Transcript No Slide Title

Anglo Coal Australia
Group Structure
Anglo
American plc
Platinum
Gold
Coal
Diamonds
South America
South Africa
Anglo Coal
Australia
Ferrous/Base
Metals
Forrest
Products
Callide
100%
Dartbrook
77%
Kayuga
Project
Moura
51%
Drayton
88%
Grasstree
Project
Capcoal
70%
Moranbah
88%
Jellinbah
21%
Dawson Valley
Project
Industrial
Minerals
Anglo Coal Australia
 Australia’s third largest coal producer
 Investment in Australia totals USD 1.3bn
 Plans to invest a further USD 400m on
Australian mine development over the
next 5years
 Australia is essential to Anglo Coal’s long-term
growth
Major Australian Producers
60
Thermal Coal (Mt)
50
Rio Tinto
40
30
Glencore
BHP Billiton
20
Anglo
10
MIM
0
0
10
20
30
Coking Coal (Mt)
40
50
60
2001 Performance – On Target
 Overall stretch target achieved in first full year
 All business units “On Target” or better
 Operating profit USD 173m and above plan, ROCE
19%
 Strong cash flow
 Unit cost and production on target
 Achieved sustainable cost savings of USD 12m in
Products & Markets
Sold over 29 Mt of coal in 2001
Diverse product range
Strategy is to double managed
production by 2007
Thermal Coal Demand
500
South Asia
450
Pacific
350
300
250
200
Americas
150
Other
Europe
EC
100
50
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
0
19
Million Tonnes
400
Metallurgical Coal Demand
250
Million Tonnes
200
South Asia
150
Pacific
100
Americas
50
Other Europe
EC
0
1998 1999 2000 2001 2002 2003 2004 2005 2006
Anglo Coal Australia – Core Strategies
 One Team – One Business
 Skilled workforce
 Continuous improvement
 Growth
Australian opportunities
Indo-Pacific expansion
In the Community
 Responsible corporate citizen
 Sponsor of Queensland Community Fund
 Sponsor of Camp Quality
 Providing scholarships & training
 Industry leader in safety
Leader in Safety
30
30
25
25
Anglo
CoalCoal
AustAust
.
Anglo
.
20
20
AustAust
. Coal
Indust
ry ry
. Coal
Indust
15
15
AustAust
. Mining
Indust
ry ry
. Mining
Indust
10
10
5
5
0
0
Opencut
Opencut
Underground
Tot al
Underground
Tot al
Industry Comparison – LTIFR 2000/2001
(per million hours)
0
Wambo
Wyee
Berrima
Springvale
Munmorah
Nth Goonyella No. 1
Tahmoor
Newstan
South Bulga
Chain Valley
Charbon
Clarence
Kestrel
Angus Place
Oaky North U/G
Glennies Creek
Appin
120
Bellambi West
Ulan
Crinum
Oaky Creek No. 1
German Creek Southern
40
German Creek Cent ral
Dart brook
German Creek Sout hern
Moranbah Nort h
80
German Creek Central
Nardell
Cordeaux
LTIFR
LTIFR – Qld & NSW Underground Mines 2000-2001
160
Queensland Mines
New Sout h Wales Mines
0
Bloomfield
Westside
Bulga
Drayt on
40
Stratford
Liddell
Jeebroopilly
Ravensworth/Narama
Coppabella
Meandu
Saraji
Ensham
Newlands
Gregory
Blackwater
Ebenezer
German Creek
Moura
20
German Creek
Burton
South Blackwater
Curragh
Invincible
Callide
Jellinbah
60
Donaldson
Charbon
South Walker
Oakleigh
Jellinbah
Callide
LTIFR
LTIFR – Qld & NSW Open Cut Mines 2000-2001
80
Queensland Mines
New Sout h Wales Mines
Callide
Gladstone Power
Station (NRG)
Gladstone
Qld Alumina
Refinery (QAL)
Callide Mine
Queensland
Callide Power
Stations
Biloela
To Moura
0
10
20km
A
U
S
T R
A
L I A
Gladstone
B RISB A NE
To
Brisbane
Capcoal (German Creek)
148 o
NEWLANDS
Suttor Creek
Wards Well
NORTH GOONYELLA
RIVERSIDE
GOONYELLA
QLD
SA
NSW
VIC
T
Mavis Downs
Daunia
Poitrel
Winchester South
Winchester
Rugby
Moranbah South
Isaac River
PEAK DOWNS
22 o
Lake Vermont
SARAJI
STYX
BASIN
Dysart
Clermont
Clermont
NORWICH PARK
GERMAN CREEK
Capella
Valeria
Tieri
Liskeard
GREGORY
Middlemount
Styx
GERMAN CREEK EAST
FOXLEIGH/FOXLEIGH SOUTH
Girrah (Lake Lindsay)
OAKY CREEK
CRINUM
Pisces Project
GORDONSTONE
KESTREL
Curragh North
Gordonstone West ENSHAM
Taroborah
CURRAGH
Emerald
Cullin-la-ringo o
Minerva
Enlarged
Area
WA
Bee Creek
SOUTH Kemmis/Walker
West Nebo
WALKER
COPPABELLA
Morambah/Wotonga
Moranbah
Alpha
NT
BURTON
Grosvenor
BLAIR ATHOL
Dalrymple Bay/
Hay Point
Lake Elphinstone
Hail Creek
Lacewood
150 o
Mackay
EASTERN CREEK
Blackwater
BLACKWATER
YARRABEE
JELLINBAH EAST
Caledonia
Curragh East
Bluff
Minyango
0
Rockhampton
100km
Capcoal (cont’d)
 Produces 5 Mtpa hard coking coal
 Two underground mines and one open cut mine
 German Creek employs 758 people
 All coal is exported to steel companies
 The new Grasstree Mine to extend mining life
Moranbah
148 o
NEWLANDS
Suttor Creek
Wards Well
NORTH GOONYELLA
RIVERSIDE
GOONYELLA
MORANBAH NORTH
QLD
Grosvenor
SA
NSW
VIC
T
Mavis Downs
Daunia
Poitrel
Winchester South
Winchester
22 o
Lake Vermont
SARAJI
STYX
BASIN
Dysart
Clermont
Clermont
NORWICH PARK
GERMAN CREEK
Capella
Tieri
Liskeard
GREGORY
Middlemount
Styx
GERMAN CREEK EAST
Marlborough
FOXLEIGH/FOXLEIGH SOUTH
Girrah (Lake Lindsay)
OAKY CREEK
Valeria
CRINUM
Pisces Project
GORDONSTONE
KESTREL
Curragh North
Gordonstone West ENSHAM
Taroborah
CURRAGH
Emerald
Cullin-la-ringo o
Minerva
Enlarged
Area
WA
Bee Creek
SOUTH Kemmis/Walker
West Nebo
WALKER
COPPABELLA
Morambah/Wotonga
Rugby
Moranbah South
Isaac River
PEAK DOWNS
Alpha
NT
BURTON
Moranbah
BLAIR ATHOL
Dalrymple Bay/
Hay Point
Lake Elphinstone
Hail Creek
Lacewood
150 o
Mackay
EASTERN CREEK
Blackwater
BLACKWATER
YARRABEE
JELLINBAH EAST
Caledonia
Curragh East
Bluff
Minyango
0
Rockhampton
100km
Moranbah (cont’d)
 Produces 5 Mtpa hard coking coal
 Coal is exported to various steel manufacturers
in Asia
 One of Australia’s most productive underground
longwall mines
 Moranbah employs 448 people
Jellinbah
148 o
NEWLANDS
Suttor Creek
Wards Well
NORTH GOONYELLA
RIVERSIDE
GOONYELLA
QLD
SA
NSW
VIC
T
Mavis Downs
Daunia
Poitrel
Winchester South
Winchester
Rugby
Moranbah South
Isaac River
PEAK DOWNS
22 o
Lake Vermont
SARAJI
STYX
BASIN
Dysart
Clermont
Clermont
NORWICH PARK
GERMAN CREEK
Capella
Valeria
Tieri
Liskeard
GREGORY
Styx
Middlemount
GERMAN CREEK EAST
Marlborough
FOXLEIGH/FOXLEIGH SOUTH
Girrah (Lake Lindsay)
OAKY CREEK
CRINUM
Pisces Project
GORDONSTONE
KESTREL
Curragh North
Gordonstone West ENSHAM
Taroborah
CURRAGH
Emerald
Cullin-la-ringo o
Minerva
Enlarged
Area
WA
Bee Creek
SOUTH Kemmis/Walker
West Nebo
WALKER
COPPABELLA
Morambah/Wotonga
Moranbah
Alpha
NT
BURTON
Grosvenor
BLAIR ATHOL
Dalrymple Bay/
Hay Point
Lake Elphinstone
Hail Creek
Lacewood
150 o
Mackay
EASTERN CREEK
Blackwater
BLACKWATER
YARRABEE
JELLINBAH EAST
Caledonia
Curragh East
Bluff
Minyango
0
Rockhampton
100km
Moura
BOUNDARY HILL
SOUTH BLACKWATER
Mine
Deposit
MOURA
ROLLESTON
CALLIDE
Coal Measures
THEODORE
Coal Fired Generation
DAWSON
Railway (high capacity)
MONTO
Railway (low capacity)
TAROOM
WANDOAN
TARONG
ACLAND
WILKIE CREEK
MILLMERRAN
JEEBROPILLY
EBENEZER
0
200
kilometers
Dartbrook
Murrurundi
DARTBROOK
DARTBROOK
GLOUCESTER
BASIN
Scone
GUNNEDAH
BASIN
Aberdeen
Muswellbrook No. 2
Mount Pleasant
Bengalla
Bayswater No. 2
Mount Arthur North
Liddell
Bayswater No. 3
Cunnock No. 1
Mount Owen
HowickNardell Glendell Glennies Creek
Ravensworth/Narama
Camberwell
Hunter Valley
Great Greta
Rixs Creek
Lemington United
Singleton Mitchells Flat
Wambo
Warworth No. 1
Stratford
Duralie
DRAYTON
Ulan
Bylong
SADDLERS
CREEK
Mudgee
Bulga
Mount Pleasant
Bengalla
Bayswater No. 2
Mount Arthur North
Bayswater No. 3
SADDLERS CREEK
Howick
Maitland
HUNTER
COALFIELD
Rylstone
Kandos No. 3
Charbon
Running Stream
Airly Mountain
Feldmast
Ivanhoe No.2
Western Main
WESTERN
COALFIELD
Chain Valley
Wyee
Munmorah
Wyong
Wyong
Baal Bone
Invincible
Angus Place
Lithgow
Gosford
Springvale
Clarence
Blue Mountain
Katoomba
Camden
Oakdale
Glenee
Picton
Tahmoor
Berrima
Sutton Forest
Bargo
Berrima
Tower
Cordeaux
Mittagong Elouera
Avon
Moss Vale
Campbelltown
Metropolitan
Appin
25
kilometres
Wallarah
Moonee
Endeavour
NEWCASTLE
COALFIELD
PACI F I C
O CEA N
50
Berry
A U S T R A L I A
West
Cliff
Bellambi West
WOLLONGONG
Port Kembla
Kiama
0
NEWCASTLE
SYDNEY
Brimstone
SOUTHERN
COALFIELD
Donaldson
Bellbird
West Wallsend
Gretley
Westside
Teralba
Lachlan
Newstan
Awaba
Cooranbong
Myuna
Cooranbong Extention
DRAYTON
Liddell
Cunnock No. 1
Mount Owen
Glendell
Nardell
Glennies Creek
Ravensworth/Narama
Camberwell
Hunter Valley
Rixs Creek
Lemington
United
Singleton Mitchells
Wambo
Flat
Warworth No. 1
Bulga
Bulga/Sth Bulga
Bulga/Sth Bulga
Bloomfield
Cessnock
Aberdeen
Muswellbrook
No. 2
N SW
Underground Mine
Proposed Underground Mine
Open-Cut Mine
Proposed Open-Cut Mine
Power Station
Railway
Road
Dartbrook (cont’d)
Produces approx 3.4 Mtpa of thermal coal
All coal is exported to Asia
Low sulphur product
Dartbrook employs 293 people
Kayuga seam project extends mine life
Drayton
Murrurundi
GUNNEDAH
BASIN
DARTBROOK
DARTBROOK
Scone
GLOUCESTER
BASIN
Mount Pleasant
Bengalla
Stratford
Aberdeen
Muswellbrook No. 2
Mount Pleasant
Bengalla
Bayswater No. 2
Mount Arthur North
Liddell
Bayswater No. 3
Cunnock No. 1
Mount Owen
HowickNardell Glendell Glennies Creek
Ravensworth/Narama
Camberwell
Hunter Valley
Great Greta
Rixs Creek
Lemington United
Singleton Mitchells Flat
Wambo
Warworth No. 1
DRAYTON
Ulan
Duralie
Bylong
SADDLERS
CREEK
Mudgee
Bulga
Bulga/Sth Bulga
Maitland
HUNTER
COALFIELD
Rylstone
Kandos No. 3
Charbon
Running Stream
Airly Mountain
Feldmast
Ivanhoe No.2
Western Main
WESTERN
COALFIELD
Gosford
Springvale
Clarence
Blue Mountain
Camden
Oakdale
Glenee
Picton
Tahmoor
SOUTHERN
COALFIELD
Berrima
Sutton Forest
Bargo
Berrima
Metropolitan
Appin
Tower
Cordeaux
Mittagong Elouera
Avon
Moss Vale
Campbelltown
Wallarah
Moonee
Endeavour
NEWCASTLE
COALFIELD
LIDDELL POWER
STATION
Liddell
Cunnock No. 1
Mount Owen
Glendell
Nardell
Glennies Creek
Ravensworth/Narama
Camberwell
Hunter Valley
Rixs Creek
Lemington
BAYSWATER POWER
United
Singleton Mitchells
STATION
Wambo
Flat
Warworth No. 1
Bulga
Bulga/Sth Bulga
PACI F I C
O CEA N
50
Berry
A U S T R A L I A
West
Cliff
Bellambi West
WOLLONGONG
Port Kembla
Kiama
kilometres
NEWCASTLE
DRAYTON
Bayswater No. 2
Mount Arthur North
Bayswater No. 3
SADDLERS CREEK
Howick
SYDNEY
Brimstone
25
West Wallsend
Gretley
Westside
Teralba
Lachlan
Newstan
Awaba
Cooranbong
Myuna
Cooranbong Extention
Chain Valley
Wyee
Munmorah
Wyong
Wyong
Katoomba
Donaldson
Bellbird
Baal Bone
Invincible
Angus Place
Lithgow
0
Bloomfield
Cessnock
Aberdeen
Muswellbrook
No. 2
N SW
Underground Mine
Proposed Underground Mine
Open-Cut Mine
Proposed Open-Cut Mine
Power Station
Railway
Road
Drayton (cont’d)
 Mine produces approx 5 Mtpa of thermal coal
 Dragline and truck & shovel mining
 Export – approx 3 Mtpa
 Domestic – approx 2 Mtpa
 Drayton employs 264 people
 Saddlers Creek identified as replacement
reserve
Forecast Production - 2002
Mine
Saleable Type
Production
(100% Mt)
Anglo
Share
Callide
10.7
Thermal
100%
Capcoal
5.3
Metallurgical
70%
Drayton
5.0
Thermal
88%
Dartbrook
3.2
Thermal
77%
Moranbah
5.1
Metallurgical
88%
Moura
6.0
Thermal & Met
51%
Jellinbah
3.7
PCI
23%
TOTAL
39.0
Improving our Competitiveness
 Competitive position is a key success factor
 Continuous improvement philosophy
 Internal and external benchmarking studies
 External learning
 Acquire long life operations with low cost
structures
Dragline Benchmarking
 Detailed comparative data analysis prepared
with external consultants
 Analysis highlighted large potential for
improvement in dragline productivity
 Target improvement areas identified for each
dragline
Dragline Productivity Improving
Annual Output (t)
v RSL (end 2001)
Target
Improvements
Dragline
Result
vs Data
Base
Rank
(150)
1
BH BE1350W
+14.4%
36
Payload
(16%)
On t rack
2
DR BE1370W
+2.3%
64
Payload
(15%)
On t rack
3
CA M8750
-5.3%
82
Payload
(15%)
On t rack
4
CC M8050
-18.8%
125
Payload
(22%)
Already
exceeded t arget
(payload 23.4%)
Rank
Top Priority
Actions to May 02
CORDEAUX
TERALBA
WYEE
SOUTHLAND
BELLAMBI WEST
NEW WALLSEND 2
TOWER
METROPOLITAN
MOONEE
ALLIANCE
GC Central
2
TAHMOOR
3
GC-CENTRAL
ELOUERA
ANGUS PLACE
CUMNOCK 1
SPRINGVALE
N. GOONYELLA
WEST CLIFF
OAKY CREEK
NEWSTAN
CRINIUM
KENMARE
APPIN
BAAL BONE
W. WALLSEND
4
GC Southern
Dartbrook
5
DARTBROOK
6
GC-SOUTHERN
WAMBO
ULAN
S. BULGA
NEWLANDS
KESTRAL
MORANBAH NTH
OAKY NORTH
Mine Output (Mt)
Longwall Production - 2001
7
1
Coal Reserves and Development
 ACA has mining plans across reserves
totalling almost 800 Mt
 Many sites still have extensive areas that have
not been fully explored
 Confident that reserves will grow significantly
as the exploration program is intensified
Qld Reserve Areas – Northern Bowen
Basin
Newlands
MACKAY
Eastern
Creek
Dalrymple Bay
Hay Point
Glenden
Suttor Creek
Sarina
Lancewood
Q u e e n sl a n d
Hail Creek
Wards Well
AUSTRAL IA
Kemmis Walker
Bee
North Goonyella
Burton
Creek
Riverside
South Walker
Goonyella Nebo West
MORANBAH
NORTH
Nebo
Harrybrandt
Moranbah
0
50
100
GROSVENOR
Daunia
Winchester South
Poitrel
Rugby
Peak
Downs
kilometres
Harrow Creek
St. Lawrence
Lake Vermont
Saraji
Dysart
Blair
Athol
Clermont
Clermont
GERMAN CREEK
Central Collier y
Southern Colliery
German Creek East
Capella
Ogmore
Norwich
Park
GRASSTREE
Tieri
Oaky Creek
Gregory
Marlborough
Middlemount
Foxleigh
German Creek East
Lake
Lindsay
Yeppoon
Capella
Yarrabee
Gordonstone
JELLINBAH EAST
Emerald
Ensham
ROCKHAMPTON
Curragh
Bluff
Comet
Bluff
Blackwater
Dingo
Duaringa
Blackwater
Mount
Morgan
Port Alma
Qld Reserve Areas – Southern Bowen
Basin
Capella
Yarrabee
Gordonstone
JELLINBAH EAST
Ensham
Emerald
ROCKHAMPTON
Curragh
Bluff
Comet
Bluff
Dingo
Blackwater
Mount
Morgan
Duaringa
Blackwater
Cook
Cullin-la-ringo
Togara
Port Alma
GLADSTONE
South Blackwater
Humboldt
Springsure
Calliope
Baralaba
Baralaba
Callide
Rolleston
Rolleston
Biloela
CALLIDE
Moura
MOURA
THEODORE
Theodore
Q u e e n sl a n d
DAWSON
AUSTRAL IA
0
50
kilometres
100
TAROOM
Taroom
Monto
Monto
New South Wales Coal Reserve Areas
Murrurundi
0
25
50
kilometres
AUSTRALI A
N SW
Scone
Stratford
DARTBROOK
Ulan
Aberdeen
Muswellbrook No2
Muswellbrook
BYLONG
DRAYTON
Denman
SADDLERS CREEK
Mudgee
Rylstone
Kandos No3
Charbon
Wards River
Liddell
Mt. Owen
Glennies Creek
Mitchells
Flat
Singleton
Lemington
United
Wambo
Warkworth No1 Mount
Thorley
Bulga
Saxonvale/Bulga
Great Greta
Maitland
Cessnock
Bellbird
Pelton/Ellalong
West
Wallsend Gretley
No2
Teralba
Newstan
Awaba State
Cooranbong
Myuna
Running Stream
Airly Mountain
Wyee State
NEWCASTLE
Future Directions
 ACA and Mitsui joint ventures
 Dawson Valley projects
 China
 Indonesia
Conclusion
 Anglo Coal is committed to achieving its key
strategic goals of:
 Growth
 Continuous, sustainable improvement
 Maintaining its leading position in safety
 Investment in Indo-Pacific