10 • Consumables Reduced 15% Driving 2% total unit cost reduction. • Parts Reduced 20% Driving 3% total unit cost reduction. • Overheads Reduced 30% Driving 3% total unit cost reduction. While the mix at each site was variable, depending on mining methods and maturity of operations, the focus was always around the local drivers and how each asset could be optimized based on the resource and our view on long term value potential. Figure 1 – ANGLO AMERICAN – UNIT COSTS REDUCTIONS Actual unit cost reductions were more remarkable when you consider they were delivered without adjusting for “mining inflation”. We will discuss these points later in our notes, which will help explain why our real unit cost saving were closer to 60% over that same 9-year period. In this context, the power of portfolio management, dynamic mining strategies and continuing innovation were also key drivers in the AA transformation story. My point in reflecting on our physical footprint and connecting it to cost leadership – when you take mining’s direct impact on our human global land-based footprint, we are the single most important contributor to reducing our primary human footprint by somewhere in the range of ~30% of land on the planet. For those that do well, applying the principles across their business, the conversation around Sustainability merges with our Economic imperative, as expected by our shareholders. So, when I introduce myself to someone and I talk about what I do, I don’t start with mining. I start with my role in helping reduce our human footprint by 30%. Of course, when I do mention mining, it is a very different conversation to the one I would have been in if I started with my mining credentials. I suspect Greenpeace has never had such a great story to tell. This point of intersection YEAR I I I I I I I I I I I I I I I I I I I I I I I I 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 I I I $US COST INDEX % 10 20 30 40 50 60 70 80 90 100 x x x x x x x x x x Actual Unit Operating Costs 1.4% 1.6% 0.1% 1.2% 2.1% 2.4% 1.8% 1.2% 4.7% 8.0% 4.1% 3.2% x x x x x x 2012 Real Unit Operating Costs Annual $US Inflation
RkJQdWJsaXNoZXIy MTM0Mzk2