Anglo American, which has invested in the Hunter Valley for over 30 years recently submitted its Environmental Impact Statement (EIS) for the proposed Drayton South Project to the NSW Department of Planning. Included in the EIS is a detailed economic assessment by leading economist Dr Robert Gillespie whose experience spans over twenty years with specialty in resource and environmental economics.

The economic assessment of the Drayton South Project was also peer reviewed and its findings confirmed by respected economist Drew Collins of the BDA Group.

Dr Gillespie’s analysis confirms the Project would make significant direct and indirect contributions to the regional economy for 15 years.

“The economic assessment for Drayton South demonstrates the Project will have net social benefits to Australia of between $329 million and $475 million and hence is desirable and justified from an economic efficiency perspective,” Dr Gillespie said.

“The Project will also provide continued employment for 500 people, an estimated capital investment of $132 million and royalties of $423 million to the NSW Government over the life of the Project.

“In addition, we know that numerous sectors in the regional economy depend on the Project given that 70% of the existing workforce lives in the Hunter Region and therefore a material component of their expenditure on good and services will flow-on to local businesses,” Dr Gillespie said.

Anglo American NSW Projects Director Mr Rick Fairhurst said while the Project had reduced its footprint to avoid any impacts on its neighbours, there remained a compelling economic case for the Project given the global demand for high-grade export quality thermal coal.

“Market analysts suggest coal price is bottoming out and will rise over time and that exchange rate forecasts are favourable for Australian resource exporters such as Anglo American,” Mr Fairhurst said.

“Independent studies by the US Energy Information Administration show world consumption of energy coal is forecast to rise at an average rate of 1.3 percent per year over the next 25 years which will benefit this 15 year Project.

“The Project is strategically placed to take advantage of the energy coal demand and remains viable even under the difficult conditions currently being experienced.

“The Project is essentially a continuation of the existing Drayton Mine and has the advantage of utilising all of the existing infrastructure which is in place for the current operations.

“Critically, for the Hunter region, if the Project is approved we will be able to continue providing jobs for our 500 strong workforce and supporting local business, suppliers and community groups.

Further information on the Drayton South Project, the economic assessment and the Project’s EIS can be found online via the NSW Department of Planning.

Anglo American has a dedicated public information centre in the Muswellbrook Marketplace where community members can speak to a Drayton South representative about the project and find out how to make a submission. The information centre is open Monday to Friday, 10am to 4pm.

ENDS

Contact: Corporate Affairs, Vanessa Davies – 0400 927 185

Notes to editors:

Anglo American is a global and diversified mining business that provides the raw materials essential for economic development and modern life. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products – from bulk commodities and base metals to precious metals and diamonds (through De Beers) – to our customers around the world. Our diversified portfolio of products spans the economic development cycle and, as a responsible miner, we are the custodians of precious resources. We work together with our key partners and stakeholders to unlock

the long-term value that those resources represent for our shareholders, but also for the communities and countries in which we operate – creating sustainable value and making a real difference. Our mining operations, growth projects and exploration and marketing activities extend across southern Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com