Preventive actions

Surviving the crisis

As a company that is constantly looking to the future, Anglo American Brasil decided in conjunction with its headquarters to adopt some preventive and cost reduction actions for the purpose of adjusting production levels to the new market conditions. All Anglo Base Metal activities in Brazil (Codemin, Mineração Catalão, Copebrás-Cubatão e Copebrás-Catalão/Ouvidor) were maintained, as will as the Barro Alto Project. However, some adjustments were required, such as the postponement for 12 months of the Barro Alto Project and the pre-feasibility studies for Jacaré and Morro Sem Boné.

In 2009, the following projects for the Base Metal plants were postponed:

Copebrás-Catalão/Ouvidor – Acidulation Plant Project;

Copebrás-Cubatão – Replacement of Ucego filter;

Mineração Catalão – Implementation of the magnetic separator, increase in ore processing capacity, development of underdog mine (carbonatite);

Codemin – Codemin 3 Project, for increase in the calcination oven capacity and new multi-fuel burner.

Vacations were given to some of the employees in the phosphate production units, as had been done in prior years due to the market’s seasonality and the reduction in consumption of fertilizers and animal feed. No significant reductions in personnel occurred in any of the company’s units as a direct result of the downturn.

The layoffs that occurred resulted from planned adjustments in processes implemented by the company due to favorable market conditions, such as the temporary suspension of eucalyptus planting activities at the Codemin farms in Goiás.