Robust Tailings Management and High Performance Operations

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#1Anglo American BRAZIL: MINAS-RIO AND NICKEL Wilfred Bruijn, CEO Bulks Seminar & Site Visit: Brisbane, 12 November 2019 Real Mining. Real People. Real Difference.#2CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc ("Anglo American") and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in Anglo American or any other securities. Further, it does not constitute a recommendation by Anglo American or any other party to sell or buy shares in Anglo American or any other securities and should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contain herein. None of Anglo American, its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this material or otherwise in connection with this material. Forward-looking statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and reserve and resource positions), are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of transport infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as permitting and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward- looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this presentation is sourced from publicly available third party sources. As such it has not been independently verified and presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information. No Investment Advice This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002). Alternative Performance Measures Throughout this presentation a range of financial and non-financial measures are used to assess our performance, including a number of financial measures that are not defined or specified under IFRS (International Financial Reporting Standards), which are termed 'Alternative Performance Measures' (APMs). Management uses these measures to monitor the Group's financial performance alongside IFRS measures to improve the comparability of information between reporting periods and business units. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not uniformly defined by all companies, including those in the Group's industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Anglo American 2#3ANGLO AMERICAN IN BRAZIL Anglo American Barro Alto & Codemin Minas-Rio Açu Port Export pipeline Iron Ore: Minas-Rio Nickel: Barro Alto & Codemin 3#4SAFETY IS OUR PRIMARY VALUE Minas-Rio 1.15 1.16 Performance 2.07 1.57 1.3 TRCFR1 ◆ Fatalities 2.14 Elimination of Fatalities LEADERSHIP CARING CULTURE 1.25 000 PLANNING & SCHEDULING 0 0 0 2013 2014 2015 2016 2017 2018 YTD 2019 RISK & CHANGE MANAGEMENT MONITORING & ASSURANCE LEARNING ORGANISATION Nickel TRCFR1 Fatalities 7.59 4.05 3.52 3.03 2.43 Focus areas Cultural and behavioral change Mobile equipment - fatigue management 2.01 1.67 0 0 0 0 0 0 0 Improving compliance, including contractors 2013 2014 2015 2016 2017 2018 YTD 2019 4 AngloAmerican#5AngloAmerican MINAS-RIO Real Mining. Real People. Real Difference.#6MINAS-RIO KEY MESSAGES Product quality 67% Fe with low impurities Operational excellence Strong ramp up 48 year mine life 3.2bt Ore Reserve² Strong local partnerships Collaboration with authorities and communities Anglo American 00 6#7MODERN INTEGRATED BUSINESS Mining Processing Export Open pit Low LOM strip ratio (0.2)³ 32 Komatsu haul truck fleet³ Crushing, screening, milling. Desliming, grinding, flotation 38% Fe grade ore upgraded to 67% pellet feed product 529km export pipeline JV managed facilities at Açu Port AngloAmerican 7#8MINAS-RIO OPERATIONAL PERFORMANCE Production (wmt) P101 improvement 2019 production guidance +21% -23 19-21 18-20 Previous H1 2019 Revised (PIG run) (PIG run) -30 -23 24-26 22-24 23-25 17 2017 2019F 2020F 2021F 2022F Long-term potential AngloAmerican Fe Content Feed 16% Mass Recovery 會 28% Beneficiation Plant Production Rate 34% 8#9MINAS-RIO OPERATIONAL PERFORMANCE FOB Unit Cost 5 ($/tonne) AngloAmerican 2019 cost guidance -20% Cost drivers Mining 0808 0000 28-31 24-27 ~24 Processing Original Previous Revised 30 ~24 -26 -21 2017 2019F 2020F Long-term potential 000000 000000 Pipeline & port loading 0000 = c.5% cost base 9#10QUALITY PRODUCTS SUITED TO FUTURE DEMAND AngloAmerican Blast Furnace Pellet Feed 66-67% Fe (~65-70% of production 6) Direct Reduction Pellet Feed 68% Fe (~30-35% of production) Modern steel production focused on quality Bigger blast furnaces and tighter emissions standards 10#11BEST-IN-CLASS TAILINGS MANAGEMENT Best-in-class design Industry leading safety management Starter dam Engineered construction More robust than tailings-built downstream dam Downstream Drainage Group Technical Specialists Internal risk assurance Independent TRP BU Technical Standard expert State-of-the-art monitoring: 16 Water level indicators 11 Piezometers 2 Internal drainage flow meters 1 Total monitoring station (24h x 7days) Orbital satellite INSAR 4 Sirens 12km downstream of the dam - Fibreoptic monitoring at the overflow system Engineer of Record Operation 6 levels of assurance: 2 internal, 2 external, 2 independent ⑩AngloAmerican 11#12ALTERNATIVE DEPOSITION TECHNOLOGIES: OUR PATHWAY Dam deposition Dry stacking AngloAmerican Downstream Starter dam Drainage Process improvement 12#13SETTING THE STANDARD IN PIPELINE MANAGEMENT Fibre optic monitoring Technology selected Other pipeline management Pressure cycles to estimate fatigue OptaSense® a QinetiQ company Water pH control optimisation Implementation by March 2020 PIG runs Internal scan of pipeline integrity Every 2 years, ~2Mt impact (1 month production) Less frequent water batches Previously pumping was focused on slurry quality, now also focused on pumping pressure Consistent pressure important for integrity Monitoring & assessment of corrosion New reagents to sequester oxygen Interconnected operation without surge tank Mapping slopes, tunnels & containment structures Revised pump design to improve availability & reliability External coating & cathodic protection inspection AngloAmerican 13#14P101 DRIVING HIGH PERFORMANCE 2015 AngloAmerican Ore feed rate Capacity increase Ultrafine re-addition into the process to improve slurry specifications Vertmills optimisation Access to higher grade ore Ore feed rate (dmt/h) 2016 Ramp up Grade decline (2017) Pipeline outage (2018) tep 3 Process Stabilization Step 1-Ramp-up Improvement in beneficiation Production increase New reagents Stable feed Optimised flotation setup Better quality ore feed Mass Recovery (% of recovery curve) Step 3: Feed grade accord Step 1-Process adjustments Step 2-Beginning mining in Plateau 20, Step 2 End Step 1 and reduction feed glade 2019 2015 2016 2017 Pipeline outage (2018) 2019 14#15LONG LIFE, HIGH QUALITY ASSET High quality resource 1.4 bt Saleable product² 48 year Mine life Delivering strong returns 67% Average grade? Production profile 5322515 30 20 ~30Mtpa 10 5- 0 2020 2030 2040 2050 2060 2066 AngloAmerican Expansion potential Current LOM ~60% Mining EBITDA margin³ 15#16AngloAmerican NICKEL Real Mining. Real People. Real Difference.#17NICKEL KEY MESSAGES Product quality Premium quality ferronickel Anglo American Operational excellence World class stability Markets Consistently outperform the market price 17#18OPERATIONS OVERVIEW Mining Processing Barro Alto 36ktpa average nickel production Large-scale, low-cost and attractive grades Codemin Integrated with Barro Alto 9ktpa average nickel production Barro Alto World class ferronickel producer 2 lines of rotary kiln and electric furnace 2 lines of ladle furnace refinery AngloAmerican 18#19FERRONICKEL DEMAND Class 1 (LME grade) Nickel Applications include stainless & speciality steel, electronics, EV batteries, plating & coating, castings Class 2 Ferronickel & nickel pig iron Mainly used for stainless & specialty steel Ferronickel is Class 2 ~95% of supply used in the manufacture of stainless steel Nickel enhances properties of stainless steel: corrosion resistance, weldability, formability & ductility Attractive to stainless steel producers as alloy with pure iron Stainless steel demand for nickel World class ferronickel producer <~70% Global nickel demand ~95% Ferronickel demand Low carbon Low phosphorus Low sulphur Highest quality product ~45kt Production AngloAmerican 19#20ELECTRIFICATION & CONSUMER DEMAND SUPPORT NICKEL GROWTH Nickel demand (kt) AngloAmerican Class 1 (substitutable) 282 Class 1 (critical) 83 Class 2 1,289 2019 Battery markets diverting Class 1 nickel 313 92 +11% 1,433 2022F 20 20#21ROBUST PERFORMANCE TO CONTINUE Production (kt) Operational stability 10 Kilns throughput improvement 4% 16 -50 ~50 42 42 42-44 42-44 42-44 2011 2018 2019F 2020F 2021F 2022F11 Long-term potential11 Including Class 1 nickel from Platinum Group Metals ~70 ktpa Anglo American is world's 5th largest nickel producer AngloAmerican Oil consumption improvement 65% Furnace energy consumption improvement 3% 21 24#22OPERATING MODEL IN ACTION JCL .CL Unstable process 2016 UCL 08000 Stable process 2017 2018 Rotary Kilns performance (t/day) UCL LCL Capable process 2019 Relentless performance and safety improvement, together with technology deployment programs AngloAmerican U 22 22#23OPTIMISING COSTS FROM A STABLE BASE C1 unit cost4 (c/lb) 622 Cost drivers Mining 0000 0000 Processing ~450 -450 -400 0000.00 00000000 2012 2019F AngloAmerican 2020F Long-term potential Export Q2 on cost curve Lower nickel production in 2020 P101 benefits from 2022 = c.5% cost base 23#24PREMIUM QUALITY PRODUCT Realised price vs ferronickel index % 102.0 102.0 102.7 103.0 2016 2017 2018 YTD 2019 AngloAmerican Delivered value to our customers Outperformed market price 24 24#25INNOVATION DRIVING PRODUCTION GROWTH Bulk ore sorting Trial to commence end 2019 Up to 30% grade improvement Briquetting Increase in safety by reducing gas build-up ~3ktpa increase in nameplate capacity ~5ktpa increase in production ~5% lower plant electricity consumption AngloAmerican Production (ktpa) 42-44 2019F Bulk ore sorting ~50 Briquetting Other investments e.g. VeRo crusher Long-term potential 25#26AngloAmerican A SUSTAINABLE BUSINESS Real Mining. Real People. Real Difference.#27FUTURESMART MINING TM: SUSTAINABLE MINING PLAN TM Sustainability approach integral to FutureSmart Mining T Supporting local municipalities: Trusted Corporate Leader projects & fundraising Thriving Communities Crescer: Supporting local value chains Healthy Environment Wind energy project AngloAmerican 27 27#28QUALITY PRODUCTS SUITED TO MODERN MARKETS Assets Capabilities Returns Products suited to modern demand Operating Model Steady cash generation Successfully ramped up FutureSmart Mining ™ Modest capital requirement Established mining jurisdiction Integrated Marketing function Robust margins ⑩AngloAmerican 28#29FOOTNOTES Please refer to the AA plc Ore Reserves and Mineral Resources Report 2018 for the tonnes, grades and a breakdown of the classification categories. Average during the next 20 years. -234 1. Total Recordable Cases Frequency Rate per million hours. 2. 3. 4. 5. Wet basis. Current guidance assumes receipt of final tailings licence by end 2019. Minas-Rio operations were suspended for the majority of 2018 following two leaks in iron ore pipeline. Unit costs exclude royalties, depreciation and include direct support only. Minas-Rio operations were suspended for the majority of 2018 following two leaks in iron ore pipeline. Saleable product, next 10 years average. 6. Indicative at steady state. 7. 8. LOM period at H1 2019 prices. 9. Nickel business unit only. 10. 2019 performance versus 2017. 11. ~50kt dependent on delivery of bulk ore sorting technology. AngloAmerican 29 29

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