ZAMABIA COPPER - JOINT PRESS ANNOUNCEMENT

ACQUISITION BY ZCI AND PARTNERS OF THE KONKOLA, NKANA AND NCHANGA DIVISIONS
OF ZCCM AND ITS NAMPUNDWE MINE

THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA (GRZ), ZAMBIA CONSOLIDATED COPPER
MINES LIMITED (ZCCM) AND ZAMBIA COPPER INVESTMENTS LIMITED (ZCI) (THE COMPANY
THROUGH WHICH ANGLO AMERICAN CORPORATION OF SOUTH AFRICA LIMITED (AAC) HOLDS
ITS INTEREST IN ZCCM) ANNOUNCE THAT THEY HAVE CONCLUDED A MEMORANDUM OF
UNDERSTANDING (MOU) REGARDING THE ACQUISITION BY ZCI AND PARTNERS OF AN 80%
INTEREST IN A NEW COMPANY WHICH WILL ACQUIRE THE ASSETS OF THE KONKOLA
(INCLUDING KONKOLA DEEP), NKANA AND NCHANGA DIVISIONS OF ZCCM AND ITS NAMPUNDWE
MINE.

THE MOU SPECIFIES A NUMBER OF PRE-CONDITIONS THAT MUST BE SATISFIED PRIOR TO
THE SIGNING OF LEGALLY BINDING AGREEMENTS. THESE INCLUDE:

* THE FORMATION BY ZCI OF A CONSORTIUM OF PARTNERS INCLUDING A SUBSTANTIAL
MINING PARTNER TO JOIN IT IN THE INVESTMENT;
* THE RAISING OF NON-RECOURSE THIRD PARTY FINANCE;

* CONFIRMATION OF ZCI'S DUE DILIGENCE ON THE STATE OF THE ASSETS;

* THE CONCLUSION OF NEGOTIATIONS ON ALL OUTSTANDING ISSUES ON A BASIS
ACCEPTABLE TO GRZ, ZCCM AND ZCI; AND

* FUNDING OF DEFINED RETRENCHMENTS BY ZCCM USING FUNDS SOURCED BY GRZ FROM THE
MULTILATERAL DONOR COMMUNITY.

THE AGREED PURCHASE CONSIDERATION IS US$90 MILLION TO BE SETTLED BY WAY OF A
CASH PAYMENT. IN ADDITION, ZCCM WILL HAVE A 5% FREE AND A 15% REPAYABLE CARRIED
INTEREST IN THE NEW COMPANY. SUBJECT TO CONFIRMATION OF EVALUATIONS, THE NEW
COMPANY EXPECTS TO COMMIT CAPITAL EXPENDITURE OF US$300 MILLION

DURING THE FIRST THREE YEARS AND, SUBJECT TO RAISING FURTHER THIRD PARTY
PROJECT FINANCE ON SATISFACTORY TERMS, TO IMPLEMENTING AS SOON AS POSSIBLE THE
KONKOLA DEEP PROJECT AT A CAPITAL COST OF APPROXIMATELY US$800 MILLION.
IN A PARALLEL TRANSACTION, GRZ HAS AGREED TO PURCHASE ZCI'S SHAREHOLDING IN
ZCCM.

GRZ, ZCCM AND ZCI ARE COMMITTED TO ACHIEVING SATISFACTION OF THE PRE-CONDITIONS
AND COMPLETING NEGOTIATION ON ALL OUTSTANDING ISSUES AS QUICKLY AS POSSIBLE,
WITH THE OBJECT OF ACHIEVING CLOSURE OF THE TRANSACTION NOT LATER THAN 31 MARCH
1999. MEANWHILE ZCI, WITH ASSISTANCE FROM AAC, WILL IMMEDIATELY COMMENCE
PLACING EXPERIENCED PERSONNEL ON THE COPPERBELT TO MONITOR OPERATIONS, GATHER
INFORMATION AND PROVIDE ADVICE TO MINE MANAGEMENT WHEN REQUIRED IN ORDER TO
FACILITATE THE SMOOTH TRANSFER OF THE ASSETS.

ZCI HAS, WITH IMMEDIATE EFFECT, RELINQUISHED ITS EXCLUSIVE RIGHT, HELD  UNDER A
MEMORANDUM OF UNDERSTANDING ENTERED INTO IN FEBRUARY 1997, TO THE MUFULIRA
SMELTER AND REFINERY. THIS WILL FACILITATE THE SALE OF MUFULIRA AS AN
INTEGRATED PACKAGE.

THESE TRANSACTIONS ARE SUBJECT TO OBTAINING ALL NECESSARY REGULATORY AND
SHAREHOLDER APPROVALS.

MR SHALAULWA L SHIMUKOWA, CHAIRMAN OF ZCCM, SAID: "WE WELCOME THIS POSITIVE
STEP TOWARDS THE CONCLUSION OF THE PRIVATISATION OF ZCCM. THE TRANSACTION
AUGURS WELL FOR THE PROSPERITY AND ECONOMIC DEVELOPMENT OF THE COUNTRY AND
ESPECIALLY THE COPPERBELT REGION. IT USHERS IN THE NEW ROLE OF ZCCM AS AN
INVESTMENT HOLDING COMPANY."

COMMENTING ON THE AGREEMENT, THE CHAIRMAN OF THE GRZ/ZCCM PRIVATISATION
NEGOTIATING TEAM, MR FRANCIS H KAUNDA, SAID: "THESE ASSETS REPRESENT THE
REMAINING CORE ASSETS OF ZCCM'S PRODUCTION CAPACITY AND, TOGETHER WITH THE
NEGOTIATIONS FOR THE SALE OF ZCCM'S MUFULIRA DIVISION WHICH ARE ALREADY
UNDERWAY WITH ANOTHER MINING COMPANY, WILL COMPLETE THE COMPLEX PRIVATISATION
OF ZCCM."

"ZCI IS LOOKING FORWARD TO WORKING WITH THE GOVERNMENT, THE MANAGEMENT OF ZCCM,
THE MINEWORKERS UNION OF ZAMBIA AND WITH THE MULTILATERAL DONOR COMMUNITY TO
ACHIEVE THE SUCCESSFUL CONCLUSION OF THE PRIVATISATION PROCESS AND TO

REVITALISE THE MINING INDUSTRY," SAID JACK HOLMES, CHAIRMAN OF ZCI AND A
DIRECTOR OF ANGLO AMERICAN CORPORATION.
ENDS.
22 JANUARY 1999
ENQUIRIES:

MR FRANCIS KAUNDA, CHAIRMAN OF THE GRZ/ZCCM PRIVATISATION NEGOTIATING TEAM,
+260 1 22 0450

MRS GLEN FINNEGAN, ZCI / ANGLO AMERICAN CORPORATION, +27 11 638 3217