12 May 2010
Anglo American Thermal Coal is proud to announce a R9 million methane gas flaring project at its New Denmark Colliery near Standerton. The project involves the installation of two mobile flaring-off mechanisms that will be incorporated into the mine’s existing methane drainage system. Methane occurs naturally in coal mines and is released from the coal bed when it is broken up during the mining process. The mobile flare is a joint New Denmark-Gemini Carbon concept and is a world first in Clean Development Mechanisms.

Norman Mbazima, CEO of Anglo American Thermal Coal said: “Our proactive technological response and investment in this important project are testimony to our commitment to operating our business in an environmentally responsible way as we endeavour to find ways to further minimise our carbon footprint. We believe that this focus is fundamental to our licence to operate and forms part of the recently launched Anglo Environment Way policy.”

The newly commissioned enclosed flare, designed in Switzerland, has been selected to completely burn all methane sent to the flare and to avoid light pollution. A small diesel-powered blower will be used to deliver the gas to the four flaring nozzles where it will be mixed with air to a concentration that will enable safely burning it off. It has been ascertained that the flaring of methane renders it 18.5 times less harmful to the environment. The flare’s communication system with the mine will be solar-powered at the flare location and will be situated on open farmland.

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For further information, please contact:

South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592

Notes to Editors:

Anglo American plc is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Its portfolio of mining businesses spans precious metals and minerals – in which it is a global leader in both platinum and diamonds; base metals – copper and nickel; and bulk commodities – iron ore, metallurgical coal and thermal coal. 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 and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.
www.angloamerican.co.uk

Gemini Structured Carbon is a London based Emissions Trading Company, registered with the UK Financial Services Board specialising in initiating Clean Development Mechanisms and Sustainable Energy systems worldwide. Gemini has offices in South Africa, the USA and Australia and is one of the largest Solar Energy Scheme initiators in Europe. Gemini Structured Carbon is one of the biggest traders of Emission Credits in Europe and is particularly involved in Carbon Futures and Options trading both over the counter as well as through the various Carbon Emissions Exchanges.

Anglo American’s Environmental Policy

The Anglo Environment Way (AEW) sets out a consistent approach to responsible environmental management and supports Anglo American’s vision for minimising harm to the environment by designing, operating and eventually closing all operations in an environmentally responsible manner.

New Denmark Methane

- Currently, the mine vents methane into the atmosphere to eliminate the risk of explosion or fire caused by the highly flammable gas in the working areas of the mine. Half the methane gas is currently emitted via boreholes, while the rest is vented through upcast shafts.

- It is preferable to flare the methane, rather than to emit it directly to the atmosphere, as un-flared methane has a significantly higher global warming effect than carbon dioxide.

Methane flaring as a means of earning carbon credits is recognised by the Kyoto protocol's Clean Development Mechanism. The mine is currently awaiting validation of its Project Design Document by the UN’s Framework Convention on Climate Change approved Operating Entity (TUV Sud). It is anticipated that once all protocol issues have been fulfilled, an auditor from TUV Sud will visit the mine to sign off on the sufficiency of the flaring technology and data collection. The generation of carbon credits can then commence, the income from which would cover the cost of the project over a three-year period.