Barro Alto

Annual
Report

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Delivering on our promises

In 2011, we delivered three of our four strategic growth projects.

Our successful delivery of three major mining projects on or ahead of schedule during the year is a great achievement, and will contribute significant new volumes of iron ore, copper and nickel as the new operations continue to ramp up during 2012.

Barro Alto

What we said we'd do

We would meet our scheduled production date for first metal from our $1.9 billion Barro Alto nickel project in Brazil by the end of the first quarter of 2011. The project would use proven metallurgical processing technology to ensure that we both met that date and experienced a relatively trouble free ramp-up process thereafter. We planned that Barro Alto would more than double our Nickel business's ferronickel production.

What we did and what it means to the business

We delivered first metal in March 2011, on schedule. Barro Alto was the first of our four major strategic growth projects to begin production and will be a key contributor to Anglo American's 35% organic volume growth by 2014. The new nickel plant will reach its full production capacity at the beginning of 2013 and will average 41,000 tonnes per year of nickel over its first five years of full production, making use of our low risk and proven technology and rotary kiln electric furnace process.

Barro Alto
Los Bronces

Annual
Report

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Delivering on our promises

In 2011, we delivered three of our four strategic growth projects.

Our successful delivery of three major mining projects on or ahead of schedule during the year is a great achievement, and will contribute significant new volumes of iron ore, copper and nickel as the new operations continue to ramp up during 2012.

Los Bronces

What we said we'd do

We would deliver the Los Bronces expansion project in Chile on time, producing first copper in the fourth quarter of 2011. The next phase, the ramping-up period, is scheduled to be completed by end-2012. The expansion will increase the mine's output by an average of 200,000 tonnes of copper per annum over the first 10 years, with highly attractive cash operating costs.

What we did and what it means to the business

We delivered first copper production in October 2011, on schedule(1). The expansion of Los Bronces is expected to more than double (on average over the first three years of full production) the mine's existing output of 221,000 tonnes per year. We have a 12 month ramp-up period ahead until we reach full production, during which time we will be increasing processing plant throughput from 61,000 tonnes to 148,000 tonnes of ore per day. At peak production levels, Los Bronces is expected to be the fifth largest copper mine in the world, with reserves and resources that support a mine life of over 30 years and with further expansion potential.

  • (1) The schedule for delivery of first production from projects refers to the information published in Anglo American's 2010 Annual Report.
Los Bronces
Kolomela

Annual
Report

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Delivering on our promises

In 2011, we delivered three of our four strategic growth projects.

Our successful delivery of three major mining projects on or ahead of schedule during the year is a great achievement, and will contribute significant new volumes of iron ore, copper and nickel as the new operations continue to ramp up during 2012.

Kolomela

What we said we'd do

We would commission Kolomela, a key element in our South African iron ore growth strategy, by the end of the first half of 2012. Thereafter, we would ramp up iron ore output to between 4 and 5 Mt during 2012, and reach full design capacity of 9 Mtpa in 2013.

What we did and what it means to the business

The successful commissioning of Kolomela – a new iron ore mine in South Africa's Northern Cape – was the third of our four major growth projects to be delivered in 2011. Kolomela was commissioned five months ahead of schedule, on budget and shipped its first product from the port of Saldanha to China in December 2011. This shipment is a significant milestone towards achieving the production ramp-up schedule of 4 to 5 Mt in 2012 and the expectation of reaching full production of 9 Mtpa in 2013. The commissioning of the Kolomela project is in line with our growth strategy of ramping up our South African iron ore production to 70 Mtpa by 2019.

Kolomela