How significant is Kumba Iron Ore to Anglo American’s regional operations?

Kumba Iron Ore plays a vital role in Anglo American’s regional operations, aligning with our purpose of re-imagining mining to improve people’s lives. We are committed to ensuring beneficial coexistence with our host communities and working collaboratively with our suppliers, partners, and communities to foster thriving, healthy, and inclusive communities beyond the mining phase. We prioritize increasing levels of procurement from local suppliers and support supplier and enterprise development initiatives. In terms of economic contribution, we have generated R51 billion of shared value for the region’s economic environment and the national fiscus. Recent results indicate that we spent R1.7 billion with businesses in our host communities, with an additional R85 million invested in social development projects, including R12 million dedicated to our Covid-19 response.

How did Sishen and Kolomela perform during the pandemic, and what are your production plans for both assets in 2021-2022?

Despite the challenges posed by the pandemic, both Sishen and Kolomela performed admirably, contributing to our strong financial performance and demonstrating our business resilience. We attribute this success to our WeCare Covid-19 program, which we have implemented at our sites to protect our workforce and communities from the impacts of the pandemic.

The processing plants at Sishen and Kolomela maintained robust performance levels, showcasing the benefits of our maintenance program and improved plant availability. Despite logistical constraints and severe weather disruptions in the first half of 2021, we achieved a strong operational and financial performance, with a 12% increase in production. Our EBITDA for the year reached R44.4 billion, nearly matching the R45.8 billion achieved in the previous year.

Our ambition is to extend the life of both mines until 2040. We recently announced the extension of Sishen’s life until 2039, and we have the same objective for Kolomela. We maintain confidence in the exploration prospects in the Northern Cape.

For 2021, our total production guidance on a wet metric basis is expected to be between 40.5 and 41.5 million mt, with Sishen contributing approximately 28 million mt and Kolomela approximately 13 million mt. Looking ahead to 2022, Kumba’s total production guidance is estimated to be between 41.5 and 42.5 million mt.

How do you ensure your environmental footprint is minimized across your operations?

Minimizing our environmental footprint is a top priority for Kumba Iron Ore. We have implemented Environmental Improvement Programs (EIPs) that focus on key areas such as permitting and environmental awareness, pollution prevention and remediation, energy and greenhouse gas (GHG) emissions management, water stewardship and management, rehabilitation, mine closure, and biodiversity.

To track our performance, we set measurable goals related to energy use, GHG emission reductions, water-use efficiency, PM10 dust emissions, and high potential hazards. We conduct structured audits to ensure compliance and drive continual improvement.

Our Chief Executive’s scorecard includes performance indicators for energy and carbon, and our general managers are financially rewarded for achieving operational-level energy reduction targets. In the future, we plan to introduce incentives for individuals based on their team’s performance in meeting climate, energy, and water targets, fostering a collective effort to achieve our GHG targets.

Aligned with the Paris Agreement’s 1.5-degree scenario and Anglo American’s sustainability strategy, we are working towards ambitious climate change goals by 2030. Our commitment extends to achieving carbon neutrality across our operations by 2040.

We manage the relationship with our host communities through the Anglo American Social Way, our social performance management system. It establishes requirements for all our managed or operated sites, including community engagement, mitigation of adverse social impacts, and pursuit of development opportunities.

We have a strong track record of supporting transformation and contributing to South Africa’s growth and development, going beyond compliance in all our efforts to transform our business.

How does Kumba Iron Ore view the challenge of climate change and its implications?

Climate change is undoubtedly one of the defining challenges of our time, and we recognize its complex global nature and far-reaching implications. It is a critical strategic issue for Kumba Iron Ore, and we are dedicated to understanding and addressing the challenges it poses. We aim to align our operations with global efforts to mitigate climate change and contribute to a sustainable future.