Coal Project Approved

Anglo American PLC
20 October 2005


News


20 October 2005






         $516 million Lake Lindsay metallurgical coal project approved

Anglo American announces that approval has been granted to proceed with the
$516 million (A$674 million) Lake Lindsay metallurgical coal project in Central
Queensland, Australia.

The Lake Lindsay project consists of a new mining area at the German Creek
complex, owned by Anglo Coal (70%) and Mitsui Coal Holdings (30%), which will
increase annual saleable production at German Creek from 6 to 10 million tonnes
("Mt") per annum. The additional annual production will comprise 3.7Mt of
metallurgical coal and 0.3 Mt of thermal coal.

When the Lake Lindsay project and the Dawson project, announced in December last
year, reach full production, Anglo Coal's annual managed production of
metallurgical coal will increase from the current level of 18Mt to 27Mt (Anglo
Coal attributable production will increase from 11 Mt to 16 Mt).

The Lake Lindsay project will also extend the mine life at German Creek by some
11 years, maintaining production until 2027 and realise marketing,
infrastructure and operational synergies from the existing operations. The
capital expenditure program will include new mining equipment, with significant
expenditure on coal transport infrastructure and coal preparation and handling
facilities.

Construction is due to start later this year with production coming on stream in
late 2006.

Tony Trahar, Chief Executive of Anglo American said, "Anglo American's global
coal business is continuing to expand. This is the second major new project
being undertaken by Anglo Coal in Australia following the announcement of the
Dawson Project late last year. The Lake Lindsay project will enhance Anglo
Coal's position in the metallurgical coal market by broadening its product range
and significantly increasing metallurgical coal production."





For further information:


Anglo American - London
Investor Relations                                       Media Relations
Charles Gordon                                           Kate Aindow
Tel:  [phone]                                   Tel:  [phone]



Anglo American - Johannesburg
Investor Relations                                       Media Relations
Anne Dunn                                                Daniel Ngwepe
Tel:  [phone]                                    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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