New Acquisitions in Zambia

ANGLO AMERICAN PLC
27 October 1999

ISSUED BY THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ),
ZAMBIA CONSOLIDATED COPPER MINES LIMITED (ZCCM) AND
ZAMBIA COPPER INVESTMENTS LIMITED (ZCI)

ACQUISITION BY ZCI AND PARTNERS OF THE KONKOLA AND NCHANGA DIVISIONS OF ZAMBIA
CONSOLIDATED COPPER MINES LIMITED AND ITS NAMPUNDWE MINE

The  Government  of  the Republic of Zambia (GRZ), Zambia Consolidated  Copper
Mines Limited (ZCCM) and Zambia Copper Investments Limited (ZCI), a subsidiary
of  Anglo  American plc, announce that they have ratified Heads  of  Agreement
(HOA)  regarding the acquisition from ZCCM by ZCI and partners, through a  new
company to be formed, of an 80% interest in the assets of the Konkola Division
(including  the Konkola Deep Mining Project), the Nchanga Division  (including
the Chingola Refractory Ore) and the Nampundwe pyrite mine.

A  detailed  timetable  has been included in the HOA  with  the  objective  of
achieving Close of this transaction by 31 January 2000.

In  addition  to  a  5%  free and 15% repayable carried interest  in  the  new
company,  ZCCM will receive a cash consideration of US$30 million  payable  at
Close,  a  deferred consideration of US$60 million and the benefits of  copper
and  cobalt price participation schemes with a cap of US$125 million over  the
life of the company.

The  new company will, subject to the terms of a Development Agreement  to  be
concluded,  be committed to capital expenditure of US$208 million  during  the
first  3 years and will commence the implementation of the Konkola Deep Mining
Project,  at  a  cost of US$523 million, within 18 months of  Close,  provided
satisfactory  long  term, limited recourse project finance  is  available  and
other objective criteria, as agreed to by the parties, are satisfied.

Negotiations  and  drafting of the Development Agreement and  other  necessary
Agreements  between  the parties, which will set out the  full  terms  of  the
transaction, are well advanced and are expected to be concluded before the end
of the year.

In  addition to acquiring the aforementioned assets, the new company will have
an  option to acquire the Nkana smelter and refinery, which will be managed by
Anglo  American plc during the option period.  ZCCM intends to sell the  Nkana
mines,  concentrator  and  cobalt  plant as  a  separate  package  within  the
timetable  for  this transaction, but in the event a sale  is  not  concluded,
Anglo American plc will manage these assets as well.

In  a  parallel transaction, ZCI has agreed to sell its 27.3% interest in ZCCM
to GRZ for US$30 million on a deferred payment basis.

These  transactions  are  subject to obtaining all  necessary  regulatory  and
shareholders' approvals.  In respect of the latter, ZCI shareholders  will  be
informed by way of a circular which, inter alia, will address the financing of
the  initial investment.  Similarly, ZCCM will inform its shareholders by  way
of a circular.

Meanwhile,  ZCI  has a continued presence of over 20 technical  and  financial
personnel on the Copperbelt and plans to increase this number in the period to
31 January 2000.

Mr  Shalaulwa Shimukowa, Chairman of ZCCM said: 'This is a welcome development
in  the  privatisation of ZCCM, to which all stakeholders are  committed,  and
augurs  well  for  the  future of the mining industry and  sustenance  of  the
national  economy.  It ushers in a new era in the mining industry and  in  the
new role of ZCCM as an investment holding company.'

Commenting  on  the  agreement,  the Chairman of  the  GRZ/ZCCM  Privatisation
Negotiating Team, Mr Francis Kaunda, said: 'With the imminent sale of Mufulira
Division and the conclusion of negotiations of the sale of the assets in  this
transaction,  the  complex privatisation of ZCCM will be accomplished  at  the
beginning of the new millennium.'

Jack  Holmes,  Chairman of ZCI, said the Company looked forward to  completing
the  transaction  and  commencing the process  of  reinvestment  and  economic
recovery of the mines.  He went on to say:  'The proposed transaction  differs
materially from that contemplated when Codelco was expected to join ZCI  in  a
partnership,  in  that the package of assets to be acquired  and  the  initial
funding  requirement  are smaller and the projected returns  enhanced.   Thus,
while the equity involvement of the International Finance Corporation (IFC) is
still  required, the reduced scale means the earlier pre-condition of a  major
mining partner falls away.'

Enquiries:

London (Anglo American plc)
Mr Nick von Schirnding        Ms Misha Naglemackers:
Tel: [phone]         Tel: [phone]

Johannesburg (Anglo American Corporation/ZCI)
Mrs Anne Dunn                 Mrs Glen Finnegan
[phone]               [phone]
[phone]           [phone]


Lusaka:
Mr Francis Kaunda
Chairman of the GRZ/ZCCM Privatisation Negotiating Team
[phone]