Anglo American Annual Report 2012

OPERATING AND FINANCIAL REVIEW NICKEL01 Electricians Cesar Augustode Lima and AntonioMilhomen Silva next to oneof Barro Alto’s 185 metrerotary kilns, wherenickel-bearing ore isreduced prior to smelting.Operating safely, sustainablyand responsiblySafety and sustainable developmentare central to our strategy. We managesafety and environment risks throughour Integrated Management System,which is certified to the ISO 9001,ISO 14001 and OHSAS 18001 globalstandards and we continue to focuson risk identification and control,employee training and leadershipcommitment. Our environmentalstrategy includes a focus on water,energy and greenhouse gas emissions.We have made pleasing progress inthese areas and incorporated what wehave learned from Codemin into thedesign of Barro Alto.Our opencast mining processescan have a notable impact on thelandscape, and can be difficult tofully rehabilitate, particularly insloped areas. We have partneredwith biodiversity NGOs andscientific groups to develop regionalspecific plans for the remediation offauna and flora in order to determinethe best solutions to overcome thisdifficulty, while aligning them to ourclosure plans.Recognising the importance of therole we play in the local community,we also have invested significantlyin long term programmes related tofemale empowerment, sexual andreproductive health, citizenship andrural entrepreneurship. In recognitionof this work, the business received the‘Sustainable Company of the Year2012’ award from Exame businessmagazine, one of the most prestigioussustainability awards in Brazil.Nickel’senvironmentalstrategyincludes afocus on water,energy andgreenhousegas emissionsand we haveincorporatedwhat we havelearned fromCodemin intothe design ofBarro Alto.Nickel stocks and priceNickel stocks (kt)18016014012010080604020252015105Nickel price (c/lb)01FINANCIAL ANDOPERATIONAL OVERVIEWUnderlying operating profit for the yearwas $26 million (net of $32 millionproject evaluation operating costs),54% lower than in 2011. It included aself-insurance recovery of $59 million(offset at Anglo American Group)and an amount of $12 million in termsof the favourable settlement of anoutstanding tax claim with the Braziliangovernment. The results, however,were affected significantly by a 23%decline in the London Metal Exchange(LME) nickel price and by an extended0Jan 09 Jan 10Jan 11Jan 12LME StocksLME PriceSource: Anglo American Commodity Research074 Anglo American plc Annual Report 2012