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Coal

Anglo Coal

The Coal Reserve and Coal Resource estimates were compiled in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code, 2004) as a minimum standard. Where relevant, the estimates were also prepared in compliance with regional codes and requirements (e.g. The SAMREC Code, 2007). The Coal Resources are additional to those resources which have been modified to produce the Coal Reserves. The tonnage is quoted as wet metric tonnes at the appropriate in-situ moisture content.

The figures reported represent 100% of the Ore Reserves and Mineral Resources, the percentage attributable to Anglo American plc is stated separately. A change to the 100% reporting basis necessitated a change to certain figures as reported in 2007. Rounding of figures may cause computational discrepancies.

Coal Resources - Projects(6)
Australia
      Tonnes CV
Attributable %(2)   Classification 2008 2007 2008 2007
Dartbrook (UG/OC) 78.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 170.1 170.1 6,200 6,200
          Indicated 51.9 51.9 6,200 6,200
    Measured and Indicated 222.1 222.1 6,200 6,200
Grosvenor (UG) 100   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 227.8 195.9 6,650 6,230
          Indicated 111.9 95.7 6,660 6,230
        Measured and Indicated 339.7 291.6 6,650 6,230
Saddlers Creek (UG) 88.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 398.9 129.9 6,440 6,460
          Indicated 137.9 322.5 6,340 6,560
  Measured and Indicated 536.8 452.4 6,410 6,530
Taroom (OC) 51.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 36.4 5,560
          Indicated 89.0 5,580
  Measured and Indicated 125.5 5,570
Theodore (OC) 51.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured
          Indicated 358.2 262.4 6,250 6,290
  Measured and Indicated 358.2 262.4 6,250 6,290
Australia Sub Total 77.9   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 833.2 495.9 6,410 6,280
          Indicated 749.0 732.5 6,240 6,390
  Measured and Indicated 1,582.2 1,228.5 6,330 6,350
Coal Resources - Projects(6)
Canada
      Tonnes CV
Attributable %(2)   Classification 2008 2007 2008 2007
Roman Mountain (OC) 74.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 18.2 6,810
          Indicated 6.3 6,810
  Measured and Indicated 24.5 6,810
Canada Sub Total 74.0   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 18.2 6,810
          Indicated 6.3 6,810
  Measured and Indicated 24.5 6,810
Coal Resources - Projects(6)
China
      Tonnes CV
Attributable %(2)   Classification 2008 2007 2008 2007
Xiwan (UG/OC)   60.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 199.6 109.8 6,620 6,540
          Indicated 128.2 389.5 6,600 6,600
  Measured and Indicated 327.8 499.2 6,610 6,590
China Sub Total   60.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 199.6 109.8 6,620 6,540
          Indicated 128.2 389.5 6,600 6,600
  Measured and Indicated 327.8 499.2 6,610 6,590
Coal Resources - Projects(6)
South Africa
  Tonnes CV
Attributable %(2)   Classification 2008 2007 2008 2007
Elders (UG/OC)   73.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 87.7 14.8 5,200 5,210
          Indicated 36.6 150.9 5,170 5,110
  Measured and Indicated 124.3 165.7 5,190 5,120
Kriel East (UG)   73.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 41.4 4,980
          Indicated 50.8 4,940
  Measured and Indicated 92.2 4,960
New Largo (OC)   73.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 199.9 639.4 4,000 4,300
          Indicated 186.3 128.2 4,050 4,220
  Measured and Indicated 386.3 767.6 4,020 4,290
Nooitgedacht 2+4 Seam (UG)   100       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured
          Indicated 61.6 61.6 5,320 5,320
  Measured and Indicated 61.6 61.6 5,320 5,320
South Rand (UG/OC)   73.0       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 36.4 17.5 5,560 4,830
          Indicated 220.7 0.5 5,590 4,830
  Measured and Indicated 257.1 18.0 5,590 4,830
Vaalbank (UG/OC)   100       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 54.6 54.6 3,900 3,900
          Indicated 23.4 23.4 3,900 3,900
  Measured and Indicated 77.9 77.9 3,900 3,900
South Africa Sub Total   76.8       MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 420.0 726.3 4,470 4,300
          Indicated 579.4 364.6 4,910 4,760
  Measured and Indicated 999.5 1,090.8 4,730 4,450
Coal Resources – Projects(6) Attributable %(2)   Classification 2008 2007 2008 2007
Total Projects   75.5   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 1,471.0 1,331.9 5,890 5,220
          Indicated 1,462.9 1,486.6 5,750 6,050
  Measured and Indicated 2,933.9 2,818.5 5,820 5,660
   
Coal Resources
Mine Lease & Projects
(6)
          Tonnes CV
Attributable %(2)   Classification 2008 2007 2008 2007
Total Coal Resources   68.3   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 3,231,5 2,406.1 5,920 5,510
          Indicated 3,502.2 3,691.4 5,890 5,920
  Measured and Indicated 6,733.7 6,097.5 5,910 5,760
    Inferred in Mine Plan(8) 133.1 129.7 5,800 6,190

                 
            Tonnes CV
Brown Coal Resources(6) Attributable %(2)   Classification 2008 2007 2008 2007
Monash Energy (OC)   100   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 5,095.0 5,095.0 1,820 1,820
          Indicated 5,221.0 5,221.0 1,790 1,790
  Measured and Indicated 10,316.0 10,316.0 1,800 1,800
Total Brown Coal Resources   100   MTIS(6) MTIS(6) GAR(7) GAR(7)
          Measured 5,095.0 5,095.0 1,820 1,820
          Indicated 5,221.0 5,221.0 1,790 1,790
  Measured and Indicated 10,316.0 10,316.0 1,800 1,800

Mining method: OC = Open Cast, UG = Underground.

Attributable percentages for country totals are weighted by Measured and Indicated MTIS.

Additional footnotes appear at the end of the section.


Coal Bed Methane

Anglo Coal

Coal Bed Methane (CBM) estimates were compiled by an external independent consultant in accordance with the guidelines and recommendations contained in the Petroleum Resources Management System 2007 sponsored by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC).

CBM Reserves
Australia
    Saleable Volume Content(9) Saleable Energy Content(9)
Attributable %(2) Classification 2008 2007 2008 2007
Dawson 51.0   MMcf MMcf PJ PJ
    Proved: 1P 49,882 55,254 53 58
    Probable: 2P-1P 100,259 100,259 106 106
    Total: 2P 150,141 155,513 159 164
Harcourt 25.5   MMcf MMcf PJ PJ
    Proved: 1P
    Probable: 2P-1P 36,902 39
    Total: 2P 36,902 39
Total CBM Reserves 46.0   MMcf MMcf PJ PJ
    Proved: 1P 49,882 55,254 53 58
    Probable: 2P-1P 137,161 100,259 145 106
    Total: 2P 187,043 155,513 197 164
(2)
Attributable (%) refers to 2008 only. For the 2007 Reported and Attributable figures, please refer to the 2007 Annual Report.
(6)
Coal Resources are quoted on a Mineable Tonnage In-Situ (MTIS) basis in million tonnes which are in addition to those resources which have been modified to produce the reported Coal Reserves. Coal Resources are on an in-situ moisture basis.
(7)
The coal quality for the Coal Resources is quoted on an in-situ heat content as Calorific Value (CV) on a Gross As Received (GAR) basis. CV is rounded to the nearest 10 kcal/kg.
(9)
CBM Reserves are reported in terms of saleable volume (million cubic feet – MMcf) and saleable energy (Petajoules – PJ, or one thousand trillion Joules).

Summary of material changes (±10%) at reporting level

Australia
Callide:
An increase of approximately 93 Mt in resources is due to additional new drilling information.
Capcoal:
Resource and reserve numbers were derived by depletion. Resources in Mine Lease were adjusted by approximately 71 Mt that were previously allocated to resources in the mine plan. An attributable percentage of 71.6% was calculated from the Anglo Coal ownership of 70% in the Mitsui JV and 86.4% in the Marubeni JV weighted against Saleable Reserves, and does not reflect the shareholding in the respective entities.
Dawson:
Resource and reserve numbers were derived by depletion. Resources in Mine Lease were adjusted by approximately 338 Mt that were previously allocated to resources in the mine plan.
Drayton:
Resource and reserve numbers were derived by depletion.
Foxleigh:
Foxleigh was a new acquisition in March 2008, but no reliable reserve estimates are available and all reserves are therefore reported as Resources in Mine Lease only.
Grosvenor:
An increase of approximately 46 Mt in resources was due to exploration drilling.
Jellinbah:
Not reported in 2008 due to <25% attributable interest.
Saddlers Creek:
An increase of approximately 84 Mt in resources was due to exploration drilling particularly in the deep underground areas.
Taroom:
Not reported previously – exploration drilling resulted in upgrade in classification and initial reporting of resources.
Theodore:
Not reported previously – increase of approximately 95 Mt in resources due to initial reporting of Theodore Central.
Canada
Trend:

A decrease of approximately 3 Mt from resources to non-economic representing the coal between the original pit shell and the new pit shell design.
Roman Mountain:
Not reported previously – exploration drilling resulted in upgrade in classification and initial reporting of resources.
China
Xiwan:

The deeper potential underground resources of approximately 212 Mt were reclassified as intrinsically non-economic pending further mineability investigation.
Colombia
Cerréjon:

An increase of approximately 574 Mt in reserves and approximately 798 Mt in resources was due to the change in reporting basis from 33.3% to 100% in 2008. A decrease in reserves of approximately 30 Mt was due to changes in the geological model. A reduction in resources of approximately 62 Mt was due to changes in the geological model, whereas a gain of approximately 246 Mt in resources was due to a consolidation of resource blocks resulting in new resources not previously reported.
South Africa
Elders:

A decrease of approximately 35 Mt in resources was due to a reclassification of Inferred Resources previously reported as Indicated Resources.
Goedehoop:
A decrease in Saleable of metallurgical coal of approximately 5.6 Mt was due to a change of product mix, and the decision to cease production of such coal.
Greenside:
A decrease of approximately 21 Mt in resources was due to the exclusion of low yield areas.
Kleinkopje:
Changes in block ranking and cut-off depths resulting in transfer of reserves >70 m from surface and a resulting decrease of approximately 33 Mt in reserves and corresponding increase in resources. The Saleable products changed from Export Thermal to mixed Export Thermal and Domestic Thermal (Power Station) due to the change in product mix from 5 West, which now supplies Domestic Thermal product.
Landau:
Approximately 8 Mt of reserve was reclassified as non-economic pending the Environmental Management Programme Report (EMPR) approval at Umlalazi South. Saleable products changed from Export Thermal to mixed Export Thermal and Domestic Thermal (Power Station) due to the change in product mix from Navigation West, which now supplies a mixed product.
Mafube:
An increase in reserves and resources resulted from the change of reporting basis from 50% to 100% in 2008. All reserves are classified as Probable pending the outcome of EMPR approval. A significant increase of approximately 68 Mt reserves is due to the conversion of Resources in Mine Lease at Nooitgedacht.
New Denmark:
A decrease of approximately 30 Mt in reserves was due to changes in layout and mine design.
New Largo:
A loss of approximately 725 Mt resulted from changes to the geological model from raw coal to washed product model. An increase of approximately 269 Mt in resources resulted from an increased amount of wash data through exploration.
New Vaal:
Approximately 8 Mt of resources was sterilised due to permanent infrastructure and out-of-pit losses.
South Rand:
An increase of approximately 239 Mt in resources resulted from exploration drilling.
Zondagsfontein:
An increase of approximately 118 Mt resulted from the conversion of resources to reserves following mine planning after approval of project, but was assigned to the Probable category pending Mining Right approval.
Venezuela
Guasare:

The 2008 Guasare resource and reserve numbers have been derived by depletion. An increase of approximately 106 Mt in reserves and approximately 80 Mt in resources resulted from the change in reporting basis from 25% to 100% in 2008.
Brown Coal
Monash Energy:

Resource estimates have not changed from 2007 because no additional data were added in 2008. The brown coal is a substantial resource suitable as a feedstock to many chemical processes but requires technological breakthroughs to allow the economic development of clean coal plants.
Coal Bed Methane
Dawson:

Initial reserves calculated in 2006 were depleted for gas production, consumption and venting for the 2008 estimates.
Harcourt:
CBM resources for PLA 210 are reported for the first time in 2008.
Assumption with respect to Mineral Tenure
South Africa:
All pending mining right conversions and applications were granted in 2008. Cession of the Mining Right at Kriel Colliery from Anglo Coal to Anglo Inyosi Coal (Pty) Limited remains pending, although Anglo Coal has reasonable expectation that this will be granted in due course. Three Prospecting Rights are still the subject of ongoing legal review and Anglo Coal has reasonable expectations that these rights will be granted in due course, and the relevant Project Coal resources have been included in the statement. Cession of Prospecting Rights from Anglo Coal to Anglo Inyosi Coal (Pty) Limited was granted during 2008, with the exception of the South Rand project. Anglo Coal has reasonable expectation that these rights will be granted in due course, and the relevant Project Coal resources have been included in the statement.
Venezuela:
Although the Carbones del Guasare mining concession terminates in 2013, Coal Resources in the Mine Lease that may be included in a mine plan beyond this date are included in the 2008 statement.
Royalty Payment
South Africa:
Royalty payments are scheduled to commence in April 2009 and have been taken into consideration in economic assessment of the reserves.
Reviews by independent third parties were carried out in 2008 on the following Operations and Project areas:
Australia:
Callide, Dawson, Grosvenor, Moranbah North, Saddlers Creek
China:
Xiwan
South Africa:
Elders Extension, Isibonelo, Kriel, Mafube

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