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Anglo American and Cefetra reinforce their European fertiliser partnership

14 November, 2024

Anglo American announces the signing of a new polyhalite fertiliser agreement with Cefetra Group B.V., a wholly owned subsidiary of BayWa AG, further reinforcing their European partnership.

Cefetra Group is a leading European integrated agribusiness with access to a large network of customers across the agricultural supply chain and an extensive logistics platform across Europe with direct access to the farmgate. The new agreement builds on more than 300 commercial demonstrations and promotional events jointly conducted in Europe over the last five years that delivered positive results and generated strong interest in Anglo American’s POLY4 product. The agreement provides Anglo American with greater control of its commercial strategy for POLY4 in Europe, with Cefetra supplying its considerable expertise in marketing, distribution and supply chain management services, thereby allowing Anglo American to maximise the value and pricing potential from European POLY4 sales when its Woodsmith project comes online.

Tom McCulley, CEO of Anglo American’s Crop Nutrients business, said: “Cefetra, and more broadly BayWa, have been involved in the Woodsmith Project since 2019 and I’m delighted to strengthen this valuable strategic partnership. Cefetra has long-term and trusted relationships with farmers, cooperatives, food value chain companies and retailers, as well as the extensive sales platforms and logistics capabilities that are important for success in Europe, which we expect to be one of the largest and most valuable regions for our organic, low carbon POLY4 fertiliser.

“This agreement reflects our improved understanding of the demand opportunity for polyhalite and is a great vote of confidence in POLY4’s potential from one of Europe’s largest and most recognised agribusinesses. This is the latest in a series of improvements we have made to our commercial arrangements to meet expected demand and achieve favourable returns for investors as swiftly as possible when production begins.”

The European fertiliser sector is particularly advanced, with strong demand for large volumes of high-performance products. In addition, increasing environmental pressures, expectations and targets from within the agricultural supply chain mean that there are significant opportunities to attract premiums for products which can deliver environmental value. POLY4 is expected to benefit from this trend due to its low carbon footprint and suitability for lower emission, nature-positive farming practices.

Daan Vriens, CEO of Cefetra Group, added: “This new agreement demonstrates our shared commitment to delivering more sustainable solutions for farmers across Europe. By using our extensive supply chain network and marketing POLY4 effectively, we believe we can help Anglo American to optimise its entry into Europe and drive incremental value for our respective businesses.

“POLY4 is a new and differentiated fertiliser which fits with our vision of how we expect farming practices and products to change in the coming decades, in the face of productivity and environmental challenges. Together with Anglo American, we have engaged with several major companies and other stakeholders in the food supply chain to better understand the solutions required. We are delighted to renew our commitment to a product which will further support our business in Europe, a region that rightly demands products which deliver strong yield and environmental performance at scale.”

POLY4 is the commercial name for Anglo American’s granular multi-nutrient, low carbon polyhalite fertiliser product. It naturally contains potassium, sulphur, magnesium and calcium – four of the most important nutrients required to produce healthy crops and support soil quality. Anglo American is currently developing its next generation of FutureSmart Mine at Woodsmith – a cutting edge, low environmental impact underground mine in the north east of England to access the world’s largest known deposit of the natural polyhalite product. In doing so, Anglo American will help drive more balanced, soil nourishing and environmentally friendly crop nutrition practices at scale in a number of key regions and thereby help support the increasingly pressing need for global food security.

For further information, please contact:

Media Investors
UK UK
James Wyatt-Tilby Tyler Broda
Email: [email protected] Email: [email protected]
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 1470
Marcelo Esquivel Michelle West-Russell
Email: [email protected] Email: [email protected]
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 1494
Rebecca Meeson-Frizelle Asanda Malimba
Email: [email protected] Email: [email protected]
Tel: +44 (0)20 7968 1374 Tel: +44 (0)20 7968 8480
South Africa
Nevashnee Naicker
Email: [email protected]
Tel: +27 (0)11 638 3189

Notes to editors:

Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore and crop nutrients – future-enabling products that are essential for decarbonising the global economy, improving living standards, and food security. Our portfolio of world-class operations and outstanding resource endowments offers value-accretive growth potential across all three businesses, positioning us to deliver into structurally attractive major demand growth trends.

Our integrated approach to sustainability and innovation drives our decision-making across the value chain, from how we discover new resources to how we mine, process, move and market our products to our customers – safely, efficiently and responsibly. Our Sustainable Mining Plan commits us to a series of stretching goals over different time horizons to ensure we contribute to a healthy environment, create thriving communities and build trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for our shareholders, for the benefit of the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people’s lives.

Anglo American is currently implementing a number of major structural changes to unlock the inherent value in its portfolio and thereby accelerate delivery of its strategic priorities of Operational excellence, Portfolio simplification, and Growth. This portfolio transformation will focus Anglo American on its world-class resource asset base in copper, premium iron ore and crop nutrients, once the sale of our steelmaking coal and nickel businesses, the demerger of our PGMs business (Anglo American Platinum), and the separation of our iconic diamond business (De Beers) have been completed.

www.angloamerican.com

Group terminology

In this document, references to “Anglo American”, the “Anglo American Group”, the “Group”, “we”, “us”, and “our” are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

Disclaimer

This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or the recommendation, solicitation, inducement or offer to buy, subscribe for or sell shares in Anglo American or any other securities by Anglo American or any other party. Further, it should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice and has no regard to the specific investment or other objectives, financial situation or particular needs of any recipient.

Forward-looking statements and third party information

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, prospects and projects (including development plans and objectives relating to Anglo American’s products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones 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, unanticipated downturns in business relationships with customers or their purchases from Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new or competing technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures, competitive pressures and 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.

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 included in this document is sourced from third party sources (including, but not limited to, externally conducted studies and trials). 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.

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