BHP Billiton Mitsubishi Alliance

BHP Billiton Mitsubishi Alliance (BMA) is Australia's largest coal miner and exporter, and the world's largest
supplier to the seaborne coking coal market. It accounts for more than a quarter of Australia's annual coal exports
and 28 percent of the world's seaborne trade in metallurgical coal.
BMA was formed in June 2001 and it is a joint venture between Anglo-Australian mining giant BHP Billiton Ltd.
(arguably the worlds leading diversified resources company. In 2013 BHP Billiton emerged as the worlds largest
mining company measured by revenues) and Mitsubishi Development Pty. Ltd. a wholly-owned subsidiary of
Mitsubishi Corporation and is the holding company of Mitsubishi's mineral resources investments in Australia.
- Location:
Headquartered in Brisbane, Queensland, Australia (Coal Head Office of the BHP Billiton Group);
BMA has eight Central Queensland coal mines and an export terminal:

o Goonyella Riverside;
o Broadmeadow;
o Peak Downs;
o Saraji;
o Norwich Park;
o Gregory;
o Crinum ;
o Blackwater and
o the Hay Point coal export terminal near Mackay.

- Shareholding/Market Capitalization:
Under the joint venture agreement the two partners (BHP Billiton Ltd. and Mitsubishi Development Pty. Ltd.)
share equal ownership and management of the eight Central Queensland coal mines and the export terminal
At the end of December 2013, AngloGold Ashanti had 403,340,412 ordinary shares on issue and a market
capitalization of $4.73bn (2012: $12.02bn);
Post year-end, at 18 March 2014, the market capitalization was $7.65bn.

- Commodity Type:
Metallurgical coal has a total of eleven operations and a further two green-fields mines under construction in
Australia. Our assets produce high quality hard coking coal which is an essential raw material in the production
of steel. This high quality hard coking coal is produced from our low cost asset bases in Queensland
(predominantly open cut mines owned in an alliance with Mitsubishi Development Pty Ltd and Mitsui) and
New South Wales (100 per cent underground operations).

BHP Billiton Mitsubishi Alliance provides mining services and supplies coal products to the seaborne coking
coal market. The company owns and operates Bowen basin mines in Australia. It offers coking and thermal coal
products to customers in Japan, the United Kingdom, Europe, South America, Korea, Taiwan, India, and
internationally.
- Financials:
Production: In 2013, 4.11Moz of gold (2012: 3.94Moz) as well as 1.38Mlb of uranium (2012: 1.21Mlb)
and 3.30Moz of silver (2012: 2.36Moz);
Revenue : $5,708M(2013-Gold Income alone $5,497); $6,632M(2012-Gold Income alone $6,353M);
$6,925M(2011-Gold Income alone $6,570M);
Profit/Loss After Tax: -$2,200 (2013-Loss); $ 915M(2012-Profit);$1,633M( 2011-Profit);
Return on equity(2012): 18%,excludes hedge buy-back costs in years 2008 to 2010;
Cash flow:$1,246M (2013);$1,969M(2012);$2813M(2011)-net cash inflow from operating activities,
excludes hedge buy-back costs in years 2008 to 2010;
Total Cash Cost: $862/Oz(2012).

- Fixed Asset Situation:
Non-Current Assets(Tangible Fixed Assets):$4,815M(2013);$7,776M(2012) and $6,545M(2011)

- Leadership:
Malcolm Broomhead, Managing Director and Chief Executive Officer (BHP Billiton Mitsubishi Alliance)
Malcolm Broomhead was appointed President, Coal in May 2013. Dean has 36 years experience in BHP
Billiton. He was previously the President of the Uranium business for three years and prior to that held the
positions of Asset President Olympic Dam, Asset President of the Cannington silver mine and Vice President
Ports for Iron Ore. Dean was also the General Manager of the Appin, Tower and Westcliff Collieries for
Illawarra Coal. Dean has an electrical engineering background and holds a Master of Business Administration
from the University of Wollongong, NSW;

Marius Kloppers, Director (BHP Billiton Mitsubishi Alliance)
Marius Kloppers was appointed President, Coal in May 2013. Dean has 36 years experience in BHP Billiton.
He was previously the President of the Uranium business for three years and prior to that held the positions of
Asset President Olympic Dam, Asset President of the Cannington silver mine and Vice President Ports for Iron
Ore. Dean was also the General Manager of the Appin, Tower and Westcliff Collieries for Illawarra Coal.
Dean has an electrical engineering background and holds a Master of Business Administration from the
University of Wollongong, NSW;

Dean Dalla Valle, President, Coal (BHP Billiton Ltd.)
Dean Dalla Valle was appointed President, Coal in May 2013. Dean has 36 years experience in BHP Billiton.
He was previously the President of the Uranium business for three years and prior to that held the positions of
Asset President Olympic Dam, Asset President of the Cannington silver mine and Vice President Ports for Iron
Ore. Dean was also the General Manager of the Appin, Tower and Westcliff Collieries for Illawarra Coal.
Dean has an electrical engineering background and holds a Master of Business Administration from the
University of Wollongong, NSW;



- SWOT Analysis:
Strengths:
o Adherence to best practices in corporate governance underpins its sustained operations;
o Diversified operations on four continents i.e. South America, Africa, North America and Australasia;
o History of strong growth organically and through mergers & acquisitions;
o Long standing reputation for its expertise in gold mining;
o Sizeable technically skilled work force.

Weakness:
o Dwindling brand fortunes/reputation due to illegal labour practices i.e. unprotected protracted strikes in
South Africa especially.

Opportunities:
o Prospects for international expansion;
o Prospects of expanding its operations into the mining of minerals other than gold;

Threats:
o Dwindling gold reserves around the world;
o Dwindling global demand for gold for jewelry.

- Major Competitors:
1. Harmony Gold Mining Company Limited
2. Gold Fields Limited
3. Randgold Resources Ltd
4. Newmont Mining Corporation
5. Barrick Gold Corporation
6. BHP Billiton Limited

- References:
1. http://www.anglogold.com/About+our+business/Our+regions+and+operations.htm
2. http://www.slideshare.net/AfricanisCool/za-ang-2012fy?qid=d6a842d5-a5e9-49e6-a7c2-
72e8aded8b46&v=qf1&b=&from_search=1
3. http://www.slideshare.net/AfricanisCool/za-ang-2012fy?qid=d6a842d5-a5e9-49e6-a7c2-
72e8aded8b46&v=qf1&b=&from_search=1
4. http://www.anglogold.com/Additional/Press/2013/AngloGold+Ashanti+publishes+2012+annual+reports.htm
5. http://en.wikipedia.org/wiki/AngloGold_Ashanti
6. http://www.aga-reports.com/13/fs