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Anglo American agrees purchase of 49% interest in MMX Minas-Rio iron ore project for US$1.15 billion

15 May, 2007

Anglo American plc (“Anglo American”) is pleased to announce that the contract for the transaction, announced on 23 April 2007 with MMX Mineração e Metálicos S.A. (“MMX”), has been signed in Rio de Janeiro, Brazil today.

Following satisfaction of the closing conditions, Anglo American will acquire a 49% interest in MMX Minas-Rio for an economic value and effective price of US$1.15 billion.

Cynthia Carroll, CEO of Anglo American plc said: “I am delighted that MMX and Anglo American will be driving forward this exciting iron ore project. We have great confidence in Eike Batista and his management team and look forward to a long and rewarding partnership. Iron ore is core to Anglo American's future growth strategy and MMX Minas-Rio, together with the planned Kumba expansions, will add significantly to the Group's iron ore production, resulting in consolidated iron ore production in excess of 100 million tonnes per annum in the next five years.”

This acquisition represents Anglo American's second major investment in Brazil in the last six months. In December 2006, the approval of the Barro Alto nickel project was announced at an estimated capital cost of $1.2 billion. Barro Alto will produce an average of 36,000 tonnes of nickel per year over a minimum 26 year mine life and will contribute significantly to a potential doubling of the Group's nickel production to around 90,000 tonnes per annum by 2011.

Cynthia Carroll continued: “Anglo American has been operating in Brazil for many years and these major new investments indicate our firm commitment to remaining a responsible and successful operator in the country for many years to come.”

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:

Investor Inquiries
Charles Gordon
Tel: +44 207 968 8933

Anna Poulter
Tel: + 44 207 968 2155

Media Inquiries
Kate Aindow
Tel: +44 207 968 8619

Anne Dunn
Tel: +27 11 638 4730

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