prospects.”

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© Anglo American

DESIGNED SOME OF THE DEEPEST MINES. OUR SOLUTIONS ARE SHAPING THE FUTURE OF MINING.

MULTIPLE PROJECTS DELIVERED WITH MORE THAN 3 MILLION LTI-FREE SHIFTS. SAFETY IS A CORE VALUE.

RANKED AMONG THE TOP INTERNATIONAL CONTRACTORS IN OUR FIELD.

Lima

Santiago

PROCESS EXPERTS IN URANIUM, GOLD, COPPER, PGMS, MANGANESE, BATTERY MINERALS AND OTHER COMMODITIES.

OVER 65-MILLION-PERSON HOURS WORKED ACROSS DRA GLOBAL OPERATIONS AND MAINTENANCE SINCE 2000.

Accra

Gabarone

Cape Town

Montreal Toronto Beijing

Riyadh Johannesburg Maputo

Harare

Perth

8760 YEARS OF DESIGN AND ENGINEERING DRAWING OFFICE EXPERIENCE.

Brisbane

THE LARGEST MINING AND MINERALS FOCUSSED, ENGINEERING AND PROJECT DELIVERY CONSULTANCY.

OUR DEDICATION TO EXCELLENCE HAS EARNED US GLOBAL RECOGNITION AND TRUST.

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Tristan de Drouas, CEO at EDF Renewables in South Africa, agreed, saying: “Collaborating with Anglo American to apply our extensive global expertise in renewable energy infrastructure development, design, and delivery, has been immensely rewarding. With Envusa Energy being developed as a jointly owned venture with Anglo American, we have solidified our long-term commitment to South Africa’s transition to clean energy.

“The financial close of this initial cluster of projects is the first step towards Envusa Energy’s ambition to roll out 3 to 5 GW of wind, solar and storage projects by 2030.”

Envusa Energy Chair, and Chair of Anglo’s Management Board in SA, Nolitha Fakude was also excited highlighting the company’s wider commitment to national renewable energy rollout. “We are delighted with the progress we are making in setting up Envusa Energy for longterm success as a major renewables

powerhouse in South Africa. Achieving financial closure for these three high-quality renewable energy projects marks a crucial milestone in support of Anglo American’s global decarbonisation journey and bolsters South Africa’s pursuit of a resilient and clean energy future.

“We believe that the energy transition offers a unique opportunity to generate substantial new economic opportunities as part of South Africa’s journey towards an inclusive, sustainable, and low-carbon economy.”

HUMANITY TO OTHERS

At the same time, the company showed its strength across multiple disciplines, announcing the completion of acquisition of a new LNG dualfuelled bulk carrier fleet. The order, for 10 tankers, comes from Shanghai Waigaoqiao Shipbuilding Co Ltd and helps Anglo to reduce emissions in shipping by 35%. In February, the last of the 10 Capesize+ tankers made its way to Saldanha Bay ready to collect a shipment or iron ore as part of the fleet named Ubuntu. The Ubuntu Liberty

forms part of a large fleet of ocean freight vessels controlled by Anglo American that is being decarbonised inline with group strategy.

“Launching the final vessel of our Ubuntu fleet is a very large manifestation of our commitment to more sustainable shipping,” said Matt Walker, CEO of Anglo American’s Marketing business. “This milestone is testament to our dedication to a sustainable path forward for our controllable ocean freight, ensuring the delivery of essential resources to our customers around the world while minimising our environmental footprint. It also puts us in a market leading position as the charterer of the largest LNG dual-fuelled Capesize+ fleet in the world.

“By adopting more sustainable and lower carbon fuel options like LNG, we are actively contributing to a cleaner, greener future for the maritime industry. Our customers have shown keen interest in accessing our Ubuntu freight, demonstrating growing recognition of the value of sustainable shipping as part of a

© Anglo American

more sustainable supply chain that end consumers increasingly expect.”

Both projects are part of the wider Anglo American Sustainable Mining Plan (SMP) which adheres to three pillars: Healthy Environment, Thriving Communities, and Trusted Corporate Leader. under these pillars, the company will reach 2030 targets aligned with the UN’s Sustainable Development Goals

INVESTING IN LONG-TERM

As part of this SMP, new mining plans are being developed to optimise cost and operational performance,

// THIS MILESTONE IS TESTAMENT TO OUR DEDICATION TO A SUSTAINABLE PATH FORWARD FOR OUR CONTROLLABLE OCEAN FREIGHT //

new technologies are being utilised – including the LNG vessels, but also hydrogen – and a programme to introduce innovation further across group is well underway.

The Anglo American FutureSmart Mining™ involves digitising and using technology to transform mining with step-change advances.

Examples include the Zero Emissions Haulage System at Mogalakwena, using hydrogen to power heavy trucks for use in everyday mining operations; the Coarse Particle Recovery (CPR) system which allows for increased copper production and greater water recovery; Hydraulic Dewatered Stacking, using sand from CPR to create a 3D drainage systems that can desaturate tailings; and SandLix™ a system that improves copper recovery significantly when compared to traditional leaching methods, using less water and energy.

“The mining industry is playing a considerable role in helping the world decarbonise, both through our own emissions footprint and the metals and minerals that we

produce that are critical to low carbon energy and transport systems,” says Duncan Wanblad.

Some reports suggest that global mining operations for major metals account for 4-7% of total greenhouse gas emissions. Clearly, there is a problem, but this means there is an opportunity. In South Africa, Anglo American has work to do to decarbonise meaningfully. With the initiatives that the company has started, it is already far ahead of competition and will be mining sustainably while others scramble to keep up. ESG considerations across investors, financiers, and other stakeholders will undoubtedly force miners to worker better, smarter, and greener, and this will again put Anglo in pole position.

“We’re reimagining mining to improve people’s lives,” the company concludes.

© Anglo American

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