Release of Circular

Anglo American PLC
Zambia Copper Investments Limited
15 March 2000


ANGLO AMERICAN AND ZCI CONFIRM RELEASE OF CIRCULAR TO ZCI SHAREHOLDERS:
KONKOLA COPPER MINES TRANSACTION AND DISPOSAL OF SHARES IN ZCCM
  
Anglo American plc (Anglo American) and its subsidiary Zambia Copper
Investments Limited (ZCI) are pleased to announce that their respective boards
of directors have approved the release of a circular to ZCI shareholders
providing details of the proposed Konkola Copper Mines transaction and the
disposal of shares in Zambia Consolidated Copper Mines Limited (ZCCM).

The release of this circular is an important step in the process to closure of
the transactions and reflects the significant progress made towards fulfilment
of the conditions precedent to the Sale and Purchase Agreement.  Subject to
the fulfilment of the remaining conditions, which include the approval of the
ZCI shareholders, completion of the transactions is now scheduled to occur on
31 March 2000.  Anglo American intends to procure that its interest votes in
favour of the transactions at the Special General Meeting to be held on 29
March 2000.

The Konkola Copper Mines transaction includes the acquisition from ZCCM, by
Konkola Copper Mines PLC (KCM), a subsidiary of ZCI in which International
Finance Corporation (IFC) and CDC Group plc (CDC) will each hold 7.5 per cent
(refer below), of the assets of the Konkola Division, the Nchanga Division
(including the Chingola refractory ore stockpiles) and the Nampundwe pyrite
mine, and the granting to KCM of an option over the Nkana smelter, refinery
and acid plant.  In a related transaction, ZCI will dispose of its 27.3 per
cent interest in ZCCM.

Key features of the ZCI circular are given below.

1.   Rationale for the transactions
  As part of a general liberalisation programme designed to encourage
  development in Zambia and attract foreign investment, which has included
  the removal of exchange controls and the restructuring of the tax regime,
  the Government of the Republic of Zambia (GRZ) embarked on a major
  privatisation programme. This acquisition is an important element of that
  programme, which recognises the need for the introduction of private sector
  management and new investment to return the existing assets to
  profitability and facilitate the development of the Konkola Deep Mining
  Project (KDMP).
  
  The Konkola Deep deposit, with ore reserves of 100 Mt grading 4.33 per cent
  copper and ore resources of 55 Mt grading 3.13 per cent copper, is expected
  to produce an average of 210 ktpa of copper for at least 23 years. The ZCI
  directors recognise the cyclical nature of the copper price and believe
  that a long mine life serves to mitigate this risk. The ZCI directors
  believe that the existing operations can be returned to profitability
  within a reasonable period and, combined with the long life KDMP, provide
  ZCI shareholders with an opportunity to invest in a major long life, low
  cost, copper mining project. However, the ZCI directors also recognise that
  the profitability of KCM's operations is highly sensitive to copper prices
  on the world's commodity markets.
  
2.   The Acquisition
  At completion, KCM will be owned as to 65 per cent by ZCI and 20 per cent
  by ZCCM. ZCCM's interest in KCM comprises a 5 per cent free carried
  interest and a 15 per cent repayable carried interest.
  
  ZCI has invited IFC and CDC to acquire 7.5 per cent each of KCM.  The
  participation of these organisations, which is a condition to completion,
  is subject to the approval of their respective boards.
  
  
  In addition to its 20 per cent interest in KCM, as consideration for the
  assets, ZCCM will receive from KCM a cash consideration of US$30 million
  payable at completion, a deferred cash consideration of US$60 million
  (payable in six equal annual instalments commencing on 1 January 2006) and
  the benefits of copper and cobalt price participation schemes (payments
  under which are subject to aggregate maximum caps of US$16 million per
  annum and US$125 million over the life of the schemes).  The US$30 million
  cash consideration payable by KCM will be funded by the capital
  contributions of KCM's shareholders (excluding ZCCM).  It is anticipated
  that the deferred cash consideration of US$60 million and any payments
  under the schemes will be funded from cash generated by KCM's operations.
  
  KCM will, subject to the viability of the operations, be committed to
  capital expenditure of US$208 million during the first three years
  following completion. This commitment is subject to proportional reduction
  if, at KCM's discretion, it chooses to close down or significantly curtail
  operations temporarily or permanently, for reasons including, inter alia,
  the occurrence of certain force majeure events or adverse economic
  circumstances. KCM's forecast capital expenditure for the first three years
  following completion (excluding KDMP) is expected to be US$260 million.
  
  The requirements of KCM in respect of working capital and capital
  expenditure (other than finance to be raised in respect of KDMP) will be
  funded by a combination of shareholder contributions (excluding ZCCM) and
  funds generated from KCM's operations. KCM will also be committed to
  commencing the implementation of KDMP at an expected cost of US$523 million
  within 18 months of completion or as soon thereafter as financing of up to
  US$313 million is available as limited recourse project financing on
  acceptable terms and if the price of copper has exceeded an average of
  US$1,700/t for a 12 month period. The ZCI directors anticipate that the
  balance of the KDMP funding will be sourced from cash generated from the
  operations.
  
  The ZCI directors are giving consideration to the most appropriate means of
  raising the necessary long-term capital requirements of ZCI. Anglo American
  will procure, on terms to be agreed, financial facilities sufficient to
  meet ZCI's share of the funding requirements up to a maximum of US$310
  million.
  
  The Assets to be acquired
  The Assets to be acquired pursuant to the Sale and Purchase Agreement
  comprise the following copper and cobalt mining and processing facilities:
  - the Konkola Division;
  - the Nchanga Division, including the Chingola refractory ore stockpiles;
  - the Nampundwe Mine; and
  - infrastructure associated with the above facilities, including the
    Konkola, Nchanga and Nampundwe concentrators and the Nchanga tailings
    leach plant.
  
  In addition, KCM will have an option to acquire the Nkana smelter, refinery
  and acid plant as described below.
  
  The Option
  In addition to acquiring the assets, KCM will have a five year option to
  acquire the Nkana smelter, refinery and acid plant, which will be
  transferred prior to completion to a newly formed, wholly owned subsidiary
  of ZCCM and managed by Anglo American prior to exercise or lapse of the
  option. In the last two years of the option period, ZCCM will be free to
  sell the smelter, refinery and acid plant, subject to KCM having a pre-
  emption right. The option price will be US$7 million (expressed in January
  2000 money terms).
  
  It is a condition of completion that ZCCM procures that its subsidiary has
  a loan facility of US$81 million in place to enable management to effect
  the necessary refurbishment of the managed assets and to satisfy the
  company's working capital requirements. If the option were to be exercised,
  KCM would assume the obligation to service the loan.

3.   The Disposal
  In a parallel transaction, ZCI has agreed to sell its 27.3 per cent
  interest in ZCCM to GRZ at completion for a cash consideration of US$30
  million (expressed in January 2000 money terms) on a deferred payment basis
  payable in six equal annual instalments commencing on 1 January 2006. The
  disposal is conditional upon completion of the Sale and Purchase Agreement
  and the approval of ZCI Shareholders.
  
Enquiries:

Glen Finnegan            Anne Dunn
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