Barro Alto nickel project - first production

RNS Number : 0254E

Anglo American PLC

31 March 2011


31 March 2011
Anglo American delivers first production from Barro Alto nickel project in Brazil

Anglo American announces that it has delivered first production on schedule from its US$1.9 billion Barro Alto nickel project in Brazil. The Barro Alto nickel project is the first of Anglo American's four major strategic growth projects to begin production and will be a key contributor to Anglo American's 50% volume growth by 2015.

Walter De Simoni, CEO of Anglo American's Nickel business, said: "We have achieved our first metal on schedule. This new nickel plant will reach its full production capacity in the second half of 2012 and will average 41,000 tonnes per year of nickel over its first five years of full production, making use of our low risk and proven technology and rotary kiln electric furnace process."

Cynthia Carroll, Chief Executive of Anglo American, said: "The delivery of first metal from Barro Alto is a major milestone as we develop a number of world class projects and drive 50% volume growth by 2015. Barro Alto will more than double production from our Nickel business, has a long life from its extensive resource base and a highly competitive cost position in the lower half of the cost curve. The safety performance of this project has been particularly impressive and was recognized as the safest mine in Brazil, with over 13 million LTI-free man-hours worked to September 2010."

Anglo American has the potential to increase production of nickel by an additional 66,000 tonnes per year, with further upside potential, from its unapproved projects in Brazil, Jacaré and Morro Sem Boné, leveraging the Group's considerable nickel laterite technical expertise.

Notes to editors:

Barro Alto is committed to social and environmental sustainability. Barro Alto has created strong partnerships with the Barro Alto community in order to reduce the impact of its operations over the city, implementing a number of cultural and small-business development programmes. Barro Alto has also placed great emphasis on reducing water consumption, creating a closed circuit which limits evaporation losses to 5%, and reusing rainwater in all of the project's industrial processes. More than US$12 million has been invested in environmental preservation initiatives.

Since the initiation of the project in 2006, Anglo American has invested more than US$5 million in the city of Barro Alto's basic infrastructure, such as schools and hospitals, training programmes for teachers and professional courses, as well as partnerships with NGOs such as Reprolatina, CARE Brasil and Agenda Pública. Among the projects supported are educational and cultural initiatives to promote sexual and reproductive health.

Anglo American plc is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American's portfolio of mining businesses spans precious metals and minerals - in which it is a global leader in both platinum and diamonds; base metals - copper and nickel; and bulk commodities - iron ore, metallurgical coal and thermal coal. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia. www.angloamerican.com

For further information, please contact: