Interim Results

Anglo American PLC
7 September 2001


PART 1

News Release


7 September 2001







             Anglo American plc reports interim results for 2001

             Headline profit for core businesses increases by 7%

    Group's strategy and diversity delivering value in difficult economic
                                  conditions






  * Net profit for the first half up by 122% to US$2,678 million reflecting
    exceptional gains arising from the FirstRand disposal and the De Beers
    transaction;

  * New acquisitions in Coal, Forest Products and Industrial Minerals
    performed well;

  * Core headline profit up 7% to US$803 million; non core contribution down
    due to major disposals in Industries and Financial Services;

  * Headline profit for the first half down by 7% to US$884 million;
    headline profit per share down by 5%;

  * Further cost savings of US$84 million achieved; exploration expenditure
    reduced by US$17 million;

  * Commodity prices were variable - platinum group metals and coal prices
    were strong but weakness in the global economy was reflected in declines
    in copper, zinc, nickel, chrome, gold and pulp prices;

  * Major strategic restructuring continued with the elimination of the
    cross-holding between Anglo American and De Beers and the increase in
    Anglo American's interest in its diamond holding to 45%;

  * Interim dividend maintained at 15 US cents per share;

  * Balance sheet gearing reduced to 8.7%.

Tony Trahar, Chief Executive, said:



'In the first half of this year we made important progress in simplifying the
Group structure through the elimination of the cross-holding between Anglo
American and De Beers, continuing our disposals programme and completing the
integration of last year's coal, industrial minerals and forest products
acquisitions, all of which contributed to higher profits.

Strong coal and platinum group metals prices were positive factors for the
period. However, our results were impacted by weaker global economic
conditions that depressed demand and market prices for diamonds, base and
ferrous metals and some forest products.

In this difficult economic environment, we are continuing to focus on reducing
costs and are examining ways of further improving the efficiency and
effectiveness of our business and head office structures. The corporate review
announced in March will be completed by the end of September, with any changes
being implemented by the end of the year.

The differential movements in commodity prices show the strength of Anglo
American's diversified portfolio of world-class assets and our modest level of
gearing during a downturn provides us with the flexibility to take advantage
of value enhancing opportunities.'




HIGHLIGHTS FOR THE SIX MONTHS TO 30 JUNE  6 months ended 6 months ended Change
2001                                            30.06.01       30.06.00

US$ million except per share amounts
Group turnover & share of turnover of              9,807         10,312  (5) %
joint ventures & associates
Total operating profit                             1,695          1,608    5 %
Profit for the financial period                    2,678          1,207  122 %
Headline profit for core businesses                  803            748    7 %
Headline profit for all businesses (1)               884            951  (7) %
Earnings per share (US$): (2)
Profit for the financial period                     1.74           0.77  126 %
Headline profit for the financial period            0.58           0.61  (5) %
Dividend for the period (US cents per                 15             15      -
share) (2)


(1) See note 7 for basis of calculation of headline profit.

(2) Earnings and dividends per share have been restated to reflect the
three-for-one-bonus issue.

First Half Results - Overview



Following Anglo American's record earnings for 2000, the first half of 2001
saw a much more difficult trading environment. In March this year we referred
to the uncertain global economic growth prospects for 2001 and since then
conditions have weakened further, negatively affecting most commodity prices.
Although coal and platinum group metal prices remained firm, pulp, base metals
and ferrous metals prices fell significantly. Diamond sales were also lower
while the contribution from AngloGold declined marginally.

Operating profit for the six months to June increased by 5% to US$1,695
million enhanced by significant contributions from recent acquisitions.
Headline earnings from core businesses increased by 7%, however overall
headline earnings fell by 7% reflecting the sale of non-core businesses during
the last 12 months. After taking into account the reduced number of shares in
issue following the cancellation of the Anglo American shares received from De
Beers, headline earnings per share decreased by 5% to 58 US cents per share.

An increase in volumes and prices helped boost performances from the Platinum
and Coal divisions. This improved performance was offset by weaker diamond
markets and a disappointing performance from the Base Metals division as a
result of significantly lower base metal prices and operational problems at
the Konkola Copper Mines in Zambia. The Ferrous Metals division was badly
impacted by weaker chrome and steel prices. However, the Industrial Minerals
division reflected a marked improvement in trading conditions in the second
quarter.

These results include five months of De Beers' investment income. From 1 June
2001, as a result of the elimination of the cross-holding between Anglo
American and De Beers, the cross-holding accounting ceased and we now account
for our 45% interest in DB Investments, the new parent company of De Beers.

Net debt at 30 June was US$1,767 million, representing an 8.7% gearing level,
a decrease from the 16.5% level at 31 December 2000. The reduction in net debt
is primarily due to proceeds received from the sale of the Billiton stake and
the inflow of funds arising from the De Beers transaction. As a result of
these transactions, the current low level of gearing is well below Anglo
American's previously stated net debt : total capital target of between 25%
and 30%.



Strategic Progress:



1. Removing the cross-holding

On 8 June this year the De Beers transaction was successfully completed,
resulting in the elimination of the cross-holding, which historically had been
a major value inhibitor to the Anglo American share price. The benefits to
Anglo American have been an increase in its effective stake in De Beers from
32.2% to 45%, an inflow of US$1.0 billion in cash with a further inflow of
US$701 million in future years on redemption of the preference shares and
retention of a full weighting in the FTSE 100 index. As a result of Anglo
American's entitlement to its shares distributed by De Beers, approximately
10% of Anglo American's ordinary share capital was cancelled on 11 June.

On 8 May a three-for-one bonus issue was effected to bring Anglo American's
share price more in line with that of other FTSE 100 companies. It is believed
this will improve liquidity and encourage a larger retail shareholder base.
Following the distribution of De Beers' Anglo American shares to its
shareholders, the increased level of UK institutional ownership of Anglo
American is encouraging.



2. Update on acquisitions

Last year the value-enhancing integration of major acquisitions was identified
as a strategic priority. The acquisition of Shell's coal assets in Australia
and Venezuela and of a stake in Cerrejon Zona Norte in Colombia has put in
place a global structure of coal operations in South Africa, Australia and
South America. The acquisitions also enabled Anglo American to participate
more fully in the strong prices which coal has been commanding in 2001.

Tarmac's operating results improved significantly and benefited from the
achievement of synergies and cost savings, which should be running at an
annualised rate of at least US$60 million in the second half of the year, well
ahead of target. The company is well positioned to benefit from the planned
increase in transport infrastructure spending in the UK in 2002.

The acquisition of control of the Frantschach group, together with the
purchase of Assi Sacks and SCP Ruzomberok were significant developments in
Anglo American's European paper and packaging strategy and contributed to
improved profits from the Forest Products division.



3. Disposal of non-core assets

Further progress was made with the disposal of non-core assets, the major
development being the sale in April of 7.1% of Billiton for US$754 million.
Anglo American acquired its holding in Billiton in exchange for part of its
stake in FirstRand, a financial services group.



4. Cost structure and efficiencies

It is almost two and a half years since the formation of Anglo American plc.
Now that the major strategic changes envisaged in our Listing Prospectus have
been delivered, it is appropriate to review the balance of responsibilities
between the business units and the corporate centre. Having already downsized
the Sao Paulo and Luxembourg corporate offices, the Group is in the process of
an exercise to further improve the efficiency and effectiveness of its London
and Johannesburg offices. This exercise is expected to be completed by the end
of September 2001, with any changes implemented by the end of this year.



5. Future strategy

Despite the current uncertainty and difficult economic conditions, the Group
continues to seek opportunities for growth and expansion supported by a strong
balance sheet and sound cash flow from its diversified businesses. The ongoing
internal restructuring of the business and corporate centres will deliver
enhanced value and greater operational efficiencies.





Dividend

An unchanged interim dividend of 15 US cents per share has been declared.
Absent any unforeseen developments, it is the Board's intention to recommend a
total dividend in respect of the full year of 47.5 US cents per share.







Outlook

The global slowdown has adversely impacted Anglo American's results in the
first half of the year, particularly in Base and Ferrous Metals, where
weakness in the physical metal markets has been much greater than expected.
Sharp declines in demand have been experienced principally in the US and Asia,
but increasingly in Europe as well.

Platinum and palladium prices have also fallen from their recent high levels,
which will adversely impact profits in the second half of the year, although
prices and demand for coal, industrial minerals and some value added forest
products remain satisfactory.

Any improvement in the global economy is unlikely to result in price recovery
in the near term. In this environment, Anglo American will continue to focus
on improving efficiencies and reducing costs in all its businesses whilst
assessing new opportunities for investment and expansion.





For further information, please contact:

Anglo American - London

Investor Relations            Media Relations

Nick von Schirnding           Kate Aindow

Tel: [phone]      Tel: [phone]



Anglo American - Johannesburg

Investor Relations            Media Relations

Anne Dunn                     Marion Dixon

Tel: [phone]          Tel: [phone]



Anglo American plc website: www.angloamerican.co.uk

Anglo American plc is a global leader in the mining and natural resource
sectors. It has significant and focused interests in gold, platinum, diamonds,
coal, base and ferrous metals, industrial minerals and forest products, as
well as financial and technical strength. The Group is geographically diverse,
with operations in Africa, Europe, South and North America and Australia.
Anglo American represents a powerful world of resources.

High resolution pictures are available to the media at www.newscast.co.uk

Operations review

Highlights

The Group's results in certain sectors were adversely impacted by the global
economic slowdown and its marked impact on industrial production and
consequently on many commodity prices. The Base and Ferrous Metals divisions
were particularly affected. In contrast, however, the Coal division saw
buoyant prices and Anglo Platinum benefited for much of the period from
historically very high platinum group metals prices. The Group's policy of
product diversity continued to demonstrate its benefits in this period of
global economic uncertainty.

Earnings per share were US$1.74 compared with US$0.77 per share for the same
period last year. Headline earnings were US$0.58 per share, a decrease of 5%.

Total turnover for the six months to 30 June 2001 decreased by 5% to US$9,807
million from US$10,312 million, reflecting both lower prices and the sale of
several non-core businesses during the last 12 months. Operating profit
increased by 5% to US$1,695 million from US$1,608 million.

Net profit was US$2,678 million, up from US$1,207 million. Exceptional profits
in the period amounted to US$1,931 million, mainly comprising the gain on the
De Beers transaction, the swap of part of the Group's interest in FirstRand
for interests in Billiton and Gold Fields, the subsequent sale of the interest
in Billiton and, to a lesser extent, the sale of other non-core investments.

Headline profit, which excludes the impact of exceptional items and goodwill
amortisation, was down 7% at US$884 million.

Gold

For the six months ended June 2001, gold production decreased by 69,000
ounces, or 2%, to 3.5 million ounces compared with the first six months of
2000. This was the result of the disposal of Elandsrand and Deelkraal, which
together produced 277,000 ounces in the first half of 2000, partially offset
by increased production from Morila and Geita. Retrenchment costs increased
from US$6 million in the first half of 2000 to US$16 million in the first six
months of 2001. Total cash costs decreased by 12% to US$189 per ounce and
total production costs decreased by 8% to US$225 per ounce. The average gold
price realised in the first six months was US$290 per ounce, US$18 per ounce
lower than the figure for the comparable period in 2000. Operating profit was
down by 3% to US$200 million for the half-year. Headline profit decreased by
8% to US$80 million owing to the increase in interest paid during the first
half of this year arising from the acquisition of Geita and Morila.

In May, one month ahead of schedule, the 40% owned Yatela gold mine in Mali
poured its first gold. Yatela was constructed at a total cost of US$73
million, US$2 million below budget. A US$194 million project has been approved
at the Cripple Creek and Victor mine in the United States. This project will
extend the life of the mine until at least 2012 and provide an additional 2.8
million ounces of production.

Gold Avenue's business-to-business website went live in June offering bullion
products directly to regional banks for jewellery fabrication industries in
Italy. This will be extended to other countries through the remainder of 2001,
with Gold Avenue's business-to-consumer gold jewellery venture targeting an
initial product offering by year-end.

On 5 September, AngloGold announced a US$1.7 billion (A$3.2 billion) bid for
Normandy Mining Limited, a major Australian gold producer with significant
growth potential. If successful, this will result in Anglo American's 53.41%
interest in AngloGold being diluted to an approximately 36% interest in a much
larger and more diversified gold entity.



Platinum

Anglo Platinum's operating profit of US$754 million was US$199 million higher
than in the first half of 2000. The increase was principally the result of
strong platinum group metal prices. The average realised platinum price of
US$600 per ounce for the six months to June 2001 was US$100 higher than that
achieved in the first half of 2000. Palladium and rhodium prices were also
significantly higher at US$784 per ounce for palladium and US$1,976 per ounce
for rhodium against US$586 per ounce and US$1,701 per ounce respectively in
the corresponding period in 2000.

Refined production (including Anglo Platinum's attributable share of Northam
Platinum) of 1,018,900 ounces of platinum was 13.7% higher than in the first
half of last year.

With the announcement on 6 September of the Twickenham project costing US$320
million to produce 160,000 ounces of platinum, the expansion programme to meet
anticipated medium term demand by increasing production to 3.5 million ounces
of platinum by 2006 is confirmed. Since the last results were released, Anglo
Platinum has, in addition to the Twickenham project, announced the development
of three further projects at a total cost of around US$600 million: a smelter
complex in Pietersburg with a capacity of 650,000 tonnes of concentrate per
annum to be fully commissioned in September 2002; the Styldrift Joint Venture
with the Royal Bafokeng Nation to produce 250,000 ounces of platinum per annum
from 2006; and the Pandora Joint Venture with Lonmin Platinum which will build
up to produce 230,000 ounces of platinum per annum from 2007.

The Maandagshoek and Rustenburg UG2 mining expansion projects are on schedule
to meet the planned commissioning dates in 2002, while the new converting
process project at Rustenburg is proceeding as planned.

Diamonds

Following the elimination of the cross-holding between the two groups, Anglo
American's interest in De Beers increased from 32.2% to 45%. As a result, with
effect from 1 June, the cross-holding accounting ceased and Anglo American now
accounts for its 45% interest in DB Investments (DBI), the new holding company
of De Beers. As part of the transaction, Anglo American became entitled to 168
million Anglo American shares under the De Beers Scheme of Arrangement, net
cash of US$998 million and preference shares in DBI with a redemption value of
US$701 million. The transaction realised an exceptional gain of US$1,089
million.

Sales of rough gem diamonds by The Diamond Trading Company, the marketing arm
of the De Beers group, totalled US$2,619 million, 25.5% lower than the
US$3,517 million figure achieved in the first half of 2000.

Lower demand for rough diamonds reflected the slowdown in the global economy,
particularly in the United States. Christmas season sales of diamond jewellery
in 2000 were below expectations, which led to excess stocks of polished
diamonds in the first half of 2001. Consequently, the US retail sector, which
accounts for close to 50% of world diamond jewellery offtake, did not restock
during the period, thereby contributing to a difficult first six months in
2001 for the diamond industry.

De Beers anticipates little sign of improvement in the second half of 2001,
with much depending on the length of time before economic growth starts to
recover (particularly in the USA), the further reduction of inventory levels
and the relative strength of the US dollar against other diamond consumer
market currencies.

Indications are that global retail sales of diamond jewellery so far this year
are about 5-7% lower than in the first six months of 2000, when sales,
reflecting the 'millennium effect', were exceptionally strong. The retail
market in Japan continues to disappoint but sales in Europe have shown modest
increases in local currency terms, particularly in France and the UK.

On 25 July, De Beers and Louis Vuitton Moet Hennessy announced that the
European Commission had raised no objection to their planned jewellery
retailing venture. This initiative is directed at unlocking the potential in
the De Beers brand name, although the core business of De Beers will remain
the mining and marketing of rough gem diamonds.

De Beers is dedicated to encouraging long term and sustainable growth in
demand for diamond jewellery through its Supplier of Choice strategy.
Implementation of this has been delayed, however, pending a satisfactory
outcome in respect of meeting with the European Competition Commission.

Coal

Anglo Coal's operating profit for the six months to June amounted to US$183
million and was US$130 million, or 245%, higher than that recorded in the
first half of 2000. Coal sales totalled 37 million tonnes, an increase of 7
million tonnes, which was largely attributable to sales from the Australian,
Colombian and Venezuelan operations acquired after 30 June 2000 and thus not
reflected in the comparative figures for the first half of the previous year.
Higher export coal prices and weaker exchange rates in South Africa and
Australia also contributed to the increase in profits.

Whilst the outlook for export coking coal prices remains firm in the short to
medium term, export thermal coal prices are now delicately balanced in
response to higher than expected Chinese exports. Australian domestic volumes
are likely to exceed plan for the year and in South Africa some reduction in
sales to Eskom is likely but will not impact materially on earnings.

Since the year end, Anglo Coal has purchased from RAG Australia Coal (Pty)
Limited the 27.2% interest in Australian producer German Creek, thus securing
full ownership of this operation. Shell's 24.9% interest in Venezuelan
producer Carbones del Guasare was also transferred to Anglo Coal toward the
end of the first quarter.

Base Metals

Base Metals reported an operating loss of US$12 million in the first half of
the year, sharply down on the US$128 million operating profit generated in the
corresponding period last year.

Of the US$140 million fall in operating profit, US$42 million was due to
Konkola Copper Mines (KCM) and US$52 million as a result of price
deterioration across all products. Lower ore grades, principally at Collahuasi
in Chile, which had been expected, and at Hudson Bay (HBMS) in Canada, and an
operating loss at Anaconda Nickel in Australia had a further impact.

Attributable copper production of 311,200 tonnes was some 86,700 tonnes higher
than in 2000. Zambian producer KCM, in which the Group acquired an interest at
the end of March 2000, contributed 78,000 tonnes to this increase. The
company, however, had a difficult first half. Production was adversely
affected by operating problems at the Nkana and Mufulira smelters and by the
major pit slope failure in the Nchanga open pit when 10 people tragically lost
their lives. Improvements in safety, health and environment matters,
expediting the refurbishment programme and continuing to reduce costs will
remain the chief priorities.

Work continues on the Konkola Deep Mining Project feasibility study. It is
expected that a decision will be made during the final quarter of 2001 on an
expansion at Collahuasi.

Attributable production at the nickel operations of 10,900 tonnes was 3,500
tonnes higher than for the first half of 2000, reflecting the first production
from the new Loma de Niquel mine in Venezuela. The nickel operations broke
even for the period compared with a US$28 million operating profit in 2000,
the principal reasons being lower nickel prices and an attributable loss of
US$8 million from Anaconda, which entered commercial production in the second
quarter of 2001.

The zinc operations produced an attributable 73,500 tonnes of zinc and 29,600
tonnes of lead in the first half compared with 67,500 tonnes and 42,800 tonnes
in the prior period. Production shortfalls at South Africa's Black Mountain
(lower grades) and HBMS (recovering from last year's smelter accident and
Ruttan mine floods) were offset by rising production at Lisheen in Ireland,
which was operating at over 80% of capacity by June 2001.

The Black Mountain Deeps project, approved last year at a cost of US$110
million, and the US$251 million 777 project at HBMS both remain on schedule
and on budget. The larger US$454 million Skorpion project in Namibia also
remains on schedule, with first production planned for the fourth quarter of
2002. A decision on the development of South Africa's Gamsberg zinc orebody
has been deferred.

Namakwa Sands in South Africa generated an operating profit of US$14 million,
up US$2 million on last year on the back of a stronger zircon price and
operating cost reductions.

Industrial Minerals

The performance of the Tarmac businesses improved significantly, with
pre-goodwill underlying trading profit up by 36% to US$95 million. This
improvement was due to the achievement of substantial synergy benefits arising
from the acquisition of Tarmac plc, a continuing programme of cost cutting and
price improvements across the Group. However, the combined impact of the
goodwill amortisation charge over the full six months, the divestment
programme required by the UK's Office of Fair Trading and the depreciation of
sterling against the US dollar offset the substantial underlying improvement.
These adjustments, coupled with reduced profits at Cleveland Potash and
Copebras, caused a US$7 million decline in Anglo Industrial Minerals operating
profit to US$75 million.

In the UK, prices have been increasing despite the challenging trading
conditions caused by adverse weather and the foot and mouth epidemic. Sales
volumes were down in some product areas, particularly concrete products, where
steps have been taken to reduce the cost base. The restructuring of the
overall Tarmac group is virtually complete and the process of merging the
acquired business with the old Tilcon companies is no longer a distraction.
The Tarmac acquisition synergies arising from rationalisation of regional
offices and production and the downsizing of overheads are increasingly being
realised. Synergies should be running at an annualised rate of at least US$60
million in the second half of this year. Work has now started on the new
800,000 tonnes per annum cement plant at Buxton which is expected to be
commissioned in 2003.

In continental Europe, operating profits increased by 44%, owing largely to a
strong performance in Spain and despite difficult trading conditions in
Germany. The German operations are being restructured in response to market
conditions and several acquisitions have been made in Poland in furtherance of
the strategy to expand the business in this area, where market growth is
anticipated.

Cleveland Potash continued to experience operating problems and reported a
small loss for the half year.

At Copebras, although the increased cost of caustic soda put pressure on
margins, demand for the company's core phosphate fertiliser products was
strong, particularly in the interior of Brazil, where Copebras is constructing
a new plant. Work is proceeding according to plan on the new plant, which will
substantially increase Copebras' phosphate capacity and will be completed in
2002.

Forest Products

The Forest Products division achieved a 53% increase in operating profits to
US$289 million.

Mondi Europe's operating profit at US$181 million was significantly higher
than in the comparable period last year. This reflected solid underlying
performance and the positive impact of the increased shareholding in the
Frantschach group and Neusiedler, together with the contribution from Assi
Sacks and SCP Ruzomberok which were acquired in the second half of 2000.

Despite a weakening in global economic trends, matched by a slump in pulp
prices, overall the Mondi Europe group reported strong profit growth in the
first half year.

The sack paper and industrial sacks businesses reported improved profits as a
result of ongoing productivity improvements and a continuous focus on cost
reduction, overcoming the adverse development in paper prices and softer
demand. The integration of the Assi Sacks business is now complete.

The corrugated paper and packaging operations reported improved profits year
on year despite difficult trading conditions. Keen management of productivity
and costs has supported profits.

In the graphic paper operations, profits are well up with lower input pulp
prices and the positive impact of Ruzomberok's low-cost position. The
integration of Ruzomberok has provided significant synergy benefits through
product rationalisation, sales integration and cost reductions.

The UK-based Aylesford Newsprint mill reported higher profits in the first six
months, with newsprint prices on average up 16% year on year and a decrease in
recovered fibre costs.

Mondi South Africa's operating profit at US$101 million compared favourably
with the prior year at US$95 million. Although prices of most products
declined in US dollar terms, the weakening Rand contributed to improved
margins on export sales and sales volume of some grades increased.

Exports of corrugated case materials were below budget owing to softer markets
and slowing GDP growth in Western Europe. Although the local market was flat
following the lower requirement for fruit packing, local sales volumes were
higher than budget as a result of growth in market share.

Good results at Cartonboard were achieved through improved machine
efficiencies, with operating earnings for the year to date US$2 million above
the prior period.

Graphic paper earnings were higher, mainly as a result of reduced input pulp
prices with the depreciating Rand stabilising margins. Domestic and export
newsprint sales were above budget, but the office paper market was affected by
competitive pressure on margins.

Aracruz's attributable operating profit at US$7 million was US$10 million
lower than in 2000. This arose from significantly lower pulp prices and lower
sales volumes.

Ferrous Metals

Operating profits of the Ferrous Metals division at US$34 million were
significantly lower than the US$68 million recorded in the first half of 2000.
The world steel industry remains in an oversupply situation and prices have
consequently been weak. Stainless steel prices averaged US$1,111 per tonne
compared with US$1,337 per tonne in 2000.

Highveld Steel (excluding Columbus) contributed US$5 million for the first
half year, similar to the comparable period last year. Sales prices were at
low levels - vanadium pentoxide averaged US$1.61 per pound compared with
US$2.04 per pound in 2000 and hot rolled export coil averaged US$249 per tonne
against US$264 per tonne in 2000.

Columbus Stainless, in which Highveld, Samancor and the Industrial Development
Corporation each own a one-third interest, recorded an operating loss of US$12
million in the first half.

Highveld and its co-shareholders have entered into a memorandum of
understanding to sell to the Spanish stainless steel producer Acerinox SA, 64%
of their respective shareholdings in Columbus with an effective date of 1
January 2002. It is expected that an announcement regarding the outcome of the
transaction will be made soon.

Samancor, in which the Group holds 40%, saw operating profit decrease from
US$39 million to US$8 million owing to losses at Columbus and the chrome
division.

Chrome prices declined further because of low demand for stainless steel and a
market oversupply of ferrochrome.

Scaw's operating profits at US$15 million were similar to the comparable
period last year, notwithstanding generally weak rolled steel markets.

Catalao's operating profits increased from US$6 million to US$11 million due
to production from additional capacity coming on stream.

Industries

The division reported operating profits of US$64 million for the first half of
the year compared with US$139 million for the comparable period last year.
This reduction principally reflected the programme of disposals in 2000, which
has continued to a lesser extent in this year. Operating profit from
operations which are still owned by the Group of US$64 million compared with
US$69 million for the comparable period last year.

The Tongaat-Hulett group contributed US$55 million compared with US$61 million
in the first half of 2000, with the decrease largely resulting from the
weakening of the Rand against the US dollar.

Boart's profits of US$16 million were US$7 million better than in the first
half of last year. Improvements were experienced across its worldwide
operations.

Terra recorded a loss of US$3 million compared with US$3 million profit in the
first six months of 2000. Trading profits improved owing to higher nitrogen
and methanol margins as increases in selling prices more than offset higher
natural gas costs. Recognition of losses arising from claims against the
company relating to benzene contamination of products sold to customers some
years ago further reduced trading profits.

Exceptional items

Exceptional profits in the six-month period totalled US$1,931 million before
tax and minorities. This comprised principally the gain on the De Beers
transaction of US$1,089 million and the gain on the FirstRand disposal of
US$637 million.

Taxation

The effective rate of taxation on the profit before exceptional items for the
period was 31% compared with 25% for the six months ended 30 June 2000. The
increase in the effective rate of taxation is due principally to the change in
the make up of the Group's profits with a higher proportion of profits arising
in divisions with a relatively high tax rate. The charge is based on an
estimate of the effective tax rate for the financial year as a whole.

Dividend

Anglo American will pay an interim dividend of 15 US cents per share on 19
October 2001 to shareholders on the register at the close of business on 21
September 2001.

Cash flow

Cash flow from operations was US$1,506 million compared with US$1,068 million
in the prior period. This inflow was after a US$419 million increase in
working capital. Purchases of tangible fixed assets amounted to US$772
million, an increase of US$168 million. Tax payments were US$347 million
compared with US$180 million. The acquisition of businesses, primarily an
additional small interest in Anglo Platinum, resulted in a cash outflow of
US$154 million.



Disposals

In December, Anglo American announced an agreement to dispose of the majority
of its 20.6% interest in FirstRand Limited to Remgro Limited. Anglo American
received as consideration 165.2 million shares in Billiton Plc and 51 million
shares in Gold Fields Limited. This transaction was completed on 1 February
2001 and an exceptional profit was recorded in the first half of this year. In
April, Anglo American sold the interest in Billiton by means of a placing and
realised gross proceeds of US$754 million.

Balance sheet

As at 30 June 2001, shareholders' funds were US$15,973 million compared with
US$15,544 million at 31 December 2000. The increase was mainly due to retained
income for the period of US$2,467 million, offset by the cancellation of 163.2
million shares received from De Beers and the depreciation of the Rand and
other currencies.

Net borrowings were US$1,767 million, a decrease of US$1,823 million from 31
December 2000. This decrease mainly reflects the inflow from the De Beers
transaction and the disposal of the Group's interest in Billiton.

Gearing at 30 June 2001 was 8.7% compared with 16.5% at 31 December 2000.

Share capital

Anglo American implemented a three-for-one bonus issue on 8 May 2001.
Following the De Beers transaction, Anglo American cancelled 163.2 million
ordinary shares representing approximately 10% of its issued ordinary share
capital. These shares mainly represented Anglo American's entitlement to those
Anglo American shares distributed by De Beers as part of the transaction.
Following the cancellation and the bonus issue, Anglo American has 1,467
million ordinary shares in issue. Earnings per share figures included in this
release have been restated to reflect the bonus issue.

Consolidated profit and loss account
for the six months ended 30 June 2001

                                                                              
                                              6 months   6 months        Year 
                                                 ended      ended       ended 
  US$ million                         Note    30.06.01   30.06.00    31.12.00 
  Group and share of turnover of         2       9,807     10,312      20,570 
  joint ventures and associates                                               
  Less: Joint ventures' turnover                 (475)    (1,020)     (1,590) 
  Associates' turnover                         (1,719)    (2,636)     (4,156) 
  Group turnover - subsidiaries                  7,613      6,656      14,824 
  Operating costs                              (6,287)    (5,640)    (12,489) 
  Group operating profit -                       1,326      1,016       2,335 
  subsidiaries                                                                
  Share of operating profit of                     106        176         159 
  joint ventures                                                              
  Share of operating profit of                     263        416         720 
  associates                                                                  
  Total operating profit                 2       1,695      1,608       3,214 
  Profit on disposal of fixed            4       1,931        326         402 
  assets                                                                      
  Costs of fundamental                   4           -          -        (79) 
  reorganisations                                                             
  Profit on ordinary activities                  3,626      1,934       3,537 
  before interest                                                             
  Net investment income                             60        148         308 
  Profit on ordinary activities                  3,686      2,082       3,845 
  before taxation                                                             
  Tax on profit on ordinary              6       (635)      (445)     (1,005) 
  activities                                                                  
  Profit on ordinary activities                  3,051      1,637       2,840 
  after taxation                                                              
  Equity minority interests                      (373)      (430)       (883) 
  Profit for the financial period                2,678      1,207       1,957 
  Equity dividends to shareholders               (211)      (234)       (742) 
  - paid and proposed                                                         
  Retained profit for the                        2,467        973       1,215 
  financial period                                                            
  Headline profit for the                3         884        951       2,000 
  financial period                                                            
  Basic earnings per share                                                    
  (US$)(1):                                                                   
  Profit for the financial period        7        1.74       0.77        1.25 
  Headline profit for the                7        0.58       0.61        1.28 
  financial period                                                            
  Dividend per share (US cents)(1)                  15         15        47.5 
 
(1)     Earnings and dividends per share statistics have been restated to
reflect the three-for-one bonus issue. 
 
Consolidated balance sheet
as at 30 June 2001

                                                                              
                                                 As at      As at       As at 
  US$ million                                 30.06.01   30.06.00    31.12.00 
  Fixed assets                                                                
  Intangible assets                              2,351      2,302       2,462 
  Tangible assets                               11,447     10,519      11,819 
  Investments in joint ventures and              4,941      6,911       6,339 
  associates                                                                  
  Other financial assets                         1,660      1,525       1,621 
                                                20,399     21,257      22,241 
  Net current assets                                                          
  Stocks                                         1,627      1,513       1,748 
  Debtors                                        3,296      2,707       3,222 
  Current asset investments                      3,226      2,509       2,344 
  Cash at bank and in hand                         964      1,206       1,061 
                                                 9,113      7,935       8,375 
  Short term borrowings                        (2,658)    (1,122)     (3,398) 
  Other current liabilities                    (3,615)    (2,872)     (4,027) 
  Net current assets                             2,840      3,941         950 
  Total assets less current liabilities         23,239     25,198      23,191 
  Long term liabilities                        (3,299)    (4,912)     (3,597) 
  Provisions for liabilities and charges       (1,437)    (1,405)     (1,404) 
  Equity minority interests                    (2,530)    (2,841)     (2,646) 
  Net assets                                    15,973     16,040      15,544 
  Capital and reserves                                                        
  Share capital and premium                      1,937      2,019       2,019 
  Reserves                                       1,352      3,471       3,351 
  Profit and loss account                       12,684     10,550      10,174 
  Total shareholders' funds (all equity)        15,973    16,040       15,544 
 
The interim financial information was approved by the board of directors on 6
September 2001. 
 
Consolidated statement of total recognised gains and losses
for the six months ended 30 June 2001
 

                                                                              
                                              6 months   6 months        Year 
                                                 ended      ended       ended 
  US$ million                                 30.06.01   30.06.00    31.12.00 
  Profit for the financial period                2,678      1,207       1,957 
  Currency translation differences on            (659)      (997)     (1,725) 
  foreign currency net investments                                            
  Net asset value movements in associates            -      (110)       (120) 
  Total recognised gains for the financial       2,019        100         112 
  period                                                                      
 
 
Combined statement of movement in shareholders' funds and movement in reserves
for the six months ended 30 June 2001
 

                                                                              
                 Issued                                      Profit           
                  share     Share     Merger       Other   and loss           
  US$ million   capital   premium   reserves    reserves    account      Total
  Balance at        204     1,815      2,424         927     10,174     15,544
  1 January                                                                   
  2001                                                                        
  Profit for          -         -          -           -      2,678      2,678
  the                                                                         
  financial                                                                   
  period                                                                      
  Dividends           -         -          -           -      (211)      (211)
  paid and                                                                    
  proposed                                                                    
  Bonus share       611     (611)          -           -          -          -
  issue(1)                                                                    
  Cancellation     (82)         -          -          82    (1,379)    (1,379)
  of own                                                                      
  shares(2)                                                                   
  Realisation         -         -    (1,788)           -      1,788          -
  of merger                                                                   
  reserve(3)                                                                  
  Net asset           -         -          -       (293)        293          -
  value                                                                       
  movements                                                                   
  in                                                                          
  associates                                                                  
  Currency            -         -          -           -      (659)      (659)
  translation                                                                 
  differences                                                                 
  Balance at         733     1,204        636         716     12,684    15,973
  30 June 2001                                                                
 
(1)      Bonus issue of three-for-one ordinary shares on 8 May 2001. 
(2)      Cancellation of 163.2 million Anglo American plc shares previously
         held by the De Beers group. 
(3)      Merger reserve realised on the disposal of the investments in De
         Beers Consolidated Mines Limited and De Beers Centenary AG. 
 
 
Consolidated cash flow statement
for the six months ended 30 June 2001
 

                                                                              
                                              6 months   6 months        Year 
                                                 ended      ended       ended 
  US$ million                         Note    30.06.01   30.06.00    31.12.00 
  Net cash inflow from operating         8       1,506      1,068       2,959 
  activities                                                                  
  Expenditure relating to                         (20)          -        (44) 
  fundamental reorganisations                                                 
  Dividends from joint ventures                    223        127         258 
  and associates                                                              
  Returns on investments and                                                  
  servicing of finance                                                        
  Interest received and other                      144        146         348 
  financial income                                                            
  Interest paid                                  (254)      (168)       (501) 
  Dividends received from fixed                     41         31          68 
  asset investments                                                           
  Dividends paid to minority                     (281)      (188)       (357) 
  shareholders                                                                
  Net cash outflow from returns on               (350)      (179)       (442) 
  investments and servicing of                                                
  finance                                                                     
  Taxes paid                                     (347)      (180)       (329) 
  Capital expenditure and                                                     
  financial investment                                                        
  Payments for fixed assets                      (772)      (604)     (1,511) 
  Proceeds from the sale of fixed                  199         15         177 
  assets                                                                      
  Payments for other financial                    (79)       (22)       (104) 
  assets(1)                                                                   
  Proceeds from the sale of other                1,019        314         535 
  financial assets(1)                                                         
  Net cash inflow/(outflow) for                    367      (297)       (903) 
  capital expenditure and                                                     
  financial investment                                                        
  Acquisitions and disposals                                                  
  Acquisition of subsidiaries(2)                 (154)    (2,070)     (2,705) 
  Disposal of subsidiaries                         135          -         226 
  Investment in associates                       (189)      (192)       (257) 
  Sale of interests in associates                1,148         88         517 
  Investment in proportionally                    (51)          -        (42) 
  consolidated joint arrangements                                             
  Investment in joint ventures                    (22)          -       (367) 
  Net cash inflow/(outflow) from                   867    (2,174)     (2,628) 
  acquisitions and disposals                                                  
  Equity dividends paid to Anglo                 (509)      (421)       (657) 
  American shareholders                                                       
  Cash inflow/(outflow) before use               1,737    (2,056)     (1,786) 
  of liquid resources and financing                                           
  Management of liquid                           (977)        395       (358) 
  resources(3)                                                                
  Financing                                      (795)      1,595       1,935 
  Decrease in cash in the period        10        (35)       (66)       (209) 
 
(1)     Disposal and acquisition of other financial assets included in fixed
        assets. 
(2)     Net of assets resold of US$709 million in the second half of 2000 in
        respect of the acquisition of Tarmac plc. 
(3)     Cash flows in respect of current asset investments. 
 
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