Iron Ore Project

Anglo American PLC
23 April 2007


News Release


23 April 2007




            Anglo American and MMX agree on sale of 49% interest in

                         MMX Minas-Rio Iron Ore Project





Anglo American plc ("Anglo American") and MMX Mineracao e Metalicos S.A. ("
MMX") are pleased to announce that they, together with Centennial Asset Mining
Fund LLC ("Centennial Asset"), a company controlled by Eike Batista, MMX's
controlling shareholder, have entered into an agreement in principle pursuant to
which a wholly-owned Luxembourg subsidiary of Anglo American would agree to
purchase 100% of the shares of Centennial Asset Participacoes Minas-Rio S.A. ("
Centennial Minas-Rio"), and subscribe for additional shares of MMX Minas-Rio
Mineracao e Logistica Ltda. ("MMX Minas-Rio"), in a transaction that would
result in Anglo American owning a consolidated 49% ownership interest in MMX
Minas-Rio.



MMX Minas-Rio is owned 70% by MMX and 30% by Centennial Asset. MMX Minas-Rio is
developing an integrated iron ore project consisting of (i) a number of iron ore
deposits in the State of Minas Gerais, Brazil, (ii) one or more slurry pipelines
and (iii) the ongoing development of an iron ore terminal in the state of Rio de
Janeiro to handle cape-size vessels (collectively the "Minas-Rio Project").



The transaction, which involves the purchase of 100% of Centennial Minas-Rio and
the making of capital contributions by Anglo American to MMX Minas-Rio, is
subject to final approvals by all parties including the independent members of
MMX's Board of Directors. This will result in Anglo American acquiring a 49%
interest in MMX Minas-Rio for an economic value and effective price of US$1.15
billion. The value paid by Anglo American would be divided into a cash payment
of US$704 million to Centennial Asset and subscription for MMX Minas-Rio shares
at the same price per share as paid to Centennial Asset.



The Minas-Rio Project is currently under development. Work is proceeding on
securing the permits required for the commencement of construction for the first
phase, with a planned annual production capacity of 26.5 million tonnes of iron
ore per annum ("Phase I") for start-up in the fourth quarter of 2009.  It is
anticipated that approximately US$2.35 billion of capital expenditure will be
required to complete Phase I of the Minas-Rio Project, to be provided from debt
financing and shareholders equity.



An expansion is planned to double the Minas-Rio Project capacity ("Phase II"),
subject to certain conditions, including MMX Minas-Rio confirming sufficient
reserves and obtaining the relevant permits.



Upon confirmation of Phase II of the Minas-Rio Project, Anglo American would
make an additional payment to Centennial Asset and a capital contribution to MMX
Minas-Rio, in the same manner as the initial payment, with a total economic
value and effective price of US$600 million, increasing Anglo American's
participation in MMX Minas-Rio to 50%. This would result in a total economic
value of $3.5 billion for 100% of the project, prior to giving effect of the
capital contributions described herein.



Signing of the definitive purchase agreements is subject to negotiation of the
transaction documents, customary regulatory approvals and completion of the
reorganization of MMX Minas-Rio with the creation of LLX Minas-Rio, as announced
by MMX on March 22, 2007.  This will result in Anglo American owning identical
shareholdings in both MMX Minas-Rio and LLX Minas-Rio, the companies that will
own the Minas-Rio Project mining and logistics assets, respectively.



Eike Batista, Chairman & CEO of MMX said: "We have always had a strong belief
that the Minas-Rio Project is one of the best development-stage iron ore assets
globally. Anglo American's agreement today confirms our views. MMX's association
with Anglo American would combine MMX's skill sets in Brazil with Anglo
American's globally renowned capabilities to develop and operate assets of the
dimension of the Minas-Rio Project. It was not only Anglo American's unique
reputation as a mining company but also the fact that we share common values
regarding environmental and social responsibility issues that made MMX decide to
choose Anglo American as the partner for its premier asset. I have been
impressed with the innovative, responsive and transparent approach that Anglo
American has shown. I look forward to building on the relationship that we have
established with Anglo American which I am confident will lead to great success
for both parties."



Cynthia Carroll, CEO of Anglo American said: "Iron ore is core to Anglo
American's future growth strategy and we are pleased to have taken this
important step in securing this partnership with MMX to develop such an exciting
iron ore project in Brazil, a country where we have long standing experience and
which is a major iron ore producing region of the world. The Minas Rio Project
has an extensive reserve base, a long projected mine life and will be a low cost
operation. I believe we are starting from an excellent platform with MMX
management who share our vision and values. MMX management are very experienced
operators and have achieved significant progress in a short period of time. This
project, together with the planned Kumba expansions, will add significantly to
Anglo American's iron ore production resulting in consolidated iron ore
production in excess of 100 million tonnes per annum in the next five years.
Anglo American and MMX will continue to evaluate the substantial expansion
potential of this deposit, in particular taking into account the extremely
positive long term prospects for the iron ore industry".



Credit Suisse and Itau BBA are the exclusive financial advisors to MMX and
Centennial Asset, and UBS Pactual is the exclusive financial advisor to Anglo
American.



For further information:



Anglo American plc

Investor Inquiries

Nick von Schirnding

Head of Investor and Corporate Affairs

Tel: [phone]



Charles Gordon

Tel: [phone]



Anna Poulter

Tel: + 44 207 968 2155



Media Inquiries

Kate Aindow

Tel: [phone]



Anne Dunn

Tel: [phone]












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