Interim Results - Part 1

Anglo American PLC
8 September 2000

Part 1                                       

               ANGLO AMERICAN PLC REPORTS RECORD INTERIM RESULTS

*Headline profit increased by 77% to US$951 million and profit for the  period
increased by 123% to US$1,207 million;

*Total operating profit before exceptional items up by 72%, with significantly
improved  markets for platinum group metals, diamonds, base metals, paper  and
pulp;

*Major   acquisitions  announced  during  this  year  include  Tarmac  (US$1.9
billion),  Shell  Coal (US$850 million), further interests in Frantschach  and
Neusiedler (US$262 million) and Assi Sacks (US$490 million);

*Major disposals announced this year generate proceeds of US$1.5 billion;

*Industries, in addition to Financial Services, determined as non-core;

*Interim dividend of 60 US cents per ordinary share - an increase of 43% over
the 42 US cents dividend for the first half of 1999.

Mr  Tony Trahar, Chief Executive of Anglo American plc, said 'We are extremely
pleased  with  the  record  interim results which reflect  the  diversity  and
strength  of  Anglo American's earnings. In particular, there  were  excellent
performances  from  platinum,  diamonds,  base  metals  and  pulp  and  paper,
principally on the back of improved markets.
We have continued to focus on our core businesses and on delivering value from
our  recent  acquisitions.  Major progress has been  made  this  year  towards
disposals  of non-core businesses for US$1.5 billion. We are on track  towards
our strategic objective of a more focused global natural resource business.'

HIGHLIGHTS FOR SIX MONTHS TO 30 JUNE 2000    6 months  6 months   Year ended
                                                ended     ended     31.12.99
                                              30.6.00   30.6.99
US$ million except per share amounts
Group turnover and share of turnover of      10,312       9,769       19,245
joint ventures and associates
Total operating profit before                 1,608         934        2,142
exceptional items
Profit for the financial period               1,207         542        1,552
Headline profit* for the financial              951         537        1,308
period
Earnings per share (US$)                                                    
Profit for the financial period                3.09        1.43         4.03
Headline profit for the financial              2.44        1.41         3.40
period
Dividend for the period (US cents per            60          42          150
share)
See note 7 for basic of calculation of headline profits.


OVERVIEW OF RESULTS

At  the  Annual General Meeting on 16 May this year it was announced that  the
Board  had  decided to split the roles of chairman and chief  executive,  with
Julian Ogilvie Thompson becoming non-executive chairman and Tony Trahar  being
appointed chief executive, with effect from 18 July.
This change has come at the start of a new chapter for the company, with major
expansions  in  our mining and natural resource businesses and an  accelerated
and widened disposal programme of non-core assets. We must now ensure that we:

*deliver value from our recent acquisitions and integrate them effectively;
*continue to grow our core businesses organically and through acquisition;
*progress the timely disposal of non-core businesses for value;
*further increase focus on cost control; and,
*continue  developing a challenging and rewarding environment for  our  staff,
consistent with being a world class, global company.

Key Contributors
The  headline profit of US$951 million represents a 77% increase over the 1999
interim  results.  This  improved performance was principally  the  result  of
improved  markets for platinum group metals (PGMs), diamonds, pulp, paper  and
base metals.

Platinum became the largest contributor to headline profit on the back of very
strong prices, notwithstanding disruptions to production in the early part  of
the  year.  Considerable uncertainty over the status of  Russian  supplies  of
platinum  and  palladium  during the first half of  the  year,  together  with
physical  tightness  in  the  market  and strong  consumer  demand,  propelled
platinum  and palladium prices to new highs for the year. While in  the  short
term  prices may well retrace some of their gains, we remain positive for  the
outlook for PGMs in the medium term.

De  Beers  reported record sales of rough diamonds of US$3.52 billion,  a  44%
increase over the prior period. The strong performance was primarily driven by
continuing  healthy  demand in the US and restocking in the  trade  which  has
enabled  De  Beers  significantly to reduce its diamond stockpile.  De  Beers'
recent  announcements  on the outcome of its strategic  review  and  plans  to
increase its brand integrity and demand for gem diamonds were well received.

Pulp  prices have risen strongly recently, in turn boosting paper prices.  The
average price of eucalyptus pulp at US$593 per tonne was some 43% higher  than
for  the  same  period last year. This favourable environment,  together  with
increased  volumes  and  restructuring  benefits,  helped  increase  operating
profits from Forest Products by 67%.

Costs
The  continued  focus on cost cutting across all divisions  and  head  offices
resulted  in  major benefits.  Since 1 January 1999 general restructuring  and
rationalisation  of  employment structures have resulted  in  annualised  cost
savings  of around US$200 million per annum.  A further functional  review  of
our  Johannesburg, London and Luxembourg offices should yield additional  cost
savings of US$10 million per annum.

Expanding the Core Businesses
This half year has seen a number of expansions in our core businesses.
Following  the  acquisition in 1999 of Acacia Resources  for  US$443  million,
AngloGold announced investments in gold operations in Mali (Morila and Yatela)
and in Tanzania (Geita). The latter commenced production and is performing  in
line  with expectations. AngloGold has now significantly expanded its non-deep
level  mining production by 241,000 to 834,000 ounces in the six month  period
to 30 June 2000.

A  major  new expansion plan for our platinum division was announced by  Anglo
Platinum in May this year which will result in a 70% increase in production of
platinum to 3.5 million ounces per annum by 2006 at a cost of US$2.0 billion.

Although  the  operating  results  of our Industrial  Minerals  division  were
adversely  affected by poor weather and generally weak demand in the  UK,  the
US$1.9  billion  acquisition of Tarmac, completed  in  March,  has  been  well
integrated with our existing industrial minerals business. The sale of the  US
assets for US$636 million has exceeded expectations.

A  major new investment in coal was made with the acquisition of Shell Coal in
May  this  year  for  US$850 million. This strategic step  will  enable  Anglo
American  to  supply the important Indo-Pacific coal market from Australia  as
well as South Africa.

Our Base Metals division had an active first six months. In March we completed
the  acquisition  of the Zambian copper assets with the formation  of  Konkola
Copper Mines (KCM). Through our 51% interest in ZCI, we hold an effective  33%
interest  in  KCM, which will be a low cost copper producer of around  200,000
tonnes  per annum. Other activities included buying out the minorities in  the
Mantos  Blancos copper company in Chile for US$92 million, the approval  of  a
US$110  million expansion project at the Black Mountain lead and zinc mine  in
South Africa and the formal opening of the US$280 million Lisheen zinc mine in
Ireland.  In  September  the Board approved the US$454 million  Skorpion  zinc
project in Namibia which will further advance Anglo American's zinc strategy.

We  have  simplified our Forest Products division by buying out the minorities
in  Neusiedler  and increasing our stake in Frantschach to 70%.  In  addition,
Frantschach  acquired  Assi Sacks for around US$490  million,  making  it  the
world's  largest paper sack producer. The US$100 million expansion project  at
our  South African pulp mill operated at near capacity for the six months  and
contributed very pleasing results.

The Group continues to seek new business opportunities around the world.

Widened and accelerated disposal programme
Also at our AGM this year we announced that we would widen and accelerate  the
disposal  programme  of  businesses in the Industries  division.  This  is  in
addition  to  our  previously stated intention to dispose  of  our  stakes  in
Financial  Services. We have made progress in disposing of a number of  assets
including  Johnnic, McCarthy, Samcor, Ventron, Altron, and NF Die Casting  for
around US$400 million in total. Further disposals amounting to around US$1,100
million have been announced since 30 June.

E-commerce
On  14  May,  Anglo American together with 14 other leading mining and  metals
companies  announced  the  creation of an independent,  global  Internet-based
procurement  marketplace. This open, neutral and independent marketplace  will
create  a  platform to bring together mining and metal producers and suppliers
in more than 100 countries.

Outlook
The  outlook for the remainder of the year is positive. The steady  growth  of
the  US  economy, together with the recovery in Asian and European  economies,
indicates a stable demand for commodities. Low stock levels and ongoing  stock
drawdowns  continue to improve sentiment. The second half  of  the  year  will
include the first contribution from Anglo Coal Australia and Assi Sacks,  with
the  financing  of these acquisitions reflected in a significant  increase  in
debt and interest expense.

Harry Oppenheimer
It  is with great sadness that we record the death of Harry Oppenheimer,  past
chairman  of  Anglo American Corporation and Minorco from  1957  to  1982.  Mr
Oppenheimer  presided over a period of vigorous expansion of Anglo  American's
mining  and industrial operations both in southern Africa and internationally.
His  bold  leadership  and  wise  judgement which  characterised  his  seminal
contribution  to the company will never be forgotten. The Board and  staff  of
Anglo American express their heartfelt condolences to his family.

For further information, please contact:
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]

AA plc website: www.angloamerican.co.uk

Anglo  American  plc  is a global leader in the mining  and  natural  resource
sectors. It has significant and focused interests in gold, platinum, diamonds,
coal,  base  and ferrous metals, industrial minerals and forest  products,  as
well as financial and technical strength. The group is geographically diverse,
with  operations and developments in Africa, Europe, South and  North  America
and  Australia.  Anglo  American represents a  powerful  world  of  resources.

FINANCIAL PERFORMANCE
Total operating profit before exceptional items increased by US$674 million to
US$1,608 million. This increase was principally the result of improved markets
for  platinum group metals, diamonds, pulp, paper and base metals. The results
also  include  the  first contribution from Tarmac, which  was  acquired  with
effect  from  1 March. The improvement was partially offset by  a  higher  tax
charge.  Exceptional gains in the first half of 2000, arising mainly from  the
sale  of  investments  and non-core businesses, amounted  to  US$326  million.
Profit  for  the  period increased by 123% to US$1,207 million,  and  headline
profit, which excludes the impact of exceptional gains and the amortisation of
goodwill, rose by 77% to US$951 million.


Gold (operated by AngloGold, the company's independently managed subsidiary)
Total  gold  production at AngloGold for the first six  months  was  3,551,000
ounces,  an  increase of 3% on 1999. Despite this, operating profits  for  the
first  half of 2000 were US$207 million, a decrease of 11% compared  with  the
first  half  of 1999. The decline in operating profits was mainly  due  to  an
increase  in  total cash costs from  US$209 per ounce to US$214 per  ounce  as
well  as  a  reduction in the price received from US$312 to US$308 per  ounce.
Demand  for  gold remained healthy in all major markets and supplies  of  gold
from  central bank sales were absorbed without undue volatility. Lower  levels
of speculative trading and steady physical demand suggest an underlying market
support price of around US$270 per ounce.

On  26  June, AngloGold and Ashanti announced an agreement in respect  of  the
acquisition by AngloGold of a 50% interest in the Geita project in Tanzania.

On  3  July, AngloGold completed the purchase of an effective 40% interest  in
the  Morila  project  in  Mali from Randgold Resources.  The  construction  of
earthworks  has  started  at  the Yatela project  also  in  Mali,  with  first
production  scheduled for June 2001.  AngloGold and its partners  J.P.  Morgan
and  PAMP  (Produits Artistiques de Metaux Precieux) announced the  e-commerce
joint venture GoldAvenue and AngloGold also acquired a 25% stake in OroAfrica,
South Africa's largest gold jewellery manufacturer.

Platinum
Anglo  Platinum's  operating  profits of US$555 million  were  US$348  million
higher than in the first half of 1999. The increase was mainly attributable to
higher sales revenue, resulting from stronger platinum group metal prices  and
increased  sales  volumes, partially offset by a rise  in  on-mine  costs  and
royalties.  Platinum sales volumes exceeded those for the first half  of  1999
despite lower refined production.

A  combination  of  steady  demand for platinum,  palladium  and  rhodium  and
uncertainty about Russian supply patterns meant that prices in the first  half
of 2000 experienced volatility around historical highs.

The average realised platinum price of  US$500 per ounce for the six months to
June  2000  was  US$141 higher than that achieved in the first half  of  1999.
Palladium and rhodium prices were also significantly higher than last year  at
US$586  per  ounce  for palladium and US$1,701 per ounce for  rhodium  against
US$342 and US$864 per ounce respectively in the corresponding period in 1999.
Refined  production (including Northam) of 896,000 ounces of platinum  was  3%
lower  than  the  last year's corresponding period. This  was  due  to  severe
disruption of the mines' production by flooding resulting from heavy  rainfall
during  February and March, and a small build-up in pipeline stocks  following
production problems at the Waterval smelter during March.

At  Bafokeng  Rasimone,  both  the development of underground  operations  and
production  from  the opencast operation were affected by the heavy  rainfall.
The  project,  however,  remains on schedule  to  produce  250,000  ounces  of
platinum per annum from the underground operations from 2002. The concentrator
has  performed  better than planned following commissioning in December  1999.
The  Amandelbult UG2 expansion which came into production at the end of  June,
some  three  months ahead of schedule, is performing well. Lebowa's Middelpunt
Hill  project  was  commissioned at the end of July, some 10  weeks  ahead  of
schedule.  Together, these two projects will add a further 107,000  ounces  of
platinum production.

Crushing  capacity  continues  to  be an issue  at  Potgietersrust  Platinums.
Optimisation  of  the ore types combined with a reduced plant  throughput  has
resulted  in  improved  efficiencies. A final decision  with  respect  to  the
crushing capacity will be made in the second half of 2000.

Preparatory work has begun on the 162,000 ounce per year Maandagshoek project,
due  to commence production in 2004. Shaft sinking is anticipated to start  in
October once contract adjudication has been finalised.

Anglo  Platinum announced in May that it would increase its annual  production
by some 1.5 million ounces to some 3.5 million ounces by the end of 2006 at  a
capital cost of around US$2 billion. This will be sourced from a number of new
mines as well as expansion of existing operations.

Diamonds   (Operated   by  De  Beers,  the  company's  independently   managed
associate.)
Sales  of rough gem diamonds by The Diamond Trading Company, De Beers' selling
company,  were  44% higher than in the equivalent period in 1999.  This  sales
performance  was  underpinned  by  strong  consumer  demand,  particularly  in
America, and by restocking of the pipeline. As a result of these strong sales,
De Beers' stocks fell to US$2,712 million, a decline of US$1,277 million since
the end of 1999.

De  Beers finalised the purchase of Anglovaal Mining's 87.5% interest  in  the
Saturn  Partnership, which was followed by the acquisition  of  the  remaining
12.5% held by the Industrial & Commercial Holdings Group. As a result, 100% of
the earnings and cash flow of the Venetia mine have accrued to De Beers from 1
January 2000.

On  26 June, De Beers announced an offer to acquire Winspear Diamonds Inc.  in
Canada.  Following  an  increase in the offer  price  the  Board  of  Winspear
unanimously endorsed the offer which has now become unconditional having  been
accepted by shareholders holding over 90% of Winspear's issued capital. On  31
July,  De  Beers announced that it had conditionally acquired 19.9% of  Ashton
Mining  Limited and that it intended to make an offer for the remaining shares
in  Ashton.  Since that date Rio Tinto announced that it had  made  a  counter
offer  and  De  Beers  is considering its position. These  acquisitions  would
involve expenditure of around US$1.1 billion.

De  Beers'  strategic review process that took place in 1999  is  now  in  the
implementation  phase.  On  12  July, under 'Supplier  of  Choice',  De  Beers
announced a major change in its relationship with its sightholders,  with  the
objective of increasing retail demand for diamond jewellery.

Coal
Anglo Coal's operating profit for the six months to 30 June, at US$53 million,
was  13%  lower  than the US$61 million recorded in the first  half  of  1999,
mainly owing to a decrease of 7.6% in US dollar prices for export coal.

The  total  volume  of coal sales for the first half of 2000  was  30  million
tonnes, a decrease of 2.2% on 1999.

Market  conditions for internationally traded coal improved  relative  to  the
last six months of 1999 as prices moved upwards, driven by more robust demand.
The  first half of this year incorporated a mix of contract price settlements,
which  reflected the decline in prices during 1999 and spot price settlements,
which have improved progressively over the last six months.

The  upward  trend  in  spot prices has been most apparent  in  Europe,  where
competing suppliers of thermal coal have enjoyed some price increases. In  the
Far  East,  however, higher than anticipated sales by China during  the  first
half  have  stalled  the  recovery  in spot prices,  although  there  are  now
indications that Chinese and Australian thermal coal suppliers are  increasing
spot  prices. Prospects for price increases in the metallurgical  coal  market
have also improved, as a result of robust steel demand.

During  April, Heads of Agreement were concluded between Anglo Coal and  Sasol
Mining  for  the joint development of the Kriel South coal reserves.  Detailed
feasibility studies should be completed during 2001 and, subject to viability,
first  production  of coal should be in 2004. Coal production  resulting  from
this  co-operation  could reach 9-10 million tonnes per  annum,  destined  for
consumption  at  the Sasol synthetic fuels plant at Secunda in  South  Africa.
Anglo Coal's attributable production from this project will amount to at least
4.5 million tonnes per annum over a 20 year period.

In  Colombia, the Carbones del Cerrejon (CdelC) mine is expected to produce  3
million  tonnes in 2000. The initial expansion of the rail and  port  capacity
from 17 to 21 million tonnes per annum is complete. The feasibility study  for
a  further  expansion of the mine to 9 million tonnes and the  rail  and  port
capacity to 30 million tonnes per annum is close to being finalised. Following
the  purchase  of  Rio  Tinto's one-third interest  in  CdelC,  the  remaining
shareholders, Anglo Coal and Glencore, on-sold a one-third share to Billiton.

In  July 2000, Anglo Coal completed the purchase of the entire shareholding of
Shell  Coal  Holdings  Limited, which includes its Australian  and  Venezuelan
assets,  for  a  sum  of  US$850  million plus balance  sheet  adjustments  at
completion.

The  acquisition  of  Shell's  majority interest  in  the  Dartbrook  mine  in
Australia  and the minority interest in the Paso Diablo mine in  Venezuela  is
subject  to  finalisation  of negotiations with joint  venture  parties.  This
acquisition gives Anglo Coal some very long-life mines in Australia and access
to hard coking coal which is no longer available in South Africa in meaningful
quantities.  The purchase will be financed from international debt  facilities
and is expected to be earnings enhancing for the Group from 2002. In 1999, the
attributable  sales  tonnes  from  the Australian  and  Venezuelan  operations
amounted  to 17.3 million tonnes. This is expected to increase over  the  next
two  years to over 20 million tonnes per annum as a result of the purchase  of
further  participations in certain joint ventures of the Australian operations
and  as  Moranbah North ramps up to full production, thereby increasing  Anglo
Coal's total sales tonnes by some 40%.

Base Metals
The Base Metals division recorded an operating profit of US$128 million in the
first  half, US$71 million higher than in the corresponding period last  year.
Average  metal prices were generally well above those of the first six  months
of 1999. Bearish market sentiment, however, has meant that, with the exception
of  nickel, prices did not, as would have been expected, respond to the strong
economic  growth,  increased physical demand and a  significant  reduction  in
metal stocks.

The copper operations produced an attributable 225,000 tonnes of copper in the
first  six months and generated operating profits of US$91 million,  up  US$49
million  on  last year. The copper price averaged 80 US cents per pound,  well
above  the  65  US  cents  per  pound in the first  six  months  of  1999.  At
Collahuasi,  operations are running well. Production,  on  a  100%  basis,  at
219,000  tonnes  was in line with last year - but well ahead of  the  estimate
included  in the feasibility study - while unit cash costs of 40 US cents  per
pound were marginally higher, reflecting the anticipated grade decline in  the
concentrator  ore  feed  from  2.36%  to 1.93%.  A  future  expansion  in  ore
throughput  envisaged at the time of the acquisition of the  resource  and  in
response to declining grades, is being studied and a decision will be made  in
2001.  In  March,  the  Group, via its subsidiary Zambia  Copper  Investments,
acquired a 65% interest in Konkola Copper Mines, which acquired the assets  of
the  Konkola and Nchanga divisions, the Nampundwe pyrite mine, and  an  option
over  the  Nkana  smelter, refinery and acid plant, from  Zambia  Consolidated
Copper  Mines.  The Group's interest in Mantos Blancos was  increased  in  the
period  from  77.4% to 99.9% and the company will in due course  be  de-listed
from the Santiago Stock Exchange.

Attributable production at the nickel operations of 7,400 tonnes was  5%  down
on  the first half of last year mainly owing to adverse weather conditions  at
some  African operations. Operating profits of US$37 million for  nickel  were
164% higher than for the same period in 1999 as a result of the sharply higher
nickel price, which averaged US$4.27 per pound compared with US$2.24 per pound
in  1999. Production from Codemin was slightly higher than in the same  period
in 1999. The holding in Anaconda Nickel Limited, where commissioning and ramp-
up  of  the  operations  continues to advance,  has  been  increased  to  26%.
Construction  on the Loma de Niquel project is nearing completion  with  first
production forecast for the next quarter. The expansion project at Tati Nickel
Company, in which the Group has a 43.4% interest, was approved. Production  in
the  opencast  mine will be increased and a new concentrator installed  at  an
estimated  cost of some US$64 million. A feasibility study into the  potential
of  the wholly owned Barro Alto deposit in Brazil is currently underway and is
expected to be completed by the middle of next year.

The  zinc and lead operations produced an attributable 68,000 tonnes  of  zinc
and  43,000  tonnes  of  lead in the first six months  of  2000.  Zinc  prices
remained  subdued despite good demand and a continuing fall  in  stocks.  Lead
prices fell to a low of just under 18 US cents per pound in April, largely  as
a  result of the high level of exports from China, but have since recovered to
the 21 US cents per pound level. The zinc and lead operations as a whole broke
even  during the first half. The development of a new shaft at Black  Mountain
at  a  cost  of US$110 million was approved in May. The shaft will extend  the
life of the mine from 2002 to at least 2013. At Hudson Bay, work continues  on
the  development  of the 777 orebody and the upgrading of surface  facilities.
The  commissioning of the Lisheen mine is continuing; by the end of  June  the
mine  was  operating at about 70% of design capacity. The Skorpion project  in
Namibia  was approved by the Board in September and the feasibility study  for
the Gamsberg project in South Africa is progressing.

With  firmer  market  conditions  for its products,  Namakwa  Sands  generated
operating  profits  of US$12 million, much improved on the operating  loss  of
US$6 million recorded for same period last year.

Industrial Minerals
The Industrial minerals division increased operating profit from US$48 million
in  the  first half of 1999 to US$82 million in the first six months of  2000,
principally  due to the additional operating profits of US$45 million  arising
from  the  acquisition of Tarmac on 1 March, offset by a  goodwill  charge  of
US$12  million and restructuring costs of US$5 million. These results  do  not
include the profit earned by the US operations which will be accounted for  as
part of the sale proceeds of the business.

The  integration of Tarmac and the restructuring of the UK business  are  well
advanced  and  the  reduction in employee numbers as  part  of  the  projected
synergies should soon be reflected in cost savings. Production units are  also
being  rationalised  to  yield  further benefits.  The  disposal   of  the  US
operations was announced in August subject to regulatory approval. In the  UK,
the disposal of units required in terms of the undertaking to the Secretary of
State for Trade and Industry are nearing conclusion.

Trading conditions within the aggregates industry have been challenging in the
first  half year, particularly in the UK and central Europe. In the UK, demand
has  been  affected  by  unseasonal  weather  and  the  anticipated  increased
expenditure on road maintenance has yet to materialise. Substantial  fuel  and
bitumen  price  increases have occurred and it has not been possible  to  pass
these  increases  on in full to customers. This will be addressed  during  the
second half year. In Central Europe, demand has been adversely affected by the
shortage  of  both  public  and  private sector  funds  for  roads  and  other
infrastructure  projects. Operations in Spain continue  to  benefit  from  the
government's spending on infrastructure and in France the construction  sector
is showing strong growth.

The  feasibility study for the new cement plant project at Buxton is now under
consideration and planning approvals are awaited.

Cleveland Potash has recovered from the water inflow problems of last year and
potash  production  has increased by 33% compared with the  same  period  last
year.

In Brazil, Copebras' sales of phosphate fertiliser increased, offsetting lower
sales  of STPP. Profits for the six month period were ahead of last year  with
operating  profits of US$7 million compared with US$5 million  for  the  first
half of 1999.

The  agricultural industry in Brazil was affected by a drought in key  markets
in  the  first  half  of  2000. However, good demand  from  retailers  ensured
fertiliser  volumes increased to 146,000 tonnes, compared with 108,000  tonnes
in  the first half of 1999. In July, a US$134 million investment to expand the
industrial  phosphate fertiliser complex at the Goias site was approved.  This
is scheduled to commence production in May 2002.

Ferrous Metals
Operating  profits  of the Ferrous metals division at US$68  million  for  the
first  half of 2000 were significantly higher than the US$46 million  recorded
in the first half of 1999. This reflected a major recovery in the world market
for  steel  and  related products, although the steel market in  South  Africa
remains flat in line with the local economy.

Highveld  Steel staged a strong recovery in the six month period, recording  a
US$9  million  operating profit against a prior period loss of  US$6  million.
This  performance  was achieved despite a poor start to  the  year  caused  by
operating  problems resulting mainly from widespread heavy rains.  During  the
first six months world production of crude steel rose by 11% compared with the
equivalent  period last year. Highveld's average carbon steel  export  selling
prices for the six months were US$273 per tonne compared with US$223 per tonne
for  the prior year. Vanadium prices remained at low levels, averaging US$2.07
per  pound  against  US$2.09 per pound in 1999. Production  was  not  at  full
capacity as one of the three kilns was being modernised.

Columbus Stainless, in which Highveld, Samancor and the Industrial Development
Corporation each own a one-third interest, has turned the corner  and  is  now
generating  profits.  Saleable  production increased  to  231,000  tonnes,  an
increase of 25% compared with the corresponding period last year. The  average
price realised by Columbus for stainless steel increased sharply from US$1,014
to US$1,467 per tonne.

The  Group's  40%  share of Samancor's operating profit increased  from  US$29
million to US$39 million owing to higher chrome profits and the turnaround  at
Columbus.  Chrome  ore  profits were steady, while chrome  alloy  volumes  and
prices increased. The benchmark ferrochrome price rose from US$0.37 per  pound
in  June  1999 to US$0.47 per pound in June 2000. The share of chrome  profits
increased from US$12 million to US$18 million. Manganese profits were  steady.
In the first quarter, ferromanganese production was cut to help reduce stocks.
The  over-supply  situation  in the ferromanganese  market  is  however  still
adversely affecting prices and sales volumes.

Scaw's operating profits were US$15 million. Continuing heavy competition  has
resulted  in  export prices remaining weak but this will be  countered  by  an
intended  move  into  higher  value-added  steel.  The  wire  rope  and  chain
operations are performing well.

Catalao in Brazil maintained operating profits at US$6 million.

Forest Products
The  Forest  Products division's operating profits of US$189  million  compare
favourably with the US$113 million earned in the first half of 1999, mainly as
a result of higher prices achieved in strong global pulp and paper markets.

Mondi   South   Africa  achieved  significantly  better  results,   the   main
contributors to the improvement being sales of pulp and corrugated paper, with
increased price levels and larger export volumes. The US$100 million expansion
at the Richards Bay mill operated close to capacity and contributed additional
pulp  and  board production at healthy margins. The results have been  further
enhanced  by improved graphic paper sales prices and volumes, the benefits  of
further  restructuring  in the forest operations and  rationalisation  of  the
structural timber and mining supplies businesses.
Mondi  Europe also achieved higher profits, with improved selling  prices  for
pulp, corrugating paper and sack paper, increased volumes and cost reductions.
Mondi  Brazil  reported substantially higher earnings on the back  of  sharply
higher pulp prices at Aracruz.

In  May,  Mondi Europe announced the acquisition by Frantschach  Packaging  of
Assi  Sacks  from the Swedish paper group AssiDoman (including two  of  Assi's
sack  paper  mills,  all of Assi's industrial sack converting  operations  and
Assi's  barrier  coating  business) for a consideration    of  between  US$490
million  and     US$503  million, dependent upon the results  achieved  during
2000.  This  is a significant strategic step for Frantschach Packaging  as  it
facilitates  the  further consolidation of the sack sector within  Europe  and
should provide significant rationalisation opportunities in the years ahead.

Following  the  completion  of the Assi transaction,  Mondi  Europe  has  also
implemented  the  agreement  with  the other controlling  shareholder  in  the
Frantschach group for Mondi Europe to increase its participation from  50%  to
70%,  with  Mondi  Europe  assuming control. In  addition,  Mondi  Europe  has
purchased  Frantschach's 51% in Neusiedler, resulting  in  100%  ownership  of
Neusiedler  by  Mondi  Europe. The total cost to Mondi  Europe  of  these  two
transactions is US$262 million. Following these transactions, the  Frantschach
group  retains 100% of Frantschach Packaging, which will be its core focus  in
the  future,  and  also retains its interest in Europapier.  As  part  of  the
continued  reorganisation  of Mondi Europe, Frantschach's  interest  in  Pols,
which for some time has been identified as non-core, has been sold.

During August, Neusiedler acquired a 50% interest in and management control of
Ruzomberok, the Slovakian-based 300,000 tonne per year uncoated woodfree paper
producer.  This is a low-cost facility with its own integrated pulp mill,  and
significantly  strengthens Neusiedler's position in the  high  growth  western
European  uncoated  woodfree  paper markets. The  transaction  is  subject  to
regulatory approval.

Industries
It  was  announced  at  the  AGM in May that the remaining  companies  in  the
Industries  division  are non-core and will be disposed  of  accordingly.  The
division's  operating profit of US$139 million for the six months to  30  June
2000  was  US$60  million lower than for the same period last year.  This  was
mainly due a lower contribution from AECI following the sale of Polifin and  a
capital distribution of the proceeds to AECI shareholders.

In  South  Africa, AECI's operating profit declined to US$29 million from  the
US$49 million achieved for the first half of last year, mainly as a result  of
the  Polifin disposal as well as profits from explosives being squeezed  owing
to higher ammonia feedstock prices eroding margins.

The  Tongaat-Hulett  group contributed unchanged operating  profits  at  US$61
million.  The sugar division expects an improvement in profits in  the  second
half  of  2000  following stronger sugar prices and higher  crop  yields.  The
aluminium  division continues to increase its sales and profits in  line  with
increased  capacity.  The aluminium rolled products expansion  project  is  on
target  as  regards  total  cost and commissioning,  which  is  scheduled  for
September 2000.

Mine closures and exploration cutbacks continued to affect Boart's operations.
Profitability has, however, recovered with operating profit improving to  US$9
million  for  the  half year from US$3 million in the same period  last  year.
Improving  metal prices as well as a lower cost base following previous  cost-
cutting  are  contributing  to  better  prospects.  There  have  been   recent
improvements in sales of drilling equipment in Canada and grinding machines in
the  United States, though activity in the gold mining sector remains at a low
level.

LTA's  operating profit of US$20 million for the first six months of the  year
was  the  same as in the corresponding period last year. Anglo American's  68%
interest  in LTA has since been sold to the South African Aveng group  subject
to  certain conditions precedent, including the approval of the South  African
Competition Tribunal.

US-based Terra contributed a US$3 million operating profit compared with US$13
million for the corresponding period last year. It is encouraging, however, to
note  that  its business conditions have recently improved, with better  sales
prices  for  nitrogen  products and methanol. These  price  improvements  have
outweighed recent cost increases in natural gas.

Following  the  unbundling  of  Bevcon,  its  profits  are  no  longer  equity
accounted. The share of operating profit for the comparable period  last  year
was  US$21  million.  Dividends  on Bevcon's underlying  investments  are  now
included in investment income.

In  the six months to June, the Industries division disposed of several of its
interests,  including those in Johnnic, McCarthy, Ventron, Altron, Samcor  and
Ford Credit. Since June the division has announced the sale of its interest in
Dorbyl and a part of its interest in Li & Fung.

Financial Services
Financial  Services  is not regarded as a core business and  consideration  is
being  given  as  to how best to dispose of these investments. Accordingly  in
July, the Group announced the sale of its 25% interest in SA Eagle to majority
shareholder Zurich Financial Services for US$56 million.

The  division now consists substantially of the Group's 20.6% interest in  the
FirstRand  Group,  which contributed earnings during the half  year  of  US$49
million,  representing  an  increase of 9%  on  1999's  corresponding  period.
Banking-related  activities were responsible for  76%  of  operating  profits,
whilst the balance came from insurance and asset management.

Liquidity and Financial Position
Net  cash  provided  by operating activities increased by  US$264  million  to
US$1,068  million, principally owing to the higher operating profits  in  this
six months. Capital expenditure was US$604 million. Major projects include the
Bafokeng Rasimone mine in Anglo Platinum, and Loma de Niquel and at Hudson Bay
in Base Metals. Expenditure on acquisitions amounted to US$2,070 million. This
was  principally  owing to the acquisition of Tarmac. At  30  June,  cash  and
current asset investments amounted to US$3,715 million, while loans and short-
term  borrowings were US$6,034 million. The ratio of net debt to total capital
was 11%.


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