06/04/2011

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The Supply Side OutlookJohn MacKenzie, CEO, Copper

OVERALL MACRO ECONOMIC AND MARKET CONTEXT

2

30

35

40

45

50

55

60

65

2010200920082007

0

100

200

300

400

500

0

20

40

60

80

100

c/lb

2010200920082007 31 Dec 10

70

75

80

85

90

2010200920082007

USD indexed to exchange rate basket

ChinaUS

0

50

100

150

2010200920082007

Metals

USDCLP

USDAUD

USDBRL

USDZAR

Sept –Lehman failure

Nov –US QE2

Copper spotVIX index

Manufacturing activity May –Greek rescue package

Purchasing managers’ index, 50 = no change

VIX

Index

31 Dec 10 31 Dec 10

31 Dec 10

USQuantitativeEasing

%

Source: Anglo American Commodity Research

1. Industrial Recovery 2. Weak USD

3. Strong commodity currencies help drive high commodity prices

4. Markets remain volatile, but more optimistic about the global economic outlook

%

%

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STRONG EMERGING MARKET GROWTH WILL CONTINUE

3

Investment in infrastructure

US$ billion, constant 2005 prices and exchange rates

Middle classes by region (M)

Source: McKinsey Global Institute Source: OECD, Standard Chartered Research

0

100

200

300

400

500

600

700

800

900

1000

US Japan Germany UK China India Brazil

2008 2030

• Growing middle class in emerging economies will continue to drive demand

• China and the US will continue to drive infrastructure growth

THE COPPER MARKET OUTLOOK

4Source: Brook Hunt, a Wood Mackenzie company, December 2010 Long Term Outlook

• We expect a CAGR of approx. 4% between 2010 and 2015. Others are forecasting as much as 6%

• Supply side issues relating to bottlenecks, disruptions and falling ore grades continue to

impact production at existing operations

• Long lead times for new projects

• Only a proportion of the Probable and Possible

projects will come on stream in the timeframe indicated

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2010 2012 2014 2016 2018 2020

Min

e S

up

ply

(kt

Cu

)

Current production Highly probable

Probable Possible

Demand

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ANGLO AMERICAN - A MAJOR COPPER PRODUCER

5

El Soldado (100%) Mantos Blancos (100%) Chagres (100%)

Collahuasi (44%)Los Bronces (100%) Mantoverde (100%)

• 623kt copper in 2010, plus molybdenum and silver by-products

• Two world class assets at Los Bronces and Collahuasi

DELIVERING SUBSTANTIAL NEAR TERM GROWTH

• Los Bronces 278ktpa copper expansion on schedule for first production Q4 2011

• Production at Los Bronces scheduled to increase to 490ktpa over first 3 years, average 400ktpa over first 10 years

• Positioned firmly in the lower half of the cost curve, estimated cash costs c. $0.80/lb net of by-products at full production

• At peak production the mine will be fifth largest producing copper mine

• Mine life over 34 years with further expansion potential

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06/04/2011

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MINIMUM TOTAL ENDOWMENT OF KEY COPPER BELTS

7

22%

18%

10%

7%

6%

6%

6%

5%3%

3%

2%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

1%

Source: and Metals Economics Group and Anglo American analysis

Top 10 key Cu belts

Other key Cu belts

A FOCUSED EXPLORATION PROGRAMME

8Copper exploration presence

DR Congo

IndonesiaBrazil

Alaska

Colombia

Peru

Chile, Argentina

• Major new Resources announced at Los Sulfatos, San Enrique Monolito and West Wall

06/04/2011

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GROWTH IN SUPPLY

9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chile

China

Peru

USAAustraliaIndonesiaZambiaRussian FederationCanadaKazakhstanPolandDRC

Other

CAGR 1992 - 2001 CAGR 2001 - 2010

Chile 11.0% 1.5%

N. America -2.5% -2.15

Australia 10.8% -0.3%

Indonesia 16.8% -2.4%

Zambia -5.2% 9.6%

DRC -14.1% 29.7%

• Over the last 2 decades, the top 10 producing countries have supplied ~80% of the total

• Chile grew supply significantly during 1992 -

2001 but has remained relatively flat since then

• North America has decreased from 22% to 12% of global production, overtaken by Peruin 2009

• The fastest growing major supply regions are now Zambia and the DRC

Source: Brook Hunt, a Wood Mackenzie company, December 2010 Long Term Outlook

NEW SUPPLY: LATIN AMERICA CENTRE STAGE

10Source: Brook Hunt, a Wood Mackenzie company, December 2010 Long Term Outlook. 1) Total 2011-2020 includes highly probable and probable projects only

Chile

USA

CanadaIndonesiaAustralia

Russian Federation

Peru

China

PolandZambia

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total 2001-2010 Total 2011-2020

DRC

1

-

25

50

75

100

125

150

Highly probable

Probable Possible

Nu

mb

er

of

Pro

jects

GF <100ktpa

GF >100ktpa

• There are a limited number of large scale projects (>100ktpa Cu production) in the pipeline

• Over 50% of these large scale greenfieldprojects are located in Latin America

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A STRONG PIPELINE OF PROJECTS

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Other Projects

Los Bronces District (100%) Collahuasi (44%)

Michiquillay, Peru (100%)

Quellaveco, Peru (82%)

Pebble, USA (50%)

• Brownfield projects being studied at the majority of operations

• 3 major greenfield projects in Peru and the US, with approval of Quellaveco expected this year

IDEALLY POSITIONED FOR GROWTH IN A HIGHLY ATTRACTIVE INDUSTRY

• Our strategy is focused on four key value drivers

– Safety & sustainability

– Operational excellence

– Project delivery

– Portfolio management

• Our strong project pipeline has the potential to increase production to over 1.5Mt by 2020

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

12

A very positive outlook for copper, with growing societal challenges, and continuing dominance of Latin America

in the copper supply market

Current projects

Existing & approved

06/04/2011

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13

THANKYOU