Professional Documents
Culture Documents
Los Bronces
Los Bronces
2
OVERVIEW
3
WHAT YOU WILL SEE AND HEAR
A world class asset with Our people driving relentlessly A highly competitive business with
significant endowment to best in class operational options that provide leverage to a
optionality performance, innovation and fundamentally attractive
capital discipline commodity
“World class assets and leading capabilities to deliver a world class business”
4
WHAT YOU WILL SEE AND HEAR
A world class asset with Our people driving relentlessly A highly competitive business with
significant endowment to best in class operational options that provide leverage to a
optionality performance, innovation and fundamentally attractive
capital discipline commodity
“World class assets and leading capabilities to deliver a world class business”
5
MINE SITE OVERVIEW
LOS ANDES
Location: 3500 masl, 65 km NE of Santiago
Los Bronces
Plant
CODELCO
El Soldado
mine
Andina
Ventanas
Port
Chagres smelter
District
Las Tórtolas LB Los Bronces
Viña del Mar plant Pit
Colina
Santiago
Confluencia
Plant
Cathodes
Plant
Perez Caldera
Facilities
Perez Caldera
Tailing dam
6
WHAT YOU WILL SEE
Infiernillo 5
CF Plant
San Francisco Dump
Casino 2
Infiernillo 7
LB Plant
Donoso 1
Donoso 2
7
LOS BRONCES LEADERSHIP TEAM
Patricio Chacana
Head of Operations
Los Bronces
William Henott Chris Gentle Andrés Jorge Rivera Federico Gonzalo Sebastián
Safety and Mine Planning Córdova Plant Manager González Vivo Manríquez Blanco
Occupational Manager Mine Manager Finance Infrastructure PMO &
Health Manager and Water Business
Manager Manager Analysis Supt.
8
LOS BRONCES IN NUMBERS (2018)
1,669
Employees
12
Shovels
Electrics
Diesel
Front Loader
7
4
1
232
Supervisors
9
Drills
Electrics
Diesel
2
7
KOM 930 56
1,893
Permanent contractors
69
Trucks
KOM 960
CAT795
2
11
9
A TRANSFORMED BUSINESS
CONFIDENTIAL 11 10
SAFETY: OUR JOURNEY TO ZERO HARM
LTIFR TRIFR
3.5 10
TRIFR
9
3.0 LTIFR
8
2.5 7
6
2.0
5
1.5
4
1.0 3
1.55 1.55 2
1.30
0.5 1.10 0.95 0.90
0.55 0.65 1
0.40 0.42
0.0 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YTD Sept
43%
High Potential Incidents
62%
Lost Time Incidents
48%
Total Recordable Cases)
11
SUSTAINABILITY AT THE HEART OF OUR BUSINESS
Trusted
corporate
leader
Thriving
$
communities OPERATIONAL FEWER ACCESS TO GROWING
EFFICIENCY SURPRISES RESOURCES RETURNS
12
THRIVING COMMUNITIES: OUR FOCUS AREAS
Education Livelihoods
The challenge: Quality education is one of the major social The challenge: Increasing level of skilled employment in our
challenges in Chile local communities
Our vision: All children in host communities to have access Our vision: Decent jobs and better economic conditions are
to excellent education and training a priority for our hosts communities.
All schools within our areas of Full employment in all our host
influence reach top 20% of school communities
performance by 2030
13
EMERGE: SUCCESSFUL PROGRAMME EXPORTED TO PERU,
BRAZIL & BOTSWANA
Using our business expertise to help others… … with results that speak for themselves
14
SOY TÉCNICO: CHILEAN GOVERNMENT LOOKING TO
REPLICATE
15
ENVIRONMENTAL AND SECTORIAL PERMITTING PROCESS
IN CHILE
Glacier
Water Biodiversity Communities Climate change
protection
16
LOS BRONCES IS FACING STRUCTURAL HEADWINDS
We are not immune from industry-wide supply challenges
Average haulage distance (km) Strip ratio (ore + marginal ore vs. waste mined)
8.0 2.5
2.0
7.0
1.5
6.0
1.0
5.0
0.5
4.0 0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
140 1.1
120 1.0
100 0.9
80 0.8
60 0.7
40 0.6
20 0.5
0 0.4
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2010 2015 2020 2025 2030 2035
17
ANGLO AMERICAN OPERATING MODEL
A structured way of working to convert targets into discrete pieces of work, which is well-planned
and scheduled to achieve the desired outcome
PLAN
DO
CHECK
ACT
18
FOCUSED ON THE KEY VALUE DRIVERS
Mine Plant
Drill Blast Load & haul Crush Mill Float & filter
19
A STEP CHANGE IN MINE PERFORMANCE…
+21% +18%
97% 227
193
76%
2014 2018 Sep YTD 2014 YTD Sep 2018 YTD Sep
20
…WITH IMPROVED EQUIPMENT PRODUCTIVITY
+62%
30.4
2018
• Double side loading increased to 80%
• Best operator 80%
• Shovel passes per truck 3.5
18.7
2019 Focus
• Shovel payload
• Time management
FY 2014 FY 2018F
21
SIGNIFICANT IMPROVEMENT IN PLANT PERFORMANCE
Confluencia plant operating time (%)(3) Step change in molybdenum recovery (%)
+3%
96.0 53%
93.4
92.7 93.1 Industry
92.0 average
44%
38%
85.8 35%
Peer 1 Peer 2 Peer 3 Peer 4 CF 2014 CF 2018 2014 2018 YTD Sep
LT 1 Plant LT 2 Plant
22
A RELENTLESS COST FOCUS
$0.2bn of cost-out delivered since 2014
0.1
(0.1)
1.1
1.1
23
A RELENTLESS COST FOCUS
A relentless cost focus has driven a lower C1 cost despite lower grades
(c/lb)
-17%
17
23 Controllable
costs
11
182
Non controllable
(Input prices
8
& higher activity)
154 150
24
KEY AREAS OF OPPORTUNITY
A commitment to delivering best in class operating performance
+21% +21%
150 58
124 48
Focus areas
Extraction and • Targeting increase in mine extraction and development through capital equipment
mine development productivity improvements, including shovels and fleet performance
Plant • Operational improvements to deliver further gains in plant throughput, operating time
Debottlenecking and recoveries
Productivity and • Further cost reductions through labour productivity, contract optimisation and input cost
Cost Reduction rates renegotiation
Incorporate • Coarse Particle Recovery, automatic drilling, Integrated Operational Center, pipeline
Technology robot monitoring
25
TO DELIVER ENHANCED SHAREHOLDER RETURNS
171
~365 350-365 330-360
310-340 ~150 ~150
308
26
A WORLD CLASS ENDOWMENT
CONFIDENTIAL 11 27
A LEADING MINING DISTRICT
Bt Exploration Targets(1)
120 ~0.3%-0.8%TCu
100
80
69.0
60
51.0
40
29.0
20 0.52%TCu 0.60%TCu 35.0
18.0 24.0
~1.5 ~7.4
0
Ore Reserves (1) Exclusive Mineral Exploration Exploration Exploration
Resources(1) Target Target Target
Low Mid High
28
ORE RESERVES AND MINERAL RESOURCES
Notice:
All information is reported under the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves, 2012’ (the JORC Code) by the below-listed Competent Person/s who
are employed by Anglo American plc and have the required qualifications and experience to qualify as
Competent Persons for Mineral Resources or Exploration Results under the JORC Code.
Ore Reserves information has been compiled by Victor Parra. Mineral Resources information has been
compiled by César Ulloa for Los Bronces Operation and Ivan Vela for Los Bronces Underground.
Exploration Targets information has been compiled by Thomas Paterson.
The Competent Person/s verify that these estimates are based on and fairly reflects the Exploration
Targets and Mineral Resource estimates in the supporting documentation and agree with the form and
context of the information presented.
Inferred Mineral Resources: Due to the uncertainty that may be attached to some 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 Resource after continued exploration.
Exploration Targets: The targets are conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource. It is uncertain whether further exploration will result in a Mineral
Resource. The grade and other qualities of any mineralisation, if discovered, may be inferior to that of
the Mineral Resources.
Exploration Targets and exploration activity: The greatest contribution to the Exploration Targets are
from, respectively, possible extensions to LBUG, La Agustina (LA), Los Bronces (LB), Los Bronces Sur
(LBS).
29
Location: 3,500 masl, 65 km NE of Santiago
LOS BRONCES – SIGNIFICANT GROWTH OPTIONALITY
• Utilising technology to
Coarse increase throughput from
Reserve life (2017) Mine life
Particle existing infrastructure
23 years Recovery reducing costs and water
consumption ~40 years
30
LOS BRONCES UNDERGROUND
The Los Sulfatos deposit provides a lower cost, higher quality upgrading opportunity that would deliver a
step-change in the competitive position of the asset
>25%
ROCE
~1.7%
Grade
• ~2.1Bt Inferred Resources at 1.20% TCu (6)
31
LOS BRONCES - ANDINA INTERACTION
A constructive pathway for future developments and value generation
Los
Andina
Bronces
32
COMMITTED TO OPERATIONAL EXCELLENCE
33
APPENDIX
34
FOOTNOTES
1) Estimates as at 31 December 2017. Please refer to the AA plc Ore Reserves and Mineral Resources Report 2017 for the tonnes, grades and a breakdown
of the classification categories. Los Bronces District figures include Los Bonces Mine as well as Los Bronces Sur and Underground Inferred Resources.
2) TRIFR is reported year-to-date
3) Source: Encare H2 2017
4) Source: Reserves and Resources statement 2017, Los Bronces Endowment Model 2018
5) First 10 years post full ramp up. Pre-feasibility study 2018
6) Estimates as at 31 December 2017
35