Martha Sekaboane Joshua Burns Alvaro Vega Nelson Silva Emma Coombs Sizwe Mdikane Thabazimbi Mine, Capcoal Colliery, Australia Los Bronces Mine, Chile Los Bronces Mine, Chile Capcoal Colliery, Australia New Vaal Colliery, South Africa

TRANSFORMATION IN ANGLO AMERICAN SOUTH AFRICA PRESENTATION TO THE PORTFOLIO COMMITTEE ON MINERAL RESOURCES

Godfrey Gomwe Lindiwe Zikhali

02 November 2011 CONTENTS

1. Anglo American in South Africa Today

2. Mining Charter Progress to Date

3. Contributions beyond the Mining Charter

4. Appendices

1. Ownership and Joint Ventures – List of Transactions

2. Anglo American’s Commitment to South Africa

2 1. ANGLO AMERICAN IN SOUTH AFRICA TODAY

3 A NATIONAL CHAMPION

Founded in Johannesburg , Anglo American has a 94-year history in South Africa

• Today, a global company with operations in >40 countries; however South Africa remains the single most important country to the Group

• 3 out of the Group’s 7 Commodity Business Units are globally managed from South Africa

• 4 Business unit CEOs based in South Africa and 8 out of 15 ExCo members are South African

• In 2010, c.43% of the Group’s operating assets, c.48% of its revenue and c.51% of its operating profit had their origin in Southern Africa

• Anglo American is an employer of choice to c. 91, 500 employees in South Africa

Roof bolt installation using a remotely controlled drill at Tumela mine

4 Anglo American South Africa Today Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 BUSINESS OVERVIEW South Africa Simplified Structure The Group has a number of assets which (as at 31 December 2010 ) are strategic to South Africa: Anglo American South Africa Ltd • Anglo Platinum (c.79% owned) – the world’s (AASA) leading platinum producer, accounting for c.39% of global supply Anglo SA (Proprietary) Ltd • (c.65% owned) – the world’s 4th largest iron ore producer in the seaborne iron ore market Anglo Anglo SA Capital Operations (Proprietary) Ltd • Thermal Coal (100% owned) – one of the world’s Ltd largest private sector coal producers and exporters

Anglo • (45% owned) – the world’s leading Kumba Thermal Coal American De Beers diamond business Iron Ore Thermal Coal is a Platinum division of AOL 100% • Other: Samancor Manganese (40% owned) – the 79.7% 65.3% 45.0% of “B” world’s largest integrated producer of manganese shares ore; Exxaro – flagship BEE mining company in South Africa (9.7%) Other: Samancor – 40% Exxaro – 9.7% • Anglo American South Africa Limited (AASA) is the holding company for all of Anglo American’s interests in South Africa 5 Anglo American South Africa Today Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 OPERATING FOOTPRINT In 2010 Anglo American had over 30 mines and shared access to 3 THERMAL COAL ports in South Africa 1. Greenside 2. Goedehoop 3. Kleinkopje Western Limb Eastern Limb Zimbabwe 4. Landau PLATINUM 1. Dishaba 13. Mogalakwena 5. Kriel 6. New Denmark 2. Tumela 14. Bokoni Mozambique 3. Union 15. Ga-Phasha (JV) 1 7. New Vaal 13 4. Bafokeng/Rasimone (JV) 16. Twickeham Mine 8. Mafube 14 1 5. Khuseleka 17. Modikwa 15 Botswana 9. Isibonelo 16 6. Thembelani 18. Mototolo (JV) 10. Zibulo 17 2 7. BthBathopel e 1 2 IRON ORE AND 18 8. Khomanani 3 MANGANESE 1 9. Siphumelele 4 1. Sishen 2 3 10 10. 3 2 2. Thabazimbi 5 7 7 4 1 5 11. 6 8 9 11 9 6 3. Hotazel 10 12. Pandora 12 2 3 DIAMONDS Richards Bay 1. Venetia 2. Kimberley SOUTH AFRICA 3. Voorspoed

OTHER MINING AND INDUSTRIALS Saldanha Bay 1. 2. Scaw Metals Port Elizabeth 6 Anglo American South Africa Today Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 A MAJOR CONTRIBUTOR TO SOUTH AFRICA’S ECONOMY Anglo American is:

A significant investor in South Africa • Invested c. R148bn (c.$21.1bn) in Capex in South Africa since 1999 (till 2010)

One of the largest contributors to the South African fiscus • In 2010, Anglo American group companies paid c.R14.3bn (c.$1.95bn) in direct and indirect taxes A major contributor to South African foreign earnings • c.50% of South Africa’s foreign earnings are generated from commodity exports • Since its London listing in 1999, Anglo American’s foreign shareholding has increased from about 17% to c.66%, resulting in a total of c. R124.5bn (c. US$21.5bn) of capital inflow. Generated export revenues of c.R105bn (c.$14.3bn) in 2010 A significant contributor to the South African economy • In 2010 Anglo American produced some 2.5% of South Africa’s GDP One of the largest components of the JSE (together with its controlled companies) • Combined market capitalisation of c.R770bn (c. US$90bn), representing c.18% of the value of JSE top 100 as of 31 December 2010 • South African shareholders make up c. 34% of AA plc Share Register

A key partner to some of South Africa’s most important state-owned enterprises • Eskom: In 2010, Anglo American spent c.R3.1bn (c. US$423m) with Eskom, and delivered 32 million tonnes of thermal coal ~R4.6bn (c. US$630m) to Eskom for South Africa’s electricity needs • Transnet: c. R4.1bn (()gc.US$560m) Anglo American spend on Transnet in 2010

7 Anglo American South Africa Today Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 A CONSIDERABLE PROJECT PIPELINE IN SOUTH AFRICA

Anglo American has a c. R30bn (US$4. 4bn) project pipeline to be delivered over the next 3 years in South Africa

• Iron Ore: – Kolomela project 94% complete, hot commissioning started in Q3 2011

• Thermal Coal: – 6.6 million tonnes of coal per annum Zibulo project is on ramp-up, with full production expected in Q4 2012

– New Largo project (to supply Eskom’s Kusile power station) is in feasibility stage , with Board approval to be sought by Q3 2012

• Platinum: Kolomela Iron Ore Project Commissioning, Postmasburg, – Capital expenditure of c. R1.6bn (US$223m) in Northern Cape the first half of 2011 on various expansion projects at Thembelani, Mogalakwena, Twickenham, Khuseleka and Dishaba mines 8 Anglo American South Africa Today Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 2. MINING CHARTER PROGRESS TO DATE

9 OWNERSHIP AND JOINT VENTURES

Mine planning office, Tumela Platinum Mine

10 OWNERSHIP AND JOINT VENTURES ANGLO AMERICAN EMPOWERMENT TRANSACTIONS Business Unit Transaction Empowerment partners Anglo American has completed all necessary Thermal Coal 26% of current Pamodzi, Women’ s empowerment transactions, and has - Anglo American and future Development Bank, Lithemba, received its conversions to new order mining Inyosi Coal production workforce, communities and Eyesizwe Coal rights Iron Ore 26% of equity Exxaro, workforce, communities - Kumba Iron Ore • c.R60bn in BEE transac tions conc lu de d s ince Manganese 26%f% of equity Exxaro, Ntsimbintle, Ncab, Iziko, 1994 across all business units - Samancor workforce, communities • Significant facilitation provided Platinum Greater than 26% Mvelaphanda, Anooraq, Royal - Anglo Platinum of production Bafokeng, ARM, workforce, • Broad-based participation ensured: strategic communities shareholders, communities, employees Other Mining and 26% of equity Exxaro, Izingwe Holdings, Industrial Shanduka Resources, Southern - Scaw Metals Palace Holdings, workforce, All group company employees are ESOP - Black Mountain communities participants - Gamsberg Diamonds 26% of equity Ponahalo (inc. communities), - De Beers workforce Community participation a key focus • Direct participation of communities affected by Anglo American’s empowerment transactions have led to the mining operations in the benefits they generate creation of flagship black-owned mining companies e.g. Exxaro • Transactions aimed at sustainable, long term Resources, ARM , Mvelaphanda/Afripalm and Shanduka economic uplift of mining areas Resources.

In many cases, Anglo American has contributed directly towards vendor financing for empowerment partners to ensure financial viability and long-term success of the transaction 11 Original / Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 COMMUNITY SHARE OWNERSHIP

Project Lefa La Rona – : Sishen Iron Ore Community Trust:

• Anglo American Platinum has committed to concluding a • As part of the Sishen Iron Ore (SIOC) Black groundbreaking multi-billion rand broad-based economic Economic Empowerment transaction, the empowerment ownership transaction company empowered the communities • Beneficiary communities: Twickenham, Mogalakwena, and Amandelbult operations as well as key surroundingggp its mining operation with a 3% Labour Sending Areas shareholding, held by the SIOC Community • New approach that emphasises broad-based economic Development Trust. empowerment and engagement with the beneficiary communities • The key objective was to help the • Taking Anglo American Platinum beyond legislative commu nities to become both empow ered and compliance economically active in a way that would be sustainable even after mining ceased. “Zuma unveils R3,5 billion share scheme in Limpopo” Apr 07,2011,6:46:00 PM, SABC • The communityypp’s stake was paid up in 2010 President Jacob Zuma unveiled a groundbreaking R3,5 billion share scheme in Anglo Platinum in Limpopo. This to benefit • Current community shareholding is estimated communities in its mining lands… The R3,5 billion Project Alchemy is a community share scheme. Its been set up to drive to be worth R6.3bn, with money flowing to the sustainable socio-economic development for people living in the communities for development projects in 2010 mining areas and 2011 standing at R668m. Article printout courtesy of the South African Broadcasting Corporation Copyright © 2000 – 2007 SABC • The initiatives benefit about 600 000 people. 12 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 EMPLOYEE SHARE OWNERSHIP

Kumba workers to get R2.3bn payout Brendan Ryan | Mon, 08 Aug 2011 14:30

“CHRISTMAS In the Northern Cape will arrive during November this year when Kumba Iron Ore’s Envision broad- based employee share participation scheme is set to pay out up to R500,000 to each of its 5,000 employees.”

Source: MiningMX

13 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 EMPLOYMENT EQUITY

14 HDSAHDSA WomenWIM in Mining EMPLOYMENT EQUITY 60% 54% 51% 52% Progress from 2005 – 2009 50% 44% 10% Women in 40% HDSA* Target 40% Mining Target 30%

HDSA’s in Management 60% 20% 16% 15% WiMiiWomen in Mining 12% 12% 52% 10% 50% 47% 45% 42% 0% 39% 40% Platinum Thermal Coal Kumba Iron AASATotal 34% Ore 30% Including white women Excluding white women 60% 54% 51% 52% 20% 50% 45% 44% 11% 12% 12% 12% 42% 8% 9% 38% 10% 40% 34% 30% 0% 2005 2006 2007 2008 2009 2009 20% Excl. Jnr Incl. Jnr Mgt Mgt 10%

0% Platinum Thermal Coal Kumba Iron AASATotal * HDSA = Historically Disadvantaged South Africans Ore 15 Original Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 EMPLOYMENT EQUITY (continued) Women in Mining Total Women Women in Management As at 31 December 2010 25% 20% 20% 40% HDSA* Target 10% Women In 17% 18% 16% Mining Target 16% 15% 13% 13% Top Management Senior Management 12% Middle Management Junior Management 70% 10%

60% 60% 58% 5% 52% 50% 50% 0% 50% 46% 47% Platinum Thermal Coal Kumba Iron AASATotal 41% Ore 40% 38% Aggregate %HDSA in Management by 33%33% 30% 31% Business Unit 30% 28% 29% Including White Women Excluding White Women 60% 55% 20% 51% 50% 45% 47% 42% 42% 10% 40% 37% 36%

0% 30% 0% 20% Platinum Thermal Coal Kumba Iron OreTotal AASA 10% All transformation reports for 2010 to the Department of Mineral 0% Resources submitted ahead of original March 2011 headline Platinum Thermal Coal Kumba Iron TotalAASA Ore * HDSA = Historically Disadvantaged South Africans 16 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 Women in Mining EMPLOYMENT EQUITY (continued) Total Women Women in Management 25% As at 30 September 2011 20% 19% 20% 18% 19% 17% 40% HDSA* Target 10% Women In 16% Mining Target 13% 15% 12% TopTop Management Mgt (Band 2&3) Senior MgtManagement (Band 4&5) 10% Middle Management Junior Management 70% Middle Mgt (Band 6) Junior Mgt (Band 7) 63% 62% 61% 5% 60% 55% 54% 0% 52%52% 49% 50% Platinum Thermal Kumba Iron AASATotal 44% Coal Ore 40% Aggregate %HDSA in Management by Category 40% 37% 35% 33% 34% Including White Women Excluding White Women 30% 28% 70% 61% 60% 54% 53% 55% 20% 50% 45% 42% 35% 10% 40% 35% 34% 30% 25% 0% 0% 20% Platinum Thermal Coal Kumba Iron Ore TotalAASA 10% 0% Top Senior Middle Junior Total * HDSA = Historically Disadvantaged South Africans 17 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 HUMAN RESOURCES DEVELOPMENT

Employee training at New Vaal Colliery, Gauteng

18 HUMAN RESOURCES ABET Learners DEVELOPMENT 8000 7247

5754 2005-2009 Highlights: 6000

• Scaw Metals provided training in welding and 3955 3831 4000 3692 computing skills to 114 school leavers who normally could not afford further education (in 2504 partnership with the Mayor and the Department of 2000 Social Welfare of the local municipality) in 2005

• R26m spent on education support for secondary 0 2004 2005 2006 2007 2008 2009 and tertiary institutions across South Africa in 2007 Bursars 800 746 • Training and development for employees 707 accounted for c. 6% spend of payroll in 2006 579 600 486 • R19m spent on education support for secondary 395 and tertiary institutions across South Africa in 400 346 2009

200

0 2004 2005 2006 2007 2008 2009 19 Original Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 HUMAN RESOURCES ABET Learners 85 2982 DEVELOPMENT (continued) 3000 444 95 2500 2010-2011 Highlights: 2358

• In 2010 training and development accounted for 2000 c. 5% spend of total employee costs –c.R810m spent on employee training 1500 initiatives,,,,g bursaries, ABET, management programmes and re-training from core 1000 businesses alone (approximately c.R530m or US$63m) despite headcount reduction 500 [Target = 3% of payroll] – Platinum – c. R441 million (US$60m), 0 4.3% of t ot al payr oll Platinum Thermal Coal Iron Ore Other Total – Thermal Coal – c. R202 million Bursars (US$28m), 8.2% of total payroll 55 793 – Kumba Iron Ore – c. R167 million 800 397 (US$23m, 6.8% of total payroll 700 • c.2 600 employees received portable skills training to be employable outside the mining 600 industry in South Africa 500 • Anglo American operates a global world-class technical centre in South Africa, the Technical 400 341 Business Coordination Group, which employs 300 883 personnel in South Africa and the budgeted cost for 2011 is R 946 million . 200 • Anglo American views human resource 100 development as a strategic tool to achieve employment equity targets by 2014 0 Platinum Thermal Coal Iron Ore Total 20 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 MINE COMMUNITY DEVELOPMENT

Patients in the waiting room at the UGM Community Clinic in Kathu, Northern Cape, which services 21 35,000 people in the area MINE COMMUNITY DEVELOPMENT Collectively, since 2007 Anglo American 2007-2011 YTD Mine • Community Development htR11bihas spent c. R1.1bn on various Spend* (Rm) community development initiatives 500 Education (including corporate social investment) Infrastructure • Community development initiatives Health 400 direc tly con tr ibu te to progress ing soc ia l labour plan commitments which are aligned to municipal integrated 300 development plans (IDPs)

200

100

0 Anglo Anglo Kumba Iron AASA American American Ore Platinum Thermal Coal

Students learning about electric circuitry at Kathu High School, Northern Cape * Excluding corporate social investment expenditure 22 Original / Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 MINE COMMUNITY DEVELOPMENT (continued) 2007-2011 Sample of Community Development Initiatives Supported

Road/Bridge • 4 community halls / construction • 16 schools and crèches centres built & upgrading constructed and upgraded • 1 sports ground built Community • 15 classrooms upgraded • 1 multipurpose • 7 areas and 3 villages Infrastructure • 4 science labs constructed community centre Centres immediately benefited and upgraded constructed (incl. a bus/taxi rank) • 11 computer centres • 2 traditional courts constructed and upgraded and offices built

Mine Community Health Water Supply Development Initiatives

• 6 wellness clinics • 9 areas supplied constructed with fresh water • 1 areas provided with mobile clinics

Electricity Education

• 9 areas in Limpopo, N. • R250m annual spend on R&D CdMlCape and Mpumalanga Sanitation • R128m spent on education supplied with electricity support (incl. educator training, infrastructure Maths/Science support and early • Bethal substation • 6 areas received childhood development) upgrade benefited c. sewage works 23 100 000 people Original / Revised Mining Charter upgrades Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 ENTERPRISE DEVELOPMENT

Olivia Jacobs at the Butterfield Bakery in Kathu. Northern Cape. The business was founded through assi st ance f rom A ngl o American Zimele.

24 ENTERPRISE DEVELOPMENT/JOB CREATION: ZIMELE

Zimele*

Anglo American Anglo American Supply Chain Fund Community Fund Olwazini Fund Green Fund Khula Mining Fund (Approved)

· SlhiSupply chain · JiJunior sca le · FdiFunding · FltiiFormal training · FdFund investments mining entrepreneurs and development environmentally investments · Support around Anglo · Support sustainable · R200m Fund · Minority American’s · Max R20k/deal projects. · Support equity and mines · Loans only @ · Support · Minority loans and labour 6% p.a. · Minority equity eqqyuity and · MR/dlMax R5m/deal sending areas andld loans loans · Loans @ · Support · Max R10m/deal · Max R40m/deal Prime + 1% · Max R1m/deal · Loans @ Prime · Loans @ Prime p.a. · Loans only @ 6% p.a. p.a. p.a. Management Services Managerial / Legal / Company Secretarial / Accounting / Corporate Governance / Safety, Health & Environment / Marketing / PR, etc * Established 1989 25 Revised Mining Charter Presentation to the Portfolio Committee on Mining, 02 November 2011 ENTERPRISE DEVELOPMENT/JOB CREATION: ZIMELE (continued) 31 August 2011

Anglo Supply Chain American Community Total Olwazini Fund Fund Khula Mining Fund Fund

Number of transactions 1,301 42 20 1,176* 63*

People employed 18,267 7,119 1,014 9,957 177

Turnover – Rm 1,940 994 491 438 17

Funding - Rm 519 96 164 258 0.56

Female entrepreneurs supported 35% 26% 6% 36% 40%

Youth supported 48% 10% 36% 49% 65%

* Companies 972 42 20 848 62 Repeat transactions 329 0 0 328 1 with the same companies TtlTotal 1, 301 42 20 1, 176 63 Average loan repayment rate 86% 90% 90% 84%

26 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 JOB CREATION: BUSINESS CALL TO ACTION The Call: • Anglo American has committed to create 25,000 employment opportunities (preserved and new jobs) with 1, 500 companies by 2015 – 18,267 jobs already created since 2008 • 32 small business hubs to be created (29 already in place) in Anglo American’ s mining communities and poverty stricken labour sending areas

Richard Olifant, an Anglo American Zimele entrepreneur in training 27 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 LOCAL PROCUREMENT

Local artisans maintain and repair large buckets and bowls from 28 trucks close to Platinum’s Mogalakwena mine LOCAL PROCUREMENT

Anglo American Historical BEE • Group BEE spend and business Procurement Spend 1999-2009 (Rbn)

development has grown 30 significantly: from c. R1.1bn 24.6 23.5 ($133m) in 2000 to c. R23. 5bn 25 (c.$2.8bn) in 2009

17.3 20 • Excluding procurement spend with state owned enterprises 15 12.3 and municipalities, this represented c. 40% of total 9.0 10 spend 5.8 3.6 2.4 5 1.5 • In 2009 a dedicated local 1.1 1.1 procurement function was also 0 initiated with Supply Chain to 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 drive local procurement in Anglo

American 29 Original Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 LOCAL PROCUREMENT (continued)

• In 2010, BEE local 2010 BEE Procurement Spend by Category and Business Unit (%) procurement spend was Lines = Revised Mining Charter Targets c.R21bn (US$2.4bn) in Capital Consumables Services goods 2010, representi ng 44% 80% Capital Goods of total spend (excluding Services 70% 67% Consumables state owned enterprises 60% 59% 50% 51% 50% and municipalities) 50% 47% 43% 43% 42% 40% 35% 31% • In H1 2011, 42% of total 30% 25% spend of managed 20% 10% businesses was with 0% historically disadvantaged Anglo American Platinum Anglo American Thermal Anglo American Kumba Anglo American South Coal Iron Ore Africa South Africans (excluding state owned enterprises and municipalities)

30 Revised Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 HOUSING AND LIVING CONDITIONS Lakhutshona LHC Phase 2 housing at Sishen, Northern Cape Pensfontein employee housing, Kolomela, Northern Cape

31 Completed hostel conversion, Thabazimbi, North West Seraleng Project for 924 employees in Rustenburg, North West HOUSING

• Hostel occupancy has been reduced from 19 895 in 2004 to 12,547 in 2009/2010 • c. R2 billion committed to employee housing initiatives to be implemented by 2014 • Memorandum of Understanding between Anglo American’s Platinum Business Unit and National Department of Housing in place (Limpopo and North West Provinces)

Completed hostel conversions – External view, Thabazimbi, North West

Completed hostel conversions – Kitchen & bedroom, Thabazimbi, 32 North West Original Mining Charter HOUSING (continued)

• The targgpyppet occupancy rate of 1 person per room b y 2014 will be met through a combination of hostel conversions and facilitating home ownership by employees:

• Employee housing allowances and subsidies range from c. R1,000-R7,,p000 per em pyployee

• In total, c. 28,000 housing units to be built (20,000 units in partnership with the national Department of Human Settlements in the Limpopo and North West New employee housing – External view, Aloe Provinces) Ridge, Mpumalanga

New employee housing – Kitchen, Aloe Ridge, New employee housing – Bathroom, Clewer, Mpumalanga Mpumalanga 33 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT

The jig technology plant (SEP) at Sishen mine, Northern Cape, upgrading waste material into iron ore and increasing iron ore production by 13 million tonnes per annum

34 BENEFICIATION AND RESEARCH & DEVELOPMENT

• The Original Mining Charter provided little clarification as to the definition and meaning of beneficiation for the mining industry • Despite this, Anglo American continued to conduct extensive work and research into formalising its beneficiation strategy and approach at Business Unit level • In 2009, position papers for the beneficiation of Anglo American’s core commodities in South Africa (iron ore, platinum and thermal coal) were developed for approval at ExCo level within each respective Business Unit (Kumba Iron Ore, Anglo American Platinum and Anglo American Thermal Coal) • Since this process was initiated, work has been under way to further develop the initiatives already implemented to enhance beneficiation in line with section 26 of the MPRDA and the new Beneficiation Strategy • Beneficiation initiatives have been implemented across all of Anglo American’s business units in South Africa and have directlyyj contributed to job creation

35 Original Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 BENEFICIATION AND RESEARCH & DEVELOPMENT: PLATINUM

Key beneficiation initiatives: “Angloplat unveils R100m PGM fund as part of benefi fiiticiation st rat egy” • In partnership with various government departments 23rd July 2009 providing input to co-develop a fuel cell strategy for South

Africa “The launch of the (Anglo American Platinum’s beneficiation) strategy came at a time when government • Supporting the catalyst manufacturing industry within the was be ing c ha llenge d, an d w hen in itia tives like th ese were needed… In the past, PGMs only made up about 2% of Automotive Development Plan the beneficiation figures, but that it had recently reached up to 20% of the total amount of metals beneficiated in • Investing in a fuel cell company that currently services the South Africa… We hope that as we proceed, we will also be able to increase the PGMs in terms of the percentage mobile communications industry that is beneficiated in South Africa…. This will assist in making sure that South Africa becomes an industrialised • Providing the local jewellery industry access to a metal country.” financing scheme Susan Shabangu, Minister for Mineral Resources

• Sponsoring annual jewellery and innovation competitions to “Platinum in particular is a unique commodity that enables promote interest, excitemexcitementent and drive creativity and the producers to directly support the demand and the innovation across the PGMs sector growth of the market development for the product. Our large reserves in southern Africa mean that is an opportunity to directly inject economic growth and job • Collaboration with the Department of Science and creation into this economy.” Technology, providing seed capital through the R100 Neville Nicolau, CEO, Anglo American Platinum million PGM Development Fund, connecting international partners with the local fuel cell development program

36 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT: PLATINUM (continued)

Key research & development initiatives:

• Anglo American Platinum has a number of programmes researching new applications and uses

• The business engages in projects with our fabricator partners and local research institutions in South Africa to develop local research capacity in the value addition space and assist to develop world- class PGM research competence in South Africa – these include:

• EtblihEstablishmen t o f a deve lopmen tft fun dtd to encourage pro duc t Anglo American Platinum fuel cell at development, commercialisation and beneficiation Lephalale, Limpopo Province

• Project support provided at local universities

• Jewellery development studios and research support at 6 local institutions

• PGM collaboration workshop to identify opportunities with local and international PGM specialists: 16 project pr oposal s suppor ted

• PGM innovation competition to drive innovation into the local industry Platinum autocatalyst 37 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT: THERMAL COAL

Key beneficiation initiatives:

• Most of the coal mined by Anglo Coal South Africa undergoes a beneficiation “washing process” in order to improve the saleability of the product coal (Eskom’s new-generation power will require washed coal)

• In partnership with Anglo American Platinum, Anglo American Thermal Coal is piloting a stationary fuel cell on an Anglo Coal exploration site near Lephalale in the Limpopo province (the electricity generated will be channelled to support a disadvantaged community project)

• Anglo American Thermal Coal supplies weathered coal for the production of a specialised humic acid based fertiliser. This enhances rehabilitation of the environment, through the use of what would Beneficiation plant at Goedehoop Colliery, eMalahleni, Mpumalanga otherwise be a potential pollutant.

38 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT: THERMAL COAL (continued)

Key research & development initiatives:

• Anglo American Thermal Coal is a leader in coal-bed methane (CBM) technology in South Africa, which is being considered for potential power generation, and has run a successful pilot looking at the beneficiation of the by-products of CBM

• Thermal Coal in collaboration with government and other major players in the coal industry have established the South African Carbon CtCapture and dSt Storage C Ctentre and ddli developing a Carbon Storage Atlas for South Africa

• Anglo Coal is a leader in South Africa in investigating ways to commercially exploit discard coal for power generation purposes – Project Khanyisa (development of a 450MW Independent Power Producer /IPP generation project using Anglo American Thermal Coal discards)

• Leading participant in the South African Coal Roadmap (SACRM) inittatiative aadsnd supporter te ootef the Coal techinittatiative

• Investigating to derive economic value by utilising by-products, A water recycling plant at Landau uses such as the gypsum produced as a by-product at the Emalahleni bacteria to break down sulphides in the water and reclaim water for processng. Water Treatment Plant. 39 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT: IRON ORE

Key beneficiation initiatives:

• Kumba Iron Ore has invested substantially in downstream value creation, resulting in a share of domestic refinement of iron that is higher than in other major iron ore exporting countries

• More than 20% of KIO’s production is supplied to the domestic market, translating into local steel production capacity of approximately 10 million tonnes per annum

• Kumba has facilitated cooperation between the Industrial Development Corporation and Tata Steel in investigating various business models and iron ore sources, as well as setting up a second steel producer in South Africa

• Kumba’s novel jig technology plant is an example of the application of pioneering technology to better utilize Anglo American Kumba Iron Ore’s jig plant current resources as the plant enables the upgrading of at Sishen mine, Northern Cape lower grade waste material into ore thereby increasing iron ore ppyroduction by 13 million tonnes per annum

40 Revised Mining Charter BENEFICIATION AND RESEARCH & DEVELOPMENT: IRON ORE (continued)

Key research & development initiatives:

• KIO and AMSA are 50:50 commercial partners in a commercial venture in the development of the Zandrivierspoort Project to beneficiate iron ore from 35% iron content to 67% iron content through the application of novel technology

• In partnership with Mintek, and the Coega Development Corporation, Kumba is investigating concenttitrating Sis hen C-gradtiltidde material to a required iron ore or pellet grade in order to feed a portion to a proposed Coega Steel plant, which will be located in the Eastern Cape

• KIO is playing an active role with the IDC in investigating suitable technology to convert fine iron ore into a metal scrap replacement product Anglo American Kumba Iron Ore’s concentration plant at Sishen mine, Northern Cape

41 Revised Mining Charter SUSTAINABLE DEVELOPMENT

42 Safety and medical training at Mogalakwena platinum mine, Limpopo SUSTAINABLE DEVELOPMENT: SAFETY

A rigorous safety culture with three underlying principles • A zero harm mindset • Simple, non-negotiable standards • No tolerance for repeat incidents

Committed to working in partnership to share best practice and raise standards in safety • Management has been working with government, unions and peers to find common solutions to achieve a breakthrouggyh in safety in the industr y – First Anglo American Tripartite Safety Summit held in Johannesburg in April 2008 – Tripartite initiative continues with union and government officials participating in Anglo American safety training courses including site visits and interaction with employees – now being rolled out to operational level within our own South African business units Mineworkers receiving safety instructions at Goedehoop colliery, Mpumalanga – ‘Visible Felt Leadership’ toolkit extended across all operations – Solidarity Union named Anglo American as employer of choice for its commitment to safety in 2010 43 SUSTAINABLE DEVELOPMENT: ENVIRONMENT

Anglo American is committed to addressing key environmental concerns

• Award-winning eMalahleni water reclamation plant currently purifies 25 megalitres of water per day in the Witbank area, supplying c. 80 000 people – the plant will soon enter its second phase, doubling capacity to 50 megalitres per day

• During 2010 , Anglo American recycled 53 megalitres of water, including a 60% reduction in potable water achieved by Bafokeng Rasimone platinum mine through innovative water re-usage

• Through the Platinum Eastern Limb bulk water supply project we have developed a long term strategy in partnership with governments, other Maintenance work being conducted at the eMalahleni Water Reclamation Plant mining companies and key stakeholders to provide 1 .9 million people access to clean water through the Lebolelo Water Scheme, Flag-Boshilo and De Hoop Dam construction works 44 SUSTAINABLE DEVELOPMENT: RESEARCH AND DEVELOPMENT

• Anglo American operates a global world-class technical centre in South Africa, the centre is referred to as the Technical Business Coordination Group (TBCG) • TBCG employs 883 personnel in South Africa and the budgeted cost for 2011 is R 946 million • The centre employs mainly experienced technical professionals Development

• In 2010, Anglo American’s South African business units has spent R404 million on research and development, with c. R250 million spent locally in South Africa Anglo American supported research student at the University of Cape Town • In 2011, Anglo American’s South African business units has spent R722 million on research and development, with c. 50% spent locally in South Africa 45 MIGRANT LABOUR

46 MIGRANT LABOUR Anglo American South Africa Workforce by Nationality

South Africa Mozambique Lesotho Botswana Swaziland Zimbabwe • Anglo American South Africa has historically 100% sourced most of its labour from South Africa – however, a significant number of employees have historically been drawn from South 95% Africa’s neighbouring countries, particularly Lesotho, Botswana, Zimbabwe and 90% Mozambique • Anglo American ’ s human resources policy has 85% always adhered to ensuring that migrant labour from South Africa’s labour sending 80% areas and neighbouring countries is in line with South African labour relations legislation 75% to ensure no unfair treatment or discrimination against such employees 70% Platinum Thermal Coal Iron Ore Total

47 Original Mining Charter Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 3. CONTRIBUTIONS BEYOND THE MINING CHARTER

48 HEALTHCARE

The ref urbi sh ed Hi gh veld H ospit al , M pumal anga

49 HEALTHCARE: EMPLOYEES

• Anggpgplo American operates the largest private sector HIV/AIDS treatment programme in the world

• Demonstrable leadership in the fight against HIV/AIDS: • 94% of all employees participated in voluntary counseling and testing – c. 100, 000 people • c. 4,000 employees on Anglo American’s ARV treatment programme in 2010 • Have been providing HIV/AIDS treatment to not only employees but deppyendants and family members of emppyloyees since 2008

• Extending our holistic approach to managing HIV/AIDS and Tuberculosis by integrating these programmes into broader wellness initiatives e.g. iCARE campaign (including testing for Weight, Height, Blood Pressure, Haemoglobin, Cholesterol, and Blood Glucose)

• Providing occupational healthcare for employees, particularly in preventing noise-induced hearing loss

50 Contributions beyond the Charters HEALTHCARE: COMMUNITIES

• Extending our healthcare provision strategy for employees to our host communities:

• R19m spent on the Batho Pele Mobile Health Units in the John Taolo Gaetsewe municipality in the Northern Cape for benefits of improved primary and secondary health care • Bhubezi Community Health Centre in Bushbuckridge, Mpumalanga (established by Anglo American’s Thermal Coal business in 2007 in conjunction with Virgin Unite, US AID/ PEPFAR, and Ndlovu Care Group), providing ARTs to over 3,000 local community members • Ulysses Gogi Modise Clinic in Kathu, Northern Cape (established by Kumba Iron Ore) providing ART to over 900 affected local community members • Developing a business plan to revitalise Primary Healthcare in two districts of the Eastern Cape through Health Systems Strengthening Sister Jackie Schoeman gives a blood test to patient Mickle Rolsen at the UGM Community clinic in Kathu • Our latest vision is to help raise a new generation of young South Africans who will be free of AIDS and free of cervical cancer 51 Contributions beyond the Charters SOCIAL INVESTMENT

City Year - Service leader supported by Anglo American in classroom teaching learners leadership skills at Lekang School in Soweto, Gauteng 52 Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 SOCIAL INVESTMENT • Total Corporate Social Investment spend in South Africa reached c. R482m (c. US$65.9m) in 2010 • c. 73% of spend directly contributing to our social and labour commitments towards local economic development in the communities around our operations • Renewing commitment to local communities through direct social investment linked to mine social and labour plans – c. R14.5m spent upgrading primary healthcare facilities in various communities around our Platinum mines in the Limpopo province • Corporate social investment by Business Unit: – Platinum – c. R119m or 1.2% of NOPAT – Thermal Coal – c. R98m or 1.5% of NOPAT – Kumba Iron Ore – c. R134m or 1.5% of NOPAT The Blackhill Schoongezicht school, Mpumalanga, donated to the community by Landau Colliery, Mpumalanga

53 Contributions beyond the Charters Presentation to the Portfolio Committee on Mineral Resources, 02 November 2011 CAPACITY BUILDING

eMalahleni Water Reclamation Plant, Mpumalanga, supplying 20% of eMalahleni Municipality’s water needs 54 CAPACITY BUILDING INITIATIVES

• A cappyacity building initiative between Anglo American and the Development Bank of South Africa has been established to create a sustainable operations and maintenance programme of municipal existing and new infrastructure, capacitating municipalities through deployment of sector experts and apprentices/artisans

• Through the Platinum Eastern Limb bulk water supply project we have developed a long term strategy in partnership with governments, other mining companies and key stakeholders to provide 1.9 million people access to clean water through the Lebolelo Water Scheme, Flag-Boshilo and De Hoop Dam construction works

• The Emalahleni Water Treatment Plant treats water from mining operations and transforms the water to a potable standard meeting about 20% of the local government’s daily requirements in supporting municipal, commercial and industrial growth

• Thermal Coal’s Emalahleni Reclamation Plant produces 200 tonnes of raw gypsum every day as a by-product which is used as a raw material in the construction of homes. This low-cost, high-quality building material has been used to build 66 three-bedroom units with more units planned

• The John Taolo Gaetsewe (JTG) Rural Research Project focuses on identifying, evaluating and locating an appropriate socio-economic framework for the communities spanning the JTG District Municipality, Kgatelopele Local Municipality and the Tsantsabane Local Municipality

• Anglo American's Science, Career Guidance and Information and Communications Technology (ICT) Resources Centre is a R19 million facility, located in eMalahleni, Mppgpgumalanga, providing interactive science, career guidance and ICT resource facilities for educators and learners throughout the Nkangala district.

55 Contributions beyond the Charters THANK YOU APPENDIX

57 OWNERSHIP AND JOINT VENTURES TRANSACTION HIGHLIGHTS

58 OWNERSHIP AND JOINT VENTURES Transactions

AngloAmericanSouthAfricaAnglo American South Africa Value BEE transaction summary (at transaction date) Key Broad based Broad based Broad based Rm Date Empowerment % partner partner interest beneficiaries Anglo American Platinum 25 634 Northam 423 Aug-2000 17.5% Mvela None Modikw a JV w ith ARM 2 423 Aug-2001 50.0% ARM ARM BBBEE Trust 13.5% of ARM See notes

BRPM JV w ith RBN 3 141 Aug-2002 67.0% Bafokeng Bafokeng See notes 300 000 people Pandora JV 205 Feb-2003 15.0% Mvela Bapo Ba Mogale 7.5% in JV 35 000 people community Ga-Phasha JV w ith Plateau 990 Aug-2004 50.0% Anooraq

Western Bushveld 249 Oct-2004 26.0% Africa Wide

Elandsfontein 120 Dec-2005 26.0% Ngazana 26% in mine Union JV 491 Nov-2006 15.0% Bakgatla Bakgatla 15% in mine 350 000 people Lebow a 7 905 Jun-2009 51.0% Anooraq Pelew an 65% in Anooraq See notes Investments

Northam (second sale) 2 655 Aug-2008 22.4% Mvela Resources

Booysendal 3 480 Jun-2009 100.0% Mvela Resources ESOP 2 490 Jun-2008 1.5% Emppyloyees 1.5% of APL 50 000 pppeople Western Bushveld JV 1 062 Dec-2008 37.0% Wesizw e Bakubung (Bakubung share community + BEE ~16% in consort. Wesizwe) 59 OWNERSHIP AND JOINT VENTURES Transactions (continued)

Anglo American South Africa Value BEE transaction summary (at transaction date) Key Broad based Broad based Broad based Rm Date Empowerment % partner partner interest beneficiaries AngloGold 1 831 Vaal Reefs 38 Bokamoso & Izingw e 665 Oct-06 1.90% Bokamoso ESOP Employees and 1.4% Bokamoso 30000 Employees Trust and Izingw e Izingw e and 0.5% Izingw e and Izingw e of AngloGold Western Holdings 28 Free State Assets 1 100 Nov-01 50% ARM ARM 50% ARM

Anglo Coal 2 902 New Coal 360 Dec-00 16% Eyesizwe KZN coal assets 6 Leeuw Coal rights 17 HDSA general Coal rights 268 Shanduka RBCT rights 0 HDSA general Anglo Coal - ESOP 251 Employees 9000 employees (7000 HDSA) Anglo Inyosi Coal - ESOP 111 Employees Anglo Inyosi Coal 1 890 Feb- 07 27% Pamadozi, Community Trust Community Trust Lithemba, and see note (15% of 27%) and Woman's see note Development Bank

Mondi 1 675 SAFCOL 100 Ramana 35 Shanduka - New sprint 550 Aug-04 58% Shanduka Shanduka - Packaging 990 Aug-04 42% Shanduka Employees 6400 employees

60 OWNERSHIP AND JOINT VENTURES Transactions (continued)

Anglo American South Africa Value BEE transaction summary (at transaction date) Key Broad based Broad based Broad based Rm Date Empowerment % partner partner interest beneficiaries Kumba Iron Ore 11 735 Kumba - at SIOC level 11 735 Nov-06 26% Exxaro Envision employee 6% 4000 employees + share scheme and community Community Trust

Scaw Metals 1 378 Scaw Metals 1 378 Apr-07 26% Izingw e Employee share 5% 5 600 employees trust

De Beers 3 710 De Beers (DBCM) 3 710 Apr-06 26% Ponahalo See notes 19% Employees, disadvantaged w omen, disabled persons and communities

Samancor 4 117 0.26 HEMP 1 1 370 Aug-07 9% Ntsimbintle Community HEMP2 1 065 Aug-07 7% Ncab Community HEMP 3 825 Aug-07 5% Nziko HEMP 4 825 Dec- 09 5% Other nominees ESOP 32 Employees 750 employees

61 OWNERSHIP AND JOINT VENTURES Transactions (continued)

Anglo American South Africa Value BEE transaction summary (at transaction date) Key Broad based Broad based Broad based Rm Date Empowerment % partner partner interest beneficiaries Other Mining & Industrial 10 324 Avmin 844 Oct-06 50% ARM 50% ARM Southern Life 163 51% African Life JhJohnn ic 2 655 A96Aug-96 35% The Na tiona l 35% o f Jo hnn ic 's HDSA s Empow erment issued share Consortium (NEC) capital JCI 2 474 Nov-96 30% Saflife Ltd See notes Ikageng 601 Apr-97 6% The National 6% of Johnnic's 32000 HDSAs Empow erment issued share Consortium (NEC) capital De Beers 38 Conlog 39 Boschendal 323 Hulamin 990 Jun-07 10% Imbew u and Makana

Tongaat Hulett 2 197 Jun-07 18% Sangema, Masithuthukisane Trust, Mphakathi Trust, Ayavuna and a ESOP/MSOP

62 BENEFICIATION STRATEGY AND APPROACH

63 BENEFICIATION

Anglo American Platinum’ s beneficiation strategy emphasises a holistic and balanced portfolio approach to local platinum market development

Market Development Overview Key Levers

Fundamental Product • Maintaining strong Development Commercialisation links with universities, Phase Research Development fabricators and end- users is critical Improving Providing solutions Creating viable understanding of to customer market for new Focus the physical world problems product • Integration of government and beneficiation initiatives • Fabricators into the R+D program • Universities and • Fabricators Key Partners scientific • Entrepreneurs • Entrepreneurs institutions • End Users • The establishment of a development fund to • In-house R&D • Third party R&D grants • Marketing Support Examples of encourage product marktket • RhGtResearch Grants • IP li cens ing • Seed funding dldevelopmen t, development • Scholarships • Seed funding • PGM pricing commercialisation and tools beneficiation • Advocacy • Advocacy • IP licensing • Advocacy 64 Revised Mining Charter 1. ANGLO AMERICAN IN SOUTH AFRICA TODAY

65 ANGLO AMERICAN’S COMMITMENT TO SOUTH AFRICA

For the 12 months ended 31 December 2010 ANGLO AMERICAN IN SOUTH AFRICA:

• A national champion

• A major contributor to South Africa’s economy

• A considerable project pipeline in South Africa

• A conscious approach to safety is delivering results

• A promoter of broad -based empowerment participation in its South African operations

• A comprehensive and far-reaching approach to transformation

• An employer of choice to around 91,000 people in South Africa

• A responsible corporate citizen

• A partner of choice

• A national thought leader

67 A NATIONAL CHAMPION • Founded in Johannesburg, Ang lo American has a 94-yyyear history in South Africa • Today a multinational company with operations in >40 countries • However South Africa remains the single most important country to the Group – 3 out of the Group’s 7 commodity business units are globally managed from South Africa – 4 business unit CEO’s based in South Africa and 8 out of 15 ExCo members are South African – In 2010, c. 43% of the Group’s operating assets, c. 48% of its revenue and c. 51% of its operating profit had their origin in South Africa

Operating assets by geography (2010) Operating profit by geography (2010) Revenue by geography (2010)

South Africa South Africa South Africa 10% Rest offf Africa 10% 13% Rest of Africa Rest of Africa Europe Europe 43% 23% 48% North America 51% North America 38% 33% North America South America South America South America Australia and Asia 8% 7% Australia and Asia 7% Australia and Asia 5% 2% 1% 1% 1%

The group has a number of assets which are strategic to South Africa • Anglo Platinum (c.79% owned) – the world’s leading platinum producer, accounting for c.39% of global suppl y • Kumba Iron Ore (c.65% owned) – the world’s 4th largest iron ore producer in seaborne iron ore • Thermal Coal – one of the world’s largest private sector coal producers and exporters • De Beers (45% owned) – the world’s leading diamond business 68 • Samancor Manganese (40% owned) – the world’s largest integrated producer of manganese ore A MAJOR CONTRIBUTOR TO SOUTH AFRICA’S ECONOMY Anglo American is:

A significant investor in South Africa • Invested c. R148bn (c.$21.1bn) in Capex in South Africa since 1999 (till 2010)

One of the largest contributors to the South African fiscus • In 2010, Anglo American group companies paid c. 14bn (c.$1.95bn) in direct and indirect taxes A major contributor to South African foreign earnings • c.50% of South Africa’s foreign earnings are generated from commodity exports • Since its London listing in 1999, Anglo American’s foreign shareholding has increased from about 17% to c. 66%, resulting in a total of c . c . R124 .5bn (US$21 .5bn) of capital inflow Generated export revenues of c.R105bn (c.$14.3bn) in 2010 A significant contributor to the South African economy • In 2010 Anglo American produced some 2.5% of South Africa’s GDP One of the largest components of the JSE (together with its controlled companies) • Combined market capitalisation of >US$90bn (c.R770bn), representing c.18% of the value of JSE top 100 • South African shareholders make up c. 34% of AA plc Share Register

A key partner to some of South Africa’s most important state-owned enterprises • Eskom: In 2010, Anglo American spent US$423m (c.R3.1bn) with Eskom, and delivered 32Mt of thermal coal (US$630m or c. R4.6bn) to Eskom for South Africa’s electricity needs • Transnet: c.US$560m (R4.1bn) Anglo American spend on Transnet in 2010

69 A CONSIDERABLE PROJECT PIPELINE IN SOUTH AFRICA

Anglo American has a c. R30bn (US$4. 4bn) project pipeline to be delivered over the next 3 years in South Africa

• Iron Ore: – Kolomela project 94% complete, hot commissioning started in Q3 2011

• Thermal Coal: – 6.6 million tonnes per annum Zibulo project (to supply Eskom’s Arnot power station) is on ramp- up, with full production expected in Q4 2012

– New Largo project (to supply Eskom’s Kusile power station) is in feasibility stage , with Board approval to be sought by Q3 2012

• Platinum: Kolomela Iron Ore Project Commissioning, Postmasburg, – Capital expenditure of c. R1.6bn (US$223m) in Northern Cape the first half of 2011 on various expansion projects at Thembelani, Mogalakwena, Twickenham, Khuseleka and Dishaba mines 70 Anglo American South Africa Today ANGLO AMERICAN’S APPROACH TO SAFETY IS DELIVERING RESULTS A rigorous safety culture with three underlying principles • A zero harm mindset • Simple, non-negotiable standards • No tolerance for repeat incidents

Committed to working in partnership to share best practice and raise standards in safety • Management has been working with government , unions and peers to find common solutions to achieve a breakthrough in safety in the industry – First Anglo American Tripartite Safety Summit held in Johannesburg in April 2008 – Tripartite initiative continues with union and government officials participating in Anglo American safety training courses including site visits and interaction with employees – now being rolled out to operational level within our own South African business units – ‘Visible Felt Leadership’ toolkit extended across all operations – Solidarity Union named Anglo American as employer of choice for its commitment to safety in 2010

Improved safety standards mean saving peoples’ lives • Under Cynthia Carroll ’ s leadership, fatalities in SA have reduced by 58% over the past 4 years to 11; LTIFR by 51% to 0.57 (up to December 2010) – this places us among the best performers in our peer group – Anglo American’s lost-time injury rate, excluding our deep-level hard-rock mining operations, is 0.22 YTD in 2011 – a sector-leading performance – Anglo American’s fatal-injury frequency rate at end-October was 0.008 – 53% lower than at the end of 2006 – Anglo American Thermal Coal completed its first ever fatality-free calendar year in 2010 – Thermal Coal's Isibonelo Colliery has been awarded the Department of Mineral Resources' safety flag for 2010/11 - the most prestigious award given to a mine with an excellent safety record – ‘Train-the-Trainer’ (TTT) Zero Harm orientation programme rolled out across our Platinum operations to address the ‘hearts and minds’ aspect of effective leadership in safety 71 OWNERSHIP AND JOINT VENTURES

Anggpylo American has completed all necessary ANGLO AMERICAN EMPOWERMENT TRANSACTIONS

empowerment transactions Business Unit Transaction Empowerment partners • c.R60bn in BEE transactions concluded Thermal Coal 26% of current Pamodzi, Women’s since 1994 across all business units - Anglo American and future Development Bank, Lithemba, Inyosi Coal production workforce, communities and • Significant facilitation provided Eyesizwe Coal

• Broad-based participation ensured: Iron Ore and 26% of equity Exxaro, Ntsimbintle, Ncab, Iziko, strategic shareholders, communities, Manganese workforce, communities - Kumba Iron Ore employees - Samancor Platinum Greater than 26% Mvelaphanda, Anooraq, Royal - Anglo Platinum of production Bafokeng, ARM , workforce , All group company employees are ESOP communities participants Other Mining and 26% of equity Exxaro, Izingwe Holdings, Industrial Shanduka Resources, Southern Community participation has been a key - Scaw Metals Palace Holdings, workforce, - Black Mountain communities focus - Gamsberg • Direct participation of communities affected Diamonds 26% of equity Ponahalo (inc. communities), by mining operations in the benefits they - De Beers workforce generate Anglo American’s empowerment transactions have led to the • Transactions aimed at sustainable, long creation of flagship black-owned mining companies e.g. Exxaro term economic uplift of mining areas Resources, African Rainbow Minerals and Shanduka Resources.

72 Original Mining Charter A COMPREHENSIVE AND FAR-REACHING APPROACH TO TRANSFORMATION HiHousing • In 2010 Anglo American provided 17,286 employees with company accommodation as part of a c.R2.5bn ($300m) programme, in partnership with government, providing 20,000 houses are being constructed to 120,000 people in the Limpopo and North West provinces BEE procurement spend (Rbn) BEE, E mpl oyment E quit y and T ransf ormati on 30 24.6 23.5 • Largest private sector employer in the country – 25 20.9 c. 70,500 full-time employees and c. 21,000 20 17.3 contractors employed (as of December 2010) 15 • Created rigorous safety culture and hence 12.3 9 positively impacted the mining industry 10 5.8 3.6 • Group BEE spend grew from c. R1.1bn 5 2.4 1.5 (US$133m) in 2000 to c.R21bn (US$2.4bn) in 1.1 1.1 0 2010, representing c.44% of total spend 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 • c. 47% of Anglo American employees at management level in South Africa are HDSA • Women now make up c.13% of South African employees, exceeding the 10% Mining Charter target – c.19% of management positions held by women – Increasing number of women in core mining jobs – 5,282 in 2010, representing 11% of the total mining workforce

Enterprise development • Anglo American Zimele has a 20-year track record in supporting and developing black entrepreneurs, and as at December 2010 has invested invested c. R482 ($54m), to date, in 637 businesses, creating over 15,000 73 employment opportunities A RESPONSIBLE CORPORATE CITIZEN... Social Investment An acknowledged leader in corporate social spend in South Africa • Total Corporate Social Investment spend in South Africa reached c.$65.9m in 2010 – over 60% of global spend, and an increase from c. R512m (US$54m) in 2009, through the Anglo American Chairman’s Fund and other delivery vehicles such as the Epoch scheme and the Optima Trust, with c. 73% of spend directly contributing to our social and labour commitments towards local economic development in the communities around our operations – Platinum – c. R119m (US$16m), 1.2% of NOPAT – Thermal Coal – c. R98m (US$13m), 1.5% of NOPAT – Kumba Iron Ore – c. R134m (US$19m), 1.5% of NOPAT • In addition, Anglo American is renewing its commitment to local communities through direct social investment linked to mine social and labour plans – c. R14 . 5m spent around Sishen in the Northern Cape on 9 mobile health units to assist the provincial Department of Health to render a quality and frequent primary and secondary health care service in the rural communities in the Joe Morolong Municipal Area – c. R14.5m spent upgrading primary healthcare facilities in various communities around our Platinum mines in the Limpopo province (Twickenham, Rustenburg and Mogalakwena areas)

Addressing key environmental concerns • Award-winning eMalahleni water reclamation plant currently purifies 25 megalitres of water per day in the Witbank area, supplying c. 80 000 people – the plant will soon enter its second phase, doubling capacity to 50 megalitres per day (the project, already internationally recognised, has recently been selected as the winner of the 'best community ppjroject in Africa' cate gygory of the Asia Minin g Global Sustainabilit y Awards ) • During 2010, Anglo American recycled 53 megalitres of water, including a 60% reduction in potable water achieved by Bafokeng Rasimone platinum mine through innovative water re-usage • Through the Platinum Eastern Limb bulk water supply project we have developed a long term strategy in partnership with governments, other mining companies and key stakeholders to provide 1.9 million people 74 access to clean water through the Lebolelo Water Scheme, Flag-Boshilo and De Hoop Dam construction works A RESPONSIBLE CORPORATE CITIZEN (ctd) Projjpgects of National importance being evaluated • Primary health care initiatives in the Eastern Cape in partnership with Provincial Government, communities and other NGO’s – Bhubezi Community Health Centre in Bushbuckridge, Mpumalanga (established by Anglo American’s Thermal Coal business in 2007 in conjunction with Virgin Unite, US AID/ PEPFAR, and Ndlovu Care Group), providing ART to over 3,000 local community members – the project won the Frontline Heroes for Health award and received their award from Cynthia Carroll and Richard Branson in New York in June 2011 – Ulysses Gogi Modise Clinic in Kathu, Northern Cape (established by Kumba Iron Ore), providing ART to over 900 affected local community members – Anglo American’s Platinum business is developing a business plan with the Eastern Cape Department of Health Partnership to revitalise primary healthcare services in four sub-districts of that province. • Provision of integrated development programmes in the labour sending areas • Capacity building in selected municipalities in the provinces where we operate and major labour sending areas, in partnership with the Development Bank of South Africa • Evaluating the feasibility of low-cost solar water-heating for low-income households • All of Anglo American’s South African operations achieved 100% compliance with the Anglo American Social Way, including compliance with International Finance CCorporationorporation compliance standards on community resettlement, interactions with indigenous people and accommodating cultural heritage.

Post-graduate diplomas • Anglo American has supported the development of a new post-graduate diploma in Strategic Stakeholder Engggagement Practice (SSEP ) at the Universit y of Ca pe Town (UCT ) Graduate School of Business in 2009 – One of only two university courses to address community engagement and development in the mining industry (the other is at University of Queensland) – From 2011 Anglo American will support the participation of traditional leaders on the programme in partnership with the South African government 75 AN EMPLOYER OF CHOICE TO ~91 000 EMPLOYEES IN SOUTH AFRICA

Local workforce development Skills development is an integral part of the group’s human resource process • In South Africa, where currently almost two thirds of our global workforce is located (c. 64% in 2010, including contractors), training and development remains a key focus area, accounting for c. 5% spend of total employee costs – c.R810m (US$111m) spent on employee training initiatives, bursaries, ABET, management programmes and re-training in South Africa from core businesses alone – up 26% in Rand terms from 2009 (approximately c.R530m or US$63m) despite headcount reduction [Target = 3% of NOPAT] – Platinum – c. R441m (US$60m), 4.3% of total BU payroll – Thermal Coal – c. R202m (US$28m), 8.2% of total BU payroll – KbKumba IOIron Ore – c. R167m (US$23 m, 68%6.8% ofttlBUf total BU payroll • c.3 600 employees, contractors and community members currently enrolled in ABET programmes • c.2,500 employees received portable skills training to be employable outside the mining industry in South Africa

HIV/AIDS Demonstrable leadership in the fight against HIV/AIDS: • c.94% of the group’s South African employees have participated in voluntary counseling and testing programmes, representing >100,000 employees and contractors in 2010 (up from 82% in 2009) • 3,965 employees on Anglo American’s ARV treatment programme • c.59% of all HIV positive employees at our Southern African operations participating in HIV disease management programmes (up from 51% in 2009) • Offer for free ART treatment extended to employees’ families since 2008 – a milestone development for the industry 76 A PARTNER OF CHOICE Eskom both a keyypp supplier and customer • Anglo American is one of the largest Eskom clients with c.R3.1bn (c. US$423m) spend in 2010 • Anglo American Thermal Coal Coal continues to be a major supplier to Eskom, supplying 32Mtpa coal to Eskom (c.30% of Eskom’s coal requirements in 2010 and in 2009) • In September 2008 Anglo American signed an MOU with Eskom to conceptualise and implement energy efficiency programmes and promote skills development • In May 2008 Anglo American seconded Kumba CEO Ras Myburgh to Eskom to assist the utility in solving its coal procurement problems • Participate in the Task team with the Department of Energy

Long-standing relationship with Transnet supporting South Africa’s infrastructure development • Group compani es are ma jor users o f the Transne t’s ra ilway an d por t in fras truc ture w ith c. $560m (c. R4. 1bn ) spen d in 2009

PIC and IDC are key shareholders • The PIC holds c.5.46% in Anglo American, c.5.5% in Anglo Platinum and c.3.8% in Kumba Iron Ore – investments carrying a combined value of c. R33bn (c. US$4.5bn) • The IDC holds c.12.95% in Kumba Iron Ore, currently valued at c.R14.6bn (c. US$2.0bn)

BEE partners are important stakeholders • Transactions aimed at sustainable mutual value creation

Communities benefit from upliftment programmes • Community engagement and development seen as a key element of the group’s contribution to South Africa 77 A NATIONAL THOUGHT LEADER

An active and long-standing participant in a multitude of key industry forums at CEO/Executive level

• Chamber of Mines • Energy Intensive Users Group and support for IRP task team • Business Leadership South Africa • Business Unity South Africa • Business Against Crime South Africa • Industry alignment Forum • UN Global Impact • Extractive Industries Transparency Initiative • Global Reporting Initiative • Voluntary Principles on Security and Human Rights • Investment Climate Facility for Africa

A key contributor to innovation and national policy transformation

• Working alongside government, unions and peers in developing a strategy for the sustainable growth and meaningful transformation of South Africa’s mining sector through senior representation in the Mining Industry Growth, Development and Employment Task Team (MIGDETT) • Working alongside government, unions and peers in improving safety in South Africa’s mining industry through the establishment of the Tripartite safety initiative

78