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Minas-Rio iron ore pipeline update
Anglo American plc (the "Company")
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
24 April 2018
Minas-Rio iron ore pipeline update
Anglo American plc ("Anglo American") today provides an update on the inspection of its Minas-
Rio iron ore pipeline in Brazil, and the expected timeline for operations to restart.
As announced on 3 April, Anglo American is progressing with a full inspection of its pipeline at
the Minas-Rio iron ore operation, which is expected to take approximately 90 days to complete.
The inspection includes an internal scan of every section of the pipeline and will then be followed
by a detailed analysis of the data and an assessment of required remedial action. Mining
operations will then resume once any repair work is completed, the pipeline has been tested and
the regulatory authorities have provided their consent to the resumption of pipeline operations.
On this basis, the current expectation is that the operation will begin to ramp up in Q4 2018,
resulting in a $300 – 400 million reduction in Anglo American’s EBITDA for 2018.
Mark Cutifani, Chief Executive of Anglo American, said: "Our priorities are to ensure the integrity
of the pipeline and the protection of the natural environment, while providing as much clarity as
we can for our employees, customers and other business stakeholders. Our own technical teams
are working alongside two specialist teams in Brazil, from the Institute of Technological Research
and the Federal University of Minas Gerais, to identify the specific causes of any weakness in
certain sections of the pipeline. Following the full inspection, there will inevitably be a period of
analysis and remedial work, prior to testing and restart of operations upon receipt of regulatory
consent.
"We are currently working with our unions to agree the appropriate terms for the approximately
35% of our employees at Minas-Rio who will be on an extended period of leave, including
providing training during that time, in addition to a pay and benefits package. The majority of our
Minas-Rio employees continue to be deployed across our operations in Brazil, including on the
construction work required to secure our Step 3 operating licence in the first half of 2019 to enable
the full ramp-up of Minas-Rio to 26.5mtpa."
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Anglo American plc
20 Carlton House Terrace London SW1Y 5AN United Kingdom
Registered office as above. Incorporated in England and Wales under the Companies Act 1985.
Registered Number: 3564138 Legal Entity Identifier: 549300S9XF92D1X8ME43
Marcelo Esquivel Robert Greenberg
marcelo.esquivel@angloamerican.com robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 2124
South Africa Sheena Jethwa
Pranill Ramchander sheena.jethwa@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8680
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Notes to editors:
Anglo American is a global diversified mining business and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and minerals to meet the growing
consumer-driven demands of the world’s developed and maturing economies. With our people
at the heart of our business, we use innovative practices and the latest technologies to discover
new resources and mine, process, move and market our products to our customers around the
world.
As a responsible miner – of diamonds (through De Beers), copper, platinum and other precious
metals, iron ore, coal and nickel – we are the custodians of what are precious natural resources.
We work together with our key partners and stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate and for society at large. Anglo American is re-imagining mining to improve people’s lives.
www.angloamerican.com
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