Zondagsfontein Coal Project

Anglo American PLC
07 December 2007





News Release


7 December 2007


      Anglo American announces approval of the Zondagsfontein coal project



Anglo American plc is pleased to announce the approval of the US$505 million
Zondagsfontein coal project in South Africa, the first major project for Anglo
Inyosi Coal (AIC).  AIC, 73% owned by Anglo Coal and 27% by Inyosi, is a Black
Economic Empowerment company created earlier this year as part of Anglo Coal's
second wave of empowerment. Inyosi's shareholders will include the Lithemba
Consortium, Pamodzi Coal, WDB Investment Holdings and local mine community
trusts.  The project is situated near the town of Ogies in the Mpumalanga
Province of South Africa.



The Zondagsfontein project comprises the following:



  • A multi-product operation, positioned in the lowest quartile of the cost
    curve, delivering 6 million tons per annum (Mtpa) from its underground mine
    and opencast pit over a life of 20 years, consisting of 3 Mtpa of thermal
    export product and 3 Mtpa of domestic product; coal reserves are in excess
    of 250 million tons;



  • A washing plant, known as the Phola Coal Processing Plant, a 50:50 joint
    venture between AIC and BHP Billiton Energy Coal South Africa Limited (BHP
    Billiton). The plant will be fed equally from the Zondagsfontein Project and
    BHP Billiton's Klipspruit Colliery. It will be constructed by Anglo Coal and
    jointly managed by AIC and BHP Billiton.



Preparation of the site has begun, and construction is planned to start in early
2008, with production commencing in the second half of 2009, reaching full
production by 2011.



It is envisaged that this project will create employment for more than 1,000
people when completed, in addition to contributing substantially to the economic
development of the region through infrastructure development and providing
procurement opportunities for local businesses.



John Wallington, CEO of Anglo Coal, said "This is indeed a vote of great
confidence by Anglo American in this first Anglo Inyosi Coal project and in
Anglo Coal's growth strategy in South Africa".







For further information, please contact:



London


Investors:                                           Media:
Anna Poulter                                         James Wyatt-Tilby
Tel: [phone]                                Tel: [phone]

Johannesburg


Media:
Pranill Ramchander
Tel: [phone]
Mobile: [phone]









Notes for editors:



Anglo American plc is one of the world's largest mining and natural resource
groups. Together 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)



Anglo Coal, a wholly owned division of Anglo American plc, announced earlier
this year that it had created Anglo Inyosi Coal, an empowered coal company
housing key current and future domestic and export focused coal operations.
Anglo Coal signed the transaction completion agreements with Inyosi, a
broad-based BEE consortium on 28 November 2007.  In terms of the agreement,
Inyosi will acquire 27% of Anglo Inyosi Coal, creating a company valued at R7
billion and incorporating several key Anglo Coal assets, namely Kriel Colliery
(an existing mine) and the Elders, Zondagsfontein, New Largo and Heidelberg
projects.



Inyosi is led by the Lithemba Consortium and Pamodzi Coal and has a beneficiary
base that will benefit in excess of 27,000 individuals, the majority of whom are
female historically disadvantaged South Africans (HDSA's). WDB Investment
Holdings will also be a shareholder and Anglo Inyosi Coal will create an
independent broad-based community trust that will benefit HDSA communities
around its operations and other marginalised and impoverished communities in
South Africa. These broad-based groups will receive an annual allocation of up
to R5 million to enable the initiation of socio-economic community based
projects.


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            The company news service from the London Stock Exchange