The Future an Eye On
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O PTIMA SEPTEMBER 2010 OPTIMA VOLUME 56 NUMBER VOLUME AN EYE ON COVER: ON Tyres destined for haul trucks and E SEPTEMBER 2010 THE FUTURE earthmoving equipment are stockpiled A LOOK INSIDE ANGLO AMERICAN’S at the storage facility at Anglo American’s PLATINUM BUSINESS Mogalakwena platinum mine in South Africa. See article on page 18. PHOTO BY PLANETKB FOR ANGLO AMERICAN (PLatINUM) INTERVIEW: CYNTHIA CARROLL BRICS: THE GROWING MIGHT OF BRAZIL, RUSSIA, INDIA AND CHINA ISBN 00304050 AUSTRALIA: QUIET GROWTH IN MEtallURGical coal DISASTER SUPPORT: Practical RELIEF EFFORTS IN CHILE WELCOME CONTENTS Jim Bulten, Paul Gaw and Justin Pokarier during a routine safety inspection at Thermal Coal’s Callide mine, Australia, June 2010 In this issue of Optima, you’ll notice that some changes have been made to the overall look and feel of the publication. These align with our new brand identity, which has been designed to reflect what makes Anglo American unique and what makes it stand out from the competition. It forms part of our clear aim to secure strategic advantage and realise our ambition to be the leading global mining company. Over the years, Anglo American has earned a well- deserved reputation for thought leadership by engaging in the international debate about the major public issues of the day. Continuing in that vein, in this issue, Sir David King, formerly the UK government’s chief scientific adviser, looks at the urgent task ahead in the wake of last December’s Climate Change Conference in Copenhagen; Goldman Sachs’ Jim O’Neill examines the prospects for the BRIC countries; and Greg Mills, who heads the influential Johannesburg-based Brenthurst Foundation, highlights the actions India is taking to see the country compete on a global scale in the future. Turning to our own business, I was delighted to be interviewed by highly respected journalist Kim Fletcher on how I want to take Anglo American forward – while the features on our Metallurgical Coal and Platinum businesses show just how much work has been done on the ground to turn these companies around. 04 OPTIMA INTERVIEW 12 BRICS GROWTH 18 PLATINUM CYNTHIA CARROLL Chief executive Cynthia Brazil, Russia, India and Anglo American’s China are in line to gain CHIEF EXECUTIVE, ANGLO AMERICAN Carroll on how her open platinum business is approach is taking Anglo a larger share of global taking advantage of American forward economic power a reviving market Head of publications: Norman Barber Anglo American plc 20 Carlton House Terrace London SW1Y 5AN England Telephone: +44 (0)20 7968 8888 E-mail: [email protected] www.angloamerican.com Optima is produced by Redhouse Lane, 14 Bedford Square, London WC1B 3JA, England 24 CLIMATE CHANGE 28 COPPER PROSPECTS 32 INDIA OUTLOOK Redhouse Lane production team Editor: Rob Jones How every nation can An exploration and drilling India’s economic and Art director: Ross Behenna take action to avoid the campaign in Chile has infrastructure transition is Designers: Tony Beresford, Asami Matsufuji worst impacts of climate revealed significant copper a lesson that other nations Project manager: Anthony Cockell change opportunities should take on board 02 | OPTIMA | SEPTEMBER 2010 CONTRIBUTORS KIM FLETCHER JIM O’NEILL Kim Fletcher spent 25 years in the UK Jim O’Neill is head of global economics, national newspaper industry as a reporter, commodities and strategy research for columnist and editor. He was industrial Goldman Sachs, for which he has worked correspondent of The Sunday Times, deputy for 15 years. He has previously worked for editor of The Sunday Telegraph, editor of Bank of America and International Treasury The Independent on Sunday and editorial Management. He is a board member of the director of the Telegraph Group. He has UK’s Royal Economic Society and sits on a written and presented programmes for BBC number of European think tanks and round Radio 4. He is chairman of the UK journalists’ tables. He is a founding trustee and the training body, the National Council for the chairman of London charity SHINE, which Training of Journalists, and is managing tackles poverty and illiteracy in Africa, and director of communications consultancy Trinity he is on the board of several other charities. Management Communications. SEE PAGE 4 SEE PAGE 12 36 OPtimisinG AUSTRALIA SIR DAVID KING MATTHEW STEVENS Having joined up its disparate units over Sir David King is the director of the Smith Matthew Stevens has reported on the the past three years, Anglo American’s School of Enterprise and Environment at Australian resources sector for 28 years coal business in Australia has become the University of Oxford. He was the UK for The Age, Business Review Weekly and government’s chief scientific adviser and now The Australian. He worked as a one of the country’s leading producers head of the Government Office of Science for correspondent in London for Business of metallurgical coal. According to its seven years. In that time, he raised the profile Review Weekly from 1985-90 and as of the need for governments to act on climate European correspondent for The Australian head, Seamus French, the success is change and was instrumental in creating the from 1999-2000. He was senior editor of down to “people, people and people”. £1 billion Energy Technologies Institute. In The Australian, and editor of the Saturday 2008, he co-authored The Hot Topic on this edition. He is currently a business columnist, subject. He has chaired the government’s working in Melbourne, where he is a Global Science and Innovation Forum from committee member of The Melbourne its inception. SEE PAGE 24 Mining Club. SEE PAGE 36 OTHER CONTRIBUTORS MICHAEL COULSON (PAGE 18); NICKY McCLURE(PAGES 28 & 44); 44 nickEL ProfilE 46 DISASTER SUPPORT GREG MILLS (PAGE 32); ROB JONES (PAGE 46) The past, present and The company’s support future of a resource that after February’s earthquake The opinions expressed by contributors do not necessarily represent the views of Anglo American. Provided that permission has been obtained from the editor and on condition that acknowledgement is made to Optima, dates back more than in Chile has gone beyond newspapers and magazines are welcome to reproduce articles in whole or in part and to use illustrative material, 5,000 years a simple financial donation except where copyright © is especially reserved. SEPTEMBER 2010 | OPTIMA | 03 OPTIMA INTERVIEW DAVID WOOLFALL; all OTHER PHOTOS ANGlo AMERICAN UNLESS OTHERWISE STATED 04 | OPTIMA | SEPTEMBER 2010 THRIVING UNDER PRESSURE In three years, Cynthia Carroll has turned the tide. Initially not seen as the obvious choice for the number one job, she now has results to back up her ambition – from delivering significant cost savings and operational performance to a much improved safety record and more women coming in to the organisation. Exclusively for Optima, Kim Fletcher asks the chief executive how she really measures success. SEPTEMBER 2010 | OPTIMA | 05 OPTIMA INTERVIEW t’s early Monday morning head office and other corporate offices, paces to her desk to grab a shoulder bag, and Cynthia Carroll’s week challenging it to share around the pulling out files about new shift is already in full swing. The business the mining and other expert patterns, better extraction techniques, Collahuasi copper mine knowledge it has accumulated over single or dual global-supplier deals for I(44 per cent owned) in Chile has the years. tyres and lubricants, and for conveyor returned to normal working, Carroll explains the point of the equipment – where around a hundred though some of its sub-contractors reorganisation: “We need to get as close suppliers have been reduced to six... continue to strike; miners at as we can to where the action is associate De Beers, in South Africa, happening and where the decisions are ynthia Carroll was not an are threatening to walk out over taken. How do we become as efficient obvious fit when she arrived pay; and, in Australia, a big as we possibly can? What does the HQ Cfrom the Canadian aluminium argument is raging between the look like? What is the most efficient business Alcan as chief executive mining industry and government way to organise ourselves, given that three-and-a-half years ago, at the age over the proposed imposition of a we have decided to divest some of of 50. Anglo American was very South so-called resources ‘supertax’. these businesses?” African, very male and liked to look But in her top-floor office at Anglo inside for its leaders. Here was an American’s headquarters in London, “People talk to me. They tell me American, a woman and an outsider. the company’s chief executive is What did she find? “A company upbeat. She’s recently back from their concerns. In the past, it wasn’t with outstanding capabilities and talking to investors in Miami, at the culturally acceptable to tap the people, and a desire and a willingness Merrill Lynch Global Metals & Mining manager on the shoulder and tell to do great things – that was all on the Conference in May 2010: “I couldn’t him what you think. When it was the positive side. Where it was clear that believe the crowds of people who CEO, it was completely unheard of.” we had to improve was in safety. No wanted to listen to our story, the kind matter how much some people talked of people who a couple of years ago just about it, there wasn’t consistency, there weren’t interested in us.” Alongside those changes, the weren’t universal standards and there Cynthia Carroll talks with the air of company is energetically sweating wasn’t a clear objective of safety being a woman who has the company assets and saving money on its supply number one.” structured and organised as she wants chain.