Anglo American Annual Report 2012

OVERVIEW OUR STRATEGY AND BUSINESS MODELOUR STRATEGY ANDBUSINESS MODELINVESTINGWorld class assetsin the most attractivecommoditiesORGANISINGEfficientlyandeffectivelyBECOMINGTHE LEADINGMININGCOMPANYOPERATINGSafely,sustainablyandresponsiblyFINDSECUREEMPLOYINGThe best peopleOur exploration teams discoverore deposits in a safe andresponsible way to replenishthe reserves that underpin ourfuture success.Gaining and maintainingour social and legal licenceto operate, through openand honest engagementwith our stakeholders, iscritical to the sustainabilityof our business.Anglo American aims to become the leading global miningcompany – the investment, the partner and the employerof choice – through the operational excellence of worldclass assets in the most attractive commodities, andthrough a resolute commitment to the highest standardsof safe and sustainable mining.As our business model illustrates, mining is only part of the story.Our sector-leading exploration teams strive to find the resourceswe will mine in the future and we engage with a broad range ofstakeholders – from governments to local communities andNGOs – to secure our right to mine those resources. Many of thecommodities we mine are processed and refined further beforewe apply our market knowledge to deliver a quality product ourcustomers value.We believe we can achieve our aim of becoming the leadingglobal mining company through our four strategic elements:Investing in world class assets in those commodities thatwe believe deliver the best returns through the economiccycle and over the long term – namely, iron ore, metallurgicalcoal, thermal coal, copper, nickel, platinum and diamonds.Organising efficiently and effectively to outperform ourcompetition throughout our value chain.Operating safely, sustainably and responsibly, in the beliefnot only that this is fundamental to our licence to operate,but also that this is an increasingly important source ofcompetitive advantage. The safety of our people is our keycore value and we are relentless in striving to achieve ourgoal of zero harm.Employing the best people. We recognise that attracting,developing and retaining the best talent is essential toachieving our ambition.Our strategic elements are put into action across ourbusiness model.08 Anglo American plc Annual Report 2012OPERATINGThe LT-SQUID has beenemployed by our field teams tohelp search for so-called blinddeposits that have no visibleexpression on the groundsurface. It has revolutionisedhow we look at and model thepicture beneath the groundsurface, particularly at depth.Go to page 41 for moreinformation on this storyINVESTINGDuring the year, outstandinginjunctions were lifted at ourMinas-Rio iron ore project inBrazil. Following a detailedreview, capital expenditure hasincreased to $8.8 billion andfirst ore on ship is expected atthe end of 2014.Go to page 58 for moreinformation on this storyOPERATINGSecuring our licence to buildand operate a mine dependson winning the trust of manystakeholders. We participatedin an extensive, structured‘dialogue table’ with local andnational stakeholders in ourQuellaveco copper project inPeru, which helped us to reachagreement with the localcommunity and regionalgovernment to develop theproject.Go to page 22 for moreinformation on this story