Acquisition

Anglo American PLC
12 March 2002





News Release
12 March 2002

               Anglo American plc acquires strategic holdings in

                                Kumba and Avmin



Anglo American plc ("Anglo American") is pleased to announce the acquisition,
subject to appropriate regulatory approvals, of significant shareholdings in
Kumba Resources Limited ("Kumba") and Anglovaal Mining Limited ("Avmin") which
will:


  • further its strategic objective of securing a meaningful interest in the
    iron ore sector;

  • accelerate the development of a world-class South African based iron ore
    champion; and

  • help to develop fully South Africa's iron ore potential.

Anglo American has acquired:


 1. 9.6% of Kumba in open market transactions, together with the right to acquire
    a further 10.5% of Kumba making 20.1% in total for a total cash
    consideration of R2.4 billion (US$220 million), equivalent to R40.61 per
    Kumba share; and

 2. 34.9% of Avmin for a total cash consideration of R1.6 billion (US$145
    million), equivalent to R41.08 per Avmin share.

As a global mining and natural resources company, Anglo American has sought for
some time to strengthen its existing mining interests with a significant
investment in the iron ore sector. Anglo American has strong confidence in the
South African mining industry and therefore has decided to reinvest a
significant portion of funds realised from the disposal of its non-core South
African interests in these two South African mining companies. Kumba and Avmin,
through Assmang Limited, have world-class iron ore portfolios, have attractive
growth profiles, present good value and will together provide Anglo American
with an effective US dollar/rand hedge.

Anglo American will be an anchor shareholder for both Kumba and Avmin and will
support, and where possible facilitate, managements' growth strategies. In
particular, Anglo American intends working with all stakeholders, including
Kumba, Avmin, the South African Government and appropriate black economic
empowerment groupings to:-


  • realise the full growth potential of the Kalahari iron ore resource;

  • help unlock the significant synergies of the Kalahari iron ore mines,
    together with Orex (owner of the Sishen Saldanha railway line) and the
    Saldanha Iron Ore Port facility; and

  • facilitate meaningful black economic empowerment. Anglo American is
    currently in discussion with empowerment parties.

Anglo American is fully committed to use its financial and technical resources
to grow the Kalahari iron ore mines and supporting infrastructure for the
benefit of all stakeholders.

Anglo American, Kumba and Avmin have a number of complementary business
interests in heavy minerals, coal, gold and base metals, which may also offer
further scope to unlock value for all stakeholders.

Tony Trahar, Chief Executive of Anglo American said, "These transactions provide
Anglo American with a meaningful interest in both companies and a strategic
entry point into the iron ore sector. We enjoy a constructive working
relationship with the management of Kumba and Avmin, together with the South
African Government, and look forward to continuing to work together to unlock
the full potential of these assets and resources. This development will be of
great benefit to the economy of South Africa as a whole, particularly at a time
when the country is seeking to stimulate growth and development and will provide
employment opportunities and boost foreign exchange earnings through exports. It
will also provide opportunities for advancing meaningful and sustainable black
economic empowerment."

For further information:

London:

Investor Relations

Nick von Schirnding

[phone]

Media Relations

Kate Aindow

[phone]

Johannesburg:

Investor Relations

Anne Dunn

[phone]



Media Relations

Marion Dixon

[phone]

Background Notes for Editors:

Anglo American plc is one of the world's largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and forest products. The
group is geographically diverse, with operations in Africa, Europe, South and
North America and Australia. (www.angloamerican.co.uk)



Kumba (www.kumbaresources.co.za)

Map: Refer to the website http://www.kumbaresources.co.za and then to '
Locations' .

Kumba Resources Limited ("Kumba") is listed on the JSE with a market
capitalisation of R14.2 billion (US$ 1.2 billion).

Kumba manages a portfolio of valuable world-class and potentially world-class
assets, which ensures that the company enjoys a leading international position
in the global minerals and metals arena. It has interests in Iron Ore, Heavy
Minerals, Base Metals, Coal and Industrial Minerals and spans three continents
rich in natural resources: Africa, Australia and Asia. The group structure of
Kumba is as follows:-



Iron ore is produced at two of its South African mines, Sishen Iron Ore Mine and
Thabazimbi Iron Ore Mine. Total Iron Ore output is 25 million tons, of which 19
million tons is exported. Kumba has one of the world's largest reserves of high
quality lump iron ore, with reserves of more than 800 million tons. Several high
potential feasibility studies, at various stages of completion, are currently
being conducted with a view to geographic expansion aimed at strengthening the
company's iron ore asset base. These include the iron ore projects of Hope Downs
in Australia (25 million tons a year) and Welgevonden (10 million tons a year)
in South Africa (near Sishen).

Kumba operates the largest open cast coal mine in South Africa and the largest
coal beneficiation facility in the world. The company's total coal production is
mined at three collieries in South Africa - Grootegeluk and Tshikondeni and
Leeuwpan. These collieries produce a total of 16.5 million tons of coal per
annum and are the lowest cost producers in South Africa.

Base metals assets consist of a 95% interest and management control of Namibian
based Rosh Pinah Zinc Mine which produces 73,000 tons of zinc concentrate and
25,000 tons of lead concentrate per annum. The zinc concentrate is used in the
company's zinc refinery, Zincor (situated in South Africa) which produces
110,000 tons of refined zinc and 170,000 tons of sulphuric acid per annum.
Zincor is one of the world's lowest cost refineries of zinc metal.

The company's Heavy Minerals assets comprise of a 46.8% stake in Ticor Limited
and 60% of the Ticor SA Heavy Minerals Project on the east coast of South
Africa. Ticor Limited is an Australian based minerals sands producer and owns
the remaining 40% of Ticor SA. The latter, which is in the commissioning stage,
will consist of a mine at Hillendale and a smelter both in the Kwa-Zulu Natal
Province. The operation is expected to produce 250,000 tons of titanium slag per
year by 2005, as well as zircon, leucoxene and rutile.



Avmin (www.avmin.co.za)

Map: Refer to the website http://www.avmin.co.za/operations/

Anglovaal Mining Limited ("Avmin") is a diversified mining and development
company with a wide range of mining assets. It is listed on both the JSE and the
LSE with a market capitalisation of approximately R3.8 billion (US$ 317.6
million). Avmin's operations are divided into Ferrous Metals, Base Metals and
Precious Metals. The group structure of Avmin is as follows:

Assmang Limited is listed on the JSE and operates in three divisions -
manganese, iron ore and chrome. Assmang mines one of the world's highest grade
and largest manganese deposits and produces manganese alloys in its own smelter.
A new shaft, which is expected to be commissioned in 2003, will reduce costs and
extend the life of the manganese mine by over 20 years at 1.5 million tons a
year. Assmang exports over 5 million tons of iron ore per annum and there are
major synergies with the Kumba operations. Assmang is expected to produce over
300,000 tons of chrome alloy a year after the recent ferro-chrome expansion was
successfully commissioned on schedule. The chrome ore feed is from Assmang's
chrome mine, one of the lowest cost producers in South Africa.

Assore Limited is a mining holding company listed on the JSE primarily engaged
in ventures involving base minerals and metals. Its principal asset is a 45.7%
stake in Assmang.

Chambishi Metals plc, based in Zambia, toll refines cobalt concentrates for
Konkola Copper Mines and Mopani as well as treating slag from the Nkana dump,
which it owns. Copper and sulphuric acid are by-products of production.
Chambishi is expected to become the world's largest primary cobalt producer.

The Nkomati Nickel mine is a joint venture with Anglo American, which owns the
remaining 25%. Nkomati is South Africa's only primary nickel producer and is one
of the world's lowest-cost producers of nickel. The mine produces over 4,000
tons of nickel a year with copper, cobalt and platinum group metals ("PGM's") as
by-products. The capital cost to construct this mine was paid back within two
years. A major expansion decision is to be made in the upcoming months, which
will increase production to over 18,000 tons of nickel and about 80,000oz of
PGM's per annum.

Avgold Limited is listed on the JSE and operates the ETC gold mine, which
produces 100,000oz a year. Avgold's Target mine has recently been commissioned
ahead of schedule and under budget and is expected to have a cash cost of less
than US$ 150/oz by 2003. Target is South Africa's greatest unexploited gold
resource and is expected to produce 350,000oz of gold per annum with the
possibility of increasing production to over 500,000oz a year for the next 40
years.

Avmin (55%) has formed a joint venture with Impala Platinum Holdings Limited
(45%) called Two Rivers Platinum (Proprietary) Limited. The mine is expected to
produce between 160,000 and 170,000 ounces of platinum group metals per annum
and has a mine life of approximately 20 years.



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