Adding value through asset optimisation
An Anglo American case study

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Page 5: Benefits of Asset Optimisation

In 2009, the target of achieving annual benefits of $1 billion was set for AO. In the first year $1.6 billion of benefits were achieved. In 2010, over $2.1 billion of benefits were achieved. Over 85% of these benefits were sustainable rather than being one-off benefits. An example of this is the extra profit made each year by the introduction of more efficient extraction of Platinum Group Metals that resulted from the AO programme. It is expected that annual profit benefits will exceed $100 million.

One of the implementation support components of the AO programme at Anglo American involves a methodology called the Rapid Results Approach. This approach involves dedicated teams working on specific improvement projects.

They set challenging, achievable, measurable and visible goals using existing resources and capacities. It involves the sharing of ideas and solutions in a diverse team of people with different skills and specialisms. The results of these projects are measured on a daily basis. Whilst the rapid results approach focuses on the short term, the results that it achieves can then be taken forward in the long term.

Another benefit of AO is that it creates an improvement culture within the organisation. This drives ongoing improvement and change. For example, the five Operation Reviews carried out in 2010 have identified 250 different opportunities which are due for implementation in the near term.

Anglo American | Adding value through asset optimisation