Anglo American plc with its subsidiaries, joint ventures andassociates is a global leader in the mining and natural resourcessectors. It has significant and focused interests in gold,platinum, diamonds, coal, base and ferrous metals, industrialminerals and forest products, as well as financial andtechnological strength. The Group is geographically diverse, withoperations and developments in Africa, Europe, South and NorthAmerica and Australia. Anglo American represents a powerful worldof resources.

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History

Anglo American plc was formed in May 1999 through thecombination of Anglo American Corporation of South Africa (AACSA)and Minorco. It has its primary listing on the London StockExchange and is majority owned by UK institutions.

Anglo American Corporation was founded in 1917 by Sir ErnestOppenheimer with authorised capital of £1 million, chiefly raisedfrom UK and US sources - hence the Company name. Under Sir Ernest'sleadership, Anglo American forged ahead with significant goldmining developments in the 1920s and 1930s. In 1926 Anglo AmericanCorporation became the largest single shareholder in De Beers, ofwhich Sir Ernest Oppenheimer became chairman in 1929. In 1928 AngloAmerican first became involved in developing what is now known asthe Zambian Copperbelt. In the same year, Anglo American also begannegotiations with Hans Merensky, who discovered the eponymous reefof platinum group ores which today make South Africa the world'sbiggest producer of platinum.

Also during the 1920s and 1930s, Anglo American played a crucialrole in the establishment of industrial operations like AECI(African Explosives and Chemical Industries) in which the companysold its majority stake in 2001, and Boart, the mining technologyand drilling equipment group.

During the late 1940s and 1950s, Anglo American's principalenergies were directed at the development of the Free Stategoldfields and the Vaal Reefs mine, whose five major mines weredeveloped simultaneously in a commitment of enormous proportions.The success of these mines catapulted the Company to the forefrontof the international mining industry and the experience gave it theconfidence to develop Western Deep Levels (opened in 1957) in whichgold was mined at twice the depth previously recorded. In 1957, SirErnest Oppenheimer died and was succeeded by his son and OppositionMember of Parliament, Harry Oppenheimer.

The acquisition in 1961 of an interest in the Hudson Bay Mining andSmelting Company in Canada marked the first major Anglo Americaninvestment outside southern Africa. This was followed up in theearly 1970s with the acquisition of Latin American assets and ofthe founding of the Minerals and Resources Corporation (laterMinorco).

In the mid 1960s the Group's increasing array of industrial assetswere consolidated into the Anglo American Industrial Corporation(amic) and by the Company's entry to the steel industry through theacquisition of Scaw Metals and the development of the innovativeHighveld Process for producing steel.

In 1967 Anglo American founded the Mondi Group - its entry into thetimber, pulp and paper industry initially in South Africa where,post 1984, it became one of the two major players and,subsequently, in the European packaging sector.

In 1969/70 the Group saw the nationalisation of its copper mines inZambia.

By 1975, Anglo American had developed a portfolio of eight coalmines in South Africa which were consolidated as Amcoal (laterAnglo Coal). The Company was also one of the key shareholders inthe development of the Richards Bay Coal Terminal, which enabledSouth Africa to become a major coal exporter.

From the time that the National Party took power in 1948, theCompany enjoyed an uneasy, and often adversarial, relationship withthe South African Government. The Oppenheimer family were prominentin and leading funders of, opposition parties and Anglo became amajor supporter of black education projects. In 1981, the Companybecame the first mining house to encourage the recognition of blacktrades unions.

Harry Oppenheimer retired as Chairman of Anglo American and DeBeers at the end of 1982 and 1984 respectively, and was succeededby Gavin Relly and Julian Ogilvie Thompson (who in 1990 becameChairman of Anglo American). In 1985, much to the anger of theSouth African Government, Gavin Relly led a delegation ofbusinessmen to meet the ANC leadership in Lusaka. A role which wasmirrored in the involvement of several leading Anglo Americanfigures in assisting in the delicate process of transition to anon-racial democracy.

In 1993 the Group carried out a major reorganisation of its assetswith Anglo American holding assets in Africa and Minorco interestsin other parts of the world.

Henceforth the pace of international development began to gatherspeed with the Mantoverde copper mine in Chile coming on stream in1995; the Sadiola Hill gold mine in Mali starting production in1996; the acquisition of the Group's first coal assets in LatinAmerica; the start of construction of nickel and zinc mines inVenezuela and Ireland respectively in 1997; and the opening of themassive Collahuasi copper mine in Chile (of which Anglo Americanowns 44%) in 1999.

Back in South Africa, in 1996 the Group completed the biggest blackempowerment deals in South African corporate history through thesale of interests in Johnnic and JCI to the National EmpowermentConsortium and the African Mining Group.

In 1998, following a major strategic review, Anglo Americanannounced that it would combine with Luxembourg-headquartered,Minorco, to form Anglo American plc with its primary listing inLondon. This was in order to provide a better base forinternational expansion and from which to access capitalmarkets.

The process of transferring the primary listing to London was theculmination of a frenetic period of restructuring includingunravelling many of the cross holdings which had previouslycharacterised many leading South African companies; the buying outof minorities from a number of Anglo American subsidiaries; and aseparation of administrative and technical functions from De Beers.The new company was listed in London, Johannesburg and the SwissExchange on 24 May 1999.

In the period since the listing, Anglo American plc has been activein disposing of 'non core' assets (principally most of itsindustrial and financial services interests) - raising some US.4billion n the process - and of acquiring some US billion of new'core' businesses. The major transactions have included: - theacquisition of Tarmac plc, to establish Anglo American as theleading player in the UK aggregates market and No.2 in ready-mixedcement;

- the strengthening of Mondi's European paper and packaginginterests inter alia through Frantschach and the acquisition ofAssi Domain's paper sacks business;

- the acquisition of Shell's Coal interests in Australia andVenezuela and the subsequent purchase of a one third interest inColombia's largest coal mine, Cerrejon Norte; and

- the unravelling of the cross-holding between Anglo American andDe Beers - which had previously owned 32.5% and 35% of each otherrespectively. Through a highly complex transaction in 2001, AngloAmerican, as part of a consortium also including the Oppenheimerfamily and the Government of Botswana, purchased and delisted DeBeers. De Beers' holding in Anglo American was distributed to itsshareholders and Anglo increased its share in De Beers to 45%. TheOppenheimer family hold a contract for the management of DeBeers.