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Coal
estimates as at 31 December 2009

Metallurgical 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 figures reported represent 100% of the Ore Reserves and Mineral Resources, the percentage attributable to Anglo American plc is stated separately. Rounding of figures may cause computational discrepancies. During 2009, Anglo Coal was restructured into three discrete business units: Anglo American Metallurgical Coal representing the dominantly export metallurgical coal business located in Australia; Anglo American Thermal Coal representing the dominantly export and domestic thermal coal business, located in South Africa and Colombia; and the Remaining Coal mines and projects located in Canada and Venezuela. THE COAL RESOURCES ARE REPORTED AS ADDITIONAL TO THE COAL RESERVES.

 

Metallurgical Coal Reserves(1) ROM Tonnes(3)   Yield(4)   Saleable Tonnes(3)   Saleable Quality(5)
Australia Attributable %(2) LOM Classification   2009 2008   2009 2008   2009 2008   2009 2008
Callide (OC) 100 21     Mt Mt   % %   Mt Mt   kcal/kg kcal/kg
Domestic Power     Proved   125.8 134.6   97.4 97.4   122.3 131.0   4,550 4,530
        Probable   87.7 87.7   99.2 99.2   87.0 87.0   4,560 4,550
        Total   213.5 222.3   98.2 98.1   209.3 218.0   4,550 4,540
Capcoal (OC&UG) 71.6 21                       kcal/kg kcal/kg
Export Thermal     Proved   127.0 125.8   2.2 38.9   3.0 53.1   7,070 7,400
        Probable   68.0 90.3   2.9 39.1   2.0 38.6   7,070 7,400
        Total   194.9 216.1   2.4 39.0   5.0 91.7   7,070 7,400
                              CSN CSN
Coking     Proved         37.7 29.8   50.0 39.1   8.0 8.5
        Probable         34.4 17.2   24.4 16.3   7.5 8.5
        Total         36.6 24.5   74.4 55.4   8.0 8.5
Other Metallurgical                           kcal/kg kcal/kg
        Proved         28.7 -   38.1 -   6,980 -
        Probable         29.5 -   20.9 -   7,090 -
        Total         29.0 -   59.0 -   7,020 -
Dawson (OC) 51.0 26                       kcal/kg kcal/kg
Export Thermal     Proved   21.0 205.1   57.6 53.2   12.4 114.1   6,500 6,600
        Probable   161.8 123.0   56.4 30.5   93.9 38.9   6,500 6,620
        Total   182.8 328.1   56.6 44.7   106.3 153.0   6,500 6,610
                              CSN CSN
Coking     Proved         24.4 28.0   5.2 59.6   7.5 7.5
        Probable         18.9 47.5   31.4 61.4   7.5 7.5
        Total         19.5 35.3   36.6 121.0   7.5 7.5
Drayton (OC) 88.2 6                       kcal/kg kcal/kg
Export Thermal     Proved   1.9 26.5   78.4 69.8   1.5 18.5   7,070 6,720
        Probable   31.2 14.4   77.3 69.8   24.1 10.1   6,450 6,740
        Total   33.1 40.9   77.4 69.8   25.6 28.6   6,490 6,730
                              kcal/kg kcal/kg
Domestic Power     Proved         - 25.0   - 6.6   - 5,780
        Probable         - 25.0   - 3.6   - 5,780
        Total         - 25.0   - 10.2   - 5,780
Foxleigh (OC) 70.0 2                       kcal/kg kcal/kg
Other Metallurgical     Proved   1.9 -   71.1 -   1.4 -   6,520 -
        Probable   4.4 -   71.1 -   3.3 -   6,580 -
        Total   6.3 -   71.1 -   4.7 -   6,560 -
Moranbah North (UG) 88.0 29                       CSN CSN
Coking     Proved   123.6 118.4   78.5 75.8   102.5 95.0   7.5 7.5
        Probable   12.2 17.3   74.0 74.0   9.6 13.6   8.0 8.0
        Total   135.8 135.8   78.1 75.6   112.0 108.6   7.5 7.5
Australia Export Thermal 58.7                         kcal/kg kcal/kg
        Proved   401.0 610.4   49.7 50.8   16.9 185.7   6,650 6,840
        Probable   365.3 332.8   59.8 38.8   120.0 87.6   6,500 6,980
        Total   766.4 943.2   58.5 45.4   136.9 273.3   6,520 6,880
Australia Coking 76.5                         CSN CSN
        Proved         63.8 51.8   157.7 193.7   7.5 8.0
        Probable         32.7 46.0   65.3 91.4   7.5 8.0
        Total         54.6 48.6   223.0 285.0   7.5 8.0
Australia Other Metallurgical 71.5                         kcal/kg kcal/kg
        Proved         30.2 -   39.5 -   6,960 -
        Probable         35.2 -   24.2 -   7,020 -
        Total         32.1 -   63.7 -   6,990 -
Australia Domestic Power 100                         kcal/kg kcal/kg
        Proved         97.4 93.9   122.3 137.6   4,550 4,590
        Probable         99.2 96.3   87.0 90.7   4,560 4,600
        Total         98.2 94.8   209.3 228.3   4,560 4,590

Mining method: OC = Open Cast, UG = Underground. LOM = Life of Mine in years based on scheduled Ore Reserves.
For the multi-product operations, the ROM tonnage figures apply to each product.
The Saleable tonnage cannot be calculated directly from the ROM reserve tonnage using the air dried yields as presented since the difference in moisture content is not taken into account.
Attributable percentages for country totals are weighted by Saleable tonnes and should not be directly applied to the ROM tonnage.
Additional footnotes appear at the end of the section.

Export Thermal refers to low- to high-volatile thermal coal primarily for export in the use of power generation; quality measured by calorific value (CV).
Coking refers to a high-, medium- or low-volatile semi-soft, soft or hard coking coal primarily for blending and use in steel industry; quality measured as crucible swell number (CSN).
Other Metallurgical refers to semi soft, soft, hard, semi-hard or anthracite coal, other than Coking Coal, such as pulverized coal injection (PCI) or other general metallurgical coal for the export or domestic market with a wider range of properties than Coking Coal.
Domestic Power refers to low- to high-volatile thermal or semi-soft coal primarily for domestic consumption for power generation; quality measured by calorific value (CV).

Metallurgical Coal Resources - Mine Leases(6)   Tonnes   Coal Quality
Australia Attributable %(2) Classification   2009 2008   2009 2008
Callide 100     MTIS(6) MTIS(6)   kcal/kg(7) kcal/kg(7)
    Measured   317.8 317.8   4,800 4,800
    Indicated   375.3 375.3   4,740 4,740
    Measured and Indicated   693.1 693.1   4,770 4,770
    Inferred (in LOM)(8)   0.4 0.4   4,050 4,050
Capcoal 71.6 Measured   101.3 181.2   6,810 7,160
    Indicated   116.0 119.8   6,750 7,160
    Measured and Indicated   217.3 301.0   6,780 7,160
    Inferred (in LOM)(8)   12.0 8.6   6,560 7,160
Dawson 51.0 Measured   163.1 162.3   6,650 6,560
    Indicated   278.6 215.1   6,650 6,590
    Measured and Indicated   441.7 377.4   6,650 6,580
    Inferred (in LOM)(8)   103.5 2.7   6,710 6,540
Drayton 88.2 Measured   0.9 9.3   6,870 6,730
    Indicated   12.5 12.4   6,730 6,760
    Measured and Indicated   13.4 21.7   6,740 6,750
    Inferred (in LOM)(8)   0.1 1.3   5,910 6,860
Foxleigh 70.0 Measured   10.0 1.8   6,760 7,680
    Indicated   58.9 71.0   6,480 7,420
    Measured and Indicated   68.9 72.7   6,520 7,430
    Inferred (in LOM)(8)   - -   - -
Moranbah North 88.0 Measured   42.1 32.4   6,590 6,730
    Indicated   20.0 22.4   6,480 6,730
    Measured and Indicated   62.2 54.7   6,550 6,730
    Inferred (in LOM)(8)   0.1 0.6   6,800 6,730
Australia - Mine Leases 77.6           kcal/kg(7) kcal/kg(7)
    Measured   635.2 704.7   5,750 5,930
    Indicated   861.4 816.0   5,820 5,900
    Measured and Indicated   1,496.6 1,520.7   5,790 5,920
    Inferred (in LOM)(8)   116.0 13.6   6,690 6,910
Metallurgical Coal Resources - Projects(6)   Tonnes   Coal Quality
Australia Attributable %(2) Classification   2009 2008   2009 2008
Dartbrook 77.5     MTIS(6) MTIS(6)   kcal/kg(7) kcal/kg(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 100 Measured   240.1 227.8   6,350 6,650
    Indicated   117.2 111.9   6,340 6,660
    Measured and Indicated   357.3 339.7   6,350 6,650
Moranbah South 50.0 Measured   56.0 -   5,940 -
    Indicated   149.7 -   6,290 -
    Measured and Indicated   205.7 -   6,190 -
Saddlers Creek 88.2 Measured   398.9 398.9   6,440 6,440
    Indicated   137.9 137.9   6,340 6,340
    Measured and Indicated   536.8 536.8   6,410 6,410
Taroom 51.0 Measured   36.4 36.4   5,560 5,560
    Indicated   89.0 89.0   5,580 5,580
    Measured and Indicated   125.5 125.5   5,570 5,570
Theodore 51.0 Measured   - -   - -
    Indicated   358.2 358.2   6,250 6,250
    Measured and Indicated   358.2 358.2   6,250 6,250
Australia - Projects 74.9           kcal/kg(7) kcal/kg(7)
    Measured   901.5 833.2   6,300 6,410
    Indicated   903.9 749.0   6,210 6,240
    Measured and Indicated   1,805.4 1,582.2   6,260 6,330
Metallurgical Coal Resources - Mine Lease and Projects(6)   Tonnes   Coal Quality
Australia Attributable %(2) Classification   2009 2008   2009 2008
Total 76.1     MTIS(6) MTIS(6)   kcal/kg(7) kcal/kg(7)
    Measured   1,536.7 1,537.9   6,070 6,190
    Indicated   1,765.3 1,565.0   6,020 6,060
    Measured and Indicated   3,302.0 3,102.9   6,050 6,130
    Inferred (in LOM)(8)   116.0 13.6   6,690 6,910

Brown Coal

Brown Coal Resources(6)
  Tonnes   Coal Quality
Australia Attributable %(2) Classification   2009 2008   2009 2008
Monash Energy 100     MTIS(6) MTIS(6)   kcal/kg(7) kcal/kg(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
Australia Brown Coal Resources 100           kcal/kg(7) kcal/kg(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

Coal Bed Methane

Coal Bed Methane Reserves
  Saleable Volume(9)   Saleable Energy Content(9)
Australia Attributable %(2) Classification   2009 2008   2009 2008
Dawson 51.0     MMcf MMcf   PJ PJ
    Proved: 1P   45,392 49,882   48 53
    Probable: 2P-1P   100,259 100,259   106 106
    Total: 2P   145,651 150,141   154 159
Harcourt 25.5 Proved: 1P   - -   - -
    Probable: 2P-1P   36,902 36,902   39 39
    Total: 2P   36,902 36,902   39 39
Australia CBM Reserves 45.8           PJ PJ
    Proved: 1P   45,392 49,882   48 53
    Probable: 2P-1P   137,161 137,161   145 145
    Total: 2P   182,553 187,043   193 197

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).

(1)
Coal Reserves are quoted on a Run Of Mine (ROM) reserve tonnage basis which represents the tonnes delivered to the plant. Saleable reserve tonnage represents the product tonnes produced. Coal Reserves (ROM and Saleable) are on the applicable moisture basis.
(2)
Attributable (%) refers to 2009 only. For the 2008 Reported and Attributable figures, please refer to the 2008 Annual Report.
(3)
The tonnage is quoted as metric tonnes. ROM tonnages on an As Delivered moisture basis, and Saleable tonnages on a Product moisture basis.
(4)
Yield (%) represents the ratio of Saleable reserve tonnes to ROM reserve tonnes and is quoted on a constant moisture basis or on an air dried to air dried basis. The product yields for Proved, Probable and Total are calculated by dividing the individual Saleable reserves by the total ROM reserves per classification.
(5)
The coal quality for the Coal Reserves is quoted as either Calorific Value (CV) using kilo-calories per kilogram (kcal/kg) units on a Gross As Received (GAR) basis or Crucible Swell Number (CSN). Coal quality parameters for the Coal Reserves for Coking, Other Metallurgical and Export Thermal collieries meet the contractual specifications for coking coal, PCI, metallurgical coal, steam coal and domestic coal. Coal quality parameters for the Coal Reserves for Domestic Power and Domestic Synfuels collieries meet the specifications of the individual supply contracts. CV is rounded to the nearest 10 kcal/kg and CSN to the nearest 0.5 index.
(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) using kilo-calories per kilogram (kcal/kg) units on a Gross As Received (GAR) basis. CV is rounded to the nearest 10 kcal/kg.
(8)
Inferred (in LOM) refers to Inferred Coal Resources that are included in the life of mine extraction schedule of the respective collieries and are not reported as Coal Reserves. Inferred Coal Resources outside the LOM plan but within the mine lease area are not reported due to a) the uncertainty attached to such resources in that it cannot be assumed that all or part of the Inferred Resource will necessarily be upgraded to Indicated or Measured categories through continued exploration, b) such Inferred Resources do not necessarily meet the requirements of reasonable prospects for eventual economic extraction, particularly in respect of future mining and processing economics.
(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:
The 2009 submission has been based on depletion of the 2008 resource and reserve estimates by the actual 2009 production. Work is currently underway to generate a new life of mine plan for Callide for supply to domestic and other customers. This work is expected to be complete by end 2010 at which time a full economic re-assessment of the resource and reserve position will be available.
Capcoal:
Resources in areas down-dip of Central and to the east of Grasstree have been reallocated (-80 Mt). Closure of the Aquila bord and pillar operation has reduced ROM reserves (-22 Mt).
Dawson:
Mining at Dawson North ceased in early 2009 (-37 Mt ROM). Resource classifications have been revised resulting in a decrease in areas of reserves (-108 Mt) and an increase in Inferred Resources within the mine plan (+101 Mt). Exploration commencing in 2010 is expected to bring Inferred Resources within the mine plan progressively to reserve status during 2011.
Drayton:
Reserves - Revision of mine plan and exclusion high cost areas in south / south west of lease (-8 Mt ROM). Resources - Resources reallocated due to geological complexity (- 9 Mt).
Foxleigh:
Reserves reported for the first time representing reserves in the immediate mining areas (+6 Mt ROM).
Grosvenor:
Approval obtained for the commencement of a detailed feasibility study for an underground longwall operation in 2010.
Jellinbah:
Not reported in 2009 due to <25% attributable interest. Moranbah North:Resource increase attributable to changes in mine design and additional exploration (+7 Mt).
Moranbah South:
Resources are reported for underground mining areas which have reasonable potential for eventual economic extraction based on exploration and studies completed in 2009 (+206 Mt).
Brown Coal
Monash Energy:
Resource estimates have not changed from 2008 because no additional data was added in 2009. 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 2009 estimates.

Assumption with respect to Mineral Tenure

Callide:
An expectation that a Mining Lease Application which has been lodged will be granted for the northern part of the Kilburnie area. A Mining Lease Application will be lodged and is expected to be granted for the Amy's Find area as an extension to the existing mining area at The Hut.
Foxleigh:
A Mining Lease Application will be lodged and is expected to be granted for the Plains area.

Reviews by independent third parties were carried out in 2009 on the following Operations and Project areas: Capcoal Mine Complex, Dawson South, Drayton, Foxleigh, Theodore, Taroom

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Annual Report 2009