FUTURESMART™ OPEN FORUMS

FUTURESMART OPEN FORUMS
AustMine Conference
Dan Alexander – May 2015
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WHO WE ARE AT A GLANCE
Platinum
$31 bn
151,200
In Group
Revenue*
Employees
Worldwide
Diamonds
(De Beers)
Our head quarters are in
London, United Kingdom
Iron Ore &
Manganese
Copper
Mining Operations in
Southern Africa, North and
South America and Australia
$7.8 bn
In
underlying
EBITDA*
Thermal
Coal
Metallurgical
Coal
Nickel,
Niobium &
Phosphate
We are listed on the London
and Johannesburg Stock
Exchanges
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*2014
UNCLASSIFIED
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*2014
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FUNDAMENTALLY CHANGING MINING…
Deliver step change value in our operations by working together with
partners to transform our operational practices using novel technologies
Anglo American will focus on step-change initiatives
• Across the full value chain
• Technologies that will make a difference across multiple commodities
• Enhance performance of our Tier 1 & 2 assets
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..WITH FUTURESMARTTM AT THE LEADING EDGE OF
TECHNOLOGY AND INNOVATION IN MINING
• Response to the global drive for a
more sustainable approach to mining
– economically, socially and
environmentally
• Use innovation and technology as an
enabler to deliver value
• Holistic (benefit entire systems), open,
and collaborative
• Creates sustainable and lasting
change
• Novel approach to IP management
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OPEN INNOVATION INSPIRES THE APPROACH…
Adapting from
other industries
Systems
thinking
Open
Innovation
Speed
Delivering
quick wins
Edison did not deliver the lightbulb
through continuous improvement of
the candle…
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..WITH OPEN FORUMS CONSIDERED A VALUABLE TOOL
Mining suppliers
Academia
Other industries
Entrepreneurs
OPEN FORUMS
Finding common business
needs, interests and skills to
develop and deliver industry
game-changing technology
projects
Anglo American BU representatives
Open Forums will focus on identifying and selecting the right problem to
address, and bring the right internal and external people to do so
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OTHER INDUSTRIES AND OPEN INNOVATION
GE Ecomagination
Light My Fire: aviation engineers 3D
printed a model jet engine, then took it
to 33,000 RPM
Shell GameChanger
The revolutionary idea of cooling natural
gas to liquid at sea into reality – identified
by open source and boosted by early
funding from the Shell GameChanger
programme
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Source: Companies’ websites
UNCLASSIFIED
FUTURESMART
OPEN FORUMS
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WE’VE IDENTIFIED THREE OPEN FORUM AREAS…
Processing
Sustainability
Mining
FutureSmart Open Forums are set in the context of objectives that will require us
to address technology challenges that previously may have been seen as impossible
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KICKING THE WATER HABIT:
OUR ASPIRATION FOR WATER FREE MINING
What if we could…
Redesign our processes
and technology to be waterfree and only use recycled
water
Consume only minimal clean
water for our own needs and
instead use others’ waste
water
Through water, create
sustainable development
opportunities not only for
Anglo American, but for all
stakeholders
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ADAPTABLE PROCESSING:
OUR ASPIRATION FOR THE FIT FOR PURPOSE PLANT
What if we could…
Redesign our processes
and technology to adapt
to any size and grade of
ore deposit
Transform mineral
processing into a fully flexible
and highly integrated
manufacturing system
Dramatically reduce the
energy, water and physical
footprint required for
extracting minerals from ore
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..AND OUR DESIRED OUTCOME IS A PORTFOLIO OF
PROJECTS THAT DELIVER VALUE FROM THE START
Indicative absolute value
generation
• The portfolio project approach will
deliver value early
• Total value will continue to grow as
longer term projects start to generate
benefits
• The selection of suitable projects at
the completion of the Open Forum is a
key deliverable
• Understanding the shape of this graph
will dictate the choice of projects
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2
Short term
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Medium term
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Long term
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TOTAL
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IP ENABLES, NOT IMPEDES, COLLABORATION
OUR FOCUS IS TO GUARANTEE OUR FREEDOM TO OPERATE
Novel approaches to Intellectual Property (IP)
will facilitate collaboration
BASIC UNITS OF VALUE FROM IP
Collaboration exposes us to risk
Exchanging confidential information
Benefit
Clear contract clauses on IP ownership
Development of new processes
A number of options may be considered when
negotiating IP, for example:
Right
Owning the IP
Sharing of IP rights (e.g. joint ownership,
cross licensing)
Property
Future price discounts as co-developer
Securing rights of first refusal to either
own or license the IP
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RELATIONSHIPS ARE KEY
“Valley of Ideas”
ANGLO AMERICAN
Govt / NGO?
Other Mining Co?
University?
Anglo Business Unit?
SME / Entrepreneur?
Buyer
Provider
Risk boundaries
“Valley of Death”
Supplier
“Valley of Support”
Typically, a large OEM
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THE LARGER KEY IS CHANGE
Machine gun?
I don’t have time to
talk about that – I
have a war to fight
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KEY MESSAGE
• Anglo American has embarked on an open innovation approach
called FutureSmart Open Forums
• Open Forums is a tool which will use to identify the right problems
• The initial focus of the Open Forums will be identifying the
game changing projects in water and adaptive processing plant
It’s a seemingly
impossible task that,
if achieved, will
simply change
everything…
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THANK YOU
www.angloamerican.com
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