MMX Minas-Rio and MMX Amapa

Anglo American PLC
17 January 2008





News Release
17 January 2008
                          


       Anglo American enters into exclusive discussions to acquire control

             of the MMX Minas-Rio and MMX Amapa iron ore projects


Anglo American plc ("Anglo American") is pleased to announce that it has entered
into a period of exclusive discussions with the controlling shareholder of MMX
Mineracao e Metalicos S.A. ("MMX"), Mr Eike Batista ("Mr Batista"), in
relation to the acquisition of Mr Batista's 63.6% shareholding in a new company
("Newco") which will be demerged from MMX and will own MMX's current 51%
interest in the Minas-Rio iron ore project and 70% interest in the Amapa iron
ore project.  MMX's logistics business, LLX Logistica S.A., will also be
demerged from MMX as part of the same reorganisation, but will not be included
in the transaction with Anglo American.



Under the proposed transaction, Anglo American will pay approximately US$5.5
billion for 100% of the issued and outstanding shares of Newco, or approximately
US$361.12 per Newco share (assuming one Newco share for each current MMX share),
as well as royalty payments to MMX beginning in 2025 for the Minas-Rio project
and 2023 for the Amapa project.



The transaction is subject to a number of terms and conditions, including the
negotiation of the transaction documents, customary regulatory approvals and
completion of the reorganisation of MMX.



Anglo American has committed, after completion of this transaction, to extend an
offer to the minority shareholders of Newco at the same price per share offered
to Mr Batista, the successful completion of which would result in Anglo American
owning 100% of the Minas-Rio project, 70% of the Amapa project and 49% of LLX
Minas-Rio, the owner of the Port of Acu.  Anglo American acquired 49% of the
Minas-Rio project as part of its original investment announced in April 2007,
which included 49% of LLX Minas-Rio.



Cynthia Carroll, CEO of Anglo American, said: "I am delighted that Mr Batista
has agreed to Anglo American's proposed price for his shares in Newco and that
we are now in exclusive talks to acquire the Minas-Rio and Amapa iron ore
projects.  These two projects are a great strategic fit for Anglo American and,
together with the planned Kumba expansions, will significantly increase our
participation in the seaborne iron ore market to approximately 150Mtpa by 2017.
Our experience of working on the Minas-Rio project since last year has been
excellent and we are pleased to be developing such an exciting iron ore project
in Brazil.  Anglo American will continue to evaluate the substantial expansion
potential of these projects, particularly given the extremely positive long term
prospects for the iron ore industry."



Eike Batista, Chairman & CEO of MMX said: "I strongly welcome Anglo American's
globally renowned capabilities in developing and operating assets of this size
and I look forward to a productive ongoing relationship as Chairman of the
project boards of the Minas-Rio and Amapa projects as they reach their full
potential.  Our experience of working with Anglo American has reinforced my view
that Anglo American's world class expertise and its approach to environmental
and social responsibility issues positions it well to own and operate these
important assets in Brazil."



A further announcement will be made in due course.





For further information, please contact:



United Kingdom

James Wyatt-Tilby, Media Relations
Tel: [phone]

Anna Poulter, Investor Relations
Tel: [phone]


South Africa

Pranill Ramchander, Media Relations
Tel: [phone]





Notes to editors:



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 platinum group metals and diamonds, with significant interests in
coal, base and ferrous metals, as well as an industrial minerals business and a
stake in AngloGold Ashanti. The Group is geographically diverse, with operations
in Africa, Europe, South and North America, Australia and Asia.
(www.angloamerican.co.uk)



MMX Mineracao e Metalicos S.A. consists of integrated mining, mineral
processing, production and logistics operations for iron ore and intermediate
products for the steel industry.  Principal projects include, MMX Corumba
System, MMX Amapa System, MMX Minas-Rio System and LLX Logistica.
(www.mmx.com.br)



The Minas-Rio iron ore project is located in the Minas Gerais state in Brazil.
It will comprise a mine and beneficiation plant producing high-grade pellet
feed.  The pellet feed will be transported through a slurry pipeline to the Port
of Acu which is being constructed in Rio de Janeiro State, with the potential
for further pipelines and rail access.  The project is due to begin production
in H1 2010 with potential production of 26.5 million tonnes per annum from the
first pipeline. MMX currently owns 51% of the Minas-Rio project and Anglo
American acquired a 49% stake in the project in May 2007, including a 49% stake
in LLX Minas-Rio, the owner of the Port of Acu.



The Amapa iron ore project is located in the Amapa state in Northern Brazil.
Construction of the Amapa project was completed recently, with initial
production in December 2007 and with annual capacity of 6.5 million tons per
annum of iron ore. MMX currently owns 70% of the Amapa project and Cleveland
Cliffs Inc. owns 30%.



The resource statement for both the Minas-Rio and Amapa iron ore projects is
being updated in Q1 2008.





Summary transaction structure



It is envisaged that, subject to Anglo American and Mr Batista entering into
definitive agreements:



MMX will be divided into three separate companies: the first being Newco; the
second LLX Logistica S.A.; and the third, MMX, consisting of the balance of
MMX's assets and liabilities;



Anglo American will acquire Mr Batista's shares in Newco and, after completion
of this transaction, will extend an offer to the minority shareholders of Newco
at the same price per share offered to Mr Batista;



In addition to the US$5.5 billion price agreed for 100% of the issued and
outstanding shares of Newco, Anglo American has agreed that Newco will pay
royalty payments to MMX beginning in 2025 for the Minas-Rio project and 2023 for
the Amapa project;



Anglo American already owns 49% of the Minas-Rio project and 49% of LLX
Minas-Rio, the owner of the Port of Acu.  Newco will own the remaining 51% of
the Minas-Rio project and 70% of the Amapa project;



The successful completion of this transaction and the offer to Newco's minority
shareholders, will result in Anglo American owning 100% of the Minas-Rio
project, 70% of the Amapa project and 49% of LLX Minas-Rio, the owner of the
Port of Acu;



LLX Logistica S.A. will include the 51% stake in LLX Minas-Rio;



The third company, MMX, will consist of the balance of MMX's assets and
liabilities.




                      This information is provided by RNS
            The company news service from the London Stock Exchange             FVFBZBBB