Interim Results

Anglo American PLC
04 August 2006

PART 1

News Release

04 August 2006


  Anglo American announces record underlying earnings of $2.5 billion, up 47%,
       additional $5 billion capital return and update on Strategic Review

•   Operating profit(1) increased to $4.6 billion, up 52%
•   Record underlying earnings(2) of $2.5 billion, up 47%, impacted by higher 
    tax charges
•   Cash generation (EBITDA(3)) of $5.9 billion, up 37%
•   Strong performances from mining businesses
•   Further $4 billion buyback announced
•   $1 billion special dividend (67 cents per share)
•   Interim dividend increased from 28 to 33 cents per share, up 18%.

•   Significant progress made in meeting our strategic targets:

      o  AngloGold Ashanti disposal underway, initial $1 billion realised
      o  Plans to demerge Mondi being developed
      o  In depth review of Tarmac completed; restructuring on track
      o  Disposal of holding in Highveld Steel announced
      o  Tongaat-Hulett: Hulett Aluminium unbundling is progressing

Leading to:

•   Simplified Group structure
•   Focused core mining portfolio
•   World class portfolio of assets
•   Strong growth prospects underpinned by project pipeline


HIGHLIGHTS FOR THE SIX MONTHS ENDED                                 6 months          6 months           %
30 JUNE 2006                                                           ended             ended
                                                                30 June 2006      30 June 2005      change
Group revenue including associates(4)                                 18,825            17,145        9.8%
Operating profit including associates before special items and         4,563             2,993       52.5%
remeasurements(1)
Profit for the period attributable to equity shareholders              2,943             1,838       60.1%
Underlying earnings for the period(2)                                  2,502             1,699       47.3%
EBITDA(3)                                                              5,856             4,267       37.2%
Net cash inflows from operating activities                             3,289             2,931       12.2%
Earnings per share (US$):
      Basic earnings per share                                          2.00              1.27       57.5%
      Underlying earnings per share                                     1.70              1.18       44.1%
Interim dividend (US cents per share)
Recommended interim dividend                                              33                28         18%
Recommended special dividend                                              67                 -           -
Total dividends                                                          100                28        257%

(1) Operating profit includes share of associates' operating profit (before share of associates' tax and finance
charges) and is before special items and remeasurements, unless otherwise stated. See note 3 to the financial
information. For definition of special items and remeasurements see note 6 to the financial information.
(2) See note 9 to the financial information for basis of calculation of underlying earnings.
(3) EBITDA is operating profit before special items and remeasurements, depreciation and amortisation of
subsidiaries and joint ventures and share of EBITDA of associates. EBITDA is reconciled to cash inflows from
operations and to total profit from operations and associates in note 13 to the financial information.
(4) Includes the Group's share of associates' turnover of $2,650 million (2005: $2,635 million). See note 3 to the
financial information.

Tony Trahar, Chief Executive, said:

"This has been a very successful six months, both in terms of the performance of
Anglo American and the implementation of our strategy.

Anglo American has again produced record results - with underlying earnings up
47% to $2.5 billion. While these were achieved against a backdrop of a
favourable trading environment they are also testament to the strong underlying
performance of our divisions, especially the mining businesses. There have been
operating challenges, such as the industry-wide cost pressures in some
operations, and we have continued with focused cost containment and efficiency
programmes to mitigate these pressures.

At the same time, we have taken significant strides in delivering our strategy,
simplifying the Group structure and focusing on our core mining portfolio. We
have reduced our stake in AngloGold Ashanti, Tarmac's restructuring is on track,
the disposal process for Highveld Steel has been announced and plans are being
developed to demerge Mondi. Further, we are announcing today the return of $5
billion to shareholders.

Looking ahead, we are confident that Anglo American will deliver significant
shareholder value as a focused mining Group. Anglo American's strong growth
prospects are underpinned by one of the industry's strongest organic project
pipelines and by our unique portfolio of world class assets."

Financial results

Anglo American's first half underlying earnings were a record $2.5 billion as
continued strong metal prices and improved volumes reflected the favourable
trading environment for the Group's key commodities. Operating profit of $4.6
billion was 52% higher over the corresponding period last year, with EBITDA up
37% at a record $5.9 billion. Strong contributions came from Base Metals and
Platinum as well as a significant increase in contribution from AngloGold
Ashanti. Kumba's results also showed a significant increase. Coal recorded
underlying earnings in line with the prior year, while Paper and Packaging and
Industrial Minerals recorded lower contributions owing to continuing difficult
market conditions. Underlying earnings at De Beers were below the prior year,
mainly reflecting lower preference share income due to the June 2005
redemptions, and higher minorities as a result of the Ponahalo transaction which
completed in April 2006.

Production volumes were up for platinum, zinc and nickel, coal operations in
Colombia and South Africa and industrial minerals. However, the Group
encountered challenging operating conditions at some of its copper and coal
mines.

The mining industry globally is facing ongoing cost pressure throughout the
supply chain and, against this background, the Group achieved cost savings of
$261 million in synergies, efficiencies and procurement.

Interim dividend

The interim dividend has been increased 18% to $33 cents per share, in line with
our progressive dividend policy. Reflecting the continued strong operating cash
flows, as well as the cash generation from non-core disposals, it has been
decided to pay a special dividend of $67 cents per share, which will be paid
with the interim dividend.

Capital structure and increased return to shareholders

Our net debt position has reduced by $2.3 billion since year end and at 30 June
amounted to $2.7 billion. This represents a significant decline in our gearing
and underlines the strong operating cash flows as well as proceeds from
disposals, deconsolidation of AngloGold Ashanti debt and conversion of $0.8
billion of our convertible debt. The $2 billion share buyback - which commenced
in March this year - has almost been completed, with around $1.83 billion of
shares having been repurchased as at 4 August 2006. Given the continued strong
underlying conditions in our business it has been decided to increase the
buyback by a further $4 billion for this year.

Strategy update

Considerable progress has been made in delivering on our strategy of focusing on
our core mining portfolio and simplifying the Group structure.

In line with our stated intention of reducing and ultimately exiting our 50.9%
holding in AngloGold Ashanti, we announced in April a $1 billion placement of
shares, reducing our holding to 41.8%. We will continue to examine options to
effect an orderly exit of our stake in the company.

Plans are being developed for the separation of our paper and packaging
business, Mondi, through a demerger and discussions with regulatory authorities
are underway. Mondi will be led by its current management team under chief
executive David Hathorn.

In July, we announced the sale of Anglo American's 79% stake in Highveld Steel
to Evraz, an international steel producer, and Credit Suisse, for a total
consideration of $678 million. Following the disposal of the initial 49.8%, for
which Anglo American received $412 million, Evraz has an option to acquire Anglo
American's remaining 29.2% stake in Highveld Steel for $266 million once
regulatory approvals are received. This amount will be reduced by any dividends
paid by Highveld Steel prior to Anglo American selling its remaining shares. The
deal represents a substantial foreign direct investment in South Africa.

Regarding the partial unbundling of Kumba's iron ore assets, two separate listed
entities, Kumba Iron Ore and Exxaro, are scheduled to be established in the
fourth quarter of 2006. Anglo American will own 65% of Kumba Iron Ore and 19% of
Exxaro.

The Tongaat-Hulett board, in consultation with Anglo American, has decided to
pursue the separate listing of Hulett Aluminium and to introduce black economic
empowerment into both businesses. This should result in further value unlock for
Tongaat-Hulett shareholders.

Regarding our industrial minerals business, Tarmac, we have completed an
extensive review and have concluded that this core extractive business should be
retained as a well established, cash generative, less cyclical component of the
Group. The management team has been strengthened over the past two years and the
business has been restructured on focused product lines. The review has also
resulted in the decision to dispose of a number of non-core businesses (in Hong
Kong, India, Germany and the UK). Together with the operational, commercial and
organisational restructuring carried out over the past two years, Tarmac is well
placed to drive further value improvement and to grow its business. It has
entered two new countries, Romania and Turkey, this year, enhancing its exposure
to the growth markets in Eastern Europe and the Black Sea Basin.

Strong project pipeline driving growth

Anglo American's $6 billion project portfolio is developing well and further
good progress has been made during the past six months. In addition to its
existing suite of approved projects, a number of attractive new developments
were approved during the first half of 2006. The largest of these, approved in
February, was the $692 million expansion at PPRust to bring on an additional
230,000 ounces of platinum a year. A number of other major platinum developments
are also currently under way against a background of robust long-term demand for
platinum group metals. The $316 million Paardekraal platinum project is in the
final stages of approval.

In Australia, development is continuing at Anglo Coal's $835 million Dawson
project, which is planned to reach full production in 2007, with around 12.7
million tonnes per annum (Mtpa) destined for the international coal market. Work
also started early this year on the $516 million Lake Lindsay greenfield project
at German Creek, with additional annual production of 3.7 Mt of metallurgical
coal and 0.3 Mt of thermal coal, most of it for Pacific Rim markets. In
Colombia, the first phase of the expansion to 28 Mtpa at Cerrejon Coal is
expected to have reached completion by year end; a second phase, to raise coal
output still further to 32 Mtpa, is under way. In South Africa, the Mafube mine
development is progressing following the granting of the prospecting right.
Overall, Anglo Coal plans to lift its metallurgical coal production by some 50%
to around 16 Mtpa by the end of 2008.

Anglo Base Metals is undertaking feasibility and de-bottlenecking studies to
increase production at its two major Chilean copper operations, while a decision
on whether to proceed with the $1 billion, 40,000 tpa nickel project at Barro
Alto in Brazil is expected in the final quarter of this year.

The main capital expenditure focus for Anglo Ferrous Metals remains Kumba's $559
million development at Sishen in South Africa to add another 10 Mtpa of iron
ore. A further $195 million was approved recently to extend this expansion to
Sishen by an additional 3 Mtpa of iron ore, to bring the total expansion to 13
Mtpa. A final decision on the Sishen South project, with a full production
capacity of around 9 Mtpa, will be aligned with the synchronised expansion of
the rail and port facilities.

De Beers' Canadian Snap Lake and Victor projects, with a combined capital
expenditure value of $1.8 billion, remain on track to open in the final quarters
of 2007 and 2008 respectively. Project costs have increased, principally owing
to higher energy and material costs, technological challenges and the impact of
the early closure of the winter road to the sites. In Angola, prospecting
activities are fully under way through a joint venture with the State-owned
diamond company, Endiama. Subject to the necessary government regulatory
approvals, two projects in South Africa have been given the green light: the
re-opening of the long-dormant Voorspoed mine and the South African Sea Areas
marine mining project for a total investment of $284 million.

Finally, Anglo American has a number of advanced-technology joint ventures with
international partners, including the recent signing of a Clean Coal Energy
Alliance with Shell to develop coal-to-gas-to-liquids projects, potentially
starting with co-operation at Monash Energy in Australia; and the US-based
FutureGen Industrial Alliance, a public-private partnership that is developing
the world's most advanced power production project using clean-coal-technology.
In China, the Group is investigating a large coal-to-chemicals project at Xiwan.

Safety and sustainable development

Although the Group's Lost Time Injury Frequency Rate increased slightly in the
first half, there was a significant reduction in fatalities. We continue to
examine all available means to completely eliminate any loss of life across our
global operations. During 2006, Anglo American continued to receive recognition
from external bodies for the reporting of our non-financial performance and for
elements of our work with communities. The period also saw important progress
with the NEPAD Investment Climate Facility and the Extractive Industries
Transparency Initiative.

Outlook

The outlook for most of our metals and minerals remains positive as growth in
the OECD and China continues to underpin demand. While rising interest rates may
moderate global growth somewhat from current robust levels, the improving
economic outlook for Japan and Euroland and the continued strength in Asian
economies, notably India and China, remains supportive.

The supply side fundamentals for many metals have been impacted by unforeseen
disruptions and slow project development with metal inventories in general
remaining low or falling. Our project pipeline will continue to underpin the
Group's growth prospects and ensure material increases in production across our
businesses.

If metal prices remain at, or close to, current levels the Group will enjoy a
strong second half.

For further information:

Investor Relations                         Media Relations
Charles Gordon                             Pamela Bell
Tel: [phone]                      Tel: [phone]

Anne Dunn                                  Daniel Ngwepe
Tel: [phone]                       Tel: [phone]

                                           Fiona Wrench
                                           Tel: [phone]

Webcast of presentation:

A live webcast of the annual results presentation starting at 10.00am UK time on
4 August can be accessed through the Anglo American website at
www.angloamerican.co.uk.

Pictures:

High resolution images can be downloaded by the media at www.vismedia.co.uk

Notes to Editors:

Anglo American plc is one of the world's largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in platinum, gold and diamonds, with significant interests in coal, base
and ferrous metals, industrial minerals and paper and packaging. The Group is
geographically diverse, with operations in Africa, Europe, South and North
America, Australia and Asia.

Note: Throughout this press release '$' denotes United States dollars and '
cents' refers to United States cents; operating profit includes associates'
operating profit and is before special items and remeasurements unless otherwise
stated; special items and remeasurements are defined in note 6 and underlying
earnings are calculated as set out in note 9 to the financial information.
EBITDA is operating profit before special items and remeasurements, depreciation
and amortisation of subsidiaries and joint ventures and share of EBITDA of
associates. EBITDA is reconciled to cash inflows from operations and to total
profit from operations and associates in note 13 to the financial information.

Financial review of Group results

Underlying earnings per share for the half year increased to $1.70 per share, up
44% over the first six months of 2005. Underlying earnings totalled $2,502
million, with strong contributions from Base Metals and Platinum as well as a
significant increase in contribution from AngloGold Ashanti. Coal recorded
underlying earnings in line with the corresponding period last year. Paper and
Packaging and Industrial Minerals recorded lower contributions owing to
continuing difficult market conditions. Underlying earnings at De Beers were
below prior year levels mainly reflecting lower preference share income due to
the June 2005 redemptions and higher minorities as a result of the Ponahalo
transaction which completed in April 2006. Kumba's results showed a significant
increase over the same period in the prior year, however Ferrous Metals and
Industries as a whole recorded a lower contribution mainly owing to lower
manganese and vanadium prices as well as the impact of the disposal in mid-2005
of Boart Longyear and Samancor Chrome.


                                                                         6 months ended     6 months ended
                                                                           30 June 2006       30 June 2005
Underlying earnings

$ million
Profit for the financial period attributable to equity                            2,943              1,838
shareholders
Operating special items including associates                                        482                 55
Operating remeasurements including associates                                       462                 18
Net profit on disposals including associates                                    (1,035)               (67)
Financing remeasurements:
     Fair value loss/(gain) on convertible option                                    31               (32)
     Exchange gain on De Beers preference shares                                   (44)               (91)
     Unrealised (gains)/losses on non-hedge derivatives including                  (20)                 10
     associates
Tax on special items and remeasurements including associates                      (134)               (22)
Related minority interests on special items and remeasurements                    (183)               (10)
Underlying earnings                                                               2,502              1,699
Underlying earnings per share ($)                                                  1.70               1.18

Profit for the period after special items and remeasurements increased by 60% to
$2,943 million compared with $1,838 million in the first half of 2005. This
increase relates mainly to strong operational results as discussed above. There
was a significant increase in net profits on disposal, $968 million higher than
the same period in the prior year, mainly as a result of the Group's disposal of
19.7 million ordinary shares in AngloGold Ashanti and the Group's
non-participation in the issue of ordinary shares by AngloGold Ashanti ($896
million net profit on disposal). This was largely offset by operating special
item losses of $482 million, including the impairment and restructuring of
certain Tarmac assets ($278 million), impairment and closure costs relating to
the Dartbrook coal mine in Australia ($122 million), impairment mainly of
certain downstream converting Packaging assets at Paper and Packaging ($72
million) and unrealised losses on non-hedge derivatives ($462 million), recorded
principally at AngloGold Ashanti.


Summary income statement                                                         6 months              6 months
                                                                                  30 June               30 June
$ million                                                                            2006                  2005
Operating profit before special items and remeasurements                            4,006                 2,426
Special items                                                                       (462)                  (55)
Operating remeasurements                                                            (392)                  (18)
Group operating profit before associates                                            3,152                 2,353
Net profit/(loss) on disposals                                                        927                   (1)
Net income from associates (1)                                                        369                   407
Profit before finance costs                                                         4,448                 2,759
Net finance costs before remeasurements                                              (88)                 (224)
Financing remeasurements                                                               13                   122
Profit before tax                                                                   4,373                 2,657
Tax                                                                               (1,202)                 (526)
Profit after tax                                                                    3,171                 2,131
Minority interests                                                                  (228)                 (293)
Profit for the financial period attributable to equity holders                      2,943                 1,838
Earnings per share ($)                                                               2.00                  1.27

Group operating profit including associates before special items(1)                 4,563                 2,993


(1) Operating profit from associates before special items and                         557                   567
remeasurements
Operating special items and remeasurements (2)                                       (90)                     -
Net profit on disposals (2)                                                           108                    68
Financing  remeasurements (2)                                                          20                   (9)
Net finance costs (before remeasurements)                                            (50)                  (31)
 Income tax expense (after special items and remeasurements)                        (166)                 (185)
 Underlying minority interest (after special items and                               (10)                   (3)
remeasurements)
Net income from associates                                                            369                   407

(2) See note 6 to the financial information.

The Group's results are influenced by a variety of currencies owing to the
geographic diversity of the Group. The South African rand on average weakened
slightly against the US dollar compared with the prior period, with an average
exchange rate of R6.31 compared with R6.21 in the first half of 2005. Currency
movements negatively impacted underlying earnings by $30 million. Operating
results were positively impacted by weaker average rates for the rand and
Australian dollar although these were offset by the stronger Chilean peso and
Brazilian real and a weaker euro. There was a significant positive impact of
increased prices amounting to $1,788 million.

Special items and remeasurement charges

                                   30 June 2006                                30 June 2005

                         Excluding                                     Excluding
                        associates    Associates         Total        associates   Associates        Total
                                                           
$ million
Operating special            (462)          (20)         (482)              (55)            -         (55)
items
Operating                    (392)          (70)         (462)              (18)            -         (18)
remeasurements
Operating special
items and
remeasurements               (854)          (90)         (944)              (73)            -         (73)


Operating special items and remeasurements, including associates, amounted to
$944 million, with $462 million operating special charges in respect of
impairments, restructurings and mine and operation closures including a $278
million combined impairment and restructuring charge relating to certain
non-core assets to be sold and other assets to be restructured at Industrial
Minerals following the conclusion of the strategic review, an impairment and
related closure costs of $122 million resulting from the phased reduction of
operations at AngloCoal Australia's Dartbrook mine, and a $72 million impairment
mainly of certain downstream converting Packaging assets as a result of
continuing poor market conditions.

Operating remeasurements, including associates, of $462 million includes $443
million of unrealised losses on non-hedge commodity derivatives at AngloGold
Ashanti (2005: $18 million). The loss in the current year relates to the
revaluation of non-hedge derivatives resulting from changes in the prevailing
spot gold price, exchange rates and interest rates compared with the equivalent
period in 2005.

Net profit on sale of operations, including associates, amounted to $1,035
million. This included the profit on sale of 19.7 million ordinary shares in
AngloGold Ashanti which resulted in $737 million profit on disposal as well as
$159 million profit on the deemed disposal of AngloGold Ashanti arising from the
non-participation in the issue of ordinary shares by AngloGold Ashanti. The
Group also realised a $105 million profit on the sale of an indirect 26% equity
interest in De Beers Consolidated Mines Limited to Ponahalo Holdings
(Proprietary) Limited.

Financing remeasurements, including associates, are made up of a $31 million
fair value loss on the AngloGold Ashanti convertible bond option, unrealised
gains of $20 million on non-hedge derivatives and a $44 million foreign exchange
gain on De Beers dollar preference shares held by a rand denominated entity.

In line with IFRIC guidance, the option component of the AngloGold Ashanti
convertible bond is fair valued at each reporting period and held as a
liability. Changes in fair value of the liability are taken to the income
statement.

The US dollar preference shares held by De Beers (a rand functional currency
entity) are classified as 'financial asset investments' and are retranslated at
each period end. The resulting rand:US dollar foreign exchange gains and losses
are reported through the income statement as a remeasurement charge.

Net finance costs

Net finance costs, excluding financing remeasurement gains of $13 million (2005:
gain of $122 million), decreased from $224 million in the corresponding period
in 2005 to $88 million. The decrease reflects lower interest costs due to the
reduction in net debt.

Taxation


                              30 June 2006                                      30 June 2005
$ million         Before special   Associates'    Including        Before special Associates' tax   Including
                       items and       tax and   associates             items and    and minority  associates
                  remeasurements      minority                     remeasurements       interests
                                     interests

Profit before              4,231           194        4,425                 2,550             188       2,738
tax
Tax                      (1,318)         (184)      (1,502)                 (548)           (185)       (733)
Profit for                 2,913            10        2,923                 2,002               3       2,005
financial
period
Effective tax                                         33.9%                                             26.8%
rate

IAS 1 requires income from associates to be presented net of tax on the face of
the income statement. Associates' tax is therefore not included within the
Group's total tax charge on the face of the income statement. Associates' tax
and minority interests before special items and remeasurements included within 
'Net income from associates' for the period ended 30 June 2006 is $194 million
(2005: $188 million).

The effective rate of taxation including share of associates' tax and minority
interests before special items and remeasurements was 33.9%. This was an
increase from the effective rate on the same basis of 26.8% in the six months
ended 30 June 2005. The June 2005 tax rate benefited from the one-off impact of
a reduction in the statutory tax rates in South Africa and Ghana. Without this
benefit the effective tax rate would have been 31.7%. The June 2006 tax rate
reflects the relative impact of the statutory tax rates, on a fully distributed
basis where appropriate, of the countries in which the Group's operations are
based. In future periods it is expected that the effective tax rate, including
associates' tax, will remain above the UK statutory tax rate of 30%.

Balance sheet

Total shareholders' equity was $23,523 million compared with $23,621 million as
at 31 December 2005.

Net debt, excluding hedges but including balances that have been reclassified as
held for sale ($286 million) was $2,666 million, a decrease of $2,327 million
from 31 December 2005. The reduction was principally due to reduction of debt
using cash flows from operations and disposals, deconsolidation of AngloGold
Ashanti debt and conversion of $0.8 billion of our convertible debt, although
this was partially offset by $1.6 billion of share buyback as at 30 June 2006.

Net debt at 30 June 2006 comprised $5,357 million of debt, offset by $2,691
million of cash, cash equivalents and current financial asset investments. Net
debt to total capital(1) as at 30 June 2006 was 11.0%, compared with 17.0% at 31
December 2005.

Cash flow

Net cash inflows from operating activities was $3,289 million compared with
$2,931 million in the first half of 2005. EBITDA was $5,856 million, a
substantial increase of 37% from $4,267 million in the first half of 2005.
Depreciation and amortisation, including associates, decreased by $36 million to
$1,163 million.

Acquisition expenditure accounted for an outflow of $230 million compared with
$300 million in the first half of 2005. This included $77 million in respect of
the Group's investment in AltaSteel (Ferrous Metals and Industries) and $85
million in respect of the Group's investment in Akrosil and Stambolijski (Paper
and Packaging).

Proceeds from disposals totalled $952 million, with net proceeds on the sale of
19.7 million ordinary shares of AngloGold Ashanti of $839 million.

Repayment of loans and capital from associates amounted to $394 million.
Purchases of tangible fixed assets amounted to $1,466 million, an increase of
$33 million. Increased capital expenditure by Platinum, Coal, Ferrous Metals and
Industries and Base Metals was partially offset by a reduction in capital
expenditure at Paper and Packaging and Industrial Minerals, as well as the
impact of including AngloGold Ashanti's capital expenditure up to 20 April 2006,
after which it is accounted for as an associate.

Dividends

An interim dividend of 33 US cents per share, plus a special dividend of 67
cents per share, to be paid together on 21 September 2006, have been declared.

(1) Net debt to total capital is calculated as net debt divided by total capital
less investments in associates. Total capital is net assets excluding net debt.

Operations Review

In the operations review on the following pages, operating profit includes
associates' operating profit and is before special items and remeasurements
unless otherwise stated. Capital expenditure relates to cash expenditure on
fixed assets.

BASE METALS

$ million                                                                     6 months       6 months
                                                                               30 June        30 June
                                                                                  2006           2005
Operating profit                                                                 1,854            721
           Copper                                                                1,536            570
           Nickel, niobium, mineral sands                                          141            141
           Zinc                                                                    208             29
           Other                                                                  (31)           (19)

EBITDA                                                                           2,022            875
Net operating assets                                                             4,853          4,676
Capital expenditure                                                                104            100
Share of Group operating profit (%)                                                41%            24%
Share of Group net operating assets (%)                                            18%            13%

Anglo Base achieved record operating profits on the back of increased prices and
record production of nickel and zinc, despite slightly lower copper production.

Base metal markets tightened further and metal inventories have fallen following
improving demand and mine supply having been constrained by unforeseen
disruptions, particularly in the case of copper. The acceleration of fund flows
into commodity markets together with these strong market fundamentals resulted
in a surge in commodity prices from January to May.

All operations suffered increasing pressure on costs, particularly in the
non-controllable category, from a combination of input costs, which are
themselves commodity price linked, and the tightness in the entire mining
industry supply chain. Producers of base metal concentrates also saw a material
increase in realised treatment charges owing to smelter deductions and price
participation. All operations, with the exception of Lisheen and those in
southern Africa, suffered from local currency strength.

Copper

Los Bronces produced 103,715 tonnes during the first half (2005: 112,810
tonnes). Throughput was impacted by unforeseen ore hardness and water ingress
into the open pit that led to an amendment in mine sequencing, thereby
generating lower grade ore to the mill. Collahuasi produced a lower than
expected attributable 90,900 tonnes (2005: 92,994 tonnes) owing to excessive
rains in the first quarter and further downtime in the crushing and conveying
circuits. By the end of June a recovery and stabilisation programme had been
largely completed. Production at Mantoverde was slightly down on 2005 at 29,184
tonnes, while at Mantos Blancos it rose 4% to 42,527 tonnes with higher dump
leach production offsetting slightly lower production elsewhere. At El Soldado,
output declined by 14% to 31,868 tonnes as a result of the temporary mining of
lower grade sulphide ore. Chagres successfully ramped up to full design capacity
following the completion of the expansion project.

The $80 million El Soldado life extension project remains on time and on budget.
The Los Bronces expansion feasibility study, which is examining a doubling of
sulphide ore treatment rate, is under way, as are debottlenecking studies to
maximise the potential sulphide treatment rate at Collahuasi.

Nickel, niobium and mineral sands

Codemin lifted output of nickel in ferro-nickel by 14% to 4,871 tonnes as the
operation benefited from higher grade ore from the Barro Alto mine. Production
at Loma de Niquel increased by 6% to 8,830 tonnes of nickel in ferro-nickel,
with slightly lower grades being offset by higher mineral throughput rates.
Following the commissioning of the scalping project at Catalao, niobium
production has increased by 16% to 2,245 tonnes. At Namakwa, zircon production
was marginally higher at 64,336 tonnes, while output of slag and pig iron
declined marginally to 81,242 tonnes and 52,665 tonnes respectively.

The Barro Alto feasibility study (40,000 tonnes per annum nickel in
ferro-nickel) is nearing completion and a decision as to whether to proceed will
be taken before year end.

Zinc

The Skorpion mine, now operating at full capacity, boosted zinc output by 33% to
74,986 tonnes of zinc in the wake of improvements in tonnes mined, ore milled,
and grades and refinery efficiencies. Lisheen accounted for a slightly lower
79,645 tonnes of zinc, owing primarily to lower ore grades, while lead output
improved to 12,010 tonnes. The underground paste fill system is now performing
reliably and the development drive to access the additional satellite body Bog
Zone reserves has progressed well and the first ore has been produced from this
area. The ramp-up of tonnage from the Black Mountain Deeps operation has been
slower than anticipated, adversely impacting tonnages, as well as metallurgical
recoveries owing to the mix of ore and grades fed to the plant. Zinc production
was 15,148 tonnes (2005: 16,184 tonnes).

PLATINUM


$ million                                                                          6 months        6 months
                                                                                    30 June         30 June
                                                                                       2006            2005
Operating profit                                                                        934             410
EBITDA                                                                                1,171             610
Net operating assets                                                                  6,515           6,571
Capital expenditure                                                                     276             243
Share of Group operating profit (%)                                                     20%             14%
Share of Group net operating assets (%)                                                 24%             19%

Anglo Platinum's operating profit for the first six months of 2006 rose by 128%
to a record $934 million in comparison with the same period in 2005. Factors
contributing to the increase were mainly higher US dollar prices realised on
metals sold and increased sales volumes.

Refined platinum production for the first half of 2006 rose by 6% to 1,344,900
ounces. The increase was primarily due to higher mining production and the
release of metal from smelter pipeline stocks. Equivalent refined production
from the mines rose by 5% to 1,257,400 ounces. The improvement was mainly
attributable to improved production volumes at the Kroondal, Amandelbult,
Rustenburg and Bafokeng-Rasimone (BRPM) operations. This was partly offset,
however, by lower output from Union Section and the Western Limb Tailings
retreatment plant.

The cash operating cost per equivalent refined platinum ounce in rand terms
increased by 11%. One-off additional ground support work during 2006 at Union,
equipping and development programmes to create a sustainable base for future
production at Amandelbult and Rustenburg, wage settlements in excess of
inflation and the effect of lower grades as a consequence of a higher percentage
of UG2 ore mined were the principal reasons for the above-inflation unit cost
increase. Cost savings of some $16 million, arising from specific procurement
projects and other cost savings initiatives, were realised during the first six
months.

The Paardekraal 2 shaft project is in the final stages of the approval process
and an announcement is expected shortly. The shaft will access deeper Merensky
reserves at a rate of 100,000 tonnes per month, at a capital cost of $316
million.

Projects that continue to increase production include Modikwa, BRPM, Kroondal
and for the first time in 2006, the Marikana venture. The Amandelbult 1 shaft
optimisation project was completed on time during the period and the Amandelbult
75,000 tpm UG2 plant is fully utilised and performing well. The deepening of the
BRPM and sinking of the Lebowa Merensky declines are well advanced and the
PPRust North project has commenced. The Mototolo Joint Venture is on track, with
commissioning of the concentrator planned for the fourth quarter of 2006.

Demand for platinum is strong and supportive of firm platinum prices. Recent
experience suggests that resilience of jewellery consumption particularly in the
Chinese market continues even at prices over $1,100 per ounce, adding confidence
to our long term view. The growth in demand for platinum for diesel autocatalyst
systems in Europe is strong. Tightening diesel emission legislation and its
early adoption as well as the growing popularity of diesel engine powered
vehicles support this. Industrial demand remains firm, particularly in the glass
and petroleum sectors. Although platinum prices have retreated from record highs
of $1,336 per ounce as investment positions were liquidated, this physical
demand has stemmed the decline and prices are supported above $1,100 per ounce.

Anglo Platinum remains confident of the robustness of demand for platinum and is
continuing with its expansion programme. The rate of expansion is reviewed on an
ongoing basis and currently supports the company's stated average compound
growth target of 5% per annum. For 2006 as a whole, refined platinum production
is expected to be between 2.7 and 2.8 million ounces, with sales volumes
expected to match production in the second half of the year. The outlook for
long term metal prices remains positive and consequently studies evaluating the
ramping up of various projects are currently being conducted. The most
significant variables affecting operating profit in the second six months of
2006 will be the rand: dollar exchange rate and metal prices.

FERROUS METALS AND INDUSTRIES

$ million                                                                       6 months       6 months
                                                                                 30 June        30 June
                                                                                    2006           2005
Operating profit                                                                     644            791
              Kumba                                                                  378            246
              Highveld Steel                                                          95            261
              Scaw Metals                                                             74             58
              Samancor Group                                                          26            121
              Tongaat-Hulett                                                          78             56
              Boart Longyear                                                           -             55
              Other                                                                  (7)            (6)
EBITDA                                                                               783            961
Net operating assets                                                               2,488          4,140
Capital expenditure                                                                  222            133
Share of Group operating profit (%)                                                  14%            26%
Share of Group net operating assets (%)                                               9%            12%

Ferrous Metals and Industries' operating profit declined to $644 million (2005:
$791 million), mainly as a result of lower vanadium and manganese prices,
partially offset by higher iron ore prices. In the first half of 2006, there was
also no contribution from Boart Longyear and Samancor Chrome, both disposed of
in mid-2005, which together had contributed $71 million in the first six months
of 2005.

Operating performance

Kumba achieved an operating profit of $378 million. Following the 71.5% annual
iron ore price increase achieved in April 2005, a further annual increase of 19%
was achieved with effect from April 2006. During the reporting period, iron ore
export volumes were higher, stemming from improvements in export-channel
capacity together with good rail and port operational performance. The $559
million 10 Mtpa Sishen Expansion Project is under construction, with production
scheduled to commence in 2007 and full ramp up to 10 Mtpa by the beginning of
2009 in line with the Sishen-Saldanha export-channel expansions. The additional
$195 million 3 Mtpa extension to the Sishen Expansion Project is expected to
reach full production in the last quarter of 2009.

Highveld reported a lower operating profit of $95 million, largely as a result
of significantly lower vanadium prices. The ferro-vanadium price for the six
months averaged $39/kgV compared with $71/kgV in the comparative period. In
July, the sale was announced of Anglo American's 79% stake in Highveld Steel.

Scaw Metals' operating profit reached a record $74 million. The acquisition of
AltaSteel in Canada in February 2006 contributed $8 million. There was generally
strong demand for cast and rolled products in the South African market, while
the international grinding media business experienced improved sales volumes.

The attributable share of Samancor's operating profit amounted to $26 million.
This decline was mainly due to lower manganese prices and the disposal of
Samancor's chrome business.

Tongaat-Hulett's operating profit was higher, at $78 million. The sugar business
benefited from higher sugar prices and a reduced cost structure and Hulett
Aluminium achieved higher sales volumes. It has been decided to unbundle and
list Tongaat-Hulett's aluminium business, Hulett Aluminium, and also to
introduce black economic empowerment into both Tongaat-Hulett and Hulett
Aluminium.

The outlook for the second half of the year remains broadly positive. Firm iron
ore prices should offset weaker manganese ore and vanadium market conditions.
The timing of the Kumba BEE transaction will impact second half earnings.

COAL

$ million                                                                            6 months       6 months
                                                                                      30 June        30 June
                                                                                         2006           2005
Operating profit                                                                          356            374
              South Africa                                                                144            205
              Australia                                                                   102             48
              South America                                                               110            121
EBITDA                                                                                    464            476
Net operating assets                                                                    2,199          2,124
Capital expenditure                                                                       290            126
Share of Group operating profit (%)                                                        8%            12%
Share of Group net operating assets (%)                                                    8%             6%

Operating profit decreased by 5% to $356 million mainly as a result of lower
export sales from South Africa and Australia.

Markets have remained relatively firm for the first six months of the year, but
prices have shown a degree of volatility. The API4 benchmark price for 2006
deliveries of thermal coal from South Africa's Richards Bay Coal Terminal has
fluctuated around the $50 per tonne level, ranging between $42 and $56 per
tonne. Pressure to meet supply commitments in countries such as Australia, South
Africa and Colombia have been alleviated to some extent by growth in supplies
from Russia and Indonesia.

Benchmark hard coking coal prices for the 2006/2007 Japanese fiscal year
(reported at $114 per tonne), though lower than the 2005 highs of around $125
per tonne, remain very firm. However, continued price pressure on semi-soft
coking coal resulted in a more significant fall-off in this market from 2005
peak levels of some $100 per tonne. Deals for the current calendar year have
been reported in the $60 per tonne range.

Operating profit from South African sourced coal decreased by 30% to $144
million, despite the rand:dollar exchange rate having weakened slightly compared
with the first six months of 2005. Export sales prices were 7% lower as prices
came off the previous year's highs. Heavy rainfall during the first quarter
affected production and led to a 4% reduction in export sales to 8.3 million
tonnes.

Operating profit for the Australian operations improved by 113% to $102 million,
primarily as a result of significantly higher metallurgical coal prices realised
during the period. Saleable production, however, was 10% lower at 11.4 million
tonnes, because of lower saleable output, particularly at Dartbrook and Moranbah
North. In March, a decision was taken to place Dartbrook under 'care and
maintenance' as a result of the ongoing operating challenges, and the mine is
expected to cease production in the fourth quarter of this year. During the last
two months production volumes across all operations have improved and these
levels are expected to be maintained for the rest of the year. Export sales from
Australia were impacted by rail and port constraints that continue to affect
shipments through Dalrymple Bay Coal Terminal and Gladstone Port.

Attributable operating profit from the South American operations declined by 9%
to $110 million. Improved sales volumes were offset by slightly weaker average
coal prices and increases in operating costs. Anglo Coal's attributable coal
production from Cerrejon rose by 16% to 4.7 million tonnes as the operation
continued to ramp up to 28 Mtpa. Production in Venezuela was hit by heavy rains
in March and May and a ten day coal transportation stoppage in May.

In South Africa, the Mafube mine development is progressing following the
granting of a prospecting right over the Nooitgedacht and Wildfontein reserves.
In Australia, the Grasstree development remains on schedule and is planned to
start production during the second half of 2006. The Dawson and Lake Lindsay
projects are on track, with increased tonnages expected in 2007 and 2008. Work
continues on the feasibility study for Monash, a fuel from brown coal project.
At Cerrejon, in Colombia, the expansion to 32 Mtpa, which was announced in 2005,
is expected to be achieved by 2008.

The performance for the second half of the year is expected to be better than
the first six months, as steps to bring production back on stream continue to
deliver results. Thermal and hard coking coal markets are expected to remain
firm.

GOLD

$ million                                                                        6 months      6 months
                                                                                  30 June       30 June
                                                                                  2006(1)          2005
Operating profit                                                                      303           172
EBITDA                                                                                540           433
Group's share of net assets / net operating assets                                  1,519         6,793
Capital expenditure                                                                   196           311
Share of Group operating profit (%)                                                    7%            6%
Share of Group net operating assets (%)                                                 -           19%

(1) The results for 2006 are reported as a subsidiary up to 20 April and thereafter as an associate at
42% attributable (see note 3 to the financial statements).

Attributable operating profit from AngloGold Ashanti of $303 million represented
a 76% increase against $172 million for the corresponding period last year,
mainly due to the impact of a stronger gold price, partially offset by the Group
accounting for AngloGold Ashanti as an associate from 20 April 2006. Production
declined from 3,138,000 ounces to 2,755,000 ounces on a 100% basis. At Geita in
Tanzania lower production was due to rain problems that slowed down the mining
in the Nyankanga pit, which has delayed the mining of higher grade ore into next
year and at Cripple Creek & Victor in the US, lower production was due to grade
related issues and reduced rainfall in the Colorado area. For the six months,
the average price received climbed from $423/oz to $573/oz, a 35% increase,
though 4% below the average spot price of $591/oz.

The economic and political contexts in which gold currently trades remain
substantially unchanged. Gold exchange traded funds grew by 149 tonnes during
the six month period, with only modest reductions occurring during a sharp
fall-off in the gold price which occurred in May.

Central bank selling appears to have been very low since January, with reported
sales to date of between 315 tonnes and 320 tonnes. This means that signatories
to the Washington Agreement (an agreement reached between the central banks with
the largest gold holdings to, inter alia, regulate official sales of gold) may
sell up to a further 180 tonnes before 26 September this year if they are to
utilise, in full, the 2006 quota.

Consumption from the gold jewellery sector was adversely affected in the last
months of 2005 and in 2006 by high and volatile prices for the metal. Demand was
soft, particularly in comparison with the prior period in 2005, which witnessed
exceptionally strong levels of demand. The Turkish and Indian markets, being two
of the more price-sensitive, were particularly affected.

Higher metal prices have been accompanied by an influx of gold scrap into
refineries, with the new secondary refineries in Dubai being the major
beneficiaries.

Strong investor interest in gold continues to sustain the price of gold.
Although subject to pronounced swings, the average price of the metal is now
trading at its highest level for around 25 years and gold's strong rally from
the lows of four years ago appears to be underpinned by sound fundamentals.

DIAMONDS

$ million                                                                             6 months      6 months
                                                                                       30 June       30 June
                                                                                          2006          2005
Share of associates' operating profit                                                      293           297
EBITDA                                                                                     341           337
Group's share of De Beers' net assets (1)                                                2,029         2,114
Share of Group operating profit (%)                                                         6%           10%

(1) De Beers is an independently managed associate of the Group. The Group's
share of De Beers' net assets is disclosed.

Attributable operating profit from De Beers of $293 million was at a similar
level to operating profit for the corresponding period in 2005 of $297 milion,
reflecting only marginal growth in sales volumes by The Diamond Trading Company
(DTC) and challenging conditions in the rough diamond market.

Overall production from De Beers and its partners in Botswana, South Africa,
Namibia and Tanzania was 4% higher at a record 24.7 million carats. The value of
the diamond stockpile was some $188 million lower compared with the level at the
end of the first half of last year.

Demand for diamond jewellery in the consumer markets remains robust, with growth
of 3%-4% over the previous record first six months of 2005. However, difficult
trading conditions exist in the rough diamond market as a result of rising
interest rates, higher prices for the precious metals used in diamond jewellery
pieces, reduced margins and the need to manage inventory levels across the
distribution pipeline. During the reporting period, the DTC, De Beers' marketing
arm, improved sales by 1% to $3.25 billion, the second highest figure ever.

In Canada, the Snap Lake and Victor projects, with a combined capital
expenditure value of $1.8 billion, remain on track to open, as planned, in the
final quarters of 2007 and 2008 respectively. Project costs have increased,
principally owing to higher energy and material costs, technological challenges
and the impact of the early closure of the winter road to the sites. In Angola,
prospecting activities are fully under way through a joint venture with the
State owned diamond company, Endiama. Subject to the necessary government
regulatory approvals, two projects in South Africa have been given the green
light: the re-opening of the long dormant Voorspoed mine and the South African
Sea Areas marine mining project, for a total investment of $284 million.

In May, De Beers and the government of Botswana signed agreements to renew
Jwaneng mine's mining licence for a further 25 years, the sale of Debswana's
production to the DTC for another five years and the establishment of the DTC
Botswana to carry out local sales and marketing. Following agreement reached
with the European Commission, however, the DTC's trading relationship with
Russian diamond producer Alrosa will come to an end at the end of 2008.

A groundbreaking empowerment transaction was concluded in April, resulting in
the sale of 26% of De Beers Consolidated Mines, the South African mining arm of
De Beers, to a black economic empowerment consortium.

Conditions in the rough diamond market remain challenging, which is likely to
constrain the opportunity for the DTC to grow sales in the second six months,
particularly given its strong performance in the latter half of 2005. However,
expectations remain positive for consumer diamond jewellery sales in the second
half, with growth forecast in the region of 5%-6% for the full year - which
would be the tenth consecutive half-year of demand growth. De Beers group
production is forecast to be around 1% higher over the full year (despite the
closure of a number of South African operations), while the southern African
operations will benefit from the weakening of local currencies against the
dollar.

PAPER AND PACKAGING

$ million                                                                        6 months       6 months
                                                                                  30 June        30 June
                                                                                     2006           2005
Operating profit                                                                      212            233
              Packaging                                                               128            132
              Business Paper                                                           56             89
              Other                                                                    28             12
EBITDA                                                                                435            449
Net operating assets                                                                6,671          6,359
Capital expenditure (including bio assets)                                            287            418
Share of Group operating profit (%)                                                    5%             8%
Share of Group net operating assets (%)                                               25%            18%

Operating profit declined 9% from $233 million to $212 million, a creditable
performance in difficult market conditions, particularly given the adverse
impact of exchange translation and the slow start up of PM31in South Africa
following a major rebuild. Margin pressure continued throughout the period as
increased input costs, particularly wood and energy, were not fully recovered in
selling price increases. These input-cost pressures were partly offset by some
packaging paper price improvements and a further $101 million in cost savings
for the first six months.

Mondi Packaging's operating profit at $128 million was 3% below the 2005 first
half figure of $132 million, primarily due to closure and restructuring costs of
$12 million ($8 million in the prior corresponding period). Positive packaging
paper price developments were largely offset by higher input costs. Converted
product prices did not increase to the full extent of the paper prices. The
acquisition of the mainly US-based release liner manufacturer Akrosil was
completed in January and the acquisition of the Bulgarian sack kraft Paper
Factory Stambolijski was finalised during June. In a move to further strengthen
Mondi's position in the European release liner sector, Mondi has agreed the
acquisition of the Italian and German based Schleipen & Erkens business. This
acquisition is still subject to competition clearance.

Mondi Business Paper's operating profit at $56 million was 37% below the $89
million posted for the comparable period, primarily because of expenses related
to project development and a slow start up of Merebank's PM31 following a major
rebuild. Although the Merebank PM31 rebuild was completed on time and within
budget, the build up of production has been slow and there have been volume and
product quality issues which have significantly impacted production and margins.
Product quality and volumes are now improving, though they have not yet reached
the targeted level. Selling prices for business papers increased slightly during
the period from the very low levels in the second half of 2005, however they
have not reached the price levels of the first half of 2005.

The rest of the group has performed better than in the comparable period, with
strong performances from Mondi Packaging South Africa and the newsprint
businesses.

Results for the half year continue to show that Mondi is operating in a
challenging industry environment. Selling prices within the Business Paper
sector and margins within the converted packaging sector were well below
historic mid-cycle levels. The company is constantly seeking new ways of
responding to that environment and continues with its drive to obtaining
operational excellence across all of its operations, with particular focus on
integrating and optimising the major investments made recently in South Africa
at Richards Bay and Merebank. This together, with the ongoing cost-reduction
programme should position the business well to benefit from any upturn in the
markets.

INDUSTRIAL MINERALS

$ million                                                                      6 months         6 months
                                                                                30 June          30 June
                                                                                   2006             2005
Operating profit                                                                    151              193
              Tarmac                                                                152              183
              Copebras                                                              (1)               10
EBITDA                                                                              275              317
Net operating assets                                                              4,388            4,255
Capital expenditure                                                                 115              120
Share of Group operating profit (%)                                                  3%               6%
Share of Group net operating assets (%)                                             16%              12%


Anglo Industrial Minerals' operating profit of $151 million was $42 million
lower than in the first half of 2005. Operating profit at Tarmac declined by 17%
to $152 million, reflecting weak markets in UK aggregate products, particularly
asphalt and housing products, which were exacerbated by high energy costs.
Operations in Germany and Poland, adversely impacted by the severe winter in the
early part of the year, have now largely recovered. Profits in Copebras were $11
million down on 2005 owing to the combined effects of the appreciation of the
Brazilian real relative to the US dollar and flat demand in the Brazilian
fertiliser markets. Operational efficiencies and procurement savings of some $27
million were insufficient to mitigate these effects.

Tarmac has completed its strategic review. The scope of its activities is
clearly defined as aggregates, together with the three routes to market of
asphalt, concrete and concrete products, and integration with cement where
appropriate. Together with completion of the operational, commercial and
organisational restructuring, initiated two years ago, this strengthens Tarmac's
ability to improve its results and grow. A special charge for impairment and
restructuring costs of $278 million has been taken, relating to the announced
sales ($46 million), businesses which are being retained and restructured ($218
million) and closure costs and other items ($14 million).

In addition to bolt on acquisitions in the UK, France, Poland and the Czech
Republic, Tarmac entered Turkey and Romania with acquisitions in quarries and
ready mix concrete. These enhance Tarmac's capacity to grow its business in
Central and Eastern Europe and the Black Sea Basin, a region with promising
growth prospects. TopPave and the Minerals and Materials business have been sold
and the previously announced disposals of non-core businesses in Germany and
Hong Kong are expected to be completed in the second half of the year.

Tarmac's operating profit in the UK declined by 18% largely owing to general
market weakness and high energy costs. Price increases have been successfully
maintained, though the benefits in Aggregate Products were eroded by weak demand
and a highly competitive market place that resulted in lower volumes. Despite a
substantial decline in demand from the housing sector, particularly for blocks
and mortar, profits in building products were in line with the first half of
2005. This reflects the initial benefits from the restructuring of the Concrete
Products business and improvements in the lime and cement businesses.

First half operating profits in Tarmac International remain in line with last
year with the exception of the Middle East, which benefited from the high levels
of construction in the UAE and France where profits were boosted by acquisitions
and stronger markets, particularly for aggregates. Profits in Spain were 18%
lower, largely reflecting the impact of higher cement costs despite strong
demand.

Following the announcement of Robbie Robertson's intended retirement at the end
of 2006, David Weston, president of Shell Canada Products Ltd, will become CEO
of Tarmac with effect from 1 October 2006, to effect a smooth handover.

Performance in the second half of the year is traditionally stronger than in the
first half. That said, markets in the UK are expected to remain challenging and
caution is required in view of the likely difficulties of passing on significant
additional bitumen and other energy cost increases in the face of weak demand.

Consolidated income statement
for the six months ended 30 June 2006


                                    
                           Before   Special                Before      Special               Before   Special
                          special items and               special    items and              special items and           
                        items and  remeasu-             items and     remeasu-            items and  remeasu-
                         remeasu-   rements              remeasu-      rements             remeasu-   rements
                          rements   (note 6)              rements      (note 6)             rements   (note 6)
                         6 months  6 months  6 months    6 months     6 months   6 months      Year      Year      Year 
                            ended     ended     ended       ended        ended      ended     ended     ended     ended
US$ million       Note   30.06.06  30.06.06  30.06.06  30.06.05(1)  30.06.05(1)  30.06.05  31.12.05  31.12.05  31.12.05

Group revenue        3     16,175         -    16,175      14,510            -      14,510   29,434         -    29,434
Total operating           (12,169)     (854)  (13,023)    (12,084)         (73)    (12,157) (24,090)     (487)  (24,577)
costs
Operating profit     3      4,006      (854)    3,152       2,426          (73)      2,353    5,344      (487)    4,857
from subsidiaries
and joint ventures

Net profit/(loss)    6          -       927       927           -           (1)         (1)       -        87        87
on disposals
Share of net income  3        313        56       369         348           59         407      696       (39)      657
of associates
Total profit from    3      4,319       129     4,448       2,774          (15)      2,759    6,040      (439)    5,601
operations and
associates

Investment income             307        64       371         224          128         352      498        72       570
Interest expense             (395)      (51)     (446)       (448)          (6)       (454)    (926)      (37)     (963)
Net finance costs    7        (88)       13       (75)       (224)         122        (102)    (428)       35      (393)
Profit before tax           4,231       142     4,373       2,550          107       2,657    5,612      (404)    5,208
Income tax           8     (1,318)      116    (1,202)       (548)          22        (526)  (1,283)        8    (1,275)
(expense)/income
Profit for the              2,913       258     3,171       2,002          129       2,131    4,329      (396)    3,933
financial period

Attributable to:
Minority interests            411      (183)      228         303          (10)        293      593      (181)      412
Equity shareholders  4      2,502       441     2,943       1,699          139       1,838    3,736      (215)    3,521
of the Company

Earnings per share
(US$)
Basic                9                           2.00                                 1.27                         2.43
Diluted              9                           1.94                                 1.23                         2.36

Dividends

Proposed ordinary                                33.0                                 28.0                         62.0
dividend per share (US
cents)
Proposed ordinary                                 484                                  404                          903
dividend (US$ million)
Proposed special                                 67.0                                    -                         33.0
dividend per share (US
cents)
Proposed special                                  983                                    -                          480
dividend (US$ million)

Dividends paid during                            95.0                                 51.0                         79.0
the period per share (US
cents)
Dividends paid during                           1,406                                  734                        1,137
the period (US$ million)

(1)      The Group has changed the presentation of the consolidated income statement to report remeasurements separately
in addition to special items (consistent with the presentation adopted in the 2005 Annual Report).  The 30 June 2005 
comparative figures have been adjusted accordingly.  See note 6 to the financial information.

Underlying earnings and underlying earnings per share are set out in note 9.

Consolidated balance sheet
as at 30 June 2006
                                                        Note

                                                                          As at           As at           As at
US$ million                                                            30.06.06        30.06.05        31.12.05

Intangible assets                                                         2,056           2,588           2,572
Tangible assets                                                          21,848          29,604          30,796
Biological assets                                                           314             331             350
Environmental rehabilitation trusts                                         166             217             288
Investments in associates                                                 4,620           3,269           3,165
Financial asset investments                                                 710             851             899
Deferred tax assets                                                         280             226             337
Other financial assets (derivatives)                                         98             266             183
Other non-current assets                                                    115              62             153
Total non-current assets                                                 30,207          37,414          38,743
Inventories                                                               2,836           3,180           3,569
Trade and other receivables                                               5,347           5,289           5,174
Current tax assets                                                          170              96             211
Current financial asset investments                                           2               5              16
Other current financial assets (derivatives)                                253             527             747
Cash and cash equivalents                                12               2,638           2,788           3,430
Total current assets                                                     11,246          11,885          13,147
Assets classified as held for sale                       16               2,498             757               -
Total assets                                                             43,951          50,056          51,890

Short term borrowings                                                   (1,710)         (2,623)         (2,076)
Trade and other payables                                                (4,550)         (4,497)         (5,024)
Short term provisions                                                      (50)             (3)            (19)
Current tax liabilities                                                 (1,187)           (790)         (1,145)
Other current financial liabilities (derivatives)                         (336)           (547)         (1,286)
Total current liabilities                                               (7,833)         (8,460)         (9,550)
Medium and long term borrowings                                         (3,310)         (7,250)         (6,363)
Retirement benefit obligations                                            (755)         (1,016)         (1,258)
Other financial liabilities (derivatives)                                 (358)           (406)           (508)
Deferred tax liabilities                                                (3,472)         (5,022)         (5,201)
Provisions                                                                (934)         (1,370)         (1,432)
Total non-current liabilities                                           (8,829)        (15,064)        (14,762)
Liabilities directly associated with assets              16             (1,184)           (283)               -
classified as held for sale
Total liabilities                                                      (17,846)        (23,807)        (24,312)
Net assets                                                               26,105          26,249          27,578

Equity
Called-up share capital                                  10                 765             747             747
Share premium account                                                     2,474           1,634           1,637
Other reserves                                                               82           1,100           1,330
Retained earnings                                        11              20,202          18,586          19,907
Equity attributable to equity shareholders of the Company                23,523          22,067          23,621
Minority interests                                       11               2,582           4,182           3,957
Total equity                                                             26,105          26,249          27,578

The interim financial information was approved by the Board of directors on 3 August 2006.


Consolidated cash flow statement
for the six months ended 30 June 2006

                                                      



                                                                             6 months       6 months         Year 
                                                                                ended          ended        ended
US$ million                                                       Note       30.06.06       30.06.05     31.12.05

Cash inflows from operations                                        12          4,060          3,074        7,265
Dividends from associates                                                         100            300          461
Dividends from financial asset investments                                          3              4            9
Income tax paid                                                                 (874)          (447)        (954)
Net cash inflows from operating activities                                      3,289          2,931        6,781
Cash flows from investing activities
Acquisition of subsidiaries, net of cash and cash equivalents                   (215)          (111)        (298)
Investment in associates                                                          (4)           (26)         (29)
Purchases of tangible assets                                                  (1,466)        (1,433)      (3,306)
Investment in biological assets                                                  (33)           (26)         (55)
Purchases of financial asset investments                                         (11)          (163)        (203)
Disposal of subsidiaries, net of cash and cash equivalents                        882             67          419
Sale of interests in joint ventures                                                 -              -            2
Sale of interests in associates                                                     -              -           11
Repayment of loans and capital from associates                                    394            208          370
Proceeds from disposal of tangible assets                                          58             37          327
Proceeds from sale of financial asset investments                                  70            226          245
Loan repayments from related parties                                                -              -            1
Utilised in hedge restructure                                                       -           (69)         (69)
Other investing activities                                                         13             10         (18)
Net cash used in investing activities                                           (312)        (1,280)      (2,603)
Cash flows from financing activities
Movement in current financial asset investments                                     -            (5)           13
Issue of shares by subsidiaries to minority interests                              48             21           73
Sale of treasury shares to employees                                              191             82          240
Purchase of treasury shares                                                   (1,560)              -            -
Interest received and other investment income                                     122            102          210
Interest paid                                                                   (256)          (319)        (547)
Dividends paid to minority interests                                            (193)          (165)        (421)
Dividends paid to Company shareholders                                        (1,453)          (727)      (1,137)
Repayment of short term borrowings                                              (251)          (510)      (1,356)
Repayment of medium and long term borrowings                                     (70)           (33)        (632)
Capital element of finance leases                                                (14)              -            -
Other financing activity                                                           42           (45)         (19)
Net cash used in financing activities                                         (3,394)        (1,599)      (3,576)
Net (decrease)/ increase in cash and cash equivalents                           (417)             52          602
Cash and cash equivalents at start of period(1)                                 3,319          2,781        2,781
Cash movements in the period                                                    (417)             52          602
Effects of changes in foreign exchange rates                                    (213)          (157)         (64)
Cash and cash equivalents at end of period(1)                       12          2,689          2,676        3,319

(1)      Cash and cash equivalents per the cash flow statement includes overdrafts and cash and cash equivalents
within disposal groups and is reconciled to the balance sheet in note 12.


Consolidated statement of recognised income and expense
for the six months ended 30 June 2006
                                                                                   6 months    6 months        Year 
                                                                                      ended       ended       ended
US$ million                                                                        30.06.06    30.06.05    31.12.05

Gain/(loss) on revaluation of available for sale investments                            116        (20)          31
Loss on cash flow hedges                                                              (344)        (87)       (316)
Loss on cash flow hedges - associates                                                 (174)           -           -
Exchange losses on translation of foreign operations                                (1,113)     (2,557)     (2,182)
Actuarial gain/(loss) on post-retirement benefit schemes                                 54        (48)       (171)
Actuarial loss on post-retirement benefit schemes - associates                            -           -        (24)
Deferred tax                                                                            121          53         140
Other movements                                                                           -           -           5
Net expense recognised directly in equity                                           (1,340)     (2,659)     (2,517)
Transfers
Transferred to profit or loss: sale of available for sale investments                  (31)        (32)        (32)
Transferred to profit or loss: cash flow hedges                                           2         (6)         (8)
Transferred to the initial carrying amount of hedged items on cash flow hedges            -         (4)           -
Transferred to profit or loss: exchange differences on disposal of foreign               11           -           -
operations
Tax on items transferred from equity                                                      -           1           -
Total transferred from equity                                                          (18)        (41)        (40)
Profit for the period                                                                 3,171       2,131       3,933
Total recognised income and expense                                                   1,813       (569)       1,376
Attributable to:
Minority interests                                                                      (8)       (123)        (82)
Equity shareholders of the Company                                                    1,821       (446)       1,294




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