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MMX Minas-Rio and MMX Amapá

17 January, 2008

Anglo American enters into exclusive discussions to acquire control of the MMX Minas-Rio and MMX Amapá iron ore projects

Anglo American plc (“Anglo American”) is pleased to announce that it has entered into a period of exclusive discussions with the controlling shareholder of MMX Mineração e Metálicos S.A. (“MMX”), Mr Eike Batista (“Mr Batista”), in relation to the acquisition of Mr Batista's 63.6% shareholding in a new company (“Newco”) which will be demerged from MMX and will own MMX's current 51% interest in the Minas-Rio iron ore project and 70% interest in the Amapá iron ore project. MMX's logistics business, LLX Logística S.A., will also be demerged from MMX as part of the same reorganisation, but will not be included in the transaction with Anglo American.

Under the proposed transaction, Anglo American will pay approximately US$5.5 billion for 100% of the issued and outstanding shares of Newco, or approximately US$361.12 per Newco share (assuming one Newco share for each current MMX share), as well as royalty payments to MMX beginning in 2025 for the Minas-Rio project and 2023 for the Amapá project.

The transaction is subject to a number of terms and conditions, including the negotiation of the transaction documents, customary regulatory approvals and completion of the reorganisation of MMX.

Anglo American has committed, after completion of this transaction, to extend an offer to the minority shareholders of Newco at the same price per share offered to Mr Batista, the successful completion of which would result in Anglo American owning 100% of the Minas-Rio project, 70% of the Amapá project and 49% of LLX Minas-Rio, the owner of the Port of Açu. Anglo American acquired 49% of the Minas-Rio project as part of its original investment announced in April 2007, which included 49% of LLX Minas-Rio.

Cynthia Carroll, CEO of Anglo American, said: “I am delighted that Mr Batista has agreed to Anglo American's proposed price for his shares in Newco and that we are now in exclusive talks to acquire the Minas-Rio and Amapá iron ore projects. These two projects are a great strategic fit for Anglo American and, together with the planned Kumba expansions, will significantly increase our participation in the seaborne iron ore market to approximately 150Mtpa by 2017. Our experience of working on the Minas-Rio project since last year has been excellent and we are pleased to be developing such an exciting iron ore project in Brazil. Anglo American will continue to evaluate the substantial expansion potential of these projects, particularly given the extremely positive long term prospects for the iron ore industry.”

Eike Batista, Chairman & CEO of MMX said: “I strongly welcome Anglo American's globally renowned capabilities in developing and operating assets of this size and I look forward to a productive ongoing relationship as Chairman of the project boards of the Minas-Rio and Amapá projects as they reach their full potential. Our experience of working with Anglo American has reinforced my view that Anglo American's world class expertise and its approach to environmental and social responsibility issues positions it well to own and operate these important assets in Brazil.”

A further announcement will be made in due course.

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 and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business and a stake in AngloGold Ashanti. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)

MMX Mineração e Metálicos S.A. consists of integrated mining, mineral processing, production and logistics operations for iron ore and intermediate products for the steel industry. Principal projects include, MMX Corumbá System, MMX Amapá System, MMX Minas-Rio System and LLX Logística. (www.mmx.com.br)

The Minas-Rio iron ore project is located in the Minas Gerais state in Brazil. It will comprise a mine and beneficiation plant producing high-grade pellet feed. The pellet feed will be transported through a slurry pipeline to the Port of Açu which is being constructed in Rio de Janeiro State, with the potential for further pipelines and rail access. The project is due to begin production in H1 2010 with potential production of 26.5 million tonnes per annum from the first pipeline. MMX currently owns 51% of the Minas-Rio project and Anglo American acquired a 49% stake in the project in May 2007, including a 49% stake in LLX Minas-Rio, the owner of the Port of Açu.

The Amapá iron ore project is located in the Amapá state in Northern Brazil. Construction of the Amapá project was completed recently, with initial production in December 2007 and with annual capacity of 6.5 million tons per annum of iron ore. MMX currently owns 70% of the Amapá project and Cleveland Cliffs Inc. owns 30%.

The resource statement for both the Minas-Rio and Amapá iron ore projects is being updated in Q1 2008.

Summary transaction structure

It is envisaged that, subject to Anglo American and Mr Batista entering into definitive agreements:

MMX will be divided into three separate companies: the first being Newco; the second LLX Logística S.A.; and the third, MMX, consisting of the balance of MMX's assets and liabilities;

Anglo American will acquire Mr Batista's shares in Newco and, after completion of this transaction, will extend an offer to the minority shareholders of Newco at the same price per share offered to Mr Batista;

In addition to the US$5.5 billion price agreed for 100% of the issued and outstanding shares of Newco, Anglo American has agreed that Newco will pay royalty payments to MMX beginning in 2025 for the Minas-Rio project and 2023 for the Amapá project;

Anglo American already owns 49% of the Minas-Rio project and 49% of LLX Minas-Rio, the owner of the Port of Açu. Newco will own the remaining 51% of the Minas-Rio project and 70% of the Amapá project;

The successful completion of this transaction and the offer to Newco's minority shareholders, will result in Anglo American owning 100% of the Minas-Rio project, 70% of the Amapá project and 49% of LLX Minas-Rio, the owner of the Port of Açu;

LLX Logística S.A. will include the 51% stake in LLX Minas-Rio;

The third company, MMX, will consist of the balance of MMX's assets and liabilities.

For further information:

United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759

Anna Poulter, Investor Relations
Tel: +44 (0)20 7968 2155

South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592

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