Anglo American plc was formed in 1999 from the combination of AngloAmerican Corporation of South Africa and Minorco. Its global headoffice and its primary listing are in London. In Britain andContinental Europe, Anglo American subsidiaries and joint venturesemploy some 37,000 people - about 17% of its globalworkforce.

Over the last three years, Anglo American plc has investedstrongly in Europe, growing its established core businesses in theaggregates and paper and packaging sectors with a series ofacquisitions including of Tarmac plc, Assi Sacks, Syktyvkar inRussia and half the assets of French packaging company, LaRochette. These make the Company:

• the leading UK aggregates producer;
• Europe's biggest zinc miner;
• the world's leading producer of industrial sacks; and
• Europe's leading supplier of A4 copy paper.

Anglo American's European operations embrace industrial minerals(Tarmac, Tarmac Iberia etc); paper and packaging (Mondi Packaging,Frantschach, Neusiedler and 50% of Aylesford Newsprint); basemetals (Lisheen zinc mine in the Republic of Ireland); explorationactivities (Sweden, Finland and the Republic of Ireland) and BoartLongyear's mining technology and products operations.

PAPER AND PACKAGING

Anglo American Paper and Packaging, operating under the MondiEurope brand, has been an active investor in Europe since acquiringstakes in the Austrian packaging and paper companies, Frantschachand Neusiedler in 1990 and 1992 respectively. Mondi took acontrolling interest in both companies in 2000. Other interestsinclude 50% of Aylesford Newsprint in the UK (acquired in 1993);64% of Swiecie of Poland (acquired in 1997); Amcor Fibre Packaging(acquired in 1999 and renamed Mondi Packaging UK/France); ownershipof Assi Sacks (from Assi Doman in 2000); 50% of SCP Ruzomberok ofSlovakia (in 2000) and 100% of Danisco UK (in 2001); 50% of LaRochette's assets (including plants in France, Belgium and the UK)(acquired in 2002) and 98% in Syktyvkar in Russia.

Mondi Europe accounts for about 70% of Anglo American's paperand packaging turnover. It has over 100 plants in Europe.

AGGREGATE PRODUCTION STATISTICS

		2002	2001
Graphic papers	000 tonnes	1,476	1,143
Pulp	000 tonnes	182	188
Packaging papers	000 tonnes	1,520	1,290
Corrugated packaging	Million m2	1,121	780
Industrial bags	Million units	2,600	2,400
Consumer bags and pouches	Million units	470	305

Aylesford Newsprint is the UK's leading producer of 100%recycled fibre newsprint. The mill recycles 500,000 tonnes p.a. ofrecovered paper and is located just south of London, from wheremuch of its waste paper is sourced. Aylesford is a single-siteoperation with two paper machines and an annual production capacityof 400,000 tonnes. Aylesford is a joint venture between AngloAmerican and SCA of Sweden.

The Frantschach Packaging Group is Europe's largest producer ofindustrial sack packaging and sack papers, with three paper millsand 63 converter plants situated throughout Europe and the MiddleEast. The Group also has significant barrier coating and flexiblepackaging interests. It has 8 flexible packaging, 7 barrier coatingand 2 release liner operations. The total annual productioncapacity is approximately 2.5 billion industrial sacks, 600,000tonnes of sack paper, 180,000 tonnes of market pulp, 470 millionconsumer bags and 1.6 billion m2 of barrier coated products.

Neusiedler manufactures uncoated woodfree papers for officecommunication at seven mills located in Austria, Hungary, Russia,Slovakia and Israel. The annual capacity of these mills is some 1.7million tonnes of paper and 960,000 tonnes of integrated pulpthrough the acquisition of management control and 50% of theSlovakian uncoated woodfree producer SCP Ruzomberok (annualproduction capacity 300,000 tonnes) and 98% of the voting stock inSyktyvkar, the Russian pulp and paper mill. Neusiedler hasconsiderably strengthened its leading position in the Europeanoffice communications paper market. A major expansion project iscurrently underway at Ruzomberok which will increase its papercapacity to 430,000 tonnes by the end of 2003.

Mondi Packaging Europe

Mondi Packaging Europe is a leading corrugted packaging group inthe United Kingdom, France, Ireland and Poland. It employs some2,300 people in the United Kingdom. The business is divided intothree major divisions:

Swiecie is the largest pulp, paper and packaging company inPoland. A single-site operation, the company has an annualproduction capacity of 320,000 tonnes of unbleached pulp and 80,000tonnes of semi-chemical pulp, which are used to produce 121,000tonnes of unbleached sack kraft paper and 516,000 tonnes ofcorrugated case materials. The company has achieved significantproductivity improvements while at the same time reducing itsunderlying cost base. A major rebuild of a linerboard machine willlead to further cost reductions as well as an increase in capacityand quality improvements.

Mondi Board

Mondi Board supplies premium quality corrugated board to thepackaging industry from its state-of-the-art production facilitiesat Coalville and Preston.

The business supplies a comprehensive range of board grades fromthe conventional, through heavy duty grades up to high quality,clay-coated board for top end speciality packaging with highquality print requirements. Raw materials are carefully selectedfrom suppliers with approved accreditation in environmental andquality performance.

Mondi Board currently supplies over 7% of the overall 4,500million sq.m. market for corrugated sheet cardboard in the UK witharound 70% of output going beyond Mondi Packaging and into thesheet plant market.

Mondi Packaging UK

Mondi Packaging is the leading provider of total corrugatedpackaging solutions in the UK. The development of Integrated Plantson green-field sites in March, Cambridgeshire and Mold in NorthWales has led the industry in manufacturing terms. The company has1,200 employees, a £150 million turnover and an output equating to650 million average sized boxes a year.

Mondi Display

Mondi Display specialises in point of purchase and corrugatedpackaging. Operating as Colour Case and Display it is a leadingsupplier of effective, innovative and high quality displaysolutions in the UK. The new dimension lies in the ability totranslate even the simplest design brief into a complete solution.Finished, printed and assembled display units have provided clientswith the ultimate in PoP display solutions. The latestcomputer-aided design systems can produce three-dimensionalvisualisations of customers' projects and place them in a retailcontext for viewing on-line.

Mondi's Major UK Facilities

Chesterfield

Mondi Packaging at Chesterfield is a Sheet Plant, specialisingin PoP display applications, and is the preferred supplier of PoPDump Bins, inter alia, for DIY retail giant B&Q. The plantproduces high quality print packaging for furniture, leisure andwhite goods sectors.

Coalville

Mondi Board at Coalville is a state-of-the-art manufacturer ofcorrugated sheet board which employs around 120 people. The plantsupplies everything from the raw materials for basic corrugatedboxes to high quality, clay-coated board for top end specialitypackaging nationwide.

Diss

Bux Corrugated at Diss is the largest manufacturer of wirestitched cases in the UK. The company specialises in selling to thetrade and produces corrugated board and cases. It employs 232people.

March

The March plant produces corrugated packaging, including die cutand glued cases and trays to be supplied nationwide. Plantfacilities include a corrugator plus 8 conversion machine, and fullfacilities to produce its own board, and totally produce cases inrelation to die cutting and printing. It employs 173 people.

Mold

The Mold plant employs 125 people. It started full production ofcorrugated fibreboard in 1994. The manufacturing plant combinesstate-of-the-art processes with low cost. Mold has been IIPapproved for three years and has a unique family culture - a rarityin a modern business of this size.

MONDI FRANCE

Mondi Packaging, France employs 500 people and has a 2% marketshare. It consists of two divisions - manufacturing corrugatedsheet cardboard and corrugated packaging. Its main customers are inthe automobile and cosmetics industries. Mondi France's plants arelocated at Saint Quentin (150kms north of Paris); Emball (Lille),Thiverval (30 kms south-west of Paris); Cedi Packaging (300 kmswest of Paris) and Arco (on the outskirts of Paris). Cartopack hastwo plants in Lyon and Grenoble.

MONDI IRELAND

Mondi Ireland is located at Cavan Box, Kilmore, Ballyjamesduff,Co. Cavan, 50 miles from Dublin and 70 miles from Belfast. Theplant is 100,000 sq.ft. It manufacturers Corrugate and LithoLaminated packaging, mainly for the food industry. There are 50people employed at the plant and annual sales are approximately 10million euro.

MONDI POLAND

Mondi Packaging in Poland consists of two integrated corrugatedplants - Mondi Packaging Bzwp and Mondi Packaging Swiecie. AtSwiecie there are 224 employees and at Bzwp 152. Mondi PackagingPoland is the market leader in its region.

INDUSTRIAL MINERALS OVERVIEW

Tarmac is the leader in the production of construction materialsin the UK. It has operations in continental Europe, the Middle Eastand Far East. The construction materials operations principallyinvolve the production of crushed rock, sand and gravel, asphalt,concrete and mortar, concrete productions, lime and cement.

Tarmac products are used in developing road and railinfrastructure, hospitals houses and schools and products asdiverse as toothpaste and bread. Tarmac aims to conduct itsactivities in a sensitive manner, helping to ensure a sustainableresource base for our future generations.

Key customer groups for Tarmac include civil and buildingindustry contractors; merchants and distributors; industrial usersand DIY consumers.

Through the extraction, processing and delivery of mineralresources for use within the construction and industrial sectors,Tarmac produces sand and gravel; crushed rock, asphalt; ready-mixedconcrete; mortar; precast concrete products; blocks and paviors;cement; lime and industrial products. Tarmac is also investing inthe development of recycled products and the processing and use ofsecondary sources of aggregates such as slag, crushed concrete andasphalt.

Tarmac UK

Employing some 8,500 people and with over 600 production unitsTarmac Ltd operates on a geographical structure with four regionalbusinesses focussed on serving local markets.

• Tarmac Northern Ltd
• Tarmac Central Ltd
• Tarmac Western Ltd
• Tarmac Southern Ltd
  
  

Together these four businesses combine with Tarmac ConcreteProducts and Tarmac Recycling to form the largest aggregatesbusiness in the United Kingdom.

Tarmac National Contracting operates as a self-standingnational business.

Tarmac is currently constructing a major new cement plant atBuxton in Derbyshire. It will be fully commissioned during2004.

Some of our quarries can boast huge outputs of material eachyear. Tarmac's biggest UK quarry is Tunstead in Derbyshire whichhas an annual stone output of 5.5 million tons. This is far aheadof the second largest quarry, Swinden in North Yorkshire whichproduces 2.1 million tons a year and Holme Hall in South Yorkshire(1.6 million tons).

Tarmac's largest concrete-producing plants are in London -thebiggest being Kings Cross followed by Bow and Paddington.

Tarmac products have been used on many high profile projects.The latest is to supply asphalt for the new M6 Toll road which willprovide a 27-mile dual, three-lane motorway with a low-noisesurface around the northern and eastern edge of the West Midlandsconurbation, offering a genuine alternative to the busy M6.

Tarmac Concrete Products

Tarmac Concrete Products is one of the UK's leading concreteproduct companies consisting of four well-established brands:Tarmac Topblock, Tarmac Precast Concrete, Tarmac TopFloor andTarmac TopPave.

Tarmac National Contracting

Tarmac National Contracting comprises the largest services,contracting and asphalt surfacing group in the UK with regional andarea offices, supported by a ready supply of materials direct fromour own quarries and asphalt plants.

Tarmac Recycling

Tarmac Recycling Ltd operates from 26 permanent and two jointventure aggregates recycling facilities plus various short-termcontract facilities as well as operating from three landfill sites.Last year Tarmac Recycling achieved sales of 1.3 million tonnes.For further information on Tarmac in the UK, please go to thewebsite: www.Tarmac.co.uk

Tarmac France

Tarmac France (France and Belgium) has more than 790 employeeswith the former comprising of two main businesses, Tarmac Materiauxde Construction (TMC) which manufactures concrete products, andTarmac Granulats, a producer of aggregates.

The product portfolio of TMC includes blocks, block paving,kerbs, pipes, and specialised pre-cast concrete products such asfencing and chambers, serving both the construction industry andthe public works sectors. Principal clients are the national andregional chains of builder's merchants who on-sell to contractors,individuals and pubic works companies. Businesses are situated inthe north of France, the Paris basin, Lyon, Rhone-Alps, Bordeauxand south Belgium.

Tarmac Granulats is a quarrying business based in the Beaujolaisand Centre regions of France, producing a variety of crushedaggregates. Sand and gravel as well as limestone-derived aggregatesfeed into the local public works and road building markets as wellas the construction industry for use in the manufacture of concreteand concrete products. The main application of hardstones is inroad surfacing.

Tarmac recently acquired Rudigoz, a concrete paving specialistin France.

For further information on Tarmac France, please go to thewebsite: www.Tarmac.co.uk

Tarmac Central Europe

Some 1,300 people work within Tarmac Central Europe (Germany,Poland & Czech Republic).

In Germany, Tarmac has four aggregate businesses servingconstruction companies and concrete and asphalt producers primarilyin Berlin (www.elbekies.de),Stuttgart (www.msw-mineralstoffwerke.de),north east Germany (www.mon.de/dd/Lausitzer-Grauwacke/)and Leipzig (www.keissand.com).

Tarmac's Polish operations cover aggregates, concrete paving,asphalt and ready mixed concrete. The aggregates businesses servecustomers primarily in Wroclaw, Lodz, Warsaw and Poznan as well asconstruction sites throughout southern Poland (www.wksm.com.pl and www.kosmin.com.pl) Tarmac is themarket leader in the production of concrete paving for privateindividuals, construction companies and local governments. It hasseven production facilities serving customers in Warsaw (www.kbTarmac.pl), Krakow and Katowice (www.libet.pl) and Wroclaw.

In the Czech Republic, Tarmac Severokamen a.s. is the secondlargest aggregate producer serving construction companies andasphalts and concrete producers, in north Bohemia and Prague(www.Tarmac.cz).

Tarmac Iberia

Tarmac Iberia, the Tarmac Group's Spanish subsidiary, has twomain regions in which it operates, following the purchase of theMavike Group in October 2002. These are the Central Regions, mainlyMadrid (although there are some activities in Castile-Leon) whereTarmac is market leader in aggregates and ready-mixed concrete,operating four sand and gravel pits, four crushed rock quarries and19 ready-mixed concrete plants and the Mediterranean Region, whereTarmac has a limestone quarry, exclusive trading rights over afurther limestone quarry and 26 ready-mixed concrete plants. TarmacIberia has approximately 400 employees.

For further information on Tarmac Iberia, please go to thewebsite: www.Tarmac.co.uk.

BOART LONGYEAR

Boart Longyear is a leading global manufacturer and supplier ofproducts, systems and services to the international exploration,mining, construction, quarrying, geotechnical, environmental andindustrial markets.

Boart Longyear's global businesses centre on providing customerswith a unique range of industrial diamond and tungsten carbideproducts, systems and services across five areas:

• Contract drilling services;
• Drilling tools and equipment;
• Coring tools and equipment; and
• Wear components
  

Its European head office is in Burghaun in the Federal Republicof Germany. Boart Longyear employs 1,380 people in Europe and hasfacilities in Germany, Ireland, Poland, Scandinavia, Belgium,Switzerland, Spain, Italy, France, the Czech Republic, Cyprus andthe United Kingdom. Its main manufacturing plants are located inBurghaun and Meerbusch in Germany, Shannon in Ireland and Wilkow inPoland.

ANGLO BASE METALS

LISHEEN

Anglo American is the owner and operator of Europe's biggestzinc/lead deposit. The mine is located near the village of Moyne inCounty Tipperary in the Republic of Ireland. It is predicted toproduce approximately 4.8 million metric tonnes of zinc and leadconcentrate over the 14 year currently predicted life of themine.

The mine was officially opened in 2000 and employs around 280people, 80% of whom have been recruited locally. It is anunderground operation which was developed at an initial capitalcost of US0 million.

Lisheen was the first mine in Ireland to be awarded anIntegrated Pollution Control Licence.