Re: Kumba Iron Ore

Anglo American PLC
13 October 2005


News Release

13 October 2005


             Anglo American welcomes Kumba empowerment transaction

Following the announcement earlier today by Anglo American plc ("Anglo American
"), Kumba Resources Limited ("Kumba") and Eyesizwe Mining Limited relating to
the proposed empowerment transaction in respect of Kumba, Anglo American wishes
to draw shareholders' attention to the following key aspects of the transaction.

As part of the transaction, Kumba's iron ore assets, held through Sishen Iron
Ore Company (Pty) Ltd ("SIOC"), will be transferred to a new company, Kumba Iron
Ore, and unbundled to all existing Kumba shareholders. Following the completion
of the transaction, there will be two separate listed entities, namely:

•         Kumba Iron Ore:  which will own 74% of SIOC

•         Newco: which will have significant coal, heavy minerals and zinc
          assets, together with a 20% holding in SIOC


As a result of this transaction, Anglo American will:

•         own 66.2% of Kumba Iron Ore (the balance will be 20% freefloat and 14%
held by the IDC) which will give Anglo American an effective direct economic
interest of 49% in SIOC, in addition to a further indirect interest of 3%
through Anglo American's 17% stake in Newco

•         retain 17% of Newco as a demonstration of its long-term commitment to
Newco of which 10% will be locked in for 10 years

•         on the proviso that Newco becomes fully empowered and, subject to
certain conditions, grant options to Newco to acquire 100% of Namakwa Sands and
26% of the Black Mountain zinc mine and the Gamsberg zinc project at a total
fixed price of R2.3 billion ($350 million)

•         receive an aggregate cash consideration of R7.2 billion ($1.1
billion), including the sale of Namakwa Sands and the stakes in Black Mountain
and Gamsberg

This transaction secures Anglo American its long term investment in iron ore, a
core part of the Group's portfolio. Kumba Iron Ore has significant growth
opportunities with production targeted to increase from 31 to 44 million tonnes
per annum by 2008. Kumba Iron Ore also has other projects under consideration
including the 12 million tonnes per annum Faleme project in Senegal.

The transaction represents a significant step forward for Anglo American in
terms of satisfying the requirements of Black Economic Empowerment ("BEE") and
through Newco, creates South Africa's premier empowerment diversified mining
company.

Tony Trahar, Chief Executive of Anglo American said: "We are very pleased to
have created Kumba Iron Ore, a pure play iron ore company and the world's fifth
largest iron ore producer. Kumba Iron Ore has a world-class portfolio of iron
ore assets together with significant growth opportunities, both in South Africa
and other parts of the world.

As a result of today's transaction, Anglo American has helped to create Newco as
South Africa's flagship empowerment diversified mining company, with a strong
investment case and capable of sustainable growth. Anglo American is fully
supportive of the letter and spirit of the Mineral and Petroleum Resources
Development Act and the Mining Charter. We believe that the scale and structure
of this transaction demonstrates Anglo American's strong commitment to
transformation."

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)

For the full details of the transaction and details of the webcast presentation,
please go to www.angloamerican.co.uk


For further information, please contact:

Investor Relations                                     Media Relations
Nick von Schirnding                                    Kate Aindow
Tel: [phone]                                  Tel: [phone]

Charles Gordon                                         Daniel Ngwepe
Tel: [phone]                                  Tel: [phone]

Anne Dunn
Tel: [phone]






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