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Anglo American and Eskom co-operation to resolve electricity supply challenge

10 September, 2008

Anglo American and Eskom are pleased to announce that they have entered into a Memorandum of Understanding (“MOU”).

The MOU represents a long term commitment from both Anglo American and Eskom to establish a strategic co-operation to identify and implement solutions to guarantee the integrity of South Africa’s electricity supply.

The MOU provides a framework for Anglo American and Eskom to co-operate on their respective future energy requirements, including energy provision and coal supplies.  It will also aim to facilitate optimisation of scarce resources; conceptualisation and implementation of energy efficiency programmes; skills development; sustainable development; and research and development initiatives, such as clean coal technologies and carbon sequestration potential.

Cynthia Carroll, CEO of Anglo American, said, “It is of critical importance that we play our part in addressing South Africa’s energy challenge. We are committed to working with Eskom to finding solutions to support the country's national energy needs. This MOU will facilitate a co-ordinated approach to developing new and creative cost-effective solutions to serve and benefit the country and ensure consistent energy supply to the nation.”

Mr Jacob Maroga, Eskom’s CEO said, “We have been working with Anglo American for some time now as part of the national response to the energy supply challenge. This MOU will provide a framework from which we can work together to optimise synergies, scarce resources and skills, and to secure and stabilise power generation and distribution.”

For further information:

Anglo American - South Africa

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

Anglo American - United Kingdom

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

Eskom

Fani Zulu, Eskom Spokesperson
Tel: 27 (0)11 800 2265


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. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)

Eskom is a vertically integrated operation that generates, transmits and distributes electricity. Eskom generates 95% of the electricity used in South Africa and 45% used in Africa. Eskom Enterprises, the wholly-owned subsidiary of Eskom, together with its subsidiaries, serves as a means by which all the non-regulated activities of Eskom, both inside and outside South Africa, are carried out. The operations of Eskom are located in South Africa. Eskom Enterprises has operations on the African continent, with its head office being located in Johannesburg, South Africa, and other offices in Uganda, Nigeria and Mali.  The ownership of Eskom vests in the South African government. (www.eskom.co.za)

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