a member of the Ferrous Metals and Industries Division of Anglo American plc

Special Report

THE SCAW METALS GROUP• An international group, owned by Anglo American plc • SA operation 26% BEE-owned• Level 7 BEE rating• 44 years of expertise• ISO 14001 and OSHAS 18001 • Manufacturer of steel products1

SAFETY CONCERNS ALL WORKERS

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Safety

Scaw South Africa (Pty) Ltd (Scaw SA) is pleased to announce that its acquisition of Ozz Industries (Pty) Ltd (Ozz) was approved by the South African Competition Authorities and

completed on Thursday, 19 June 2008.

With effect from 1 July 2008, the Ozz businesses were divisionalised within Scaw SA and will, henceforth, trade under the Scaw Metals Group brand with their four factory sites being renamed as follows:

• Scaw Metals Group – Boksburg Foundry• Scaw Metals Group – Dimbaza Foundry• Scaw Metals Group – Eclipse East Foundry • Scaw Metals Group – Eclipse West Foundry

Scaw SA is part of the international Scaw Metals Group. Scaw’s operations are housed in two companies, Scaw South Africa (Pty) Ltd, which acquired Ozz, and Scaw International Sarl.

The acquisition of the Ozz group of foundries will expand Scaw’s product range and provide capacity for expansion of certain of Scaw’s existing product lines.

This is an exciting prospect for all concerned and Scaw welcomes its new colleagues from Boksburg, Dimbaza and Eclipse foundries to the Scaw Metals Group.

Top: Norman Mbazima, chief executive officer designate, Scaw Metals Group. Norman says, “We are excited about the acquisition of Ozz Industries which complements and expands Scaw’s range of products, services and expertise. We are looking forward to working with our new team members and forging a successful future together”.

Below : Ian Botha, acting CEO.

Scaw Metals welcomes its new Ozz employees into the fold

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August 2008

Ian says, “We welcome the Ozz team into Scaw. Over the next month we will be arranging a number of presentations and workshops to meet our new team and discuss our business strategy. Our first priority is on safety.”

Johan Burger is operations manager and a director of Scaw SA. He has served the group for 27 years.Johan started his career in the mining industry as an engineer prior to joining Scaw. He holds a BEng in Electrical Engineering and a Government Certificate of Competency.

Christopher Davis is the chief financial officer of the Scaw Metals Group and a director of Scaw SA and Scaw International. He is a chartered accountant who started his career in Anglo American in Corporate Finance. Chris, who is passionate about business performance, also plays a key role in Scaw’s informa-tion technology and supply chain activities. Chris will be working with the team to ensure best financial and accounting practices.

Deirdré Lingenfelder, group SHE manager. Last year she became the first woman in the group to be ap-pointed to Scaw South Africa’s Executive Committee. Since joining the group in 2003 she has stamped SHE in Scaw with her own personal brand of results-oriented commitment. She has a Bachelor of Science degree, a Bachelor of Science Honours degree in Biological Science, a Master of Science degree in Physiology and is completing a Master of Commerce degree in Business Management.

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Meet the management team

Markus Hannemann is manager, Grinding Media, former Ozz foundries and Scaw’s Standard Foundry. He has been with the group for 21 years having joined Haggie Rand as a pupil engineer. Markus holds a MBA and a NHD in Mechanical Engineering and a Government Certificate of Competency. Allan Wedderburn (currently Ozz operations director) and Paul Johnston (currently Ozz engineering director) will report to Markus.

John Kemble is head of human resources for the Scaw Metals Group. He has 24 years service with Anglo American having worked in coal, gold, financial services and base metals, with the last six years spent at Scaw. John will work closely with Hendrick Mokolane and the Ozz team to ensure that world-class people practices are a feature of the new divisions. His qualifications are BSocSci (Natal); CPIR (Wits); Advanced Labour Law (UNISA).

Laurence Erasmus is sales and marketing manager,Cast Products, Scaw SA. He has served the group for 27 years and has extensive experience in many areas of the Scaw business, including Finance, Scrap and Procurement. He holds a Bachelor of Commerce degree. Kevin Knott-Craig (currently Ozz sales and marketing director) will report to Laurence.

Norman Mbazima will be joining Scaw in September 2008 as chief executive officer subject to remaining formalities on Anglo Platinum’s mineral right conversions being completed. He is currently chief financial officer of Anglo Platinum. Norman is a chartered accountant and has gained extensive experience in base metals, coal and platinum since joining Anglo American in 2001.

Scaw’s strategy focuses on achieving world class performance in all areas of the business, including:

Providing a safe and healthy environ-ment where all employees are treated with dignity, care and respect, and by demonstrating commitment to sustain-able development through ethical business practices, environmental excellence and social responsibility.Continuously improving the operating efficiency of existing assets.Investing to develop new value adding capacity to expand a well-balanced portfolio of world class assets.Pursuing acquisition and business deve-lopment opportunities based on leverag-ing Scaw’s core competencies.Aiming to become the employer of choice through establishing a culture that is meritocratic, open and empower-ing to attract the best talent and ensure that employees can realise their full potential in driving superior business performance.Seeking to optimise the efficiency of the supply channel and to improve the focus on marketing and customer relationships.

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Gareth Campbell, who has held the position of chief executive officer of Ozz foundries, has agreed to make himself available in a strategic consulting role to Scaw for the next three months to ensure a smooth transition takes place as Ozz Industries is integrated into the Scaw operations. Alastair Moffat, chairman, has retired from Ozz. Tony Welton, finance director, will be retiring from Ozz in September 2008.

OUR STRATEGY

MANAGEMENT TEAM ORGANISATIONAL STRUCTURE

Johan Burgeroperations manager

Rolled Products, Cast Products,Grinding Media

Norman Mbazimachief executive officerScaw Metals Group*

Laurence Erasmussales & marketing manager

Cast Products

Markus Hannemannmanager, Grinding Media,Ozz and Standard Foundry

Boksburg Foundry

Dimbaza Foundry

Eclipse East Foundry

Eclipse West Foundry

* Ian Botha will be acting CEO until Norman takes up his post

Service departments will generally have operational reporting lines to the managers of their operations and in the case of HR, Finance and SHE a strong technical reporting line to the head of the discipline at the centre.

Christopher DavisFinance

John KembleHuman Resources

Deirdré LingenfelderSHE

Keith TaylorWire Rod Products

Together, Scaw and Ozz will make strides

Scaw is an international group manufacturing a diverse range of steel products. Its principal operations are located in South Africa, South America, Canada and Australia. Smaller operations are in Namibia, Zimbabwe and Zambia.

The main product lines manufactured by the group are rolled steel (much of which is supplied to Scaw’s downstream operations), steel and alloy iron castings, cast alloy iron and forged steel grinding media, chain, steel wire rope, strand and wire products. These are supplied to the global construction, railway, power generation, mining, cement, marine, engineering and agricultural markets.

Ozz Industries is a South African manufacturer and supplier of crusher and mill consumable steel wear parts and a small quantity of grinding media to the mining and aggregate industries in Africa, Australia, Europe and North America.

Ozz operates four foundries in South Africa and three distribution centres in Australia. The four operations in South Africa are Eclipse East and Eclipse West (both in Benoni South), the Boksburg operation (also on the East Rand), and the Dimbaza operation in the Eastern Cape.

Together these two businesses will make great strides.

THE HIGHEST OF STANDARDSScaw is an ISO 9000-series accredited organisation manufacturing products to meet the requirements of the appropriate international certification authorities. Scaw’s safety, health and environmental management systems are aligned with the international ISO 14001 and OSHAS 18001 standards. In the same way that Scaw adheres to the highest quality standards, so too does Ozz. Ozz’s quality assurance policies, procedures and practices are ISO 9001:2000 accredited.

The merging of two important steel businesses into one

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SCAW HAS A PRESENCE ON ALMOST EVERY CONTINENT

Kamloops••Edmonton

Guadalajara•

Lima•Arequipa•

Mejillones•

Santiago•Talcahuano•

•Piombino

•Kitwe•Kwe Kwe

•Benoni, Boksburg, Germiston, Johannesburg, Springs, Vanderbijlpark, Vereeniging•Durban

•Taguig

•Townsville

•Newcastle•Sydney

Melbourne•Perth•

FACTORY AND MARKETING SITES

SCAW METALS GROUP STRUCTURE

Anglo American

plc

Scaw South Africa

(Pty) Ltd

ScawInternational

Sarl

RolledProducts

Cast *Products

Wire Rod Products

ScawGrinding Media

ScawAltaSteel

Rolled Products

BEE Consortium &

ESOP

ScawGrinding Media

*The former Ozz businesses fall under Cast Products, Scaw SA.

26% 74% 100%

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Eastern Cape•KEY

• Factory and marketing site• Marketing site

Namibia•

Over the next month the management team at Scaw will be arrang-ing a number of presentations and workshops to meet with you to discuss the business strategy and to get your valuable input into this new partnership.

The success of the integration will depend on your commitment and expertise, and we look forward to your contribution.

SAFETY FIRSTEvery person in Scaw must return safely and healthily to their families after their working day. Safety is a non-negotiable requirement under-pinning every aspect of what we do, at work and at home.

A detailed safety, health and environment plan that ensures safe and sustainable production has been developed and is currently being rolled out across the Boksburg, Dimbaza and Eclipse foundries.

KEY MESSAGESOur vision is one of zero harm.Our approach is founded on sound risk management.Excellence in safety, health and environment are about leadership in action – getting out there, supporting our people, day in and day out.Safety is about actions, leadership, heart and passion – it is personal.Safety is about consistency and predictability.Safety is about working to the right high standards.Safety is about never walking past an unsafe act or condition.Safety is about being your brother’s keeper.

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Safety, employee well-being and environmental management are priorities

Safety, health andenvironmentare number 1.

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SCAW SOUTH AFRICA IS LEVEL 7 BEE RATEDIn early 2007 Scaw SA completed a landmark empowerment transaction introducing a Black Economic Empowerment (BEE) Consortium (21%) and an employee share ownership plan, ESOP (5%), as shareholders in the South African business (then valued at R5,3 billion). Scaw SA’s BEE partners are Izingwe, Southern Palace and Shanduka.

Scaw SA is the first steel producer to receive a BEE rating. The Economic Empowerment Rating Agency (Empowerdex) has rated Scaw SA as a Level Seven Contributor for the period November 2007 to November 2008, allowing 50% of all procurement from Scaw to be classified as BEE spend.

IMPORTANTEmployees from the former Ozz group of foundries will qualify to participate in the ESOP. Details will be provided in due course.

OUR PRINCIPLESThe Scaw Metals Group approach is founded on a zero mindset, no repeats, and strict rules and standards. This is an approach that insists on an absolute adherence to Scaw’s SHE policies, standards and procedures at all times – it is intolerant of unsafe acts and/or conditions.

WHY DID SCAW BUY OZZ?The acquisition of the Ozz group of foundries will expand Scaw’s product range and provide capacity for expansion of certain of Scaw’s existing product lines.

WHAT ARE SCAW’S PLANS WITH OZZ?Scaw is a long-term owner of Ozz and intends to invest in and grow these businesses with a view to unlocking their full potential.

WILL YOU HAVE A SECURE FUTURE?The Scaw Metals Group is a leading industry player. It has been in existence since 1924 and its partnership with the people of Ozz will make it an even greater force. There is a job and an exciting future for every person who wants to make a contribution.

HOW WILL OZZ INTEGRATE WITH SCAW?Through Scaw’s acquisition of Ozz, all current employees of Ozz have become employees of Scaw.

WHAT WILL HAPPEN TO MY EMPLOYMENT CONDITIONS?All employees have transferred to Scaw on their same terms and conditions of employment.

WHAT IS SCAW’S VIEW OF DIVERSITY?Scaw values the diversity and richness of the businesses that become its own and the countries in which it operates. We believe that by drawing on this diversity we will become an even more successful company. We look to build leadership teams made up of multiple nationalities and we are committed to enhancing the number of women working in the industry.

Your important questions answered by the management team

WHERE DO I GET ANSWERS TO OTHER QUESTIONS?Please feel most welcome to approach any member of the leadership team should you have any questions or wish to make any sug-gestions. John Kemble, head of our Human Resources department worldwide, may be contacted on jkemble@scaw.co.za

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This brochure was produced by Headline News 011 467 0281 susan@headline.co.za

CONTACT DETAILSTel: +27 11 842 9000 Fax: +27 11 842 9721www.scaw.co.za