OUR NEWS

GROWTH IN INDIA

AUSTRALIA – NO.02DECEMBER 2010

Rain immunisation PRojectManaging our wet weather impacts

tRansPoRtation safety woRkgRouPGeneral Managers complete training

HunteR Valley HistoRy celebRatedPlashett homestead public viewing

metalluRgical coal

over the next three years the sales and marketing team of anglo american’s metallurgical coal (met coal) business unit will increase our metallurgical coal market in india by 40 per cent, making india the company’s largest growth market.

Met Coal Sales Manager Cory Bougoure said Met Coal had a promising future in India based on the current steel industry boom that was riding the back of India’s rapidly developing economy.

“We are currently experiencing significant growth in our customer base in India, with publicly owned and private steel mills, and we are building on our existing business relationships to take up opportunities with additional customers.

“Our presence in India is not new, as we have been operating in this environment for more than 20 years.

“Rising Gross Domestic Product (GDP) in combination with significant customer expansion plans represents a strong opportunity for us to expand in this market, to address a growing demand for coking coals.”

Met Coal marketing representatives meet on a quarterly basis with India’s Empowered Joint Committee (EJC), a panel who form the decision making board for India’s predominant publicly-owned steel mills, and secure our future contracts.

“It is through the negotiations with the EJC that we determine a price for our metallurgical coal,” Cory said.

Cory said India’s private steel industry was also growing exponentially.

“India’s GDP rose to 8.9 per cent in Quarter 3 2010 and more privately owned steel mills are planned to support this growth,” Cory said.

“Our PCI coal (Pulverised Coal Injection) will be a key growth market in India,” Cory said.

CONTINUED ON pAGE 2

2 OUR NEWS DECEMBER 2010

LETTER FROM THE CEO2010 has been another year of change for Anglo American. Metallurgical Coal started the year strongly delivering a record half year production of 14.4 million tonnes across all coal products and a 43 per cent increase in sales of high margin metallurgical coal. Despite recent wet weather in Central Queensland, we are well placed to deliver an outstanding full year performance.

Seamus French, CEO.

“we are well placed to deliver an outstanding full year performance.”

CONTINUED FROM pAGE 1

GROWTH IN INDIA“Traditionally steel mills did not have the infrastructure in place to facilitate the injection. However, new larger mills are being equipped with this technology, leading to increased sales of metallurgical coal. This is an exciting time for Met Coal, as we grow our business to increase our production and keep up with this growing demand,” Cory said.

Met Coal is looking to increase its production capacity through asset optimisation projects underway at site including the Longwall 100 and the Cap15 projects as well expansion opportunities such as the Foxleigh Plains project. The Foxleigh expansion has the potential to increase Foxleigh’s PCI capacity by approximately 40 per cent.

We were deeply saddened by events at Pike River, New Zealand last month. A tragedy such as this affects everyone in the mining community. Our thoughts are with the loved ones of the 29 men who perished. This only reaffirms the importance of safety in our industry.

At Anglo American, our drive for Zero Harm remains our number one priority. Statistically we have had a successful year in terms of reducing our Lost Time Injuries, with our Lost Time Injury Frequency Rate (LTIFR) of 0.6 an improvement on 2009’s figure of 0.8.

We have made good progress, but we still have a long way to go. Even one safety incident is one too many. The blasting incident at Drayton mine and a recent crushing injury from a roof support at Grasstree underground mine provide the harsh reality of how imperative safety is, and that it is up to all of us to ensure we all stay safe at work.

Following a series of safety audits carried out at all sites, we have recently developed a detailed Target Zero Action Plan (TZAP), setting out the core activities Met Coal will focus on in 2011 in order to continue to improve safety and health outcomes for all those who work in our business.

We have set clear expectations for safety leadership, contractor management and prevention of musculo-skeletal injuries and compliance with the Anglo American Fatal Risk Standards (AFRS) and Surface Traffic Management Standard. These will be widely adopted and promoted next year. This year, all sites have been actively involved in identifying their top five safety challenges and ways to overcome them. This work will form the basis for site safety improvement efforts in 2011.

A key part of our strategy for the first half of 2010 was to increase production of metallurgical coal products and to drive down unit costs through asset optimisation and continuous improvement at our operations. The Foxleigh Plains, Longwall 100 and Cap15 projects are now underway, driving production and positioning us to take advantage of continuing demand for metallurgical coal from China and India.

Our aim for 2011 is to build on our production successes, grow the business and achieve our goal of doubling value in ten years. I am pleased to announce that in the week of 22 November 2010 we received Anglo American Investment Committee approval to progress the Drayton South project from the pre-feasibility to the feasibility stage.

I would like to congratulate the project team for their excellent work so far. We now have a three year programme of work for Drayton South, which will cover preparation and submission of the Environmental Impact Study (EIS), the granting of a mining licence and delivering a detailed exploration and engineering programme.

In 2011 we will also continue to engage with all stakeholders to help determine the future mine plan while minimising negative impacts on our neighbours and the environment. The Grosvenor EIS has been completed and was submitted to the Queensland Government for preliminary assessment on 20 December.

August saw the launch of Anglo American’s new corporate brand and corporate identity. This means that, for the first time, Anglo American is presenting itself as a unified global company with a single brand, a common set of values and a common goal of becoming the leading global

mining company. Full implementation of the new brand will be competed in 2011. You would by now have started seeing changes to the way our company looks and communicates, including the first phase of an advertising campaign raising public awareness of Anglo American across Australia by showcasing our achievements. We will build on this momentum with the April 2011 launch of the second phase of our advertising campaign.

The focus of the campaign will be promoting our mining innovations, production improvements, environmental rehabilitation, attracting the best people and developing our existing great talent. We will do this by demonstrating we are people making a difference in a company making a difference.

As you would be aware, on 22 November Anglo American announced its decision to commence a divestment process for Callide mine. The decision was a difficult but necessary step to deliver our business strategy to focus on growing the metallurgical and high margin export thermal coal business. Callide mine is a thermal coal operation primarily supplying domestic power stations in Biloela and Gladstone. Because of this, owning and operating the mine does not align with our strategy.

Similarly, the sale of the Bylong and Sutton Forest undeveloped coal assets in New South Wales and the three open cut coal deposits Collingwood, Ownaview and Taroom in Queensland in July were necessary steps to enable us to focus on our existing high-margin products, growth project pipeline and expansion plans for our existing metallurgical coal operations. Adhering to our strategy will deliver on the vision of becoming the best metallurgical coal business.

Finally, I’d like to thank you all for your continued support throughout the year. I wish you and your loved ones a very happy and safe Christmas break, and look forward to seeing you again in the New Year.

3OUR NEWSDECEMBER 2010

Met Coal Business Improvement Specialist, David Boshoff, said our business plans currently factor in 35 rain days at each site per year, and significant opportunity exists to reduce this number by managing the operational impact of rain.

“The project will be delivered in two phases, initially by looking at what can be achieved by the end of December, and then developing a longer-term strategy to develop permanent road infrastructure, road maintenance programmes and long-term contracts with suppliers,” David said.

“We have examined Dawson, Capcoal and Foxleigh to determine what we can do to reduce wet weather impacts and the associated cost to the business.

“Rain currently impacts operations in ways such as restricting our access to equipment and creating poor road conditions.

“Our water pumping capacity at site has limitations as our existing pump infrastructure is not designed to accommodate surges and flood events.”

The Rain Immunisation Project team will tackle this in the following ways:

• Road building and improving road conditions. Construction standards have been revised and together with an innovative binding agent on the top 15 centimetres of the road surface, this will prevent roads from being saturated or washed out and enable safe operating in wet weather.

• Increasing pumping and piping capacity to get the water out of the pit, and organising emergency pumps on site.

• Developing stockpile strategies. It’s important we ensure the correct volume of Run of Mine (ROM) coal is on the ROM stockpiles for accessible and efficient processing through the Coal Handling Preparation Plant (CHPP). The objective is for uninterrupted supply of ROM coal to the CHPP.

“Another challenge we are facing is the release of water from the mining lease once the water has come into contact with disturbed land,” David said.

“Overall water management is critical, such as designing our pits to maximise water diversion within the legislative framework, so it doesn’t run into the mine in the first place.”

As a first step, Met Coal has started improving the road infrastructure at Capcoal and Foxleigh, by incorporating a design focusing on the road camber, drainage and use of the binding agent to reduce recovery times after rainfall events.

“35 per cent of all roads are at the desired standard and we will achieve 100 per cent by March 2011,” David said.

Managing our wet weather impacts on production roads is one part of the Metallurgical Coal Water Management Strategy which is also concerned with controlling risks associated with water shortage and improving efficient water usage.

UNDERSTANDING THE FOXLEIGH RESOURCE WITH 2D SEISMICMetallurgical Coal is undertaking an integrated exploration programme at Foxleigh mine to better understand the available resource using two-dimensional seismic data and exploration drilling.

The 2D data allows the exploration team to rapidly define coal in the short term mine area to provide a clear path for immediate coal excavation, as well as define the longer term expansion areas.

Met Coal Operations Geologist Simon Brady said the 2D seismic data was accurate enough to be used in the detailed mine planning of future mine areas.

“The geology of Foxleigh mine is very complex, with the coal seam being tightly folded with steep dips and disrupted by large thrust faults, making it so important for us to understand this in advance to better plan our coal recovery,” Simon said.

“Our investigations have helped us understand the resource potential throughout the Foxleigh leases,” Simon said.

Simon said the combination and integration of the different data sets may allow for the drilling of fewer exploration holes while still retaining the required level of resource definition.

“Initial results have already shown success with the discovery of a previously unknown fault repeated area of coal located close to the surface,” Simon said.

This integrated approach to exploration will allow Foxleigh to more rapidly define the future mining areas to support the mines ongoing opencut production of a premium PCI product for export.

2D seismic section through the Foxleigh Plains deposit.

RAIN IMMUNISATION pROJECTMet Coal is currently implementing the Rain Immunisation Project, a wet weather continuity project to reduce the number of wet days that affect our Dawson, Foxleigh and Capcoal sites and delivering more than $US2 million in additional value to the business per salvaged wet day.

4 OUR NEWS DECEMBER 2010

General Manager, Open Cut Mining Excellence, Hans Hayes, said the conferences allowed employees to showcase their achievements to date, learn from their colleagues and enhance their career through exposure to other areas of the Anglo American Group.

“We are committed to developing the skills of our mining professionals at Met Coal and wider exposure to other professionals across the Group helps our people to better understand our business, and identify international solutions that can help us improve the way we operate in Australia,” Hans said.

“Likewise, our Met Coal employees have been involved in a number of value-adding projects over the past year, and this was their chance to showcase their efforts to use engineering to address operating constraints.”

The following papers were presented at the conferences:

• Excavator planning at Drayton mine – presented by Erik Heiland;

• Improved water recovery and water storage capacity through enhanced flocculation at tailings dams at Dawson mine – presented by James Millar;

• Eliminating nuclear sources at Moranbah North mine – presented by Sam Spear;

• Improving mine development rates at Grasstree mine to improve Longwall productivity – presented by Adam Gray;

• Coal clearance optimisation at Moranbah North mine to improve longwall utilisation and increase production – presented by Brett Murray; and

AppLAUD AWARDSOn 8 October 2010 Met Coal’s Rural Property Manager, Ian Curtis, won the Partnership Award at the inaugural Applaud Awards’ ceremony in Rio de Janeiro, Brazil for the successful collaboration with dairy farmers located on the Dartbrook lease.

Met Coal’s Ed Crawford and Scott Brown were also recognised for their outstanding achievements and received Highly Commended awards in their respective categories of Sustainability and Innovation.

At a gala dinner held in Rio de Janeiro, Group CEO Cynthia Carroll announced the winners of these special awards to an expectant audience, including finalists being honoured for their special contribution to Anglo American.

“The Applaud finalists have clearly made a difference – to our operations, our industry, our partners and our communities,” Cynthia said.

“Collectively they have increased our revenues, enhanced our reputation, advanced our industry, sustained our licence to operate as well as improved and, in more than one case, quite literally saved lives.”

Met Coal Chief Executive Officer, Seamus French, said he encouraged employees to start thinking about next year’s nominations.

“There is much innovation and best practice underway across our business, I look forward to our high-achieving employees receiving the recognition they deserve once again next year,” he said.

The nomination period for the 2011 Applaud Awards will be advertised in Quarter 1 2011.

young mining PRofessionals deVeloP skills at

GLOBAL CONFERENCESIn recent months Anglo American has hosted three global conferences for young mining professionals across the Group, where delegates presented key learnings from significant projects they have worked on and shared case studies across the business. The conferences were SMART, JIMEC and Young Mining Professionals and Met Coal sent two engineers to each conference.

• Hydraulic contamination control on excavators at Capcoal Surface Operations – presented by Leigh Wignall.

SMART conference delegate and Electrical Longwall Engineer at Moranbah North mine, Brett Murray, said the conferences sent a strong message about the engineer’s role in asset optimisation, and how smart ideas today influence the business performance in the future.

“It is our responsibility to examine the data we collect about the performance of our machinery, pick up the trends associated with lost production time and design improvements that will maximise our performance,” Brett said.

DRAyTON MINE’S ERIk HEILAND’S pApER WINS FIRST pLACEDrayton mine engineer, Erik Heiland, received global esteem when he won first place in the Anglo American Young Mining Professionals conference held in Johannesburg in early November.

Erik’s paper, ‘Excellence in excavator planning at Drayton mine’ focused on the importance of managing the site’s excavators from the design phase right through to the implementation in the field.

His project included rigorous and regular reviews carried out for the excavators at site, including the optimisation of dig plans by cross checking their performance against the Monthly Operating Plan.

“As part of the planning process, we determine the average monthly dig rate per excavator for input in schedule, and track this throughout the month,” Erik said.

Group Director of HR and Communications Mervin Walker, Ian Curtis and Seamus French.

Platinum’s Roelof Miehaus and Met Coal’s Erik Heiland with his award.

5OUR NEWSDECEMBER 2010

met coal has recently implemented a new reporting system for its open cut operations. the system provides information about equipment availability, utilisation and mining rates which enables operations to better understand the performance of their assets and develop business improvement projects. this is driving significant cost benefits for met coal.

Met Coal Information Management (IM) Regional Manager, Ben Vosloo, said the new production reporting system presents a consistent and unified view of the key performance indicators for equipment that Met Coal use for performance benchmarking across all open cut operations.

“In the past, information was gathered from the various data management systems across the different sites, manually altered to achieve consistency, and then placed in a spreadsheet to provide across site benchmarking,” Ben said.

“This was a time consuming task that was only performed quarterly and there was a real need to develop a system that addressed these issues.

“The production reporting system is the first aligned productivity reporting system to be used across an Anglo American business unit,” Ben said.

It works by collating the data automatically recorded by the systems on board the equipment, including Pegasus dragline monitoring systems and Leica and Modular fleet management systems.

Pegasus, as an example, records the number of dragline swings and bucket weights and then uses the data to calculate the overburden removal rate.

“The on-board data is automatically transferred to local data warehouse and we extract information from these,” Ben said.

Met Coal IM Systems Analyst, Skye Howell, said the system now has the ability to remove unavoidable factors that affect productivity such as wet weather and scheduled major shutdowns, to enable engineers and analysts to focus on the controllable factors affecting the equipment performance and efficiency.

From a business-wide perspective the information enables the Met Coal leadership team to assess the relative performance of the key items of equipment across the sites and make tactical decisions about the value focus areas or deployment of equipment across sites, such as the relocation of the 350 tonne excavator to Capcoal to increase production at that site.

“From a site perspective the reports form the benchmark information that is used to develop business equipment improvement plans. For a dragline, this may mean increasing the size of the bucket or improving the performance of the dozer to maximise utilisation,” Skye said.

The project commenced in the open cut operations, under the guidance of Hans Hayes. Draglines, shovels and excavators have been completed, and work has commenced on drills and trucks. In the coming months the IM team will examine how to apply this same reporting system to the underground operations.

PRoduction RePoRting system deliVeRs

MET COAL ASSET OpTIMISATION

6 OUR NEWS DECEMBER 2010

On Thursday 18 November Met Coal General Managers completed the Transportation Safety Workshop at the Brisbane office, facilitated and also completed by Head of Safety and Sustainable Development (S&SD) Susan Johnston and Head of Operations Dieter Haage.

Susan said following the successful completion of the pilot workshop, the transportation safety workshop will be rolled out at sites in the New Year, with the Senior Leadership Teams completing the activities to better understand the safety hazards associated with transportation and mine vehicles at site.

“The programme has been designed to address common hazards identified across the Group during the transportation audit carried out late last year,” Susan said.

“Met Coal General Managers have successfully completed the workshop, understand the content and will now lead delivery of the programme through the business,” she said.

The workshop is part of a wider Group S&SD frontline transportation safety engagement programme called ‘Why risk it?’ which has been built around transportation safety hazards identified across all business units, including speeding, visibility constraints, collisions and symptoms such as fatigue.

Met Coal recently rolled out a road safety campaign at its Dawson mine, to remind employees about the importance of safe and responsible driving and the need to remain vigilant in the lead up to and during the Christmas period.

Dawson mine Manager Andy McLeod said Road Trauma Services Queensland (RTSQ) volunteer Phil Barry had facilitated more than 20 meetings at Dawson, with approximately 600 employees attending the sessions over the course of the week.

“RTSQ is an organisation offering counselling support to victims and families that have been affected by a road trauma incident, while also delivering safe driving awareness programmes focussing on the consequences of unsafe driving practices,” Andy said.

“To show our appreciation for the work the organisation conducts in the region, Dawson mine made a donation of $5000 towards their awareness training.”

Workshop apprentice Nick Lucht presented Phil with the cheque, as he also had recently

facilitated a number of presentations as part of a road safety campaign for his apprentice colleagues.

While in the region, Phil also spoke to year 12 students at Moura State High School and conducted a few crew sessions at Callide mine.

Phil lost his son, Anthony, in a car accident eight years ago and now aims to make a positive change in the lives of others by encouraging safer driving or providing support to bereaved families.

Andy McLeod said the presentation was well received.

“Phil said he was impressed by the positive reaction of our employees and their willingness to take in the safe driving messages,” Andy said.

“The driver awareness training reminded employees that it’s not just at work when you need to practice safe behaviours.

“It’s on the job, on the weekends, behind the wheel of the car and in the home.

“Safety is at the cornerstone of everything we do,” he said.

DAWSON MINE CONDUCTS

DRIVER AWARENESS TRAINING

TRANSpORTATION SAFETy WORkSHOp

“ the programme has been designed to address common hazards identified across the group.”

Robert Craike, Brett Thompson, Julian Vella and Alisdair Gibbons complete the Transportation Safety Workshop.

Phil Barry conducts a safe driving presentation at Dawson mine.

SAFETy

7DECEMBER 2010 OUR NEWS

ANGLO AMERICAN’S

BRAND UpDATEit has now been five months since anglo american launched its new brand. the new brand is about communicating who we are and what we do, and presenting one unified identity across the globe.

In recent weeks a signage survey has been conducted at key Australian sites to identify signs to be replaced. Site signage will be updated in the first half of next year, as old Anglo Coal signs are replaced with new Anglo American signage. You will have already started to see new site uniforms displaying the new Anglo American brand, and this will continue as sites place their annual uniform order in the New Year.

In 2011 we will continue to lift Anglo American’s profile externally, through the media, engagement with communities, promotion of growth projects to key stakeholders and phase two of the advertising campaign: Real Mining. Real People. Real Difference.

Some key branding tips:

• External Affairs is available to assist with all branding enquiries. If you are ordering any promotional materials displaying the new brand, please contact Jacqui Strambi and provide a proof of your design for approval.

• Please ensure your suppliers are providing you with materials with the correct brand. If you need to be provided with information about the new brand, please contact External Affairs.

• In 2011 our email signatures will change. As a result of widespread feedback from across the Group, the new standard template will incorporate the new logo.

COMMUNICATING OUR DIFFERENCEPlease remember – we are all employees of Anglo American. It is up to all of us to communicate our difference to others. If consistent communications are vital in establishing our brand position, our behaviour is critical for maintaining it.

Our brand position – ‘people making a difference in a company making a difference’ – recognises the vital role all employees play in shaping our stakeholders’ experience of Anglo American.

Ultimately, our stakeholders’ experience is determined by our behaviour – and our behaviour determines if they feel our difference is real.

Our brand positioning is underpinned by our values – safety, accountability, collaboration, innovation, integrity, care and respect. Taking decisions and adopting behaviours consistent with these values is the simplest and most effective way of strengthening our position and making Anglo American the investor, partner and employer of choice.

BOWEN BASIN GEOLOGISTS GROUp

Metallurgical Coal geologists were some of the first employees to present the new brand to external stakeholders when Anglo American sponsored the Bowen Basin Geoscientists Symposium in October 2010.

This sponsorship included an information stand through which Anglo American could promote the existing exploration work underway and future growth projects, helping us build our reputation as employer of choice and attract potential employees to work for us.

Regional Manager for Resource Assessment Andrew Willson said the conference provided an opportunity for Anglo American to promote the key role Geology has in four key areas of the business:

• Operational Geology

• Resource Evaluation

• Exploration

• Projects and Business Development.

“Geoscientists at Anglo American play an integral role in the business, from the identification of new opportunities through to exploration, project development and operations,” Andrew said.

“We not only play a key role in understanding the resource, we support the sustainability of our business by working within our projects and business development teams to identify and develop our next generation of operations.

“We sponsored the BBGG Symposium to generate awareness about our business and attract the right people to deliver our future projects.”

The Met Coal information stand at the BBGG Symposium.

HOW TO DESCRIBE OUR BUSINESS UNITThe Metallurgical Coal business unit should not be shortened to ‘AAMC’. Here are some examples of how to describe Metallurgical Coal:

• Anglo American’s Metallurgical Coal business unit

• The Metallurgical Coal business of Anglo American

For audiences who already know you are a business of Anglo American:

• Metallurgical Coal (Met Coal) in the first instance and then “At Met Coal we …”

When describing the legal entity, in contracts or other formal documentation, always use the full company name: Anglo American Metallurgical Coal Pty Ltd.

8 OUR NEWS DECEMBER 2010

Anglo American’s Capcoal Underground and Surface operations have supported a number of worthy causes in Middlemount throughout the year, including Middlemount Youth Support which received a $20,000 sponsorship donation.

Capcoal Surface Operations General Manager, Alisdair Gibbons, said Anglo American was committed to supporting our local communities by donating funds for projects that contribute to local community growth and reflect the priorities of local people.

“The Middlemount Youth Support Centre’s objective is to increase engagement with the young people in our area,” Alisdair said.

“The centre offers services to up to 90 young people per week and our donation is used for administrative costs to run it.

“The youth centre’s door is always open to young people wanting to chat or seek advice, or looking for someone to confide in during difficult times,” Alisdair said.

“It also provides a safe area for the young people in our community to get together for some good clean fun, such as playing pool or video games and interacting with their mates.

“Capcoal is pleased to be able to keep this valuable service running in Middlemount,” he said.

As part of the annual sponsorship round, Capcoal and Foxleigh operations were also proud to provide the Mackenzie River State School with a $4000 donation towards their school camp in Western Queensland earlier this year.

Other community groups supported by Capcoal this year include:

• $3000 towards Mulligrubs Playgroup;

• $3000 for the Middlemount Senior Rugby League; and

• $2500 for the Middlemount Motocross Club.

In late September 2010 Capcoal donated $2000 to assist the Isaac Regional Council with their “Read Pink” Campaign, an Isaac Library initiative that aims to support the National Breast Cancer Foundation and promote literacy.

Earlier this year Capcoal and the Brisbane office also teamed up to cover $14,000 worth of surgery fees for the child of a Capcoal employee.

Alisdair said Anglo American will soon place advertisements in local newspapers calling for community groups to apply for the 2011 sponsorship funds. Application forms are also accessible on the Anglo American Australian website: www.angloamerican.com.au

anglo ameRican suPPoRts tHe juVenile diabetes ReseaRcH foundationIn October 2010 Met Coal presented the Juvenile Diabetes Research Foundation (JDRF) with a cheque for $4000, showing its support for local charities that make a positive difference to the lives of Australians in need.

The money had been raised by Met Coal’s Moranbah North mine at their annual suppliers’ golf day.

Moranbah North mine commercial manager, Albie Smit, said each year Moranbah North mine holds the golf day for employees and suppliers to get together in a relaxed atmosphere for a casual day of fun while raising money for worthwhile charities.

“Over the past eight years we have raised more than $30,000 for various charities including Camp Quality, and this year it was decided that JDRF would be a worthwhile organisation to assist,” Albie said.

“We raised $1,949.30 through the golf day and Moranbah North mine General Manager, Murray Wood, agreed to match this donation dollar for dollar, which gave us a grand total of $4000,” he said.

Anglo American purchasing officer Brook Thomas had nominated the foundation as this years’ recipient, having had previous exposure to the organisation through a member of her family who has type 1 (also known as juvenile) diabetes.

She travelled to Brisbane to present JDRF’s Georgina Duncan and Glen Harriss with the $4000 cheque at Anglo American’s Brisbane office.

“To be able to present this cheque to the Foundation means a lot to me personally as I know how important research into type 1 diabetes is,” Brook said.

“Finding new treatments and maybe even one day a cure would make such a positive difference to so many young families learning to live with the illness.”

ANGLO AMERICAN’S 2010 CApCOAL SpONSORSHIpS

Middlemount students at the Youth Centre, along with guidance counsellor Paul Dendle.

Moranbah North’s Brooke Thomas presents JDRF with the $4000 cheque.

9OUR NEWSDECEMBER 2010

On Friday 3 December Anglo American opened the historic Plashett Homestead to the public for the first time following a $205,000 restoration and launched the book ‘People, Property, Power’ which chronicles the history of the 140 year old homestead and the Hunter Valley region.

Regional Manager for External Affairs, Aldo Pennini, said Anglo American has demonstrated its commitment to the Hunter Valley region and the preservation of its history by investing more than $220,000 on the first stage of the Plashett

Homestead restoration and publication of the book ‘People, Property, Power’, written by local historian Cynthia Hunter.

“Anglo American is proud to present the first stage of the Plashett Homestead restoration to the people of the Hunter Valley,” Aldo said.

“Our aim is to preserve this beautiful homestead for future generations to enjoy.

Anglo American also launched the book, ‘People, Property, Power’ which chronicles the pioneering families such as the Robertsons, Whites

and Pearses who contributed much to the development and prosperity of the Hunter Valley.

“The Hunter Valley is a region extremely proud of its history and we are pleased to support the publication of this important book and the preservation of the homestead in which these pioneering families lived and forged new industries,” Aldo said.

Aldo said the Pearse family occupied Plashett from the 1850s to the 1970s and the homestead, circa 1866, is today located on the Anglo American Drayton South lease area.

“Copies of the book will be donated to local schools in the Denman, Jerry’s Plains, Muswellbrook and Singleton areas and as well as Upper Hunter and Singleton Libraries and the University of Newcastle,” Aldo said.

The first stage of restoration of the property included:

• Work on the homestead including weatherproofing, fire protection, security and essential maintenance on the homestead;

• Repairing and replacing timbers, fascias, posts around the verandas; and

• Repairing the sandstone veranda and demolishing the 1900s bathroom extension.

BOOk LAUNCH AND HERITAGE RESTORATION

pEOpLE, pROpERTy, pOWER

Drayton mine General Manager Mark Heaton said business improvement projects had been developed to enable the operation to uncover and deliver more coal, in order to meet the 2010 Business Plan.

“This has included the introduction of work-through Crib teams, improving shift handovers and maintaining working teams on machines,” he said.

Mark said Drayton was now seeing benefits from improvement initiatives implemented this year, including:

• The introduction of a small coal recovery excavator;

• Development and roll out of our Drayton Coal Recovery Guidelines;

• Seven day geological coverage;

• A dedicated Coal Recovery team; and

• Strata Recognition System on drills to minimise blasting damage.

There are a number of new initiatives being undertaken at site including:

• Project Zero (Production Safety Improvements);

• Eight Step Truck Servicing;

• Product Enhancement (Semi-soft coal opportunities); and

• Wet Weather Immunisation.

DRAyTON MINE COAL RECOVERy AND BUSINESS IMpROVEMENT

DRAyTON CTU UpGRADEDrayton mine is completing a $47 million upgrade of its Coal Treatment Unit (CTU). The project is progressing well and is on schedule for full operation in April 2011.

The upgraded CTU will improve the processing design of the plant and includes construction of a new fines module to treat -4 mm material as well as modifications to the existing plant to improve operability. Project Manager Roland Wells said the CTU upgrade would improve the overall quality of output coal, and increase Drayton mine’s exposure to the higher margin international markets.

“Civil construction of the new 30 metre diameter tailings thickener and the new clarified water tank has been completed and the new fines module construction has commenced. Once complete, the modifications will turn 1 million tonnes of domestic coal into 700,000 tonnes of export coal,” Roland said.

Australian Heritage Restoration’s Chris Bart, Anglo American’s Ian Curtis, Narelle Caslick, Historian and Author Cynthia Hunter, Anglo American’s Brian Baumhammer and Suters Architects’ Mark Fenwick.

10 OUR NEWS DECEMBER 2010

On Friday 19 November 2010 11 university students were welcomed to Met Coal as Scholarship Program recipients who will soon complete on site vacation work.

At Met Coal we are strongly committed to developing our future leaders. Each year our Scholarship Programme pays for 10 to 15 university students to study in the fields of mining, minerals processing, engineering, geology and surveying with an annual $12,500 payment that helps pave the way towards a rewarding career.

Chief Executive Officer Seamus French presented students with their scholarship

certificates and said he was particularly impressed with student’s achievements through their chosen university degrees and through extra curricular activities in their private lives.

“Our Scholarship Program concentrates on securing future technical employees and leaders for Metallurgical Coal in the engineering and geology disciplines,” Seamus said.

“Students receiving scholarships today will get to experience what working for Anglo American is really like.

“You have chosen promising careers in a strong industry and I’m sure you will enjoy working at our mines.

“We hope this is just the beginning of an ongoing relationship with you, as you go on to complete vacation work and then apply for Graduate positions with Anglo American as you finish your studies,” Seamus said.

In 2010 Met Coal received more than 200 applications for the Scholarship positions.

The 11 successful applicants are studying in the fields of Electrical Engineering, Geology, Mechanical Engineering, Chemical Engineering and Mining Engineering.

Students will conduct their vacation work from the 29 November 2010 until the 11 February 2011.

Met Coal Database Technical Officer, Jo Coppard, is on track to be Anglo American’s first Associate Diploma of Geoscience graduate.

The Mining Associates Programme is run through the Central Queensland University, with students completing a diploma while working at Anglo American.

Jo originally applied for a role with Anglo American through the Mining Associate positions, advertised as a solution for the shortage of engineering professionals.

“I was offered a position as a Mining Associate beginning in January 2006, working in the Geology Department with the site Database Geologist,” Jo said.

The mine was in the process of implementing ‘acQuire’, a geological database application for the management of exploration data and there was more than 30 years of drilling data to organise and load into the new system.

“After spending 12 months on the Associate Programme I realised my interest lay in the field of geology more than engineering.” Jo said.

“In semester 2 of 2008 Geoscience became available through the Associate Degree and I transferred my studies to this degree.”

Jo works with geological data obtained at the Anglo American Metallurgical Coal sites in the Central Bowen Basin Exploration Hub, which includes three underground mining operations and three surface mining operations.

“My role includes working with all facets of mining employees from exploration geologists to engineers and assisting mining professionals in using the data that we obtain to support and improve the mining processes,” she said.

Met Coal Geology Database Specialist, Paul Murtagh, said Jo had been instrumental in getting the acQuire system set up with valuable exploration data used for mine planning.

jo coPPaRd’s bRigHt futuRe tHRougH tHe

MINING ASSOCIATE pROGRAMME

anglo ameRican announces

2011 SCHOLARSHIp RECIpIENTSMetallurgical Coal welcomes the following students to the Scholarship Programme:

• Erin Daley

• Joshua Lorraway

• Aaron McLuckie

• Matthew Downing

• Dylan Hetherington

• Benjamen Thomson

• Matthew Grooby

• Michael Parker

• Kate Carstens

• Virginia Bailey

• Nick Hasche

11OUR NEWSDECEMBER 2010

BUSINESS INTEGRITyIn November 2010 Met Coal launched the new Anglo American Business Integrity Performance Standards. The Standards provide guidance for employees on preventing corruption when engaging with external parties. Seventy-two employees from bands 2–5 completed Business Integrity training in late November, with training for bands 6–7 to be conducted in early 2011.

The Business Integrity Policy introduces new disclosure requirements for employees receiving gifts, entertainment or hospitality from external parties. From 1 January 2011 Met Coal employees will be required to disclose any gifts received to their line manager. Gifts, conflicts of interest, use of company assets and charitable donations (as examples) must be disclosed to the Compliance Officer who will record the transaction in a register kept for auditing purposes.

For more information, please visit the Risk and Assurance section of the Metallurgical Coal business unit page on theSource.

DRAyTON MINE HOSTS VISIT FOR ETHANDrayton mine maintenance fitter, Tim Best, brought his three year old nephew, Ethan Blackmore, along to work at Drayton in September 2010. Ethan Blackmore was born with a serious heart condition known as Hypo Plastic Left Heart Syndrome, where the left side of the heart is very poorly formed and cannot support the main circulation around the body. Most babies are very ill in the early days of life and need urgent surgery to survive.

With the help of the Production Department Ethan viewed Caterpillar 789C & B series trucks being loaded by Hitachi 5500 excavators, Caterpillar D11 bulldozers pushing up dirt, but the highlight of the day was sitting with operator Garry Mears on the dragline. Ethan’s parents Chad and Leanda Blackmore thanked Anglo American’s Drayton mine for making this special day possible.

NEW ENABLON DATABASE LAUNCHEDOn 22 November 2010 representatives from Community, Environment and Human Resources roles at Met Coal sites and a member of the Perth exploration team travelled to Brisbane to attend a training session for Enablon, Anglo American’s new stakeholder interaction database. The system records the Social Investment we have committed to in the communities in which we operate. It also has the potential to be used for recording the Social Grievance and Complaints. The information collated in the database will enable sites to better understand the impact of our social investment and use this information to develop enhanced stakeholder engagement strategies that address the needs of our local communities. To ensure the 2010 Report to Society captures Met Coal’s Social Investment, all sites must record all 2010 investment (and previous investment that still has an impact on the community) in Enablon by the end of January 2011.

SpOTLESS SELECTED AS NEW FACILITIES MANAGEMENT TENDEROn 5 October 2010 Met Coal announced facilities management provider Spotless had been selected to manage all property and facilities services across Anglo American operations and accommodation villages in Australia. Anglo American is confident Spotless will deliver increased value to the business by enabling us to outsource all facilities management activities, minimise administrative duplication and grant our operations greater knowledge and control of our existing service requirements and assets. Anglo American’s commitment to local procurement remains. In support of this commitment, local businesses and existing suppliers have been strongly encouraged to apply for employment with the new provider.

MET COAL SUppLy CHAIN ON SHOW AT GLOBAL CONFERENCEOn 6 November 2010 Regional Manager for Supply Chain Margaret Davies and Head of Operations Dieter Haage attended the Anglo American global supplier conference in London. At the conference Margaret and Dieter ran a ‘trade fair’ information stand, where potential suppliers could learn more about Met Coal and our future projects. Margaret said in such a highly competitive market, the supplier conference was the chance to engage with our suppliers early and promote the development of long-term partnerships with Anglo American.

NEWS IN BRIEF

HyUNDAI STEELIn late June, Met Coal arranged a cross business unit visit to our major North Asian customers in Tokyo and Seoul. Anglo American representatives including Chief Executive Cynthia Carroll, Met Coal Chief Executive Seamus French, and General Manager Marketing and Transportation, Rod Elliott met with Hyundai Steel Executives in Seoul, along with executives from business development the Iron Ore business unit.

This key meeting reinforced the relationship between Hyundai Steel and the Met Coal business. Supply to Hyundai commenced in 2009 after two years of negotiations. Hyundai is a major steel mill with significant expansion plans in the Asian region. Our five year contract with Hyundai Steel includes various coals from our mines, specifically German Creek and Foxleigh PCI.

In 2009 Hyundai’s sales totalled US$130 billion. They are ranked world number two Electric Arc Furnace (EAF) producer, commencing production from their number 1 blast furnace in early 2010 with the number 2 blast furnace commissioned in November 2010 some months ahead of schedule. In 2010 Hyundai’s production will exceed 14 million tonnes, and will place Hyundai Steel in the Top 20 producers.

LIGHT WEIGHT TRAySMet Coal’s Felicity Edwards and Helena Lindhardt recently participated in the Anglo American global Programme for Management Excellence (PME) training course, through which they were asked to determine a value adding innovation that Anglo American should implement. Hans Hayes sponsored them in a project around light weight truck trays that has the potential to save the company $30 million per year through increased truck performance. The projects were evaluated by senior representatives in Johannesburg and Felicity’s team won first place. Met Coal will implement the first light weight truck tray on an 830 Komatsu truck at Dawson early in 2011.

Hyundai executives and Iron Ore’s Joffre Bariquelo and Timo Smit, Seamus French, Cynthia Carroll, Rod Elliott, Business Development’s James Harman, Head of CEO’s office Amy Becker and Business Development’s Peter Whitcutt.

ANGLO AMERICAN METALLURGICAL COAL

201 Charlotte Street Brisbane QLD 4000 GPO Box 1410 QLD 4001 Australia

T +61 (0) 7 3834 1333 F +61 (0) 7 3834 1366

www.angloamerican.com.au

NEWS IN BRIEFNEWS IN BRIEF

BARADA BARNA MEETINGIn September 2010 Met Coal representatives, including Seamus French, Susan Johnson and David Diamond, met with Barada Barna traditional owners to discuss indigenous business development opportunities.

After the meeting, Seamus French presented Talia Brown (pictured) with a scholarship for her studies in business.

DRAyTON DyNAMITESOn 28 August 2010 a walking team from Met Coal’s Drayton mine, the Drayton Dynamites, consisting of Darren Pisters, Darren Slade, Matthew Graham and Jade Little, completed the 100 kilometre Oxfam Trailwalker event in just under 33 hours, with the team raising more than $8000 for the charity.

Team member Matthew Graham said the $8000 was raised through sponsorship and fundraising events held in the months leading up to the trailwalker event, placing them among the leaders in fundraising in their industry category.

“Approximately 500 teams from across Australia attempt to complete the walk within a 48 hour period, with eight checkpoints along the track where teams can meet their support crews, refuel and refresh,” Matthew said.

The team wishes to thank their colleagues for the generous support they received.

pROSTATE CANCER RESEARCH FUNDRAISINGOn Tuesday 30 November Anglo American’s Moranbah South project team hosted a charity barbeque to raise funds for the Prostate Cancer Foundation of Australia. The event comes after one of the Moranbah South project’s long-serving contractors was diagnosed with prostate cancer last year, with the Foundation providing a crucial service to him and his family. He has since been through an operation and several treatments, and in October this year received a ‘six month clear’ report. A raffle was held at the barbeque with some fantastic prizes donated by supporters Black Woods and Protector Alsafe.

COOL NIGHT CLASSICOn Thursday 4 November 2010, a team of Met Coal employees, friends and family members took part in the five kilometre PricewaterhouseCoopers Cool Night Classic corporate run and walk in the Brisbane city.

This was the first year Anglo American had registered a team for this popular annual event, with Talent Coordinator Stephanie Elliott organising the team effort.

The Cool Night Classic has helped to raise more than $400,000 in vital funds for chosen beneficiaries. This year’s charities were The Pyjama Foundation and Street Swags.

CALLIDE SpONSORS BILOELA STUDENTSOn Sunday 31 October a group of year 12 Biloela State High School students competed in the Capricorn Rydges Triathlon, at Rydges Resort Yeppoon. These students have been participating in Triathlon in Physical Education and have been applying their knowledge of training principles to develop a six week training program to improve their performance for the event. Anglo American’s Callide mine made the event for these students possible through a sponsorship donation.

RIO pROGRAMBiloela and Moura students completing a 2010 Certificate 1 in Resources and Infrastructure Operations (RIO) programme at Callide and Dawson mines graduated on 8 December 2010.

Met Coal Operational Training Specialist Debbie Butler said the RIO Programme has been developed to enable Anglo American to engage students from our surrounding communities.

“The RIO Programme gives students a first taste of what their future career might look like, while also presenting the students with experience they can build upon in their future careers,” Debbie said.

While on site the students completed the following six modules:

• Working safely and following Occupational Health and Safety policies and procedures;

• Communication in the workplace;

• Conducting local risk control;

• Completing measurements and calculations;

• First aid; and

• Using hand and power tools.

The Drayton Dynamites on Stage 2 (25km of 100km).

Rhonda Stubbins and Alex Chapman with RIO students.

Meeting with Brada Barna representatives.

Cool Night Classic team.