Aa Annual Report 2017

ANNUAL REPORT 2017
BUILDING ON FIRM FOUNDATIONS

DELIVERING A SUSTAINABLE FUTURE
INTRODUCTION

In 2017, Anglo American’s centenary year, our relentless focus on

driving cost and productivity efficiencies through the operations, and
on continuing to upgrade the quality of our portfolio, resulted in a
step-change in operational performance and profitability. Our ability
to maintain strict capital discipline and drive down net debt has
substantially restored our balance sheet.
In 2018, we expect to continue strengthening the balance sheet to
ensure sufficient flexibility through the cycle – with our focus on
further improving operational performance and consistent cash flow
generation. We will build on the firm foundations we have put in place –
considering the appropriate balance between cash returns and value
accretive growth options from within our substantial undeveloped
mineral endowment.
As we look forward to our next 100 years, we aim to lead in an industry
that remains vital to the development of modern society. With our
innovative approach to sustainability and the application of technologies
to reduce the physical impacts of mining, our goal will be – as it always
has been – to deliver value to all our stakeholders and continue to make
a real and positive difference.
ANNUAL REPORT 2017

FOR A SUSTAINABLE FUTURE
3 1
Throughout the Strategic Report we use a range

2 of financial and non-financial measures to assess
our performance. A number of the financial measures,
including underlying earnings, underlying EBIT,
underlying EBITDA, underlying earnings per share,
net debt, attributable return on capital employed
(ROCE) and attributable free cash flow are not
defined under IFRS, so they are termed ‘Alternative
Cover images 2. Innovation – 3. People – Other sources of information Performance Measures’ (APMs).
1. Portfolio – At Mogalakwena At Venetia You can find this report and others, including the
Los Bronces platinum mine in diamond mine in Sustainability Report and the Ore Reserves and Management uses these measures to monitor
(50.1% owned) in South Africa’s arid South Africa are Mineral Resources Report, on our corporate website. the Group’s financial performance alongside IFRS
the Chilean Andes Limpopo province, (left to right) process measures because they help illustrate the underlying
is one of the world’s technical lead Dean plant monitors or more information, visit
F financial performance and position of the Group.
great copper mines. Bothma inspects Aggy Majadibodu www.angloamerican.com/reporting We have defined and explained the purpose of each
In collaboration fibre-optic sensing and Riaan Tlou and of these measures on pages 194 to 197, where we
with prominent equipment, enabling ore processing provide more detail, including reconciliations to the
specialists, we accurate, real-time superintendent Basis of reporting closest equivalent measure under IFRS.
have developed a monitoring of Lindsey Miyen. The Anglo American plc Annual Report for the year ended
climate-scenario mine water flows. Women make up 31 December 2017 is produced in compliance with UK regulations. These APMs should be considered in addition to, and
model, which is Mogalakwena is a nearly 20% of the Additionally, and for the first time, we have compiled this report not as a substitute for, or as superior to, measures of
being fed into a pioneer in using this Group’s workforce; using the Guiding Principles and Content Elements set out in the financial performance, financial position or cash flows
life of mine plan type of distributed many roles formerly International Integrated Reporting Council’s <IR> Framework. reported in accordance with IFRS. APMs are not
designed to make sensing technology, the preserve of men uniformly defined by all companies, including those
the operation more which represents an are now undertaken Integrated Reporting aims to demonstrate how companies create in the Group’s industry. Accordingly, APMs may not
climate-resilient. important step on by women. value sustainably over time, for a range of stakeholders – consistent be comparable with similarly titled measures and
our journey towards with our own business approach and strategy. This report, therefore, disclosures by other companies.
waterless mines. includes a comprehensive overview of our material matters, in the
eyes of our stakeholders, and the impact they have on the value we ‘Tonnes’ are metric tons, ‘Mt’ denotes million tonnes, ‘kt’
create. More detailed information on our sustainability performance denotes thousand tonnes, ‘Mct’ denotes million carats
is provided in our Sustainability Report. and ‘koz’ denotes thousand ounces; ‘$’ and ‘dollars’
denote US dollars and ‘cents’ denotes US cents.
PERFORMANCE HIGHLIGHTS CONTENTS
GROUP
PERFORMANCE
Strategic report
UNDERLYING EBITDA◊ OPERATING PROFIT
Strategic report
02 At a glance
$8.8 bn $5.5 bn
04 Chairman’s statement
06 Our business model
08 Chief Executive’s statement
10 The purpose to reward journey
11 Marketplace review
2017 $8.8 bn 2017 $5.5 bn 14 Our material matters
2016 $6.1 bn 2016 $1.7 bn 16 Strategic element: Portfolio
20 Strategic element: Innovation
29 Strategic element: People
32 Capital allocation
UNDERLYING EARNINGS PROFIT ATTRIBUTABLE 34 Key performance indicators
PER SHARE◊ TO EQUITY SHAREHOLDERS 36 Group financial review
$2.57 $3.2 bn
40 Managing risk effectively
46 De Beers
49 Copper
51 Platinum
54 Iron Ore and Manganese
2017 $2.57 2017 $3.2 bn 57 Coal
2016 $1.72 2016 $1.6 bn 60 Nickel
62 Corporate and other
Governance
NET DEBT◊ TOTAL DIVIDENDS PER SHARE 63 Chairman’s introduction
$4.5 bn $1.02
65 Directors
68 Executive management
70 The Board in 2017
78 Sustainability Committee
79 Nomination Committee
2017 $4.5 bn 2017 $1.02 80 Audit Committee
2016 $8.5 bn 2016 $0 84 Audit Committee report
88 Directors’ remuneration report
92 Remuneration Committee
93 Directors’ remuneration policy
ATTRIBUTABLE FREE GROUP ATTRIBUTABLE 102 Annual report on Directors’ remuneration
CASH FLOW◊ ROCE◊ 116 Statement of directors’ responsibilities
116 Responsibility statement
$4.9 bn 19% Financial statements

118 Independent auditor’s report
122 Primary statements
126 Notes to the financial statements
2017 $4.9bn 2017 19%
181 Financial statements of the Parent Company
2016 $2.6 bn 2016 11% 184 Summary by operation
185 Key financial data
186 Exchange rates and commodity prices
TOTAL RECORDABLE CASE Ore Reserves and Mineral Resources
NUMBER OF FATALITIES FREQUENCY RATE (TRCFR) 188 Estimated Ore Reserves
9 0.63
190 Estimated Mineral Resources
Other information
192 Glossary of terms
194 Alternative Performance Measures
2017 9 2017 0.63 198 Production statistics
201 Quarterly production statistics
2016 11 2016 0.71 202 Non-financial data
203 Directors’ report
206 Shareholder information
IBC Other Anglo American publications
lternative Performance Measures

A
Words with this symbol ◊ are defined in the
Alternative Performance Measures section
of the Annual Report on pages 194-197.
Anglo American plc Annual Report 201701

STRATEGIC REPORT AT A GLANCE
OUR BUSINESS
AT A GLANCE
Anglo American is a globally diversified mining DIAMONDS COPPER
company with a portfolio of world class competitive DE BEERS COPPER

mining operations and undeveloped resources.
As we provide the raw materials on which the $1,435 million $1,508 million
world’s developed and maturing economies Underlying EBITDA◊ Underlying EBITDA◊
depend, we do so in a way that not only generates 16% 17%

Group EBITDA◊ Group EBITDA◊
sustainable returns for our shareholders but that 8 3
also strives to make a real and lasting contribution Mining assets(1) Mining assets(1)
to society. 33.5 Mcts 2
Production Projects
(100% basis)(2) Finland (Sakatti)
Peru (Quellaveco)
For more information
See page 46 579.3 kt
Production

See page 49
2 FINLAND
CANADA
UNITED KINGDOM
1
COLOMBIA SINGAPORE
BOTSWANA ZIMBABWE
PERU BRAZIL
2 1 1
2 5
3 NAMIBIA
CHILE 2 3 6 6 AUSTRALIA
2
SOUTH AFRICA
(1)
Number of operating mining assets at 31 December 2017. Reflects the Eskom-tied thermal coal
and Union (Platinum) disposals. De Beers’ mining assets include Orapa, Letlhakane and Damtshaa
which are managed as one operation, the ‘Orapa regime’. Namdeb includes Northern Coastal
Mines, Southern Coastal Mines and Orange River Mines. The Group’s 40% share in Samancor,
classified as located in South Africa, is considered to be one asset within the portfolio.
(2)
With the exception of Gahcho Kué, which is on an attributable 51% basis.
02 Anglo American plc Annual Report 2017

Strategic report
PGMs BULK COMMODITIES AND OTHER MINERALS CORPORATE AND OTHER
PLATINUM I RON ORE AND COAL NICKEL

MANGANESE
$866 million $2,357 million $2,868 million $81 million $(292) million
Underlying EBITDA◊ Underlying EBITDA◊ Underlying EBITDA◊ Underlying EBITDA◊ Underlying EBITDA◊
10% 27% 32% 1% (3)%

Group EBITDA◊ Group EBITDA◊ Group EBITDA◊ Group EBITDA◊ Group EBITDA◊
7 4 12 2 United Kingdom
Mining assets(1) Mining assets(1) Mining assets(1) Mining assets(1) (Headquarters
and Marketing),
2,397 koz 45.0 Mt 19.7 Mt 43.8 kt Australia,
Production platinum Production iron ore – Production Production
Kumba metallurgical – export Brazil, Chile,
1,557 koz For more information Singapore
Production palladium 16.8 Mt (wet basis) 29.2 Mt See page 60
(Marketing hub),

Production iron ore –
Minas-Rio
Production
thermal – export
South Africa
See page 51 Corporate office locations
3.5 Mt For more information
Production See page 57
See page 62
manganese ore

See page 54
GEOGRAPHIC
OVERVIEW
NUMBER OF EMPLOYEES(3) WAGES AND BENEFITS PAID(4)
Thousand $m
Brazil 3 Brazil 185

Chile 4 Chile 368
Other South America 1 Other South America 9
North America 1 North America 97
South Africa 52 South Africa 1,860
Other Africa 4 Other Africa 190
Australia/Asia 2 Australia/Asia 348
Europe 2 Europe 313
69 3,370
TAXES BORNE AND COLLECTED(5) LOCAL PROCUREMENT SPEND(6)

(3)
Average number of employees,
excluding contractors and $m $m
associates’ and joint ventures’
employees, and including a
Brazil 168 Brazil 108
proportionate share of employees Chile 395 Chile 55
within joint operations.
(4)
Includes social security costs of
Other South America 6 Other South America 21
$141 million borne by the Group North America 66 North America 69
and $774 million of taxes collected
on behalf of employees and paid
South Africa 1,278 South Africa 1,002
to government. Other Africa 256 Other Africa 768
(5)
Based on numbers disclosed within
the Group’s income statement and
Australia/Asia 764 Australia/Asia 58
excludes the impact of certain Europe 174 Europe –
associates and joint ventures.
(6)
See page 193 for definition.
3,107 2,081

STRATEGIC REPORT CHAIRMAN’S STATEMENT
FOUNDATIONS BUILT
OVER 100 YEARS
The company’s pursuit since 2013 of greater operational

efficiency and of upgrading the quality of its asset portfolio
is reflected in further improvements in financial and
operational performance. Free cash flow increased strongly
to $4.9 billion on an attributable basis, with profit for the
financial year attributable to equity shareholders doubling to
$3.2 billion, and underlying EBITDA improving by 45% to
$8.8 billion.
Net debt had reduced by a further $4.0 billion to $4.5 billion
at the year end, well below the targeted level for the year.
Importantly, we regained our investment grade credit rating
and were able to restore dividend payments to shareholders
six months earlier than expected, establishing a payout
policy at a targeted level of 40% of underlying earnings.
As a result of this strong performance, the Board is
“ It was a great privilege to be appointed recommending a final dividend of 54 US cents per share,
payable in May 2018, taking total dividends to shareholders
chairman of Anglo American in the in respect of 2017 to $1.02 per share.
Group’s centenary year.” Operationally, we are producing greater volumes of product
from fewer assets and with fewer people. Despite the
Stuart Chambers, Chairman
disposal of a number of assets that no longer met our
portfolio criteria, production was 5% higher than in the
previous year, while productivity improvements continue
Anglo American is one of the great names in mining, the trend we have seen since 2015. This focus on costs
with considerable relevance both local to its operations and productivity is a continuous imperative for the business
and, through its products, to the everyday lives of to ensure the sustainability of free cash flow generation
billions of people. and returns.
This is a global business, with a distinct and high quality A customer focused mindset needs to be a priority in any
asset portfolio, which I am determined to see that we business, and I am pleased to see the approach taken by
develop in the most productive and responsible way, the Marketing team to drive the appropriate commercial
while continuing to strengthen Anglo American’s decisions across the value chain. Given their finite nature,
longstanding reputation as a leader in innovative and it would be irresponsible not to optimise the value in our
sustainable mining. mineral resources, for the benefit of all our stakeholders.
AN IMPROVED TRADING ENVIRONMENT AN ASSET-LED STRATEGY

During 2017, global economic growth quickened to its Anglo American today is a radically changed business
fastest pace since the financial crisis. In the mining sector, from what it was just five years ago. The portfolio has been
demand turned out to be considerably stronger than had materially upgraded, resulting in today’s suite of generally
been envisaged some 12 months earlier. This had a larger, longer life, more productive and competitive
positive effect on many of the metals and minerals that operations. Combined with the innovative practices and
Anglo American produces, with notable price increases in technologies that we develop and deploy across the
copper; the bulk commodities (thermal and metallurgical business, and the people and culture that we nurture,
coal, and iron ore); and certain of the platinum group metals our aim is to deliver industry-leading shareholder returns
such as palladium and rhodium. Our diamond business, and lasting value to all our stakeholders.
De Beers, is unique amongst our competitors and further Underpinning our strategy is our sharp focus on capital
highlights our diversification and differentiation from our allocation – a key and continuous role of the Board as the
peers. Stronger trading conditions and an increase in the guardian of shareholders’ funds. Coming from outside the
price index for rough diamonds supported De Beers’ mining industry, I am well aware of the mis-steps made by so
production growth. many companies in the pursuit of growth and it is important
that our financial resources are directed towards the best-
FINANCIAL AND OPERATING PERFORMANCE value outcomes for shareholders.
Starting with safety, while we were able to report yet another During 2017, no major new projects were given a green
year of improvement in injury rates in 2017, it is with deep light, though we do expect the opportunity presented by
regret that nine lives were lost at our operations. A single our Quellaveco copper project in Peru to come before
fatality is, of course, unacceptable and we still have far to go the Board for development consideration during 2018.
to reach our target of zero harm. I will expand more on this
critical area both below and in our Sustainability Report.

FUTURESMART MINING™ Anglo American has demonstrated that operations – even
deep-level underground mines – can go for long periods
Innovation on all fronts
without incurring a single serious injury. We have shown that
I believe that the mining industry, with its important role in
our target of zero harm is attainable, and I believe that, if
society in general, has a bright future, but only if all mining
each and every one of us is vigilant in looking out for each
companies are committed to investing effort and resources
other, we are all more likely to get home safely day in, day
into a sustainable future. Anglo American has long been
out, year after year.
recognised as a company that does the right thing and that
cares deeply about its people and all those its business
touches. We can never rest on our laurels and, as we look to GOVERNANCE
Strategic report
the future, there is no doubt that we will face considerable
Executive remuneration
challenges in safety, energy, water and climate change.
As a chairman, I know there are few more contentious
FutureSmart Mining™ is Anglo American’s innovation-led subjects than executive remuneration. Through our
approach to sustainable mining – and it is critical for the Remuneration Committee, chaired by senior independent
future of how we do business. It is about finding new ways director Sir Philip Hampton, the Board had been seeking for
to make mining safer, more efficient, more sustainable, some time to address certain investors’ concerns about the
more harmonised with the needs of host communities, and potential quantum of the total remuneration packages of
with a smaller environmental footprint. I am pleased to see our executive directors. So, it is reassuring that, at the 2017
the progress that the technical team is making on a number AGM, we received overwhelming shareholder support for
of fronts. our revised remuneration policy, which we believe to be fair,
performance-based and comparable with our peer group as
Our Sustainability Strategy
a major global mining company. We continue to pay close
Anglo American has a proud and longstanding reputation as
attention to our remuneration structures to try to ensure that
a leader in innovative and sustainable mining. I am delighted
they deliver a fair and appropriate outcome for both
that the company will shortly be embarking upon a new and
shareholders and employees.
ambitious journey to again push the boundaries of positive
change through such innovative thinking, aimed very much Board composition
at addressing certain of the major challenges we face as an I believe that a board sets the tone for the entire business
industry and the rightful and increasing expectations of all that it governs. This is why it is so important that the directors
our stakeholders. are drawn from the widest talent pool, best reflecting our
society, as well as bringing the right mix of skills, diversity
Aligned to the UN’s 2030 Sustainable Development Goals,
and experience to match the full scope of the Group’s
our new Sustainability Strategy will set out a number of
business activities and value chain. I have inherited a
ambitious medium to long term targets that will drive the
capable, high calibre board and I am committed to its
work we are doing around the natural environment, the
ongoing refreshment.
long term prosperity of our local communities, and the
proactive shaping of policy and ethical standards to drive
greater trust and transparency amongst our stakeholders THANKS
– from host governments and communities to civil society
Finally, I wish to pay tribute to Sir John Parker, who after
and customers.
more than eight years, stepped down as chairman at the end
of October. Sir John is a highly experienced and respected
“ Underpinning our strategy is our sharp focus on leader, a masterful negotiator and organiser, who could be
tough, but was always fair – and unfailingly courteous.
capital allocation – a key and continuous role of
After almost four months as your chairman, I would like to
the Board as the guardian of shareholders’ funds.” give a personal thank you to Sir John for his words of advice
to me as we worked together during the handover period; to
Sir Philip Hampton and the non-executive directors for their
Keeping people safe
great support; and to Mark and his management team for
A further aspect of our FutureSmart Mining™ work is
their time in helping to bring me up to speed. Lastly, and
focused on keeping our people out of harm’s way in
most importantly, I would like to thank all Anglo American’s
underground mines, where safety records have long shown
employees, who continue to work tirelessly, giving their
the considerably greater risks compared with open cut
very best, and who I know were so proud to celebrate the
operations. For example, and with a number of partners,
company’s 100th anniversary during the year.
the Group is developing automated and continuous mining
vehicles designed to create far greater rock stability and Our Strategic Report
less variance in the quality of ore extracted, with people Our 2017 Strategic Report, from pages 2 to 62, was
well separated from areas of high risk. reviewed and approved by the Board on 21 February 2018.
The company’s safety record in 2017 makes very plain to
me why this and other work is so pressing. Although our
intense focus on preventing harm in the workplace was
reflected in an 11% year-on-year decrease in recordable
injury rates, building upon the 51% decrease achieved since
2012, I am deeply saddened that we lost six people in our
Platinum business and three in our Coal business, all in Stuart Chambers
South Africa. I can assure you that the Board is working Chairman
closely with the management team to ensure that
momentum is sustained to address the clear challenges
we face to prevent further loss of life.

STRATEGIC REPORT OUR BUSINESS MODEL
OUR BUSINESS MODEL

Anglo American draws upon a number of key inputs from both its central expertise and its
diversified operating businesses that, through expert allocation, development, extraction and
marketing, create sustainable value for our shareholders and our diverse range of stakeholders.
GROUP INPUTS
Financial Other natural resources Relationships with footprint, providing a suite
Our corporate centre allocates
OUR UNIQUELY
Mining and processing our stakeholders of options for delivering value
our financial resources where activities have long been major Open and honest engagement over the long term.
they can be put to work most
effectively to deliver optimal
users of water and energy. Our
technical and social expertise
with our stakeholders is critical
in gaining and maintaining our Plant and equipment
Our procurement and
DIVERSIFIED
financial returns for our
shareholders.
combines to provide advice
and hands-on support to the
social and legal licences to
operate and, therefore, the technical teams form strong
relationships with major
PORTFOLIO
operations to mitigate our sustainability of our business.
Know-how suppliers to deliver tailored
We link our industry-leading
water and energy We engage with a wide range
equipment and other solutions Quality
requirements, while also of stakeholders to ensure
technical and marketing
developing new technologies effective two-way relationships. to enable best in class The high quality and long
knowledge to ensure we invest operating performance
our efforts and capital in key
that have the potential to
Ore Reserves and and cost-effectiveness. life of our mineral assets
significantly reduce our
leverage points in the ‘mine to
environmental footprint. Mineral Resources from which we will deliver
market’ value chain. We have an extensive resource
base across our businesses
leading shareholder returns.
and across a wide geographic
People
Our people are the business.
OUR PEOPLE-CENTRIC
We aim to resource the organisation VALUE CHAIN
with a capable, engaged and
productive workforce and are We will invest in those points in the
committed to ensuring
no harm comes
value chain that provide us with the
best return on our investment.
HOW MATERIALITY to any of GOVERNANCE
our people.
AND RISK
WE Identifying and
Our governance controls ensure we
effectively respond to those matters
CREATE understanding our material that have the potential to cause financial,
SHARED matters and risks is critical
in the development and
operational and reputational harm to our
business, while acting ethically and with
DISCOVER PLAN AND
BUILD
VALUE delivery of our strategy. integrity for the benefit of all
For our Material matters People
our stakeholders.
See pages 14-15 Our simplified
Organisation Model
For our Governance Report
See pages 63-116 OUR INNOVATIVE
allows our businesses to
design structures and roles that
CORE PROCESSES
provide clear accountability
and appropriate authority Discovery
to get our work done. Our award winning exploration teams discover mineral
deposits in a safe and responsible way to replenish the
resources that underpin our future success.
Innovation Model
Our strengthened in-house technology capability provides
world class, innovative solutions across our assets, supporting
OPERATING BUSINESS INPUTS the delivery of step-change operating performance.
Operating Model
Financial mine production plans to Relationships with underpin our future success The application of our Operating Model drives a
Our businesses’ strong ensure we provide products our stakeholders – both to extend the lives of more stable, predictable and higher level of
focus on working capital to our customers around the Working within our social existing mines and to
management, productivity world, meeting their specific performance framework, it is provide longer term near-
operating performance, resulting in improved
and cost discipline helps to technical and logistical the goal of our operations to asset and greenfield options. safety, productivity and lower costs.
drive sustainable positive requirements. build and sustain constructive
Plant and equipment Project development
cash flows. relationships with our
Other natural resources
communities and host Our businesses implement The successful development
Know-how It is critical that our businesses local procurement policies and execution of our capital
countries that are based
Our businesses work closely responsibly manage all the that support suppliers based projects reduces expenditure
on mutual respect,
with our Technical function and natural resources used in their in the host communities close
transparency and trust. and ensures predictability
Marketing business to apply processes, given the finite to our operations – making a
innovative mining methods nature of mineral resources, Ore Reserves and significant socio-economic
of outcome against our
and technologies to realise scarcity of water and energy Mineral Resources contribution and building performance
even greater value from our sources at some of our Our exploration teams stronger communities, as well objectives.
resource base, and optimise operations, and input cost work with our businesses as lowering logistics costs.
pressures. to discover mineral deposits in
a safe and responsible way to
replenish the resources that

OUTPUTS
Our outputs are the products that GROUP PRODUCTION ATTRIBUTABLE FREE
meet the growing consumer and other GROWTH (1) CASH FLOW◊
demands of the world’s developed
and maturing economies. Mining and
5% $4.9 billion
Increase over 2016
processing activities also result in the
Strategic report
unavoidable disturbance of land and TOTAL WATER CO2 EQUIVALENT
Value creation seabed, generation of mineral residue, WITHDRAWALS EMISSIONS
Assets that offer – either use of fresh water and energy, as well as
atmospheric emissions and water discharges,
306 Mm3 18.0 Mt
in isolation or in combination
with other assets in the all of which we strive to minimise through
portfolio – the most attractive our innovative approach.
long term value-creation potential.
Diversification
The diverse composition and scale
of our portfolio create a measured risk
profile, allowing us to leverage resources,
expertise and relationships to deliver
strong returns. STAKEHOLDER VALUE
Our Organisation Model ensures we have the right As we strive to deliver sustainable returns to our
people in the right roles doing the right value-adding shareholders, we are acutely aware of the potential
work. From the financial, technical, marketing and other value creation we can offer to our full range of
expertise provided from the corporate centre, through stakeholders. Through our core business activities
our entire value chain from mine to market, it is our – employing people, paying taxes to governments
people that create the sustainable value that all our and procuring from host communities – we make
stakeholders demand and expect. a significant and positive contribution to the
countries where we operate. Beyond our direct
mining activities, we create and sustain jobs, build
infrastructure, support education, and help improve
healthcare for employees and local communities.
MINE PROCESS MOVE MARKET END OF LIFE
PLAN INVESTORS SUPPLIERS
$1.02 $2.1 billion

Total dividends paid and Local procurement
Across every aspect of our business, we are thinking proposed per share expenditure
innovatively about how we work to ensure the safety
GOVERNMENT LOCAL COMMUNITIES
of our people, enhance our sustainability performance,
and deliver industry-leading margins and returns. $3.1 billion 120,812
Taxes borne and collected(2) Jobs created and
Marketing maintained through
The value from our mineral resources and market positions EMPLOYEES enterprise development
is optimised by our dedicated Marketing business, driving
$3.4 billion
programmes since 2008
appropriate commercial decisions across the value chain
– from mine to market – including working directly to
tailor products to our customers’ specific needs. Wages and benefits paid(3)
Sustainability model
Integrating sustainability into core business
processes has been a longstanding priority for
Anglo American. The corporate centre drives
the sustainability agenda and offers expert
advice, and hands-on support, to
operations facing complex
sustainability challenges.
HOW WE MEASURE SAFETY AND HEALTH PRODUCTION
THE VALUE WE CREATE ENVIRONMENT COST

SOCIO-POLITICAL FINANCIAL
Our seven pillars of value underpin
everything we do. Each pillar has defined PEOPLE
Key Performance Indicators (KPIs) and For our KPIs
targets that we set the business and See page 34
against which we measure performance,
both financial and non-financial.
(1)
Pro forma growth in copper equivalent production, excluding disposals.
(2)
Based on numbers disclosed within the Group’s income statement and excludes the impact of certain associates and joint ventures.
(3)
Includes social security costs of $141 million borne by the Group and $774 million of taxes collected on behalf of employees and paid to government.

STRATEGIC REPORT CHIEF EXECUTIVE’S STATEMENT

we improved our underlying EBITDA margin by a further five

percentage points. Profit attributable to equity shareholders
doubled from $1.6 billion to $3.2 billion. And we ended the
year showing a $4 billion reduction in net debt, at $4.5 billion,
well ahead of our target – even after dividend payments.
Given where we are in the commodity price cycle, we intend
to strengthen the balance sheet further in 2018. Our return
on capital employed (ROCE) improved to 19%, above our
targeted 15% through-the-cycle return. While an individual
year is too short a period to assess returns, our focus on
ROCE, as set out in 2013, is one of the key measures around
which our decisions are made.
In delivering improved free cash flow, we were also in a
position to restore dividend payments six months early,
while also regaining our investment grade rating. Combined
“ We have transformed the nature and with the proposed final dividend payment of 54 cents
per share, payable in May 2018, total dividends paid to
quality of our portfolio, contributing to shareholders in respect of 2017 will amount to $1.02 per
Anglo American’s materially improved share. As stated previously, dividend payments will be based
on a targeted payout level of 40% of underlying earnings
performance and prospects.” through the commodity price cycle.
Mark Cutifani, Chief Executive
OPERATING PERFORMANCE
At the heart of the business turnaround is the implementation
Our focus on quality assets and the portfolio decisions of our Operating Model. In 2017, we delivered 9% more
that we made through the commodities down cycle, product, at a 26% lower unit cost, compared to our 2012
along with internal restructuring and work process baseline. Over five years, that represents an 80%
changes, have built the firm foundations for our productivity increase – and 28% in 2017 alone. In dollar
broad-based business delivery. Combined with terms, we exceeded our 2017 cost and volume improvement
an improved price environment, we have delivered a target, delivering $1.1 billion. Over five years, that is
strong financial result. This reflects a renewed sense $4.2 billion of annual underlying EBITDA improvement. Such
of purpose in our people and their determination to improvements are generally achieved without additional
deliver results through the cycle. capital, so we continue to improve our ability to generate
free cash flow and increase returns from existing capital
employed. While we have delivered a material operational
SAFETY turnaround in recent years, we still believe there is significant
Our safety record in 2017 is deeply saddening and was further improvement ahead. In 2018, we expect a further
our single disappointment. We lost nine of our people in fatal $800 million of benefit and, by 2022, we are targeting an
accidents, all in South Africa. Every leader in our business additional $3-4 billion annual underlying EBITDA run-rate
understands it is unacceptable to continue to work where improvement from production volumes, productivity
there is a likely consequence of injury. Let me assure improvements and cost reductions.
you that we have made significant and urgent operational
interventions to manage activity risks to end fatal incidents PORTFOLIO
across all operations. Safety is our most critical area of focus,
and while we must recognise significant progress over recent The quality, long life and growth potential of our mineral
years, reducing our safety incident rates by more than 40%, assets are the foundation of our global business. Over the
we still have a long way to go on our journey to zero harm. last five years, we have transformed the nature and quality
of Anglo American’s portfolio, contributing to the materially
improved financial and operational performance. We have
FINANCIAL PERFORMANCE moved from a total of 68 assets in early 2013 to 36. The
Cash flow is our ultimate measure of business performance discipline of divesting assets that do not meet our return
– while returns on capital assess whether we are using criteria or long term value potential will continue. We will
shareholders’ funds in a prudent and efficient manner. also continue to pursue a prudent portfolio balance where
concentration in a single commodity, geography or end-user
We set out to further strengthen the balance sheet in 2017 market is closely scrutinised to ensure we do not overweight
and we have done so through a combination of wide-ranging capital allocation based on a single consideration.
self-help work, in terms of productivity and costs and
capital discipline, along with receiving better than expected As we divest less attractive assets, we replace them with
prices for many of our products. In 2017, we generated a assets of a higher quality and cash generation profile, thereby
93% increase in attributable free cash flow to $4.9 billion. lifting the overall quality of the portfolio. New portfolio
Underlying EBITDA increased by 45% to $8.8 billion and contributors include Grosvenor in Metallurgical Coal,

Gahcho Kué at De Beers and the Minas-Rio iron ore mine, embedded our Organisation Model across the Group,
all in ramp-up mode, while we also progress undeveloped providing clarity of accountabilities and minimisation of work
options, ensuring a well-phased organic growth pipeline. duplication, thereby increasing our aggregate effectiveness
Our most advanced option is the Quellaveco copper deposit and efficiencies. And, we are working hard to create working
in southern Peru, which benefits from considerable local environments and an inclusive and diverse culture that
community and government support, and that we expect encourage the high performance and innovative thinking
to bring to the Board for consideration during 2018. that our business requires to retain its commercial and
competitive advantage.
INNOVATION – FUTURESMART MINING™
Strategic report
CAPITAL ALLOCATION
From resource exploration and discovery, and through
every step of the value chain to delivering our products Our value-based approach to capital allocation ensures we
into our customers’ hands, FutureSmart Mining™ is have a business that: delivers sustainable free cash flow
Anglo American’s innovation-led approach to sustainable with returns well above our weighted average cost of capital;
mining. Working in partnership beyond mining, we are that delivers returns of cash to shareholders in the form of
looking well beyond our own industry to re-imagine the dividends; and that can grow where we see opportunities to
future of mining, using open-innovation principles and materially improve our delivery of cash flow and returns over
partnerships to find solutions that will materially improve the longer term. Our targeted 40% dividend payout ratio
efficiencies and our competitive positions. recognises the importance of disciplined decision-making
through the cycle, while potential growth investments
The technologies we are developing will fundamentally
must of course demonstrate their value. We are then clear
change the way we extract and process our products and will
that in the event of there being excess cash, this is returned
provide the next step-change in operating performance –
to shareholders.
creating significant safety improvements and major energy,
water and capital cost savings. From technologies that are
available today, to those such as swarm robotics and the use OUTLOOK
of ‘dry water’, the future of mining will be very different – to the
With a relatively broad-based global growth outlook,
extent that previously inaccessible or uneconomic orebodies
the expectation is for continued growth in most major
will become mineable, both technically and in an acceptable
economies in 2018. However, we are suitably conservative
way to our host communities and countries. We intend to
in our planning assumptions and we will continue to drive
remain at the forefront of this revolution.
improvements across the business to deliver free cash flow
Sustainability and to continue our balance sheet strengthening. As we look
Anglo American has a long track record as a leader in ahead, it is clear that today’s more resilient Anglo American
sustainable, responsible mining, and a reputation for doing is well positioned to benefit as we hold our focus on the
the right thing. We will be introducing what we believe to be quality of our portfolio, improving individual asset quality,
a progressive and industry-leading Sustainability Strategy, maintaining future growth optionality, and a continuous
aligned to the Sustainable Development Goals of the UN, improvement approach to operational performance and
setting out a series of stretch goals relating to our host our commercial positions.
communities, the natural environment, and the governance
of our industry, together with a new collaborative approach
THANK YOU
to regional economic development.
Anglo American’s centenary milestone in 2017 is great
Engagement – faith groups
testimony to generations of people associated with us. As
Innovation extends to all corners, considering mining’s role
chief executive, I thank all our employees for their diligence,
in meeting the needs of society. Our work with community
motivation, care for each other, and their loyalty. I also thank
faith groups as a leading participant in the Mining and Faith
our diverse range of stakeholders for their support, and
Reflections Initiative recognises that many relationships
those people and organisations that, over a wide spectrum
with communities and NGOs are guided by faith-based
of fields, partner Anglo American in some form.
organisations. A very positive initial dialogue with the Vatican
is being broadened into a more ecumenical approach I am also grateful for the guidance of the Board in a year
encompassing the Church of England and the Methodist which saw a change in both chairman and finance director.
Church, amongst others. With greater mutual understanding, At the end of October, Sir John Parker stepped down as
we are better placed as true partners in developing our chairman after more than eight years in the role. Sir John
businesses and communities towards a better future. was at the helm through the most challenging period I have
seen in my 40+ years in the mining industry, and I would
Marketing
like to thank him personally for his wise counsel. And my
Equally important is how we think differently about
thanks also to René Médori, our finance director of 12 years
maximising the value from our mineral resources and market
– we wish him the very best in his new ventures.
positions. Today, we better understand and address our
customers’ specific needs through direct long term Together with the management team, we are working
relationships, while also leveraging our capabilities in the closely with Stuart Chambers, our new chairman, and the
financial and physical markets for mutual benefit. Our progress Board as we build upon the firm foundations we have
to ensure that the prices we secure for our products reflect created to fulfil this great company’s full potential.
their quality and security of supply is evident in the expansion
of our underlying EBITDA margin over the last five years.
PEOPLE
Ours is a people business – whether they are our employees,
our stakeholders in all their many forms, or our shareholders.
Our people are not assets; they are more than assets and Mark Cutifani
represent the heart and soul of our business. We have Chief Executive

STRATEGIC REPORT THE PURPOSE TO REWARD JOURNEY
THE PURPOSE TO REWARD JOURNEY

Our purpose
Mining has a smarter, safer future. Using more precise extraction technologies, less energy and 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 the resources
in the ground to the people 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. Anglo American is re-imagining mining to improve people’s lives.
Our strategy
Our strategy is to secure, develop and operate a portfolio of high quality and long life resource assets, from which we will deliver
leading shareholder returns. We achieve this through innovative practices and technologies – in the hands of our world class
people – towards a common purpose.
Portfolio A Innovation B People C

The quality and long life of our mineral Across every aspect of our business, we Our people are critical to all that we do.
assets are the foundation of our global are thinking innovatively about how we The partnerships we build locally and globally
business. We focus on securing and operating ensure the safety of our people, enhance are central to maintaining our regulatory and
assets that offer the most attractive long term our sustainability performance, and deliver social licences to operate and our sustained
value-creation potential, as measured by superior value for all our stakeholders. commercial success.
sustainable cash flow and returns.
From exploration to delivering our products We create inclusive and diverse working
The scale and diversity of our portfolio to our customers, FutureSmart Mining™ is our environments that encourage and support
allows us to leverage our financial resources, innovation-led approach to sustainable mining. high performance and innovative thinking.
technical expertise, and supplier relationships This approach, coupled with the operational
Our Organisation Model ensures we have the
towards delivery on our potential and to the improvements being delivered from our unique
right people in the right roles doing the right
benefit of our customers, creating a measured Operating Model, is fundamentally changing
value-adding work at the right time, with clear
risk profile and supporting strong returns. the way we extract, process and market our
accountabilities that minimise work duplication
products, and will provide the next step-change
and increase capability and effectiveness.
in operating and financial performance.
For more on Portfolio For more on Innovation For more on People
See pages 16-19 See pages 20-28 See pages 29-31
Capital allocation
Underpinning our strategy, we have a value-focused approach to that are subject to a demanding risk framework and that meet our
capital allocation, with clear prioritisation: maintain asset integrity; stringent value criteria and, in the event of there being excess cash,
ensure a strong balance sheet; and pay dividends to our this is returned to shareholders.
shareholders, determined on an earnings-based payout ratio. For more on Capital allocation
Discretionary capital is then allocated towards growth investments See pages 32-33
Delivering our strategy

We track our strategic progress on an ongoing basis using KPIs that are based on our seven pillars of value:
Pillar of value Description Pillar of value Description
Safety and Health To do no harm to our workforce Production To sustainably produce valuable product
To minimise our impact on the environment To be competitive by operating

Environment Cost
as efficiently as possible
To partner in the benefits of mining with local
Socio-political To deliver sustainable returns
communities and government Financial
to our shareholders
To create a sustainable competitive advantage
People
through capable people and an effective,
For our KPIs
performance driven organisation See pages 34-35
Our values
Our values guide
everything we do Safety Care and respect Integrity Accountability Collaboration Innovation
Reward The main elements of the remuneration package are basic salary,
Anglo American’s directors’ remuneration policy is designed annual bonus and long term incentive plan (LTIP).
to encourage delivery of the Group’s strategy and creation of Full details are set out in the Directors’ remuneration report on
stakeholder value in a responsible and sustainable manner. pages 88-115
Annual bonus Long term incentive plan (LTIP)

Annual bonus performance measures include: The LTIP performance measures are aligned to
•• 50% on underlying earnings per share (EPS). EPS is one of the our strategic objectives over a three-year performance period.
Group’s key financial measures of performance and is set on an Vested LTIP awards are subject to clawback and must be held
annual basis to ensure targets are demanding yet realistic for an additional two years to encourage alignment of executive
•• The remaining measures include project delivery, business and shareholder interests.
improvement, stakeholder engagement and talent management The LTIP performance measures and weightings are:
•• A modifier is applied depending on the extent to which •• 70% subject to Group Total Shareholder Return (TSR), with
safety and sustainability targets are met two-thirds relative to the Euromoney Global Mining Index and
•• To help ensure sustainable long term performance, 60% one-third relative to the constituent of the FTSE 100 index
of any annual bonus is deferred into shares for a minimum •• 30% subject to a balanced scorecard of financial and strategic
of three years and is subject to clawback. objectives, including environmental and health targets.

STRATEGIC REPORT MARKETPLACE REVIEW
MARKETPLACE
REVIEW
A CAUTIOUSLY POSITIVE OUTLOOK
Strategic report
The world economy recovered slightly in 2017, providing
the basis for a more positive outlook for the first time in five %
years. According to the IMF, global GDP growth was 3.6% World 2015 3.4
for 2017, moderately higher than its April forecast of 3.5%. 2016 3.2
The IMF has also increased its growth forecast slightly for 2017 3.6
2018, from 3.6% to 3.7%. Eurozone 2015 2.0
2016 1.8
Over the course of the year, there were broad-based 2017 2.1
upward revisions in the Eurozone, Japan, emerging Asia, China 2015 6.9
emerging Europe and Russia – where growth outcomes
2016 6.7
in the first half were better than expected – more than
2017 6.8
offsetting downward revisions for the US and the UK.
India 2015 8.0
China continued to surprise on the upside, relative to
2016 7.1
commentators’ expectations, as a number of measures
2017 6.7
proved to be positive for the economy.
South Korea 2015 2.8
Commodity prices also fared well, with prices for the 2016 2.8
majority of Anglo American’s products performing better 2017 3.0
than the market had expected. Japan 2015 1.1
2016 1.0
CHINA’S SLOWDOWN 2017 1.5

United States 2015 2.9
While concerns continue to be raised around China and 2016 1.5
its economy, the authorities’ policy of gently moderating 2017 2.2
growth appears to be working. The IMF forecast growth
Source: IMF WEO October 2017
rate for the country increased further to 6.8% in 2017
(2016: 6.7%), reflecting stronger economic growth in the
first half of the year, as well as robust external demand for
The US faced significant policy uncertainty during
China’s products and services. The IMF’s growth forecast
2017, associated with the Trump administration’s slow
reflects a slower rebalancing of activity away from
reform implementation and lags in the renegotiation of
investment towards services and consumption, despite
the North American Free Trade Agreement with Mexico
higher projected debt potentially limiting the scope for
and Canada. The progress on tax reform, which has the
further fiscal stimulus. According to the IMF, if recent
potential for positive near term growth effects, has been
efforts to curb the expansion of credit are accelerated, this
slow. Meanwhile, tax legislations and debt ceiling issues
would help further to reduce the remaining risk of a sharp
are unresolved and will likely lead to further debate
growth slowdown in China, which would have adverse
between the parties.
international repercussions.
In South Africa, the Mining Charter was gazetted. The
China’s 19th Party Congress in October marked the start
Chamber of Mines brought an application to judicially
of the ‘New Era’ for Xi Jinping and the Communist Party.
review and set aside this latest Charter. The Chamber
By 2020, Beijing seems likely to prioritise financial
also sought to interdict the Minister of Mineral Resources
deleveraging, poverty reduction and environmental
from implementing the Charter, pending finalisation of
protection, with less focus on economic-growth targets. An
the Review Application. In order to avoid the hearing of
exit from large-scale fiscal stimulus and a slowing housing
the interdict application, the Minister gave a written
market may add some downward economic pressure.
undertaking that his department will not implement or
apply the provisions of the Charter in any way, pending
GLOBAL POLITICAL AND POLICY ENVIRONMENT final resolution of the judicial review. On 17 February 2018,
the Chamber of Mines and the Department of Mineral
Growth in most of the advanced economies accelerated
Resources jointly agreed to postpone the court application
during the first half of 2017, relative to the second half of
in respect of the Reviewed Mining Charter, that was due
2016, with both domestic and external demand contributing
to be heard in the High Court on 19 to 21 February.
to the improved statistics. The US is estimated to have
Anglo American believes that the postponement will provide
grown by 2.2% in the year, with Japan and South Korea by
the opportunity to engage in order to reach an amicable
1.5% and 3.0%, respectively. The Eurozone is expected to
solution for the benefit of all stakeholders.
have expanded by 2.1%, with Germany, France and Italy
having estimated growth rates of 2.1%, 1.6% and 1.5%,
respectively. The one exception was the UK, where growth
is estimated to have reduced to 1.7%.

STRATEGIC REPORT MARKETPLACE REVIEW
Indexed 2017 prices

1.5 Change in average annual
price (2017 vs 2016)
Price Index, 1 January 2017 = 1.0
Anglo American 16%

Palladium 42%
Metallurgical coal 31%
Thermal coal 31%
1.0 Copper 27%
Iron ore 22%
Nickel 8%
De Beers price index 3%
Platinum (4)%
0.0
Jan 2017 Dec 2017

Anglo American basket price Platinum Metallurgical coal
De Beers price index Palladium Thermal coal
Copper Iron ore (Platts 62% CFR China) Nickel
Source: Anglo American Commodity Research
In India, the IMF economic growth projection for 2017 was reaching $7,000/tonne for the first time in three years. The
revised down to 6.7% (2016: 7.1%), reflecting lingering higher average prices also brought greater scrap volumes
disruptions associated with the currency exchange initiative to the market, helping to offset some of the primary
introduced in November 2016, as well as transition costs supply shortfall.
related to the launch of the national Goods and Services
Over the long term, the market is expected to remain tight.
Tax (GST) in July 2017. The GST promises the fiscal
Demand for refined copper continues to grow, with potential
unification of India’s vast domestic market, and is among
upside from electric vehicles (EVs), their associated
several reforms being implemented that may result in a
infrastructure, and the renewable-energy sector. Supply is
more positive growth outlook.
expected to continue to struggle to meet growing demand,
given the limited project pipeline, declining grades and more
COMMODITY REVIEW challenging mining conditions.
Diamonds Nickel demand increased by 5%, driven primarily by
Early signs are that global consumer demand for increases in global stainless steel output, which rose by
diamond jewellery registered positive growth in 2017 6%. On the supply side, threatened mine closures in the
in US dollar terms, following a marginal increase in 2016. Philippines had less of an impact on ore supply than
Sustained diamond jewellery demand growth in the US was was initially expected, while a partial lifting of a ban on
once again the main contributor to this positive outcome. ore exports from Indonesia, together with a ramp-up
Demand for diamond jewellery by Chinese consumers grew of new Indonesian nickel pig iron production, saw refined
marginally in local currency and dollar terms. In contrast, production recover some of the losses seen during 2015
consumer demand for diamonds softened in India and the and 2016. This was not enough, however, to prevent an
Gulf states, both in local currency and dollar terms, while overall deficit in the refined nickel market, which helped to
Japan’s consumer demand growth was flat in local currency lift prices to an average of 472 c/lb, 8% higher than in 2016.
and lower in dollars.
Overall, the nickel market saw a second consecutive year of
Diamond producers’ primary stocks are estimated to deficit, though LME stocks remained at high levels. Looking
have reduced considerably during the first half of 2017, ahead, demand for nickel may experience a potentially
as sentiment in the midstream improved and rough and significant boost from batteries for EVs, which is expected
polished inventories normalised for businesses in this to keep the nickel market in focus over the years ahead.
segment of the value chain. However, as a result of US
Precious metals
retailers tightly managing their inventories and the earlier
Primary platinum supply in 2017 declined by 2%, owing
timing of Diwali in India, there was a slight seasonal build-up
mainly to lower Russian shipments, as sales from inventory,
of polished inventory in the midstream going into the fourth
and output from alluvial deposits declined. In South Africa,
quarter. Overall, early indications are that additional
supply remained relatively flat, despite processing facility
consumer marketing undertaken during the main selling
issues experienced by some in the industry. The modest
season had a positive effect on polished demand in the US,
decline in primary platinum supply was, to a large extent,
China and India in the final quarter of the year, leading to a
offset by increased secondary supply (+3%) as autocatalyst
beneficial effect on overall polished inventories.
recycling increased to record levels.
Base metals
Gross platinum demand was 5% lower, mainly as a result of
Global refined copper consumption grew by 2% in 2017,
a steep decline (-14%) in platinum demand from Chinese
with China, which now accounts for almost 48% of global
jewellery manufacturers and Japanese investment bar sales
refined demand, continuing to display robust demand
returning to more normal levels. Autocatalyst demand
growth (+3%), notably from the infrastructure, home
remained robust, with increased light-duty diesel vehicle
appliance and machinery sectors.
production outside Europe and higher demand from the
Copper prices averaged 280 c/lb in 2017 (2016: 221 c/lb), heavy-duty diesel sector offsetting the decline of light-duty
reflecting a tighter market, as disruptions to supply during diesel vehicle production within Europe. Demand from the
the first half of the year more than offset ramp-ups of new industrial sector returned to record levels (+7%), with the
supply. This led to the first annual decline in copper mine electrical (+12%), glass (+24%) and petroleum (+13%)
output since 2011. The tight market, coupled with renewed demand segments experiencing double digit growth.
investor confidence, saw prices surge in the fourth quarter,

Average platinum prices were 4% lower as the market Iron ore prices fared significantly better than in 2016, with
moved into surplus, owing to lower gross platinum demand the CFR China 62% Fe benchmark averaging $71/dmt,
and increased secondary supply, despite the modest (2016: $58/dmt), though with significant volatility
decline in primary production. throughout the year. On the supply side, the net addition of
around 40 Mt of low-cost Australian and Brazilian iron ore
Primary palladium supply declined by 2%, reflecting
displaced both higher-cost seaborne and domestic Chinese
lower shipments from Russia. In contrast, secondary
supply. Grade-related price spreads widened significantly as
supply increased strongly (+17%). Outflows from Exchange
steelmakers preferred high-grade iron ore as they focused
Traded Funds (ETFs) continued in 2017 and, over the past
on increased productivity owing to high costs of coking coal,
three years, more than 1.5 million ounces of metal has
high steelmaking margins, and environmental restrictions.
Strategic report
returned to the market, providing much needed market
liquidity in a time of strong autocatalyst demand. Palladium The metallurgical coal market experienced another year
autocatalyst demand reached new highs and grew 6%, of supply tightness and pronounced price volatility. The
with the strongest growth occurring in North America, as focus on safety in the Chinese domestic coal sector – and
new emissions legislation resulted in higher loadings, and accompanying shutdowns – continued into 2017, while
with China also posting significant gains. In the industrial structural reforms, which aim to eliminate excess capacity
sector, growth in demand from the chemicals sector more and restore sector profitability, remain on track. Meanwhile,
than offset declines in demand in both the electrical and Australian export volumes were disrupted by a series of
dental sectors. events, including Cyclone Debbie, mine shutdowns and
port queues. Chinese and Australian disruptions have
While all palladium supply rose by 3%, gross demand was
necessitated increased supply from other regions to fill the
10% higher than in the prior year, resulting in the market
gap, including from the US, Mozambique, Indonesia and
remaining in deficit. The persistent market deficits of the
Mongolia. As with iron ore, price differentials between
past six years have had a significant impact on the palladium
higher- and lower-grade coals have widened, reflecting
market, with the price trading at around $1,000/ounce by
steelmakers’ drive for productivity, as well as relative
the end of 2017, at a premium to platinum for the first time
tightness at the premium end of the market.
in 16 years, and averaging 42% higher than in 2016.
The thermal coal market also saw the positive price effects
In the near future, platinum markets are expected to remain
of the Chinese domestic market rationalisation, which
balanced, with limited potential for demand growth or
supported both coal imports into China and the seaborne
upside for mine output from South Africa or elsewhere.
price. On the supply side, Australia was stable, while
Palladium is expected to remain in deficit for the foreseeable
Indonesia was constrained by mining issues arising from
future as petrol engine automotive demand continues its
ongoing wet weather. The Atlantic region saw coal prices
upward trend, with limited opportunity for an increase in
supported by higher electricity prices, partly driven by
primary production. With palladium trading above platinum,
nuclear outages in France.
it is becoming more likely that platinum is substituted back
into petrol autocatalysts. The timing and extent of such a
move remains uncertain, but is not expected in the short OUTLOOK
term owing to practical and regulatory hurdles.
Although commodity markets and prices are becoming
Bulk commodities more positive, the sustainability of certain commodities’ very
Global steel demand is estimated to have increased by positive recent performance remains uncertain, with risks
around 2% in 2017, supported by healthy demand to the Asian outlook in particular. Demand for niche-grade
conditions in a number of markets. In China, consumption materials is starting to provide an opportunity for some
remained robust, rising by an estimated 2-3%, driven by commodity producers, which may persist for some time.
an extended upswing in the property cycle and continued However, as supply struggles to either catch up with
growth in infrastructure investment. The government’s demand growth, or adjust downwards in line with any
crackdown on polluting and inefficient industry has reduction in demand, it is likely that there will be ongoing
eliminated an estimated 120 Mt of basic oxygen furnace commodity price volatility that reflects the normal dynamics
(BOF) and electric arc furnace (EAF) capacity, and all illegal of the industry.
induction furnace capacity, over the past three years.
These reforms, as well as additional seasonal closures over
winter, sharply increased profit margins, encouraging the
remaining BOF and EAF producers to increase productivity
through the use of higher-quality raw materials and higher
scrap rates.
Such changes also reduced China’s ability to maintain
exports at the record levels of recent years, allowing
other regions to plug the gap. In 2017, crude steel output,
excluding China, rose by an estimated 5%, or 40 Mt in
2017, much of this growth being supported by scrap
and direct-reduced iron-based steel production from
the US, Turkey, Iran, India and Vietnam.

STRATEGIC REPORT OUR MATERIAL MATTERS
OUR MATERIAL MATTERS Anglo American’s stakeholders include our customers,

host communities, employees and unions, partners,
governments, multinational organisations, broader civil
society, trade associations and suppliers, in addition to
our shareholders who own the business. In some instances
we participate in multi-stakeholder initiatives where, by
definition, multiple stakeholder groups are involved to
provide a more collaborative and holistic view on the issues
facing the industry.
UNDERSTANDING WHAT IS
IMPORTANT TO OUR STAKEHOLDERS OUR APPROACH TO DETERMINING WHAT
AND OUR BUSINESS IS IMPORTANT
Identifying and evaluating matters that are of common
In line with best-practice corporate reporting,
material interest to our stakeholders and to our business,
Anglo American’s Annual Report includes a
and understanding how they may affect our ability to create
comprehensive assessment of not only the principal
value over time, are integral to our planning processes and
risks facing the business, but also those matters that
help support the delivery of Anglo American’s strategy.
our stakeholders and we believe have a material
bearing on the success of the business over time. Our process for determining those matters involves
three steps: consultation, analysis and approval.
By engaging with our stakeholders and being aware of
their perspectives, and by understanding the risks we The consultation process in 2017 involved extensive
face, we are better placed to make informed decisions desktop research, including: review of the Group Risk
that help support the delivery of our strategy. Register; global media coverage and analyst reports on
Anglo American and the mining sector; and analysis of
minuted Board and executive discussions. We also
STAKEHOLDER ENGAGEMENT
conducted an external consultation survey with a wide
Our licence to operate depends on constructive range of stakeholders, including investors, communities,
relationships with a wide and diverse range of stakeholders. customers, suppliers, governments, civil society and
Effective stakeholder engagement helps us to better industry groups. We will continue to conduct such
communicate our business performance, decisions and engagement on a regular basis.
activities that may have a material impact on, or are of
significant interest to our stakeholders.
STAKEHOLDER GROUPS ENGAGEMENT OPPORTUNITIES
Investors Annual General Meeting, investor roadshows,

one-on-one meetings, results webcasts and
investor days
Communities Socio-Economic Assessment Toolbox (SEAT),

surveys, community accountability forums,
and complaints and grievance procedures Principal
risks
Governments and Ongoing engagement across all levels of
multilateral institutions government (national, regional and local) and
multilateral organisations (e.g. UN, EU, World
Bank) in relation to policy and legislation of
CONSULTATION SURVEY
relevance to responsible business practices
Employees and Face-to-face dialogue between employees

trade unions and line managers, employee surveys, BOARD CAPITAL
INSIGHTS STRATEGY
dialogue through established industrial REVIEW ALLOCATION
relations channels and meetings with unions
Suppliers and Focused supplier events, strategic supplier

contractors relationship management, local procurement
and small business development initiatives
Civil society (NGOs, faith One-on-one interactions, stakeholder Material

groups, academia) partnerships and initiatives matters
Customers Commodity and product-specific marketing

and one-on-one meetings
Industry/business Association memberships, industry events,

associations peer-to-peer meetings

MATERIAL MATTERS IN 2017
The matters identified through our materiality process Each material matter covers a number of topics and issues,
were naturally numerous and wide-ranging. These were and some also intersect with specific principal risks facing
then analysed and prioritised by senior management, and the Group, as identified in the Group Risk Register. Principal
then reviewed and approved by the Board. risks are those risks, or combination of risks, that would
threaten the business model, future performance, solvency
In order for us to report against these material matters
or liquidity of Anglo American. An analysis of the Group’s
effectively, highlight connectivity and demonstrate how
principal risks, including mitigation strategies, can be found
they affect the delivery of our strategy, we have set them
on pages 42-45 of this report.
out under the headings listed in the table below.
Strategic report
For our Principal risks
See pages 42-45
Matters identified as material to our stakeholders and our business include:

MATERIAL MATTERS AREAS OF IMPACT
Safety and Health business. A safe and healthy workforce contributes to an Strategic element:
Protecting the safety and health of employees and contractors engaged, motivated and productive workforce that mitigates B C
is a fundamental human rights issue facing Anglo American operational stoppages, and reduces potential legal liabilities. Pillars of value:
and the mining industry. While protecting our workforce from Safety is also considered a principal risk. Further details on this
harm is a moral imperative, our focus on ‘zero harm’ also principal risk can be found on page 44.
constitutes a direct investment in the productivity of the
Environmental impacts and climate change mining for our local stakeholders. Understanding the effects Strategic element:
Responsible environmental management, including the of climate change on our business and how it may impact A B
management of water consumption and discharge, is a major our value chain is important as we strive to maximise the Pillars of value:
factor in legal compliance and permitting, but also plays a opportunities associated with the transition to a low-
significant role in improving the balance of value from carbon future.
Meeting our commitments to Working closely with host communities and governments Strategic element:
governments and society to undertake integrated planning and share the benefits of A B C
Acting in an ethical and responsible manner is fundamental mining helps Anglo American to avoid and mitigate adverse Pillars of value:
to Anglo American realising the significant business benefits social impacts (including after a mine closes), optimise
gained from building trusted and constructive relationships development opportunities and maintain our socio-political
with our stakeholders. licence to operate.
Workforce culture and capability We aim to foster a high performance culture, through an Strategic element:
To deliver on our business objectives, we rely on a capable and organisation structure that is fit for purpose, resourcing this C
engaged workforce that behaves in a manner that is consistent structure with the best capability and empowering our people Pillars of value:
with Anglo American’s values and Code of Conduct. to deliver results.
Operational and cost performance deliver its financial improvement targets and minimise Strategic element:
The mining sector continues to face operating cost inflation, the number of unplanned operational stoppages that A B C
including labour costs, energy costs and the impact of affect production. Pillars of value:
ore grade deterioration.
This is also considered a principal risk. Further details on this
In order to deliver our profitable growth strategy and to principal risk can be found on page 45.
maintain our competitive position, Anglo American must
Political and regulatory These factors are also considered principal risks. Further Strategic element:
Anglo American operates or has projects in a number details on this principal risk can be found on page 42. A B C
of countries where there is political instability and where Pillars of value:
the regulatory environment for the mining industry is uncertain.
Macro-economic environment fundamental shifts in market forces. These factors are also Strategic element:
Economic slowdown in those countries that are major considered principal risks. The Marketplace review on pages A B
consumers of the Group’s products could have a negative 11 to 13 gives more detail on the macro-economic Pillars of value:
impact on demand for those products. Demand may also environment facing the Group.
be negatively affected by product substitution and/or
PILLARS OF VALUE STRATEGIC ELEMENT
Safety and Health Production A Portfolio

Environment Cost B Innovation
Socio-political Financial C People
For more on our pillars of value
People See page 10

STRATEGIC REPORT STRATEGIC ELEMENT: PORTFOLIO
PORTFOLIO
The quality and long life of our mineral assets are the foundation of our global and
diversified business. We focus on securing and operating assets that offer – either
in isolation or in combination with other assets in the portfolio – the most attractive
long term value-creation potential, as measured by sustainable cash flow and returns.
HIGHLIGHTS KEY PRIORITIES MATERIAL MATTERS
TRANSFORMED AND UPGRADED ••Feasibility study for the DISCUSSED IN THIS SECTION:
PORTFOLIO – NUMBER OF ASSETS world class Quellaveco copper • Macro-economic environment
REDUCED FROM 68 IN 2013 TO project to be presented to the
• Operational and cost performance
36
Board in 2018, for development
consideration • Meeting our commitments to
government and society
••Continue the development of
Jwaneng’s ‘Cut-8’ expansion and • Political and regulatory
UNDERLYING EBITDA IN 2017 FROM Venetia’s underground extension
RECENTLY COMMISSIONED PROJECTS
HIGHLIGHTS (De Beers). PILLARS OF VALUE
$686 million Financial
Environment
Socio-political
GROUP ROCE INCREASED TO
19% For our KPIs

See page 34
Anglo American is a global diversified mining BUILDING STRATEGIC ADVANTAGE

company. Our portfolio of world class competitive
The primary source of competitive advantage in the
mining operations and undeveloped resources –
mining industry is to own high quality, low cost, long life
spanning diamonds (through De Beers), copper,
assets of scale, with positions that can be further
platinum and other precious metals, iron ore, coal
enhanced if those assets deliver products into structurally
and nickel – provides the raw materials to meet the
attractive markets.
growing consumer-driven demands of the world’s
developed and maturing economies. In assessing our asset portfolio, we consider:
The diversification and scale of our portfolio allows us to ••The stand-alone quality of individual assets, including their
leverage our financial resources, technical expertise, and relative cost position and resource and growth potential
supplier relationships towards delivery on our potential and
••Our global competitive position within the individual
to the benefit of our customers. The diverse composition
product groups
of the portfolio also creates a measured risk profile and
supports strong returns by balancing and optimising the ••The additional value potential generated through our
concentration of our investments across: dedicated marketing expertise.
••Products (supply) De Beers
De Beers has the global leadership position in diamonds,
••End-markets (demand)
producing around a third of the world’s rough diamonds,
••Geographies (political, regulatory and other by value. Within its portfolio, De Beers (Anglo American:
country-specific considerations). 85% interest), in partnership with the Government of the
Republic of Botswana, has one of the richest diamond
mines, by value, in the world at Jwaneng and one of the
largest Diamond Resources, by volume, at Orapa. The new
Gahcho Kué mine (51% De Beers owned), in Canada’s
Northwest Territories, entered commercial production in
March 2017.

Our major diamond mining assets have large, long life and Copper
scalable resources and we are continuing to invest in our Anglo American has a world-class asset position in copper,
existing operations to extend our mining activities. The with the potential to establish a leading position built around
‘Cut-8’ expansion of Jwaneng will increase the depth of the its interests in two of the world’s largest copper mines –
mine from 400 metres to 650 metres, while in South Africa, Los Bronces (a 50.1% owned subsidiary) and Collahuasi
Venetia is being extended underground, extending the life of (44% owned joint operation), with Reserve Lives of 23 years
mine to 2046(1). and 69 years, respectively. The resource base of these
assets underpins our future near-asset opportunities, in
The lack of many significant economic kimberlite
addition to a number of future potential projects, including
discoveries over many years, combined with the ongoing
our feasibility phase Quellaveco project in southern Peru –
Strategic report
growth in consumer demand for diamond jewellery in both
one of the world’s largest untapped copper orebodies – and
mature and developing markets, points to strong prospects
the polymetallic Sakatti deposit in Finland.
for the diamond business.
(1)
The current Mining
The copper industry, although expected to be broadly
Right expires in 2038. Through its differentiated rough diamond distribution
An application to balanced in the medium term, is expected to struggle
model, which comprises term contract Sightholders,
renew the Mining to meet longer term demand growth, including from
Right will be accredited buyers and auction sales customers, De Beers
electric vehicles and renewable energy, as declining
submitted at the has a range of insights into its customers’ demand patterns.
grades and more challenging physical and environmental
appropriate time. De Beers seeks to stimulate consumer demand for
There is a reasonable conditions, along with tougher licensing and permitting
diamonds through its Forevermark™ and De Beers
expectation that such requirements, will all affect the industry’s ability to deliver
renewal will not be Jewellers brands and through its participation in the
new copper supply.
withheld. Diamond Producers Association.
RESTRUCTURING OUR METALLURGICAL COAL BUSINESS FOR SUCCESS
Material matters
Operational and cost
improvements required to deliver
sustainable cash flow and returns
across the cycle. Delivered via:
••Productivity improvements
at longwall operations
••Restructuring and divestment
of lower margin assets
••Successful commissioning
of Grosvenor metallurgical
coal project.
The restructuring Over the past few years, Anglo American has delivered ••Divestments over the past two years have included
of our Metallurgical Coal
business in Australia has a comprehensive restructuring of Metallurgical Coal, the pulverised coal injection (PCI) producer Foxleigh and
resulted in a significantly Group’s high margin coal business based in Queensland, Callide (a domestic and export thermal coal producer),
improved product mix.
Over the past seven Australia. The restructuring has taken a number of forms, while mining activities have ceased at Drayton (an
years, production of with a focus on driving material margin improvement: export thermal producer) and we expect to complete
higher-value hard
the sale of the operation in the near future
coking coal has ••Improvements at Grasstree and Moranbah longwall
increased from 51% to
80%. Featured is coal mines (both hard coking coal (HCC) producers) ••The Dawson and Capcoal open cut operations,
handling and preparation have resulted in a 66% improvement in run of mine that produce HCC, PCI and thermal coal, have been
plant operator at the
Moranbah-Grosvenor
productivity over the past seven years. These two substantially restructured to reduce volumes, take
complex, Derek Webley. mines are now Australia’s most productive coal out the highest cost capacity and increase margins.
longwall operators. A third longwall mine was added to
These initiatives have led to the proportion of HCC in
the portfolio when Grosvenor, also an HCC producer,
Metallurgical Coal’s export-production mix climbing from
delivered its first coal in May 2016, seven months ahead
51% in 2010 to 80% in 2017, while completion of the
of schedule and more than $100 million below its total
ramp-up at Grosvenor will see this proportion increase
capital budget. Despite encountering challenging
further. Metallurgical Coal now has a significantly improved
geological conditions during its commissioning,
product mix, which has increased its profit margin by
these have been largely overcome and the mine is
$29/tonne since 2010, while stringent containment of unit
currently ramping up after its first longwall move
costs has seen seven years of inflation more than offset
by productivity improvements and restructuring.

STRATEGIC REPORT STRATEGIC ELEMENT: PORTFOLIO
Platinum Group Metals (PGMs) Coal

Our Platinum business (held through a 78% interest in Australia – Metallurgical coal
Anglo American Platinum Limited) is the world’s leading Our Tier 1 coal assets include the Moranbah North (88%
PGM producer, extracting and processing around 40% ownership) and Grosvenor (100% ownership) metallurgical
of all newly mined platinum. It occupies the pre-eminent coal mines, both located in Queensland. The mines are
position, in terms of production, mining, processing and underground longwall operations and produce hard
refining assets, and the quality and size of its resource base, coking coal. We are the world’s third largest exporter of
in the world’s largest PGM deposit – the Bushveld Complex metallurgical coal and our coal operations in Australia serve
in South Africa. It also has a significant stake in one of the customers throughout Asia and the Indian sub-continent,
world’s largest PGM deposits outside of South Africa, on Europe and South America. More stringent environmental
the Great Dyke in Zimbabwe. Our flagship platinum mine, and safety regulations in China have led to the closure of a
Mogalakwena, is the highest-margin primary platinum number of coal mines there, resulting in increased demand
producer in the industry and, as the only large open pit and prices for high quality coking coal, such as that
PGM mine globally, is at the centre of a more flexible, produced in our Australian mines.
competitive and lower risk business.
South Africa
Platinum is continuing its ongoing repositioning around a Excluding the Eskom-tied operations, we own and operate
leaner, best in class operating footprint at the Mogalakwena five thermal coal mines in South Africa, and jointly manage
and Amandelbult mines in South Africa, and Unki mine the Mafube mine with Exxaro. In South Africa, we supply
in Zimbabwe, alongside its joint venture interests in the both the export and domestic energy markets and, from
Kroondal, Mototolo and Modikwa mines in South Africa. the Richards Bay Coal Terminal, we export throughout the
Atlantic, Mediterranean and Asia-Pacific regions.
Demand for PGMs is forecast to increase over time, given
the ongoing trend towards cleaner-emission vehicles, Colombia
driven by increasingly stringent global emissions legislation. In Colombia, Anglo American, BHP and Glencore each have
Increasing demand by the automotive industry is likely to a one-third shareholding in Cerrejón, one of the country’s
be augmented by growing opportunities for emerging new largest thermal coal exporters.
applications, including hybrid and hydrogen fuel cell electric
Nickel
vehicles, while emerging countries such as India offer the
Our Nickel business is well placed to serve the global
potential of developing, from a relatively low base, into
stainless steel industry, which depends on nickel and drives
significant platinum jewellery markets.
demand for it, and to benefit from demand for batteries for
Our business is well positioned to proactively stimulate electric vehicles. Our assets (both 100% owned) are in
demand for platinum, including through targeted campaigns Brazil, with two ferronickel production sites: Barro Alto and
in emerging jewellery markets; creating new investment Codemin, in the state of Goiás.
demand for the metal as a store of value; and through direct
Portfolio restructuring in the year
investment in a number of companies developing new
We will continue to refine and upgrade our asset portfolio
technologies that are expected to drive industrial demand
as a matter of course in order to ensure that our capital is
for PGMs.
deployed effectively to generate enhanced and sustainable
Iron ore and manganese returns for our shareholders.
Iron ore
Anglo American has restructured significantly over the
Anglo American’s iron ore operations provide customers
last four years and, as a result, upgraded the overall quality
with niche, high iron content ore, a large percentage of
of its portfolio of mining assets since 2013, moving from
which is direct-charge product for blast furnaces. In South
68 assets to 36 at the end of 2017. This transformation has
Africa, we have a majority share (69.7%) in Kumba Iron Ore,
been achieved through extensive operational self-help and
where the Sishen and Kolomela mines produce leading
other efficiency work, together with the sale, placing onto
quality lump ore and also a premium fine ore. The lump iron
care and maintenance and closure of assets, resulting in a
ore produced from Kumba’s operations is in particular
step-change in Anglo American’s operational performance,
demand, and commands a premium price, owing to its
profitability and cash flow generation.
excellent physical strength and high iron content.
Disposals announced and completed
In Brazil, we have developed the integrated Minas-Rio
During 2017, we completed the disposal of our 83.3%
operation (100% ownership), consisting of an open pit mine
interest in the Dartbrook coal mine (Metallurgical Coal)
and beneficiation plant in Minas Gerais, which produces a
to Australian Pacific Coal Limited, our 42.5% interest in
high quality pellet feed product, offering a high iron content
the Pandora mine (Platinum) and certain Amandelbult
and low levels of contaminants. The iron ore produced is
resources (Platinum). In February 2018, we completed
transported through a 529 kilometre pipeline to the
the disposal of Platinum’s 85% interest in Union Mine and
Ferroport iron ore handling and shipping facilities at the port
50.1% interest in Masa Chrome Company Proprietary
of Açu, in which Anglo American has a 50% shareholding.
Limited in South Africa to a subsidiary of Siyanda Resources
Manganese Proprietary Limited.
In manganese, we have a 40% share in Samancor Holdings,
with operations based in South Africa and Australia.

Anglo American entered into several sale agreements, the
completions of which are subject to, among other things, QUELLAVECO
regulatory approvals, including our 88.2% interest in the
Drayton thermal coal mine and Drayton South project in Quellaveco is one of the world’s most significant
Australia to Malabar Coal Limited. The sale of the Eskom- undeveloped copper deposits. With Ore Reserves
tied domestic thermal coal operations in South Africa to estimated at 1.3 billion tonnes, containing
a wholly owned subsidiary of Seriti Resources Holdings 7.5 million tonnes of copper(1), it is expected to
Proprietary Limited is expected to complete on 1 March operate in the lower half of the industry cost curve.
2018. In addition, in January 2018, we agreed the sale of Anglo American owns 81.9% of Quellaveco, with
the New Largo thermal coal project and Old New Largo
Strategic report
the balance owned by Mitsubishi Corporation.
closed colliery in South Africa to New Largo Coal Given that Quellaveco is a major greenfield
Proprietary Limited, which is owned by Seriti Resources development, Anglo American intends to further
Holdings Proprietary Limited, Coalzar Proprietary Limited syndicate its shareholding to support a broader
and the Industrial Development Corporation. funding capacity and project risk profile.
Other portfolio changes The project involves the mining of this extensive
The Group has ceased, or is ceasing, production at a copper and molybdenum deposit which is located
number of operations. Operations that have been closed at an altitude of around 3,500 metres in the Moquegua
or placed onto care and maintenance in recent years Region of southern Peru. The Quellaveco site is
include: Snap Lake (De Beers) and Peace River Coal 34 kilometres east of the town of Moquegua and
(Metallurgical Coal), both in Canada; and Twickenham 165 kilometres northeast of the proposed port facility
platinum mine and Thabazimbi (Iron Ore), both in near Ilo. The operation will use open pit mining and
South Africa. Also in South Africa, the Bokoni mine processing by flotation to produce copper concentrate,
(Platinum) was placed onto care and maintenance by as well as molybdenum and silver by-products. The
Platinum’s joint venture partner, Atlatsa Resources, copper concentrate will then be transported to the
during the year. coast for export.
Damtshaa diamond mine in Botswana, which was We have made considerable progress re-scoping
placed onto care and maintenance from 1 January 2016, Quellaveco to enhance its economic case, while
successfully achieved a restart in the fourth quarter of 2017, maintaining our social commitments.
in preparation for 2018 production.
The project has obtained all the major permits
Having exceeded its original diamond production forecast required for construction and operation, and has a
over its expected lifespan, De Beers’ Victor mine in high level of acceptance from the community and the
Canada is due to close in 2019, when the open pit will local, regional and national governments. This level
have been depleted. of socio-political acceptance has been achieved and
Projects maintained by meeting a series of commitments
Projects ramping up arising from an extensive ‘Dialogue Table’ process,
A number of projects across the Group have been delivered as well as a number of ongoing social projects in the
since 2016, and are contributing to operating cash flows, surrounding communities. The Dialogue Table was
including Barro Alto (Nickel), Grosvenor (Metallurgical a unique initiative launched by the Regional
Coal), Gahcho Kué (De Beers) and Minas-Rio (Iron Ore). Government of Moquegua in which local and national
Together, these assets contributed $686 million of stakeholders, authorities, and representatives from
underlying EBITDA in 2017. Anglo American worked together during an 18-month
process to reach agreements on three main areas:
Future project options water resources, environment and social responsibility.
Strict value criteria are applied to the assessment of
Anglo American’s portfolio of future growth options. Where It is expected that the feasibility study for Quellaveco
appropriate, we aim to seek partners for the development will be reviewed by Anglo American’s Board in 2018,
of major greenfield projects and are likely to not commit to for development consideration.
more than one such project at any given time. The Group
will continue to maintain optionality to progress with value
accretive projects, should market conditions and capital
availability permit.
Although no new major capital projects were approved
during 2017, we continue to retain and advance select
studies, abiding by our established social commitments
and managing the costs of maintaining those options
appropriately.
One such option is the Quellaveco project in southern
(1)
Please refer to the Peru – one of the world’s largest untapped copper
Ore Reserves and
Mineral Resources
orebodies. The project’s feasibility study is expected to
Report 2017 for be presented to the Board for development consideration During the Board’s visit to Peru in October 2017, directors were given a tour
additional details. in 2018. of the Quellaveco project site by project vice president Domenico Pelliccia
(second from right). The Board expects to review the project’s feasibility
study during 2018.

STRATEGIC REPORT STRATEGIC ELEMENT: INNOVATION
INNOVATION
Across every aspect of our business, we are thinking innovatively about how we
work to ensure the safety of our people, enhance our sustainability performance,
and deliver industry-leading margins and returns. We are developing a replicable
model of differentiated practices and capabilities that is designed to deliver
superior value to all our stakeholders from assets that are in our hands.
HIGHLIGHTS KEY PRIORITIES MATERIAL MATTERS
GROUP PRODUCTION GROWTH◊ – ••Continue to advance the DISCUSSED IN THIS SECTION:

COPPER EQUIVALENT BASIS implementation of the Operating • Safety and Health
5%
Model across our assets to realise
further cost and productivity • Environmental impacts and climate change
improvements • Operational and cost performance
••Eliminate fatal injuries through the • Meeting our commitments to
VALUE OF COST AND VOLUME implementation of the Operational government and society
IMPROVEMENTS◊ IN THE YEAR Risk Management programme • Political and regulatory
$1.1 billion
HIGHLIGHTS
••Conduct baseline assessments
to support ambitious new
greenhouse gas, energy,
PILLARS OF VALUE
water and biodiversity targets Production Environment

CUMULATIVE AVOIDED ENERGY COSTS articulated in the Anglo American Cost Socio-political
OVER THE PAST THREE YEARS Sustainability Strategy. Safety and Health
$260 million For our KPIs

See page 34
From resource exploration and discovery, to delivering efficient than conventional methods. For example,
our products into our customers’ hands, FutureSmart our tests show that there is a possibility of reducing
Mining™ is our innovation-led approach to sustainable comminution energy by 30% over current methods.
mining. The technologies that we are developing and We also invest in the development of low-emission
deploying to fundamentally change the way we technologies using PGMs – notably platinum-based
extract and process our products, as well as identify hydrogen fuel cell technology. To accelerate the
potential, will provide the next step-change in development of mining fuel cell electric vehicles and
operating performance – creating significant safety trains, we are exploring innovative ways to store hydrogen
improvements, and major energy, water and capital using liquid organic hydrogen carrier technology.
cost savings.
Our ambition is, where possible, to completely remove
fresh water from our mineral processing. An important area
SUSTAINABLE VALUE THROUGH INNOVATION of focus is low-cost dry-tailings disposal because water
sent to tailings often represents a mine’s largest water loss.
Through FutureSmart Mining™, we are looking for
Fine-particle slurries in particular are difficult to dewater
opportunities that will deliver value quickly, while at the same
and current dry disposal options have prohibitive capital
time developing longer term solutions that will offer benefits,
and operating costs. We are exploring low-cost methods to
not only across our own operations, but across the entire
minimise the amount of water sent to tailings.
mining value chain. We apply open innovation principles to
bring together stakeholders with different perspectives to For Anglo American, innovation extends beyond the mine.
reframe challenges and co-create solutions that will benefit It considers the entire mining ecosystem – from exploration,
the entire industry. right through to mine closure and rehabilitation – and
considers the perspectives of all our stakeholders, at
Two key areas where our technology-led innovation is
every stage.
already making a real difference are energy and water
efficiency. Comminution (the grinding and crushing of rock) We believe that one day all mines will be both carbon- and
is the largest consumer of energy in mineral processing. water-neutral (as well as low cost and scalable), with a
Through FutureSmart Mining™, we are investing in novel minimal footprint that is harmonised with the needs of our
mineral processing technologies that are more energy- host communities – and that FutureSmart Mining™ is our
pathway to that future.

DELIVERING STABLE OPERATING FOUNDATIONS The framework is built around three key components:
Our unique Operating Model is designed to support the ••Operational planning ensures that we have confidence
transformation of asset performance. The focus on in the targets we set and in our ability to develop the
stable and predictable delivery provides a foundation for operating tactical plans to meet business expectations
continuous and sustainable operating improvement. This
••Work management focuses on driving the right behaviours
approach has resulted in step-change advances in safety
and routines across the approval, planning, scheduling,
and productivity, and lower costs, and is embedded
resourcing and execution of work programmes
throughout the business.
••Feedback ensures that the measures we use are
The Operating Model is a people- and systems-intensive
Strategic report
well-defined and -controlled and that appropriate
framework that is designed to deliver and embed change.
improvement processes are applied.
It provides our people with a common language and way
of working across the business, bringing clarity to the work While there are three components to the Operating Model,
we do and ensuring that roles and accountabilities are to date the focus has largely been on work management.
clearly defined across the operations. The Operating Model follows a phased implementation
journey, starting at the project set-up phase and ending with
the stabilisation and sustaining phases. By the end of 2017,
various components of the Operating Model had been fully
or partially implemented at 14 operations.
TOWARDS A WATERLESS MINE
Material matters
Working to eliminate our use of
fresh water in mining processes;
benefiting our operations, the
environment and our host
communities by:
••Measuring and managing water
evaporation at our current
tailings storage facilities
••Minimising the volume of water
used in mineral production
••Working towards dry,
stackable tailings.
At Mogalakwena Anglo American aims to eliminate the use of fresh water capital and operating costs. In partnership with an
platinum mine, in
South Africa’s from mining processes. Our work towards a waterless innovation leader, we are conducting promising research,
water-stressed Limpopo mine focuses on evaporation measurement and dry testing bespoke polymers to separate water from fine
province, technical lead
Dean Bothma inspects
tailings disposal, exploring innovative approaches to dry slurries. This lower-cost dewatering technology creates
fibre-optic sensing separation, and non-aqueous processing. dry, stackable tailings.
equipment, enabling
accurate, real-time Mining operations store water in dams to ensure a To minimise the amount of water sent to tailings in the
monitoring of all water
flows mine-wide. This
reliable water supply and enable recycling, but first place, we are also exploring innovative methods for
is the world’s first evaporation accounts for 10% to 25% of water lost. We more targeted comminution (crushing and grinding ore
permanent installation are testing a new technology developed by Australia’s to the required particle size), dewatering waste far earlier
using this type of
distributed sensing Commonwealth Scientific and Industrial Research in the process. Early estimates indicate the potential for
technology. Organisation (CSIRO) to more accurately measure and a 30% to 40% reduction in water used per unit of
manage evaporation rates. mineral production.
Significant water losses are also incurred in tailings We are confident these dry processing techniques will
disposal. Fine particle slurries are particularly difficult to allow us to re-use 80% of process water, moving us
dewater and current dry disposal options have prohibitive closer towards the waterless mine.

At our diamond operations, roll-out of our Operating COST AND PRODUCTIVITY IMPROVEMENTS
Model is at various stages. At Jwaneng, in Botswana, the
We have continued to lift the performance of our assets
work management component is in the stabilisation phase.
through the implementation of our Operating Model and,
Also in Botswana, at Letlhakane’s tailings retreatment plant,
as a result, have delivered $1.1 billion of cost and volume
work management implementation has moved into the
improvements in 2017, beyond the target we set of
site-readiness phase where all systems in support of the
$1.0 billion.
Operating Model are tested and accepted. In South Africa,
at Venetia mine, implementation of the Operating Model Across the Group, production increased by 5% on a copper
commenced in the second half of 2017, and is now focused equivalent basis, driven by improved performances at
on operational planning. At Gahcho Kué in Canada, De Beers (+22%), Kumba Iron Ore (+8%) and Iron Ore
implementation of the Operating Model is well advanced, Brazil (+4%), partly offset by lower production at the Coal
with the integrated execution schedule for mining going live operations (-4%)(1).
in the last quarter. Work is currently under way to define the
At De Beers, rough diamond production increased by
scope for work management in mine maintenance (heavy
22% to 33.5 million carats (2016: 27.3 million carats),
mining equipment).
reflecting stronger trading conditions and the contribution
At our Los Bronces copper operation in Chile, work from the Gahcho Kué mine in Canada, which entered
management in the mine was stabilised during the third commercial production in March 2017.
quarter of 2017, with accountability for sustaining it being
Kumba delivered a strong operational performance,
been handed over to the line management team. The
increasing iron ore production by 8% to 45.0 Mt
focus in the final quarter was on operational planning.
(2016: 41.5 Mt), following improvements in mining
At Platinum in South Africa, implementation of the productivity resulting from fleet efficiencies and higher
Operating Model at Amandelbult complex started in plant yields. In Brazil, our Minas-Rio iron ore operation
early 2017, with work management and feedback under produced 16.8 Mt (wet basis), 4% higher (2016: 16.1 Mt),
way at its Dishaba and Tumela mines. Mogalakwena has as the operation continued to ramp up its current
implemented all components of the Operating Model. operating capacity.
Operational planning is currently in the stabilisation phase,
Copper production was in line with the prior year at 579,300
with work management being sustained by the line
tonnes (2016: 577,100 tonnes), with solid performances at
management team at the North and South concentrators,
Los Bronces and Collahuasi partly offset by the impact
as well as the mine. At the converting plant, implementation
of lost production at El Soldado, owing to the temporary
of the work management component is in the sustaining
suspension of mining operations in the first half.
phase. Rustenburg Base Metals Refinery’s
implementation of work management is currently in the Our Metallurgical Coal business in Australia produced
gap-analysis phase and some sections of the refinery 19.7 Mt of metallurgical coal, 6% lower than the prior year
are in critical-issue resolution. At Waterval smelter, (2016: 20.9 Mt). This was driven by the divestment of
implementation of the Operating Model is in the project Foxleigh mine (PCI producer), although was largely offset
set-up phase. by a strong performance at the underground longwall
operations, which produced 12.3 Mt, 14% higher than
At Kumba’s iron ore operations in South Africa, Sishen
the prior year (2016: 10.8 Mt). Coal South Africa’s export
has been focusing on a review of the service and production
thermal coal production declined by 3% to 18.6 Mt
strategies for the plant, as well as subsequent refinement
(2016: 19.1 Mt), mainly owing to operational challenges
of the work-scheduling system, which has identified
at Khwezela mine, and the planned transition to a new pit
significant opportunities to improve the planning process.
at Mafube. The Coal South Africa operations were also
Meanwhile, at Kolomela, the Operating Model continues to
affected by self-enforced safety stoppages, following three
deliver above scheduled-work and compliance targets as
fatalities in the year.
part of the work management component.
Group copper equivalent unit costs increased by 7%, driven
At Minas-Rio in Brazil, work management for mine
mainly by stronger producer currencies. Excluding the
maintenance (heavy mining equipment) has been
impact of foreign exchange, the cost increase was 2%.
handed over to the line management team. Work is
Lower unit costs were realised at Platinum in rand terms, as
well advanced in incorporating all mine production work
a result of ongoing cost-saving initiatives, and at De Beers,
into an integrated mining execution schedule. Work
where higher production and efficiency drives helped
management implementation in the beneficiation plant
reduce unit costs. These efficiencies were offset, however,
is progressing well and commenced in 2017 at the
by higher costs across the Coal business which, in addition
pipeline and port facilities, where operational planning
to experiencing Khwezela’s operational challenges,
for the mining complex is under way.
encountered lower volumes at Dawson and the effects
At Metallurgical Coal in Australia, the Operating Model of the extended longwall move at Grosvenor (both
(1)
Metallurgical and is in the pre-start phase of implementation. Each of the Metallurgical Coal).
export thermal
operations is concentrating on developing the business-
coal production While we have delivered a material operational turnaround
from South Africa structure performance models that form part of operational
in recent years, we believe there is still significant value to
and Cerrejón. planning, with the full project expected to start during 2018.
be delivered from the continued implementation of our
Operating Model. In 2018, we expect to deliver a further
$800 million of benefit and are targeting, by 2022, an
additional $3-4 billion annual underlying EBITDA
run-rate improvement.

EMPLOYEE SAFETY AND HEALTH further integrating safety within our Operating Model,
thereby improving the planning and scheduling of work
Protecting the safety and health of employees and
and tasks. Targets relating to the delivery of Operational
contractors at work is one of the most fundamental human
Risk Management (ORM) form part of management
rights issues facing Anglo American and other mining
incentives, and there is a growing recognition that safety
companies. While protecting our workforce from harm
and productivity are complementary. Anglo American’s
is a moral imperative for us, our focus on ‘zero harm’ also
safety results affect the performance-based remuneration
constitutes a direct investment in the productivity of the
of all employees in the business.
business. A safe and healthy workforce contributes to an
engaged, motivated and productive workforce that prevents Promoting health and well-being
Strategic report
operational stoppages, and reduces potential legal liabilities. Our health-related activities focus on mitigating
occupational health risks in the workplace, supporting
Ensuring a safe working environment
the overall health and well-being of our workforce, and
In 2017, we regret to report that nine employees and
promoting community health initiatives in the areas where
contractors lost their lives in work-related activities at
we operate. In 2017, we updated our occupational health
South African operations managed by Anglo American.
strategy, setting clear objectives and targets for our health
Ensuring safety at South African mines remains a
outcomes in 2022. Our primary goal is to ensure that there
particular issue across the industry. We continue to focus
are no new cases of occupational disease as a result of
on further strengthening our safety culture and controls
exposure to health hazards at Anglo American.
at more challenging mines so that we eliminate
workplace fatalities. The number of new cases of occupational disease
reported was 96 (2016: 111). A reduction in cases owing
Our intense focus on preventing harm in the workplace
to the divestment of Platinum’s Rustenburg operations in
was reflected in an encouraging decrease in the number
South Africa was countered by new cases of noise-induced
and severity of injuries recorded at our operations compared
hearing loss and coal workers’ pneumoconiosis because of
with 2016. This included an 8% decline in our lost-time
improved reporting.
injury (LTI) frequency rate and an 11% reduction in our total
recordable case frequency rate. Average days lost per Our workplace tuberculosis (TB) and HIV/AIDS
LTI reduced by 15%. programmes continue to show encouraging results.
As at the end of 2017, 83% of employees knew their
All incidents resulting in loss of life or a critical injury are
HIV status. While this fell short of our target of 90%,
subject to rigorous investigation and management action
76,000 members of our workforce (including contractors)
to prevent similar incidents happening again.
participated in testing. Our TB incidence rate among
Throughout 2017, all operations continued to implement employees in South Africa decreased again in 2017, and
safety improvement plans, with a focus on effective on average, remains well below the 2017 South African
management of critical controls required to manage national rate of 781 per 100,000.
significant safety risks, learning from high potential incidents
The number of employees who have died from TB (four)
and high potential hazards, culture and safe behaviour
and AIDS (12) has decreased considerably in recent years.
programmes, and leadership engagement and
The reduction is a result of changes in the business portfolio,
accountability. These will remain priorities in 2018, with the
as well as improved anti-retroviral uptake, active case
aim of ensuring that each of our sites follows a consistent
management and HIV/TB awareness campaigns.
approach. We have also made interventions aimed at
Lost-time injuries, medical treatment cases and New cases of occupational disease 2013–2017
total recordable case frequency rate 2013–2017
250
Injuries TRCFR
2,500 1.2
200
1.0
2,000
150
0.8
1,500
0.6 100
1,000
0.4 50
500
0.2
0
2013 2014 2015 2016 2017
0 0
Noise-induced hearing loss
2013 2014 2015 2016 2017
Respiratory disease
Lost-time injuries Musculoskeletal disorder
Medical treatment cases TRCFR Other

MARKETING PRODUCTS FOR FULL VALUE With our planned growth and the continued increase
in external regulatory requirements, risk management
Our Marketing Model maximises the value from our mineral
remains a top priority in ensuring the risk factors that
resources and market positions. We do this by seeking to
affect Marketing – including price, credit, operational,
fully understand and address our customers’ specific needs
and regulatory – are transparent and comprehensively
and through leveraging our capabilities in the financial and
managed, thereby helping to maximise value for the Group.
physical markets to drive the right commercial decisions
across the value chain – from mine to market.
In 2017, our Marketing business continued to make good
progress on its strategy, which is designed to create A WIN-WIN IN SHIPPING
maximum value across the entire mining value chain.
These activities contribute to the Group in a number of When the Cape Orchid loaded its first shipment
ways: improving EBIT; enhancing cash flow through tighter of Kumba iron ore through the dedicated export
working capital management; better risk- and control terminal at Saldanha Bay in September 2015,
management; and stimulating sustainable demand, in this was a major event for South Africa – and
particular for PGMs, through an innovative market for Anglo American.
development and investment programme. The vessel, which can carry up to 170,000 tonnes
Focusing on our principal strategic levers to generate of iron ore, is jointly owned by South African and
additional EBIT across the Group, we continued to deliver Japanese business interests and is the first merchant
value through: ship to be registered under the South African flag
since 1985, and the first non-government, South
••Sales and marketing excellence: In 2017, we grew our African-flagged ship for more than a decade to take
customer base in number and by geography. Throughout local cadets on board.
the year we sold all available production while proactively
managing a number of supply challenges, including finding As the Cape Orchid’s first customer, and through
new markets for different grades of material, the purchase chartering other South African-flagged ships,
of third-party volumes to blend with our own material in Anglo American has signalled its intent to assist
order to fulfil commitments and, in some instances, in reviving the country’s presence in the global
renegotiating customer requirements. Close customer maritime economy, a sector in which South Africa’s
relationships continue to be central to our success, as is participation had been declining for many years.
our ongoing focus on marketing intelligence and analytics. At the same time, and through an emphasis on
These activities again generated a large proportion of employing local people where we can, we are
Marketing’s value for the Group. contributing to job creation and training, particularly
in the Northern Cape where jobs are scarce.
••Value chain optimisation: Integrated sales and
operations planning (ISOP) is Marketing’s process for Using ships such as the Cape Orchid, and the second
planning the movement of product from mines’ finished- South African flagged vessel, the 186,000 dwt
goods stockpiles until delivery to the end-customer. ISOP Cape Enterprise, enables Anglo American to take
is embedded across all our products and helps to ensure advantage of a lower cost structure for vessels under
we make the most of our mineral resources in the light of the South African registry entering the country. By
market and contractual conditions and material available, attracting more ships into the South African registry,
while capitalising on our logistics capabilities and the direct consequence is achieving job growth and
shipping services. development in the local maritime economy. More
broadly, such a policy is directly in line with our own
In addition to these activities, we again expanded our goals as a business to unlock more value, both for the
shipping activities, shipping record volumes across our Group and our other stakeholders, throughout our
bulk-commodity portfolio on a CFR basis and increasing mining journey from mine to end-customer.
our third-party cargoes.
••Expanding our customer offering through trading
and third-party sourcing: Creating our own capability to
access financial and third-party physical markets, thereby
broadening our customer proposition.
Building on previous strong performance and increasing
experience, we have expanded our trading and third-party
sourcing activities in thermal coal, copper and iron ore,
and developed our financial toolkit to enable new value
opportunities, manage risks and optimise our use of
working capital.
Good progress is being made with market development
and new market investment activities, and, in particular, the The Cape Orchid, which can carry up to 170,000 tonnes of iron ore, is
one of the vessels used by Anglo American to ship the commodity from
work to support the commercialisation of fuel cell electric South Africa to Asia. Chartering South Africa-registered vessels is creating
vehicles and related hydrogen technology. In 2017, we value over and above commercial returns – notably, fostering employment
became one of the founding members of the Hydrogen and training opportunities in the Northern Cape, one of South Africa’s
poorer provinces.
Council – a global initiative of 28 leading energy, transport
and industry companies with a united vision and ambition for
hydrogen technologies to foster the energy transition to a
lower carbon future.

SUPPLY CHAIN DISCOVERY
Over the past decade, Supply Chain has evolved from Building on the Group’s strategy and long track record
a decentralised, business unit focused model to an of exploration success, Anglo American has launched
integrated model with a functional focus. The integration a fundamentally revitalised discovery strategy that is
of procurement teams across the function ensures that we enhancing our position as a discoverer of superior-value
collaborate and share knowledge at a global level. This gives deposits that have the potential to transform the production
us the advantage of consistency in processes, economies profile of the Group over time, and which play a vital part in
of scale and greater scope for efficiencies and value delivering a sustainable future.
opportunities based on centralised procurement.
The key elements of our discovery strategy are:
Strategic report
Supply Chain is the primary interface with Anglo American’s
Quality discovery portfolio
supplier base, who are key stakeholders in the business.
We aim to build and maintain a robust discovery portfolio,
Through collaboration with the Group’s Technical and
including:
Sustainability function, Supply Chain works with suppliers
to develop and deliver the latest technological innovations ••Near-asset projects: a focus on the extensive mineral
in all areas of the mining value chain. The function has tenure around Anglo American’s existing operations
recently embarked on a three-year journey called ‘Innovate
••Greenfield projects: identifying and securing extensive
Supply’ that aims to achieve breakthrough outcomes in
mineral tenure covering strategic, highly prospective,
safety, people, sustainability, digitisation and interface with
search space in established and frontier settings.
the business.
We are focused on the discovery of mineral deposits that
Supplier innovation
are capable of delivering sustainable and superior returns
Working with key suppliers to develop joint technology
on a material scale, and which provide greater optionality
roadmaps is a core activity for Supply Chain. Together
for the business.
with the Technical team, a number of initiatives, including
drill automation, payload optimisation, fuel consumption Scientific innovation
reduction and blast-accuracy management systems, have By applying a leading technical understanding of the
been implemented, with an estimated value potential of concepts of geoscience throughout its scales, we aim to
more than $130 million. identify and explore the Earth’s most prospective ground.
A combination of established and novel proprietary
Value creation and cost reduction
technologies is crucial to Anglo American’s track record
Value creation and cost reduction remain a focus for
of mineral discoveries in new settings and beneath the
Supply Chain, with the major drivers of these benefits
cover of overlying material such as rock or sands.
being the global and regional supply framework agreements
established with key partners and our concentration on a People and thought leadership
number of initiatives designed to reduce life-cycle costs The Geosciences discipline within Anglo American is now
of fixed plant, mobile equipment and operational services. consolidated across the Group, including near-asset
The focus on working capital continues to deliver and greenfield discovery, projects, and operations. This
significant value. seamless organisation of the discipline supports a greater
technical understanding of our world class assets. This is a
Inclusive procurement and responsible sourcing
strategic advantage that is being applied to gain maximum
An inclusive supply chain is central to our value-creation
benefit in both near-asset and greenfield discovery work.
strategy and we strive to deliver inclusive procurement that
goes beyond legislation and makes a real, positive
difference to our host communities. ENVIRONMENTAL IMPACTS AND CLIMATE CHANGE
Anglo American’s ‘Responsible Sourcing Standard for Many of the environmental impacts of mining are borne by
Suppliers’ articulates easy to understand performance communities around our mining operations, while others
requirements for all the Group’s suppliers. Through supplier have to be considered in the context of the contribution to
self-assessments, audits and our supplier engagement global challenges such as climate change. Anglo American’s
programme, we identify and address supply chain risks and sustainability strategy sets out our commitment to
areas for improvement. Since 2016, suppliers across our demonstrating leadership in environmental stewardship.
various global procurement categories, who collectively
By 2030, we aim to:
account for more than 22% of our total supplier expenditure,
have been requested to complete self-assessments against ••Reduce greenhouse gas (GHG) emissions by 30% against
the standard. Where risks have been flagged, the respective a 2016 baseline and improve energy efficiency by 30%
suppliers were requested to undertake third-party audits.
••Achieve a 50% net reduction in freshwater abstraction
A challenge for companies and suppliers is that there is no in water-scarce regions and recycle more than 85% of
common approach to responsible sourcing among major the water we use
mining companies, leading to duplication of effort for both
••Deliver net-positive biodiversity outcomes wherever
customers and suppliers. We are examining the lessons
we operate.
from other sectors where good practice standards exist to
see if there may be more efficient and robust approaches.

FIBRE OPTIC CABLE MONITORING OF TAILINGS DAMS

HOW IT WORKS
Fibre optic cable technology enables near-real-time
measurement of parameters such as temperature and
strain. Based on data processing and interpretation,
we can evaluate structural movements, seepage
levels, and settlements in dams – the latter up to
sub-millimetre accuracy.
Real-time analysis data improves the monitoring of dam
integrity by immediately alerting operations to potential
problems, ensuring a faster remedial response.
Interpretation of data can then be used to better
understand potential structural movements, long term
deformation, and creep in dams and their foundations.
It can identify seepage or leakage detected through
subtle changes in temperature.
Safe management of tailings dams is critical for
Anglo American as failure or leakage can be
catastrophic for local communities and the environment.
Tailings dams are also getting bigger as declining yields
Fibre optic cable Anglo American is using innovative fibre optic cable
technology is already require more ore to be mined to deliver the same
being used at our technology to monitor and safeguard the integrity of
amount of product.
operations in Chile to its tailings dams.
enable near-real-time
At the Minas-Rio mine in Brazil, fibre optic cable
measurement and The technology is already deployed in Chile and is being
monitoring of tailings technology will be used to monitor and identify large
dam conditions, introduced in Brazil and South Africa. It will be tested in
structural deformations in a concrete box culvert that
including structural different environments and applications before it is rolled
movements, seepage is part of the tailings dam spillway. The culvert will, in
out across 78 tailings storage facilities worldwide.
levels and the degree of coming years, be subjected to large loads as the dam
settlement taking place.
Featured in the control The fibre optic cable monitoring initiative is part of is raised. Understanding its performance and being
room at Los Bronces’ Anglo American’s FutureSmart Mining™ approach to able to measure structural deformations will be
Las Tórtolas operation
is tailings dam operator the innovative use of targeted technology to make crucial to monitoring risks associated with maintaining
Carlos Onetto. mines safer, more efficient and cost-effective. the spillway’s integrity.
Managing our environmental impacts Anglo American is investing in advanced technology

The principal environmental risks facing our business are and partnerships to contribute positively to water
associated with water security and quality, climate change preservation and work towards our vision of becoming
and extreme weather, and mine closure. We report a net water provider in our communities and operating
extensively on our approach and performance related to waterless mines in water-scarce regions.
these and other material sustainability issues in our
In 2017, we continued to implement and embed our new
Sustainability Report.
water management standard and associated reporting
Environmental incidents requirements. The standard guides a risk-based, regional
A steady decline over the past four years in the number approach to water management, in line with global best
of environmental incidents reported indicates continued practice and the ICMM water reporting guidelines.
improvement in the management of environmental controls
Tailings storage facilities
across operations. In 2017, no high impact Level 4 or Level 5
Tailings storage facilities are classified as one of
incidents were reported for the third consecutive year.
Anglo American’s principal risks and are subject to
Two Level 3 (medium impact) environmental incidents
rigorous scrutiny and risk management.
(2016: four Level 3 incidents) were reported, though these
resulted in no lasting harm to the environment. Over the past three years, we have rolled out a new mineral
residue management technical standard, which is now in
Water
the final stages of implementation for all the Group’s tailings
A large proportion of our operations are in regions with
dams and water retaining dams. The standard will move
water-related risks. Risks to the business include security
the level of care for such facilities beyond compliance and
and long term sustainability of supply; excess water
towards internationally recognised best practice.
management, which can lead to unplanned discharges; and
the impact of mining activities on water quality and the rights Additional measures to proactively identify risks include
of other users within the catchment. While our risk profile reviews of tailings facilities at Platinum’s independently
improved in 2017, at least five sites are experiencing severe managed joint ventures and the upstream tailings dams
water scarcity and nearly 50% of all sites are located in in our portfolio. Critical controls at all facilities are audited
regions that are water-stressed. Since a high number of our internally by rotation, and each business unit is addressing
assets are located in southern Africa, we have developed a priority issues that are identified. External, independent
collaborative water strategy for the region, which was technical review panels are in place at most of our
launched in 2017. operations where there are mineral residue facilities with
high consequence ratings; such review panels will be in
place across the Group by mid-2018.

Climate change Approximately 320 energy efficiency and business-
Anglo American is seeking to respond to society’s improvement projects saved 6.4 million GJ in energy
expectations for greater transparency around climate consumption (a 6% reduction relative to the projected
change, expressed by initiatives such as the ‘Aiming for A’ consumption in a BAU scenario) in 2017.
coalition and the recommendations of the Financial Stability
The cumulative avoided energy costs under the ECO₂MAN
Board’s Task Force on Climate-related Financial Disclosures.
programme over the past three years are estimated at
Climate change governance $260 million based on 2017 energy prices. The energy
The Sustainability Committee of the Board regularly efficiency projects we have implemented have a typical
reviews progress against our climate change strategy, payback time of three years.
Strategic report
including specific progress against the Aiming for A
resolution. The chief executive’s performance scorecard
MEETING OUR COMMITMENTS TO GOVERNMENT
includes GHG-reduction and energy efficiency metrics,
AND SOCIETY
while a GHG-reduction target is included in the long term
incentive scheme for executive level personnel. As a major mining company, with the majority of our
operations in developing countries, we are committed
Strategy
to supporting our host governments to achieve their
We expect that climate change will affect our business in
development goals. We endeavour to design and execute
three principal ways: regulation, taxation and the cost of
our projects according to the highest social standards,
‘decarbonising’ energy systems (if passed on to consumers)
and to ensure that our presence in host countries leaves
will have a financial impact; demand for PGMs and
a positive lasting legacy.
copper – critical products in enabling alternative energy
technologies – will increase, while coal is likely to feature This commitment is essential in order to effectively
less prominently in the long term global energy mix; and the manage social risks and to maintain and strengthen our
physical and social impacts of a changing climate may affect socio-political licence to operate.
our operations and host communities.
Managing our social performance
There is also potential for a range of carbon pricing Our Social Way defines Anglo American’s governing
and offset/incentive policies to emerge in the medium framework for social performance. It provides clear
term. Carbon pricing scenarios are factored into project requirements for all Anglo American-managed sites to
investment decisions, and climate change risk and ensure that policies and systems are in place to engage
adaptation assessments have been conducted at with affected communities so that we avoid, prevent and
vulnerable operations. mitigate adverse social impacts, and optimise development
opportunities. Each site is assessed annually against the
Anglo American has taken decisive steps for more than
Social Way requirements and is required to implement an
a decade to contribute to the global effort to reduce
improvement plan for requirements that are not met in full;
emissions, while continuing to provide the materials
progress is monitored at executive level on a quarterly
that modern life requires. Our climate change policy,
basis. Regrettably, in 2017, two operations each had serious
launched in 2011, and updated in 2017, is available on
non-compliances (2016: 0), which involved inadequate
the Anglo American website.
human rights due diligence on security provision and
Two key processes guide how we manage climate change insufficient evidence regarding emergency response
risks: the ORM programme for operations, and the planning procedures. The failure to adhere to required
Investment Development Model for projects. The ORM processes resulted in no negative human rights impacts
guides operations on how to assess risk at each level of and the matter is being addressed as a priority.
activity, with tools to help identify priority unwanted events,
Our industry-leading Socio-Economic Assessment Toolbox
and the controls we need to put in place and monitor to
(SEAT) is used to improve operations’ understanding
prevent those events.
of their positive and negative socio-economic effects,
Targets and performance enhance stakeholder dialogue and the management
Anglo American’s vision of carbon-neutral mining is of social issues, build our ability to support local socio-
supported by the following targets: economic development, and foster greater transparency
and accountability. The current version of the SEAT toolkit,
••By 2020, achieve an 8% improvement in energy
which has been in place since 2012, is being updated to
use and a 22% saving in GHG emissions against
align with international best practice and the Social Way.
projected ‘business as usual’ (BAU) consumption
Social instability leading to community unrest remains a
••By 2030, reduce our absolute energy intensity by
challenge in South Africa, and particularly for our operations
30% and reduce GHG emissions by 30%, relative to
in Limpopo province, which hosts several key platinum and
2016 levels.
diamond assets. To address this, we continue to seek to
In 2017, Anglo American operations were responsible engage and work collaboratively with employees, trade
for 18.0 Mt of CO2 -equivalent emissions (CO2e), unions and the South African government, and with
(2016: 17.9 Mt CO2e) as GHG reductions resulting from communities around our mines. We place a particular
divestments were offset by an increase in production, strategic focus on mitigating social conflict and promoting
and associated coal-mine methane emissions, at socio-economic development across Limpopo.
Metallurgical Coal operations.
Over the past two years we have been improving social
GHG-emission savings in 2017 amounted to 4.8 Mt CO2e incident and grievance management to enhance accuracy
– a 21% reduction relative to the BAU projection. The and consistency across the Group in identifying, reporting
Group’s total energy consumption declined to 97 million GJ and classifying social complaints and grievances. Level 3-5
(2016: 106 million GJ). Divestments and energy efficiency (moderate to significant) social incidents are reported to
projects were the primary causes for the decrease. the Board and included in the chief executive’s quarterly
performance scorecard.

Engagement with faith groups Mine closure and rehabilitation

With the rapid pace of societal change, we recognise the We design, plan and operate our mines with closure in
need for our industry to engage with an ever wider range of mind, and plan for post-closure long term sustainability in
stakeholders to understand the role we can play in long term consultation with communities and other stakeholders. In
sustainable development. Several years ago we initiated an doing so, we aim to reduce long term risks and liabilities to
exploratory dialogue with the global faith community to our business from an environmental and socio-economic
seek their perspective on this topic. What started as a very perspective, and to ensure that we leave a positive legacy
positive initial dialogue with the Vatican has now broadened when our mines conclude their operational lives.
into an ecumenical engagement that continues at
Our Mine Closure Toolbox provides a structured approach
international, national, and local levels in a number of key
to closure planning and management. It aims to ensure that
geographies.
the full spectrum of opportunities, risks and liabilities is
Human rights effectively identified, that plans are fully costed, and that
Our Human Rights policy and framework guide our provision is made on the balance sheet for closure.
approach to identifying and addressing our salient human
We are progressively integrating mine closure planning
rights risks, which are also integrated into the Social Way
with our operational strategies. This involves assessing
and SEAT tools. Operation-level due-diligence processes
and identifying opportunities to make operational changes
are a requirement of the Social Way and have now been
that require no, or only modest, additional expenditure, and
conducted at all sites. These assessments will be reviewed
which result in significantly reduced operational costs and
annually. The independent peace-building organisation
closure liabilities. A particular focus is placed on progressive
International Alert has been a strategic partner in
or concurrent rehabilitation.
strengthening our governance of human rights and security
since 2010.
In accordance with the UK’s Modern Slavery Act 2015, Global CSI expenditure by region
we have published a Group statement on our website to
$ˇ000 %
demonstrate our approach to preventing modern slavery
Africa 55,615 63
and human trafficking in our operations and supply chain.
Americas 30,334 34
Socio-economic contribution Australia 363 1
Developing thriving communities is a pillar of
United Kingdom 444 1
Anglo American’s sustainability strategy. Our targets
include creating three indirect jobs for every direct job Rest of World 1,192 1
(at regional level) by 2025, and five indirect jobs for every Total 87,948
direct job by 2030.
Our integrated approach aims to enhance the productivity
of the private and public sectors in the communities in which Global CSI expenditure by type
we operate. We have a strong focus on leveraging our value
chains and expertise, concentrated on promoting local and $ˇ000 %
preferential procurement, enterprise development and Community 47,762 54
development
youth and workforce development, working with local
institutions to strengthen their capacity, maximising the Education and training 16,809 19
socio-economic benefits from our own infrastructure, Water and sanitation 11,079 13
and delivering social investment that supports those most Health and welfare 4,116 5
in need. Sports, art, culture 2,859 3
and heritage
In 2017, $2.1 billion (23%) of supplier expenditure was
Other 2,217 3
with host communities (2016: $2.0 billion, 23%), while,
since 2008, our enterprise development programmes in Institutional 1,332 2
capacity development
Botswana, Brazil, Chile, South Africa and Peru have
supported 64,291 businesses and created/sustained Environment 1,249 1
120,812 jobs. Employee-matched 260 0

giving and fundraising
In 2017, Anglo American’s corporate social investment Disaster and 243 0
(CSI) expenditure in local communities, including by the emergency relief
Anglo American Chairman’s Fund and Zimele, totalled Energy and 22 0
$87.9 million (2016: $84.1 million). This figure represents climate change
1.7% of underlying EBIT, less underlying EBIT of associates Total 87,948
and joint ventures. Health and education are strategic focus
areas in our sustainability strategy and CSI programme.
For more information on our policies, standards and principles, visit
www.angloamerican.com/sustainability/approach-and-policies

STRATEGIC REPORT STRATEGIC ELEMENT: PEOPLE
PEOPLE
We create a sustainable competitive advantage by resourcing the Group
Strategic report
with a capable and engaged workforce within a culture that fosters safety,
inclusion, innovation and performance.
HIGHLIGHTS KEY PRIORITIES MATERIAL ISSUES
LEADERSHIP TRAINED ••Implement a consistent Organisation DISCUSSED IN THIS SECTION:

IN ANGLO AMERICAN’S Model to maximise the effectiveness of • Workforce culture and capability
CODE OF CONDUCT our Operating Model
• Meeting our commitments
>3,400 ••Proactively identify, develop and promote

talent across the business
••Enhance analytical and workforce planning
to government and society
• Political and regulatory
HIGHLIGHTS
GRADUATES, BURSARS, capabilities to anticipate changes in the PILLARS OF VALUE
APPRENTICES AND nature of work
TRAINEES SUPPORTED ••Promote an inclusive culture that People
2,209
fosters safety, diversity, innovation Socio-political
and performance. For our KPIs
See page 34
Our people are critical to all that we do. The Resourcing the organisation with the best capability
partnerships we build, both within Anglo American Equipping Anglo American with an engaged and productive
and with our stakeholders – locally and globally, workforce is essential for our success. We aim to attract the
are central to maintaining our regulatory and social best people in the industry and to facilitate professional and
licences to operate and our sustained commercial personal development for our core disciplines. In assessing
success. Our continued delivery builds trust current and prospective employees’ capability, we consider:
with our shareholders to ensure their ongoing technical skills and knowledge acquired through experience
investment support. and practice; mental processing ability; social process skills;
and the degree of drive and commitment a person displays.
For our people, we create working environments and an
inclusive and diverse culture that encourages and supports Managing talent and developing skills
high performance and innovative thinking. To resource our structure with the best capability, we
need to have the right people in the right roles, and to align
Our Organisation Model ensures we have the right people in
workforce aspirations with our organisational goals.
the right roles doing the right value-adding work at the right
time, with clear accountabilities minimising work duplication, We have developed a talent identification tool and process
and increasing organisation capability and effectiveness. that has been applied systematically across the Group
during 2017. This consistent approach to assessing and
calibrating talent has enabled us to map our capability and
WORKFORCE CULTURE AND CAPABILITY
to better understand our risks and readiness for succession.
Effective and efficient organisation design We have identified and allocated employees into different
Anglo American’s organisation design is built around strong, talent pools for development, with the aim of enabling
product-focused operating units, supported by functions personal growth and increasing capability.
that provide value-adding expert leadership and ensure
Providing development and training opportunities is vital
effective governance in order to continuously improve
in encouraging our people to grow in their work. We have
business performance.
a range of external and internal development programmes
This design aims to maximise the effectiveness of in use across the Group, investing more than $69 million on
Anglo American’s Operating Model, promote the sharing training in 2017. In an increasingly competitive market for
of resources and consistent best-in-class standards across skills, we continue to invest in developing a pipeline of future
operations, while investing in functional capacity in the talent through our support of 2,209 graduates, bursars,
strategic areas that will offer the best business returns. apprentices and trainees.

STRATEGIC REPORT STRATEGIC ELEMENT: PEOPLE
Anglo American has numerous initiatives focused on Building a purpose-led culture

supporting education and development, from schools We aspire to build and instil an engaging organisational
through to tertiary institutions, as well as programmes culture that fosters safety, diversity, innovation and
targeted at building skills and leadership capability. To performance – making us the employer of choice within
strengthen our leadership pipeline, we are implementing the mining sector. Our organisational culture is shaped by
a framework for developing management and leadership leaders who demonstrate company values and lead their
skills across the Group. teams with a sense of purpose.
We have identified the need to develop a more structured An inclusive and diverse environment
and integrated practice model for managing learning and Anglo American embraces inclusion and diversity in all its
development across the Group. The foundational element forms and complies with relevant legal obligations across
of this new learning management system will be training host jurisdictions. We seek a workforce that reflects our
in our Code of Conduct, safety and operational risk geographical footprint and we provide similar opportunities
management. for broader development within the regions where we
operate. A diverse workforce is a source of competitive
Given the changing nature of work, we recognise the
advantage, bringing greater variety of thought to tackle
need to be proactive in anticipating the implications of
the complex, global challenges we face.
future technical innovation in terms of work content,
capabilities required and employment numbers. As a
result, we are developing a more risk-based approach
to long term workforce planning.
DOING THE RIGHT THING – PUTTING OUR VALUES INTO ACTION
Material issues
Developing a capable and engaged
workforce that behaves in a manner
consistent with Anglo American’s
values and Code of Conduct:
••Training more than 3,400 leaders
to help employees understand
the new Code of Conduct
••Providing a toolkit of innovative
materials to create simple and
creative messaging that can
be understood by all of our
employees, regardless of
cultural, educational or literacy
background.
Employees at During 2017, more than 3,400 leaders were trained to employees may encounter, such as what to do when they
Anglo American’s
headquarters in London facilitate Anglo American’s new Code of Conduct feel that safety or integrity may be compromised. During
were part of our engagement sessions with employees at all levels in the the discussions, employees were encouraged to refer to
extensive employee
engagement organisation. Helping employees to understand what it the new Code of Conduct as guidance in making the right
programme to cascade means to act ethically in Anglo American, and supporting choice or in knowing where to go to ask for more support.
and embed our new
them in this process, is all the more critical in challenging
Code of Conduct The toolkit supporting leaders in the ‘cascade’ campaign
successfully. The Code market conditions where there are strong tensions
included a range of innovative materials from animations
provides employees between the pressure to deliver targets and choosing to
with a single point of to interactive documents. Anglo American was proud to
reference to guide them do the right thing.
in making the right
win the ‘Best employee engagement programme’
choices, and drives the The engagement programme for the Code of Conduct award in relation to its efforts in this regard at the 2017
behaviours that will has encompassed all of our employees across a range of ‘CorpComms’ Corporate Communications Awards.
support our high
performance culture. different cultural, educational and literacy backgrounds.
Various initiatives are under way to measure the success
The approach has been to train team leaders to facilitate
of the engagement programme. In Anglo American’s
discussions on ethical dilemmas and personal action
2017 ‘Have your say’ employee engagement survey,
commitments with their employees. The dilemmas have
94% of respondents agreed that the new Code of
been based on everyday challenging situations that
Conduct was guiding the right behaviours.

We continually develop our workforce to ensure that we Reward structures which differentiate performance
have this diversity among our future leaders. The talent Rewarding successful business outcomes is central to
mapping exercise we undertook in 2017 has provided a achieving our desired culture. It is critical that we provide
better insight into the future diversity make-up of the appropriate remuneration to attract, retain and motivate the
organisation. In certain areas of the business we focus right calibre of employee in the regions where we operate.
on particular aspects of diversity. De Beers, for example,
We implement a performance management and
is leading the way on improving gender diversity. As a
remuneration framework that is designed to reward our
UN Women partner, De Beers has committed to achieving
people on the basis of their performance, giving equal
parity in the appointment of women and men into leadership
emphasis to delivery and behaviour through short term
roles, investing in female micro-entrepreneurs and science,
Strategic report
incentives. In 2017, we reviewed and revised our approach
technology, engineering and maths (STEM) students in its
to rewarding different levels within the organisation for
diamond producing countries, and ensuring De Beers’
safety performance. Senior leaders within the organisation
brands are a positive force for supporting gender equality
are incentivised with longer term awards, which are provided
through all its marketing campaigns. In South Africa, ethnic
upon meeting pre-determined objectives that are in line with
and racial diversity is highlighted as an area of focus.
those of shareholders.
On the back of the progress made by De Beers on gender
In total, 19% of employees received formal performance
diversity, Anglo American is developing a broader inclusion
and development reviews.
and diversity strategy. This includes unconscious-bias
training for senior managers and embedding appropriate Code of Conduct
targets within our recruitment, talent and succession The Anglo American Code of Conduct explains the
planning processes to ensure that management positions boundaries within which we must work every day and brings
or critical role appointments are made from a diverse range together in one place our material ethical principles and
of candidates. policies. It has at its core our shared values, which describe
how we must behave consistently to continue to earn the
By year end, women made up 19% of our overall workforce
trust that gives us our licence to operate.
(2016: 18%) and 26% of managers (2016: 25%). The
proportion of permanent employees under 30 years of Our Business Integrity Policy and Performance Standards
age was 13%, while those between the ages of 30 and support our anti-corruption commitment by making it clear
50 accounted for 68% of the workforce, and the remaining that we will neither give, nor accept, bribes, nor permit others
19% were over 50 years of age. In South Africa, historically to do so in our name, either in our dealings with public
disadvantaged South Africans made up 66% of officials or with our suppliers and customers. The policy sets
management positions. out the standards of conduct required at every level of
Anglo American, including our subsidiaries, joint ventures
Anglo American has reported its gender pay gap as at
and associates, in combating corrupt behaviour of all types.
the required snapshot date of 5 April 2017, in line with UK
It also sets out the requirements of those with whom we do
legal requirements.
business and those who work on our behalf.
For more information on our UK Gender Pay Gap
See page 115 and the Anglo American website Our ethical business conduct team oversees
Encouraging sound industrial relations implementation of the policy by working with senior
Approximately 72% of our current permanent workforce is managers in our business units and corporate functions,
represented by works councils, trade unions or other similar and assisting them to put in place adequate procedures for
bodies and covered by collective bargaining agreements. managing corruption risks (including extensive face-to-face
We seek to improve relations with our employees and their training of employees in high-risk roles).
representative bodies, and see trade unions as key partners Our internal audit team provides assurance on anti-
in promoting the broader welfare of our employees. In 2017, corruption controls on an annual basis and all stakeholders
Group-wide, there were no instances of industrial action are able to confidentially report breaches, or potential
lasting longer than a week. breaches, of the Business Integrity Policy through our
Supporting labour rights independently managed ‘Speak Up’ facility.
As expressed in our Human Rights Policy, and as signatories
to the United Nations Global Compact, we are committed
to the labour rights principles set out in the International
Labour Organization core conventions, including the right
to freedom of association and collective bargaining,
non-discrimination, and the eradication of child and forced
labour. Observance of these rights is required of all our
operations and suppliers, irrespective of location.
At our operations, we have policies and processes in place
to ensure that we do not employ any under-age or forced
labour. No incidents of employing under-age or forced
labour were reported in 2017.

STRATEGIC REPORT CAPITAL ALLOCATION
CAPITAL ALLOCATION
y C
ar ions su a
pt
sh taini
tal n
capi retio
s
flo ng capital
o
wa
Disc
fter
A STRONG FOCUS ON
CAPITAL DISCIPLINE
Underpinning our strategy, we have a value-focused
approach to capital allocation with clear prioritisation: B
to alan y
maintain asset integrity; ensure a strong balance sheet; su c e s ilit
pp h exib
and pay dividends to our shareholders, determined on ort d eet fl ds
i v i de n
an earnings-based payout ratio.
Discretionary capital is then allocated towards growth
investments that are subject to a demanding risk framework
and that meet our stringent value criteria and, in the event of
there being excess cash, this is returned to shareholders. BALANCE SHEET FLEXIBILITY
TO SUPPORT DIVIDENDS
Value-disciplined capital allocation throughout the cycle
is critical to protecting and enhancing our shareholders’ Our near term objective is to continue to reduce net
capital, given the long term and capital intensive nature debt further and ensure the Group’s net debt/EBITDA
of our business. ratio remains well below 1.5, not just at current
elevated price levels, but through the cycle. Our clear
Over the past two years we have focused primarily on commitment to a sustainable dividend remains a
strengthening the Group’s balance sheet. During 2017, critical part of the overall capital allocation approach,
this was facilitated by significant cash generation from and a dividend policy of a targeted 40% payout ratio
operations, driven by further ongoing cost reduction based on underlying earnings, paid each half year,
and productivity improvements, as well as favourable prices has been adopted.
for many of our products, particularly the bulk commodities
and copper. Net debt at 31 December 2017 was $4.5 billion, significantly
lower than the year-end target of $7.0 billion, resulting in a
We will continue to allocate the appropriate capital net debt/EBITDA ratio of 0.5. The $4.0 billion reduction in
expenditure across our portfolio of assets, to both sustain net debt since 31 December 2016 was primarily driven by
our business and to protect and enhance value. We aim strong operating cash inflows of $8.4 billion and capital
to maintain a stronger balance sheet than in the past, to expenditure of $2.2 billion(1).
provide greater financial stability and to allow us to better
manage the effects of volatility in the prices for our In 2017, the average maturity of our debt portfolio has been
products through the cycle. extended through a combination of buying back bonds with
near-term maturities and issuing longer-dated bonds.
During the year, the Group completed the repurchase of
CASH FLOW AFTER SUSTAINING CAPITAL $3.1 billion(2) of US-, euro- and sterling-denominated bonds
Anglo American seeks to improve operating free with maturities from April 2018 to November 2020, and
cash flow through five key levers: driving greater issued corporate bonds of $3.0 billion(3), with 5 to 10 year
productivity and lowering input costs across all tenors. These transactions, as well as $1.9 billion of bond
operations (including through deployment of the maturities during 2017, have reduced short term refinancing
Operating Model); reducing overhead expenditure requirements and increased the weighted average
(including through implementation of the Organisation maturity of outstanding bonds by approximately one year,
Model); timely delivery of new projects (primarily, to 4.4 years.
De Beers’ Venetia underground mine in South Africa On 7 February 2018, Anglo American gave notice that it
and Debmarine Namibia’s SS Nujoma vessel during will redeem in full its outstanding $750 million, 9.375%
(1)
Excludes capitalised 2017); maximising revenue (including through further US bond, due April 2019, on 9 March 2018.
operating cash flows. innovations in our Marketing business); and optimising
(2)
Including the cost of our investment in working capital. As a result of the significant progress made, Anglo American
unwinding associated had regained its investment grade credit rating from all
derivatives. We continue to focus on capital discipline and stay-in- ratings agencies by September 2017; Anglo American plc’s
(3)
$2.3 billion in the business capital efficiency, while maintaining the operational current ratings are BBB- and Baa3 by S&P Global Ratings
US bond markets;
€0.6 billion in the
integrity of all our assets. A sustainable level of total capital and Moody’s Investors Service, respectively, both with a
European bond expenditure for the current portfolio of assets, excluding stable outlook.
markets. growth projects, is between $2.6 and $2.9 billion per year.
Our materially improved balance sheet supported the
decision to resume dividend payments at the half year,
six months earlier than expected, and a dividend
based on 40% of first half underlying earnings was
paid in September 2017.

The payout ratio based dividend policy provides construction of a custom-built diamond mining vessel,
shareholders with exposure to improvements in product which will work alongside the five owned mining vessels
prices, while retaining cash flow flexibility during periods in the Debmarine Namibia fleet, recovering diamonds
of weaker pricing. In line with the policy, the Board proposes off Namibia’s Atlantic coastline.
a final dividend of 40% of second half underlying earnings,
Evaluation expenditure increased to $125 million in
equal to 54 US cents per share, bringing the total dividends
2017 (2016: $105 million) and expenditure on
paid and proposed in the year to $1.02 per share.
exploration activities decreased by 4% to $103 million
(2016: $107 million).
DISCRETIONARY CAPITAL OPTIONS
Strategic report
We will continue to upgrade the quality of our diverse GROUP CAPITAL EXPENDITURE◊ 
portfolio, through improving overall and individual
Capital expenditure decreased to $2.2 billion (2016:
asset quality, maintaining future organic growth
$2.4 billion), due to rigorous capital discipline applied to
optionality and seeking the appropriate geographic
all project investments, coupled with the commissioning
and product supply/demand balance.
of the Minas-Rio, Gahcho Kué and Grosvenor projects –
Strict value criteria are applied to the assessment of future all previously projects in execution, for which capitalisation
options. Where appropriate, we will seek partners on major has ceased.
greenfield projects, and are likely to avoid committing to
Stay-in-business capital expenditure increased to
multiple such projects at the same time. The Group will
$1.3 billion (2016: $1.0 billion), primarily owing to the
continue to maintain optionality to progress with value-
inclusion of expenditure at these newly commissioned
accretive projects, should market conditions and capital
assets and stronger producer currencies.
availability permit.
Capital expenditure on our expansionary projects during
Projects will be carefully considered as we allocate capital
the year was focused on the ongoing development of
and any excess cash will either be invested for profitable
De Beers’ Venetia underground mine in South Africa.
growth or considered for additional returns to shareholders.
The project is now well under way, with the underground
During 2017, we received $52 million from divestment operation expected to be the mine’s principal source of
transactions(1). The disposals of our 83.3% interest in the ore during 2023, extending the life of mine to 2046.
Dartbrook thermal coal mine in Australia, our 42.5% interest
In 2018, we expect capital expenditure to increase to
in the Pandora mine (Platinum) and of certain Amandelbult
between $2.6 and $2.8 billion.
complex Mineral Resources (Platinum) were completed.
A number of disposal transactions were agreed, including:
in February 2017, the sale of our 85% interest in the Union Capital expenditure◊
platinum mine in South Africa to a subsidiary of Siyanda
Resources (completed in February 2018); in April 2017, $ million 2017 2016
the sale of our Eskom-tied domestic thermal coal operations Expansionary 384 967
in South Africa to a wholly owned subsidiary of Seriti
Resources Holdings Proprietary Limited (expected to Stay-in-business 1,310 1,042
complete on 1 March 2018); and in May 2017, the sale of Development and stripping 586 551
our 88.2% interest in the Australian Drayton thermal coal
mine and Drayton South project to Malabar Coal Limited. Proceeds from disposal of
In January 2018, we agreed the sale of our 73% interest property, plant and equipment (52) (23)
in the New Largo thermal coal project and Old Largo Total 2,228 2,537
closed colliery in South Africa to New Largo Coal
Proprietary Limited. Capitalised operating cash flows (78) (150)
In South Africa, the Bokoni mine (Platinum) was placed Total capital expenditure 2,150 2,387
onto care and maintenance during the year.
We continue to retain and advance select studies,
Group historical capital expenditure◊ 2013–2017
maintaining our established social commitments and
$ billion
managing the costs of maintaining these options
appropriately. Our approach to studies and evaluation has 8
a strong emphasis on assessing a broad range of options
early on in the study phase, so that we can mitigate risk,
6.1 6.0
identify opportunities and minimise sunk costs. This position 6
is enhanced by the application of innovative concepts and
new technologies stemming from our FutureSmart Mining™ 4.2
approach in order to build and maintain a portfolio of 4
high-value replacement and organic options.

2.4 2.2
(1)
Proceeds from Our 81.9% investment in the open cut Quellaveco copper 2
divestments are net project in Peru remains one such key option for the Group,
of cash payments
of $126 million,
with feasibility costs of $0.1 billion(2) spent in 2017. We
principally in also have a number of smaller scale, high return capital 0
respect of disposals expenditure opportunities to improve the existing business, 2013 2014 2015 2016 2017
completed in in addition to larger scale growth opportunities. For ◊
prior years. See page 195 for the definition of capital expenditure.
(2)
The Group’s 81.9%
example, Debmarine Namibia, a 50/50 joint venture
share of capital between the Government of the Republic of Namibia
expenditure. and De Beers, is in the feasibility stage of planning the

STRATEGIC REPORT KEY PERFORMANCE INDICATORS
KEY PERFORMANCE
INDICATORS
PILLARS OF VALUE STRATEGIC ELEMENT KEY PERFORMANCE INDICATORS (KPIs)

Work-related fatal injuries(1) Target: Zero harm
Safety and Health B Innovation
Total recordable case frequency rate (TRCFR)(1) Target: 15% year-on-year reduction
C People
New cases of occupational disease (NCOD) (1)
Target: Year-on-year reduction
Energy consumption(1) Target: 8% saving by 2020

Environment B Innovation
Greenhouse gas (GHG) emissions(1) Target: 22% saving by 2020
Total water withdrawals (1)
Target: 14% saving by 2020
Level 3-5 environmental incidents (1)
Target: Year-on-year reduction
Social Way implementation(2) Target: Eliminate non-compliance

Socio-political B Innovation
Voluntary labour turnover(1)

People C People
Gender diversity(1)
South Africa transformation(1)
Production volumes
Production A Portfolio
B Innovation
Unit cost of production

Cost A Portfolio
B Innovation
Attributable return on capital employed (ROCE)◊

Financial A Portfolio
Underlying earnings per share (EPS)◊
B Innovation
Attributable free cash flow◊
(1)
The results and targets in the KPI table above include subsidiaries and joint operations over which Anglo American has management control.
(2)
The 2016 and 2017 Social Way data does not include operations that were divested, closed, or for which sale agreements were concluded during the period.
Sites targeted for divestment were granted exemptions on selected requirements; these requirements were not assessed during 2017.

Strategic report
For full description and calculation methodology See pages 192-193 2015 2016 2017
Number of work-related fatal injuries 6 11 9
TRCFR 0.93 0.71 0.63
NCOD 159 111 96
Measured in million gigajoules (GJ) 106 106 97

Measured in million tonnes of CO 2 equivalent emissions 18.3 17.9 18.0
Measured in million m3 339 296 306
Number of level 3-5 environmental incidents 6 4 2
Serious non-compliance (%) 1 0 1

Moderate non-compliance (%) 33 16 11
Compliant (%) 46 51 56
Good practice (%) 16 26 24
Best practice (%) 4 7 8
Expressed as % of total permanent employees 1.9 2.2 2.3

Women as a percentage of management (%) 25 25 26
Women as a percentage of total workforce (%) 18 18 19
Historically disadvantaged South Africans as a percentage of management (%) 60 62 66
De Beers – million carats 28.7 27.3 33.5

Copper – thousand tonnes 709 577 579
Platinum – thousand ounces 2,337 2,382 2,397
Iron ore (Kumba) – million tonnes 44.9 41.5 45.0
Iron ore (Minas-Rio) – million tonnes 9.2 16.1 16.8
Metallurgical coal (Export coking and PCI) – million tonnes 21.2 20.9 19.7
Thermal coal (Export) – million tonnes 29.3 29.7 29.2
Nickel – thousand tonnes 30.3 44.5 43.8
De Beers – $/carat 83 67 63
Copper – C1 unit cost, c/lb 154 137 147
Platinum – $/ounce 1,508 1,330 1,443
Kumba – $/tonne 31 27 31
Iron Ore Brazil – $/tonne 60 28 30
Metallurgical Coal – $/tonne 55 51 61
Coal – South Africa – $/tonne 39 34 44
Nickel – C1 unit cost, c/lb 431 350 365
Group attributable ROCE◊ (%) 5 11 19

Group underlying EPS◊ ($) 0.64 1.72 2.57
Group attributable free cash flow◊ ($ million) (982) 2,562 4,943

STRATEGIC REPORT GROUP FINANCIAL REVIEW
GROUP FINANCIAL FINANCIAL PERFORMANCE
REVIEW Financial performance
2017 2016
Underlying EBITDA◊ ($ billion) 8.8 6.1

Underlying earnings ($ billion)
◊
3.3 2.2
Profit for the financial year
Anglo American’s profit attributable to attributable to equity shareholders
equity shareholders doubled to $3.2 billion of the Company ($ billion) 3.2 1.6
Underlying earnings per share ($) 2.57 1.72
(2016: $1.6 billion). Underlying earnings were
◊
Earnings per share ($) 2.48 1.24

$3.3 billion (2016: $2.2 billion), while operating Dividend per share ($) 1.02 –
profit was $5.5 billion (2016: $1.7 billion). Group attributable ROCE◊ 19% 11%
Group underlying EBITDA increased by 45% to $8.8 billion UNDERLYING EBITDA◊

(2016: $6.1 billion), benefiting from strong bulk commodity
and copper prices. Cost and volume improvements across Group underlying EBITDA increased by 45% to $8.8 billion
the Group benefited underlying EBITDA by $1.1 billion, (2016: $6.1 billion), with a five percentage point increase
exceeding the $1.0 billion target for the year, driven by the in EBITDA margin from 26% to 31%, driven by strong
ongoing ramp-up of Minas-Rio and strong sales volumes at pricing, particularly in bulk commodities and copper,
De Beers in the first quarter. There were also productivity continued productivity improvements and cost control
improvements at Kumba, with increased fleet efficiency and across the portfolio.
higher plant yields, while Platinum made a solid recovery
from the operational challenges experienced in 2016. The
impact of the Group’s ongoing cost-efficiency programme Underlying EBITDA◊ by segment
also played a significant role in exceeding our improvement
$ million 2017 2016
target for the year.
De Beers 1,435 1,406
The Group delivered a strong operational performance
and increased copper equivalent production by 5%, despite Copper 1,508 903
challenges arising from adverse weather conditions in Platinum 866 532
Australia, and an extended longwall move at Grosvenor
(Metallurgical Coal). Iron Ore and Manganese 2,357 1,536
Group copper equivalent unit costs increased by 7%, Coal 2,868 1,646
principally driven by stronger producer currencies. When Nickel 81 57
the impact of foreign exchange movement is excluded,
Corporate and other (292) (5)
this increase was only 2%; below the Group’s weighted
average CPI for the year of 4%. Total 8,823 6,075
Attributable ROCE increased to 19% (2016: 11%), owing
to the 73% improvement in attributable underlying EBIT
to $5.1 billion. Underlying EBITDA◊ reconciliation 2016–2017
$ billion
Net debt (including related derivatives) reduced to
9
$4.5 billion, $4.0 billion lower than at 31 December 2016. 0.3 8.8
The reduction was driven by $4.9 billion of attributable free 2.4
0.9
0.2
cash flow, reflecting the strong underlying EBITDA and
8
working capital inflows, partly offset by the payment of
dividends to Group shareholders. (0.7)
(0.4)
Our materially improved balance sheet supported the 7
resumption of the dividend at the half year. Based on a
payout ratio dividend policy, 48 US cents per share was 6.1
6
paid in September 2017. In line with this policy, the Board
proposes a final dividend of 40% of second half underlying
earnings equal to 54 US cents per share, bringing the total
5
dividends paid and proposed for the year to $1.02 per share.
2016 2017
e
e
st
r
FX
um
he
ic
tio
Co
Pr
Ot
fla
l
Vo
In
The reconciliation of underlying EBITDA from $6.1 billion

in 2016 to $8.8 billion in 2017 allows an understanding of
the controllable factors (e.g. cost and volume) and those
largely outside of management control (e.g. price, foreign
exchange and inflation) that drive the Group’s performance.

Price Depreciation and amortisation
Average market prices for the Group’s basket of Depreciation and amortisation increased to $2.6 billion
commodities and products increased by 16%, contributing (2016: $2.3 billion), reflecting cessation of capitalisation at
$2.4 billion of improvement to underlying EBITDA. The Grosvenor in August 2016, and at Minas-Rio and Gahcho
realised prices of metallurgical coal and copper increased Kué during the course of 2017, in addition to the effect of
by 57% and 29% respectively, while palladium (Platinum) stronger local currencies.
showed a 44% improvement in realised price. The average
Net finance costs
realised price of diamonds decreased by 13%, mainly owing
Net finance costs, before special items and
to a lower-value mix, with the average rough price index
remeasurements, excluding associates and joint ventures,
being 3% higher.
Strategic report
were $0.5 billion (2016: $0.2 billion). The increase was
Foreign exchange principally driven by the cessation of capitalisation of
Stronger producer country currencies had the effect of borrowing costs associated with Minas-Rio and Grosvenor,
reducing underlying EBITDA by $0.7 billion, mainly owing leading to a reduction in interest costs capitalised to
to a 9% strengthening of the South African rand and a 4% $35 million (2016: $0.4 billion), as well as the impact of
strengthening of the Chilean peso against the dollar. increases in LIBOR. This was partly offset by lower interest
expense resulting from reduced average borrowings during
Inflation
the year.
The Group’s weighted average CPI for the year was 4%, in
line with the prior year, principally influenced by South Africa, Income tax expense
which had local CPI of 5%. The impact of inflationary cost The underlying effective tax rate was 29.7% for the year
increases reduced underlying EBITDA by $0.4 billion. ended 31 December 2017 (2016: 24.6%). The effective
tax rate in 2017 benefited from the reassessment of
Volume
deferred tax balances, primarily in Australia and Brazil, partly
Following the cessation of capitalisation of earnings at
offset by the reassessment of withholding tax provisions,
Minas-Rio in January 2017, the operation’s 16.8 Mt iron
primarily in relation to Chile and South Africa, and the
ore production materially benefited underlying EBITDA by
impact of the relative levels of profits arising in the Group’s
$0.4 billion, which was also boosted by higher sales volumes
operating jurisdictions. In future periods, it is expected that
at De Beers, reflecting stronger demand for lower-value
the underlying effective tax rate will remain above the
goods in the first quarter of 2017. Kumba’s increased fleet
United Kingdom statutory tax rate.
efficiency and higher plant yields, as well as Platinum’s solid
recovery from the operational challenges experienced in The tax charge for the year, before special items and
2016, also contributed to the Group volume improvement. remeasurements, was $1.3 billion (2016: $0.7 billion).
Cost Non-controlling interests
The Group’s cost improvements benefited underlying Non-controlling interests of $0.8 billion (2016: $0.4 billion)
EBITDA by $0.2 billion, overcoming the effects of principally relate to minority shareholders in Kumba Iron Ore
above-CPI inflationary pressure on the mining industry. (Iron Ore and Manganese) and has increased as a result of
This performance reflected the numerous cost-saving higher profitability at Anglo American Sur (Copper).
initiatives being implemented across the Group.
Other SPECIAL ITEMS AND REMEASUREMENTS
Improved profitability at the Group’s joint ventures and
Special items and remeasurements are a net charge
associates, Samancor, Cerrejón and Jellinbah, added
of $0.1 billion (2016: net charge of $0.6 billion) and include
$0.5 billion to underlying EBITDA. This was driven by higher
net impairment reversals of $0.4 billion, relating to the
prices on a stable production base. The action taken in
impairment reversal at Sishen (Iron Ore and Manganese)
2016 to streamline our portfolio, which included the disposal
of $0.5 billion, and El Soldado (Copper) of $0.2 billion,
of our Niobium and Phosphates business and tactical
partly offset by impairments of the Group’s interest in
divestments at Metallurgical Coal, had a negative underlying
BRPM (Platinum) and at Coal South Africa.
EBITDA impact of $0.2 billion.
Full details of the special items and remeasurements
recorded in the year are included in note 8 to the
UNDERLYING EARNINGS ◊
Consolidated financial statements on pages 134-135.
Group underlying earnings increased by 48% to $3.3 billion
(2016: $2.2 billion), in excess of the 45% increase in
underlying EBITDA.
Reconciliation to underlying earnings◊
$ million 2017 2016
Underlying EBITDA◊ 8,823 6,075

Depreciation and amortisation (2,576) (2,309)
Net finance costs and
income tax expense (2,223) (1,118)
Non-controlling interests (752) (438)
Underlying earnings◊ 3,272 2,210

STRATEGIC REPORT GROUP FINANCIAL REVIEW
Net debt◊
$ million 2017 2016
Opening net debt ◊

(8,487) (12,901)
Underlying EBITDA from subsidiaries and joint operations
◊
7,632 5,469
Working capital movements 879 391
Other cash flows from operations (136) (22)
Cash flows from operations 8,375 5,838
Capital expenditure◊ (2,150) (2,387)
Cash tax paid (1)
(843) (465)
Dividends from associates, joint ventures and financial asset investments 517 172
Net interest(2) (355) (581)
Dividends paid to non-controlling interests (601) (15)
Attributable free cash flow ◊
4,943 2,562
Dividends to Anglo American plc shareholders (618) –
Other net debt movements (339) 1,852
Total movement in net debt◊(3) 3,986 4,414
Closing net debt ◊
(4,501) (8,487)
(1)
2016 excludes tax payments of $146 million relating to disposals, which are shown as part of net disposal proceeds.
(2)
Includes cash inflows of $22 million (2016: $89 million) relating to interest payments on derivatives hedging net debt,
which are included in cash flows from derivatives related to financing activities.
(3)
Net debt excludes the own credit risk fair value adjustment on derivatives of $9 million (2016: $73 million).
CASH FLOW BALANCE SHEET

Cash flows from operations Net assets of the Group increased by $4.6 billion to
Cash flows from operations increased by $2.5 billion to $28.9 billion (2016: $24.3 billion). This reflected the
$8.4 billion (2016: $5.8 billion), reflecting strong underlying reduction in net debt and net foreign exchange gains
EBITDA from subsidiaries and joint operations and working relating principally to operations with South African
capital inflows. rand and Australian dollar functional currencies.
Capital expenditure of $2.2 billion was more than
Cash inflows on operating working capital were $0.9 billion
offset by depreciation and amortisation of $2.6 billion.
(2016: inflows of $0.4 billion), driven mainly by an increase
in operating payables across the Group and, in particular,
by a $0.2 billion prepayment from a customer in our ATTRIBUTABLE ROCE◊
Platinum business.
Attributable ROCE increased to 19% (2016: 11%), primarily
Attributable free cash flow◊ owing to the 73% improvement in attributable underlying
Attributable free cash flow increased to a $4.9 billion EBIT to $5.1 billion (2016: $3.0 billion), driven by higher
inflow (2016: $2.6 billion inflow). The improvement resulted prices, higher sales volumes at De Beers, the ongoing
from a $2.5 billion increase in cash flows from operations ramp-up of production at Minas-Rio in Brazil and the
and a $0.2 billion reduction in capital expenditure, continued delivery of cost efficiency programmes across
offset by a $0.6 billion increase in dividends paid to the Group. This improvement was mitigated by inflation
non-controlling interests. and stronger producer country currencies. Average
attributable capital employed was constant at $27.4 billion
(2016: $27.4 billion), as capital expenditure and the
NET DEBT◊
strengthening of producer currencies were offset by
Net debt (including related derivatives) of $4.5 billion was the impact of disposals during 2016 on average capital
$4.0 billion lower than at 31 December 2016, representing employed, and a $0.9 billion reduction in working capital
gearing of 13% (2016: 26%). Net debt at 31 December during the year.
2017 comprised cash and cash equivalents of $7.8 billion
(2016: $6.0 billion) and gross debt, including related
derivatives, of $12.3 billion (2016: $14.5 billion). The
reduction in net debt was driven by $4.9 billion of
attributable free cash flow, partly offset by the payment
of dividends to Group shareholders in September, as well
as other net debt movements.

LIQUIDITY AND FUNDING
In March 2017, the Group completed the repurchase of
$1.3 billion (including the cost of unwinding associated
derivatives) of euro and sterling denominated bonds with
maturities from April 2018 to June 2019. This was followed
in April 2017 with a $1.0 billion dual tranche 5 and 10 year
issuance in the US bond markets.
In September 2017, the Group completed the repurchase
of $1.9 billion (including the cost of unwinding associated
Strategic report
derivatives) of US and euro denominated bonds with
maturities from September 2018 to November 2020.
Concurrently, the Group issued corporate bonds with
a US dollar equivalent value of $2.0 billion, including a
$1.3 billion dual tranche 7 and 10 year issuance in the
US bond markets and a €0.6 billion 8 year bond in the
European bond markets.
On 7 February 2018, Anglo American gave notice that it
will redeem in full its outstanding $750 million, 9.375%
US bond, due April 2019, on 9 March 2018.
These transactions, as well as $1.9 billion of bond maturities
during 2017, have reduced short term refinancing
requirements, increased the weighted average maturity of
outstanding debt by approximately one year and reduced
gross debt.
Bond maturity profile

$ billion
1.9 1.5 1.9

1.1
1.6
0.5
1.4 1.4
1.3 1.3 1.3

1.0
0.7
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Matured in 2017
Early redemption in 2017
New issuances in 2017
Existing bonds

STRATEGIC REPORT MANAGING RISK EFFECTIVELY
MANAGING RISK
EFFECTIVELY
Anglo American recognises that risk is inherent Anglo American’s assessment of strategic,

in all its business activities. Our risks can have a operational, project and sustainable
financial, operational or reputational impact. The development related risks
volatility in commodity markets over the past few

years provides a good illustration of risk inherent
4 1
in our business. As understanding our risks and
developing appropriate responses are critical
to our future success, we are committed to an
effective, robust system of risk identification,
and an effective response to such risks, in order
to support the achievement of our objectives. 3 2
HOW DOES RISK RELATE TO OUR STRATEGY?

1. Identifying risks
Risks can arise from events outside of our control or from A robust methodology is used to identify key risks across
operational matters. Each of the risks described on the the Group; at business units, operations and projects. This
following pages can have an impact on our ability to deliver is being applied consistently through the development
Byron Grote our strategy. and ongoing implementation of a Group integrated risk
Chairman
Audit Committee For more on the Group’s strategy management framework and associated guidelines.
See page 10
2. Analysing risks and controls to manage
identified risks
VIABILITY STATEMENT Once identified, the process will evaluate identified risks to
establish root causes, financial and non-financial impacts,
Context and likelihood of occurrence. Consideration of risk
An understanding of our business model and strategy is treatments is taken into account to enable the creation of
key to the assessment of our prospects. Our strategy is to a prioritised register and in determining which of the risks
secure, develop and operate a portfolio of high quality and should be considered as a principal risk.
long life assets that deliver leading shareholder returns.
Details of our business model are provided on pages 6-7. 3. Determining management actions required
The effectiveness and adequacy of controls are assessed.
Commodity prices for the majority of our products fared well If additional controls are required, these will be identified
in 2017, as the world economy continued its recovery and and responsibilities assigned.
provided a basis for a more positive outlook. However, the
sustainability of commodity prices remains uncertain, with 4. Reporting and monitoring
Management is responsible for monitoring progress of
some downside risk. Supply may either struggle to match
actions to mitigate key risks and to determine if any such risk
demand growth or demand reduction, generating ongoing
falls outside the limits of our risk appetite. Management is
commodity price volatility. Against that background, the supported through the Group’s internal audit programme,
Board maintains a low appetite for risk in major new projects which evaluates the design and effectiveness of controls.
and investments unless they are world class orebodies with The risk management process is continuous; key risks are
competitive cost positions and long reserve lives. New reported to the Audit Committee, with sustainability risks also
greenfield projects are likely to be syndicated with other being reported to the Sustainability Committee.
investors to reduce our risk profile and capital requirements.

The assessment process and key assumptions PRINCIPAL RISKS
Assessment of the Group’s prospects is based upon
We define a principal risk as a risk or combination of
the Group’s strategy, its financial plan and principal risks.
risks that would threaten the business model, future
The Group’s focus during 2017 has been to drive efficiencies
performance, solvency or liquidity of Anglo American.
through the operations and upgrade the quality of our
In addition to these principal risks, we continue to be
portfolio in order to improve cash flow generation,
exposed to other risks related to currency, inflation,
strengthen the balance sheet and create sustainable value.
community relations, environment, litigation and regulatory
A financial forecast covering the next three years is prepared proceedings, changing social expectations, infrastructure
based on the context of the strategic plan and is reviewed on and human resources. These risks are subject to our normal
Strategic report
a regular basis to reflect changes in circumstances. The procedures to identify, implement and oversee appropriate
financial forecast is based on a number of key assumptions, mitigation actions. These principal risks are considered over
the most important of which include commodity prices, the next three years as a minimum, but we recognise that
exchange rates, estimates of production, production costs many of them will be relevant for a longer period.
and future capital expenditure. A key component of the For more on principal risks 2-11
financial forecast and strategic plan is the life of mine plans See pages 42-45
created for each operation, providing expected annual
production volumes over the anticipated economic life
CATASTROPHIC RISKS
of mine.
We also face certain risks that we deem catastrophic risks.
The principal risks are those that we believe could prevent
These are very high severity, very low likelihood events that
the Group from delivering its strategic objectives. A number
could result in multiple fatalities or injuries, an unplanned
of these risks are deemed catastrophic to the Group’s
fundamental change to strategy or the way we operate, and
prospects and have been considered as part of the
have significant financial consequences. We do not consider
Group’s viability.
likelihood when assessing these risks, as the potential
Assessment of viability impacts mean these risks must be treated as a priority.
The assessment of the Group’s prospects has been made Catastrophic risks are included as principal risks.
with reference to the Group’s current position and expected For more on catastrophic risks
performance over a three-year period, using budgeted See page 42
commodity prices and expected foreign exchange rates.
Financial performance and cash flows have then been RISK APPETITE
subjected to stress and sensitivity analysis over the
three-year period using a range of severe, but plausible We define risk appetite as ‘the nature and extent of risk
scenarios. The scenarios tested include: Anglo American is willing to accept in relation to the pursuit
of its objectives’. We look at risk appetite from the context of
••Commodity price reductions of up to 20% from budget severity of the consequences should the risk materialise,
prices over three years, with no offsetting foreign any relevant internal or external factors influencing the risk,
exchange rate improvement and the status of management actions to mitigate or control
••Operational incidents that have a significant impact on the risk. A scale is used to help determine the limit of
production at key sites in the Group appetite for each risk, recognising that risk appetite will
change over time.
••Technology developments affecting demand for diamonds
If a risk exceeds appetite, it will threaten the achievement of
••Technology developments in the automobile industry objectives and may require a change to strategy. Risks that
affecting demand for platinum group metals (PGMs) are approaching the limit of the Group’s risk appetite may
••Failure to achieve budgeted level of financial performance require management actions to be accelerated or enhanced
owing to cost inflation or operational performance issues. in order to ensure the risks remain within appetite levels.
Further details on the risk management and internal control systems
If these scenarios were to materialise, we have a range of and the review of their effectiveness are provided on pages 85-86
options that enable us to maintain our financial strength,
including reduction in capital expenditure, the sale of assets,
raising debt or reducing the dividend. SUMMARY
Viability statement Our risk profile changed during the course of 2017; as the
The directors confirm they have a reasonable expectation external environment has evolved, progress has been made
that the Group will continue in operation and meet its in the mitigation of our risks and we have updated our risk
liabilities as they fall due for the next three years. This period profile to include new principal risks based on a revised
has been selected for the following reasons: assessment. We no longer consider ‘South African power’
as a principal risk, but we have added ‘Competitive position’,
••The Group’s strategy and budgeting process are aligned ‘Investor activism’, ‘Cyber security’, ‘Corruption’, and
with a three-year view ‘Operational performance including delivery of cash targets’
••The volatility in commodity markets in recent years as new principal risks. We no longer classify ‘Delay in
makes confidence in a longer assessment of prospects obtaining the Minas-Rio operating licence extension’ as a
highly challenging. principal risk, following award of the installation licence in
January 2018, but recognise that various risks remain to the
mine achieving full nameplate capacity. Our catastrophic
risks are the highest priority risks, given the potential
consequences.

1. CATASTROPHIC RISKS Pillars of value: No change in risk
We are exposed to the following risks we Impact: Multiple fatalities and injuries, damage Risk appetite: Operating within
deem as potentially catastrophic: tailings to assets, environmental damage, production the limits of our appetite.
dam failure; slope wall failure; mineshaft loss, reputational damage and loss of licence
Commentary: These very high
failure; and fire and explosion. to operate. Financial costs associated with
impact but very low frequency risks
recovery and liability claims may be significant.
Root cause: Any of these risks may result are treated with the highest priority.
Regulatory issues may result and community
from inadequate design or construction,
relations may be affected.
adverse geological conditions, shortcomings
in operational performance, natural events Mitigation: Technical standards exist that
such as seismic activity or flooding, and failure provide minimum criteria for design and
of structures or machinery and equipment. operational performance requirements,
implementation of which is regularly inspected
by technical experts. Additional assurance work
is conducted to assess the adequacy of controls
associated with these risks.
2. POLITICAL AND REGULATORY Pillars of value: No change in risk
Uncertainty and adverse changes to Impact: Uncertainty over future business Risk appetite: Operating within
mining industry regulation, legislation or conditions leads to a lack of confidence in the limits of our appetite.
tax rates can occur in any country in which making investment decisions, which can
Commentary: Global economic
we operate. influence future financial performance.
conditions can have a significant
Increased costs can be incurred through
Root cause: The Group has no control over impact on countries whose
additional regulations or resource taxes, while
political acts, actions of regulators, or changes economies are exposed to
the ability to execute strategic initiatives that
in local tax rates. Our licence to operate commodities, placing greater
reduce costs or divest assets may also be
through mining rights is dependent on a pressure on governments to find
restricted, all of which may reduce profitability
number of factors, including compliance alternative means of raising
and affect future performance. Political
with regulations. revenues, and increasing the risk
instability can also result in civil unrest,
of social and labour unrest. These
nullification or non-renewal of existing
factors could increase the political
agreements, mining permits, sales agreements
risks faced by the Group.
or leases. These may adversely affect the
Group’s operations or performance of those
operations.
Mitigation: Anglo American has an active
engagement strategy with the governments,
regulators and other stakeholders within
the countries in which we operate or plan to
operate, as well as at international level. We
assess portfolio capital investments against
political risks and avoid or minimise exposure
to jurisdictions with unacceptable risk levels.
We actively monitor regulatory and political
developments at a national level, as well as
global themes and international policy trends,
on a continuous basis. See page 14 for more
detail on how we engage with our key
stakeholders.
PILLARS OF VALUE:
Safety and Health Production

Environment Cost
Socio-political Financial
People

3. COMPETITIVE POSITION Pillars of value: A new principal risk
Inability to pursue a profitable Impact: Inability to execute growth strategy, Risk appetite: Operating within
growth strategy. resulting in a reduced valuation. the limits of our appetite.
Root cause: While Anglo American aims Mitigation: A cash improvement programme Commentary: This is a new
to pursue an asset-driven profitable growth has been implemented across the business and principal risk for 2017.
strategy, forecast cash flows may not be the Group’s debt profile has been restructured
adequate to fund growth options that maintain to support business growth plans.
competitiveness owing to low commodity
Strategic report
prices or operational performance being
below expectations.
4. INVESTOR ACTIVISM Pillars of value: A new principal risk
Inability to execute strategy or significantly Impact: Investor pressure may cover Risk appetite: Operating within
change strategy in the event of investors portfolio composition, commodity choices or the limits of our appetite.
seeking to influence management to take geographical locations in which we operate or
Commentary: This is a new
an alternative direction. plan to operate in, all of which may have an
principal risk for 2017.
impact on longer term financial returns.
Root cause: Any larger, influential
shareholder(s) may exert pressure on Mitigation: A proactive and regular
management of companies they invest in to engagement programme with shareholders
take a direction they assert is more conducive is undertaken to explain the Group’s strategy
to realising higher returns. and portfolio, listen to and consider investor
concerns, and to provide reassurance on any
risks that are of major concern to investors.
5. FUTURE DEMAND FOR DIAMONDS Pillars of value: This risk has increased since 2016
Demand for diamonds impacted Impact: Potential loss of rough diamond sales, Risk appetite: Operating within
as production and marketing of leading to a negative impact on revenue, cash the limits of our appetite.
synthetics increases. flow, profitability and value.
Commentary: We believe the
Root cause: Technological developments Mitigation: While research underlines likelihood of the disclosed synthetics
have led to the production of higher quality consumers’ continued desire for natural risk materialising has increased
synthetics. Producers and distributors of this diamonds owing to their inherent value and owing to the factors described.
material may attempt to sell fraudulently into rarity, De Beers has a comprehensive strategy
the diamond pipeline (undisclosed) or market to mitigate risk of both the entry of undisclosed
and sell as synthetics (disclosed), with synthetics into the pipeline and the potentially
manufacturing and distribution sources for misleading marketing of disclosed synthetics.
the latter increasing. In addition, measures to emphasise and protect
the inherent value of natural diamonds include:
increased marketing investment, including
through the Diamond Producers Association,
e.g. reasserting the emotional symbolism of
diamonds through the Real is Rare campaign;
investment in blockchain to give consumers
confidence as to the natural provenance of a
diamond; and investment in bespoke
technology to readily detect all synthetics.
Details of how technology is being developed
and used to mitigate this risk are provided on
page 48.

6. FUTURE DEMAND FOR PGMs Pillars of value: No change in risk
Longer term demand for PGMs is Impact: A negative impact on revenue, Risk appetite: Operating within
impacted by fundamental shifts in cash flow, profitability and valuation. the limits of our appetite.
market forces.
Mitigation: Our Platinum business has a Commentary: We see this as a
Root cause: Longer term demand is at risk strategy to grow PGM demand in industrial longer term threat to the business.
from declining internal combustion engine and jewellery sectors through marketing and
manufacturing, and a switch to battery investment initiatives in research, product
operated vehicles instead of fuel cell electric development and market development
vehicles, which continue to use higher opportunities, particularly in Indian and
volumes of PGMs. Chinese jewellery markets.
7. CYBER SECURITY Pillars of value: A new principal risk
Potential loss or harm to our technical Impact: Theft or loss of intellectual property, Risk appetite: Operating within
infrastructure and the use of technology financial losses, increased costs and damage the limits of our appetite.
within the organisation from malicious or to reputation.
unintentional sources.
Mitigation: We have employed a specialist principal risk for 2017.
Root cause: The number and sophistication third party to oversee our network security. We
of cyber criminal attacks is increasing. have achieved UK Cyber Essentials Certification
and an ongoing cyber awareness programme is
in place across the Group.
8. SAFETY Pillars of value: This risk has increased since 2016
Failure to deliver a sustained improvement Impact: Loss of life, workplace injuries and Risk appetite: Operating within
in safety performance. safety-related stoppages all immediately affect the limits of our appetite.
production, while, over the longer term, such
Root cause: Inability to deliver a sustained Commentary: During 2017 there
factors are also a threat to our licence to operate.
improvement in safety performance will result were nine fatalities, compared with
from management interventions and training Mitigation: All operations continue to 11 in 2016. This is an unacceptable
initiatives failing to translate into behavioural implement safety improvement plans, with level and explains why the risk has
change by all employees and contractors. a focus on: effective management of critical increased. Management remains
Non-compliance with critical controls is a controls required to manage significant safety committed to eliminating fatalities.
common failure in safety incidents. risks; learning from high potential incidents
and hazards; embedding a safety culture; and
leadership engagement and accountability.
Our Operating Model has been updated to
further integrate safety.
9. COMMODITY PRICES Pillars of value: This risk has decreased since 2016
Global macro-economic conditions Impact: Low commodity prices can result in Risk appetite: Operating within
leading to sustained low commodity lower levels of cash flow, profitability and the limits of our appetite.
prices and/or volatility. valuation. Debt costs may rise owing to ratings
Commentary: We believe the risk
agency downgrades and the possibility of
Root cause: The most significant factors of an economic shock in China has
restricted access to funding. The Group may be
contributing to this risk at present are a reduced, with a measured slowdown
unable to complete any divestment programme
continued slowdown in growth in China and being the more likely scenario. More
within the desired timescales or achieve
other emerging markets, low growth rates in broadly, global economic activity has
expected values. The capacity to invest in
developed economies and an oversupply of improved slightly, although downside
growth projects is constrained during periods
commodities into the market. Other factors risks remain.
of low commodity prices – which may, in turn,
such as weak regional economies, fiscal crises
affect future performance.
and conflict can also influence the economic
environment and contribute to weak Mitigation: The successful delivery of cash
commodity prices. improvement and operational performance
targets remains the key mitigation strategy for
this risk. Regular updates of economic analysis
and commodity price assumptions are discussed
with executive management and the Board.
PILLARS OF VALUE:
Safety and Health Production

Environment Cost
Socio-political Financial
People

10. CORRUPTION Pillars of value: A new principal risk
Bribery or other forms of corruption Impact: Potential criminal investigations, Risk appetite: Operating within
committed by an employee or agent of adverse media attention and reputational the limits of our appetite.
Anglo American. damage. A possible negative impact on
licensing processes and valuation.
Root cause: Anglo American has operations principal risk for 2017, given
in some countries where there is a relatively Mitigation: A comprehensive Anti-Bribery the heightened prominence
high risk of corruption. and Corruption Policy and programme, of corruption issues in the
including risk assessment, training and extractives sector.
Strategic report
awareness, with active monitoring is in place.
11. O
PERATIONAL PERFORMANCE Pillars of value: This risk has decreased since 2016
INCLUDING DELIVERY OF
CASH TARGETS
Unplanned operational stoppages Impact: Inability to achieve production, cash Risk appetite: Operating within
impacting production and inability to flow or profitability targets. There are potential the limits of our appetite.
deliver the underlying EBITDA safety-related matters associated with
Commentary: An underlying
improvement target of $0.8 billion in 2018. unplanned operational stoppages, along with
EBITDA improvement target of
a loss of investor confidence.
Root cause: Unplanned and unexpected $0.8 billion is planned for 2018.
operational issues will affect delivery of the Mitigation: Implementation of our Operating The Operating Model is contributing
underlying EBITDA target. Failure to Model, supported by operational risk to the mitigation of this risk.
implement the Operating Model, manage cost management and assurance processes, are the
inflation or maintain critical plant, machinery key mitigations against this risk. Compliance
and infrastructure will affect our performance with our technical standards will prevent certain
levels. We are also exposed to failure of operational risks occurring. Regular tracking
third-party owned and operated and monitoring of progress against the
infrastructure, e.g. rail networks and ports. underlying EBITDA targets is undertaken.
Our operations may also be exposed to
natural catastrophes or extreme weather.

STRATEGIC REPORT DE BEERS
DE BEERS
Anglo American owns 85% of De Beers, the world’s leading diamond company.
The balance of 15% is owned by the Government of the Republic of Botswana.
De Beers operates across key parts of the diamond value chain, including exploration;
production; sorting, valuing and selling of rough diamonds; and the marketing and
retailing of polished diamonds and diamond jewellery.
HIGHLIGHTS KEY PRIORITIES
INCREASE IN ROUGH DIAMOND PRODUCTION ••Continuing to progress the construction of the
22%
Venetia Underground mine in South Africa
Bruce Cleaver
CEO
De Beers Group
••Establishing Cut-8 as the primary source of ore
at Jwaneng mine in Botswana
UNDERLYING EBITDA ••Managing the safe closure of Victor mine in Canada
$1.4 billion ••Completing the integration of De Beers Jewellers.
FOREVERMARK™ INSCRIBED TWO-MILLIONTH

DIAMOND IN MAY 2017
2 million
THE JOURNEY TOWARDS CARBON-NEUTRAL MINING
mineral carbonation technologies. Mineral carbonation
can be either a natural or artificial process whereby rocks
at the Earth’s surface react with carbon dioxide sourced
from the atmosphere and lock it away in safe, non-toxic,
solid carbonate materials – in this case, kimberlite rock.
The project aims to accelerate what is already a naturally
occurring and safe process of extracting carbon from
the atmosphere and store it at a speed that could offset
man-made carbon emissions. Estimates suggest that the
carbon storage potential of kimberlite tailings produced
by a diamond mine every year could offset up to 10 times
the emissions of a typical mine.
Project lead, Dr Evelyn Mervine, observes: “The research
is in its early stages and it may take some time before it is
economically or practically achievable to tap into this full
storage potential. Even just tapping into a small amount,
however, could greatly reduce the net emissions at many
De Beers climate De Beers is leading a ground-breaking research project
change specialist of our mine sites in the near future, possibly leading to
and project lead to deliver carbon-neutral mining at select operations
carbon-neutral mining at some sites within the next five
Dr Evelyn Mervine within a decade.
provides an insight into to 10 years.”
the science behind In collaboration with internationally renowned scientists,
mineral carbonation. Assessment studies are under way for Venetia mine in
the company is investigating the potential to store large
South Africa and Gahcho Kué mine in Canada. Further
volumes of carbon at its diamond mines through the
research and studies will continue in 2018 to assess the
mineralisation of kimberlite tailings.
carbonation potential at these and other De Beers mines.
It is the first time such extensive research has been In addition, several mineral carbonation technologies are
undertaken to assess the carbonation potential of currently being tested through laboratory-scale pilots
kimberlite, a rare type of ultramafic rock that has been that are being conducted in partnership with university
found to offer ideal properties for storing carbon through researchers in Canada and Australia.

Financial and operational metrics(1)
Production Sales Underlying Underlying Underlying
volume volume Price Unit cost◊ Revenue◊ EBITDA◊ EBITDA EBIT◊ Capex◊
(’000 cts) (’000 cts)(2) ($/ct)(3) ($/ct)(4) ($m)(5) ($m) margin ($m) ($m)(6) ROCE◊
De Beers 33,454 32,455 162 63 5,841 1,435 25% 873 273 9%
Prior year 27,339 29,965 187 67 6,068 1,406 23% 1,019 526 11%
Botswana (Debswana) 22,684 – 159 28 – 484 – 447 86 –
Prior year 20,501 – 152 26 – 571 – 543 90 –
Namibia (Namdeb Holdings) 1,805 – 539 257 – 176 – 146 33 –
Strategic report
Prior year 1,573 – 528 245 – 184 – 163 65 –
South Africa (DBCM) 5,208 – 129 62 – 267 – 119 114 –
Prior year 4,234 – 121 53 – 268 – 172 156 –
Canada(7) 3,757 – 235 57 – 205 – 58 (5) –
Prior year 1,031 – 271 212 – 79 – 13 184 –
Trading – – – – – 449 – 443 1 –
Prior year – – – – – 378 – 371 3 –
Other(8) – – – – – (146) – (340) 44 –
Prior year – – – – – (74) – (243) 28 –
(1)
Prepared on a consolidated accounting basis, except for production, which is stated on a 100% basis except for the Gahcho Kué joint venture in Canada, which is on an attributable 51% basis.
(2)
Consolidated sales volumes (2017: 33.1 million carats; 2016: 30.0 million carats) exclude pre-commercial production sales volumes from Gahcho Kué. Total sales volumes (100%), which are
comparable to production, were 35.1 million carats (2016: 32.0 million carats). Total sales volumes (100%) include pre-commercial production sales volumes from Gahcho Kué and De Beers’
JV partners’ 50% proportionate share of sales to entities outside De Beers from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company.
(3)
Pricing for the mining business units is based on 100% selling value post-aggregation of goods. The De Beers realised price includes the price impact of the sale of non-equity product and, as a result,
is not directly comparable to De Beers unit costs, which relate to equity production only.
(4)
Unit cost is based on consolidated production and operating costs, excluding depreciation and operating special items, divided by carats recovered.
(5)
Includes rough diamond sales of $5.2 billion (2016: $5.6 billion).
(6)
Includes pre-commercial production capitalised operating cash inflows from Gahcho Kué.
(7)
For Canada, price excludes Gahcho Kué contribution from sales related to pre-commercial production, which were capitalised in the first half of 2017. Unit costs include Gahcho Kué contribution following
achievement of commercial production on 2 March 2017.
(8)
Other includes Element Six, downstream, acquisition accounting adjustments, projects and corporate.
FINANCIAL AND OPERATIONAL OVERVIEW MARKETS

Underlying EBITDA increased by 2% to $1,435 million Early signs are that global consumer demand for diamond
(2016: $1,406 million) despite lower revenue following jewellery registered positive growth in 2017 in US dollar
the one-off industry midstream restocking in 2016. This terms, following a marginal increase in 2016. Sustained
performance was driven by improved margins, which diamond jewellery demand growth in the US was once again
benefited from lower unit costs (supported by higher the main contributor to this positive outcome. Demand for
production and efficiency drives across the business), a diamond jewellery by Chinese consumers grew marginally
strong contribution from Canada (driven by Gahcho Kué’s in local currency and dollar terms. In contrast, consumer
ramp-up and the closure of Snap Lake), and Element Six demand for diamonds softened in India and the Gulf states,
(which benefited from a recovery in oil and gas markets). both in local currency and dollar terms, while Japan’s
This was partly offset by unfavourable exchange rates, consumer demand growth was flat in local currency and
and an increasing proportion of waste mining costs being lower in dollars.
expensed rather than capitalised, owing to an improved
Diamond producers’ primary stocks are estimated to have
strip ratio at Venetia in South Africa.
reduced considerably during the first half of 2017, as
Total revenue declined by 4% to $5.8 billion sentiment in the midstream improved and rough and
(2016: $6.1 billion) – as expected, given the benefit of polished inventories normalised for businesses in this
strong midstream restocking in the first half of 2016. segment of the value chain. However, as a result of US
The average realised rough diamond price decreased by retailers tightly managing their inventories and the earlier
13% to $162/carat (2016: $187/carat) mainly owing to a timing of Diwali in India, there was a slight seasonal build-up
lower value mix; this was partly offset by an 8% increase of polished inventory in the midstream going into the
in consolidated sales volumes to 32.5 million carats fourth quarter. Overall, early indications are that additional
(2016: 30.0 million carats). This reflected stronger demand consumer marketing undertaken during the main selling
for lower-value goods in Sight 1 of 2017, following a recovery season had a positive effect on polished demand in the US,
from the initial impact of India’s demonetisation programme China and India in the final quarter of the year, leading to a
in late 2016, as well as the ramp-up of production from lower positive impact on overall polished inventories.
value per carat but high margin operations, including Orapa For more information, refer to the Marketplace review section
and Gahcho Kué. The lower-value mix was compensated in See pages 11-13
part by a higher average rough price index, which was 3%
above that of 2016.
Capital expenditure reduced by 48% to $273 million
(2016: $526 million), mainly owing to the completion
of major projects, including Gahcho Kué; Debmarine
Namibia’s new exploration and sampling vessel, the
SS Nujoma; and planned lower waste capitalisation at
Venetia. The SS Nujoma, which was delivered three
months ahead of schedule and under budget, was officially
inaugurated in June 2017 and is fully operational.

STRATEGIC REPORT DE BEERS
OPERATING PERFORMANCE Forevermark™ continued to expand its retailer network

and is now available in more than 2,200 outlets in 25
Mining and manufacturing
markets, an increase of 10% since the end of 2016. By
Rough diamond production increased by 22% to
May 2017, Forevermark™ had inscribed its two-millionth
33.5 million carats (2016: 27.3 million carats), reflecting
diamond, the second million having taken only half the
stronger underlying trading conditions as well as the
time it took to inscribe the first million. For the peak holiday
contribution from the ramp-up of Gahcho Kué.
sales period, the brand launched ‘Forevermark Tribute™
Botswana (Debswana) increased production by 11% to Collection’, a significant marketing investment across
22.7 million carats (2016: 20.5 million carats). Production at multiple channels in the key US market. The Tribute™
Orapa was 28% higher, mainly driven by planned increases Collection, and its supporting campaign, symbolises and
in plant performance and the ramp-up of Plant 1, which was celebrates the many facets of the wearer, and reflects the
previously on partial care and maintenance in response to growing trend for women to self-purchase.
trading conditions in late 2015. In June 2017, Jwaneng
In February 2017, De Beers unveiled its next-generation
processed its first ore from Cut-8, which is expected to
automated melée screening instrument (AMS2™), which
become the mine’s main source of ore during 2018.
is significantly less expensive, screens 10 times faster, can
In Namibia (Namdeb Holdings), production increased by handle stones three times smaller, and has lower referral
15% to 1.8 million carats (2016: 1.6 million carats), primarily rates than its predecessor. In addition, an industry-first
owing to higher production from Debmarine Namibia’s synthetic-screening device for stones in set jewellery
Mafuta vessel, driven by higher mining rates following an (SYNTHdetect™) was launched in June 2017, along with the
extended scheduled in-port during 2016. At Namdeb’s land roll-out by the International Institute of Diamond Grading &
operations, production rose by 6%, despite challenging Research of a synthetics-detection training course.
conditions, including grade variability owing to the nature
During 2017, De Beers invested more than $140 million in
of alluvial deposits, structural cost pressures, and some
marketing (19% more than in 2016) through a combination
operations nearing the end of their lives.
of proprietary and partnership activity centred on the US,
In South Africa (DBCM), production increased by 23% to China and India. De Beers also substantially increased its
5.2 million carats (2016: 4.2 million carats), primarily owing investment in the Diamond Producers Association, a
to Venetia, driven by higher grades as well as improved producer-wide body that works to enhance consumer
operational performance benefiting tonnes treated. demand by promoting the appeal, integrity and reputation
Construction continues on the Venetia Underground mine, of diamonds.
which is expected to become the mine’s principal source
De Beers also began the development of a new digital
of production during 2023.
platform for the diamond industry, backed by highly
In Canada, production increased to 3.8 million carats secure blockchain technology, which will provide a single
(2016: 1.0 million carats) owing to the ramp-up of Gahcho immutable record for every diamond that is registered.
Kué, which entered commercial production in March 2017. Currently in the pilot phase, this initiative is being designed
During the year, Gahcho Kué benefited from higher than to underpin confidence in diamonds and the diamond
expected grades, partly offset by a lower average value of industry for all stakeholders, while streamlining existing
production. Owing to the differences in lobe characteristics manual processes and creating new efficiencies in the
across different kimberlite pipes, the average grade and value chain.
realised price will continue to vary and will be dependent on
the area mined. Production at Victor increased by 21% to
OUTLOOK
0.7 million carats as a result of higher grades. Victor, which
has been operating successfully since 2008, is due to close Improving global macro-economic conditions remain
in 2019, when the open pit is expected to have been supportive of consumer demand growth for polished
depleted. The closure of Snap Lake, which is currently on diamonds in 2018. The degree of global economic growth,
care and maintenance, is progressing, with flooding having however, will be dependent upon a number of factors,
been completed, thereby minimising holding costs while including the extent of the positive impact on growth in
preserving the long term viability of the orebody. consumer spending from US tax cuts, the strength of the
dollar on consumer demand in non-dollar-denominated
Other revenue includes Element Six, which grew strongly,
countries, and how successfully China manages its
driven primarily by a recovery in the oil and gas business
adjustment to a more domestic, consumer-driven economy.
but also supported by the automotive and consumer
electronics segments. For 2018, forecast diamond production (on a 100% basis
except Gahcho Kué on an attributable 51% basis) is
Brands
expected to be in the range of 34-36 million carats, subject
In March 2017, De Beers acquired its joint venture partner’s
to trading conditions.
50% shareholding in De Beers Jewellers (DBJ). With full
ownership of the business (and the De Beers corporate
brand), the process of integrating the DBJ brand and
network of 30 stores in 16 key consumer markets around
the world is well under way.

STRATEGIC REPORT COPPER
COPPER
In Chile, we have interests in two major copper operations: a 50.1% interest in the
Strategic report
Los Bronces mine, which we manage and operate, and a 44% share in the Collahuasi
mine; we also manage and operate the El Soldado mine and Chagres smelter
(50.1% interest in both). In Peru, we have an 81.9% interest in the Quellaveco project.
INCREASE IN UNDERLYING EBITDA ••Replacement of a ball mill stator motor on the key Line 3
67%
at Collahuasi (responsible for c. 60% of plant throughput)
Hennie Faul
CEO during 2018
Copper
••Productivity improvements and cost reductions will
UNDERLYING EBITDA continue to be the focus at Los Bronces, to address the
challenges of increased ore hardness and, in the longer
$1.5 billion term, lower grades and longer haulage distances

••The Quellaveco project in southern Peru remains a high
Duncan Wanblad value expansion option. The feasibility study is expected to
CEO RETURN ON CAPITAL EMPLOYED
be finalised and presented to the Board for development
16%
Base Metals
consideration during 2018.
PREDICTING THE IMPACT OF CLIMATE CHANGE

Although the area around the mine is semi-arid, the
glaciers found there are natural stores of water that
influence the run-off of mountain rivers, especially during
the dry season. Understanding the effects of mining and
climate change on the hydrological cycle within this area
is important, both for operations and the communities
located downstream.
Once a robust and accurate climate model had been
established, scenarios were run up to the years 2030,
2040 and beyond. Specific weather parameters
were fed into the model to understand the effects of
temperature and rainfall changes over time at different
altitudes, and how they could potentially affect
geomorphology, air emissions, natural hazards and
water availability and security.
Los Bronces (50.1% As understanding the potential physical and social
owned) in the Chilean
Andes is one of the impacts of climate change on our mining operations Predictions for rain, snowfall, snow melt and glacial
world’s great copper and host communities is of material importance to meltwater were all linked to how they influence water
mines. In collaboration
with prominent
Anglo American, we have been working with the security, and are now factored into the water balance
specialists, we have UK Met Office to understand which of our operations of the mine’s catchment area. These climate variability
developed a climate- would be most at risk from these impacts. This work
scenario model, which
findings will feed into Los Bronces’ life of mine plan,
is being fed into a life highlighted two countries where risk is significant – Peru including closure and post-closure of the mine, to better
of mine plan designed and Chile. As a result, a state of the art climate modelling inform planning decisions. The recent drought from
to make the operation
more climate-resilient. analysis was carried out for the Los Bronces district to 2012-2015, and the subsequent high precipitation events
better understand the potential impacts of climate in 2016, highlight the potential value of these models in
change and prepare appropriate adaptation strategies. building climate-resilient operations.

STRATEGIC REPORT COPPER
Financial and operational metrics

Production Sales Realised C1 unit Underlying Underlying Underlying
volume volume price cost◊ Revenue◊ EBITDA◊ EBITDA EBIT◊ Capex◊
(kt) (kt)(1) (c/lb) (c/lb)(2) ($m) ($m) margin(3) ($m) ($m) ROCE◊
Copper 579 580 290 147 4,233 1,508 41% 923 665 16%
Prior year 577 578 225 137 3,066 903 31% 261 563 6%
Los Bronces 308 307 – 169 1,839 737 40% 401 245 –
Prior year 307 308 – 156 1,386 326 24% (49) 241 –
Collahuasi(4) 231 232 – 113 1,314 806 61% 594 243 –
Prior year 223 223 – 111 1,068 569 53% 342 144 –
Other operations 40 41 – – 1,080 76 16% 39 177 –
Prior year 47 47 – – 612 83 18% 43 178 –
Projects and corporate – – – – – (111) – (111) – –
Prior year – – – – – (75) – (75) – –
(1)
Excludes 111 kt third-party sales.
(2)
C1 unit cost includes by-product credits.
(3)
Excludes impact of third-party sales.
(4)
44% share of Collahuasi production, sales and financials.
FINANCIAL AND OPERATING OVERVIEW At Collahuasi, Anglo American’s attributable share of

copper production was 230,500 tonnes, an increase of
Underlying EBITDA increased by 67% to $1,508 million
3% (2016: 222,900 tonnes). It was another year of record
(2016: $903 million), primarily as a result of a 27% increase
copper in concentrate production for the operation, building
in the average LME copper price, as well as a continued
on 2016’s record output. Production benefited from higher
focus on cost-reduction initiatives. Production increased to
grades, as well as strong sustained plant performance
579,300 tonnes, with solid performances at Los Bronces
following the completion of a two-month planned
and Collahuasi partly offset by the impact of lost production
maintenance at the processing plant in the second quarter.
at El Soldado, owing to the temporary suspension of mining
C1 unit costs were 113 c/lb (2016: 111 c/lb), with the
operations in the first half. At 31 December 2017, 108,000
increase in production and continued cost-saving initiatives
tonnes of copper were provisionally priced at 328 c/lb.
partly offsetting the effects of the stronger Chilean peso,
cost inflation and lower by-product credits.
MARKETS
Production at El Soldado decreased by 14% to 40,500
2017 2016
tonnes (2016: 47,000 tonnes), owing largely to the
Average market price (c/lb) 280 221
temporary suspension of mine operations from 18 February
Average realised price (c/lb) 290 225
to 28 April 2017, which resulted in 6,000 tonnes of lost
The differences between market price and realised price production. C1 unit costs increased by 27% to 233 c/lb
are largely a function of the timing of sales across the year (2016: 184 c/lb) as a result of the lower output, the stronger
and provisional pricing adjustments. Chilean peso and cost inflation.
The increase in price in 2017 reflects improved demand and

a slowdown in mine supply, stimulating more favourable OPERATIONAL OUTLOOK
investor sentiment. Production in 2018 is expected to increase with the planned
For more information, refer to the Marketplace review section mining of higher ore grades at Collahuasi and Los Bronces.
See pages 11-13 Production guidance for 2018 has been tightened to
630,000-660,000 tonnes.
At Los Bronces, production in 2017 increased marginally
to 308,300 tonnes (2016: 307,200 tonnes). Higher grades
(2017: 0.71% vs 2016: 0.67%) were partly offset by lower
throughput, following a failure in the ball mill stator at the
processing plant during the third and fourth quarters.
C1 unit costs increased by 8% to 169 c/lb (2016: 156 c/lb),
reflecting the effect of the stronger Chilean peso and
cost inflation.

STRATEGIC REPORT PLATINUM
PLATINUM
Anglo American is the leading primary producer of platinum group metals, extracting
Strategic report
and processing around 40% of all newly mined platinum. All of our operations are
located in the Bushveld Complex in South Africa, with the exception of Unki mine on
the Great Dyke formation in Zimbabwe.
INCREASE IN UNDERLYING EBITDA ••Contain unit costs to between R19,600 and R20,200
63%
per platinum ounce produced (metal in concentrate)
Chris Griffith
CEO
Platinum
••Complete construction of the Unki smelter
••Advance expansion of the Amandelbult chrome plant
UNDERLYING EBITDA
••Continue to develop the market for PGMs.
$866 million
RETURN ON CAPITAL EMPLOYED
10%
THE ROLE OF PLATINUM IN A CLEAN ENERGY FUTURE
an internal combustion engine (ICE) and a battery,
PGMs will remain in high demand as the catalysts
require metal loadings similar to those found in current
ICE cars.
Looking further ahead, hydrogen fuel cell electric
vehicles (FCEVs) offer a zero emissions alternative to
ICE vehicles, without the need for consumers to change
their behaviour. Platinum is used in FCEVs as the catalyst
which turns hydrogen gas into electrical power. We
believe that our actions can help shape this demand in
the future.
We are a founding member of the Hydrogen Council, a
global initiative of leading energy, transport and industry
companies that is leading the way in the transition from
fossil fuel based sources of power. Three key initiatives
frame Anglo American’s approach to developing the use
Anglo American is a Demand for platinum group metals (PGMs) from the
founding member of of hydrogen technology:
the Hydrogen Council, automotive sector accounts for just over 40%, 70%
which is seeking practical and more than 80% of total platinum, palladium and ••The support of dedicated market development
energy solutions based
on hydrogen technology. rhodium demand, respectively. As governments enact activities, including strategic investment in hydrogen
This image from an ever-tighter emissions legislation, these three metals, refuelling infrastructure and in R&D
Anglo American-
which are used in catalytic converters, have a key role
supported film on fuel ••Strategic investment in companies with expertise in
cell electric vehicles to play in the move to reduce vehicle emissions.
(FCEVs), which use the advancement of hydrogen fuel cells and hydrogen
platinum as the catalyst In the short term, such legislation is likely to mean higher storage solutions
to change hydrogen gas
metal loadings on catalytic converters to improve their
into electrical power, ••Taking a positive policy-advocacy stance through
features (left) one of the efficiency. As automotive producers look to produce
initiatives such as the Hydrogen Council.
company’s own FCEVs. larger numbers of hybrid vehicles, which run on both

STRATEGIC REPORT PLATINUM

Production Production Sales
volume volume volume Basket Underlying Underlying Underlying
platinum palladium platinum price Unit cost◊ Revenue◊ EBITDA◊ EBITDA EBIT◊ Capex◊
(koz)(1) (koz)(1) (koz) ($/Pt oz)(2) ($/Pt oz)(3) ($m) ($m) margin ($m) ($m) ROCE◊
Platinum 2,397 1,557 2,505 1,966 1,443 5,078 866 17% 512 355 10%
Prior year 2,382 1,539 2,416 1,753 1,330 4,394 532 12% 185 314 4%
Mogalakwena 464 509 467 2,590 1,179 1,211 578 48% 448 151 –
Prior year 412 452 415 2,345 1,257 968 393 41% 269 157 –
Amandelbult(4) 438 202 459 1,868 1,596 858 88 10% 34 34 –
Prior year 459 207 466 1,567 1,254 727 97 13% 41 25 –
Purchase of concentrate(5) 1,021 549 1,082 – – 1,884 173 9% 145 – –
Prior year 652 388 656 – – 1,033 96 9% 77 – –
Other operations 474 297 497 – – 1,125 83 7% (59) 170 –
Prior year 859 492 879 – – 1,666 (14) (1)% (162) 129 –
Projects and corporate – – – – – – (56) – (56) – –
Prior year – – – – – – (40) – (40) 3 –
(1)
Production disclosure reflects own-mined production and purchase of metal in concentrate.
(2)
Average US$ basket price.
(3)
Total cash operating costs – includes on-mine, smelting and refining costs only.
(4)
Excludes 8 koz (2016: 8 koz) of platinum production now included in purchase of concentrate.
(5)
Purchase of concentrate from joint ventures, associates and third parties for processing into refined metal.
FINANCIAL AND OPERATING OVERVIEW OPERATING PERFORMANCE

Underlying EBITDA increased by 63% to $866 million Total platinum production (metal in concentrate),
(2016: $532 million), largely as a result of higher sales including both own-mined production and purchase
volumes (platinum, palladium and some minor metals) of concentrate, increased by 1% to 2,397,400 ounces
and stronger prices for palladium and rhodium. Lower (2016: 2,381,900 ounces). Total palladium production
local currency costs, driven by ongoing cost improvement (metal in concentrate), including both own-mined
initiatives, were offset by the stronger South African production and purchase of concentrate, was also 1%
rand, resulting in an 8% increase in US dollar costs to higher at 1,557,300 ounces (2016: 1,538,700 ounces).
$1,443/ounce (2016: $1,330/ounce).
Production from own-managed mines
Platinum produced from own-managed mines,
MARKETS excluding projects, increased by 3% to 1,130,900 ounces
2017 2016 (2016: 1,096,200 ounces), while palladium production
Average platinum market price ($/oz) 950 989 grew by 7% to 847,200 ounces (2016: 789,600 ounces).
Average palladium market price ($/oz) 871 615
Platinum’s flagship Mogalakwena mine produced a record
Average rhodium market price ($/oz) 1,097 681
463,800 ounces of platinum (2016: 411,900 ounces) and
Average gold market price ($/oz) 1,258 1,248
508,900 ounces of palladium (2016: 452,000 ounces), a
US$ realised basket price ($/Pt oz) 1,966 1,753 13% increase for both. The increase resulted from improved
Rand realised basket price (R/Pt oz) 26,213 25,649 concentrator throughput and recoveries following
implementation of the North concentrator plant optimisation
An increase in palladium and rhodium prices, driven by
project, as well as higher average grades.
strong demand, supported a stronger basket price in both
dollars and rand, despite a lower average platinum price Amandelbult complex yielded 438,000 ounces of platinum
during the year. (2016: 458,600 ounces) and 202,500 ounces of palladium
For more information, refer to the Marketplace review section (2016: 207,300 ounces), representing decreases of 4% and
See pages 11-13 2% respectively. This was caused primarily by excessive
rainfall in the first quarter, which constrained production
from the surface operations, lower immediately available
Ore Reserves, and increased development as the mine
makes its transition from the Tumela Upper to the Dishaba
Lower mining areas. Production was further affected by
three fatal incidents and their subsequent associated
safety stoppages.
Unki mine in Zimbabwe maintained its platinum
production level for the year at 74,600 ounces
(2016: 74,500 ounces), while raising its palladium output
by 5% to 64,400 ounces (2016: 61,400 ounces). This
performance was largely driven by more efficient mining,
which reduced waste mining, resulting in higher-grade ore
being delivered to the concentrator. Owing to planned
maintenance at the concentrator in the fourth quarter,
Unki had an ore stockpile at the end of 2017, which will be
processed in 2018.

Union mine produced 154,500 ounces of platinum Purchase of concentrate from third parties
(2016: 151,200 ounces) and 71,400 ounces of palladium Increased third-party purchases of concentrate led
(2016: 68,900 ounces), increases of 2% and 4% to a yearly total of 510,400 ounces of platinum
respectively, as a result of improved stoping efficiencies. (2016: 119,800 ounces) and 259,200 ounces of palladium
As announced by Platinum on 26 January 2018, Union (2016: 82,600 ounces). Production from Rustenburg
Mine has now been sold to Siyanda Resources Proprietary has been purchased since 1 November 2016, when the
Limited, effective 1 February 2018. With effect from this operation was sold to Sibanye. The Maseve operation,
date, Union’s output is being recognised as third-party owned by Platinum Group Metals, was placed onto care
purchase of concentrate. and maintenance in the third quarter. No further third-party
purchase of concentrate is currently expected from the
Strategic report
Joint venture production
Maseve mine.
Platinum and palladium production from the Mototolo,
Modikwa and Kroondal joint ventures, inclusive of both Refined production
own-mined share and purchase of concentrate production, Refined platinum production increased by 8% to 2,511,900
decreased by 3% and 1% respectively, to 490,600 ounces ounces (2016: 2,334,700 ounces), and refined palladium
of platinum (2016: 505,600 ounces) and 323,100 ounces production by 14% to 1,668,500 ounces (2016: 1,464,200
of palladium (2016: 327,800 ounces). The decrease was ounces). Refined production in 2016 was materially affected
largely due to the stoppage of the Mototolo concentrator by a Section 54 safety stoppage at the Precious Metals
for remedial work to stabilise the tailings storage facility. Refinery, as well as by a run-out at the Waterval smelter in
This resulted in a 27% reduction in platinum output to September of that year; the subsequent recovery from
85,300 ounces (2016: 116,700 ounces) and a 26% these developments was largely responsible for the
reduction in palladium output to 52,500 ounces increase in output in 2017.
(2016: 70,700 ounces).
The planned rebuild of the Waterval No. 2 furnace in the
Modikwa platinum production rose by 10% to 126,700 first quarter of 2017, and a high-pressure water leak at the
ounces (2016: 114,800 ounces), and palladium production converter plant in June 2017, delayed refining the backlog
by 9% to 122,700 ounces (2016: 112,200 ounces) on the of material from 2016 to the second half of the year, with
back of increased underground mining efficiencies and the full additional 100,000 ounces refined by year end.
improved concentrator recoveries. Kroondal’s production
Platinum sales volumes increased by 4% to 2,504,600
was slightly higher owing to increased underground
ounces (2016: 2,415,700 ounces), while palladium sales
productivity, with platinum and palladium production both
volumes rose by 3% to 1,571,700 ounces (2016: 1,532,100
2% higher at 278,600 ounces (2016: 274,100 ounces) and
ounces), in line with higher refined production.
147,900 ounces (2016: 144,900 ounces) respectively.
Purchase of concentrate from associates
OPERATIONAL OUTLOOK
Total platinum production from associates decreased by
5% to 265,500 ounces (2016: 279,300 ounces), while Platinum production (metal in concentrate) for 2018
palladium production was 10% lower at 127,900 ounces is expected to be 2.3-2.4 million ounces.
(2016: 141,700 ounces).
Palladium production (metal in concentrate) for 2018
BRPM produced 211,900 ounces of platinum is expected to be 1.5-1.6 million ounces.
(2016: 195,900 ounces) and 87,600 ounces of palladium
(2016: 81,300 ounces), both increasing by 8%, as the
Styldrift project continued its ramp-up.
On 31 October 2017, Bokoni mine was placed onto care
and maintenance by Platinum’s joint venture partner,
Atlatsa Resources, resulting in a 36% reduction in platinum
output to 53,600 ounces (2016: 83,400 ounces) and a
33% decrease in palladium output to 40,300 ounces
(2016: 60,400 ounces). No further loss-making production
will be produced from Bokoni while the mine and
concentrator remain on care and maintenance.

STRATEGIC REPORT IRON ORE AND MANGANESE
IRON ORE AND

MANGANESE
Anglo American’s iron ore operations provide customers with niche, high iron
content ore, a large percentage of which is direct-charge product for blast furnaces.
In South Africa, we have a majority share (69.7%) in Kumba Iron Ore, while in Brazil
we have developed the integrated Minas-Rio operation. In manganese, we have a
40% shareholding in Samancor, with operations based in South Africa and Australia.
INCREASE IN UNDERLYING EBITDA ••Focus on securing the Step 3 operating licence so
53%
that Minas-Rio is in a position to access the full range
Ruben Fernandes
CEO of run-of-mine ore grades and target its nameplate
Anglo American capacity of 26.5 Mtpa (wet basis)
Brazil
UNDERLYING EBITDA ••Unlock the full potential of Kumba’s operations through

the continued delivery of operational efficiencies across
$2.4 billion all primary and secondary equipment

••Continue to rationalise expenditure across
Kumba’s operations
Themba Mkhwanazi RETURN ON CAPITAL EMPLOYED
21%
CEO
Kumba Iron Ore
••Expand new technologies to process Kumba’s
low-grade material.
Seamus French
CRESCER – CREATING LASTING CHANGE
CEO
Bulk Commodities Crescer is our enterprise development programme in and the Inter-American Development Bank (IDB), with
and Other Minerals Brazil. Its focus is on supporting the agricultural sector, which we have a $6 million partnership ($2 million from
local youth employment, and capacity development in the IDB and $4 million from Anglo American) invested
areas close to Minas-Rio’s mine. It works closely with in Brazil, Peru and Chile. Together, the IDB and
our leading supplier-development programme in the TechnoServe provide invaluable access to capital and
country, Promova, through adopting an integrated markets, business advice and mentoring.
approach that leverages our core business activities
The money is being used to develop rural entrepreneurs
Each month, Minas-Rio to foster enterprise and workforce development.
hosts the Quitanda Real and local production chains, to empower local youth
fair, where local producers This approach is further strengthened by the so that they are in a better position to take advantage
can raise awareness of
their enterprises and sell
involvement of TechnoServe, our Group NGO of opportunities in the labour market, and in building
their products. enterprise-development implementing partner, capacity in local municipalities in order to foster a
self-sustaining environment that is ripe for growth.
Crescer supports production chains in dairy products,
beekeeping, horticulture and tourism. The value of the
local procurement proportion of municipal school meals
in Conceição do Mato Dentro Municipality has increased
more than tenfold. Furthermore, all vegetables
consumed at the dining facilities in Minas-Rio’s
operational area are supplied locally by a producer
supported by Crescer.
In Brazil, our partnership with TechnoServe, has
supported 471 enterprises (37% women-owned),
helped 77 young people to graduate, and has stimulated
revenue of $6.3 million from local procurement activities
– in turn, supporting 1,900 jobs.

(Mt)(1) (Mt) ($/t)(2) ($/t)(3) ($m) ($m) margin ($m) ($m) ROCE◊
Iron Ore and Manganese – – – – 5,831 2,357 40% 1,978 252 21%
Prior year – – – – 3,426 1,536 45% 1,275 269 12%
Kumba Iron Ore 45.0 44.9 71 31 3,486 1,474 42% 1,246 229 47%
Prior year 41.5 42.5 64 27 2,801 1,347 48% 1,135 160 51%
Iron Ore Brazil (Minas-Rio) 16.8 16.5 65 30 1,405 435 31% 335 23(5) 6%
Strategic report
Prior year 16.1 16.2 54 28 – (6) – (6) 109 (1)%
Samancor (4) 3.6 3.6 – – 940 529 56% 478 – 115%
Prior year 3.3 3.4 – – 625 258 41% 209 – 59%
Prior year – – – – – (63) – (63) – –
(1)
Iron Ore Brazil production is Mt (wet basis).
(2)
Prices for Kumba Iron Ore are the average realised export basket price (FOB Saldanha). Prices for Iron Ore Brazil are the average realised export basket price (FOB Açu) (wet basis).
(3)
Unit costs for Kumba Iron Ore are on an FOB dry basis. Unit costs for Iron Ore Brazil are on an FOB wet basis.
(4)
Production, sales and financials include ore and alloy.
(5)
$80 million of capital expenditure offset by capitalised cash inflows of $31 million relating to working capital in place at 31 December 2016, in addition to a $25 million inflow relating to capex hedges.
FINANCIAL AND OPERATING OVERVIEW MARKETS

Kumba Iron ore
Underlying EBITDA of $1,474 million was 9% higher 2017 2016
(2016: $1,347 million), with a 6% improvement in total sales Average market price
volumes and an 11% increase in the realised price being (IODEX 62% Fe CFR China – $/tonne) 71 58
offset by a 15% increase in FOB unit costs. The increase in Average market price
unit costs was largely driven by the impact of the stronger (MB 66% Fe Concentrate CFR – $/tonne) 87 69
South African rand (rand FOB unit costs increased by 2%) Average realised price
(Kumba export – $/tonne)
and cost inflation, including higher rail costs. This was
(FOB Saldanha) 71 64
partly offset, however, by productivity gains in mining and
Average realised price
processing that led to an 8% rise in production, and through (Minas-Rio – $/tonne) (FOB wet basis) 65 54
a higher premium achieved for lump product.
In line with higher production volumes, export sales volumes Kumba’s outperformance over the IODEX (Platts) 62% Fe
increased by 7% to 41.6 Mt (2016: 39.1 Mt). Total finished CFR China index is primarily representative of the higher
product stock also increased to 4.3 Mt (2016: 3.5 Mt), iron (Fe) content and the relatively high proportion
reflecting the increase in output. (approximately 66%) of lump in the overall product portfolio.
Iron Ore Brazil Minas-Rio produces higher grade products than the
Underlying EBITDA amounted to $435 million reference product used for the IODEX 62% Fe index. The
(2016: $6 million loss), reflecting the operation’s continued pricing of Minas-Rio’s products reflects the higher Fe
ramp-up to its current operating capacity and the cessation content and lower gangue of those products compared with
of capitalisation of operating results since January 2017. the IODEX 62% reference. IODEX 62% is referred to for
The average FOB realised price of $65/wet metric tonne comparison purposes only.
(equivalent to $71/dry metric tonne) was $11/tonne, Manganese
or 20%, higher than that achieved in 2016. FOB unit During 2017, the average benchmark manganese ore price
costs increased by 7% to $30/wet metric tonne (benchmark CRU 44% CIF China) increased by 36% to
(2016: $28/wet metric tonne) as higher production volumes $5.97/dmtu (2016: $4.38/dmtu), largely attributable to
and the implementation of cost reduction initiatives only higher Chinese steel production and limited ore supply in
partly offset the strengthening of the Brazilian real. the market, resulting from production cuts made in late 2015
Samancor and early 2016.
Underlying EBITDA increased by $271 million to For more information, refer to the Marketplace review section
$529 million (2016: $258 million), driven mainly by See pages 11-13
significantly higher realised manganese ore and alloy
prices and a 7% increase in ore sales.

STRATEGIC REPORT IRON ORE AND MANGANESE
OPERATING PERFORMANCE OPERATIONAL OUTLOOK

Kumba Kumba
Sishen’s production increased by 10% to 31.1 Mt Kumba’s full year production guidance for 2018 has
(2016: 28.4 Mt) following improvements in mining been increased to 44-45 Mt following the recent
productivity resulting from fleet efficiencies and higher strong performance at both Sishen and Kolomela.
plant yields, brought about from the implementation of
Sishen is expected to produce 30-31 Mt of product
the Operating Model. Consequently, the amount of waste
and mine 170-180 Mt of waste.
mined rose, as planned, to 162 Mt (2016: 137 Mt), an
18% increase. Additional operator training, changed shift Kolomela is expected to produce around 14 Mt, while
patterns, together with higher workforce attendance rates, waste removal, in support of the increased annual output,
yielded positive results in the form of increased direct is expected to be around 55-57 Mt.
operating hours, enabling the mine to reduce its reliance
Iron Ore Brazil
on contractors.
Minas-Rio continues to focus on obtaining the Step 3
Kolomela’s production increased by 9% to 13.9 Mt operating licence required for the operation to access
(2016: 12.7 Mt), also reflecting productivity improvements the full range of run-of-mine ore grades and target the
following the roll-out of the Operating Model. Waste mining operation’s nameplate capacity of 26.5 Mt (wet basis). The
volumes grew by 11% to 55.6 Mt (2016: 50.2 Mt), supporting Step 3 installation licence was granted in January 2018,
higher production levels. The Kolomela modular plant following delays during 2017, which will allow the Step 3
delivered 0.5 Mt, although performance was affected by construction work to proceed. As a consequence of
delays in the ramp-up of the crushing plant. receiving the installation licence, the Provisional Operational
Authorisation (‘APO’) is expected before November 2018
Iron Ore Brazil
and the full Step 3 operational licence by mid-2019.
Minas-Rio’s production of 16.8 Mt (wet basis) was 4%
higher (2016: 16.1 Mt) as the operation continued to ramp Production guidance for 2018 has been lowered to 13-15 Mt
up its current operating capacity. The ramp-up schedule (previously 15-18 Mt) as a result of the lower ore grades at
was affected as mining operations were restricted to the the remaining Step 2 area and the delays to the Step 3
remaining Ore Reserves in the Step 2 licence area, which operational licence process.
included lower grade ore.
In 2018, unit costs are expected to increase as a result
Samancor of lower production volumes, and to be in the region of
Manganese ore output increased by 11% to 3.5 Mt $35/wet metric tonne.
(attributable basis) (2016: 3.1 Mt). Production from the
Samancor
Australian operations was 7% higher owing to increased
Australian manganese ore production guidance of
concentrator throughput and higher yields as a result of
2.1 Mwmt (100% basis) for 2018 remains unchanged.
favourable weather and the availability of suitable feed
South African manganese ore production guidance has
types. The South African operations increased production
increased by 8% to 3.4 Mwmt (100% basis), subject to
by 18%, taking advantage of stronger demand and pricing
continued strong market demand.
and the sale of lower quality fines product.
Legal
Production of manganese alloys increased by 8% to
Sishen consolidated mining right granted
149,200 tonnes (attributable basis) (2016: 137,800 tonnes),
Sishen’s application to extend the mining right by the
mainly as a result of improved power availability at the
inclusion of the adjacent Prospecting Rights was granted
Australian operations. In South Africa, manganese alloy
on 6 July 2017, and the process to amend the Sishen mining
production continued to utilise only one of the operation’s
right continues. Mining operations in this area will only
four furnaces.
commence once the required environmental authorisation
has been approved, which is expected soon. The grant
allows Sishen mine to expand its current mining operations
within the adjacent Dingleton area.

STRATEGIC REPORT COAL
COAL
Our coal portfolio is geographically diverse, with metallurgical coal assets in Australia,
Strategic report
and thermal coal assets in South Africa and Colombia, which mine products attuned to
the individual requirements of our diversified customer base. We are the world’s third
largest exporter of metallurgical coal.
RECORD PRODUCTION AT MORANBAH ••Safety and the elimination of fatalities, focusing on
5.4 Mt
strengthening critical controls and work management,
July Ndlovu
CEO further developing our front line supervisors and
Coal South Africa enhancing the safety culture at all levels of the business
UNDERLYING EBITDA ••Complete the roll-out of the Operating Model at all

Metallurgical Coal operations
$2.9 billion ••In South Africa, replicate the productivity and cost

improvements realised at the underground trade mines
David Diamond in the open cut trade mines.
CEO RETURN ON CAPITAL EMPLOYED
67%
Metallurgical Coal
Seamus French
CEO
PRIORITISING ENVIRONMENTAL RISK AT METALLURGICAL COAL
Bulk Commodities
and Other Minerals Grosvenor colliery in Australia is trialling the Operational Metallurgical Coal has set out to give environmental
Risk Management (ORM) process to give greater priority issues the necessary focus at its operations. Its
to environmental risk. environmental specialists came together to evaluate
and benchmark the risks associated with coal mining,
Risk management leads to critical controls that keep
and looked at 12 priority unwanted events (PUEs) in a
employees healthy and safe, protect the environment
Chief executive baseline risk assessment.
Mark Cutifani addresses and maintain Anglo American’s social licence to operate.
employees at Metallurgical Six specific PUEs were identified, along with 13
Coal’s Grosvenor mine in But environmental risk is sometimes seen as a
2017, where the operational associated critical controls. Following internal
reputational issue with a lower priority than safety or
risk management (ORM) consultation, the controls were assigned for monitoring
process is being trialled. financial issues, and is not always built into ORM systems.
and evaluation, typically by engineering and
maintenance teams, in addition to the mine’s
environment department.
One such critical-control monitoring activity is the
six-monthly check on the state of pumping infrastructure
that allows the automated transfer of water between
facilities. This ensures the operation can comply with
dam operational limits, while reducing the risk of an
unplanned release of water. Another example is the
verification that sediment- and erosion-control structures
have been maintained effectively before and after the
wet season to ensure sediment-laden run-off is managed
in accordance with Grosvenor’s environmental licence.
Monitoring recently identified that additional work is
required to prepare sediment traps ahead of the rains.
Environmental risk has high priority at Grosvenor, with
learnings being applied across Metallurgical Coal and
other operations.

STRATEGIC REPORT COAL

(Mt)(1) (Mt)(2) ($/t)(3) ($/t)(4) ($m) ($m) margin (5)
($m) ($m) ROCE◊
Coal 48.9 49.0 – – 7,211 2,868 46% 2,274 568 67%
Prior year 50.7 50.6 – – 5,263 1,646 36% 1,112 613 29%
Metallurgical Coal 19.7 19.8 185 61 3,675 1,977 54% 1,594 416 86%
Prior year 20.9 20.7 112 51 2,547 996 39% 661 523 30%
Coal South Africa 18.6 18.6 76 44 2,746 588 32% 466 152 54%
Prior year 19.1 19.1 60 34 2,109 473 33% 366 90 41%
Cerrejón 10.6 10.6 75 31 790 385 49% 296 – 35%
Prior year 10.7 10.8 56 28 607 235 39% 143 – 17%
Prior year – – – – – (58) – (58) – –
(1)
Production volumes are saleable tonnes. South African production volume is export production only and excludes Eskom-tied operations volumes of 23.9 Mt
(2016: 24.8 Mt) and other domestic production of 7.5 Mt (2016: 9.9 Mt). Metallurgical Coal production volumes exclude thermal coal production volumes of 1.6 Mt
(2016: 9.5 Mt, including 5.6 Mt of domestic thermal coal).
(2)
South African sales volumes exclude all domestic sales of 32.0 Mt (2016: 34.5 Mt) and non-equity traded sales of 7.6 Mt (2016: 6.1 Mt). Metallurgical Coal sales volumes
exclude thermal coal sales volumes of 1.8 Mt (2016: 9.6 Mt, including 5.4 Mt of domestic thermal coal).
(3)
Metallurgical Coal is the weighted average hard coking coal and PCI sales price achieved. Coal South Africa is the weighted average export thermal coal price achieved.
(4)
FOB cost per saleable tonne, excluding royalties. Metallurgical Coal excludes study costs and Callide. Coal South Africa unit cost is for the export operations.
(5)
Excludes impact of third-party sales and Eskom-tied operations.
FINANCIAL AND OPERATING OVERVIEW The sale of the New Largo thermal coal project and Old
New Largo closed colliery in South Africa (together,
Metallurgical Coal
‘New Largo’) by Anglo American Inyosi Coal Proprietary
Underlying EBITDA doubled to $1,977 million
Limited to New Largo Coal Proprietary Limited for
(2016: $996 million), owing to a 65% increase in the
R850 million (approximately $71 million), was announced on
metallurgical coal realised price and higher production at
29 January 2018. The sale is subject to conditions precedent
all three underground operations. This was partly offset
customary for a transaction of this nature, including
by planned production cuts at Dawson and Capcoal open
regulatory approvals in South Africa. The transaction is
cut operations and the impact of divestments on output.
expected to close in the second half of 2018.
Following the divestments of Foxleigh (a PCI producer)
and Callide (a domestic and export thermal coal producer), The financial results reported for the period ended
and the cessation of mining activities at Drayton (an export 31 December 2017 include the Eskom-tied domestic
thermal coal producer), the business now produces a thermal coal operations and New Largo.
greater proportion of higher-margin hard coking coal
Cerrejón
(80% of total production, compared with 53% in 2016).
Underlying EBITDA increased to $385 million
Coal South Africa (2016: $235 million), owing mainly to higher export
Underlying EBITDA increased by 24% to $588 million thermal coal prices, partly offset by a 2% decrease
(2016: $473 million), mainly attributable to a 27% increase in sales volumes.
in the export thermal coal price. US dollar unit costs for the
export trade operations increased by 29% to $44/tonne
MARKETS
(2016: $34/tonne), owing to the stronger South African rand
($4/tonne impact), lower production ($4/tonne impact), Metallurgical coal
mainly at Khwezela, and cost-inflation pressures ($2/tonne). 2017 2016
Average market price for premium
The sale of the Eskom-tied domestic thermal coal low-volatility hard coking coal ($/tonne)(1) 188 143
operations consisting of New Vaal, New Denmark, and Average market price for premium
Kriel collieries, as well as four closed collieries (together, low-volatility PCI ($/tonne)(1) 119 97
‘Eskom-tied operations’) by Anglo Operations Proprietary Average realised price for premium
Limited and Anglo American Inyosi Coal Proprietary Limited low-volatility hard coking coal ($/tonne) 187 119
to a wholly owned subsidiary of Seriti Resources Holdings Average realised price for PCI ($/tonne) 125 77
Proprietary Limited was announced on 10 April 2017 for (1)
Represents average spot prices. Prior year prices were previously based on the
a consideration payable, as at 1 January 2017, of R2.3 billion quarterly average benchmark and have been restated accordingly.
(approximately $164 million). The transaction is expected to
complete on 1 March 2018. Average realised prices differ from the average market
price owing to differences in material grade and timing
of contracts.
Prices in 2017 were supported by higher steel prices
and strong demand globally, as well as by supply
constraints arising from wet weather in Queensland
in the second quarter.

Thermal coal Coal South Africa
2017 2016
Export production decreased by 3% to 18.6 Mt
Average market price –
($/tonne, FOB Australia) 89 66 (2016: 19.1 Mt), with continued productivity improvements
Average market price –
at the underground operations more than offset by a
($/tonne, FOB South Africa) 84 64 self-enforced 100-hour safety stoppage at all operations
Average market price – following the third fatality of the year. In addition, at Khwezela
($/tonne, FOB Colombia) 78 58 there were operational challenges with the waste fleet and
Average realised price – coal recovery operations. Total production from trade mines
Export Australia ($/tonne, FOB) 91 55 decreased by 11% to 22.0 Mt (2016: 24.6 Mt), mainly owing
to the planned ramp-down of Khwezela’s Eskom pit, which
Strategic report
Average realised price –
Export South Africa ($/tonne, FOB) 76 60 reached its end of life in the first half of 2017.
Average realised price –
Domestic South Africa ($/tonne) 21 17 Production from Eskom-tied operations decreased by 4%
Average realised price – to 23.9 Mt (2016: 24.8 Mt) due to lower Eskom offtake from
Colombia ($/tonne, FOB) 75 56 New Vaal and reserve constraints at Kriel as it approaches
the end of its mine life.
The average realised price for thermal coal will differ Cerrejón
from the average market price owing to timing and quality Anglo American’s attributable output from its 33.3%
differences relative to the industry benchmark. The shareholding in Cerrejón was 10.6 Mt, in line with the
difference in the realised price compared with the prior year.
benchmark price, between 2016 and 2017, reflects
changing quality mix owing to a higher proportion of
secondary products being sold into the export market. OPERATIONAL OUTLOOK
The thermal coal market saw the positive price effects of Metallurgical coal
the Chinese domestic coal production rationalisation, which Export metallurgical coal production guidance for 2018 is
supported coal imports into China and lifted seaborne unchanged at 20-22 Mt.
pricing. On the supply side, Australia was stable, while Export thermal coal
Indonesia was constrained owing to mining issues Full year production guidance for 2018 for export thermal
associated with ongoing wet weather. The Atlantic region coal from South Africa and Cerrejón is unchanged at
saw coal prices supported by higher electricity prices, partly 29-31 Mt.
driven by nuclear outages in France.
For more information, refer to the Marketplace review section
See pages 11-13
Metallurgical Coal
Production from the underground longwall operations was
14% higher at 12.3 Mt (2016: 10.8 Mt), and included 0.3 Mt
from the ramp-up of Grosvenor and record production of
5.4 Mt from Moranbah. Both Capcoal open cut and Dawson
recorded lower production as the sites established
alternative pit areas and removed higher-cost production.
Following a recovery from the geological issues
experienced in the first six months, and a strong operational
performance through the third quarter, Grosvenor
completed its first longwall panel during the final quarter
of 2017, and also completed an extended longwall move
in order to rectify defective components identified during
the first panel. Production on the second longwall panel
commenced in December and is in line with the
ramp-up plan.

STRATEGIC REPORT NICKEL
NICKEL
Our Nickel business is well placed to serve the global stainless steel industry,
which depends on nickel and drives demand for it. Our assets are in Brazil, with
two ferronickel production sites: Barro Alto and Codemin, in the state of Goiás.
INCREASE IN UNDERLYING EBITDA ••Ensure operational stability following the planned 40 day
42%
maintenance stoppage at the beginning of 2018
Ruben Fernandes
CEO
Anglo American
••Progress stability of the coal pulverisation plant to realise
Brazil further cost efficiencies
UNDERLYING EBITDA ••Continue studies for the implementation of a briquetting
$81 million
plant, which would improve charge permeability in the
electric furnaces, thereby improving process safety
and stability.
Seamus French NICKEL PRODUCTION
43,800 tonnes
CEO
Bulk Commodities
and Other Minerals
REPROLATINA – AN INVESTMENT IN HEALTH – AND SOCIETY

In Brazil, where we have substantial iron ore and
nickel businesses, we have a longstanding partnership
with Reprolatina, an NGO which aims to improve
health services for women, men and adolescents in
disadvantaged communities in Latin American countries.
Since 2010, Reprolatina, in partnership with the
Municipality of Barro Alto, and with the financial support
of Anglo American, has been undertaking a project to
reduce the high rates of pregnancy in adolescents and to
build a culture of prevention and promotion of sexual and
reproductive health.
Over the past eight years, more than 63,000 individuals
have benefited from the education activities, centred on
sexual and reproductive health, promoted by Reprolatina
in our operations’ neighbouring communities. As a result,
adolescent pregnancy reduced from 40% in 2013,
Anglo American is an The sustainability of Anglo American’s business is
active supporter of to 15% in 2017, against a national average of 21%.
Reprolatina, an NGO inextricably linked to the ongoing development of
that aims to improve communities in the areas where it has operations. Our Reprolatina’s success lies in its ability to integrate
health services for the
disadvantaged. The large footprint in parts of the developing world mean public policy with private-sector initiatives while, at a
organisation has been that our capacity to contribute to the social and grassroots level, it is involved in the classroom, the
able to link private-
sector initiative and
economic progress of vulnerable communities today, workplace and the community. It is also engaging with
public policy with and for long after our mines have reached the end of various organisations, including at an international level,
remarkable success, their lives, is significant. in promoting women’s health – thereby contributing
helping to substantially
reduce high rates of to the achievement of the UN’s Sustainable
Health outcomes are a primary concern for host
adolescent pregnancy, Development Goals.
and promoting sexual communities. Failing to provide decent healthcare in
and reproductive health early years can have lifelong consequences in health,
in general.
well-being and employability.

Production Sales C1unit Underlying Underlying Underlying
volume volume Price cost◊ Revenue◊ EBITDA◊ EBITDA EBIT◊ Capex◊
(t) (t) (c/lb) (c/lb) ($m) ($m) (1)
margin ($m)(1) ($m) ROCE◊
Nickel 43,800 43,000 476 365 451 81 18% 0 28 0%
Prior year 44,500 44,900 431 350 426 57 13% (15) 62 (1)%
(1)
Nickel segment includes $3 million projects and corporate costs (2016: $10 million).
Strategic report
FINANCIAL AND OPERATING OVERVIEW OPERATING PERFORMANCE
Underlying EBITDA increased by 42% to $81 million Nickel output decreased by 2% to 43,800 tonnes
(2016: $57 million), reflecting a higher nickel price, partly (2016: 44,500 tonnes) as instabilities at both smelting
offset by the unfavourable impact of the stronger Brazilian operations negatively affected Barro Alto’s production
real and cost inflation. performance in February 2017. The root causes were
addressed and the operations returned to stable
Nickel unit costs increased by 4% to 365 c/lb
performance from the second quarter. Codemin’s
(2016: 350 c/lb) as adverse exchange rates and inflation
production of metal was in line with the prior year at
were only partly compensated by other cost-saving efforts,
9,000 tonnes.
including lower energy costs.
OPERATIONAL OUTLOOK
MARKETS
2017 2016 Production guidance for 2018 has been lowered to
Average market price (c/lb) 472 436 42,000-44,000 tonnes, as a result of planned maintenance
Average realised price (c/lb) 476 431 at Barro Alto’s plant.
The average market price is the LME nickel price, from

which ferronickel pricing is derived. Ferronickel is traded
based on discounts or premiums to the LME price,
depending on market conditions, supplier products and
consumer preferences.
Differences between market prices and realised prices
are largely due to variances between the LME and the
ferronickel price.
For more information, refer to the Marketplace review section
See pages 11-13

STRATEGIC REPORT CORPORATE AND OTHER
CORPORATE AND OTHER
Financial metrics
Underlying Underlying
Revenue◊ EBITDA◊ EBIT◊ Capex◊
($m) ($m) ($m) ($m)
Segment 5 (292) (313) 9
Prior year 499 (5) (71) 40
Niobium and Phosphates – – – –
Prior year 495 118 79 26
Exploration – (103) (103) –
Prior year – (107) (107) –
Corporate activities and unallocated costs 5 (189) (210) 9
Prior year 4 (16) (43) 14
FINANCIAL AND OPERATING OVERVIEW

Corporate and other reported an underlying EBITDA
loss of $292 million (2016: $5 million loss).
Niobium and Phosphates
The sale of the Niobium and Phosphates business
to China Molybdenum Co Ltd. was completed on
30 September 2016.
Exploration
Exploration expenditure decreased to $103 million
(2016: $107 million), reflecting a general reduction
across most of the commodities, driven primarily by
lower drilling activities.
Corporate activities and unallocated costs
Underlying EBITDA amounted to a $189 million loss
(2016: $16 million loss), driven primarily by a year-on-year
loss recognised in the Group’s self-insurance entity,
reflecting lower premium income and higher net claims
and settlements during 2017.

GOVERNANCE CHAIRMAN’S INTRODUCTION
GOVERNANCE
“ I am a strong believer in the importance

of good governance and that the actions
and behaviours of the Board set the tone
for the organisation as a whole.”
Stuart Chambers, Chairman
Governance
This section of the Annual Report provides an overview BOARD VISITS TO OPERATIONS
of the means by which the Anglo American Group is
Given the number of new members joining the Board, the
directed and controlled. The Board of directors is there
opportunity for directors to visit operations and learn more
to support and challenge management and to ensure
about the business was perhaps more important than ever
that we operate in a manner that promotes the
in 2017. Even those directors who have been on the Board
long-term sustainable success of the Company,
for some time find the visits invaluable as they have the
generates value for shareholders and contributes to
opportunity to interact with employees from a range of
wider society. Over the next few pages we describe
backgrounds and seniority, as well as gaining a better
the ways in which we seek to achieve this.
understanding of the operations in their local context. There
are also opportunities to meet with local stakeholders and
BOARD COMPOSITION understand their interests and concerns. The site visits are
described on pages 76-77.
As described in my statement on pages 4-5, there were a
number of changes to the Board in 2017. These ensured
that we replaced the skills and experience lost due to recent BOARD EVALUATION
resignations and retirements, and aimed to achieve gender
Internal Board evaluations were carried out in 2016 and
and ethnic diversity on the Board as a whole.
2017, and the processes used and the results obtained
At the conclusion of the Annual General Meeting (AGM) in are described on pages 74-75. Each committee and the
April, René Médori retired as finance director. Over a period Board itself have an action plan to address the points raised
of 12 years, René’s steady hand, his integrity, and the quality by the evaluations and to ensure that we act upon them
of his astute leadership were greatly appreciated by the to improve performance. In 2018 we will ask an external
Board. René was succeeded by Stephen Pearce, who has a consultant to evaluate the Board, its committees and each
wealth of financial and commercial experience gained of us who serve as directors. We will report on the findings
across the extractive and related industries. Stephen has of that evaluation next year in the 2018 Annual Report.
already made considerable progress on, for example,
extending our debt maturity profile.
COMMITTEE GOVERNANCE
At the AGM in 2017, we also welcomed Nolitha Fakude
Starting on page 78, each of the Board committee chairmen
as a non-executive director. Nolitha has had many years
presents a report on the activities of their committees during
of experience across a diverse range of industry sectors,
2017. The efficient operation and interaction of the Board
and was until recently an executive board member of
and its committees are vital to ensure that matters receive
South Africa-based petrochemicals company, Sasol. In
the necessary attention in a timely manner. I am grateful to
July, Ian Ashby was appointed as a non-executive director.
the members and the chairmen of those committees in
Ian has almost four decades of experience in the mining
particular for the work that they do throughout the year in
industry, and has held a variety of roles across businesses
this regard.
in Australia, Chile and the US.
Last year we presented our remuneration policy to
The last Board change in the year was, of course, Sir John
shareholders for approval, and received strong support
Parker’s retirement as chairman at the end of October 2017.
for it. There is clearly more we can do in this area, especially
On behalf of the Board, management and employees of the
as regards the gender pay gap, and we are committed to
Group, I would like to thank Sir John for everything he has
addressing this. The report of the Remuneration Committee
done for us during his tenure.
appears on pages 88-115.
The processes we followed to refresh the Board are
described on page 73.

GOVERNANCE CHAIRMAN’S INTRODUCTION
COMPLIANCE WITH THE UK CORPORATE

GOVERNANCE CODE CHAIRMAN’S INDUCTION
The Board supports the principles and provisions of the
UK Corporate Governance Code (the Code) issued by From the date my appointment was announced
the Financial Reporting Council (FRC). The Company has in June 2017, I have spent a significant amount
complied throughout the year with the Code, which is of time getting to know the business. This has
available on the FRC’s website (www.frc.org.uk). Ways in afforded me the opportunity to understand the
which the Code has been applied can be found on the key issues facing the business and ensure I was
following pages: well positioned to ‘hit the ground running’ on day
one as chairman of Anglo American.
Code section and where to find details
Section A: Leadership My extensive induction programme included
Pages 65-70 give details of the Board and executive internal briefings with senior leaders across the
management and the Board governance structure Group, site visits to the Group’s operations, and
external meetings with corporate advisers and
Section B: Effectiveness major investors. I have met managers and other
Pages 72-115 describe the activities of the Board employees in our mines and offices around the
committees and the induction and evaluation of world and visited around 15 of our operations.
the directors
Key highlights:
Section C: Accountability
The role of the Board in this area is primarily shown on ••One-to-one meetings with all 12 members of
pages 80-87, with further detail on the Group’s strategic the Group Management Committee
objectives and the principal risks to the business in the ••Around 40 meetings with Group business unit
Strategic Report and functional leaders
Section D: Remuneration ••One-to-one meetings with each of the
The Group’s remuneration policy and the report of the non-executive directors
Remuneration Committee are found on pages 88-115
••In August, undertook an internal orientation session
Section E: Relations with shareholders on the Anglo American Operating Model
This is shown on page 75.
••In September, spent time visiting operations in
I hope you find this report useful and informative. I look South Africa, accompanied by Norman Mbazima,
forward to seeing as many of you as possible at our deputy chairman of Anglo American South Africa.
AGM and would encourage you to vote your shares even Over the course of a week I visited De Beers’
if you cannot attend in person, so that we gain a better Venetia mine, Platinum’s Mogalakwena mine and
understanding of the views of our shareholders as a whole. Amandelbult complex, the Zibulo coal mine and
Kumba Iron Ore’s Sishen mine
Stuart Chambers ••Joined the Sustainability Committee’s site visit

Chairman to the Platinum Precious Metals Refinery in
South Africa
••In October, travelled to Brazil to visit the Minas-Rio
(Iron Ore) and Barro Alto (Nickel) operations
accompanied by Ruben Fernandes, CEO Brazil
••In October, travelled to Chile for an Anglo American
Board meeting, operational site visits and joined
Copper as they celebrated Anglo American’s
centenary celebrations with external stakeholders.
I was also able to take part in my first Global Safety
Day at Quellaveco in southern Peru
••In early 2018, toured De Beers Technologies and
Element Six Global Innovation Centre in the UK,
and visited De Beers’ Jwaneng mine and Global
Sightholder Sales in Botswana, accompanied by
Bruce Cleaver, CEO of De Beers. I also travelled to
Singapore to spend time at the Group’s Marketing
business, accompanied by Peter Whitcutt, CEO
of Marketing.
My induction programme will continue into 2018 with
further operational visits and meetings with senior
leaders and other stakeholders.

GOVERNANCE DIRECTORS
DIRECTORS COMMITTEE MEMBERSHIP KEY

Audit Committee Sustainability Committee
Nomination Committee Chair of Committee
Remuneration Committee Member of Committee
Appointed to the Board on 1 September 2017 and as Chairman on 1 November 2017
SKILLS AND EXPERIENCE plc and its subsequent parent company Nippon
Stuart brings to Anglo American significant global Sheet Glass until 2010, in a number of executive roles
executive and boardroom experience across the and ultimately as chief executive of both companies.
industrial, logistics and consumer sectors. Prior to that, Stuart gained 10 years of sales and
marketing experience at Mars Corporation,
Stuart previously served as chairman of ARM
following 10 years at Shell.
Holdings plc and Rexam plc until 2016; and as a
non-executive director on the boards of Tesco plc CURRENT EXTERNAL APPOINTMENTS
Stuart Chambers (61) N S
(2010-2015), Manchester Airport Group plc Chairman and a non-executive director at
Chairman
(2010-2013), Smiths Group plc (2006-2012) and Travis Perkins PLC, and a member of the
BSc Associated British Ports Holdings plc (2002-2006). UK Takeover Panel.
His executive career included 13 years at Pilkington
Appointed to the Board as Chief Executive on 3 April 2013
Governance
SKILLS AND EXPERIENCE Before joining AngloGold Ashanti, Mark was
Mark brings to Anglo American over 40 years’ COO at Vale Inco, where he was responsible for
experience of the mining industry across a wide Vale’s global nickel business. Prior to this he held
range of geographies and commodities. senior executive positions with the Normandy
Group, Sons of Gwalia, Western Mining Corporation,
Mark is chairman of the Group Management
Kalgoorlie Consolidated Gold Mines and CRA
Committee (GMC), and a member of the Corporate
(Rio Tinto).
and Operational committees. He is a non-executive
Mark Cutifani (59) S
director of Anglo American Platinum, chairman of CURRENT EXTERNAL APPOINTMENTS
Chief Executive
Anglo American South Africa and chairman of Independent director of Total S.A.
BE (Mining–Hons), FAusIMM, De Beers. Mark was previously CEO of AngloGold
CEngFIMMM, DBA (Hon), DoL (Hon) Ashanti Limited, a position he held from 2007-2013.
Appointed to the Board as Finance Director on 24 April 2017
SKILLS AND EXPERIENCE and an executive director of Fortescue Metals Group

Stephen brings to Anglo American more than 16 from 2010-2016. Prior to that, he held the positions
years of public company director experience and of managing director and CEO of Southern Cross
over 30 years of financial and commercial experience Electrical Engineering Ltd and was CFO of Alinta Ltd.
in the mining, oil and gas, and utilities industries. He is a former non-executive director of Cedar
Woods Properties Ltd.
Stephen joined Anglo American in January 2017.
Stephen Pearce (53) He is a member of the GMC, and chairman of the CURRENT EXTERNAL APPOINTMENTS
Finance Director Corporate and Investment committees. He is None
also a non-executive director of Kumba Iron Ore,
BBus (Acc), FCA, GIA, MAICD Anglo American Platinum and De Beers. Before
joining Anglo American, Stephen served as CFO
Appointed to the Board as Technical Director on 22 July 2015
SKILLS AND EXPERIENCE of Anglo American Platinum and De Beers. Tony

Tony brings to Anglo American 37 years’ experience was previously EVP – Business and Technical
in the mining industry across numerous geographies, Development at AngloGold Ashanti from 2008,
and commodities spanning iron ore, copper, nickel where he served as joint acting CEO during 2013.
and gold. His extensive career in the mining industry
includes roles as Operations Executive at Newcrest
Tony joined Anglo American in 2013 and has
Mining and Head of the Gold business at Western
responsibility for the Group’s Technical and
Tony O’Neill (60) S Mining Corporation.
Sustainability function. He is a member of the GMC,
Technical Director
chairman of the Operational Committee, and a CURRENT EXTERNAL APPOINTMENTS
MBA, BASc (Eng) member of the Corporate and Investment None
committees. He is also a non-executive director

GOVERNANCE DIRECTORS
DIRECTORS CONTINUED
Appointed to the Board on 9 November 2009 and

as the Senior Independent Director on 24 April 2014
SKILLS AND EXPERIENCE Lazards and a non-executive director of

Sir Philip brings to Anglo American significant RMC Group plc and Belgacom SA.
financial, strategic and boardroom experience across
CURRENT EXTERNAL APPOINTMENTS
a number of industries.
Chairman of GlaxoSmithKline (GSK) plc.
Sir Philip’s previous appointments include being
Sir Philip Hampton (64) A N R chairman of The Royal Bank of Scotland and
J Sainsbury plc, finance director of Lloyds TSB
Senior Independent Director
Group plc, BT Group plc, BG Group plc, British Gas
MA, ACA, MBA plc and British Steel plc, an executive director of
Appointed to the Board on 25 July 2017
SKILLS AND EXPERIENCE He began his 37-year mining career as an

Ian brings to Anglo American substantial knowledge underground miner at the Mount Isa Mines base
of the minerals industry across a wide range of metals operations in Queensland, Australia. Ian
commodities, combined with global operating, major has previously served as a non-executive director
projects and capital development experience. of New World Resources PLC and Genco Shipping
& Trading, and in an advisory capacity with Apollo
Ian served as President of Iron Ore for BHP Billiton
Global Management and Temasek.
between 2006 and 2012, when he retired from the
Ian Ashby (60) S
company. During his 25-year tenure with BHP Billiton, CURRENT EXTERNAL APPOINTMENTS
Non-executive Director
Ian held numerous roles in its iron ore, base metals Chairman of Petropavlovsk PLC and a non-executive
B Eng (Mining) and gold businesses in Australia, the US, and Chile, director of Nevsun Resources Ltd and Alderon Iron
as well as project roles in the corporate office. Ore Corp.
Appointed to the Board on 24 April 2017
SKILLS AND EXPERIENCE and operations in the retail and financial sectors.
Nolitha brings to Anglo American significant Nolitha has previously served as deputy chairman
management experience in various functional and lead independent director of Datacentrix
leadership roles across the oil and energy, chemicals, Holdings Limited, and as a non-executive director
financial services and retail industries. of Harmony Gold and Woolworths Holdings.
Until 2016, Nolitha served as an executive director at CURRENT EXTERNAL APPOINTMENTS
Sasol Limited and as EVP of strategy and sustainability, Deputy chair of South African Airways, a
Nolitha Fakude (53) A S
following an 11-year career with the company where non-executive director of the JSE Limited and
she held executive roles in human resources and African Oxygen Limited (AFROX), and a Patron
BA Hons business transformation. Prior to that she held senior of Guild Cottage home for girls.
management positions in corporate affairs, strategy
Appointed to the Board on 19 April 2013
SKILLS AND EXPERIENCE CURRENT EXTERNAL APPOINTMENTS

Byron contributes to Anglo American broad Vice chairman of the supervisory board of Akzo
business, financial and board experience in Nobel NV and a non-executive director of Standard
numerous geographies. Chartered PLC and Tesco PLC. A member of the
European Audit Committee Leadership Network
Byron has extensive management experience across
and an emeritus member of the Cornell University
the oil and gas industry. He served on the BP plc
Johnson Advisory Council.
board from 2000 until 2013 and was BP’s chief
Byron Grote (69) A N R
financial officer during much of that period. He was
previously a non-executive director of Unilever NV
PhD Quantitative Analysis and Unilever PLC.

COMMITTEE MEMBERSHIP KEY
Audit Committee Sustainability Committee
Nomination Committee Chair of Committee
Remuneration Committee Member of Committee
Appointed to the Board on 8 July 2013
SKILLS AND EXPERIENCE serving as founding board member of

Mphu is a highly experienced leader who brings to Women in Business in Lesotho.
Anglo American a broad range of global health
expertise at board level across both the public and
Executive vice president of HIV/AIDS and
private sectors.
Tuberculosis programmes for the Clinton Health
Mphu served as Minister of Health and Social Access Initiative, and the vice chair of the Global
Welfare of Lesotho between 2007 and 2012. In this Fund to Fight AIDS, TB and Malaria.
Dr Mphu Ramatlapeng (65) S
role, she championed Lesotho’s significant
achievements in reducing the transmission of HIV
MD, MHSc from mother to child. Across her career, she has been
a leading advocate for women in business, including
Appointed to the Board on 4 November 2013
Governance
SKILLS AND EXPERIENCE to joining Capital Group, Jim was an investment
Jim has over 25 years’ experience in investment analyst covering the South American mining and
banking and investment management. He has metals industry for HSBC James Capel in New York.
extensive international experience, and brings to the
Board considerable financial insight from the
Chairman of Dalradian Resources Inc., chairman of
perspective of the capital markets and a deep
the Queen’s University Belfast Foundation Board,
understanding of the mining industry.
and an independent director of the Tantallon India
Jim Rutherford (58) A R S Between 1997 and 2013, Jim was a senior vice Fund Board.
Non-executive Director president of Capital International Investors, a
division of Capital Group, and had responsibility for
BSc (Econ), MA (Econ) investments in the mining and metals industry. Prior
Appointed to the Board on 14 May 2012
SKILLS AND EXPERIENCE Corporation, where she held roles in engineering,

Anne brings to the Board a wealth of experience and product development, and sales and marketing.
wide-ranging commercial acumen from a number of Anne is a former non-executive director of Lockheed
global industries in North, Central and South America. Martin Corporation and GKN plc.
Anne served as chairman and CEO of SA IT Services CURRENT EXTERNAL APPOINTMENTS
from 2011 until her retirement in December 2014. Chief executive of GKN plc and a non-executive
From 2006-2009, Anne was chairman and CEO of director of XL Catlin.
Anne Stevens (69) A N R Carpenter Technology Corporation. Prior to this, she
Non-executive Director was COO for the Americas at Ford Motor Company
until 2006, the culmination of her 16-year career with
BSc, PhD the company. Her early career was spent at Exxon
Appointed to the Board on 16 November 2009
SKILLS AND EXPERIENCE Century Aluminum Co., Phelps Dodge Corp.,

Jack brings to Anglo American a wealth of Rinker Group Ltd and Stillwater Mining.
experience gained at all levels of the mining industry
and extensive boardroom experience in both
None
executive and non-executive roles.
Jack has received wide recognition as a mining
executive during a long and distinguished career in
Jack Thompson (67) N R S the industry. He was previously chairman and CEO
Non-executive Director of Homestake Mining Co., vice chairman of Barrick
Gold Corp. and has served on the boards of
BSc, PhD Tidewater Inc., Molycorp Inc., Centerra Gold Inc.,
In addition, the following directors René Médori stepped down from the Board as Finance Director on 24 April 2017
served during the year: Sir John Parker stepped down from the Board as Chairman on 31 October 2017
GOVERNANCE EXECUTIVE MANAGEMENT
EXECUTIVE MANAGEMENT
GROUP MANAGEMENT COMMITTEE MEMBERS
Mark Cutifani Bruce Cleaver (52)

Chief Executive CEO of De Beers Group
See page 65 for BSc, LLB, LLM
biographical details.
Member since
Member since January 2016
April 2013
SKILLS AND EXPERIENCE

Bruce has served as CEO of De Beers since July 2016. He has previously
Stephen Pearce served as Group Director, Strategy and Business Development at
Finance Director Anglo American, as well as Executive Head of Strategy and Corporate
Affairs for De Beers, having joined the Group in 2005. Before joining
See page 65 for De Beers, he was a partner at Webber Wentzel, the largest law firm in
biographical details. Africa, specialising in commercial matters.
Member since
January 2017
Tony O’Neill Seamus French (55)

Technical Director CEO of Bulk Commodities
and Other Minerals
See page 65 for
biographical details. B Eng (Chemical)
Member since Member since
September 2013 October 2009

Seamus has responsibility for the Group’s Coal, Iron Ore and Nickel
businesses. He is a non-executive director of Kumba Iron Ore. Seamus
joined the Group in 2007 and was CEO of Metallurgical Coal between 2009
and 2013, and CEO of Coal until 2015. Prior to his career at Anglo American,
Seamus joined WMC Resources in Australia in 1994 in a strategic planning
and business development role, and progressed to various operational
management roles, gaining extensive experience in the gold and nickel
businesses before being appointed executive general manager of the
Copper-Uranium Division. Seamus joined BHP Billiton as Global Vice
President, Business Excellence, following its takeover of WMC in 2005.
Didier Charreton (54) Chris Griffith (53)

Group Director – CEO of Anglo American
People and Organisation Platinum
MSc B Eng (Mining) Hons, Pr Eng
Member since Member since
December 2015 October 2009
SKILLS AND EXPERIENCE SKILLS AND EXPERIENCE

Didier joined Anglo American in December 2015. He has held a number Chris has served as CEO of Anglo American Platinum since September
of senior HR roles in his more than 25-year career. From 2007 until 2014, 2012. He was previously CEO of Kumba Iron Ore from 2008 to 2012 and
Didier was Chief Human Resources Officer for Baker Hughes, the prior to this, served as Anglo American Platinum’s head of operations for
US-based oilfield services company. Prior to 2007, he was HR director joint ventures. Chris has been with the Group for over 25 years, joining
at Coats plc in the UK, and before that held a number of HR roles at Anglo American Platinum, where he progressed from shift supervisor to
Schlumberger, based in the US, Argentina, Venezuela and France. one of the youngest general managers in the company at that time.

Norman Mbazima (59) Duncan Wanblad (51)
Deputy Chairman of CEO of Base Metals and
Anglo American South Africa Group Director – Strategy
and Business Development
FCCA, FZICA
BSc (Eng) Mech, GDE
Member since
(Eng Management)
October 2009
Member since
October 2009
Norman has served as Deputy Chairman of Anglo American South Africa Duncan has served in his current role since July 2016. He is a
since June 2015. From 2012 to 2016, he was CEO of Kumba Iron Ore. non-executive director of De Beers.
Norman joined Anglo American in 2001 at Konkola Copper Mines plc and
Between 2009 and 2013, Duncan held the position of Group Director,
was subsequently appointed global CFO of Coal. He became finance
Other Mining and Industrial. He was appointed joint acting CEO
director of Anglo American Platinum in 2006 and later stepped in as joint
of Anglo American Platinum in 2007, before taking over as CEO of
acting CEO. Norman was CEO of Scaw Metals from 2008 and later CEO
Anglo American’s Copper operations in 2008. Duncan began his
of Thermal Coal from 2009 to 2012.
career at Johannesburg Consolidated Investment Company Limited
Governance
in 1990.
Anik Michaud (50) Peter Whitcutt (52)

Group Director – Corporate CEO of Marketing
Relations
Bcom (Hons), CA (SA), MBA
LL.L (Law)
Member since
Member since October 2009
March 2015

Anik has served as Group Director – Corporate Relations since June Peter has served as CEO of Marketing since January 2016. He is a
2015. Her remit includes corporate communication, international and non-executive director of De Beers.
government relations, social performance and engagement, and the
Peter joined the Group in 1990 within the Corporate Finance division.
office of the chief executive. Anik joined Anglo American in 2008 as
He worked on the merger of Minorco with Anglo American Corporation
Group head of corporate communication. Prior to that, she was director
of South Africa, the listing of Anglo American plc in 1999 and the
of public affairs for Rio Tinto Alcan, following 10 years with the Alcan
subsequent unwinding of the cross-holding with De Beers. Peter was
group. Anik began her career as the political attaché to the Minister of
appointed Group head of finance in 2003, CFO of Base Metals in 2008
Finance for Quebec.
and, from 2013 to 2015, he served as Group Director – Strategy, Business
Development and Marketing.
René Médori served as a member of the GMC during the year, before
Richard Price (54) stepping down on 31 December 2017.
Group General Counsel
BA (Hons), LL.B
Member since
May 2017

Richard joined Anglo American as Group General Counsel in May 2017.
From 1996 to 2017, he held a number of senior roles at Shearman &
Sterling, the international law firm. In 1999, he transferred from Canada
to the Singapore office as head of its South East Asian and Indian capital
markets practice. Richard moved to London in 2003 as a senior corporate
partner, and acted for clients across the metals, mining, energy and
financial services sectors, amongst others. He served as co-head of the
firm’s global mining and metals practice and head of its EMEA capital
markets and EMEA corporate practices.

GOVERNANCE THE BOARD IN 2017
THE BOARD IN 2017
THE ROLE OF THE BOARD committees’ terms of reference, explain which matters
are delegated and which are retained for Board approval.
The Board provides leadership to the Group and is
These documents can be found on the Group’s website.
collectively responsible for promoting and safeguarding
the long-term success of the business. The Board is Executive structure
supported by a number of committees, to which it has The Board delegates executive responsibilities to the chief
delegated certain powers. The role of these committees is executive, who is advised and supported by the Group
summarised below, and their membership, responsibilities Management Committee (GMC). The GMC comprises the
and activities during the year are detailed on pages 78-114. chief executive, business unit CEOs, Group directors of
corporate functions and the Group general counsel. The
Some decisions are sufficiently material that they can only
names of the GMC members, their roles and biographical
be made by the Board as a whole. The schedule of ‘Matters
details appear on pages 68-69.
Reserved for the Anglo American plc Board’, and the
BOARD COMPOSITION
The Board currently comprises the chairman, chief governance; facilitating effective communication between
executive, two further executive directors and eight directors; effective dialogue with shareholders and other
independent non-executive directors. The broad range stakeholders; and acting as ambassador for the Group.
of skills and experience our Board members bring to Chief executive
Anglo American are set out on pages 65-67 and Mark Cutifani manages the Group. His main responsibilities
illustrated in the table on page 72. The Board is supported include: executive leadership; formulation and implementation
by the Group company secretary. of Group strategy as agreed by the Board; approval and
monitoring of business plans; organisational structure
There is a clear separation of responsibilities at the head and senior appointments; business development; and
of the Company between the running of the Board (one stakeholder relations.
of the chairman’s key responsibilities) and the executive
responsibility for the running of the Company’s business Senior independent director
(the responsibility of the chief executive). Sir Philip Hampton is available to shareholders on matters
where the usual channels of communication are deemed
The roles and of key responsibilities of the Board are inappropriate. He acts as an intermediary between the
described below. other directors and as a sounding-board for the chairman.
Chairman Independent non-executive directors (NEDs)
Stuart Chambers leads the Board, ensuring it works The role of the NEDs is to constructively challenge and
constructively as a team. His main responsibilities include: provide advice to executive management; effectively
chairing the Board and the Nomination Committee and setting contribute to the development of the Group’s strategy;
their agendas; Board composition and succession planning; scrutinise the performance of management in meeting
providing support and counsel to the chief executive and his agreed goals; and monitor the delivery of Group strategy.
team; promoting the highest standards of integrity and
Board
Audit Committee Nomination Committee Remuneration Committee Sustainability Committee

Oversight of financial Responsible for Board Determines the Oversees management
reporting, audit, internal composition, appointment remuneration of executive of sustainability issues,
control and risk of directors and senior directors, the chairman and including safety, health,
management. management and senior management and environment, social and
For more details succession planning. oversees remuneration government relations.
See page 80 For more details policy for all employees. For more details
See page 79 For more details See page 78
See page 88
Chief executive
Group Management Corporate Committee Operational Committee Investment Committee
Committee Reviews corporate and Responsible for driving Responsible for making
Principal executive committee. ethical policies and operational best practices recommendations to
Responsible for developing and processes, and financial across the Group and the the GMC and chief executive
executing strategy, setting performance and budgets setting of technical on capital investment
budgets, monitoring at business unit level. standards. proposals.
performance and managing
the Group’s portfolio.

BOARD DISCUSSIONS
formulated by management is debated, stress-tested,
The rolling agenda of matters discussed by the Board is
modified if necessary, and finally approved by the Board.
described and explained below. The Board is scheduled
At least once a year, each of the Group’s business unit
to meet at least six times a year, but meets more often
heads presents to the Board in some depth on key aspects
should circumstances warrant this. In addition, a full day
of their business.
strategy session is held, during which strategy
BOARD DISCUSSIONS
TOPIC AND LINK AREAS COVERED COMMENTS
TO PILLARS OF VALUE
Safety and Health Fatal incidents, The chief executive reports at each Board meeting on Group safety
total recordable case performance and this topic is always the first item on the agenda. The causes
frequency rate (TRCFR), of fatal incidents and those causing injury are examined in detail by the
health and medical Sustainability Committee and the findings discussed by the Board as a whole.
incidents Management performance in reducing such incidents and to improve
occupational health is reviewed.
Governance
Environment Environmental incidents, Material environmental incidents are reported on, together with efforts made
energy and climate to reduce energy and natural resource consumption, and to generally reduce
change, water availability the impact of the Group’s operations on the environment.
and rehabilitation
Socio-political Social incidents Community comments about environmental matters, and any health and
and performance, safety issues are reported. Investor and media relations updates are given.
government, media, Feedback from external stakeholders such as customers, suppliers, global
investor and stakeholder influencers and governments on their expectations of the Group are
relations presented and discussed.
People Employee feedback, The results of employee engagement surveys on how employees feel the
organisational restructure, Group is doing and what could be done better are reviewed. Progress on
key appointments and organisational restructuring and changes in headcount are monitored. Targets
resignations, business for areas such as diversity are agreed and reported on. The Board is updated
integrity and Code of on compliance with our Code of Conduct and the business integrity policy.
Conduct
Operations Operational performance A report on each business unit is received and each business unit head
by each business unit and presents in detail on its performance, operations, strategy, safety and
progress of key projects sustainable development, technological innovation and risks once a year.
Financial Key financial measures, Progress against the annual budget and three-year plan is monitored and
liquidity and balance discussed. Liquidity, balance sheet strength and debt are reviewed and,

sheet strength, cost if any corrective actions are necessary, these are agreed.
improvements
Economic outlook Macro-economic The Board receives briefings from internal teams and external advisers on
and commodity environment and trends in relevant areas and likely scenarios for global economic growth.
prices commodity price Commodity prices, and the effect of these on the Group, are noted and taken
outlook into account for strategy and planning purposes.

Strategy Disposals, three-year As well as having a dedicated strategy meeting each year, the Board reviews
plan, progress on progress against the Group’s agreed strategy at each meeting and considers
critical tasks if any changes are needed. There are annual presentations on exploration
activities.
Board governance Reports from Each of the committee chairmen report on recent meetings and on any
committees, legislative developments which need the attention of the Board as a whole. Reports are
and regulatory received on the Group’s compliance with relevant legislation and regulation,
compliance and any actions needed to respond to recent developments. The Board
receives biannual updates on material litigation across the Group. Matters
which generally assist the effective functioning of the Board and Group as
a whole are considered and actions agreed.
For more information on our strategy and how we measure our performance through our pillars of value
See pages 10 and 34-35

BOARD INFORMATION AND SUPPORT Highlights

••On joining Anglo American in January 2017, Stephen
All directors have full and timely access to the information
Pearce undertook an intensive orientation programme
required to discharge their responsibilities fully and
designed to ensure familiarisation with the Group’s
effectively. They have access to the advice and services
businesses, people, and governance and control
of the Group company secretary, other members of the
processes ahead of his appointment as finance director
Group’s management and staff, and external advisers.
in April.
Directors may take independent professional advice in the
furtherance of their duties, at the Company’s expense. ••On joining the Board as a non-executive director in April
2017, Nolitha Fakude received a briefing on the obligations
Where a director is unable to attend a Board or committee
and responsibilities of directors of UK listed companies,
meeting, he or she is provided with all relevant papers and
to complement her considerable knowledge and
information relating to that meeting and encouraged to
experience of serving on the boards of South African
discuss issues arising with the respective chairman and
companies. In October, Nolitha accompanied Stuart
other Board and committee members.
Chambers to Brazil to visit the Minas-Rio (Iron Ore) and
Barro Alto (Nickel) operations.
BOARD INDUCTION AND DEVELOPMENT
••On joining the Board as a non-executive director in July
Following appointment and as required, directors receive 2017, Ian Ashby undertook internal ‘deep dive’ briefings
training appropriate to their level of experience and on the Anglo American Operating Model and the Group’s
knowledge. This includes the provision of a tailored Quellaveco copper project.
induction programme and individual briefings with GMC
••Ahead of his appointment as chairman, Stuart Chambers
members and their teams so as to provide newly appointed
undertook an extensive induction programme – described
directors with information about the Group’s businesses
in detail on page 64 of the chairman’s introduction to
and other relevant information to assist them in effectively
governance.
performing their duties. In addition to scheduled Board
operational site visits, non-executive directors are ••As part of their onboarding process, Nolitha Fakude,
encouraged to spend time at the Group’s operations to Ian Ashby and Stuart Chambers attended meetings of
meet management and staff. Further information about the Audit and Sustainability committees at the invitation
the Board’s visits to operations in 2017 can be found on of the respective committee chair prior to their formal
pages 76-77. appointment date.
Board experience and diversity

Diversity Professional experience
Broad-
based
Large Construction Safety, international Previous Previous Economics Experience
project in mining/ health, business NED chief and global as an
Directors Nationality Female Mining Engineering management oil and gas Finance environment experience experience executive economy investor
Stuart Chambers UK • • • • • • •
Mark Cutifani* Australia • • • • • • • (1)
•
Stephen Pearce* Australia • • • • • • • (2)
• •
Tony O’Neill* Australia • • • • •
Ian Ashby Australia • • • • • • •
Nolitha Fakude South Africa • • • • • •
Byron Grote USA/UK • • • (3)
• • •
Sir Philip Hampton UK • • (3)
• • • •
Mphu Ramatlapeng Lesotho • • • • (4)
Jim Rutherford UK • • • • •
Anne Stevens USA • • • • • • • (5)
•
Jack Thompson USA(6) • • • • • • • •
Independent director of Total S.A.
(1)
Government minister
(4)
Former non-executive director of Cedar Woods Properties Limited

(2)
COO, South America at Ford; chief executive of GKN plc
(5)
Audit Committee members determined to have ‘recent and relevant’ financial experience in
(3)
Born in Cuba, naturalised US citizen
(6)
accordance with UK Corporate Governance Code Provision C.3.1 * Also GMC members

BOARD AND COMMITTEE MEETINGS 2017 – FREQUENCY AND ATTENDANCE OF MEMBERS
The table below shows the attendance of directors at meetings of the Board and committees during the year.
Attendance is expressed as the number of meetings attended out of the number eligible to be attended.
Independent Board Board Strategy Audit Nomination Remuneration Sustainability
Sir John Parker(1) n/a 5/5 1/1 – 5/5 – 2/3

Stuart Chambers(2) n/a 3/3 – – – – 1/1
Mark Cutifani No 6/6 1/1 – – – 4/4
René Médori(3) No 1/1 – – – – –
Stephen Pearce(4) No 5/5 1/1 – – – –
Tony O’Neill No 6/6 1/1 – – – 4/4
Ian Ashby(5) Yes 4/4 – – – – 2/2
Nolitha Fakude(6) Yes 5/5 1/1 2/2 – – 3/3
Byron Grote Yes 6/6 1/1 4/4 5/5 3/3 –
Sir Philip Hampton Yes 6/6 1/1 4/4 5/5 3/3 –
Mphu Ramatlapeng Yes 6/6 1/1 – – – 4/4
Jim Rutherford(7) Yes 6/6 1/1 4/4 – 1/1 4/4
Anne Stevens Yes 6/6 1/1 4/4 5/5 3/3 –
Governance
Jack Thompson(8) Yes 6/6 1/1 – – 3/3 4/4
(1)
Resigned 31 October 2017. Sir John was unable to attend the February 2017 (5)
Appointed 25 July 2017.
Sustainability Committee meeting due to a diary conflict. (6)
Appointed 24 April 2017.
(2)
Appointed as a non-executive director and chairman designate, and a member (7)
Appointed to the Remuneration Committee on 25 July 2017.
of the Nomination Committee, on 1 September 2017. Appointed as chairman of (8)
Appointed to the Nomination Committee on 25 July 2017.
the Board, chairman of the Nomination Committee and a member of the (9)
As part of their onboarding process, new Board and committee members attended
Sustainability Committee on 1 November 2017. meetings at the invitation of the respective committee chair prior to their formal
(3)
Resigned 24 April 2017. appointment date. Attendance is not reflected in the table above.
(4)
Appointed 24 April 2017.
PROCESS USED IN RELATION TO In each case, prior to the search commencing, the
BOARD APPOINTMENTS Nomination Committee agreed the skills and experience
they thought were necessary for the roles and provided
The Board is committed to ensuring that it has the right
these to the consultancies with the request to include
balance of skills, experience and diversity, taking into
female candidates and people of colour. A list of potential
account the targets of the Davies and Parker Reports.
candidates was then identified by the relevant consultancy
Currently, the Board comprises 12 directors, of whom
and discussed with the committee members (excluding
25% are female and two of whom are people of colour.
Sir John Parker in the case of the recruitment for his
In terms of nationality, nine members of the Board have
successor) to agree a shorter list to be interviewed. The
a nationality other than British, with two of them being
non-executive directors were invited to apply for the position
from southern Africa.
of chairman if they wished to be considered for the role. In
During 2017, the Nomination Committee led search each case, the initial list of potential candidates included
processes to recruit two new non-executive directors and a both female and male participants and people of colour.
successor for Sir John Parker as chairman of the Company. Shortlisted candidates were interviewed by all members of
The processes were led by Spencer Stuart (South Africa) the committee (again with the exception of Sir John Parker
for the recruitment of Nolitha Fakude, by Heidrick & in the case of the recruitment for his successor) and, where
Struggles for the recruitment of Ian Ashby and by Zygos practical, other directors. The final two candidates for the
Partnership for the recruitment of Stuart Chambers. These role of chairman were interviewed by all the directors.
consultancies were chosen as they had previously worked References were sought for each preferred candidate prior
for the Group in recruiting for senior appointments and to an offer being made to them.
accordingly had a good understanding of the Board’s
requirements, given the markets in which the most suitable
candidates were likely to be found. They are also accredited
under The Enhanced Code of Conduct for Executive
Search firms which acknowledges those with a strong
track record in and promotion of gender diversity in
FTSE 350 companies.

BOARD, COMMITTEE AND INDIVIDUAL Committee evaluations

DIRECTORS’ EVALUATION The committee evaluations looked at ways in which the
committees could improve their overall efficiency, their
Each year, the Board evaluates its own performance, that of
performance in the current year and the areas they needed
its committees and of the individual directors. In 2016 and
to address in the coming year. All the committees were
2017, the directors completed online, questionnaire-based,
believed to be performing satisfactorily and were
internal evaluations. To allow the Board and its committees
appropriately constituted.
to judge progress over the two years, the evaluations
explored similar areas on each occasion. The results were Audit Committee
collated, summarised and considered by the Nomination The results of the 2016 review suggested a greater focus
Committee before being submitted to the relevant on actions mitigating risk and the effectiveness of controls
committee and the Board itself. and remediating actions, and an understanding of critical
operating issues and risks, and their potential financial
Action plans were developed based on the results and
outcomes. As the Group’s priorities changed, and the
progress against these measured at various points
business moved into a phase where capital allocation was
throughout the year. The results of the findings and the
once again desirable, the work of the committee changed
actions taken in response to the 2016 evaluation are
to reflect this. The 2017 evaluation results suggested the
summarised below. Action plans based on the 2017
committee should build on these changes and continue the
evaluations were approved in February 2018, and will be
work started in the year.
progressed this year. The questionnaires completed by
the individual directors were used as part of their Nomination Committee
performance evaluation by the chairman, with the From late 2016 until the middle of 2017 the committee
chairman’s performance evaluation being led by the was focused on Board succession planning and recruitment.
senior independent director. While these processes were believed to have gone well,
the 2016 review identified the following goals:
In 2018, an external evaluation exercise will be undertaken
using a consultancy with no other connection to the ••better communication of succession planning work for
Company, and this will be reported on in the 2018 key executives, including the pipeline target for female
Annual Report. members of the GMC
Board evaluation ••improving the ethnic diversity of the Board and in senior
Areas of focus for the evaluations in 2016 and 2017 included management
strategic oversight, the support provided to the Board and
••making the plans in these areas broader and more
the management of meetings, and priorities for the coming
forward-looking.
year. From the 2016 exercise, the top priorities for the Board
in 2017 were identified by the respondents as: In addition, the 2017 evaluation identified the development
of internal candidates for the executive board positions.
••making Board member appointments to replace the
skills and experience lost towards the end of 2016 Remuneration Committee
The 2016 review highlighted the need to address the
••focusing on strategy and growth options
expectations of stakeholders in drafting the current
••succession planning remuneration policy, and to have a good understanding of
the trends and initiatives in other FTSE 100 companies in
••progressing the implementation of new technology.
relation to remuneration when doing this. The 2017 review
Changes were made to address these priorities, prioritised the need to continue this work to ensure
including to the Board agendas and to the information remuneration targets are aligned with strategic goals and
the Board receives. Group performance, and to evaluate the range of emerging
remuneration ideas.
The 2017 evaluation identified the following priorities
for 2018:
••driving demonstrable and sustainable safety and
operating improvements
••execution against the asset-led strategy
••identifying additional growth opportunities while targeting
credit strength, debt reduction and refinancing
••ensuring the Group has a suitably diverse workforce with
the capability and skills to drive continuous improvement
••deploying winning technologies (especially in the areas of
water reduction and safety improvements).
An action plan is being developed to progress these areas
in 2018.

Sustainability Committee
The oversight of management of people issues was a INVESTOR RELATIONS
new responsibility for the committee in 2016, and it was
agreed that more effort was needed in 2017 to improve The Company has an active engagement programme
performance in this area. Suggestions from the 2017 with its key financial audiences, including institutional
evaluation for improving the performance of the shareholders and buy- and sell-side analysts, as well
committee included: as potential shareholders.
••placing greater emphasis on forward-looking measures The Group’s investor relations department manages
and initiatives that will improve performance around the interactions with these audiences and regular
critical controls to avoid fatalities and injuries presentations take place at the time of the interim
and final results, as well as during the rest of the
••a more rigorous follow-up process on major incidents year. An active programme of communication with
••ensuring a tighter link to risk identification and mitigation potential shareholders is also maintained. Any
significant concerns raised by a shareholder in
••developing reporting to include a fuller, more robust relation to the Company and its affairs are
analysis of country risks. There was also recognition of communicated to the Board.
the need to continue focus on the major risks facing the
Group, such as those around tailings storage facilities. The Board receives a briefing at each meeting from
the investor relations department and analysts’
These suggestions informed the committee’s planning reports are circulated to the directors when available.
and discussions in the year. Feedback from meetings held between executive
The 2017 review acknowledged that avoiding fatalities management or the investor relations department,
and institutional shareholders, is also communicated
Governance
remains the key priority, and that:
to the Board.
••more work is needed to address recurring incidents
leading to injury or death During the year there were regular presentations to,
and meetings with, institutional investors in the UK,
••more information is sought on people issues and South Africa, continental Europe and North America
talent management to communicate the strategy and performance of
••there is a need to ensure there is the right balance Anglo American. Executive directors and key
of resource management across all aspects of the executives, including business unit heads, host such
committee’s responsibilities. presentations, which include seminars for investors
and analysts and one-to-one meetings. Throughout
the year, executive management also present at
industry conferences that are organised mainly by
investment banks for their institutional investor base.
Private shareholders are encouraged to attend the
Company’s general meetings or to submit questions
to the Company via the Group’s website. The website
also provides the latest news and historical financial
information, details about forthcoming events for
shareholders and analysts, and other information
regarding Anglo American.
Voting levels at the AGM in 2017 were around 67%,
with no more than 1.7% of that total being votes
withheld. This is broadly in line with 2016 levels. All
resolutions submitted to the meeting in 2017 were
passed with more than 83% of the shareholders
voting in favour, and only two resolutions (the
re-election of the auditors and the authority for
directors to allot shares) received fewer than 90%
of the votes cast in favour.

BOARD VISITS TO GROUP NON-EXECUTIVE DIRECTORS’ VISITS

OPERATIONS IN 2017 In July 2017, De Beers’ senior management hosted a visit
by Nolitha Fakude and Ian Ashby to De Beers Technologies
Undertaking regular site visits allows directors to UK, the world-leading diamond research and technological
gain a better understanding of the Group’s operations development centre which specialises in diamond sorting
and affords Board members the opportunity to meet and valuing technology, and synthetics detection.
and interact with employees. During 2017, the Board
met on two occasions outside the UK at locations in In September 2017, non-executive directors, including
which the Group operates. In September, the Board members of the Sustainability Committee, visited Platinum’s
met in South Africa to coincide with Anglo American’s Precious Metals Refinery in South Africa accompanied by
centenary celebrations; and in October the Board met Chris Griffith, CEO of Platinum.
in Santiago, as described below. In 2017, non-executive In October 2017, Nolitha Fakude accompanied Stuart
directors visited Group operations in Brazil, Chile, Chambers to Brazil to visit the Minas-Rio (Iron Ore) and
Peru, South Africa and the UK. Barro Alto (Nickel) operations.
BOARD VISIT TO SOUTH AMERICA

“Site visits are an integral part
In October 2017, the Anglo American plc Board met in
Santiago, Chile. During the course of the visit, the Board
of performing your duties as a
received detailed presentations from Copper and Base director. They are invaluable in
Metals management on their strategy and operations,
asset base and outlook. Directors undertook an operational enabling board members to develop
visit to the Los Bronces copper mine, located around 3,500
metres above sea level. The Board joined Copper as they
a greater understanding of the
celebrated Anglo American’s centenary celebrations with issues affecting the business. In
external stakeholders, including Chile’s Minister of Mining.
turn, that helps inform discussion
A number of directors also visited Anglo American’s
Quellaveco copper project in southern Peru, accompanied around the board table.”
by Duncan Wanblad, CEO of Base Metals. During the course Jim Rutherford, Non-executive Director
of the visit, directors participated in on-site activities with
employees and contractors organised for the Group’s
annual Global Safety Day campaign. Directors received
detailed briefings on Quellaveco, and toured the project’s
main sites, including the open pit, the Asana river diversion
works and the concentrator plant site. In addition, directors
visited agricultural and female empowerment social
development and community projects in the Moquegua
Region which are supported by Anglo American in Peru.
In Lima, the chairman, finance director and CEO of Base
Metals met with national and regional leaders.
For more information on Quellaveco
See page 19
Top: Copper’s CEO

Hennie Faul (left) and
NED Jack Thompson
at Los Bronces mine.
Bottom left: NED Anne
Stevens (centre) with
Los Bronces’ head of
shift mine operations
Pablo Gomez (left)
and vice president –
operations Patricio
Chacana (right) at
the mine.
Bottom right: Hennie
Faul (left) and Base
Metals’ CEO Duncan
Wanblad with the
Board at their meeting
in Santiago.

Left: Directors visiting
the Quellaveco copper
project in Peru.
Right: (left to right)
Quellaveco project
vice president
Domenico Pelliccia,
Duncan Wanblad
and Anglo American
chairman Stuart
Chambers listen to
a presentation for
employees and
contractors at
Quellaveco on
Global Safety Day.
Governance
Above: Directors and
executives participating
in Global Safety Day
at Quellaveco.
Left and right: Directors
and executives at social
projects around the town
of Moquegua, which lies
close to the Quellaveco
project.
Bottom right: (left to
right) Angela Marca
Flores, Mary Atencio
Colque and Irene
Quispe, who have
received assistance
from Mujures
Emprendedoras, a
project supported by
Anglo American, helping
women set up their
own businesses.
Bottom left: In
Moquegua, NED
Mphu Ramatlapeng
addresses directors
and Quellaveco
management at
Casa Informativa,
an information
centre established
by Anglo American
where members of
the public can obtain
information about the
Quellaveco project.

GOVERNANCE SUSTAINABILITY COMMITTEE
SUSTAINABILITY COMMITTEE
COMMITTEE DISCUSSIONS IN 2017

Jack Thompson
Chairman, Sustainability Committee The committee met four times in 2017. At each meeting, the
committee reviews a detailed quarterly report covering the
Group’s performance across a range of sustainability areas,
including: safety, health, political and regulatory risk, and
environmental and social performance.
Significant social, safety, health and environmental incidents
are reviewed at each meeting, as are the results from
operational risk reviews.
COMMITTEE MEMBERS
In 2017, nine members of the workforce lost their lives at
(See pages 65-67 for biographies and Board experience details)
Group operations. Preliminary observations from each of
•• Jack Thompson – Chairman these fatal incidents were reported to the next committee
•• Ian Ashby (appointed 25 July 2017) meeting following their occurrence, noting the factors
•• Stuart Chambers (appointed 1 November 2017) surrounding the incidents, mitigation steps being taken and
•• Mark Cutifani the process for formal investigation. Following completion
•• Nolitha Fakude (appointed 25 April 2017) of independent investigations, findings are presented to the
•• Tony O’Neill committee.
•• Sir John Parker (resigned 31 October 2017)
In addition to the committee’s standing agenda items, the
•• Mphu Ramatlapeng
following matters were discussed during 2017:
•• Jim Rutherford
••development of Anglo American’s new Sustainability
Business unit heads, Group directors of people and Strategy
organisation, and corporate relations, the Group general
counsel and the Group head of safety and sustainable ••business unit and business function reports on safety and
development also participate in meetings of the committee. sustainability performance, including: Platinum, Copper,
De Beers, and Group Discovery and Geosciences
ROLE AND RESPONSIBILITIES ••workforce engagement and development
The committee oversees, on behalf of the Board, material ••engagement with faith-based organisations
management policies, processes, and strategies designed ••tailings storage facility risk management
to manage safety, health, environment, socio-political and
people risks, to achieve compliance with sustainable ••air quality management at Kumba Iron Ore’s Sishen mine
development responsibilities and commitments and strive ••mercury monitoring at De Beers’ Victor mine
for an industry leadership position on sustainability.
••safety intervention plan at Coal South Africa operations
The committee is responsible for reviewing the causes of
any fatal or significant sustainability incidents and ensuring ••the new integrated Anglo American Safety, Health and
learnings are shared across the Group. Environment Way
The committee’s terms of reference are available to ••2016 Social Way assessment results – improvements in
view online. performance on managing the social impacts of mining
For more information, visit ••sustainability benchmarking – comparing performance
www.angloamerican.com/aboutus/governance
and global trends across the industry
••climate change: progress on actions to meet
disclosure commitments under the ‘Aiming for A’
During 2017, the committee held one of its
shareholder resolution
four meetings in South Africa, and committee
members visited Platinum’s Precious Metals ••water management
Refinery, the site of a fatal incident during the
••mine closure liabilities
year. In addition, committee members visited
two social projects supported by Anglo American ••key legislative developments in the sustainability area
in Peru and participated in the Group’s annual
••Sustainability Committee annual evaluation and
Global Safety Day campaign at the Quellaveco
action plan.
copper project in southern Peru.

GOVERNANCE NOMINATION COMMITTEE
NOMINATION COMMITTEE
COMMITTEE DISCUSSIONS IN 2017

Stuart Chambers
Chairman, Nomination Committee The committee met five times during 2017. Discussions
at the meetings covered the responsibilities outlined
above with a particular focus on Board recruitment and
committee membership.
The process used for Board recruitment is described on
page 73 of this Report and the results of the evaluation of
the committee are on page 74.
COMMITTEE MEMBERS The committee also considered the composition of the
Board and its committees, the leadership needs of the
(See pages 65-67 for biographies and Board experience details)
organisation, and recommended that the Board support
•• Sir John Parker – Chairman (resigned 31 October 2017) the election or re-election of each of the directors standing
•• Stuart Chambers – Chairman (appointed 1 September 2017, at the AGM in 2017. The length of tenure of non-executive
Chairman from 1 November 2017) directors was taken into account when considering
•• Byron Grote supporting their re-election, to ensure they remain
•• Sir Philip Hampton independent and recognising the need to progressively
•• Anne Stevens refresh the Board. Changes to committee membership
were recommended to the Board and the appropriate
Governance
•• Jack Thompson (appointed 25 July 2017)
committee following the appointment of Nolitha Fakude
and Ian Ashby as non-executive directors.
ROLE AND RESPONSIBILITIES
••Agreeing a skills and experience matrix for all directors
(with the approval of the Board) to identify and address
any skills gaps when recruiting new directors.
••Making recommendations as to the composition of the
Board and its committees and the balance between the
executive directors and non-executive directors in order
to maintain a diverse Board with the appropriate mix of
skills, experience, independence and knowledge.
••With the assistance of external search consultants,
identifying and reviewing, in detail, potential candidates
available in the market and agreeing a ‘longlist’ of
candidates for each directorship. Following further
discussion and research, deciding upon a shortlist of
candidates for interview. Committee members interview
the shortlisted candidates and make a recommendation
to the Board.
••Ensuring that the Human Resources function of the Group
regularly reviews and updates the succession plans for the
directors and senior managers. These are presented to the
Board by the chief executive (in the absence of other
executive directors) and discussed.
The committee’s terms of reference are available to
view online.
For more information, visit

GOVERNANCE AUDIT COMMITTEE
AUDIT COMMITTEE
FAIR, BALANCED AND UNDERSTANDABLE

Byron Grote
Chairman, Audit Committee A key requirement of our financial statements is for the
report to be fair, balanced and understandable. The Audit
Committee and the Board are satisfied that the Annual
Report and Accounts meet this requirement, as appropriate
weight has been given to both positive and negative
developments in the year.
In justifying this statement, the Audit Committee has
considered the robust process which operates in creating
COMMITTEE MEMBERS the Annual Report and Accounts, including:
(See pages 65-67 for biographies and Board experience details) ••clear guidance and instruction is provided to all
•• Byron Grote – Chairman contributors
•• Nolitha Fakude (appointed 25 April 2017) ••revisions to regulatory requirements are provided to
•• Sir Philip Hampton contributors and monitored on an ongoing basis
•• Jim Rutherford
•• Anne Stevens ••reviewing the use and disclosure of Alternative
Performance Measures, taking into account feedback
from the Financial Reporting Council (FRC) following the
ROLE AND RESPONSIBILITIES FRC’s review of the Group’s disclosures for the year
••Monitoring the integrity of the annual and interim ended 2017
financial statements. ••early-warning meetings are conducted between business
••Making recommendations to the Board concerning the unit management and the auditor in advance of the
adoption of the annual and interim financial statements. year-end reporting process
••Overseeing the Group’s relations with the external auditor. ••a thorough process of review, evaluation and verification
of the inputs from business units is undertaken to ensure
••Reviewing and monitoring the effectiveness of the Group’s accuracy and consistency
risk management and internal control mechanisms.
••external advisers provide advice to management and the
••Approving the terms of reference of the internal audit Audit Committee on best practice with regard to creation
function and assessing its effectiveness. of the Annual Report and Accounts
••Approving the internal audit plan and reviewing regular ••a meeting of the Audit Committee was held in February
reports from the head of internal audit on effectiveness 2018 to review and approve the draft 2017 Annual Report
of the internal control system. and Accounts in advance of the final sign-off by the
••Receiving reports from management on the principal risks Board. This review included the critical accounting
of the Group. Details of the principal risks are contained on judgements explained in the notes to the consolidated
pages 42-45. Overseeing completion of the Viability financial statements
Statement. ••the Audit Committee considered the conclusions of the
••Overseeing implementation of the Group’s Code of external auditor over the key audit risks that contributed
Conduct. to their audit opinion, specifically impairments, taxation,
special items and remeasurements, and corporate
The committee’s terms of reference are available to asset transactions.
view online.
For more information, visit
www.angloamerican.com/aboutus/governance COMMITTEE DISCUSSIONS IN 2017
Throughout the course of 2017, the Audit Committee paid
particular attention to the valuation of assets, tax matters,
the Group’s liquidity position and reinstatement of the
dividend. The committee oversaw the introduction of the
new Code of Conduct and reviewed the system of internal
control and risk management.
An evaluation of the committee was undertaken, the results
of which are described on page 74.
The Audit Committee held four meetings in 2017, covering
the key topics set out on the following pages.

SIGNIFICANT ISSUES CONSIDERED BY THE AUDIT COMMITTEE
IN RELATION TO THE GROUP’S FINANCIAL STATEMENTS RESPONSE OF THE AUDIT COMMITTEE
Impairment and impairment reversals of assets The committee exercises oversight over the impairment review process,
The value of mining operations is sensitive to a range of characteristics including the identification of impairment and impairment reversal
unique to each asset. Management is required to apply judgement in the indicators, the review of changes in the valuation of cash generating units
estimation of Ore Reserves, and price and production forecasts which and associated sensitivity analysis. During 2017, the most significant
drive cash flow projections. assets considered were the following:
Sishen
The Sishen mine was impaired by $0.5 billion in 2015, following a
reduction in the Group’s long-term iron ore price forecast. The committee
considered whether recent improvements in the near-term pricing
outlook and operating performance at the mine justified an impairment
reversal, taking into account the sensitivity analysis presented by
management. While the valuation is sensitive to changes in key
assumptions, significant downside changes to the base case assumptions
are required to remove all headroom. The committee therefore
concluded that a full reversal of the impairment recorded in 2015
should be recognised at the December 2017 year end.
Governance
Minas-Rio
The valuation of Minas-Rio continues to be in line with the carrying value,
but is subject to uncertainty in relation to licensing as well as being highly
sensitive to changes in pricing assumptions. The committee considered
the status of the licensing process for the operation and the scenarios
presented by management. It was concluded that an impairment should
not be recorded at Minas-Rio as the valuation was at break-even
following receipt of the Step 3 installation licence in January 2018.
El Soldado
El Soldado was fully impaired in 2016, following suspension of
operations due to licensing uncertainty. Following receipt of the mining
permit, operations resumed in April 2017, resulting in an impairment
reversal of $194 million in the Group’s 2017 interim results.
Moranbah-Grosvenor
Moranbah-Grosvenor was impaired by $1.25 billion in 2016, as a result
of a reduction in the Group’s expected long-term metallurgical coal
prices. The Grosvenor operation encountered mixed operational results
during 2017. The committee concluded that, while recent performance
was promising, a sustained period of strong performance would be
necessary before an impairment reversal would be considered.
OTHER ISSUES CONSIDERED BY THE AUDIT COMMITTEE

Reinstatement of the dividend The committee reviewed the proposal for timing and method of
Reviewing management’s recommendation to the Board that the reinstatement of the dividend, in particular the payout ratio driven
dividend be reinstated at the 2017 interim results announcement, based dividend policy based on 40% of underlying earnings.
on a payout ratio driven dividend policy.
Following discussion, the committee endorsed the proposal to adopt
the new policy and to pay an interim dividend for 2017, for final approval
by the Board.
Legal matters At 30 June 2017, a charge of $101 million was recognised in respect of
A provision is recognised where, based on the Group’s legal views and, the consolidated class action certification application filed in South Africa
in some cases, independent advice, it is considered probable that an on behalf of former mineworkers (and dependants of deceased
outflow of resources will be required to settle a present obligation that mineworkers) who allegedly contracted silicosis or tuberculosis as a
can be measured reliably. This requires the exercise of judgement. result of working for various gold mining companies, including some in
which Anglo American South Africa (AASA) was a shareholder and to
The committee was updated by the Group’s general counsel on the status
which AASA provided services.
of legal matters over the course of the year.
Whilst a final settlement had not yet been reached between the
parties and the outcome of discussions remained uncertain, the
committee approved the recognition of a provision based on
the status of negotiations.

OTHER ISSUES CONSIDERED BY THE AUDIT COMMITTEE

Special items and remeasurements The committee reviewed each of the items classified as special items or
The Group’s criteria for recognising a special item or remeasurement remeasurements in the financial statements, and the related disclosures,
involves the application of judgement in determining whether an to ensure that the separate disclosure of these items was appropriate.
item, due to its size or nature, should be separately disclosed in the
income statement.
New accounting standards The committee reviewed management’s impact assessment of the
The impact of new accounting standards, and any elections made in their adoption of IFRS 9 Financial Instruments and IFRS 15 Revenue from
application, involves judgement to ensure their adoption is managed contracts with customers, both of which become effective in 2018
appropriately. but are not expected to have a material impact on the Group.
The committee also received an update on progress in the
implementation of IFRS 16 Leases which will become effective
in 2019.
Going concern basis of accounting in preparing the The committee assessed the forecast levels of net debt, headroom on
financial statements existing borrowing facilities and compliance with debt covenants. This
The ability of the Group to continue as a going concern depends upon analysis covered a range of downside sensitivities, including the impact
continued access to sufficient financing facilities. Judgement is required of lower commodity prices and higher costs.
in the estimation of future cash flows and compliance with debt covenants
in future years.
Retirement benefits The committee reviewed the changes in assumptions behind the
The ability of the Group to recover surpluses within pension schemes calculations of the asset and liability positions of the Group’s pension and
involves judgement. The estimation of retirement benefits requires medical plans. In addition, the committee reviewed the adequacy of the
judgement over the estimation of scheme assets and liabilities. Areas of level of funding provided to the plans and the overall expense recognised
judgement include assumptions for discount and inflation rates, returns for the year.
on assets and life expectancy. Changes in the assumptions used would
The committee assessed the appropriateness of the Group’s overall
affect the amounts recognised in the financial statements.
risk management approach to retirement benefits, and the Group’s ability
to recover surpluses within schemes in the UK and South Africa.
Provision for restoration, rehabilitation and The committee oversees the periodic update to estimates of
environmental costs environmental and decommissioning liabilities which are based on the
The estimation of environmental restoration and decommissioning work of external consultants and internal experts. It reviews the changes
liabilities is inherently uncertain given the long time periods over which in assumptions and drivers of movements in the amounts provided on the
these expenditures will be incurred, and the potential for changes in balance sheet.
regulatory frameworks and industry practices over time.
Taxation The Group head of tax provided the committee with an update on
The Group’s tax affairs are governed by complex domestic tax tax matters, including the status of tax audits, the current global tax
legislations, international tax treaties between countries and the environment and the ongoing entity simplification programme.
interpretation of both by tax authorities and courts. Given the many
The committee discussed the recoverability of the Group’s deferred
uncertainties that could arise from these factors, judgement is often
tax assets, and uncertain tax provisions.
required in determining the tax that is due.
The committee were presented with the Tax Strategy for approval prior
to publication on the Anglo American website as required under Schedule
19 of the Finance Act 2016.

OTHER ISSUES CONSIDERED BY THE AUDIT COMMITTEE RESPONSE OF THE AUDIT COMMITTEE
Viability Statement The committee reviewed the time period over which the assessment
The Viability Statement, and the underlying process to analyse various is made, along with the scenarios that are analysed, the potential
scenarios that support the development of the Viability Statement, are financial consequences and assumptions made in the preparation of
found on pages 40-45. the statement.
The committee concluded that the scenarios analysed were sufficiently
severe but plausible and the time period of the Viability Statement was
appropriate given the alignment with the budgeting and strategy process.
Mineral Resources and Ore Reserves statements The committee reviewed the significant year-on-year changes, satisfying
The year-on-year changes to Mineral Resources and Ore Reserves for itself that appropriate explanations existed. The committee also
operations and projects across the Group. discussed issues and improvements in the process to measure Mineral
Resources and Ore Reserves including adoption of a new software
platform and updated guidelines.
Internal audit work The committee received reports on the results of internal audit work,
Governance
Reviewing the results of internal audit work and the 2018 plan. satisfying itself that the 2017 plan was on track, and discussed areas
where control improvement opportunities were identified. The committee
reviewed the progress in completion of agreed management actions.
The committee reviewed the proposed 2018 internal audit plan,
assessing whether the plan addressed the key areas of risk for the
business units and Group. The committee approved the plan having
discussed the scope of work and its relationship to the Group’s risks.
Risk management The committee assessed the Group’s risk profile, in particular the
The Group’s risk profile and the process by which risks are identified principal risks (see pages 42-45). The committee discussed the key risks,
and assessed. the mitigation plans in place and the appropriate executive management
responsibilities. The committee also considered the process by which the
risk profile is generated, the changes in risk definitions and how the risks
aligned with the Group’s risk appetite. Following discussion and
challenge, the risk profile was approved.
Code of Conduct The committee reviewed the implementation plan for the new Code of
The implementation of the Code of Conduct and specific actions to Conduct that was rolled out across the Group in 2017. The committee
mitigate risk of bribery and corruption. received updates on the progress with implementation and sought
assurance that implementation would be continued beyond the initial
communication to employees. The committee reviewed and approved
the work to embed the Code of Conduct in recruitment, induction,
performance management and employee development programmes.
The committee also assessed the work being conducted to mitigate the
risk of bribery and corruption. Specifically, the committee reviewed work to
assess risk from use of intermediaries, approving plans to strengthen risk
mitigation in this area. The committee approved work plans associated
with the Group’s anti-bribery and corruption programme for 2018.
Various risk matters The committee reviewed work to mitigate cyber risk, data protection
The committee oversees the implementation of work to mitigate risk, plus marketing and trading risks, during the course of 2017. The
a variety of key risks. committee evaluated the work being performed, progress made
and provided challenge to satisfy itself that these risks were being
adequately managed.
External audit The committee received the results of the interim work of the external
Reviewing the results of extended audit work and the 2017 year-end plan. auditor in the July meeting and approved the preliminary planning
report for the 2017 year-end audit, having reviewed the audit approach,
materiality levels and audit risks. The final audit plan and fee for the
audit were approved at the December meeting.
Throughout the year, the committee sought input from the auditor on
all significant accounting matters and the judgements made by
management. In February 2018, the committee reviewed the output
of the external audit work that contributed to the auditor’s opinion.

AUDIT COMMITTEE REPORT
ENSURING INDEPENDENCE OTHER SAFEGUARDS

OF THE EXTERNAL AUDITOR
••The external auditor is required to adhere to a rotation
Anglo American’s policy on auditors’ independence is policy based on best practice and professional standards
consistent with the ethical standards published by the in the UK. The standard period for rotation of the audit
Audit Practices Board. engagement partner is five years and, for any key audit
partner, seven years. The audit engagement partner, Kari
A key factor that may impair an auditor’s independence
Hale, was appointed in 2015, and will rotate off at the end
is a lack of control over non-audit services provided by the
of the 2019 audit in accordance with this requirement.
external auditor. The external auditor’s independence is
deemed to be impaired if the auditor provides a service that: ••Any partner designated as a key audit partner of
Anglo American shall not be employed by Anglo American
••results in the auditor acting as a manager or employee of
in a key management position unless a period of at least
the Group
two years has elapsed since the conclusion of the last
••puts the auditor in the role of advocate for the Group relevant audit.
••creates a mutuality of interest between the auditor and ••The external auditor is required to assess periodically
the Group. whether in their professional judgement, they are
independent of the Group.
Anglo American addresses this issue through three primary
measures, namely: ••The Audit Committee ensures that the scope of the
auditor’s work is sufficient and that the auditor is fairly
••disclosure of the extent and nature of non-audit services
remunerated.
••the prohibition of selected services – this includes the
••The Audit Committee has primary responsibility for
undertaking of internal audit services
making recommendations to the Board on the
••prior approval by the Audit Committee chairman of appointment, re-appointment and removal of the
non-audit services where the cost of the proposed external auditor.
service is likely to exceed $100,000. This was increased
••The Audit Committee has the authority to engage
from the prior limit of $50,000, which had been in place for
independent counsel and other advisers as they determine
many years.
necessary to resolve issues on the auditor’s independence.
Anglo American’s policy on the provision of non-audit
••An annual assessment is undertaken of the auditor’s
services is regularly reviewed.
effectiveness through a structured questionnaire and
The definition of prohibited non-audit services corresponds input from all business units and Group functions covering
with the European Commission’s recommendations on the all aspects of the audit process. The Audit Committee
auditor’s independence and with the Ethical Standards members also participate in this assessment, which
issued by the Audit Practices Board in the UK. evaluates audit planning, execution, communications and
reporting. The assessment identifies strengths and areas
Non-audit work is only undertaken where there is
for improvement which are discussed with the auditor and
commercial sense in using the auditor without jeopardising
action plans agreed. The assessment conducted in 2017
auditor independence; for example, where the service is
for the 2016 audit showed an improvement from the
related to the assurance provided by the auditor or benefits
previous assessment due to actions taken.
from the knowledge the auditor has of the business.
Non-audit fees represented 31% of the 2017 audit fee
of $9.5 million. A more detailed analysis is provided on
page 173.

Audit tender RISK MANAGEMENT
Anglo American will undertake a tender and rotation of the
Risk management is the responsibility of the Board and is
audit appointment no later than at the time of the rotation of
integral to the achievement of our objectives. The Board
the lead engagement partner, which is due after completion
establishes the system of risk management, setting risk
of the 2019 audit. Deloitte has been the auditor since 1999.
appetite and maintaining the system of internal control to
Anglo American confirms compliance during the year with manage risk within the Group. The Group’s system of risk
the provisions of the Competition and Markets Authority management and internal control is monitored by the Audit
Order on mandatory tendering and audit committee Committee under delegation from the Board.
responsibilities.
The system of risk management is designed to ensure
FRC Audit Quality Review awareness of risks that threaten the achievement of
The FRC’s Audit Quality Review team selected the audit of objectives. The controls that mitigate those risks are
the 2016 Anglo American plc financial statements to review identified so that assurance can be provided on the
as part of their 2017/18 annual inspection of audit firms. The effectiveness of those controls and a determination can
focus of the review and their reporting is on identifying areas be made as to whether the risk is operating within the
where improvements are required rather than highlighting Group’s risk appetite. We seek to embed a culture of risk
areas performed to or above the expected level. The awareness into the development of our strategic and
chairman of the Audit Committee, who also met with the operational objectives.
Audit Quality Review team as part of the process, received
The process for identification and assessment of the
Governance
a full copy of the findings of the Audit Quality Review team
principal risks combines a top-down and bottom-up
and has discussed these with Deloitte. The Audit Committee
approach. At the operations level, a process to identify
confirms that there were no significant areas for
all risks that prevent the achievement of objectives is
improvement identified within the report. The Audit
undertaken. Detailed analysis of the material risks at
Committee is also satisfied that there is nothing within the
each location is performed to ensure management
report which might have a bearing on the audit appointment.
understanding of the risk and controls that reduce
Conclusions of the Audit Committee for 2017 likelihood of occurrence and impact should the risk
The Audit Committee has satisfied itself that the external materialise. These operational risk profiles contribute to the
auditor’s independence was not impaired. assessment of risks at the business unit level. Executive
management at each business unit assesses risks that
The Audit Committee held meetings with the external
threaten achievement of the business unit objectives and
auditor without the presence of management on two
the status of controls, or actions, that mitigate those risks.
occasions, and the chairman of the Audit Committee held
At the Group level, risks are identified through assessment
regular meetings with the lead audit engagement partner
of global factors affecting the industry and the Group
during the year.
specifically, as well as the risks arising from the business
Consideration given to the appointment of the unit assessments. Materiality of risk is determined through
external auditor assessment of the various impacts that may arise and
The Audit Committee’s assessment of the external likelihood of occurrence. An exception relates to those
auditor’s performance and independence underpins its risks deemed catastrophic in nature, where the focus of
recommendation to the Board to propose to shareholders assessment is on impact and status of internal controls,
the re-appointment of Deloitte LLP as auditor until the given the very low likelihood of occurrence. When
conclusion of the AGM in 2019. Resolutions to authorise the considering the impact of any risk, we assess financial,
Board to re-appoint and determine the remuneration of safety, environmental, legal or regulatory, social and
Deloitte LLP will be proposed at the AGM on 8 May 2018. reputational consequences.

The robust process of identifying and evaluating the The scope of internal audit work covers the broad
principal risks is ongoing and was in place during 2017. spectrum of risk to which the Group is exposed. The audit
Regular reports on the status of risks and controls are of controls associated with major operating/technical risks
presented to executive management teams throughout the is undertaken in conjunction with relevant experts from
year. The Audit Committee reviews reports on the overall the Technical and Sustainability function, the results of
Anglo American risk profile on two occasions during the which were shared with the Sustainability Committee and
year and conducts in-depth reviews of specific risks during Audit Committee.
its meetings over the course of the year. Each principal risk
In determining its opinion that the internal control
is assigned to either the Board or the relevant Board
environment was effective during 2017, the Audit
committees to oversee executive management actions in
Committee considered the following factors:
response to that risk. The Audit Committee reviews that
oversight process on an annual basis. ••the results of internal audit work, including the response
of management to completion of actions arising from
Details of the principal risks are provided on pages 42-45.
audit work
Risk appetite
••the output of risk management work
We define risk appetite as ‘the nature and extent of risk that
Anglo American is willing to accept in relation to the pursuit ••the output of external audit work and other
of its objectives’. Each principal risk is assessed as to assurance providers
whether it is operating within the limit of appetite for the
••issues identified by management or reported through
Group, based on review of the external factors influencing
whistleblowing arrangements, and the results of
that risk, the status of management actions to mitigate or
investigations into allegations of breaches of our
control the risk and the potential impact should the risk
values and business principles.
materialise. For risks operating beyond the limit of appetite,
a change in strategy may be required. For risks operating Reviewing the effectiveness of the system
within, but approaching the limit of, appetite, specific of risk management and internal control
management actions may be required to ensure the risk The Board, through the Audit Committee, fulfils its
remains within the limit of appetite. responsibility in reviewing the effectiveness of the system
of risk management and internal control through review of
Risk management and the system
reports submitted over the course of the year covering the
of internal control
risk management process, adequacy of the internal control
Controls either reduce the likelihood or impact of any risk
environment, consideration of risk appetite, in-depth
once it has occurred, while the identification of material
reviews of specific risks and the results of external audit
controls – i.e. those controls that have the most influence in
work. The Sustainability Committee also reviews technical
mitigating a risk – is an important input for audit planning.
and safety risks in detail and reports its findings to the Board.
The system of internal control operates on a traditional
Reviewing the effectiveness of Internal Audit
‘three lines of defence’ approach, with operating
During the latter part of 2016, the Audit Committee
management implementing and monitoring controls on
commissioned and participated in an external review of
a day-to-day basis, and business unit or functional
internal audit to assess its effectiveness in the delivery of
management providing a second line of defence through
its assurance work. This is a regular assessment performed
regular and frequent oversight of operating management’s
every five years. The review assessed the purpose and
implementation of controls. A centrally managed internal
remit, position and organisation, process and technology,
audit department provides the third line of defence by
people and knowledge, and performance and
reviewing the design and operating effectiveness of the
communication practices of the internal audit team. The
internal control environment, which includes the work
results of the assessment, which concluded internal audit
performed by the first and second lines of defence
is effective in its duties, were discussed in detail by the
management teams. Internal audit operated in all of the
committee and the recommendations submitted for
Group’s managed businesses in 2017, reporting its work
improvement were evaluated. During the course of 2017, the
to executive management and the Audit Committee on a
Audit Committee reviewed progress on the implementation
regular basis. The internal audit department’s mandate
of agreed actions to address the recommendations made.
and annual audit coverage plans were approved by the
The committee also assesses the work of internal audit
Audit Committee.
through its annual committee evaluation.

Whistleblowing programme
The Group has a whistleblowing facility operating in all its
managed operations as well as a Group-wide stakeholder
complaints and grievance procedure (see the 2017
Sustainability Report for more details). The whistleblowing
programme, which is monitored by the Audit Committee, is
designed to enable employees, customers, suppliers,
managers or other stakeholders to raise concerns on a
confidential basis where conduct is deemed to be contrary
to our values.
During 2017, 272 (2016: 413) reports were received via
the global ‘Speak Up’ facility, covering a broad spectrum
of concerns, including:
••ethical
••criminal
••supplier relationships
••health and safety
Governance
••HR issues.
The majority of reports were received on an anonymous
basis. Of the cases closed in 2017, 19% were proven to
support the allegations received and resulted in some form
of management action.
In addition, more than 600 alerts were received in respect of
an attempted purchasing fraud committed by third parties
against other companies in South Africa using email domain
addresses similar to Anglo American Platinum. These alerts
are being used as evidence by authorities in a criminal
investigation which is ongoing.

GOVERNANCE DIRECTORS’ REMUNERATION REPORT
DIRECTORS’ REMUNERATION REPORT
“ The role of Anglo American’s Remuneration

Committee is to ensure that the remuneration
arrangements for executive directors offer
every encouragement for them to deliver our
strategy and create stakeholder value in a
sustainable manner.”
Sir Philip Hampton, Chairman, Remuneration Committee
1. I NTRODUCTORY LETTER The performance of the business, up to and during 2017, is

reflected in the long- and short-term remuneration received
Dear Shareholder,
by the executive directors. Specifically:
The role of Anglo American’s Remuneration Committee
••The committee has decided to increase the executive
(committee) is to ensure that the remuneration
directors’ salaries in 2018 by 2.5%. This increase is felt to
arrangements for executive directors and other members
be appropriate in the light of the directors’ contribution to
of the Group Management Committee (GMC) offer them
the Group’s improved financial position over 2017 and is
every encouragement to deliver our strategy and create
consistent with the increase awarded to the general UK
stakeholder value in a sustainable and responsible manner.
employee population
It is also our task to ensure that the remuneration received
by executive directors is proportionate to the levels of ••Strong operational performance, delivery of the $1.1 billion
performance achieved and the returns received by you cost and volume improvement target and higher copper
as shareholders. As a committee, therefore, we have to and bulks commodity prices supported the EPS targets
give full consideration to the Group’s strategy, its being achieved as to 98%. The committee measures
performance, your interests and the interests of the wider EPS performance against a set of established outcomes;
communities we affect. As such, we were delighted to half is measured at ‘fixed’ commodity prices and foreign
receive overwhelming shareholder support for our revised exchange (FX) rates and the other half assessed at actual
remuneration policy at the 2017 AGM. We believe that the results. The EPS at ‘fixed’ prices achieved an outcome of
policy ensures that pay outcomes are fair, responsibly 95%, and 100% at actual results. The ‘fixed’ price element
delivered and genuinely reflective of individual and eliminates the impact of commodity price and exchange
business performance. rate fluctuations, which are largely outside of management
control, thereby assessing the underlying business
Pay for performance
performance in terms of productivity and cost
As reported by the chief executive in his introduction to
management. The assumptions used for the ‘fixed’ prices
this year’s Annual Report, Anglo American’s pursuit since
and FX rates were consistent with the budget assumptions
2013 of greater operational efficiency and of upgrading
and in line with market expectations at the time. The range
the quality of its asset portfolio is reflected in further
for actual outcomes was established using a series of price
improvements in financial and operational performance.
and exchange rate parameters taking into account FX spot
Free cash flow increased strongly to $4.9 billion, with profit
rates, analysts’ consensus and with full delivery of the
for the financial year attributable to equity shareholders
stretch improvement target
doubling to $3.2 billion and underlying EBITDA improving
by 45% to $8.8 billion. ••Safety performance during the year led to an overall
modifier of (3.85)%, which incorporates the maximum
Underlying earnings per share (EPS) was $2.57 and
deduction in respect of the disappointing number of
net debt has been reduced to $4.5 billion from $8.5 billion
fatalities in 2017. This led to overall bonus outcomes of
at the end of 2016, well below the target of $7.0 billion.
between 76.90% and 81.70% of maximum opportunity.
The committee has carefully reviewed the bonus
outcomes and is satisfied that they are appropriate. A full
explanation can be found on page 103

••The Long-Term Incentive Plan (LTIP) awards granted in
2015 will vest as to 50%, reflecting full achievement of the
three-year ROCE target. The Total Shareholder Return
(TSR) target was not met, resulting in the lapse of the
remaining 50% of the award.
Executive director changes
Stephen Pearce joined Anglo American in January 2017,
and was elected to the Board as finance director at the
2017 AGM.
As disclosed in the 2016 remuneration report, his
remuneration package comprises:
••Annual base salary of £775,000
••Annual bonus and LTIP participation consistent with the
Group’s remuneration policy
••Compensation for incentives forfeited from his previous
employer, including a performance-related cash bonus
of £300,000 and performance-related share awards of
382,235 shares in total, vesting over three years (the first
tranche of which has now lapsed)
Governance
••Other benefits including pension, medical insurance
and relocation from Australia to the UK.
Full details of each element of Stephen’s remuneration are
included in the appropriate places throughout the
remuneration report.
René Médori stepped down from his position as finance
director at the 2017 AGM. Details of his remuneration up to
that point are included in the appropriate places throughout
the remuneration report.
Non-executive director fees
As mentioned in the 2016 remuneration report, fees payable
to our non-executive directors (NEDs) were reviewed by the
Board during 2017. Full details can be found on page 108.
Pay fairness more generally
The committee is primarily responsible for the governance
of pay for the most senior employees at Anglo American.
However, we are acutely aware of our duty to oversee
remuneration principles at all levels, ensuring that pay is fair
and competitive for our whole population. We have
therefore taken a keen interest in the new gender pay gap
reporting requirements in the UK and have included some
information about this on page 115.
Sir Philip Hampton

Chairman, Remuneration Committee

GOVERNANCE DIRECTORS’ REMUNERATION REPORT
REMUNERATION AT A GLANCE
POLICY
The remuneration policy approved by shareholders at the 2017 AGM, as it will be

applied during 2018, is set out below. Each component of remuneration is designed
to reward the accomplishment of aspects of the Group’s strategy. For more
information on the pillars of value, refer to page 10.
OUR REMUNERATION POLICY
LINK TO STRATEGY KEY FEATURES

2018
2019
2020
2021
2022
2023
SALARY Recruitment and retention ••Reviewed annually by Remuneration committee

of high-calibre executives
••Increases based on Group performance, individual
performance, levels of increase for the broader UK
population and inflation.
Rewards delivery of ••Maximum bonus award of 210% of salary

strategic priorities and
••Outcome based on EPS and individual/strategic
BONUS – financial success
objectives subject to a safety modifier
CASH
••40% of bonus is paid in cash
PERFORMANCE
ONE YEAR
••60% of bonus is deferred into shares (Bonus Shares)

••Two-thirds of Bonus Shares will vest after three
THREE-YEAR
FIVE-YEAR
years, with the remaining Bonus Shares vesting

VESTING
VESTING
BONUS – Encourages sustained after a further two years

DEFERRED performance in line with
SHARES shareholder interests ••Unvested Bonus Shares are subject to malus
and clawback.
LTIP Encourages long-term ••Shares granted with a face value of 300% of salary
PERFORMANCE
shareholder return and

THREE-YEAR
TWO-YEAR
••Shares vest after a three-year performance period

HOLDING
accomplishment of
and released after a further two-year holding period
longer-term strategic
objectives ••Vesting based on TSR performance and achievement
against a balanced scorecard of financial and strategic
measures and subject to malus and clawback.
Executive directors are expected to build up and hold a percentage of their salary in shares (300% for the chief executive, 200% for other executive directors).
KEY PERFORMANCE METRICS FROM 2018

Metrics Pillars of value Rationale
Underlying EPS (bonus)◊ Financial •• EPS links reward to delivery of in-year underlying equity returns to shareholders
Safety modifiers (bonus) Safety and Health •• Employee health and safety is a top priority and core value for the Company
TSR (LTIP) Financial •• Creates a direct link between executive pay and shareholder value
•• Measure is split between comparison against sector index (Euromoney Global Mining Index)
and comparison against local peers (constituents of FTSE 100 index)
Group attributable ROCE (LTIP)◊ Financial •• ROCE promotes disciplined capital allocation by linking reward to investment return
Attributable free cash flow (LTIP)◊ Financial •• Attributable free cash flow incentivises cash generation for use either as incremental capital
investment, for capital returns to shareholders, or debt reduction
Sustainability strategy (LTIP) Environment •• All operations must have a five-year site level sustainability strategy in place by the end of 2020
Concurrent rehabilitation (LTIP) Safety and Health •• 100% rehabilitation to be achieved for open-cast mining operations
Socio-political

REMUNERATION AT A GLANCE
2017 PAY OUTCOMES
UNDERLYING EPS◊ THREE-YEAR SHAREHOLDER RETURN GROUP ATTRIBUTABLE ROCE◊
$2.57/share 21% 19%

$2.57/share 2017 2017 21% 2017 19%
$1.72/share 2016 (12)% 2016 2016 11%
2017 PAY OUTCOMES £’000

MARK CUTIFANI
2017 £1,706 £2,077 £2,783
Governance
2016 £1,675 £2,317
STEPHEN PEARCE
2017 £1,877 £1,529
TONY O’NEILL
2017 £1,081 £1,365 £1,498
2016 £1,060 £1,060 £1,441
RENE MEDORI
2017 £363 £442 £1,521
2016 £1,094 £1,430
Fixed Bonus paid LTIP paid

• Fixed pay comprises salary, benefits and pension
• Bonus figures include deferred shares
• LTIP paid includes dividend equivalent amounts
2017 ANNUAL BONUS OUTCOME

EPS – 50% of overall opportunity Personal KRAs – 40% of overall opportunity
•• The Group’s actual EPS was $2.57/share. •• Each executive director has a set of personal objectives for the year.
•• This is above the target for maximum vesting of $2.40/share. •• The vesting for each executive director is as follows:
•• The Group’s fixed price and FX rates EPS was $1.66/share; Mark Cutifani: 80.0% (32.0% of overall opportunity)
$0.02 below the target for maximum vesting of $1.68. Stephen Pearce: 92.0% (36.8% of overall opportunity)
•• A s a result, 98% of the EPS component of the annual bonus will pay out Tony O’Neill: 90.0% (36.0% of overall opportunity)
(50% of overall opportunity). René Médori: 92.0% (36.8% of overall opportunity).
A modifier of (3.85)% of overall opportunity was applied to reflect safety target outcomes in 2017 (out of a possible range of (10)% to +10%).
The overall vesting level for the annual bonus award was 76.9% of maximum for Mark Cutifani and 81.7%, 80.9% and 81.7% for Stephen Pearce,
Tony O’Neill, and René Médori, respectively.
2015 LTIP VESTING

TSR vesting – 50% of overall opportunity Group attributable ROCE vesting – 50% of overall opportunity
•• The Group’s TSR performance for the performance period was 21%. •• The Group’s attributable ROCE for 2017 was 19%.
•• This is below both the sector index and FTSE 100 median performance. •• This is above the maximum performance for vesting of 15%.*
•• A s a result, 0% of the TSR component of the 2015 LTIP will vest. •• As a result, 100% of the ROCE component of the 2015 LTIP will vest.
* The ROCE target range was restated from 10-14% to 11-15% as a result of impairments and
portfolio changes from the time of target setting.
The overall vesting level for the 2015 LTIP award is 50%.

GOVERNANCE REMUNERATION COMMITTEE
REMUNERATION COMMITTEE COMMITTEE DISCUSSIONS IN 2017

The committee held three meetings in 2017:
COMMITTEE MEMBERS ••review of executive director personal key performance
(See pages 66-67 for biographies and Board experience details) indicators (KPIs) for 2017 and Group financial and safety
targets to ensure alignment with the Group strategy
•• Sir Philip Hampton – Chairman
•• Byron Grote ••discussion of the executive directors’ and GMC
•• Jim Rutherford (appointed 25 July 2017) performance in 2016 to adjudicate on bonus outcomes
•• Anne Stevens ••approval of joining awards for the new finance director
•• Jack Thompson
••approval of remuneration package for the new Group
general counsel
ROLE AND RESPONSIBILITIES
••approval of the retirement details for the outgoing
••establishing and developing the Group’s general policy finance director
on executive and senior management remuneration
••confirmation of the full lapsing of the 2014 LTIP award
••determining specific remuneration packages for the
chairman, executive directors and members of the GMC ••approval of the proposed performance targets for the
for review and approval by the Board 2017 LTIP awards
••designing the Group’s share incentive schemes. ••approval of the methodology and application of the
vesting cap to the GMC
The committee’s terms of reference are available to
view online. ••review of the directors’ shareholdings
For more information, visit ••approval of, the revised remuneration policy ahead of
publication and shareholder vote
••review and discussion of the 2016 Directors’
Remuneration Report
••confirmation of the vesting of 2014 BSP awards and the
granting of 2017 BSP and LTIP awards
••approval of the 2017 key performance indicators,
confirmation of the Group financial and safety targets
••consideration of 2017 AGM feedback on remuneration
policy and report
••review and approval of directors’ salaries, taking into
account the general salary review for the broader
employee population
••review of the outline approach and high-level performance
conditions for the 2018 LTIP awards
••approval of the operation of the Share Incentive Plan (SIP)
free shares for 2017
••review of the gender pay gap draft disclosure.

GOVERNANCE DIRECTORS’ REMUNERATION POLICY
2. DIRECTORS’ REMUNERATION POLICY For ease of reference, the committee has decided to
reproduce the remuneration policy in full in the following
2.1 Future policy table
sections, excluding the paragraphs explaining the changes
The Company’s remuneration policy, as set out in the
from the 2014 remuneration policy. Some minor updates
2016 Annual Report and Accounts, received approval
have been made, e.g. to reflect the outcomes of the NED
from shareholders at the AGM held on 24 April 2017.
fee review mentioned in the 2016 remuneration report. The
The Company intends that this policy should apply until
table below therefore sets out the key components of
the Company’s 2020 AGM.
executive directors’ pay packages, including the rationale
for use and practical operation considerations.
Figure 1: Key aspects of the remuneration policy for executive directors

Basic salary Purpose Maximum opportunity
To recruit and retain high-calibre executives. Maximum increase of 5% of salary per annum.
Operation Assessment of performance
Basic salary levels are reviewed annually by the Individual performance is considered for context when
committee, taking account of Company performance, considering any salary increases awarded.
individual performance, levels of increase for the
Discretion
broader UK population and inflation.
There may be occasions when the committee needs
Reference may also be made to median levels to recognise, for example, development in role, change
Governance
within relevant FTSE 50 and natural resources in responsibility and/or specific retention issues.
companies. Alternative peer groups may be External factors such as sustained high inflation may
considered as appropriate. also be a consideration.
The committee also considers the impact of any basic In these circumstances, the committee may offer a higher
salary increase on the total remuneration package. annual increase, the rationale for which will be explained
to shareholders in the relevant remuneration report.
Increases awarded each year will be set out in the
statement of implementation of policy.


Annual bonus Purpose Maximum opportunity
To encourage and reward delivery of the Company’s 210% of salary.
strategic priorities.
Assessment of performance
To help ensure, through the share-based elements, At least 50% – EPS. The final performance measurement
that any resulting performance is sustained over the will be 50% based on actual prices and FX rates and 50%
longer-term in line with shareholder interests. based on fixed prices and FX rates.
Operation Up to 50% – scorecard of measures based on individual
Each year, executive directors participate in the annual objectives linked to the Company’s strategic priorities
bonus, which rewards EPS, individual performance and safety.
targets and improvements in safety over the full year.
A modifier to the above is applied depending on the extent
Part of the award is deferred into Bonus Shares under
to which safety targets are met.
the Company’s BSP.
Where relevant, targets will be disclosed retrospectively
The EPS measure has been chosen as it continues to
as they are considered to be commercially sensitive.
link reward to the delivery of earnings and returns to
shareholders. The EPS targets are set each year to Outcome at threshold
ensure they are demanding yet realistic. Consideration EPS: 25% of award portion.
is given to internal budgets and price expectations
Discretion
for the year, as well as prior performance and
Under the BSP Rules, the Company has the standard
external expectations.
discretion to take appropriate action in the event of
The individual objectives measure was chosen to unforeseen events which affect the Bonus Shares
provide a balance and reflect management’s underlying (for example, on a variation in share capital) and to settle
activity towards delivering the Company’s strategy the Bonus Shares in cash (for example, on a termination).
regardless of price or other volatility. The individual
Should circumstances change such that EPS is no longer
objectives are based on the Company’s strategic priorities
considered to be the most appropriate financial measure,
for the year and will be fully disclosed in the relevant
the committee retains the discretion to replace EPS with
one or more alternative financial measures. Full details of
Form and timing of payment any such change would be given in the relevant
••40%: cash award at end of year remuneration report.
••40%: Bonus Shares vesting three years after
end of bonus year
••20%: Bonus Shares vesting five years after
end of bonus year.
Dividends are paid on Bonus Shares.
Malus and clawback
The committee is able to reduce any unvested Bonus
Share awards, or future awards in the event of a material
misstatement in the Company’s results, misconduct or a
material failing in risk management processes that has
given, or is likely to give, rise to significant and lasting
value destruction for the Company.

Long-Term Purpose Maximum opportunity
Incentive Plan To encourage and reward the generation of long-term 300% of salary.
(LTIP) sustainable shareholder returns and the delivery of
The value that can be received in the year of vesting will
financial/strategic priorities.
be limited to twice the face value of the award at grant, with
Operation any value above that level being forfeit or, in exceptional
The committee makes an annual conditional award of circumstances and at the committee’s discretion, deferred
shares to each executive director. for a further period.
The TSR measures have been selected to reflect the extent Performance measures
to which value is being delivered to shareholders and the 70%: TSR relative to sector index and leading UK-listed
balanced scorecard to reflect the Company’s financial and comparator companies.
strategic priorities.
30%: Balanced scorecard of key performance indicators,
Each year, the committee reviews the performance linking to the Company’s KPIs.
targets prior to grant. The relative TSR targets are set so
Vesting at threshold
that only a quarter of the relevant portion of the award is
TSR: 25% of award portion.
payable for index/median performance, while maximum
vesting requires exceptional relative performance. Balanced scorecard: 25% of award portion.
The balanced scorecard will be based on a small number Discretion
of measurable financial and/or strategic performance The committee does not intend to make adjustments to the
Governance
indicators. The measures may vary each year to reflect the method by which it measures LTIP performance conditions.
Company’s financial and/or strategic priorities and will be However, it reserves the discretion to make adjustments to
set out in the statement of implementation in the year of outcomes in very exceptional circumstances, whether related
grant to the extent that they are not commercially sensitive. to internal or external factors (for example, on a sequestration
of assets). Shareholders would be given details of any
Dividend equivalents are paid on any shares that vest.
exercise of this discretion in the relevant remuneration report.
In order to mitigate potential excessive gains brought about
Under the LTIP Rules, the Company also has the standard
by the volatile nature of the mining industry, the value that
discretion to take appropriate action in the event of
can be delivered on an award vesting will be limited to twice
unforeseen events during an award cycle (for example, on
the face value of the award on grant. Any gains above this
a variation in share capital) and to settle the awards in cash
level will be forfeit before the start of the two-year holding
(for example, on a termination).
period or, in exceptional circumstances and at the
committee’s discretion, deferred for a further period. The committee may, in exceptional circumstances, allow
the value delivered in the year of vesting to be above the limit
Performance period
described under ‘Operation’ and ‘Maximum opportunity’.
Three years.
Should this discretion be applied, consideration would be
Additional holding period given to deferring any gains above the normal limit for an
Two years. extended time period. In addition, the committee would take
account of the Company’s overall financial performance, the
Malus and clawback
magnitude of commodity and share price movements and
The committee is able to reduce any unvested awards,
overall remuneration outcomes in recent years. The exercise
vested awards subject to a holding period or future grants
of any such discretion would be fully explained in the relevant
in the event of a material misstatement in the Company’s
results, misconduct or a material failing in risk management
processes that has given, or is likely to give, rise to
significant and lasting value destruction for the Company.
Pension Purpose Maximum opportunity
To offer market-competitive levels of pension provision. 30% of basic salary.
Operation
Executive directors participate in defined contribution
pension arrangements.
Executive directors have the option for contributions which
may not be paid to a UK-registered pension scheme as a
result of HMRC limits (either annual allowance or lifetime
allowance) to be treated as if paid to an unregistered
unfunded retirement benefit scheme (a UURBS).
Executive directors may request a pension allowance to
be paid in place of defined contribution arrangements.
SAYE/SIP Purpose
As UK employees, UK-based executive directors are
eligible to participate in the Company’s Save As You
Earn (SAYE) scheme and SIP.
Operation
The plans are registered with HMRC and do not have
performance conditions.


Other benefits Purpose Maximum opportunity
To provide market-competitive benefits. Capped at 10% of salary.
Operation Discretion
The Company provides the following ongoing benefits: The committee reserves the discretion to exceed the
ongoing maximum level for certain situation-specific
••28 days’ leave and encashment of any accumulated
benefits, such as relocation. Full details of the exercise
leave in excess of 20 days
of any such discretion will be provided to shareholders
••car-related benefits in the following remuneration report.
••medical insurance
••death and disability insurance
••directors’ liability insurance
••limited personal taxation and financial advice
••club membership
••other ancillary benefits, including attendance at
relevant public events.
In addition, the Company pays additional benefits
when specific business circumstances require it,
including costs and allowances related to relocation
and international assignments.
The Company reimburses all necessary and reasonable
business expenses.
Figure 2: Recruitment and promotion arrangements

Purpose offer additional cash and/or share-based elements
To secure the appointment and promotion of (including in-flight LTIPs) to replace any remuneration
high-calibre executives. forfeited, when it considers this to be in the best interests
of the Company and its shareholders. The terms of any
Operation
share-based elements offered will reflect the nature, time
The remuneration arrangements for a newly recruited
horizons and performance requirements of remuneration
or promoted executive director will reflect the
forfeited and will have equivalent performance conditions
remuneration policy in place for executive directors at
attached. Shareholders will be informed of any such
the time of the appointment. The arrangements will
payments at the time of appointment. If necessary, the
therefore comprise basic salary, annual bonus, LTIP
Company can go outside of existing plans as currently
awards, benefits, pension and SAYE/SIP on the bases
permitted under the Listing Rules.
set out above.
Pensions for new hires will be set at a level commensurate
The initial basic salary level for a newly recruited or
with the wider workforce and will be no greater than 25%
promoted executive director will be set to reflect the
of salary.
individual’s experience, salary levels within the Company
and market levels. Where basic salary is set below the For internal appointments, any commitments made
level that might be expected, given the executive’s before appointment and not relating to appointment are
relative inexperience and the executive then develops allowed to pay out according to their terms. For external
successfully into the role, the committee has the and internal appointments, the committee may agree
discretion to give a salary increase in the year(s) after that the Company will meet certain relocation expenses
appointment above the standard maximum level of 5%. as appropriate.
For external appointments, the committee may also

2.2 S upplementary information
2.2.1 Shareholding targets 2.2.2 Policy in rest of company
Within five years of appointment, executive directors are The remuneration arrangements for the executive directors
expected to hold Anglo American plc shares with a value outlined in Figure 1 are consistent with those for other
of three times basic salary in respect of the chief executive executives serving on the GMC, although opportunity
and two times basic salary in respect of other executive levels vary. The majority of our employees are located in
directors. The committee takes into consideration South Africa and South America, and the remuneration
achievement against these targets when making grants arrangements of these employees are aligned to local
under the Company’s various incentive plans. market practices and levels.
Figure 3: Key aspects of the remuneration policy for non-executive directors

Chairman – Purpose Operation
Fees To attract and retain a high- The chairman is paid a single fee for all of his responsibilities. The level of this fee is
calibre chairman by offering a reviewed every two to three years by the committee and chief executive, with reference
market-competitive fee level. to UK market levels (FTSE 50 companies), and a recommendation is then made to the
Board (in the absence of the chairman).
Maximum increase
Equivalent to annual increase Fees are paid in cash, with the flexibility to forgo all or part of the net fees to acquire
of 5% of fee level. shares in the Company.
Chairman – Purpose Operation
Benefits To provide market-competitive The chairman is provided with reasonable use of a car and driver.
Governance
benefits.
Reasonable and necessary expenses are reimbursed.
Maximum benefits
£35,000.
Non-executive Purpose Operation
directors – To attract and retain high-calibre The non-executives are paid a basic fee. The chairmen of the main Board committees
Fees non-executive directors by and the senior independent director are paid an additional fee to reflect their extra
offering market-competitive fees. responsibilities. These fee levels are reviewed every few years by the chairman and
executive directors, with reference to UK market levels (FTSE 50 companies), and a
Maximum increase for each
recommendation is then made to the Board.
type of fee
Equivalent to annual increase Fees are paid in cash with the flexibility to forgo all or part of the net fees to acquire
of 5% of fee level. shares in the Company.
Reasonable and necessary expenses are reimbursed.
Non-executive directors’ fees were reviewed during 2017. The Board decided to
increase base fees to make them market-competitive. Prior to this, base fees had not
increased since 2010. Committee fees were also introduced. Full details can be found
on page 108.
Other fees/ Purpose Operation
payments To have the flexibility to The Company has the discretion to pay an additional fee, up to the equivalent of the
provide additional fees/benefits committee chairmanship fee (currently £30,000), to a non-executive director should
if required. the Company require significant additional time commitment in exceptional or
unforeseen circumstances.
Maximum additional fee
£30,000.

2.3 Indicative total remuneration levels

Figure 4 illustrates how the total pay opportunities
for the chief executive, the finance director and
the technical director vary under three different
performance scenarios:
Figure 4: Indicative executive director total remuneration at different levels of performance

10.0
£8.5m
8.0
Indicative total pay (£m)
6.0 £6.1m
£5.1m £5.3m
4.0 £3.7m £3.8m
2.0 £1.7m
£1.1m £1.1m
0
Above Target Below Above Target Below Above Target Below
Performance Level Performance Level Performance Level
Chief executive Finance director Technical director
2018 basic salary, benefits and pension
Annual bonus (cash and Bonus Shares)
LTIP
Note:
Pay element Above Target Below
Fixed 2018 basic salary, benefits and pension 2018 basic salary, benefits and pension 2018 basic salary, benefits and pension
Annual bonus 100% of maximum bonus opportunity 65% of maximum bonus opportunity None
(60% deferred into shares) (60% deferred into shares)
LTIP 100% of maximum LTIP opportunity 65% of maximum LTIP opportunity None
•• Estimates of £34,000 £36,000 and £36,000 have been used for ongoing non-pension benefits for the chief executive, finance director and technical director, respectively.
•• Share price movement and dividend accrual have been excluded from all figures.
•• Participation in the SAYE and SIP has been excluded, given the relative size of the opportunity levels.
•• Charts have not been included for the non-executive directors as their fees are fixed and do not vary with performance.

2.4 Policy on termination and change in control 2.4.2 Non-executive directors
2.4.1 Executive directors All non-executive directors have letters of appointment
Figure 5 sets out the Company’s policy on termination. This with the Company for an initial period of three years, subject
policy is consistent with provisions relating to termination of to annual re-appointment at the AGM. The chairman’s
employment in the executive directors’ service agreements appointment may be terminated by the Company with six
and with provisions in the incentive plan rules. months’ notice. The appointment letters for the chairman
and non-executive directors provide that no compensation
Figure 6 sets out key provisions relating to change of control,
is payable on termination, other than any accrued fees
where there is no termination. There are no provisions for
and expenses.
enhanced payments in the event of a change of control of
the Company.
Figure 5: Principles of determining payments for loss of office

Notice periods Notice periods do not exceed 12 months.
Upon appointment the committee can agree an extended Company notice period for the first year following appointment.
‘Good Leaver’ Voluntary resignation ‘Bad Leaver’
Circumstances Typical reasons include retirement, redundancy, death, Typically,

of departure of ill health, injury, disability or as defined by the committee. termination
executive for cause.
Governance
Where departure is on mutually agreed terms, the committee
directors
may treat the departing executive as a ‘Good Leaver’ in terms
of one or more elements of remuneration. The committee
uses this discretion judiciously and shareholders will be
notified of any exercise as soon as reasonable.
Salary and Salary and benefits continue to be paid to the date of Salary and benefits continue to be Immediate
benefits for termination of employment, including any notice period paid to the date of termination of termination with
notice period and/or gardening leave period. employment, including any notice no notice period.
period and/or gardening leave period.
The Company may terminate employment with immediate
effect and, in lieu of the unexpired portion of any notice The Company may terminate
period, make a series of monthly payments based on salary employment with immediate effect
and benefits (or make a lump sum payment based on salary and, in lieu of the unexpired portion of
only). Any monthly payments will be reduced to take account any notice period, make a series of
of any salary received from alternative employment. monthly payments based on salary and
benefits (or make a lump sum payment
based on salary only). Any monthly
payments will be reduced to take
account of any amounts received from
alternative employment.
Bonus accrued A time pro rated bonus award may be made by the No accrued bonus is payable. No accrued
prior to Company, with the committee’s approval, and will bonus is payable.
termination be paid wholly in cash.
Unvested Normal circumstances Forfeit. Forfeit.
Bonus Shares Bonus Shares are released in full on the normal
release date (i.e. awards will not be released early).
Exceptional circumstances
(e.g. death or other compassionate grounds).
Bonus Shares are released in full, and eligible for
immediate release.

Figure 5: Principles of determining payments for loss of office
‘Good Leaver’ Voluntary resignation ‘Bad Leaver’
Five-year Bonus Normal circumstances If an employee resigns to join a Forfeit.

Shares during Released in full to the employee at the end of the competitor (as defined by the
final two years five-year period. committee) during the final two
of vesting period years of the five-year vesting period,
then the Bonus Shares will be forfeit.
Outside of these circumstances, Bonus
Bonus Shares are released in full, and eligible for
Shares are released to the employee
immediate release.
at the end of the five-year period.
Unvested LTIP Normal circumstances Forfeit. Forfeit.
awards LTIP awards will vest subject to the performance conditions
at the end of the normal performance period and, if
applicable, released at the end of the holding period.
All awards are time pro rated.
LTIP awards may be released on departure, subject to
assessment of the performance conditions at that time.
All awards are time pro rated.
Vested LTIP Normal circumstances If an employee resigns to join a Forfeit.
awards subject Vested LTIP awards that are subject only to a holding competitor (as defined by the
to a holding period are released in full to the employee at the end committee), then even those vested
period of the holding period. LTIP awards that remain subject only
to the holding period will be forfeit.
(e.g. death or other compassionate grounds). Outside of these circumstances, such
awards are released to the employee
Vested LTIP awards subject to a holding period may be
at the end of the holding period.
released on departure.
Unvested There is no standard policy in respect of the treatment Generally forfeit. Forfeit.
Restricted of any restricted share awards to executive directors.
Shares Terms are set on a case-by-case basis.
SAYE and SIP Outstanding shares and/or options under the Company’s According to HMRC rules. According to
SIP and SAYE vest in accordance with the relevant HMRC rules.
HMRC requirements.
Other Limited disbursements (for example, legal costs, relocation None. None.
costs, untaken holiday).
Malus and Malus and clawback provisions in the relevant incentive plan
clawback rules apply.

Figure 6: Policy on change in control
Incentive plan Bonus Shares
provisions The Bonus Shares awarded under the BSP will be released.
relating to
LTIP awards
change of
The number of shares that vest under the LTIP will be calculated by reference to the extent to which the applicable
control (without
performance conditions have been met at the time of the change of control.
termination)
Vested LTIP awards subject to holding period
LTIP awards will be released.
2.5 Development of directors’ remuneration policy 2.6 Payments under previous policies

In developing and reviewing the Group’s remuneration The committee reserves the right to make any remuneration
policy for executive directors and other senior executives, payments and payments for loss of office, notwithstanding
the committee is receptive to the views of shareholders and that they are not in line with the policy set out above, where
sensitive to the relationship between the arrangements for the terms of the payment were agreed:
executive directors and those for other employee groups. (i) under a previous policy, in which case the provisions of
that policy shall continue to apply until such payments have
Specifically:
been made; (ii) before the policy or the relevant legislation
••last year, the committee responded to concerns raised in came into effect; or (iii) at a time when the relevant individual
relation to the possibility of windfall gains by introducing was not a director of the Company and, in the opinion of the
Governance
two caps (one backward looking, one from 2017 onwards) committee, the payment was not in consideration for the
on the value that can be received from awards on vesting. individual becoming a director of the Company. For these
The caps have now been extended to the GMC purposes, ‘payments’ includes the satisfaction of awards of
variable remuneration and, in relation to awards of shares,
••each year the committee also reviews in detail how
the terms of the payment which are agreed at the time the
the arrangements for the executive directors compare
award is granted.
to those for other members of the GMC to ensure an
appropriate relationship and to support career
development and succession
•• in light of the expected new Corporate Governance
regulations, the committee is currently considering how to
better engage with the workforce and wider stakeholders.
During 2017, an employee engagement survey was
undertaken across the Group. Management is working to
respond to the feedback gained, and part of this relates to
employee remuneration. For example, our global benefits
offering is currently under review.

GOVERNANCE ANNUAL REPORT ON DIRECTORS’ REMUNERATION
3. ANNUAL REPORT ON REMUNERATION

The information set out in this section (which constitutes the
Implementation Report) has been subject to external audit.
3.1 Executive director remuneration in 2017
Figure 7 sets out the remuneration paid to the executive
directors for 2017.
Figure 7: Single total figure of remuneration for executive directors
Annual
bonus – cash LTIP(1)
Total basic Benefits and Bonus award Total Total
salary in kind Shares vesting Pension Other(4) 2017 2016
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Section Section Section Section Section
Executive directors 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5
Mark Cutifani 1,286 34 2,077 2,783 386 128 6,693

Mark Cutifani (2016) 1,261 36 2,317 – 378 5 3,996
Stephen Pearce(2) 716 946 1,229 – 215 301 3,408
Stephen Pearce (2016) – – – – – – –
Tony O’Neill 804 36 1,365 1,498 241 79 4,023
Tony O’Neill (2016) 788 36 1,441 – 236 3 2,504
René Médori(3) 257 28 442 1,521 77 78 2,405
René Médori (2016) 804 49 1,430 – 241 5 2,529
(1)
The LTIP vesting level was confirmed by the Remuneration Committee at its meeting on 19 February 2018. As LTIP awards are due to vest after publication of this report, the
average share price between 1 October 2017 and 31 December 2017 (£14.42) has been used to calculate the value and will be trued up in the 2018 report. The shares were
awarded in 2015 based on a share price of £12.18. The values shown include dividend equivalent amounts of £170,511 for Mark Cutifani, £91,780 for Tony O’Neill and £93,226
for René Médori. The value received from the LTIP awards vesting in 2018 does not breach the limits under the vesting cap.
(2)
For Stephen Pearce, the figures relate to the period between joining and year-end. ‘Other’ comprises free and matching shares awarded under the SIP and a £300,000 cash
award granted on joining and paid following the committee’s determination of satisfactory individual performance at payment date.
(3)
For René Médori, the figures relate to the period between the start of the year up until retirement from the Board, with the exception of the LTIP vesting figures, which relate to
the entire award.
(4)
‘Other’ comprises free and matching shares awarded under the SIP and dividend payments from unvested Bonus Shares.
3.1.1 Basic salaries for 2017

Figure 8: Basic salaries for 2017 Figure 8 sets out the basic salaries for 2017.
(all amounts in ’000)
3.1.2 Benefits in kind for 2017
Benefits for executive directors with a value over £5,000 are set out in Figure 9. The
MARK CUTIFANI executive directors also receive club membership, death and disability insurance,
(2016: £1,261) directors’ liability insurance, medical insurance and other ancillary benefits.
£1,286 Figure 9: Benefits in kind for 2017
Car-related benefits Tax advice Relocation(3)

STEPHEN PEARCE(1)
(2016: N/A) Mark Cutifani 30,010 250 –
£716
Stephen Pearce(1) 26,526 6,800 909,356
Tony O’Neill 28,940 – –
TONY O’NEILL René Médori (2)

9,191 16,893 –
(2016: £788) (1)
For Stephen Pearce, the figures relate to the period between joining and year-end.
(2)
For René Médori, the figures relate to the period between the start of the year and retirement from the Board.
£804
(3)
One-off relocation support for Stephen Peace on joining, comprising housing assistance, including stamp duty on
property purchase and other related amounts. Amounts were grossed up for tax.
RENE MEDORI(2)
(2016: £804)
£257
(1)
For the period between joining and year-end.
(2)
For the period between the start of the year and
retirement from the Board.

Figure 10: Annual bonus Figure 11: Safety performance modifier
outcomes for 2017
(cash and Bonus Shares) Safety target Modifier range 2017 modifier
(all amounts in ’000)
Fatal injury frequency rate (FIFR) Up to 7.0% (7.00)%
deduction
MARK CUTIFANI Total recordable case frequency rate Up to 3.0% 0.00%
(2016: £2,317) (TRCFR) uplift
£2,077 HIV prevention
Level 4/5 environmental incidents

Up to 3.0%
uplift
Up to 3.0%
0.00%
(0.00)%
STEPHEN PEARCE(1)
deduction
(2016: N/A)
Operational Risk Management (ORM) Up to 4.0% 3.15%
£1,229 implementation
Net modifier
uplift
(3.85)%
TONY O’NEILL
(2016: £1,441)
3.1.3 Annual bonus outcomes for 2017
£1,365 Figure 10 shows the annual bonus outcomes for 2017. Figure 12 summarises
Governance
the individual objectives for the 2017 annual bonus.
RENE MEDORI(2) At the beginning of 2017, the committee approved threshold performance
(2016: £1,430)
expectations for the EPS element of the bonus outcome. For the first time,
50% of the earnings element of the annual bonus was evaluated against fixed
£442
prices and FX rates, with the remaining portion evaluated at actual prices and
FX rates. The fixed EPS portion is designed to monitor Group operational
performance excluding the impact of the variations in price and currency
(1)
For the period between joining and year-end. fluctuations. Budget prices and FX rates were selected for the fixed price/FX
(2)
For the period between the start of the year rates, given the budget’s importance as the primary comparative used for
and retirement from the Board.
measuring performance internally. The budget was based on prices stabilising
at above 2016 averages, with increases in metallurgical coal prices, but offset
by stronger producer currencies.
Both target ranges are illustrated in the table below, with 25% vesting taking
place with performance at threshold.
Threshold Maximum Outcome Vesting
Actual prices and FX rates $1.60/ $2.40/ $2.57/ 100%

share share share
Fixed prices and FX rates $1.38/ $1.68/ $1.66/ 95%
share share share
Strong operational performance and delivery of the underlying EBITDA

improvement target supported by strong bulks and copper prices, particularly in
the second half of the year, resulted in the outperformance of the actual price/FX
element of the award. Average market prices for the Group’s basket of
commodities and products increased by 16% from 2016, significantly exceeding
expectations at the time of target-setting. However, even without the
improvement in prices, EPS vested at 95%, with the Group achieving $1.1 billion
in operating cost and volume improvements. This performance was driven mainly
by the ongoing ramp-up of Minas-Rio, strong sales volumes at De Beers in the
first quarter and Platinum’s solid recovery from the operational challenges
experienced in 2016. The impact of the Group’s ongoing cost-efficiency
programme also played a significant role in exceeding our improvement target for
the year. Measurement of both these targets, therefore, resulted in vesting of the
overall EPS element (relating to 50% of the annual bonus award) of 98%.
The executives’ individual objectives were set at the start of the year and reflect
the Group’s strategic priorities for the year. Each category contained between
one and four specific objectives, incorporating a combination of quantitative and
qualitative metrics. Following the end of the year, the committee made a detailed
assessment of performance against each objective, leading to the evaluations
shown in Figure 12.
The Group’s safety performance in 2017 was assessed through both additive
and deductive component measures. Figure 11 sets out the outcome in each
category, resulting in a net modifier of (3.85)%. The disappointing number
of fatalities in 2017 led to the maximum possible FIFR deduction being applied.

Figure 12: Annual bonus performance assessment for 2017

50% of each executive director’s bonus outcome was dependent
on an EPS target, which has been met at 98%. 40% of the bonus
outcomes related to a set of individual objectives for the year. The
achievement and outcomes of these objectives are set out for
each executive director below. In addition, bonuses are subject to
a safety modifier of between (10)% and 10%, which has resulted
in a deduction of (3.85)%. Refer to page 103 for more detail on
the modifier.
Mark Cutifani
Objectives Achievement Outcome
Strategic development (12%) ••Completed the disposal of the Pandora platinum joint venture and 8.0%
••Actions to reduce net debt to below $7 billion Platinum’s long-dated Amandelbult resources. Disposal of Platinum’s
••Progress asset disposal programme and Union mine completed in February 2018. Snap Lake (De Beers) and
portfolio upgrade. Bokoni (Platinum) were placed onto care and maintenance.
South African Eskom-tied coal operations share purchase agreement was
signed in April 2017. DMR and competition approval received, with the
transaction expected to complete 1 March 2018. The sale of New Largo
(South Africa – thermal coal) was announced in January 2018. The sale is
expected to close in the second half of 2018
••Net debt reduced to $4.5 billion.
Business improvement (12%) ••Delivered $1.1 billion in cost and volume improvements 10.4%
••Deliver operational improvements and cost savings: ••Capital expenditure $300 million lower than guidance
––$1 billion EBITDA improvement ••Increased copper equivalent production by 5% vs 2016
––Capital discipline ••Operating Model deployment underway at all key operations
••Projects ramp-up on schedule. ••Gahcho Kué ramp-up challenges addressed, with the mine now
producing at full capacity
••Grosvenor geotechnical challenges addressed – first longwall completed
••Minas-Rio Step 3 installation licence awarded in January 2018.
People (8%) ••Successfully onboarded the new finance director 7.2%
••Continue to strengthen the GMC and functional teams ••Appointment and transition of Group general counsel
••Embed Organisation Model. ••Continued the implementation of the Functional Model, progressed skills
development and structures to support future of the business
••Negligible turnover of high potential and key staff.
Endowment and stewardship (8%) ••Continued constructive engagements with host country governments – 6.4%
••Progress options on project portfolio South African support secured for key disposals
••Continue extensive engagement with stakeholders ••Focused engagements with stakeholders to articulate the successful
••Deploy Code of Conduct, develop Sustainability Strategy. execution of strategy – share price outperformance continued
••Progressed portfolio options, including Quellaveco
••Deployment of the Code of Conduct completed
••Sustainability Strategy approved by the Board, with launch due in March 2018.
Overall individual performance 32.0%

Stephen Pearce
Strategic development (20%) ••Further reduced net debt by $4.0 billion to $4.5 billion, through continued 18.4%
••Actions to reduce net debt below $7 billion business operational improvements delivering an additional $1.1 billion in
••Optimise debt maturity profile and maintain underlying EBITDA, capital discipline leading to a $0.2 billion decrease in
liquidity levels capital expenditure and working capital reduction of $0.9 billion
••Engage with credit ratings agencies to support ••Reinstatement of Group’s investment grade credit rating
credit re-rating of Group ••Reintroduced the dividend in July 2017, six months ahead of target, based
••Develop and implement appropriate dividend policy on a targeted payout level of 40% of underlying earnings
••Continue to progress Group portfolio restructuring. ••Increased Group liquidity to $16.8 billion. Successful bond issuances
of $3.0 billion and early bond redemptions of $3.1 billion, coupled with
$1.9 billion of bond maturities, increased the weighted average maturity
of outstanding bonds by approximately one year to 4.4 years
••Continued to upgrade the Group’s asset portfolio – completing the disposal of
small Australian coal mines and Exxaro Resources Ltd, while announcing the
sale of Coal South Africa’s Eskom-tied assets and Platinum’s Union mine.
Business improvement (12%) ••Progressed various legal matters to resolution, or near completion, 10.8%
••Progress resolution of critical legal matters including settlements with various revenue authorities, former
Governance
••Enhance and improve capital allocation process mineworkers’ occupational health claims, and other litigation items
••Identify opportunities and support the business ••New project governance model implemented, in conjunction with Technical
to deliver cost cutting targets and business and Sustainability function, with a focus on improved visibility and forecasting
improvement opportunities. of capital expenditure, approval processes and assessment criteria
••Achievement of $1.1 billion of operational improvements.
People (4%) ••Successfully established as the finance director and transitioned 4.0%
••Successfully transition as new finance director responsibilities and activities from previous incumbent
and appoint new Group general counsel ••Supported transition of new Group general counsel and continued to
••Build finance function to support business and build finance function capabilities
implementation of global best practices. ••Continued implementation of finance functional model and organisational
structures to support future of the business.
Investor relations (4%) ••Developed positive investor and shareholder engagements, articulating 3.6%
Group strategy, outlining financial targets and business performance.

Tony O’Neill
Safety and Environment (4%) ••Continued strengthening of critical controls delivering an 11% decrease 3.0%
••Develop integrated and complete safety and sustainable in the Group’s TRCFR compared with 2016
development framework based on Operating Model ••Zero Level 4 and 5 environmental incidents in 2017
••Ensure critical controls for operating sites are integrated ••Top 10 Priority Unwanted Events: continued critical control monitoring
into Operating Model work management. and improvement at each operation: 86% completed
••Per-operation high-risk job risk assessments reviewed: 77% completed.
Business improvement (16%) ••Delivered $1.1 billion cost and volume improvements 16.0%
••Drive operational improvements and cost savings: ••Operating Model deployment and associated processes underway at
––$1.0 billion of EBITDA improvement all key operations
––Integrate Operating Model with business tools ••Supply Chain strategy on track and progressing to plan.
––Develop Operating Model audit process
••Develop strategy and pathway for Supply Chain systems
to be state of the art by 2020.
People (4%) ••Further progressed implementation of the functional model in 3.0%
••Implement Functional Model with associated deliverables the Technical and Sustainability function; delivery on track
••Continue to attract and retain necessary skills and ••Continued skills development and structures to support future
expertise. of the business.
Endowment projects and R&D (16%) ••5-year asset management plans in progress 14.0%
••Develop 5-year asset management plans for each site ••Asset integrity integration with operating model well advanced
••Progress Quellaveco plans to project commitment stage ••Quellaveco project studies and options progressed as scheduled, with
••Continue focus on Group exploration and milestones established for 2018
geology projects ••Step-change elevation of structural geology capabilities and outcomes
••Deliver improvements in cyber security capability in place
and performance ••Continued development of cyber security capability and performance
••Provide thought leadership in technology development. improvements
••Consistent delivery confirming the potential of future technologies
including through the FutureSmart Mining™ approach.
René Médori
Strategic development (20%) ••Further reduced net debt by $4.0 billion to $4.5 billion, through continued 19.2%
••Actions to reduce net debt to below $7 billion business operational improvements delivering an additional $1.1 billion in
••Optimise debt maturity profile and maintain liquidity levels underlying EBITDA, capital discipline leading to a $0.2 billion decrease in
••Engage with credit ratings agencies to support credit capital expenditure and working capital reduction of $0.9 billion
re-rating of Group ••Reintroduced the dividend in July 2017, based on a target payout level
••Develop and implement appropriate dividend policy of 40% of underlying earnings
••Continue to progress Group portfolio restructuring. ••Increased Group liquidity to $16.8 billion. Successful bond issuances of
$3.0 billion and early bond redemptions of $3.1 billion, coupled with
$1.9 billion of bond maturities, increased the weighted average maturity
of outstanding bonds by approximately one year to 4.4 years
••Delivered the disposal of Platinum’s Union mine and progressed with the
disposal of small Australian coal mines and Coal South Africa’s Eskom-tied
assets, as well as other smaller platinum operations.
Business improvement (12%) ••Progressed various legal matters to resolution, or near resolution, including 10.4%
••Progress resolution of critical legal matters. settlements with various revenue authorities and former employee
occupational health claims.
People (4%) ••Successfully onboarded the new finance director from 24 April 2017 and 4.0%
••Successfully transition new finance director and appoint relinquished Board responsibilities across the Group
new Group general counsel ••Supported appointment and transition of new Group general counsel
••Build finance function to support business and ••Continued the implementation of finance functional model and organisational
implementation of global best practices. structures to support future of the business.
Investor relations (4%) ••Increased shareholder engagement providing updates on the Group 3.2%
strategy, financial performance and expectations for 2017.

Critical tasks are identified in each of the performance
categories at the start of the year. These form the basis of Figure 13: Performance assessment for 2015 LTIP awards
measurement, but are overlaid with an assessment of Threshold Stretch
performance performance Actual Vesting
executive performance in the round in the relevant category. Measure (25% vesting) (100% vesting) performance outcome
The assessment for 2017 took place against a backdrop of
improved operational and financial performance through a Euromoney Global 33% 51% 21% 0%
(index TSR) (index TSR
continued focus on greater operational efficiency and Mining Index TSR + 6% p.a.)
upgrading the asset portfolio. (25% of total award)
The personal performance outcomes set out on the FTSE 100 22% 73% 21% 0%
(median TSR) (upper quartile
previous pages, combined with 98% EPS achievement and constituents TSR TSR)
the safety modifier of (3.85%), have generated overall bonus (25% of total award)
outcomes of 76.9%, 81.7%, 80.9% and 81.7%. When Group attributable 11% 15% 19% 100%
applied to the maximum bonus of 210% of salary, these ROCE
performance outcomes translate into bonuses of (50% of total award)
£2,076,655, £1,228,935, £1,365,421 and £441,740 for the
chief executive, finance director, technical director and Total outcome (% of total award)(1) 50%
former finance director, respectively. Mark Cutifani (£’000) (maximum opportunity: 350% of salary) £2,783
40% of the total bonus is payable in cash, with 60% deferred Tony O’Neill (£’000) (maximum opportunity: 300% of salary) £1,498
into Bonus Shares. Two-thirds of the Bonus Shares will vest
René Médori (£’000) (maximum opportunity: 300% of salary) £1,521
after three years, subject to continued employment; the
remaining third will vest after five years. René Médori’s 2015 LTIP vesting includes dividend equivalents and does not breach the limits under the vesting cap. Values
(1)
Governance
based on share price of £14.42; see note (1) to figure 7 for further information.
bonus will be delivered entirely in cash.
3.1.4 LTIP award vesting
In 2015, Mark Cutifani, Tony O’Neill and René Médori Figure 14: Pension for 2017
received LTIP grants of 362,275, 195,000 and 198,072 UURBS NIC paid by
conditional shares respectively, with vesting subject to: DC contribution Cash allowance contribution Company Total
(£’000) (£’000) (£’000) (£’000) (£’000)
(a) the Group’s TSR performance relative to:
(i) the Euromoney Global Mining Index; and Mark Cutifani 10 193 157 27 386
(ii) FTSE 100 constituents over the three-year period Stephen Pearce (1)
189 26 215
to 31 December 2017; and
Tony O’Neill 7 159 54 22 241
(b) Group Attributable ROCE to 31 December 2017.
René Médori(2) 77 77
Figure 13 sets out further details of the measures and the (1)
For the period between joining and year end.
Group’s performance against each, resulting in an overall (2)
For the period between the start of the year and retirement from the Board.
vesting level of 50%.
3.1.5 Pension
The pension contribution amounts in Figure 14 should be
read in conjunction with the following information:
••The amounts stated for Mark Cutifani, Stephen Pearce
and Tony O’Neill for 2017 include a cash allowance of
£192,625 (2016: £317,000), £188,828 and £158,905
(2016: £208,000) respectively
••During 2017, both Mark Cutifani and Tony O’Neill joined
the UURBS. The amounts of pension contributions
treated as having been paid into the scheme were
£156,575 and £54,448
•• For René Médori, the total amount of pension
contributions treated as having been paid into the
UURBS for his time on the Board during 2017 was
£77,239 (2016: £241,000)
••Contributions treated as being paid into the UURBS earn
a return equivalent to the Group’s pre-tax sterling nominal
cost of debt, capped at a rate determined by the
Remuneration Committee. The total return earned in
2017 was £1,480 for Mark Cutifani, £260 for Tony O’Neill,
and for René Médori £107,142 (2016: £90,000)
••As at 31 December 2017, the total balance due to
executive directors in relation to the UURBS was
£212,763. Retirement benefits can only be drawn from
the UURBS if a member has attained age 55 and has left
Group service.

3.1.6 External directorships 3.2 Other director remuneration in 2017

Executive directors are not permitted to hold external 3.2.1 Non-executive director remuneration
directorships or offices without the prior approval of Figure 15 sets out the remuneration paid to the NEDs of
the Board. If approved, they may each retain the fees the Company in 2017. Fees shown include any additional
payable from only one such appointment. fees paid in respect of chairmanships of committees or
other roles such as senior independent director.
In the year, Mark Cutifani retained fees for one external
directorship, amounting to €53,500 for the period between As disclosed in the 2016 remuneration report, the NED fees
26 May 2017 and 31 December 2017. were reviewed during 2017. This led to the Board approving
an increase in base fees of £5,000 to £85,000, with effect
René Médori retained fees amounting to £27,308 in
from 1 July 2017. The base fee will be increased by a further
respect of one external directorship.
£5,000 in July 2018. In addition, the Board approved the
introduction of committee fees, which are being phased in
between 2017 and 2019.
Figure 15: Single total figure of remuneration for non-executive directors
Benefits
Total fees Benefits in Total Total fees in kind Total
2017 kind 2017 2017 2016 2016 2016
£’000 £’000 (5) £’000 £’000 £’000 £’000
Non-executive directors
Stuart Chambers(1) 175 175
Sir John Parker (2)
583 25 608 700 29 729
Ian Ashby (3)
37 37
Nolitha Fakude(4) 63 63
Byron Grote 115 115 110 – 110
Sir Philip Hampton 145 145 140 – 140
Mphu Ramatlapeng 83 83 80 – 80
Jim Rutherford 93 93 80 – 80
Anne Stevens 90 90 80 – 80
Jack Thompson 115 115 110 – 110
(1)
Stuart Chambers was appointed as a non-executive director and chairman-designate on 1 September 2017, and chairman on 1 November 2017.
(2)
Sir John Parker resigned from the Board with effect from 31 October 2017.
(3)
Ian Ashby was appointed to the Board with effect from 25 July 2017.
(4)
Nolitha Fakude was appointed to the Board on 24 April 2017.
(5)
Benefits comprised car-related benefits and medical insurance.
3.2.2 Payments for past directors

In addition to retirement benefits, the Company continues
to provide seven former executive directors with private
medical insurance arrangements. The annual cost to
the Company is minimal. The committee continues to
meet these longstanding commitments, but no new
commitments have been made recently or will be made
in future. There were no other payments to past directors
during 2017 in respect of qualifying services.

3.3 Scheme interests granted during 2017 The value of Bonus Shares awarded to directors in
The information in this section has been subject to respect of 2017 is included in the annual performance
external audit. bonus figures, set out in Figure 10. They are also
included in Figure 17.
Figure 16 summarises the longer-term, conditional share
awards granted to executive directors during 2017.
Receipt of these awards is dependent on the Group’s
performance over 2017-2019 and to the maximum vesting
value imposed by the committee, as detailed below.
Figure 16: Summary of conditional share awards and options granted in 2017
Performance Performance Number of Face value

Type of award measure Vesting schedule period end Director Basis of award shares awarded at grant(1)
LTIP share TSR vs. 25% for TSR 31/12/2019 Mark Cutifani 300% of salary 366,606 £3,857,795
awards Euromoney equal to the Index;
Stephen Pearce 300% of salary 220,944 £2,324,994
Global Mining 100% for the Index
Index (47%) +6% pa or above Tony O’Neill 300% of salary 229,129 £2,411,124
TSR vs. 25% for TSR
FTSE 100 equal to median;
constituents 100% for 80th percentile
Governance
(23%) or above
Balanced ROCE (10%)
Scorecard 25% for 10%;
30% 100% for 20%
Cumulative attributable
free cash flow (10%)
CO2 emissions (5%)

Inhalable hazards (5%)
Non-cyclical Vesting outcome to mirror actual June 2017 Stephen Pearce Sign-on award 80,773(3)
awards(2) percentage achieved at Fortescue Metals
Group (FMG).
Anglo American relative TSR January June 2018 203,692
2017 to June 2018
– 50% of the shares: 25% will vest if the
Group’s TSR is equal to the median TSR
of the constituents of the FTSE 100, with
100% vesting if the Group’s TSR is equal
to or above the 80th percentile of the
constituents of the FTSE 100.
– the remaining 50% of the shares: 25%
will vest if the Group’s TSR is equal to
that of the Euromoney Global Mining
Index, with 100% vesting if the Group’s
TSR exceeds that of the Euromoney
Global Mining Index by 6% per annum
or more.
Aligned with 2016 Anglo American LTIP December 97,770
– subject to the 50% ROCE and 50% 2018
TSR-based conditions applicable to the
awards granted to executive directors
and other PDMRs under the LTIP in
March 2016. Any shares vesting
pursuant to this award will be subject to a
holding period of two years from vesting.
(1)
The face value of each award has been calculated using the share price at time of grant (£10.523 for the LTIP awards). As receipt of these awards is conditional on performance,
the actual value of these awards may be nil. In addition, the maximum value that may be received in the year of vesting of the awards granted from 2017 onwards is limited for
each executive director to 200% of the face value at grant. Any value over this level will be forfeit. Vesting outcomes will be disclosed in the Remuneration Report for 2019.
(2)
Conditional awards were made to Stephen Pearce on joining Anglo American, to compensate for incentives forfeited from his previous employer.
(3)
Lapsed in full in September 2017, as Fortescue Metals Group performance conditions were not met.

3.4 Total interests in shares (built up over five years), Stephen Pearce and Tony O’Neill
Figure 17 summarises the total interests of the directors to a value of two times salary. At the date of preparation
in shares of Anglo American plc as at 31 December 2017. of this report, Mark Cutifani and Tony O’Neill have net
These include beneficial and conditional interests, and shareholdings (including Bonus Shares) equal to 656%
shareholdings of their connected persons. and 515% of basic salary, respectively. Stephen Pearce
has five years from appointment to build up shareholdings
As already disclosed, Mark Cutifani is expected to hold
to the value of two times salary.
interests in shares to a value of three times basic salary
Figure 17: Shares in Anglo American plc at 31 December 2017
Conditional Conditional
Beneficial (no performance conditions) (with performance conditions) Total
BSP
Directors Bonus Shares SAYE/SIP LTIP Other
Mark Cutifani 191,439 332,309 7,911 1,722,691 – 2,254,350

Stephen Pearce(1) – – 3,057 220,944 301,462 525,463
Tony O’Neill 51,322 205,608 4,395 956,527 – 1,217,852
Stuart Chambers 425 – – – – 425
Ian Ashby – – – – – –
Nolitha Fakude 1,035 – – – – 1,035
Byron Grote(2) 30,000 – – – – 30,000
Sir Philip Hampton 22,184 – – – – 22,184
Mphu Ramatlapeng 5,663 – – – – 5,663
Jim Rutherford 26,041 – – – – 26,041
Anne Stevens 2,122 – – – – 2,122
Jack Thompson (2)
14,950 – – – – 14,950
(3)
Former directors
René Médori(4) 223,860 206,095 9,746 741,432 – 1,181,133

Sir John Parker 62,696 – – – – 62,696
(1)
The award listed as ‘Other’ is in relation to awards received on joining with performance conditions attached.
(2)
Included in the beneficial interests of Byron Grote and Jack Thompson are shares held via unsponsored ADRs, representing 0.5 ordinary shares of $0.54945 each.
(3)
For former directors, interests are shown as at their respective dates of resignation.
(4)
Included in the beneficial interests of René Médori are his wife’s interests in shares.
Differences from 31 December 2017 to 21 February 2018

Mark Cutifani’s and Stephen Pearce’s interests increased by 34 shares each from 31 December 2017 to 21 February 2018, as a result of the
acquisition of shares under the SIP. Their total holdings therefore increased to 2,254,384 and 525,497 respectively.

3.5 Statement of implementation of policy in 2018 The remaining 10% of the balanced scorecard for 2018
The Group’s policy on executive director remuneration for will be based on delivery of the sustainability strategy (7%)
2018 is summarised in the policy statements in Figure 1. and achievement of concurrent rehabilitation targets (3%).
Figure 18 summarises how that policy will be implemented The sustainability strategy target, relates to sustainability
in 2018. planning and will ensure that operations have a five year
site-level sustainability plan strategy in place by the end
The EPS performance range for 2018 is considered by
of 2020. The concurrent rehabilitation is essential to
the Board to be commercially sensitive, although it will
ensuring that the post-mining land-use, as agreed with
be disclosed in the 2018 remuneration report. Further details
our stakeholders, is achieved. The target is based on 100%
of the individual performance targets for 2018 bonuses will
of planned rehabilitation being achieved for open-cast
also be included in the 2018 remuneration report.
mining operations.
The financial elements of the balanced scorecard for the
The three-year cumulative attributable free cash flow
2018 LTIP awards will remain the same as 2017. The value
target within the LTIP is considered by the Board
that may be derived on vesting of the awards will, as in 2017,
to be commercially sensitive; disclosing it would enable
be limited to 200% of their face value on grant. ROCE (10%)
competitors to derive information as to our detailed business
has again been selected to maintain focus on disciplined
plan. The actual targets, along with the outcomes, will be
capital allocation. A free cash flow target (10%) has also
disclosed in the 2020 remuneration report. The definition
been included to continue to ensure linkage between
of attributable free cash flow can be found on page 196.
management’s remuneration outcomes and the Group’s
goal of reducing net debt through cash generation, thereby
maintaining the Group’s net debt/EBITDA ratio below 1.5.
Governance
Figure 18: Summary of key remuneration aspects in 2018
Performance measure 1, Performance measure 2,

Element weighting and component detail weighting and component detail Director Level
Basic salary – – Mark Cutifani £1,318,082

(2.5% increase)
Stephen Pearce £794,375 (2.5% increase)
Tony O’Neill £823,802 (2.5% increase)
Annual EPS (50%) Individual objectives and
bonus safety modifier (50%) Mark Cutifani 210% of salary
Half on performance at
outturn prices and FX and Personal and strategic objectives supporting
half on performance at fixed the Group’s delivery on projects, business Stephen Pearce 210% of salary
prices and FX improvement, capital allocation, commercial
activities, employee development and
stakeholder engagement, subject to the Tony O’Neill 210% of salary
application of a safety modifier
Long-Term TSR (70%) Balanced Scorecard (30%) Mark Cutifani 300% of salary
Incentive TSR vs. Euromoney Global ROCE (10%) Stephen Pearce 300% of salary
Plan (LTIP) Mining Index (47%) 25% for 13%
Tony O’Neill 300% of salary
25% for TSR equal to Index 100% for 23%
100% for Index +6% pa Cumulative attributable free cash flow (10%)
or above
Sustainability strategy (7%)
TSR vs. FTSE 100 (23%) All operations to have a five-year site-level
25% for TSR equal to median sustainability strategy in place by the end of
100% for 80th percentile 2020, meeting Group requirements as defined
or above and assessed by the Sustainability Strategy
Steering committee
Concurrent rehabilitation (3%)
100% of planned rehabilitation to be achieved
for open-cast mining operations.

3.5.1 Outstanding LTIP awards Cynthia Carroll’s remuneration levels in 2011 also reflect
As explained in the 2016 remuneration report, the record profits and strong EPS performance for the year
committee has imposed a limit on the value that can be in addition to the increase in value of the LTIP awards that
delivered on vesting for recent awards. The delivered value vested at the end of 2011 – when granted, the Group’s share
for the awards granted in 2015 and 2016 (the 2014 awards price was £12.61; the share price at vesting was £26.00.
lapsed in full) is limited to 100% of the total face value
The vesting levels of long term incentives from 2012
(number of shares granted multiplied by share price on
have been much lower, reflecting, in part, the impact of
grant) of the awards granted in 2014, 2015 and 2016. The
the severe decline in commodity prices on earnings and
value that can be received from awards granted from 2017
the returns delivered to shareholders.
onwards is limited to twice the face value at grant.
Mark Cutifani’s remuneration levels in 2013 and 2014
3.6 Remuneration disclosures
are not reflective of his underlying remuneration, given
3.6.1 Nine-year remuneration and returns
that he received a compensatory share award in 2013
Figure 19 shows the Group’s TSR performance against the
and compensation for tax on relocation benefits in
performance of the FTSE 100 Index from 1 January 2008 to
2014. The impact of longer term incentives was only
31 December 2017.
realised in 2015 as a consequence of the vesting of the
The FTSE 100 Index was chosen as being a broad equity 2013 LTIP award.
market index which includes companies of a comparable
size and complexity to Anglo American.
TSR is calculated in US dollars, and assumes all dividends Figure 19: Nine-year TSR performance
are reinvested. The TSR level shown as at 31 December 300
each year is the average of the closing daily TSR levels for
Value of a hypothetical $100 investment

the five-day period up to and including that date. 250
Figure 20 shows the total remuneration earned by the

200
incumbent chief executive over the same nine-year period,
along with the proportion of maximum opportunity earned
150
in relation to each type of incentive. The total amounts are
based on the same methodology as for Figure 7. 100
For the period 2010 to 2011, the TSR performance of the

Company, and the remuneration received by Cynthia Carroll 50
as chief executive, demonstrates that this was a period of

strong operational performance and high commodity 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
prices. These led to a doubling of profits and almost a
doubling of underlying EPS in 2010. Source: Datastream Return Index
Figure 20: Chief executive’s remuneration
31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

Financial year ending 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cynthia Carroll
Total remuneration
(single figure, £’000) 4,379 4,235 8,113 3,203 1,462 – – – –
Annual bonus (% of maximum) 99% 88% 94% 35% 67% – – – –
LTIP (% of maximum) 61% 50% 96% 50% 28% – – – –
BSP Enhancement Shares
(% of maximum) 0% 0% 100% 0% 0% – – – –
Mark Cutifani
Total remuneration
(single figure, £’000) – – – – 5,305 3,725 3,462 3,996 6,693
Annual bonus (% of maximum) – – – – 65% 60% 36.5% 87.5% 76.9%
LTIP (% of maximum) – – – – – – 50% – 50%

3.6.2 Change in the chief executive’s remuneration 3.6.3 Distribution statement for 2017
in 2017 relative to London employees Figure 22 sets out the total expenditure on employee
Figure 21 sets out the chief executive’s basic salary, reward over 2017, compared to profit generated by
benefits and annual bonus amounts for 2017 and the the Company and the dividends received by investors.
year-on-year change. We show the average change in each Underlying earnings are shown, as this is one of the Group’s
element for London employees below GMC level, which is key measures of performance, while employee numbers
considered to be the most relevant employee comparator help put the payroll costs of employees into context.
group given the Group-wide nature of roles performed at
the corporate head office.
Figure 21: Change in chief executive’s remuneration compared to UK employees
Salary Benefits Bonus
Chief executive £’000 1,286 34 2,077

% change 2.0 (4.9) (10.36)
London employees (1)
Average
4.49 7.87 30.15
% change
(1)
Benefits for London employees comprise pension and car allowances (where applicable), these being the most material.
Governance
Figure 22: Distribution statement for 2017
Distribution statement 2017 2016
Underlying earnings (1)

$m 3,272 2,210
% change 48 167
Dividends payable for year to Company shareholders $m 618 –
% change 100 (100)
Dividends payable for year to non-controlling interests $m 672 40
% change 1,580 (79)
Payroll costs for all employees $m 3,370 3,738
% change (10) (16)
Employee numbers ’000 69 80
% change (14) (12)
(1)
Please see page 195 for details on how underlying earnings are calculated.
Figure 23: Response to 2017 AGM shareholder voting
Number of votes
Vote For Against Abstain Company response to issues raised
2016 897,721,384 46,760,152 1,245,949 Shareholders were generally

Implementation (95.05%) (4.95%) highly supportive of the new policy
report proposed at the 2017 AGM.
875,719,701 66,854,666 3,153,118 Shareholders’ views differ
2017 (92.91%) (7.09%) and the committee engaged
Remuneration extensively with major investors
policy to understand their concerns.

3.7 Remuneration committee in 2017

3.7.1 Membership
The committee comprised the non-executive directors
listed on page 92 on 31 December 2017.
3.7.2 External advisers to the committee
Figure 24 details the external advisers to the committee
and the fees paid for services provided during 2017.
The fees are charged in accordance with the terms and
conditions set out in each relevant engagement letter.
PwC is a signatory, and adheres to, the Code of Conduct
for Remuneration Consultants (which can be found at
www.remunerationconsultantsgroup.com). In addition,
the committee chairman has regular direct dialogue with
advisers. For these reasons, the committee considers
that the advice it receives is independent.
Figure 24: External advisers and fees
Other services provided Fees for committee

Advisers to the Company assistance
Pricewaterhouse Appointed by the Company, with Investment advice, actuarial and £50,623
Coopers LLP the agreement of the committee, audit work for various pension
(PwC) to support and advise on the Group’s schemes; advice on internal audit
incentive arrangements, in addition projects; taxation, payroll and
to the provision of specialist executive compensation advice.
valuation services and market
remuneration data.
Deloitte LLP In its capacity as Group auditor, n/a
(Deloitte) Deloitte undertakes an audit of
sections 3 and 4 of the remuneration
report annually. However, it provides
no advice to the committee.
Note: Certain overseas operations within the Group are also provided with audit-related services from Deloitte’s and PwC’s worldwide member firms.
APPROVAL
This directors’ remuneration report has been approved by
the Board of directors of Anglo American plc.
Signed on behalf of the Board of directors.
Sir Philip Hampton

Chairman, Remuneration Committee
21 February 2018

GENDER PAY It is this imbalance between women and men at the most senior
levels which is driving our gender pay gap; we are confident that
Summary
our remuneration structures in themselves do not favour any one
The UK Gender Pay Gap reporting requirement, designed to
group. This is borne out by the fact that the proportion of women
provide public transparency in relation to the difference between
who received a bonus during 2017 was almost the same as that
men’s and women’s earnings within a company, came into effect
of men (and the slight difference can be explained by non-gender-
on 6 April 2017. As a UK registered company that employed, at the
related factors). The Board and GMC are determined to address
snapshot date of 5 April 2017, 258 people in the UK, Anglo
the wider gender imbalance.
American Services (UK) Limited is required to disclose the
specifically defined information by 4 April 2018. Anglo American How is the gender pay gap being addressed?
disclosed this information on 5 March 2018, and the full disclosure The leadership teams recognise that we are still at the early stages
can be found on the Anglo American website. The following of our work towards greater inclusion and diversity in all its forms,
provides a summary of the position and the actions the Board and and more information about the work being done in this regard can
GMC are taking to address it. be found on pages 21-24 of the Sustainability Report.
Equal pay at Anglo American We are taking a series of practical steps to address the gender
Equal pay legislation has been in place for many years in the UK, pay imbalance, including targeted changes to our recruitment,
giving men and women the legal right to be paid equally for doing succession planning and talent management processes.
equal work. We are confident that we comply fully with this
Remuneration committee’s commitment
legislation.
Reducing the gender imbalance, and therefore the gender pay
Anglo American’s hourly pay gap gap, will of course take time, and the gap is unlikely to reduce
The key measure that is required to be reported, and which has significantly in the short term. However, we are confident that as
Governance
been the focus of much public attention, is the hourly pay gap. we progress our inclusion and diversity work, the more our annual
Anglo American Services (UK) Limited’s gap is 55% on a mean gender pay gap will narrow. The Remuneration committee’s
basis, and 49% on a median basis. responsibility is to continue to critically review our pay structures to
make sure that they support inclusion and diversity for our whole
We recognise that this hourly pay gap is sizeable and is higher
population; we take this responsibility very seriously.
than that of many other global companies. The gap is primarily a
For more information on the UK gender pay gap, visit
function of the disproportionate number of men in the most senior www.angloamerican.com
management roles in the corporate head office, as shown by the
fact that while women make up 42% of Anglo American’s UK roles,
they occupy just 14% of the highest paid quartile:
Percentage Percentage
males in females in
Quartile Quartile
Lower Quartile 21.54 78.46

Lower Middle Quartile 60.94 39.06
Upper Middle Quartile 64.62 35.38
Upper Quartile 85.94 14.06

GOVERNANCE STATEMENT OF DIRECTORS’ RESPONSIBILITIES
STATEMENT OF DIRECTORS’
RESPONSIBILITIES
The directors are responsible for preparing the

Annual Report and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial In preparing the Group financial statements, IAS 1
statements for each financial year. The directors are requires that directors:
required to prepare the Group financial statements in
••properly select and apply accounting policies
accordance with International Financial Reporting
Standards (IFRS), as adopted by the European Union and ••present information, including accounting policies, in a
Article 4 of the IAS regulation, and have elected to prepare manner that provides relevant, reliable, comparable and
the parent company financial statements in accordance with understandable information
Financial Reporting Standard 101 ‘Reduced Disclosure
••provide additional disclosures when compliance with the
Framework’. The directors must not approve the accounts
specific requirements in IFRS is insufficient to enable
unless they are satisfied that they give a true and fair view of
users to understand the impact of particular transactions,
the state of affairs of the Company and of the profit or loss of
other events and conditions on the entity’s financial
the Company for that period.
position and financial performance
In preparing the parent company financial statements, the
••make an assessment of the Group’s ability to continue
directors are required to:
as a going concern.
••select suitable accounting policies and then apply them
The directors are responsible for keeping adequate
consistently
accounting records that are sufficient to show and explain
••make judgements and accounting estimates that are the Group’s transactions, disclose with reasonable accuracy
reasonable and prudent at any time the financial position of the Company and enable
them to ensure that the financial statements comply with
••state whether Financial Reporting Standard 101 ‘Reduced
the Companies Act 2006. They are also responsible for
Disclosure Framework’ has been followed, subject to any
safeguarding the assets of the Company and hence for
material departures disclosed and explained in the
taking reasonable steps for the prevention and detection
financial statements
of fraud and other irregularities.
••prepare the financial statements on the going concern
The directors are responsible for the maintenance and
basis unless it is inappropriate to presume that the
integrity of the corporate and financial information included
Company will continue in business.
on the Group’s website. Legislation in the UK governing the
preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
RESPONSIBILITY STATEMENT
for the year ended 31 December 2017
We confirm that to the best of our knowledge:

(a) the financial statements, prepared in accordance with (c) the Annual Report and financial statements, taken as
the applicable set of accounting standards, give a true a whole, are fair, balanced and understandable and
and fair view of the assets, liabilities, financial position provide the information necessary for shareholders
and profit of Anglo American plc and the undertakings to assess the Group’s performance, business model
included in the consolidation taken as a whole and strategy.
(b) the strategic report includes a fair review of the By order of the Board
development and performance of the business and the
position of Anglo American plc and the undertakings Mark Cutifani Stephen Pearce
included in the consolidation taken as a whole, together Chief Executive Finance Director
with a description of the principal risks and uncertainties
that they face 21 February 2018

FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION
CONTENTS
Independent auditor’s report to the members of Anglo American plc 118
Primary statements
Consolidated income statement 122
Consolidated statement of comprehensive income 122
Consolidated balance sheet 123
Consolidated cash flow statement 124
Consolidated statement of changes in equity 125
Notes to the financial statements

Financial performance
1 Operating profit from subsidiaries and joint operations 126
2 Financial performance by segment 127
3 Earnings per share 128
4 Net finance costs 129
5 Income tax expense 130
6 Dividends 131
Significant items
7 Significant accounting matters 132
8 Special items and remeasurements 134
Capital base
9 Capital by segment 136
10 Intangible assets 137
11 Property, plant and equipment 137
12 Capital expenditure 138
13 Investments in associates and joint ventures 139
14 Financial asset investments 140
15 Provisions for liabilities and charges 140
16 Deferred tax 141
Financial statements
Working capital
17 Inventories 143
18 Trade and other receivables 143
19 Trade and other payables 144
Net debt and financial risk management
20 Net debt 145
21 Borrowings 146
22 Financial instruments and derivatives 147
23 Financial risk management 150
Equity
24 Called-up share capital and consolidated equity analysis 153
25 Non-controlling interests 154
Employees
26 Employee numbers and costs 155
27 Retirement benefits 156
28 Share-based payments 160
Unrecognised items and uncertain events
29 Events occurring after end of year 161
30 Commitments 161
31 Contingent liabilities 161
Group structure
32 Assets and liabilities held for sale 162
33 Disposals 162
34 Basis of consolidation 163
35 Related undertakings of the group 165
Other items
36 Related party transactions 173
37 Auditor’s remuneration 173
38 Accounting policies 174
Financial statements of the Parent Company 181
Summary by operation 184
Key financial data 185
Exchange rates and commodity prices 186
Anglo American plc Annual Report 2017 117

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF ANGLO AMERICAN PLC
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Conclusions relating to going concern, principal risks and
Opinion viability statement
Going concern
In our opinion:
We have reviewed the directors’ statement in note 38 to the financial
••the financial statements give a true and fair view of the state of the Group’s statements about whether they considered it appropriate to adopt the going
and of the Parent Company’s affairs as at 31 December 2017 and of the concern basis of accounting in preparing them and their identification of any
Group’s profit for the year then ended; material uncertainties to the Group’s and Company’s ability to continue to do
••the Group financial statements have been properly prepared in accordance so over a period of at least twelve months from the date of approval of the
with International Financial Reporting Standards (IFRSs) as adopted by the financial statements.
European Union; We are required to state whether we have anything material to add or draw
••the Parent Company financial statements have been properly prepared in attention to in relation to that statement required by Listing Rule 9.8.6R(3)
accordance with United Kingdom Generally Accepted Accounting Practice, and report if the statement is materially inconsistent with our knowledge
including Financial Reporting Standard 101 Reduced Disclosure obtained in the audit.
Framework; and We confirm that we have nothing material to add or draw attention to
••the financial statements have been prepared in accordance with the in respect of these matters.
requirements of the Companies Act 2006 and, as regards the Group Principal risks and viability statement
financial statements, Article 4 of the IAS Regulation. Based solely on reading the directors’ statements and considering whether
We have audited the financial statements of Anglo American plc (the ‘Parent they were consistent with the knowledge we obtained in the course of the
company’) and its subsidiaries (the ‘Group’) which comprise: audit, including the knowledge obtained in the evaluation of the directors’
assessment of the Group’s and the Company’s ability to continue as a going
••the Consolidated income statement;
concern, we are required to state whether we have anything material to add
••the Consolidated statement of comprehensive income; or draw attention to in relation to:
••the Consolidated balance sheet; ••the disclosures on pages 41-45 that describe the principal risks and explain
••the Consolidated cash flow statement; how they are being managed or mitigated;
••the Consolidated statement of changes in equity; ••the directors’ confirmation on page 41 that they have carried out a robust
assessment of the principal risks facing the Group, including those that
••the Accounting policies; would threaten its business model, future performance, solvency or
••the related notes 1 to 38; and liquidity; or
••the Balance sheet of the Parent Company and related information. ••the directors’ explanation on page 41 as to how they have assessed the
prospects of the Group, over what period they have done so and why they
The financial reporting framework that has been applied in their preparation
consider that period to be appropriate, and their statement as to whether
is applicable law and IFRSs as adopted by the European Union. The financial
they have a reasonable expectation that the Group will be able to continue
reporting framework that has been applied in the preparation of the Parent
in operation and meet its liabilities as they fall due over the period of their
Company financial statements is applicable law and United Kingdom
assessment, including any related disclosures drawing attention to any
Accounting Standards, including FRS 101 Reduced Disclosure Framework
necessary qualifications or assumptions.
(United Kingdom Generally Accepted Accounting Practice).
We are also required to report whether the directors’ statement relating to
Basis for opinion the prospects of the Group required by Listing Rule 9.8.6R(3) is materially
We conducted our audit in accordance with International Standards on inconsistent with our knowledge obtained in the audit.
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
We confirm that we have nothing material to report, add or draw
those standards are further described in the auditor’s responsibilities for
attention to in respect of these matters.
the audit of the financial statements section of our report.
We are independent of the Group and the Parent Company in accordance Key audit matters
with the ethical requirements that are relevant to our audit of the financial Key audit matters are those matters that, in our professional judgement,
statements in the UK, including the FRC’s Ethical Standard as applied to listed were of most significance in our audit of the financial statements of the
public interest entities, and we have fulfilled our other ethical responsibilities current period and include the most significant assessed risks of material
in accordance with these requirements. We confirm that non-audit services misstatement (whether or not due to fraud) that we identified. These matters
prohibited by the FRC’s Ethical Standard were not provided to the Group or included those which had the greatest effect on: the overall audit strategy;
the Parent Company. the allocation of resources in the audit; and directing the efforts of the
engagement team.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Our assessment of the Group’s key audit matters is consistent with 2016
except for Corporate Asset Transactions which is no longer considered a key
audit matter as a result of the significant reduction in the scale of the Group’s
planned and completed disposals during 2017.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

Impairment
Refer to the Audit Committee report on pages 80-87 and the disclosures in notes 7 and 8 on pages 132-135.
Key audit matter – As a consequence of licensing and operational developments during the year and continued volatility in commodity prices and
description foreign exchange rates, the assessment of the recoverable amount of operating assets and development projects remains a
key judgement.
Management assessed whether indicators of impairment or impairment reversal exist for assets in accordance with IAS 36
‘Impairment of Assets’. During the year, this included El Soldado and the Sishen mine in South Africa (where impairment reversals
of $194 million and $468 million have been recorded during the year) as well as other specific assets including Minas-Rio that
experienced licensing delays during the year and the coal operations in Australia where impairments had previously been
recorded.
How the scope of our We reviewed management’s assessment as to whether indicators of impairment or impairment reversal exist. Where such
audit responded indicators were identified we obtained copies of the valuation models used to determine the value in use or fair value less costs
to the key audit matter of disposal of the relevant asset.
We challenged the assumptions made by management in relation to these models, including the discount rate used, the
commodity prices, capital expenditure and operating cost forecasts and the expected production profiles, by comparison to
recent analyst forecast commodity price data, reference to third party documentation where available, utilisation of Deloitte
valuation specialists, review of Ore Reserve and Mineral Resource reports, consultation with operational management and
consideration of sensitivity analyses.
We assessed whether the assumptions had been determined and applied on a consistent basis across the Group.
Key observations We found that the assumptions used were reasonable and had been determined and applied on a consistent basis across the
Group. No additional impairments or impairment reversals were identified from the work performed.
We found that the impairment reversal recorded at the Sishen mine in South Africa was appropriate, primarily due to the
increased forecast production in the updated Life of Mine Plan and continued improvements in the operational performance of
the mine.
Taxation
Refer to the Audit Committee report on pages 80-87 and the disclosures in notes 5 and 16 on pages 130-131 and 141-142 respectively.
Key audit matter – The recognition and measurement of certain of the Group’s deferred tax assets and liabilities requires management judgement
description and is a key area of audit effort due to the complexity of tax regulations across the jurisdictions where the Group operates.
At 31 December 2017, the deferred tax assets recognised by the Group totalled $1,191 million, with the most significant asset
related to Minas-Rio. Management has performed an assessment of the forecast taxable profits against which the Group’s tax
losses and other tax attributes can be offset in future periods.
The deferred tax liabilities recognised across the Group at 31 December 2017 totalled $4,188 million.
How the scope of our Through the close involvement of our tax specialist teams at both a Group and business unit level we assessed the appropriateness
audit responded of the deferred tax assets and liabilities recognised by the Group through discussions with the Group’s taxation department and
to the key audit matter review of supporting documentation and calculations.
In relation to assessing the recoverability of deferred tax assets, we reviewed and challenged the basis and underlying assumptions
in the supporting taxable profit forecasts in order to assess the appropriateness of the assets recognised. In particular, we
challenged management’s assessment that, in measuring the Minas-Rio deferred tax asset, taxable profit forecasts considered
probable should be limited by reference to the criteria set out in IAS 12 ‘Income taxes’.
In relation to deferred tax liabilities recognised across the Group, we tested the relevant deferred tax calculations and challenged
management’s underlying assumptions.
Key observations We are satisfied that deferred tax assets and liabilities are properly recognised.
Special items and remeasurements

Refer to the Audit Committee report on pages 80-87 and the disclosures in note 8 on pages 134-135.
Key audit matter – The Group disclosed ‘Special items and remeasurements’ in the Consolidated income statement. These items primarily relate to
description impairment reversals, adjustments arising on the sale or acquisition of operations, adjustments relating to former operations and
financing special items and remeasurements which are further defined in note 8 to the financial statements. The assessment of the
appropriateness of items disclosed within ‘Special items and remeasurements’ is a key judgement because of their impact upon
the reporting of the underlying financial performance achieved by the Group and is therefore an area where potential management
bias could occur. In addition, management considered the guidance from the European Securities and Market Authority (ESMA) in
making this assessment.
How the scope of our In the context of our audit of the overall income statement we considered and challenged each item disclosed within ‘Special items
audit responded and remeasurements’ with reference to the guidance from ESMA.
to the key audit matter We determined whether such categorisation is appropriate and consistent with the Group’s stated policy and past practice for
recognition of such items, and whether, taken as a whole, the income statement is fair and balanced in its presentation.
Key observations We are satisfied that all items included within ‘Special items and remeasurements’ display no indication of management bias in the
categorisation and that where relevant the categorisation was consistent with prior practice.
We consider that the related disclosures are also appropriate.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANGLO AMERICAN PLC
Our application of materiality The Senior Statutory Auditor and/or a senior member of the Group audit team
We define materiality as the magnitude of misstatement in the financial visits the principal location of each significant business unit at least once
statements that makes it probable that the economic decisions of a every year and key operational assets on a rotating basis.
reasonably knowledgeable person would be changed or influenced. We use The Parent Company is located in the United Kingdom and audited directly by
materiality both in planning the scope of our audit work and in evaluating the the Group audit team.
results of our work.
Based on our professional judgement, we determined materiality for the Group revenue
financial statements as a whole as follows: %
Materiality Group Full audit scope 95

$200 million (2016: $200 million) Specified procedures 5
Parent Company
$76 million (2016: $67.5 million) Underlying EBIT
%
Basis for Group Full audit scope 92
determining We have considered both asset and profit bases in the
Specified procedures 8
materiality determination of materiality. $200 million equates to 0.7%
(2016: 0.8%) of net assets and 5.8% (2016: 6.2%) of
normalised three year pre-tax profit before special items Net assets
and remeasurements. %
Full audit scope 97
The use of a combination of bases is consistent with our
Specified procedures 3
approach in 2016.
Parent Company
The Parent Company materiality represents below
1% (2016: below 1%) of shareholders’ equity. When Other information
determining this materiality, we also considered the The directors are responsible for the other information. The other information
appropriateness of this materiality for the consolidation comprises the information included in the Annual Report other than the
of this set of financial statements to the Group’s results. financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information
Rationale Group
and, except to the extent otherwise explicitly stated in our report, we do not
for the Given the continued volatility in commodity prices and
express any form of assurance conclusion thereon.
benchmark the cyclical nature of the mining industry we believe that
applied incorporating balance sheet metrics in our assessment In connection with our audit of the financial statements, our responsibility
in addition to pre-tax profit before special items and is to read the other information and, in doing so, consider whether the other
remeasurements is a more appropriate approach as it information is materially inconsistent with the financial statements or our
reflects the capital invested, the changes in production, knowledge obtained in the audit or otherwise appears to be materially
the volume of commodities sold and the scale of the misstated.
Group’s operations. If we identify such material inconsistencies or apparent material
Parent Company misstatements, we are required to determine whether there is a material
Due to the Parent Company’s primary role as a holding misstatement in the financial statements or a material misstatement of the
company, owning investments in other Group entities, other information. If, based on the work we have performed, we conclude that
shareholders’ equity is the key metric driving shareholder there is a material misstatement of this other information, we are required to
value. As such we considered shareholders’ equity the report that fact.
most appropriate benchmark to determine the Parent In this context, matters that we are specifically required to report to you as
Company materiality. uncorrected material misstatements of the other information include where
we conclude that:
We agreed with the Audit Committee that we would report to the Committee
••Fair, balanced and understandable – the statement given by the directors
all audit differences in excess of $10 million (2016: $10 million) for the Group
that they consider the Annual Report and financial statements taken as a
and $3.8 million (2016: $3.4 million) for the Parent Company, as well as
whole is fair, balanced and understandable and provides the information
differences below that threshold that, in our view, warranted reporting on
necessary for shareholders to assess the Group’s position and
qualitative grounds. We also report to the Audit Committee on disclosure
performance, business model and strategy, is materially inconsistent with
matters that we identified when assessing the overall presentation of the
our knowledge obtained in the audit; or
financial statements.
••Audit Committee reporting – the section describing the work of the Audit
An overview of the scope of our audit Committee does not appropriately address matters communicated by us
Our audit was scoped by obtaining an understanding of the Group, the Parent to the Audit Committee; or
Company and their environment, including internal control, and assessing the
••Directors’ statement of compliance with the UK Corporate Governance
risks of material misstatement.
Code – the parts of the directors’ statement required under the Listing
All business units were subject to a full scope audit with the exception of Rules relating to the Company’s compliance with the UK Corporate
Manganese and Nickel where specific procedures were performed. This Governance Code containing provisions specified for review by the auditor
represents a change from 2016 where Nickel had been subject to full audit in accordance with Listing Rule 9.8.10R(2) do not properly disclose a
scope procedures. Our approach in 2017 has been designed to focus on the departure from a relevant provision of the UK Corporate Governance Code.
key audit matters identified within that business unit and to perform
We have nothing to report in respect of these matters.
appropriate procedures on the rest of the business unit’s financial information
noting its financial significance in the context of the Group as a whole.
The work performed by the component audit teams at each business unit is
guided by the Group audit team and is executed at levels of materiality
applicable to each individual entity which were lower than Group materiality
and ranged from $90 million to $110 million (2016: $90 million to $110 million).

Responsibilities of directors Matters on which we are required to report by exception
As explained more fully in the directors’ responsibilities statement, the Adequacy of explanations received and accounting records
directors are responsible for the preparation of the financial statements and Under the Companies Act 2006 we are required to report to you if, in our
for being satisfied that they give a true and fair view, and for such internal opinion:
control as the directors determine is necessary to enable the preparation of ••we have not received all the information and explanations we require for
financial statements that are free from material misstatement, whether due our audit; or
to fraud or error.
••adequate accounting records have not been kept by the Parent Company,
In preparing the financial statements, the directors are responsible for or returns adequate for our audit have not been received from branches
assessing the Group’s and the Parent Company’s ability to continue as a not visited by us; or
going concern, disclosing as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend ••the Parent Company financial statements are not in agreement with the
to liquidate the Group or the Parent Company or to cease operations, or have accounting records and returns.
no realistic alternative but to do so. We have nothing to report in respect of these matters.
Auditor’s responsibilities for the audit of the Directors’ remuneration

financial statements Under the Companies Act 2006 we are also required to report if in our opinion
Our objectives are to obtain reasonable assurance about whether the certain disclosures of directors’ remuneration have not been made or the part
financial statements as a whole are free from material misstatement, whether of the directors’ remuneration report to be audited is not in agreement with
due to fraud or error, and to issue an auditor’s report that includes our opinion. the accounting records and returns.
Reasonable assurance is a high level of assurance, but is not a guarantee that We have nothing to report in respect of these matters.
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and Other matters
are considered material if, individually or in the aggregate, they could Auditor tenure
reasonably be expected to influence the economic decisions of users taken Following the recommendation of the Audit Committee, Deloitte and Touche
on the basis of these financial statements. were appointed by the shareholders on 24 May 1999 to audit the financial
statements for the year ended 31 December 1999 and subsequent financial
A further description of our responsibilities for the audit of the financial
periods. The period of total uninterrupted engagement including previous
statements is located on the Financial Reporting Council’s website at:
renewals and reappointments of the firm is 18 years, covering the years ended
www.frc.org.uk/auditorsresponsibilities. This description forms part of our
31 December 1999 to 31 December 2017.
auditor’s report.
Consistency of the audit report with the additional report to
Use of our report the Audit Committee
This report is made solely to the Company’s members, as a body, in Our audit opinion is consistent with the additional report to the Audit
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit Committee we are required to provide in accordance with ISAs (UK).
work has been undertaken so that we might state to the Company’s members
those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company’s
members as a body, for our audit work, for this report, or for the opinions we
have formed.
Kari Hale, ACA (Senior Statutory Auditor)
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS For and on behalf of Deloitte LLP
Statutory Auditor
Opinions on other matters prescribed by the
London, UK
Companies Act 2006
21 February 2018
In our opinion the part of the directors’ remuneration report to be audited
has been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
••the information given in the strategic report and the directors’ report for the
financial year for which the financial statements are prepared is consistent
with the financial statements; and
••the strategic report and the directors’ report have been prepared in
accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent
Company and their environment obtained in the course of the audit, we have
not identified any material misstatements in the strategic report or the
directors’ report.

FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION PRIMARY STATEMENTS
CONSOLIDATED INCOME STATEMENT

2017 2016
Before special Special items and Before special Special items and
items and remeasurements items and remeasurements
US$ million Note remeasurements (note 8) Total remeasurements (note 8) Total
Revenue 2 26,243 – 26,243 21,378 – 21,378
Operating costs (21,001) 287 (20,714) (18,047) (1,665) (19,712)
Operating profit 1, 2 5,242 287 5,529 3,331 (1,665) 1,666
Non-operating special items 8 – (5) (5) – 1,203 1,203
Net income from associates and
joint ventures 13 577 (10) 567 271 7 278
Profit before net finance costs and tax 5,819 272 6,091 3,602 (455) 3,147
Investment income 268 – 268 186 120 306
Interest expense (694) (99) (793) (490) (45) (535)
Other net financing losses (47) (14) (61) 95 (389) (294)
Net finance costs 4 (473) (113) (586) (209) (314) (523)
Profit before tax 5,346 159 5,505 3,393 (769) 2,624
Income tax expense 5 (1,324) (122) (1,446) (742) 44 (698)
Profit for the financial year 4,022 37 4,059 2,651 (725) 1,926
Attributable to:
Non-controlling interests 25 750 143 893 441 (109) 332
Equity shareholders of the Company 3,272 (106) 3,166 2,210 (616) 1,594
Earnings per share (US$)

Basic 3 2.57 (0.09) 2.48 1.72 (0.48) 1.24
Diluted 3 2.53 (0.08) 2.45 1.70 (0.47) 1.23
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

US$ million 2017 2016

Profit for the financial year 4,059 1,926
Items that will not be reclassified to the income statement (net of tax)(1)
Remeasurement of net retirement benefit obligation 204 (179)
Items that have been or may subsequently be reclassified to the income statement (net of tax)(1)
Net exchange differences:
Net gain (including associates and joint ventures) 1,725 1,150
Cumulative gain transferred to the income statement on disposal of foreign operations (81) (50)
Revaluation of available for sale investments:
Net revaluation gain 23 122
Cumulative revaluation gain transferred to the income statement on disposal (43) (151)
Revaluation of cash flow hedges:
Transferred to the income statement – (11)
Share of associates' and joint ventures' other comprehensive income (1) –
Other comprehensive income for the financial year (net of tax) 1,827 881
Total comprehensive income for the financial year (net of tax) 5,886 2,807
Attributable to:
Non-controlling interests 1,240 514
Equity shareholders of the Company 4,646 2,293
(1)
Tax amounts are shown in note 5C.

CONSOLIDATED BALANCE SHEET

as at 31 December 2017
US$ million Note 2017 2016

ASSETS
Non-current assets
Intangible assets 10 3,323 3,217
Property, plant and equipment 11 30,643 28,719
Environmental rehabilitation trusts 15 421 353
Investments in associates and joint ventures 13 1,956 1,974
Financial asset investments 14 561 835
Trade and other receivables 18 937 812
Deferred tax assets 16 1,191 1,013
Derivative financial assets 22 309 484
Other non-current assets 487 293
Total non-current assets 39,828 37,700
Current assets
Inventories 17 4,441 3,727
Trade and other receivables 18 2,136 2,232
Current tax assets 146 330
Derivative financial assets 22 81 109
Cash and cash equivalents 20 7,800 6,051
Total current assets 14,604 12,449
Assets classified as held for sale 32 129 –
Total assets 54,561 50,149
LIABILITIES
Current liabilities
Trade and other payables 19 (4,501) (3,384)
Short term borrowings 20, 21 (1,351) (1,806)
Provisions for liabilities and charges 15 (562) (621)
Current tax liabilities (601) (442)
Derivative financial liabilities 22 (336) (272)
Total current liabilities (7,351) (6,525)
Non-current liabilities
Trade and other payables 19 (89) (116)
Medium and long term borrowings 20, 21 (10,620) (11,363)
Retirement benefit obligations 27 (695) (778)
Deferred tax liabilities 16 (4,188) (3,520)
Derivative financial liabilities 22 (460) (1,603)
Provisions for liabilities and charges 15 (2,235) (1,919)
Total non-current liabilities (18,287) (19,299)
Liabilities directly associated with assets classified as held for sale 32 (41) –
Total liabilities (25,679) (25,824)
Net assets 28,882 24,325
EQUITY
Called-up share capital 24 772 772
Share premium account 4,358 4,358
Own shares 24 (6,191) (6,090)
Other reserves (8,702) (10,000)
Retained earnings 32,735 29,976
Equity attributable to equity shareholders of the Company 22,972 19,016
Non-controlling interests 25 5,910 5,309
Total equity 28,882 24,325
The financial statements of Anglo American plc, registered number 03564138, were approved by the Board of directors on 21 February 2018 and signed on its
behalf by:
Mark Cutifani Stephen Pearce

Chief Executive Finance Director

CONSOLIDATED CASH FLOW STATEMENT


Cash flows from operating activities
Profit before tax 5,505 2,624
Net finance costs including financing special items and remeasurements 586 523
Net income from associates and joint ventures (567) (278)
Non-operating special items 8 5 (1,203)
Operating profit 1 5,529 1,666
Operating special items and remeasurements 8 (287) 1,665
Cash element of special items (102) (144)
Depreciation and amortisation 1 2,390 2,138
Share-based payment charges 180 174
Decrease in provisions and net retirement benefit obligations (311) (139)
(Increase)/decrease in inventories (294) 301
Decrease/(increase) in operating receivables 23 (365)
Increase in operating payables 1,150 455
Other adjustments 97 87
Cash flows from operations 8,375 5,838
Dividends from associates and joint ventures 13 506 167
Dividends from financial asset investments 11 5
Income tax paid (843) (611)
Net cash inflows from operating activities 8,049 5,399
Cash flows from investing activities

Expenditure on property, plant and equipment 12 (2,278) (2,418)
Cash flows from derivatives related to capital expenditure 12 40 (22)
Proceeds from disposal of property, plant and equipment 12 52 23
Investments in associates and joint ventures 13 (86) (51)
Purchase of financial asset investments 14 (6) (3)
Net redemption of financial asset loans and receivables 14 168 61
Interest received and other investment income 165 77
Net cash inflow on disposals 33 52 1,765
Return of capital and repayments of capitalised loans by associates and joint ventures 13 – 62
Other investing activities (54) (19)
Net cash used in investing activities (1,947) (525)
Cash flows from financing activities

Interest paid (542) (747)
Cash flows from derivatives related to financing activities 20 (419) (414)
Dividends paid to Company shareholders 6 (618) –
Dividends paid to non-controlling interests 25 (601) (15)
Proceeds from issuance of bonds 2,998 –
Proceeds from other borrowings 35 694
Repayments of bonds and borrowings (5,189) (5,213)
Proceeds from issue of shares to non-controlling interests 36 38
Purchase of shares by Group companies for employee share schemes (242) (117)
Other financing activities (11) (6)
Net cash used in financing activities (4,553) (5,780)
Net increase/(decrease) in cash and cash equivalents 1,549 (906)
Cash and cash equivalents at start of year 20 6,044 6,889

Cash movements in the year 1,549 (906)
Effects of changes in foreign exchange rates 199 61
Cash and cash equivalents at end of year 20 7,792 6,044

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Total equity
attributable
Cumulative to equity
translation shareholders Non-
Total share Own Retained adjustment Other reserves of the controlling
US$ million capital(1) shares(2) earnings reserve (note 24) Company interests Total equity
At 1 January 2016 5,130 (6,051) 28,301 (11,747) 936 16,569 4,773 21,342
Total comprehensive income – – 1,419 896 (22) 2,293 514 2,807
Dividends payable – – – – – – (40) (40)
Issue of shares to non-controlling interests – – – – – – 38 38
Equity settled share-based payment schemes – (39) 146 – (63) 44 24 68
Tax recognised directly in equity (3) – – 110 – – 110 – 110
At 31 December 2016 5,130 (6,090) 29,976 (10,851) 851 19,016 5,309 24,325
Total comprehensive income – – 3,351 1,577 (282) 4,646 1,240 5,886
Dividends payable – – (618) – – (618) (672) (1,290)
Issue of shares to non-controlling interests – – – – – – 36 36
Equity settled share-based payment schemes – (101) 26 – 6 (69) (3) (72)
Other – – – – (3) (3) – (3)
At 31 December 2017 5,130 (6,191) 32,735 (9,274) 572 22,972 5,910 28,882
(1)
Includes share capital and share premium.
(2)
Own shares comprise shares of Anglo American plc held by the Company (treasury shares), its subsidiaries and employee benefit trusts.
(3)
See note 5D for further details.

FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL PERFORMANCE
Profit attributable to equity shareholders increased 99% to $3,166 million PROFIT ATTRIBUTABLE
and underlying earnings increased 48% to $3,272 million. TO EQUITY SHAREHOLDERS
The following disclosures provide further information about the drivers of the Group’s financial
performance in the year. This includes analysis of the respective contribution of the Group’s
operating segments along with information about its operating cost base, net finance costs and
$3.2 bn
tax. In addition, disclosure on earnings per share and the dividend is provided. 2017 $3.2 bn
2016 $1.6 bn
1. OPERATING PROFIT FROM SUBSIDIARIES AND JOINT OPERATIONS

Overview
Revenue 26,243 21,378
Operating costs:
Employee costs 26 (3,323) (3,336)
Depreciation of property, plant and equipment (2,342) (2,096)
Amortisation of intangible assets (48) (42)
Third party commodity purchases (5,808) (4,676)
Consumables, maintenance and production input costs (5,569) (5,072)
Logistics, marketing and selling costs (2,251) (1,452)
Royalties (613) (377)
Exploration and evaluation (184) (185)
Net foreign exchange losses (93) (31)
Other net operating expenses (770) (780)
Operating profit before special items and remeasurements 5,242 3,331
Operating special items and remeasurements 8 287 (1,665)
Operating profit 5,529 1,666
The table above presents costs by nature, with comparative information restated accordingly. The change in presentation better reflects the manner in which
the Group manages its costs and excludes operating special items and remeasurements to improve the comparability of the operating profit analysis between
reporting periods.
Royalties exclude items which meet the definition of income tax on profit and accordingly have been accounted for as taxes.
Exploration and evaluation excludes associated employee costs. The full exploration and evaluation expenditure is presented below.
Operating profit before special items and remeasurements is stated after (charging)/crediting:
Exploration expenditure (103) (107)
Evaluation expenditure (125) (105)
Rentals under operating leases (137) (67)
Research and development expenditure (78) (63)
Provisional pricing adjustment 522 893
Further information
Included in revenue is a total (realised and unrealised) gain on provisionally priced sales of $601 million (2016: gain of $904 million). This comprises realised
gains of $156 million (2016: gains of $21 million) relating to sales that were provisionally priced as at 31 December 2016 with the final price settled in the
current year, realised gains of $198 million (2016: gains of $584 million) relating to sales fully priced during the year, and unrealised gains of $247 million
(2016: gains of $299 million) relating to sales that were provisionally priced as at 31 December 2017. In addition, operating costs include losses on
provisionally priced purchase contracts of $79 million (2016: losses of $11 million).
Accounting policy
See note 38C for the Group’s accounting policy on revenue.
New IFRS accounting standards not yet adopted

IFRS 15 Revenue from Contracts with Customers became effective for the Group from 1 January 2018 and further information on the new standard is provided
in note 38A. Had the requirements of IFRS 15 been applied during the year ended 31 December 2017, the effect would have been to reduce revenue and
operating costs respectively by $29 million with no impact on profit. Current assets and current liabilities as at 31 December 2017 would each have been
higher by $39 million.

2. FINANCIAL PERFORMANCE BY SEGMENT

Overview
The Group’s segments are aligned to those business units that are evaluated regularly by the chief operating decision maker in deciding how to allocate
resources and in assessing performance.
The disclosures in this note include certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including
definitions, please refer to page 194.
Segment results
2017
Net finance
Depreciation costs and Non-
Group Underlying and Underlying income tax controlling Underlying
US$ million revenue EBITDA amortisation EBIT expense interests earnings
De Beers 5,841 1,435 (562) 873 (244) (101) 528
Copper 4,233 1,508 (585) 923 (440) (113) 370
Platinum 5,078 866 (354) 512 (218) (77) 217
Iron Ore and Manganese 5,831 2,357 (379) 1,978 (507) (445) 1,026
Coal 7,211 2,868 (594) 2,274 (484) (27) 1,763
Nickel 451 81 (81) – (4) – (4)
Corporate and other 5 (292) (21) (313) (326) 11 (628)
28,650 8,823 (2,576) 6,247 (2,223)(1) (752) 3,272
Less: associates and joint ventures (2,407) (1,191) 186 (1,005) 426 2 (577)
Subsidiaries and joint operations 26,243 7,632 (2,390) 5,242 (1,797) (750) 2,695
Reconciliation:
Net income from associates and joint ventures 567 567
Special items and remeasurements 282 (96)
Closest equivalent IFRS measure 6,091 3,166
2016
Net finance
Depreciation costs and Non-
Group Underlying and Underlying income tax controlling Underlying
US$ million revenue EBITDA amortisation EBIT expense interests earnings
De Beers 6,068 1,406 (387) 1,019 (242) (110) 667
Copper 3,066 903 (642) 261 (9) 102 354
Platinum 4,394 532 (347) 185 (101) (19) 65
Iron Ore and Manganese 3,426 1,536 (261) 1,275 (304) (405) 566
Coal 5,263 1,646 (534) 1,112 (183) (16) 913
Nickel 426 57 (72) (15) (42) – (57)
Corporate and other 499 (5) (66) (71) (237) 10 (298)
23,142 6,075 (2,309) 3,766 (1,118)(1) (438) 2,210
Less: associates and joint ventures (1,764) (606) 171 (435) 167 (3) (271)
Subsidiaries and joint operations 21,378 5,469 (2,138) 3,331 (951) (441) 1,939
Reconciliation:
Special items and remeasurements (462) (623)
Closest equivalent IFRS measure 3,147 1,594
(1)
Comprises net finance costs of $526 million (2016: $253 million) and income tax expense of $1,697 million (2016: $865 million).
The Kumba Iron Ore, Iron Ore Brazil and Samancor business units have been aggregated as the ‘Iron Ore and Manganese’ segment on the basis of the ultimate
product produced (ferrous metals). The ‘Corporate and other’ segment includes unallocated corporate costs, exploration costs and the Niobium and
Phosphates business unit. Exploration costs represent the cost of the Group’s exploration activities across all segments. Comparative information for
Corporate and other has been restated to include Niobium and Phosphates, which was sold in 2016.
The segment results are stated after elimination of inter-segment interest and dividends and include an allocation of corporate costs.

2. FINANCIAL PERFORMANCE BY SEGMENT continued

Further information
Segments predominantly derive revenue as follows – De Beers: rough and polished diamonds; Copper: copper; Platinum: platinum group metals; Iron Ore and
Manganese: iron ore, manganese ore and alloys; Coal: metallurgical coal and thermal coal; Nickel: nickel. See note 38C for the Group’s accounting policy on
revenue recognition.
Group revenue by product
Diamonds 5,841 6,064
Copper 4,128 2,946
Platinum 2,454 2,498
Palladium 1,417 967
Rhodium 327 215
Iron ore 4,489 2,611
Manganese ore and alloys 940 625
Metallurgical coal 3,357 2,243
Thermal coal 3,854 3,024
Nickel 728 694
Niobium – 137
Phosphates – 358
Other 1,115 760
28,650 23,142
Group revenue by destination

The Group’s geographical analysis of segment revenue is allocated based on the customer’s port of destination. Where the port of destination is not known,
revenue is allocated based on the customer’s country of domicile:

South Africa 1,876 1,630
Other Africa 1,709 1,604
Brazil 422 679
Chile 432 481
Other South America 9 12
North America 875 572
Australia 41 164
China 6,451 4,784
India 3,636 2,756
Japan 2,625 2,131
Other Asia 5,514 3,813
United Kingdom (Anglo American plc’s country of domicile) 1,571 1,341
Other Europe 3,489 3,175
28,650 23,142
3. EARNINGS PER SHARE

Overview
US$ 2017 2016

Earnings per share
Basic 2.48 1.24
Diluted 2.45 1.23
Underlying earnings per share
Basic 2.57 1.72
Diluted 2.53 1.70
Headline earnings per share
Basic 2.29 1.47
Diluted 2.26 1.46
Further information
The calculation of basic and diluted earnings per share is based on the following data:
Profit attributable to
equity shareholders
of the Company Underlying earnings Headline earnings
2017 2016 2017 2016 2017 2016
Earnings (US$ million)
Basic and diluted earnings 3,166 1,594 3,272 2,210 2,920 1,896
Number of shares (million)

Basic number of ordinary shares outstanding 1,275 1,288 1,275 1,288 1,275 1,288
Effect of dilutive potential ordinary shares 18 12 18 12 18 12
Diluted number of ordinary shares outstanding 1,293 1,300 1,293 1,300 1,293 1,300

3. EARNINGS PER SHARE continued

The average number of ordinary shares in issue excludes shares held by employee benefit trusts and Anglo American plc shares held by Group companies.
The diluted number of ordinary shares outstanding including share options and awards is calculated on the assumption of conversion of all potentially dilutive
ordinary shares. In the year ended 31 December 2017 there were 132,188 (2016: 274,815) share options which were potentially dilutive but not included in the
calculation of diluted earnings because they were anti-dilutive.
Headline earnings, a Johannesburg Stock Exchange defined performance measure, is reconciled from underlying earnings as follows:

Underlying earnings for the financial year 3,272 2,210
Operating special items – restructuring 31 (90)
Other operating special items (60) –
Operating remeasurements (86) (25)
Non-operating special items – credits/(charges) relating to BEE transactions 14 (36)
Financing special items and remeasurements (114) (318)
Tax special items and remeasurements (32) 33
Associates' and joint ventures' special items and remeasurements (8) 7
Other reconciling items (97) 115
Headline earnings for the financial year 2,920 1,896
The reconciling items above are shown net of tax and non-controlling interests.
Other reconciling items principally relate to the settlement of class action claims (2016: principally relate to derecognition of contingent liabilities previously
recognised in business combinations and losses on disposal of plant and equipment and other assets).
4. NET FINANCE COSTS

Overview
Investment income
Interest income from cash and cash equivalents 154 78
Interest income from associates and joint ventures 35 50
Other interest income 52 43
Net interest income on defined benefit arrangements 16 20
Dividend income from financial asset investments 11 5
268 196
Less: interest income capitalised – (10)
Investment income before special items and remeasurements 268 186
Financing special items and remeasurements – 120
Investment income 268 306
Interest expense
Interest and other finance expense (580) (711)
Net interest cost on defined benefit arrangements (49) (44)
Unwinding of discount relating to provisions and other liabilities (100) (111)
(729) (866)
Less: interest expense capitalised 35 376
Interest expense before special items and remeasurements (694) (490)
Interest expense (793) (535)
Other net financing losses

Net foreign exchange (losses)/gains (47) 84
Other net fair value gains – 11
Other net financing (losses)/gains before special items and remeasurements (47) 95
Other net financing losses (61) (294)
Net finance costs (586) (523)
Further information
Interest income recognised at amortised cost is $200 million (2016: $131 million) and interest expense recognised at amortised cost is $506 million
(2016: $237 million).
Accounting policy
See note 38C for the Group’s accounting policy on borrowing costs.

5. INCOME TAX EXPENSE

Overview
The effective tax rate for the year of 26.3% (2016: 26.6%) is higher (2016: higher) than the applicable weighted average statutory rate of corporation tax in the
United Kingdom of 19.25% (2016: 20%).
2017
Profit Tax (charge)/
before tax credit Effective
US$ million US$ million tax rate
Calculation of effective tax rate (statutory basis) 5,505 (1,446) 26.3%
Adjusted for:
Special items and remeasurements (159) 122
Associates’ and joint ventures' tax and non-controlling interests 375 (373)
Calculation of underlying effective tax rate 5,721 (1,697) 29.7%
The underlying effective tax rate was 29.7% for the year ended 31 December 2017. This is higher than the equivalent underlying effective tax rate of 24.6%
for the year ended 31 December 2016. The effective tax rate in 2017 has benefited from the reassessment of deferred tax balances primarily in Australia and
Brazil, partially offset by the reassessment of withholding tax provisions primarily in relation to Chile and South Africa, and the impact of the relative levels of
profits arising in the Group’s operating jurisdictions. In future periods, it is expected that the underlying effective tax rate will remain above the United Kingdom
statutory tax rate.
A. Analysis of charge for the year

United Kingdom corporation tax 29 26
South Africa tax 649 433
Other overseas tax 689 101
Prior year adjustments (162) (176)
Current tax 1,205 384
Deferred tax 119 358
Income tax expense before special items and remeasurements 1,324 742
Special items and remeasurements tax (note 8) 122 (44)
Income tax expense 1,446 698
Current tax includes royalties which meet the definition of income tax and are in addition to royalties recorded in operating costs.
B. Factors affecting tax charge for the year

The reconciling items between the statutory effective tax rate and the income tax expense are:

Profit before tax 5,505 2,624
Less: Net income from associates and joint ventures (567) (278)
Profit before tax (excluding associates and joint ventures) 4,938 2,346
Tax calculated at United Kingdom corporation tax rate of 19.25% (2016: 20%) 951 469
Tax effects of:

Items non-deductible/taxable for tax purposes 124 6
Temporary difference adjustments

Current year losses not recognised 108 91
Recognition of losses and temporary differences not previously recognised (305) (15)
Utilisation of losses and temporary differences not previously recognised (32) (70)
Write-off of losses and temporary differences previously recognised 52 1
Adjustment in deferred tax due to change in tax rate (4) (9)
Other temporary differences 21 345
Special items and remeasurements 89 111
Other adjustments
Dividend withholding taxes 245 (118)
Effect of differences between local and United Kingdom tax rates 353 56
Prior year adjustments to current tax (162) (176)
Other adjustments 6 7
Income tax expense 1,446 698
Included within other temporary differences for the year ended 31 December 2016 was an amount of $306 million in respect of enhanced tax depreciation in
Chile, partially offset by an amount included within prior year adjustments of $200 million. There are no such inclusions in the year ended 31 December 2017.
The special items and remeasurements reconciling item of $89 million (2016: $111 million) relates to the net tax impact of total special items and
remeasurements before tax calculated at the United Kingdom corporation tax rate less the associated tax recorded against these items and tax special items
and remeasurements.
Associates’ and joint ventures’ tax included within Net income from associates and joint ventures for the year ended 31 December 2017 is a charge of
$371 million (2016: charge of $117 million). Excluding special items and remeasurements, this becomes a charge of $373 million (2016: charge of $123 million).

5. INCOME TAX EXPENSE continued

C. Tax amounts included in other comprehensive income
The Consolidated statement of comprehensive income includes a tax charge on the remeasurement of net retirement benefit obligations recognised directly
in equity that will not be reclassified to the income statement of $24 million (2016: credit of $35 million), and a tax charge on the net gain on revaluation of
available for sale assets recognised directly in equity that may subsequently be reclassified to the income statement of $5 million (2016: $25 million).
In addition, there is a tax credit on items transferred directly from equity to the income statement of $10 million (2016: $35 million) primarily in relation to
the disposal of available for sale investments.
D. Tax amounts recognised directly in equity

Deferred tax of $10 million was credited directly to equity in the year ended 31 December 2017.
In 2016, deferred tax of $110 million was credited directly to equity in relation to the disposal of a 25.4% interest in Anglo American Sur S.A. in 2012 as
a consequence of the reassessment of withholding tax provisions in Chile.
Accounting judgement
The Group’s tax affairs are governed by complex domestic tax legislations, international tax treaties between countries and the interpretation of these by
tax authorities and courts. Given the many uncertainties that could arise from these factors, judgement is often required in determining the tax that is due.
Where management is aware of potential uncertainties that are judged more likely than not to result in a liability for additional tax, a provision is made for
management’s best estimate of the liability, determined with reference to similar transactions and, in some cases, reports from independent experts.
Accounting policy
See note 38G for the Group’s accounting policy on tax.
6. DIVIDENDS
2017 2016
Proposed final ordinary dividend per share (US cents) 54 –
Proposed final ordinary dividend (US$ million) 695 –
These financial statements do not reflect the proposed final ordinary dividend as it is still subject to shareholder approval.
Dividends payable during the year are as follows:

Final ordinary dividend for 2016 – Nil per ordinary share (2015: Nil per ordinary share) – –
Interim ordinary dividend for 2017 – 48 US cents per ordinary share (2016: Nil per ordinary share) 618 –
618 –

SIGNIFICANT ITEMS
Special items and remeasurements are a net charge of $0.1 billion and SPECIAL ITEMS AND
include net impairment reversals of $0.4 billion, relating to the impairment REMEASUREMENTS
$(0.1) bn
reversals at Sishen (Iron Ore and Manganese) of $0.5 billion and El Soldado
(Copper) of $0.2 billion, partially offset by impairments of the Group’s
interest in BRPM (Platinum) and at Coal South Africa (Coal).
(2016: $(0.6) bn)
During 2017, the significant accounting matters addressed by management included:
••the assessment of impairment and impairment reversal indicators; and
••the estimation of cash flow projections for impairment testing.
7. SIGNIFICANT ACCOUNTING MATTERS Cash flow projections are based on financial budgets and Life of Mine Plans
In the course of preparing financial statements, management necessarily or, for non-mine assets, an equivalent appropriate long-term forecast,
makes judgements and estimates that can have a significant impact on incorporating key assumptions as detailed below:
the financial statements. The critical judgements and sources of estimation ••Ore Reserves and Mineral Resources
uncertainty that affect the results for the year ended 31 December 2017 are Ore Reserves and, where considered appropriate, Mineral Resources are
set out below. In addition to these items, further detail on other significant incorporated in projected cash flows, based on Ore Reserves and Mineral
judgements and estimates determined by management is provided, where Resources statements and exploration and evaluation work undertaken by
applicable, in the relevant note to the financial statements. appropriately qualified persons. Mineral Resources are included where
management has a high degree of confidence in their economic extraction,
Impairment and impairment reversals of assets despite additional evaluation still being required prior to meeting the
i) Critical accounting judgements required confidence to convert to Ore Reserves.
The Group assesses at each reporting date whether there are any indicators
that its assets and cash generating units (CGUs) may be impaired. Operating ••Commodity and product prices
and economic assumptions, which could affect the valuation of assets using Commodity and product prices are based on latest internal forecasts,
discounted cash flows, are updated regularly as part of the Group’s planning benchmarked with external sources of information, to ensure they are within
and forecasting processes. Judgement is therefore required to determine the range of available analyst forecasts. In estimating the forecast cash
whether the updates represent significant changes in the service potential flows, management also takes into account the expected realised price from
of an asset or CGU, and are therefore indicators of impairment or impairment existing contractual arrangements.
reversal. The judgement also takes into account the Group’s long-term ••Foreign exchange rates
economic forecasts, market consensus and sensitivity analysis of the Foreign exchange rates are based on latest internal forecasts, benchmarked
discounted cash flow models used to value the Group’s assets. with external sources of information for relevant countries of operation.
Assets (other than goodwill) that have been previously impaired must be Long-term foreign exchange rates are kept constant on a real basis.
assessed for indicators of both impairment and impairment reversal. Such ••Discount rates
assets are, by definition, carried on the balance sheet at a value close to Cash flow projections used in fair value less costs of disposal impairment
their recoverable amount at the last assessment. Therefore in principle any models are discounted based on a real post-tax discount rate, assessed
change to operational plans or assumptions, economic parameters, or the annually, of 7.0% (2016: 6.5%). Adjustments to the rate are made for any
passage of time, could result in further impairment or impairment reversal risks that are not reflected in the underlying cash flows, including the risk
if an indicator is identified. Significant operating assets that the Group has profile of the individual asset and country risk.
previously impaired include Minas-Rio and Sishen (Iron Ore and
••Operating costs, capital expenditure and other operating factors
Manganese); Moranbah-Grosvenor, Capcoal, Dawson and Isibonelo (Coal);
Operating costs and capital expenditure are based on financial budgets
Barro Alto (Nickel) and El Soldado (Copper). These assets have a combined
covering a five year period. Cash flow projections beyond five years are
carrying value of $10.0 billion within Property, plant and equipment as at
based on Life of Mine Plans or non-mine production plans, as applicable,
31 December 2017.
and internal management forecasts. Cost assumptions incorporate
ii) Cash flow projections for impairment testing management experience and expectations, as well as the nature and
Expected future cash flows used in discounted cash flow models are location of the operation and the risks associated therewith (for example,
inherently uncertain and could materially change over time. They are the grade of Ore Reserves varying significantly over time and unforeseen
significantly affected by a number of factors including Ore Reserves and operational issues). Underlying input cost assumptions are consistent with
Mineral Resources, together with economic factors such as commodity related output price assumptions. Other operating factors, such as the
prices, exchange rates, discount rates and estimates of production costs and timelines of granting licences and permits are based on management’s best
future capital expenditure. Where discounted cash flow models based on estimate of the outcome of uncertain future events at the balance sheet
management’s assumptions are used, the resulting fair value measurements date. For further information refer to the unaudited Ore Reserves and
are considered to be at level 3 in the fair value hierarchy, as defined in Mineral Resources Report 2017.
IFRS 13 Fair Value Measurement, as they depend to a significant extent on
Where an asset has potential for future development through capital
unobservable valuation inputs.
investment, to which a market participant would attribute value, and the
costs and economic benefits can be estimated reliably, this development
is included in the cash flows (with appropriate risk adjustments).

SIGNIFICANT ITEMS
iii) Key sources of estimation uncertainty

For assets where indicators of impairment or impairment reversal are
identified, the Group performs impairment reviews to assess the recoverable
amount of its operating assets principally with reference to fair value less
costs of disposal, assessed using discounted cash flow models. Mining
operations are large, complex assets requiring significant technical and
financial resources to operate. Their value may be sensitive to a range of
characteristics unique to each asset. Management applies judgement in
determining the assumptions that are considered to be reasonable and
consistent with those that would be applied by market participants as outlined
in note 38D.
Sishen
The Sishen iron ore mine (Iron Ore and Manganese) is located in the Northern
Cape Province in South Africa. It was impaired at year end 2015 by $0.5 billion
based on a recoverable amount of $1.3 billion, as a result of a deterioration in
the long-term outlook for iron ore prices, which led to a reconfiguration of the
Sishen pit shell to improve cash flows.
During 2017, Sishen has achieved improved levels of production and
operating efficiencies. Additionally, whilst the long-term outlook for iron ore
has remained broadly unchanged since 2015, the outlook for market
conditions in the nearer term has improved. Consequently, the valuation of
the Sishen mine has been assessed and the previous impairment has been
reversed to the carrying value of $2.1 billion that would have been determined
had no impairment loss been previously recognised, resulting in a gain of
$468 million ($216 million after tax and non-controlling interests). Of the
impairment reversal, $175 million has been recorded against plant and
equipment, $169 million against mining properties and leases, $55 million
against land and buildings and $69 million against capital works in progress,
with an associated tax charge of $129 million.
The valuation, based on discounted cash flows, is sensitive to changes in input
assumptions particularly in relation to future iron ore prices and South African
rand foreign exchange rates. For example, a $5/tonne increase in the
long-term price forecast for iron ore equates to a $0.3 billion increase in the
valuation. The recoverable amount has been assessed under a range of
valuation scenarios, incorporating downside adjustments to both operating
and economic assumptions, all of which indicate headroom over the revised
carrying value of $2.1 billion. For example, under the most conservative
downside case considered the headroom is $0.4 billion.
Minas-Rio
The Minas-Rio iron ore project (Minas-Rio) (Iron Ore and Manganese) in
Brazil was acquired in two separate transactions in 2007 and 2008. Prior to
2016, impairment charges totalling $11.3 billion (before tax) were recorded
against the carrying value of Minas-Rio. The valuation was reassessed as at
31 December 2017 and the recoverable amount was considered to be in line
with the carrying value of $4.2 billion. The valuation remains sensitive to
economic and operational factors that provide both upside and downside risk,
including price and the scheduling of required permits and licences. For
example, a $5/tonne change in the long-term price forecast for iron ore,
with all other valuation assumptions remaining the same, would change the
valuation by $0.7 billion.
El Soldado
In 2016, an impairment of $200 million was recorded to fully impair El Soldado
(Copper), following the suspension of mining operations in February 2017
due to licensing uncertainty. In March 2017, the Group was notified that
El Soldado’s mine permit application had been rejected by the Chilean mining
authorities. Following an appeal, the mining permit was approved and mining
operations were resumed in April 2017. As a result of the receipt of the permit,
an impairment reversal of $194 million ($65 million after tax and non-
controlling interests) has been recorded.

SIGNIFICANT ITEMS
8. SPECIAL ITEMS AND REMEASUREMENTS

Overview
2017 2016
Non-
controlling
US$ million Before tax Tax interests Net Net
Impairments and impairment reversals 442 (177) (154) 111 (1,354)
Restructuring costs 31 – – 31 (90)
Other operating special items (91) 31 – (60) –
Operating remeasurements (95) 12 (3) (86) (25)
Operating special items and remeasurements 287 (134) (157) (4) (1,469)
Disposals of businesses and investments 4 47 20 71 1,082

Adjustments relating to business combinations 59 – (6) 53 82
Adjustments relating to former operations (84) (1) (1) (86) 3
Credits/(charges) relating to BEE transactions 16 – (2) 14 (36)
Non-operating special items (5) 46 11 52 1,131
Financing special items and remeasurements (113) – (1) (114) (318)

Tax special items and remeasurements – (34) 2 (32) 33
Total 169 (122) (145) (98) (623)
Associates’ and joint ventures’ special items and remeasurements (10) 7
Non-controlling interests on associates’ and joint ventures’ special items and remeasurements 2 –
Total special items and remeasurements (106) (616)
Special items ••Operating remeasurements include unrealised gains and losses on

Special items are those items of financial performance that, due to their size derivatives relating to revenue, operating costs or capital expenditure
and nature, the Group believes should be separately disclosed on the face of transactions. They also include the reversal through depreciation and
the income statement. These items, along with related tax and non-controlling amortisation of a fair value gain or loss, arising on revaluation of a previously
interests, are excluded from underlying earnings, which is an Alternative held equity interest in a business combination.
Performance Measure (APM). For more information on the APMs used by the ••Financing remeasurements include unrealised gains and losses on financial
Group, including definitions, please refer to page 194. assets and liabilities that represent economic hedges, including accounting
••Operating special items are those that relate to the operating performance hedges, related to financing arrangements.
of the Group and principally include impairment charges and reversals and ••Tax remeasurements include foreign exchange impacts arising in US dollar
restructuring costs. functional currency entities where tax calculations are generated based on
••Non-operating special items are those that relate to changes in the Group’s local currency financial information and hence deferred tax is susceptible to
asset portfolio. This category principally includes profits and losses on currency fluctuations.
disposal of businesses and investments or closure of operations,
adjustments relating to business combinations, and adjustments relating to Operating special items
former operations of the Group, such as changes in the measurement of Impairments and impairment reversals
deferred consideration receivable or provisions recognised on disposal or Net impairments and impairment reversals of $442 million ($111 million after
closure of operations in prior periods. This category also includes charges tax and non-controlling interests) for the year ended 31 December 2017
relating to Black Economic Empowerment (BEE) transactions. principally comprise the impairment reversals of Sishen (Iron Ore and
Manganese) of $468 million ($216 million after tax and non-controlling
••Financing special items are those that relate to financing activities and
interests) and El Soldado (Copper) of $194 million ($65 million after tax and
include realised gains and losses on early repayment of borrowings, and the
non-controlling interests), the impairment of the investment in Bafokeng–
unwinding of the discount on material provisions previously recognised as
Rasimone Platinum Mine (BRPM) (Platinum) of $147 million ($116 million
special items.
after tax and non-controlling interests) and an impairment of $61 million
••Tax special items are those that relate to tax charges or credits where the ($44 million after tax) in Coal South Africa (Coal). Further information on
associated cash outflow or inflow is anticipated to be significant due to its significant accounting matters relating to impairments and impairment
size and nature, principally including resolution of tax enquiries. reversals is provided in note 7.
BRPM impairment
Remeasurements
The Group holds a 33% interest in BRPM (Platinum) and an 11.44%
Remeasurements are items that are excluded from underlying earnings in
shareholding in Royal Bafokeng Platinum Limited (RBPlat), the Johannesburg
order to reverse timing differences in the recognition of gains and losses in
Stock Exchange listed controlling shareholder of the operation. Given the
the income statement in relation to transactions that, whilst economically
reduction in the market capitalisation of RBPlat, the carrying value of the
linked, are subject to different accounting measurement or recognition
investment in BRPM has been assessed for impairment. This has resulted in
criteria. Remeasurements include mark-to-market movements on derivatives
an impairment of $147 million ($116 million after tax and non-controlling
that are economic hedges of transactions not yet recorded in the financial
interests) which has been recorded against investments in associates to bring
statements, in order to ensure that the overall economic impact of such
the carrying amount into line with its recoverable amount of $0.2 billion.
transactions is reflected within the Group’s underlying earnings in the period
in which they occur. When the underlying transaction is recorded in the 2016
income statement, the realised gains or losses are reversed from Net impairments of $1,354 million after tax and non-controlling interests for
remeasurements and are recorded in underlying earnings within either the year ended 31 December 2016 principally related to the impairment of the
revenue, operating costs or net finance costs as appropriate. If the underlying Moranbah North and Grosvenor cash generating unit (Coal).
transaction is recorded in the balance sheet, for example capital expenditure, Other operating special items
the realised amount remains in remeasurements on settlement of the The loss of $91 million ($60 million after tax) relates to the cost to the Group
derivative. of an arbitration settlement relating to a commercial dispute arising during the
construction of the Barro Alto Nickel project.

SIGNIFICANT ITEMS
8. SPECIAL ITEMS AND REMEASUREMENTS continued claims’). The High Court has certified two classes of claimants: those with
Restructuring costs silicosis or who died from silicosis and those with tuberculosis or who died
Following the finalisation of the Driving Value programme and the decision to from tuberculosis. AASA and other respondents are appealing the ruling
continue metallurgical coal operations in Australia, restructuring provisions which had been set down for hearing from 19 to 23 March 2018, but was
recognised in 2016 relating to the closure of the Brisbane Corporate Office subsequently postponed indefinitely based on the progress made in the
have been derecognised, resulting in a credit of $31 million ($31 million after settlement negotiations with the claimants’ representatives.
tax). Restructuring costs for the year ended 31 December 2016 were AASA, AngloGold Ashanti, Gold Fields, Harmony Gold and Sibanye Gold
$120 million ($90 million after tax and non-controlling interests). announced in November 2014 that they had formed an industry working
group to address issues relating to compensation and medical care for
Operating remeasurements
occupational lung disease in the gold mining industry in South Africa. The
Operating remeasurements reflect a net loss of $95 million ($86 million after
working group was subsequently extended in 2015 to include African
tax and non-controlling interests) which principally relates to a $118 million
Rainbow Minerals. At the same time, the industry working group has been
depreciation and amortisation charge arising due to the fair value uplift on the
engaging all stakeholders on these matters, including government, organised
Group’s pre-existing 45% shareholding in De Beers, which was required on
labour, other mining companies and legal representatives of claimants who
acquisition of a controlling stake. This was partially offset by net gains on
have filed legal suits against the companies. These engagements have sought
derivatives of $23 million, principally related to economic hedges of capital
a comprehensive solution to address legacy compensation issues and future
expenditure.
legal frameworks that is fair to past and current employees and enables
Operating remeasurements reflected a net loss of $33 million ($25 million companies to continue to be competitive over the long term. The companies
after tax and non-controlling interests) for the year ended 31 December 2016. in the working group continue to defend the legal proceedings filed
against them.
Non-operating special items
Disposals of businesses and investments As a consequence of the status of negotiations between the working group
On 15 February 2017, the Group announced that it had agreed the sale of its and affected stakeholders, a charge of $101 million was recognised at
interests in the Union platinum mine and Masa Chrome Company Proprietary 30 June 2017 within non-operating special items ($101 million after tax),
Limited (Platinum) to a subsidiary of Siyanda Resources Proprietary Limited representing management’s best estimate of the cost to the Group of a
for consideration comprising upfront cash of R400 million ($34 million) and settlement of the class action claims and related costs. The ultimate outcome
deferred consideration based on the operation’s free cash flow generation of these matters remains uncertain, with a possible failure to reach a
over a ten year period. settlement or to obtain the requisite court approval of the settlement, and the
provisions recorded in the financial statements are consequently subject to
The fair value of the Union mine and its associated Mineral Resources is
adjustment or reversal in the future, depending on the progress of the
expected to be recovered principally through the sale. An impairment of
working group discussions and stakeholder consultations, and the ongoing
$197 million ($113 million after tax and non-controlling interests) has been
legal proceedings.
recorded to bring the operation’s carrying value into line with its fair value less
costs of disposal. The impairment charge has been recorded principally Other
against Property, plant and equipment. The remaining net gain of $17 million before tax and non-controlling interests
relates to adjustments in respect of disposals completed in prior years.
On 1 February 2018, the Group completed the sale.
Credits relating to BEE transactions
In addition, a gain on disposal of $76 million ($76 million after tax) was
The net gain of $16 million ($14 million after tax and non-controlling interests)
recorded on the disposal of the Group’s 83.3% interest in the Dartbrook mine
relates to the revaluation of provisions associated with De Beers BEE
(Coal) and a further gain on disposal of $82 million ($65 million after
transactions recorded in prior years. In 2016 the net charge of $36 million
non-controlling interests) was recorded on disposal of long-dated Mineral
principally included $24 million ($20 million after tax and non-controlling
Resources in Platinum.
interests) related to the repurchase of shares in Ponahalo Holdings Limited
In October 2017, the Group recorded a net gain of $43 million ($43 million awarded to certain employees and their dependents as part of DBCM’s 2006
after tax) on the disposal of its 11.18% interest in Dreamvision Investments empowerment transaction.
15 Proprietary Limited through a share buy back which formed part of the
unwinding of Exxaro Resources Limited’s original BEE transaction. This Financing special items and remeasurements
holding equated to a 2.28% interest in Exxaro. Financing special items and remeasurements principally comprise a loss
of $95 million (2016: net gain of $120 million) arising on bond buybacks
2016
completed in the period and a net fair value loss of $14 million
Non-operating special items in the year ended 31 December 2016 of
(2016: $389 million) on derivatives hedging net debt.
$1,131 million after tax and non-controlling interests principally included net
gains on the disposals of Callide (Coal), Niobium and Phosphates (Corporate Tax associated with special items and remeasurements
and other) and the Group’s investment in Exxaro Resources Limited This includes a tax remeasurement charge of $34 million (2016: credit
(Corporate and other) and a net loss on the disposal of the Rustenburg of $74 million) principally arising on Brazilian deferred tax assets.
mine (Platinum).
Of the total tax charge of $122 million, there is a net current tax charge
Adjustments relating to business combinations of $1 million (2016: charge of $129 million) and a net deferred tax charge
Of the gain of $59 million, $39 million ($33 million after non-controlling of $121 million (2016: credit of $173 million).
interests) relates to the acquisition of the remaining 50% share in De Beers
Jewellers (De Beers) in March 2017. The remaining $20 million gain relates Associates’ and joint ventures’ special items and
to adjustments in respect of business combinations in prior periods. remeasurements
Associates’ and joint ventures’ special items and remeasurements relates
Adjustments relating to former operations
to the Coal and Platinum segments (2016: Coal and Iron Ore and
Anglo American South Africa Limited
Manganese segments).
Anglo American South Africa Limited (AASA) is named as one of 32
respondents in a consolidated class certification application filed in the South
Gauteng High Court (Johannesburg) on behalf of former mineworkers (or
their dependants or survivors) who allegedly contracted silicosis or
tuberculosis as a result of having worked for various gold mining companies
including some in which AASA was a shareholder and to which AASA
provided various technical and administrative services (the ‘class action

CAPITAL BASE
We have a value-focused approach to capital allocation with Attributable ROCE %
clear prioritisation: maintain asset integrity; ensure a strong US$ million 2017 2016
De Beers 9% 11%
balance sheet; and pay dividends to our shareholders. Copper 16% 6%
Platinum 10% 4%
Value-disciplined capital allocation throughout the cycle is critical to Iron Ore and Manganese 21% 12%
protecting and enhancing our shareholders’ capital, given the long-term Coal 67% 29%
and capital intensive nature of our business. Nickel – (1)%
Corporate and other n/a n/a
The Group uses attributable return on capital employed (ROCE) to monitor
19% 11%
how efficiently assets are generating profit on invested capital for the equity
shareholders of the Company. Attributable ROCE is an Alternative Attributable ROCE increased to 19% in 2017 (2016: 11%), primarily because
Performance Measure (APM). For more information on the APMs used by of higher attributable underlying EBIT. Average attributable capital employed
the Group, including definitions, please refer to page 194. remained flat at $27.4 billion as disposals in 2016 and reductions in working
capital were offset by the impact of the strengthening South African rand and
Australian dollar on assets denominated in those currencies.
9. CAPITAL BY SEGMENT
Capital employed by segment
Capital employed is the principal measure of segment assets and liabilities reported to the Group Management Committee. Capital employed is defined as net
assets excluding net debt and financial asset investments.
Capital employed
De Beers 9,294 8,725
Copper 5,899 6,073
Platinum 4,510 4,457
Iron Ore and Manganese 8,008 7,472
Coal 3,384 3,509
Nickel 1,959 2,003
Corporate and other (241) (335)
Capital employed 32,813 31,904
Reconciliation to Consolidated balance sheet:
Net debt (4,501) (8,487)
Debit valuation adjustment attributable to derivatives hedging net debt 9 73
Financial asset investments 561 835
Net assets 28,882 24,325
Non-current assets by location

Intangible assets and
Property, plant and equipment Total non-current assets
US$ million 2017 2016 2017 2016
South Africa 10,818 9,554 11,638 10,488
Botswana 4,536 4,266 4,536 4,266
Other Africa 1,121 1,019 1,127 1,025
Brazil 5,589 5,674 5,729 5,804
Chile 6,281 6,089 6,282 6,089
Other South America 1,282 1,106 2,128 1,915
North America 741 784 739 787
Australia and Asia 2,302 2,078 2,798 2,451
United Kingdom (Anglo American plc's country of domicile) 1,168 1,263 1,247 1,321
Other Europe 128 103 128 125
Non-current assets by location 33,966 31,936 36,352 34,271
Unallocated assets 3,476 3,429
Total non-current assets 39,828 37,700
Total non-current assets by location primarily comprise Intangible assets, Property, plant and equipment, Environmental rehabilitation trusts and Investments
in associates and joint ventures.

CAPITAL BASE
10. INTANGIBLE ASSETS

Overview
Intangible assets comprise goodwill acquired through business combinations, brands, contracts and other non-mining assets.
2017 2016
Brands, Brands,
contracts contracts
and other and other
US$ million intangibles Goodwill Total intangibles Goodwill Total
Net book value
At 1 January 1,203 2,014 3,217 1,224 2,170 3,394
Additions 22 – 22 12 – 12
Amortisation charge for the year (65) – (65) (61) – (61)
Impairments – (8) (8) – – –
Disposals – – – (2) (224) (226)
Remeasurements – – – – 17 17
Currency movements 41 116 157 30 51 81
At 31 December 1,201 2,122 3,323 1,203 2,014 3,217
Cost 1,609 2,122 3,731 1,521 2,014 3,535
Accumulated amortisation (408) – (408) (318) – (318)
Brands, contracts and other intangibles includes $1,174 million (2016: $1,172 million) relating to De Beers, principally comprising assets that were recognised
at fair value on acquisition of a controlling interest in De Beers in August 2012. Of these, $517 million (2016: $517 million) have indefinite useful lives.
Further information
Goodwill relates to the following cash generating units (CGUs) or groups of CGUs:

De Beers 1,721 1,604
Copper 124 124
Platinum 181 189
Coal South Africa 88 88
Other 8 9
2,122 2,014
Goodwill is tested at least annually for impairment by assessing the recoverable amount of the related CGU or group of CGUs. The recoverable amounts have
been determined based on fair value less costs of disposal using discounted cash flow projections. The key assumptions used in determining the recoverable
amount are set out in note 7. Management believes that any reasonably possible change in a key assumption on which the recoverable amounts are based
would not cause the carrying amounts to exceed their recoverable amounts.
Accounting policy
See note 38D for the Group’s accounting policies on intangible assets.
11. PROPERTY, PLANT AND EQUIPMENT

Overview
Property, plant and equipment comprises the physical assets that make up the Group’s operations. These include acquired mineral rights, capitalised waste
stripping and mine development costs, processing plant and infrastructure, vehicles and other equipment.
2017 2016
Mining Mining
properties Land and Plant and Capital works properties Land and Plant and Capital works
US$ million and leases buildings equipment in progress Total and leases buildings equipment in progress Total
Net book value
At 1 January 9,620 2,682 8,814 7,603 28,719 8,973 2,771 8,930 8,947 29,621
Additions 281 4 78 2,088 2,451 285 6 27 2,350 2,668
Depreciation charge
for the year (1,024) (152) (1,276) – (2,452) (829) (166) (1,233) – (2,228)
Impairments (144) (9) (68) (23) (244) (446) (251) (749) (62) (1,508)
Impairments reversed 212 58 296 85 651 2 – 9 – 11
Disposals (10) (122) (3) (3) (138) (64) (283) (595) (161) (1,103)
Reclassifications 1,673 83 4,607 (6,363) – 1,094 463 2,072 (3,629) –
Currency movements 928 125 400 203 1,656 605 142 353 158 1,258
At 31 December 11,536 2,669 12,848 3,590 30,643 9,620 2,682 8,814 7,603 28,719
Cost 25,709 4,367 30,516 3,796 64,388 22,655 4,395 20,153 13,297 60,500
Accumulated
depreciation (14,173) (1,698) (17,668) (206) (33,745) (13,035) (1,713) (11,339) (5,694) (31,781)
Additions include $35 million (2016: $366 million) of net interest expense incurred on borrowings funding the construction of qualifying assets which has been
capitalised during the year.

CAPITAL BASE
11. PROPERTY, PLANT AND EQUIPMENT continued

Depreciation includes $2,342 million (2016: $2,096 million) of depreciation within operating profit, $101 million (2016: $85 million) of depreciation arising
due to the fair value uplift on the pre-existing 45% shareholding in De Beers which has been included within operating remeasurements (see note 8), and
$9 million (2016: $47 million) of pre-commercial production depreciation which has been capitalised.
Disposals includes disposal of assets, businesses, and transfers to Assets classified as held for sale.
Accounting judgements
Impairment testing
For the purposes of impairment testing, the recoverable amount of each of the CGUs or group of CGUs has been determined based on a fair value less costs of
disposal basis. The key assumptions used in determining fair value less costs of disposal are set out in note 7.
Deferred stripping
In certain mining operations, rock or soil overlying a mineral deposit, known as overburden, and other waste materials must be removed to access the orebody.
The process of removing overburden and other mine waste materials is referred to as stripping.
The Group defers stripping costs onto the balance sheet where they are considered to improve access to ore in future periods. Where the amount to be
capitalised cannot be specifically identified it is determined based on the volume of waste extracted compared with expected volume for the identified
component of the orebody. This determination is dependent on an individual mine’s design and Life of Mine Plan and therefore changes to the design or Life
of Mine Plan will result in changes to these estimates. Identification of the components of a mine’s orebody is made by reference to the Life of Mine Plan.
The assessment depends on a range of factors including each mine’s specific operational features and materiality.
Accounting policy
See note 38D for the Group’s accounting policies on property, plant and equipment.
12. CAPITAL EXPENDITURE

Capital expenditure by segment
De Beers 273 526
Copper 665 563
Platinum 355 314
Iron Ore and Manganese 252 269
Coal 568 613
Nickel 28 62
Corporate and other 9 40
Capital expenditure 2,150 2,387
Reconciliation to Consolidated cash flow statement:
Cash flows from derivatives related to capital expenditure 40 (22)
Proceeds from disposal of property, plant and equipment 52 23
Direct funding for capital expenditure received from non-controlling interests 36 30
Expenditure on property, plant and equipment 2,278 2,418
Comparative information for Corporate and other has been restated to include Niobium and Phosphates, which was sold in 2016.
Capitalised operating cash flows
Capital expenditure includes net capitalised operating cash inflows of $78 million (2016: net inflows of $150 million) generated by operations prior to reaching
commercial production for accounting purposes.
Capital expenditure by category
Expansionary 306 817
Stay-in-business 1,310 1,042
Stripping and development 586 551
Proceeds from disposal of property, plant and equipment (52) (23)
2,150 2,387
Expansionary capital expenditure includes the cash flows from derivatives related to capital expenditure and is net of direct funding for capital expenditure
received from non-controlling interests.

CAPITAL BASE
13. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

Overview
Investments in associates and joint ventures represent businesses the Group does not control, but instead exercises joint control or significant influence.
These include the associate Cerrejón (Coal) and the joint ventures Ferroport (Iron Ore and Manganese) and Samancor (Iron Ore and Manganese).
2017 2016
Joint Joint
US$ million Associates ventures Total Associates ventures Total
At 1 January 1,371 603 1,974 1,374 443 1,817
Net income from associates and joint ventures 296 271 567 148 130 278
Dividends received (263) (243) (506) (139) (28) (167)
Investments in equity and capitalised loans 86 – 86 34 17 51
Return of capital and repayment of loans – – – (58) (4) (62)
Impairments (164) – (164) (19) – (19)
Other movements (21) (24) (45) – 36 36
Currency movements 45 (1) 44 31 9 40
At 31 December 1,350 606 1,956 1,371 603 1,974
Further information
The Group’s total investments in associates and joint ventures include long-term loans of $330 million (2016: $273 million) which in substance form part of the
Group’s net investment. These loans are not repayable in the foreseeable future.
The Group’s share of the results of the associates and joint ventures is as follows:
Income statement
Revenue 2,407 1,764
Operating costs (before special items and remeasurements) (1,402) (1,329)
Associates' and joint ventures' underlying EBIT 1,005 435
Net finance costs (53) (44)
Income tax expense (373) (123)
Non-controlling interests (2) 3
Net income from associates and joint ventures (before special items and remeasurements) 577 271
Special items and remeasurements (12) 1
Special items and remeasurements tax 2 6
Balance sheet
Joint
US$ million Associates ventures Total
Non-current assets 1,449 865 2,314
Current assets 594 457 1,051
Current liabilities (313) (248) (561)
Non-current liabilities (380) (468) (848)
Net assets as at 31 December 2017 1,350 606 1,956
Net assets as at 31 December 2016 1,371 603 1,974
Segmental information
Revenue Underlying EBIT Depreciation and amortisation Underlying EBITDA
US$ million 2017 2016 2017 2016 2017 2016 2017 2016
De Beers 18 73 2 3 1 3 3 6
Platinum 148 156 (16) (8) 26 16 10 8
Iron Ore and Manganese 1,021 625 534 209 55 49 589 258
Coal 1,220 910 486 236 104 103 590 339
Corporate and other – – (1) (5) – – (1) (5)
2,407 1,764 1,005 435 186 171 1,191 606
Aggregate investment
De Beers 23 50
Platinum 200 289
Coal 1,127 1,055
1,956 1,974
Accounting policy
See note 38I for the Group’s accounting policy on associates and joint arrangements, which includes joint ventures.

CAPITAL BASE
14. FINANCIAL ASSET INVESTMENTS

Overview
Financial asset investments include two main categories. Loans and receivables principally comprise loans to and deposits with third parties including the
Group’s associates and joint ventures. Assets classified as available for sale represent investments in equities of other companies.
2017 2016
Available Available
Loans and for sale Loans and for sale
US$ million receivables investments Total receivables investments Total
At 1 January 701 134 835 662 184 846
Additions – 6 6 – 3 3
Interest receivable 35 – 35 47 – 47
Net loans repaid (168) – (168) (61) – (61)
Disposals – (55) (55) (27) (233) (260)
Impairments (77) – (77) (16) – (16)
Fair value and other movements (48) 18 (30) – 147 147
Currency movements 3 12 15 96 33 129
At 31 December 446 115 561 701 134 835
Accounting policy
See note 38D for the Group’s accounting policies on financial asset investments.
15. PROVISIONS FOR LIABILITIES AND CHARGES

Overview
Environmental Employee Onerous
US$ million restoration Decommissioning benefits contracts Other Total
At 1 January 2017 (1,208) (538) (350) (87) (357) (2,540)
Charged to the income statement (91) (16) (85) – (193) (385)
Capitalised (65) (66) – – (4) (135)
Unwinding of discount (63) (33) (1) (5) – (102)
Amounts applied 41 2 191 24 99 357
Unused amounts reversed 7 47 84 20 53 211
Other movements 6 15 – (22) (2) (3)
Currency movements (115) (41) (21) (6) (17) (200)
At 31 December 2017 (1,488) (630) (182) (76) (421) (2,797)
Current (133) (12) (154) (19) (244) (562)
Non-current (1,355) (618) (28) (57) (177) (2,235)
Further information
Environmental restoration
The Group has an obligation to undertake restoration, rehabilitation and environmental work when environmental disturbance is caused by the development
or ongoing production of a mining property. A provision is recognised for the present value of such costs, based on management’s best estimate of the legal
and constructive obligations incurred. Changes in legislation could result in changes in provisions recognised. It is anticipated that the majority of these costs
will be incurred over a period in excess of 20 years.
Decommissioning
Provision is made for the present value of costs relating to the decommissioning of plant or other site restoration work. It is anticipated that the majority of
these costs will be incurred over a period in excess of 20 years.
The pre-tax, real discount rates that have been used in calculating the environmental restoration and decommissioning liabilities as at 31 December 2017 and
31 December 2016, in the principal currencies in which these liabilities are denominated, are as follows: US dollar: 2.1%; South African rand: 4%; Australian
dollar: 3%; Chilean peso: 3%; and Brazilian real: 6%.
Employee benefits
Provision is made for statutory or contractual employee entitlements where there is significant uncertainty over the timing or amount of settlement. It is
anticipated that these costs will be incurred when employees choose to take their benefits.
Onerous contracts
Provision is made for the present value of certain long-term contracts where the unavoidable cost of meeting the Group’s obligations is expected to exceed the
benefits to be received. It is anticipated that the majority of these costs will be incurred over a period of up to nine years.
Other
Other provisions primarily relate to restructuring costs, indemnities, legal and other claims. A provision for $101 million (2016: nil) is included for the
settlement of class action claims (see note 8 for further details). It is anticipated that the majority of these costs will be incurred over a period of up to five years.

CAPITAL BASE
15. PROVISIONS FOR LIABILITIES AND CHARGES continued

Environmental rehabilitation trusts
The Group makes contributions to controlled funds that were established to meet the cost of some of its restoration and environmental rehabilitation liabilities
in South Africa. The funds comprise the following investments:

Equity 160 135
Bonds 186 153
Cash 75 65
421 353
These assets are primarily denominated in South African rand. Cash is held in short-term fixed deposits or earns interest at floating inter-bank rates. Bonds
earn interest at a weighted average fixed rate of 8.0% (2016: 8.0%) for an average period of three years (2016: three years). Equity investments are recorded
at fair value through profit and loss and bonds are recorded at amortised cost.
These funds are not available for the general purposes of the Group. All income from these assets is reinvested to meet specific environmental obligations.
These obligations are included in provisions stated above.
Accounting policy
See note 38D for the Group’s accounting policy on environmental restoration and decommissioning obligations.
16. DEFERRED TAX

Overview
The movement in net deferred tax liabilities during the year is as follows:

At 1 January (2,507) (2,339)
Charged to the income statement (240) (185)
(Charged)/credited to the statement of comprehensive income (19) 43
Credited directly to equity 10 110
Transfers to held for sale (4) –
Disposal of business – 38
Currency movements (237) (174)
At 31 December (2,997) (2,507)
Comprising:
Deferred tax assets 1,191 1,013
Deferred tax liabilities (4,188) (3,520)
Further information
The amount of deferred tax recognised in the Consolidated balance sheet is as follows:

Deferred tax assets
Tax losses 292 363
Post employment benefits 29 31
Share-based payments 33 15
Enhanced tax depreciation 430 362
Depreciation in excess of capital allowances 500 372
Other temporary differences (93) (130)
1,191 1,013
Deferred tax liabilities
Capital allowances in excess of depreciation (3,030) (2,642)
Fair value adjustments (853) (775)
Tax losses 27 27
Provisions 385 324
Withholding tax (396) (237)
Other temporary differences (321) (217)
(4,188) (3,520)
The deferred tax liability on other temporary differences of $321 million (2016: $217 million) arises primarily in relation to deferred stripping costs, partially
offset by an amount related to post-employment benefits.

CAPITAL BASE
16. DEFERRED TAX continued

The amount of deferred tax (charged)/credited to the Consolidated income statement is as follows:

Capital allowances in excess of depreciation (182) (384)
Fair value adjustments 15 (25)
Tax losses 49 (48)
Provisions 164 22
Withholding tax (159) 163
Other temporary differences (127) 87
(240) (185)
Deferred tax charged to the income statement includes a charge of $34 million (2016: credit of $74 million) relating to deferred tax remeasurements and
a charge of $87 million (2016: credit of $99 million) relating to deferred tax on special items.
The Group has the following balances in respect of which no deferred tax asset has been recognised:
2017 2016
Tax Tax Other Tax Tax Other
losses – losses – temporary losses – losses – temporary
US$ million revenue capital differences Total revenue capital differences Total
Expiry date
Greater than one year, less than five years 17 – – 17 575 – – 575
Greater than five years 38 – 2,556 2,594 – – 3,186 3,186
No expiry date 3,536 715 2,473 6,724 2,784 1,051 3,363 7,198
3,591 715 5,029 9,335 3,359 1,051 6,549 10,959
No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches, associates and interests in
joint arrangements where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differences
will not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches,
associates and interests in joint arrangements is represented by the contribution of those investments to the Group’s retained earnings and amounted to
$18,609 million (2016: $17,804 million).
Accounting policy
See note 38G for the Group’s accounting policy on tax.

WORKING CAPITAL
This section includes analysis of inventories, receivables and payables. These balances principally relate to current assets
and liabilities held to support operating activities.

Inventories 4,441 3,727 During the year there were net cash inflows of $0.9 billion on inventories and
Trade and other receivables 3,073 3,044 operating receivables and payables. The net reduction in inventories, trade
Trade and other payables (4,590) (3,500) and other receivables and trade and other payables of $0.3 billion also
2,924 3,271 includes other movements such as foreign exchange.
17. INVENTORIES
Overview
Inventories represent goods held for sale in the ordinary course of business (finished products), ore being processed into a saleable condition (work in
progress) and spares, raw materials and consumables to be used in the production process (raw materials and consumables).

Raw materials and consumables 817 882
Work in progress 1,703 1,220
Finished products 1,921 1,625
4,441 3,727
Further information
The cost of inventories recognised as an expense and included in cost of sales amounted to $16,264 million (2016: $14,006 million). The write-down of
inventories to net realisable value (net of revaluation of provisionally priced purchases) amounted to $105 million (2016: $96 million).
Accounting for inventory involves the use of judgements and estimates, particularly related to the measurement and valuation of work in progress inventory
within the production process. Certain estimates, including expected metal recoveries and work in progress volumes, are calculated by engineers using
available industry, engineering and scientific data. Estimates used are periodically reassessed by the Group taking into account technical analysis and
historical performance.
Accounting policy
See note 38E for the Group’s accounting policy on inventories.
18. TRADE AND OTHER RECEIVABLES

Overview
Trade receivables are amounts due from the Group’s customers for commodities and services the Group has provided. Many of the Group’s sales are
provisionally priced, which means that the price is finalised at a date after the sale takes place. When there is uncertainty about the final amount that will be
received, the receivable is marked to market based on the forward price.
This balance also includes amounts receivable for VAT and other indirect taxes, prepaid expenses and amounts receivable from others for non-sale
transactions.
2017 2016
Due within Due after Due within Due after
US$ million one year one year Total one year one year Total
Trade receivables 1,355 206 1,561 1,570 158 1,728
Tax receivables 407 353 760 316 294 610
Prepayments and accrued income 166 50 216 154 37 191
Other receivables 208 328 536 192 323 515
2,136 937 3,073 2,232 812 3,044
Further information
Of the year end trade receivables balance, $42 million (2016: $29 million) were past due, stated after an associated impairment provision of $18 million
(2016: $13 million). The overdue debtor ageing profile is typical of the industry in which certain of the Group’s businesses operate. Given this, the use of
payment security instruments (including letters of credit from acceptable financial institutions), and the nature of the related counterparties, these amounts
are considered recoverable. The historical level of customer default is minimal and as a result the credit quality of year end trade receivables is considered
to be high.
Trade receivables do not incur any interest, are principally short-term in nature and are measured at their nominal value (with the exception of receivables
relating to provisionally priced sales, as set out in the revenue recognition accounting policy, see note 38C), net of appropriate provision for estimated
irrecoverable amounts. Such provisions are raised based on an assessment of debtor ageing, past experience or known customer circumstances.

WORKING CAPITAL
19. TRADE AND OTHER PAYABLES

Overview
Trade and other payables include amounts owed to suppliers, tax authorities and other parties that are typically due to be settled within 12 months. The total
also includes deferred income, which represents monies received from customers but for which we have not yet delivered the associated service. These
amounts are recognised as revenue when the service is provided. Other payables includes deferred consideration in respect of business combinations,
dividends payable to non-controlling interests and employee-related payables.

Trade payables 2,214 1,700
Accruals 1,366 815
Deferred income 453 166
Tax and social security 68 54
Other payables 489 765
4,590 3,500
Further information
Trade payables are non interest bearing and are measured at their nominal value (with the exception of payables relating to provisionally priced commodity
purchases which are marked to market using the appropriate forward price) until settled. Other payables, of which $89 million (2016: $116 million) is included
within non-current liabilities, includes deferred consideration in respect of business combinations, dividends payable to non-controlling interests and
employee-related payables.

NET DEBT AND FINANCIAL RISK MANAGEMENT

Net debt decreased from $8.5 billion to $4.5 billion during the year, driven by operating cash inflows. Gearing has decreased
from 26% at 31 December 2016 to 13% at 31 December 2017 as net debt decreased coupled with an increase in total capital.

Net assets 28,882 24,325 Net debt is calculated as total borrowings less cash and cash equivalents
Net debt including related derivatives (note 20) 4,501 8,487 (including derivatives that provide an economic hedge of net debt).
Total capital 33,383 32,812 Total capital is calculated as ‘Net assets’ (as shown in the Consolidated
Gearing 13% 26% balance sheet) excluding net debt.
20. NET DEBT

Overview
Movement in net debt
Cash Medium and Net debt Derivatives Net debt
and cash Short term long term excluding hedging including
US$ million equivalents borrowings borrowings derivatives net debt derivatives
At 1 January 2016 6,889 (1,634) (16,318) (11,063) (1,838) (12,901)
Cash flow (906) 1,834 2,685 3,613 414 4,027
Reclassifications – (1,977) 1,977 – – –
Movement in fair value – 19 79 98 55 153
Other non-cash movements – (12) 59 47 – 47
Currency movements 61 (29) 155 187 – 187
At 31 December 2016 6,044 (1,799) (11,363) (7,118) (1,369) (8,487)
Cash flow 1,549 1,838 318 3,705 419 4,124
Reclassifications – (1,077) 1,077 – – –
Movement in fair value – (7) 210 203 601 804
Other non-cash movements – (151) (144) (295) – (295)
Currency movements 199 (128) (718) (647) – (647)
At 31 December 2017 7,792 (1,324) (10,620) (4,152) (349) (4,501)
Further information
Reconciliation to the Consolidated balance sheet
Medium and
Cash and cash equivalents Short term borrowings long term borrowings
US$ million 2017 2016 2017 2016 2017 2016
Balance sheet 7,800 6,051 (1,351) (1,806) (10,620) (11,363)
Balance sheet – disposal groups 19 – – – – –
Bank overdrafts (27) (7) 27 7 – –
Net cash/(debt) classifications 7,792 6,044 (1,324) (1,799) (10,620) (11,363)
South Africa net cash

The Group operates in South Africa where the existence of exchange controls may restrict the use of certain cash balances. The Group therefore monitors the
cash and debt associated with these operations separately. These restrictions are not expected to have a material effect on the Group’s ability to meet its
ongoing obligations. Below is a breakdown of net cash in South Africa.

Cash and cash equivalents 4,276 2,749
Short term borrowings (34) (61)
Medium and long term borrowings (798) (1,130)
Net cash excluding derivatives 3,444 1,558
Derivatives hedging net debt 2 –
Net cash including derivatives 3,446 1,558
Debit valuation adjustment

The debit valuation adjustments reduce the valuation of derivative liabilities hedging net debt reflecting the impact of the Group’s own credit risk. These
adjustments are excluded from the Group’s definition of net debt (as detailed on page 195). The movement in the debit valuation adjustments are as follows:

At 1 January 73 555
Movement in fair value (64) (482)
At 31 December 9 73
Accounting policy
See note 38F for the Group’s accounting policy on cash and debt.

21. BORROWINGS
Overview
The Group accesses borrowings mostly in capital markets through bonds issued under the Euro Medium Term Note (EMTN) programme, the
South African Domestic Medium Term Note (DMTN) programme, the Australian Medium Term Note (AMTN) programme and through accessing the
US bond markets. The Group uses interest rate and cross currency swaps to ensure that the majority of the Group’s borrowings are floating rate US dollar
denominated.
In March 2017, the Group completed a bond buyback transaction consisting of Euro and Sterling denominated bonds with maturities from April 2018
to June 2019. The Group used $1.27 billion of cash to retire $1.25 billion of contractual repayment obligations (including derivatives hedging the bonds).
In April 2017, the Group issued $300 million 3.75% senior notes due 2022 and $700 million 4.75% senior notes due 2027 through accessing the
US bond markets.
In September 2017, the Group completed a bond buyback transaction consisting of Euro and US dollar denominated bonds with maturities from September
2018 to November 2020. The Group used $1.93 billion of cash to retire $1.86 billion of contractual repayment obligations (including derivatives hedging
the bonds).
In September 2017, the Group issued $650 million 3.625% senior notes due 2024 and $650 million 4% senior notes due 2027 through accessing the US bond
markets. The Group also issued €600 million 1.625% senior notes due 2025 under the EMTN programme.
On 7 February 2018, the Group gave notice that it will redeem in full its outstanding $750 million 9.375% US bond due April 2019 on 9 March 2018.
Further information
2017 2016
Medium and Contractual Medium and Contractual
Short term long term Total repayment at Short term long term Total repayment at
US$ million borrowings borrowings borrowings hedged rates borrowings borrowings borrowings hedged rates
Secured
Bank loans and overdrafts 18 39 57 57 13 48 61 61
Obligations under finance leases 13 68 81 81 8 53 61 61
31 107 138 138 21 101 122 122
Unsecured
Bank loans and overdrafts 24 123 147 147 12 457 469 469
Bonds issued under EMTN programme
1.75% €594m bond due November 2017 – – – – 633 – 633 799
1.75% €258m bond due April 2018 (1) 309 – 309 355 – 574 574 741
6.875% £92m bond due May 2018 (1) 125 – 125 181 – 348 348 529
2.5% €160m bond due September 2018 (1) 194 – 194 204 – 521 521 616
1.028% JPY10,000m bond due December 2018 89 – 89 97 – 86 86 97
2.75% €357m bond due June 2019 (1) – 439 439 448 – 823 823 941
1.5% €205m bond due April 2020 (1) – 264 264 226 – 638 638 659
2.875% €354m bond due November 2020 (1) – 426 426 477 – 669 669 807
2.5% €750m bond due April 2021 – 930 930 977 – 830 830 977
3.5% €750m bond due March 2022 – 979 979 992 – 884 884 992
3.25% €750m bond due April 2023 – 954 954 1,033 – 857 857 1,033
1.625% €600m bond due September 2025 – 710 710 714 – – – –
US bonds
2.625% $452m bond due April 2017 – – – – 453 – 453 452
2.625% $635m bond due September 2017 – – – – 633 – 633 635
9.375% $750m bond due April 2019 – 763 763 750 – 781 781 750
3.625% $352m bond due May 2020 (1) – 346 346 352 – 841 841 850
4.45% $281m bond due September 2020 (1) – 285 285 281 – 515 515 500
4.125% $500m bond due April 2021 – 499 499 500 – 504 504 500
3.75% $300m bond due April 2022 – 295 295 300 – – – –
4.125% $600m bond due September 2022 – 583 583 600 – 586 586 600
3.625% $650m bond due September 2024 – 631 631 650 – – – –
4.875% $650m bond due May 2025 – 638 638 650 – 640 640 650
4.75% $700m bond due April 2027 – 693 693 700 – – – –
4% $650m bond due September 2027 – 629 629 650 – – – –
Bonds issued under AMTN programme
5.75% AUD500m bond due November 2018 397 – 397 470 – 371 371 470
Bonds issued under DMTN programme
JIBAR+1.38% R600m bond due March 2017 – – – – 44 – 44 44
9.27% R1,400m bond due March 2019 – 114 114 114 – 102 102 102
9.49% R650m bond due April 2021 – 54 54 53 – 48 48 47
JIBAR+1.47% R400m bond due April 2021 – 31 31 32 – 29 29 29
Interest payable and other loans 182 127 309 309 10 158 168 168
1,320 10,513 11,833 12,262 1,785 11,262 13,047 14,457
Total borrowings 1,351 10,620 11,971 12,400 1,806 11,363 13,169 14,579
(1)
Outstanding value of bond shown subsequent to bond buyback transactions completed in March and September 2017.
Accounting policy
See note 38F for the Group’s accounting policy on bank borrowings.

22. FINANCIAL INSTRUMENTS AND DERIVATIVES

Financial instruments overview
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is determined by
reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows, considered to be reasonable
and consistent with those that would be used by a market participant, and based on observable market data where available (for example forward exchange
rate, interest rate or commodity price curve), unless carrying value is considered to approximate fair value.
Where discounted cash flow models based on management’s assumptions are used, the resulting fair value measurements are considered to be at level 3 in
the fair value hierarchy, as defined in IFRS 13 Fair Value Measurement, as they depend to a significant extent on unobservable valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
2017
At fair value Financial
through profit Loans and Available Designated liabilities at
US$ million and loss receivables for sale into hedges amortised cost Total
Financial assets
Trade and other receivables 796 1,356 – – – 2,152
Derivative financial assets 83 – – 307 – 390
Cash and cash equivalents – 7,800 – – – 7,800
Financial asset investments – 446 115 – – 561
879 9,602 115 307 – 10,903
Financial liabilities
Trade and other payables (706) – – – (3,363) (4,069)
Derivative financial liabilities (738) – – (58) – (796)
Borrowings – – – (11,496) (475) (11,971)
(1,444) – – (11,554) (3,838) (16,836)
Net financial (liabilities)/assets (565) 9,602 115 (11,247) (3,838) (5,933)
2016
At fair value Financial
through profit Loans and Available Designated liabilities at
US$ million and loss receivables for sale into hedges amortised cost Total
Financial assets
Trade and other receivables 1,090 1,199 – – – 2,289
Derivative financial assets 110 – – 483 – 593
Cash and cash equivalents – 6,051 – – – 6,051
Financial asset investments – 701 134 – – 835
1,200 7,951 134 483 – 9,768
Trade and other payables (591) – – – (2,689) (3,280)
Derivative financial liabilities (1,865) – – (10) – (1,875)
Borrowings – – – (12,337) (832) (13,169)
(2,456) – – (12,347) (3,521) (18,324)
Net financial (liabilities)/assets (1,256) 7,951 134 (11,864) (3,521) (8,556)
Trade and other receivables exclude prepayments and tax receivables. Trade and other payables exclude tax, social security and deferred income.
Fair value hierarchy
An analysis of financial assets and liabilities carried at fair value is set out below:
2017 2016
US$ million Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
At fair value through profit and loss
Provisionally priced trade receivables – 558 – 558 – 877 – 877
Other receivables – – 238 238 – – 213 213
Derivatives hedging net debt – 30 – 30 – 10 – 10
Other derivatives – 53 – 53 6 94 – 100
Designated into hedges
Derivatives hedging net debt – 307 – 307 – 483 – 483
Available for sale investments
Financial asset investments 69 – 46 115 77 – 57 134
69 948 284 1,301 83 1,464 270 1,817
At fair value through profit and loss
Provisionally priced trade payables – (594) – (594) – (466) – (466)
Other payables – – (112) (112) – – (125) (125)
Derivatives hedging net debt – (628) – (628) – (1,852) – (1,852)
Other derivatives (2) (117) – (119) (21) (65) – (86)
Designated into hedges
Derivatives hedging net debt – (58) – (58) – (10) – (10)
Debit valuation adjustment to derivative liabilities – 9 – 9 – 73 – 73
(2) (1,388) (112) (1,502) (21) (2,320) (125) (2,466)
Net assets/(liabilities) carried at fair value 67 (440) 172 (201) 62 (856) 145 (649)

22. FINANCIAL INSTRUMENTS AND DERIVATIVES continued
Fair value hierarchy Valuation technique

Level 1 Valued using unadjusted quoted prices in active markets for identical financial instruments. This category
includes listed equity shares and quoted futures.
Level 2 Instruments in this category are valued using valuation techniques where all of the inputs that have a
significant effect on the valuation are directly or indirectly based on observable market data. This category
includes provisionally priced trade receivables and payables and over-the-counter derivatives.
Level 3 Instruments in this category have been valued using a valuation technique where at least one input (which
could have a significant effect on the instrument’s valuation) is not based on observable market data.
Where inputs can be observed from market data without undue cost and effort, the observed input is used.
Otherwise, management determines a reasonable estimate for the input. This category includes
contingent consideration, receivables relating to disposals and unlisted equity investments.
The movements in the fair value of the level 3 financial assets and liabilities are shown as follows:
Assets Liabilities
US$ million 2017 2016 2017 2016
At 1 January 270 109 (125) (555)
Net profit/(loss) recorded in the income statement 2 (3) 17 39
Net profit recorded in the statement of comprehensive income 34 31 – –
Additions 19 131 – (136)
Settlements and disposals (59) – – 526
Currency movements 18 2 (4) 1
At 31 December 284 270 (112) (125)
For the level 3 financial assets and liabilities, changing certain estimated inputs to reasonably possible alternative assumptions does not change the fair value
significantly.
Further information on financial instruments

Borrowings designated in fair value hedges represent listed debt which is held at amortised cost, adjusted for the fair value of the hedged interest rate risk.
The fair value of these borrowings is $11,900 million (2016: $12,405 million), which is measured using quoted indicative broker prices and consequently
categorised as level 2 in the fair value hierarchy. The carrying value of the remaining borrowings at amortised cost of $475 million (2016: $832 million),
principally comprising bank borrowings, is considered to approximate the fair value.
Offsetting of financial assets and liabilities
The Group offsets financial assets and liabilities and presents them on a net basis in the Consolidated balance sheet only where there is a legally enforceable
right to offset the recognised amounts, and the Group intends to either settle the recognised amounts on a net basis or to realise the asset and settle the
liability simultaneously.
At 31 December 2017, certain over-the-counter derivatives entered into by the Group and recognised at fair value through profit and loss are both subject
to enforceable ISDA master netting arrangements and intended to be settled on a net basis. In accordance with the requirements of IAS 32 Financial
Instruments: Presentation, the positions of these derivatives have been offset; those in an asset position totalling $62 million (2016: $45 million) were offset
against those in a liability position totalling $165 million (2016: $57 million). The net liability position of $103 million (2016: $12 million) is presented within
derivative liabilities in the Consolidated balance sheet.
Derivatives overview
The Group utilises derivative instruments to manage certain market risk exposures. The Group does not use derivative financial instruments for speculative
purposes, however it may choose not to designate certain derivatives as hedges for accounting purposes. Such derivatives are classified as ‘Held for trading’
and fair value movements are recorded in the Consolidated income statement.
The use of derivative instruments is subject to limits and the positions are regularly monitored and reported to senior management.
Fair value hedges
The majority of interest rate swaps (taken out to swap the Group’s fixed rate borrowings to floating rate, in accordance with the Group’s policy) have been
designated as fair value hedges. The carrying value of the hedged debt is adjusted at each balance sheet date to reflect the impact on its fair value of changes
in market interest rates. Changes in the fair value of the hedged debt are offset against fair value changes in the interest rate swap and recognised in the
Consolidated income statement as financing remeasurements. Recognised in the Consolidated income statement is a gain on fair value hedged items of
$203 million (2016: $98 million), offset by a loss on fair value hedging instruments of $213 million (2016: $106 million).
Held for trading
The Group may choose not to designate certain derivatives as hedges. This may occur where the Group is economically hedged but IAS 39 hedge accounting
cannot be achieved or where gains and losses on both the derivative and hedged item naturally offset in the Consolidated income statement, as is the case for
certain cross currency swaps of non-US dollar debt. Fair value changes on these derivatives are recognised in the Consolidated income statement as
remeasurements or within underlying earnings in accordance with the policy set out in note 8.

22. FINANCIAL INSTRUMENTS AND DERIVATIVES continued

Further information on derivatives
Fair value of derivative positions
The fair value of the Group’s open derivative positions at 31 December (excluding normal purchase and sale contracts held off balance sheet), recorded within
‘Derivative financial assets’ and ‘Derivative financial liabilities’, is as follows:
Current Non-current
2017 2016 2017 2016
US$ million Asset Liability Asset Liability Asset Liability Asset Liability
Derivatives hedging net debt
Fair value hedge
Interest rate swaps 21 – 9 – 286 (58) 474 (10)
Held for trading
Forward foreign currency contracts 7 (10) 10 (9) – – – –
Cross currency swaps – (209) – (178) 23 (409) – (1,665)
Debit valuation adjustment to derivative
liabilities – – – 1 – 9 – 72
28 (219) 19 (186) 309 (458) 474 (1,603)
Other derivatives 53 (117) 90 (86) – (2) 10 –
Total derivatives 81 (336) 109 (272) 309 (460) 484 (1,603)
Other derivatives primarily relate to forward foreign currency contracts hedging capital expenditure, forward commodity contracts and other commodity
contracts that are accounted for as ‘Held for trading’. These marked to market valuations are not predictive of the future value of the hedged position, nor of the
future impact on the profit of the Group. The valuations represent the cost of closing all hedge contracts at 31 December, at market prices and rates available at
the time.
Fair value of financial instruments
Certain of the Group’s financial instruments, principally derivatives, are required to be measured on the balance sheet at fair value. Where a quoted market
price for an identical instrument is not available, a valuation model is used to estimate the fair value based on the net present value of the expected cash flows
under the contract. Valuation assumptions are usually based on observable market data (for example forward foreign exchange rate, interest rate or
commodity price curves) where available.
Accounting policies
See notes 38D and 38F for the Group’s accounting policies on financial asset investments, impairment of financial assets, derivative financial instruments and
hedge accounting.
IFRS 9 Financial Instruments
The impact of applying IFRS 9 Financial Instruments for the year ended 31 December 2017 would have been to reduce the Group’s opening retained earnings
at 1 January 2017 by $18 million, to decrease the Group’s operating costs by $17 million and increase the Group’s profit before tax and underlying earnings by
$17 million for the year ended 31 December 2017. Further information is provided in note 38A.

23. FINANCIAL RISK MANAGEMENT

Overview
The Board approves and monitors the risk management processes, including documented treasury policies, counterparty limits and controlling and reporting
structures. The risk management processes of the Group’s independently listed subsidiaries are in line with the Group’s own policy.
The types of risk exposure, the way in which such exposure is managed and quantification of the level of exposure in the Consolidated balance sheet at
31 December is as follows:
••liquidity risk;
••credit risk;
••commodity price risk;
••foreign exchange risk; and
••interest rate risk.
A. Liquidity risk
The Group ensures that there are sufficient committed loan facilities (including refinancing, where necessary) in order to meet short-term business
requirements, after taking into account cash flows from operations and its holding of cash and cash equivalents, as well as any Group distribution restrictions
that exist. In addition, certain projects may be financed by means of limited recourse project finance, if appropriate.
Certain borrowing facilities within the Group are the subject of financial covenants that vary from facility to facility, but which would be considered normal for
such facilities, such as the ratio of net debt to tangible net worth, and the respective borrower was in compliance with these facilities throughout 2017.
The expected undiscounted cash flows of the Group’s net debt related and other financial liabilities, by remaining contractual maturity, based on conditions
existing at the balance sheet date are as follows:
2017
Net debt related financial liabilities
Expected Derivatives Other
future interest hedging financial
US$ million Borrowings payments net debt liabilities Total
Amount due for repayment within one year (1,174) (469) (195) (3,985) (5,823)
Greater than one year, less than two years (1,338) (382) (19) (22) (1,761)
Greater than two years, less than three years (1,450) (321) (39) – (1,810)
Greater than three years, less than four years (1,592) (280) (72) – (1,944)
Greater than four years, less than five years (1,811) (222) (65) – (2,098)
Greater than five years (4,313) (513) (79) (228) (5,133)
Total due for repayment after more than one year (10,504) (1,718) (274) (250) (12,746)
Total (11,678) (2,187) (469) (4,235) (18,569)
2016
Net debt related financial liabilities
Expected Derivatives Other
future interest hedging financial
US$ million Borrowings payments net debt liabilities Total
Amount due for repayment within one year (1,801) (466) (150) (3,164) (5,581)
Greater than one year, less than two years (1,895) (460) (556) (31) (2,942)
Greater than two years, less than three years (1,686) (350) (121) – (2,157)
Greater than three years, less than four years (3,090) (268) (180) – (3,538)
Greater than four years, less than five years (1,460) (153) (166) – (1,779)
Greater than five years (2,900) (252) (374) (304) (3,830)
Total due for repayment after more than one year (11,031) (1,483) (1,397) (335) (14,246)
Total (12,832) (1,949) (1,547) (3,499) (19,827)
The Group had the following undrawn committed borrowing facilities at 31 December:

Expiry date
Within one year 490 660
Greater than one year, less than two years 598 1,446
Greater than two years, less than three years 7,676 1,175
Greater than three years, less than four years – 6,203
Greater than four years, less than five years 244 223
9,008 9,707
Undrawn committed borrowing facilities expiring within one year include undrawn South African rand facilities equivalent to $0.3 billion (2016: $0.5 billion) in
respect of facilities with a 364 day maturity which roll automatically on a daily basis, unless notice is served.

23. FINANCIAL RISK MANAGEMENT continued

B. Credit risk
Credit risk is the risk that a counterparty to a financial instrument will cause a loss to the Group by failing to pay its obligation.
The Group’s principal financial assets are cash, trade and other receivables, investments and derivative financial instruments. The Group’s maximum exposure
to credit risk primarily arises from these financial assets and is as follows:

Cash and cash equivalents 7,800 6,051
Trade and other receivables 2,152 2,289
Financial asset investments 446 701
Derivative financial assets 390 593
10,788 9,634
The Group limits credit risk on liquid funds and derivative financial instruments through diversification of exposures with a range of financial institutions
approved by the Board. Counterparty limits are set for each financial institution with reference to credit ratings assigned by Standard & Poor’s, Moody’s and
Fitch Ratings, shareholder equity (in case of relationship banks) and fund size (in case of asset managers).
Given the diverse nature of the Group’s operations (both in relation to commodity markets and geographically), and the use of payment security instruments
(including letters of credit from financial institutions), it does not have significant concentration of credit risk in respect of trade receivables, with exposure
spread over a large number of customers.
The classification of trade and other receivables exclude prepayments and tax receivables and the classification of financial asset investments exclude
available for sale investments.
C. Commodity price risk
The Group’s earnings are exposed to movements in the prices of the commodities it produces.
The Group’s policy is to sell its products at prevailing market prices and is generally not to hedge commodity price risk, although some hedging may be
undertaken for strategic reasons. In such cases, the Group generally uses forward contracts and other derivative instruments to hedge the price risk.
Certain of the Group’s sales and purchases are provisionally priced, meaning that the selling price is determined normally 30 to 180 days after delivery
to the customer, based on quoted market prices stipulated in the contract, and as a result are susceptible to future price movements. The exposure of the
Group’s financial assets and liabilities to commodity price risk is as follows:
2017 2016
Commodity price linked Commodity price linked
Not Not
Subject to linked to Subject to linked to
price Fixed commodity price Fixed commodity
US$ million movements price price Total movements price price Total
Total net financial instruments
(excluding derivatives) 262 378 (6,167) (5,527) 421 464 (8,159) (7,274)
Derivatives (86) – (320) (406) (28) – (1,254) (1,282)
176 378 (6,487) (5,933) 393 464 (9,413) (8,556)
Commodity price linked financial instruments subject to price movements include provisionally priced trade receivables and trade payables.
Commodity price linked financial instruments at fixed price include receivables and payables for commodity sales and purchases not subject to price
adjustment at the balance sheet date.
D. Foreign exchange risk
As a global business, the Group is exposed to many currencies principally as a result of non-US dollar operating costs and, to a lesser extent, from non-US
dollar revenue.
The South African rand, Brazilian real and Australian dollar are the most significant non-US dollar currencies influencing costs. A strengthening of the US
dollar against the currencies to which the Group is exposed has a positive effect on the Group’s earnings. The Group’s policy is generally not to hedge such
exposures given the correlation, over the longer term, with commodity prices and the diversified nature of the Group, although exceptions can be approved
by the Group Management Committee.
In addition, currency exposures exist in respect of non-US dollar approved capital expenditure projects and non-US dollar borrowings in US dollar functional
currency entities. The Group’s policy is that such exposures should be hedged subject to a review of the specific circumstances of the exposure.
Net other financial liabilities (excluding net debt related balances and cash in disposal groups, but including the debit valuation adjustment attributable to
derivatives hedging net debt) are $1,432 million. This includes net assets of $208 million denominated in Brazilian real, and net liabilities of $217 million
denominated in US dollars, $295 million denominated in Australian dollars, $305 million denominated in Chilean pesos and $568 million denominated in
South African rand.

23. FINANCIAL RISK MANAGEMENT continued

E. Interest rate risk
Interest rate risk arises due to fluctuations in interest rates which impact on the value of short-term investments and financing activities. The Group is
principally exposed to US and South African interest rates.
The Group’s policy is to borrow funds at floating rates of interest given the link with economic output and therefore the correlation, over the longer term, with
commodity prices. The Group uses interest rate swap contracts to manage its exposure to interest rate movements on its debt.
In respect of financial assets, the Group’s policy is to invest cash at floating rates of interest and to maintain cash reserves in short-term investments (less than
one year) in order to maintain liquidity.
Analysis of interest rate risk associated with net debt balances and the impact of derivatives to hedge against this risk is included within the table below.
Net other financial liabilities (excluding net debt related balances and cash in disposal groups, but including the debit valuation adjustment attributable to
derivatives hedging net debt) of $1,432 million (2016: $72 million) are primarily non-interest bearing.
The table below reflects the exposure of the Group’s net debt to currency and interest rate risk.
2017
Cash Floating Fixed Derivatives Impact of
and cash rate rate hedging currency
US$ million equivalents borrowings borrowings net debt derivatives Total
US dollar 5,975 (154) (5,481) (351) (5,904) (5,915)
Euro 15 – (5,286) – 5,286 15
South African rand 1,445 (212) (178) 2 – 1,057
Brazilian real 99 – – – – 99
Australian dollar 121 – (399) – 399 121
Sterling 20 – (130) – 130 20
Other 117 – (104) – 89 102
Impact of interest derivatives – (11,497) 11,497 – – –
Total 7,792 (11,863) (81) (349) – (4,501)
2016
Cash Floating Fixed Derivatives Impact of
and cash rate rate hedging currency
US$ million equivalents borrowings borrowings net debt derivatives Total
US dollar 4,844 (168) (4,992) (1,369) (7,234) (8,919)
Euro 5 – (6,429) – 6,429 5
South African rand 894 (594) (160) – – 140
Brazilian real 96 – – – – 96
Australian dollar 74 – (371) – 371 74
Sterling 18 – (348) – 348 18
Other 113 – (100) – 86 99
Impact of interest derivatives – (12,337) 12,337 – – –
Total 6,044 (13,099) (63) (1,369) – (8,487)
Based on the net foreign currency and interest rate risk exposures detailed above, and taking into account the effects of the hedging arrangements in place,
management considers that earnings and equity are not materially sensitive to reasonable foreign exchange or interest rate movements in respect of the
financial instruments held as at 31 December 2017 or 2016.

EQUITY
Equity represents the capital of the Group attributable to Company TOTAL EQUITY
$28.9 bn
shareholders and non-controlling interests, and includes share capital,
share premium and reserves.
Total equity has increased from $24.3 billion to $28.9 billion in the year, principally reflecting the
profit for the year and net exchange gains on foreign operations, partially offset by dividends to
2017 $28.9 bn
2016 $24.3 bn
Company shareholders and non-controlling interests of $1.3 billion.
24. CALLED-UP SHARE CAPITAL AND CONSOLIDATED EQUITY ANALYSIS

Called-up share capital
2017 2016
Number of shares US$ million Number of shares US$ million
Called-up, allotted and fully paid:
5% cumulative preference shares of £1 each 50,000 – 50,000 –
Ordinary shares of 54 86/91 US cents each:

At 1 January and 31 December 1,405,465,332 772 1,405,465,332 772
Excluding shares held in treasury (but including the shares held by the Group in other structures, as outlined below) the number and carrying value of
called-up, allotted and fully paid ordinary shares as at 31 December 2017 was 1,404,613,432 and $772 million (2016: 1,402,242,532 and $770 million).
At general meetings, every member who is present in person has one vote on a show of hands and, on a poll, every member who is present in person or by
proxy has one vote for every ordinary share held.
In the event of winding up, the holders of the cumulative preference shares will be entitled to the repayment of a sum equal to the nominal capital paid up, or
credited as paid up, on the cumulative preference shares held by them and any accrued dividend, whether such dividend has been earned or declared or not,
calculated up to the date of the winding up.
Own shares
2017 2016
Own shares
Treasury shares 851,900 53 3,222,800 153
Own shares held by subsidiaries and employee benefit trusts 134,642,359 6,138 123,743,483 5,937
Total 135,494,259 6,191 126,966,283 6,090
The movement in treasury shares during the year is as follows:

2017 2016
Treasury shares
At 1 January 3,222,800 153 3,603,824 173
Transferred to employees in settlement of share awards (2,370,900) (100) (381,024) (20)
At 31 December 851,900 53 3,222,800 153
Included in Own shares are 112,300,129 (2016: 112,300,129) Anglo American plc shares held by Epoch Investment Holdings Proprietary Limited, Epoch Two
Investment Holdings Proprietary Limited and Tarl Investment Holdings Proprietary Limited, which are consolidated by the Group by virtue of their contractual
arrangements with Tenon Investment Holdings Proprietary Limited, a wholly owned subsidiary of Anglo American South Africa Limited. Further details of
these arrangements are provided in note 38B.
Included in the calculation of the dividend payable are 16,239,717 ($340 million) shares held in treasury and in the Employee Benefit Trust in respect of
forfeitable share awards granted to certain employees. Under the terms of these awards, the shares are beneficially owned by the respective employees, who
are entitled to receive dividends in respect of the shares. The shares are released to the employees on vesting of the awards, and any shares that do not vest
are returned to the Company or the Employee Benefit Trust. These shares are recognised on the balance sheet within Own shares and are excluded from the
calculation of basic earnings per share. They are included in the calculation of diluted earnings per share to the extent that the related share awards are dilutive
(see note 3).

EQUITY
24. CALLED-UP SHARE CAPITAL AND CONSOLIDATED EQUITY ANALYSIS continued

Consolidated equity analysis
Fair value and other reserves comprise:
Total
Share-based Available Cash fair value
payment for sale flow hedge Other and other
US$ million reserve reserve reserve reserves reserves
At 1 January 2016 499 303 11 123 936
Total comprehensive expense – (11) (11) – (22)
Equity settled share-based payment schemes (63) – – – (63)
At 31 December 2016 436 292 – 123 851
Total comprehensive expense – (281) (1) – (282)
Equity settled share-based payment schemes 6 – – – 6
Other – – – (3) (3)
At 31 December 2017 442 11 (1) 120 572
Other reserves comprise a capital redemption reserve of $115 million (2016: $115 million) and a legal reserve of $5 million (2016: $8 million).
25. NON-CONTROLLING INTERESTS

Overview
Non-controlling interests that are material to the Group relate to the following subsidiaries:
••Kumba Iron Ore Limited (Kumba Iron Ore), which is a company incorporated in South Africa and listed on the JSE. Its principal mining operations are the
Sishen and Kolomela iron ore mines which are located in South Africa. Non-controlling interests hold an effective 46.4% (2016: 46.8%) interest in the
operations of Kumba Iron Ore, comprising the 29.7% interest held by other shareholders in Kumba Iron Ore and the 23.7% (2016: 23.7%) of Kumba Iron
Ore’s principal operating subsidiary, Sishen Iron Ore Company Proprietary Limited, that is held by shareholders outside the Group.
••Anglo American Sur S.A. (Anglo American Sur), which is a company incorporated in Chile. Its principal operations are the Los Bronces and El Soldado
copper mines and the Chagres smelter, which are located in Chile. Non-controlling interests hold a 49.9% interest in Anglo American Sur.
2017 2016
Kumba Anglo Kumba Anglo
US$ million Iron Ore American Sur Other Total Iron Ore American Sur Other Total
Profit/(loss) attributable to
non-controlling interests 562 178 153 893 351 (162) 143 332
Equity attributable to non-controlling interests 1,726 1,735 2,449 5,910 1,214 1,946 2,149 5,309
Dividends paid to non-controlling interests (239) (317) (45) (601) – – (15) (15)
Other non-controlling interests consist of individually immaterial non-controlling interests.
Further information
Summarised financial information on a 100% basis and before inter-company eliminations for Kumba Iron Ore and Anglo American Sur is as follows:
2017 2016
Kumba Anglo Kumba Anglo
US$ million Iron Ore American Sur Iron Ore American Sur
Non-current assets 3,264 4,266 2,473 4,122
Current assets 1,952 1,056 1,709 1,188
Current liabilities (447) (635) (432) (379)
Non-current liabilities (973) (1,210) (1,079) (1,035)
Net assets 3,796 3,477 2,671 3,896
Revenue 3,486 2,152 2,801 1,676

Profit/(loss) for the financial year(1) 1,288 362 775 (324)
Total comprehensive income/(expense) 1,658 368 1,024 (336)
Net cash inflow from operating activities 1,315 895 933 529
(1)
Stated after special items and remeasurements.
There were no material changes in ownership interests in subsidiaries in 2017 or 2016.

EMPLOYEES
This section contains information about the Group’s current and former EMPLOYEES
69,000
employees as well as the associated cost of employment and post
employment benefits incurred by the Group.
The Group had on average 69,000 employees during 2017, down 11,000 since the prior year
principally as a result of divestments.
2017 69,000
2016 80,000
26. EMPLOYEE NUMBERS AND COSTS

Employee numbers
The average number of employees, excluding contractors and associates’ and joint ventures’ employees and including a proportionate share of employees
within joint operations by segment, was:
Thousand 2017 2016

De Beers 10 9
Copper 4 4
Platinum 36 45
Coal 9 10
Nickel 1 2
69 80
The average number of employees, excluding contractors and associates’ and joint ventures’ employees and including a proportionate share of employees
within joint operations, by principal location of employment was:
Thousand 2017 2016
South Africa 52 61
Other Africa 4 4
South America 8 9
North America 1 1
Australia and Asia 2 3
Europe 2 2
69 80
Employee costs
Payroll costs in respect of the employees included in the tables above were:

Wages and salaries 2,807 3,107
Social security costs 141 110
Share-based payments (note 28) 169 236
Total payroll costs 3,370 3,738
Reconciliation:
Less: employee costs capitalised (71) (258)
Less: employee costs included within special items 24 (144)
Employee costs included in operating costs 3,323 3,336
Post employment benefits include contributions to defined contribution pension and medical plans, current and past service costs related to defined benefit
pension and medical plans and other benefits provided to certain employees during retirement.
Key management
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly
or indirectly, including any director (executive and non-executive) of the Group. Key management comprises members of the Board and the Group
Management Committee.
Compensation for key management was as follows:

Salaries and short-term employee benefits 23 19
Social security costs 3 3
Termination benefits – 5
Share-based payments 23 17
52 47
Disclosure of directors’ emoluments, pension entitlements, share options and long term incentive plan awards required by the Companies Act 2006 and those
specified for audit by Part 3 and Schedule 8 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013
are included in the Remuneration report.

EMPLOYEES
27. RETIREMENT BENEFITS

Overview
The Group operates a number of defined contribution and defined benefit pension plans with the most significant plans being in South Africa and the
United Kingdom. It also operates post employment medical plans the majority of which are unfunded, principally in South Africa. The post employment
medical plans provide health benefits to retired employees and certain dependants.
Defined contribution plans

The charge for the year for defined contribution pension plans (net of amounts capitalised and special items) was $158 million (2016: $180 million) and for
defined contribution medical plans (net of amounts capitalised) was $74 million (2016: $64 million).
Defined benefit pension plans and post employment medical plans

Characteristics of plans
The majority of the defined benefit pension plans are funded. The assets of these plans are held separately from those of the Group, in independently
administered funds, in accordance with statutory requirements or local practice in the relevant jurisdiction. The responsibility for the governance of the funded
retirement benefit plans, including investment and funding decisions, lies with the Trustees of each scheme. The unfunded liabilities are principally in relation
to termination indemnity plans in Chile.
South Africa
The pension plans in South Africa are in surplus. All pension plans in South Africa are closed to new members and the majority of plans are closed to future
benefit accrual. As the plans are in surplus no employer contributions are currently being made. The Group’s provision of anti-retroviral therapy to HIV positive
staff does not significantly impact the post employment medical plan liability.
United Kingdom
The Group operates funded pension plans in the United Kingdom. These plans are closed to new members and to the future accrual of benefits. The Group
is committed to make payments to certain United Kingdom pension plans under deficit funding plans agreed with the respective Trustees.
Other
Other pension and post employment medical plans primarily comprise obligations in Chile where legislation requires employers to provide for a termination
indemnity, entitling employees to a cash payment made on the termination of an employment contract.
Contributions
Employer contributions are made in accordance with the terms of each plan and may vary from year to year. Employer contributions made to funded pension
plans in the year ended 31 December 2017 were $100 million (2016: $105 million). In addition, $11 million (2016: $24 million) of benefits were paid to unfunded
pension plans and $25 million (2016: $21 million) of benefits were paid in relation to post employment medical plans. The Group expects to contribute
$119 million to its pension plans and $29 million to its post employment medical plans in 2018.
Income statement
The amounts recognised in the Consolidated income statement are as follows:
2017 2016
Post Post
employment employment
Pension medical Pension medical
US$ million plans plans Total plans plans Total
Charge to operating costs 14 2 16 14 4 18
Net charge/(credit) to net finance costs (3) 36 33 (8) 32 24
Total net charge to the income statement 11 38 49 6 36 42
Net charge/(credit) to net finance costs includes interest expense on surplus restriction of $17 million (2016: $16 million).
Comprehensive income
The pre-tax amounts recognised in the Consolidated statement of comprehensive income are as follows:
2017 2016
Post Post
Return on plan assets, excluding interest income 45 – 45 627 – 627
Actuarial gains/(losses) on plan liabilities 156 19 175 (858) (10) (868)
Movement in surplus restriction 8 – 8 27 – 27
Remeasurement of net defined benefit obligation 209 19 228 (204) (10) (214)
Actuarial gains/(losses) on plan liabilities comprise gains/(losses) from changes in financial and demographic assumptions as well as experience on
plan liabilities. The tax amounts arising on remeasurement of the net defined benefit obligations are disclosed in note 5.

EMPLOYEES
27. RETIREMENT BENEFITS continued

Balance sheet
A summary of the movements in the net pension plan assets and retirement benefit obligations on the Consolidated balance sheet is as follows:

Net liability recognised at 1 January (508) (361)
Net income statement charge (49) (42)
Remeasurement of net defined benefit obligation 228 (214)
Employer contributions to funded pension plans 100 105
Benefits paid to unfunded plans 34 39
Other 1 (5)
Currency movements (33) (30)
Net liability recognised at 31 December (227) (508)
Amounts recognised as:
Defined benefit pension plans in surplus 468 270
Retirement benefit obligation – pension plans (255) (377)
Retirement benefit obligation – medical plans (440) (401)
(227) (508)
Defined benefit pension plans in surplus are included in Other non-current assets on the Consolidated balance sheet.
Further information
Movement analysis
The changes in the fair value of plan assets are as follows:
2017 2016
Post Post
At 1 January 5,191 13 5,204 5,051 13 5,064
Interest income 229 1 230 257 1 258
Return on plan assets, excluding interest income 45 – 45 627 – 627
Contributions paid by employer to funded pension plans 100 – 100 105 – 105
Benefits paid (324) (1) (325) (230) (1) (231)
Other – – – (23) – (23)
Currency movements 490 1 491 (596) – (596)
At 31 December 5,731 14 5,745 5,191 13 5,204
Benefits paid includes $2 million (2016: $6 million) of benefits paid to defined contribution plans.
The changes in the present value of defined benefit obligations are as follows:
2017 2016
Post Post
At 1 January (5,137) (414) (5,551) (4,918) (350) (5,268)
Current service costs (14) (2) (16) (14) (4) (18)
Interest costs (209) (37) (246) (233) (33) (266)
Actuarial gains/(losses) 156 19 175 (858) (10) (868)
Benefits paid 333 26 359 248 22 270
Other 2 (1) 1 21 (3) 18
Currency movements (462) (45) (507) 617 (36) 581
At 31 December (5,331) (454) (5,785) (5,137) (414) (5,551)
The most significant actuarial gain arose from changing demographic assumptions on pension plans totalling $108 million (2016: loss from changing financial
assumptions of $917 million).

EMPLOYEES

Pension plan assets and liabilities by geography
The split of the present value of funded and unfunded obligations in defined benefit pension plans and the fair value of pension assets at 31 December is
as follows:
2017 2016
South United South United
US$ million Africa Kingdom Other Total Africa Kingdom Other Total
Corporate bonds 332 2,299 5 2,636 267 1,561 31 1,859
Government bonds 602 1,618 87 2,307 510 1,699 33 2,242
Equity 399 119 8 526 400 402 6 808
Cash 49 19 – 68 54 15 2 71
Other – 194 – 194 – 207 4 211
Fair value of pension plan assets 1,382 4,249 100 5,731 1,231 3,884 76 5,191
Active members (6) (209) (12) (227) (6) (198) (16) (220)
Deferred members (8) (1,526) (4) (1,538) (11) (1,550) (6) (1,567)
Pensioners (1,004) (2,281) (92) (3,377) (929) (2,179) (66) (3,174)
Present value of funded obligations (1,018) (4,016) (108) (5,142) (946) (3,927) (88) (4,961)
Present value of unfunded obligations – – (189) (189) – – (176) (176)
Net surplus/(deficit) in pension plans 364 233 (197) 400 285 (43) (188) 54
Surplus restriction (187) – – (187) (161) – – (161)
Recognised retirement benefit
assets/(liabilities) 177 233 (197) 213 124 (43) (188) (107)
Other non-current assets – pension plans 177 290 1 468 124 146 – 270
Retirement benefit obligations – pension plans – (57) (198) (255) – (189) (188) (377)
The fair value of assets is used to determine the funding level of the plans. The fair value of the assets of the funded plans was sufficient to cover 111%
(2016: 105%) of the benefits that had accrued to members after allowing for expected increases in future earnings and pensions. The present value of
unfunded obligations includes $178 million (2016: $166 million) relating to active members. All material investments are quoted.
In South Africa the asset recognised is restricted to the amount in the Employer Surplus Account. The Employer Surplus Account is the amount that the Group
is entitled to by way of a refund, taking into consideration any contingency reserves as recommended by the funds’ actuaries.
Actuarial assumptions
The principal assumptions used to determine the actuarial present value of benefit obligations and pension charges and credits are detailed below (shown as
weighted averages):
2017 2016
South United South United
Africa Kingdom Other Africa Kingdom Other
Defined benefit pension plans
Average discount rate for plan liabilities 9.6% 2.6% 5.7% 9.5% 2.6% 5.5%
Average rate of inflation 6.7% 3.2% 3.0% 7.0% 3.3% 3.3%
Average rate of increase of pensions in payment 6.7% 3.2% 2.8% 7.0% 3.3% 3.0%
Post employment medical plans
Average discount rate for plan liabilities 9.6% n/a 8.0% 9.4% 2.6% 6.9%
Average rate of inflation 6.7% n/a 5.6% 7.0% 3.3% 5.2%
Expected average increase in healthcare costs 8.4% n/a 8.0% 8.8% 7.8% 8.0%
The weighted average duration of the South African plans is 10 years (2016: 11 years), United Kingdom plans is 19 years (2016: 19 years) and plans in other
regions is 13 years (2016: 14 years). This represents the average period over which future benefit payments are expected to be made.
Mortality assumptions are determined based on standard mortality tables with adjustments, as appropriate, to reflect experience of conditions locally. In South
Africa, the PA90 tables are used. The main plans in the United Kingdom use CMI tables or Club Vita models with plan specific adjustments based on mortality
investigations. The mortality tables used imply that a male or female aged 60 at the balance sheet date has the following future life expectancy (shown as
weighted averages):
Male Female
Years 2017 2016 2017 2016
South Africa 20.0 19.9 24.8 24.7
United Kingdom 27.6 28.1 29.0 29.8
Other 22.7 21.9 26.6 26.0
The table below summarises the expected life expectancy from the age of 60 for a male or female aged 45 at the balance sheet date. When viewed together
with the respective life expectancy at age 60 in the table above this indicates the anticipated improvement in life expectancy (shown as weighted averages):
Male Female
Years 2017 2016 2017 2016
South Africa 20.0 19.9 24.8 24.7
United Kingdom 28.3 29.9 30.2 32.2
Other 24.7 23.9 28.5 27.9

EMPLOYEES

Risks of plans
The Group has identified the main risk to its defined benefit pension schemes as being interest rate risk due to the impact on the UK discount rate assumption:
Risk Description Mitigation

Interest rate risk A fall in longer-term real and nominal The Trustees’ investment strategies vary by plan for the UK and include investing, with the
interest rates expectations causes gilt intention of counter-balancing the movements in the liabilities, in fully owned (fully funded)
yields and corporate bond yields to physical credit and gilts, and by gaining unfunded exposure to gilts (via gilt repurchase
decrease, which results in a lower agreements) and other fixed income based derivatives to match the real and nominal interest
discount rate being applied to the UK rate sensitivity of the pension scheme liabilities.
pension liabilities and so, with all else Approximately 75-100% (depending on the scheme) of the pension scheme liabilities are
being held equal, the value of the currently hedged against movements in real and nominal interest rates.
pension scheme liabilities increases.
The Trustees’ hedging strategies are typically designed to protect the respective schemes’
If the pension scheme assets do not funding plans against volatility in market yields. The discount rate used to calculate any funding
increase by the same amount as the requirement for the schemes is linked to gilt yields rather than to corporate bond yields as
increase in the pension scheme required under IAS 19. Consequently the valuation of the net retirement benefit obligation
liabilities (caused by the fall in interest for accounting purposes remains susceptible to movements in value due to the difference
rates) then, all else being equal, this between corporate bond and gilt yields. In addition, since corporate bond yields are typically
will result in a worsening of the higher than gilt yields, this can result in the recognition of accounting surpluses in respect of
pension scheme funding position. schemes where cash contributions continue to be made to meet funding shortfalls.
Sensitivity analysis
Significant actuarial assumptions for the determination of pension and medical plan liabilities are the discount rate, inflation rate and mortality. The sensitivity
analysis below has been provided by local actuaries on an approximate basis based on changes in the assumptions occurring at the end of the year, assuming
that all other assumptions are held constant and the effect of interrelationships is excluded. The effect on plan liabilities is as follows:
2017
South United
US$ million Africa Kingdom Other Total
Discount rate – 0.5% decrease (61) (398) (19) (478)
Inflation rate – pension plans – 0.5% increase (42) (153) (11) (206)
Inflation rate – medical plans – 0.5% increase (18) – (4) (22)
Life expectancy – increase by 1 year (59) (178) (5) (242)
Independent qualified actuaries carry out full valuations at least every three years using the projected unit credit method. The actuaries have updated the
valuations to 31 December 2017. Assumptions are set after consultation with the qualified actuaries. While management believes the assumptions used are
appropriate, a change in the assumptions used would impact the Group’s other comprehensive income.
Accounting policy
See note 38H for the Group’s accounting policy on retirement benefits.

EMPLOYEES
28. SHARE-BASED PAYMENTS

Overview
During the year ended 31 December 2017 the Group had share-based payment arrangements with employees relating to shares of the Company, the details
of which are described in the Remuneration report. All of these Company schemes, as well as any non-cyclical awards, are equity settled either by award of
ordinary shares (BSP, LTIP, SIP and Non-cyclical) or award of options to acquire ordinary shares (SAYE). These awards have a contractual life of three years
and are conditional on three years continuous employment. LTIP awards granted prior to 2017 are conditional on a Group ROCE target and market based
performance conditions being achieved and LTIPs granted in 2017 are conditional on a Group ROCE target, market based performance conditions, an
attributable free cash flow target and environmental and occupational health targets.
The total share-based payment charge relating to Anglo American plc shares for the year is split as follows:

BSP 73 100
LTIP 57 49
Other schemes 11 12
Share-based payment charge relating to Anglo American plc shares 141 161
In addition, there are equity settled share-based payment charges of $10 million (2016: $43 million) relating to Kumba Iron Ore Limited shares, $14 million
(2016: $28 million) relating to Anglo American Platinum Limited shares and $2 million (2016: $2 million) of other equity settled share-based payment charges.
Certain business units also operate cash settled employee share-based payment schemes. These schemes had a charge of $2 million (2016: $2 million).
Further information
The movements in the number of shares for the more significant share-based payment arrangements are as follows:
Bonus Share Plan
Ordinary shares of 54 86/91 US cents may be awarded under the terms of this scheme for no consideration.
Number of awards 2017 2016

Outstanding at 1 January 17,382,925 12,623,762
Conditionally awarded in year 5,728,412 11,369,105
Vested in year (4,118,111) (4,413,116)
Forfeited or expired in year (941,277) (2,196,826)
Outstanding at 31 December 18,051,949 17,382,925
Further information in respect of the BSP, including performance conditions, is shown in the Remuneration report.
Long-Term Incentive Plan
Ordinary shares of 54 86/91 US cents may be awarded under the terms of this scheme for no consideration.
Number of awards 2017 2016

Outstanding at 1 January 16,811,778 8,558,889
Conditionally awarded in year 4,988,350 11,424,827
Vested in year (1,466,485) (1,800,261)
Forfeited or expired in year (1,886,934) (1,371,677)
Outstanding at 31 December 18,446,709 16,811,778
The early vesting of share awards is permitted at the discretion of the Company upon, inter alia, termination of employment, ill health or death. The LTIP awards
are contingent on pre-established performance criteria being met. Further information in respect of this scheme is shown in the Remuneration report.
Accounting policy
See note 38H for the Group’s accounting policy on share-based payments.

UNRECOGNISED ITEMS AND UNCERTAIN EVENTS

This section includes disclosure of items and transactions that are not reflected in the Group’s results because they are
uncertain or have been incurred after the end of the year. These disclosures are considered relevant to an understanding
of the Group’s financial position and the effect of expected or possible future events.
29. EVENTS OCCURRING AFTER END OF YEAR

With the exception of the completion of the sale transaction for the Union platinum mine detailed in note 32, the redemption of a bond detailed in note 21 and
the proposed final dividend for 2017, there have been no reportable events since 31 December 2017.
30. COMMITMENTS
Overview
A commitment is a contractual obligation to make a payment in the future which is not provided for in the balance sheet. The Group also has purchase
obligations relating to take or pay agreements which are legally binding and enforceable.
Capital commitments for subsidiaries and joint operations relating to the acquisition of property, plant and equipment are $1,444 million (2016: $1,317 million),
of which 50% (2016: 45%) relate to expenditure to be incurred within the next year.
The Group’s outstanding commitments relating to take or pay agreements are $14,698 million (2016: $15,494 million), of which 11% (2016: 8%) relate to
expenditure to be incurred within the next year.
At 31 December the Group’s total future minimum lease payments under non-cancellable operating leases are as follows:

Within one year 168 92
Greater than one year, less than two years 101 50
Greater than two years, less than five years 129 48
Greater than five years 115 22
513 212
Operating leases relate principally to corporate offices, diamond jewellery retail outlets and shipping vessels.
Accounting policy
See note 38C for the Group’s accounting policy on leases.

IFRS 16 Leases
IFRS 16 Leases will be effective for the Group from 1 January 2019. It is expected that on adoption of this standard there will be a material increase in lease
liabilities representing the present value of future payments under arrangements currently classified as operating leases, along with a corresponding increase
in property, plant and equipment right of use assets. Further information is provided in note 38A.
31. CONTINGENT LIABILITIES

Overview
The Group is subject to various claims which arise in the ordinary course of business. Additionally, the Group has provided indemnities against certain liabilities
as part of agreements for the sale or other disposal of business operations. Having taken appropriate legal advice, the Group believes that a material liability
arising from the indemnities provided is remote.
The Group is required to provide guarantees in several jurisdictions in respect of environmental restoration and decommissioning obligations. The Group has
provided for the estimated cost of these activities.
A provision is recognised where, based on the Group’s legal views and, in some cases, independent advice, it is considered probable that an outflow of
resources will be required to settle a present obligation that can be measured reliably.

GROUP STRUCTURE
This section includes details about the composition of the Group and how this is reflected in the Consolidated
financial statements. It also includes disclosures of significant corporate transactions such as disposals.
32. ASSETS AND LIABILITIES HELD FOR SALE

Assets classified as held for sale as at 31 December 2017 of $129 million and associated liabilities of $41 million relate to the Union mine (Platinum) in South
Africa and the former head office of De Beers in the UK. The sale transaction for the Union mine was announced on 15 February 2017 and subsequently
completed on 1 February 2018.
33. DISPOSALS
During the year, the Group completed the disposal of the Group’s 83.3% interest in the Dartbrook coal mine (Coal), realising net cash proceeds of $13 million
and resulting in a net gain on disposal of $76 million, including recycling of a cumulative translation gain of $81 million from reserves. Platinum disposed of
long-dated Mineral Resources for proceeds of $82 million.
In addition, the Group made net cash payments of $126 million principally in respect of disposals completed in prior years, which included payments for
in-process inventories from the Rustenburg mine (Platinum) held at the date of disposal following the disposal of the operation in 2016 of $117 million.
This resulted in a net cash outflow on disposals of subsidiaries and joint operations of $31 million.
The Group also received proceeds of $61 million on the sale of financial asset investments, including Dreamvision Investments (see note 8), and proceeds
of $22 million on the disposal of interests in associates.
This resulted in a net cash inflow on disposals of $52 million.
2016
Disposals in 2016 principally comprised the sale of the Callide thermal coal mine in Queensland (Coal), the sale of the Niobium and Phosphates businesses
(Corporate and other), the sale of the Rustenburg mine (Platinum) and the sale of the Group’s 70% interest in the Foxleigh metallurgical coal mine in
Queensland (Coal).

GROUP STRUCTURE
34. BASIS OF CONSOLIDATION

Overview
The principal subsidiaries, joint operations, joint ventures and associates of the Group and the Group percentage of equity capital are set out below. All these
interests are held indirectly by the Parent Company and are consolidated within these financial statements.
A complete list of the Group’s related undertakings can be found in note 35.
Percentage of equity owned
Segment and asset Location Accounting treatment 2017 2016
De Beers(1) 85% 85%
Debswana (2), comprising: Botswana Joint operation 19.2% 19.2%
Jwaneng
Orapa
Damtshaa
Letlhakane
Namdeb Holdings (3), comprising: Namibia Joint operation 50% 50%
Namdeb Diamond Corporation
Debmarine Namibia
De Beers Consolidated Mines (4), comprising: South Africa Full consolidation 100% 100%
Venetia
Voorspoed
De Beers Canada, comprising:
Snap Lake Canada Full consolidation 100% 100%
Victor Canada Full consolidation 100% 100%
Gahcho Kué Canada Joint operation 51% 51%
Sales, comprising:
De Beers Global Sightholder Sales Botswana Full consolidation 100% 100%
De Beers Sightholder Sales South Africa South Africa Full consolidation 100% 100%
Auction Sales Singapore Full consolidation 100% 100%
DTC Botswana Botswana Joint operation 50% 50%
Namibia DTC Namibia Joint operation 50% 50%
Element Six, comprising:
Element Six Technologies Global Full consolidation 100% 100%
Element Six Abrasives Global Full consolidation 60% 60%
Brands, comprising:
Forevermark Global Full consolidation 100% 100%
De Beers Jewellers (5) Global Full consolidation 100% 50%
(2016: Equity accounted joint venture)
Copper
Los Bronces Chile Full consolidation 50.1% 50.1%
El Soldado Chile Full consolidation 50.1% 50.1%
Chagres Chile Full consolidation 50.1% 50.1%
Collahuasi Chile Joint operation 44% 44%
Quellaveco Peru Full consolidation 81.9% 81.9%
Platinum(6) 78% 78%

Mogalakwena mine South Africa Full consolidation 100% 100%
Amandelbult complex (7) South Africa Full consolidation 100% 100%
Twickenham mine South Africa Full consolidation 100% 100%
Unki mine Zimbabwe Full consolidation 100% 100%
Union mine South Africa Full consolidation 85% 85%
Platinum refining South Africa Full consolidation 100% 100%
Modikwa Platinum Joint Operation South Africa Joint operation 50% 50%
Mototolo Joint Operation South Africa Joint operation 50% 50%
Kroondal Pooling and Sharing Agreement South Africa Joint operation 50% 50%
Bokoni South Africa Equity accounted associate 49% 49%
Bafokeng-Rasimone South Africa Equity accounted associate 33% 33%
See page 164 for footnotes.

GROUP STRUCTURE
34. BASIS OF CONSOLIDATION continued

Percentage of equity owned
Segment and asset Location Accounting treatment 2017 2016
Iron Ore and Manganese
Kumba Iron Ore South Africa Full consolidation 69.7% 69.7%
Sishen (8) South Africa Full consolidation 76.3% 76.3%
Kolomela (8) South Africa Full consolidation 76.3% 76.3%
Minas-Rio Brazil Full consolidation 100% 100%
Ferroport (9) Brazil Equity accounted joint venture 50% 50%
Samancor(10) South Africa Equity accounted joint venture 40% 40%
and Australia
Coal
Coal Australia and Canada, comprising:
Moranbah North Australia Joint operation 88% 88%
Grosvenor Australia Full consolidation 100% 100%
Capcoal (11) Australia Joint operation 70% 70%
Dawson (11) Australia Joint operation 51% 51%
Drayton (11) Australia Joint operation 88.2% 88.2%
Dartbrook (12) Australia Joint operation – 83.3%
Jellinbah (10)(13) Australia Equity accounted associate 33.3% 33.3%
Dalrymple Bay Coal Terminal Australia Equity accounted associate 25.3% 25.3%
Newcastle Coal Shippers Australia Equity accounted associate 17.6% 17.6%
Peace River Coal Canada Full consolidation 100% 100%
Coal South Africa, comprising:
Goedehoop South Africa Full consolidation 100% 100%
Greenside South Africa Full consolidation 100% 100%
Kleinkopje (14) South Africa Full consolidation – 100%
Landau (14) South Africa Full consolidation – 100%
Khwezela (14) South Africa Full consolidation 100% –
Mafube South Africa Joint operation 50% 50%
Zibulo (15) South Africa Full consolidation 73% 73%
Kriel (15) South Africa Full consolidation 73% 73%
New Denmark South Africa Full consolidation 100% 100%
New Vaal South Africa Full consolidation 100% 100%
Isibonelo South Africa Full consolidation 100% 100%
Richards Bay Coal Terminal South Africa Equity accounted associate 23.2% 23.2%
Carbones del Cerrejón Colombia Equity accounted associate 33.3% 33.3%
Nickel
Barro Alto Brazil Full consolidation 100% 100%
(1)
85% should be applied to all holdings within De Beers to determine the Group’s attributable share of the asset.
(2)
De Beers owns 50% of equity in Debswana, but consolidates 19.2% of Debswana on a proportionate basis, reflecting the economic interest. The Group’s effective interest in Debswana is 16.3%
(taking into account the Group’s 85% interest in De Beers Group).
(3)
The 50% interest in Namdeb Holdings is held indirectly through De Beers. The Group’s effective interest in Namdeb Holdings is 42.5%.
(4)
De Beers’ legal ownership of De Beers Consolidated Mines (DBCM) is 74%. For accounting purposes De Beers consolidates 100% of DBCM as it is deemed to control the BEE entity, Ponahalo,
which holds the remaining 26%. The Group’s effective interest in DBCM is 85%.
(5)
De Beers acquired the remaining 50% of De Beers Jewellers in March 2017. This was previously an equity accounted 50% joint venture.
(6)
The Group’s effective interest in Anglo American Platinum is 79.5%, which includes shares issued as part of a community empowerment deal.
(7)
Amandelbult complex comprises Tumela mine and Dishaba mine.
(8)
Sishen and Kolomela are fully owned by the Sishen Iron Ore Company (SIOC). Kumba Iron Ore Limited has a 76.3% interest in SIOC (2016: 76.3%). Including shares held by Kumba Iron Ore in
relation to its own employee share schemes, the Group’s effective interest in Kumba Iron Ore is 70.3%. Consequently, the Group’s effective interest in SIOC is 53.6% (2016: 53.2%).
(9)
Ferroport owns and operates the iron ore handling and shipping facilities at the port of Açu.
(10)
These entities have a 30 June year end.
(11)
The wholly owned subsidiary Anglo American Metallurgical Coal Holdings Limited holds the proportionately consolidated joint operations. These operations are unincorporated and jointly
controlled.
(12)
The sale of Dartbrook was completed in May 2017.
(13)
The Group’s effective interest in the Jellinbah operation is 23.3%.
(14)
Kleinkopje and Landau were amalgamated on 1 January 2017 and renamed Khwezela.
(15)
Kriel and Zibulo form part of the Anglo American Inyosi Coal BEE company of which the Group owns 73%.
Joint arrangements
Joint arrangements are classified as joint operations or joint ventures according to the rights and obligations of the parties, as described in note 38I.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. When
a joint arrangement has been structured through a separate vehicle, consideration has been given to the legal form of the separate vehicle, the terms of the
contractual arrangement and, when relevant, other facts and circumstances. When the activities of an arrangement are primarily designed for the provision of
output to the parties and, the parties are substantially the only source of cash flows contributing to the continuity of the operations of the arrangement, this
indicates that the parties to the arrangement have rights to the assets and obligations for the liabilities. Certain joint arrangements that are structured through
separate vehicles including Collahuasi, Debswana and Namdeb are accounted for as joint operations. These arrangements are primarily designed for the
provision of output to the parties sharing joint control, indicating that the parties have rights to substantially all the economic benefits of the assets. The
liabilities of the arrangements are in substance satisfied by cash flows received from the parties; this dependence indicates that the parties effectively have
obligations for the liabilities. It is primarily these facts and circumstances that give rise to the classification as joint operations.

GROUP STRUCTURE
35. RELATED UNDERTAKINGS OF THE GROUP

The Group consists of the Parent Company, Anglo American plc, incorporated in the United Kingdom and its subsidiaries, joint operations, joint ventures
and associates. In accordance with Section 409 of the Companies Act 2006 a full list of related undertakings, the country of incorporation and the effective
percentage of equity owned as at 31 December 2017 is disclosed below. Unless otherwise disclosed all entities with an indirect equity holding of greater
than 51% are considered subsidiary undertakings. See note 34 for the Group’s principal subsidiaries, joint operations, joint ventures and associates.
As disclosed in the Group’s published tax strategy the Group does not use tax haven jurisdictions to manage taxes. There remain a small number of undertakings
in the Group which are registered in tax haven jurisdictions. These are the result of legacy undertakings and are overridden by the Group’s policy of having them
be either resident in the UK for tax purposes or subject to the UK Controlled Foreign Company Rules. The Group is well advanced in our strategy to remove
these legacy undertakings from tax haven jurisdictions. Where the tax residency of a related undertaking is different from its country of incorporation, this is
referenced in the notes to the list below.
Country of Percentage of(3)

incorporation(1)(2) Name of undertaking equity owned Registered address
Angola De Beers Angola Holdings S.A. 85% Rua Rainha Ginga 87 9º andar, Luanda, Caixa Postal 4031
Anguilla Carbones del Cerrejon Limited(4) 33% Babrow’s Commercial Complex, 1341, The Valley
Argentina Minera Anglo American Argentina S.A. 100% San Martin 1167 Piso 2° Mendoza
Australia A.C.N 127 881 510 Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Australia Finance Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Australia Holdings Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Australia Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Exploration (Australia) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Investments (Australia) Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Metallurgical Coal Assets Eastern Australia 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Limited
Australia Anglo American Metallurgical Coal Assets Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Metallurgical Coal Finance Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Metallurgical Coal Holdings Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Metallurgical Coal Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo American Thermal Coal (Australia) Pty. Ltd. 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Archveyor Management) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Capcoal Management) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Contracting) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson Management) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson Services) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson South Management) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson South) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson) Holdings Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Dawson) Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Drayton Management) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Drayton South Management) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Drayton South) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Drayton) No.2 Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Drayton) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (German Creek) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Grasstree Management) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Grosvenor Management) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Grosvenor) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Jellinbah) Holdings Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Monash Energy) Holdings Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Moranbah North Management) Pty Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Roper Creek) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Coal (Theodore South) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Anglo Operations (Australia) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Bowen Basin Coal Pty Ltd 23% Level 7 Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Dalrymple Bay Coal Terminal Pty Ltd 25% Martin Armstrong Drive, Hay Point via Mackay, QLD 4741
Australia Dawson Coal Processing Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Dawson Highwall Mining Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Dawson Sales Pty Ltd 51% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Dawson South Sales Pty Ltd 51% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia De Beers Australia Exploration Limited 85% 896 Beaufort Street, Suite 4, Inglewood, WA 6052
Australia Drayton Coal (Sales) Pty. Ltd. 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Drayton Coal Shipping Pty. Limited 88% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia German Creek Coal Pty. Limited 70% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Groote Eylandt Mining Company Pty Limited 40% Level 235, 108 St Georges Terrace, Perth, WA 6000
Australia Grosvenor Sales Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Jellinbah Group Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Jellinbah Mining Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Jellinbah Resources Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Jena Pty. Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia JG Land Company Pty Ltd 23% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Lake Vermont Marketing Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Lake Vermont Resources Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia Monash Energy Coal Limited 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Monash Energy Pty Limited 50% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Moranbah North Coal (No2) Pty Ltd 100% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Moranbah North Coal (Sales) Pty Ltd 88% Level 11, 201 Charlotte Street, Brisbane, QLD 4000
Australia Moranbah North Coal Pty Ltd 100% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia QCMM (Lake Vermont Holdings) Pty Ltd 33% Level 7, Comalco Place, 12 Creek Street, Brisbane, QLD 4000
Australia QCMM Finance Pty Ltd 33% Curlew Street, Kooragang Island, NSW
Australia Tasmanian Electro Metallurgical Company Pty Limited 40% Curlew Street, Kooragang Island, NSW
Australia Tremell Pty Ltd 33% 456 Victoria Parade, East Melbourne, Victoria 3002
Belgium De Beers Auction Sales Belgium NV 85% 21 Schupstraat, 2018 Antwerp

GROUP STRUCTURE
35. RELATED UNDERTAKINGS OF THE GROUP continued

Belgium Diamond Trading Company Proprietary Ltd NV 85% 21 Schupstraat, 2018 Antwerp
Belgium International Institute of Diamond Grading and Research 85% 21 Schupstraat, 2018 Antwerp
(Belgium) NV
Bermuda Coromin Limited 100% Clarendon House, 2 Church Street, Hamilton
Bermuda Holdac Limited 100% Clarendon House, 2 Church Street, Hamilton
Botswana Ambase Prospecting (Botswana) (Pty) Ltd 100% Unit G3, Victoria House, Plot 132 Independence Avenue, Gaborone
Botswana Anglo American Corporation Botswana (Services) Limited 100% Plot 67977, Fairground Office Park, Gaborone
Botswana Anglo Coal Botswana (Pty) Ltd 100% c/o KPMG, Chartered Accountants, Plot 67977, Off Tlokweng Road, Fairground,
PO Box 1519, Gaborone
Botswana Broadhurst Primary School (Pty) Ltd 29% First Floor Debswana Corporate Centre, Plot 64288 Airport Road, Block 8,
Gaborone
Botswana De Beers Global Sightholder Sales (Pty) Ltd 85% 3rd Floor, DTCB Building, Plot 63016, Block 8, Airport Road, Gaborone
Botswana De Beers Holdings Botswana (Pty) Ltd 85% 5th Floor, Debswana House, Main Mall, Gaborone
Botswana Debswana ART Fund Trust 43% First Floor Debswana Corporate Centre, Plot 64288 Airport Road, Block 8,
Gaborone
Botswana Debswana Diamond Company (Pty) Ltd 43% (5) First Floor Debswana Corporate Centre, Plot 64288 Airport Road, Block 8,
Gaborone
Botswana Diamond Trading Company Botswana (Pty) Ltd 43% Plot 63016, Airport Road, Block 8, Gaborone
Botswana Rainbow Gas and Coal Exploration (Pty) Ltd 51% Plot 67977, Fairground Office Park, Gaborone
Botswana Sesiro Insurance Company (Pty) Ltd 43% First Floor Debswana Corporate Centre, Plot 64288 Airport Road, Block 8,
Gaborone
Botswana The Diamond Trust 21% Debswana House, The Mall, Gaborone
Botswana Tokafala (Proprietary) Limited 100% c/o KPMG, Chartered Accountants, Plot 67977, Off Tlokweng Road, Fairground,
PO Box 1519, Gaborone
Brazil Anglo American Consultoria em Minério de Ferro Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
CEP 30360-740, Belo Horizonte, Minas Gerais
Brazil Anglo American Investimentos - Minério de Ferro Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar, sala 1603, bairro Santa Lúcia,
Brazil Anglo American Minério de Ferro Brasil S.A. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar, sala 1601, bairro Santa Lucia,
Brazil Anglo American Niquel Brasil Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 8º andar (parte), Santa Lúcia, CEP 30360-740,
Belo Horizonte, Minas Gerais
Brazil Anglo American Participações - Minério de Ferro Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar, sala 1602, Bairro Santa Lúcia,
CEP 30.360-740, Belo Horizonte, Minas Gerais
Brazil Anglo Ferrous Brazil Participações S.A. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
Brazil Câmara de Comércio Brasil República Sul Africana 100% Av. Paulista, nº. 2.300, 10º andar, Cerqueira César, São Paulo/SP
Brazil Coruripe Participações Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
Brazil Element Six Ltda. 51% Rua da Consolação, 368, 15º andar Consolação, São Paulo
Brazil Ferroport Logística Comercial Exportadora S.A. 50% Rua da Passagem, nº. 123, 11º andar, sala 1101, Botafogo, CEP 22290-030,
Rio de Janeiro/RJ
Brazil GD Empreendimentos Imobiliários S.A. 33% Rua Visconde de Ouro Preto, nº. 5, 11º andar (parte), Botafogo, Rio de Janeiro/RJ
Brazil Gespa Gesso Paulista Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
Brazil Guaporé Mineração Ltda. 49% Avenida Paulista, nº. 2.300, 10º andar (parte), CEP 01.310-300, São Paulo/SP
Brazil Instituto Anglo American Brasil 100% Avenida Paulista, nº. 2.300, 10º andar (parte), CEP 01.310-300, São Paulo/SP
Brazil Mineração Itamaracá Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
Brazil Mineração Tanagra Ltda. 49% Rua Maria Luiza Santiago, nº. 200, 20º andar (parte), bairro Santa Lúcia,
CEP 30.360-740, Belo Horizonte, Minas Gerais
Brazil Mineração Tariana Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
Brazil Morro do Níquel Ltda. 100% Rua Maria Luiza Santiago, nº. 200, 16º andar (parte), bairro Santa Lúcia,
British Virgin Anglo American Services (International) Limited 100% 9 Columbus Centre, Pelican Drive, P.O. Box 805, Road Town, Tortola, VG1110
Islands
British Virgin De Beers Angola Investments Limited 68% 9 Columbus Centre, Pelican Drive, Road Town, Tortola
Islands
British Virgin De Beers Angola Prospecting Pty Ltd 68% Midocean Management and Trust Services (BVI) Limited, Midocean Chambers,
Islands P.O. Box 805, Road Town, Tortola
British Virgin De Beers Centenary Angola Properties Ltd 85% Midocean Chambers, 9 Columbus Centre, Pelican Drive, Road Town, Tortola
Islands
British Virgin Delibes Holdings Limited(6) 85% 9 Columbus Centre, Pelican Drive, P.O. Box 805, Road Town, Tortola, VG1110
Islands
British Virgin Highbirch Limited(6) 100% 9 Columbus Centre, Pelican Drive, P.O. Box 805, Road Town, Tortola, VG1110
Islands
British Virgin Loma de Niquel Holdings Limited(6) 94% Craigmuir Chambers, P.O. Box 71, Road Town, Tortola
Islands
British Virgin Scallion Limited(6) 85% Midocean Chambers, 9 Columbus Centre, Pelican Drive, Road Town, Tortola
Islands
Canada 0912055 BC Ltd 100% Suite 2400, 745 Thurlow Street, Vancouver, BC V6E 0C5
Canada 4259785 Canada Inc. 85% 333 Bay Street, Suite 2400, Toronto ON M5H2T6
Canada Anglo American Exploration (Canada) Ltd. 100% Suite 800, 700 West Pender Street, Vancouver, BC V6C 1G8
Canada Belcourt Saxon Coal Limited 100% Suite 2400, 745 Thurlow Street, Vancouver, BC V6E 0C5
Canada Belcourt Saxon Coal Limited Partnership 100% Suite 2400, 745 Thurlow Street, Vancouver, BC V6E 0C5
Canada De Beers Canada Holdings Inc. 85% 2400-333 Bay St, Toronto, ON M5H2T6
Canada De Beers Canada Inc. 85% 2400-333 Bay St, Toronto, ON M5H2T6
Canada Kaymin Resources Limited 78% McCarthy Tetrault LLP, Pacific Centre, PO Box 10424, Suite 1300, 777 Dunsmuir
Street, Vancouver, BC V7Y 1K2
Canada Peace River Coal Inc. 100% Suite 2400, 745 Thurlow Street, Vancouver, BC V6E 0C5
Cayman Islands Cheviot Holdings Limited(6) 85% Maples and Calder, P.O. Box 309, George Town, Grand Cayman

GROUP STRUCTURE

Chile Anglo American Chile Inversiones S.A. 100% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Anglo American Chile Ltda 100% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Anglo American Sur S.A. 50% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Compañía Minera Dona Ines De Collahuasi SCM 44% Avda Andres Bello 2687, P 11 Edif. el Pacifico, Las Condes, Santiago, Región
Metropolitana
Chile Compañía Minera Westwall S.C.M 50% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Inversiones Anglo American Norte S.A. 100% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Inversiones Anglo American Sur S.A. 100% Isidora Goyenechea 2800, piso 46-48, Santiago
Chile Inversiones Minorco Chile S.A. 100% Isidora Goyenechea 2800, piso 46-48, Santiago
China Anglo American Resources Trading (China) Co. Ltd. 100% Units 01, 02A, 07, 08, Floor 32, No. 1198 Century Avenue, Pudong New Area,
Shanghai
China De Beers Jewellers Commercial (Shanghai) Co., Ltd 85% Room 1707B, 17F, Plaza 66, No. 1266 West Nanjing Road, Shanghai
China Element Six Hard Materials (Wuxi) Co., Ltd 51% No. 105-1, Xinjin Road, Meicun, Wuxi New District, Jiangsu Province, 214112
China Element Six Trading (Shanghai) Co., Ltd 51% 2802A, Chong Hing Finance Centre, No. 288 Nan Jing Road West, Huang Pu
District, Shanghai, 200003
China Forevermark Marketing Shanghai Company Limited 85% Unit 01 & 08 46F, Park Place No 1601, Nan Jing Road (W), Shanghai
China Platinum Guild International (Shanghai) Co., Limited 78% Room 601, L’avenue, 99 XianXia Road, Shanghai 200051
Colombia Anglo American Colombia Exploration S.A. 100% Avenida Carrera 9a # 115 – 06/30 Oficina 1702, Bogotá
Colombia Cerrejon Zona Norte S.A. 33% Calle 100 19-54, 12th Floor, Bogotá
Cyprus Anglo American Amcoll (UK) Ltd(6) 100% Themistokli Dervi, 3, Julia House, 1066, Nicosia
Cyprus Anglo American Chile Investments (UK) Ltd(6) 100% Themistokli Dervi, 3, Julia House, 1066, Nicosia
Cyprus Anglo American Clarent (UK) Ltd(6) 100% Themistokli Dervi, 3, Julia House, 1066, Nicosia
Democratic Ambase Exploration Africa (DRC) SPRL 100% No. 510 LP, Avenue Sumahili, Quartier Golf, Commune De Lubumbashi,
Republic Lubumbashi
of Congo
Democratic De Beers DRC Exploration SARL 85% 7 Concession Bel Air, Commune Ngaliema, Kinshasa
Republic
of Congo
Ecuador Anglo American Ecuador S.A. 100% Av. Patria E4-69 y Av. Amazonas, Cofiec, 16th Floor, Ecuador
Finland AA Sakatti Mining Oy 100% AA Sakatti Mining Oy, Tuohiaavantie 2, 99600 Sodankylä, Finland
Gabon Samancor Gabon SA 40% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
Germany Element Six GmbH (DECAR) 51% Staedeweg 18, 36151, Burghaun
Germany Hydrogenious Technologies GmbH 33% Weidenweg 13, 91058 Erlangen
Guernsey Intersea Pension Services Limited 85% Albert House, South Esplanade, St Peter Port, Guernsey, Channel Islands
Hong Kong De Beers Auction Sales Holdings Ltd 85% Unit 1001, 10/F Unicorn Trade Centre, 127-131 Des Voeux Road, Central
Hong Kong De Beers Auction Sales Hong Kong Ltd 85% Unit 1001, 10/F Unicorn Trade Centre, 127-131 Des Voeux Road, Central
Hong Kong De Beers Diamond Jewellers (Hong Kong) Limited 85% 24th Floor, Oxford House, 979 King’s Road, Taikoo Place, Island East
Hong Kong Diamdel (Hong Kong) Limited 85% Unit 1001, 10/F Unicorn Trade Centre, 127-131 Des Voeux Road, Central
Hong Kong Diamdel Holdings Limited 85% Unit 1001, 10/F Unicorn Trade Centre, 127-131 Des Voeux Road, Central
Hong Kong Forevermark Limited 85% 2602B, 2603, 2604, 2605, 2606, 26th Floor Kinwick Centre, 32 Hollywood Road,
Central
Hong Kong Platinum Guild International (Hong Kong) Limited 78% Suites 2901-2, Global Trade Square, No. 21 Wong Chuk Hang Road
India Anglo American Exploration (India) Private Limited 100% A-1/292, Janakpuri, New Delhi, 110058
India Anglo American Services (India) Private Limited 100% A-1/292, Janakpuri, New Delhi, 110058
India De Beers India Private Ltd 85% Advanced Business Centre, 83 Maker Chambers VI, Nariman Point,
Mumbai, 400 021
India Forevermark Diamonds Private Limited 85% Advanced Business Centre, 83 Maker Chambers VI, Nariman Point,
Mumbai, 400 021
India Hindustan Diamond Company Private Limited 43% E-6010 Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East),
Mumbai, 400 051
India Inglewood Minerals Private Limited 100% A-1/292, Janakpuri, New Delhi, 110058
India International Institute of Diamond Grading & Research India 85% Advanced Business Centre, 83 Maker Chambers VI, Nariman Point,
Private Limited Mumbai, 400 021
India Platinum Guild India Private Limited 78% Notan Classic, 3rd Floor, 114 Turner Road, Bandra West, Mumbai 400 050, India
Indonesia PT Anglo American Indonesia 100% Pondok Indah Office Tower 3, 17th Floor, Jl. Sultan Iskandar Muda, Pondok Indah,
Jakarta 12310
Indonesia PT Minorco Services Indonesia 100% Belagri Hotel, Jl. Raja Ampat, No 1 Kampung Baru, Sorong, Papua Barat
Ireland Alluvium Unlimited Company(6) 100% Shannon Airport, Co. Clare
Ireland CMC-Coal Marketing Designated Activity Company 33% Fumbally Square, New Street, Dublin 8
Ireland Coromin Insurance (Ireland) DAC 100% Fourth Floor, 25/28 Adelaide Road, Dublin
Ireland Element Six (Holdings) Limited 51% Shannon Airport, Shannon, Co. Clare
Ireland Element Six (Trade Marks) 51% Shannon Airport, Shannon, Co. Clare
Ireland Element Six Abrasives Treasury Limited 51% Shannon Airport, Shannon, Co. Clare
Ireland Element Six Limited 51% Shannon Airport, Shannon, Co. Clare
Ireland Element Six Treasury Limited 85% Shannon Airport, Shannon, Co. Clare
Isle of Man Element Six Limited 85% Isle of Man Freeport, PO Box 6, Ballasalla
Isle of Man Element Six (Isle of Man) Corporate Trustee Limited 85% Isle of Man Freeport, PO Box 6, Ballasalla
Israel De Beers Auction Sales Israel Ltd 85% 21 Toval Street, Ramat Gan, 52522
Israel Diamdel Diamonds Ltd 85% 21 Toval Street, Ramat Gan, 52522
Italy Anglo American Italy S.R.L. 100% Via Melchiorre Gioia, 8, 20124 Milano
Italy Forevermark Italy S.R.L. 85% Via Burlamacchi Francesco 14, 20135, Milan
Japan De Beers Diamond Jewellers Japan K.K. 85% New Otani Garden Court, 7th Floor, 4-1 Kioi-cho, Chiyoda-ku, Tokyo
Japan Element Six Ltd 51% 9F PMO Hatchobori, 3-22-13 Hatchobori, Chuo-ku, Tokyo, 104
Japan Forevermark KK 85% New Otani Garden Court, 7th Floor, 4-1 Kioi-cho, Chiyoda-ku, Tokyo
Japan PGI KK 78% Imperial Hotel Tower 17F, 1-1-1 Uchisaiwai-cho, Chiyoda-ku, Tokyo, 100-8575
Jersey Ambras Holdings Limited(6)(7) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Ammin Coal Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey A.R.H. Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey A.R.H. Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo African Exploration Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Buttercup Company Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Capital Overseas Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG

GROUP STRUCTURE

Jersey Anglo American Exploration Colombia Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Exploration Overseas Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Ferrous Investments (Overseas) Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Finance Overseas Holdings Limited(6)(8) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Finland Holdings 1 Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Finland Holdings 2 Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Hermitage Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Liberia Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Michiquillay Peru Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Midway Investment Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Overseas Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo American Venezuela Corporation Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Australia Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Coal International Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Diamond Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Iron Ore Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Loma Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Operations (International) Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Peru Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Quellaveco Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo South American Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Anglo Venezuela Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Aval Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Cencan plc (6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers Centenary Limited(6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers Exploration Holdings Limited(6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers Holdings Investments Limited(6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers India Holdings Limited(6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers Investments plc (6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey De Beers plc (6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey IIDGR Holdings Limited(6) 85% 44 Esplanade, St Helier, JE4 9WG
Jersey Minorco Overseas Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Minorco Peru Holdings Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Jersey Minpress Investments Limited(6) 100% 44 Esplanade, St Helier, JE4 9WG
Lesotho Amcoal Collieries Recruiting Organisation (Lesotho) (Pty) 100% Kingsway, Maseru
Ltd
Liberia Anglo American Corporation de Chile Holdings Limited(6) 100% 80 Broad Street, Monrovia
Liberia Anglo American Kumba Exploration (Liberia) Ltd 85% Kpellah Town, Off Congo Town Back Road, Congo Town, Paynesville City,
Monrovia
Luxembourg KIO Exploration Liberia Sarl 70% 11-13 Boulevard de la Foire, L-1528, Luxembourg
Luxembourg Kumba International Trading Sarl 53% 11-13 Boulevard de la Foire, L-1528, Luxembourg
Luxembourg Kumba Iron Ore Holdings Sarl 53% 11-13 Boulevard de la Foire, L-1528, Luxembourg
Macau De Beers Diamond Jewellers (Macau) Company Limited 85% Avenida da Praia Grande No. 409, China Law Building 16/F – B79, Macau
Madagascar Societe Civille De Prospection De Nickel A Madagascar 32% 44 Main Street, Johannesburg, 2001
Malta Element Six Technologies Holding Ltd(6) 85% Leicester Court, Suite 2, Edfar Bernard Street, Gzira, GZR 1702
Mauritius Anglo American International Limited(6) 100% C/o AXIS Fiduciary Ltd, 2nd Floor, The AXIS, 26 Bank Street, Cybercity Ebene,
72201
Mauritius Inglewood Holdings Limited(6) 100% St Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis
Mexico Anglo American Mexico S.A. de C.V. 100% c/o Sanchez Mejorada, Velasco y Ribe, S.C., Paseo de la Reforma No. 450, Col.
Lomas de Chapultepec, 11000, Ciudad de Mexico
Mexico Servicios Anglo American Mexico S.A. de C.V. 100% c/o Sanchez Mejorada, Velasco y Ribe, S.C., Paseo de la Reforma No. 450, Col.
Lomas de Chapultepec, 11000, Ciudad de Mexico
Mozambique Anglo American Corporation Mocambique Servicos 100% PWC, LTDA. Avenida Vladimir Lenine, Nº 174, 4º Andar Edificio Millennium Park,
Limitada Maputo
Mozambique Anglo American Mocambique Limitada 90% Pestana Rovuma Hotel Office Centre, 5th Floor/5º, Rue da Se No.114, Maputo
Namibia Ambase Prospecting (Namibia) (Pty) Ltd 100% 24 Orban Street, Klein Windhoek, Windhoek, PO Box 30 Windhoek
Namibia De Beers Marine Namibia (Pty) Ltd 43% 4th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia De Beers Namibia Holdings (Pty) Ltd 85% 6th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Debmarine Namdeb Foundation 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia DTC Valuations Namibia (Pty) Ltd 85% 4th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Exclusive Properties (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Longboat Trading (Pty) Ltd 100% 15 Albert Wessels Street, Northern Industrial, Windhoek
Namibia Marmora Mines and Estates Limited 28% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Namdeb Diamond Corporation (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Namdeb Holdings (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Namdeb Hospital Pharmacy (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Namdeb Properties (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Namibia Diamond Trading Company (Pty) Ltd 43% 9th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Oranjemund Private Hospital (Proprietary) Limited 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Namibia Oranjemund Town Management Company (Pty) Ltd 43% 10th Floor, Namdeb Centre, 10 Dr Frans Indongo Street, Windhoek
Netherlands AA Holdings Argentina B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American (NA) 1 B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American (NA) 3 B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American Exploration B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American Exploration (India) B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American Exploration (Philippines) B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American India Holdings B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American International B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American Netherlands B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo Operations (Netherlands) B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Anglo American (TIH) B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Element Six NV 85% De Nieuwe Erven 2, 5431 NT, Cuijk

GROUP STRUCTURE

Netherlands Erabas B.V(6) 78% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Kumba International BV 70% Stationsplein 8K, Maastricht, 6221 BT
Netherlands Loma de Niquel Holdings B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Netherlands Minorco Exploration (Indonesia) B.V.(6) 100% 20 Carlton House Terrace, London, SW1Y 5AN, United Kingdom
Papua New Anglo American (Star Mountain) Limited 100% C/- PricewaterhouseCoopers PNG, Pwc Haus, Level 6, Harbour City, Konedobu,
Guinea PORT
Papua New Anglo American Exploration (PNG) Limited 100% C/- PricewaterhouseCoopers PNG, Pwc Haus, Level 6, Harbour City, Konedobu,
Guinea PORT
Peru Cobre del Norte S.A. 100% Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Peru Anglo American Peru S.A. 100% Calle Esquilache 371, Piso 10, San Isidro, Lima 27
Peru Anglo American Quellaveco S.A. 82% Esquilache 371, Piso 10, San Isidro, Lima 27
Peru Anglo American Servicios Perú S.A. 100% Esquilache 371 Piso 10 San Isidro, Lima 27
Peru Asociación Michiquillay 100% Esquilache 371 Piso 10 San Isidro, Lima 27
Peru Asociación Quellaveco 100% Esquilache 371 Piso 10 San Isidro, Lima 27
Philippines Anglo American Exploration (Philippines) Inc. 100% 27th Floor, Tower 2, The Enterprise Centre, 6766 Ayala Avenue Corner, Paseo
de Roxas, Makati City
Philippines Minphil Exploration Co Inc 40% 27 Philex Building, Fairlane Brixton Street, Pasig, Metro Manila
Philippines Northern Luzon Exploration & Mining Co Inc 40% 27 Philex Building, Fairlane Brixton Street, Pasig, Metro Manila
Singapore Anglo American Exploration (Singapore) Pte. Ltd 100% 10 Collyer Quey, #38-00 Ocean Financial Centre, 049315
Singapore Anglo American Mongolia Holdings Pte. Ltd 100% 10 Collyer Quey, #38-00 Ocean Financial Centre, 049315
Singapore De Beers Auction Sales Singapore Pte. Ltd 85% 10 Collyer Quey, #03-04 Ocean Financial Centre, 049315
Singapore Kumba Singapore Pte. Ltd. 53% 10 Collyer Quey, #38-00 Ocean Financial Centre, 049315
Singapore MR Iron Ore Marketing Services Pte. Ltd. 50% 10 Collyer Quay, #38-00 Ocean Financial Centre, 049315
Singapore Samancor Marketing Pte. Ltd. 40% 138 Market Street, #26-01, Capitagreen, 048946
South Africa Anglo American South Africa Investments Proprietary 100% 44 Main Street, Johannesburg, 2001
Limited
South Africa A E F Mining Services (Pty) Ltd 25% Zommerlust Building, Rietbok Road, Kathu, 8446
South Africa ACRO (Hanise) (Pty) Ltd 100% 44 Main Street, Gauteng, 1627
South Africa African Pipe Industries North (Pty) Ltd 39% 55 Marshall Street, Johannesburg, 2001
South Africa Almenta 127 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Amaprop Townships Limited 100% 61 Katherine Street, Sandton, 2196
South Africa Ambase Investment Africa (Botswana) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Ambase Investment Africa (DRC) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Ambase Investment Africa (Namibia) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Ambase Investment Africa (Tanzania) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Ambase Investment Africa (Zambia) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Amcoal Collieries Recruiting Organisation (Pty) Limited 100% 55 Marshall Street, Johannesburg, 2001
South Africa Ampros (Pty) Ltd 100% 61 Katherine Street, Sandton, 2196
South Africa Anglo American Corporation of South Africa (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American EMEA Shared Services (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Farms (Pty) Ltd 100% Vergelegen Wine Farm, Lourensford Road, Somerset West, 7130
South Africa Anglo American Farms Investment Holdings (Pty) Ltd 100% Vergelegen Wine Farm, Lourensford Road, Somerset West, 7130
South Africa Anglo American Group Employee Shareholder Nominees 100% 44 Main Street, Johannesburg, 2001
(Pty) Ltd
South Africa Anglo American Inyosi Coal (Pty) Ltd 73% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Platinum Limited 78% 55 Marshall Street, Johannesburg, 2001
South Africa Anglo American Properties Limited 100% 61 Katherine Street, Sandton, 2196
South Africa Anglo American Prospecting Services (Pty) Ltd 100% 55 Marshall Street, Johannesburg, 2001
South Africa Anglo American SA Finance Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Sebenza Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American SEFA Mining Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American South Africa Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Zimele (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Zimele Community Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Zimele Green Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo American Zimele Small Business Support Services 100% 44 Main Street, Johannesburg, 2001
(Pty) Ltd
South Africa Anglo Coal Investment Africa (Botswana) (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo Corporate Enterprises (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo Inyosi Coal Security Company Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo Operations (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo Platinum Management Services (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Anglo South Africa (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anglo South Africa Capital (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Anseld Holdings Proprietary Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Asambeni Mining Solutions (Pty) Ltd 56% 44 Main Street, Johannesburg, 2001
South Africa Atomatic Trading (Pty) Limited 58% 55 Marshall Street, Johannesburg, 2001
South Africa Balgo Nominees (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Blinkwater Farms 244KR (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Blue Lounge Trading 129 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Blue Steam Investments (Pty) Ltd 37% 44 Main Street, Johannesburg, 2001
South Africa Boikgantsho Platinum Mine (Pty) Ltd 38% 5 Jellicoe Avenue, Rosebank, Johannesburg, 2913
South Africa Bokoni Platinum Holdings (Pty) Ltd 38% 82 Grayston Drive, Sandton, Johannesburg, 2196
South Africa Bokoni Platinum Mines (Pty) Ltd 38% 4th Floor Atholl, Johannesburg, 2916
South Africa Butsanani Energy Investment Holdings (Pty) Ltd 33% 44 Main Street, Johannesburg, 2001
South Africa Chamfron Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Colliery Training College (Pty) Limited 56% 44 Main Street, Johannesburg, 2001
South Africa Copper Moon Trading 567 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Cytobex (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Cytoblox (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Cytobuzz (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Damelin Emalahleni (Pty) Ltd 20% Cnr O R Tambo & Beatrix Avenue, Witbank, 1035

GROUP STRUCTURE

South Africa DBCM Holdings (Pty) Ltd 63% 36 Stockdale Street, Kimberley, 8301
South Africa De Beers Consolidated Mines (Pty) Ltd 63% (9) 36 Stockdale Street, Kimberley, 8301
South Africa De Beers Group Services (Pty) Ltd 85% Cornerstone, Corner Diamond Drive and Crownwood Road, Theta,
Johannesburg, 2013
South Africa De Beers Marine (Pty) Ltd 85% Cornerstone, Corner Diamond Drive and Crownwood Road, Theta,
Johannesburg, 2013
South Africa De Beers Matlafalang Business Development (Pty) Ltd 63% Cornerstone, Corner Diamond Drive and Crownwood Road, Theta,
Johannesburg, 2013
South Africa De Beers Sightholder Sales South Africa (Pty) Ltd 63% Cornerstone, Corner Diamond Drive and Crownwood Road, Theta,
Johannesburg, 2013
South Africa De Beers Small Business Start Up Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Dido Nominees (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Dream Weaver Trading 140 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Element Six (Production) (Pty) Ltd 51% Debid Road, Nuffield, Springs, 1559
South Africa Element Six (Pty) Ltd 51% 1 Parry Road, Nuffield, Springs, 1559
South Africa Element Six South Africa (Pty) Ltd 51% Debid Road, Nuffield, Springs, 1559
South Africa Element Six Technologies (Pty) Ltd 85% Debid Road, Nuffield, Springs, 1559
South Africa Elipsis Blue Trading 43 (Pty) Ltd 30% Unit 6A, Phithaba Industrial Park, 97 Hefer Street, Rustenburg, 0299
South Africa Enanticept (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Fermain Nominees (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Fundirite (Pty) Ltd 50% 44 Main Street, Johannesburg, 2001
South Africa Ga-Phasha Platinum Mine (Pty) Limited 38% 44 Main Street, Johannesburg, 2001
South Africa Godisa Supplier Development Fund (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Golden Pond Trading 248 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa High Ground Investments Limited 100% 44 Main Street, Johannesburg, 2001
South Africa HL & H Timber Processors (Pty) Ltd 50% Millennia Park, 16 Stellentia Avenue, Stellenbosch, 7600
South Africa Hotazel Manganese Mines (Pty) Ltd 30% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
South Africa Ingagane Colliery (Pty) Ltd 98% 44 Main Street, Johannesburg, 2001
South Africa Ingwekazi Holdings (Proprietary) Limited 20% 44 Main Street, Johannesburg, 2001
South Africa Invincible Trading 14 (Pty) Ltd 20% 16 Euclid Road, Industria East Ext 13, Germiston, 1400
South Africa Joint Coal (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa KIO Investments Holdings (Pty) Ltd 70% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Kumba BSP Trust 53% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Kumba Iron Ore Limited 70% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Kwanda Platinum Mine (Pty) Ltd 38% 124 Akkerboom Street, Building 2B, Centurion, 0157
South Africa Lansan Investment Holdings (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Lebowa Platinum Mines Limited 38% 124 Akkerboom Street, Building 2B, Centurion, 0157
South Africa Lexshell 49 General Trading (Pty) Ltd 35% 55 Marshall Street, Johannesburg, 2001
South Africa Lexshell 688 Investments (Pty) Ltd 66% 55 Marshall Street, Johannesburg, 2001
South Africa Longboat (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Longmeadow Home Farm (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Mafube Coal Mining (Pty) Ltd 50% 55 Marshall Street, Johannesburg, 2001
South Africa Main Place Holdings Limited 39% Suite 801, 76 Regent Road, Sea Point, Western Cape 8005
South Africa Main Street 1252 (Pty) Ltd (RF) 63% Cornerstone, Corner of Diamond Drive and Crownwood Road, Theta,
Johannesburg, 2013
South Africa Manganore Iron Mining Limited 46% 6 Hollard Street, Johannesburg, 2001
South Africa Manngwe Mining (Pty) Ltd 20% Suite 105, Lorgadia Building, Embankment Road, Centurion, 0157
South Africa Marikana Ferrochrome Limited 100% 55 Marshall Street, Johannesburg, 2001
South Africa Marikana Minerals (Pty) Ltd 100% 55 Marshall Street, Johannesburg, 2001
South Africa Masa Chrome Company (Pty) Ltd 39% 55 Marshall Street, Johannesburg, 2001
South Africa Matthey Rustenburg Refiners (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Meruka Mining (Pty) Ltd 30% 16 North Road, Dunkeld Court, Dunkeld West, 2196
South Africa Micawber 146 (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Middelplaats Manganese (Pty) Ltd 30% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
South Africa Mindset Coal Consultancy Services CC 36% 298 Stokkiesdraai Street, Erasmusrand, Gauteng, 0181
South Africa Modikwa Mining Personnel Services (Pty) Ltd 39% 55 Marshall Street, Johannesburg, 2001
South Africa Modikwa Platinum Mine (Pty) Ltd 39% 16 North Road, Dunkeld Court, Dunkeld West, 2196
South Africa Mogalakwena Platinum Mines 78% 55 Marshall Street, Johannesburg, 2001
South Africa Ndowana Exploration (Pty) Ltd 42% 36 Stockdale Street, Kimberley, 8301
South Africa Newshelf 1316 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Newshelf 480 (Pty) Ltd 55% 44 Main Street, Johannesburg, 2001
South Africa Norsand Holdings (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Peglerae Hospital (Pty) Ltd 31% 44 Main Street, Johannesburg, 2001
South Africa Peruke (Pty) Ltd 51% 44 Main Street, Johannesburg, 2001
South Africa PGM Investment Company (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Phola Coal Processing Plant (Pty) Ltd 37% 44 Main Street, Johannesburg, 2001
South Africa Platmed (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Platmed Properties (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Polokwane Iron Ore (Pty) Ltd 27% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Ponahalo Investments (Pty) Ltd 0% (10) De Beers Consolidated Mines Corner, Corner Diamond and Crownwood Road,
Theta – Booysens Reserve, Johannesburg, 2000
South Africa Precious Metals Refiners Proprietary Limited 78% 55 Marshall Street, Johannesburg, 2001
South Africa Pro Enviro (Pty) Ltd 20% Greenside Colliery, PTN off 331, Blackhills, 1032
South Africa R A Gilbert (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
South Africa Resident Nominees (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Reunko Steel Suppliers (Pty) Ltd 20% 10372 Mfeka Street, Tokoza, 1421
South Africa Richards Bay Coal Terminal (Pty) Ltd 23% South Dunes, Richards Bay Harbour, Richards Bay, 3900, KwaZulu Natal
South Africa Rietpoort Mining (Proprietary) Limited 100% 44 Main Street, Johannesburg, 2001
South Africa Rietvlei Mining Company (Pty) Ltd 20% Vunani House, Athol Ridge Office Park, 151 Katherine Street, Sandton, 2146
South Africa Roodepoortjie Resources (Pty) Ltd 49% 16 North Road, Dunkeld Court, Dunkeld West, 2196
South Africa Rustenburg Base Metals Refiners Proprietary Limited 78% 55 Marshall Street, Johannesburg, 2001
South Africa Rustenburg Platinum Mines Limited 78% 55 Marshall Street, Johannesburg, 2001

GROUP STRUCTURE

South Africa Samancor Holdings (Pty) Ltd 40% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
South Africa Samancor Manganese (Pty) Ltd 40% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
South Africa Shanike Investments No.171 (Pty) Ltd 20% South Downs, Richards Bay Harbour, Richards Bay, 3900
South Africa Sheba’s Ridge Platinum (Pty) Ltd 27% 55 Marshall Street, Johannesburg, 2001
South Africa Sibelo Resource Development (Pty) Ltd 53% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Silver Lake Trading 619 (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa SIOC International Finance (Pty) Ltd 53% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Sishen Iron Ore Company (Pty) Ltd 53% Centurion Gate Building 2B, 124 Akkerboom Road, Centurion,
South Africa Skin Doctor Technologies (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Spectrem Air (Pty) Ltd 21% 44 Main Street, Johannesburg, 2001
South Africa Springfield Collieries Limited 100% 55 Marshall Street, Johannesburg, 2001
South Africa Steppe Eagle (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Tenon Investment Holdings (Pty) Ltd 100% 44 Main Street, Johannesburg, 2001
South Africa Terra Nominees (Pty) Ltd 40% 39 Melrose Boulevard, Melrose Arch, Johannesburg, 2076
South Africa The Village of Cullinan (Pty) Ltd 63% 36 Stockdale Street, Kimberley, 8301
South Africa Vergelegen Wine Estate (Pty) Ltd 100% Vergelegen Wine Farm, Lourensford Road, Somerset West, 7130
South Africa Vergelegen Wines (Pty) Ltd 100% Vergelegen Wine Farm, Lourensford Road, Somerset West, 7130
South Africa Vika Investments Holdings (Pty) Ltd 49% 44 Main Street, Johannesburg, 2001
South Africa Whiskey Creek Management Services (Pty) Ltd 78% 55 Marshall Street, Johannesburg, 2001
Sweden Element Six AB 51% Box 505, S-915 23, Robertsfors
Switzerland De Beers Centenary AG (6) 85% c/o Telemarketing, Plus AG, Sonnenplatz 6, 6020, Emmenbrücke
Switzerland Element Six SA 51% rue du Tir-au-Canon 2, Carouge, Geneva
Switzerland PGI SA 78% Avenue Mon-Repos 24, Case postale 656, CH-1001 Lausanne
Switzerland Samancor AG 40% Industriestrasse 53, 6312, Steinhausen, Zug
Switzerland Synova S.A. 28% 2, Chemin de la Dent-D’oche, 1024, Ecublens
Tanzania Ambase Prospecting (Tanzania) (Pty) Ltd 100% Pemba House, 269 Toure Drive Oyster Bay, Dar Es Salaam
UAE De Beers DMCC 85% Office 4D, Almas Tower, Jumeirah Lakes Towers, Dubai
United Kingdom Anglo American (London) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American (London) 2 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American (TIIL) Investments Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American 2005 Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Australia Investments Limited(11) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Capital Australia Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Capital International Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Capital plc (11) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American CMC Holdings Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Corporate Secretary Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Diamond Holdings Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Farms (UK) Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Ferrous 2 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Ferrous Investments Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Finance (UK) Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Global Finance Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Group Foundation 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Holdings Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American International Holdings Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Investments (NA) Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Investments (UK) Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Marketing Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Medical Plan Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Nickel Marketing Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American PNG Holdings Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Prefco Limited(11) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American REACH Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Representative Offices Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Services (UK) Ltd(11) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo American Services Overseas Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Base Metals Marketing Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Coal Holdings Limited(11) 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Coal Overseas Services Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Ferrous Metals Marketing Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Platinum Marketing Limited 78% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo Platinum Ventures Holdings Limited 78% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anglo UK Pension Trustee Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anmercosa Finance Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anmercosa Pension Trustees Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Anmercosa Sales Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom AP Ventures LLP 78% C/O Hackwood Secretaries Limited, One Silk Street, London, EC2Y 8HQ
United Kingdom Aurumar Alaska Holdings Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Birchall Gardens LLP 50% Bardon Hall, Copt Oak Road, Markfield, LE67 9PJ
United Kingdom Charterhouse CAP Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Curtis Fitch Limited 21% 6th Floor, Eagle Tower, Montpellier Drive, Cheltenham, Gloucestershire, GL50 1TA
United Kingdom De Beers Diamond Jewellers Limited 85% 45 Old Bond Street, London, W1S 4QT
United Kingdom De Beers Diamond Jewellers Trade Mark Limited 85% 45 Old Bond Street, London, W1S 4QT
United Kingdom De Beers Diamond Jewellers UK Limited 85% 45 Old Bond Street, London, W1S 4QT
United Kingdom De Beers Intangibles Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom De Beers Trademarks Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom De Beers UK Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Ebbsfleet Property Limited 50% Bardon Hall, Copt Oak Road, Markfield, LE67 9PJ
United Kingdom Element Six Abrasives Holdings Limited 51% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Element Six Holdings Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN

GROUP STRUCTURE

United Kingdom Element Six Technologies Limited 85% Global Innovation Centre, Fermi Avenue, Harwell, Oxford, Didcot,
Oxfordshire, OX11 0QR
United Kingdom Element Six (UK) Limited 51% Global Innovation Centre, Fermi Avenue, Harwell, Oxford, Didcot,
United Kingdom Element Six (Production) Limited 51% Global Innovation Centre, Fermi Avenue, Harwell, Oxford, Didcot,
United Kingdom Element Six Limited 85% Global Innovation Centre, Fermi Avenue, Harwell, Oxford, Didcot,
United Kingdom Ferro Nickel Marketing Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Firecrest Investments Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Forevermark Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom IIDGR (UK) Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Mallord Properties Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Neville Street Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Northfleet Property LLP 50% Bardon Hall, Copt Oak Road, Markfield, LE67 9PJ
United Kingdom Platinum Guild Limited (United Kingdom) Limited 78% New Bridge Street House, 30-34 New Bridge Street, London, SE1 9QR
United Kingdom Reunion Group Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Reunion Mining Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Rhoanglo Trustees Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Riverbank Investments Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Security Nominees Limited 100% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom Swanscombe Development LLP 50% Bardon Hall, Copt Oak Road, Markfield, LE67 9PJ
United Kingdom The Diamond Trading Company Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United Kingdom DB Newco Limited 85% 20 Carlton House Terrace, London, SW1Y 5AN
United States Element Six US Corporation 51% 24900 Pitkin Road, Suite 250, Spring TX 77386
United States Anglo American Exploration (USA), Inc. 100% The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street,
Wilmington DE 19801
United States Anglo American US (Pebble) LLC 100% CSC, 251 Little Falls Drive, Wilmington DE 19808
United States Anglo American US (Utah) Inc 100% CSC, 251 Little Falls Drive, Wilmington DE 19808
United States Anglo American US Holdings Inc. 100% CSC, 251 Little Falls Drive, Wilmington DE 19808
United States Big Hill, LLC 55% CSC, 251 Little Falls Drive, Wilmington DE 19808
United States Coal Marketing Company (USA) Inc. 33% 1180 Peachtree Street, N.E., Suite 2420, Atlanta, GA, 30309
United States De Beers Diamond Jewellers US, Inc. 85% 598 Madison Avenue, 4th Floor, New York, NY 10022
United States Element Six Technologies U.S. Corporation 85% Incorporating Services Limited, 3500 South Dupont Highway, Dover, County of
Kent DE 19901
United States Element Six Technologies (Oregon) Corp. 85% 3500 South DuPont Highway, Dover, Kent County DE 19901
United States Forevermark US Inc. 85% 300 First Stamford Place, Stamford, CT 06902
United States International Institute of Diamond Valuation Inc. 85% Corporation Trust Center 1209 Orange Street, Wilmington DE 19801
United States Platinum Guild International (U.S.A.) Jewelry Inc. 78% 125 Park Avenue, 25th Floor, New York, New York 10017
Venezuela Anglo American Venezuela S.A. 100% Torre Humboldt, Floor 9, office 09-07, Rio Caura Street, Prados del Este.
Caracas 1080
Venezuela Minera Loma de Niquel C.A. 98% Torre Humboldt, Floor 9, office 09-07, Rio Caura Street, Prados del Este.
Caracas 1080
Zambia Anglo Exploration (Zambia) (Pty) Ltd 100% 11 Katemo Road, Rhodes Park, Lusaka, Zambia
Zimbabwe Addon Investments (Private) Limited 78% 28 Broadlands Road, Emerald Hill, Harare
Zimbabwe Amzim Holdings Limited 78% 28 Broadlands Road, Emerald Hill, Harare
Zimbabwe Anglo American Corporation Zimbabwe Limited 78% 28 Broadlands Road, Emerald Hill, Harare
Zimbabwe Broadlands Park Limited 78% 28 Broadlands Road, Emerald Hill, Harare
Zimbabwe Southridge Limited 78% 28 Broadlands Road, Emerald Hill, Harare
Zimbabwe Unki Mines (Private) Limited 78% 28 Broadlands Road, Emerald Hill, Harare
(1)
All the companies with an incorporation in the United Kingdom are registered in England and Wales.
(2)
The country of tax residence is disclosed where different from the country of incorporation.
(3)
All percentages have been rounded.
(4)
Tax resident in Colombia.
(5)
The 50% interest in Debswana Diamond Company (Proprietary) Limited is held indirectly through De Beers and is consolidated on a 19.2% proportionate basis, reflecting economic interest.
The Group’s effective interest in Debswana Diamond Company (Proprietary) Limited is 16.3%.
(6)
Tax resident in the United Kingdom.
(7)
2% direct holding by Anglo American plc.
(8)
(9)
A 74% interest in De Beers Consolidated Mines Proprietary Limited (DBCM) is held indirectly through De Beers. The 74% interest represents De Beers’ legal ownership share in DBCM. For
accounting purposes De Beers consolidates 100% of DBCM as it is deemed to control the BEE entity, Ponahalo, which holds the remaining 26%. The Group’s effective interest in DBCM is 85%.
(10)
Ponahalo Investments (Pty) Ltd is deemed to be controlled due to the financing structure in place and is consolidated as a majority owned subsidiary.
(11)

OTHER ITEMS
This section includes disclosures about related party transactions, auditor’s remuneration and accounting policies.
36. RELATED PARTY TRANSACTIONS

The Group has a related party relationship with its subsidiaries, joint operations, associates and joint ventures (see notes 34 and 35). Members of the Board
and the Group Management Committee are considered to be related parties.
The Company and its subsidiaries, in the ordinary course of business, enter into various sale, purchase and service transactions with joint operations,
associates, joint ventures and others in which the Group has a material interest. These transactions are under terms that are no less favourable to the Group
than those arranged with third parties.
Associates Joint ventures Joint operations

US$ million 2017 2016 2017 2016 2017 2016
Transactions with related parties
Sale of goods and services 17 19 – 1 197 171
Purchase of goods and services (430) (399) (163) (137) (3,108) (3,390)
Balances with related parties

Trade and other receivables from related parties 3 5 1 1 23 17
Trade and other payables to related parties (211) (126) (29) (30) (93) (79)
Loans receivable from related parties – – 230 401 – –
Balances and transactions with joint operations or joint operation partners represent the portion that the Group does not have the right to offset against the
corresponding amount recorded by the respective joint operations. These amounts primarily relate to purchases by De Beers and Platinum from their joint
operations in excess of the Group’s attributable share of their production.
Loans receivable from related parties are included in Financial asset investments on the Consolidated balance sheet.
Remuneration and benefits received by directors are disclosed in the Remuneration report. Remuneration and benefits of key management personnel,
including directors, are disclosed in note 26. Information relating to pension fund arrangements is disclosed in note 27.
37. AUDITOR’S REMUNERATION
2017 2016
Paid/payable Paid/payable
to auditor (if to auditor (if
Paid/payable to Deloitte not Deloitte) Paid/payable to Deloitte not Deloitte)
United United
US$ million Kingdom Overseas Total Overseas Kingdom Overseas Total Overseas
Paid to the Company’s auditor for audit
of the Anglo American plc Annual Report 1.4 3.1 4.5 – 1.5 2.6 4.1 –
Paid to the Company’s auditor for other

services to the Group
Audit of the Company’s subsidiaries 0.9 4.1 5.0 0.3 0.9 3.9 4.8 0.2
Total audit fees 2.3 7.2 9.5 0.3 2.4 6.5 8.9 0.2
Audit related assurance services 0.4 0.9 1.3 – 0.5 1.3 1.8 0.1
Taxation compliance services – – – – – 0.2 0.2 –
Taxation advisory services – – – – 0.3 0.5 0.8 –
Other assurance services – 0.3 0.3 – 0.1 0.6 0.7 –
Other non-audit services 0.8 0.5 1.3 – 0.4 0.6 1.0 –
Total non-audit fees 1.2 1.7 2.9 – 1.3 3.2 4.5 0.1
Audit related assurance services include $1.3 million (2016: $1.4 million) for the interim review.

OTHER ITEMS
38. ACCOUNTING POLICIES For the Incoterms Cost, Insurance and Freight (CIF) and Cost and Freight
(CFR) the seller must contract for and pay the costs and freight necessary to
A. BASIS OF PREPARATION
bring the goods to the named port of destination. Consequently, the freight
Basis of preparation
service on export commodity contracts with CIF/CFR Incoterms represents
The financial statements have been prepared in accordance with International
a separate performance obligation as defined under the new standard, and
Financial Reporting Standards (IFRS) and IFRS Interpretations Committee
a portion of the revenue earned under these contracts, representing the
(IFRIC) interpretations as adopted for use by the European Union, with those
obligation to perform the freight service, is deferred and recognised over time
parts of the Companies Act 2006 applicable to companies reporting under
as this obligation is fulfilled, along with the associated costs.
IFRS and with the requirements of the Disclosure and Transparency rules of
the Financial Conduct Authority in the United Kingdom as applicable to The impact of applying this change during the year ended 31 December 2017
periodic financial reporting. The financial statements have been prepared would have been to reduce revenue and operating costs respectively by
under the historical cost convention as modified by the revaluation of pension $29 million with no impact on profit. Current assets and current liabilities as
assets and liabilities and certain financial instruments. A summary of the at 31 December 2017 would each have been higher by $39 million.
principal Group accounting policies is set out below. IFRS 9 Financial Instruments
The preparation of financial statements in conformity with generally accepted The impacts of adopting IFRS 9 on the Group results for the year ended
accounting principles requires the use of estimates and assumptions that 31 December 2017 would have been as follows:
affect the reported amounts of assets and liabilities at the date of the financial ••Impairment: The impact of the introduction of an ‘expected credit loss’
statements and the reported amounts of revenues and expenses during the model for the assessment of impairment of financial assets held at
reporting period. Although these estimates are based on management’s best amortised cost would have been to reduce the Group’s opening retained
knowledge of the amount, event or actions, actual results ultimately may differ earnings at 1 January 2017 by $18 million, to decrease the Group’s
from those estimates. operating costs by $17 million and increase the Group’s profit before tax and
As permitted by UK company law, the Group’s results are presented in underlying earnings by $17 million for the year ended 31 December 2017.
US dollars, the currency in which its business is primarily conducted. ••Classification and measurement: The measurement and accounting
treatment of the Group’s financial assets is materially unchanged on
Changes in accounting policies and disclosures
application of the new standard with the exception of equity securities
The accounting policies applied are consistent with those adopted and disclosed
previously categorised as available for sale. These will be held at fair value
in the Group financial statements for the year ended 31 December 2016, except
through other comprehensive income, meaning the recycling of gains and
for changes arising from the adoption of the following new accounting
losses on disposal and impairment losses is no longer permitted for this
pronouncements which became effective in the current reporting period:
category of asset. There would have been no impact to the net assets of the
••Annual Improvements to IFRSs 2014-2016 cycle: IFRS 12 Disclosure of Group at 1 January 2017 or 31 December 2017 or to the Group’s results for
Interests in Other Entities. the year from this change.
••Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative. ••Hedge accounting: The Group has elected to adopt the IFRS 9 hedge
••Amendments to IAS 12 Income taxes: Recognition of Deferred Tax Assets accounting requirements from 1 January 2018. The adoption of the new
for Unrealised Losses. standard would have had no effect on the amounts recognised in relation
to hedging arrangements for the year ended 31 December 2017.
The adoption of these new accounting pronouncements has not had a
significant impact on the accounting policies, methods of computation or IFRS 15 and IFRS 9 became effective for the Group from 1 January 2018.
presentation applied by the Group. As the effects of applying these standards are considered immaterial to the
Group, the Group has elected not to restate prior periods on adoption of
The Group has not early adopted any other amendment, standard or the new standards in 2018.
interpretation that has been issued but is not yet effective. It is expected that
where applicable, these standards and amendments will be adopted on each IFRS 16 Leases
respective effective date. IFRS 16 was published in January 2016 and will be effective for the Group
from 1 January 2019, replacing IAS 17 Leases.
Going concern The principal impact of IFRS 16 will be to change the accounting treatment by
The directors have, at the time of approving the financial statements, a lessees of leases currently classified as operating leases. Lease agreements
reasonable expectation that the Company and the Group have adequate will give rise to the recognition by the lessee of an asset, representing the
resources to continue in operational existence for the foreseeable future. right to use the leased item, and a related liability for future lease payments.
Thus the going concern basis of accounting in preparing the financial Lease costs will be recognised in the income statement in the form of
statements continues to be adopted. Further details are contained in the depreciation of the right of use asset over the lease term, and finance charges
Directors’ report on page 203. representing the unwind of the discount on the lease liability.
New IFRS accounting standards, amendments and Consequently, on adoption of IFRS 16 it is expected that there will be a
interpretations not yet adopted material increase in lease liabilities representing the present value of future
The following are the major new IFRS accounting standards in issue but not payments under arrangements currently classified as operating leases, along
yet effective: with a corresponding increase in property, plant and equipment right of use
assets. Information on the Group’s operating lease commitments is disclosed
IFRS 15 Revenue from Contracts with Customers
in note 30 Commitments.
The Group’s revenue is primarily derived from commodity sales, for which the
point of recognition is dependent on the contract sales terms, known as the During 2017 the Group has continued with its IFRS 16 implementation
International Commercial terms (Incoterms). As the transfer of risks and project, focusing on a review of contracts and aggregation of data to support
rewards generally coincides with the transfer of control at a point in time the evaluation of the accounting impacts of applying the new standard. In
under the Incoterms, the timing and amount of revenue recognised by the addition, work has begun on implementing the necessary changes to internal
Group for the sale of commodities is not materially affected. systems and processes.
Other issued standards and amendments that are not yet effective are not
expected to have a significant impact on the financial statements.

OTHER ITEMS
38. ACCOUNTING POLICIES continued Tenon

B. BASIS OF CONSOLIDATION Tenon Investment Holdings Proprietary Limited (Tenon), a wholly owned
Basis of consolidation subsidiary of Anglo American South Africa Limited (AASA), has entered into
The financial statements incorporate a consolidation of the financial agreements with Epoch Investment Holdings Proprietary Limited (Epoch),
statements of the Company and entities controlled by the Company (its Epoch Two Investment Holdings Proprietary Limited (Epoch Two) and Tarl
subsidiaries). Control is achieved where the Company is exposed, or has Investment Holdings Proprietary Limited (Tarl) (collectively the Investment
rights, to variable returns from its involvement with the investee and has Companies), each owned by independent charitable trusts whose trustees
the ability to affect those returns through its power over the investee. are independent of the Group. Under the terms of these agreements, the
Investment Companies have purchased Anglo American plc shares on the
The results of subsidiaries acquired or disposed of during the year are market and have granted to Tenon the right to nominate a third party (which
included in the income statement from the effective date of acquisition may include Anglo American plc but not any of its subsidiaries) to take
or up to the effective date of disposal, as appropriate. transfer of the Anglo American plc shares each has purchased on the market.
Where necessary, adjustments are made to the results of subsidiaries, joint Tenon paid the Investment Companies 80% of the cost of the Anglo
arrangements and associates to bring their accounting policies into line with American plc shares including associated costs for this right to nominate,
those used by the Group. Intra-group transactions, balances, income and which together with subscriptions by Tenon for non-voting participating
expenses are eliminated on consolidation, where appropriate. redeemable preference shares in the Investment Companies, provided all
the funding required to acquire the Anglo American plc shares through the
For non-wholly owned subsidiaries, non-controlling interests are presented
market. These payments by Tenon were sourced from the cash resources
in equity separately from the equity attributable to shareholders of the
of AASA. Tenon is able to exercise its right of nomination at any time up to
Company. Profit or loss and other comprehensive income are attributed to
31 December 2025 against payment of an average amount of $4.41 per
the shareholders of the Company and to non-controlling interests even if this
share to Epoch, $6.86 per share to Epoch Two and $5.69 per share to Tarl
results in the non-controlling interests having a deficit balance.
which will be equal to 20% of the total costs respectively incurred by Epoch,
Changes in ownership interest in subsidiaries that do not result in a change Epoch Two and Tarl in purchasing shares nominated for transfer to the third
in control are accounted for in equity. The carrying amounts of the controlling party. These funds will then become available for redemption of the
and non-controlling interests are adjusted to reflect the changes in their preference shares issued by the Investment Companies. The amount payable
relative interests in the subsidiary. Any difference between the amount by by the third party on receipt of the Anglo American plc shares will accrue to
which the non-controlling interest is adjusted and the fair value of the Tenon and, as these are own shares of the Company, any resulting gain or
consideration paid or received is recorded directly in equity and attributed loss recorded by Tenon will not be recognised in the Consolidated income
to the shareholders of the Company. statement of Anglo American plc.
Foreign currency transactions and translation Under the agreements, the Investment Companies will receive dividends on
Foreign currency transactions by Group companies are recognised in the the shares they hold and have agreed to waive the right to vote on those
functional currencies of the companies at the exchange rate ruling on the shares. The preference shares issued to the charitable trusts are entitled to
date of the transaction. At each reporting date, monetary assets and liabilities a participating right of up to 10% of the profit after tax of Epoch and 5% of the
that are denominated in foreign currencies are retranslated at the rates profit after tax of Epoch Two and Tarl. The preference shares issued to Tenon
prevailing on the reporting date. Gains and losses arising on retranslation will carry a fixed coupon of 3% plus a participating right of up to 80% of the
are included in the income statement for the period and are classified in the profit after tax of Epoch and 85% of the profit after tax of Epoch Two and Tarl.
income statement according to the nature of the monetary item giving rise Any remaining distributable earnings in the Investment Companies, after the
to them. above dividends, are then available for distribution as ordinary dividends to
the charitable trusts.
Non-monetary assets and liabilities that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate at the date The structure effectively provides Tenon with a beneficial interest in the price
of the transaction. risk on these shares together with participation in future dividend receipts.
The Investment Companies will retain legal title to the shares until Tenon
On consolidation, the assets and liabilities of the Group’s foreign operations
exercises its right to nominate a transferee.
are translated into the presentation currency of the Group at exchange rates
prevailing on the reporting date. Income and expense items are translated at At 31 December 2017 the Investment Companies together held 112,300,129
the average exchange rates for the period where these approximate the rates (2016: 112,300,129) Anglo American plc shares, which represented 8.0%
at the dates of the transactions. Any exchange differences arising are (2016: 8.0%) of the ordinary shares in issue (excluding treasury shares) with
classified within the statement of comprehensive income and transferred to a market value of $2,349 million (2016: $1,603 million). The Investment
the Group’s cumulative translation adjustment reserve. Exchange differences Companies are not permitted to hold more than an aggregate of 10% of the
on foreign currency balances with foreign operations for which settlement is issued share capital of Anglo American plc at any one time.
neither planned nor likely to occur in the foreseeable future, and therefore The Investment Companies are considered to be structured entities.
form part of the Group’s net investment in these foreign operations, are offset Although the Group has no voting rights in the Investment Companies and
in the cumulative translation adjustment reserve. cannot appoint or remove trustees of the charitable trusts, the Group
Cumulative translation differences are recycled from equity and recognised considers that the agreement outlined above, including Tenon’s right to
as income or expense on disposal of the operation to which they relate. nominate the transferee of the Anglo American plc shares held by the
Investment Companies, result in the Group having control over the
Goodwill and fair value adjustments arising on the acquisition of foreign
Investment Companies as defined under IFRS 10. Accordingly, the
entities are treated as assets of the foreign entity and translated at the
Investment Companies are required to be consolidated by the Group.
closing rate.

OTHER ITEMS
38. ACCOUNTING POLICIES continued Borrowing costs

C. FINANCIAL PERFORMANCE Interest on borrowings directly relating to the financing of qualifying assets
Revenue recognition in the course of construction is added to the capitalised cost of those projects
Revenue is derived principally from the sale of goods and is measured at the under ‘Capital works in progress’, until such time as the assets are
fair value of consideration received or receivable, after deducting discounts, substantially ready for their intended use or sale. Where funds have been
volume rebates, value added tax and other sales taxes. A sale is recognised borrowed specifically to finance a project, the amount capitalised represents
when the significant risks and rewards of ownership have passed. This is the actual borrowing costs incurred. Where the funds used to finance a
usually when title and insurance risk have passed to the customer and the project form part of general borrowings, the amount capitalised is calculated
goods have been delivered to a contractually agreed location. using a weighted average of rates applicable to relevant general borrowings
of the Group during the period. All other borrowing costs are recognised in
Sales of metal concentrate are stated at their invoiced amount which is the income statement in the period in which they are incurred.
net of treatment and refining charges. Sales of certain commodities are
provisionally priced such that the price is not settled until a predetermined D. CAPITAL BASE
future date and is based on the market price at that time. Revenue on these Business combinations and goodwill arising thereon
sales is initially recognised (when the above criteria are met) at the current The identifiable assets, liabilities and contingent liabilities of a subsidiary,
market price. Provisionally priced sales are marked to market at each a joint arrangement or an associate, which can be measured reliably, are
reporting date using the forward price for the period equivalent to that recorded at their provisional fair values at the date of acquisition. The
outlined in the contract. This mark-to-market adjustment is recognised in estimation of the fair value of identifiable assets and liabilities is subjective
revenue, see note 1 for more information on provisional price adjustments. and the use of different valuation assumptions could have a significant impact
Revenues from the sale of material by-products are included within revenue. on financial results. Goodwill is the fair value of the consideration transferred
Where a by-product is not regarded as significant, revenue may be credited (including contingent consideration and previously held non-controlling
against the cost of sales. interests) less the fair value of the Group’s share of identifiable net assets
on acquisition.
Revenue from services is recognised as services are rendered and accepted
by the customer. Amounts billed to customers in respect of shipping and Where a business combination is achieved in stages, the Group’s previously
handling activities are classified as revenue where the Group is responsible held interests in the acquiree are remeasured to fair value at the acquisition
for freight. In situations where the Group is acting as an agent, amounts billed date and the resulting gain or loss is recognised in the income statement.
to customers are offset against the relevant costs. Amounts arising from interests in the acquiree prior to the acquisition date
Interest income is accrued on a time basis, by reference to the principal that have previously been recognised in other comprehensive income are
outstanding and at the effective interest rate applicable. reclassified to the income statement, where such treatment would be
appropriate if that interest were disposed of.
Dividend income from investments is recognised when the shareholders’
rights to receive payment have been established. Transaction costs incurred in connection with the business combination
are expensed. Provisional fair values are finalised within 12 months of the
Exploration and evaluation expenditure acquisition date.
Exploration and evaluation expenditure is expensed in the year in which it Goodwill in respect of subsidiaries and joint operations is included within
is incurred. intangible assets. Goodwill relating to associates and joint ventures is
Exploration expenditure is the cost of exploring for Mineral Resources other included within the carrying value of the investment.
than that occurring at existing operations and projects and comprises Where the fair value of the identifiable net assets acquired exceeds the
geological and geophysical studies, exploratory drilling and sampling and cost of the acquisition, the surplus, which represents the discount on the
Mineral Resource development. acquisition, is recognised directly in the income statement in the period
Evaluation expenditure includes the cost of conceptual and pre-feasibility of acquisition.
studies and evaluation of Mineral Resources at existing operations. For non-wholly owned subsidiaries, non-controlling interests are initially
When a decision is taken that a mining project is technically feasible and recorded at the non-controlling interests’ proportion of the fair values of net
commercially viable, usually after a pre-feasibility study has been completed, assets recognised at acquisition.
subsequent directly attributable expenditure, including feasibility study costs,
are considered development expenditure and are capitalised within property, Impairment of goodwill, intangible assets and property,
plant and equipment. plant and equipment
Goodwill arising on business combinations is allocated to the group of cash
Exploration properties acquired are recognised on the balance sheet when generating units (CGUs) that is expected to benefit from synergies of the
management considers that their value is recoverable. These properties are combination, and represents the lowest level at which goodwill is monitored
measured at cost less any accumulated impairment losses. by the Group’s Board of directors for internal management purposes. The
recoverable amount of the CGU, or group of CGUs, to which goodwill has
Leases
been allocated is tested for impairment annually, or when events or changes
In addition to lease contracts, other significant contracts are assessed to
in circumstances indicate that it may be impaired.
determine whether in substance they are, or contain, a lease. This includes
assessment of whether the arrangement is dependent on use of a specific Any impairment loss is recognised immediately in the income statement.
asset and the right to use that asset is conveyed through the contract. Impairment of goodwill is not subsequently reversed.
Rental costs under operating leases are recognised in the income statement At each reporting date, the Group reviews the carrying amounts of its
in equal annual amounts over the lease term. property, plant and equipment and intangible assets to determine whether
there is any indication that those assets are impaired. If such an indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent of any impairment. Where the asset does not generate cash flows
that are independent from other assets, the Group estimates the recoverable
amount of the CGU to which the asset belongs. An intangible asset with an
indefinite useful life is tested for impairment annually and whenever there is
an indication that the asset may be impaired.

OTHER ITEMS
38. ACCOUNTING POLICIES continued In certain instances significant levels of waste removal may occur during the
Recoverable amount is the higher of fair value less costs of disposal and production phase with little or no associated production. This may occur at
value in use (VIU) assessed using discounted cash flow models, as explained both open pit and underground mines, for example longwall development.
in note 7. In assessing VIU, the estimated future cash flows are discounted to The cost of this waste removal is capitalised in full to ‘Mining properties
their present value using a pre-tax discount rate that reflects current market and leases’.
assessments of the time value of money and the risks specific to the asset for
which estimates of future cash flows have not been adjusted. All amounts capitalised in respect of waste removal are depreciated using the
unit of production method for the component of the orebody to which they
If the recoverable amount of an asset or CGU is estimated to be less than its relate, consistent with depreciation of property, plant and equipment.
carrying amount, the carrying amount of the asset or CGU is reduced to its
recoverable amount. An impairment loss is recognised in the income statement. The effects of changes to the Life of Mine Plan on the expected cost of waste
removal or remaining Ore Reserves for a component are accounted for
Where an impairment loss subsequently reverses, the carrying amount of the prospectively as a change in estimate.
asset or CGU is increased to the revised estimate of its recoverable amount,
to the extent that the increased carrying amount does not exceed the Property, plant and equipment
carrying amount that would have been determined had no impairment been Property, plant and equipment is stated at cost, less accumulated
recognised for the asset or CGU. A reversal of an impairment loss is depreciation and accumulated impairment losses. Cost is the fair value of
recognised in the income statement. consideration required to acquire and develop the asset and includes the
In addition, in making assessments for impairment, management necessarily purchase price, acquisition of mineral rights, costs directly attributable to
applies its judgement in allocating assets, including goodwill, that do not bringing the asset to the location and condition necessary for it to be capable
generate independent cash flows to appropriate CGUs. of operating in the manner intended by management, the initial estimate of
any decommissioning obligation and, for assets that take a substantial period
Subsequent changes to the CGU allocation, to the timing of cash flows or to of time to get ready for their intended use, borrowing costs.
the assumptions used to determine the cash flows could impact the carrying
value of the respective assets. Gains or losses on disposal of property, plant and equipment are determined
by comparing the proceeds from disposal with the carrying amount. The gain
Non-mining licences and other intangible assets or loss is recognised in the income statement.
Non-mining licences and other intangible assets are measured at cost less Depreciation of property, plant and equipment
accumulated amortisation and accumulated impairment losses. Intangible Mining properties are depreciated to their residual values using the unit of
assets acquired as part of an acquisition of a business are capitalised production method based on Proved and Probable Ore Reserves and, in
separately from goodwill if the asset is separable or arises from contractual certain limited circumstances, other Mineral Resources included in the Life
or legal rights and the fair value can be measured reliably on initial of Mine Plan. These other Mineral Resources are included in depreciation
recognition. Intangible assets are amortised over their estimated useful lives, calculations where, taking into account historical rates of conversion to Ore
usually between 3 and 20 years, except goodwill and those intangible assets Reserves, there is a high degree of confidence that they will be extracted
that are considered to have indefinite lives. For intangible assets with a finite in an economic manner. This is the case principally for diamond operations,
life, the amortisation period is determined as the period over which the Group where depreciation calculations are based on Diamond Reserves and
expects to obtain benefits from the asset, taking account of all relevant facts Diamond Resources included in the Life of Mine Plan. This reflects the
and circumstances including contractual lives and expectations about the unique nature of diamond deposits where, due to the difficulty in estimating
renewal of contractual arrangements without significant incremental costs. grade, Life of Mine Plans frequently include significant amounts of Indicated
An intangible asset is deemed to have an indefinite life when, based on an or Inferred Resources.
analysis of all of the relevant factors, there is no foreseeable limit to the
period over which the asset is expected to generate cash flows for the Group. Buildings and items of plant and equipment for which the consumption of
Amortisation methods, residual values and estimated useful lives are economic benefit is linked primarily to utilisation or to throughput rather
reviewed at least annually. than production, are depreciated to their residual values at varying rates
on a straight line basis over their estimated useful lives, or the Reserve Life,
Deferred stripping whichever is shorter. Estimated useful lives normally vary from up to 20 years
The removal of rock or soil overlying a mineral deposit, overburden, and other for items of plant and equipment to a maximum of 50 years for buildings.
waste materials is often necessary during the initial development of an open Under limited circumstances, items of plant and equipment may be
pit mine site, in order to access the orebody. The process of removing depreciated over a period that exceeds the Reserve Life by taking into
overburden and other mine waste materials is referred to as stripping. The account additional Mineral Resources other than Proved and Probable
directly attributable cost of this activity is capitalised in full within ‘Mining Reserves included in the Life of Mine Plan, after making allowance for
properties and leases’, until the point at which the mine is considered to be expected production losses based on historical rates of Mineral Resource
capable of operating in the manner intended by management. This is to Ore Reserve conversion.
classified as expansionary capital expenditure, within investing cash flows. ‘Capital works in progress’ are measured at cost less any recognised
The removal of waste material after the point at which depreciation impairment. Depreciation commences when the assets are capable of
commences is referred to as production stripping. When the waste removal operating in the manner intended by management, at which point they are
activity improves access to ore extracted in the current period, the costs of transferred to the appropriate asset class.
production stripping are charged to the income statement as operating costs Land is not depreciated.
in accordance with the principles of IAS 2 Inventories.
When parts of an item of property, plant and equipment have different useful
Where production stripping activity both produces inventory and improves lives, they are accounted for as separate items (major components).
access to ore in future periods the associated costs of waste removal are
allocated between the two elements. The portion that benefits future ore Depreciation methods, residual values and estimated useful lives are
extraction is capitalised within ‘Mining properties and leases’. This is reviewed at least annually.
classified as stripping and development capital expenditure, within investing Assets held under finance leases are depreciated over the shorter of the
cash flows. If the amount to be capitalised cannot be specifically identified it is lease term and the estimated useful lives of the assets.
determined based on the volume of waste extracted compared with expected
volume for the identified component of the orebody. This determination is
dependent on an individual mine’s design and Life of Mine Plan and therefore
changes to the design or Life of Mine Plan will result in changes to these
estimates. Identification of the components of a mine’s orebody is made by
reference to the Life of Mine Plan. The assessment depends on a range of
factors including each mine’s specific operational features and materiality.

OTHER ITEMS
38. ACCOUNTING POLICIES continued The amount recognised as a provision represents management’s best
Financial assets estimate of the consideration required to complete the restoration and
Investments, other than investments in subsidiaries, joint arrangements rehabilitation activity, the application of the relevant regulatory framework
and associates, are financial asset investments and are initially recognised and timing of expenditure. These estimates are inherently uncertain and
at fair value. At subsequent reporting dates, financial assets classified as could materially change over time. Changes in the measurement of a liability
held-to-maturity or as loans and receivables are measured at amortised cost, relating to the decommissioning of plant or other site preparation work (that
less any impairment losses. Other investments are classified as either at fair result from changes in the estimated timing or amount of the cash flow or a
value through profit or loss (which includes investments held for trading) or change in the discount rate), are added to or deducted from the cost of the
available for sale financial assets. Both categories are subsequently related asset in the current period. If a decrease in the liability exceeds the
measured at fair value. Where investments are held for trading purposes, carrying amount of the asset, the excess is recognised immediately in the
unrealised gains and losses for the period are included in the income income statement. If the asset value is increased and there is an indication
statement within other gains and losses. For available for sale investments, that the revised carrying value is not recoverable, an impairment test is
unrealised gains and losses are recognised in equity until the investment is performed in accordance with the accounting policy set out above.
disposed of or impaired, at which time the cumulative gain or loss previously For some South African operations annual contributions are made to
recognised in equity is recycled to the income statement. dedicated environmental rehabilitation trusts to fund the estimated cost of
Impairment of financial assets rehabilitation during and at the end of the life of the relevant mine. The Group
A financial asset not measured at fair value through profit or loss is assessed exercises full control of these trusts and therefore the trusts are consolidated.
at each reporting date to determine whether there is any objective evidence The trusts’ assets are disclosed separately on the balance sheet as
that it is impaired. A financial asset is impaired if objective evidence indicates non-current assets.
that a loss event has occurred after the initial recognition of the asset. The trusts’ assets are measured based on the nature of the underlying assets
An impairment loss in respect of a financial asset measured at amortised cost in accordance with accounting policies for similar assets.
is calculated as the difference between its carrying amount and the present
E. WORKING CAPITAL
value of the estimated cash flows discounted at the asset’s original effective
interest rate. Losses are recognised in the income statement. When a Inventories
subsequent event causes the amount of impairment loss to decrease, the Inventory and work in progress are measured at the lower of cost and net
decrease in impairment loss is reversed through the income statement. realisable value, except for inventory held by commodity broker-traders
which is measured at fair value less costs to sell. The production cost of
Impairment losses relating to available for sale investments are recognised inventory includes an appropriate proportion of depreciation and production
when a decline in fair value is considered significant or prolonged. These overheads. Cost is determined on the following basis:
impairment losses are recognised by transferring the cumulative loss that has
been recognised in the statement of comprehensive income to the income ••Raw materials and consumables are measured at cost on a first in, first out
statement. The loss recognised in the income statement is the difference (FIFO) basis or a weighted average cost basis.
between the acquisition cost and the current fair value. ••Work in progress and finished products are measured at raw material cost,
labour cost and a proportion of production overhead expenses.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when the right to receive cash flows from ••Metal and coal stocks are included within finished products and are
the asset has expired, the right to receive cash flows has been retained but measured at average cost.
an obligation to on-pay them in full without material delay has been assumed At precious metals operations that produce ‘joint products’, cost is allocated
or the right to receive cash flows has been transferred together with amongst products according to the ratio of contribution of these metals to
substantially all the risks and rewards of ownership. gross sales revenues.
Financial liabilities are derecognised when the associated obligation has
F. NET DEBT AND FINANCIAL RISK MANAGEMENT
been discharged, cancelled or has expired.
Cash and debt
Environmental restoration and decommissioning obligations Cash and cash equivalents
An obligation to incur environmental restoration, rehabilitation and Cash and cash equivalents comprise cash in hand and on demand deposits,
decommissioning costs arises when disturbance is caused by the together with short-term, highly liquid investments that are readily convertible
development or ongoing production of a mining asset. Costs for restoration to a known amount of cash and that are subject to an insignificant risk of
of site damage, rehabilitation and environmental costs are estimated using changes in value. Bank overdrafts are shown within short term borrowings in
either the work of external consultants or internal experts. Such costs arising current liabilities on the balance sheet. Cash and cash equivalents in the cash
from the decommissioning of plant and other site preparation work, flow statement are shown net of overdrafts. Cash and cash equivalents are
discounted to their net present value, are provided for and capitalised at the measured at amortised cost.
start of each project, as soon as the obligation to incur such costs arises. Financial liabilities and equity instruments
These costs are recognised in the income statement over the life of the Financial liabilities and equity instruments are classified and accounted for
operation, through the depreciation of the asset and the unwinding of the as debt or equity according to the substance of the contractual arrangements
discount on the provision. Costs for restoration of subsequent site damage entered into.
which is created on an ongoing basis during production are provided for at Borrowings
their net present values and recognised in the income statement as Interest bearing borrowings and overdrafts are initially recognised at fair
extraction progresses. value, net of directly attributable transaction costs. Finance charges,
including premiums payable on settlement or redemption and direct issue
costs are recognised in the income statement using the effective interest
method. They are added to the carrying amount of the instrument to the
extent that they are not settled in the period in which they arise.

OTHER ITEMS
38. ACCOUNTING POLICIES continued Deferred tax is recognised in respect of temporary differences between the
Derivative financial instruments and hedge accounting carrying amounts of assets and liabilities for financial reporting purposes and
In order to hedge its exposure to foreign exchange, interest rate and the amounts used for taxation purposes. Deferred tax liabilities are generally
commodity price risk, the Group enters into forward, option and swap recognised for all taxable temporary differences and deferred tax assets are
contracts. The Group does not use derivative financial instruments for recognised to the extent that it is probable that taxable profits will be available
speculative purposes. Commodity based (own use) contracts that meet against which deductible temporary differences can be utilised. Such assets
the scope exemption in IAS 39 Financial Instruments: Recognition and and liabilities are not recognised if the temporary differences arise from the
Measurement are recognised in earnings when they are settled by initial recognition of goodwill or of an asset or liability in a transaction (other
physical delivery. than in a business combination) that affects neither taxable profit nor
accounting profit.
All derivatives are held at fair value in the balance sheet within ‘Derivative
financial assets’ or ‘Derivative financial liabilities’ except if they are linked Deferred tax liabilities are recognised for taxable temporary differences
to settlement and delivery of an unquoted equity instrument and the fair arising on investments in subsidiaries, joint arrangements and associates
value cannot be measured reliably, in which case they are carried at cost. except where the Group is able to control the reversal of the temporary
Derivatives are classified as current or non-current depending on the difference and it is probable that the temporary difference will not reverse
contractual maturity of the derivative. A derivative cannot be measured in the foreseeable future.
reliably where the range of reasonable fair value estimates is significant and The carrying amount of deferred tax assets is reviewed at each reporting
the probabilities of various estimates cannot be reasonably assessed. date and is adjusted to the extent that it is no longer probable that sufficient
Changes in the fair value of derivative financial instruments that are taxable profit will be available to allow all or part of the asset to be recovered.
designated and effective as hedges of future cash flows (cash flow hedges) Deferred tax is calculated at the tax rates that are expected to apply in the
are recognised directly in equity. The gain or loss relating to the ineffective period when the liability is settled or the asset is realised, based on the laws
portion is recognised immediately in the income statement. If the cash flow that have been enacted or substantively enacted by the reporting date.
hedge of a firm commitment or forecast transaction results in the recognition Deferred tax is charged or credited to the income statement, except when
of a non-financial asset or liability, then, at the time the asset or liability is it relates to items charged or credited directly to equity, in which case the
recognised, the associated gains or losses on the derivative that had deferred tax is also taken directly to equity.
previously been recognised in equity are included in the initial measurement
Deferred tax assets and liabilities are offset when they relate to income
of the asset or liability. For hedges that do not result in the recognition of a
taxes levied by the same taxation authority and the Group intends to settle
non-financial asset or liability, amounts deferred in equity are recognised in
its current tax assets and liabilities on a net basis in that taxation authority.
the income statement in the same period in which the hedged item affects
profit or loss. H. EMPLOYEES
For an effective hedge of an exposure to changes in fair value, the hedged Retirement benefits
item is adjusted for changes in fair value attributable to the risk being hedged. The Group’s accounting policy involves the use of ‘best estimate’
The corresponding entry and gains or losses arising from remeasuring the assumptions in calculating the schemes’ valuations in accordance with the
associated derivative are recognised in the income statement. accounting standard. This valuation methodology differs from that applied in
The gain or loss on hedging instruments relating to the effective portion calculating the funding valuations, which require the use of ‘prudent’
of a net investment hedge is recognised in equity (within the cumulative assumptions, such as lower discount rates, higher assumed rates of future
translation adjustment reserve). The ineffective portion is recognised inflation expectations and greater improvements in life expectancy, leading to
immediately in the income statement. Gains or losses accumulated in the a higher value placed on the liabilities. The funding valuations are carried out
cumulative translation adjustment reserve are recycled to the income every three years, using the projected credit method, by independent
statement on disposal of the foreign operations to which they relate. qualified actuaries and are used to determine the money that must be put into
the funded schemes. The Group operates both defined benefit and defined
Hedge accounting is discontinued when the hedging instrument expires contribution pension plans for its employees as well as post employment
or is sold, terminated, exercised, revoked, or no longer qualifies for hedge medical plans. For defined contribution plans the amount recognised in the
accounting. At that time, any cumulative gain or loss on the hedging income statement is the contributions paid or payable during the year.
instrument recognised in equity is retained until the forecast transaction
occurs. If a hedge transaction is no longer expected to occur, the net For defined benefit pension and post employment medical plans, full
cumulative gain or loss previously recognised in equity is recycled to the actuarial valuations are carried out at least every three years using the
income statement for the period. projected unit credit method and updates are performed for each financial
year end. The average discount rate for the plans’ liabilities is based on AA
Changes in the fair value of any derivative instruments that are not rated corporate bonds of a suitable duration and currency or, where there is
designated in a hedge relationship are recognised immediately in the no deep market for such bonds, is based on government bonds. Pension plan
income statement. assets are measured using year end market values.
Derivatives embedded in other financial instruments or non-financial Remeasurements comprising actuarial gains and losses, movements in asset
host contracts are treated as separate derivatives when their risks and surplus restrictions and the return on scheme assets (excluding interest
characteristics are not closely related to those of their host contracts and income) are recognised immediately in the statement of comprehensive
the host contracts themselves are not carried at fair value with unrealised income and are not recycled to the income statement. Any increase in the
gains or losses reported in the income statement. present value of plan liabilities expected to arise from employee service
during the year is charged to operating profit. The net interest income or cost
G. TAXATION
on the net defined benefit asset or liability is included in investment income or
Tax
interest expense respectively.
The tax expense includes the current tax and deferred tax charge recognised
in the income statement. Past service cost is recognised immediately to the extent that the benefits
are already vested and otherwise amortised on a straight line basis over the
Current tax payable is based on taxable profit for the year. Taxable profit
average period until the benefits vest.
differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other The retirement benefit obligation recognised on the balance sheet
years and it further excludes items that are not taxable or deductible. The represents the present value of the deficit or surplus of the defined benefit
Group’s liability for current tax is calculated using tax rates that have been plans. Any recognised surplus is limited to the present value of available
enacted or substantively enacted by the reporting date. refunds or reductions in future contributions to the plan.

OTHER ITEMS
38. ACCOUNTING POLICIES continued The total carrying values of investments in associates and joint ventures
Share-based payments represent the cost of each investment including the carrying value of
The Group makes equity settled share-based payments to certain employees, goodwill, the share of post acquisition retained earnings, any other
which are measured at fair value at the date of grant and expensed on a movements in reserves and any long-term debt interests which in substance
straight line basis over the vesting period, based on the Group’s estimate of form part of the Group’s net investment. The carrying values of associates
shares that will eventually vest. For those share schemes with market related and joint ventures are reviewed on a regular basis and if there is objective
vesting conditions, the fair value is determined using the Monte Carlo model evidence that an impairment in value has occurred as a result of one or more
at the grant date. The fair value of share options issued with non-market events during the period, the investment is impaired.
vesting conditions has been calculated using the Black Scholes model. The Group’s share of an associate’s or joint venture’s losses in excess of its
For all other share awards, the fair value is determined by reference to the interest in that associate or joint venture is not recognised unless the Group
market value of the shares at the grant date. For all share schemes with has an obligation to fund such losses. Unrealised gains arising from
non-market vesting conditions, the likelihood of vesting has been taken transactions with associates and joint ventures are eliminated against the
into account when determining the relevant charge. Vesting assumptions investment to the extent of the Group’s interest in the investee. Unrealised
are reviewed during each reporting period to ensure they reflect losses are eliminated in the same way, but only to the extent that there is no
current expectations. evidence of impairment.
I. GROUP STRUCTURE Non-current assets and disposal groups held for sale
Associates and joint arrangements Non-current assets and disposal groups are classified as held for sale if their
Associates are investments over which the Group has significant influence, carrying amount will be recovered through a sale transaction rather than
which is the power to participate in the financial and operating policy through continuing use. This condition is met only when a sale is highly
decisions of the investee, but without the ability to exercise control or joint probable within one year from the date of classification, management is
control. Typically the Group owns between 20% and 50% of the voting equity committed to the sale and the asset or disposal group is available for
of its associates. immediate sale in its present condition.
Joint arrangements are arrangements in which the Group shares joint control Non-current assets and disposal groups are classified as held for sale from
with one or more parties. Joint control is the contractually agreed sharing of the date these conditions are met and are measured at the lower of carrying
control of an arrangement, and exists only when decisions about the activities amount and fair value less costs to sell. Any resulting impairment loss is
that significantly affect the arrangement’s returns require the unanimous recognised in the income statement.
consent of the parties sharing control. On classification as held for sale the assets are no longer depreciated.
Judgement is required in determining this classification through an evaluation Comparative amounts are not adjusted.
of the facts and circumstances arising from each individual arrangement.
Joint arrangements are classified as either joint operations or joint ventures Black Economic Empowerment (BEE) transactions
based on the rights and obligations of the parties to the arrangement. In joint Where the Group disposes of a portion of a South African based subsidiary
operations, the parties have rights to the assets and obligations for the or operation to a BEE company at a discount to fair value, the transaction is
liabilities relating to the arrangement, whereas in joint ventures, the parties considered to be a share-based payment (in line with the principle contained
have rights to the net assets of the arrangement. in South Africa interpretation AC 503 Accounting for Black Economic
Empowerment (BEE) Transactions).
Joint arrangements that are not structured through a separate vehicle are
always joint operations. Joint arrangements that are structured through a The discount provided or value given is calculated in accordance with IFRS 2
separate vehicle may be either joint operations or joint ventures depending and the cost, representing the fair value of the BEE credentials obtained by
on the substance of the arrangement. In these cases, consideration is given the subsidiary, is recorded in the income statement.
to the legal form of the separate vehicle, the terms of the contractual
arrangement and, when relevant, other facts and circumstances. When the
activities of an arrangement are primarily designed for the provision of output
to the parties, and the parties are substantially the only source of cash flows
contributing to the continuity of the operations of the arrangement, this
indicates that the parties to the arrangements have rights to the assets and
obligations for the liabilities.
Certain joint arrangements that are structured through separate vehicles
including Collahuasi, Debswana and Namdeb are accounted for as joint
operations. These arrangements are primarily designed for the provision of
output to the parties sharing joint control, indicating that the parties have
rights to substantially all the economic benefits of the assets. The liabilities
of the arrangements are in substance satisfied by cash flows received from
the parties; this dependence indicates that the parties effectively have
obligations for the liabilities. It is primarily these facts and circumstances that
give rise to the classification as joint operations.
The Group accounts for joint operations by recognising the assets, liabilities,
revenue and expenses for which it has rights or obligations, including its
share of such items held or incurred jointly.
Investments in associates and joint ventures are accounted for using the
equity method of accounting except when classified as held for sale. The
Group’s share of associates’ and joint ventures’ net income is based on their
most recent audited financial statements or unaudited interim statements
drawn up to the Group’s balance sheet date.

FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION FINANCIAL STATEMENTS OF THE PARENT COMPANY
FINANCIAL STATEMENTS OF THE PARENT COMPANY
Balance sheet of the Company, Anglo American plc, as at 31 December 2017

Fixed assets
Investment in subsidiaries 1 29,916 29,344
Current assets
Amounts due from Group undertakings 727 576
Cash at bank and in hand 1 8
728 584
Creditors due within one year
Amounts owed to Group undertakings (275) (200)
(275) (200)
Net current assets 453 384
Total assets less current liabilities 30,369 29,728
Net assets 30,369 29,728
Capital and reserves

Called-up share capital 2 772 772
Share premium account 2 4,358 4,358
Capital redemption reserve 2 115 115
Other reserves 2 1,955 1,955
Profit and loss account 2 23,169 22,528
Total shareholders’ funds (equity) 30,369 29,728
The profit after tax for the year of the Company amounted to $1,104 million (2016: loss of $343 million).
The financial statements of Anglo American plc, registered number 03564138, were approved by the Board of directors on 21 February 2018 and signed on its
behalf by:
Mark Cutifani Stephen Pearce

Chief Executive Finance Director

1. INVESTMENT IN SUBSIDIARIES
Cost
At 1 January 29,808 15,142
Capital contributions (1) 125 146
Additions – 14,520
At 31 December 29,933 29,808
Provisions for impairment
At 1 January (464) (17)
Credit/(charge) for the year(2) 447 (447)
At 31 December (17) (464)
Net book value 29,916 29,344
(1)
This amount is net of $17 million (2016: $13 million) of intra-group recharges.
(2)
This relates to an impairment reversal of $447 million (2016: charge of $447 million) that was recorded in 2016 with respect to an equity holding in one of the Company’s subsidiaries.
Further information about subsidiaries is provided in note 35 to the Consolidated financial statements.
2. RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS’ FUNDS

Share Capital Profit
Called-up premium redemption Other and loss
US$ million share capital account reserve reserves(1) account(2) Total
At 1 January 2016 772 4,358 115 1,955 22,776 29,976
Loss for the financial year – – – – (343) (343)
Net purchase of treasury shares under employee share schemes – – – – (64) (64)
Capital contribution to Group undertakings – – – – 159 159
At 31 December 2016 772 4,358 115 1,955 22,528 29,728
Profit for the financial year – – – – 1,104 1,104
Dividends payable to Company shareholders (3) – – – – (410) (410)
Net purchase of treasury shares under employee share schemes – – – – (195) (195)
Capital contribution to Group undertakings – – – – 142 142
At 31 December 2017 772 4,358 115 1,955 23,169 30,369
(1)
At 31 December 2017 other reserves of $1,955 million (2016: $1,955 million) were not distributable under the Companies Act 2006.
(2)
At 31 December 2017 $2,685 million (2016: $2,685 million) of the Company profit and loss account of $23,169 million (2016: $22,528 million) was not distributable under the Companies Act 2006.
(3)
Dividends payable relate only to shareholders on the United Kingdom principal register excluding dividends waived by Wealth Nominees Limited as nominees for Estera Trust (Jersey) Limited,
the trustee for the Anglo American employee share scheme. Dividends paid to shareholders on the Johannesburg branch register are distributed by a South African subsidiary in accordance
with the terms of the Dividend Access Share Provisions of Anglo American plc’s Articles of Association. The directors are proposing a final dividend in respect of the year ended 31 December
2017 of 54 US cents per share (see note 6 of the Consolidated financial statements).
The audit fee in respect of the Company was $6,807 (2016: $6,323). Fees payable to Deloitte for non-audit services to the Company are not required
to be disclosed because they are included within the consolidated disclosure in note 37.

3. ACCOUNTING POLICIES: ANGLO AMERICAN PLC (THE COMPANY)

The Company balance sheet and related notes have been prepared under the historical cost convention and in accordance with Financial Reporting Standards
100 Application of Financial Reporting Requirements (FRS 100) and Financial Reporting Standards 101 Reduced Disclosure Framework (FRS 101).
A summary of the principal accounting policies is set out below.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to
exercise judgement in applying the Company's accounting policies.
As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Company is not presented as part of these financial
statements.
Significant accounting policies

Investments
Investments represent equity holdings in subsidiaries and are measured at cost less accumulated impairment.
Financial instruments
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are
derecognised when they are discharged or when the contractual terms expire.
Dividends
Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Share-based payments
The Company has applied the requirements of IFRS 2 Share-based payment.
The Company makes equity settled share-based payments to the directors, which are measured at fair value at the date of grant and expensed on a straight
line basis over the vesting period, based on the Company’s estimate of shares that will eventually vest. For those share schemes with market related vesting
conditions, the fair value is determined using the Monte Carlo model at the grant date. The fair value of share options issued with non-market vesting
conditions has been calculated using the Black Scholes model. For all other share awards, the fair value is determined by reference to the market value of the
shares at the grant date. For all share schemes with non-market vesting conditions, the likelihood of vesting has been taken into account when determining the
relevant charge. Vesting assumptions are reviewed during each reporting period to ensure they reflect current expectations.
The Company also makes equity settled share-based payments to certain employees of certain subsidiary undertakings. Equity settled share-based
payments that are made to employees of the Company’s subsidiaries are treated as increases in equity over the vesting period of the award, with a
corresponding increase in the Company’s investments in subsidiaries, based on an estimate of the number of shares that will eventually vest.
Any payments received from subsidiaries are applied to reduce the related increases in Investments in subsidiaries.

SUMMARY BY OPERATION
This section includes certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including definitions, please
refer to page 194.
Marketing activities are allocated to the underlying operation to which they relate.
Group revenue(1) Underlying EBITDA Underlying earnings Capital expenditure

US$ million 2017 2016 2017 2016 2017 2016 2017 2016
De Beers 5,841 6,068 1,435 1,406 528 667 273 526

Mining
Debswana (Botswana) n/a n/a 484 571 n/a n/a 86 90
Namdeb Holdings (Namibia) n/a n/a 176 184 n/a n/a 33 65
South Africa n/a n/a 267 268 n/a n/a 114 156
Canada n/a n/a 205 79 n/a n/a (5) 184
Trading n/a n/a 449 378 n/a n/a 1 3
Other(2) n/a n/a (110) (35) n/a n/a 44 28
Projects and corporate – – (36) (39) n/a n/a – –
Copper 4,233 3,066 1,508 903 370 354 665 563

Los Bronces 1,839 1,386 737 326 n/a n/a 245 241
Collahuasi 1,314 1,068 806 569 356 221 243 144
Other operations 1,080 612 76 83 n/a n/a 177 178
Projects and corporate – – (111) (75) (72) (75) – –
Platinum 5,078 4,394 866 532 217 65 355 314

Mogalakwena 1,211 968 578 393 n/a n/a 151 157
Amandelbult 858 727 88 97 n/a n/a 34 25
Purchase of concentrate (3) 1,884 1,033 173 96 n/a n/a – –
Other operations 1,125 1,666 83 (14) n/a n/a 170 129
Projects and corporate – – (56) (40) n/a n/a – 3
Iron Ore and Manganese 5,831 3,426 2,357 1,536 1,026 566 252 269
Kumba Iron Ore 3,486 2,801 1,474 1,347 467(4) 475(4) 229 160
Iron Ore Brazil (Minas-Rio) 1,405 – 435 (6) 413 4 23 109
Samancor (Manganese) 940 625 529 258 223 146 – –
Projects and corporate – – (81) (63) (77)(4) (59)(4) – –
Coal 7,211 5,263 2,868 1,646 1,763 913 568 613

Metallurgical Coal 3,675 2,547 1,977 996 1,348 625 416 523
South Africa 2,746 2,109 588 473 311 258 152 90
Cerrejón 790 607 385 235 181 85 – –
Projects and corporate – – (82) (58) (77) (55) – –
Nickel 451 426 81 57 (4) (57) 28 62
Corporate and other(5) 5 499 (292) (5) (628) (298) 9 40

Niobium and Phosphates – 495 – 118 – 78 – 26
Exploration – – (103) (107) (91) (99) – –
Corporate activities and unallocated costs 5 4 (189) (16) (537) (277) 9 14
28,650 23,142 8,823 6,075 3,272 2,210 2,150 2,387
(1)
Group revenue for copper is shown after deduction of treatment and refining charges (TC/RCs).
(2)
Other includes Element Six, downstream activities and the purchase price allocation adjustment.
(3)
Purchase of concentrate from joint ventures, associates and third parties for processing into refined metals.
(4)
Of the projects and corporate expense, which includes a corporate cost allocation, $49 million (2016: $37 million) relates to Kumba Iron Ore. The total contribution from Kumba Iron Ore to the
Group’s underlying earnings is $418 million (2016: $438 million).
(5)

KEY FINANCIAL DATA
This section includes certain Alternative Performance Measures (APMs). For more information on the APMs used by the Group, including definitions, please
refer to page 194.
2012
US$ million (unless otherwise stated) 2017 2016 2015 2014 2013 restated(1) 2011 2010 2009 2008
Income statement measures
Group revenue 28,650 23,142 23,003 30,988 33,063 32,785 36,548 32,929 24,637 32,964
Underlying EBIT 6,247 3,766 2,223 4,933 6,620 6,253 11,095 9,763 4,957 10,085
Underlying EBITDA 8,823 6,075 4,854 7,832 9,520 8,860 13,348 11,983 6,930 11,847
Revenue 26,243 21,378 20,455 27,073 29,342 28,680 30,580 27,960 20,858 26,311
Net finance costs (before special items and remeasurements) (473) (209) (458) (256) (276) (299) (20) (244) (273) (452)
Profit/(loss) before tax 5,505 2,624 (5,454) (259) 1,700 (171) 10,782 10,928 4,029 8,571
Profit/(loss) for the financial year 4,059 1,926 (5,842) (1,524) 426 (564) 7,922 8,119 2,912 6,120
Non-controlling interests (893) (332) 218 (989) (1,387) (906) (1,753) (1,575) (487) (905)
Profit/(loss) attributable to equity shareholders of the Company 3,166 1,594 (5,624) (2,513) (961) (1,470) 6,169 6,544 2,425 5,215
Underlying earnings 3,272 2,210 827 2,217 2,673 2,860 6,120 4,976 2,569 5,237
Balance sheet measures
Capital employed 32,813 31,904 32,842 43,782 46,551 49,757 41,667 42,135 36,623 29,808
Net assets 28,882 24,325 21,342 32,177 37,364 43,738 43,189 37,971 28,069 21,756
Non-controlling interests (5,910) (5,309) (4,773) (5,760) (5,693) (6,127) (4,097) (3,732) (1,948) (1,535)
Equity attributable to equity shareholders of the Company 22,972 19,016 16,569 26,417 31,671 37,611 39,092 34,239 26,121 20,221
Cash flow measures
Cash flows from operations 8,375 5,838 4,240 6,949 7,729 7,370 11,498 9,924 4,904 9,579
Capital expenditure (2,150) (2,387) (4,177) (6,018) (6,075) (5,947) (5,672) (4,902) (4,707) (5,282)
Net debt (4,501) (8,487) (12,901) (12,871) (10,652) (8,510) (1,374) (7,384) (11,280) (11,340)
Metrics and ratios
Underlying earnings per share (US$) 2.57 1.72 0.64 1.73 2.09 2.28 5.06 4.13 2.14 4.36
Earnings per share (US$) 2.48 1.24 (4.36) (1.96) (0.75) (1.17) 5.10 5.43 2.02 4.34
Ordinary dividend per share (US cents) 102 – 32 85 85 85 74 65 – 44
Ordinary dividend cover (based on underlying earnings per share) 2.5 – 2.0 2.0 2.5 2.7 6.8 6.4 – 9.9
Underlying EBIT margin 21.8% 16.3% 9.7% 15.9% 20.0% 19.1% 30.4% 29.6% 20.1% 30.6%
Underlying EBIT interest cover(2) 16.5 16.7 10.1 30.1 35.8 36.8 n/a 34.2 19.6 24.1
Underlying effective tax rate 29.7% 24.6% 31.0% 29.8% 32.0% 29.0% 28.3% 31.9% 33.1% 33.4%
Gearing (net debt to total capital)(3) 13% 26% 38% 29% 22% 16% 3% 16% 29% 34%
(1)
Certain balances relating to 2012 were restated to reflect the adoption of new accounting pronouncements. See note 2 of the 2013 Consolidated financial statements for details.
(2)
Underlying EBIT interest cover is underlying EBIT divided by net finance costs, excluding net foreign exchange gains and losses, unwinding of discount relating to provisions and other liabilities,
financing special items and remeasurements, and including the Group’s attributable share of associates’ and joint ventures’ net finance costs, which in 2011 resulted in a net finance income and
therefore the ratio is not applicable.
(3)
Net debt to total capital is calculated as net debt divided by total capital (being ‘Net assets’ as shown in the Consolidated balance sheet excluding net debt).

EXCHANGE RATES AND COMMODITY PRICES
US$ exchange rates 2017 2016

Year end spot rates
South African rand 12.31 13.73
Brazilian real 3.31 3.25
Sterling 0.74 0.81
Australian dollar 1.28 1.38
Euro 0.83 0.95
Chilean peso 615 667
Botswana pula 9.85 10.69
Average rates for the year

South African rand 13.31 14.70
Brazilian real 3.19 3.48
Sterling 0.78 0.74
Australian dollar 1.30 1.34
Euro 0.89 0.90
Chilean peso 649 676
Botswana pula 10.34 10.89
Commodity prices 2017 2016

Year end spot prices
Copper(1) US cents/lb 325 250
Platinum (2) US$/oz 925 898
Palladium (2) US$/oz 1,057 670
Rhodium (3) US$/oz 1,700 758
Iron ore (62% Fe CFR)(4) US$/tonne 74 80
Iron ore (66% Fe Concentrate CFR)(5) US$/tonne 96 101
Hard coking coal (FOB Australia)(4) US$/tonne 262 230
PCI (FOB Australia)(4) US$/tonne 147 112
Thermal coal (FOB South Africa)(6) US$/tonne 95 86
Thermal coal (FOB Australia)(7) US$/tonne 104 94
Thermal coal (FOB Colombia)(6) US$/tonne 86 94
Nickel (1) US cents/lb 556 454
Average market prices for the year

Copper(1) US cents/lb 280 221
Platinum (2) US$/oz 950 989
Palladium (2) US$/oz 871 615
Rhodium (3) US$/oz 1,097 681
Iron ore (62% Fe CFR)(4) US$/tonne 71 58
Iron ore (66% Fe Concentrate CFR)(5) US$/tonne 87 69
Hard coking coal (FOB Australia)(8) US$/tonne 188 143
PCI (FOB Australia)(8) US$/tonne 119 97
Thermal coal (FOB South Africa)(6) US$/tonne 84 64
Thermal coal (FOB Australia)(7) US$/tonne 89 66
Thermal coal (FOB Colombia)(6) US$/tonne 78 58
Nickel (1) US cents/lb 472 436
(1)
Source: London Metal Exchange (LME).
(2)
Source: London Platinum and Palladium Market (LPPM).
(3)
Source: Comdaq.
(4)
Source: Platts.
(5)
Source: Metal Bulletin.
(6)
Source: Argus/McCloskey.
(7)
Source: globalCOAL.
(8)
Represents average spot prices. Prior year prices were previously based on the quarterly average benchmark and have been restated accordingly.

ORE RESERVES AND MINERAL RESOURCES
INTRODUCTION
The Ore Reserve and Mineral Resource estimates presented in this To accommodate the various factors that are important in the
Annual Report are prepared in accordance with the Anglo American plc development of a classified Mineral Resource estimate, a scorecard
(AA plc) Reporting of Exploration Results, Mineral Resources and Ore approach is generally used. Mineral Resource classification defines
Reserves standard. This standard requires that the Australasian Code for the confidence associated with different parts of the Mineral Resource.
Reporting of Exploration Results, Mineral Resources and Ore Reserves The confidence that is assigned refers collectively to the reliability of the
2012 edition (the JORC Code) be used as a minimum standard. Some Grade and Tonnage estimates. This reliability includes consideration for
Anglo American plc subsidiaries have a primary listing in South Africa the fidelity of the base data, the geological continuity predicated by the
where public reporting is carried out in accordance with the South level of understanding of the geology, the likely precision of the
African Code for Reporting of Exploration Results, Mineral Resources estimated grades and understanding of grade variability, as well as
and Mineral Reserves (the SAMREC Code). The SAMREC Code is similar various other factors (in particular density) that may influence the
to the JORC Code and the Ore Reserve and Mineral Resource confidence that can be placed on the Mineral Resource. Most business
terminology appearing in this section follows the definitions in both the units have developed commodity-specific scorecard-based approaches
JORC (2012) and SAMREC (2016 Edition) Codes. Ore Reserves in the to the classification of their Mineral Resources.
context of this Annual Report have the same meaning as ‘Mineral
The estimates of Ore Reserves and Mineral Resources are stated as
Reserves’ as defined by the SAMREC Code and the CIM (Canadian
at 31 December 2017. The figures in the tables have been rounded,
Institute of Mining and Metallurgy) Definition Standards on Mineral
and if used to derive totals and averages, minor differences with stated
Resources and Mineral Reserves.
results could occur.
The information on Ore Reserves and Mineral Resources was prepared
The Ore Reserves and Mineral Resources Report 2017 should be
by or under the supervision of Competent Persons as defined in the
considered the only valid source of Ore Reserve and Mineral Resource
JORC or SAMREC Codes. All Competent Persons have sufficient
information for the Anglo American group exclusive of Kumba Iron Ore
experience relevant to the style of mineralisation and type of deposit
and Anglo American Platinum Limited which publish their own
under consideration and to the activity which they are undertaking.
independent annual reports.
All the Competent Persons consent to the inclusion in this report of the
information in the form and context in which it appears. The names of It is accepted that mine design and planning may include some
the Competent Persons (CPs) along with their Recognised Professional Inferred Mineral Resources. Inferred Mineral Resources in the Life
Organisation (RPO) affiliation and years of relevant experience are listed of Mine Plan (LOM Plan) are described as ‘Inferred (in LOM Plan)’
in the Ore Reserve and Mineral Resource Report 2017. separately from the remaining Inferred Mineral Resources described
as ‘Inferred (ex. LOM Plan)’, as required. These resources are declared
Anglo American Group companies are subject to a comprehensive
without application of any Modifying Factors. Reserve Life reflects the
programme of reviews aimed at providing assurance in respect of Ore
scheduled extraction period in years for the total Ore Reserves in the
Reserve and Mineral Resource estimates. The reviews are conducted by
approved Life of Mine Plan.
suitably qualified Competent Persons from within the Anglo American
Group, or by independent consultants. The frequency and depth of the The Ownership (Attributable) Percentage that Anglo American holds
reviews is a function of the perceived risks and/or uncertainties in each operation and project is presented beside the name of each
associated with a particular Ore Reserve and Mineral Resource. The entity. Operations and projects which fall below the internal threshold
overall value of the entity and time that has lapsed since an independent for reporting (25% attributable interest) are excluded from the Ore
third-party review is also considered. Those operations/projects that Reserves and Mineral Resources estimates. Operations or projects
were subjected to independent third-party reviews during the year are which were disposed of during 2017 and hence not reported are:
indicated in footnotes to the tables. Pandora (Platinum) and Dartbrook (Coal).
The JORC and SAMREC Codes require due consideration of reasonable In South Africa, the Minerals and Petroleum Resources Development
prospects for eventual economic extraction for Mineral Resource Act, Number 28 of 2002 (MPRDA) was implemented on 1 May 2004
definition. These include long-range commodity price forecasts which (subsequently amended by the Minerals and Petroleum Resources
are prepared by in-house specialists largely using estimates of future Development Amendment Act 49 of 2008) effectively transferred
supply and demand and long term economic outlooks. The calculation custodianship of the previously privately held mineral rights to the State.
of Mineral Resource and Ore Reserve estimates are based on long-term
A Prospecting Right is a right issued in terms of the MPRDA that is valid
prices determined at the beginning of the second quarter each year. Ore
for up to five years, with the possibility of a further extension of three years.
Reserves are dynamic and are more likely to be affected by fluctuations
in the prices of commodities, uncertainties in production costs, A Mining Right is a right issued in terms of the MPRDA and is valid for Ore Reserves and Mineral Resources
processing costs and other mining, infrastructure, legal, environmental, up to 30 years, with the possibility of a further extension of 30 years.
social and governmental factors which may impact the financial The Minister of Mineral Resources will grant a renewal of the Mining
condition and prospects of the Group. Mineral Resource estimates also Right if the terms and conditions of the Mining Right have been complied
change and tend to be influenced mostly by new information pertaining with and the applicant is not in contravention of any relevant provisions
to the understanding of the deposit and secondly by the conversion to of the MPRDA.
Ore Reserves. Unless otherwise stated, Mineral Resources are additional
In preparing the Ore Reserve and Mineral Resource statement for
to (exclusive of) those resources converted to Ore Reserves and are
South African assets, Anglo American plc has adopted the following
reported on a dry tonnes basis.
reporting principles in respect of Prospecting Rights and Mining Rights:
The appropriate Mineral Resource classification is determined by the
••Where applications for Mining Rights and Prospecting Rights have
appointed Competent (or Qualified) Persons. The choice of appropriate
been submitted and these are still being processed by the relevant
category of Mineral Resource depends upon the quantity, distribution
regulatory authorities, the relevant Ore Reserves and Mineral
and quality of geoscientific information available and the level of
Resources have been included in the statement.
confidence in these data.
••Where applications for Mining Rights and Prospecting Rights have
The detailed Ore Reserve and Mineral Resource estimates, been initially refused by the regulatory authorities, but are the subject
Reserve and Resource Reconciliation Overview, Definitions and Glossary
are contained in the separate Ore Reserves and Mineral Resources Report 2017 of ongoing legal process and discussions with the relevant authorities
which is available in the Annual Reporting Centre on the Anglo American website. and where Anglo American plc has reasonable expectations that the
Prospecting Rights will be granted in due course, the relevant Mineral
Resources have been included in the statement (any associated
comments appear in the footnotes).

ESTIMATED ORE RESERVES(1)

Detailed Proved and Probable estimates appear on the referenced pages in the Ore Reserves and Mineral Resources Report 2017.
Proved + Probable
DIAMOND(3) OPERATIONS – DBCi Ownership Mining LOM(2) Saleable Carats Treated Tonnes Recovered Grade
(See page 10 in R&R Report for details) % Method (years) (Mct) (Mt) (cpht)
Gahcho Kué Kimberlite 43.4 OP 11 48.4 30.9 156.9
Victor Kimberlite 85.0 OP 2 0.0 0.1 18.7
DIAMOND(3) OPERATIONS – DBCM Ownership Mining LOM(2) Saleable Carats Treated Tonnes Recovered Grade
(See page 12 in R&R Report for details) % Method (years) (Mct) (Mt) (cpht)
Venetia (OP) Kimberlite 62.9 OP 29 18.4 14.7 125.5
Venetia (UG) Kimberlite UG 79.4 98.9 80.3
Voorspoed Kimberlite 62.9 OP 3 – – –
DIAMOND(3) OPERATIONS – Debswana Ownership Mining LOM (2)
Saleable Carats Treated Tonnes Recovered Grade
(See pages 14 & 15 in R&R Report for details) % Method (years) (Mct) (Mt) (cpht)
Damtshaa Kimberlite 42.5 OP 17 4.9 25.6 19.2
Jwaneng Kimberlite 42.5 OP 17 174.8 138.2 126.5
Letlhakane TMR 42.5 n/a 26 8.4 34.6 24.3
Orapa Kimberlite 42.5 OP 13 140.8 144.5 97.5
DIAMOND(3) OPERATIONS – Namdeb Ownership Mining LOM(2) Saleable Carats Treated Tonnes Recovered Grade
(See page 16 in R&R Report for details) % Method (years) (kct) (kt) (cpht)
Elizabeth Bay Aeolian and Marine 42.5 OC 2 78 754 10.28
Mining Area 1 Beaches 42.5 OC 5 36 673 5.37
Orange River Fluvial Placers 42.5 OC 4 132 13,796 0.96
Saleable Carats Area Recovered Grade
(kct) k (m2) (cpm2)
Atlantic 1 Marine Placers 42.5 MM 20 6,094 89,883 0.07
Midwater Marine 42.5 MM 3 129 435 0.30
COPPER OPERATIONS Ownership Mining Reserve Life(2) Contained Copper ROM Tonnes Grade
(See page 18 in R&R Report for details) % Method (years) (kt) (Mt) (%TCu)
Collahuasi Sulphide (direct feed) 44.0 OP 69 27,085 2,721.5 1.00
Low Grade Sulphide (in situ + stockpile) 2,818 498.1 0.57
El Soldado Sulphide 50.1 OP 10 614 77.4 0.79
Los Bronces Sulphide – Flotation 50.1 OP 23 6,443 1,054.9 0.61
Sulphide – Dump Leach 1,361 460.2 0.30
PLATINUM(4) OPERATIONS Ownership Mining Reserve Life(2) Contained Metal ROM Tonnes Grade
(See page 21 in R&R Report for details) % Method (years) (4E Moz) (Mt) (4E g/t)
Merensky Reef 33.8 UG n/a 13.4 90.2 4.61
UG2 Reef 57.8 UG n/a 38.6 294.3 4.07
Platreef In situ + stockpile 78.0 OP n/a 126.6 1,399.1 2.81
Main Sulphide Zone 78.0 UG n/a 5.2 47.4 3.44
KUMBA IRON ORE OPERATIONS Ownership Mining Reserve Life(2) Saleable Product Grade
(See page 29 in R&R Report for details) % Method (years) (Mt) (%Fe)
Kolomela Hematite 53.2 OP 14 168 64.3
Sishen Hematite 53.2 OP 13 370 64.6
IRON ORE BRAZIL OPERATIONS Ownership Mining Reserve Life(2) Saleable Product(5) Grade(5)
(See page 30 in R&R Report for details) % Method (years) (Mt) (%Fe)
Serra do Sapo Friable Itabirite and Hematite 100 OP 51 715 67.5
Itabirite OP 738 67.5
SAMANCOR MANGANESE OPERATIONS Ownership Mining Reserve Life (2)
ROM Tonnes Grade
(See page 31 in R&R Report for details) % Method (years) (Mt) (%Mn)
GEMCO(6) ROM + Sand Tailings 40.0 OP 7 67.9 44.3
Mamatwan 29.6 OP 16 55.0 36.8
Wessels 29.6 UG 61 83.1 42.4
Operations = Mines in steady-state or projects in ramp-up phase. TMR = Tailings Mineral Resource.
Mining method: OP = Open Pit, UG = Underground, MM = Marine Mining.
Mct = Million carats. Mt = Million tonnes. kct = thousand carats. kt = thousand tonnes. k (m²) = thousand square metres.
Diamond Recovered Grade is quoted as carats per hundred metric tonnes (cpht) or as carats per square metre (cpm²)
Estimates of 0.0 represent numbers less than 0.05.
TCu = Total Copper. 4E is the sum of Platinum, Palladium, Rhodium and Gold.
Moz = Million troy ounces. g/t = grams per tonne.
ROM = Run of Mine.

Estimated Ore Reserves continued Proved + Probable

COAL OPERATIONS – Australia Ownership Mining Reserve Life(2) Saleable Tonnes(7)
(See page 32 in R&R Report for details) % Method (years) (Mt) Saleable Quality
Capcoal (OC)* Metallurgical – Coking 78.6 OC 15 28.0 5.5 CSN

Metallurgical – Other 44.3 6,840 kcal/kg

Thermal – Export 7.3 6,210 kcal/kg
Capcoal (UG)* Metallurgical – Coking 70.0 UG 1 4.1 8.5 CSN
Dawson Metallurgical – Coking 51.0 OC 14 61.1 7.0 CSN

Thermal – Export 56.3 6,510 kcal/kg
Grosvenor Metallurgical – Coking 100 UG 30 108.2 8.5 CSN
Moranbah North Metallurgical – Coking 88.0 UG 11 81.6 8.0 CSN
COAL OPERATIONS – Canada Ownership Mining Reserve Life(2) Saleable Tonnes(7)
Trend Metallurgical – Coking 100 OC 7 8.3 7.0 CSN
Roman Mountain Metallurgical – Coking 100 OC 15 25.8 7.0 CSN
COAL OPERATIONS – Colombia Ownership Mining Reserve Life(2) Saleable Tonnes(7)
Cerrejón Thermal – Export 33.3 OC 16 459.1 6,140 kcal/kg
COAL OPERATIONS – South Africa Ownership Mining Reserve Life (2)
Saleable Tonnes (7)
(See page 33 & 37 in R&R Report for details) % Method (years) (Mt) Saleable Quality
Goedehoop Thermal – Export 100 UG 8 25.0 5,930 kcal/kg
Goedehoop – MRD Thermal – Export n/a 3 1.3 5,070 kcal/kg
Greenside Thermal – Export 100 UG 10 29.6 5,880 kcal/kg
Greenside – MRD Thermal – Export n/a 2 0.4 5,590 kcal/kg
Isibonelo Synfuel 100 OC 9 44.4 4,640 kcal/kg
Kleinkopje Thermal – Export 100 OC 8 20.6 6,270 kcal/kg
Kriel Thermal – Domestic 73.0 UG&OC 6 22.4 4,840 kcal/kg
Landau Thermal – Export 100 OC 8 21.9 5,870 kcal/kg

Thermal – Domestic 3.4 4,430 kcal/kg
Mafube Thermal – Export 50.0 OC 13 27.9 6,040 kcal/kg

New Denmark Thermal – Domestic 100 UG 19 95.7 5,080 kcal/kg
New Vaal Thermal – Domestic 100 OC 12 192.6 3,520 kcal/kg
Zibulo Thermal – Export 73.0 UG&OC 16 55.0 5,980 kcal/kg

NICKEL OPERATIONS Ownership Mining Reserve Life(2) Contained Nickel ROM Tonnes Grade
(See page 39 in R&R Report for details) % Method (years) (kt) (Mt) (%Ni)
Barro Alto Saprolite 100 OP 22 586 41.9 1.40
Niquelândia Saprolite 100 OP 17 98 7.8 1.26
Operations = Mines in steady-state or projects in ramp-up phase. MRD = Mineral Residue Deposit.
Mining method: OP = Open Pit, UG = Underground, OC = Open Cast/Cut.
* Capcoal comprises opencast operations at Lake Lindsay and Oak Park, with an underground longwall operation at Grasstree.
(1)
Estimated Ore Reserves are the sum of Proved and Probable Ore Reserves (on an exclusive basis, i.e. Mineral Resources are reported as additional to
Ore Reserves unless otherwise stated). Please refer to the detailed Ore Reserve estimates tables in the AA plc R&R Report for the individual Proved and Ore Reserves and Mineral Resources
Probable Reserve estimates. The Ore Reserve estimates are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (The JORC Code, 2012) as a minimum standard. Ore Reserve estimates for operations in South Africa are reported in accordance
with The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 Edition). The figures
reported represent 100% of the Ore Reserves. Anglo American plc ownership is stated separately. Rounding of figures may cause computational discrepancies.
(2)
Reserve Life = The scheduled extraction period in years for the total Ore Reserves in the approved Life of Mine Plan.
LOM = Life of Mine (years) is based on scheduled Probable Reserves including some Inferred Resources considered for Life of Mine planning.
(3)
DBCi = De Beers Canada, DBCM = De Beers Consolidated Mines, Debswana = Debswana Diamond Company, Namdeb = Namdeb Holdings.
Reported Diamond Reserves are based on a Bottom Cut-off (BCO) which refers to the bottom screen size aperture and varies between 1.00mm and 3.00mm
(nominal square mesh). Specific BCO’s applied to derive estimates are included in the detailed Diamond Reserve tables in the AA plc R&R Report.
No Diamond Reserves reported for Voorspoed Kimberlite as mining is now scheduled exclusively from Inferred Resources.
Snap Lake was placed on extended care and maintenance at the end of 2015 and was allowed to flood in Q1 2017. It is now considered a project.
(4)
Details of the individual Anglo American Platinum Limited managed and Joint Venture managed operations appear in the AA plc R&R Report.
Ownership percentages for reef totals are weighted by Contained Metal (4E Moz).
(5)
Iron Ore Brazil Saleable Product tonnes are reported on a wet basis (average moisture content is 9.2 wt% of the wet mass) with quality stated on a dry basis.
(6)
GEMCO Manganese grades are reported as per washed ore samples and should be read together with their respective yields, see page 31 in the AA plc
R&R Report.
(7)
Total Saleable Tonnes represents the product tonnes quoted as metric tonnes on a Product moisture basis. The coal quality for Coal Reserves is quoted as either
kilocalories per kilogram (kcal/kg) or Crucible Swell Number (CSN). Kilocalories per kilogram represent Calorific Value (CV) on a Gross As Received (GAR)
basis. CV is rounded to the nearest 10 kcal/kg and CSN to the nearest 0.5 index.
Metallurgical – Coking: High-, medium- or low-volatile semi-soft, soft or hard coking coal primarily for blending and use in the steel industry.
Metallurgical – Other: Semi-soft, soft, hard, semi-hard or anthracite coal, other than Coking Coal, such as pulverized coal injection (PCI) or other general
metallurgical coal for the export or domestic market with a wider range of properties than Coking Coal.
Thermal – Export: Low- to high-volatile thermal coal primarily for export in the use of power generation; quality measured by calorific value (CV).
Thermal – Domestic: Low- to high-volatile thermal coal primarily for domestic consumption for power generation.
Synfuel: Coal specifically for the domestic production of synthetic fuel and chemicals.
Peace River Coal (Trend and Roman Mountain operations) was placed on extended care and maintenance at the end of 2014.

ESTIMATED MINERAL RESOURCES(1)

Detailed Measured, Indicated and Inferred estimates appear on the referenced pages in the Ore Reserves and Mineral Resources Report 2017.
Measured + Indicated Total Inferred(2)
DIAMOND(3) OPERATIONS – DBCi Ownership Mining Carats Tonnes Grade Carats Tonnes Grade
(See page 10 in R&R Report for details) % Method (Mct) (Mt) (cpht) (Mct) (Mt) (cpht)
Gahcho Kué Kimberlite 43.4 OP 2.6 1.8 142.2 18.0 12.8 140.4
Victor Kimberlite 85.0 OP 0.1 0.5 24.1 0.3 0.8 34.5
DIAMOND(3) OPERATIONS – DBCM Ownership Mining Carats Tonnes Grade Carats Tonnes Grade
(See page 12 in R&R Report for details) % Method (Mct) (Mt) (cpht) (Mct) (Mt) (cpht)
Venetia (OP) Kimberlite 62.9 OP – – – 3.1 18.0 17.1
Venetia (UG) Kimberlite UG – – – 59.6 69.9 85.3
Voorspoed Kimberlite 62.9 OP 0.5 1.9 26.9 3.8 20.1 19.1
DIAMOND(3) OPERATIONS – Debswana Ownership Mining Carats Tonnes Grade Carats Tonnes Grade
(See pages 14 & 15 in R&R Report for details) % Method (Mct) (Mt) (cpht) (Mct) (Mt) (cpht)
Damtshaa Kimberlite 42.5 OP 0.9 3.7 22.9 5.0 20.7 24.3
Jwaneng Kimberlite 42.5 OP 62.3 74.1 84.1 60.0 70.8 84.7
TMR & ORT n/a – – – 24.3 33.4 72.7
Letlhakane TMR & ORT 42.5 n/a 1.4 0.0 5,322.2 14.1 54.6 25.8
Orapa Kimberlite 42.5 OP 297.0 292.0 101.7 66.2 77.5 85.3
DIAMOND OPERATIONS – Namdeb
(3)
Ownership Mining Carats Tonnes Grade Carats Tonnes Grade
(See pages 16 & 17 in R&R Report for details) % Method (kct) (kt) (cpht) (kct) (kt) (cpht)
Douglas Bay Aeolian and Deflation 42.5 OC 160 2,269 7.05 1 127 0.79
Elizabeth Bay Aeolian, Marine and Deflation 42.5 OC 131 2,300 5.69 2,484 33,873 7.33
Mining Area 1 Beaches 42.5 OC 346 37,898 0.91 3,003 192,228 1.56
Orange River Fluvial Placers 42.5 OC 194 45,158 0.43 160 51,450 0.31
Carats Area Grade Carats Area Grade
(kct) k (m2) (cpm2) (kct) k (m2) (cpm2)
Atlantic 1 Marine Placers 42.5 MM 6,635 90,512 0.07 78,797 1,127,012 0.07
Midwater Marine 42.5 MM 565 2,447 0.23 134 1,572 0.09
COPPER OPERATIONS Ownership Mining Contained Copper Tonnes Grade Contained Copper Tonnes Grade
(See page 19 in R&R Report for details) % Method (kt) (Mt) (%TCu) (kt) (Mt) (%TCu)
Collahuasi Oxide and Mixed 44.0 OP 453 65.0 0.70 292 51.3 0.57
Sulphide (direct feed) 8,907 946.2 0.94 26,866 2,962.4 0.91
Low Grade Sulphide (in situ) 5,151 1,170.6 0.44 6,411 1,430.8 0.45
El Soldado Sulphide 50.1 OP 777 136.5 0.57 65 14.6 0.44
Los Bronces Sulphide – Flotation 50.1 OP 13,299 3,043.2 0.44 5,927 1,311.2 0.45
Sulphide – Dump Leach – – – 14 4.7 0.29
PLATINUM OPERATIONS
(4)
Ownership Mining Contained Metal Tonnes Grade Contained Metal Tonnes Grade
(See page 22 in R&R Report for details) % Method (4E Moz) (Mt) (4E g/t) (4E Moz) (Mt) (4E g/t)
Merensky Reef 56.2 UG 96.6 563.3 5.34 95.3 610.4 4.86
UG2 Reef 54.1 UG 202.7 1,095.0 5.76 103.3 529.2 6.07
Platreef 78.0 OP 96.2 1,324.9 2.26 71.6 1,140.0 1.95
Main Sulphide Zone 78.0 UG 17.5 130.5 4.18 6.3 46.0 4.25
KUMBA IRON ORE OPERATIONS Ownership Mining Tonnes Grade Tonnes Grade
(See page 29 in R&R Report for details) % Method (Mt) (%Fe) (Mt) (%Fe)
Kolomela Hematite 53.2 OP 93.0 62.9 79.6 62.7
Sishen Hematite 53.2 OP 431.3 52.4 114.4 50.9
IRON ORE BRAZIL OPERATIONS Ownership Mining Tonnes(5) Grade(5) Tonnes(5) Grade(5)
(See page 30 in R&R Report for details) % Method (Mt) (%Fe) (Mt) (%Fe)
Serra do Sapo Friable Itabirite and Hematite 100 OP 250.5 32.0 100.1 35.8
Itabirite 1,143.2 30.9 614.1 31.1
SAMANCOR MANGANESE OPERATIONS Ownership Mining Tonnes Grade Tonnes Grade
(See page 31 in R&R Report for details) % Method (Mt) (%Mn) (Mt) (%Mn)
GEMCO(6)(7) ROM + Sand Tailings 40.0 OP 131.7 42.6 34.7 39.9
Mamatwan(6) 29.6 OP 87.5 34.9 0.5 37.2
Wessels(6) 29.6 UG 144.1 42.6 3.1 45.7
Operations = Mines in steady-state or projects in ramp-up phase. TMR = Tailings Mineral Resource. ORT = Old Recovery Tailings.
Mining method: OP = Open Pit, UG = Underground, MM = Marine Mining.
Mct = Million carats. Mt = Million tonnes. kct = thousand carats. kt = thousand tonnes. k (m²) = thousand square metres.
Diamond Grade is quoted as carats per hundred metric tonnes (cpht) or as carats per square metre (cpm²)
Estimates of 0.0 represent numbers less than 0.05.
TCu = Total Copper. 4E is the sum of Platinum, Palladium, Rhodium and Gold.
Moz = Million troy ounces. g/t = grams per tonne.
ROM = Run of Mine.

Estimated Mineral Resources continued Measured + Indicated Total Inferred(2)

COAL OPERATIONS – Australia Ownership Mining MTIS(8) Coal Quality MTIS(8) Coal Quality
(See page 34 in R&R Report for details) % Method (Mt) (kcal/kg) (Mt) (kcal/kg)
Capcoal (OC)* 78.6 OC 166.3 6,920 197.3 6,840
Capcoal (UG)* 70.0 UG 90.4 6,730 6.3 6,470
Dawson 51.0 OC 663.3 6,700 351.2 6,680
Grosvenor 100 UG 214.5 6,370 44.5 6,360
Moranbah North 88.0 UG 82.9 6,630 4.4 6,420
COAL OPERATIONS – Canada Ownership Mining MTIS (8)
Coal Quality MTIS (8)
Coal Quality
(See page 34 in R&R Report for details) % Method (Mt) (kcal/kg) (Mt) (kcal/kg)
Trend 100 OC 26.5 6,980 2.6 6,370
Roman Mountain 100 OC 4.3 7,910 2.2 7,950
COAL OPERATIONS – Colombia Ownership Mining MTIS(8) Coal Quality MTIS(8) Coal Quality
(See pages 34 in R&R Report for details) % Method (Mt) (kcal/kg) (Mt) (kcal/kg)
Cerrejón 33.3 OC 3,681.4 6,570 722.6 6,410
COAL OPERATIONS – South Africa Ownership Mining MTIS(8) Coal Quality MTIS(8) Coal Quality
(See pages 35 & 37 in R&R Report for details) % Method (Mt) (kcal/kg) (Mt) (kcal/kg)
Goedehoop 100 UG 209.9 5,360 6.0 4,750
Greenside 100 UG 23.8 5,720 0.2 5,950
Greenside – MRD n/a 9.7 3,750 – –
Isibonelo 100 UG 23.6 5,250 – –
Kleinkopje 100 OC – – 3.7 6,070
Kriel 73.0 UG&OC 134.5 4,980 – –
Landau 100 OC 45.7 4,990 11.2 5,870
Landau – MRD n/a 22.4 2,580 – –
Mafube 50.0 OC 74.8 5,090 – –
New Denmark 100 UG 80.5 5,670 – –
Zibulo 73.0 UG&OC 326.7 4,920 248.9 4,760
NICKEL OPERATIONS Ownership Mining Contained Nickel Tonnes Grade Contained Nickel Tonnes Grade
(See page 39 in R&R Report for details) % Method (kt) (Mt) (%Ni) (kt) (Mt) (%Ni)
Barro Alto Saprolite 100 OP 192 16.1 1.19 295 22.5 1.31
Ferruginous Laterite 49 4.1 1.21 64 5.2 1.21
Niquelândia Saprolite 100 OP 36 2.9 1.25 – – –
Operations = Mines in steady-state or projects in ramp-up phase. MRD = Mineral Residue Deposit.
Mining method: OP = Open Pit, UG = Underground, OC = Open Cast/Cut.
* Capcoal comprises opencast operations at Lake Lindsay and Oak Park, with an underground longwall operation at Grasstree.
(1)
Estimated Mineral Resources are presented on an exclusive basis, i.e. Mineral Resources are reported as additional to Ore Reserves unless otherwise stated.
Please refer to the detailed Mineral Resource estimates tables in the AA plc R&R Report for the detailed Measured, Indicated and Inferred Resource estimates.
The Mineral Resource estimates are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves (The JORC Code, 2012) as a minimum standard. The Mineral Resource estimates for operations in South Africa are reported in accordance with The
South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (The SAMREC Code, 2016 Edition). The figures reported
represent 100% of the Mineral Resources. Anglo American plc ownership is stated separately. Rounding of figures may cause computational discrepancies.
(2)
Total Inferred is the sum of ‘Inferred (in LOM Plan)’, the Inferred Resources within the scheduled Life of Mine Plan (LOM Plan) and ‘Inferred (ex. LOM Plan)’, the
portion of Inferred Resources with reasonable prospects for eventual economic extraction not considered in the Life of Mine Plan (LOM Plan) as relevant.
Due to the uncertainty that may be attached to some Inferred Resources, it cannot be assumed that all or part of an Inferred Resource will necessarily be
upgraded to an Indicated or Measured Resource after continued exploration. Ore Reserves and Mineral Resources
(3)
DBCi = De Beers Canada, DBCM = De Beers Consolidated Mines, Debswana = Debswana Diamond Company, Namdeb = Namdeb Holdings.
Estimated Diamond Resources are presented on an exclusive basis, i.e. Diamond Resources are quoted as additional to Diamond Reserves.
Reported Diamond Resources are based on a Bottom Cut-off (BCO) which refers to the bottom screen size aperture and varies between 1.00mm and 3.00mm
(nominal square mesh). Specific BCO’s applied to derive estimates are included in the detailed Diamond Resource tables in the AA plc R&R Report.
(4)
Details of the individual Anglo American Platinum Limited managed and Joint Venture managed operations appear in the AA plc R&R Report.
Ownership percentages for reef totals are weighted by Contained Metal (4E Moz).
Merensky Reef, UG2 Reef and Main Sulphide Zone Mineral Resources are estimated over a ‘Resource Cut’ which takes cognisance of the mining method,
potential economic viability and geotechnical aspects in the hangingwall or footwall of the reef.
(5)
Iron Ore Brazil Mineral Resource tonnes and grades are reported on a dry basis.
(6)
Manganese Mineral Resources are quoted as inclusive of those used to calculate Ore Reserves and must not be added to the Ore Reserves.
(7)
GEMCO Manganese grades are reported as per washed ore samples and should be read together with their respective yields, see page 31 in the AA plc
R&R Report.
(8)
Coal Resources are quoted on a Mineable Tonnes In Situ (MTIS) basis in million tonnes, which are in addition to those Coal Resources that have been modified
to produce the reported Coal Reserves. Coal Resources are reported on an in situ moisture basis. The coal quality for Coal Resources is quoted on an in situ heat
content as kilocalories per kilogram (kcal/kg), representing Calorific Value (CV) on a Gross As Received (GAR) basis. CV is rounded to the nearest 10 kcal/kg.

OTHER INFORMATION
GLOSSARY OF TERMS
Ore Reserves An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which
An ‘Ore Reserve’ is the economically mineable part of a Measured and/or quantity and grade (or quality) are estimated on the basis of limited geological
Indicated Mineral Resource. It includes diluting materials and allowances evidence and sampling. Geological evidence is sufficient to imply but not
for losses, which may occur when the material is mined or extracted and is verify geological and grade (or quality) continuity. It is based on exploration,
defined by studies at Pre-Feasibility or Feasibility level as appropriate that sampling and testing information gathered through appropriate techniques
include application of Modifying Factors. Such studies demonstrate that, from locations such as outcrops, trenches, pits, workings and drill holes.
at the time of reporting, extraction could reasonably be justified. ‘Modifying An Inferred Mineral Resource has a lower level of confidence than that
Factors’ are (realistically assumed) considerations used to convert Mineral applying to an Indicated Mineral Resource and must not be converted to
Resources to Ore Reserves. These include, but are not restricted to, mining, an Ore Reserve. It is reasonably expected that the majority of Inferred
processing, metallurgical, infrastructure, economic, marketing, legal, Mineral Resources could be upgraded to Indicated Mineral Resources with
environmental, social and governmental factors. Ore Reserves are sub- continued exploration.
divided in order of increasing confidence into Probable Ore Reserves and
Proved Ore Reserves. Life of Mine Plan (LOM Plan)
A ‘Proved Ore Reserve’ is the economically mineable part of a Measured A design and costing study of an existing operation in which appropriate
Mineral Resource. A Proved Ore Reserve implies a high degree of confidence assessments have been made of realistically assumed geological, mining,
in the Modifying Factors. processing, metallurgical, infrastructure, economic, marketing, legal,
environmental, social, governmental, engineering, operational and all other
A ‘Probable Ore Reserve’ is the economically mineable part of an Indicated, Modifying Factors, which are considered in sufficient detail to demonstrate
and in some circumstances, a Measured Mineral Resource. The confidence in at the time of reporting that extraction is reasonably justified.
the Modifying Factors applying to a Probable Ore Reserve is lower than that
applying to a Proved Ore Reserve. A Probable Ore Reserve has a lower level Reserve Life
of confidence than a Proved Ore Reserve but is of sufficient quality to serve The scheduled extraction period in years for the total Ore Reserves in the
as the basis for a decision on the development of the deposit. approved LOM Plan.
Mineral Resources Inferred (in LOM Plan)

A ‘Mineral Resource’ is a concentration or occurrence of solid material of Inferred Resources within the scheduled LOM Plan.
economic interest in or on the Earth’s crust in such form, grade (or quality),
and quantity that there are reasonable prospects for eventual economic Inferred (ex. LOM Plan)
extraction. The location, quantity, grade (or quality), continuity and other The portion of Inferred Resources with reasonable prospects for eventual
geological characteristics of a Mineral Resource are known, estimated or economic extraction not considered in the LOM Plan.
interpreted from specific geological evidence and knowledge, including
Fatal-injury frequency rate (FIFR)(1)
sampling. Mineral Resources are sub-divided, in order of increasing
FIFR is the number of employee or contractor fatal injuries due to all causes
geological confidence, into Inferred, Indicated and Measured categories.
per 200,000 hours worked.
A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape, and physical characteristics are Lost time injury frequency rate (LTIFR)(1)
estimated with confidence sufficient to allow the application of Modifying LTIFR is the number of lost time injuries (LTIs) for both employees and
Factors to support detailed mine planning and final evaluation of the contractors per 200,000 hours worked. An LTI is a work related injury
economic viability of the deposit. Geological evidence is derived from resulting in the person being unable to attend work or perform the routine
detailed and reliable exploration, sampling and testing gathered through functions of his/her job, on the next calendar day after the day of the injury,
appropriate techniques from locations such as outcrops, trenches, pits, whether a scheduled workday or not. Restricted work cases are therefore
workings and drill holes, and is sufficient to confirm geological and grade counted as LTIs.
(or quality) continuity between points of observation where data and samples
are gathered. Total recordable case frequency rate (TRCFR)(1)
TRCFR is the number of fatal injuries, lost time injuries and medical treatment
A Measured Mineral Resource has a higher level of confidence than that cases for both employees and contractors per 200,000 hours.
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proved Ore Reserve or under certain New cases of occupational disease (NCOD)(1)
circumstances to a Probable Ore Reserve. NCOD is the sum of occupational diseases due to asbestosis, noise-induced
An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which hearing loss, silicosis, coal-workers’ pneumoconiosis, chronic obstructive
quantity, grade (or quality), densities, shape and physical characteristics are airways disease, occupational tuberculosis, occupational asthma, hand/arm
estimated with sufficient confidence to allow the application of Modifying vibration syndrome, musculoskeletal disorders, dermatitis, occupational
Factors in sufficient detail to support mine planning and evaluation of the cancers and other occupational diseases.
economic viability of the deposit. Geological evidence is derived from
Total energy consumed(1)
adequately detailed and reliable exploration, sampling and testing gathered
Total amount of energy consumed is the sum of total energy from electricity
through appropriate techniques from locations such as outcrops, trenches,
purchased, total energy from fossil fuels and total energy from renewable
pits, workings and drill holes, and is sufficient to assume geological and grade
fuels and is measured in million gigajoules (GJ).
(or quality) continuity between points of observation where data and samples
are gathered. Total water withdrawals(1)
An Indicated Mineral Resource has a lower level of confidence than that Total water withdrawals by source, reported in line with International Council
applying to a Measured Mineral Resource and may only be converted to on Metals and Mining (ICMM) guidance, includes: surface water;
a Probable Ore Reserve. groundwater; seawater; third-party potable water; and third-party non-
potable water, and is measured in million m3.

OTHER INFORMATION GLOSSARY OF TERMS
Greenhouse gases (GHGs)(1) Jobs created/sustained through enterprise development

The Intergovernmental Panel on Climate Change 2006 report (as updated in initiatives in Chile(1)
2011) factors are applied as defaults for all carbon dioxide-equivalent (CO 2 e) In Chile, Anglo American supports jobs through training and mentoring
and energy calculations. Where emission factors are available for specific programmes. On an annual basis, we report the number of entrepreneurs
countries or sub-regions from government and regulatory authorities, these who have been provided support through our local partner, TechnoServe.
are applied. Australian operations apply conversion factors required by the The associated programmes are engaged in ongoing monitoring and data
government for regulatory reporting and operations in Brazil apply local is reported at the end of the reporting period.
factors for biomass and biofuel. Factors for CO 2 e from electricity are based
on local grid factors. Businesses supported through enterprise development
initiatives in South Africa(1)
Based on a self-assessment, Anglo American believes it reports in
Anglo American supports a range of entrepreneurs and small and medium
accordance with the WRI/WBCSD GHG Protocol, as issued prior to the 2015
enterprises in South Africa through the issuance of micro-finance loans.
revision on Scope 2 emissions reporting. In line with the GHG Protocol’s
Businesses supported are enterprises for which funding has been approved
‘management control’ boundary, 100% of the direct and indirect emissions
and made available by the Zimele investment committee in the reporting year.
for managed operations are accounted for while zero emissions for joint
ventures and other investments are included in the reporting scope. Local procurement measurement(1)
Launched in 2010, our Local Procurement Policy, provides a framework for
Level 3, 4 and 5 environmental incidents(1) supporting development outcomes through targeted procurement initiatives.
Environmental incidents are unplanned or unwanted events resulting from Local procurement strategies articulate the value to Anglo American and
our operations that adversely impact the environment or contravene local local communities.
regulations/permit conditions. They are classified from minor (Level 1) to The measurement of local procurement varies between operations, and is
significant (Level 5) depending on the duration and extent of impact, as well informed by a combination of development outcomes and legal requirements.
as the sensitivity and/or biodiversity value of the receiving environment. Level Local procurement occurs on multiple levels, and often as a combination of
3-5 incidents are those which we consider to have prolonged impacts on the factors, ranging from procurement from host-, indigenous- and previously
local environments, lasting in excess of one month and affecting areas disadvantaged-communities.
greater than several hundred metres on site, or extending beyond the
boundaries of our immediate operations. ••Host communities: includes suppliers who have their main place of
business in the direct vicinity of the operation.
Total amount spent on corporate social investment (CSI)(1) ••Indigenous communities: includes First Nation-owned companies,
Categories for corporate social investment expenditure include charitable (De Beers Canada), Aboriginal owned supplier businesses (Australia)
donations, community investment and commercial initiatives. CSI is reported who meet commercial terms, as well as providing local employment and
in US dollars and converted from currency of the operations at the average training opportunities.
foreign exchange rate applied by Anglo American for financial reporting purposes.
••Previously disadvantaged and marginalised groups: includes targeted
Charitable donations include cash donations, contributions in kind, employees’ preferential procurement expenditure from identified beneficiary groups
working hours spent on charity projects during work hours, and the cost of e.g. Black Economic Empowerment (BEE) owned businesses (South Africa).
initiatives designed to inform communities about community-benefit
initiatives (e.g. the production of reports that are issued to communities for In most instances, our local procurement initiatives also take into account
the purpose of reporting progress). Not included is expenditure that is communities that may be affected by our operations. Through our Socio-
necessary for the development of an operation (e.g. resettlement of families) Economic Assessment Toolbox (SEAT) process, we identify communities
or receiving a licence. Training expenditure for individuals who will be located in our ‘Zone of influence’ – this may include, but is not limited to,
employed by the company following completion of training is not included. instances where there is potential for social, physical or environmental impact
e.g. power transmission corridors, pipelines, access roads, etc.
Community investment includes the funding of community partnerships
which address social issues, the costs of providing public facilities to (1)
Data relates to subsidiaries and joint operations over which Anglo American has management
community members who are not employees or dependants, the marginal control, with the exception of De Beers, where 100% of De Beers’ joint venture operations in
value of land or other assets transferred to community ownership, and income Namibia and Botswana are also accounted for. See page 75 of the Anglo American plc
creation schemes or mentoring/volunteering initiatives that do not have a Sustainability Report 2017 for the full list of entities within the reporting scope.
principally commercial justification.

Commercial initiatives include enterprise development and other community
initiatives/partnerships that also directly support the success of the Company
(such as supplier development). There must, however be a clear and primary
element of public benefit.
We prohibit the making of donations for political purposes to any politician,
political party or related organisation, an official of a political party or
candidate for political office in any circumstances either directly or through
third parties.
Other information

OTHER INFORMATION
ALTERNATIVE PERFORMANCE MEASURES
Introduction Their use is driven by characteristics particularly visible in the mining sector:
When assessing and discussing the Group’s reported financial performance, 1. Earnings volatility: The Group mines and markets commodities and
financial position and cash flows, management makes reference to precious metals and minerals. The sector is characterised by significant
Alternative Performance Measures (APMs) of historical or future financial volatility in earnings driven by movements in macroeconomic factors,
performance, financial position or cash flows that are not defined or specified primarily price and foreign exchange. This volatility is outside the control of
under International Financial Reporting Standards (IFRS). management and can mask underlying changes in performance. As such,
The APMs used by the Group fall into two categories: when comparing year-on-year performance, management excludes
certain items (such as those classed as ‘special items’) to aid comparability
••Financial APMs: These financial measures are usually derived from the
and then quantifies and isolates uncontrollable factors in order to improve
financial statements, prepared in accordance with IFRS. Certain financial
understanding of the controllable portion of variances.
measures cannot be directly derived from the financial statements as they
contain additional information, such as financial information from earlier 2. Nature of investment: Investments in the sector typically occur over
periods or profit estimates or projections. The accounting policies applied several years and are large, requiring significant funding before generating
when calculating APMs are, where relevant and unless otherwise stated, cash. These investments are often made with partners and the nature of
the same as those disclosed in the Group’s Consolidated financial the Group’s ownership interest affects how the financial results of these
statements for the year ended 31 December 2017. operations are reflected in the Group’s results e.g. whether full
consolidation (subsidiaries), consolidation of the Group’s attributable
••Non-financial APMs: These measures incorporate certain non-financial
assets and liabilities (joint operations) or equity accounted (associates and
information that management believes is useful when assessing the
joint ventures). Attributable metrics are therefore presented to help
performance of the Group.
demonstrate the financial performance and returns available to the Group,
APMs are not uniformly defined by all companies, including those in the for investment and financing activities, excluding the effect of different
Group’s industry. Accordingly, the APMs used by the Group may not be accounting treatments for different ownership interests.
comparable with similarly titled measures and disclosures made by other
3. Portfolio complexity: The Group operates in a number of different, but
companies.
complementary commodities, precious metals and minerals. The cost,
APMs should be considered in addition to, and not as a substitute for or as value of and return from each saleable unit (e.g. tonne, pound, carat,
superior to, measures of financial performance, financial position or cash ounce) can differ materially between each business. This makes
flows reported in accordance with IFRS. understanding both the overall portfolio performance, and the relative
performance of its constituent parts on a like-for-like basis, more
Purpose challenging. The Group therefore uses composite APMs to provide
The Group uses APMs to improve the comparability of information between
a consistent metric to assess performance at the portfolio level.
reporting periods and business units, either by adjusting for uncontrollable
factors or special items which impact upon IFRS measures or, by aggregating Consequently, APMs are used by the Board and management for planning
measures, to aid the user of the Annual Report in understanding the activity and reporting. A subset is also used by management in setting director and
taking place across the Group’s portfolio. management remuneration. The measures are also used in discussions with
the investment analyst community and credit rating agencies.
Financial APMs
Closest equivalent
Group APM IFRS measure Adjustments to reconcile to primary statements Rationale for adjustments
Income statement
Group revenue Revenue ••Revenue from associates and joint ventures ••Exclude the effect of different basis of consolidation to aid
comparability
Underlying Profit/(loss) before ••Operating and non-operating special items ••Exclude the impact of certain items due to their size and nature
EBIT net finance income/ and remeasurements to aid comparability
(costs) and tax ••Underlying EBIT from associates and joint ••Exclude the effect of different basis of consolidation to aid
ventures comparability
Underlying Profit/(loss) before ••Operating and non-operating special items ••Exclude the impact of certain items due to their size and nature
EBITDA net finance income/ and remeasurements to aid comparability
(costs) and tax ••Depreciation and amortisation ••Exclude the effect of different basis of consolidation to aid
••Underlying EBITDA from associates and joint comparability
ventures
Underlying Profit/(loss) for the ••Special items and remeasurements ••Exclude the impact of certain items due to their size and nature
earnings financial year to aid comparability
attributable to equity
shareholders of the
Company
Underlying Income tax expense ••Tax related to special items and ••Exclude the impact of certain items due to their size and nature
effective tax remeasurements to aid comparability
rate ••The Group’s share of associates’ and joint ••Exclude the effect of different basis of consolidation to
ventures’ profit before tax, before special aid comparability
items and remeasurements, and tax expense,
before special items and remeasurements
Underlying Earnings per share ••Special items and remeasurements ••Exclude the impact of certain items due to their size and nature
earnings to aid comparability
per share
Balance sheet
Net debt Borrowings less cash ••Debit valuation adjustment ••Exclude the impact of accounting adjustments from the net
and related hedges debt obligation of the Group
Attributable No direct equivalent ••Non-controlling interests’ share of capital ••Exclude the effect of different basis of consolidation to
ROCE employed and underlying EBIT aid comparability
••Average of opening and closing attributable
capital employed

OTHER INFORMATION ALTERNATIVE PERFORMANCE MEASURES
Closest equivalent
Group APM IFRS measure Adjustments to reconcile to primary statements Rationale for adjustments
Cash flow
Capital Expenditure on ••Cash flows from derivatives related to capital ••To reflect the net attributable cost of capital expenditure taking
expenditure property, plant and expenditure into account economic hedges
(capex) equipment ••Proceeds from disposal of property, plant
and equipment
••Direct funding for capital expenditure from
non-controlling interests
Attributable Cash flows from ••Capital expenditure ••To measure the amount of cash available to finance returns to
free cash flow operations ••Cash tax paid shareholders or growth after servicing debt, providing a return
••Dividends from associates, joint ventures to minority shareholders and meeting existing capex
and financial asset investments commitments
••Net interest paid
••Dividends to non-controlling interests
Group revenue Underlying effective tax rate

Group revenue includes the Group’s attributable share of associates’ and The underlying effective tax rate equates to the income tax expense,
joint ventures’ revenue. before special items and remeasurements (1) and including the Group’s
A reconciliation to ‘Revenue’, the closest equivalent IFRS measure to Group share of associates’ and joint ventures’ tax before special items and
revenue, is provided within note 2 to the Consolidated financial statements. remeasurements,(1) divided by profit before tax before special items and
remeasurements (1) and including the Group’s share of associates’ and joint
Underlying EBIT ventures’ profit before tax before special items and remeasurements. (1)
Underlying EBIT is ‘Operating profit/(loss)’ presented before special items
and remeasurements (1) and includes the Group’s attributable share of A reconciliation to ‘Income tax expense’, the closest equivalent IFRS measure
associates’ and joint ventures’ underlying EBIT. Underlying EBIT of to underlying effective tax rate, is provided within note 5 to the Consolidated
associates and joint ventures is the Group’s attributable share of associates’ financial statements.
and joint ventures’ revenue less operating costs before special items and Underlying earnings per share
remeasurements (1) of associates and joint ventures. Basic and diluted underlying earnings per share are calculated as underlying
earnings divided by the basic or diluted shares in issue. The calculation of
A reconciliation to ‘Profit/(loss) before net finance income/(costs) and tax’,
underlying earnings per share is disclosed within note 3 to the Consolidated
the closest equivalent IFRS measure to underlying EBIT, is provided within
financial statements.
note 2 to the Consolidated financial statements.
Net debt
Underlying EBITDA
Net debt is calculated as total borrowings less cash and cash equivalents
Underlying EBITDA is underlying EBIT before depreciation and amortisation
(including derivatives which provide an economic hedge of net debt, see
and includes the Group’s attributable share of associates’ and joint ventures’
note 22, before taking into account the effect of debit valuation adjustments
underlying EBIT before depreciation and amortisation.
explained in note 20). A reconciliation to the Consolidated balance sheet is
A reconciliation to ‘Profit/(loss) before net finance income/(costs) and tax’, provided within note 20 to the Consolidated financial statements.
the closest equivalent IFRS measure to underlying EBITDA, is provided
Capital expenditure (capex)
within note 2 to the Consolidated financial statements.
Capital expenditure is defined as cash expenditure on property, plant and
Underlying earnings equipment, including related derivatives, and is presented net of proceeds from
Underlying earnings is ‘Profit/(loss) for the financial year attributable to equity disposal of property, plant and equipment and includes direct funding for capital
shareholders of the Company’ before special items and remeasurements (1) expenditure from non-controlling interests in order to match more closely the
and is therefore presented after net finance costs, income tax expense and way in which it is managed. A reconciliation to ‘Expenditure on property, plant
non-controlling interests. and equipment’, the closest equivalent IFRS measure to capital expenditure,
A reconciliation to ‘Profit/(loss) for the financial year attributable to equity is provided within note 12 to the Consolidated financial statements.
shareholders of the Company’, the closest equivalent IFRS measure to Operating cash flows generated by operations that have not yet reached
underlying earnings, is provided within note 2 to the Consolidated financial commercial production are also included in capital expenditure. However,
statements. capital expenditure is also periodically shown on an underlying basis i.e.
before inclusion of capitalised operating cash flows. Where this occurs, the
measure is footnoted as such.
Other information
(1)
Special items and remeasurements are defined in note 8 to the Consolidated financial statements.

Attributable return on capital employed (ROCE) Attributable ROCE is also used as an incentive measure in executives’
ROCE is a ratio that measures the efficiency and profitability of a company’s remuneration and is predicated upon the achievement of ROCE targets in the
capital investments. Attributable ROCE displays how effectively assets are final year of a three-year performance period. It is one of the performance
generating profit on invested capital for the equity shareholders of the measures used in LTIP 16 and LTIP 17 and is proposed to be used in LTIP 18.
Company. It is calculated as attributable underlying EBIT divided by average A reconciliation to ‘Profit/(loss) before net finance income/(costs) and tax’,
attributable capital employed. the closest equivalent IFRS measure to underlying EBIT, is provided within
Attributable underlying EBIT excludes the underlying EBIT of non-controlling note 2 to the Consolidated financial statements. A reconciliation to ‘Net
interests. assets’, the closest equivalent IFRS measure to capital employed, is provided
within note 9 to the Consolidated financial statements. The table below
Capital employed is defined as net assets excluding net debt and financial asset
reconciles underlying EBIT and capital employed to attributable underlying
investments. Attributable capital employed excludes capital employed of
EBIT and average attributable capital employed by segment.
non-controlling interests. Average attributable capital employed is calculated
by adding the opening and closing attributable capital employed for the
relevant period and dividing by two.
2017 2016
Attributable Attributable
ROCE % ROCE %
De Beers 9% 11%
Copper 16% 6%
Platinum 10% 4%
Iron Ore and Manganese 21% 12%
Coal 67% 29%
Nickel – (1)%
Corporate and other n/a n/a
19% 11%
2017
Less:
Less: Non-
Non- controlling
controlling interests'
interests' Opening share of Closing Average
share of Attributable attributable Closing closing attributable attributable
Underlying underlying underlying capital capital capital capital capital
US$ million EBIT EBIT EBIT employed employed employed employed employed
De Beers 873 (140) 733 7,481 9,294 (1,324) 7,970 7,725
Copper 923 (236) 687 4,189 5,899 (1,740) 4,159 4,174
Platinum 512 (121) 391 3,796 4,510 (669) 3,841 3,818
Iron Ore and Manganese 1,978 (573) 1,405 6,435 8,008 (1,258) 6,750 6,593
Coal 2,274 (37) 2,237 3,420 3,384 (97) 3,287 3,354
Nickel – – – 2,003 1,959 – 1,959 1,981
Corporate and other (313) – (313) (335) (241) – (241) (288)
6,247 (1,107) 5,140 26,989 32,813 (5,088) 27,725 27,357
2016
Less:
Less: Non-
Non- controlling
controlling interests'
interests' Opening share of Closing Average
share of Attributable attributable closing attributable attributable
Underlying underlying underlying capital Closing capital capital capital capital
US$ million EBIT EBIT EBIT employed employed employed employed employed
De Beers 1,019 (186) 833 7,402 8,725 (1,244) 7,481 7,441
Copper 261 (15) 246 4,176 6,073 (1,884) 4,189 4,182
Platinum 185 (46) 139 3,726 4,457 (661) 3,796 3,761
Iron Ore and Manganese 1,275 (522) 753 5,756 7,472 (1,037) 6,435 6,096
Coal 1,112 (25) 1,087 3,978 3,509 (89) 3,420 3,699
Nickel (15) – (15) 1,968 2,003 – 2,003 1,986
Corporate and other (71) – (71) 763 (335) – (335) 214
3,766 (794) 2,972 27,769 31,904 (4,915) 26,989 27,379
Attributable free cash flow

Attributable free cash flow is calculated as ‘Cash flows from operations’ plus
dividends received from associates, joint ventures and financial asset
investments, less capital expenditure, less tax cash payments excluding tax
payments relating to disposals, less net interest paid including interest on
derivatives hedging net debt, less dividends paid to non-controlling interests.
A reconciliation of ‘Cash flows from operations’, the closest equivalent IFRS
measure, is provided on page 38 of the Group Financial Review.

Non-financial APMs
Some of our measures are not reconciled to IFRS either because they include non-financial information, because there is no meaningful IFRS comparison or
the purpose of the measure is not typically covered by IFRS.
Group APM Category Purpose

Copper equivalent production Portfolio complexity Communicate production/revenue generation movements in a single comparable measure
removing the impact of price
Unit cost Earnings volatility Express cost of producing one unit of saleable product
Copper equivalent unit cost Portfolio complexity Communicate the cost of production per unit in a single comparable measure for the portfolio
Productivity Portfolio complexity Highlight efficiency in generating revenue per employee
Volume and cash cost improvements Earnings volatility Quantify year-on-year EBITDA improvement removing the impact of major uncontrollable factors
Copper equivalent production Productivity

Copper equivalent production, expressed as copper equivalent tonnes, The Group’s productivity measure calculates the copper equivalent
shows changes in underlying production volume. It is calculated by production generated per employee. It is a measure that represents how well
expressing each commodity’s volume as revenue, subsequently converting headcount is driving revenue. It is calculated by dividing copper equivalent
the revenue into copper equivalent units by dividing by the copper price (per production by the average direct headcount from consolidated mining
tonne). Long-term forecast prices (and foreign exchange rates where operations in a given year.
appropriate) are used, in order that period-on-period comparisons exclude Volume and cash cost improvements
any impact for movements in price. The Group uses an underlying EBITDA waterfall to understand its year-on-
When calculating copper equivalent production, all volumes relating to year underlying EBITDA performance. The waterfall isolates the impact of
domestic sales are excluded, as are volumes from Samancor and sales from uncontrollable factors in order that the real year-on-year improvement in
non-mining activities. Volume from projects in pre-commercial production performance can be seen by the user.
are included. Three variables are normalised, in the results of subsidiaries and joint
Unit cost operations, for:
Unit cost is the direct cash cost including direct cash support costs incurred ••Price: The movement in price between comparative periods is removed by
in producing one unit of saleable production. multiplying current year sales volume by the movement in realised price for
For bulk products (coal, iron ore), unit costs shown are FOB i.e. cost on board each product group;
at port. For base metals (copper, nickel), they are shown at C1 i.e. after ••Foreign exchange: The year-on-year movement in exchange is removed
inclusion of by-product credits and logistics costs. For platinum and from the current year non-US dollar cost base i.e. costs are restated at prior
diamonds, unit costs include all direct expensed cash costs incurred year foreign exchange rates. The non-US dollar cash cost base excludes
i.e. excluding, amongst other things, market development activity, corporate costs which are price linked (e.g. purchase of concentrate from third-party
overhead etc. Platinum unit costs exclude by-product credits. Royalties are platinum providers, third-party diamond purchases); and
excluded from all unit cost calculations.
••Inflation: CPI is removed from cash costs, restating these costs at the
Copper equivalent unit cost pricing level of the base year.
Copper equivalent unit cost is the cost incurred to produce one tonne of
copper equivalent. Only the cost incurred in mined output from subsidiaries The remaining variances in the underlying EBITDA waterfall are in real
and joint operations is included, representing direct costs in the Consolidated US dollar terms for the base year i.e. for a waterfall comparing 2017 with
income statement controllable by the Group. Costs and volumes from 2016, the sales volume and cash cost variances exclude the impact of price,
associates and joint ventures are excluded, as are those from operations that foreign exchange and CPI and are hence in real 2016 terms. This allows the
are not yet in commercial production, that deliver domestic production, and user of the waterfall to understand the underlying real movement in sales
those associated with third-party volume purchases of diamonds and volumes and cash costs on a consistent basis.
platinum concentrate.
When calculating copper equivalent unit cost, unit costs for each commodity
are multiplied by relevant production, combined and then divided by the total
copper equivalent production, to get a copper equivalent unit cost i.e. the
cost of mining one tonne of copper equivalent. The metric is in US dollars
and, where appropriate, long-term foreign exchange rates are used to
convert from local currency to US dollars.
Other information

OTHER INFORMATION
PRODUCTION STATISTICS
The figures below include the entire output of consolidated entities and the Group’s attributable share of joint operations, associates and joint ventures where
applicable, except for De Beers’ joint operations which are quoted on a 100% basis.(1)
2017 2016
De Beers
Carats recovered (’000 carats) 100% basis (unless otherwise stated)
Orapa 10,185 7,931
Letlhakane 607 595
Damtshaa (2) 35 –
Jwaneng 11,857 11,975
Debswana 22,684 20,501
Namdeb 427 404
Debmarine Namibia 1,378 1,169
Namdeb Holdings 1,805 1,573
Kimberley(2) – 68
Venetia 4,602 3,517
Voorspoed 606 649
DBCM 5,208 4,234
Snap Lake (2) – 3
Victor 724 596
Gahcho Kué (51% basis) 3,033 432
De Beers Canada 3,757 1,031
Total carats recovered 33,454 27,339
Sales volumes
Total sales volume (100%) (Mct)(3) 35.1 32.0
Consolidated sales volume (Mct)(3) 33.1 30.0
Number of Sights (sales cycles) 10 10
Copper (tonnes) on a contained metal basis unless stated otherwise(4)

Collahuasi 100% basis (Anglo American share 44%)
Ore mined 64,733,500 67,602,600
Ore processed – Sulphide 49,886,800 49,406,800
Ore grade processed – Sulphide (% TCu)(5) 1.25 1.22
Production – Copper cathode 100 4,800
Production – Copper in concentrate 523,900 501,800
Total copper production for Collahuasi 524,000 506,600
Anglo American’s share of copper production for Collahuasi(6) 230,500 222,900
Anglo American Sur(7) 348,800 354,200
Los Bronces mine(7) 308,300 307,200
Ore mined 49,339,600 51,109,700
Marginal ore mined 37,498,400 34,189,300
Ore grade processed – Sulphide (% TCu) 0.71 0.67
Production – Copper cathode 38,300 36,000
El Soldado mine(7) 40,500 47,000
Ore mined 5,338,400 7,339,100
Ore grade processed – Sulphide (% TCu) 0.69 0.85
Chagres Smelter(7)
Ore smelted 133,800 133,800
Production 130,000 130,800
Total copper production(8) 579,300 577,100
Total payable copper production 558,300 557,100
Total sales volumes 579,700 577,800
Total payable sales volumes 558,700 557,900
Third party sales(9) 111,400 62,000

OTHER INFORMATION PRODUCTION STATISTICS
2017 2016
Platinum
Produced platinum (’000 troy oz) 2,397.4 2,381.9
Own-mined 1,376.2 1,730.0
Mogalakwena 463.8 411.9
Amandelbult (10) 438.0 458.6
Unki 74.6 74.5
Joint ventures(11) 245.3 252.8
Union and other 154.5 154.8
Rustenburg (12) – 377.4
Purchase of concentrate 1,021.2 651.9
Joint ventures (11) 245.3 252.8
Associates (13) 265.5 279.3
Third party purchase of concentrate (12) 510.4 119.8
Palladium
Produced palladium (’000 troy oz) 1,557.3 1,538.7
Own-mined 1,008.7 1,150.4
Mogalakwena 508.9 452.0
Amandelbult (10) 202.5 207.3
Unki 64.4 61.4
Union and other 71.4 72.5
Rustenburg (12) – 193.3
Purchase of concentrate 548.6 388.2
Associates (13) 127.9 141.7
Third party purchase of concentrate (12) 259.2 82.6
Refined production
Platinum (’000 troy oz) 2,511.9 2,334.7
Palladium (’000 troy oz) 1,668.5 1,464.2
Rhodium (’000 troy oz) 323.2 317.4
Gold (’000 troy oz) 115.3 108.2
Nickel (tonnes) 26,000 25,400
Copper (tonnes) 15,700 14,100
4E Head grade (g/tonne milled)(14) 3.46 3.16
Platinum sales volumes – own-mined and purchase of concentrate 2,504.6 2,415.7
Palladium sales volumes – own-mined and purchase of concentrate 1,571.7 1,532.1
Iron Ore and Manganese production by product (tonnes)

Kumba Iron Ore 44,982,500 41,475,900
Lump 29,811,300 26,801,500
Fines 15,171,200 14,674,400
Iron Ore and Manganese production by mine (tonnes)

Sishen 31,119,200 28,380,000
Kolomela 13,863,300 12,726,300
Thabazimbi – 369,600
Kumba sales volumes
Export iron ore 41,614,600 39,060,400
Domestic iron ore 3,277,100 3,423,300
Minas-Rio production
Pellet feed (wet basis) 16,787,200 16,140,900
Minas-Rio sales volumes
Export – pellet feed (wet basis) 16,508,000 16,210,500
Samancor
Manganese ore (15) 3,485,500 3,133,100
Manganese alloys (15)(16) 149,200 137,800
Samancor sales volumes
Manganese ore (17) 3,445,400 3,226,400
Manganese alloys 142,400 170,000
Coal production by product (tonnes)

Metallurgical Coal 21,275,000 30,386,700
Metallurgical – Export Coking 16,980,800 16,199,900
Metallurgical – Export PCI 2,680,500 4,675,800
Thermal – Export 1,613,700 3,957,500
Thermal – Domestic – 5,553,400
South Africa (18) 49,905,000 53,759,900
Thermal – Export (19) 18,592,500 19,072,400
Other information
Thermal – Domestic (Other)(20) 3,394,100 5,513,800

Thermal – Domestic (Eskom) 23,858,900 24,778,700
Thermal – Domestic (Isibonelo) 4,059,500 4,395,000
Cerrejón
Thermal – Export 10,641,600 10,667,900
Total coal production 81,821,600 94,814,400

2017 2016
Coal production by mine (tonnes)
Metallurgical Coal 21,275,000 30,386,700
Callide – 6,230,800
Capcoal (incl. Grasstree) 6,768,700 6,832,900
Dawson 3,782,200 4,608,700
Drayton – 1,167,500
Foxleigh – 1,439,400
Grosvenor 2,067,200 1,759,000
Jellinbah 3,255,600 3,282,300
Moranbah North 5,401,300 5,066,100
South Africa 49,905,000 53,759,900
Goedehoop 4,652,600 4,688,600
Greenside 3,830,400 3,945,300
Zibulo 6,234,800 6,007,600
Khwezela (21) 5,707,700 8,185,700
Mafube 1,561,100 1,759,000
New Vaal 15,109,000 15,894,800
New Denmark 3,361,000 2,547,400
Kriel 5,388,900 6,336,500
Isibonelo 4,059,500 4,395,000
Cerrejón 10,641,600 10,667,900
Carbones del Cerrejón 10,641,600 10,667,900
Total coal production 81,821,600 94,814,400
Coal sales volumes (tonnes)
Metallurgical Coal
Metallurgical – Export (22) 19,767,700 20,658,600
Thermal – Export 1,831,400 4,255,300
Thermal – Domestic – 5,375,400
South Africa
Thermal – Export 18,608,800 19,071,700
Thermal – Domestic (Other) 1,891,500 1,584,900
Thermal – Domestic (Eskom) 26,060,100 27,984,400
Thermal – Domestic (Isibonelo) 4,071,500 4,911,400
Third party sales 7,618,700 6,051,800
Cerrejón
Thermal – Export 10,553,700 10,810,200
Nickel (tonnes) unless stated otherwise (23)
Barro Alto
Ore mined 6,272,800 2,630,700
Ore processed 2,309,300 2,357,100
Ore grade processed – %Ni 1.71 1.76
Production 34,900 35,500
Codemin
Ore mined 7,500 6,800
Ore processed 587,000 589,600
Ore grade processed – %Ni 1.69 1.71
Production 8,900 9,000
Total Nickel segment nickel production 43,800 44,500
Sales volumes 43,000 44,900
Niobium and Phosphates(24)
Niobium (tonnes) unless otherwise stated
Ore mined – 2,229,100
Ore processed – 1,680,600
Ore grade processed – %Nb – 0.98
Production – 4,700
Sales volumes – 4,600
Phosphates (tonnes) unless otherwise stated(24)
Concentrate – 1,033,400
Concentrate grade – %P 2O5 – 36.9
Phosphoric acid – 233,600
Fertiliser – 864,300
High analysis fertiliser – 157,600
Low analysis fertiliser – 706,700
Dicalcium phosphate (DCP) – 113,900
Fertiliser sales volumes – 972,700
(1)
With the exception of Gahcho Kué, which is on an attributable 51% basis. (11)
The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of
(2)
Damtshaa (a satellite operation of Orapa) was placed on care and maintenance from January these operations, which is presented under ‘Own-mined’ production, and purchases the
2016, and restarted in December 2017. Snap Lake was placed on extended care and remaining 50% of production, which is presented under ‘Purchase of concentrate’.
maintenance from December 2015. Kimberley mines was sold in January 2016. (12)
Sale of Rustenburg completed on 1 November 2016, after which production from Rustenburg
(3)
Consolidated sales volumes exclude De Beers’ JV partners’ 50% proportionate share of sales is included within third party purchase of concentrate.
to entities outside De Beers from the Diamond Trading Company Botswana and the Namibia (13)
Associates are Platinum’s 49% interest in Bokoni and 33% interest in BRPM.
Diamond Trading Company, which are included in total sales volume (100% basis). Both (14)
4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
measures include pre-commercial production sales volumes from Gahcho Kué. Full year (15)
Saleable production.
consolidated sales volumes excluding pre-commercial production sales volumes from (16)
Production includes medium carbon ferro-manganese.
Gahcho Kué were 32.5 million carats (2016: 30.0 million carats). (17)
Comparatives have been restated.
(4)
Excludes Anglo American Platinum’s copper production. (18)
All Coal South Africa comparatives have been restated to reflect current presentation.
(5)
TCu = total copper. (19)
Thermal export – All product produced and sold into the export market.
(6)
Anglo American’s share of Collahuasi production is 44%. (20)
Thermal domestic – Other is product sold domestically excluding Eskom-tied and Isibonelo
(7)
Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at production. In 2017, ~70% of secondary production was sold into the export market.
100% as Anglo American consolidates Anglo American Sur. (21)
The merger of Kleinkopje and Landau.
(8)
Difference between total copper production and attributable copper production arises from (22)
Includes both hard coking coal and PCI sales volumes.
Anglo American’s 44% interest in Collahuasi. (23)
Excludes Anglo American Platinum’s nickel production.
(9)
Relates to sales of copper not produced by Anglo American operations. (24)
Niobium and Phosphates was sold on 30 September 2016.
(10)
Excludes platinum and palladium production now included in purchase of concentrate.

QUARTERLY PRODUCTION STATISTICS
Quarter ended % Change (Quarter ended)

31 December 30 September 30 June 31 March 31 December 31 December 2017 v 31 December 2017 v
2017 2017 2017 2017 2016 30 September 2017 31 December 2016
De Beers
Carats recovered (’000 carats)
100% basis (1)
Diamonds 8,134 9,178 8,742 7,400 7,752 (11)% 5%
Copper (tonnes) (2)(3)

148,600 147,300 140,800 142,600 146,600 1% 1%
Produced ounces platinum (’000 troy oz) 587.0 621.4 617.1 571.9 610.0 (6)% (4)%
Produced ounces palladium (’000 troy oz) 374.9 407.5 402.1 372.7 396.4 (8)% (5)%
Platinum refined production
Platinum (’000 troy oz) 722.2 684.1 528.7 576.9 631.6 6% 14%
Palladium (’000 troy oz) 491.4 450.6 373.1 353.4 397.4 9% 24%
Rhodium (’000 troy oz) 87.4 79.4 82.8 73.7 92.2 10% (5)%
Gold (’000 troy oz) 30.3 31.1 29.3 24.7 33.9 (3)% (11)%
Nickel refined (tonnes) 7,800 7,000 6,000 5,100 6,200 11% 26%
Copper refined (tonnes) 4,700 4,300 3,500 3,200 3,300 9% 42%
Iron Ore and Manganese (tonnes)

Iron ore – Kumba 11,642,600 11,485,700 11,381,600 10,472,600 11,927,900 1% (2)%
Iron ore – Minas-Rio 3,949,900 4,171,500 4,324,100 4,341,700 4,855,300 (5)% (19)%
Manganese ore (4) 979,600 839,500 843,300 823,100 804,200 17% 22%
Manganese alloys (4)(5) 41,100 37,300 39,300 31,500 37,100 10% 11%
Coal (tonnes)
Australia
Metallurgical – Export 4,923,900 5,531,500 3,963,500 5,242,400 5,359,700 (11)% (8)%
Thermal – Export 408,600 421,400 304,700 479,000 671,900 (3)% (39)%
Thermal – Domestic – – – – 661,800 – –
South Africa
Thermal export (6) 4,647,800 4,352,000 4,840,700 4,752,000 4,789,700 7% (3)%
Thermal domestic – Other(7) 817,600 801,300 823,300 951,800 1,453,900 2% (44)%
Thermal domestic – Eskom 5,419,500 6,420,600 6,311,800 5,707,200 6,427,400 (16)% (16)%
Thermal domestic – Isibonelo (8) 965,700 1,145,100 1,052,400 896,300 1,037,600 (16)% (7)%
Cerrejón
Thermal – Export 2,913,600 2,496,700 2,449,600 2,781,700 2,800,600 17% 4%
Nickel (tonnes)(9) 11,400 11,200 11,300 9,900 10,900 2% 5%

(1)
De Beers’ production is on a 100% basis, except for Gahcho Kué joint operation which is on an attributable 51% basis.
(2)
Excludes Anglo American Platinum’s copper production.
(3)
Copper segment attributable production.
(4)
Saleable production.
(5)
Production includes medium carbon ferro-manganese.
(6)
Thermal export – All products sold into the export market. Comparatives have been restated to align with current presentation.
(7)
Thermal domestic – Other is product sold domestically excluding Eskom-tied and Isibonelo production. Comparatives have been restated to align with current presentation. In 2017, ~70% of
secondary production was sold into the export market.
(8)
Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(9)
Excludes Anglo American Platinum’s nickel production.
Other information

OTHER INFORMATION
NON-FINANCIAL DATA
2017 2016 2015 2014 2013

Safety(1)
Work-related fatalities 9 11 6 6 15
Fatal-injury frequency rate (FIFR)(2) 0.007 0.008 0.004 0.003 0.008
Total recordable case frequency rate (TRCFR)(2) 0.63 0.71 0.93 0.80 1.08
Lost-time injury frequency rate (LTIFR)(2) 0.34 0.37 0.47 0.35 0.49
Occupational health(1)
New cases of occupational disease (NCOD)(2) 96 111 159 175 209
Environment(1)
Total CO 2 emissions (Mt CO 2 e) 18.0 17.9 18.3 17.3 17.1
Total energy consumed (million GJ)(2) 97 106 106 108 106
Total water withdrawals (million m3)(2) 306 296 339 276 276
Human Resources(1)(3)
Women in management (%)(4) 26 25 25 24 23
Historically Disadvantaged South Africans in management (%) 66 62 60 60 64
Resignations (%)(5) 2.3 2.2 1.9 2.0 2.0
Redundancies (%)(6) 0.7 7.1 3.5 0.9 4.1
Dismissals (%)(7) 1.4 1.8 1.4 1.0 1.5
Other reasons for leaving (%)(8) 4.0 3.5 4.2 1.9 2.7
Social(1)
CSI spend (total in US$ million)(9) 88 84 124 136 127
CSI spend (% of underlying EBIT)(9) 2 3 6 3 2
Businesses supported through enterprise development initiatives (10) 64,291 62,447 62,661 58,257 48,111
Jobs created/maintained through enterprise development programmes (10) 120,812 116,298 108,423 96,873 76,543
(1)
The data includes wholly owned subsidiaries and joint ventures over which Anglo American has management control, and does not include independently managed operations such as
Collahuasi, Carbones del Cerrejón and Samancor. Divested businesses are included up until the point of divestment.
(2)
See pages 192–193 for definitions.
(3)
Excludes Other Mining and Industrial.
(4)
Women in management is the number of female managers as a percentage of all managers in the workforce excluding contractors.
(5)
The number of people who resigned as a percentage of the total workforce excluding contractors.
(6)
The number of people who have been retrenched as a percentage of total workforce excluding contractors.
(7)
The number of people who have been dismissed or have resigned to avoid dismissal, as a percentage of total workforce excluding contractors.
(8)
The number of people who left for reasons other than those shown above, for example retirement, ill health and death, as a percentage of total workforce excluding contractors.
(9)
CSI spend is the sum of donations for charitable purposes and community investment (which includes cash and in-kind donations and staff time) as well as investments in commercial initiatives
with public benefit (such as enterprise development). Included within the CSI expenditure figure for 2017 is expenditure relating to Zimele of $2.7 million (2016: $2.3 million).
(10)
Figures are presented on a cumulative basis since 2008.

OTHER INFORMATION
DIRECTORS’ REPORT
This section includes certain disclosures which are required by law to be Significant shareholdings
included in the Directors’ Report. The Company has been notified of the following significant shareholdings:
In accordance with the Companies Act 2006 (Companies Act), the following Number Percentage
Company of shares of voting rights
items have been reported in other sections of the Annual Report and are
Volcan (Volcan Holdings PLC and
included in this Directors’ Report by reference: Volcan Holdings II PLC) 271,802,858 19.35
••details of the directors of the Company can be found on pages 65-67 Public Investment Corporation 186,786,134 13.29
••directors’ interests in shares at 31 December 2017 and any changes Deutsche Bank AG 111,730,756 7.95
thereafter, can be found on page 110 of the directors’ Remuneration Report BlackRock Inc 81,814,750 5.83
Silchester International Investors LLP 70,110,363 4.99
••events occurring after the end of the year are set out in note 29 to the Genesis Asset Managers LLP 55,426,734 3.95
financial statements on page 161 Tarl Investment Holdings (RF)
••the Strategic Report on pages 2-62 gives a fair review of the business and Proprietary Limited (1) 47,275,613 3.37
an indication of likely future developments and fulfils the requirements set Epoch Two Investment Holdings (RF)
out in section 414C of the Companies Act Proprietary Limited (1) 42,166,686 3.01
••details of the Group’s governance arrangements and its compliance with the

(1)
Epoch Two Investment Holdings Ltd (Epoch 2) and Tarl Investment Holdings
Limited (Tarl) are two of the independent companies that have purchased shares
UK Corporate Governance Code (the Code) can be found on pages 63-115 as part of Anglo American’s share buyback programme. Epoch 2 and Tarl have
••comprehensive details of the Group’s approach to financial risk waived their right to vote all the shares they hold, or will hold, in Anglo American plc.
management are given in note 23 to the financial statements on page 150

Disclosure table pursuant to Listing Rule 9.8.4C
••the Group’s disclosure of its greenhouse gas emissions can be found on
Listing Rule Information to be included Disclosure
page 27.
9.8.4(1) Interest capitalised by the Group See note 4, page 129
Going concern 9.8.4(2) Unaudited financial information None
(LR 9.2.18)
The financial position of the Group, its cash flows, liquidity position and
9.8.4(4) Long-term incentive scheme only None
borrowing facilities are set out in the Group financial review on pages 36-39.
involving a director (LR 9.4.3)
Further details of our policy on financial risk management are set out in
9.8.4(5) Directors’ waivers of emoluments None
note 23 to the financial statements on page 150. The Group’s net debt at
9.8.4(6) Directors’ waivers of future None
31 December 2017 was $4.5 billion (2016: $8.5 billion), representing a emoluments
gearing level of 13% (2016: 26%). Details of borrowings and facilities are set 9.8.4(7) Non pro rata allotments for cash Treasury shares have been
out in note 21 on page 146 and net debt is set out in note 20 on page 145. (issuer) issued pursuant to the exercise
of options awarded under
The directors have considered the Group’s cash flow forecasts for the period
shareholder approved schemes
to the end of March 2019. The Board is satisfied that the Group’s forecasts
9.8.4(8) Non pro rata allotments for cash None
and projections, taking account of reasonably possible changes in trading (major subsidiaries)
performance, show that the Group will be able to operate within the level of its 9.8.4(9) Listed company is a subsidiary of Not applicable
current facilities for the period assessed. For this reason the Group continues another company
to adopt the going concern basis in preparing its financial statements. 9.8.4(10) Contracts of significance involving None
a director
Dividends 9.8.4(11) Contracts of significance involving Not applicable
An interim dividend of 48 US cents per ordinary share was paid on a controlling shareholder
22 September 2017. The directors are recommending that a final dividend 9.8.4(12) Waivers of dividends See ‘Dividends’ paragraph on
of 54 US cents per ordinary share be paid on 11 May 2018 to ordinary this page
shareholders on the register at the close of business on 16 March 2018, 9.8.4(13) Waivers of future dividends See ‘Dividends’ paragraph on
subject to shareholder approval at the AGM to be held on 8 May 2018. This this page
would bring the total dividend in respect of 2017 to $1.02 per ordinary share. 9.8.4(14) Agreement with a controlling Not applicable
In accordance with the International Financial Reporting Standards (IFRS), shareholding LR 9.2.2AR(2)(a)
the final dividend will be accounted for in the financial statements for the year
ended 31 December 2018. Sustainable development
The Sustainability Report 2017 is published online on 5 March 2018.
In accordance with Article 4.1(a) of the Articles of Association (the Articles),
This report focuses on the safety, sustainable development, health and
a dividend of £2,500 was paid in respect of the 5% cumulative preference
environmental performance of the Group’s managed operations, its
shares.
performance with regard to the Company’s Code of Conduct, and the
The Anglo American Employee Benefit Trust (EBT) holds shares to facilitate operational dimensions of its social programmes.
the operation of certain of the Group’s share option and share incentive
schemes (share plans). The EBT has waived the right to receive dividends on Audit information
shares held on behalf of share plans participants employed by the Group in The directors confirm that, so far as they are aware, there is no relevant audit
countries other than the UK and South Africa. information of which the auditor is unaware, that all directors have taken all
reasonable steps to make themselves aware of any relevant audit information
Share capital and to establish that the auditor is aware of that information.
The Company’s issued share capital as at 31 December 2017, together with
details of share allotments and issue of treasury shares during the year, is set Employment and other policies
Other information
out in note 24 on page 153. The Group’s key operating businesses are empowered to manage within the
context of the different legislative and social demands of the diverse countries
in which those businesses operate, subject to the standards embodied in
Anglo American’s Code of Conduct. Within all the Group’s businesses, the
safe and effective performance of employees and the maintenance of
positive employee relations are of fundamental importance. Managers are
charged with ensuring that the following key principles are upheld:
••adherence to national legal standards on employment and workplace rights
at all times

OTHER INFORMATION DIRECTORS’ REPORT
••adherence to the International Labour Organisation’s core labour rights, Dividends and distributions
including: prohibition of child labour; prohibition of inhumane treatment of Subject to the provisions of the Companies Act, the Company may, by
employees and any form of forced labour, physical punishment or other ordinary resolution, from time to time declare final dividends not exceeding
abuse; recognition of the right of our employees to freedom of association the amount recommended by the Board. The Board may pay interim
and the promotion of workplace equality; and the elimination of all forms of dividends whenever the financial position of the Company, in the opinion of
unfair discrimination the Board, justifies such payment.
••continual promotion of safe and healthy working practices The Board may withhold payment of all, or any part of any dividends or other
monies payable in respect of the Company’s shares, from a person with a
••provision of opportunities for employees to enhance their work related skills
0.25% interest or more (as defined in the Articles) if such a person has been
and capabilities
served with a notice after failing to provide the Company with information
••adoption of fair and appropriate procedures for determining terms and concerning interests in those shares required to be provided under the
conditions of employment. Companies Act.
It is our policy that people with disabilities should have full and fair Rights and obligations attaching to shares
consideration for all vacancies. Employment of disabled people is considered The rights and obligations attaching to the shares are set out in the Articles.
on merit and with regard only to the ability of any applicant to carry out the The Articles may only be changed by a special resolution passed by the
role. We endeavour to retain the employment of, and arrange suitable shareholders.
retraining, for any employees in the workforce who become disabled during
Voting
their employment. Where possible we will adjust a person’s working
Subject to the Articles generally and to any special rights or restrictions as to
environment to enable them to stay in our employment.
voting attached by or in accordance with the Articles to any class of shares, on
Further, the Group is committed to treating employees at all levels with a show of hands every member who is present in person at a general meeting
respect and consideration, to investing in their development and to ensuring shall have one vote and, on a poll, every member who is present in person or
that their careers are not constrained by discrimination or arbitrary barriers. by proxy shall have one vote for every share of which he/she is the holder. It is,
The Code of Conduct is supplemented by four Anglo American ‘Way’ and has been for some years, the Company’s practice to hold a poll on every
documents, covering the safety, environmental, occupational health and resolution at shareholder meetings.
social aspects of responsible operation and sustainable development. These Where shares are held by trustees/nominees in respect of the Group’s
set out specific standards for each of these subject areas, in line with employee share plans and the voting rights attached to such shares are not
international best practice. The Code of Conduct and the Anglo American directly exercisable by the employees, it is the Company’s practice that such
‘Way’ documents may be accessed on the Company’s website. rights are not exercised by the relevant trustee/nominee.
In addition, all Anglo American suppliers must commit to adhering to the Under the Companies Act, members are entitled to appoint a proxy, who need
requirements set out in the ‘Sustainable Development in the Supply Chain not be a member of the Company, to exercise all or any of their rights to attend
Policy’, which is available on the Company’s website. and to speak and vote on their behalf at a general meeting or class meeting.
The Business Integrity Policy and its 11 Performance Standards support our A member may appoint more than one proxy in relation to a general meeting
anti-corruption commitment by making it clear that we will neither give, nor or class meeting provided that each proxy is appointed to exercise the rights
accept, bribes, nor permit others to do so in our name, either in our dealings attached to a different share or shares held by that member. A member that
with public officials or with our suppliers and customers. The Policy sets out is a corporation may appoint one or more individuals to act on its behalf at
the standards of conduct required at every level of Anglo American, including a general meeting or class meeting as a corporate representative. Where
our subsidiaries, joint ventures and associates, in combating corrupt a shareholder appoints more than one corporate representative in respect
behaviour of all types. It also sets out the requirements of those with whom of its shareholding, but in respect of different shares, those corporate
we do business and those who work on our behalf. representatives can act independently of each other, and validly vote in
The Business Integrity Policy and Performance Standards have been different ways.
translated into all the main languages that we use at our operations. Two Restrictions on voting
dedicated business integrity managers, who operate within a broader risk No member shall, unless the directors otherwise determine, be entitled in
management and business assurance team, oversee implementation of the respect of any share held by him/her to vote either personally or by proxy
policy by working with senior managers in our business units and corporate at a shareholders’ meeting, or to exercise any other right conferred by
functions and assisting them to put in place adequate procedures for membership in relation to shareholders’ meetings, if any call or other sum
managing corruption risks (including extensive face-to-face training of presently payable by him/her to the Company in respect of that share remains
employees in high-risk roles). unpaid. In addition, no member shall be entitled to vote if he/she has been
Our internal audit team provide assurance on anti-corruption controls on an served with a notice after failing to provide the Company with information
annual basis and all stakeholders are able to confidentially report breaches, concerning interests in those shares required to be provided under the
or potential breaches, of the Business Integrity Policy through our Companies Act.
independently managed ‘Speak Up’ facility. Issue of shares
The Group has a social intranet called Eureka! which helps employees to Subject to the provisions of the Companies Act relating to authority and
connect, communicate and collaborate more effectively. pre-emption rights and of any resolution of the Company in a UK general
meeting, all unissued shares of the Company shall be at the disposal of the
Political donations directors and they may allot (with or without conferring a right of
No political donations were made during 2017. Anglo American has an renunciation), grant options over, or otherwise dispose of them to such
established policy of not making donations to, or incurring expenses for the persons at such times, and on such terms, as they think proper.
benefit of any political party in any part of the world, including any political
Shares in uncertificated form
party or political organisation as defined in the Political Parties, Elections and
Directors may determine that any class of shares may be held in uncertificated
Referendums Act 2000.
form, and title to such shares may be transferred by means of a relevant
Additional information for shareholders system, or that shares of any class should cease to be so held and transferred.
Set out below is a summary of certain provisions of the Company’s current Subject to the provisions of the Companies Act, the CREST regulations and
Articles and applicable English law concerning companies (the Companies every other statute, statutory instrument, regulation or order for the time
Act) required as a result of the implementation of the Takeover Directive in being in force concerning companies and affecting the Company (together,
English law. This is a summary only and the relevant provisions of the Articles the Statutes), the directors may determine that any class of shares held on the
or the Companies Act should be consulted if further information is required. branch register of members of the Company resident in South Africa, or any
other overseas branch register of the members of the Company, may be held

OTHER INFORMATION DIRECTORS’ REPORT
in uncertificated form in accordance with any system outside the UK that Powers of directors
enables title to such shares to be evidenced and transferred without a written Subject to the Articles, the Companies Act and any directions given by special
instrument and which is a relevant system. The provisions of the Articles shall resolution, the business of the Company will be managed by the Board who
not apply to shares of any class that are in uncertificated form to the extent may exercise all the powers of the Company.
that the Articles are inconsistent with the holding of shares of that class in The Board may exercise all the powers of the Company to borrow money and
uncertificated form, the transfer of title to shares of that class by means of to mortgage or charge any of its undertaking, property and uncalled capital
a relevant system or any provision of the CREST regulations. and to issue debentures and other securities, whether outright or as collateral
Deadlines for exercising voting rights security, for any debt, liability or obligation of the Company or of any third
Votes are exercisable at a general meeting of the Company in respect of party.
which the business being voted upon is being heard. Votes may be exercised The Company may by ordinary resolution declare dividends, but no dividend
in person, by proxy, or in relation to corporate members, by corporate shall be payable in excess of the amount recommended by the directors.
representative. The Articles provide a deadline for submission of proxy forms Subject to the provisions of the Articles and to the rights attaching to any
of not less than 48 hours before the time appointed for the holding of the shares, any dividends or other monies payable on or in respect of a share may
meeting or adjourned meeting. be paid in such currency as the directors may determine. The directors may
Variation of rights deduct from any dividend payable to any member all sums of money (if any)
Subject to statute, the Articles specify that rights attached to any class of presently payable by him/her to the Company on account of calls or otherwise
shares may be varied with the written consent of the holders of not less than in relation to shares of the Company. The directors may retain any dividends
three-quarters in nominal value of the issued shares of that class, or with the payable on shares on which the Company has a lien, and may apply the same
sanction of an extraordinary resolution passed at a separate general meeting in or towards satisfaction of the debts, liabilities or engagements in respect of
of the holders of those shares. At every such separate general meeting the which the lien exists.
quorum shall be two persons holding, or representing by proxy, at least Appointment and replacement of directors
one-third in nominal value of the issued shares of the class (calculated The directors may from time to time appoint one or more directors. The Board
excluding any shares held as treasury shares). The rights conferred upon the may appoint any person to be a director (so long as the total number of directors
holders of any shares shall not, unless otherwise expressly provided in the does not exceed the limit prescribed in the Articles). Any such director shall
rights attaching to those shares, be deemed to be varied by the creation or hold office only until the next AGM and shall then be eligible for election.
issue of further shares ranking pari passu with them.
The Articles provide that at each AGM all those directors who have been in
Transfer of shares office for three years or more since their election, or last re-election, shall
All transfers of shares that are in certificated form may be effected by transfer retire from office. In addition, a director may at any AGM retire from office and
in writing in any usual or common form or in any other form acceptable to the stand for re-election. However, in accordance with the Code, all directors will
directors and may be under hand only. The instrument of transfer shall be be subject to annual re-election.
signed by, or on behalf of, the transferor and (except in the case of fully paid
shares) by or on behalf of the transferee. The transferor shall remain the Significant agreements: change of control
holder of the shares concerned until the name of the transferee is entered in At 31 December 2017, Anglo American had committed bilateral and
the register of shareholders. All transfers of shares registered on the main syndicated borrowing facilities totalling $9.3 billion with a number of
register of members that are in uncertificated form may be effected by means relationship banks which contain change of control clauses. $6.1 billion of the
of the CREST system. All Transfers of uncertified shares registered on the Group’s bond issues also contain change of control provisions. In aggregate,
branch register of members in South Africa may be effected via the Transfer this financing is considered significant to the Group and in the event of a
Secretary. takeover (change of control) of the Company, these contracts may be
cancelled, become immediately payable or be subject to acceleration.
The directors may decline to recognise any instrument of transfer relating to
shares in certificated form unless it: In the ordinary course of its business the Group’s subsidiaries enter into
a number of other commercial agreements, some of which would alter or
(a) is in respect of only one class of share terminate upon a change of control of the Company. None of these are
(b) is lodged at the transfer office (duly stamped if required) accompanied by considered by the Group to be significant to the Group as a whole.
the relevant share certificate(s) and such other evidence as the directors Purchases of own shares
may reasonably require to show the right of the transferor to make the At the AGM held on 24 April 2017, authority was given for the Company to
transfer (and, if the instrument of transfer is executed by some other purchase, in the market, up to 210.1 million ordinary shares of 54 86/91 US cents
person on his/her behalf, the authority of that person so to do). each. The Company did not purchase any of its own shares under this
The directors may, in the case of shares in certificated form, in their absolute authority during 2017. This authority will expire at the 2018 AGM and, in
discretion and without assigning any reason therefore, refuse to register accordance with usual practice, a resolution to renew it for another year will
any transfer of shares (not being fully paid shares) provided that, where any be proposed.
such shares are admitted to the Official List of the London Stock Exchange, Indemnities
such discretion may not be exercised in such a way as to prevent dealings To the extent permitted by law and the Articles, the Company has made
in the shares of that class from taking place on an open and proper basis. qualifying third-party indemnity provisions for the benefit of its directors
The directors may also refuse to register an allotment or transfer of shares during the year, which remain in force at the date of this report. Copies of
(whether fully paid or not) in favour of more than four persons jointly. these indemnities are open for inspection at the Company’s registered office.
If the directors refuse to register an allotment or transfer, they shall send the By order of the Board
refusal to the allottee or the transferee within two months after the date on
which the letter of allotment or transfer was lodged with the Company.
Other information
John Mills
A shareholder does not need to obtain the approval of the Company, or of Company Secretary
other shareholders of shares in the Company, for a transfer of shares to 21 February 2018
take place.
Directors
Directors shall not be fewer than 5 nor more than 18 in number. A director
is not required to hold any shares of the Company by way of qualification.
The Company may by ordinary resolution increase or reduce the maximum
or minimum number of directors.

OTHER INFORMATION
SHAREHOLDER INFORMATION
Annual General Meeting Electronic communication

This will be held at 14:30 on Tuesday, 8 May 2018, at The Queen Elizabeth II Shareholders may elect to receive, electronically, notification of the
Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE. availability on the Company’s website of future shareholder correspondence,
e.g. Annual Reports and Notices of AGMs.
Shareholding enquiries
By registering for this service, UK shareholders can also vote online in respect
Enquiries relating to shareholdings should be made to the Company’s
of future AGMs and access information on their shareholding including, for
UK Registrars, Equiniti, or the South African Transfer Secretaries,
example, dividend payment history, sales and purchases and indicative share
Computershare Investor Services Pty Limited, at the relevant address below:
prices. In order to register for these services, UK shareholders should contact
UK Registrars the UK Registrars or log on to www.shareview.co.uk and follow the
Equiniti on-screen instructions. It will be necessary to have a shareholder reference
Aspect House number when registering, which is shown on share certificates, dividend tax
Spencer Road vouchers and proxy cards.
Lancing
West Sussex BN99 6DA Dividends
England Dividends are declared and paid in US dollars to shareholders with registered
Telephone: addresses in all countries except the UK, eurozone countries and South Africa
In the UK: 0371 384 2026 where they are paid in sterling, euros and South African rand respectively.
From overseas: +44 121 415 7558 Shareholders outside South Africa may elect to receive their dividends in
US dollars.
Transfer Secretaries in South Africa
Computershare Investor Services (Pty) Limited Shareholders with bank accounts in the UK or South Africa can have their
Rosebank Towers, 15 Biermann Avenue cash dividends credited directly to their own accounts. Shareholders should
Rosebank, Johannesburg, 2196 contact the relevant Registrar or Transfer Secretary to make use of this
PO Box 61051, Marshalltown, 2107 facility. South African branch register shareholders would need South African
South Africa exchange control approval to mandate their dividends to an account outside
South Africa.
Telephone: +27 (0) 11 370 5000
Fax: +27 (0) 11 688 5248 The Company operates a dividend reinvestment plan (DRIP), which enables
shareholders to reinvest their cash dividends into purchasing Anglo American
Enquiries on other matters should be addressed to the Company Secretary shares. Details of the DRIP and how to join are available from Anglo
at the following address: American’s UK Registrars and South African Transfer Secretaries and on the
Company’s website.
Registered and Head Office
Anglo American plc ShareGift
20 Carlton House Terrace The Company supports ShareGift, the charity share donation scheme
London SW1Y 5AN administered by The Orr Mackintosh Foundation (registered charity number
England 1052686). Through ShareGift, shareholders with very small numbers of
Telephone: +44 (0) 20 7968 8888 shares which might be considered uneconomic to sell are able to donate
Fax: +44 (0) 20 7968 8500 them to charity. Donated shares are aggregated and sold by ShareGift,
Registered number: 03564138 the proceeds being passed on to a wide range of charities. For those
www.angloamerican.com shareholders who wish to use ShareGift, transfer forms are available from
[email protected] the Registrars and further details of the scheme can be found on the website
www.sharegift.org.
On the Investors section of the Group website a whole range of useful
information for shareholders can be found, including: Share dealing service
– investor calendar Telephone, internet and postal share dealing services have been arranged
– share price and tools through Equiniti, providing a simple way for European residents to buy or
– dividend information sell Anglo American shares. For telephone transactions call 0345 603 7037
– AGM information during normal office hours and for internet dealing log on to www.shareview.
– FAQs. co.uk/dealing. You will need your shareholder reference number, found on
share certificates, dividend tax vouchers and proxy cards. For further details
on the postal dealing service call 0371 384 2026 (or +44 121 415 7558 from
overseas).
Unsolicited mail
Under the Companies Act, the Company is obliged to make the share register
available upon request on payment of the appropriate fee. Because of this,
some shareholders may receive unsolicited mail. If you wish to limit the receipt
of addressed marketing mail you can register with the Mailing Preference
Service (MPS). The quickest way to register with the MPS is via the website:
www.mpsonline.org.uk. Alternatively you can register by telephone on:
020 7291 3310, or by email to: [email protected], or by writing to MPS
Freepost LON20771, London W1E 0ZT.

OTHER INFORMATION
OTHER ANGLO AMERICAN PUBLICATIONS
••Sustainability Report
••Ore Reserves and Mineral Resources Report
••Tax and Economic Contribution Report
••Transformation Report
••Our Code of Conduct
••The Safety, Health and Environment (SHE) Way
••The Social Way
••The Socio-Economic Assessment Toolbox (SEAT)
••Notice of 2018 AGM
••www.facebook.com/angloamerican
••www.twitter.com/angloamerican
••www.linkedin.com/company/anglo-american
••www.youtube.com/angloamerican
••www.flickr.com/angloamerican
••www.slideshare.com/angloamerican
Financial and other reports may be found at:
www.angloamerican.com/reporting
A printed copy of the Anglo American Annual Report can be ordered online at:
www.angloamerican.com/siteservices/requestreport
©
Anglo American plc 2018. All rights reserved.
Strategic partners
Below is a selection of the many organisations with which Anglo American currently
works in partnership. These important relationships form part of the Group’s
commitments to a wide range of key sustainability and other societal objectives.
Designed and produced by

SALTERBAXTER MSL
This document is printed on
Vision Superior which has been
independently certified according to
the rules of the Forest Stewardship
Council® (FSC).
Printed in the UK by Pureprint
using its alcofree® and pureprint®
environmental printing technology,
and vegetable inks were used
throughout. Pureprint is a
CarbonNeutral® company.
Both manufacturing paper mill
and the printer are registered to
the Environmental Management
System ISO 14001 and are Forest
Stewardship Council® (FSC)
chain-of-custody certified.
Anglo American plc
20 Carlton House Terrace
London
SW1Y 5AN
England
Tel +44 (0)20 7968 8888
Fax +44 (0)20 7968 8500
Registered number 03564138
www.angloamerican.com
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ANNUAL REPORT 2017

BUILDING ON FIRM FOUNDATIONS

BUILDING ON FIRM FOUNDATIONS

In 2017, Anglo American’s centenary year, our relentless focus on

ANNUAL REPORT 2017

BUILDING ON FIRM FOUNDATIONS

Throughout the Strategic Report we use a range

$4.9 bn 19% Financial statements

 lternative Performance Measures

Anglo American plc Annual Report 201701

Anglo American is a globally diversified mining DIAMONDS COPPER

company with a portfolio of world class competitive DE BEERS COPPER

depend, we do so in a way that not only generates 16% 17%

For more information

02 Anglo American plc Annual Report 2017

PLATINUM I RON ORE AND COAL NICKEL

10% 27% 32% 1% (3)%

For more information

For more information

Brazil 3 Brazil 185

TAXES BORNE AND COLLECTED(5) LOCAL PROCUREMENT SPEND(6)

Anglo American plc Annual Report 201703

The company’s pursuit since 2013 of greater operational

AN IMPROVED TRADING ENVIRONMENT AN ASSET-LED STRATEGY

04 Anglo American plc Annual Report 2017

Anglo American plc Annual Report 201705

OUR BUSINESS MODEL

06 Anglo American plc Annual Report 2017

$1.02 $2.1 billion

THE VALUE WE CREATE ENVIRONMENT COST

Anglo American plc Annual Report 201707

BUILDING ON FIRM FOUNDATIONS

we improved our underlying EBITDA margin by a further five

08 Anglo American plc Annual Report 2017

Anglo American plc Annual Report 201709

THE PURPOSE TO REWARD JOURNEY

Portfolio A Innovation B People C

Delivering our strategy

Pillar of value Description Pillar of value Description

To minimise our impact on the environment To be competitive by operating

Annual bonus Long term incentive plan (LTIP)

10 Anglo American plc Annual Report 2017

A CAUTIOUSLY POSITIVE OUTLOOK

CHINA’S SLOWDOWN 2017 1.5

Anglo American plc Annual Report 201711

Indexed 2017 prices

Anglo American 16%

Jan 2017 Dec 2017

12 Anglo American plc Annual Report 2017

Anglo American plc Annual Report 201713

OUR MATERIAL MATTERS Anglo American’s stakeholders include our customers,

STAKEHOLDER GROUPS ENGAGEMENT OPPORTUNITIES

Investors Annual General Meeting, investor roadshows,

Communities Socio-Economic Assessment Toolbox (SEAT),

relevance to responsible business practices

Employees and Face-to-face dialogue between employees

Suppliers and Focused supplier events, strategic supplier

Civil society (NGOs, faith One-on-one interactions, stakeholder Material

Customers Commodity and product-specific marketing

Industry/business Association memberships, industry events,

lternative Performance Measures

Anglo American plc Annual Report 201701

PLATINUM I RON ORE AND COAL NICKEL

Anglo American plc Annual Report 201703

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