[OFFICIAL]




Anglo American plc (the “Company”)
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM

12 July 2022

Anglo American announces first copper production from Quellaveco project in Peru

Anglo American plc (“Anglo American”) announces first production of copper concentrate from its
Quellaveco project in Peru – a major milestone as Quellaveco nears completion ahead of receiving final
regulatory clearance for commercial operations to begin.

Tom McCulley, who has led Anglo American’s development of Quellaveco, said: “First copper production
at Quellaveco is a key milestone in our delivery of this world-class asset, on time and on budget. The fact
that we are today producing copper less than four years after project approval, including through two
years of considerable pandemic-related disruption, is testament to the strength of our commitment to
our workforce, local communities, the Moquegua region and government stakeholders in Peru. This first
production of copper concentrate marks the beginning of the normal period of testing the processing
plant with ore and the ramping up of mining activities to demonstrate readiness for operations.”

Adolfo Heeren, CEO of Anglo American in Peru, added: “Quellaveco is a project for all of Peru and
especially for the Moquegua region. Once in full operation, Quellaveco alone will increase Peru’s copper
production by around 10%, and deliver sustainable benefits for decades to come, including 2,500 direct
jobs, the incorporation of local suppliers into our supply chain, the increase of water sources for human
consumption and irrigation, digital connectivity, the expansion of agricultural areas and tax revenues. By
working together in partnership, we will deliver enduring positive outcomes for all our stakeholders.”



For further information, please contact:

  Media                                                                                       Investors

  UK                                                                                          UK
  James Wyatt-Tilby                                                                           Paul Galloway
  james.wyatt-tilby@angloamerican.com                                                         paul.galloway@angloamerican.com
  Tel: +44 (0)20 7968 8759                                                                    Tel: +44 (0)20 7968 8718

  Marcelo Esquivel                                                                            Emma Waterworth
  marcelo.esquivel@angloamerican.com                                                          Emma.waterworth@angloamerican.com
  Tel: +44 (0)20 7968 8891                                                                    Tel: +44 (0) 20 7968 8574

  Katie Ryall                                                                                 Michelle Jarman
  katie.ryall@angloamerican.com                                                               michelle.jarman@angloamerican.com
  Tel: +44 (0)20 7968 8935                                                                    Tel: +44 (0)20 7968 1494

Anglo American plc
17 Charterhouse Street, London, EC1N 6RA, United Kingdom
Registered office as above. Incorporated in England and Wales under the Companies Act 1985.
Registered Number: 3564138 Legal Entity Identifier: 549300S9XF92D1X8ME43
                                                                                                                            [OFFICIAL]




    South Africa
    Nevashnee Naicker
    nevashnee.naicker@angloamerican.com
    Tel: +27 (0)11 638 3189

    Sibusiso Tshabalala
    sibusiso.tshabalala@angloamerican.com
    Tel: +27 (0)11 638 2175

The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange
and the SIX Swiss Exchange.

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Notes to editors:

Quellaveco is an open pit copper mine located in the Moquegua region in the south of Peru. Construction
started in 2018, with estimated total capex of $5.5 billion, which includes the $0.6 billion additional cost
of managing the impacts of the Covid-19 pandemic since 2020. In 2021, Anglo American also approved
the construction of a Coarse Particle Recovery plant to allow retreatment of coarse particles from
flotation tailings to further enhance copper recovery rates.

Quellaveco is expected to produce 300,000 tonnes of copper equivalent per year on average over the
first 10 years of operation, at a highly competitive C1 unit cost of c. 95c/lb over the first five years once
the operation reaches full production capacity.

The support of local communities is paramount in both the success of developing the project and its
operational phase. Such support is underpinned by an innovative 18-month “Dialogue Table”
consultation with local authorities and community representatives from the Moquegua region that took
place in 2011. A total of 26 commitments were made, spanning water to environmental protection and
social development. One of the major such commitments delivered is the construction of the Vizcachas
Dam which brings net positive water benefits to local communities by delivering supply of high-quality
water for agriculture, among other uses, while the Quellaveco operation will predominantly utilise water
that is unfit for such uses.

Quellaveco has an estimated 1.7 billion tonnes of Ore Reserves, 8.9 million tonnes of contained copper
at 0.53% TCu, and a 36-year Reserve Life, with potential for further expansion given its estimated
additional Mineral Resources at 1.6 billion tonnes, containing 6.1 million tonnes copper (at 0.38% TCu).1

Anglo American expects that Quellaveco will reach design production capacity in 12 months. Production
guidance for 2022 is 100,000 – 150,000 tonnes of copper at a C1 unit cost of c.135c/lb. Production
guidance for 2023 and 2024 is 320,000 – 370,000 tonnes. Quellaveco is owned 60:40 between Anglo
American and Mitsubishi Corporation.


Anglo American is a leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad
range of future development options, provides many of the future-enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions

1
  Estimates as at 31 December 2021. Please refer to the Anglo American Ore Reserves and Mineral Resources Report 2021 for
further information. TCu = total copper
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of consumers. With our people at the heart of our business, we use innovative practices and the latest
technologies to discover new resources and to mine, process, move and market our products to our
customers – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium
quality iron ore and steelmaking coal, and nickel – with crop nutrients in development – we are
committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining
Plan commits us to a series of stretching goals to ensure we work towards a healthy environment,
creating thriving communities and building trust as a corporate leader. We work together with our
business partners and diverse stakeholders to unlock enduring value from precious natural resources for
the benefit of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.
www.angloamerican.com




Forward-looking statements:
This document includes forward-looking statements. All statements other than statements of historical facts included
in this document, including, without limitation, those regarding Anglo American’s financial position, business,
acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations
(including development plans and objectives relating to Anglo American’s products, production forecasts and Ore
Reserve and Mineral Resource positions) and environmental, social and corporate governance goals and aspirations,
are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American
or industry results to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present and
future business strategies and the environment in which Anglo American will operate in the future. Important factors
that could cause Anglo American’s actual results, performance or achievements to differ materially from those in the
forward-looking statements include, among others, levels of actual production during any period, levels of global
demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates
and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and
outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the availability of mining and
processing equipment, the ability to produce and transport products profitably, the availability of transport
infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability
of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the
world, the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to
permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American’s assets and
changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo
American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo
American’s most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such
risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this document. Anglo American expressly disclaims any obligation or
undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the
Disclosure and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities
exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian
Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-
looking statement contained herein to reflect any change in Anglo American’s expectations with regard thereto or
any change in events, conditions or circumstances on which any such statement is based.
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Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share. Certain statistical and other information
about Anglo American included in this document is sourced from publicly available third-party sources. As such it has
not been independently verified and presents the views of those third parties but may not necessarily correspond to
the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect
of, such information.

Legal Entity Identifier: 549300S9XF92D1X8ME43