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Anglo American announces FutureGen Industrial Alliance

23 February, 2006

Anglo American joins FutureGen Industrial Alliance – targeting development of the world's first “zero emissions” coal-fueled plant

Anglo American announces that it has joined the FutureGen Industrial Alliance, which is developing the world's most advanced clean coal technology project, thereby strengthening the Group's commitment to securing a future for coal in the global energy mix.

The FutureGen Industrial Alliance (currently consisting of eight major energy and mining companies who intend to contribute up to $250 million to the project over its lifetime) will partner with the U.S. Department of Energy to design, construct, and operate FutureGen, the world's first “zero emissions” coal-fueled power generation plant.

The ultimate goal for FutureGen is to show how technology can advance clean coal technologies for generating electricity for families and businesses and also produce hydrogen to power fuel cells for transportation and other energy needs. The technology also will integrate carbon capture and storage, helping to address the issue of climate change as energy demand continues to grow worldwide.

The nominal 275MW prototype FutureGen power generation plant will gasify coal through a process that converts the coal's carbon to a synthesis gas composed of hydrogen and carbon monoxide. The hydrogen will be used as a clean fuel for electricity generation in turbines, fuel cells or hybrid combinations of these technologies. The captured carbon dioxide will be separated from the hydrogen and permanently stored underground, where it will be monitored over time. The project hopes to prove the effectiveness, safety and permanence of carbon dioxide capture and storage by testing the technology under real working conditions.

Construction of the FutureGen plant is due to start in three years and work is currently under way to find a suitable site in the United States. Construction and plant startup and testing is due to take an additional three years with a full-scale plant operating in 2012. The project will be supported by the ongoing coal research programmes, which will be a major source of technology for the prototype plant.

The FutureGen project is being co-funded by the U.S. Department of Energy, and aims to validate the technical feasibility and economic viability of advanced coal-based technologies for commercial readiness.

Tony Trahar, CEO of Anglo American said, “We are very excited to have joined the FutureGen Industrial Alliance. Our participation is complementary to our existing projects in China and Monash Energy in Australia, and represents a further step in our commitment to participating in the development of clean coal technologies that ensure that coal remains an important and sustainable energy source for the future.”

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 further information on FutureGen – please visit the following websites: www.FutureGenAlliance.org and www.fossil.energy.gov/programs/powersystems/futuregen/

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