South African Mining Charter

Anglo American PLC
14 August 2002



   Joint Press release by Ministers Mlambo-Ngcuka, Erwin, Manuel, Mdladlana,
                                    Shabangu

             and representatives of Anglo American plc and De Beers


The Ministers and representatives of Anglo American and De Beers met by mutual
agreement and had a wide-ranging and open debate on the various options for
ensuring the full involvement of Historically Disadvantaged South Africans
(HDSAs) in the minerals industry of South Africa. All parties agreed that this
needed to happen as quickly as possible but in a way that enhanced the
contribution the mining industry could and should make to the ongoing
development of South Africa and our region.


Anglo American and De Beers confirmed their full support for programmes to
broaden employment equity and HDSA influence and ownership within the mining
industry and agreed to work with Government and the rest of the Industry to
ensure that the proposed Mining Charter should reflect these aims and looked
forward to negotiating the Mining Charter in a constructive and friendly
atmosphere in the months ahead. The Ministers stressed that the leaked 'draft
Charter' was a draft intended for discussion and all its aspects are negotiable
as there is common ground between Government and Industry on the need for
substantive change. The process with the stakeholders now in progress will
identify the need for progress in many areas and this will not be measured by a
single percentage target. The Ministers gave the further assurance that it was
not, and never had been, Government policy to nationalise the industry or any
part of it.


The parties fully supported the concept that majority HDSA owned companies would
soon evolve within the mining industry and come to be major players in their own
right or as partners with existing companies. Indeed there are already such
companies playing an increasingly important role within the industry. Anglo
American and De Beers look forward to working with more majority owned HDSA
companies in the future.


The parties also subscribed to the view that the success of the new Minerals
Bill will be determined by whether South Africa's mining industry succeeds or
fails in the international market places where it must seek a large part of its
investment and where it overwhelmingly sells its product. The emergence of the
mining industry was what had brought local and foreign investment to South
Africa over the last hundred plus years, and throughout the last century
foreigners particularly have been key investors in this sector. It is vital as
we aim to transform our industry and that it continues to offer investors
complete security and competitive returns.


The programme to broaden involvement and ownership by HDSAs within the mining
industry must not have the unintended consequence of undermining opportunities
or rewards for investors. To this end, the Ministers also gave the assurance
that any sale or transfer of ownership in the industry would take place in a
transparent manner and for fair market value.


The Ministers welcomed the approach taken by Anglo American plc and De Beers on
this issue and the parties committed themselves to ongoing discussions.


Everyone present at the meeting agreed that they had a shared vision of a
globally competitive mining industry that draws on the human and financial
resources of all South Africa's people and offers real benefit to all South
Africans and commit themselves to the realisation of that vision. The goal of
the empowerment charter must be to create an industry that will proudly reflect
the promise of a non-racial South Africa.



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