Strategic Review

Anglo American PLC
26 October 2005


News Release

26 October 2005


                   Anglo American completes strategic review

The Board of Anglo American plc ("Anglo American") has recently updated its
strategy for its business and has reached a number of conclusions about the
future shape of the Group. The main thrust of these will lead to further
rationalisation and simplification of the Group's portfolio and structure and an
increasing focus on controlled mining businesses which leverage the core skills
of the Group.

Following this review the Board of Anglo American is announcing today a number
of initiatives to further the Group's strategic objectives:

•          Anglo American will continue to invest in growth projects in its
core mining businesses - platinum, diamonds, coal, base metals and iron ore -
and will continue to evaluate acquisition opportunities in the mining sector.

•          To give AngloGold Ashanti (AGA) greater flexibility to pursue its
strategic agenda, a decision has been made to reduce Anglo American's
shareholding in AGA.

•          Due to the different characteristics of the paper and packaging and
mining businesses, Anglo American recognises that it may become appropriate in
the future to establish Mondi as an independent business in order to maximise
value to shareholders. Anglo American will continue to support the growth
opportunities which exist for Mondi, whilst retaining flexibility in respect of
future strategic options.

•          Returns from the Group's industrial minerals division, Tarmac, will
be improved through a programme of refining the portfolio including turning
around or divesting underperforming parts of the business.

•          Surplus capital, up to an amount of $1 billion, will be returned to
shareholders via a share buy-back and/or special dividend during the course of
2006.

Tony Trahar, CEO of Anglo American said: "This announcement marks a further step
in Anglo American's ongoing strategic development.  Through a series of measures
we are creating a more focused mining Group, better positioned to take advantage
of opportunities in our main mining businesses."


AngloGold Ashanti

Anglo American recognises that its gold subsidiary, AGA, like all gold
businesses, is valued differently from other mining assets by the equity capital
markets and tends to be followed by quite distinct investors.

Following a detailed review of Anglo American's investment in AGA a decision has
been made to give AGA greater strategic flexibility by no longer seeking to
retain it as a subsidiary.  Although Anglo American's holding in AGA will be
reduced, Anglo American currently intends to remain a significant shareholder in
AGA in the medium term.

AGA, which is independently managed, will be able to enjoy further flexibility
to pursue its corporate objectives as a result of a reduced Anglo American
shareholding.

Mondi

Anglo American's paper and packaging division, Mondi, has grown very
successfully and is acknowledged as one of the best managed and positioned
businesses in its sector.  Anglo American will continue to invest in Mondi in
order to create shareholder value recognising the opportunity for continued
successful development of this business.  The business remains a strong profit
and cash generator for the Group and has recently invested over $900 million in
high return brownfields expansion projects.  Further value should be derived
from these projects as they ramp up to full capacity and other high return
projects will be undertaken to continue the successful development of the
business.

However, due to the different characteristics of the paper and packaging and
mining businesses, Anglo American recognises that it may become appropriate in
the future to establish Mondi as an independent business in order to maximise
value to shareholders.

Tarmac

Anglo American's industrial minerals division, Tarmac, generates strong cash
flows and the extractive part of the business enjoys synergies with the mining
business. Management has been tasked with improving the returns on capital
invested in this business by turning around, restructuring or divesting
underperforming parts of the portfolio and pursuing further growth opportunities
in its core business.

The business will continue to be assessed on returns and growth possibilities in
relation to other mining opportunities.

Anglo Platinum

Anglo Platinum represents a key differentiator for Anglo American from its
peers, and is core to the mining portfolio. Anglo Platinum is uniquely
positioned, as the market leader and with an extensive resource base, to take
advantage of increasing demand and to drive long-term growth. The achievement of
improved operating cost efficiency and project delivery is a major area in which
shareholder value can be grown and remains a major focus for group management.

Anglo American is exploring options as to how growth and investment can best be
supported alongside an appropriate BEE transaction.

Diamonds, Coal, Base and Ferrous Metals

These businesses are undertaking a number of significant projects and are
considering further expansion to meet growing market demand.

Other Listed Subsidiaries:  Highveld Steel and Tongaat Hulett

The Board has reviewed the Group's investment in Highveld Steel and has decided
to dispose of its interest in this business.

The Board of Tongaat Hulett has been requested to examine ways of unlocking
greater value for all shareholders.

Capital Optimisation

Anglo American's key capital management objective is the maintenance of a single
A credit rating through the cycle whilst retaining balance sheet flexibility to
pursue further growth opportunities as and when they arise.  The strong cash
flows currently being generated from operations will enable Anglo American to
pursue its $5 billion capital expenditure programme and to consider further
growth projects.

The Board also intends to return up to $1 billion to shareholders via a share
buy-back and/or special dividend during the course of 2006.

Further announcements, as appropriate, will be made in due course.

For further information, please contact:

Investor Relations                                  Media Relations
Nick von Schirnding                                 Kate Aindow
Tel: [phone]                               Tel: [phone]

Charles Gordon                                      Daniel Ngwepe
Tel: [phone]                               Tel: [phone]

Anne Dunn
Tel: [phone]


Analyst Conference Call - 09.30 UK time / 10.30 SA time

A conference call for analysts and investors will take place at 09.30 UK time /
10.30 SA time, on 26 October 2005. The call will be hosted by Tony Trahar, CEO
of Anglo American. Dial in numbers are as follows:

Dial in numbers:
Standard dial in:              [phone]
UK toll free dial in:          0800 073 1808
SA toll free dial in:          0800 991 209
US toll free dial in:          1866 245 0744

A replay facility will be available for one week:
Dial In no:                    [phone]
Pin Code:                      1791142


                      This information is provided by RNS
            The company news service from the London Stock Exchange