Anglo American PLC AAL Anglo American Annual General Meeting Address

  Anglo American PLC (AAL) - Anglo American Annual General Meeting Address

RNS Number : 7160B
Anglo American PLC
19 April 2012




                        
19 April 2012
Anglo American plc

Annual General Meeting − Address to shareholders




Anglo American plc held its Annual General Meeting for shareholders in  London 
today. Sir John Parker, Chairman,  and Cynthia Carroll, Chief Executive,  made 
the following remarks:



Sir John Parker, Chairman, Anglo American plc:



Good afternoon, everyone. Many of  you, I know, have  travelled a long way.  I 
also see that we have here with us today interest groups from as far afield as
Alaska and South Africa. May I extend a warm welcome to you all.



GOVERNANCE

In opening my address this morning, I should like to say a few words about the
governance of your company and what your  Board has been doing to promote  the 
long-term success of the company for all of its stakeholders.



The Board owns the strategy and its role encompasses the establishment, review
and monitoring of strategic  objectives. This includes  taking a balanced  and 
disciplined  approach   to  capital   management;   the  approval   of   major 
acquisitions, disposals and capital expenditure; and overseeing the  company's 
systems of governance, internal control and  risk management. It is also  part 
of the  Board's remit  to approve  business plans,  budgets and  all  material 
expenditure.



But to do its job properly, any board has to have an appropriate set of skills
and experience to challenge  and stress-test its  company's strategy. Since  I 
became your  Chairman some  two and  a  half years  ago, I  have  endeavoured, 
therefore, to ensure that  your Board is a  strong and influential one,  while 
being reflective of a constantly changing business environment.



In terms of enhancing the Board's contribution to our affairs, during the year
Anglo  American's  directors   and  the  company's   most  senior   executives 
participated in an internal  strategy forum spanning nearly  two days. I  also 
reported back to the Board on its performance against the objectives set in an
internally facilitated Board-effectiveness review conducted the previous year.
In addition, I commissioned an external effectiveness review of the Board  and 
its various committees;  the results of  that review will  be detailed in  the 
2012 annual report.



At the AGM in  2011, the Board  also became an 'early  mover' in adopting  the 
idea of annual re-election of directors  as part of our commitment to  setting 
the tone of the company's governance from the very top. We also reiterated our
objective to increase  the representation of  women on the  Board from 20  per 
cent to 30 per cent by 2013 (excluding the chairman).



I should like  to thank all  the members  of the Board  team collectively  for 
their contribution to  Board debates,  as well  as those  individuals who  are 
doing such sterling service on the Board's important committees.





OUR PEOPLE

I would also like to pay tribute  to Cynthia Carroll and her management  team. 
Cynthia, as many  of you  know by  now, is a  leader who  works tirelessly  in 
executing the Group's strategy. She has assembled an impressive executive team
around her  that I  believe is  best  in class  over a  range of  fields  from 
exploration to mining engineering and environmental engineering, backed up  by 
a highly skilled workforce.



SAFETY

Turning to some of  the most important developments  in our business over  the 
past 12 months...  Not surprisingly, I  will start with  Safety, because  that 
remains our No. 1 agenda  item. Most regrettably, the significant  improvement 
in our safety performance over the  previous four years was not maintained  in 
2011. The number  of people  who lost their  lives while  on company  business 
increased to 17 from 15 the previous year − though that compares with 40  five 
years ago − while there was an accompanying levelling-out in our injury rate.



In  light  of  this,  we  are  redoubling  our  efforts  to  seek   solutions, 
particularly at site level. The Board  fully supports Cynthia in her drive  to 
bring about real and lasting change in  the way in which we approach safety  − 
only by changing people's mindsets, and fostering a climate of openness,  will 
we start  to  make  lasting  improvements and  further  progress  towards  our 
ultimate goal of zero harm Group-wide.



PERFORMANCE AND DIVIDEND

2011 was  characterised  by  difficult  conditions  for  many  mining  company 
operations around the world, and across the industry. In the early months, our
Australian operations (and, to  a somewhat lesser extent,  those in Chile  and 
South Africa)  experienced exceptional  flood conditions.  Indeed, I  saw  the 
devastation for myself in Australia. Throughout the year, too, the effects  of 
various operational difficulties were compounded  by ongoing pressure on  unit 
costs resulting  from  lower  grade profiles  and  higher-than-inflation  cost 
inputs, while  in the  second half  we  were confronted  by a  more  uncertain 
macro-economic landscape.



Against this background, Anglo American recorded a sound set of financial  and 
operational results. Operating profit  rose by 14 per  cent to a record  $11.1 
billion from $9.8 billion in 2010. The Board has proposed a final dividend  of 
46 cents per share, giving  a total dividend for the  year of 74 cents, a  14% 
increase, and at the higher end of market expectations.



DELIVERING ON OUR GROWTH PROJECTS

It is very satisfying  to report that in  2011 Anglo American commissioned  no 
fewer than three  major new  mining operations,  all of  them on  or ahead  of 
schedule and  in  the  lower  half  of  the  cost  curve  -  an  extraordinary 
achievement in an industry  that is often criticised  for its shortcomings  in 
the project-delivery field.  I have  great confidence in  the engineering  and 
project-delivery ability of Anglo American.



The Barro Alto  nickel project  in Brazil  came on  stream in  March, the  Los 
Bronces copper expansion in Chile was commissioned in October and the Kolomela
iron ore mine in South Africa shipped  its first ore in December, five  months 
ahead of schedule.



DELIVERING VALUE

We also continue to keep a  close eye on value-enhancing M&A opportunities.  A 
key development during the  year was our announcing  our intention to  acquire 
the Oppenheimer family's interest in De Beers. This is a unique opportunity to
gain control of the world's most famous diamond company - and its  unsurpassed 
assets.  As  you  know,  in   early  January  2012,  our  shareholders   voted 
overwhelmingly to approve the transaction, and  we expect closure of the  deal 
sometime in the second half of this year.







Shortly afterwards, we announced a  major value-enhancing divestment with  the 
sale of a  24.5 per  cent interest  in Anglo American  Sur (AAS)  in Chile  to 
Mitsubishi for  $5.4 billion.  AAS,  which includes  the  Los Bronces  and  El 
Soldado mines and the Chagres smelter,  is a world-class copper business  with 
extensive reserves  and  resources,  and  significant  growth  potential.  The 
transaction enabled us to realise an attractive valuation for a minority stake
in AAS, valuing 100  per cent of AAS  at $22 billion -  almost double that  of 
analysts' valuations.



The decision by the Board to sell a 24.5 per cent stake in AAS was  considered 
with the utmost care. We have acted  to deliver very significant value to  our 
shareholders, in full  compliance with  what is  a very  clear legal  contract 
between ourselves and  the Chilean  state-owned copper  producer, Codelco.  We 
have also made  it clear,  from the  outset, that  we are  wholly amenable  to 
working with Codelco to find a commercial solution for the benefit of  Codelco 
and for Chile,  though such a  solution must recognise  our rights within  the 
contract.



Anglo American has invested $6.5 billion in Chile over the past 30 years,  and 
has paid  more  than  $6 billion  in  taxes  in the  last  five  years  alone, 
reflecting the strength of our relationship with the Chilean government, while
our future investment plans for the country are also very considerable.  Anglo 
American represents the very best standards and practices in our industry;  we 
are an  approachable  company, but  we  stand up  for  what is  right  by  our 
shareholders.



Turning to another matter... Even  though our Platinum business is  performing 
in line with the rest of the platinum industry, we recognise that the  current 
level of returns is not acceptable to our investors. With the full support  of 
the Board, therefore, Cynthia  and her team are  carrying out a  top-to-bottom 
review to ensure that the business is configured optimally to deliver value in
the long term.



A CHANGING LANDSCAPE

As the Chairman of  a leading global  mining company, I  am often asked  these 
days about the risks posed by the upwelling of resource nationalism. Certainly
it is the case that countries are becoming far more aware, and protective,  of 
the value  of  their mineral  inheritance.  Developing nations  and  developed 
economies alike are seeking to increase their share of the mining cake through
a range of means, from establishing  joint ventures with mining companies,  to 
windfall taxes and increased royalties, and even in some cases threatening  to 
push matters to the point of nationalisation of mining assets.

At the same time, the growing demand for metals and minerals means that mining
companies  are   exploring  in   regions  beyond   their  traditional   mining 
jurisdictions, with all their attendant climatic, infrastructural, logistical,
security and other challenges. This inevitably presents a heightened degree of
risk and may be accompanied by  political instability in some countries  where 
good governance is still developing.



STAKEHOLDER ENGAGEMENT AND SUSTAINABLE DEVELOPMENT

But where there is risk, there is  generally opportunity - and it is the  duty 
of the Board and management to seek out and unlock such opportunity. I believe
the best  way  to do  that  is to  always  conduct ourselves  to  the  highest 
standards of  corporate conduct  and to  build strong  links across  the  wide 
stakeholder spectrum.

In our own  Group, our leadership  in the social  and sustainable  development 
arena has been  recognised once again  by Business in  the Community  recently 
awarding  Anglo   American  a   platinum  ranking   in  its   2012   Corporate 
Responsibility Index  -  the UK's  leading  voluntary benchmark  of  corporate 
responsibility. We are the only mining company to secure platinum status - and
we have now done so  for three years running, which  is a great reflection  on 
our people.



In recognising our responsibilities to  all shades of stakeholders, we  always 
need to bear in mind  that there are important  constituencies who may not  be 
directly  invested  in  companies  such   as  Anglo  American,  but  who   are 
nevertheless influential  stakeholders. They  perform an  important role,  for 
example, in keeping up the  pressure on our industry  to act in a  transparent 
and responsible manner, in examining the feasibility of ethical  accreditation 
in respect  of  the  origin  of  minerals  and  metals  and,  more  generally, 
monitoring what  companies  such as  Anglo  American  are doing  on  a  wider, 
sustainable development canvas.

Our own  long-held view  on  sustainable development  is  that, as  a  leading 
international player in the extractives  industry, we should take a  proactive 
approach, and that we should seek to  take the lead in the key  sustainability 
issues facing our industry.

But how does such an approach play out in practice?

Take the issue of water - a  serious one for Anglo American because more  than 
80 per cent of our operations are  in water-stressed regions. The need to  use 
water wisely and  efficiently has led  us to establish  a new Group  technical 
standard for  water management,  while  an important  focus  in 2011  was  the 
implementation of our  new Water  Efficiency Target Tool  across every  single 
business unit. Current  major water projects  include building a  desalination 
plant at Mantoverde copper  mine in Chile and,  in South Africa, doubling  the 
capacity of the eMalahleni water treatment plant on the Witbank coalfield  and 
bringing an assured supply of potable water  for the first time to nearly  two 
million people who neighbour one of our Eastern Limb platinum mines.



In the long run, climate change may  well become a major issue for the  mining 
industry, and Anglo  American seeks to  play its part  in helping address  its 
causes and mitigating its effects. We  are an active and vocal participant  in 
the debate that is taking place on a global, national and local level, and  we 
areengaging with governments and other  key stakeholders to develop  equitable 
and effective climate-change policies, and to enable our communities to access
clean energy. At a grassroots level,  we are investing in clean coal  research 
and development projects  in Australia, South  Africa and the  US, and we  are 
assisting in  funding a  private-public partnership  to develop  a fuel  cells 
industry in South Africa.

With regard to carbon abatement, we support government actions to put in place
policies that lead to a  long-term price on carbon -  but we want to see  this 
done in full consultation with stakeholders, from a solid fact base and over a
realistic  timeframe,  so   that  it  does   not  jeopardise  jobs,   industry 
competitiveness, or social and economic development.



PEBBLE

I would like to turn now to  say something about the Pebble copper project  in 
Alaska … and I extend a warm welcome  to those of you who have travelled  from 
Alaska, including  the  Pebble  Partnership's  CEO John  Shively,  who  is  an 
Alaskan. I appreciate that here today we may have both critics and  supporters 
of the Pebble project, as well as those  who have not yet made up their  minds 
but do support the project's right to be allowed to go through the  permitting 
process. We are fully aware that there is a range of concerns over the project
− we have an Alaskan management team at Pebble who understand this better than
anyone. I would like to stress that it is our hope that all interested parties
participate in  what will  be a  very extensive  dialogue and  long  drawn-out 
permitting process, and to base their opinions and decisions on the facts.



SILICOSIS

I believe we may have amongst  us people representing former miners who  claim 
to have contracted  silicosis as a  result of working  in South Africa's  gold 
mines. Anglo American is very sympathetic  to the claimants' situation -  but, 
more than that, we  are doing something about  it for those individuals  whose 
claims in South Africa have taken so  long to be resolved. As the Chairman  of 
Anglo American,  I  want  to  assure  you  that  progress  is  being  made  in 
alleviating those  claimants' plight  - as  Cynthia  will tell  you in  a  few 
minutes.



We have listened, and we have acted.



ECONOMIC OUTLOOK

Finally, turning to  the economic  outlook... In  2011, there  was a  distinct 
slowdown in the  major emerging economies,  alongside continuing fragility  in 
the US  and Europe.  Thankfully,  decisive policy  response from  the  world's 
central banks  has  helped to  stabilise  financial markets  and  the  broader 
economy. In the US,  there are encouraging signs  that the economy is  finally 
shrugging off the  effects of  the financial crisis.  In Europe,  policymakers 
have headed  off  extreme  downside risks,  though  some  sizeable  structural 
problems remain in many economies.



In China, the economy has slowed  in response to earlier policy restraints  on 
the housing market. With growing  evidence of a much-needed adjustment,  there 
is scope  for some  selective policy  easing to  cushion the  economy. In  the 
medium  to  long  term,  China  and  India  will  continue  to  benefit   from 
technological and  productivity  catch-up, driving  sustained  strong  growth. 
Rising living standards and  a growing middle class  should drive more  demand 
for industrial commodities.  In addition,  The US should  overcome its  recent 
difficulties, with  a  resumption  of  healthier  long-term  growth  rates  as 
positive trends in demographics and productivity reassert themselves.







Cynthia Carroll, Chief Executive, Anglo American plc:



THE JOURNEY

Over the past five years we have been on a journey to transform Anglo American
into a  leader  in  the  mining  industry, a  company  that  delivers  on  its 
commitments by driving for performance and shareholder value.



The transformation started with safety. We developed a performance culture,  a 
more  efficient  organisational  structure,  and  a  more  joined-up  business 
capturing synergies across the Group.



We turned around business unit performance and became a cohesive company, with
a clear vision  and strategy,  and with  the ability  to successfully  deliver 
large complex projects.



We established relationships with  governments, unions and other  stakeholders 
around the world.



And we are now reaping the benefits and the rewards of that transformation. In
2011, four out of seven business units delivered record operating profit.



Take Metallurgical Coal, for example. In 2007, the business barely broke even.
The transformation  we began  in  Australia five  years ago  delivered  record 
profits in 2010 and 2011. As you all  know, in 2008 we took the hard  decision 
to invest through the downturn.



The result is  that, in 2011,  three of  our four big,  complex projects  were 
delivered on or ahead of schedule.  It is really an extraordinary  achievement 
to commission three major new mining operations in the same year.



Our Los Bronces expansion project, one of the most challenging and complex  in 
the world, started production five months  ago and is already operating at  75 
per cent of  capacity - an  outstanding achievement. At  full production,  Los 
Bronces will more than double current volumes.



The Barro Alto project in Brazil, which we commissioned a year ago, is already
operating at 70  per cent of  capacity. It will  increase production from  our 
Nickel business by 180 per cent.



The Kolomela iron ore mine in South Africa, was commissioned five months ahead
of schedule, and is already  producing at around 50  per cent of capacity.  In 
December, we shipped our first load of iron ore from the new mine.



In the meantime, our asset optimisation and supply chain initiatives delivered
$3.2 billion worth of value in 2011 against a target of $2 billion.



In   addition,   we   are   delivering   transformational,    value-generating 
transactions, with the  acquisition of  the Oppenheimer family's  stake in  De 
Beers and the sale of  a minority interest in  our Chilean copper business  to 
Mitsubishi.



We are, however, facing some headwinds,  including calls for higher taxes  and 
royalties, rising input  costs, shortages of  skilled workers,  infrastructure 
constraints and tighter environmental regulations.



There are  also  the constant  challenges  of depleting  resources,  declining 
grades  at  existing  mines,  and   the  diminishing  likelihood  of   finding 
large-scale, world-class deposits.



Despite these challenges, our efforts  delivered an operating profit of  $11.1 
billion in 2011, an increase of 14 per cent on 2010. Underlying earnings  were 
up 23 per cent to $6.1 billion.



Dividend pay-outs were 74 cents per share for the year. These are results  for 
which you, our shareholders, along  with our management and employees,  should 
feel justifiably proud.



We still have much work to do, and other challenges lie ahead.



SAFETY

Turning to safety...



Over the past five years we lifted  safety standards and put systems in  place 
across the Group to improve performance.



The result has been a 57 per cent reduction in fatalities across the Group.



Platinum operations have seen a 52 per cent reduction. Despite these  figures, 
safety  performance  at  Platinum  has,  and  continues  to  be,  our  biggest 
challenge.



We are determined to reach a point where we have zero fatalities, and we  have 
taken bold steps to bring about cultural change.



In 2007, we shut down Platinum operations following a number of fatalities.



In November  last year,  I went  to South  Africa to  address 30,000  Platinum 
employees, joined by Neville  Nicolau, Norman Mbazima as  well as trade  union 
leaders and government  safety inspectors to  re-emphasise our commitment  and 
our drive  towards zero  harm. There  I  launched 'Zero  Harm in  Action',  an 
initiative that aims to bring about  a cultural transformation in Platinum  by 
applying a zero-tolerance approach to unsafe behaviour.



We have  shown zero  harm is  achievable  in all  parts of  the  organisation, 
including Platinum's operations.



In 2011, excluding Platinum,  Lost Time Injury Frequency  Rates dropped by  16 
per cent, while at 91 per cent of our operations there was not a single  fatal 
injury.



But we had 17 fatalities last year... and that's 17 too many.



We still have a long way to go on safety.



THE FUTURE

Looking ahead,  although  there continues  to  be uncertainty  in  the  global 
economy in the short term, particularly  in Europe, I remain optimistic  about 
the long-term outlook for Anglo American's diversified mix of commodities.



Despite China's  slowdown  and  structural adjustment  towards  a  consumption 
driven economy, its  inland provinces,  are experiencing  and will  experience 
double-digit growth over the next decade.



In India, a growing middle class and rising disposable incomes should continue
to drive demand for coal, diamonds and platinum group metals.



In the emerging economies overall, we expect sustained growth driven by rising
increasing standards.



PROJECTS

Anglo American is well placed to take advantage of medium to long term  growth 
in the  developed and  emerging economies,  having one  of the  largest,  most 
diversified and balanced growth pipelines in the mining industry, with  around 
$100 billion in total projects.



Our project pipeline will allow us to increase production by more than 50  per 
cent by the end of 2014, by 75 per  cent in the medium term, and 100 per  cent 
in the longer term.



As you know, our largest strategic growth project is Minas-Rio in Brazil.



This is a high-quality Tier One iron ore asset. It has a large and  expandable 
resource base, which currently stands at 5.8 billion tonnes.



At full production, the delivered cash cost to China will be around $45 to $50
a tonne. This is at the very low end of the cost curve.



And we are making good progress.



Earthworks at the beneficiation plant are  86 per cent complete. More than  94 
per cent of land access  has been secured along  the pipeline, compared to  86 
per cent a  year ago.  More than  200 kilometres -  or 38  per cent  - of  the 
pipeline has been installed.



As to be expected, we are encountering environmental realities such as  caves, 
while land access and permitting  in an ever-changing regulatory  environment, 
adds complexity.



Since the start of  activities at Minas-Rio, we  have experienced seven  State 
legal  interruptions  relating   to  different   environmental  licences   and 
permitting processes.



In March, work  was suspended  for three days  on parts  of the  beneficiation 
plant, following a legal interruption on archaeological studies that had  been 
carried out in the mine area.



In all cases, but one, activities were able to continue or were suspended  for 
just a few days.



We are currently in discussions about another legal interruption  notification 
on a  power  transmission line  licence,  and we  are  confident  construction 
activity on the line will resume soon.



Added to these challenges are rising labour and construction costs in Brazil.



But  we  are  overcoming  these  by  implementing  cost-reduction  programmes, 
engaging proactively with permitting authorities  and locking in labour  costs 
to deliver first ore on ship  in the second half of  2013 - within the 15  per 
cent capital increase we announced to the market.



We are also maintaining momentum on our next phase of growth, where in 2011 we
got Board approval for six growth projects across six commodities.



These projects are in the right commodities, at the low end of the cost curve,
offering attractive returns.



They include our  five million  tonnes a year  Grosvenor export  metallurgical 
coal project  in  Queensland,  where  we  have  also  been  awarded  preferred 
respondent status for the development of  a dedicated 30 million tonne  export 
coal terminal at Abbot Point.



In the meantime, our eyes are fixed firmly on the next generation of Tier  One 
assets.



Since 1999, our exploration  team has made 15  major discoveries and  received 
international recognition for Los Sulfatos in Chile and Sakatti in Finland.



Our discovery  of copper,  nickel  and platinum  group  metals at  Sakatti  in 
northern Finland is a great example of our greenfield exploration expertise.



We are using innovative  drilling technology to deliver  value and reduce  our 
environmental impact as we work towards defining the resource.



CHALLENGES

We do, however, have some other challenges.



They are challenges  we are  meeting with confidence  and the  full weight  of 
Anglo American values  of integrity, accountability,  collaboration, and  care 
and respect.



Above all, we are facing these challenges with the courage of our  convictions 
in the knowledge that this company stands for the very best.



I will start with Codelco...



Adding to the comments  Sir John made  earlier, I wish  to reaffirm that  your 
company is ready to work with Codelco on a commercial solution.



We are open to sensible negotiations conducted in good faith, but we will  not 
be moved from  defending our very  clear rights and  protecting value for  our 
shareholders.



This is how we do business − with integrity and a spirit of collaboration.



Codelco's management knew what our alternatives were - we made them very clear
on a regular basis −  in terms of selling down  our holdings to a third  party 
prior to  any valid  exercise of  the  option, and  it sought  to  prematurely 
exercise the option.



Unfortunately, it has not yet been  possible to reach a settlement that  takes 
account of Anglo American's strong legal position.



Moving to Platinum...



Since 2007,  we  have made  significant  progress on  the  Platinum  business, 
delivering improvements in safety, increasing production, containing costs and
increasing productivity.



In 2011,  operating  profits  increased  to $890  million  despite  81  safety 
stoppages at our own operations.



We have seen substantial improvement, and  the returns have been in line  with 
the rest of the industry.



However, these returns have declined in recent years and are not acceptable to
us for the medium to long term.



The platinum industry faces significant challenges, including cost  inflation, 
safety stoppages and lingering concerns over European demand.



As a result, we are embarking on a review to assess the optimal  configuration 
of the Platinum portfolio.



We are doing this with a single purpose in mind - maximising shareholder value
and returns through the cycle.



We expect to complete the review by the end of the year.



Turning to the Pebble project in Alaska...



I wish to welcome visitors and friends from Alaska who are with us today.



As you are aware, we are still developing  a proposal for a mine plan to  take 
to permitting.



So we have not yet even put preliminary plans on the table.



This is an early-stage project.



Nevertheless, we understand the environmental sensitivities.



That's why  Pebble has  spent  more than  $120  million on  a  ground-breaking 
environmental study, something  that to the  best of our  knowledge has  never 
before done on such a scale for a project anywhere in the world.



The information we have gathered will  be considered carefully in the  process 
of defining what a project may look like.



So, as of today, no mine plan has been finalised.



Yet there  are  organisations  in  the United  States,  such  as  the  Natural 
Resources Defense Council, that are distributing misinformation to  thousands, 
if not millions, of Americans.



My 89-year-old  mother, who  is sitting  in  the audience,  and lives  in  New 
Jersey, receives regularly personalised correspondence and pamphlets from  the 
NRDC making outlandish  claims, on the  implications of a  mine which has  not 
even been  defined,  or submitted  for  review, by  the  rigorous  permitting 
processes of the United States.



This correspondence claims that - and I quote:



"The mine would be absolutely huge in scale, with a gaping pit wide enough  to 
line up nine of the world's longest  cruise ships, and deep enough to  swallow 
the Empire State Building."



And the reality is that salmon and mining can co-exist, and we see examples in
Alaska such as Red Dog  and Fort Knox, where  mining and fishing do  co-exist. 
Another example is in  British Columbia, where the  Fraser River had a  record 
salmon count of 34 million in 2010.



This is a proven fact.



So Anglo American will approach the Pebble project as we do with all projects,
with care  for  the  people  and the  environment;  with  professionalism  and 
integrity; and on the basis of rigorous science, not inflammatory rhetoric.



I ask  people  to  consider  the  facts  before  wrongly  misrepresenting  the 
situation.



Silicosis...

I would like  to add  my own  voice to  that of  the Chairman  and express  my 
personal sympathy and concern.



At the  AGM  last year,  I  informed shareholders  that  a proposal  would  be 
developed to provide appropriate medical treatment for those claimants who had
instituted proceedings in South  Africa against Anglo  American, prior to  the 
date of the proposal.



The cost of this treatment would be borne entirely by Anglo American, and  the 
treatment would continue for as long as  it took for the claims to be  finally 
resolved in court.



The proposal was made and accepted.



Since then, Anglo American South Africa has worked with all parties and agreed
on the best possible way to provide this medical care.



All 16  available  claimants  in  South Africa  have  been  examined  and  are 
receiving ongoing care, support and treatment.



WHAT SETS US APART



Our care for the health of our  people and the development of the  communities 
in which we operate sets us apart in the industry.



There  are  no  better  examples  than  our  HIV/AIDS  testing  and  treatment 
initiatives and our Zimele enterprise development programme.



Anglo American is a world leader in these areas and it is something we  should 
all be proud of.



In 2011, more than 110,000 of our  people were tested for HIV in South  Africa 
alone.



More than 90  per cent  of our employees  in southern  Africa participated  in 
voluntary HIV counselling and testing. More  than 60 per cent of  HIV-positive 
employees in southern Africa participated in disease-management programmes.



And more than 4,500 employees received free anti-retroviral drugs.



In June  last  year,  we  pledged  $3 million  over  three  years  to  the  UK 
Government-led Global  Alliance  for Vaccines  and  Immunisations. This  is  a 
public-private partnership that  is increasing access  to immunisation in  the 
world's poorest countries.



In January  this year,  I joined  other world  business leaders  at the  World 
Economic Forum, in  Davos, to  launch the  Business Leadership  Council for  a 
Generation Born HIV-Free. This is a private-sector-led initiative that aims to
end the transmission of HIV from mothers to children by the end of 2015.



Our Zimele enterprise development programme was the first mining initiative to
be recognised by the United Nations' Business Call to Action.



We committed to a job creation target in South Africa of 25,000 by 2015.



We have invested $78 million in more than 1,000 new small businesses that have
already generated more than 19,500 jobs, largely outside of direct mining.



In total, around the world, we have created more than 47,000 new jobs as  part 
of small enterprises.



More than  36  per cent  of  Zimele-supported  businesses are  run  by  female 
entrepreneurs, and more than 48 per cent are run by young people.



Five years ago there was only one  Zimele main office in South Africa -  today 
there are 31 enterprise development hub offices.



These  are  real  jobs  making  a  real  and  positive  difference  to   local 
communities.



In addition to this, the fact that 66 per cent of our total operational  water 
requirements are  met by  recycling or  re-using water,  and you  can see  and 
appreciate that our  approach to  sustainability is a  key differentiator  for 
Anglo American.



Sustainability is fundamental  to the way  we do business  and is embedded  in 
everything we do.



CLOSING REMARKS

In closing, I  reiterate that the  journey we  embarked on five  years ago  to 
transform Anglo American into a performance driven company is delivering  real 
value for you, our shareholders.



We have come a long way  by transforming the safety culture; streamlining  the 
organisational structure;  bringing  in  people with  the  right  skills;  and 
capturing synergies and efficiencies across the Group.



We have done this  while building relationships  with stakeholders around  the 
world - underpinned by a clear vision and strategy.



So,  we  continue  on  our  journey  and  work  through  the  challenges  with 
determination and the courage of our convictions, while caring for people  and 
protecting the environment.



Above all,  we have  world-class assets  on which  to build  an even  stronger 
future - and great people committed to making a difference.



This is what sets Anglo American apart and positions us well to deliver  value 
for you - and prosperity for the communities in which we operate.



                               Note to editors:

Anglo  American  is  one   of  the  world's   largest  mining  companies,   is 
headquartered in  the UK  and  listed on  the  London and  Johannesburg  stock 
exchanges.  Anglo  American's  portfolio  of  mining  businesses  spans   bulk 
commodities - iron  ore and  manganese, metallurgical coal  and thermal  coal; 
base metals - copper and nickel; and  precious metals and minerals - in  which 
it is  a global  leader in  both  platinum and  diamonds. Anglo  American  is 
committed to the highest standards of safety and responsibility across all its
businesses and  geographies and  to  making a  sustainable difference  in  the 
development of the  communities around  its operations.  The company's  mining 
operations, extensive pipeline of  growth projects and exploration  activities 
span southern  Africa,  South  America, Australia,  North  America,  Asia  and 
Europe.

www.angloamerican.com





                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


AGMSFMFMUFESEEL -0- Apr/19/2012 16:30 GMT
 
Press spacebar to pause and continue. Press esc to stop.