RNS Number:1406T
Anglo American PLC
11 December 2003


News Release

11 December 2003


                     MONDI INITIATES FIRST MAJOR BEE TRANSACTION
                     IN SOUTH AFRICAN PAPER AND PACKAGING SECTOR


Anglo American plc's wholly owned South African subsidiary, Mondi South Africa
("Mondi"), and MCI Resources ("MCI"), which is led by Cyril Ramaphosa and James
Motlatsi, today announced that they have agreed in principle to the creation of
a new black empowerment partnership in Mondi's newsprint business ("MNB") based
in KwaZulu-Natal, South Africa.  The transaction, which is likely to be
completed in the first quarter of next year, values MNB at R1,1 billion.


MNB is a significant southern hemisphere producer of newsprint, manufacturing
some 220,000 metric tons per year of this paper grade at Mondi's Merebank mill
close to Durban and employs 322 people. It has achieved a well-established
domestic newsprint market share of some 60%. MNB will include the relevant waste
paper preparation, mechanical pulp and newsprint production equipment at the
Merebank mill, as well as significant plantations in KwaZulu-Natal which supply
timber to the mill as raw material.


In terms of the agreement, MCI will acquire a 42% interest in MNB and a further
8% in MNB will be set aside for further broad-based empowerment.  It is the
intention that structures be established to facilitate ownership of this 8% by
Mondi South Africa employees and relevant neighbouring communities.  The
transaction will be funded through a combination of equity to be provided by
Mondi and MCI, bank financing in the form of senior debt, and mezzanine debt to
be provided by Mondi. Implementation of the transaction is subject to the
finalisation of various agreements and the necessary board and regulatory
approvals. MCI is committed to be a long term investor in MNB, taking an active
role in the management of the business alongside Mondi as its partner.


Andrew Thompson, Chairman and CEO of Mondi South Africa, commented: "I am
delighted to have a partner of the stature of MCI in our newsprint business,
with its important BEE shareholders  Cyril Ramaphosa and James Motlatsi. MCI has
skills which will enable it to co-ordinate and oversee the development of MNB's
socio-economic upliftment and empowerment initiatives and to strengthen MNB's
strategic and business development initiatives.  I look forward to a long and
fruitful partnership with them. "


Cyril Ramaphosa, Chairman of MCI said:  "We are delighted to be joining forces
with Anglo American and Mondi in our first investment in the paper and packaging
industry.  We look forward to becoming involved in the management of MNB
together with Andrew Thompson and his high calibre team and to growing the
business together."


Merrill Lynch is acting as the financial advisor to MCI Resources.


For further information:

Mondi South Africa                  MCI Resources
Anne Dunn                           Rowan Smith
+27 11 638 4730                     011 305 8906
Marion Dixon
+27 11 638 3001


Background Information


Mondi South Africa
Mondi South Africa holds the Anglo American plc's group's paper and packaging
interests in southern Africa.  These include significant sustainable plantation
forests, waste paper collection and recycling, integrated pulp, paper and
packaging production as well as distribution.


MCI Resources
MCI Resources is a subsidiary of Millennium Consolidated Investments - a black
economic empowerment investment company primarily focussed in the resources,
financial and property sectors.  MCI Resources' current interests include
investments in the coal and gold industries with the long term strategy to
develop a diversified resources house with operational capabilities.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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