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ANGLO AMERICAN PLC - Anglo American updates response to COVID-19

Release Date: 27/03/2020 09:00
Code(s): AGL     PDF:  
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Anglo American updates response to COVID-19

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

27 March 2020

Anglo American updates response to COVID-19

Anglo American is providing an update on how it is responding operationally to the fast-evolving
global impact of the COVID-19 pandemic.

Anglo American Chief Executive, Mark Cutifani, said: “Anglo American’s priorities are the safety,
health and wellbeing of our people and all those who interact with our business around the world.
We also have a clear responsibility to protect the integrity of our business and assets so that we
are ready to restart and ramp up any affected operations safely and as quickly as possible once
permitted to do so. This approach will enable us to minimise any interruption of supply to our
customers and be in a position to support what will be a vital economic recovery phase for the
countries in which we operate and the global economy.”

South Africa

Anglo American notes the statement made by the President of the Republic of South Africa on
23 March in relation to a 21-day nationwide lockdown that took effect at midnight on Thursday
26 March, in order to help curb the spread of COVID-19 in South Africa.

Anglo American has consulted with the government authorities and industry bodies in South
Africa to determine and agree the appropriate measures to be taken across its operational and
other business activities. Such measures are to protect people’s safety and health, the continuing
provision of essential services to local communities, the security and integrity of the assets, the
supply of essential raw materials to customers, and the ability to return operations to normal
levels of activity as swiftly as possible once the lockdown restrictions are eased, in support of the
country’s broader economic interests.

In line with South African Government requirements, Anglo American is implementing all
appropriate measures across its South African operations, with a focus on de-densification of the
workforce, rigorous health screening, and isolation where needed. The status of operations is
expected to be as follows during the lockdown period:

    •   Kumba Iron Ore:
           o Sishen and Kolomela mines continue to operate with a c.50% level of workforce.
    •   Anglo American Platinum:
           o Mogalakwena mine and the mechanised Mototolo mine continue to operate with
             a reduced workforce and production, subject to further planning, as will the
             associated concentrator and smelter facilities;
           o Repair of the ACP plant continues, as planned;
           o Amandelbult, Modikwa (JV) and Kroondal (JV) underground mines, as well as
             the Mortimer and Waterfall smelters, are being placed onto care and
             maintenance.
    •   De Beers:
           o Venetia mine will operate with a c.75% reduced workforce.
    •   Thermal Coal:
           o Operations continue with a c.50-70% reduced workforce and production;
           o Isibonelo, which supplies Sasol’s fuel production facility, operates with a c.20%
             reduced workforce.
    •   The rail and port logistics infrastructure to support the export of iron ore and coal is
        expected to continue to service the operations during this period.
    •   Supply chain planning is in place and any impact of the 21-day lockdown is being
        monitored and addressed where feasible.

Anglo American will also continue to provide a number of essential services, including security;
mine maintenance; tailings facility safety management; water treatment; community water
supply; increased capacity in Anglo American’s hospitals; accommodation provision; health,
safety and emergency response; and critical head office services.

Mr Cutifani added: “In South Africa, our operations play a vital role in many of our host
communities, including in terms of jobs and the provision of a number of essential community
services, including access to water, energy and accommodation. We are wholly committed to
supporting the country’s effort to combat COVID-19, including continuity of such services, and
will continue to work with government and across the industry to provide all possible support.”

Peru – Quellaveco Project

The Government of Peru has extended its initial 15-day national quarantine period by 13 days to
12 April. As announced on 17 March, Anglo American has temporarily withdrawn the majority of
employees and contractors from its Quellaveco copper project in Peru and construction work is
significantly reduced, with only critical areas of the project continuing as normal, until such time
as workers can return safely.

UK – Woodsmith Project

In line with the British Government’s measures to prevent the spread of COVID-19, Anglo
American is in the process of pausing most construction and development activity on its
Woodsmith polyhalite project. Appropriate action is being taken to enable safe and swift
resumption of work.

Production from Anglo American’s major operations in other countries has not been impacted
materially to date and we are taking all appropriate preventative measures to reduce the
probability of the virus spreading, including by reducing the density of people on our sites.

Guidance update

Based on the 21-day lockdown period in South Africa and allowing for a safe ramp-up of
operations thereafter, Anglo American would expect a 2020 production volume impact of 2-3mt
at Kumba Iron Ore (based on the c.50% reduction in the workforce) and 1.5-2mt of export thermal
coal. As previously disclosed, the production of refined PGM’s is on hold until 25 May 2020, when
we expect the ACP convertor to come back onstream.

Anglo American will provide any additional guidance on its South African and other operations in
its scheduled 1Q 2020 Production Report on 23 April 2020.

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

Marcelo Esquivel                                      Robert Greenberg
marcelo.esquivel@angloamerican.com                    robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891                              Tel: +44 (0)20 7968 2124

Katie Ryall                                           Emma Waterworth
katie.ryall@angloamerican.com                         emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8935                              Tel: +44 (0)20 7968 8574

South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592

Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175

Notes to editors:

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 competitive mining
operations and undeveloped resources provides the metals and minerals that enable a cleaner,
greener, more sustainable world and that meet the fast 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 – safely, responsibly and
sustainably.

As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron
ore, coal and nickel – we are the custodians of what are precious natural resources. We work
together with our business partners and diverse stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate, and for society as a whole. Anglo American is re-imagining mining to improve people’s
lives.
www.angloamerican.com

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)

Date: 27-03-2020 09:00:00
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