Canberra, Australia: The Chief Executive of global miner Anglo American, Mr Mark Cutifani, today called on industry, business and government to pool their expertise and hold a national development summit with the aim of unlocking the slowing economy and collectively agreeing on a path forward for growth and competitiveness.

In a keynote address at the opening day of Minerals Week during his first visit to Australia as Anglo American’s Chief Executive, Mr Cutifani told more than 200 conference delegates that government needed to do more to encourage industry investment and that a summit should be held to build consensus on a plan for economic reform.

“The Australian economy is adjusting to a slowdown in demand for commodities and lower prices and we need a united plan of attack to counter this,” Mr Cutifani said.

“Australia has done well as a result of the mining boom, but I believe this phase has run its course as we are confronted with new realities. Higher costs, declining productivity, higher royalties, new carbon and mining taxes, planning laws causing permitting delays and a strong Australian dollar threaten the country’s competitiveness.

“Like the Hawke Government’s 1983 National Economic Summit which brought together governments, business, unions and community representatives, it is time to once again come together to discuss a roadmap for Australia to regain its competitive edge.”

Mr Cutifani called on the government to support the industry, not stifle its future in this country through development dead-ends and policy duplication.

“Policy stability and predictability at both State and Federal levels are key requisites for our investment decisions,” he said.

“We have more than wasted a commodities boom; we have undermined its very foundations by creating uncertainty and doubt in the minds of long term investors. No country can afford to be so cavalier.”

Mr Cutifani said the summit would need to address the following critical issues for the mining industry:  planning regulation that supports investment, an end to turf wars between Federal, State and local governments, infrastructure development and an acceptance about the role of mining in society.

“Last year the industry paid more than $20 billion in company taxes and royalties, four times the $4 billion to $5 billion paid at the start of the mining boom a decade ago,” he said.

“To use an example from my company, the carbon tax, other taxes and royalties have destroyed around 75 per cent of the net present value (NPV) of our Grosvenor met coal project currently under construction in Queensland.

“A recent decision by the New South Wales Government to suspend an approvals process after 25 rounds of consultation is delaying another one of our projects by six months, putting added pressure on us to decide whether to go ahead with a $500 million investment in the region that would safeguard 500 existing jobs.”

“A balance is needed between governments listening to communities or other industries’ concerns on the one hand, and stalling major investments in endless consultation on the other,” he said.

“Let me be very clear, the Australian coal industry is at a tipping point for future growth and will only survive if governments want the sector to invest in the country.”

ENDS

Contact Metallurgical Coal Corporate Affairs (Australia): Jacqui Strambi: +61 439 774 526

Notes to editors:

Anglo American is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American’s portfolio of mining businesses spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations, extensive pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com