Disposal

Anglo American PLC
09 August 2004


News Release


9 August 2004



        Anglo American disposes of portion of stake in Terra Industries


Anglo American plc ("Anglo American") has sold 12.5 million shares of Terra
Industries Inc. ("Terra"), or 16% of its outstanding capital stock, to an
investor group led by Perry Capital for an aggregate cash consideration of US$67
million.  Anglo American now holds 25.1 million common shares of Terra, or 32%
of its outstanding capital stock.


Shareholders are also referred to the announcement today by Terra and
Mississippi Chemical Corporation ("Mississippi Chemical") that those two
companies have reached agreement for Terra to acquire Mississippi Chemical for
approximately US$268 million. Terra will fund the acquisition through a
combination of cash, debt and the issue of common and preferred stock.   The
issuance of additional Terra stock in that transaction would reduce Anglo
American's percentage holding to approximately 25% of the outstanding capital
stock.


Anglo American will continue to evaluate future opportunities for disposing of
its interest in Terra, based on market conditions and other considerations.





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