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Anglo American statement on South Africa power situation

29 January, 2008

In light of the current power shortages being experienced in South Africa and the consequent emergency measures that have been implemented over the last few days, a number of Anglo American's mining operations have been temporarily impacted.

In its position as South Africa's largest mining company and both a major supplier to and customer of Eskom, Anglo American is working with Eskom, the South African government, the National Union of Mineworkers and the Chamber of Mines of South Africa to urgently identify and implement solutions for the short and long term to guarantee the integrity of electricity supply.

Anglo American and the mining industry have already made proposals to reduce electricity consumption in the short term and it will be of critical importance for all major industries to act in South Africa's best interests and play their part in resolving this national emergency. Anglo American has formed an energy task team to address the critical issues and meetings with the ministerial committee charged with resolving the power emergency have taken place.

Following Eskom's notification of restrictions to the electricity supply, Anglo American can confirm the following in relation to its mining operations:

  • Coal – all mines are now back in operation with full production, accommodated by power savings at Kleinkopje, where production has been reduced.
  • Kumba Iron Ore – a variety of actions have been taken, including a decision to stop all electric power-assisted trucking in the short term, resulting in both of Kumba's mines, Sishen and Thabazimbi, operating with a relatively small impact on production.
  • Platinum – all process operations remain on standby and no refined metals are being produced. Essential pumping and activities to maintain plant availability continue and available power is being used to conduct underground mining activities focused on maintaining a safe working environment, with support in place to facilitate an efficient return to full production.
  • Base Metals - limited production at Namakwa Sands and no production at Black Mountain operations; the Skorpion zinc operation is running on reduced power.

The safety of its employees is of paramount importance to Anglo American and enhanced safety procedures have been put in place.

The power supply disruptions experienced to date have already had an impact on a number of key metal markets and the mining industry's strategic importance to South Africa's economic prosperity is well known.

Every effort is being made to return to normal throughout Anglo American's operations in South Africa.

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)

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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