| Tue 6 Dec 2011, 9:00 | | AGL - Anglo American plc - Anglo American approves 5 Mtpa Grosvenor |
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AGL
ANAAL
AGL - Anglo American plc - Anglo American approves 5 Mtpa Grosvenor
metallurgical coal project in Queensland
Anglo American plc ("the Company")
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American approves 5 Mtpa Grosvenor metallurgical coal project in
Queensland
Anglo American announces the Board approval of its 5 million tonne per annum
(Mtpa) Grosvenor metallurgical coal project in the Bowen Basin of Queensland,
Australia. The greenfield Grosvenor project is situated immediately to the
south of Anglo American`s Moranbah North metallurgical coal mine and is
expected to produce 5 Mtpa of metallurgical coal from its underground
longwall operation over a projected life of 26 years. Capital expenditure for
the Grosvenor project is forecast at US$1.7 billion(1) on a nominal basis,
representing a highly competitive capital intensity ratio for the project.
Cynthia Carroll, Chief Executive of Anglo American, said: "Anglo American is
delivering substantial near term production growth, across our copper, nickel
and iron ore businesses, with two of our four major strategic growth projects
already coming on stream during 2011. Grosvenor is the first of our next
phase growth projects and will initiate our industry leading production
growth of metallurgical coal from our Australian business over the next
decade."
The Grosvenor project is 100% owned by Anglo American and forms a major part
of the group`s strategy of tripling production of metallurgical coal from its
Australian assets by 2020 using a standard longwall and coal handling and
preparation plant (CHPP) design model. In its first phase of development,
Grosvenor will consist of a single new underground longwall mine, targeting
the same well understood Goonyella Middle coal seam as Moranbah North, and
will process its coal through the existing Moranbah North CHPP and train
loading facilities. A pre-feasibility study for expansion by adding a second
longwall at Grosvenor is under way.
Grosvenor is expected to benefit from operating costs in the lower half of
the cost curve. Synergies are also expected from the integration of Grosvenor
with Moranbah North, including from blending and yield improvement, while a
continued focus on improving longwall productivity to 100 cutting hours per
week across the business` underground operations will deliver further value.
Seamus French, CEO of Anglo American`s Metallurgical Coal business, added:
"We are excited to be developing the first growth phase of our planned
Moranbah hub which will drive our target of 12% compound annual production
growth by 2020. Grosvenor and the wider hub will produce some of the highest
quality coking coal in the world and represents a major investment commitment
for the region. Our longwall design model will enable us to replicate our
approach across our expansion footprint, ensuring the transfer of best
practice project efficiency, cost control and risk mitigation. We have also
now received confirmation of our development rights from the Queensland
government for the expansion of the Abbot Point coal port - a dedicated
export facility that would have the capacity to accommodate the growth from
our Moranbah hub."
First development coal from Grosvenor is expected in 2013 and the
commissioning of the longwall in 2016. Such project timings are contingent
upon the receipt of the appropriate licences and permits. Grosvenor has
received approval of its Environmental Impact Statement, the project`s
Environmental Authority is in train and the key Mining Lease is anticipated
in Q1 2012.
Note:
(1) Capital expenditure for the Grosvenor project is forecast at US$1.7
billion on a nominal basis. The majority of the capital expenditure will
be incurred in Australian dollars and therefore assumes certain
projected exchange rates.
Notes to editors:
Anglo American is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans bulk
commodities - iron ore and manganese, metallurgical coal and thermal coal;
base metals - copper and nickel; and precious metals and minerals - in which
it is a global leader in both platinum and diamonds. Anglo American is
committed to the highest standards of safety and responsibility across all
its businesses and geographies and to making a sustainable difference in the
development of the communities around its operations. The company`s mining
operations and extensive pipeline of growth projects are located in southern
Africa, South America, Australia, North America and Asia.
www.angloamerican.com
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8540
Emily Blyth Caroline Crampton (nee
Tel: +44 (0)20 7968 8481 Metcalfe)
Tel: +44 (0)20 7968 2192
South Africa Leisha Wemyss
Pranill Ramchander Tel: +44 (0)20 7968 8607
Tel: +27 (0)11 638 2592
Australia
Jacqui Strambi
Tel: +61 7 3834 1935
6 December 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 06/12/2011 09:00:01 Produced by the JSE SENS Department.
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