REG - Anglo American PLC - Anglo American to combine nuGen with First Mode

Anglo AmericanAnnouncement

30/06/2022 15:00

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RNS Number : 8664Q  Anglo American PLC  30 June 2022

 30 June 2022
 Anglo American agrees to combine nuGen™ with First Mode to accelerate Zero
 Emissions Haulage Solution

Anglo American is in exclusive negotiations with First Mode Holding Inc
("First Mode"), and has agreed non-binding terms, to combine Anglo American's
nuGen™ Zero Emissions Haulage Solution ("ZEHS") with First Mode, the
specialist engineering technology company that partnered with Anglo American
to develop the nuGen™ ZEHS (the "Transaction").

 

The Transaction would include a capital investment by Anglo American in the
combined business and is intended to accelerate the development and
commercialisation of Anglo American's nuGen™ ZEHS. The new combined business
would retain the First Mode name as an independent business and prioritise
developing nuGen™ ZEHS, building on three years of extensive development by
Anglo American and First Mode.

 

Anglo American launched the prototype of its nuGen™ ZEHS hydrogen-powered
mine haul truck at its Mogalakwena PGMs mine in South Africa on 6 May 2022 -
the world's largest designed to operate in everyday mining conditions. The
agreement envisages that Anglo American will enter into an agreement with
First Mode to decarbonise its global fleet of ultra-class mine haul trucks, of
which approximately 400 are currently in operation, as well as provide
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™ 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.

 

Anglo American acquired a 10% strategic equity interest in First Mode in 2021.
The Transaction would include Anglo American making an additional capital
investment in the combined business which, upon completion of the Transaction,
would result in a majority shareholding. The balance of the equity interest at
that time would be held by a number of First Mode's founders and employees. In
addition to accelerating the development and commercialisation of the ZEHS
technology, the new combined business would 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.

 

 

 

Notes to editors:

 

nuGen™ ZEHS

 

Conceived as part of Anglo American's FutureSmart Mining™ programme,
nuGen™ 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 approximately 80% of diesel emissions at open pit mines,
nuGen™ 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 creative engineering company building the barely possible to
enable a sustainable future for everyone. We design and deliver critically
needed products and technologies focused on zero-emission mobility,
decarbonisation of heavy industry, and production and distribution of green
hydrogen. Our more than 200 engineers and other employees in Seattle, USA and
Perth, Australia empower our clients to leverage cutting-edge solutions to
achieve their sustainability objectives and help our planet survive and
thrive. First Mode customers currently make use of a variety of OEM platforms
and site infrastructure. The nuGen™ ZEHS makes use of prior investments and
fleets, offering the optimal mix of technologies depending on each site. These
variations will include battery, hydrogen, and hybrid systems, with the
ability to integrate into trolly assist and autonomy programmes.

 

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 (http://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 (mailto:paul.galloway@angloamerican.com)
 (mailto:james.wyatt-tilby@angloamerican.com)

                                                                                  Tel: +44 (0)20 7968 8718
 Tel: +44 (0)20 7968 8759

                                                                                  Emma Waterworth
 Marcelo Esquivel                                                                   Emma.waterworth@angloamerican.com (mailto:Emma.waterworth@angloamerican.com)

Tel: +44 (0) 20 7968 8574
 marcelo.esquivel@angloamerican.com (mailto:marcelo.esquivel@angloamerican.com)

 Tel: +44 (0)20 7968 8891

                                                                                  Michelle Jarman

                                                                                  michelle.jarman@angloamerican.com (mailto:michelle.jarman@angloamerican.com)
 Katie Ryall

 katie.ryall@angloamerican.com (mailto:katie.ryall@angloamerican.com)               Tel: +44 (0)20 7968 1494

 Tel: +44 (0)20 7968 8935

 South Africa

 Nevashnee Naicker

 nevashnee.naicker@angloamerican.com

 Tel: +27 (0)11 638 3189

 Sibusiso Tshabalala

 sibusiso.tshabalala@angloamerican.com
 (mailto: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™ 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™ 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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