ANGLO AMERICAN PLC - Anglo American approves Aquila hard coking coal project in Australia

Anglo American approves Aquila hard coking coal project in Australia

Anglo American plc (the "Company")
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM

25 July 2019

Anglo American approves Aquila hard coking coal project in Australia

Anglo American plc ("Anglo American") announces the approval by its Board of the Aquila project
to extend the life of the Capcoal underground (Grasstree mine) hard coking coal operations in
Queensland, Australia by six years, to 2028 ("the Project"). With an expected attributable capital
cost of US$226 million, development work is expected to begin in September 2019, with first
longwall production of premium quality hard coking coal in early 2022.

Seamus French, CEO of Bulk Commodities, said: "Aquila offers us a high margin six-year life
extension to our Grasstree mine, with an average annual saleable production of 3.5 million tonnes
(attributable) of premium quality hard coking coal at a real, post-tax IRR of more than 30%, and
an EBITDA margin of 40% at consensus long term prices. The project benefits from low capital
intensity as we can use the existing infrastructure and systems from our adjacent Grasstree mine
that is coming towards the end of its economic life, as well as providing continuity of employment
for our workforce."

The Capcoal complex includes the Capcoal open cut and Grasstree underground operations,
both managed by Anglo American. The underground operations are owned 70% by Anglo
American and 30% by Mitsui & Co. Ltd. ("Mitsui"). The Project is also subject to approval by
Mitsui. In 2018, the Capcoal open cut produced 2.0 million tonnes of metallurgical coal products
and Grasstree underground produced 3.6 million tonnes of hard coking coal (attributable). The
Capcoal open cut operations have a Reserve Life of 20 years, as at 31 December 2018.

For further information, please contact:

Media                                                 Investors
UK                                                    UK
James Wyatt-Tilby                                     Paul Galloway
james.wyatt-tilby@angloamerican.com                   paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759                              Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                      Robert Greenberg
marcelo.esquivel@angloamerican.com                    robert.greenberg@angloamerican.com
Tel: +44 (0)20 7968 8891                              Tel: +44 (0)20 7968 2124

South Africa                                          Emma Waterworth
Pranill Ramchander                                    emma.waterworth@angloamerican.com
pranill.ramchander@angloamerican.com                  Tel: +44 (0)20 7968 8574
Tel: +27 (0)11 638 2592

Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175

Notes to editors:

Anglo American is a leading global mining company and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining
operations and undeveloped resources provides the metals and minerals that enable a cleaner,
more electrified world and that meet the fast growing consumer-driven demands of the world's
developed and maturing economies. With our people at the heart of our business, we use
innovative practices and the latest technologies to discover new resources and mine, process,
move and market our products to our customers around the world - safely, responsibly and
sustainably.

As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron
ore, coal and nickel - we are the custodians of what are precious natural resources. We work
together with our business partners and diverse stakeholders to unlock the sustainable value that
those resources represent for our shareholders, the communities and countries in which we
operate, and for society as a whole. Anglo American is re-imagining mining to improve people's
lives.

www.angloamerican.com

The Company has a primary listing on the Main Market of the London Stock Exchange and
secondary listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the
Namibia Stock Exchange and the SIX Swiss Exchange.

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 25/07/2019 08:00:00
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