Adding value through asset optimisation
An Anglo American case study

Page 1: Introduction

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Anglo American is one of the world’s largest mining companies. The company operates in Africa, Europe, South and North America, Australia and Asia. It owns a portfolio of mining businesses and natural resources. These include diamonds and platinum group metals. Other activities include the mining and extraction of copper, iron ore and coal. The company employs over 100,000 employees. In 2010...
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Page 2: Reviewing operations

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[audio= operations]

A company should continually review its processes to ensure they are as efficient as they can be. Every aspect of what a business does needs to be subject to a review process. An effective review process can secure business improvement. Making improvements then helps the business to maximise its efficiency, competitiveness and profitability.To achieve improvements Anglo American employees...
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Page 3: Asset management and optimisation

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[audio= management and optimisation]

Like any other company Anglo American manages a value chain. The value chain is the chain of activities involved in making a product more desirable to the end user. For Anglo American this involves extracting natural resources which may be thousands of metres underground. Minerals and metals then need to be transported and treated before they can be made into finished products. Anglo American...
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Page 4: The Asset Optimisation process

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[audio= Asset Optimisation process]

Anglo American’s optimisation process sets out a clear view of how operational improvement can be planned for. There are five phases, starting with identifying an opportunity and finishing with putting an improvement into practice. An example of this process was the recent development of methane flaring at the New Denmark coal mine in South Africa. The colliery drills boreholes from the...
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Page 5: Benefits of Asset Optimisation

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[audio= 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...
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Page 6: Conclusion

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Efficiency lies at the heart of Anglo American’s operations. Anglo American operates across the globe. AO is an approach to sharing learning about best practice across a very large company. As a result of the AO programme, Anglo American has already gained substantial sustainable benefits worth billions of pounds.
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