#1AngloAmerican MINAS-RIO REVIEW 29 January 2013 Real Mining. Real People. Real Difference.#2CAUTIONARY STATEMENT Disclaimer: This presentation has been prepared by Anglo American plc ("Anglo American") and comprises the written materials/slides for a presentation concerning Anglo American. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy shares in Anglo American. Further, it does not constitute a recommendation by Anglo American or any other party to sell or buy shares in Anglo American or any other securities. All written or oral forward-looking statements attributable to Anglo American or persons acting on their behalf are qualified in their entirety by these cautionary statements. Forward-Looking Statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding Anglo American's financial position, business and acquisition strategy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and reserve and resource positions), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. 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Nothing in this presentation should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information about Anglo American included in this presentation is sourced from publicly available third party sources. As such it presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American. No Investment Advice This presentation has been prepared without reference to your particular investment objectives, financial situation, taxation position and particular needs. It is important that you view this presentation in its entirety. If you are in any doubt in relation to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002.). 2#3BUSINESS CASE AS PRESENTED AT TIME OF PURCHASE Minas Rio Business Case ANGLO AMERICAN Rationale for acquisition D Iron ore is a structurally attractive market, in which Anglo has been looking to expand its presence for some time Tier one asset opportunities are rare . Large long life resource Expandable Low cost with integrated logistics infrastructure High quality ore body ☐ Minas Rio ore has a complementary profile to Anglo's current high quality Sishen ore product offer 0 Acquired a large and experienced iron ore team Anglo has a significant footprint in the Brazilian market dating back over 30 years 1 "Rationale for acquiring the project(1) Board made a long term strategic decision to substantially grow our iron ore portfolio - one of the cornerstones of Anglo's strategy Minas-Rio provides quality product on a huge scale Differentiated product in the market as a long term supplier of high volume quality iron ore Strong supporters of Brazil, operating in Brazilian market for over 30 years" (1) Presented at South American Analyst Site Visit in 2009 3#4Fe US$/t . BUSINESS CASE FOR MINAS-RIO REMAINS INTACT Good future fundamentals Medium to long term fundamentals for iron ore remain robust 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 Average spot price Consensus long term price $80/t (2012) 0.0 2006 2007 2008 2009 2010 2011 2012 Source: UBS, Anglo American Significant increase in resource Delineated 5.8 bn from 1.2 bn tonnes of Mineral Resources 1.2 2007 ~5x 5.8 2012 Source: Anglo American Annual Reports and Competent Person Reports. Due to the uncertainty that may be attached to some Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will necessarily be upgraded to an Indicated or Measured Resource after continued exploration. Minas-Rio project pipeline represents Itapahoacanga and Serra Do Sapo only 4#5BUSINESS CASE FOR MINAS-RIO REMAINS INTACT (CONT.) 160 150 140 130 120 100 80 70 ༄ ཤྩ ༄ ྨ ༅ ༔ 8 ཚ ➢ CIF cost China (US$/t) Maintains a low cost position 60 Minas-Rio(1) 50 40 30 20 20 10 10 10% Alumina silica content High quality & low contaminant product Australia - high quality 8% Australia - medium quality 6% 4% India Other Africa CIS China (1) North America Sishen Dotted bubble indicates processed ore Brazil 26 2% Bubble size indicates an average production of 50 Mtpa Minas-Rio Phase1 Minas-Rio expansion 0 0% 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 56% 58% 60% 62% 64% Fe content 66% 68% 70% Volume (mt) (1) Indicative position. $20/t freight rate assumption Source: Macquarie, Anglo American (1) Chinese production (rich ore equivalent) inferred from a small sample of mines Source: CRU, AME, Anglo American 5#6BUT BRAZIL IS A DEVELOPING COUNTRY 12 Evolving regulatory environment - a challenge for many projects in Brazil Cost pressures and skill shortages in Brazil are real Project Capex escalation Delay (months) (%) Serra Sul (Vale, Iron ore) 72 54 310 280 250 220 Brazilian components escalation (index 2006 =100) Onça Puma (Vale, Nickel) 158 27 27 Salobo (Vale, Copper) 179 30 Ferrovia Norte-Sul (Government 127 55 infrastructure - railroad expansion) Transposicao do Rio Sao Francisco (Government 56 55 59 infrastructure - river for irrigation) Source: Company information, broker notes, MEG, UBS 190 160 130 10 10 8 Brazilian unemployment rate (%) 9 + 2 100 0 2006 2007 2008 2009 2010 2011 2012 Labour costs CPI Cement Unemployment rate FGV: IBRE - Instituto Brasileiro de Economia, EIU Countrydata, UBS, Anglo American Source: 6#7PROJECT OVERVIEW CONCEIÇÃO DO MATO DENTRO Mine and Beneficiation (Minas Gerais) SANTO ANTÔNIO DO GRAMA MG Pipeline 525 km TOMBOS RJ Port (RJ) AÇU 5.8b Resources US$c.30/t 26.5 Mtpa initially 68% Fe Cash cost (FOB) Up to 90 Mtpa in expansion Pellet feed 7#8CONTINUING PROGRESS DURING THE PAST 12 MONTHS At end of 2012 At end 2011 Beneficiation plant Earthworks nearing completion Concrete poured • Release of caves for construction Tailings dam land access 92% 79,000 m³ 4 of 4 (September 2012) 21 of 21 secured 79% 29,000 m³ 2 of 4 8 of 21 secured • 3 legal injunctions cleared Transmissions line • Installation licence × December 2012 * outstanding • Towers available / in construction 43 0 Pipeline • Track released for construction Landowners released Filtration plant and Port • Overall completion of filtration plant Mechanical erection at port Transmission line towers installed for port Licences and Permits Pending licences and permits 402 km; 247 km installed 95% 219 km; 201 installed 88% 77% 65% 85% 45% 11% 41% 17 (to be issued up to FOOS) 78 8#9CAPEX ESCALATION RECONCILIATION $bn 5.8 1.0 Approved budget FOOS delay 0.8 0.5 0.2 0.3 Impact of licences and agreements 0.6 8.8 8.2 Escalation and price amendments FX net of hedge Capex review items Revised budget Contingency Revised budget incl. contingency 9#10KEY SHORT TERM SCHEDULE RISKS Mine Context FOOS date impact In the event of a 3-6 month delay (from cut-off date) Comments • • Cave 1 suppression and Mine Access Beneficiation Plant TL 230kV land release (Beneficiation Plant) Cave impacts the pre-stripping activities • New mine access being licensed • Legal injunction lifted • Release of land and access H1 2015 (rainy season) Active engagement with authorities •Authorisation anticipated in H1 2013 Extension of LI H1 2015 (rainy season) 23% of towers released for construction since December 2012 O Contractor mobilised • Closure of Tailings Dam • Land access available (November 2012) Archaeological site recovery in progress H2 2015 (dry season needed) • Archaeological recovery underway Sites identified and prioritised Pipeline • Front 1 access Nova Era Silicon's (NES) Legal Reserves relocation National road - LMG 790 accesses H1 2015 (rainy season) . 53% of NES earthworks released 25% of LMG 790 earthworks released 10#11IMPROVING PROJECT DELIVERY Efficiency Group reorganisation to allow Iron Ore Brazil (IOB) team to solely focus on Minas-Rio project delivery IOB organisation streamlined to focus on delivery and productivity Forward planning - solutions for rainy season, pre- assembling activities and monitoring the contractors activities closely Validated and developed a comprehensive work program to convert plans into timely actions ■ Licensing and Permitting Licence office established to monitor and track licences, permits and conditionings in advance of construction activities Government Relations strengthened Head of Government Relations appointed (extensive experience with government and multilateral institutions) Head of Licence Office appointed (12 years of experience working in the State environmental agency) ■ Monitoring and Governance Project Management Office implemented and integrated (reports directly to CEO of IOB) Early warning system to escalate risks and issues Clear accountability and responsibility incorporated into individuals performance targets Securing future capabilities Clear exploration and definition of a world class resource to support current development and future expansions Local employment (technical training in collaboration with Brazilian educational entities - SENAI) Social programmes to assure the social licence to operate (MOVER, PROMOVA) Future expansions will adopt the Anglo American Project Way 11#12IMPAIRMENT CONSIDERATIONS Impairment considerations Base case valuation for impairment test does not include the potential value from future expansions to 90 Mtpa • Full impairment test included sensitivity analysis based on various risk adjusted assumptions • Downside scenario considered the impact of potential delay and capital cost increases • The fair value of Minas-Rio is determined on a discounted cash flow basis using: a real post-tax discount rate of 6.5% quality adjusted long-term iron ore prices slightly above the median of US$80 per tonne (as at December 2012) Carrying value Carrying value at 31 December 2012 $bn Acquisition cost(1) 5.2 Capex to date 3.8 Other net assets 0.6 Carrying value (excluding cash and debt) 9.6 (1) Includes goodwill of $1.1 billion Income statement Income statement impact (special items) Impairment (pre-tax) $bn 5.0 Tax 1.0 Impairment (post-tax) 4.0 12#13KEY MESSAGES • Medium and long term attractiveness and strategic positioning of Minas-Rio remains intact • Cost and schedule review completed, including a detailed re-evaluation of all aspects of the outstanding schedule, with a focus on maximising value and mitigating risk • Good progress made in 2012 – all three injunctions that had disrupted the project in 2012 have been lifted • . Disappointed that capital expenditure increased to $8.8 billion (FOOS by the end of 2014) The delivery of Minas-Rio is dependent upon a number of development milestones being achieved in 2013 and other factors $4.0 billion post-tax impairment charge recorded, based on risk adjusted assumptions 13#14AngloAmerican APPENDIX#15BENEFICIATION PLANT Current status and points of attention Key stats 53% complete 92% of beneficiation plant earthworks completed 43 of 187 transmission line towers released for construction 79,000 m³ of concrete poured to date ~4,000 people at site LICENSING LAND ACCESS ■ Continuous focus on government relations ■ Active engagement and follow-up with forestry, environmental and archaeological agencies ■ Conclude land access for transmission line towers ■ Strategic plan for future land requirements ■ Monitor escalation factors in the construction industry ■ Focus on top contractors PROCUREMENT 15 15#16PIPELINE Current status and points of attention Key stats 66% 66% complete 76% cleared for pipe laying > 247 km ~50% of pipe laid 95% of 1,555 properties realised ~6,000 people at site FRONT 1 LICENCES FRONT 1 LAND ACCESS PROCUREMENT DELIVERY O Complete relocation of legal reserves ■ Conclude final arrangements in partnership with Minas Gerais Roads Agency (DER) & Nova Era Silicon ■ Finalise contract amendments with key pipeline contractors ■ Maintain the sense of urgency ■ Closely monitoring productivity and bottlenecks 16#17PORT Current status and points of attention Key stats 52% complete 100% stackers and reclaimer erected 77% of Filtration Plant completed ~1,500 people at site BREAKWATER ■ Mobilise breakwater construction CONSTRUCTION ■Complete electromechanical activities ■ Installation of ship loader Prepare port for ramp up and operation PORT OPERATIONS ■ 17 15#18PRE-OPERATIONS Current status and points of attention Key stats 46% complete 5.8 bn tons of mineral resources 1.4 bn tons of ore reserves 24h/365d work shift 80 Mtpa material handled 5,400 employees CAVES / PRE-STRIPPING COMMISSIONING & RAMP-UP PEOPLE ■ Integrated planning with licensing team ■ Execute work plan to optimise stripping plan. ■ A dedicated team is being created for the commissioning ■ Close monitoring of ramp up activities ■ Employment of operators and engineers underway ■ Retaining talent 18