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					Anglo American Thermal Coal
       Investor Presentation




                      April 2010




                                   0
                                                    Agenda




1. Overview of Anglo American Thermal Coal (AATC)

2. Market Overview

3. Strategy & Growth Pipeline




                                                         1
                                                    Agenda




1. Overview of Anglo American Thermal Coal (AATC)

2. Market Overview

3. Strategy & Growth Pipeline




                                                         2
                                                                                                                            Historical Timeline


                                                                                1975                                       1998
                                                                                                                           1998
                                                                                1975
     1897
     1897                                                                  Anglo American                               Production
 Vereeniging                                                             merges its various                           reaches 53Mt                                2009
    Estates                                                               coal ventures into                                                                Anglo American
                                                                                                            1998
                                                                                                            1998
Limited (VEL)                                                                VEL which                                                                       splits its coal
                                                                                                       Amcoal absorbed
incorporated                                                              changes its name                                                                  operations into
                                 1941                        1949                                        into Anglo               1998
                                                                                                                                  1998
 into a newly                    1941                        1949        to Anglo American                                                                 focused Thermal
                                                                                                          American             Acquisition of
     listed                   Production                  Production      Coal Corporation                                                                  & Metallurgical
                                                                                                        Corporation of           Cerrejon
   company                   reaches 5Mt                reaches 12Mt        Ltd (Amcoal)                                                                   product divisions
                                                                                                             SA




  .   1900        ….          1930         .   1940 .      .    .1950           1960     .     1970      . .   1980            1990        . . .. . 2000            .
                                                                                                                                                                  2009




               1936                         1945
                                            1945                      1964
                                                                      1964                 1976
                                                                                           1976                              1999
                                                                                                                             1999                               2009
                                                                                                                                                                2009
               1936
       VEL combines its               Anglo American               Production          Richards Bay                       Acquisition of                     Production
       coal interests with                 buys a                reaches 17Mt          Coal Terminal                       Shell Coal                      reaches 98Mt
         those of A&E to                 controlling                                      opens
      form Amalgamated                interest in VEL                                                                                          1999
                                                                                                                                              1999
      Collieries, then the
                                                                                                                                       Anglo American
       largest coal group
                                                                                                                                        lists in London
             in Africa




                                                                                                                                      Source: Anglo American Thermal Coal      3
                                                              Overview of Anglo American Thermal Coal

                        Colombia (2009)                                                                                      South Africa (2009)

                                Puerto Bolìvar (33%)
                        1                                                                                                                                            4
                                                                                                                                                                 2       9
                                                                                                                                                                     1
                                                                                                                                                             3
                                                                                                                                                        10       5
                                                                                                                                                             8       6
                                                                                                                                                    7


                                                                                                                                                                                   Richards Bay
                                                                                                                                                                                       (27%)



                                                                                                          Mine                 Holding          Total                    Export        Domestic     LOM
                                                                                                                                            Attributable                   Mt            Mt         Years
                                                                                                                                            production
                                                                                                                                                2009
                                                                                                         1 Goedehoop
                                                                                                          1.                    100%            6.9Mt                        6.9          -           10
                                                                                                          2
                                                                                                          2. Greenside          100%            3.8Mt                        3.3         0.5          12
                                                                                                          3
                                                                                                          3. Kleinkopje         100%            4.4Mt                        2.0         2.4          14

Mine          Holding           Total        Export       Domestic        LOM                             4. Landau
                                                                                                          4                     100%            4.2Mt                        3.9         0.3          11
                            Attributable       Mt           Mt            Years                          5 Kriel
                                                                                                          5.                     73%           11.2Mt                         -          11.2         16
                            production
                                2009                                                                     6.
                                                                                                         6 New Denmark          100%            3.7Mt                         -          3.7          31
1 Cerrejòn
 1.            33%            10.2Mt           10.2           -             23                           7 New Vaal
                                                                                                         7.                     100%           17.6Mt                         -          17.6         18
EBIT (2009)                                                             US$305m                          8 Isibonelo
                                                                                                         8.                     100%            5.1Mt                         -          5.1          17
                                                                                                         9.
                                                                                                         9 Mafube                50%            2.2Mt                        1.2         1.0          20
                                                                                                         10 Zibulo1
                                                                                                          1                      73%            0.1Mt                        0.0         0.0          17
                                                          Export
                                                                                                          Total production                     59.2Mt                     17.3           41.8
                                                          Eskom
                                                                                                          Employees                                                                                 14,446
                                                          Other domestic
                                                                                                          EBIT (2009)                                                                             US$439m

                                       Notes: 1. Zibulo was previously known as Zondagsfontein Project. Steady state production will be 6.6Mtpa 2. Production of AIC assets reported at 100%
                                                                                                                                                       Source: Anglo American Thermal Coal                   4
           A Stable Cash & Earnings Contributor to AA Plc


                         Coal % Contribution to AA EBIT

25%
              Total Coal
              Anglo Thermal Coal
              Anglo Met Coal
20%
                                                     For 2004-09 Thermal
                                                      Coal on average
15%                                                  accounted for 9% of
                                                       Anglo American
                                                            EBIT

10%


5%


0%
         2004                2005                 2006                 2007                 2008                2009


      AATC has been a consistent contributor to Anglo American
                            profitability

                                                                                                         Source: Anglo American annual financial statements
          * For 2004 to 2007 Australia segment previously reported used for Met Coal. Balance of previous Anglo Coal EBIT allocated to Thermal Coal Division   5
                                               AATC South Africa Safety Performance

 AATC South Africa Lost Time Injury
    Frequency Rate & Fatalities
LTIFR                                 Fatalities
                                                   •   2 Fatalities in 2009 vs. 4 in 2008. Zero for 2010 YTD
 0.5                                       8
                         Fatalities                •   LTIFR improvement of 9.4%
                         LTIFR             7
                                                   •   AATC 2009 fatal injury frequency rate was 0.009
 0.4                                                   compared to 0.05 for the RSA coal industry
                                           6
                                                   •   AATC 2009 LTIFR was 0.29 compared to 0.31 for the
 0.3
                                           5           RSA coal industry
                                                   •   Isibonelo more than two years LTI free
                                           4
                                                   •   Rapid Loading Terminal Zero harm in 2009
 0.2
                                           3
                                                   •   HPI reporting fully implemented
                                           2
 0.1
                                           1

 0.0                                      0
    2005   2006   2007   2008          2009


                                      Safety is our No. 1 Priority

                                                                                      Source: Anglo American Thermal Coal   6
South African Operations Location




                   Source: Anglo American Thermal Coal   7
                                                             South African Logistics


South Africa coalfields rail & port infrastructure
                                                     •   Coal railed to Richard Bay Coal Terminal
                                                         (RBCT) for export

                                                     •   Coal is railed by Transnet Freight Rail (TFR) -
                                                         with nominal railing capacity of 72Mtpa

                                                     •   In 2009 TFR railed only 61Mt – railing volumes
                                                         are bottleneck to coal exports



                                                     •   AATC has 27% shareholding in RBCT

                                                     •   RBCT capacity is 72Mt going to 91Mtpa from
                                                         2010 - post Phase V expansion




                                                                        Source: Transnet, Anglo American Thermal Coal   8
                                                                                                  Mining Methods

                 A.                                                         B.
                      Surface/Opencast                                                Underground
                           Mining                                                       Mining


1.     Doze Over                       2.       Dragline     1.     Bord & Pillar                  2.        Longwall
     Shovel & Truck                           Strip Mining            Mining                                  Mining




                      3.                                                         3.
                           Mini Pit Mining                                            Pillar Extraction


•    Mafube                            •     Landau          •    Goedehoop                         •     New Denmark
•    Waterberg                         •     Kleinkopje      •    Greenside                         •     Heidelberg
                                       •     New Vaal        •    Kriel
                                       •     Isibonelo       •    Zibulo
                                       •     New Largo       •    Elders
                                                             •    Limpopo

                                Mining method choice critical to reserve extraction
                                                 optimisation
                                                                                                  Source: Anglo American Thermal Coal   9
                          AATC South Africa Market Position

…Anglo Coal SA is a major player in all market segments
Total South Africa production for 2009 of approximately 260 Mt

                 14%
                                        22%

        5%
                                                          Anglo 
                                                          Exxaro
      9%                                                  Sasol
                                                          BHP
                                                          Xstrata
                                                          Optimum
                                              20%         Others
           14%



                            16%
  AATC is the leading coal producer in South Africa & holds
              around a quarter of market share

                                                Source: Wood Mackenzie, Company Financial Statements   10
                                      A 1st Cost Quartile Thermal Coal Producer

90                                                                                                                    90
                                                                                       Port Loading

80                                                                                     Freight                        80

                                                                                       Royalties
70                                                                                                                    70
                                                                                       Mining & Processing

                                                                                       Labour
60                                                                                                                    60



50                                                                                                                    50



40                                                                                                                    40



30                                                                                                                    30



20                                                                                                                    20



10                                                                                                                    10



 0                                                                                                                    0
     0        50       100      150       200       250        300        350   400     450            500

                                         Cumulative Forecast Production, Mt


                     All AATC South African export operations within the 1st
                         cost quartile of the AME 2010 global cost structures
     Opportunity exists to further reduce costs. Project underway to review costcurve… and asset portfolio

                                                                                              Source: AME FOB Cost Curve 2010   11
                                                RSA Domestic Market: Eskom & Other

Domestic production share of total AATC
            RSA tonnage                                                 Share of total Eskom tonnage

   Production, Mt

    60                                                                                         AATC supplies
                                                                                              c.30% of Eskom
                                    Export
                                                                                                   total
    50                 27%


    40


                                                             •   c. 36Mt to Eskom for power generation
    30
                       62%          Eskom                    •   Eskom average CV (air dried) 4,550kc/kg ( 19.1MJ/kg)
    20                                                       •   Pricing strategy a combination of long term cost-plus
                                                                 arrangements and some at fixed price + escalation
    10                                                       •   c. 7Mt of other domestic tonnage including:
                      11%           Other Domestic                  ‒   5Mt from Isibonelo supplying to Sasol
     0
                                                                    ‒   2Mt to a range of other industrial customers



                               AATC a major supplier of coal to Eskom –
      Opportunity exists to further reduce costs. Project underway to review cost structures and asset portfolio
                                            and expected to grow
                                                                                              Source: Anglo American Thermal Coal   12
                                                                                       RSA Export Market

                                                               2008 AME Cost Curve
          ACSA operations are currently well positioned on the 2009 exports by destination
   Export production share of
    total AATC RSA tonnage     2009 exports by customer type         country/region

Production, Mt                    Export Sales, Mt                                Export Sales, Mt

 60
                                  16                                              16
                                                     2.4 Mt   Utility Traders                             3.8 Mt             Other Europe
 50              27%   Export
                                                              Steel
                                  12                                              12                      2.0 Mt            Other Asia
 40                    Other
                 11%   Domestic                                                                           1.0 Mt            Israel
                                                     7.0Mt    Power Utility
                                                                                                          1.4 Mt            Italy
 30                               8                                                8


 20              62%   Eskom                                                                              3.7 Mt             ARA1
                                                     3.4Mt    Physical Trader
                                  4                                                4
 10                                                           Industry Supplier
                                                     1.2Mt
                                                     1.0Mt    Importer to India                           4.9 Mt            India
                                                     1.0Mt    Bank
  0                               0                                                0




                         30% of AATC SA’s thermal exports to India in 2009

                                                                                        Note: 1. ARA = Amsterdam, Rotterdam, Antwerp
                                                                                                  Source: Anglo American Thermal Coal    13
                                                                                                    Cost Breakdown

             operations Africa cost breakdown
        ACSA AATC South are currently well positioned on the 2008 AME Cost Curve

                    2009 Actual

       8%                                                                                    •   Royalties will be applicable from
  0%                                         43%                                                 2010 – expected to account for
 3%                                                                                              ~1% of costs
                                                      Labour & contractors
                                                      Maintenance & stores                   •   Electricity a relatively small share
7%                                                                                               of total costs: Eskom power price
                                                      Rail, wharfage & other selling costs
                                                                                                 increases will add 1% to overall
                                                      Consumables                                costs in 2010 - but will continue to
                                                      Power                                      rise
                                                      Royalties
15%                                                   Other



                                    24%


                          Labour the major cost component showing cost increases
                                of over 9% per annum over the past 3 years
            Opportunity exists to further reduce costs. Project underway to review cost structures and asset portfolio

                                                                                                        Source: Anglo American Thermal Coal   14
                                                AATC South Africa Margins & ROCE

                                                                                Price & exchange rate
AATC South Africa EBIT margin                Historic adjusted ROCE                   sensitivity
US$m                           EBIT Margin   ROCE                             Change in
                                                                                EBIT
 1000                              45%       100%                              US$m
           EBIT
                                                                               20
           EBIT Margin             40%
  800                              35%       80%
                                                                               15
                                   30%
  600                                        60%
                                   25%
                                                                               10
                                   20%
  400                                        40%
                                   15%
                                                                                5
                                   10%       20%
  200
                                   5%
                                                                                0
                                                                                      US$1/t               ZAR0.10
    0                              0%         0%
        2005 2006 2007 2008 2009                                                     change in              change
                                               2005   2006   2007 2008 2009
                                                                                       price              against the
                                                                                                             US$

                                    Stable margins despite turbulent times

                                                                                    Source: Anglo American Thermal Coal   15
                           Leadership in BEE Transactions: Eyesizwe and AIC

                                       Anglo Inyosi Coal empowerment transaction

                                                 WDB
    Lithemba
                        Pamodzi Coal           Investment   Communities
    Consortium
                                                Holdings

            33%                33%                  19%           15%




Anglo Coal                            Inyosi                              Anglo Inyosi Coal formed in November 2007 for
                                                                          R7bn
      73%                                 27 %
                                                                          27% BEE participation from inception
                                                                          Resources of 4.1 billion tonnes
             Anglo Inyosi Coal
                                                                          Optimal asset mix (existing operations & projects)
                                                                          Stable cashflow stream through Kriel Colliery
       •   Kriel
                           Operations
       •   Zibulo                                                         ESOP commitment
       •   New Largo
       •   Elders          Projects
                                                                          All AATC’s SA mineral rights converted
       •   Heidelberg


                           Dynamic consortium partner grouping with strong women
                                        & community participation
                                                                                                 Source: Anglo American Thermal Coal   16
                                                                        Social Responsibility

Progress against Mining Charter
-     BEE procurement spend 2009: R5.6Bn (56%)
-     HDSA in Management: 45% (target 40%)
-     Women in Mining: 16.5% (target 10%)
-     Women in Management: 17%
-     Women in Technical Occupations: 11%                                                   Winter school classes at
-     Learnerships in AATC SA: 545 (88% HDSA)                                              Empucukweni Secondary
                                                                                                             School

Focus Areas of Social and Labour Plans (SLP’s)
-     Infrastructure
-     Education and Skills Development
-     SMME development                                 Educator Development
-     Agriculture                                      Programme

-     Environment
-     Sports, Arts and Culture

Strengthening partnerships with government and NGO’s
                                                                                      Vegetable garden at Edward
                                                                                          Matjeka Primary School
Guided by the Anglo Social Way

                        Robust implementation of SLP commitments

                                                                              Source: Anglo American Thermal Coal   17
                          Sustainable Development: Water Treatment

                   SA’s first large-scale mine water treatment plant

                           ZAR390m Capex, 25 Ml/day potable + 8 Ml/day process water
 Navigation




 Kleinkopje




 Greenside




South Witbank




                  Addresses environmental impact of mine water whilst
              alleviating water shortage in local community of Emalahleni
                                                                       Source: Anglo American Thermal Coal   18
                                                                                                                                                                                      AATC Asset Optimisation Initiatives

               CMIG Project: Benchmarking against 109 continuous miners in SA

Mt
      G/Side Vuma
                          G/Side Thandeka




                                                                                                                                              ROM Tons Jan – Dec 2009
                                                                                                         ☺                                                                                                           Asset optimisation is clearly
                    GH Sim Iskonjane




                                              5/Top 10 = Anglo
                    Vlak Mangwapa




                                                              GH South Khomanani
                     Kriel Ngwenya




1.2                                                                                                                                                                                                                  focused on key mining
                                                                                                                                                                                                                     equipment and supporting
                                                              GH Sim Imvubu
                                              G/Side George




                                                                                                                       GH South Sizimisele
                                                                                                    G/Side Thusanang
                                              Kriel Fezela




                                                                                                                                                                                                                     activities
                                                                                    Kriel Bhubezi




                                                                                                                                                                        1 Million ton projected target
                                                                                   Kriel Bhejane
                                                                                    Kriel Ishlosi




1.0
                                                                                                                                                                                                                     Opencast mines
                                                                                                                       Hope 5/6




0.8
                                                                                                                                                                                                                      ‒  Draglines (“DIG”
                                                                                                                                                                                                                         Initiative)
                                                                                                                                                               Prod
                    Position                              Section                                               Miner                           Hauler
                                                                                                                                                               Shifts
0.6                         1               G/Side Vumagara                                                 12HM31                           20 ton S/C      8x8xM
                                                                                                                                                                                                                     Underground mines
                            2               Other                                                              ABM30                         Cont Haulage    10 x 10 x M                                              ‒  Continuous miners
                            3               Other                                                              ABM30                         Cont Haulage    10 x 10 x M                                                 (“CMIG” initiative)
0.4                         4               G/Side Thandeka                                                 12HM31                           20 ton S/C      8x8xM
                            5               Other                                                              ABM30                         Cont Haulage    10 x 10 x M
                            6               Kriel Ngw enya                                                  12HM21                           16/20 ton S/C   8x8x8
                            7               G/Hoop Isikhonyane                                              12HM31                           20 ton S/C      8x8x8
0.2
                            8               G/Hoop Mangw apa                                                12HM31                           20 ton S/C      8x8x8
                            9               Other                                                           12HM31                           16 ton S/C      10 x 10 x M
                          10                Other                                                           12HM31                           20 ton S/C      8x8x8
0.0

                                                                                                                                      AATC’s mines operate 5 out of the top 10 performing
                                                                                                                                              Continuous Miners in South Africa
                                                                                                                                                                                                         Source: Mining Consultancy Services - www.mcs-com.net   19
                                                    Agenda




1. Overview of Anglo American Thermal Coal (AATC)

2. Market Overview

3. Strategy & Growth Pipeline




                                                         20
                                                                                 Fuel Demand Outlook

                                                                  Coal is forecast to increase its share of
GDP growth is the principal driver of growth                      primary energy, due to higher share of
         in demand for energy                                                power generation
GDP CAGR                                                          Mtoe1
 10%                                                              6000


                                         1990-2007                5000                                                    2030
  8%
                                         2007-2015
                                                                                                                          2007
                                         2007-2030
                                                                  4000
  6%

                                                                  3000

  4%
                                                                  2000

  2%
                                                                  1000


  0%                                                                0
       China   India   Brazil   Russia   Africa   Middle   OECD
                                                                          Coal    Oil       Gas     Nuclear Hydro Biomass Other
                                                   East
                                                                                                                    and renew.
                                                                                                                   waste

                            Continued urbanisation & industrialisation in developing
                                         countries especially in Asia
                                                                                                            1. Million tonnes of oil equivalent
                                                                                 Source: IEA World Energy Outlook 2009 (Reference scenario)       21
                                         Thermal Coal-Fired Energy Demand

  Thermal coal-fired energy demand expected to almost double over the next 20
                      years, mainly driven by Asian markets
                                                                                                CAGR

Twh                                                             Total                            2.7%

16,000                                               15,300
                                                                Africa                           1.8%
                                                                Middle East                      4.6%
14,000                                     13,500
                                                                South America                    6.9%
                                11,750
12,000
                      10,500
10,000                                                          Asia                             4.0%
         8,200                                                     • China                       4.0%
                                                                   • India                       5.7%
 8,000

 6,000

 4,000
                                                                North America                    0.5%
 2,000
                                                                Europe                           0.5%
    0
         2007          2015      2020       2025      2030

                   Majority of thermal coal market is domestic, with only
                 ~10%-15% of volume entering the seaborne export market
                                                              Source: IEA World Energy Outlook 2009 (Reference scenario)   22
                                                        Seaborne Export Supply & Demand

  India the key driver of export demand
   due to high forecast GDP growth & a                       Indonesia, Australia and Colombia with
       shortfall in domestic supply                            the highest expected supply growth

Demand, Mt                                                  Supply, Mt
                                                 CAGR                                                         CAGR
1,250                                                       1,250
                              Total              2.5%                                    Total                 2.5%
                      1,018
1,000                                                       1,000                        Other                 1.0%
                              Africa, ME, S Am   4.1%
                                                                                  926
                              North America      2.6%                                    USA                   0.5%
               829
                                                                           758           China                 1.8%
 750                          Europe             0.7%        750
        681                                                                              Colombia              3.0%
                                                                    627
                                                                                         South Africa          1.5%
                              India              9.6%
                                                                                         Russia                0.5%
 500                                                         500
                                                                                         Australia             3.1%


 250                          Other Asia         1.9%        250
                                                                                         Indonesia             3.1%

   0                                                           0
        2009   2015   2025                                          2009   2015   2025



                       Seaborne export market trends highlight key supply and
                                 demand markets across the globe
                                                                                                        Source: Wood Mackenzie   23
                                                Growth focused on the Indo-Pacific basin




                                                                                                                    Russia
                                                                                                                  69Mt exports

                                                                             Europe
                                                                          160Mt imports
                         USA/Can.
                                                35% of
                        22Mt imports             world                                                                                         N. East Asia
                                                thermal                                                            China                       221Mt imports
                                               demand in                                                         50Mt imports
                                              the Atlantic
                                                 basin
                                                                                                         India
                                                                               36 Mt                  50Mt imports
    Minor trade flows
                                        Colombia
    Major trade flows                                                                                                        Indonesia
                                       65Mt exports
                                                                                                                            215Mt exports
   Importer                                                                 South Africa              26 Mt
                                                                                                      to Asia                          Australia
                                                                            62Mt exports
   Exporter
                                                                                                             65% of                  135Mt exports
                                                                                                              world
                                                                                                             thermal
  Others          Others                                                                                   demand in
74Mt exports   117Mt imports                                                                                the Indo-
                                                                                                              Pacific
                                                                                                              basin

                                             Source: Anglo internal, IEA, McCloskey, Wood Mackenzie   Note: Only major trade flows shown; rounded figures, 2009 basis   24
                                            AATC maintains its position as swing supplier to
                                                         Atlantic and Indo-Pacific markets

              South African exports 2003–2009
                                                                                      Declining volumes to Europe
 Volume in Mt 1 (% of total sales)                          CAGR '03–'09
                                                                                        – Overall stagnating market demand due to
              75
                                                                                          economic and environmental factors
 71                                   70
       68     12%     68      68
8%                                            672                                       – Competition from Colombian coal suppliers and
       8%                            14%
2%            5%     12%     10%              8% Others         +1%                       softer gas prices
        2%
8%             7%             7%
       10%            4%              6%     12% Other Asia     +28%
                      7%           8
                             13%
                                 (12%)                                                Increasing volumes to India
                              6%      7%       19
                                                   India        +55%                    – Strong growth of Indian seaborne demand
                                             (28%)

                                                                                        – South Africa geographically favorably
                                              8% ME             -2%                       positioned to supply India
80%    79%    75%
                     76%
                                       42                                               – Complementary product properties to lower CV,
                             63%
                                     (60%)                                                high moisture Indonesian coal
                                               29
                                                   Europe       -11%
                                             (44%)                                      – Premium achieved on exports to India
                                                                                          compared to Europe

2003   2004   2005   2006    2007    2008    2009                -1%


                                      30% of AATC’s SA exports supplied to India in 2009
                                                                           Note: 1. Minor volume of Met Coal included in export figures 2. Including 3 Mt metallurgical coal
                                                                                                                                       Source: McCloskey; AATC analysis        25
                                                    Thermal Coal Pricing Outlook

Export thermal coal prices follow indices – which are expected to remain high going forward

        USD/t




                 API4 (FOB RBCT)
                 API4 forward curve




                1981 - 2001           2002 - 2007      2008 - 2009   2010 - 2014



                                                                                   Source: McCloskey   26
                  Key market trends and implications for Thermal Coal


     Market trend                                     Thermal Coal implications


                            • Export market growth will be driven by two key markets
Pace of growth in China
                            • Moderate slow-down in Chinese GDP growth and delays to Indian expansion not
       and India              expected to change structural market shift


                            • Restricted rail and port facilities in key geographies, particularly Australia and
Rail and port constraints     Southern Africa, limit growth
                            • Supply constraints could result in pricing upside


    Environmental
                            • Understand impact in each market and develop appropriate mitigation strategies
Regulation and Taxation


                            • Coal is expected to maintain its share of growing world primary energy to 2030
   Alternative Fuels        • Impact of cheaper gas expected to be limited on main growth markets for coal
                            • Important to keep track of impact of - and potential opportunities in - related fields




                                                                                            Source: Anglo American Thermal Coal   27
                                                    Agenda




1. Overview of Anglo American Thermal Coal (AATC)

2. Market Overview

3. Strategy & Growth Pipeline




                                                         28
                           Anglo American Thermal Coal Future Production


                 Current production levels are sustainable for a number of years.

Production, Mt
    140
                                                                                          Limpopo
    120
                                                                                          Elders OC
    100                                                                                   Cerrejon P500

                                                                                          Waterberg
     80
                                                                                          Elders UG
     60
                                                                                          Heidelberg UG
     40                                                                                   New Largo

                                                                                          Cerrejon P40
     20
                                                                                          Existing and Approved
      0
          2010

                    2011

                           2012

                                  2013

                                         2014

                                                2015

                                                       2016

                                                              2017

                                                                     2018

                                                                            2019

                                                                                   2020
                    Projects under review could increase production levels
                                         significantly

                                                                                          Source: Anglo American Thermal Coal   29
                                       Approved project: Zibulo

         Topic                                    Description

General information     •   Approved in Dec. 2007
                        •   Project includes colliery and Phola coal wash plant
                        •   Mining started Q4 2009 (0.1Mt)
                        •   Full capacity 6.6Mt reached in 2012

Products
 • Export               • 3.3mtpa
 • Eskom                • 3.3mtpa

Financials              • Capital expenditure = US$505m



People                  • 659 @ full production



Ownership               • 73% Anglo American
                        • 27% Inyosi


Production & reserves   • 20 year life @ 8mtpa ROM
                        • 8 CM production units supported by battery haulers & shuttle cars



                                                             Source: Anglo American Thermal Coal   30
                                                  Project: New Largo

           Topic                               Description

Timeline                • Feasibility study: 2010 – 2011
                        • First coal: 2013
                        • Full capacity: 2017

Products
 • Eskom                • 14mtpa to Kusile Power Station


Financials              • Estimated capital expenditure = US$1.7Bn



People                  • 870 @ full production


Ownership               • 73% Anglo American
                        • 27% Inyosi


Production & reserves   • 50 year life @ 14mtpa ROM
                        • Two 100m3 draglines




                                                           Source: Anglo American Thermal Coal   31
                                                          South Africa Infrastructure Constraints


                                                                          South Africa forecast power supply &
TFR expected railings vs RBCT capacity                                                   demand

                                                                    TWh
Capacity, Mt                                                         290
   100
                                            RBCT Capacity
                                                                    280
    80

                                            Anglo TFR Allocation                                                         Demand
                                                                    270
    60                                                                                                                   Demand with
                                                                                                                         energy savings
                                                                                                                         Supply
                                                                    260
    40
                                            Others TFR Allocation


    20                                                              250



     0                                                              240
         2011
         2011   2012
                2012   2013
                       2013   2014
                              2014   2015
                                     2015                              2010    2011   2012    2013        2014



                        SA infrastructure capacity expected to expand but both rail
                         and power supply expected to be limited in medium-term

                                                                                             Source: Anglo American Thermal Coal, Eskom, TFR   32
                                       Southern Africa Infrastructure

Emergent coal export corridors – possible medium term scenario

                                                  Tete
                                     Hwange
                                                                    Beira




                            Botswana           Limpopo




                            Waterberg
                       (to connect to RBCT
                                                           Maputo
                               line)

                            Witbank-Highveld
                                                         Richards Bay



                                                                     Existing export corridors

                                                                      Emergent export corridors




     Undeveloped basins will require significant transport
                 infrastructure investment

                                                                        Source: Anglo American Thermal Coal   33
                                                               Coal Bed Methane Gas


                                                    CBM exploration and pilot projects


     Waterberg CBM Pilot Project               Waterberg

                                               •   Waterberg CBM exploration proceeding
                                               •   Small-scale production tests ongoing
GROOTEGELUK                        LEPHALALE
                                               •   Conceptual study in progress
    COLLIERY


                                               Botswana

                                               •   Significant leaseholds in Botswana
                                               •   Reconnaissance exploration in progress




                               Cleaner energy from coal –
                    leading the exploration of CBM in Southern Africa


                                                                            Source: Anglo American Thermal Coal   34
                    Discard Coal-Fired Power Project


                          Witbank project to utilise waste coal



                      •   Project under evaluation: fluidised bed boiler
                          technology, ~300MW
                      •   Third party ownership – est. capex ~US$600m
                      •   Power for use of Anglo American - could enable
                          growth projects and hedge against future costs of
                          power
                      •   Technical advisers appointed




Reducing environmental impact of waste dumps –
        and improving SA power supply


                                                    Source: Anglo American Thermal Coal   35
                                                                                                                      Conclusion



Stable cash generating business and consistent contributor to AA plc profitability

Positive market outlook for RSA thermal coal in the medium term driven by export demand in the
Indo-Pacific region & domestic South African power demand

Thermal export prices expected to remain at historically high levels in the medium term

AATC South African operations in the 1st quartile of the global cost curve

Strong growth pipeline but infrastructure constraints will need to be resolved

Strong resource & reserve position with reserves of 1.2 billion saleable tons (proved & probable)
& further resources of 1.9 billion MTIS1 (measured & indicated)

Global growth opportunities under evaluation




                                               Notes: 1. MTIS = minable tonnage in situ. Reserves & resources include South Africa and Colombia   36
Appendix
                                                                                  Global Coal Production

Total world coal production of 6.8Bt in 2008
 concentrated in relatively few countries &
      principally in domestic markets                        Major coal producers & exporters (2008)
Production*, Bt                                       Mtoe
   7.0                                                           Major Domestic
                                                       1.5                                                         Net Exporters
                                    13%   Export                    Markets
            18%   Other
   6.0
                                                       1.3
             3%   Indonesia
             4%   South Africa
   5.0      5%    Russia                               1.0
            6%    Australia
   4.0      8%    India
                                                       0.8
            16%   USA                                                                                                                                  Coal Produced
   3.0
                                    87%   Domestic     0.5                                                                                             Coal Consumed

   2.0
            41%   China                                0.3
   1.0
                                                       0.0




                                                                                  India




                                                                                                       Indonesia


                                                                                                                    South Africa
                                                              China




                                                                                           Australia




                                                                                                                                   Russia


                                                                                                                                            Colombia


                                                                                                                                                           Poland


                                                                                                                                                                    Canada
                                                                      USA
   0.0
         Production              Production
         by Country              by Market


                          Small imbalances in large domestic markets like China &
                            India have a significant impact on the export market
                                                                            Source: BP Statistical Review of World Energy 2009, Wood Mackenzie
                                                                                                                     *Note: Includes all coal types                          38
                                                                                              Management Team


                                                                        CEO
                                                                     Thermal Coal

                                                                      N. Mbazima




  Head of        Head of         Head of        Head of       Manager          Head of       Head of           Joint Venture          Head of
  Thermal      Commercial        Human         Marketing &    Comm. &          Safety     Strategy & BD          Manager               Mining
 Operations   & Performance     Resources        Sales       Public Affairs                                      Cerrejón             Services

 D. Haselau    M. Samad        P. Williamson   Z. Docrat*      Y. Mfolo       P. Fourie    L. Horne*             C. Wiggill          A. Johnson




* Acting




                              AATC building up an integrated management team

                                                                                                          Source: Anglo American Thermal Coal     39

				
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