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Anglo American agrees to combine nuGen™ with First Mode to accelerate Zero Emissions Haulage Solution
Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
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.
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock
Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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.
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
Katie Ryall Michelle Jarman
katie.ryall@angloamerican.com michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 8935 Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
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™ 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.
Date: 30-06-2022 04:00:00
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