Ore Reserves and Mineral Resources Report 2020 Re-imagining mining to improve people’s lives Mining has a smarter, safer future. Using more precise technologies, less energy and less water, we are reducing our physical footprint for every ounce, carat and kilogram of precious metal or mineral. We are combining smart innovation with the utmost consideration for our people, their families, local communities, our customers and the world at large – to better connect precious resources in the ground to all of us who need and value them. And we are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in our host countries and ultimately for billions of people around the world who depend on our products every day. Contents Integrated Annual 01 Introduction Our reporting suite Report 2020 02 Locations at a glance You can find this report and others, including 04 Feature: Woodsmith Project the Integrated Annual Report and the Sustainability Report, on our corporate website. Integrated Annual Report 2020 Ore Reserves and Mineral Resources Summary For more information, see: 06 Estimated Ore Reserves www.angloamerican.com/investors/ 08 Estimated Mineral Resources annual-reporting Ore Reserve and Mineral Resource estimates 10 Diamonds FutureSmart Mining™ 16 Copper In order to deliver on our purpose we are 20 Platinum Group Metals changing the way we mine through smart innovation across technology, digitalisation 25 Iron Ore and sustainability. 28 Coal To discover more about the 35 Nickel future of mining see: 37 Manganese www.angloamerican.com/futuresmart/ futuresmart-mining 38 Crop Nutrients 39 Definitions Social Channels 40 Reserve and Resource Reconciliation Overview 48 Competent Persons List AngloAmerican @angloamerican Anglo American 52 Glossary angloamerican angloamericanplc 54 Other Anglo American publications Ore Reserves and Mineral Resources Introduction The Ore Reserve and Mineral Resource estimates presented various other factors (in particular density) that may influence the in this report were prepared in accordance with the confidence that can be assigned to the Mineral Resource. Most Anglo American plc Group Ore Reserves and Mineral business units have developed commodity-specific scorecard- Resources Reporting Policy. based approaches to the classification of their Mineral Resources. The appropriate Mineral Resource classification is determined by This policy stipulates that the Australasian Code for Reporting the appointed Competent (or Qualified) Persons. The choice of of Exploration Results, Mineral Resources and Ore Reserves 2012 appropriate category of Mineral Resource depends upon the edition (the JORC Code) be used as a minimum standard. Some quantity, distribution and quality of geoscientific information Anglo American plc subsidiaries have a primary listing in South available and the level of confidence in these data. Africa where public reporting is carried out in accordance with the South African Code for Reporting of Exploration Results, Mineral The estimates of Ore Reserves and Mineral Resources are stated as Resources and Mineral Reserves (the SAMREC Code). The SAMREC at 31 December 2020. The figures in the tables have been rounded, Code is similar to the JORC Code and the Ore Reserve and Mineral and if used to derive totals and averages, minor differences Resource terminology appearing in this report follows the definitions may result. in both the JORC (2012) and SAMREC (2016) Codes. Ore Reserves The Ore Reserves and Mineral Resources Report 2020 should be in the context of this report have the same meaning as ‘Mineral considered the only valid source of Ore Reserve and Mineral Reserves’ as defined by the SAMREC Code and the CIM (Canadian Resource information for the Anglo American Group exclusive of Institute of Mining, Metallurgy and Petroleum) Definition Standards Kumba Iron Ore and Anglo American Platinum Limited, which publish on Mineral Resources and Mineral Reserves. their own independent Annual Reports. The information on Ore Reserves and Mineral Resources was It is accepted that mine design and planning may include some prepared by or under the supervision of Competent Persons as Inferred Mineral Resources. Inferred Mineral Resources in the Life defined in the JORC or SAMREC Codes. All Competent Persons have of Mine Plan (LOM Plan) are described as ‘Inferred (in LOM Plan)’ sufficient experience relevant to the style of mineralisation and type separately from the remaining Inferred Mineral Resources described of deposit under consideration and to the activity which they are as ‘Inferred (ex. LOM Plan)’, as required. These resources are undertaking. All the Competent Persons consent to the inclusion declared without application of Modifying Factors. Reserve Life in this report of the information in the form and context in which it reflects the scheduled extraction period in years for the total Ore appears. The names of the Competent Persons (CPs) along with Reserves in the approved Life of Mine Plan. their Recognised Professional Organisation (RPO) affiliation and years of relevant experience are listed in this report. The Ownership (Attributable) Percentage that Anglo American holds in each operation and project is presented beside the name Anglo American Group companies are subject to a comprehensive of each entity and is the Group’s effective ownership interest. programme of reviews aimed at providing assurance in respect Operations and projects which fall below the internal threshold for of Ore Reserve and Mineral Resource estimates. The reviews are reporting (25% attributable interest) are not reported. Operations conducted by suitably qualified Competent Persons from within or projects which were disposed of during 2020 and hence not the Anglo American Group or by independent consultants. The reported are: Elizabeth Bay and Douglas Bay (Diamonds). frequency and depth of the reviews is a function of the perceived risks and/or uncertainties associated with a particular Ore Reserve In South Africa, the Minerals and Petroleum Resources Development and Mineral Resource. The overall value of the entity and time Act, Number 28 of 2002 (MPRDA) that was implemented on that has elapsed since an independent third-party review are 1 May 2004, (subsequently amended by the Minerals and Petroleum also considered. Those operations/projects that were subjected Resources Development Amendment Act 49 of 2008) effectively to independent third-party reviews during the year are indicated transferred custodianship of the previously privately held mineral in footnotes to the tables. rights to the State. Both the JORC and SAMREC Codes require due consideration of A Prospecting Right is a right issued in terms of the MPRDA that is reasonable prospects for eventual economic extraction for Mineral valid for up to five years, with the possibility of a further extension Resource definition. These include long-range commodity price of three years. forecasts which are prepared by in-house specialists largely using A Mining Right is a right issued in terms of the MPRDA and is valid for estimates of future supply and demand and long term economic up to 30 years, with the possibility of a further extension of 30 years. outlooks. The calculation of Mineral Resource and Ore Reserve The Minister of Mineral Resources will grant a renewal of the Mining estimates are based on long term prices determined at the Right if the terms and conditions of the Mining Right have been beginning of the second quarter of each year. Ore Reserves are complied with and the applicant is not in contravention of any dynamic and more likely to be affected by fluctuations in the prices relevant provisions of the MPRDA. of commodities, uncertainties in production costs, processing costs and other mining, infrastructure, legal, environmental, social and In preparing the Ore Reserve and Mineral Resource statement governmental factors which may impact the financial condition and for South African assets, Anglo American plc has adopted the prospects of the Group. Mineral Resource estimates also change following reporting principles in respect of Prospecting Rights and tend to be most influenced by new information pertaining to and Mining Rights: the understanding of the deposit and secondly by conversion to – Where applications for Mining Rights and Prospecting Rights have Ore Reserves. Unless stated otherwise, Mineral Resources are been submitted and these are still being processed by the relevant additional to (i.e. exclusive of) those resources converted to Ore regulatory authorities, the relevant Ore Reserves and Mineral Reserves and are reported on a dry tonnes basis. Resources have been included in the statement. Mineral Resource classification defines the confidence associated – Where applications for Mining Rights and Prospecting Rights have with different parts of the Mineral Resource. The confidence that been initially refused by the regulatory authorities, but are the is assigned refers collectively to the reliability of the Grade and subject of ongoing legal process and discussions with the relevant Tonnage estimates. This reliability includes consideration for the authorities and where Anglo American plc has reasonable fidelity of the base data, the geological continuity predicated by expectations that the rights will be granted in due course, the level of understanding of the geology, the likely precision of the the relevant Mineral Resources have been