Zaheer AATC Coaltrans Bangkok 15Nov2012 Final

7/30/2019 Zaheer AATC Coaltrans Bangkok 15Nov2012 Final

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SOUTH AFRICAN COAL INEMERGING ASIAN MARKETSZaheer Docrat 15 November 2012


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LEGAL DISCLAIMER

The factual information contained in this presentation should not be deemed accurate or current exceptas of the date of issue. Anglo American Thermal Coal does not, do not intend to, and specificallydisclaim any duty to, update or correct such information.

Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer tobuy or sell shares in any jurisdiction.

Information obtained or derived from publicly available sources, that have not been independentlyverified, has been utilised in this presentation and in formulating the views expressed herein. No

representation or warranty is made as to the accuracy, completeness or reliability of any suchinformation.

Any forward looking information or views in this presentation have been prepared on the basis of anumber of assumptions which may prove to be incorrect. Actual results could differ materially from thosedescribed in this presentations as a result of factors including but not limited to the following: adverseexploration or development results; adverse due diligence findings; re-assessments of corporate ordevelopment objectives and requirements; additional technical developments and considerations;

unexpected increases in the costs of producing coal, changes in international coal or transportationmarkets, a rapid change in the value of the South African Rand particularly with respect to the US Dollar,a fundamental slow down in the worldwide economies; and other factors. Interested parties andinvestors are cautioned that any such statements are not guarantees of future performance and that theactual results or developments may differ materially from those projected in the forward-lookingstatements. This presentation should not be relied upon as a recommendation or forecast by Anglo

American Thermal Coal.


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Commodity

group1 Commodities Global rank

Anglo American is a global leader in diversified miningand a large coal producer

1. Core bus inesses only 2. Copper Mine Producer 3. Nickel Mine ProducerSource: Raw Materials Data Iron Ore, 2011; AME modi fied by TDNews cast July 2011; Brook Hunt Credit Suisse es t.2011; Wood Mackenzie Credit Suiss eest. 2011

AngloAmerican employs more than 100,000 employees globallyand is ranked No. 1 in Platinum & Diamonds

We have a broad mining portfolio ... and a global footprint1 2

Metallurgical Coal

Thermal Coal

CopperNickel

Iron Ore

Platinum

# 4

# 3

# 52# 83

# 6

# 1

De Beers # 1

Ferrous Metals

Base Metals

Coal

Diamonds

Platinum

Geographies & mined commodities

The Americas (Canada, Alaska, Chile, Brazil, Peru,Venezuela, Colombia)

Africa (Namibia, Botswana, South Africa, Zimbabwe)

Australia


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Two topics for our discussion todayAgenda

Thermal coal market overview: Asia growth fuelling the industry1

2 South African thermal coal: Competitive offering to Asian growth economies


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60,000

0

Tr$ (2005) at PPP1

120,000

100,000

80,000

202020102000

Global GDP expected to grow between 2% and 4% p.a.,depending on macroeconomics

Forecast

EIU Average

Oxford Economics

Conf Board pessimistic scenario

Conf Board base scenario

Conf Board optimistic scenario

IMF

How is the outlook for your country?

Expected growth

between

2.44.2% p.a.

(3.7% average)

1. Purchasing Power ParitySource: EIU Global GDP estimates and projections as o f Nov 2012; IMF World Econom ic Outlook October 2012; Oxford Economics October 2012; ConferenceBoard Global Economic Outlook January 2012


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Past and future GDP in emerging Asian markets

Even in Base case scenario, GDP growth of ~ 8%expected in selected Asian economies

+8%

Vietnam

Thailand

Philippines

Myanmar

Malaysia

Laos

Cambodia

17

3,074

489

912

618

270

701

16

2,852

449

849

573

252

652

15

2,638

410

791

529

232

605

14

2,445

376

736

491

213

564

13

2,270

346

687

454

197

526

12

2,122

321

648

420

183

494

11

1,979

300

602

391

172

464

10

1,874

277

589

369

160

432

CAGR1 20122017

+9%

+8%

+7%

+8%

+8%

+7%

+9%

Nominal GDP (B$ atpurchasing power parity)

Emerging Asian markets will significantlyoutperform global growth rates

1. Compound annual growth rateNote: Shown is GDP in current prices in US$Source: The Econom ist Intelligence Unit, as of October 23, 2012
http://upload.wikimedia.org/wikipedia/commons/a/a9/Flag_of_Thailand.svghttp://upload.wikimedia.org/wikipedia/commons/6/66/Flag_of_Malaysia.svg


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World wide economic growth triggers growthin power demandIncreasing wealth drives power use: Developing countries are only starting their journey

Which role will coal play in supplyingthe increased power demand?

Source: EIA; IMF; AA Econ 2012; Comm odity Research;Wood Mackenzie


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Impressive global thermal coal market growth driven

by Asian imports

2000Asia Pacific

200

166

2000Atlantic

214

155

Japan, S Korea, Taiwan3ChinaIndiaSEA2Other PacificEurope incl. RussiaNorth AmericaOther Atlantic

2012Asia Pacific

679

297

194

96

60

2012Atlantic

246

184

Compound Annual Growth Rate (CAGR)+xx%

South East Asian countries with coal import CAGR of 19% between 2000 and 2012

Thermal import1coal demand (Mt)

World coal demand today:Pacific imports 3 Atlantic imports1

World coal demand in 2000:Atlantic basin ~ Pacific basin imports1

1. Includes land borne volumes 2. South East Asia 3. North East Asia: Japan, South Korea, Taiwan Source: Wood Mackenzie

+19%

+21%

+48%


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and will continue to shift towards

Asian economies

679

297

194

9660

246

184

746

274

233

13468

275

214

973

289

385

169

88

296

229

1,198

289

551

201

106

309

238

1,526

292

808

228

148

306

228 300

968

279

199

313

226

1,800

2,038

300

1,075

355

251

309

213

+xx%

Thermal import1 coal demand (Mt)

+3%

CAGR

20122030

+8%

+8%

+10%

0%

ChinaIndiaSEA2OtherEurope4North AmericaOther Atlantic NEA3

2012 2015 2018 2021 2024 2027 2030

Compound Annual Growth Rate

South East Asian countries expected to increasethermal coal imports at 8% p.a. until 2030

1. Includes land borne volumes 2. South East Asia 3. North East Asia: Japan, South Korea, Taiwan 4. Incl. Russ iaSource: Wood Mackenzie


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South African exports alreadycovers all major Asian markets

North East Asia6.7Mt

South East Asia2.7Mt

India17.9Mt

Europe1

13.7Mt

Others2.8Mt Middle East

1.5Mt

China9.8Mt

YTD exports

South Africa well positioned tosupply emerging Asian markets

South Africa has exported ~ 55Mt this year, with increases ... ... mainly on Asian routes

"Malaysia's Tenaga seeks more

coal from South Africa"

Reuters, Feb 6, 2011

"South Africa shifted steam coal

exports from Europe to Asia"

US Department of Energy, April 25,

2012

"South Africa a traditional

exporter to Europe has been

sending more shipments to Asia"The Wall Street Journal,

Feb 6, 2012

1. Incl. Turkey, IsraelSource: Richards Bay Coal Terminal; press search


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Exports from South Africa to North East and South EastAsia are growing at ~ 40% p.a.

Taiwan

SouthKorea

Japan

20121

8,3

5,9

1,9

0,5

2011

8,0

3,9

3,5

0,6

2010

5,5

2,8

2,4

0,3

2009

3,2

2,1

0,60,5

+42%

Thailand

Malaysia

20121

3,3

3,0

2011

3,0

2,8

2010

2,8

2,4

2009

1,2

1,0

Indonesia

Mtpa Mtpa

+38%

South African exportsto South East Asia

South African exportsto North East Asia

1. Annualized JanOct dataSource: Richards Bay Coal Terminal


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Delivered prices of South African coal into South EastAsia highly competitive, second to Indonesia

Delivered prices into Port Kelang (Malaysia) from key supply regions

US$/t, Panamax 13m draft

AugJulJunMayAprMarFeb

140

120

100

80

0

United States

Colombia

Jan

Australia

Indonesia

South Africa

Sep

10

90

110

130

Note: Indonesian price adjusted for a CV to 6,000kcal, US coal not adjusted high sulphurSource: GlobalCoal


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Global seaborne thermal coal cost curve showsSouth African coal with low cash costs

Russia

79

VenezuelaChinaAustralia

73

Mozambique

8006004002000

US App

104

CanadaIndonesia

63

South Africa

62

VietnamColombia

53

MtUS (IL)

Saleable seaborne production(energy adjusted) US$ FOB/t

Source: Wood Mackenzie


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Eskom

Otherdomestic

Export

Anglo American Thermal Coal with diversified customerportfolio in terms of regions and industries

AATC high levelproduction destinations AATC exports per region Key industries for AATC coal

Year-to-date (Jan-Oct)

China

Europe3

NEA1

SEA2

Other Pacific

North America

Other Atlantic

India

1. North East Asia: Japan, South Korea, Taiwan 2. South East Asia 3. Incl. Russ ia, Turkey, IsraelSource: AATC

Low inherent moisture 13-15% ash content Good energy content

Higher CV Lower Sulphur

Consistent quality Good blend partner

High Fixed Carbon Low fines content Good AFTs (1250-1500) Uniform quality


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Safety is our Number 1 priority

Strong focus on Zero Harm mindset

Principles

Fatalities

LTI2

22

0

2

6

4

7

4

0

2

20112009

4

20072005 2006

8

201212010

6

2008

1. YTD 2. Lost time injuriesSource: AATC

3133

41

5856

4345

32

2010 201212011

0

20092008200720062005

20

40

60

Ekaya bonus scheme implemented for all

Anglo American Thermal Coal employees


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Social responsibility is of utmost importance to us

Robust implementation of SLP commitments

Progress against Mining Charter BEE procurement spend 2011: R4.15Bn (46.2% of total

influenceable spend) HDSA in Management: 55% (target 40%)

Women in Mining: 17% (target 10%) Women in Management: 19% Women in Technical Occupation 13%

Total spend in community projects:R350 million in the last 5 years

Focus Areas of Social and Labour Plans (SLPs) Infrastructure Education and Skills Development

SMME development Agriculture Environment Sports, Arts, and Culture

Strengthening partnerships with government and NGOs

Guided by the Anglo Social Way

Winter school

classes at Empucukweni

Secondary School

Vegetable garden

at Edward Matjeka

Primary School

Educator Development

Programme

Robust implementation ofSocial & Labour commitments

Source: AA


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Domestic logistics ready for increased exports as railbottleneck partly resolved ...

South Africa's coal is transportedby rail from export mines to port

+5%

2015

81

2014

81

2013

77

2012

73

2011

66

2010

63

Steep growth of 10% p.a. targetedby Transnet for TC rail throughput

1. Transnet financial yearsSource: Transnet 2012 Integrated Report

Facts and figures

Current export volume 73 Mtpa

560km railway line linking coal mines to the port

Double line, fully electrified

Trains stretch 2.5 km, loaded to 20.8 gross Mt


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... and Richards Bay is a world-class coal terminal readyfor export growth

The stockyard Capacity of 8.2 Mt in 102 piles 37 different grades possible

The conveyor network & tipplers 3 000 rail wagons per day 1h27m for tipping 100 wagons

The shiploaders Four rail mounted shiploaders 1x 11kt/h, 1x 10kt/h, 2x 8kt/h

The quay Quay of 2.2 km with 6 berths Handysize, Panamax, Capesize

It's one of the largest exportcoal terminals in the world ... ... with world class port facilities

Facts and figures 24-hour operation Nameplate capacity of 91 Mtpa 19 meter deepwater port

More than 750 ships a year Constantly setting world records...

Loading 409.809 tons of coal in 24h, and 203.384 tons into a single vessel

AATC owns 25% share in RBCTWe are the single largest shareholder with 1.8Mt stockpile space

Source: Richards Bay Coal Terminal, Wood Mackenzie


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Outlook: ~20% of South African thermal coal exportsexpected to go to North And South East Asia

5660

63 62

AATC

2015/16

81

19

2014/15

81

18

2013/14

77

18

2012/13

73

17

Estimated export volumes ... ... and regional split

Mtpa

32%

20%

18%

16%

10%

India

Other Asia

China

Europe

Middle East

Africa

Americas

Other SAproducers

We are looking to grow our business in AsiaHow much will we sell into your country in the future?

Source: Wood Mackenzie; AATC

Zaheer AATC Coaltrans Bangkok 15Nov2012 Final

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