Anglo American : Annual Report and Financial Statements for year ended 31 December 2023

Integrated Annual Report 2023

Re-imagining mining to improve people's lives

Transforming the very nature of mining for a safer, smarter, more sustainable future.

Using more precise technologies, less energy and less water, we aim to reduce our environmental footprint for every ounce, carat and kilogram of precious metal or mineral.

We are combining smart innovation with operational excellence and the utmost consideration for our people, their families, local communities, our customers, and the world at large - to better connect precious resources in the ground to all of us who need and value them.

Revenue		Underlying EBITDA◊	Operating profit
$30.7 bn	$10.0 bn	$3.9 bn
2023	$30.7 bn	2023	$10.0 bn	2023	$3.9 bn
2022	$35.1 bn	2022	$14.5 bn	2022	$9.2 bn
Underlying earnings per share◊	Profit attributable to equity shareholders	Net debt◊
$2.42		$0.3 bn	$10.6 bn
2023	$2.42	2023	$0.3 bn	2023	$10.6 bn
2022	$4.97	2022	$4.5 bn	2022	$6.9 bn

And we are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in host communities and ultimately for billions of people around the world who depend on our products every day.

Our metals and minerals help unlock a cleaner future for our planet and meet the needs of a growing population, from homes and electronics, to food and luxuries - these are future-enabling products.

Total dividends per share		Attributable free cash flow◊	Group attributable ROCE◊
$0.96			$(1.4) bn	16%
2023	$0.96		2023	$(1.4) bn	2023	16%
2022		$1.98	2022	$1.6 bn	2022	30%
Number of fatalities			Total recordable injury frequency rate (TRIFR)	Level 4-5 environmental incidents

Cover image

At our Quellaveco copper mine in Peru, around two-thirds of the drilling team, and 30% of the blasting team, are women - all from the neighbouring Moquegua community.

3		1.78		0
2023	3	2023	1.78	2023
2022	2	2022	2.19	2022

• Alternative Performance Measures
  Words with this symbol ◊ are defined in the Alternative Performance Measures section of the Integrated Annual Report on pages 318-323.

0

0

Contents

Strategic Report

02	Our business at a glance
04	Chairman's statement
06	Chief Executive's statement
08	Our business model
09	Our value chain
10	Purpose to value
11	Creating value for our stakeholders
14	How we make decisions
16	Understanding our stakeholders
20	Our material matters
24	Looking at global trends
29	Reflecting stakeholder views in our
	Board decision making
30	Strategy: portfolio

1. Board effectiveness in 2023

1. Board visits in 2023

1. Stakeholder engagement

1. Sustainability Committee report

1. Nomination Committee report

1. Audit Committee report

1. Directors' remuneration report
2. Remuneration Committee chairman's introduction

1. At a glance

1. Directors' remuneration policy

1. Annual report on directors' remuneration

1. Statement of directors' responsibilities

Financial statements and other financial information

Our reporting suite

You can find this report and others, including the Sustainability Report, the Climate Change Report, our Tax and Economic Contribution Report, and the Ore Reserves and Mineral Resources Report, on our corporate website.

• For more information, visit: angloamerican.com/investors/annual-reporting

Social channels

AngloAmerican

@angloamerican

angloamericanplc

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Anglo American

40	Strategy: innovation
66	Strategy: people
76	Capital allocation
79	Managing risk effectively
86	Key performance indicators
90	Group financial review
94	Copper
100	Nickel
104	Platinum Group Metals (PGMs)
108	De Beers
113	Iron Ore
119	Steelmaking Coal
123	Manganese
125	Crop Nutrients
129	Corporate and other
130	Non-financial and sustainability
	information disclosures and footnotes
132	Disclosures related to the
	recommendations of the TCFD
138	Streamlined energy and carbon reporting

Governance

1. Chairman's introduction

1. Directors

1. Executive Leadership Team

1. Board roles and responsibilities

1. Board operations

1. Board activity

1. Independent auditors' report

1. Primary statements

1. Notes to the financial statements

1. Financial statements of the Parent Company

1. Summary by operation

1. Key financial data
2. Exchange rates and commodity prices

Ore Reserves and Mineral Resources

1. Estimated Ore Reserves

1. Estimated Mineral Resources

Other information

316 Glossary of terms

1. Alternative performance measures

1. Production statistics

1. Quarterly production statistics
2. Non-financialdata

1. Directors' report

1. Shareholder information
2. Other Anglo American publications and legal disclaimers

The Strategic Report forms part of the Anglo American plc Integrated Annual Report for the year ended

31 December 2023 and should be read in conjunction with the Governance section and Financial Statements of the Integrated Annual Report.

Basis of reporting

The Anglo American plc Integrated Annual Report for the year ended 31 December 2023 is produced in compliance with UK regulations. Additionally, we have compiled this report using the Guiding Principles and Content Elements set out in the International Integrated Reporting Council's Framework.

Integrated Reporting aims to demonstrate how companies create value sustainably over time, for a range of stakeholders - consistent with Anglo American's Purpose, business approach and strategy. This report, therefore, includes a comprehensive overview of our material matters, in the eyes of our stakeholders, and the impact these matters have on the value we create.

Measuring performance

Throughout the Strategic Report we use a range of financial and non-financial measures to assess our performance. A number of the financial measures are not defined under IFRS so they are termed 'Alternative Performance Measures' (APMs). We have defined and explained the purpose of each of these measures on pages 318-323, where we provide more detail, including reconciliations to the closest equivalent measure under IFRS. These APMs should be considered in addition to, and not as a substitute for, or as superior to, measures of financial performance, financial position or cash flows reported in accordance with IFRS.

Units

'Tonnes' are metric tonnes, 'Mt' denotes million tonnes, 'kt' denotes thousand tonnes, 'Mct' denotes million carats and 'koz' denotes thousand ounces; '$' and 'dollars' denote US dollars and 'cents' denotes US cents.

Forward-looking statements, third-party information and Group terminology

This document includes references to the

Anglo American Group, forward-looking statements and third-party information. For information regarding the Anglo American Group, forward-looking statements and such third-party information, please refer to the IBC of this document.

Non-Financial and Sustainability Information Disclosures

Non-financial and sustainability information in this report includes subsidiaries and joint operations over which the Anglo American Group has management or acts as operator. It does not include independently managed operations, such as Collahuasi and Samancor, nor does it include De Beers' non-managed joint operations in Namibia and Botswana, unless specifically stipulated.

We continue to evolve our non-financial disclosures in line with emerging recommendations and principles, ensuring we continue to comply with the reporting requirements contained in sections 414CA and 414CB of the Companies Act; the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD); and the Streamlined Energy and Carbon Reporting (SECR) rules. The tables on pages 130 and 132-138 are intended to guide stakeholders to where the relevant non-financial and sustainability information is included within our Strategic Report and other externally available Anglo American plc publications.

02	Anglo American plc	Strategic Report
	Integrated Annual Report 2023

Our business at a glance

Anglo American is a leading global mining company with a world class portfolio of mining and processing operations and undeveloped resources, providing tailored materials solutions for our customers, with around 60,000 employees working for us around the world.

North America

1,200 employees(1)

$102 m wages and benefits paid(2) $66 m taxes and royalties(3) $166 m local procurement spend(4)

Chile

4,200 employees(1)

$488 m wages and benefits paid(2) $503 m taxes and royalties(3) $3,295 m local procurement spend(4)

South Africa	Australia/Asia
36,100 employees(1)	3,600 employees(1)
$1,628 m wages and benefits paid(2)	$629 m wages and benefits paid(2)
$1,210 m taxes and royalties(3)	$1,279 m taxes and royalties(3)
$4,268 m local procurement spend(4)	$1,687 m local procurement spend(4)

Peru

1,400 employees(1)

$164 m wages and benefits paid(2) $324 m taxes and royalties(3) $797 m local procurement spend(4)

1 Canada

Product groups/corporate*

Brazil

4,000 employees(1)

$187 m wages and benefits paid(2) $397 m taxes and royalties(3) $1,257 m local procurement spend(4)

London

1

United

Kingdom

	Europe	Other Africa
	2,900 employees(1)	6,500 employees(1)
$557 m wages and benefits paid(2)	$385 m wages and benefits paid(2)
	$459 m taxes and royalties(3)	$844 m taxes and royalties(3)
$953 m local procurement spend(4)	$596 m local procurement spend(4)
	Finland 1

Shanghai

  Copper

Nickel

  Platinum Group Metals

  De Beers

  Iron Ore

  Steelmaking Coal

Manganese

Crop Nutrients

Marketing hub Early-stage project

1 Peru

3 Chile

2 Botswana 2 Namibia

Brazil 2 1

				Zimbabwe 1
					Shanghai
				SingaporeSingapore
South Africa				Australia 1 5
1	2	5	1

• Number within dot denotes number of operations, shown by product.

See page 131 for footnotes.

Anglo American plc	Strategic Report	03
Integrated Annual Report 2023	Our business at a glance

Our business

We provide many of the essential

metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world's developed and maturing economies, from homes and electronics to food and luxuries. And we do so in a way that not only generates sustainable returns for our shareholders over the long term, but that also strives to make a real and lasting positive contribution to society as a whole.

• More detailed information and maps can be found in the business reviews
  See pages 94-129

Our overview video gives a complete introduction to what we do and our ambitions for the future

See https://www.youtube.com/ watch?v=cYUz_h97X0A

Copper	Nickel	PGMs	De Beers
$3,233 million	$133 million	$1,209 million	$72 million
Underlying EBITDA◊	Underlying EBITDA◊	Underlying EBITDA◊	Underlying EBITDA◊
32%		1%		12%		1%
Group underlying EBITDA◊	Group underlying EBITDA◊	Group underlying EBITDA◊	Group underlying EBITDA◊
826 kt	40 kt	3,806 koz	31.9 Mct
Production: Copper	Production: Nickel	Production: PGMs	Production (100% basis)(5)

Iron Ore	Steelmaking Coal	Manganese (Samancor)	Crop Nutrients
$4,013 million	$1,320 million	$231 million	$(60) million
Underlying EBITDA◊	Underlying EBITDA◊	Underlying EBITDA◊	Underlying EBITDA◊
					project
40%		13%		2%
					Woodsmith is a greenfield
Group underlying EBITDA◊	Group underlying EBITDA◊	Group underlying EBITDA◊
35.7 Mt	16.0 Mt	3.7 Mt
Production: Iron ore -	Production: Steelmaking	Production: Manganese ore	Corporate and other
Kumba	coal
24.2 Mt				$(193) million

Production: Iron ore -	Underlying EBITDA◊
Minas-Rio

04	Anglo American plc	Strategic Report
	Integrated Annual Report 2023	Chairman's statement

Re-imagining mining to improve people's lives

We have been taking clear steps to improve competitiveness and resilience, while continuing to progress our highly attractive growth options.

renewable energy ecosystem through our partnership with EDF Renewables, known as Envusa Energy, we are gathering significant momentum in the development of a number

"2023 saw a significant downturn for both PGMs

The energy transition; an expanding global population, with an increasingly aspirant middle class; and the need to improve agricultural productivity in a sustainable way, all require mined products to be delivered on an unprecedented scale. Anglo American is focused firmly on value-led business decisions so that we are set up to deliver enduring value for decades to come.

Safety

Safety is our paramount priority, and keeping our people safe is an unremitting endeavour. So, it was deeply saddening that three people died in 2023 following accidents at our managed operations: one at our Kumba Iron Ore business in South Africa, and two at Copper in Chile.

We are devoting ever more time and resources to creating an environment where serious incidents simply don't happen. A key focus is on Visible Felt Leadership (VFL), connecting operational leaders on a one- to-one or small-group basis around a task or activity to ensure that it is done safely. This is being complemented by a new Contractor Performance Management framework designed to provide the foundation for safe and stable production by creating

a physically and psychologically safe workplace where employees, contractors

and suppliers all have the confidence to speak up if they have any concerns around safety.

Sustainable mining

Mined products are ever more central to the prosperity of our planet and society and we recognise our role in ensuring they are delivered as sustainably as possible. Our Sustainable Mining Plan stretches us across the three dimensions of ESG and includes our plans to reduce our own greenhouse gas (GHG) emissions, reduce fresh water abstraction, and deliver net-positive impacts in biodiversity wherever we operate. We aim to be carbon neutral (Scope 1 and 2 GHG emissions) across our operations by 2040 and have an ambition to at least halve our Scope 3 emissions by the same date.

Notwithstanding a 2% increase in production volumes, our total Scope 1 and 2 GHG emissions were 6% lower than in 2022. From April 2023, when our new Quellaveco copper mine in Peru was supplied with 100% renewable electricity, all our operations in South America now draw their electricity from renewable sources. With our Australia assets moving to renewable supply from 2025, we then expect to draw around 60% of our global grid supply from renewables. In southern Africa, where we are developing a regional

of wind and solar projects.

As part of our ambition to reduce our Scope 3 emissions, we are focusing on hard-to- abate sectors such as steel - from which most of our value-chain emissions derive. We have joined forces with steelmakers in Europe and Asia to research efficient feed materials. As methane emissions from our Steelmaking Coal operations represent the largest component of our Scope 1 emissions, we are also exploring processes such as regenerative thermal oxidation to manage and abate these emissions.

Highly attractive portfolio

Anglo American has a highly attractive, diversified portfolio, with a number of well- sequenced growth options, in copper, crop nutrients and high quality iron ore. We are custodians of some of the world's most valuable, long life mineral deposits - a world class set of copper assets with considerable growth potential, coupled with platinum group metals (PGMs), diamonds and high quality iron ore - and crop nutrients coming through later in the decade - that distinguish us from our diversified peers. The vast majority of the portfolio is geared to supplying products that are fundamental to enabling a low carbon economy and meeting the expectations of a growing global population, in terms of living standards and food.

and diamonds, leading to weaker financial outcomes. Against that background and with continuing geopolitical turbulence and a number of constraints specific to our business, we have been taking decisive action to improve margins and returns to ensure the sustained competitiveness of our top calibre assets."

Stuart Chambers

Chairman

Anglo American plc	Strategic Report	05
Integrated Annual Report 2023	Chairman's statement

Quellaveco's successful development has transformed our exposure to copper, a metal critical to economic development and implementing the energy transition, and we will continue to progress further growth options at Los Bronces, Collahuasi and Sakatti. In PGMs, our flagship Mogalakwena open pit mine presents competitive advantage in terms of cost and grade, while in north east England, we are developing the Woodsmith mine, to introduce a highly effective, comparatively low carbon fertiliser product called POLY4 to the global industry. POLY4's physical characteristics help solve the three interconnected challenges faced by the agricultural industry: the increasing demand for food from less available land; the need to reduce the environmental impact of farming; and the deteriorating health of soils.

Operating and financial performance Buffeted by geopolitical and economic headwinds, and their effect on PGMs and diamonds revenues in particular, Anglo American experienced a much more difficult year. A number of temporary operational constraints added to a considerably weaker financial performance, resulting in a poor return for shareholders, with a negative Total Shareholder Return (TSR) for the year of 36%, compared

with the FTSE 100 Index average of +8%, predominantly reflecting the down cycles in the two businesses that differentiate Anglo American - PGMs and diamonds.

Group underlying EBITDA decreased by

31% to $10.0 billion (2022: $14.5 billion), reflecting lower prices for certain products and global cost inflation. In line with our payout-based dividend policy, the Board has recommended a final dividend of $0.41 per share, equal to 40% of underlying earnings, bringing total dividends for the year to $0.96 per share or $1.2 billion.

As we look to 2024 and beyond, the management team has taken decisive action to improve cost performance and cash generation by reconfiguring certain production and wider operational plans to ensure they are realistic.

Governance

Free-market systems need a robust governance framework if they are to retain the trust of investors and society. I believe that the full breadth of sustainability considerations should always underpin this framework and be at the heart of how responsible companies do business. Boards must take care not to be blown off course by short term trends and instead ensure that decisions are reached through holistic debate and with the company's values and purpose in sharp focus.

In recent years, our own Board has stepped- up its engagement level with the company's employees, to further widen its field of view.

Leading this initiative is the Global Workforce Advisory Panel, which currently includes 12 colleagues drawn from across the Group and is chaired by non-executive director Marcelo Bastos. In 2023, the panel met on three occasions, one of which was in person in South Africa. Other Board members and myself were also able to engage directly with panel members during our Board and director site visits.

Our Board

On 1 April 2023, Magali Anderson joined the Board as a non-executive director, and as a member of the Board's Sustainability Committee. As things stand, four of the 10 directors on the Board are female and two are minority ethnic. Stephen Pearce stepped down as finance director after serving on the Board for almost seven years and was succeeded by John Heasley on 1 December.

I am always keen that our non-executive directors experience our operations at first hand and engage face to face with colleagues. So, it was pleasing to have our Board visit the Woodsmith project in September 2023, with the Sustainability Committee also spending time at Venetia in South Africa, the Audit Committee meeting with Marketing leaders at our corporate office in Singapore, and three non-executive directors visiting Steelmaking Coal operations in Australia.

Outlook

There is widespread consensus that 2024 may be another low growth year for the global economy; there is the possibility of a mild recession in the US, coupled with a torpid Eurozone, albeit with China's economic output forecast to increase by around 4-5% - which may offer some relief given the absolute size of that economy and the potential for further stimulus. We also expect India's demographics and growth trajectory to play an increasing role in raw materials demand over the coming decades. We must also overlay the potential for more geopolitical dislocations affecting global trade given current conflicts and the effects of elections across many of the world's largest democracies in 2024.

But looking through these challenging macro factors, many mined products continue to have strong fundamentals, with supply likely struggling to meet demand over the long term. With Anglo American set up to be more agile and resilient, with an exceptional metals and minerals portfolio, and considerable growth optionality, we are well positioned to capitalise on the irrefutable demand trends that will characterise the next several decades.

Thanks

I would like to express my appreciation to all our employees, the senior leadership team and the Board for their outstanding efforts in a difficult year.

Our Strategic Report

Our 2023 Strategic Report, from pages 2-138, was reviewed and approved by the Board on 21 February 2024.

Stuart Chambers

Chairman

06	Anglo American plc	Strategic Report
	Integrated Annual Report 2023	Chief Executive's statement

A safer, smarter future for mining

We are focused on delivering sustainable value through operational excellence, our differentiated capabilities and proactive portfolio choices.

Safety - our first priority

We are unconditional about safety and strive continuously to create a workplace where every colleague returns home safe and well at the end of their working day. 'Always safe' is our safety vision, and safety is our number one value and priority. While our emphasis on leadership time in the field helped us achieve our best ever total recordable injury frequency rate in 2023, it was deeply saddening that three colleagues died in the year following two accidents at our managed operations: at our Kumba Iron Ore business and at our Los Bronces copper operation in Chile. We extend our deepest condolences to their families, friends and colleagues.

In addition to rigorously investigating each of these tragic incidents, we are committed to sharing the learnings both internally and across the industry so that action can be taken to help prevent repeats. We are also continuing to implement our targeted safety strategy, investing in systems and technology, standards, and training our people, with a particular focus on leaders spending time in the field with their teams.

2023 - a volatile backdrop

Over the past 12 months the macro picture across geopolitics and the global economy has certainly been volatile, with prolonged inflationary pressure that has continued to impact costs across our industry. Coupled with cyclical lows for our PGMs and diamonds

businesses and temporary operational challenges at Kumba, due to third-party rail constraints, and at Los Bronces, we have reoriented our production profile due to lower grades to focus on safe, profitable and repeatable volumes. We are ensuring that Anglo American is set up to be resilient over the longer term to seize the tremendous growth opportunities presented by the quality of our resource endowments and the major demand trends.

We are implementing the right set of actions to enhance value both now and longer term. By doing so, we are positioned to capitalise on our attractive suite of products that play such a critical role in enabling: decarbonisation; improving global living standards; and food security. From the foundations of renewed stability and value- led discipline, the long term outlook has rarely looked better.

Focus on value to enhance returns Operational stability and cost control represent our biggest margin levers, supported by sustainable production plans that prioritise value over volume and thereby enhance margins and returns. Our focus has been on achieving safe, repeatable and consistent operational performance and working towards positioning the majority of our assets squarely in the first half of their respective cost curves. Against that backdrop, we expect to reduce annual run rate costs by c.$1 billion and capital spend by $1.6 billion over the next three years, while also cutting out unprofitable volumes.

We have streamlined our global business support activities, removing duplication and layers, enabling more effective decision making and more efficient service delivery.

By resetting organisational design, we have moved decision making closer to the operations to improve both agility and accountability and reduce duplication, resulting in a 25% reduction in the cost of senior head office roles. As part of these streamlining initiatives, we have significantly concentrated our focus onto those technologies and other capabilities that bring most benefit to our operations, thereby optimising the benefits from our investment in FutureSmart Mining™ of recent years.

Operationally, in Chile, for example, we are working through a more constrained phase of the mine plan and are aiming to improve cash flow by reducing production and moving to use only the larger and more efficient of the two copper concentrators at Los Bronces. This is expected to reduce both operating and capital costs for the asset while preserving optionality for when we are through this constrained phase of the mine plan. In PGMs, we are focusing on higher margin own production through our world class processing assets. While in Australia, our focus for Steelmaking Coal is on safe and stable operations in line with new operating protocols and ongoing challenging ground conditions at Moranbah.

For 2023 as a whole, we were delighted to see our new Quellaveco copper operation in Peru ramp up to full capacity in the fourth quarter, while ore grades at our copper assets in Chile and in nickel were lower, as expected. Operationally, both PGMs and De Beers performed solidly, albeit with downstream prices at cyclical lows. Minas-Rio set a number of performance records, while Kumba also performed well operationally - though limited by third-party rail availability.

"We have a world class suite of assets and a number of leading market positions, coupled with technical and socio-political capabilities, all underpinned by disciplined capital allocation and organic growth options in the right products."

Duncan Wanblad

Chief Executive

Anglo American plc	Strategic Report	07
Integrated Annual Report 2023	Chief Executive's statement

Group underlying EBITDA decreased by

31% to $10.0 billion (2022: $14.5 billion), reflecting a 13% lower basket price for our products and a 4% unit cost increase - a strong cost performance that beat inflation. Against this backdrop, we delivered a return on capital employed of 16% and a mining EBITDA margin of 39%. Net debt increasing to $10.6 billion, 1.1 x underlying EBITDA, reflects the portfolio investments we are making in line with our belief in the strong long term fundamentals, and a build in working capital of $1.2 billion at the year end. Reflecting our latest market view of global GDP growth and consumer demand, we have written down the book value of

De Beers by $1.6 billion, principally relating to goodwill, while also impairing the value of our nickel asset in Brazil, Barro Alto, by $0.8 billion. Our $1.2 billion total dividend of $0.96 per share is in line with our 40% payout policy.

World class portfolio offering growth in the right products

We actively manage the portfolio - always led by value - to continuously improve

its overall quality, reduce complexities, and ensure that capital is allocated to the most value-accretive assets and growth opportunities, including those with industry partners in respect of adjacent assets where there is significant value to be unlocked. Each of our assets must pull its weight

in playing a dynamic role to support the portfolio as a whole.

While most industry voice is generally given to the metals needed for the increasingly urgent transition to cleaner energy, we should not forget that uplifting global living standards for a still fast growing global population requires an unprecedented level of economic development. This underlying driver will continue to represent the baseload of demand growth - with copper and the high quality steelmaking ingredients of iron ore, steelmaking coal and manganese front and centre.

Similarly, to feed and provide improved nutrition to the world's population will require unparalleled volumes of more effective and environmentally sustainable fertiliser - a need that we will be well placed to fill as we develop a crop nutrients business around a truly differentiated product from Woodsmith. As we progress Woodsmith's development towards Board approval and continue to firm up our views on the enormous potential of our product in the market, so we are taking steps to identify potential syndication partners with a focus on keeping our investment in Woodsmith proportionate. This is consistent with our approach in relation to multi-billion dollar greenfield projects, being to develop one at a time and to syndicate for value at the right time, as we did with Quellaveco.

Sustainability key to unlocking opportunities

One of our greatest challenges as an industry is to bridge the clear gap between increasing recognition of the need for ever greater volumes of mined materials and society's acceptance of the activity required to produce them. Our experience in delivering improved sustainability outcomes from successful projects such as Quellaveco is part of the solution and is integral to how we make our strategic and investment choices - across our current operations and projects in design and development - and to unlocking enduring value for all our stakeholders.

Building on our FutureSmart MiningTM blueprint we established at Quellaveco, we are deploying the next generation of technology and sustainability innovation at Woodsmith, setting a new benchmark for modern mining - out of sight, safe, reliable, and catering to our customers' and society's needs. Likewise, we then expect to take these learnings to our polymetallic project - Sakatti, in Finland, for which we received the all- important environmental impact assessment approval in August 2023. Sakatti is set to be a

remotely operated, low carbon underground mine, thereby contributing to a sustainable supply of critical minerals to support the energy transition in Finland and the EU. We see such capabilities as essential to our and the mining industry's ability to successfully develop new supply, particularly as orebodies dictate that we operate in more complex socio-economic and environmentally sensitive areas.

In parallel, we are also moving towards our goal of carbon neutral operations by 2040, evolving our pathways as we progress, learn, and as technologies develop. We have transitioned to 100% renewable electricity supply across our South America operations, with Australia to follow in 2025. In southern Africa, where renewable alternatives are not yet available at any scale, we are making good progress in partnership with EDF Renewables to build a 3-5 GW renewable energy ecosystem of wind and solar generation capacity, designed to tackle our largest remaining source of Scope 2 emissions and support energy reliability and grid resilience.

An inclusive and rewarding workplace for our people

Our people are critical to all that we do, and always front of mind are their safety and health, employees and contractors alike. We believe, too, in creating an inclusive workplace where every colleague can bring their whole self to work and fulfil their potential. We have a robust strategic approach in place which focuses on valuing and respecting our diverse colleagues, inclusive leadership, providing an involving, fair and supportive workplace and having a safe, effective and enabling work environment.

This year we were awarded a Living Wage accreditation that formally recognises Anglo American's status as a committed

global Living Wage employer. We are the first mining company to reach this milestone. Similarly, I was also pleased that Anglo American was recognised in the Inclusive Top 50 UK Employers in 2023 for the fifth year in a row.

Outlook

We have fundamentally reorganised and reoriented the business during 2023, including to shift our production mindset to one that is driven by value rather than volume and with plans that are both safety- led and deliverable repeatedly. We have been systematically reviewing our assets and organisation over the last 18 months to drive greater effectiveness and sustainable performance in the face of the uncertain macro picture that has been emerging - and which has had a particularly significant impact on PGMs and diamonds.

The actions we have taken combine specific asset performance plans and Group- wide initiatives that we believe will offer

an evergreen investment proposition that generates attractive returns through the cycle. Together with our technical capabilities and our approach to sustainability, we are setting ourselves up to deliver significant value upside from our current assets and our considerable growth options that are concentrated in copper, crop nutrients and high quality iron ore, given the structurally attractive fundamentals presented by the major demand trends.

I'd like to thank the Board for its unwavering support and all our workforce for their hard work and resilience over the past year.

Duncan Wanblad

Chief Executive

08	Anglo American plc	Strategic Report
	Integrated Annual Report 2023

Our business model

Anglo American draws upon a number of key inputs that, through targeted allocation, development, extraction and marketing, create sustainable value for our shareholders and our diverse range of stakeholders.

Our inputs

Ore Reserves and Mineral Resources

Our high quality, long life mineral assets provide a range of organic options for long term value delivery.

Other natural resources

We aim to effectively manage the water and energy requirements of our mining and processing activities.

Know-how

We use our industry-leading technical, sustainability and market knowledge to realise optimal value from our assets.

Plant and equipment

We form strong relationships with suppliers, many of whom are located in the countries where we operate, to deliver tailored equipment and operating solutions.

	Our value chain
	Discover
End of life	Plan and
plan	build

We invest in those parts of the value

chain that provide us with the best return on our investment, holding ourselves to the highest standards through our holistic and integrated approach to sustainable business practices.

Outputs

We deliver many of the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer demands of developed and maturing economies. We strive to minimise our environmental footprint through our use of technologies and bring enduring social benefits through our approach, encompassed in our ambitious Sustainable Mining Plan.

Attributable free cash flow	Group attributable ROCE
$(1.4) bn	16%
CO2 equivalent emissions	Mined product shipped
(Scope 1 and 2)	by our fleet
12.5 Mt	>75 Mt

Financial

A strong focus on productivity, cost discipline and working capital management helps deliver sustainable positive cash flows, with balanced capital allocation to optimise returns.

Move and	Mine
market

Production in 2023

• Copper: 826 kt
• Nickel (from Nickel and PGMs): 61.8 kt
• Platinum: 1,749 koz refined
• Palladium: 1,269 koz refined

• Rhodium: 226 koz refined
• Diamonds: 31.9 Mct
• Iron ore: 59.9 Mt
• Steelmaking coal: 16.0 Mt
• Manganese ore: 3.7Mt

Governance

Our governance controls ensure we respond effectively to those matters that have the potential to cause financial, operational or reputational harm, while acting ethically and with integrity.

• For more information See pages 139-177

Materiality and risk

Identifying and understanding our material matters and risks is critical in the development and delivery of our strategy.

• For more information See pages 20-23

Process

How we measure the value we create

Safety	Socio-political	Environment	People
and health
	Production	Cost	Financial

• For our pillars of value See pages 86-89

• For more on the value we create for stakeholders
  See pages 11-13

Stakeholder engagement

Open and honest engagement with our stakeholders is critical in gaining and maintaining our social and regulatory licences to operate. Working within our social performance framework, it is our goal to build and sustain constructive relationships with host communities and countries that are based on mutual respect, transparency and trust.

• For more information See pages 16-19