Anglo American Plc

Anglo American Plc is a senior copper and pgm producer headquartered in London, United Kingdom, operating primarily in Africa. The company's portfolio consists of 42 projects, comprising 27 operating mines, 5 development, 7 advanced exploration, and 3 suspended projects. Key assets include Collahuasi, Mogalakwena, Orapa, Quellaveco, and Mototolo. The business model is centered on an integrated value chain, from discovery and planning to processing and marketing, designed to unlock value from mineral resources. A core operational characteristic is the application of the proprietary Operating Model, a standardized framework for target setting, planning, execution, and continuous improvement to drive efficiency and safety. The organization leverages advanced technologies to reduce its physical footprint, aiming for lower energy and water consumption per tonne of material produced. A key differentiator is the customer-centric Marketing business, which provides tailored product solutions, logistics, and market insights, supported by responsible sourcing assurance through third-party audits and digital traceability platforms like Valutrax™. This integrated approach, combining operational discipline with market intelligence and technological innovation, underpins the company's competitive positioning and its strategy to connect resources to end-users.

Strategic priorities are focused on operational excellence, portfolio simplification, and value-accretive growth. The company is executing a significant portfolio transformation to create a simpler, higher-margin business concentrated on products that support global trends in decarbonization, rising living standards, and food security. Capital allocation is governed by a disciplined framework that prioritizes sustaining capital for asset integrity, followed by a base dividend based on a 40% payout of underlying earnings. Discretionary capital is then directed toward high-return growth projects or additional shareholder returns. This strategy is supported by key enablers, including advanced sustainability and technical competencies, a strong reputation, a purpose-led culture, and a sophisticated marketing function that provides customer solutions. The long-term objective is to build a resilient and agile business positioned to generate strong cash flow and deliver sustainable returns through the economic cycle.

Board composition includes 11 directors, comprising a chair, 2 executive directors, and 8 independent non-executive directors, ensuring a majority of independent oversight. Governance is structured through 4 primary committees: Audit, Nomination, Remuneration, and Sustainability. Executive leadership is spearheaded by a Chief Executive with over 30 years of international mining experience and a Finance Director with proven strategic and commercial expertise. A distinctive governance feature is the Global Workforce Advisory Panel, chaired by a non-executive director, which provides a direct channel for employee perspectives to be considered in boardroom discussions, enhancing stakeholder engagement. The Board conducts an annual externally-facilitated effectiveness review to ensure its composition and processes remain robust and aligned with strategic objectives. This structure supports rigorous oversight of strategy, risk management, and succession planning for senior leadership.

The sustainability approach is embedded in the 'FutureSmart Mining™' program, which integrates innovation and technology to improve environmental and social outcomes. This is guided by the Sustainable Mining Plan, built on 3 pillars: a Healthy Environment, Thriving Communities, and being a Trusted Corporate Leader. The company has committed to ambitious, long-term targets, including achieving carbon neutrality for Scope 1 and 2 emissions by 2040, with a 30% reduction by 2030, and a 50% reduction in Scope 3 emissions by 2040. Environmental stewardship goals include delivering a net-positive impact on biodiversity and reducing absolute freshwater withdrawals in water-scarce regions by 50% by 2030. A key initiative is the Envusa Energy partnership with EDF Renewables, established to develop a regional renewable energy ecosystem. The organization also pilots advanced monitoring techniques, such as the TNFD's LEAP approach and environmental DNA (eDNA) sampling, to enhance its nature-related risk management and reporting.

The company is undergoing a significant portfolio restructuring to simplify its corporate structure. This includes a definitive agreement to sell its steelmaking coal business to Peabody Energy and a separate sale of its interest in Jellinbah to Zashvin. An agreement was also reached to sell its nickel business to MMG, with completion expected in 2025. The demerger of Anglo American Platinum is planned for mid-2025, which will establish it as a stand-alone entity. A dual-track process is under way for the separation of De Beers. In 2024, the company completed a transaction with Vale SA to integrate the Serpentina resource, whereby Vale acquired a 15% shareholding in the enlarged operation. The organization maintains significant joint operations, including a 50:50 partnership with the Government of the Republic of Botswana in Debswana. A 50:50 joint venture, Envusa Energy, was formed with EDF Renewables to develop renewable energy projects.