Annual review 2000 Anglo American plc with its subsidiaries, joint ventures and associates is a global leader in the mining and natural resource sectors. It has significant and focused interests in gold, platinum, diamonds, coal, base and ferrous metals, industrial minerals and forest products, as well as financial and technical strength. The Group is geographically diverse, with operations and developments in Africa, Europe, South and North America and Australia. Anglo American represents a powerful world of resources. Headline profit 01 Financial highlights 32 Ferrous metals 02 Chairman’s statement 33 Forest products 04 Chief executive’s statement 34 Non-core activities 08 Our world-class business 36 Exploration US$2 billion 12 Our diversity 37 The business – an overview 16 Our people 38 Board of directors 20 Safety, health & environment 40 Summary financial statement 21 Social responsibility 40 Statement of the auditors 22 Group profile 41 Summary consolidated profit 24 Operating reviews and loss account 24 Gold 42 Summary consolidated balance sheet 25 Platinum 43 Summary consolidated cash flow 26 Diamonds 44 Summary segmental analysis 28 Coal 45 Summary of exceptional items Headline profit up by 53%, with 29 Base metals 46 Summary remuneration report significantly improved markets for 31 Industrial minerals 47 Three year financial information summary platinum group metals, diamonds, 48 Notice of annual general meeting base metals, paper and pulp. The Group’s Annual Report 2000 which includes the financial statements, directors’ report and report of the auditors (which is unqualified) is available to shareholders free of charge from the Company’s Registrar. Headline profit US$ million 2000 A separate Safety, Health and Environment Report is available on request. 2,000 1999 The Annual Review 2000, the Annual Report 2000 and the Safety, Health and Environment 1,308 Report 2000 are available on the corporate website: www.angloamerican.co.uk 1998 (pro forma) 1,159 Dividend Acquisitions Disposals 190 US cents US$3.4 US$1.3 billion billion Final dividend of 130 US cents per Major acquisitions this year include Tarmac Major disposals announced this year ordinary share recommended, giving (US$1.1 billion), Shell Coal (US$959 generate proceeds of US$1.3 billion. a dividend for the year of 190 US cents million), further interests in Frantschach In addition the exchange of a 15.3% stake per ordinary share, an increase of 27% and Neusiedler (US$234 million) and Assi in FirstRand for holdings in listed mining over 1999. Sacks (US$490 million). stocks, valued in December at some US$730 million. Dividend US cents Acquisitions US$ million Disposals US$ million 2000 2000 2000 190 3,371 1,278 1999 1999 1999 150 1,318 1,229 1998 (pro forma) 1998 (pro forma) 1998 (pro forma) 124 717 977 01 Financial highlights Anglo American plc Annual review 2000 Anglo American plc has enjoyed a Major milestones included: in a court of law. The industry is successful second year since its listing impressing on government that failure in London in May 1999 and has seen > Anglo Platinum announced a to accommodate these concerns would considerable further progress towards US$2.1 billion expansion programme. both undermine the achievement of the realising its strategy as a leading global goals of the legislation and require the mining and natural resource group. We > AngloGold made investments of US$400 review by investors of existing and have delivered on our commitments to million in Mali and Tanzania. potential future project returns and focus on disposals, growth and business time frames in view of the additional expansion, and cost savings. > Anglo Coal acquired Shell Coal risks and uncertainties involved. in Australia and Venezuela and Anglo American has confidence that After directing the restructuring of the old a one-sixth interest in Cerrejón good sense will prevail. Anglo American and Minorco groups and Zona Norte in Colombia for over the formation and listing on the LSE of the US$1 billion. Harry Oppenheimer new merged Anglo American plc, Although I paid tribute to Harry with the board’s support I announced > Anglo Base Metals completed the Oppenheimer in our interim report, at the AGM last year that I was handing acquisition of control of Konkola Copper it is appropriate to reiterate our great over executive responsibilities to Mines in Zambia and received board sadness at his death. As chairman of Tony Trahar with effect from 18 July. approval for the US$454 million Anglo American Corporation and Minorco Mr Trahar’s report as chief executive Skorpion zinc project in Namibia as from 1957 to 1982, Mr Oppenheimer follows immediately hereafter and deals at well as US$200 million for smaller presided over a period of vigorous greater length with some of the matters I projects in South Africa and Chile. expansion of Anglo American’s mining and touch on below. industrial operations both in southern > Anglo Forest Products acquired Assi Africa and internationally. His bold Results Sacks for US$490 million and simplified leadership and wise judgement, which It is pleasing to record that our operating the Mondi Europe division by buying out characterised his seminal contribution profits increased by 50% to US$3.2 the minorities in Neusiedler and to the Group, will never be forgotten. billion, that headline profit rose by 53% to increasing the stake in Frantschach to a new record level of US$2 billion and that 70% in deals worth US$234 million. Directorate and staff the total dividend increased by 27% to In the prospectus we announced the 190 US cents. > Industrial Minerals acquired Tarmac appointment of Leslie Boyd and Mike King for US$1.1 billion net of disposals as vice chairmen of Anglo American plc Strategy of Tarmac USA and certain assets in the and the intention that they would serve At the AGM in May last year I announced UK. in that capacity until the AGM in 2001. that the board had agreed that the existing Consequently, both will be retiring in May strategy of the Company should be further Increased stake in De Beers and and on behalf of my colleagues on the refined to include the disposal of all removal of cross-holding board I would like to pay tribute to them industrial interests as well as the financial Since the end of the financial year, for their enormous contributions to Anglo services interests which had previously Anglo American announced a proposed American plc and its forerunners over been identified as non-core, and to focus offer together with Central Holdings many years. on seven business sectors and our Limited and Debswana to take De Beers investment in the diamond business private and increase its exposure to Leslie Boyd moved from Britain in 1970 to through De Beers. Significant progress has the diamond business from 32.2% Highveld Steel, of which he became been made towards that goal, with total of De Beers to 45% of the new DB managing director in 1974 and chairman disposals during the year amounting to Investments SA, the company that from 1983. In 1992 he was appointed US$1.3 billion. Anglo American is would hold 100% of De Beers. deputy chairman of Anglo American committed to concluding its disposal Corporation of South Africa and chairman programme for value as soon The transaction, approved by the of Anglo American Industrial Corporation as market conditions allow. De Beers boards on 13 February and to and in 1995 chairman of Anglo Platinum. be recommended to their shareholders, He has been successively chairman or Growth and expansion would, inter alia, see the cross-holding president of SEIFSA, FCI, SACOB, BSA and Secondly, in pursuit of the Company’s between the companies removed, a the SA Foundation. overall strategy, the year saw significant hitherto key unresolved strategic issue, developments in building the world-class thereby maintaining Anglo American’s Mike King played a major role from status or consolidating the niche or weighting in the FTSE 100. This is a 1961 in the development of South Africa’s geographic positions of the seven core further significant step in delivering first merchant bank, Union Acceptances business sectors of the Company. value to shareholders of Anglo American. Limited, which was founded by Anglo American and others in 1955. He was South African Minerals Development head of Corporate Finance and deputy Bill managing director until 1974 when he Discussions with the South African joined Anglo American. government continue on the Minerals He has played a leading role in our Finance Development Bill. Whilst the industry division – for 18 years as its head – and supports the goals of the proposed has been responsible for the Group’s legislation, it has outlined to government financial services interests, the largest of in a detailed commentary its concerns, which was FirstRand, of which he is centring on expropriation without deputy chairman. compensation, security of tenure and excessive ministerial discretion which We shall greatly miss their wise counsel. allows little or no room to appeal decisions 02 Chairman’s statement Anglo American plc Annual review 2000 The board is proposing for election at the AGM, Barry Davison, chief executive of Anglo Platinum, and Bill Nairn, group technical director. On conclusion of the De Beers transaction, Nicky Oppenheimer intends to resign as deputy chairman but to continue as a non-executive director, and Sir Chippendale Keswick, who is also a director of Central Holdings Limited and De Beers, proposes to resign as a non-executive director. The board intends to appoint additional new independent non-executive directors in the Julian Ogilvie Thompson course of the next 12 months. Chairman As the main objectives of transforming Anglo American plc into a global mining and natural resources company over the past four years will have been achieved on conclusion of the De Beers transaction, I propose to retire as chairman after 12 years, and from the board, on which I have served since 1970, at the AGM in 2002.