HALF YEAR FINANCIAL REPORT

for the six months ended 30 June 2012

NEWS RELEASE

27 July 2012

Anglo American announces EBITDA(1) of \$4.9 billion for the half year

Financial results impacted by weaker prices

Group operating profit(2) of \$3.7 billion
Underlying earnings(3) of \$1.7 billion and underlying EPS of \$1.38
Profit attributable to equity shareholders(4) of \$1.2 billion
Net debt(5) of \$3.1 billion at 30 June 2012 (pro forma net debt of \$10.0 billion) (6)

Strong operational and strategic delivery

Strong production performance across iron ore, metallurgical coal, thermal coal, copper and nickel through successful project execution and asset optimisation
Kumba Iron Ore record production of 21.6 Mt and record export sales of 20.7 Mt, up 13%
Metallurgical Coal record production of export metallurgical coal of 8.6 Mt, up 40%
De Beers acquisition has met all regulatory approvals and the transaction is expected to complete in Q3 2012
Increased shareholding in Kumba Iron Ore by 4.5% to 69.7% for \$948 million
Agreed to acquire 58.9% interest in Revuboè high quality metallurgical coal resource in Mozambique for \$555 million

Projects delivered and ramping up to drive high quality production growth

Kolomela iron ore 3.3 Mt produced in H1 2012; on schedule to produce at least 6 Mt in 2012 and full capacity of 9 Mt in 2013
Los Bronces copper 92% of design capacity achieved; on track to complete ramp-up by Q4 2012
Barro Alto nickel H1 2012 production of 12 kt; targeting full production in early 2013
Zibulo thermal coal ramp-up on track to full capacity of 6.6 Mtpa

Projects in execution progressing

Minas-Rio 26.5 Mtpa iron ore project licensing and construction progress hindered by legal actions
Grosvenor 5 Mtpa metallurgical coal project engineering work 50% complete as of July 2012; earthworks under way

Disciplined capital allocation delivering shareholder value

Target to maintain a strong investment grade rating
Committed to return cash to shareholders on a sustainable basis interim dividend increased by 14% to US 32 cents per share
Sequencing investment in line with resulting funding capacity to focus on the most value accretive and lowest risk growth options

Safety

7 employees lost their lives in work related incidents safety programmes continuing to drive for zero harm
37% improvement in lost time injury frequency rates since 2007

HIGHLIGHTS	6 months ended	6 months ended
US\$ million, except per share amounts	30 June 2012	30 June 2011	Change
Group revenue including associates(7)	16,408	18,294	(10)%
Operating profit including associates before special items and remeasurements(2)	3,724	6,024	(38)%
Underlying earnings(3)	1,691	3,120	(46)%
EBITDA(1)	4,942	7,112	(31)%
Net cash inflows from operating activities	2,478	3,986	(38)%
Profit before tax(4)	2,942	6,571	(55)%
Profit for the financial period attributable to equity shareholders(4)	1,207	3,988	(70)%
Earnings per share (US\$):
Basic earnings per share(4)	0.98	3.30	(70)%
Underlying earnings per share(3)	1.38	2.58	(47)%
Dividend per share	0.32	0.28	14%

(1) Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes the attributable share of EBITDA of associates. See note 5 to the Condensed financial statements.

(2) Operating profit includes attributable share of associates' operating profit (before attributable share of associates' interest, tax and non-controlling interests) and is before special items and remeasurements, unless otherwise stated. See notes 2 and 3 to the Condensed financial statements. For the definition of special items and remeasurements see note 4 to the Condensed financial statements.

(3) See note 9 to the Condensed financial statements for basis of calculation of underlying earnings.

(4) Stated after special items and remeasurements. See note 4 to the Condensed financial statements.

(5) Net debt includes related hedges and net debt in disposal groups. See note 12 to the Condensed financial statements.

(6) Pro forma net debt is net debt adjusted for the estimated effect of the acquisition of an additional 40% interest in De Beers (\$6.3 billion including De Beers net debt as at 30 June 2012) and the acquisition, announced on 24 July 2012, of a 58.9% interest in the Revuboè metallurgical coal project in Mozambique (\$0.6 billion).
(7) Includes the Group's attributable share of associates' revenue of \$2,730 million (six months ended 30 June 2011: \$3,057 million). See note 2 to the Condensed financial statements.

Cynthia Carroll, Chief Executive, said: "Anglo American has continued its strong operational performance of 2011 into the first half of 2012, delivering increased volumes of thermal coal, copper and nickel and record volumes of iron ore from Kumba in South Africa and export metallurgical coal from Australia and Canada. As a result of markedly weaker commodity prices experienced during the first half of the year, in addition to ongoing input cost pressures across the portfolio, Anglo American reported an operating profit of \$3.7 billion, a 38% decrease. EBITDA decreased by 31% to \$4.9 billion and underlying earnings decreased by 46% to \$1.7 billion.

Successful project execution, from the three new mining operations delivered and commissioned during 2011, contributed to production growth and generated more than \$650 million of operating profit. Growth projects delivered in 2011 continue to ramp up well, with Los Bronces expansion achieving 92% of nameplate capacity during the second quarter, while Kumba's Kolomela mine has exceeded expectations by producing in excess of 6 Mt on an annualised basis during the first half of the year – both considerable achievements and ahead of schedule.

Beyond organic growth, we have simplified our minority ownership of De Beers through the acquisition of the Oppenheimer family's 40% interest, for which we have now received all the regulatory approvals. Our partner in De Beers and in Debswana, the Government of the Republic of Botswana (GRB), has the opportunity to decide whether or not to increase its interest in De Beers. Irrespective of its decision, the GRB is firmly committed to De Beers and our interests in the continuing success of the world's leading diamond company are well aligned. We have also chosen to increase our shareholding in Kumba Iron Ore, lifting our ownership by 4.5% to 69.7%, reflecting our view on the quality of the business and its highly attractive performance and growth profile.

To ensure that we continue to deliver shareholder value and returns through the cycle, we will maintain our prudent and disciplined approach to managing our businesses and allocating capital. Despite the macroeconomic uncertainty and likely sustained higher capital and operating cost environment for the industry, we are committed to returning cash to shareholders and have increased our interim dividend by 14% to US 32 cents per share.

We continue to work through all our projects in the construction phase, including Minas-Rio. Minas-Rio is one of the largest and most complex projects in the world, and certainly in Brazil. We have been working to secure permits and licences required for the project in a challenging and changing regulatory environment. Despite being granted further major licences during the period, we continue to face legal challenges to those licences awarded by the various regulatory bodies. We have deployed additional resources to strengthen the project management and permitting teams to resolve these issues but, until they are cleared, we cannot as yet with confidence determine the date for first production. As a guide, however, if we clear all the current impediments by the end of 2012 and experience no additional major unexpected interventions, we anticipate being in a position to ship our first ore in the second half of 2014. Minas-Rio is a high quality iron ore resource with very significant expansion potential and, despite current challenges, will prove to be a major contributor to the Group for many decades to come.

We are sequencing investment by prioritising capital to commodities with the most attractive market dynamics and projects with the lowest execution risks. The 5 Mtpa Grosvenor metallurgical coal project in Australia is well under way, with engineering work now 50% complete as of July 2012 and earthworks have begun. I am also delighted that we have reached a successful and mutually beneficial conclusion to our community dialogue process with the local community at our Quellaveco copper project in southern Peru. This is a clear demonstration of the value we place on engagement and the development of sustainable communities as a prerequisite to our social licence to operate; we look forward to gaining our outstanding permits prior to the Board's review of the project. In Platinum, we are progressing with our review of the shape and scale of the business in order that we achieve satisfactory returns over the long term. As previously stated, we expect to complete the review by the end of the year.

Our safety performance is my absolute priority and the efforts that we have made across our safety related programmes continue to have a positive effect. We still, however, have a long way to go in order to sustain the progress we have made since 2007, both in terms of lives lost and lost time injuries sustained. I am deeply saddened that seven of our colleagues have lost their lives between January and June, all at our Platinum and Thermal Coal businesses.

Short term prospects for the world economy have deteriorated in recent months. Alongside continuing structural problems in the euro zone, economic growth has slowed in the US and major emerging economies, such as China, India and Brazil, albeit from high levels. Yet we see more resilient trends in the medium to longer term. Long term supply constraints across many commodities, combined with continuing industrialisation and urbanisation trends in key growth markets should provide considerable support for prices."

Review of the six months ended 30 June 2012

Financial results

Anglo American's underlying earnings for the first half of 2012 were \$1.7 billion, 46% lower than the same period in 2011, with an operating profit of \$3.7 billion, down 38% from \$6.0 billion. Weakening global economic growth negatively impacted the majority of commodity prices during the period which, when coupled with increasing unit costs in most of the Group's operations, compressed margins.

Iron Ore and Manganese recorded an operating profit of \$1,779 million, 28% lower than the corresponding period in 2011. This was driven by lower iron ore prices, which decreased by 21% at Kumba Iron Ore (Kumba), together with cost increases which were partly offset by a 13% increase in export sales volumes.

Metallurgical Coal delivered an operating profit of \$159 million, a 68% decrease on the first half of 2011, primarily due to the impact of lower realised export prices, partly offset by higher sales volumes.

Thermal Coal's operating profit of \$433 million was 17% lower than the equivalent period in 2011 as a result of decreasing realised prices partly offset by higher sales volumes, supported by record half year production at Cerrejón.

Copper delivered an operating profit of \$978 million, 30% lower than the first half of 2011, underpinned by a 12% lower realised average copper price combined with lower grades. Sales volumes increased by 14% following the ramp-up of the Los Bronces expansion project.

Nickel reported an operating profit of \$58 million, 38% lower than the first half of 2011. Operating profit includes a self insurance recovery of \$57 million and was significantly impacted by a 28% decrease in prices coupled with high inflation in Venezuela. Profit from Barro Alto project continues to be capitalised during ramp-up.

Platinum generated an operating profit of \$84 million, 85% lower than the corresponding period in 2011, following lower prices and sales volume. A positive stock adjustment of \$172 million relating to the annual physical count contributed to the operating profit.

Diamonds recorded an attributable operating profit of \$250 million, 44% lower than the first half of 2011 due to lower average prices, reflecting lower demand and changing product requirements from customers.

Other Mining and Industrial's operating profit was \$180 million, 32% higher than the first half of 2011 attributable to the increase in Amapá's operating profit which is now included as part of Other Mining and Industrial. Amapá generated an operating profit of \$112 million compared to \$45 million in 2011 due to the reversal of penalty provisions, which were in place at the end of 2011, as a result of contract re-negotiations. Copebrás' operating profit was 46% lower owing to lower international fertiliser prices, while Catalão increased operating profit by \$24 million due to increased production. Tarmac's operating loss of \$24 million and Scaw South Africa's operating profit of \$28 million were both in line with the same period in 2011.

Production

Production across most of the Group's operations increased compared to the same period in 2011. Successful project execution and asset optimisation delivered volume growth in iron ore, metallurgical coal, thermal coal, copper and nickel. Total Group iron ore production increased by 15% to 24.6 Mt due to the ramp-up of the Kolomela mine and production improvements at Amapá. The Group's Metallurgical Coal production increased by 40% to 8.6 Mt, benefiting from both productivity improvements and a reduction in weather related stoppages.

Copper production increased by 14% to 329,500 tonnes, driven by the ramp-up at the Los Bronces expansion project, partly offset by expected lower ore grades at Collahuasi. Nickel production increased by 80% to 22,900 tonnes due to the ramp-up from Barro Alto. Platinum equivalent refined production was marginally ahead of 2011 following shorter and more localised safety-related stoppages during the first half of the year. Production at De Beers decreased by 13% to 13.4 million carats. In light of prevailing rough diamond market trends, and in keeping with De Beers' stated production strategy from the fourth quarter of 2011, operations continued to focus on maintenance and waste stripping backlogs.

Capital structure

Net debt, including related hedges, of \$3,124 million was \$1,750 million higher than at 31 December 2011, and \$3,670 million lower than at 30 June 2011.

During the period, the Group issued corporate bonds with a US\$ equivalent value of \$2.8 billion in the US, European and South African markets. In addition, 99% of the Group's \$1.7 billion convertible bonds were converted into equity, resulting in the issue of 62.5 million new shares, a reduction in net debt of \$1.5 billion, and an aggregate interest saving of \$0.3 billion compared to the cost of holding the bonds to maturity.

Dividends

An interim dividend of 32 US cents per share (30 June 2011: 28 US cents per share) has been declared, signalling the Board's commitment to have a disciplined balance between the maintenance of an investment grade rating, returns to shareholders and sequencing of future investment in line with resulting funding capacity.

Anglo American's dividend policy is to provide a base dividend that will be maintained or increased through the cycle.

Project delivery to continue to drive high quality production growth

Anglo American's extensive portfolio of undeveloped world class resources and pipeline of growth opportunities projects spans its chosen core commodities. It offers considerable options for sequencing of investment in line with the Group's view of market dynamics and the geopolitical environment. Capital will be prioritised to focus on the most value accretive and lowest risk growth options, taking into consideration the Group's resulting funding capacity.

Anglo American commissioned three major new mining operations on or ahead of schedule during 2011 – the Kolomela iron ore mine in South Africa, the Los Bronces copper expansion in Chile and the Barro Alto nickel operation in Brazil. These three new operations are ramping up successfully and have contributed to the Group's strong production performance during the first half of 2012.

Beyond the near term, the Group has a number of projects in the execution phase, as summarised below, and is progressing towards approval decisions in relation to the development of further high quality growth projects, including the 225 ktpa Quellaveco greenfield copper project in Peru.

Anglo American has a clear strategy of deploying its capital in those commodities with strong fundamentals and the most attractive risk-return profiles that deliver long term, through-the-cycle returns for its shareholders. The Group has developed a portfolio of world class operating assets and development projects with the benefits of scale, expansion potential and attractive cost position and capital intensity. Anglo American's project management systems and processes ensure close collaboration between the Group's technical and project teams to execute projects effectively.

Minas-Rio

The Minas-Rio iron ore project in Brazil is expected to produce 26.5 Mtpa of iron ore in its first phase of development. Project progress has been affected by ongoing licensing challenges which have impacted the completion of the project. Subject to resolving the existing licensing challenges and not encountering additional unexpected interventions, first ore on ship is now anticipated to be in the second half of 2014.

Pre-feasibility studies for the expansion phases of the Minas-Rio iron ore project commenced during 2011, supported by an estimated resource base of 5.8 billion tonnes, as detailed in our annual resource statement.

Cerrejón P500 expansion – on track

In Colombia, the first phase of the brownfield expansion project, P500 Phase 1, aims to maximise value by increasing export thermal coal production capacity by 8 Mtpa to 40 Mtpa (100% basis), through additional mining equipment and the de-bottlenecking of key logistics infrastructure along the coal chain. The project was approved by Cerrejón'sshareholders in the third quarter of 2011. The project is progressing well and is expected to be delivered on schedule and on budget. First coal is targeted for the fourth quarter of 2013, with full production by the end of 2015. Further expansion opportunities, in the form of P500 Phase 2, are currently under investigation.

Grosvenor – on track

The brownfield Grosvenor metallurgical coal project is situated immediately to the south of Anglo American's Moranbah North metallurgical coal mine in the Bowen Basin of Queensland, Australia. The mine is expected to produce 5 Mtpa of high quality metallurgical coal from its underground longwall operation over a projected life of 26 years and to benefit from operating costs in the lower half of the cost curve.

Grosvenor forms a major part of the Group's strategy of tripling production of metallurgical coal from its Australian assets by 2020, equivalent to a 12% compound annual growth rate from 2010, using a standard longwall and coal handling and preparation plant (CHPP) design model. In its first phase of development, Grosvenor will consist of a single new underground longwall mine, targeting the same well understood Goonyella Middle coal seam as Moranbah North, and will process its coal through the existing Moranbah North CHPP and train loading facilities. A pre-feasibility study for expansion by adding a second longwall at Grosvenor is under way.

The Grosvenor expansion project is currently in execution, with engineering work approximately 50% complete as the first half of 2012, while earthworks commenced on the site in June 2012. Construction of the drifts (tunnels) is expected to begin in August 2012.

Quellaveco – successful conclusion to community dialogue process

Quellaveco is a greenfield copper project in the Moquegua region of southern Peru which has the potential to produce 225 ktpa of copper from an open pit over a mine life of more than 30 years. The project is expected to operate in the lower half of the cash operating cost curve, benefiting from attractive ore grades, low waste stripping and molybdenum by-product production. Anglo American completed the feasibility study for the project in late 2010 and took the decision to suspend progress in order to engage more actively with the local communities through a formal dialogue table process, following requests from local stakeholders. The dialogue process reached agreement in early July 2012 in relation to water usage, environmental responsibility and Anglo American's social contribution over the life of the mine, and has been held up as a model for stakeholder engagement in Peru. The project will be put forward for review by the Board once outstanding permits are received.

M&A update

De Beers

In November 2011, Anglo American agreed to acquire the Oppenheimer family's 40% interest in De Beers for \$5.1 billion, subject to adjustment as provided for in the agreement and pending regulatory and government approvals, increasing Anglo American's current 45% shareholding to up to 85%.

This transaction is a unique opportunity for Anglo American to consolidate control of the world's leading diamond company, marking the Group's commitment to an industry with highly attractive long term supply and demand fundamentals. Underpinned by the security of supply offered by a new 10-year sales agreement with the Government of the Republic of Botswana (GRB), this forms a compelling proposition.

The benefits brought by Anglo American's scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers' business and iconic brand, will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.

In July 2012, Anglo American announced that all conditions precedent had been fulfilled and all required regulatory approvals had been obtained. The GRB has a pre-emption right in respect of the De Beers interests to be sold by CHL, and its affiliates, enabling it to participate in the transaction and increase its interest in De Beers, on a pro rata basis, to 25%.

In the event that the GRB exercises its pre-emption rights in full, Anglo American would acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American would be reduced proportionately. Cash consideration will be paid on completion of the transaction, which is expected to occur during the third quarter of 2012.

Anglo American Sur

In November 2011, entirely in accordance with its rights, Anglo American announced the completion of the sale of a 24.5% stake in Anglo American Sur (AA Sur), comprising a number of the Group's copper assets in Chile, to Mitsubishi Corporation LLC (Mitsubishi) for \$5.4 billion in cash. This transaction highlighted the inherent value of AA Sur as a world class, tier one copper business with extensive reserves and resources and significant further growth options from its exploration discoveries, valuing AA Sur at \$22 billion on a 100% basis.

Litigation between Anglo American and Codelco in respect of the option agreement between them relating to AA Sur (described fully in Note 15 to the Condensed financial statements) is currently suspended to allow Anglo American and Codelco to explore the possibility of negotiating an agreement in relation to Anglo American Sur. Should this prove successful, it will enable the two parties to overcome their legal dispute.

Revuboè

On 24 July 2012, Anglo American announced that it had agreed to acquire a 58.9% interest in the Revuboè metallurgical coal project in Mozambique from the Talbot Estate for a total cash consideration of A\$540 million (approximately US\$555 million). The Revuboè project is a joint venture partnership and includes Nippon Steel Corporation (33.3% interest), and POSCO (7.8% interest). Revuboè has a reported JORC resource of 1.4 billion tonnes of hard coking and thermal coal suitable for open cut mining, with the potential to support the export of six to nine million tonnes per annum on a 100% basis.

The acquisition of a majority interest in Revuboè is in line with Anglo American's strategic commitment to grow its global metallurgical coal business to supply customers from each of the key metallurgical coal supply regions of Australia, Canada and Mozambique. Revuboè is located in the most attractive area of Mozambique's Moatize coal basin and has a number of infrastructure development options. The transaction is subject to a number of conditions and is expected to be completed during the third quarter of 2012.

Update on divestment programme

Subject to regulatory approvals, Anglo American's divestment programme, as set out in October 2009, has been completed, raising \$3.8 billion of cumulative proceeds on a debt- and cash-free basis.

In April 2012, Anglo American announced the final stage of the \$1.4 billion Scaw Metals Group (Scaw) divestment with the sale of Scaw South Africa (Pty) Ltd (Scaw South Africa), a leading South Africa-based integrated steel maker, to an investment consortium led by the Industrial Development Corporation of South Africa (IDC) and Anglo American's partners in Scaw South Africa, being Izingwe Holdings (Pty) Limited, Shanduka Resources (Pty) Limited and the Southern Palace Group of Companies (Pty) Limited, for a total consideration of R3.4 billion (\$440 million) on a debt- and cash-free basis. This transaction follows the sale of Scaw's international businesses, Moly-Cop and AltaSteel, to OneSteel in December 2010 for a total consideration of \$932 million on a debt- and cash-free basis. In aggregate, the total consideration achieved from the sale of all Scaw's businesses has amounted to \$1.4 billion on a debt- and cash-free basis.

On 18 February 2011, Anglo American and Lafarge announced their agreement to combine their cement, aggregates, ready-mixed concrete, asphalt and contracting businesses in the United Kingdom; Tarmac Limited, Lafarge Cement UK, Lafarge Aggregates and Concrete UK. The 50:50 joint venture will create a leading UK construction materials company, with a portfolio of high quality assets drawing on the complementary geographical distribution of operations and assets, the skills of two experienced management teams and a portfolio of well-known and innovative brands. This transaction continues to progress through the regulatory clearance processes.

On 1 May 2012, the UK Competition Commission approved the proposed joint venture subject to a number of prior conditions. These conditions include the need to divest certain cement, aggregates, asphalt and ready-mixed concrete sites of both businesses. Both parties will work with the regulators to implement the required divestments and establish the proposed joint venture as soon as practicable.

Outlook

The short term outlook for the world economy has deteriorated in recent months. The eurozone crisis has intensified, adding to economic uncertainty both inside and outside the euro zone. After a promising start to the year, the US economy has weakened in response to greater fiscal uncertainty. The major emerging economies – notably China, India and Brazil – have also slowed. Significant policy easing, however, should underpin a recovery.

We continue to see more sustainable growth in the medium to longer term despite significant volatility in the short term. The rapid 'catch-up' in living standards, notably in China and India, combined with a medium term need for infrastructure replacement in the developed countries, presents an attractive proposition for the early cycle commodities. Over time the considerable scope for an expanding middle class in many emerging economies should boost consumption, which positions Anglo American well due to its late cycle exposure through platinum and diamonds. Long term prices for Anglo American's products are expected to be supported by widespread supply constraints and the challenges producers face in bringing new supply into production, leading to increasing capital intensity and tight market fundamentals. In addition, economic uncertainty is likely to lead to a reduction in capital investment further restraining future supply.

For further information, please contact:

Media Investors UK James Wyatt-Tilby Tel: +44 (0)20 7968 8759

Emily Blyth Tel: +44 (0)20 7968 8481

South Africa Pranill Ramchander Tel: +27 (0)11 638 2592 UK Leng Lau Tel: +44 (0)20 7968 8540

Caroline Crampton Tel: +44 (0)20 7968 2192

South Africa Nicholas Gordon Tel: +27 (0)11 638 3262

Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American's portfolio of mining businesses spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations, extensive pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe. www.angloamerican.com

Webcast of presentation:

A live webcast of the results presentation, starting at 9.00am UK time on 27 July, can be accessed through the Anglo American website at www.angloamerican.com.

Note: Throughout this results announcement, '\$' denotes United States dollars and 'cents' refers to United States cents; operating profit includes attributable share of associates' operating profit and is before special items and remeasurements, unless otherwise stated; special items and remeasurements are defined in note 4 to the Condensed financial statements. Underlying earnings, unless otherwise stated, is calculated as set out in note 9 to the Condensed financial statements. Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items and remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes attributable share of EBITDA of associates. EBITDA is reconciled to 'Total profit from operations and associates' and to 'Cash flows from operations' in note 5 to the Condensed financial statements. Tonnes are metric tons, 'Mt' denotes million tonnes and 'kt' denotes thousand tonnes, unless otherwise stated.

Forward-looking statements

This announcement includes forward-looking statements. All statements other than statements of historical facts included in this announcement, 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. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities, the availability of mining and processing equipment, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SWX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this announcement 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 announcement is sourced from publicly available third party sources. As such, it presents the views of those third parties, though these may not necessarily correspond to the views held by Anglo American.

Financial review of Group results

Operating profit \$ million	6 months ended 30 June 2012	6 months ended 30 June 2011
Iron Ore and Manganese	1,779	2,462
Metallurgical Coal	159	501
Thermal Coal	433	521
Copper	978	1,401
Nickel	58	93
Platinum	84	542
Diamonds	250	450
Other Mining and Industrial	180	136
Exploration	(72)	(46)
Corporate Activities and Unallocated costs	(125)	(36)
Operating profit including associates before special items and
remeasurements	3,724	6,024

Group operating profit for the first half of 2012 was \$3,724 million, 38% lower than the first half of 2011. This reduction in operating profit was primarily driven by decreases in the realised prices of commodities. These included a 24% decrease in achieved Australian export metallurgical coal prices, a 21% decrease in achieved FOB iron ore prices, an 18% decrease in realised South African export thermal coal prices, a 12% decrease in realised copper prices and a 13% decrease in realised platinum prices. In addition, mining cost pressures affecting the industry resulted in higher unit costs of production across the Group. The decrease in operating profit was partly offset by the increase in production across the Group's operations, mainly due to the ramp-up of the Los Bronces, Kolomela and Zibulo projects and through asset optimisation.

Corporate costs for the first half of 2012 were \$125 million, \$89 million higher than the first half of 2011. This increase was driven by a \$90 million increase in the self insurance captive loss, mainly due to one-off events in previous years at our Nickel and Copper operations being settled in 2012.

Exploration costs for the first half of 2012 were \$72 million, 57% higher than the first half of 2011. This is mainly driven by increased metres drilled due to favourable weather conditions in Australia and Chile, and a ramp-up in drilling activities at the Sakatti polymetallic project in Finland.

Geographic diversity in both the Group's production and customer base drives material exposure to foreign exchange fluctuations. For the first half of 2012, the Group recognised a favourable variance of \$527 million in foreign exchange, primarily driven by the appreciation of the US dollar against the South African rand.

Group underlying earnings were \$1,691 million, a 46% decrease on the first half of 2011. Group underlying earnings per share were \$1.38 compared with \$2.58 in the first half of 2011.

Summary income statement \$ million	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit from subsidiaries and joint ventures before
special items and remeasurements	3,241	5,180
Operating special items	(368)	(25)
Operating remeasurements	(84)	328
Operating profit from subsidiaries and joint ventures	2,789	5,483
Non-operating special items	(39)	417
Share of net income from associates (see reconciliation below)	315	605
Total profit from operations and associates	3,065	6,505
Net finance (costs)/income before remeasurements	(138)	20
Financing remeasurements	15	46
Profit before tax	2,942	6,571
Income tax expense	(1,008)	(1,556)
Profit for the financial period	1,934	5,015
Non-controlling interests	(727)	(1,027)
Profit for the financial period attributable to equity shareholders of
the Company	1,207	3,988
Basic earnings per share (\$)	0.98	3.30
Group operating profit including associates before special items
and remeasurements(1)	3,724	6,024

Operating profit from associates before special items and remeasurements	483	844
Operating special items and remeasurements	(12)	8
Non operating special items	–	6
Net finance costs (before special items and remeasurements) Financing special items and remeasurements	(35) 1	(26) 3
Income tax expense (after special items and remeasurements)	(118)	(221)
Non-controlling interests (after special items and remeasurements)	(4)	(9)
Share of net income from associates	315	605

Reconciliation of profit for the period to underlying earnings(2) \$ million	6 months ended 30 June 2012	6 months ended 30 June 2011
Profit for the financial period attributable to equity shareholders of
the Company	1,207	3,988
Operating special items	384	25
Operating remeasurements	80	(336)
Non-operating special items	39	(423)
Financing remeasurements	(16)	(49)
Special items and remeasurements tax	51	(136)
Non-controlling interests on special items and remeasurements	(54)	51
Underlying earnings	1,691	3,120
Underlying earnings per share (\$)	1.38	2.58

(1) Operating profit before special items and remeasurements from subsidiaries and joint ventures was \$3,241 million (six months ended 30 June 2011: \$5,180 million) and the attributable share from associates was \$483 million (six months ended 30 June 2011:

\$844 million). For special items and remeasurements, see note 4 to the Condensed financial statements. (2) Amounts shown include the Group's attributable share of the equivalent items in associates.

Special items and remeasurements

		6 months ended 30 June 2012			6 months ended 30 June 2011
\$ million	Subsidiaries and joint ventures	Associates	Total	Subsidiaries and joint ventures	Associates	Total
Operating special items	(368)	(16)	(384)	(25)	–	(25)
Operating remeasurements	(84)	4	(80)	328	8	336
Operating special items and remeasurements	(452)	(12)	(464)	303	8	311
Non-operating special items	(39)	–	(39)	417	6	423
Financing remeasurements	15	1	16	46	3	49
Special items and remeasurements tax	(54)	3	(51)	140	(4)	136

Operating special items and remeasurements, including associates, amounted to a loss of \$464 million, principally in respect of impairment and related charges of \$384 million in the six months ended 30 June 2012 (six months ended 30 June 2011: \$15 million) and net losses on non-hedge derivatives related to capital expenditure in Iron Ore Brazil. Derivatives which have been realised during the period resulted in a net operating remeasurement gain since their inception of \$13 million (six months ended 30 June 2011: gain of \$224 million).

The Kumba Envision Trust charge of \$39 million relates to Kumba's broad based employee share scheme provided solely for the benefit of non-managerial Historically Disadvantaged South African employees who do not participate in other Kumba share schemes.

There were no gains or losses on disposals of businesses in the six months ended 30 June 2012 (six months ended 30 June 2011: gain of \$423 million).

Financing remeasurements, including associates, reflect a net gain of \$16 million relating to fair value movements on interest rate swaps and other derivatives.

Special items and remeasurements tax, including associates, amounted to a charge of \$51 million relating to a tax remeasurement charge of \$152 million partially offset by a tax credit on special items and remeasurements of \$83 million and a credit for one-off tax items of \$18 million.

Net finance costs

Net finance costs, before remeasurements, excluding associates, were \$138 million (compared to income of \$20 million in the six months ended 30 June 2011). This reflected foreign exchange losses on net debt of \$73 million compared to gains of \$32 million in 2011, lower interest income and lower capitalised interest.

		6 months ended 30 June 2012			6 months ended 30 June 2011
		Associates'			Associates'
		tax and			tax and
	Before special	non		Before special	non
\$ million	items and	controlling	Including	items and	controlling	Including
(unless otherwise stated)	remeasurements	interests	associates	remeasurements	interests	associates
Profit before tax	3,427	124	3,551	5,793	225	6,018
Tax	(954)	(121)	(1,075)	(1,696)	(217)	(1,913)
Profit for the financial period	2,473	3	2,476	4,097	8	4,105
Effective tax rate including associates (%)			30.3			31.8

IAS 1 Presentation of Financial Statements 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 income tax expense. Associates' tax included within 'Share of net income from associates' for the six months ended 30 June 2012 is \$118 million. Excluding special items and remeasurements, this becomes \$121 million.

Balance sheet

Equity attributable to equity shareholders of the Company was \$40,628 million at 30 June 2012, up from \$39,092 million at 31 December 2011, reflecting the profit for the period of \$1,207 million and the issue of shares on conversion of convertible bonds (\$1,507 million), offset by the payment of the 2011 final dividend of \$559 million and other movements in equity. Following the agreement to sell the Group's interest in Scaw South Africa, it was classified as a disposal group and its assets and liabilities are presented as held for sale on the balance sheet.

Cash flow

Net cash inflows from operating activities were \$2,478 million compared with \$3,986 million in the six months ended 30 June 2011. EBITDA was \$4,942 million, a decrease of 31% from \$7,112 million in the prior period, reflecting decreasing prices across the Group's core commodities.

Net cash used in investing activities of \$2,121 million was higher compared to the amount in the six months ended 30 June 2011 of \$1,682 million, primarily due to disposal proceeds of \$505 million received in 2011 (mainly relating to Zinc asset disposals).

Net cash used in financing activities was \$767 million compared with \$1,909 million in the six months ended 30 June 2011. This includes the payment of \$1,015 million in tax relating to the sale of 24.5% of Anglo American Sur to Mitsubishi in 2011, dividend payments to Company shareholders and non-controlling interests totalling \$1,312 million and other financing activities, offset by cash inflows relating to net additional borrowings of \$2,771 million, largely due to corporate bond issuances in the period.

Liquidity and funding

Net debt, including related hedges, was \$3,124 million, an increase of \$1,750 million from \$1,374 million at 31 December 2011. The increase reflects net cash outflows of \$3,293 million before receipts and borrowings, partly offset by non-cash movements including a \$1,507 million reduction due to the conversion of the convertible bond.

Net debt at 30 June 2012 comprised \$14,048 million of debt, offset by \$11,290 million of cash and cash equivalents, and the current position of derivative liabilities related to net debt of \$366 million. Net debt to total capital at 30 June 2012 was 6.5%, compared with 3.1% at 31 December 2011.

At 30 June 2012, the Group had undrawn bank facilities of \$8.0 billion.

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, indicate the Group's ability to operate within the level of its current facilities for the foreseeable future.

Group corporate cost allocation

Corporate costs which are considered to be value adding to the business units are allocated to each business unit and costs reported externally as Group corporate costs only comprise costs associated with parental or direct shareholder related activities.

Dividends

An interim dividend of 32 US cents per share (30 June 2011: 28 US cents per share) has been declared.

Related party transactions

Related party transactions are disclosed in note 16 to the Condensed financial statements.

Principal risks and uncertainties

Anglo American is exposed to a variety of risks and uncertainties which may have a financial, operational or reputational impact on the Group and which may also have an impact on the achievement of social, economic and environmental objectives.

The principal risks and uncertainties facing the Group at the year end were set out in detail in the operating and financial review section of the Annual Report 2011, and remain appropriate in 2012. Key headline risks relate to the following:

Commodity prices
Liquidity risk
Counterparty risk
Currency risk
Inflation
Health and safety
Environment
Exploration
Political, legal and regulatory
Climate change
Supply risk
Ore reserves and mineral resources
Operational performance and project delivery
Event risk
Employees
Contractors
Business integrity
Joint ventures
Acquisitions and divestments
Infrastructure
Community relations

The Group is exposed to changes in the economic environment, as with any other business.

Details of any key risks and uncertainties specific to the period are covered in the operations review section.

The Annual Report 2011 is available on the Group's website www.angloamerican.com.

Operations review for the six months ended 30 June 2012

In the operations review on the following pages, operating profit includes the attributable share of associates' operating profit and is before special items and remeasurements unless otherwise stated. Capital expenditure relates to cash expenditure on property, plant and equipment (net of related derivatives).

IRON ORE AND MANGANESE

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	1,779	2,462
Kumba Iron Ore	1,840	2,437
Iron Ore Brazil(1)	(81)	(81)
Samancor	20	106
EBITDA	1,912	2,554
Net operating assets	13,315	12,212
Capital expenditure	784	563
Share of Group operating profit	48%	41%
Share of Group net operating assets	29%	26%

(1) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial, to align with internal management reporting. Comparatives have been reclassified to align with current year presentation.

Operating profit decreased by 28% from \$2,462 million to \$1,779 million, principally due to substantially weaker iron ore export prices and cost increases which were partially offset by higher export sales volumes.

Markets

Global crude steel production increased marginally to 775 Mt for the first half of 2012 compared to 772 Mt for the same period in 2011. China's crude steel production for the first half of the year of 355 Mt was up 1% year on year. At current production run rates it is anticipated that Chinese crude steel production could increase by 4% year on year to around 715 Mt for 2012, supporting a 2% increase in global crude steel production. Seaborne iron ore supply of some 533 Mt for the first half of 2012 was impacted by adverse weather conditions in Australia and Brazil during the first quarter, but saw a substantial rebound during the second quarter. Iron ore index prices traded in a range between \$130/t and \$150/t, with a high of approximately \$150/t (CFR China 62% Fe) during April 2012, and averaged \$142/t during the first six months (30 June 2011: \$179/t). Index prices declined steadily from these levels to just above \$130/t towards the end of May as Chinese steel mills reduced their offtake. Iron ore prices have since stabilised to around \$135/t as Chinese steel mills returned to the market to replenish stockpiles.

Operating performance

Kumba Iron Ore

Total tonnes mined at Sishen mine increased by 16% from 76.7 Mt in the first half of 2011 to 88.9 Mt, of which waste mined was 68.8 Mt, an increase of 33% over the first six months of 2011. Total production at Sishen mine decreased by 4% from 18.6 Mt in 2011 to 17.9 Mt. Production was impacted by the availability of material supplied to the mine's dense media separation plant and jig plant. This was as expected given a currently constrained pit, and is being addressed through the planned increase in waste stripping. This position was further impacted by wet pit conditions resulting from heavy rainfall, and poor operator attendance during the first quarter of 2012. Production run rates recovered in the second quarter of 2012 as the ramp-up in waste mining continued to improve, resulting in a 12% increase from 8.5 Mt in the first quarter of 2012.

Following successful commissioning in 2011, Kolomela mine continues to ramp up well with 3.3 Mt produced during the six months, a substantial increase on the 1.2 Mt produced in the fourth quarter of 2011. Should the current ramp-up performance be sustained, the mine should exceed the 4 to 5 Mt production guidance for 2012, increasing to 9 Mtpa design capacity in 2013. Total tonnes mined at Kolomela mine increased by 25% from 15.3 Mt in 2011 to 19.1 Mt, of which waste mined was 15.6 Mt, an increase of 6% over the first six months of 2011.

Total sales volumes for Kumba for the half year were a record at 23.4 Mt, a 6% increase compared to the 22 Mt in 2011. Export sales volumes for the half year increased 13% from 18.4 Mt in 2011 to 20.7 Mt. Kumba's export sales volumes to China totalled 71% of total export volumes for the six months, against 69% during the first half of 2011.

Iron Ore Brazil

Iron Ore Brazil generated an operating loss of \$81 million, largely reflecting the pre-operational state of the Minas-Rio project.

Samancor

Operating profit of \$20 million was \$86 million lower than the prior period, driven by lower prices and lower alloy volumes, offset by strong ore sales volumes.

Production of ore increased by 31% from 1.3 Mt to record 1.6 Mt (attributable basis) due to consistently strong operating performance and improved plant availability at both GEMCO in Australia and Hotazel in South Africa.

Production of alloy decreased by 41% from 144,900 tonnes to 85,200 tonnes (attributable basis) due to termination of energy-intensive silica-manganese production at the Metalloys plant in South Africa and the temporary suspension of production at TEMCO in Australia during the first quarter of the current year. TEMCO is expected to return to full capacity by the end of the third quarter in 2012.

A general oversupply in the industry as a result of a slowdown in steel production and high stock levels in China continue to weigh heavily on ore and alloy prices. Despite recent reductions in Chinese imports, low short term demand expectations are slowing the rate at which stocks can reach normal levels.

Projects

Iron Ore Brazil

Construction is under way at the first phase of the 26.5 Mtpa Minas-Rio iron ore project, with significant progress made. Earthworks continue in order to support civil work activities at the beneficiation plant site and land access at the tailings dam area continues to be obtained. Progress on the pipeline route continues and by the end of June 2012, 216 km or 41% of the pipeline had been completed. At the port, most off-shore civil works have been concluded while on- and off-shore mechanical erection has commenced.

While progress is being made, legal challenges have affected construction activities at the beneficiation plant and along the pipeline. The heavy rains at the beginning of the year, together with the various legal challenges and consequent stoppages, the unresolved cave 3 radius reduction and the outstanding land access at the pipeline route, are impacting the completion of the project. Taking these issues into account, a detailed review of the Minas-Rio schedule has been commissioned and completed. The outcome of this review is that subject to obtaining the outstanding licences; resolving current legal challenges; and not being impacted by any further unexpected disruptions, first ore on ship is anticipated to be in the second half of 2014. The financial impact of the delay in the completion date is being assessed.

Samancor

Following on from its approval in 2011, the \$279 million GEEP2 project (Anglo American's 40% share: \$112 million) will increase GEMCO's beneficiated product capacity from 4.2 Mtpa to 4.8 Mtpa through the introduction of a dense media circuit by-pass facility. The project is expected to be completed in late 2013. The expansion will also address infrastructure constraints by increasing road and port capacity to 5.9 Mtpa, creating 1.1 Mtpa of latent capacity for future expansions.

The addition of the high carbon ferro-manganese furnace, M14, at the Metalloys smelter in Meyerton, South Africa will add an additional 75,000 tonnes of per annum capacity. The cost of project is \$90 million (on a 100% basis) and is scheduled for completion, on budget, in the fourth quarter of 2012.

Outlook

Kumba Iron Ore

Although China's annualised crude steel production rate remains above 700 Mtpa, underlying steel demand remains weak, resulting in depressed steel prices. Iron ore prices, however, are expected to trade in a similar range as seen during the first half of the year, supported by high-cost Chinese domestic iron ore production. The recently announced monetary policy stimulus of an interest rate cut in China should support demand for steel, but the effect of it remains to be seen especially in light of economic uncertainty emanating from Europe.

The ramp-up in waste mining at Sishen mine continues, which will support an improvement in production rates at the mine during the second half of 2012. Production at Sishen mine for the full year is anticipated to be in line with 2011 levels. The ramp-up of Kolomela remains on track and will support export sales volume growth of 3 Mt to 4 Mt in 2012.

Samancor

The downward pressure on ore pricing is expected to ease during the second half of 2012, with the speed of the recovery being determined by continued supply curtailments.

On 23 February 2012, Samancor announced a 90-day suspension of operations at its TEMCO manganese alloy facility in Tasmania, Australia, to review the economic viability of continuing operations. With that review now complete, significant cost reduction opportunities have been identified which should allow TEMCO to return to a globally competitive cost position. The planned safe and full restart of the operation has commenced. The company's intention is to have all four furnaces operating by the end of August 2012.

METALLURGICAL COAL

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	159	501
EBITDA	379	683
Net operating assets	4,796	4,683
Capital expenditure	370	222
Share of Group operating profit	4%	8%
Share of Group net operating assets	11%	10%

Metallurgical Coal recorded an operating profit of \$159 million, a 68% decrease, due to the reduction in realised export prices partly offset by higher sales volumes. Average realised metallurgical coal prices were 24% lower than prices achieved in the first half of last year. Productivity improvements at the open cut operations and a reduction in weather related stoppages supported by the rigorous preparation for seasonal rains led to a significant increase in metallurgical coal production and sales.

Markets

Anglo American weighted average achieved sales prices (\$/tonne)	6 months ended 30 June 2012	6 months ended 30 June 2011
Export metallurgical coal (FOB)	191	251
Export thermal coal (FOB Australia)	103	103
Domestic thermal coal	37	35

	6 months	6 months
Attributable sales volumes	ended	ended
('000 tonnes)	30 June 2012	30 June 2011
Export metallurgical coal	8,602	6,252
Export thermal coal	2,748	2,547
Domestic thermal coal	3,183	3,759

Despite subdued demand sentiment, the seaborne metallurgical coal market showed a price recovery towards the end of the second quarter of 2012. Continued industrial action in Queensland has limited the availability of premium quality hard coking coal, supporting price increases over recent months.

Semi-soft and PCI prices, however, experienced downward pricing pressure as a result of subdued global steel demand impacting the consumption of metallurgical coal and in particular PCI. In addition, falling thermal coal prices, which increased availability of lower grade coking coals from the US, have resulted in a widening price differential between premium quality and lower grade coking coals.

Operating performance

	6 months	6 months
Attributable production	ended	ended
('000 tonnes)	30 June 2012	30 June 2011
Export metallurgical coal	8,589	6,114
Thermal coal	5,857	6,090

Export metallurgical coal production increased by 40% to 8.6 Mt, a record half-year total, while thermal coal production decreased by 4% to 5.9 Mt. Production at Queensland operations benefited from a reduction in weather-related stoppages, supported by rain mitigation initiatives implemented during 2011 and asset optimisation across key mines. Peace River Coal in Canada, for example, lifted its coal production by a substantial 42% following a combination of improved management systems, productivity improvements and upgrades to the coal handling and preparation plant. Thermal coal production was impacted by wet weather in the New South Wales Hunter Valley and industrial action in the first quarter at Drayton.

Projects

In June 2012, the Queensland Government granted Anglo American the mining lease for the \$1.7 billion Grosvenor project. The Grosvenor project is 100% owned by Anglo American, and was approved by the Board in December 2011. This forms a major part of the Group's strategy to triple metallurgical coal production by 2020. Grosvenor will consist of a single new underground longwall mine targeting the same well understood Goonyella Middle coal seam as Moranbah North mine.

In addition, studies for the next phase of our investment programme in high margin hard coking coal continue, aligned with our expectations of growing seaborne demand. This includes Grosvenor Phase 2, a 6 Mtpa second longwall for the Grosvenor project; and Moranbah South, a 50% 12 Mtpa joint venture comprising two longwalls.

Anglo American is continuing to evaluate long term port expansion opportunities to support Queensland growth projects, as well as medium term port capacity options, to meet the export requirements for the initial years of production from the Grosvenor project.

Outlook

Overall global demand for seaborne metallurgical coal remained relatively stable in the first half of 2012. In the near term, demand is expected to be impacted by global economic uncertainty. Supply disruptions owing to industrial actions in Australia have recently subsided. Pricing differentiation between the premium and lower quality product is expected to remain with continued supply from US.

In the second half of 2012, Anglo American production of high margin export products is expected to increase, supported by productivity improvements at both open cut and underground operations.

THERMAL COAL

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	433	521
South Africa	235	319
Colombia	214	212
Projects and corporate	(16)	(10)
EBITDA	522	611
Net operating assets	1,742	2,080
Capital expenditure	101	31
Share of Group operating profit	12%	9%
Share of Group net operating assets	4%	5%

Thermal Coal generated an operating profit of \$433 million, a 17% decrease on the equivalent period of 2011, driven by lower average export thermal coal prices and above-inflation cost pressures. This was partly offset by a weaker South African rand and increased sales volumes, supported by record half year production at Cerrejón.

Markets

Anglo American weighted average achieved sales prices (\$/tonne)	6 months ended 30 June 2012	6 months ended 30 June 2011
South Africa export thermal coal (FOB)	99	120
South Africa domestic thermal coal	21	22
Colombia export thermal coal (FOB)	92	101

	6 months	6 months
Attributable sales volumes ('000 tonnes)	ended 30 June 2012	ended 30 June 2011
South Africa export thermal coal(1)	8,239	6,781
South Africa domestic thermal coal(1) (2)	19,357	19,392

(1) Zibulo commended commercial production on 1 October 2011. Six months ended 30 June 2011 includes capitalised sales from Zibulo mine of 879,000 tonnes export thermal coal and 356,000 tonnes Eskom coal.

Colombia export thermal coal 5,594 5,000

(2) Includes domestic metallurgical coal of 92,000 tonnes for the six months ended 30 June 2012 (six months ended 30 June 2011: 172,000).

Seaborne thermal coal prices have weakened in the first half of 2012. Low US gas prices have displaced a significant volume of domestic US thermal coal, resulting in higher US thermal coal exports. Prices were further impacted by increased coal supply from South Africa, Colombia, Indonesia and Australia as production and logistics infrastructure continued to ramp up in these regions.

Demand in the Asia Pacific region remains relatively robust, as higher cost domestic supply is substituted for lower cost seaborne imports. At the same time, consumers continued to hold back on purchases in light of comfortable stock levels and the anticipation of a further reduction in price. High cost producers within the Appalachian basin in the US have cut production as prices eased. International seaborne prices have declined, with API 4 dropping from \$106/t in January to \$85/t in June.

South African thermal coal exports have seen a dramatic change in their destination markets, with India and Asia now accounting for around two-thirds of shipments. Within Asia, Taiwan, South Korea and Malaysia have picked up a share of India's imports from last year. The continued improved performance by Transnet Freight and Rail (TFR) saw South African coal exports 4.7 Mt, or 17%, higher at 32.1 Mt for the first six months of 2012 (first six months of 2011: 27.4 Mt).

Operating performance

Attributable production ('000 tonnes)	6 months ended 30 June 2012	6 months ended 30 June 2011
South Africa export thermal coal (1) (2)	7,918	7,945
Colombia export thermal coal	6,058	5,147
South Africa Eskom coal (1)	16,089	17,058
South Africa domestic other (2)	3,168	2,562

(1) Zibulo commended commercial production on 1 October 2011. Six months ended 30 June 2011 includes capitalised production from Zibulo mine of 936,400 tonnes thermal coal and 396,900 tonnes Eskom coal.

(2) Includes domestic metallurgical coal of 74,100 tonnes for the six months ended 30 June 2012 (six months ended 30 June 2011: 163,300).

South Africa

Operating profit from South African operations decreased by 26% to \$235 million, driven by lower average export thermal coal prices and above-inflation cost increases, in labour, power and fuel. This was partly offset by a weaker South African rand and higher sales volumes, supported by the improved TFR rail performance relative to the first half of 2011.

Export production for the first half was in line with the prior period as Zibulo's continued ramp-up was offset by the planned closure of high-cost sections at Goedehoop, Greenside and Kleinkopje, as well as industrial actions in the first quarter of the year at most operations.

Colombia

At Cerrejón, operating profit of \$214 million was broadly in line with the prior period, driven by strong production, which was up 18%, partly offset by lower thermal coal prices.

Projects

Feasibility studies on the New Largo project have been completed. There are two elements to this project: a new opencast mine and a conveyor which will run from an existing coal plant to an Eskom power station. The planned commencement date for coal on conveyor is the third quarter of 2014, with first coal production for New Largo currently expected in the fourth quarter of 2015. Anglo American will contribute a minority portion of the establishment capital.

In Colombia, the Cerrejón P500 Phase 1 expansion project to increase production by 8 Mtpa was approved by its shareholders in the third quarter of 2011. First coal is targeted for the fourth quarter of 2013, with the project expected to achieve full production by the end of 2015.

Outlook

Current industry oversupply, coupled with lacklustre demand in the Atlantic and delayed procurement in the Asia region, continues to weigh on thermal coal prices. Pricing pressure is expected to remain for the rest of 2012, though the Chinese domestic market price and the high US break-even price for producers should act as a natural floor to the seaborne price.

Current prices are expected to trigger supply-side response, with US producers already announcing 76 Mt of production cuts to date and demand in China and India expected to remain robust driven by seasonal power generation in the fourth quarter. This should rebalance the market in the final quarter of 2012.

COPPER

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	978	1,401
EBITDA	1,210	1,527
Net operating assets	8,062	7,050
Capital expenditure	488	831
Share of Group operating profit	26%	23%
Share of Group net operating assets	18%	15%

Copper generated an operating profit of \$978 million, a decrease of 30% as a result of a lower average copper price, declining grade profile and lower recoveries compared to the six months ended 30 June 2011. This was partially offset by higher sales volumes from the strong ramp-up of the Los Bronces expansion project.

Markets

	6 months ended	6 months ended
	30 June 2012	30 June 2011
Average market prices (c/lb)	367	426
Average realised prices (c/lb)	370	422

Copper prices were stable during the first four months of the year before easing in the second quarter on the back of increased global economic uncertainty. The market continues to forecast a small deficit globally for the full year, despite further deterioration in Europe and slower economic growth in China impacting demand. Supply continues to disappoint due to grade declines and various disruptions.

The LME copper price ended the half year period at 345 c/lb, averaging 367 c/lb for the first six months, a 14% decrease compared with the same period in 2011. A net positive provisional pricing adjustment of \$20 million was recorded in the first half of 2012 compared to a negative price adjustment of \$36 million in 2011, resulting in a realised price of 370 c/lb versus 422 c/lb for the prior period.

Operating performance

	6 months	6 months
	ended	ended
	30 June 2012	30 June 2011
Attributable copper production (tonnes)	329,500	289,100

Total copper production of 329,500 tonnes was 14% higher than the same period in 2011.

Los Bronces' production was 80% higher at 183,000 tonnes, with the Los Bronces expansion project contributing 93,100 tonnes of production. The new processing plant is ramping up strongly, with mill throughput of 92% of design capacity achieved during the quarter. Production performance at Los Bronces was impacted by lower ore grades.

El Soldado's output was 46% higher at 26,100 tonnes due to improved plant performance, higher ore grades and better recovery. Mantos Blancos' production of 26,200 tonnes was 27% lower, impacted by an incident which resulted in a lower ore grade area being mined. Mantoverde's production of 30,300 tonnes was in line with the prior year.

Collahuasi's attributable production of 63,900 tonnes was 38% lower, partially due to expected lower grades during 2012. This was exacerbated by lower recoveries, adverse weather conditions, safety stoppages and a ball mill failure. In response to poor performance at Collahuasi, the joint venture partners have put in place a business improvement plan, including assigning joint CEOs from Anglo American and Xstrata and a team of 30 specialists seconded from the three partners to draw up and implement an action plan.

Projects

At Collahuasi, the expansion project to increase concentrator plant throughput to 160,000 tonnes of ore per day equivalent to an annual average production increment of 20,000 tonnes per year of copper over the estimated life of mine, remains on schedule for 2013. The pre-feasibility study for the next phase of expansion at Collahuasi is expected to be completed in the second half of 2012, with options to substantially increase annual production from the current levels.

In Peru, the focus continues to be on obtaining the permits required to take the Quellaveco project forward for Board approval. Community engagement has continued through a dialogue table process, with agreement being reached in early June in relation to water usage, environmental responsibility and Anglo American's social contribution over the life of mine. The concept level study for the Michiquillay project was completed in the period and is under review.

Activity at the Pebble project in Alaska continues, with the focus on completing a pre-feasibility study. The draft Bristol Bay Watershed Assessment was released by the Environmental Protection Agency (EPA) in May 2012. The EPA has estimated that the report will be finalised by the end of the year.

Outlook

Full year copper production for 2012 is expected to be higher than 2011, driven by the continued ramp-up to design capacity of the Los Bronces expansion project in the second half. Production at Los Bronces will, however, be impacted by increased waste stripping and lower ore grades. In addition, lower grade and recoveries and repair of the ball mill at Collahuasi will have a negative impact into the second half of the year. Production is expected to continue to increase in 2013, as the Los Bronces expansion project reaches full capacity for the year, and through improved operating performance and ore grades at Collahuasi.

Challenges remain in managing industry-wide input cost pressures, although these will be partially mitigated by the expanded Los Bronces operation's increased production.

Ongoing market concerns arising from uncertainties over the near term outlook for the global economy may lead to short term volatility in the copper price. However, the medium to long term fundamentals for copper remain strong, predominantly driven by robust demand from the emerging economies, ageing mines with ongoing grade decline and a lack of new supply.

NICKEL

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	58	93
EBITDA	72	106
Net operating assets	2,642	2,526
Capital expenditure	89	177
Share of Group operating profit	2%	2%
Share of Group net operating assets	6%	5%

Nickel generated an operating profit of \$58 million, 38% lower than the first half of 2011. Operating profit includes a self insurance recovery of \$57 million but was significantly impacted by a 28% decline in the LME nickel price and inflationary pressures in Venezuela. This was in part offset by a weaker Brazilian real. Operating profit for Barro Alto is capitalised whilst ramp-up continues.

Markets

	6 months	6 months
	ended	ended
	30 June 2012	30 June 2011
Average market prices (c/lb)	836	1,159
Average realised prices (c/lb)	798	1,105

Despite LME price strengthening at the start of 2012, reaching 983 c/lb at the end of January, prices in the first half of the year were lower due to the worsening macroeconomic environment which negatively affected stainless steel production and nickel demand. In combination with the ramp-up of new nickel supply, market fundamentals have worsened during the first half of 2012.

Operating performance

	6 months ended 30 June 2012	6 months ended 30 June 2011
Attributable nickel production (tonnes)	22,900	12,700

Nickel production increased by 80% to 22,900 tonnes owing to the ramp-up of Barro Alto, which produced first metal in March of 2011.

Barro Alto produced 12,000 tonnes during the first half of 2012, including the impact of a one month, Line 1 shutdown in June 2012. Line 1 has ramped up well achieving average feed rates of almost 80% of nominal capacity in the period since the shutdown. In addition, recovery continues to improve and delivery of full capacity rates in early 2013 continues to be targeted.

Loma de Níquel's three remaining concessions (after the cancellation of 13 other concessions) are due to expire in November 2012 and consistent with the prior year, the operation is reflected in the Group's results as if it will close in November. However, discussions with the authorities regarding Anglo American's possible continued operation of the asset are ongoing.

Projects

Jacaré and Morro Sem Boné, both promising unapproved nickel projects in Brazil, continue to be under study. The Jacaré pre-feasibility study commenced in 2012 and exploration is ongoing at Morro Sem Boné.

Outlook

Production of nickel during the second half of the year is expected to be higher as Barro Alto continues to ramp up.

With slower demand than previously expected due to the economic situation and the ramp-up of new production facilities, global nickel supply is expected to increase faster than demand in 2012, leading to an increase in the surplus of supply over demand. On the supply side, however, the delivery of new projects has been slower than expected. In addition, lower nickel prices are leading to production stoppages at some nickel pig iron producers in China which will also lower supply. Most experts forecast the supply surplus to reduce in 2013 due to better demand and lower supply growth. This is expected to lead to a tighter market and moderate improvement in prices.

PLATINUM

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Operating profit	84	542
EBITDA	439	931
Net operating assets	11,668	13,258
Capital expenditure	356	410
Share of Group operating profit	2%	9%
Share of Group net operating assets	26%	29%

Platinum recorded an operating profit of \$84 million, an 85% decrease, primarily driven by lower sales volumes and weaker realised prices. The operating profit of \$84 million also reflects the recognition of the inventory revaluation following the annual physical count. On a month to month basis, and in line with industry practice, Platinum's metal inventory is estimated, with an annual physical stocktake undertaken each year in February to validate theoretical inventory levels. In 2012, Platinum recorded a pre-tax gain of \$172 million compared to theoretical stock levels, in contrast to a gain of \$61 million in 2011.

Refined platinum production and sales volume decreased by 13% and 21% respectively. This was partially offset by a weaker average rand against the dollar. Cash operating costs per equivalent refined platinum ounce increased by 11% compared with the first half of 2011, primarily due to increases in the costs of labour, electricity and electrical components, diesel and reagents.

Markets

Global demand for platinum during the first half of 2012 was marginally weaker than expected. Firmer jewellery demand stimulated by current depressed price levels was unable to offset weak autocatalyst and investment demand. Industrial demand for platinum remained flat as expected.

Labour and safety related stoppages in South Africa reduced planned supply of refined platinum from South Africa in the first half of 2012, as did production curtailment at a number of unprofitable mines. Despite the reduction in supply forecasts for 2012, platinum metal investment sentiment and prices remain poor.

Palladium demand remained firm as growth in demand for gasoline vehicles continues and expectations of a deficit market provided price support. Rhodium demand remained weak, and a reversal of substitution implemented during periods of historic high prices remains unlikely.

Autocatalysts

Ongoing economic uncertainty in Europe continued to impact demand for new vehicles, with sales approximately 7% below those in the first half of 2011. European autocatalyst demand represents approximately 47% of global demand, and platinum loading per catalyst, particularly in light duty diesel vehicles in Europe, continues to increase ahead of the Euro 6 emissions limits commencing in September 2014.

Supply of platinum and palladium from recycled autocatalysts increased at a slower rate than in 2011 as the distortions that resulted from scrappage incentive schemes have largely worked their way out of the supply system.

Industrial

Gross platinum demand for industrial applications is not expected to increase in 2012. The record demand in 2011, driven by delayed consumption, is unlikely to be repeated. Indications in 2012 are that industrial demand is flat, with potential for further weakness in the second half.

Jewellery

Jewellery demand remained firm during the first half of the year with China benefiting most from the current low price as strong demand from manufacturers on price dips continues. Platinum jewellery demand continues to benefit from platinum trading at a discount, of over \$100/oz, to gold. Improved confidence in platinum jewellery by Chinese and Hong Kong retail brands has resulted in increased platinum stock levels in both existing and newly opened stores.

Investment

Platinum investment demand in the first half of 2012 remained muted as ongoing macroeconomic uncertainty maintained negative investor sentiment. Reduced participation in non-visible or over-the-counter metal trade continues to depress prices which, in turn, reduces demand for Exchange Traded Funds.

Operating performance

Equivalent refined platinum production(1) for the first half of 2012 was 1.18 million ounces, an increase of 1% when compared to the first half of 2011.

Own mines, including Western Limb Tailings Retreatment, produced 802,600 equivalent refined platinum ounces, an increase of 5% compared with the first half of 2011. The Rustenburg Complex mines increased output by 42,900 ounces or 17%. Increases in output were also recorded at Dishaba, Union South and Unki mines. This improvement in underground mines performance was as a result of a reduction in the scope and duration of regulator imposed safety stoppages, successful ramp-up of Khuseleka 2 shaft and productivity improvements. Mogalakwena mine output was 160,200 platinum ounces, 9% higher than the first half of 2011 due to improved concentrator recoveries. The increased production was partly offset by lower volumes from Union North, Thembelani and Tumela mines.

Refined platinum production decreased by 13% to 1.03 million ounces in the first half of 2012 compared to the same period in 2011 despite higher output from mining operations. This was due to planned annual maintenance at the converter plant in Rustenburg, completed by the end of March 2012, experiencing operational and equipment related difficulties upon restart. These difficulties, however, have been resolved and the furnace matte converter in June 2012 exceeded the previous monthly record by 5%. Delayed production is expected to be processed during the third quarter of 2012 as the converter plant reached steady state operating level shortly after the completion of maintenance.

Five employees lost their lives during the period and Platinum extends its sincere condolences to their families, friends and colleagues. The causes of the fatalities include falls of ground, tramming and transport related incidents. Loss of life in the workplace is unacceptable. Our safety performance has improved since 2007, and we have reduced fatalities and the lost-time-injury frequency rate by 72% and 42% respectively. While our safety strategy is still sound, we continue to review and adjust it in the pursuit of zero harm, to ensure that we specifically target the major causes of injuries and fatalities. We continue to work relentlessly with our partners in government and our workforce to implement more effective means of addressing major risks and non-compliance with standards. The journey to zero harm remains our key strategic objective.

Projects

Capital expenditure for the first half of 2012 amounted to \$356 million, a 13% decrease (flat in rand terms) on the comparative period in 2011. An amount of \$171 million was spent on projects, \$146 million on stay-inbusiness capital and \$39 million on waste stripping at Mogalakwena Mine.

The majority of project capital expenditure for the first half of 2012 was invested on the Twickenham mine (\$45 million excluding pre-production costs), Unki mine (\$12 million) and the Khuseleka ore replacement project (\$11 million).

The Bathopele 5 and slag cleaning furnace 2 projects have recently entered implementation phase and are progressing on schedule. The Thembelani 2 project has been stopped and a co-extraction project study of the resource is currently under way, with a scheduled completion period of three years.

⁽¹⁾ Equivalent ounces are mined ounces expressed as refined ounces.

Outlook

The main objective of the strategic review announced in February 2012 is to establish a long term portfolio with sustainable competitive advantage that will deliver through the cycle value for shareholders and stakeholders. The review covers the entire value chain, from overhead and indirect costs, resources to mining to processing, marketing and commercial strategy, as well as the shape and size of portfolio which will leverage Platinum's industry leading resource base. The portfolio review is expected to be completed by the end of the year.

Since the start of the year, the operating environment has deteriorated further. The rand basket price is under pressure due to the weaker global economic environment, mining inflation has remained above the South African consumer price index and labour unrest has increased across the industry presenting additional challenges.

We have taken swift and disciplined measures to preserve Platinum's balance sheet position and support ongoing operations.

Platinum, together with its joint venture partner, has suspended production at Marikana mine and placed the operation on care and maintenance. Other joint venture operations are under review. We are also considering the selective and opportunistic exit from some marginal assets.
The Platinum project portfolio is under review to ensure effective capital allocation and appropriate prioritisation of projects. In February, we announced a cut in our 2012 capital expenditure target from \$1.2 billion to \$1.0 billion. In light of the continued market volatility and uncertainty, this is being further reduced by \$100 million to an estimated \$900 million for the full year. We will also continue to focus on asset optimisation and supply chain management and increasing production from lower cost mines like Mogalakwena.
To conserve cash further, Platinum has also embarked on a programme to review overhead costs. Significant cuts will be made to overhead costs over the next 12 to 18 months. As well as reducing costs, the review is intended to position the organisation appropriately ahead of any portfolio changes and to simplify current ways of working.
Platinum is also reviewing its marketing and commercial strategy, having identified a number of opportunities to match its product offering better to the needs of current and potential customers and improve its market intelligence and market development initiatives. We expect to see incremental benefits develop over the next two years.

Under the auspices of the tripartite Mining Industry Growth Development and Employment Task Team (MIGDETT), the stakeholders in the South African Platinum Group Metals mining industry have established a Platinum Task Team to investigate and action proposals on how to assist the sector weather the short term challenges that the industry faces and, in parallel, develop a common strategy for promoting the sustainable growth and transformation of the sector in the long term.

As a result of further market deterioration, we are now planning on total refined production of between 2.4 and 2.5 million platinum ounces for 2012, but will continue to monitor market conditions closely with a view to reacting to further soft market demand or to take advantage of any upturns in demand in the short term. Given the fixed-cost nature of the business and ongoing input cost inflation, offset by the significant costcutting efforts by management highlighted above, we believe that unit costs for the full year will be able to be contained to R15,000 per equivalent refined platinum ounce.

DIAMONDS

\$ million (unless otherwise stated)	6 months ended 30 June 2012	6 months ended 30 June 2011
Share of associate's operating profit	250	450
EBITDA	306	517
Group's associate investment in De Beers(1)	2,382	2,234
Share of Group operating profit	7%	7%

(1) Excludes shareholder loans of \$309 million (30 June 2011: \$315 million)

Anglo American's recorded share of operating profit from De Beers of \$250 million, was 44% lower than the first half of 2011 as prices moderated from record levels achieved previously. De Beers continues to focus on scheduled maintenance and waste stripping activities in light of lower demand.

All regulatory consents have been granted in relation to Anglo American's proposed acquisition of Central Holdings Ltd's (representing the Oppenheimer family interests) 40% interest in De Beers. The Government of the Republic of Botswana is expected to indicate its intention regarding its pre-emption rights within the third quarter of 2012 and accordingly it is anticipated that the transaction will close during the same quarter.

Markets

De Beers Group sales (including the sales of rough diamonds by the Diamond Trading Company (DTC)) for the first half of 2012 decreased from \$3.9 billion in 2011 to \$3.3 billion, primarily as a result of lower demand for rough diamonds and changing product requirements from Sightholders. After a very strong first half of 2011, the difficult trading conditions experienced during the fourth quarter in 2011 continued, as expected, during the first half of 2012. While consumer demand for polished diamonds remained relatively healthy, Sightholder demand was impacted by increased stock in the cutting centres, tightening liquidity and challenging conditions in India. However, early indications are that the US market continued to perform well, and the Chinese market, while slowing considerably, still showed strong positive growth.

Operating performance

De Beers continued to have some success in the first half of 2012 in reducing its lost-time-injury frequency rate. However, safety remains the first priority and, subsequent to a slope failure at Debswana's Jwaneng mine, management suspended all operations in the pit to conduct a comprehensive review of procedures and risks; pit operations have now resumed, albeit slowly.

In the first half of 2012, De Beers' production decreased by 13% to 13.4 million carats. In light of prevailing rough diamond market trends, and in keeping with the company's stated production strategy from the fourth quarter of 2011, operations continued to focus on maintenance and waste stripping backlogs. This strategy has enabled De Beers to meet Sightholder demand for rough diamonds while gradually positioning the mines for future increases in demand.

In downstream activities, Forevermark (the diamond brand owned by the De Beers family of companies) continues to grow, particularly in the core markets of China, Japan, India and the US. The brand has also launched in South Africa, Canada and the UAE this year, and is on track for the ambitious growth targets planned.

De Beers Diamond Jewellers saw growth in its core jewellery market but saw a decline in the high-end market, reflecting overall retail trends. De Beers' retail network expansion continues with plans to open three new stores in China before the end of the year.

Projects

Debswana's Jwaneng mine Cut-8 extension project is progressing satisfactorily, on schedule and on budget, with infrastructure construction 98% complete.

In South Africa, De Beers Consolidated Mines' (DBCM) Venetia Underground Project is progressing through the final approvals and regulatory assurances.

In Namibia, Namdeb is now ramping up production at Elizabeth Bay mine.

In Canada, the Gahcho Kué project permitting process is on schedule.

Outlook

De Beers expects trading conditions in the mid-stream to remain challenging during the second half of 2012. De Beers will continue to produce in line with Sightholder demand and invest in stimulating and capturing consumer demand growth.

Provided there are no unforeseen economic shocks, De Beers expects to see moderately positive growth in global diamond jewellery sales for the full year 2012 – albeit at relatively modest levels, especially when compared to the exceptional growth levels seen in 2011. In the short term, the US, China, the Gulf and Japan are expected to contribute the bulk of the growth, while India and Europe are expected to remain weak.

In the long term, the fundamentals of the diamond industry remain strong as demand will continue to outstrip supply.

OTHER MINING AND INDUSTRIAL

	6 months	6 months
\$ million	ended	ended
(unless otherwise stated)	30 June 2012	30 June 2011
Operating profit	180	136
Copebrás	29	54
Catalão	45	21
Amapá(1)	112	45
Tarmac	(24)	(22)
Scaw Metals	28	27
Zinc	–	20
Projects and corporate	(10)	(9)
EBITDA	278	247
Net operating assets	3,504	4,293
Capital expenditure	109	88
Share of Group operating profit	5%	2%
Share of Group net operating assets	8%	9%

(1) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align with current year presentation.

Other Mining and Industrial – Copebrás and Catalão

Markets

Copebrás

Fertiliser demand is expected to increase in 2012 reflecting the favourable exchange ratios between fertiliser and commodity prices and the higher product availability supported by higher year-end inventories in 2011. Dicalcium phosphate sales are expected to be higher as customers build their stocks.

Catalão

A deteriorating macroeconomic environment in Europe and Japan is suppressing niobium demand in these regions and, in turn, prices. This decrease in demand has been partially offset by spot sales in other regions, such as South Korea and India. China, however, remains the main driver of demand globally and is likely to drive near term pricing. In spite of the increased competition and pressure on prices, Catalão has managed to allocate all produced tonnages profitably.

Operating performance

Copebrás

Operating profit decreased to \$29 million, 46% down on the previous year. This was primarily due to lower international fertiliser prices combined with the weakening of the Brazilian real, and increased labour costs (reflecting new union agreements).

Catalão

Catalão generated an operating profit of \$45 million, a 114% increase on the previous year. Sales volumes of niobium were also 31% higher. This was primarily attributable to an increase in production due to better performance at the tailings plant and improvements in the concentration process at the Boa Vista mine. Production costs have improved due to lower aluminium and power prices and more efficient use of consumables, combined with the impact of higher production.

Projects

Catalão

The Boa Vista Fresh Rock (BVFR) project continued to progress with an additional tranche of capital expenditure approved in June 2012. The existing plant will be adapted to process new rock instead of oxide

ore, leading to an increase in production capacity to approximately 6,500 tonnes of niobium per year from 3,900 tonnes produced in 2011.

Outlook

Copebrás

The continuing healthy prices for grain encouraged farmers to bring forward fertiliser purchases during the first half of the year. These positive prices are expected to be sustained during the second half of 2012, stimulating fertiliser demand worldwide. International fertiliser prices started to recover from May as a consequence of strong demand in Brazil and the beginning of demand in the US and India for summer crops.

Catalão

Production is expected to decline in the second half of 2012 as a result of lower grade and recovery due to lower quality ore from the Boa Vista mine. In addition, tailings production is expected to decrease as a result of lower niobium grade contained within the phosphate tailings.

The niobium market is expected to remain under pressure due to a decrease in demand impacting price as well as sales volumes.

Other Mining and Industrial – Amapá, Tarmac and Scaw

Amapá

Amapá generated an operating profit of \$112 million, an increase of \$67 million on the first half of 2011. The higher profit was primarily due to the reversal of penalty provisions, which were in place at the end of 2011, as a result of contract re-negotiations.

Production increased significantly, mainly due to higher mass recovery in the beneficiation plant as a result of improved stability of the plant. In addition to improved production, higher sales were achieved as a result of lower delays associated with transportable moisture limits.

The favourable impact of improved production and sales, however, was more than offset by a sharp decrease in sales prices during 2012 compared to the same period last year. Tight cost control and improved operating efficiencies are in place to mitigate the effect of the decrease in selling prices.

Anglo American has transformed the operational performance of Amapá since it acquired the asset in 2008, increasing production from 1.2 Mt in 2008 to 4.8 Mt in 2011 and an expected 5.5 Mt in 2012 (first six months 2012: 3.0 Mt). As part of our regular evaluation of our portfolio of assets in order to maximise shareholder value, however, we are currently exploring the possibility of divesting of our stake in the Amapá system – an asset that we have always maintained we do not envisage holding over the long term.

Tarmac

Tarmac reported an operating loss of \$24 million, compared to a loss of \$22 million in the first half of 2011. Tarmac's EBITDA was positive at \$37 million, 21% lower than the same period last year.

Quarry Materials

Price increases, and further improvements in the use of recycled asphalt material in the UK Quarry Materials business, have mitigated the impact that increased oil costs had in the first half on bitumen used in asphalt. Cement production levels have also been held up through maximising operational efficiencies. The market continues to decline, however, with weak private sector demand reducing concrete and aggregates volumes in the first half and reduced public spend on road building and repairs adversely affecting asphalt volumes.

The business continues to identify performance improvements, despite the challenging outlook for 2012, which is characterised by weaker than expected private sector growth and reduced public sector spending.

Building Products

An improvement in performance has been driven by strong volume growth in aircrete blocks, an increase in premium product sales on bagged aggregates, and the production of sleepers to service the Network Rail contract. Additional improvements in financial performance have arisen from actions taken in 2011 which include the closure of the Precast businesses and the asset impairment review.

However, performance has been eroded by wet weather during the second quarter of 2012 which has caused disruption in building activity and a reduction in retail sales affecting sales volumes.

The general market remains weak which is resulting in a very competitive pricing environment to secure the limited sales volumes available. Cost reduction projects and improvements in operating efficiencies are high on the agenda to mitigate the impact of lower sales.

Although a number of initiatives are in progress to improve performance, the short term market outlook remains difficult.

Scaw Metals

Scaw Metals generated an operating profit of \$28 million, a 4% increase on prior year, largely as a result of improved trading conditions in the foundry businesses partly offset by weaker trading conditions within grinding media. The rolled products business continues to suffer from weak demand and low margins. The effect of cost containment and internal sales has seen a reduction in rolled products loss compared to the first six months of 2011.

Cast products showed a marked improvement, owing to increased demand and market pricing, assisted by a weaker rand. Margins widened as the benefits of the turnaround strategy started to be realised. Grinding media showed a decrease in operating profit compared to prior year due to lower demand from the mining sector owing to decreased activity as a result of strike actions. Wire rod products' performance decreased from the prior year on the back of weak market conditions in the mining and construction sector. Total production of steel products was 319,100 tonnes, a decrease of 10% over the prior year.

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CONDENSED FINANCIAL STATEMENTS

for the six months ended 30 June 2012

Consolidated income statement

for the six months ended 30 June 2012

		6 months ended 30.06.12 6 months ended 30.06.11					Year ended 31.12.11
US\$ million	Note	Before special items and remeasure ments	Special items and remeasure ments (note 4)	Total	Before special items and remeasure ments	Special items and remeasure ments (note 4)	Total	Before special items and remeasure ments	Special items and remeasure ments (note 4)	Total
Group revenue	2	13,678	–	13,678	15,237	–	15,237	30,580	–	30,580
Total operating costs		(10,437)	(452)	(10,889)	(10,057)	303	(9,754)	(20,912)	(229)	(21,141)
Operating profit from subsidiaries and joint ventures Non-operating special items	2 4	3,241 –	(452) (39)	2,789 (39)	5,180 –	303 417	5,483 417	9,668 –	(229) 183	9,439 183
Share of net income from associates	2	324	(9)	315	593	12	605	978	(1)	977
Total profit from operations and associates		3,565	(500)	3,065	5,773	732	6,505	10,646	(47)	10,599
Investment income		316	–	316	340	–	340	668	–	668
Interest expense		(377)	–	(377)	(348)	–	(348)	(695)	–	(695)
Other financing (losses)/gains		(77)	15	(62)	28	46	74	7	203	210
Net finance (costs)/income	7	(138)	15	(123)	20	46	66	(20)	203	183
Profit before tax		3,427	(485)	2,942	5,793	778	6,571	10,626	156	10,782
Income tax expense	8	(954)	(54)	(1,008)	(1,696)	140	(1,556)	(2,741)	(119)	(2,860)
Profit for the financial period		2,473	(539)	1,934	4,097	918	5,015	7,885	37	7,922
Attributable to:
Non-controlling interests		782	(55)	727	977	50	1,027	1,765	(12)	1,753
Equity shareholders of the Company		1,691	(484)	1,207	3,120	868	3,988	6,120	49	6,169
Earnings per share (US\$)
Basic	9	1.38	(0.40)	0.98	2.58	0.72	3.30	5.06	0.04	5.10
Diluted	9	1.35	(0.38)	0.97	2.47	0.68	3.15	4.85	0.04	4.89

Consolidated statement of comprehensive income

for the six months ended 30 June 2012

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Profit for the financial period	1,934	5,015	7,922
Net gain on revaluation of available for sale investments	105	237	115
Net loss on cash flow hedges	(5)	(64)	(94)
Net exchange difference on translation of foreign operations (including associates)	(159)	(283)	(4,060)
Actuarial net gain/(loss) on post employment benefit schemes	76	(18)	(214)
Share of associates' expense recognised directly in equity, net of tax	(1)	(5)	(32)
Tax on items recognised directly in equity	(70)	(48)	24
Net expense recognised directly in equity	(54)	(181)	(4,261)
Transferred to income statement: sale of available for sale investments	–	(11)	(10)
Transferred to income statement: impairment of available for sale investments	33	–	–
Transferred to income statement: cash flow hedges	2	2	5
Transferred to initial carrying amount of hedged items: cash flow hedges	6	35	54
Transferred to income statement: exchange differences on disposal of foreign operations	–	42	45
Tax on items transferred from equity	(1)	(12)	(14)
Total transferred from equity	40	56	80
Total comprehensive income for the financial period	1,920	4,890	3,741
Attributable to:
Non-controlling interests	742	921	1,142
Equity shareholders of the Company	1,178	3,969	2,599

Consolidated balance sheet

as at 30 June 2012

US\$ million	Note	30.06.12	30.06.11	31.12.11
Intangible assets		2,259	2,341	2,322
Property, plant and equipment		41,269	41,433	40,549
Environmental rehabilitation trusts		368	385	360
Investments in associates		5,396	5,301	5,240
Financial asset investments		2,936	3,555	2,896
Trade and other receivables		496	340	437
Deferred tax assets		620	534	530
Other financial assets (derivatives)		721	509	668
Other non-current assets		139	191	138
Total non-current assets		54,204	54,589	53,140
Inventories		3,901	3,770	3,517
Trade and other receivables		3,711	4,430	3,674
Current tax assets		152	270	207
Other financial assets (derivatives)		104	488	172
Cash and cash equivalents	12b	11,249	6,805	11,732
Total current assets		19,117	15,763	19,302
Assets classified as held for sale	14	645	–	–
Total assets		73,966	70,352	72,442
Trade and other payables		(4,500)	(5,068)	(5,098)
Short term borrowings	11,12b	(788)	(1,061)	(1,018)
Provisions for liabilities and charges		(341)	(318)	(372)
Current tax liabilities		(350)	(749)	(1,528)
Other financial liabilities (derivatives)		(190)	(57)	(162)
Total current liabilities		(6,169)	(7,253)	(8,178)
Medium and long term borrowings	11,12b	(12,957)	(12,497)	(11,855)
Retirement benefit obligations		(533)	(566)	(639)
Deferred tax liabilities		(6,082)	(6,059)	(5,730)
Other financial liabilities (derivatives)		(1,125)	(508)	(950)
Provisions for liabilities and charges		(1,866)	(1,747)	(1,830)
Other non-current liabilities		(52)	(83)	(71)
Total non-current liabilities		(22,615)	(21,460)	(21,075)
Liabilities directly associated with assets classified as held for sale	14	(483)	–	–
Total liabilities		(29,267)	(28,713)	(29,253)
Net assets		44,699	41,639	43,189

Equity
Called-up share capital	10	772	738	738
Share premium account		4,357	2,714	2,714
Own shares		(6,709)	(7,051)	(6,985)
Other reserves		(176)	3,548	283
Retained earnings		42,384	37,748	42,342
Equity attributable to equity shareholders of the Company		40,628	37,697	39,092
Non-controlling interests		4,071	3,942	4,097
Total equity		44,699	41,639	43,189

The Condensed financial statements of Anglo American plc, registered number 3564138, were approved by the Board of directors on 26 July 2012 and signed on its behalf by:

Cynthia Carroll René Médori Chief Executive Finance Director

Consolidated cash flow statement

for the six months ended 30 June 2012

US\$ million	Note	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Cash flows from operations	12a	3,201	5,233	11,498
Dividends from associates		165	165	344
Dividends from financial asset investments		33	32	59
Income tax paid		(921)	(1,444)	(2,539)
Net cash inflows from operating activities		2,478	3,986	9,362

Cash flows from investing activities
Purchase of property, plant and equipment	2	(2,322)	(2,595)	(6,203)
Cash inflows from derivatives related to capital expenditure	2	14	267	439
Investments in associates		(30)	(23)	(47)
Net repayment/(advance) of loans granted		46	(24)	22
Interest received and other investment income		164	169	350
Disposal of subsidiaries, net of cash and cash equivalents disposed	13	–	486	514
Sale of interests in joint ventures	13	–	19	19
Other investing activities		7	19	53
Net cash used in investing activities		(2,121)	(1,682)	(4,853)

Cash flows from financing activities
Interest paid		(412)	(424)	(807)
Cash inflows from derivatives related to financing activities		112	53	226
Dividends paid to Company shareholders		(559)	(495)	(818)
Dividends paid to non-controlling interests		(753)	(686)	(1,404)
Repayment of short term borrowings		(272)	(691)	(1,261)
Net receipts of medium and long term borrowings		3,043	457	964
Movements in non-controlling interests		(690)	7	4,964
Tax on sale of non-controlling interest in Anglo American Sur		(1,015)	–	–
Sale of shares under employee share schemes		11	14	20
Purchase of shares by subsidiaries for employee share schemes(1)		(230)	(132)	(367)
Other financing activities		(2)	(12)	(43)
Net cash (used in)/from financing activities		(767)	(1,909)	1,474
Net (decrease)/increase in cash and cash equivalents		(410)	395	5,983

Cash and cash equivalents at start of period		11,732	6,460	6,460
Cash movements in the period		(410)	395	5,983
Effects of changes in foreign exchange rates		(32)	(50)	(711)
Cash and cash equivalents at end of period(2)	12c	11,290	6,805	11,732

(1) Includes purchase of Kumba Iron Ore Limited and Anglo American Platinum Limited shares for their respective employee share schemes. (2) Includes cash and cash equivalents relating to a disposal group, see note 12b.

Consolidated statement of changes in equity

for the six months ended 30 June 2012

US\$ million	Total share capital(1)	Own shares(2)	Retained earnings	Share based payment reserve	Cumulative translation adjustment reserve	Fair value and other reserves(3)	Total equity attributable to equity shareholders of the Company	Non controlling interests	Total equity

Balance at 1 January 2011	3,451	(7,159)	34,305	476	1,474	1,692	34,239	3,732	37,971
Total comprehensive income	–	–	3,969	–	(167)	167	3,969	921	4,890
Dividends payable to Company shareholders	–	–	(495)	–	–	–	(495)	–	(495)
Dividends payable to non-controlling interests	–	–	–	–	–	–	–	(664)	(664)
Issue of shares to non-controlling interests	–	–	–	–	–	–	–	7	7
Equity settled share-based payment schemes	–	108	(31)	(88)	–	–	(11)	(12)	(23)
Other	1	–	–	(6)	–	–	(5)	(42)	(47)
Balance at 30 June 2011	3,452	(7,051)	37,748	382	1,307	1,859	37,697	3,942	41,639
Total comprehensive income	–	–	1,959	–	(3,237)	(92)	(1,370)	221	(1,149)
Dividends payable to Company shareholders	–	–	(339)	–	–	–	(339)	–	(339)
Dividends payable to non-controlling interests	–	–	–	–	–	–	–	(737)	(737)
Changes in ownership interest in subsidiaries	–	–	3,027	–	–	–	3,027	788	3,815
Issue of shares to non-controlling interests	–	–	–	–	–	–	–	9	9
Equity settled share-based payment schemes	–	66	(162)	70	–	–	(26)	(155)	(181)
IFRS 2 charges on black economic empowerment transactions	–	–	102	–	–	–	102	29	131
Other	–	–	7	1	–	(7)	1	–	1
Balance at 31 December 2011	3,452	(6,985)	42,342	453	(1,930)	1,760	39,092	4,097	43,189
Total comprehensive income	–	–	1,291	–	(182)	69	1,178	742	1,920
Dividends payable to Company shareholders	–	–	(559)	–	–	–	(559)	–	(559)
Dividends payable to non-controlling interests	–	–	–	–	–	–	–	(738)	(738)
Conversion of convertible bond (note 11)	1,677	–	185	–	–	(355)	1,507	–	1,507
Changes in ownership interest in subsidiaries	–	–	(631)	–	–	–	(631)	(59)	(690)
Issue of shares to non-controlling interests	–	–	–	–	–	–	–	8	8
Equity settled share-based payment schemes	–	276	(244)	9	–	–	41	21	62
Balance at 30 June 2012	5,129	(6,709)	42,384	462	(2,112)	1,474	40,628	4,071	44,699

(1) Includes share capital and share premium. (2) Own shares comprise shares of Anglo American plc held by the Company (treasury shares), its subsidiaries and employee benefit trusts. Own shares have previously been aggregated with retained earnings. Comparatives have been reclassified to align with current presentation. (3) Includes the convertible debt reserve, available for sale reserve, cash flow hedge reserve, legal reserve, capital redemption reserve and revaluation reserve.

Dividends

	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Proposed ordinary dividend per share (US cents)	32	28	46
Proposed ordinary dividend (US\$ million)	409	339	557

Ordinary dividends payable during the period per share (US cents)	46	40	68
Ordinary dividends payable during the period (US\$ million)	559	495	834

Notes to the Condensed financial statements

1. Basis of preparation

The Condensed financial statements for the six month period ended 30 June 2012 have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting and the requirements of the Disclosure and Transparency Rules (DTR) of the Financial Services Authority (FSA) in the United Kingdom as applicable to interim financial reporting.

The Condensed financial statements represent a 'condensed set of financial statements' as referred to in the DTR issued by the FSA. Accordingly, they do not include all of the information required for a full annual financial report and are to be read in conjunction with the Group's financial statements for the year ended 31 December 2011, which were prepared in accordance with International Financial Reporting Standards (IFRS) adopted for use by the European Union. The financial information for the year ended 31 December 2011 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. This information was derived from the statutory accounts for the year ended 31 December 2011, a copy of which has been delivered to the Registrar of Companies. The auditor's report on these accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis of matter and did not contain a statement under sections 498 (2) or (3) of the Companies Act 2006.

Accounting policies

The Condensed financial statements have been prepared under the historical cost convention as modified by the revaluation of pension assets and liabilities and certain financial instruments.

The accounting policies applied are consistent with those adopted and disclosed in the Group's financial statements for the year ended 31 December 2011, with the exception of certain amendments to accounting standards or new interpretations issued by the International Accounting Standards Board, which were applicable from 1 January 2012. These have not had a material impact on the accounting policies, methods of computation or presentation applied by the Group.

Going concern

The financial position of the Group, its cash flows, liquidity position and borrowing facilities are set out in the Financial review of Group results on pages 11 to 15. The Group's net debt at 30 June 2012 was \$3.1 billion (including related hedges) (30 June 2011: \$6.8 billion; 31 December 2011: \$1.4 billion) representing a gearing level of 6.5% (30 June 2011: 14.0%; 31 December 2011: 3.1%). Further analysis of net debt is set out in note 12 and details of borrowings and facilities are set out in note 11.

The directors have considered the Group's cash flow forecasts for the period to the end of 31 December 2013. The Board is satisfied that the Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities for the foreseeable future. For this reason the Group continues to adopt the going concern basis in preparing its Condensed financial statements.

Non-GAAP measures

Investors should consider non-GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial performance reported in accordance with IFRS. The IFRS results reflect all items that affect reported performance and therefore it is important to consider the IFRS measures alongside the non-GAAP measures. Reconciliations of key non-GAAP data to directly comparable IFRS financial measures are presented in notes 2, 3, 5 and 9 to the Condensed financial statements.

Changes in estimates

Due to the nature of Platinum in-process inventories being contained in weirs, pipes and other vessels, physical counts only take place annually, except in the Precious Metal Refinery which take place once every three years (the latest being in 2010). Consequently, the Platinum business runs a theoretical metal inventory system based on inputs, the results of previous physical counts and outputs. Once the results of the physical count are finalised, the variance between the theoretical count and actual count is investigated and recorded as a change in estimate.

During the six month period to 30 June 2012, the change in estimate following the annual physical count has had the effect of increasing the value of inventory by \$172 million (2011: \$61 million). This resulted in the recognition of an after tax gain in the period of \$124 million (2011: \$44 million).

2. Segmental information

The Group's segments are aligned to the structure of business units based around core commodities. Each business unit has a management team that is accountable to the Chief Executive. The Kumba Iron Ore, Iron Ore Brazil and Samancor business units have been aggregated as the Iron Ore and Manganese segment on the basis of the ultimate product produced (ferrous metals).

Following a strategic review during the six month period to 30 June 2012, Amapá is now managed as part of the Other Mining and Industrial business unit, and accordingly is presented as part of the Other Mining and Industrial segment. It was previously reported as part of the Iron Ore and Manganese segment. Consistent with the Group's financial statements for the year ended 31 December 2011, Peace River Coal is managed as part of the Metallurgical Coal business unit, and accordingly is presented as part of the Metallurgical Coal segment. At 30 June 2011 it was reported within the Other Mining and Industrial segment. Comparatives have been reclassified to align with current presentation.

Catalão and Copebrás, reported in the Other Mining and Industrial segment, are considered core to the Group. Tarmac and Scaw have been identified for divestment, whilst the possibility of divesting the Group's stake in Amapá is being explored. These operations are not considered to be individually significant to the Group and are also presented in the Other Mining and Industrial segment.

The Group's Executive Committee evaluates the financial performance of the Group and its segments principally with reference to operating profit before special items and remeasurements which includes the Group's attributable share of associates' operating profit before special items and remeasurements.

Segments predominantly derive revenue as follows – Iron Ore and Manganese: iron ore, manganese ore and alloys; Metallurgical Coal: metallurgical coal; Thermal Coal: thermal coal; Copper and Nickel: base metals; Platinum: platinum group metals; Diamonds: rough and polished diamonds and diamond jewellery; and Other Mining and Industrial: phosphates, niobium, heavy building materials, steel products and iron ore.

The Exploration segment includes the cost of the Group's exploration activities across all segments, excluding Diamonds.

The segment results are stated after elimination of inter-segment transactions and include an allocation of corporate costs.

Analysis by segment

Revenue and operating profit

			Revenue(1)			Operating profit/(loss)(2)
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Iron Ore and Manganese	3,611	3,989	7,643	1,779	2,462	4,400
Metallurgical Coal	2,006	1,942	4,347	159	501	1,189
Thermal Coal	1,774	1,693	3,722	433	521	1,230
Copper	2,569	2,609	5,144	978	1,401	2,461
Nickel	219	293	488	58	93	57
Platinum	2,582	3,760	7,359	84	542	890
Diamonds	1,506	1,750	3,320	250	450	659
Other Mining and Industrial	2,138	2,256	4,520	180	136	315
Exploration	–	–	–	(72)	(46)	(121)
Corporate Activities and Unallocated Costs	3	2	5	(125)	(36)	15
Segment measure	16,408	18,294	36,548	3,724	6,024	11,095
Reconciliation:
Less: Associates	(2,730)	(3,057)	(5,968)	(483)	(844)	(1,427)
Operating special items and remeasurements	–	–	–	(452)	303	(229)
Statutory measure	13,678	15,237	30,580	2,789	5,483	9,439

(1) Segment revenue includes the Group's attributable share of associates' revenue. This is reconciled to Group revenue from subsidiaries and joint ventures as presented in the Consolidated

income statement. (2) Segment operating profit is revenue less operating costs before special items and remeasurements, and includes the Group's attributable share of associates' operating profit before special items and remeasurements. This is reconciled to operating profit from subsidiaries and joint ventures after special items and remeasurements as presented in the Consolidated income statement.

Associates' revenue and operating profit

			Associates' revenue			Associates' operating profit/(loss)(1)
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Iron Ore and Manganese	426	491	926	20	106	165
Metallurgical Coal	165	172	372	65	115	207
Thermal Coal	515	507	1,080	214	212	482
Platinum	117	136	269	(66)	(39)	(86)
Diamonds	1,506	1,750	3,320	250	450	659
Other Mining and Industrial	1	1	1	–	–	–
	2,730	3,057	5,968	483	844	1,427
Reconciliation:
Associates' net finance costs				(35)	(26)	(48)
Associates' income tax expense				(121)	(217)	(385)
Associates' non-controlling interests				(3)	(8)	(16)
Share of net income from associates (before special items and remeasurements)				324	593	978
Associates' special items and remeasurements				(11)	17	(5)
Associates' special items and remeasurements tax				3	(4)	1
Associates' non-controlling interests on special items and remeasurements				(1)	(1)	3
Share of net income from associates				315	605	977

(1) Associates' operating profit is the Group's attributable share of associates' revenue less operating costs before special items and remeasurements.

Non-cash items

Significant non-cash items included within operating profit before special items and remeasurements are as follows:

			Depreciation and amortisation(1)		Other non-cash movements(2)
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Iron Ore and Manganese	96	77	153	(18)	43	95
Metallurgical Coal	213	175	375	78	40	104
Thermal Coal	62	65	128	50	13	30
Copper	232	126	289	29	49	124
Nickel	14	13	27	9	2	10
Platinum	335	364	729	39	36	76
Other Mining and Industrial	98	111	225	(64)	22	83
Exploration	–	–	–	1	1	3
Corporate Activities and Unallocated Costs	21	18	41	40	24	54
	1,071(3)	949(3)	1,967(3)	164	230	579

(1) The Group's attributable share of depreciation and amortisation in associates is \$147 million (six months ended 30 June 2011: \$139 million; year ended 31 December 2011: \$286 million) and is split by segment as follows: Iron Ore and Manganese \$37 million (six months ended 30 June 2011: \$15 million; year ended 31 December 2011: \$33 million), Metallurgical Coal \$7 million (six months ended 30 June 2011: \$7 million; year ended 31 December 2011: \$13 million), Thermal Coal \$27 million (six months ended 30 June 2011: \$25 million; year ended 31 December 2011: \$52 million), Platinum \$20 million (six months ended 30 June 2011: \$25 million; year ended 31 December 2011: \$53 million) and Diamonds \$56 million (six months ended

³⁰ June 2011: \$67 million; year ended 31 December 2011: \$135 million). (2) Other non-cash movements include equity settled share-based payment charges and amounts included in operating costs in respect of provisions, excluding amounts recorded within special

items. (3) In addition \$44 million (six months ended 30 June 2011: \$42 million; year ended 31 December 2011: \$84 million) of accelerated depreciation has been recorded within operating special items (see note 4) and \$34 million (six months ended 30 June 2011: \$10 million; year ended 31 December 2011: \$39 million) of pre-commercial production depreciation has been capitalised.

Capital expenditure and net debt

			Capital expenditure(1)			Net debt(2)
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	30.06.12	30.06.11	31.12.11
Iron Ore and Manganese	784	563	1,659	1,377	725	1,277
Metallurgical Coal	370	222	695	(213)	(642)	(211)
Thermal Coal	101	31	190	85	28	81
Copper	488	831	1,570	(803)	(562)	(781)
Nickel	89	177	398	541	547	603
Platinum	356	410	970	192	(77)	20
Other Mining and Industrial	109	88	225	(149)	442	272
Exploration	1	–	1	(10)	(2)	(6)
Corporate Activities and Unallocated Costs	10	6	56	1,842	6,335	119
	2,308	2,328	5,764	2,862	6,794	1,374
Net debt in disposal group				262	–	–
				3,124	6,794	1,374
Remove: cash inflows from derivatives relating to capital expenditure	14	267	439
Purchase of property, plant and equipment	2,322	2,595	6,203
Interest capitalised	139	152	321
Non-cash movements(3)	(44)	30	27
Property, plant and equipment additions in disposal group	(7)	(2)	(2)
Property, plant and equipment additions(4)	2,410	2,775	6,549

(1) Capital expenditure is segmented on a cash basis and is reconciled to balance sheet additions. Cash capital expenditure includes cash flows on related derivatives. (2) Segment net debt includes related hedges and excludes net debt in the disposal group. For a reconciliation of net debt to the balance sheet see note 12b. (3) Includes movements on capital expenditure accruals, movements relating to deferred stripping and the impact of realised cash flow hedges. (4) Capital expenditure on an accruals basis is split by segment as follows: Iron Ore and Manganese \$852 million (30 June 2011: \$827 million; 31 December 2011: \$2,052 million), Metallurgical Coal \$390 million (30 June 2011: \$201 million; 31 December 2011: \$681 million), Thermal Coal \$100 million (30 June 2011: \$37 million; 31 December 2011: \$231 million), Copper \$482 million (30 June 2011: \$975 million; 31 December 2011: \$1,877 million), Nickel \$100 million (30 June 2011: \$201 million; 31 December 2011: \$405 million), Platinum \$379 million (30 June 2011: \$445 million; 31 December 2011: \$1,014 million), Other Mining and Industrial \$96 million (30 June 2011: \$83 million; 31 December 2011: \$232 million), Exploration \$1 million (30 June 2011: nil; 31 December 2011: \$1 million) and Corporate Activities and Unallocated Costs \$10 million (30 June 2011: \$6 million; 31 December 2011: \$56 million).

Segment assets and liabilities

The following balance sheet segment measures are provided for information:

			Segment assets(1)			Segment liabilities(2)		Net segment assets/(liabilities)
US\$ million	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11
Iron Ore and Manganese	13,773	12,720	12,909	(458)	(508)	(482)	13,315	12,212	12,427
Metallurgical Coal	5,779	5,818	5,660	(983)	(1,135)	(968)	4,796	4,683	4,692
Thermal Coal	2,522	2,864	2,650	(780)	(784)	(764)	1,742	2,080	1,886
Copper	9,122	8,112	8,767	(1,060)	(1,062)	(1,124)	8,062	7,050	7,643
Nickel	2,739	2,630	2,655	(97)	(104)	(120)	2,642	2,526	2,535
Platinum	12,652	14,408	12,288	(984)	(1,150)	(1,097)	11,668	13,258	11,191
Other Mining and Industrial	4,180	5,164	4,660	(676)	(871)	(817)	3,504	4,293	3,843
Exploration	3	4	2	(4)	(6)	(3)	(1)	(2)	(1)
Corporate Activities and Unallocated Costs	339	405	375	(498)	(363)	(584)	(159)	42	(209)
	51,109	52,125	49,966	(5,540)	(5,983)	(5,959)	45,569	46,142	44,007
Other assets and liabilities
Investments in associates(3)	5,396	5,301	5,240	–	–	–	5,396	5,301	5,240
Financial asset investments	2,936	3,555	2,896	–	–	–	2,936	3,555	2,896
Deferred tax assets/(liabilities)	620	534	530	(6,082)	(6,059)	(5,730)	(5,462)	(5,525)	(5,200)
Other financial assets/(liabilities) – derivatives	825	997	840	(1,315)	(565)	(1,112)	(490)	432	(272)
Cash and cash equivalents	11,249	6,805	11,732	–	–	–	11,249	6,805	11,732
Other non-operating assets/(liabilities)	1,831	1,035	1,238	(1,787)	(1,841)	(2,715)	44	(806)	(1,477)
Borrowings	–	–	–	(13,745)	(13,558)	(12,873)	(13,745)	(13,558)	(12,873)
Other provisions for liabilities and charges	–	–	–	(798)	(707)	(864)	(798)	(707)	(864)
	73,966	70,352	72,442	(29,267)	(28,713)	(29,253)	44,699	41,639	43,189

(1) Segment assets are operating assets and consist of intangible assets of \$2,259 million (30 June 2011: \$2,341 million; 31 December 2011: \$2,322 million), property, plant and equipment of \$41,269 million (30 June 2011: \$41,433 million; 31 December 2011: \$40,549 million), biological assets of \$17 million (30 June 2011: \$4 million; 31 December 2011: \$17 million), environmental rehabilitation trusts of \$368 million (30 June 2011: \$385 million; 31 December 2011: \$360 million), retirement benefit assets of \$83 million (30 June 2011: \$127 million; 31 December 2011: \$70 million), inventories of \$3,901 million (30 June 2011: \$3,770 million; 31 December 2011: \$3,517 million) and operating receivables of \$3,212 million (30 June 2011: \$4,065 million;

³¹ December 2011: \$3,131 million). (2) Segment liabilities are operating liabilities and consist of non-interest bearing current liabilities of \$3,598 million (30 June 2011: \$4,059 million; 31 December 2011: \$3,982 million), environmental restoration and decommissioning provisions of \$1,409 million (30 June 2011: \$1,358 million; 31 December 2011: \$1,338 million) and retirement benefit obligations of \$533 million (30 June 2011:

\$566 million; 31 December 2011: \$639 million). (3) Investments in associates are split by segment as follows: Iron Ore and Manganese \$922 million (30 June 2011: \$925 million; 31 December 2011: \$936 million), Metallurgical Coal \$269 million (30 June 2011: \$284 million; 31 December 2011: \$294 million), Thermal Coal \$1,013 million (30 June 2011: \$837 million; 31 December 2011: \$932 million), Platinum \$810 million (30 June 2011: \$1,021 million; 31 December 2011: \$848 million) and Diamonds \$2,382 million (30 June 2011: \$2,234 million; 31 December 2011: \$2,230 million).

Revenue by product

The Group's analysis of segment revenue by product (including attributable share of revenue from associates) is as follows:

	6 months ended	6 months ended	Year ended
US\$ million	30.06.12	30.06.11	31.12.11
Iron ore	3,170	3,535	6,830
Manganese ore and alloys	426	491	926
Metallurgical coal	1,606	1,497	3,444
Thermal coal	2,172	2,136	4,621
Copper	2,528	2,536	5,023
Nickel	423	567	948
Platinum	1,548	2,251	4,578
Palladium	423	561	1,076
Rhodium	207	395	703
Diamonds	1,506	1,750	3,320
Phosphates	296	259	571
Heavy building materials	1,100	1,197	2,347
Steel products	445	483	931
Other	558	636	1,230
	16,408	18,294	36,548

Geographical analysis

Revenue by destination and non-current segment assets by location

The Group's geographical analysis of segment revenue (including attributable share of revenue from associates) allocated based on the country in which the customer is located, and non-current segment assets, allocated based on the country in which the assets are located, is as follows:

			Revenue			Non-current segment assets(1)
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	30.06.12	30.06.11	31.12.11
South Africa	1,623	1,799	3,589	14,885	17,194	15,215
Other Africa	285	321	618	353	390	357
Brazil	564	571	1,177	13,257	11,957	12,622
Chile	693	1,143	2,030	7,204	6,358	7,001
Other South America	17	38	50	622	645	655
North America	561	1,040	1,861	730	569	685
Australia	145	200	312	4,319	4,219	4,170
China	3,413	3,109	6,446	–	5	–
India	1,160	1,084	2,343	–	–	–
Japan	2,024	2,381	4,925	–	–	–
Other Asia	1,796	1,624	3,487	32	38	47
United Kingdom (Anglo American plc's country of domicile)	1,661	1,952	3,962	2,123	2,348	2,117
Other Europe	2,466	3,032	5,748	3	51	2
	16,408	18,294	36,548	43,528	43,774	42,871

(1) Non-current segment assets are non-current operating assets and consist of intangible assets and property, plant and equipment.

Revenue and operating profit by origin

Segment revenue and operating profit before special items and remeasurements by origin (including attributable share of revenue and operating profit from associates) have been provided for information:

			Revenue		Operating profit/(loss) before special items and remeasurements
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
South Africa	7,519	9,099	17,855	2,138	3,322	6,059
Other Africa	1,276	1,440	2,763	207	371	501
Brazil	684	642	1,404	116	67	152
Chile	2,569	2,622	5,170	1,052	1,450	2,581
Other South America	643	692	1,364	238	260	512
North America	278	271	615	(54)	72	256
Australia and Asia	2,398	2,319	5,058	204	603	1,318
Europe	1,041	1,209	2,319	(177)	(121)	(284)
	16,408	18,294	36,548	3,724	6,024	11,095

Segment assets and liabilities by location

The Group's geographical analysis of segment assets and liabilities, allocated based on where the assets and liabilities are located, has been provided for information:

			Segment assets(1)			Segment liabilities			Net segment assets
US\$ million	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11
South Africa	18,190	20,746	18,364	(2,360)	(2,717)	(2,620)	15,830	18,029	15,744
Other Africa	423	393	385	(16)	(37)	(20)	407	356	365
Brazil	13,859	12,475	13,188	(293)	(307)	(303)	13,566	12,168	12,885
Chile	8,252	7,411	7,950	(1,042)	(1,053)	(1,101)	7,210	6,358	6,849
Other South America	818	746	808	(44)	(36)	(48)	774	710	760
North America	815	640	782	(97)	(46)	(107)	718	594	675
Australia and Asia	5,659	6,014	5,450	(946)	(1,158)	(953)	4,713	4,856	4,497
Europe	3,093	3,700	3,039	(742)	(629)	(807)	2,351	3,071	2,232
	51,109	52,125	49,966	(5,540)	(5,983)	(5,959)	45,569	46,142	44,007

(1) Investments in associates of \$5,396 million (30 June 2011: \$5,301 million; 31 December 2011: \$5,240 million) are not included in segment assets. The geographical distribution of these investments, based on the location of the underlying assets, is as follows: South Africa \$1,889 million (30 June 2011: \$2,233 million; 31 December 2011: \$1,950 million), Other Africa \$1,117 million (30 June 2011: \$1,043 million; 31 December 2011: \$996 million), Other South America \$1,004 million (30 June 2011: \$817 million; 31 December 2011: \$917 million), North America \$325 million (30 June 2011: \$342 million; 31 December 2011: \$343 million), Australia and Asia \$833 million (30 June 2011: \$788 million; 31 December 2011: \$794 million) and Europe \$228 million (30 June 2011: \$78 million; 31 December 2011: \$240 million).

3. Operating profit and underlying earnings by segment

The following table analyses operating profit (including attributable share of associates' operating profit) by segment and reconciles it to underlying earnings by segment. In 2012 Amapá has been reclassified from the Iron Ore and Manganese segment to Non-core within the Other Mining and Industrial segment to align with internal management reporting. Consistent with the Group's financial statements for the year ended 31 December 2011, Peace River Coal is managed as part of the Metallurgical Coal business unit, and accordingly is presented as part of the Metallurgical Coal segment. Comparatives have been reclassified to align with current presentation.

Underlying earnings is an alternative earnings measure, which the directors consider to be a useful additional measure of the Group's performance. Underlying earnings is profit for the financial period attributable to equity shareholders of the Company before special items and remeasurements and is therefore presented after net finance costs, income tax expense and non-controlling interests. For a reconciliation from 'Profit for the financial period attributable to equity shareholders of the Company' to 'Underlying earnings for the financial period', see note 9.

					6 months ended 30.06.12
US\$ million	Operating profit/(loss) before special items and remeasurements(1)	Operating profit/(loss) after special items and remeasurements	Operating special items and remeasurements (note 4)	Net finance costs, income tax expense and non controlling interests	Underlying earnings
Iron Ore and Manganese	1,779	1,680	99	(1,228)	551
Metallurgical Coal	159	20	139	(49)	110
Thermal Coal	433	433	–	(148)	285
Copper	978	986	(8)	(468)	510
Nickel	58	–	58	(26)	32
Platinum	84	(113)	197	(63)	21
Diamonds	250	254	(4)	(74)	176
Other Mining and Industrial	180	197	(17)	(78)	102
Exploration	(72)	(72)	–	3	(69)
Corporate Activities and Unallocated Costs	(125)	(125)	–	98	(27)
Total	3,724	3,260	464	(2,033)	1,691
Analysed as:
Core operations	3,616	3,135	481	(1,981)	1,635
Non-core operations(2)	108	125	(17)	(52)	56

(1) Operating profit includes attributable share of associates' operating profit which is reconciled to 'Share of net income from associates' in note 2. (2) Non-core operations relate to Amapá, Tarmac and Scaw and, until February 2011, the zinc operations.

3. Operating profit and underlying earnings by segment (continued)

					6 months ended 30.06.11
US\$ million	Operating profit/(loss) before special items and remeasurements(1)	Operating profit/(loss) after special items and remeasurements	Operating special items and remeasurements (note 4)	Net finance costs, income tax expense and non-controlling interests	Underlying earnings
Iron Ore and Manganese	2,462	2,747	(285)	(1,595)	867
Metallurgical Coal	501	501	–	(143)	358
Thermal Coal	521	519	2	(136)	385
Copper	1,401	1,406	(5)	(559)	842
Nickel	93	89	4	(35)	58
Platinum	542	563	(21)	(257)	285
Diamonds	450	458	(8)	(151)	299
Other Mining and Industrial	136	136	–	(46)	90
Exploration	(46)	(46)	–	1	(45)
Corporate Activities and Unallocated Costs	(36)	(38)	2	17	(19)
Total	6,024	6,335	(311)	(2,904)	3,120
Analysed as:
Core operations	5,962	6,273	(311)	(2,877)	3,085
Non-core operations(2)	62	62	–	(27)	35

Net finance Operating Operating Operating costs, income profit/(loss) before profit/(loss) after special items and tax expense and special items and special items and remeasurements non-controlling remeasurements(1) US\$ million remeasurements (note 4) interests Iron Ore and Manganese 4,400 4,321 79 (2,943) Metallurgical Coal 1,189 1,189 – (345) Thermal Coal 1,230 1,231 (1) (328) Copper 2,461 2,460 1 (851) Nickel 57 (15) 72 (34)						Year ended 31.12.11
						Underlying earnings
						1,457
						844
						902
						1,610
						23
	Platinum	890	884	6	(480)	410
Diamonds 659 641 18 (216)						443
Other Mining and Industrial 315 245 70 (140)						175
Exploration (121) (121) – 3						(118)
Corporate Activities and Unallocated Costs 15 13 2 359						374
Total 11,095 10,848 247 (4,975)						6,120
Analysed as:
Core operations 10,968 10,791 177 (4,910)						6,058
Non-core operations(2) 127 57 70 (65)						62

Underlying earnings by origin

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
South Africa	899	1,503	2,726
Other Africa	137	246	326
South America	783	1,110	2,080
North America	(58)	57	218
Australia and Asia	146	456	967
Europe	(216)	(252)	(197)
	1,691	3,120	6,120

4. Special items and remeasurements

Special items are those items of financial performance that the Group believes should be separately disclosed on the face of the income statement to assist in the understanding of the underlying financial performance achieved by the Group. Such items are material by nature or amount to the period's results and require separate disclosure in accordance with IAS 1 Presentation of Financial Statements paragraph 97. Special items that relate to the operating performance of the Group are classified as operating special items and include impairment charges and reversals and other exceptional items, including restructuring costs. Non-operating special items include profits and losses on disposals of investments and businesses, including partial disposals through broad based empowerment schemes, as well as certain adjustments relating to business combinations.

Remeasurements comprise other items which the Group believes should be reported separately to aid an understanding of the underlying financial performance of the Group. This category includes:

unrealised gains and losses on 'non-hedge' derivative instruments open at the period end (in respect of future transactions) and the reversal of the historical marked to market value of such instruments settled in the period. Where the underlying transaction is recorded in the income statement, the realised gains or losses are recorded in underlying earnings in the same period as the underlying transaction for which such instruments provide an economic, but not formally designated, hedge. If the underlying transaction is recorded in the balance sheet, e.g. capital expenditure, the realised amount remains in remeasurements on settlement of the derivative. Such amounts are classified in the income statement as operating when the underlying exposure is in respect of the operating performance of the Group, and otherwise as financing.
foreign exchange impacts arising in US dollar functional currency entities where tax calculations are generated based on local currency financial information and hence deferred tax is susceptible to currency fluctuations. Such amounts are included within income tax expense.

		6 months ended 30.06.12			6 months ended 30.06.11				Year ended 31.12.11
US\$ million	Subsidiaries and joint ventures	Associates(1)	Total	Subsidiaries and joint ventures	Associates(1)	Total	Subsidiaries and joint ventures	Associates(1)	Total
Impairment and related charges	(368)	(16)	(384)	(15)	–	(15)	(154)	–	(154)
Restructuring costs	–	–	–	(10)	–	(10)	(10)	(9)	(19)
Operating special items	(368)	(16)	(384)	(25)	–	(25)	(164)	(9)	(173)
Operating remeasurements	(84)	4	(80)	328	8	336	(65)	(9)	(74)
Operating special items and remeasurements	(452)	(12)	(464)	303	8	311	(229)	(18)	(247)
Disposal of Lisheen and Black Mountain	–	–	–	397	–	397	397	–	397
Disposal of Tarmac businesses	–	–	–	–	–	–	(75)	–	(75)
Platinum BEE transactions and related charges	–	–	–	–	–	–	(141)	–	(141)
Kumba Envision Trust	(39)	–	(39)	–	–	–	–	–	–
Other	–	–	–	20	6	26	2	20	22
Non-operating special items	(39)	–	(39)	417	6	423	183	20	203
Financing special items	–	–	–	–	–	–	–	(9)	(9)
Financing remeasurements	15	1	16	46	3	49	203	2	205
Total special items and remeasurements before tax and non-controlling interests	(476)	(11)	(487)	766	17	783	157	(5)	152
Special items and remeasurements tax	(54)	3	(51)	140	(4)	136	(119)	1	(118)
Non-controlling interests on special items and remeasurements	55	(1)	54	(50)	(1)	(51)	12	3	15
Net total special items and remeasurements attributable to equity shareholders of the Company	(475)	(9)	(484)	856	12	868	50	(1)	49

(1) Relates to the Diamonds segment and Samancor.

Operating special items

Impairment and related charges were \$384 million in the six months ended 30 June 2012 (six months ended 30 June 2011: \$15 million; year ended 31 December 2011: \$154 million). This principally relates to asset write-offs and impairments of \$184 million in the Platinum segment primarily arising from certain operations being placed into care and maintenance and an impairment of \$139 million relating to the Callide operation within Metallurgical Coal. Accelerated depreciation of \$44 million (six months ended 30 June 2011: \$42 million; year ended 31 December 2011: \$84 million) has been recognised at Loma de Níquel (Nickel segment) due to ongoing uncertainty over the renewal of three concessions that expire in 2012 and over the restoration of 13 concessions that have been cancelled.

4. Special items and remeasurements (continued)

Operating remeasurements

Operating remeasurements reflect a net loss of \$80 million (six months ended 30 June 2011: gain of \$336 million; year ended 31 December 2011: loss of \$74 million) principally in respect of non-hedge derivatives related to capital expenditure in Iron Ore Brazil. Derivatives which have been realised during the period had a cumulative net operating remeasurement gain since their inception of \$13 million (six months ended 30 June 2011: \$224 million; year ended 31 December 2011: \$383 million).

Non-operating special items

There were no gains or losses on disposals of businesses in the six months ended 30 June 2012 (six months ended 30 June 2011: gain of \$423 million; year ended 31 December 2011: gain of \$203 million).

Financing remeasurements

Financing remeasurements reflect a net gain of \$16 million (six months ended 30 June 2011: \$49 million; year ended 31 December 2011: \$205 million) and relate to an embedded interest rate derivative, non-hedge derivatives relating to debt and other financing remeasurements.

Special items and remeasurements tax

Special items and remeasurements tax amounted to a charge of \$51 million (six months ended 30 June 2011: credit of \$136 million; year ended 31 December 2011: charge of \$118 million). This relates to a credit for one-off tax items of \$18 million (six months ended 30 June 2011: \$154 million; year ended 31 December 2011: \$137 million), a tax remeasurement charge of \$152 million (six months ended 30 June 2011: credit of \$126 million; year ended 31 December 2011: charge of \$230 million) and a tax credit on special items and remeasurements of \$83 million (six months ended 30 June 2011: charge of \$144 million; year ended 31 December 2011: charge of \$25 million).

The total tax charge relating to subsidiaries and joint ventures of \$54 million (six months ended 30 June 2011: credit of \$140 million; year ended 31 December 2011: charge of \$119 million) comprises a current tax credit of \$10 million (six months ended 30 June 2011: charge of \$21 million; year ended 31 December 2011: charge of \$12 million) and a deferred tax charge of \$64 million (six months ended 30 June 2011: credit of \$161 million; year ended 31 December 2011: charge of \$107 million).

The credit relating to one-off tax items of \$18 million (six months ended 30 June 2011: \$154 million; year ended 31 December 2011: \$137 million), relates principally to the reassessment of deferred tax assets as a result of changes in tax regimes within operating segments.

5. EBITDA

Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items and remeasurements, depreciation and amortisation in subsidiaries and joint ventures and includes attributable share of EBITDA of associates.

	6 months ended	6 months ended	Year ended
US\$ million	30.06.12	30.06.11	31.12.11
By segment
Iron Ore and Manganese(1)	1,912	2,554	4,586
Metallurgical Coal(2)	379	683	1,577
Thermal Coal	522	611	1,410
Copper	1,210	1,527	2,750
Nickel	72	106	84
Platinum	439	931	1,672
Diamonds	306	517	794
Other Mining and Industrial(1)(2)	278	247	540
Exploration	(72)	(46)	(121)
Corporate Activities and Unallocated Costs	(104)	(18)	56
EBITDA	4,942	7,112	13,348

(1) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align

with current presentation. (2) In 2011 Peace River Coal was reclassified from Other Mining and Industrial to Metallurgical Coal to align with internal management reporting. Comparatives have been reclassified to align with current presentation.

5. EBITDA (continued)

EBITDA is reconciled to operating profit, including attributable share of associates, before special items and remeasurements and to 'Total profit from operations and associates' as follows:

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Total profit from operations and associates	3,065	6,505	10,599
Operating special items and remeasurements	452	(303)	229
Non-operating special items	39	(417)	(183)
Associates' net special items and remeasurements	9	(12)	1
Share of associates' net finance costs, tax and non-controlling interests	159	251	449
Operating profit, including associates, before special items and remeasurements	3,724	6,024	11,095
Depreciation and amortisation: subsidiaries and joint ventures	1,071	949	1,967
Depreciation and amortisation: associates	147	139	286
EBITDA	4,942	7,112	13,348

EBITDA is reconciled to 'Cash flows from operations' as follows:

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
EBITDA	4,942	7,112	13,348
Share of operating profit of associates before special items and remeasurements	(483)	(844)	(1,427)
Cash element of operating special items(1)	(12)	(31)	(59)
Share of associates' depreciation and amortisation	(147)	(139)	(286)
Share-based payment charges	133	115	254
Provisions	(115)	(116)	6
Increase in inventories	(620)	(176)	(352)
Increase in operating receivables	(177)	(725)	(264)
(Decrease)/increase in operating payables	(271)	119	457
Deferred stripping	(39)	(78)	(171)
Other adjustments	(10)	(4)	(8)
Cash flows from operations	3,201	5,233	11,498

(1) Includes cash outflows related to prior year operating special items.

6. Exploration expenditure

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
By commodity
Iron ore	7	1	5
Metallurgical coal	4	1	5
Thermal coal	3	4	9
Copper	16	10	27
Nickel	16	9	26
Platinum group metals	2	2	5
Central exploration activities	24	19	44
	72	46	121

7. Net finance (costs)/income

Finance costs and exchange (losses)/gains are presented net of hedges for respective interest bearing and foreign currency borrowings.

The weighted average capitalisation rate applied to qualifying capital expenditure was 3.8% (six months ended 30 June 2011: 4.4%; year ended 31 December 2011: 5.0%).

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Investment income
Interest income from cash and cash equivalents	94	119	239
Other interest income	103	101	194
Expected return on defined benefit arrangements	88	100	199
Dividend income from financial asset investments	35	32	59
	320	352	691
Less: interest income capitalised	(4)	(12)	(23)
Total investment income	316	340	668

Interest expense
Interest and other finance expense	(327)	(305)	(615)
Interest payable on convertible bond	(25)	(34)	(68)
Unwinding of discount on convertible bond	(25)	(34)	(71)
Interest cost on defined benefit arrangements	(98)	(103)	(205)
Unwinding of discount relating to provisions and other non-current liabilities	(45)	(36)	(80)
	(520)	(512)	(1,039)
Less: interest expense capitalised	143	164	344
Total interest expense	(377)	(348)	(695)

Other financing (losses)/gains
Net foreign exchange (losses)/gains	(73)	32	(16)
Net fair value (losses)/gains on fair value hedges	(17)	1	16
Other net fair value gains/(losses)	13	(5)	7
Total other financing (losses)/gains	(77)	28	7
Net finance (costs)/income before remeasurements	(138)	20	(20)
Remeasurements (note 4)	15	46	203
Net finance (costs)/income after remeasurements	(123)	66	183

8. Income tax expense

a) Analysis of charge for the period

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
United Kingdom corporation tax at 24.5% (2011: 26.5%)	36	8	16
South Africa tax	496	721	1,307
Other overseas tax	244	608	1,067
Prior period adjustments	19	(61)	(92)
Current tax(1)	795	1,276	2,298
Deferred tax	159	420	443
Income tax expense before special items and remeasurements	954	1,696	2,741
Special items and remeasurements tax (note 4)	54	(140)	119
Income tax expense	1,008	1,556	2,860

(1) Includes royalties which meet the definition of income tax and are in addition to royalties recorded in operating costs.

8. Income tax expense (continued)

b) Factors affecting tax charge for the period

The effective tax rate for the period of 34.3% (six months ended 30 June 2011: 23.7%; year ended 31 December 2011: 26.5%) is higher (six months ended 30 June 2011: lower; year ended 31 December 2011: the same as) than the applicable weighted average statutory rate of corporation tax in the United Kingdom of 24.5% (six months ended 30 June 2011 and year ended 31 December 2011: 26.5%). The reconciling items are:

	6 months ended	6 months ended	Year ended
US\$ million	30.06.12	30.06.11	31.12.11
Profit before tax	2,942	6,571	10,782
Less: share of net income from associates	(315)	(605)	(977)
Profit before tax (excluding associates)	2,627	5,966	9,805
Tax on profit (excluding associates) calculated at United Kingdom corporation tax rate of 24.5% (2011: 26.5%)	644	1,581	2,598

Tax effects of:
Items not taxable/deductible for tax purposes
Exploration expenditure	19	10	27
Non-taxable/deductible net foreign exchange losses	4	6	24
Non-taxable/deductible net interest income	(9)	(19)	(20)
Other non-deductible expenses	24	72	60
Other non-taxable income	(11)	(27)	(57)
Temporary difference adjustments
Current year losses not recognised	11	25	38
Recognition of losses not previously recognised	(86)	(30)	(103)
Other temporary differences	(17)	(13)	(57)
Special items and remeasurements	171	(343)	77
Other adjustments
Secondary tax on companies and dividend withholding taxes	186	328	407
Effect of differences between local and United Kingdom tax rates	74	(1)	(61)
Prior year adjustments to current tax	19	(61)	(92)
Other adjustments	(21)	28	19
Income tax expense	1,008	1,556	2,860

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 income tax expense. Associates' tax included within 'Share of net income from associates' for the six months ended 30 June 2012 is \$118 million (six months ended 30 June 2011: \$221 million; year ended 31 December 2011: \$384 million). Excluding special items and remeasurements this becomes \$121 million (six months ended 30 June 2011: \$217 million; year ended 31 December 2011: \$385 million).

The effective rate of tax before special items and remeasurements including attributable share of associates' tax for the six months ended 30 June 2012 was 30.3%. This was lower than the equivalent effective rate of 31.8% in the six months ended 30 June 2011 due to the further recognition of previously unrecognised losses. The equivalent effective rate for the year ended 31 December 2011 was 28.3% due to a number of non-recurring factors that include the recognition of previously unrecognised tax losses and the reassessment of certain withholding tax provisions across the Group. In future periods it is expected that the effective tax rate, including associates' tax, will remain above the United Kingdom statutory tax rate.

9. Earnings per share

US\$	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Profit for the financial period attributable to equity shareholders of the Company
Basic earnings per share	0.98	3.30	5.10
Diluted earnings per share	0.97	3.15	4.89
Headline earnings for the financial period(1)
Basic earnings per share	1.15	2.96	4.89
Diluted earnings per share	1.13	2.84	4.69
Underlying earnings for the financial period(1)
Basic earnings per share	1.38	2.58	5.06
Diluted earnings per share	1.35	2.47	4.85

(1) Basic and diluted earnings per share are shown based on headline earnings, a Johannesburg Stock Exchange (JSE Limited) defined performance measure, and underlying earnings, which the directors consider to be a useful additional measure of the Group's performance. Both earnings measures are further explained below.

9. Earnings per share (continued)

beginning of the period presented.

The calculation of basic and diluted earnings per share is based on the following data:

	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Earnings (US\$ million)
Basic earnings, being profit for the financial period attributable to equity shareholders of the Company	1,207	3,988	6,169
Effect of dilutive potential ordinary shares
Interest payable on convertible bond prior to conversion (net of tax)(1)	19	25	50
Unwinding of discount on convertible bond prior to conversion (net of tax)(1)	19	25	52
Diluted earnings	1,245	4,038	6,271
Number of shares (million)
Basic number of ordinary shares outstanding(2)	1,230	1,209	1,210
Effect of dilutive potential ordinary shares(3)
Share options and awards	7	10	10
Convertible bond	47	62	62
Diluted number of ordinary shares outstanding(2)	1,284	1,281	1,282

(1) All outstanding convertible bonds were converted or redeemed during the six months ended 30 June 2012, see note 11. (2) Basic and diluted number of ordinary shares outstanding represent the weighted average for the period. The average number of ordinary shares in issue excludes shares held by employee benefit trusts and Anglo American plc shares held by Group companies. (3) Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all potentially dilutive ordinary shares from the

In the six months ended 30 June 2012 there were 6,442,855 share options (six months ended 30 June 2011: 188,733; year ended 31 December 2011: 270,095) which were potentially dilutive but were not included in the calculation of diluted earnings per share because they were anti-dilutive.

Underlying earnings is presented after non-controlling interests and excludes special items and remeasurements (see note 4). Underlying earnings is distinct from 'headline earnings', which is a JSE Limited defined performance measure.

The calculation of basic and diluted earnings per share, based on headline and underlying earnings, uses the following earnings data:

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Profit for the financial period attributable to equity shareholders of the Company	1,207	3,988	6,169
Operating special items	246	–	70
Operating special items – tax	(15)	–	–
Operating special items – non-controlling interests	(29)	–	–
Non-operating special items	–	(423)	(347)
Non-operating special items – tax	–	40	36
Non-operating special items – non-controlling interests	–	2	–
Financing special items	–	–	9
Tax special items	–	(24)	(24)
Headline earnings for the financial period	1,409	3,583	5,913
Operating special items(1)	138	25	103
Operating remeasurements	80	(336)	74
Non-operating special items(2)	39	–	144
Financing remeasurements	(16)	(49)	(205)
Special items and remeasurements tax	66	(152)	106
Non-controlling interests on special items and remeasurements	(25)	49	(15)
Underlying earnings for the financial period	1,691	3,120	6,120

(1) Includes onerous contract provisions, accelerated depreciation and related charges. (2) Includes Kumba Envision Trust charge (2011: Platinum BEE transactions and related charges).

10. Called-up share capital

		30.06.12	30.06.11			31.12.11
	Number of shares	US\$ million	Number of shares	US\$ million	Number of shares	US\$ million
Called-up, allotted and fully paid:
5% cumulative preference shares of £1 each	50,000	–	50,000	–	50,000	–
Ordinary shares of 5486/91 US cents each	1,405,454,933	772	1,342,964,288	738	1,342,967,458	738

In the six months ended 30 June 2012, 3,534 ordinary shares of 5486/91 US cents each were allotted to certain nonexecutive directors by subscription of their after tax directors' fees (six months ended 30 June 2011: 2,317 ordinary shares; year ended 31 December 2011: 5,487 ordinary shares).

In addition, 62,483,941 ordinary shares of 5486/91 US cents each were allotted upon the conversion of Anglo American plc convertible bonds due 2014 (six months ended 30 June 2011 and year ended 31 December 2011: 29,257), see note 11.

In the event of winding up, the holders of the cumulative preference shares will be entitled to the repayment of a sum equal to the nominal capital paid up, or credited as paid up, on the cumulative preference shares held by them and any accrued dividend, whether such dividend has been earned or declared or not, calculated up to the date of the winding up.

11. Financial liabilities analysis

An analysis of borrowings, as presented on the Consolidated balance sheet, is set out below:

			30.06.12			30.06.11			31.12.11
US\$ million	Due within one year	Due after one year	Total	Due within one year	Due after one year	Total	Due within one year	Due after one year	Total
Secured
Bank loans and overdrafts	–	–	–	59	362	421	55	276	331
Obligations under finance leases	2	19	21	3	3	6	4	17	21
	2	19	21	62	365	427	59	293	352
Unsecured
Bank loans and overdrafts	602	1,842	2,444	743	1,972	2,715	673	1,722	2,395
Bonds issued under EMTN programme(1)	63	6,051	6,114	100	4,501	4,601	163	4,167	4,330
US bonds	–	4,047	4,047	–	3,300	3,300	–	3,408	3,408
Convertible bond(2)	–	–	–	–	1,467	1,467	–	1,504	1,504
Other loans	121	998	1,119	156	892	1,048	123	761	884
	786	12,938	13,724	999	12,132	13,131	959	11,562	12,521
Total(3)	788	12,957	13,745	1,061	12,497	13,558	1,018	11,855	12,873

(1) Refers to the Euro Medium Term Note programme. (2) All outstanding convertible bonds were converted or redeemed during the six months ended 30 June 2012, see below. (3) Excludes secured borrowings relating to a disposal group, see note 14.

The Group had the following undrawn committed borrowing facilities at the period end:

US\$ million	30.06.12	30.06.11	31.12.11
Expiry date
Within one year(1)	2,186	2,072	1,781
Greater than one year, less than two years	1,248	1,907	1,268
Greater than two years, less than five years	4,527	4,904	5,294
Greater than five years	–	88	76
	7,961	8,971	8,419

(1) Includes undrawn rand facilities equivalent to \$1.6 billion (30 June 2011: \$1.7 billion; 31 December 2011: \$1.6 billion) in respect of a series of facilities with 364 day maturities which roll automatically on a daily basis, unless notice is served.

Net receipts of medium and long term borrowings were \$3,043 million (six months ended 30 June 2011: \$457 million; year ended 31 December 2011: \$964 million) and net repayments of short term borrowings were \$272 million (six months ended 30 June 2011: \$691 million; year ended 31 December 2011: \$1,261 million) as disclosed in the Consolidated cash flow statement.

11. Financial liabilities analysis (continued)

Corporate bonds

In the six months ended 30 June 2012, the Group issued corporate bonds with a US\$ equivalent value of \$2.8 billion in the US, European and South African markets. These included \$600 million 2.625% senior notes due 2017, €750 million 3.50% guaranteed notes due 2022 and €750 million 2.75% guaranteed notes due 2019 issued under the EMTN programme, and R600 million floating rate notes at JIBAR + 1.38% due 2017 and R1.4 billion 9.27% fixed rate notes due 2019 issued under the South African Domestic Medium Term Note programme.

Convertible bond

On 23 March 2012, Anglo American plc gave notice that it had exercised its right to redeem its \$1.7 billion of convertible bonds (the Bonds) on 22 May 2012 (the optional redemption date). The Bonds were due to mature on 7 May 2014. On 13 April 2012, following the announcement of the recommended 2011 full year dividend, and in accordance with the terms and conditions of the Bonds, the conversion price was adjusted from £18.36 to £18.02.

Of the \$1,700 million Bonds issued, \$1,678 million were converted to equity prior to the optional redemption date, including \$1 million converted in 2011, and the remaining \$22 million were redeemed by the Group. As a result, 62.5 million ordinary shares were issued and the financial liability of \$1,529 million, representing the notional value of the outstanding Bonds of \$1,699 million less unamortised discount of \$170 million, was derecognised. The balance in the convertible debt reserve of \$355 million, which related to the Bonds, was transferred to share premium (\$170 million) and retained earnings (\$185 million).

12. Consolidated cash flow analysis

a) Reconciliation of profit before tax to cash flows from operations

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Profit before tax	2,942	6,571	10,782
Depreciation and amortisation	1,071	949	1,967
Share-based payment charges	133	115	254
Non-operating special items	39	(417)	(183)
Operating and financing remeasurements	69	(374)	(138)
Operating special items	356	(6)	105
Net finance costs/(income) before remeasurements	138	(20)	20
Share of net income from associates	(315)	(605)	(977)
Provisions	(115)	(116)	6
Increase in inventories	(620)	(176)	(352)
Increase in operating receivables	(177)	(725)	(264)
(Decrease)/increase in operating payables	(271)	119	457
Deferred stripping	(39)	(78)	(171)
Other adjustments	(10)	(4)	(8)
Cash flows from operations	3,201	5,233	11,498

b) Reconciliation to the balance sheet

	Cash and cash equivalents			Short term borrowings			Medium and long term borrowings
US\$ million	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11	30.06.12	30.06.11	31.12.11
Balance sheet	11,249	6,805	11,732	(788)	(1,061)	(1,018)	(12,957)	(12,497)	(11,855)
Balance sheet – disposal group(1) (note 14)	41	–	–	(58)	–	–	(245)	–	–
Net debt classifications	11,290	6,805	11,732	(846)	(1,061)	(1,018)	(13,202)	(12,497)	(11,855)

(1) Disposal group balances are shown within 'Assets classified as held for sale' and 'Liabilities directly associated with assets classified as held for sale' on the balance sheet.

12. Consolidated cash flow analysis (continued)

c) Movement in net debt

	Cash and cash	Debt due within	Debt due after	Net debt excluding		Net debt including
US\$ million	equivalents(1)	one year	one year	hedges	Hedges(2)	hedges
Balance at 1 January 2011	6,460	(1,535)	(11,904)	(6,979)	(405)	(7,384)
Cash flow	395	691	(457)	629	(53)	576
Unwinding of discount on convertible bond	–	–	(34)	(34)	–	(34)
Reclassifications	–	(187)	187	–	–	–
Movements in fair value	–	–	(10)	(10)	418	408
Other non-cash movements	–	(10)	(11)	(21)	–	(21)
Currency movements	(50)	(20)	(268)	(338)	(1)	(339)
Balance at 30 June 2011	6,805	(1,061)	(12,497)	(6,753)	(41)	(6,794)
Cash flow	5,588	570	(507)	5,651	(173)	5,478
Unwinding of discount on convertible bond	–	–	(37)	(37)	–	(37)
Disposal of businesses	–	5	–	5	–	5
Reclassifications	–	(590)	590	–	–	–
Movements in fair value	–	–	(254)	(254)	(14)	(268)
Other non-cash movements	–	(8)	(27)	(35)	–	(35)
Currency movements	(661)	66	877	282	(5)	277
Balance at 31 December 2011	11,732	(1,018)	(11,855)	(1,141)	(233)	(1,374)
Cash flow	(410)	272	(3,043)	(3,181)	(112)	(3,293)
Unwinding of discount on convertible bond	–	–	(25)	(25)	–	(25)
Conversion of convertible bond	–	–	1,507	1,507	–	1,507
Reclassifications	–	(111)	111	–	–	–
Movements in fair value	–	–	(88)	(88)	(21)	(109)
Other non-cash movements	–	(9)	(5)	(14)	–	(14)
Currency movements	(32)	20	196	184	–	184
Balance at 30 June 2012	11,290	(846)	(13,202)	(2,758)	(366)	(3,124)

(1) The Group operates in certain countries where the existence of exchange controls may restrict the use of certain cash balances (principally South Africa and Venezuela). These restrictions are

not expected to have a material effect on the Group's ability to meet its ongoing obligations. (2) Derivative instruments that provide an economic hedge of assets and liabilities in net debt are included above to reflect the true net debt position of the Group at the period end. These consist of net current derivative assets of \$56 million (30 June 2011: \$91 million; 31 December 2011: \$82 million) and net non-current derivative liabilities of \$422 million (30 June 2011: \$132 million; 31 December 2011: \$315 million) which are classified within 'Other financial assets (derivatives)' and 'Other financial liabilities (derivatives)' on the balance sheet.

13. Disposals of subsidiaries and joint ventures

There were no disposals of subsidiaries or joint ventures in the six months ended 30 June 2012.

US\$ million	6 months ended 30.06.11	Year ended 31.12.11
Net assets disposed
Property, plant and equipment	110	167
Other non-current assets	53	79
Current assets	431	461
Current liabilities	(39)	(55)
Non-current liabilities	(100)	(108)
Net assets	455	544
Non-controlling interests	(42)	(42)
Net assets disposed	413	502
Cumulative translation differences recycled from reserves	42	45
Net profit on disposals (note 4)	397	337
Net sale proceeds	852	884
Net cash and cash equivalents disposed	(356)	(358)
Accrued transaction costs and similar items	3	3
Net cash inflow from disposals(1)	499	529

(1) Net cash inflow in the six months ended 30 June 2012 was nil in respect of disposals in previous periods (six months ended 30 June 2011: \$6 million; year ended 31 December 2011: \$4 million). Total cash inflows were \$505 million in the six months ended 30 June 2011 and \$533 million in the year ended 31 December 2011. Of this, a net cash inflow of \$486 million related to disposals of subsidiaries and \$19 million related to the sale of interests in joint ventures in the six months ended 30 June 2011, and a net cash inflow of \$514 million related to disposals of subsidiaries and \$19 million related to the sale of interests in joint ventures in the year ended 31 December 2011.

Disposals of subsidiaries during 2011 mainly related to the disposal of Lisheen and a 74% interest in Black Mountain (the Group's remaining zinc operations) and disposals of Tarmac businesses (China, Turkey and Romania) in the Other Mining and Industrial segment.

14. Assets and liabilities held for sale

The following assets and liabilities were classified as held for sale at 30 June 2012. The Group expects to complete the sale of this disposal group within 12 months of this reporting date. There were no assets or liabilities classified as held for sale at 30 June 2011 or 31 December 2011.

US\$ million	30.06.12(1)
Intangible assets	41
Property, plant and equipment	206
Other non-current assets	23
Total non-current assets	270
Inventories	179
Trade and other receivables	155
Cash and cash equivalents	41
Total current assets	375
Total assets	645
Trade and other payables	(115)
Short term borrowings	(58)
Provisions for liabilities and charges	(18)
Total current liabilities	(191)
Medium and long term borrowings	(245)
Provisions for liabilities and charges	(6)
Other non-current liabilities	(41)
Total non-current liabilities	(292)
Total liabilities	(483)
Net assets	162

(1) Relates to the Group's investment in Scaw South Africa (Other Mining and Industrial segment) for which the disposal transaction had not been completed at 30 June 2012.

15. Contingent liabilities

The Group is subject to various claims which arise in the ordinary course of business. Additionally, and as set out in the 2007 demerger agreement, Anglo American and the Mondi Group have agreed to indemnify each other, subject to certain limitations, against certain liabilities. Anglo American has also provided Mitsubishi Corporation LLC (Mitsubishi) with indemnities against certain liabilities as part of the sale of a 24.5% interest in Anglo American Sur SA (AA Sur). Having taken appropriate legal advice, the Group believes that the likelihood of a material liability arising from the indemnities provided is unlikely.

The Group is required to provide guarantees in several jurisdictions in respect of environmental restoration and decommissioning obligations. The Group has provided for the estimated cost of these activities.

No contingent liabilities were secured on the assets of the Group at 30 June 2012, 30 June 2011 or 31 December 2011.

15. Contingent liabilities (continued)

Other

Anglo American Sur SA

Anglo American and Enami, a wholly owned Chilean state controlled minerals company, amended an agreement Anglo American inherited when it acquired AA Sur in 2002. In 2008 the option under this agreement was transferred by Enami to Codelco, the Chilean state copper company. AA Sur is majority owned by the Group and owns the Los Bronces and El Soldado copper mines and the Chagres smelter. The agreement granted Codelco the right, subject to certain conditions and limitations, to acquire up to a 49% interest in AA Sur. The right to exercise the option was restricted to a window that occurred once every three years in the month of January until January 2027. The previous option exercise window was in January 2009.

The calculations of the price at which Codelco could have exercised its rights take account of company profitability over a five year period, shareholder loans and undistributed earnings. Under IAS 39 Financial Instruments: Recognition and Measurement, the fair valuation of an option is required to be performed from the perspective of a market participant in an arm's length transaction and does not take into account specific factors relevant to any individual counterparty. In particular, the IAS 39 valuation does not incorporate any capital gains tax payable by the Group on exercise of the option to Codelco's shareholder, the Chilean government. The valuation also excludes any commercial or strategic benefit to Anglo American in extinguishing the option.

The option's fair value is calculated as the difference between the estimated fair value of the underlying assets to which the option relates and the estimated option price. The estimated fair value of the underlying assets may vary based on a market participant's assumptions at any point in time, including, inter alia, commodity prices, foreign exchange rates and discount rates. In addition, the option price cannot be finalised in advance of the option window and must be estimated based on assumptions about inputs that are subject to significant fluctuations.

Further, Anglo American had a right to sell up to 100% of its interest in AA Sur to a third party at any time prior to the exercise of the option, which would correspondingly reduce any value attributed to the option during the non-exercise period.

Based on a range of scenarios for these key variables, it was concluded that the option had insufficient value to warrant recognition on the balance sheet at 30 June 2011.

In the fourth quarter of 2011, Anglo American disposed of a 24.5% interest in AA Sur to Mitsubishi for \$5.4 billion, as it was entitled to do under the option agreement.

On 22 December 2011 Anglo American filed a writ with the Court of Appeals in Santiago against Codelco for breach of contract. The breach consisted of Codelco's premature attempt to exercise the option outside of a contractual exercise window and Codelco's actions aimed at preventing Anglo American from exercising its contractual rights under the option agreement. The writ seeks to render ineffective the potential future exercise of the option by Codelco and also seeks damages.

In accordance with Anglo American's legal advice, as a result of Codelco's breach of contract, it is no longer entitled to enforce the option to acquire shares of AA Sur and any attempt to do so is ineffective. The Group remains confident that this position will be upheld should the various claims and counter claims proceed to a court judgment. As a liability would only be recognised by the Group where a present obligation, that could be measured reliably, existed at the balance sheet date, no liability has been recognised as at 31 December 2011 or 30 June 2012. If the option over 24.5% of AA Sur had been legally enforceable an option liability of \$2.9 billion would have been recognised by the Group at 31 December 2011. Upon exercise of the option in January 2012 this liability would have been reversed and, in addition, an accounting gain of approximately \$1.0 billion would have been recognised in equity.

The Group remains open to reaching a commercial settlement and has agreed with Codelco to explore the possibility of negotiating an agreement in relation to AA Sur. All legal proceedings are currently suspended during negotiations. To date no settlement has been reached.

15. Contingent liabilities (continued)

Kumba Iron Ore (Kumba)

Sishen Supply Agreement arbitration – ArcelorMittal

A dispute arose between Sishen Iron Ore Company (SIOC) and ArcelorMittal South Africa Limited (ArcelorMittal) in February 2010, in relation to SIOC's contention that the contract mining agreement concluded between them in 2001 had become inoperative as a result of the fact that ArcelorMittal had failed to convert its old order mining rights. This dispute has been referred to arbitration. On 9 December 2011, SIOC and ArcelorMittal agreed to postpone the arbitration until the final resolution of the mining right dispute (see below).

The Interim Pricing Arrangement (IPA) between SIOC and ArcelorMittal expires on 31 July 2012. Letters to commence the negotiations regarding the extension or renewal of the IPA have been exchanged between the parties, and the parties have commenced with negotiations.

21.4% undivided share of the Sishen mine mineral rights

On 3 February 2012 the Department of Mineral Resources (DMR) and Imperial Crown Trading 289 (Pty) Limited (ICT) submitted applications for leave to appeal against the High Court judgment delivered in December 2011. SIOC has noted an application for leave to present a conditional cross appeal, in order to protect its rights. The application for leave to appeal was heard by the High Court on 11 May 2012. The High Court granted the DMR and ICT the leave to appeal at the Supreme Court of Appeal (SCA) and SIOC leave to conditionally cross appeal. It is anticipated that the hearing before the SCA will occur during the first quarter of 2013.

The High Court order does not affect the interim supply agreement between ArcelorMittal and SIOC, which will endure until 31 July 2012 as indicated above.

SIOC will continue to take the necessary steps to protect its shareholders' interests in this regard.

Anglo American South Africa Limited (AASA)

AASA, a wholly owned subsidiary of the Company, is a defendant in 24 separate lawsuits in South Africa, each one on behalf of a former mineworker (or his dependents or survivors) who allegedly contracted silicosis working for gold mining companies in which AASA was a shareholder and to which AASA provided various technical and administrative services. In addition, AASA is a defendant in one lawsuit filed in the High Court in London, England on behalf of 19 former mineworkers, and a second lawsuit which is currently on behalf of 1,106 claimants and is also a 'representative claim' on behalf of all black underground miners in 'Anglo gold mines' who have been certified as suffering from silicosis and related diseases. The Group understands a third claim on behalf of an additional 421 persons has been filed but no details on this claim have been received nor has this claim been served on AASA.

The aggregate amount of the 24 South African claims is less than \$5 million. No specific amount of damages has been specified in the claims filed in England. If these claims are determined adversely to AASA there are a substantial number of additional former mineworkers (or their dependents or survivors) who may seek to bring similar claims or whose claims could become part of the representative claim filed in England. The first trials of the South African claims are not expected before August 2013. AASA is contesting the jurisdiction of the English courts to hear the claims filed against it.

16. Related party transactions

The Group has a related party relationship with its subsidiaries, joint ventures and associates.

The Company and its subsidiaries, in the ordinary course of business, enter into various sales, purchase and service transactions with joint ventures and associates and others in which the Group has a material interest. These transactions are under terms that are no less favourable to the Group than those arranged with third parties. These transactions are not considered to be significant.

Dividends received from associates during the six months ended 30 June 2012 totalled \$165 million (six months ended 30 June 2011: \$165 million; year ended 31 December 2011: \$344 million), as disclosed in the Consolidated cash flow statement.

At 30 June 2012, the Group had provided loans to joint ventures of \$255 million (30 June 2011: \$331 million; 31 December 2011: \$263 million). These loans are included in Financial asset investments. Amounts payable to joint ventures at 30 June 2012 were nil (30 June 2011: \$43 million; 31 December 2011: nil).

In addition to the investments in associates disclosed on the Consolidated balance sheet, the Group had provided loans to associates at 30 June 2012 of \$600 million (30 June 2011: \$621 million; 31 December 2011: \$572 million). These are included in Financial asset investments.

At 30 June 2012, the directors of the Company and their immediate relatives controlled 0.1% (30 June 2011: 0.1%; 31 December 2011: 0.1%) of the voting shares of the Company.

Related party transactions with De Beers

The Group has in prior financial periods entered into various transactions with DB Investments SA and De Beers SA (together De Beers) which were considered to be related party transactions for the purposes of the United Kingdom Listing Authority Listing Rules as a result of the interest in De Beers held by CHL Holdings Limited (CHL) and certain of its subsidiaries in which Mr N. F. Oppenheimer, a director of the Company at the time of these transactions, had a relevant interest for the purpose of the rules. The related party transactions entered into and which continue to be relevant in the current financial period are detailed below.

At 30 June 2012, the amount of outstanding loans owed by De Beers (and included in the loans to associates amount disclosed above) was \$309 million (30 June 2011: \$315 million; 31 December 2011: \$301 million) which includes accrued interest of \$18 million (30 June 2011: nil; 31 December 2011: \$10 million). These loans are subordinated in favour of third party lenders and include:

dividend reinvestment loans of \$133 million (30 June 2011: \$133 million; 31 December 2011: \$133 million) advanced during 2008 and 2009. These loans were interest free for two years from the date of advance and subsequently became interest bearing in line with market rates at the date of the initial reinvestment.
a further shareholder loan of \$158 million (30 June 2011: \$182 million; 31 December 2011: \$158 million) advanced in 2009. This loan was interest free for two years after which it reverted to a rate of interest equal to LIBOR plus 700 basis points. From April 2016, provided all interest payments are up to date, the rate of interest reduces to LIBOR plus 300 basis points. No loan repayments were received from De Beers during the period (30 June 2011: \$45 million including \$2 million of accrued interest; 31 December 2011: \$72 million including \$5 million of accrued interest).

On 4 November 2011, Anglo American announced it had entered into an agreement with CHL and Centhold International Limited (CHL Sellers), together representing the Oppenheimer family interests in De Beers, to acquire up to their 40% interest in De Beers for a total cash consideration of \$5.1 billion, subject to adjustment and conditions as provided for in the agreement (the Transaction).

Under the terms of the existing shareholders' agreement between Anglo American, CHL and the Government of the Republic of Botswana (GRB), the GRB has pre-emption rights in respect of the interests in De Beers to be sold, enabling it to participate in the Transaction and to increase its interest in De Beers, on a pro rata basis, to up to 25%. In the event that the GRB does not exercise pre-emption rights, in whole or in part, Anglo American's interest in De Beers will increase to 85%.

In the event that the GRB exercises its pre-emption rights in full, Anglo American, under the Transaction, would acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American to the sellers would be reduced proportionately.

16. Related party transactions (continued)

In view of the fact that the CHL Sellers are ultimately controlled through intermediary companies by trusts of which Mr N. F. Oppenheimer is a potential discretionary beneficiary and Mr N. F. Oppenheimer has been a director of Anglo American within the 12 months preceding the agreement of the Transaction, the Transaction is categorised as a related party transaction. As a result, the Transaction required the approval of Anglo American shareholders (other than Mr N. F. Oppenheimer and his associates), which was obtained at a general meeting of the Company held on 6 January 2012.

17. Events occurring after the period end

On 6 July 2012, the Group's agreement to purchase up to an additional 40% stake in De Beers from the Oppenheimer family interests became unconditional following the receipt of the final necessary regulatory clearances. The transaction is expected to close in the third quarter of 2012 following completion of the period in which the GRB may elect to exercise their pre-emption rights. Further information in relation to the transaction is set out in the circular posted to the Company's shareholders in December 2011, see note 16.

On 20 July 2012, Anglo American increased its shareholding in Kumba Iron Ore Limited by 4.5% through the exercise of options acquired in 2011 and 2012. This increased the Group's shareholding from 65.2% to 69.7%, for a total cost of \$948 million.

On 24 July 2012, Anglo American agreed to acquire a 58.9% interest in the Revuboè metallurgical coal project in Mozambique from the Talbot Estate for a total cash consideration of approximately \$555 million. The transaction is subject to a number of conditions and is expected to be completed during the third quarter of 2012.

With the exception of the above and the declaration of the 2012 interim dividend, there have been no material reportable events since 30 June 2012.

Responsibility statement

We confirm that to the best of our knowledge:

(a) the Condensed financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and give a true and fair view of the assets, liabilities, financial position and profit of the undertakings included in the consolidation as a whole, as required by DTR 4.2.4 R;
(b) the Half year financial report includes a fair review of the information required by DTR 4.2.7 R (being an indication of important events that have occurred during the first six months of the financial year, and their impact on the Half year financial report, and a description of the principal risks and uncertainties for the remaining six months of the financial year); and
(c) the Half year financial report includes a fair review of the information required by DTR 4.2.8 R (being disclosure of related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or the performance of the Group during that period and any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the Group in the first six months of the current financial year).

By order of the Board

Cynthia Carroll René Médori Chief Executive Finance Director

INDEPENDENT REVIEW REPORT TO ANGLO AMERICAN PLC

We have been engaged by the Company to review the Condensed financial statements in the Half year financial report for the six months ended 30 June 2012 which comprise the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Consolidated cash flow statement, the Consolidated statement of changes in equity and related notes 1 to 17. We have read the other information contained in the Half year financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Condensed financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The Half year financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Half year financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The Condensed financial statements included in this Half year financial report have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (IAS 34), as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the Condensed financial statements in the Half year financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Condensed financial statements in the Half year financial report for the six months ended 30 June 2012 are not prepared, in all material respects, in accordance with IAS 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Deloitte LLP Chartered Accountants and Statutory Auditor London, United Kingdom

26 July 2012

Production statistics

The figures below include the entire output of consolidated entities and the Group's attributable share of joint ventures, joint arrangements and associates where applicable, except for Collahuasi in the Copper segment and De Beers which are quoted on a 100% basis.

	6 months ended	6 months ended	Year ended
	30.06.12	30.06.11	31.12.11
Iron Ore and Manganese segment (tonnes) Kumba Iron Ore(1)

Lump Fines	13,339,600 8,216,100	11,784,300 7,369,600	25,445,100 15,822,500
Total Iron Ore and Manganese segment iron ore production(2)	21,555,700	19,153,900	41,267,600
Samancor(3)
Manganese ore	1,642,600	1,256,700	2,786,800
Manganese alloys(4)	85,200	144,900	300,500

Coal (tonnes)
Metallurgical Coal segment
Australia
Metallurgical – Export	8,001,000	5,699,000	13,253,400
Thermal	5,856,900	6,089,800	13,426,500
	13,857,900	11,788,800	26,679,900
Canada
Metallurgical – Export	587,600	415,100	936,300
Total Metallurgical Coal segment coal production(5)	14,445,500	12,203,900	27,616,200
Thermal Coal segment
South Africa
Thermal – Export	7,917,700	7,945,100	16,546,500
Thermal – Domestic Eskom	16,088,900	17,057,600	35,296,000
Thermal – Domestic other	3,094,100	2,398,600	4,841,600
Metallurgical – Domestic	74,100	163,300	323,400
	27,174,800	27,564,600	57,007,500
Colombia
Thermal – Export	6,057,700	5,147,200	10,751,700
Total Thermal Coal segment coal production(6)	33,232,500	32,711,800	67,759,200
Total coal production	47,678,000	44,915,700	95,375,400
Coal (tonnes)
Metallurgical Coal segment
Australia
Callide	3,530,200	3,657,700	8,038,700
Capcoal	3,165,300	2,017,800	5,047,900
Dawson Complex	2,071,500	1,227,300	3,904,600
Drayton	1,576,300	1,808,500	3,991,900
Foxleigh	954,900	521,300	1,417,100
Jellinbah East	976,200	844,400	1,829,600
Moranbah North	1,583,500	1,711,800	2,450,100
	13,857,900	11,788,800	26,679,900
Canada
Peace River Coal	587,600	415,100	936,300
Total Metallurgical Coal segment coal production(5)	14,445,500	12,203,900	27,616,200
Thermal Coal segment
South Africa
Goedehoop	2,365,500	2,702,100	5,200,800
Greenside	1,181,100	1,444,700	2,853,100
Isibonelo	2,797,000	2,131,900	4,338,200
Kleinkopje	1,853,600	2,136,000	4,400,600
Kriel	3,853,700	3,942,500	8,151,700
Landau	2,045,600	1,929,000	4,171,200
Mafube	877,400	1,109,700	2,313,100
New Denmark	1,512,200	2,331,600	4,812,600
New Vaal	8,405,000	8,503,800	17,399,700
Zibulo(6)	2,283,700	1,333,300	3,366,500
	27,174,800	27,564,600	57,007,500
Colombia
Carbones del Cerrejón	6,057,700	5,147,200	10,751,700
Total Thermal Coal segment coal production	33,232,500	32,711,800	67,759,200
Total coal production	47,678,000	44,915,700	95,375,400

(1) Kolomela commenced commercial production on 1 December 2011. Revenue and related costs associated with 984,700 tonnes of production were capitalised for the year ended 31 December

(2) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align with current presentation. (3) Saleable production. (4) Production includes medium carbon ferro manganese. (5) In 2011 Peace River Coal was reclassified from Other Mining and Industrial to Metallurgical Coal to align with internal management reporting. Comparatives have been reclassified to align with

current presentation. (6) Zibulo commenced commercial production on 1 October 2011. Revenue and related costs associated with 1,333,300 tonnes of production were capitalised for the six months ended 30 June

			6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Total coal production by commodity (tonnes)
Metallurgical
Australia			8,001,000	5,699,000	13,253,400
Canada			587,600	415,100	936,300
South Africa			74,100	163,300	323,400
Total metallurgical coal production			8,662,700	6,277,400	14,513,100
Thermal
Australia			5,856,900	6,089,800	13,426,500
Colombia			6,057,700	5,147,200	10,751,700
South Africa			27,100,700	27,401,300	56,684,100
Total thermal coal production			39,015,300	38,638,300	80,862,300
Total coal production			47,678,000	44,915,700	95,375,400

Copper segment
Collahuasi
100% basis (Anglo American share 44%)
Ore mined		tonnes	23,769,700	23,224,200	45,240,000
Ore processed	Oxide	tonnes	3,876,500	3,686,900	8,075,800
	Sulphide	tonnes	22,292,900	24,387,700	47,747,400
Ore grade processed	Oxide	% Cu	0.9	0.5	0.7
	Sulphide	% Cu	0.8	1.0	1.0
Production	Copper concentrate	dry metric tonnes	492,700	801,600	1,535,800
	Copper cathode	tonnes	18,400	18,000	36,000
	Copper in concentrate	tonnes	127,000	216,500	417,300
Total copper production for Collahuasi(1)		tonnes	145,400	234,500	453,300
Anglo American's share of copper production for Collahuasi(1)		tonnes	63,900	103,200	199,500
Anglo American Sur
Los Bronces mine
Ore mined		tonnes	24,020,500	11,709,300	26,587,500
Marginal ore mined		tonnes	9,495,600	17,884,700	30,515,600
Las Tortolas concentrator	Ore processed	tonnes	9,268,200	10,539,200	20,595,700
	Ore grade processed	% Cu	0.9	0.9	0.9
	Average recovery	%	82.6	86.3	85.8
Confluencia concentrator	Ore processed	tonnes	12,985,400	–	3,329,400
	Ore grade processed	% Cu	0.9	–	0.7
	Average recovery	%	82.9	–	84.3
Production	Copper concentrate	dry metric tonnes	551,300	300,000	658,300
	Copper cathode	tonnes	21,600	18,100	38,400
	Copper in sulphate	tonnes	1,800	1,700	4,600
	Copper in concentrate	tonnes	159,600	81,900	178,800
	Total	tonnes	183,000	101,700	221,800
El Soldado mine
Ore mined	Open pit – ore mined	tonnes	4,092,500	4,508,600	10,197,700
Ore processed	Oxide	tonnes	566,300	912,600	1,887,000
	Sulphide	tonnes	3,840,100	3,470,800	7,209,100
Ore grade processed	Oxide	% Cu	0.5	0.7	0.7
	Sulphide	% Cu	0.8	0.7	0.8
Production	Copper concentrate	dry metric tonnes	89,700	70,100	171,900
	Copper cathode	tonnes	1,100	2,500	5,000
	Copper in concentrate	tonnes	25,000	15,400	41,900
	Total	tonnes	26,100	17,900	46,900

(1) Includes copper cathode, copper in sulphate and copper in concentrate production.

			6 months ended	6 months ended	Year ended
			30.06.12	30.06.11	31.12.11
Copper segment (continued)
Anglo American Sur (continued)
Chagres Smelter
Ore smelted	Copper concentrate smelted	tonnes	80,600	66,700	143,000
Production	Copper blister/anode	tonnes	78,100	64,300	138,200
Total copper production for Anglo American Sur(1)	Acid	tonnes tonnes	242,700 209,100	232,700 119,600	487,500 268,700
Anglo American Norte
Mantos Blancos mine
Ore processed	Oxide	tonnes	2,233,100	2,203,700	4,563,400
	Sulphide	tonnes	2,116,600	1,997,300	4,186,600
	Marginal ore	tonnes	2,118,200	2,513,600	5,109,400
Ore grade processed	Oxide	% Cu (soluble)	0.4	0.5	0.6
	Sulphide	% Cu (insoluble)	0.6	1.1	1.0
	Marginal ore	% Cu (soluble)	0.2	0.2	0.2
Production	Copper concentrate	dry metric tonnes	37,500	62,300	119,000
	Copper cathode	tonnes	14,400	16,500	36,000
	Copper in concentrate	tonnes	11,800	19,600	36,100
	Total	tonnes	26,200	36,100	72,100
Mantoverde mine
Ore processed	Oxide	tonnes	5,180,900	4,815,100	10,012,200
	Marginal ore	tonnes	3,453,600	3,957,200	8,025,300
Ore grade processed	Oxide	% Cu (soluble)	0.6	0.7	0.6
	Marginal ore	% Cu (soluble)	0.3	0.3	0.3
Production Total copper production for Anglo American Norte(1)	Copper cathode	tonnes tonnes	30,300 56,500	30,200 66,300	58,700 130,800
Total Copper segment copper production(1)		tonnes	329,500	289,100	599,000
Platinum copper production		tonnes	6,200	6,800	12,800
Black Mountain copper production		tonnes	–	300	300
Total attributable copper production(1)		tonnes	335,700	296,200	612,100

Nickel segment
Barro Alto(2)
Ore mined		tonnes	363,100	618,200	978,000
Ore processed		tonnes	804,700	93,000	456,500
Ore grade processed		% Ni	2.0	1.9	2.0
Production		tonnes	12,000	1,100	6,200
Loma de Níquel Ore mined		tonnes	347,900	679,800	1,302,600
Ore processed		tonnes	606,500	525,500	1,014,200
Ore grade processed		% Ni	1.4	1.5	1.5
Production		tonnes	6,300	7,000	13,400
Codemin
Ore mined(3)		tonnes	255,400	216,700	549,900
Ore processed		tonnes	283,200	270,900	562,900
Ore grade processed		% Ni	1.8	1.9	1.9
Production		tonnes	4,600	4,600	9,500
Total Nickel segment nickel production		tonnes	22,900	12,700	29,100
Platinum nickel production		tonnes	10,100	10,300	20,300
Total attributable nickel production		tonnes	33,000	23,000	49,400
Platinum segment(4)
Platinum		troy ounces	1,025,800	1,173,600	2,530,100
Palladium		troy ounces	590,500	662,000	1,430,700
Rhodium		troy ounces	129,000	165,600	337,600
		troy ounces	1,745,300	2,001,200	4,298,400
Copper(5)		tonnes	6,200	6,800	12,800
Nickel(5)		tonnes	10,100	10,300	20,300
Gold		troy ounces	48,100	60,000	105,100
Equivalent refined platinum		troy ounces	1,176,800	1,160,100	2,410,100

(1) Includes copper cathode, copper in sulphate and copper in concentrate production. (2) Barro Alto is currently not in commercial production and therefore all revenue and related costs associated with 12,000 tonnes (six months ended 30 June 2011: 1,100 tonnes; year ended ³¹ December 2011: 6,200 tonnes) of production have been capitalised. (3) Represents ore mined at Barro Alto for processing at Codemin. (4) See the published results of Anglo American Platinum Limited for further analysis of production information. (5) Also disclosed within total attributable copper and nickel production.

Production statistics (continued)

			6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
Diamonds segment (De Beers) (diamonds recovered – carats)
100% basis (Anglo American share 45%)
Debswana			10,294,000	11,320,000	22,890,000
Namdeb			778,000	599,000	1,335,000
De Beers Consolidated Mines			1,638,000	2,798,000	5,443,000
De Beers Canada			739,000	817,000	1,660,000
Total diamonds production for De Beers			13,449,000	15,534,000	31,328,000
Anglo American's share of diamonds production for De Beers			6,052,000	6,990,000	14,097,000
Other Mining and Industrial segment
Copebrás
Phosphates		tonnes	518,400	501,500	1,060,900

Catalão
Niobium
Ore mined		tonnes	310,200	335,700	866,600
Ore processed		tonnes	470,900	434,200	902,600
Ore grade processed		Kg Nb/tonne	8.4	7.4	8.1
Production		tonnes	2,300	1,800	3,900

Amapá(1)
Sinter feed		tonnes	1,044,700	641,600	1,401,000
Pellet feed		tonnes	1,075,100	939,000	1,948,300
Spiral concentrates		tonnes	920,200	744,400	1,472,200
			3,040,000	2,325,000	4,821,500
Tarmac
Aggregates		tonnes	19,569,600	22,076,100	42,878,400
Lime products		tonnes	676,400	624,900	1,264,000
Concrete		m3	1,556,900	1,691,000	3,285,700

Scaw Metals
South Africa steel products		tonnes	319,100	356,300	677,400
Zinc and lead
Lisheen(2)
Ore mined		tonnes	–	152,800	152,800
Ore processed		tonnes	–	156,200	156,200
Ore grade processed	Zinc	% Zn	–	13.4	13.4
	Lead	% Pb	–	2.7	2.7
Production	Zinc in concentrate	tonnes	–	19,200	19,200
	Lead in concentrate	tonnes	–	2,900	2,900
Black Mountain(2)
Ore mined		tonnes	–	132,800	132,800
Ore processed		tonnes	–	126,200	126,200
Ore grade processed	Zinc	% Zn	–	3.4	3.4
	Lead	% Pb	–	4.5	4.5
	Copper	% Cu	–	0.4	0.4
Production	Zinc in concentrate	tonnes	–	3,300	3,300
	Lead in concentrate	tonnes	–	5,400	5,400
	Copper in concentrate	tonnes	–	300	300
Total attributable zinc production		tonnes	–	22,500	22,500
Total attributable lead production		tonnes	–	8,300	8,300

(1) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align

with current presentation. (2) The Group sold its interests in Lisheen and Black Mountain in February 2011.

Quarterly production statistics

	Quarter ended					% Change (Quarter ended)
	30.06.12	31.03.12	31.12.11	30.09.11	30.06.11	30.06.12 v 31.03.12	30.06.12 v 30.06.11

Iron Ore and Manganese segment (tonnes)
Iron ore(1)	11,449,200	10,106,500	11,160,200	10,953,500	10,359,400	13%	11%
Manganese ore(2)	826,400	816,200	722,500	807,600	716,100	1%	15%
Manganese alloys(2)(3)	30,200	55,000	78,000	77,600	76,100	(45)%	(60)%

Metallurgical Coal segment (tonnes) Metallurgical – Export(4)
	4,845,600	3,743,000	4,060,600	4,015,000	3,949,400	29%	23%
Thermal	3,286,300	2,570,600	3,358,700	3,978,000	3,087,500	28%	6%
Thermal Coal segment (tonnes)(5)
Thermal – Export (RSA)	4,223,500	3,694,200	4,455,900	4,145,500	3,930,600	14%	7%
Thermal – Domestic Eskom	8,326,200	7,762,700	9,487,000	8,751,400	8,782,600	7%	(5)%
Thermal – Domestic other	1,560,900	1,533,200	1,390,100	1,052,900	1,333,800	2%	17%
Metallurgical – Domestic	15,700	58,400	84,500	75,600	83,800	(73)%	(81)%
Thermal – Export (Colombia)	3,104,700	2,953,000	2,752,700	2,851,800	2,537,700	5%	22%

Copper segment (tonnes)(6)	161,100	168,400	170,000	139,900	150,300	(4)%	7%
Nickel segment (tonnes)(7)(8)
	10,900	12,000	9,900	6,500	6,600	(9)%	65%
Platinum segment
Platinum (troy ounces)	623,000	402,800	710,000	646,500	640,700	55%	(3)%
Palladium (troy ounces)	355,500	235,000	392,700	376,000	373,800	51%	(5)%
Rhodium (troy ounces)	75,100	53,900	96,800	75,200	79,900	39%	(6)%
Copper (tonnes)	3,300	2,900	2,900	3,100	3,300	14%	–
Nickel (tonnes)	5,400	4,700	5,100	4,900	5,500	15%	(2)%
Gold (troy ounces)	24,100	24,000	28,000	17,100	31,500	–	(23)%
Equivalent refined platinum
(troy ounces)	583,600	593,200	583,200	666,800	592,500	(2)%	(2)%
Diamonds segment (De Beers)
(diamonds recovered – carats)
Total diamond production for
De Beers	7,241,000	6,208,000	6,489,000	9,305,000	8,138,000	17%	(11)%
Anglo American's share of diamond production for
De Beers	3,259,000	2,793,000	2,920,000	4,187,000	3,662,000	17%	(11)%

Other Mining and Industrial segment (tonnes)(9)
Phosphates	271,500	246,900	274,900	284,500	260,700	10%	4%
Niobium	1,200	1,100	1,000	1,100	900	9%	33%
Iron ore(10)	1,468,000	1,572,000	1,267,100	1,229,400	1,174,700	(7)%	25%
South Africa steel products	156,700	162,400	163,100	158,000	183,100	(4)%	(14)%
Coal production by commodity (tonnes)(4)
Metallurgical	4,861,300	3,801,400	4,145,100	4,090,600	4,033,200	28%	21%
Thermal (non-Eskom)	12,175,400	10,751,000	11,957,400	12,028,200	10,889,600	13%	12%
Eskom	8,326,200	7,762,700	9,487,000	8,751,400	8,782,600	7%	(5)%

(1) Kolomela commenced commercial production on 1 December 2011. Revenue and related costs associated with 984,700 tonnes of production were capitalised for the year ended 31 December 2011. (2) Saleable production. (3) Production includes medium carbon ferro manganese. (4) Includes Peace River Coal which in 2011 was reclassified from Other Mining and Industrial to Metallurgical Coal to align with internal management reporting. Comparatives have been

reclassified to align with current presentation. (5) Zibulo commenced commercial production on 1 October 2011. Revenue and related costs associated with 1,333,300 tonnes of production were capitalised for the six months ended 30 June

2011 (year ended 31 December 2011: 2,155,200 tonnes). The 1,333,300 tonnes included Eskom coal of 396,900 tonnes (year ended 31 December 2011: 633,400 tonnes) and export thermal coal production of 936,400 tonnes (year ended 31 December 2011: 1,521,800 tonnes). (6) Excludes Platinum copper production. (7) Excludes Platinum nickel production. (8) Includes Barro Alto which is currently not in commercial production and therefore all revenue and related costs associated with 12,000 tonnes (six months ended 30 June 2011: 1,100 tonnes;

year ended 31 December 2011: 6,200 tonnes) of production have been capitalised. (9) Excludes Tarmac. (10) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Other Mining and Industrial to align with internal management reporting. Comparatives have been reclassified to align

with current presentation.

Exchange rates and commodity prices

US\$ exchange rates		30.06.12	30.06.11	31.12.11
Period end spot rates
Rand		8.19	6.78	8.11
Brazilian real		2.02	1.56	1.87
Sterling		0.64	0.62	0.65
Australian dollar		0.98	0.93	0.98
Euro		0.79	0.69	0.77
Chilean peso		502	469	520
Average rates for the period
Rand		7.94	6.90	7.26
Brazilian real		1.87	1.63	1.67
Sterling		0.63	0.62	0.62
Australian dollar		0.97	0.97	0.97
Euro		0.77	0.71	0.72
Chilean peso		493	475	484

Commodity prices		30.06.12	30.06.11	31.12.11
Period end spot prices
Iron ore (FOB Australia)(1)	US\$/tonne	129	162	127
Thermal coal (FOB South Africa)(2)	US\$/tonne	90	118	105
Thermal coal (FOB Australia)(2)	US\$/tonne	87	120	112
Hard coking coal (FOB Australia)(3)	US\$/tonne	210	330	285
Copper(4)	US cents/lb	345	422	343
Nickel(4)	US cents/lb	747	1,048	829
Platinum(5)	US\$/oz	1,415	1,730	1,388
Palladium(5)	US\$/oz	582	762	636
Rhodium(5)	US\$/oz	1,250	2,000	1,400
Average market prices for the period
Iron ore (FOB Australia)(1)	US\$/tonne	135	171	160
Thermal coal (FOB South Africa)(2)	US\$/tonne	99	121	116
Thermal coal (FOB Australia)(2)	US\$/tonne	104	124	121
Hard coking coal (FOB Australia)(6)	US\$/tonne	223	278	289
Copper(4)	US cents/lb	367	426	400
Nickel(4)	US cents/lb	836	1,159	1,035
Platinum(5)	US\$/oz	1,558	1,792	1,725
Palladium(5)	US\$/oz	658	779	736
Rhodium(5)	US\$/oz	1,395	2,304	2,022

(1) Source: Platts. (2) Source: McCloskey. (3) Source: 30 June 2012 and 30 June 2011 represent the quarter two benchmarks; 31 December 2011 represents the quarter four benchmark. (4) Source: LME daily prices. (5) Source: Johnson Matthey. (6) Source: Represents the average quarterly benchmark for the respective periods.

Summary by business operation

			Revenue(1)			EBITDA(2)			Operating profit/(loss)(3)			Underlying earnings
US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11

Iron Ore and
Manganese(4)	3,611	3,989	7,643	1,912	2,554	4,586	1,779	2,462	4,400	551	867	1,457
Kumba Iron Ore	3,185	3,498	6,717	1,934	2,511	4,546	1,840	2,437	4,397	614	824	1,462
Iron Ore Brazil	–	–	–	(79)	(77)	(158)	(81)	(81)	(162)	(72)	(59)	(149)
Samancor	426	491	926	57	120	198	20	106	165	9	102	144
Metallurgical Coal(5)	2,006	1,942	4,347	379	683	1,577	159	501	1,189	110	358	844
Australia	1,896	1,812	4,068	384	674	1,526	184	502	1,161	131	362	831
Canada	110	130	279	12	20	82	(8)	10	59	(4)	7	44
Projects and corporate	–	–	–	(17)	(11)	(31)	(17)	(11)	(31)	(17)	(11)	(31)

Thermal Coal	1,774	1,693	3,722	522	611	1,410	433	521	1,230	285	385	902
South Africa	1,259	1,186	2,642	298	384	902	235	319	775	148	249	611
Colombia	515	507	1,080	240	237	535	214	212	482	153	146	318
Projects and corporate	–	–	–	(16)	(10)	(27)	(16)	(10)	(27)	(16)	(10)	(27)
Copper	2,569	2,609	5,144	1,210	1,527	2,750	978	1,401	2,461	510	842	1,610
Anglo American Sur	1,559	1,071	2,320	869	596	1,247	719	532	1,092	346	318	746
Anglo American Norte	460	614	1,136	199	373	641	180	355	606	137	219	444
Collahuasi	550	924	1,688	258	625	1,052	198	581	957	140	374	617
Projects and corporate	–	–	–	(116)	(67)	(190)	(119)	(67)	(194)	(113)	(69)	(197)

Nickel	219	293	488	72	106	84	58	93	57	32	58	23
Codemin	84	108	203	34	51	77	32	49	73	20	32	52
Loma de Níquel	128	185	285	66	79	86	55	69	66	32	37	29
Projects and corporate	7	–	–	(28)	(24)	(79)	(29)	(25)	(82)	(20)	(11)	(58)
Platinum	2,582	3,760	7,359	439	931	1,672	84	542	890	21	285	410

Diamonds	1,506	1,750	3,320	306	517	794	250	450	659	176	299	443

Other Mining and Industrial(4)(5)	2,138	2,256	4,520	278	247	540	180	136	315	102	90	175
Core	392	328	720	86	87	215	72	74	188	46	55	113
Copebrás	296	259	571	41	66	160	29	54	136	18	43	80
Catalão	96	69	149	47	22	57	45	21	54	30	13	35
Projects and corporate	–	–	–	(2)	(1)	(2)	(2)	(1)	(2)	(2)	(1)	(2)
Non-core	1,746	1,928	3,800	192	160	325	108	62	127	56	35	62
Amapá	201	207	481	125	57	147	112	45	120	60	35	68
Tarmac(6)	1,100	1,197	2,347	37	47	106	(24)	(22)	(35)	(15)	(25)	(31)
Scaw Metals	445	483	931	38	44	70	28	27	40	19	18	27
Lisheen(7)	–	36	36	–	17	17	–	17	17	–	14	14
Black Mountain(7)	–	5	5	–	3	3	–	3	3	–	1	1
Projects and corporate	–	–	–	(8)	(8)	(18)	(8)	(8)	(18)	(8)	(8)	(17)

Exploration	–	–	–	(72)	(46)	(121)	(72)	(46)	(121)	(69)	(45)	(118)

Corporate Activities and Unallocated Costs	3	2	5	(104)	(18)	56	(125)	(36)	15	(27)	(19)	374
	16,408	18,294	36,548	4,942	7,112	13,348	3,724	6,024	11,095	1,691	3,120	6,120

(1) Revenue includes the Group's attributable share of revenue of joint ventures and associates. Revenue for copper and zinc operations is shown after deduction of treatment and refining charges (TC/RCs). (2) Earnings before interest, tax, depreciation and amortisation (EBITDA) is operating profit before special items, remeasurements, depreciation and amortisation in subsidiaries and joint ventures

and includes attributable share of EBITDA of associates. (3) Operating profit includes operating profit before special items and remeasurements from subsidiaries and joint ventures and attributable share of operating profit (before interest, tax, non-

controlling interests, special items and remeasurements) of associates. (4) In 2012 Amapá has been reclassified from Iron Ore and Manganese to Non-core within the Other Mining and Industrial segment to align with internal management reporting. Comparatives have

been reclassified to align with current presentation. (5) In 2011 Peace River Coal was reclassified from Other Mining and Industrial to Metallurgical Coal to align with internal management reporting. Comparatives have been reclassified to align with

current presentation. (6) In the year ended 31 December 2011 the Group sold Tarmac's businesses in China, Turkey and Romania. (7) In the year ended 31 December 2011 the Group sold its interests in Lisheen and Black Mountain, which comprised the remainder of the Group's portfolio of zinc operations.

Reconciliation of subsidiaries' and associate's reported earnings to the underlying earnings included in the Condensed financial statements for the six months ended 30 June 2012

Note: only key reported lines are reconciled

Kumba Iron Ore Limited

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
IFRS headline earnings	932	1,319	2,366
Exploration	4	–	4
BEE transactions and related charges	20	–	–
Other adjustments	1	1	3
	957	1,320	2,373
Non-controlling interests(1)	(304)	(459)	(826)
Elimination of intercompany interest	(8)	(12)	(27)
Depreciation on assets fair valued on acquisition (net of tax)	(4)	(5)	(9)
Corporate cost allocation	(27)	(20)	(49)
Contribution to Anglo American plc underlying earnings	614	824	1,462

Anglo American Platinum Limited

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
IFRS headline earnings	83	469	527
Exploration	2	2	5
Operating and financing remeasurements (net of tax)	13	(51)	(27)
Restructuring costs included in headline earnings (net of tax)	–	6	6
BEE transactions and related charges	–	–	141
Other adjustments	(3)	2	–
	95	428	652
Non-controlling interests	(19)	(87)	(132)
Elimination of intercompany interest	3	(1)	(1)
Depreciation on assets fair valued on acquisition (net of tax)	(25)	(30)	(55)
Corporate cost allocation	(33)	(25)	(54)
Contribution to Anglo American plc underlying earnings	21	285	410

De Beers Société Anonyme

US\$ million	6 months ended 30.06.12	6 months ended 30.06.11	Year ended 31.12.11
De Beers underlying earnings (100%)	385	666	968
Difference in IAS 19 accounting policy	6	(1)	17
De Beers underlying earnings – Anglo American plc basis (100%)	391	665	985
Contribution to Anglo American plc underlying earnings(2)	176	299	443

(1) On 20 July 2012, Anglo American plc increased its shareholding in Kumba Iron Ore Limited by 4.5% through the exercise of options acquired in 2011 and 2012, thereby increasing its shareholding from 65.2% to 69.7% for a total cost of \$948 million. (2) Anglo American plc's 45% ordinary share interest.

ANGLO AMERICAN plc

(Incorporated in England and Wales – Registered number 3564138)

(the Company)

Notice of Interim Dividend

(Dividend No. 24)

Notice is hereby given that an interim dividend on the Company's ordinary share capital in respect of the year to 31 December 2012 will be paid as follows:

Amount (United States currency)	32 cents per ordinary share (note 1)
Amount (South African currency)	R2.6889 per ordinary share (note 2)
Last day to effect removal of shares between the UK and SA registers	Wednesday 25 July 2012
Last day to trade on the JSE Limited (JSE) to qualify for dividend	Friday 10 August 2012
Ex-dividend on the JSE from the commencement of trading on	Monday 13 August 2012 (note 3)
Ex-dividend on the London Stock Exchange from the commencement of trading on	Wednesday 15 August 2012
Record date (applicable to both the United Kingdom principal register and South African branch register)	Friday 17 August 2012
Last day for receipt of US\$:£/€ currency elections by the UK Registrars (note 1)	Wednesday 22 August 2012
Last day for receipt of Dividend Reinvestment Plan (DRIP) mandate forms by the UK Registrars (notes 4, 5 and 6)	Wednesday 22 August 2012
Currency conversion US\$:£/€ rates announced on	Thursday 30 August 2012
Removal of shares between the UK and SA registers permissible from	Friday 31 August 2012
Last day for receipt of DRIP mandate forms by Central Securities Depository Participants (CSDPs) (notes 4, 5 and 6)	Friday 31 August 2012
Last day for receipt of DRIP mandate forms by the South African Transfer Secretaries (notes 4, 5 and 6)	Monday 3 September 2012
Dividend warrants posted	Wednesday 12 September 2012
Payment date of dividend	Thursday 13 September 2012

Notes

Shareholders on the United Kingdom register of members with an address in the United Kingdom will be paid in pounds sterling and those with an address in a country in the European Union which has adopted the euro, will be paid in euros. Such shareholders may, however, elect to be paid their dividends in US dollars provided the UK Registrars receive such election by Wednesday 22 August 2012. Shareholders with an address elsewhere will be paid in US dollars except those registered on the South African branch register who will be paid in South African rand.
Dividend Tax will be withheld from the amount of the gross dividend of R2.6889 per ordinary share paid to South African shareholders at the rate of 15% unless a shareholder qualifies for exemption. After the Dividend Tax has been withheld, the net dividend will be R2.2855650 per ordinary share. Anglo American plc had a total of 1,405,457,172 ordinary shares in issue, including 15,295,802 treasury shares, at the dividend declaration date of Friday 27 July 2012. In South Africa the dividend will be distributed by Anglo South Africa Capital (Pty) Limited, a South African company with tax registration number 9273/364/845, in terms of the Company's dividend access share arrangements. No Secondary Tax on Companies (STC) credits will be used for the payment of the dividend.
Dematerialisation and rematerialisation of registered share certificates in South Africa will not be effected by CSDPs during the period from Monday 13 August 2012 to Friday 17 August 2012 (both days inclusive).
Those shareholders who already participate in the DRIP need not complete a DRIP mandate form for each dividend as such forms provide an ongoing authority to participate in the DRIP until cancelled in writing. Shareholders who wish to participate in the DRIP should obtain a mandate form from the UK Registrars, the South African Transfer Secretaries or, in the case of those who hold their shares through the STRATE system, their CSDP.
In terms of the DRIP, and subject to the purchase of shares in the open market, share certificates/CREST notifications are expected to be mailed and CSDP investor accounts credited/updated no later than Wednesday 19 September 2012 in the UK and Tuesday 25 September 2012 in South Africa. CREST accounts will be credited on Wednesday 19 September 2012.
Copies of the terms and conditions of the DRIP are available from the UK Registrars or the South African Transfer Secretaries.

England

Registered office UK Registrars South African Transfer Secretaries 20 Carlton House Terrace Equiniti Link Market Services South Africa (Pty) Limited London Aspect House 13th Floor, Rennie House SW1Y 5AN Spencer Road 19 Ameshoff Street England Lancing Braamfontein 2001 West Sussex South Africa BN99 6DA (PO Box 4844, Johannesburg 2000)

AI assistant

Anglo American PLC — Earnings Release 2012

4786_ir_2012-06-30_e6b68282-f0a2-43aa-a419-2d491079fdc6.pdf

HALF YEAR FINANCIAL REPORT

NEWS RELEASE

Anglo American announces EBITDA(1) of \$4.9 billion for the half year

Financial results impacted by weaker prices

Strong operational and strategic delivery

Projects delivered and ramping up to drive high quality production growth

Projects in execution progressing

Disciplined capital allocation delivering shareholder value

Safety

Review of the six months ended 30 June 2012

Financial results

Production

Capital structure

Dividends

Project delivery to continue to drive high quality production growth

Minas-Rio

Cerrejón P500 expansion – on track

Grosvenor – on track

Quellaveco – successful conclusion to community dialogue process

M&A update

De Beers

Anglo American Sur

Revuboè

Update on divestment programme

Outlook

Webcast of presentation:

Forward-looking statements

Financial review of Group results

Special items and remeasurements

Net finance costs

Balance sheet

Cash flow

Liquidity and funding

Group corporate cost allocation

Dividends

Related party transactions

Principal risks and uncertainties

Operations review for the six months ended 30 June 2012

IRON ORE AND MANGANESE

Markets

Operating performance

Kumba Iron Ore

Iron Ore Brazil

Samancor

Projects

Iron Ore Brazil

Samancor

Outlook

Kumba Iron Ore

Samancor

METALLURGICAL COAL

Markets

Operating performance

Projects

Outlook

THERMAL COAL

Markets

Operating performance

South Africa

Colombia

Projects

Outlook

COPPER

Markets

Operating performance

Projects

Outlook

NICKEL

Markets

Operating performance

Projects

Outlook

PLATINUM

Markets

Autocatalysts

Industrial

Jewellery

Anglo American PLC Earnings Release 2012