Over the last three years, Anglo American plc has invested strongly in Europe, growing its established core businesses in the aggregates and paper and packaging sectors with a series of acquisitions including of Tarmac plc, Assi Sacks, Syktyvkar in Russia and half the assets of French packaging company, La Rochette. These make the Company:

• the leading UK aggregates producer;
• Europe's biggest zinc miner;
• the world's leading producer of industrial sacks; and
• Europe's leading supplier of A4 copy paper.

Anglo American's European operations embrace industrial minerals (Tarmac, Tarmac Iberia etc); paper and packaging (Mondi Packaging, Frantschach, Neusiedler and 50% of Aylesford Newsprint); base metals (Lisheen zinc mine in the Republic of Ireland); exploration activities (Sweden, Finland and the Republic of Ireland) and Boart Longyear's mining technology and products operations.

PAPER AND PACKAGING

Anglo American Paper and Packaging, operating under the Mondi Europe brand, has been an active investor in Europe since acquiring stakes in the Austrian packaging and paper companies, Frantschach and Neusiedler in 1990 and 1992 respectively. Mondi took a controlling interest in both companies in 2000. Other interests include 50% of Aylesford Newsprint in the UK (acquired in 1993); 64% of Swiecie of Poland (acquired in 1997); Amcor Fibre Packaging (acquired in 1999 and renamed Mondi Packaging UK/France); ownership of Assi Sacks (from Assi Doman in 2000); 50% of SCP Ruzomberok of Slovakia (in 2000) and 100% of Danisco UK (in 2001); 50% of La Rochette's assets (including plants in France, Belgium and the UK) (acquired in 2002) and 98% in Syktyvkar in Russia.

Mondi Europe accounts for about 70% of Anglo American's paper and packaging turnover. It has over 100 plants in Europe.

Aylesford Newsprint is the UK's leading producer of 100% recycled fibre newsprint. The mill recycles 500,000 tonnes p.a. of recovered paper and is located just south of London, from where much of its waste paper is sourced. Aylesford is a single-site operation with two paper machines and an annual production capacity of 400,000 tonnes. Aylesford is a joint venture between Anglo American and SCA of Sweden.

The Frantschach Packaging Group is Europe's largest producer of industrial sack packaging and sack papers, with three paper mills and 63 converter plants situated throughout Europe and the Middle East. The Group also has significant barrier coating and flexible packaging interests. It has 8 flexible packaging, 7 barrier coating and 2 release liner operations. The total annual production capacity is approximately 2.5 billion industrial sacks, 600,000 tonnes of sack paper, 180,000 tonnes of market pulp, 470 million consumer bags and 1.6 billion m2 of barrier coated products.

Neusiedler manufactures uncoated woodfree papers for office communication at seven mills located in Austria, Hungary, Russia, Slovakia and Israel. The annual capacity of these mills is some 1.7 million tonnes of paper and 960,000 tonnes of integrated pulp through the acquisition of management control and 50% of the Slovakian uncoated woodfree producer SCP Ruzomberok (annual production capacity 300,000 tonnes) and 98% of the voting stock in Syktyvkar, the Russian pulp and paper mill. Neusiedler has considerably strengthened its leading position in the European office communications paper market. A major expansion project is currently underway at Ruzomberok which will increase its paper capacity to 430,000 tonnes by the end of 2003.

Mondi Packaging Europe

Mondi Packaging Europe is a leading corrugted packaging group in the United Kingdom, France, Ireland and Poland. It employs some 2,300 people in the United Kingdom. The business is divided into three major divisions:

Swiecie is the largest pulp, paper and packaging company in Poland. A single-site operation, the company has an annual production capacity of 320,000 tonnes of unbleached pulp and 80,000 tonnes of semi-chemical pulp, which are used to produce 121,000 tonnes of unbleached sack kraft paper and 516,000 tonnes of corrugated case materials. The company has achieved significant productivity improvements while at the same time reducing its underlying cost base. A major rebuild of a linerboard machine will lead to further cost reductions as well as an increase in capacity and quality improvements.

Mondi Board

Mondi Board supplies premium quality corrugated board to the packaging industry from its state-of-the-art production facilities at Coalville and Preston.

The business supplies a comprehensive range of board grades from the conventional, through heavy duty grades up to high quality, clay-coated board for top end speciality packaging with high quality print requirements. Raw materials are carefully selected from suppliers with approved accreditation in environmental and quality performance.

Mondi Board currently supplies over 7% of the overall 4,500 million sq.m. market for corrugated sheet cardboard in the UK with around 70% of output going beyond Mondi Packaging and into the sheet plant market.

Mondi Packaging UK

Mondi Packaging is the leading provider of total corrugated packaging solutions in the UK. The development of Integrated Plants on green-field sites in March, Cambridgeshire and Mold in North Wales has led the industry in manufacturing terms. The company has 1,200 employees, a £150 million turnover and an output equating to 650 million average sized boxes a year.

Mondi Display

Mondi Display specialises in point of purchase and corrugated packaging. Operating as Colour Case and Display it is a leading supplier of effective, innovative and high quality display solutions in the UK. The new dimension lies in the ability to translate even the simplest design brief into a complete solution. Finished, printed and assembled display units have provided clients with the ultimate in PoP display solutions. The latest computer-aided design systems can produce three-dimensional visualisations of customers' projects and place them in a retail context for viewing on-line.

Mondi's Major UK Facilities

Chesterfield

Mondi Packaging at Chesterfield is a Sheet Plant, specialising in PoP display applications, and is the preferred supplier of PoP Dump Bins, inter alia, for DIY retail giant B&Q. The plant produces high quality print packaging for furniture, leisure and white goods sectors.

Coalville

Mondi Board at Coalville is a state-of-the-art manufacturer of corrugated sheet board which employs around 120 people. The plant supplies everything from the raw materials for basic corrugated boxes to high quality, clay-coated board for top end speciality packaging nationwide.

Diss

Bux Corrugated at Diss is the largest manufacturer of wire stitched cases in the UK. The company specialises in selling to the trade and produces corrugated board and cases. It employs 232 people.

March

The March plant produces corrugated packaging, including die cut and glued cases and trays to be supplied nationwide. Plant facilities include a corrugator plus 8 conversion machine, and full facilities to produce its own board, and totally produce cases in relation to die cutting and printing. It employs 173 people.

Mold

The Mold plant employs 125 people. It started full production of corrugated fibreboard in 1994. The manufacturing plant combines state-of-the-art processes with low cost. Mold has been IIP approved for three years and has a unique family culture - a rarity in a modern business of this size.

MONDI FRANCE

Mondi Packaging, France employs 500 people and has a 2% market share. It consists of two divisions - manufacturing corrugated sheet cardboard and corrugated packaging. Its main customers are in the automobile and cosmetics industries. Mondi France's plants are located at Saint Quentin (150kms north of Paris); Emball (Lille), Thiverval (30 kms south-west of Paris); Cedi Packaging (300 kms west of Paris) and Arco (on the outskirts of Paris). Cartopack has two plants in Lyon and Grenoble.

MONDI IRELAND

Mondi Ireland is located at Cavan Box, Kilmore, Ballyjamesduff, Co. Cavan, 50 miles from Dublin and 70 miles from Belfast. The plant is 100,000 sq.ft. It manufacturers Corrugate and Litho Laminated packaging, mainly for the food industry. There are 50 people employed at the plant and annual sales are approximately 10 million euro.

MONDI POLAND

Mondi Packaging in Poland consists of two integrated corrugated plants - Mondi Packaging Bzwp and Mondi Packaging Swiecie. At Swiecie there are 224 employees and at Bzwp 152. Mondi Packaging Poland is the market leader in its region.

INDUSTRIAL MINERALS OVERVIEW

Tarmac is the leader in the production of construction materials in the UK. It has operations in continental Europe, the Middle East and Far East. The construction materials operations principally involve the production of crushed rock, sand and gravel, asphalt, concrete and mortar, concrete productions, lime and cement.

Tarmac products are used in developing road and rail infrastructure, hospitals houses and schools and products as diverse as toothpaste and bread. Tarmac aims to conduct its activities in a sensitive manner, helping to ensure a sustainable resource base for our future generations.

Key customer groups for Tarmac include civil and building industry contractors; merchants and distributors; industrial users and DIY consumers.

Through the extraction, processing and delivery of mineral resources for use within the construction and industrial sectors, Tarmac produces sand and gravel; crushed rock, asphalt; ready-mixed concrete; mortar; precast concrete products; blocks and paviors; cement; lime and industrial products. Tarmac is also investing in the development of recycled products and the processing and use of secondary sources of aggregates such as slag, crushed concrete and asphalt.

Tarmac UK

Employing some 8,500 people and with over 600 production units Tarmac Ltd operates on a geographical structure with four regional businesses focussed on serving local markets.

• Tarmac Northern Ltd
• Tarmac Central Ltd
• Tarmac Western Ltd
• Tarmac Southern Ltd
  
  

Together these four businesses combine with Tarmac Concrete Products and Tarmac Recycling to form the largest aggregates business in the United Kingdom.

Tarmac National Contracting operates as a self-standing national business.

Tarmac is currently constructing a major new cement plant at Buxton in Derbyshire. It will be fully commissioned during 2004.

Some of our quarries can boast huge outputs of material each year. Tarmac's biggest UK quarry is Tunstead in Derbyshire which has an annual stone output of 5.5 million tons. This is far ahead of the second largest quarry, Swinden in North Yorkshire which produces 2.1 million tons a year and Holme Hall in South Yorkshire (1.6 million tons).

Tarmac's largest concrete-producing plants are in London -the biggest being Kings Cross followed by Bow and Paddington.

Tarmac products have been used on many high profile projects. The latest is to supply asphalt for the new M6 Toll road which will provide a 27-mile dual, three-lane motorway with a low-noise surface around the northern and eastern edge of the West Midlands conurbation, offering a genuine alternative to the busy M6.

Tarmac Concrete Products

Tarmac Concrete Products is one of the UK's leading concrete product companies consisting of four well-established brands: Tarmac Topblock, Tarmac Precast Concrete, Tarmac TopFloor and Tarmac TopPave.

Tarmac National Contracting

Tarmac National Contracting comprises the largest services, contracting and asphalt surfacing group in the UK with regional and area offices, supported by a ready supply of materials direct from our own quarries and asphalt plants.

Tarmac Recycling

Tarmac Recycling Ltd operates from 26 permanent and two joint venture aggregates recycling facilities plus various short-term contract facilities as well as operating from three landfill sites. Last year Tarmac Recycling achieved sales of 1.3 million tonnes. For further information on Tarmac in the UK, please go to the website: www.Tarmac.co.uk

Tarmac France

Tarmac France (France and Belgium) has more than 790 employees with the former comprising of two main businesses, Tarmac Materiaux de Construction (TMC) which manufactures concrete products, and Tarmac Granulats, a producer of aggregates.

The product portfolio of TMC includes blocks, block paving, kerbs, pipes, and specialised pre-cast concrete products such as fencing and chambers, serving both the construction industry and the public works sectors. Principal clients are the national and regional chains of builder's merchants who on-sell to contractors, individuals and pubic works companies. Businesses are situated in the north of France, the Paris basin, Lyon, Rhone-Alps, Bordeaux and south Belgium.

Tarmac Granulats is a quarrying business based in the Beaujolais and Centre regions of France, producing a variety of crushed aggregates. Sand and gravel as well as limestone-derived aggregates feed into the local public works and road building markets as well as the construction industry for use in the manufacture of concrete and concrete products. The main application of hardstones is in road surfacing.

Tarmac recently acquired Rudigoz, a concrete paving specialist in France.

For further information on Tarmac France, please go to the website: www.Tarmac.co.uk

Tarmac Central Europe

Some 1,300 people work within Tarmac Central Europe (Germany, Poland & Czech Republic).

In Germany, Tarmac has four aggregate businesses serving construction companies and concrete and asphalt producers primarily in Berlin (www.elbekies.de), Stuttgart (www.msw-mineralstoffwerke.de), north east Germany (www.mon.de/dd/Lausitzer-Grauwacke/) and Leipzig (www.keissand.com).

Tarmac's Polish operations cover aggregates, concrete paving, asphalt and ready mixed concrete. The aggregates businesses serve customers primarily in Wroclaw, Lodz, Warsaw and Poznan as well as construction sites throughout southern Poland (www.wksm.com.pl and www.kosmin.com.pl) Tarmac is the market leader in the production of concrete paving for private individuals, construction companies and local governments. It has seven production facilities serving customers in Warsaw (www.kbTarmac.pl), Krakow and Katowice (www.libet.pl) and Wroclaw.

In the Czech Republic, Tarmac Severokamen a.s. is the second largest aggregate producer serving construction companies and asphalts and concrete producers, in north Bohemia and Prague (www.Tarmac.cz).

Tarmac Iberia

Tarmac Iberia, the Tarmac Group's Spanish subsidiary, has two main regions in which it operates, following the purchase of the Mavike Group in October 2002. These are the Central Regions, mainly Madrid (although there are some activities in Castile-Leon) where Tarmac is market leader in aggregates and ready-mixed concrete, operating four sand and gravel pits, four crushed rock quarries and 19 ready-mixed concrete plants and the Mediterranean Region, where Tarmac has a limestone quarry, exclusive trading rights over a further limestone quarry and 26 ready-mixed concrete plants. Tarmac Iberia has approximately 400 employees.

For further information on Tarmac Iberia, please go to the website: www.Tarmac.co.uk.

BOART LONGYEAR

Boart Longyear is a leading global manufacturer and supplier of products, systems and services to the international exploration, mining, construction, quarrying, geotechnical, environmental and industrial markets.

Boart Longyear's global businesses centre on providing customers with a unique range of industrial diamond and tungsten carbide products, systems and services across five areas:

• Contract drilling services;
• Drilling tools and equipment;
• Coring tools and equipment; and
• Wear components
  

Its European head office is in Burghaun in the Federal Republic of Germany. Boart Longyear employs 1,380 people in Europe and has facilities in Germany, Ireland, Poland, Scandinavia, Belgium, Switzerland, Spain, Italy, France, the Czech Republic, Cyprus and the United Kingdom. Its main manufacturing plants are located in Burghaun and Meerbusch in Germany, Shannon in Ireland and Wilkow in Poland.

ANGLO BASE METALS

LISHEEN

Anglo American is the owner and operator of Europe's biggest zinc/lead deposit. The mine is located near the village of Moyne in County Tipperary in the Republic of Ireland. It is predicted to produce approximately 4.8 million metric tonnes of zinc and lead concentrate over the 14 year currently predicted life of the mine.

The mine was officially opened in 2000 and employs around 280 people, 80% of whom have been recruited locally. It is an underground operation which was developed at an initial capital cost of US$280 million.

Lisheen was the first mine in Ireland to be awarded an Integrated Pollution Control Licence.