TIDMAAL
RNS Number : 8945I
Anglo American PLC
07 December 2022
7 December 2022
Anglo American combines nuGen(TM) with First Mode and invests
$200m to accelerate Zero Emissions Haulage Solution
Anglo American has signed a binding agreement with First Mode
Holding Inc ("First Mode") to combine Anglo American's nuGen(TM)
Zero Emissions Haulage Solution ("ZEHS") with First Mode, the
specialist engineering technology company that partnered with Anglo
American to develop the nuGen(TM) ZEHS (the "Transaction").
The Transaction, first indicated in June 2022, is intended to
accelerate the development and commercialisation of Anglo
American's nuGen(TM) ZEHS. Anglo American acquired a 10% strategic
equity interest in First Mode in 2021. The Transaction includes
Anglo American making an additional capital investment of $200
million in the combined business to help fund the ongoing
development of ZEHS which, upon completion of the Transaction,
values the business in the order of $1.5 billion and results in
Anglo American owning a majority shareholding in First Mode. The
balance of the equity interest at that time will be held by a
number of First Mode's founders and employees.
Upon closing of the Transaction, expected in January 2023, Anglo
American will enter into a supply agreement with First Mode to
decarbonise its global fleet of ultra-class mine haul trucks, of
which approximately 400 are currently in operation, in support of
Anglo American achieving its 2040 target for carbon neutral
operations. The roll-out across Anglo American's haul truck fleet
over the next c.15 years is subject to the completion of agreed and
committed studies across seven mine sites, certain performance and
cost criteria, and relevant regulatory, corporate and shareholder
approvals. The supply agreement also includes the appropriate
provision of critical supporting infrastructure such as refuelling,
recharging, and facilitation of hydrogen production.
Anglo American also recognises its role in supporting broader
decarbonisation objectives outside its own business. The
technologies and capabilities that it has been developing as part
of the nuGen(TM) project with First Mode present opportunities
beyond Anglo American's haul truck fleet, including across other
industries that rely on heavy duty forms of transport, such as
rail.
In addition to accelerating the development and
commercialisation of the ZEHS technology, the new combined business
will allow strategic third parties to co-invest alongside Anglo
American and First Mode, offering the opportunity to accelerate
their own decarbonisation and participate in the potential offered
by the clean ZEHS technology.
The new combined business retains the First Mode name and will
prioritise developing nuGen (TM) ZEHS, building on three years of
extensive development by Anglo American and First Mode.
Notes to editors:
nuGen (TM) ZEHS
Anglo American launched the prototype of its nuGen(TM) ZEHS
hydrogen-powered mine haul truck at its Mogalakwena PGMs mine in
South Africa in May 2022 - the world's largest designed to operate
in everyday mining conditions.
Conceived as part of Anglo American's FutureSmart Mining (TM)
programme, nuGen(TM) ZEHS is an end-to-end solution to decarbonise
heavy duty transport and includes hydrogen production, on-site
storage, ultra-heavy duty refuelling and hydrogen-battery hybrid
powertrains to replace incumbent fossil fuel technology. With
diesel emissions from its mine haul truck fleets accounting for
10-15% of Anglo American's total Scope 1 emissions, and haulage
trucks accounting for up to 80% of diesel emissions at open pit
mines, nuGen (TM) ZEHS will play an important role in delivering
not only Anglo American's target of carbon neutral operations by
2040, but also supporting the decarbonisation of the mining
industry, with potential across other industries.
First Mode
First Mode is a global carbon reduction company developing
creative, clean energy solutions for heavy industry's toughest
problems. We started by removing the diesel engine from a colossal
mining truck and replacing it with a hydrogen fuel cell powerplant.
A world-first, and the world's largest. But we're not stopping
there. We are also working on providing critical mine site
infrastructure for hydrogen production, battery recharging, and
hydrogen refuelling. Today, we're starting at the source, the
mining industry, and tomorrow the larger supply chain, to
completely eliminate the use of diesel and speed the clean energy
transition.
www.firstmode.com
Anglo American
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 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
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
South Africa Michelle Jarman
Nevashnee Naicker michelle.jarman@angloamerican.com
nevashnee.naicker@angloamerican.com Tel: +44 (0)20 7968 1494
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
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, as well as those
regarding the proposed combination of Anglo American's nuGen(TM)
ZEHS with First Mode and related commercial arrangements, 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, the
possibility that the proposed combination of Anglo American's
nuGen(TM) ZEHS with First Mode may not be completed in a timely
manner or at all, or that Anglo American and First Mode may fail to
agree upon commercial terms for their arrangement or fail to
finalise and enter into definitive documentation relating to the
anticipated transaction, the possibility that the final terms of
any transaction with First Mode may differ, including materially,
from the terms
currently anticipated, any failure of Anglo American or First
Mode to obtain the necessary regulatory approvals to consummate the
proposed combination 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.
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
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END
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