Barro Alto nickel project

Anglo American PLC
07 December 2006




News Release


7 December 2006



         Anglo American approves $1.2 billion Barro Alto nickel project


Anglo American announces the approval of the Barro Alto nickel project in
Brazil, at an estimated capital cost of $1.2 billion.


Barro Alto will produce an average of 36,000 tonnes of nickel per year in the
form of ferronickel over a minimum 26 year mine life. Construction of the Barro
Alto facilities is scheduled to begin in 2007 with production commencing in 2010
and ramping up to full capacity during 2011.


Barro Alto is located in the State of Goias in Brazil, about 170km north-west of
Brasilia, 240km north of Goiania and 150km from Anglo American's existing
Codemin nickel operation. The Barro Alto nickel deposit was discovered in the
late 1960s and Anglo American completed its purchase of the deposit for $35
million in 2002. A feasibility study was initiated in 2004 and completed in
September 2006.


The deposit contains resources of 116.2 million tonnes, at an average grade of
1.54% nickel, of which 62.4 million tonnes at an average grade of 1.66% nickel
will be mined by conventional open pit methods and treated over a 26 year
period.


Part of the Barro Alto deposit is currently being mined to feed Anglo American's
Codemin plant in Niquelandia, Goias. Ore from Barro Alto is trucked to
Codemin for processing in the existing facilities. This has successfully
extended the life of Codemin and permitted an increase in production from 6,000
to 10,000 tonnes per annum, allowing Codemin to benefit further from the strong
nickel price. Barro Alto ore will continue to be transported to Codemin
throughout the life of the newly approved Barro Alto project. The experience
gained in mining and treating Barro Alto ore at Codemin significantly reduces
the technical risk of the project.


The construction of Barro Alto will include extending the existing open pit mine
operation and constructing a new ferronickel smelter and refinery. A long term
power supply has been secured. The operation will use tried and tested
technology currently used by Anglo American at Codemin and Loma de Niquel in
Venezuela.


Tony Trahar, CEO of Anglo American said "The Barro Alto project is an exciting
greenfield project in a country where Anglo American has longstanding nickel
project management and operating experience. The production from Barro Alto will
contribute significantly to a potential doubling of the Group's nickel
production to around 90,000 tonnes per annum by 2011.


The outlook for the nickel market is positive with strong demand continuing and
this project provides an excellent opportunity to grow Anglo American's position
in this attractive market."



For further information:

Investor Inquiries
Nick von Schirnding
Tel: [phone]


Charles Gordon
Tel: [phone]


Anne Dunn
Tel: [phone]


Media Inquiries
Kate Aindow
Tel: [phone]


Daniel Ngwepe
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, gold and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and paper and packaging.
The group is geographically diverse, with operations in Africa, Europe, South
and North America, Australia and Asia. (www.angloamerican.co.uk)




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