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Anglo American's Skorpion Zinc mine and refinery in Namibia officially opened

12 September, 2003

Anglo American plc's (“Anglo American) wholly owned Skorpion zinc mine and refinery near Rosh Pinah, southern Namibia was today officially opened by the President of Namibia, Dr Sam Nujoma. Also in attendance were the Hon Nicky Iyambo, Minister of Mines and Energy, the Hon Andimba Toivo ya Tiovo, Minister of Prisons and Correctional-Services (previously Minister of Labour and Mines and Energy), senior representatives of the Department of Trade and Industry, Ambassadors, representatives of Anglo American and the contractors and technology suppliers associated with the development of the mine.

The US$454 million development of the Skorpion zinc mine was announced in 2000. In May this year the mine produced first metal and the first consignment of zinc was exported from the port of Luderitz in July. The mine will produce 150 000 tonnes per year of special high-grade zinc over a mine life of at least 15 years. It is expected to ramp up to full capacity by the end of 2004 and will be one of the lowest cost zinc producers in the world.

The complex consists of an open pit mine and a hydrometallurgical refinery together with the associated infrastructure of analytical laboratory, offices, stores building and change houses. A significant investment has been made in housing and residential infrastructure in Rosh Pinah. Skorpion zinc mine has adopted internationally recognised standards for environmental management and has already achieved ISO 14000 certification for the mining operations.

Commenting on the official opening of Skorpion zinc mine, President Nujoma, said, “The Government of the Republic of Namibia has always recognised the importance for the entire Namibian population of foreign direct investment. It is with great satisfaction that I bear witness to this development and acknowledge the proud partnership role we have played in the establishment of the mine and refinery.”

President Nujoma continued, “The construction of a training plant on site at a cost of 34-million Namibian dollars (US$4,3 million) is indicative of the investment in human resource development that is being undertaken at the mine. We welcome and encourage this and the opportunity provided to some twenty students to date to study at various institutions of higher learning, especially in the field of science and engineering.”

Tony Trahar, CEO Anglo American plc, said, “Skorpion is the largest investment in Namibia since independence. When it reaches full production it should contribute some 4% to the Gross National Product of the country and will provide valuable hard currency export earnings. We continue to invest heavily in manpower training and development and believe that we have a young, enthusiastic work force, eager to make Skorpion a truly world class operation.”

Trahar added, “The impact of the project on the regional development of the south of Namibia has been dramatic. Rosh Pinah is thriving and is attracting investor interest from many sectors of the economy with new shops, banks and other businesses opening up to take advantage of the wealth created by Skorpion.”

Skorpion has some 600 employees and currently provides a further 250 jobs to contractors as well as numerous jobs in the service sector. Over 90% of employees are Namibians and of those 14% are women – an unusually high percentage for what has traditionally been a male-dominated industry.

Disclaimer:
The information contained in press releases, annual or interim reports, analyst presentations, and financial information should not be deemed accurate or current except as of the date of issue. Anglo American plc does not, does not intend to, and specifically disclaims any duty to, update or correct such information.

For further information:

Anglo American – London
Investor Relations
Nick von Schirnding
Tel: +44 207 698 8540

Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001

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