Expansion at Merebank

Anglo American PLC
29 September 2003


News Release


29 September 2003


Anglo American announces US $150 million upgrade at Mondi South Africa's
Merebank paper mill



Anglo American plc ("Anglo American") will proceed with a US$150 million
conversion and expansion of paper machine 1 (PM1) at its Merebank paper mill, in
KwaZulu-Natal, South Africa. The announcement was made at a briefing in Durban
today attended by South Africa's Trade and Industry Minister, Mr Alec Erwin.



The project will include upgrading of most parts of the existing PM1 and thus
increase the capacity for competitive production of uncoated woodfree paper
grades. The production of magazine paper grades on PM1 will be discontinued.
Additional cutting capacity for the conversion of woodfree paper reels to A4
sheets will be installed as well.  The mill's annual production of uncoated
woodfree paper will increase from its current 274,000 tonnes to 524,000 tonnes
by 2006.



A further amount of US$44 million will be invested in an emission reduction
programme. As a first step, this will incorporate flue gas desulphurisation of
the existing coal fired boilers at a cost of US$7 million. Mondi will also be
proceeding with the installation of a US$37 million multi-fuel boiler as a
subsequent stage in an overall plan which includes :



•         converting an existing oil fired boiler to gas

•         decommissioning one high-pressure oil fired boiler and replacing it
          with a new low-pressure gas fired boiler

•         retiring the two remaining standby oil fired boilers following the
          installation of the new multi-fuel boiler



The combined impact of the plan will result in a 66% reduction in SO2 emissions
from the mill.



Andrew Thompson, Chairman and CEO of Mondi South Africa, said, "This significant
development at the Merebank mill is an important further step in Mondi's
strategy to grow our business in value-added cut paper grades, based upon our
globally competitive eucalyptus forestry and pulp production base.  Our markets
for cut paper have shown consistent growth for several years, although they are
subdued at present.  This project will capitalise on our market position and
significantly increase exports, in the case of Europe and other important
markets, exclusively through the well-established international marketing
network of Mondi Europe's Neusiedler.


The measures to reduce environmental emissions have been developed after
evaluation of all the options and in close consultation with relevant
stakeholders.  They also take into consideration common practice in highly
developed countries, even in the most environmentally sensitive areas.



We much appreciate the constructive role played by Government to support both
this industrial investment and thus sustainable development in this province of
South Africa."



Ends





For further information:



Anglo American - London
Investor Relations                                        Media Relations
Nick von Schirnding                                       Kate Aindow
Tel:  [phone]                                    Tel:  [phone]

Anglo American - Johannesburg
Investor Relations                                        Media Relations
Anne Dunn                                                 Marion Dixon
Tel:  [phone]                                     Tel:  [phone]



Background note



Mondi South Africa forms part of Anglo Paper and Packaging, a division of Anglo
American plc.  Anglo Paper and Packaging contributed 21% to Anglo American's
headline earnings for the six-month period to 30 June 2003, making it the second
largest contributor to the Anglo group.  Headline earnings rose by 16% from
$153 million to $178 million.  Anglo Paper and Packaging's operating profit was
$357 million, 23% higher than for the first six months of 2002, with Mondi South
Africa contributing $97 million and Mondi Europe $260 million



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 paper and packaging.
The group is geographically diverse, with operations and developments in Africa,
Europe, South and North America and Australia. (www.angloamerican.co.uk).














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