ARI - African Rainbow Minerals Limited - Khumani 10mtpa Iron Ore Mine completed

ARI - African Rainbow Minerals Limited - Khumani 10mtpa Iron Ore Mine completed 
on time and within budget                                                       
African Rainbow Minerals Limited                                                
(Incorporated in the Republic of South Africa)                                  
(Registration number 1933/004580/06)                                            
JSE Share code: ARI                                                             
ISIN: ZAE000054045                                                              
("ARM")                                                                         
Khumani 10mtpa Iron Ore Mine completed on time and within budget                
Approval of an additional R5.5 billion capital expenditure for completion of the
Khumani 6 mtpa Expansion Project bringing total capacity to 16mtpa              
Assmang Limited ("Assmang"), which is jointly controlled by African Rainbow     
Minerals ("ARM") and Assore Limited ("Assore"), is pleased to announce that:    
-  the 10 million tonne per annum ("mtpa") Khumani Iron Ore Mine                
  ("Khumani") has been completed on time and within budget;  and                
-  the ARM and Assore Board of Directors have approved additional capital       
  expenditure ("capex") of R5.5 billion for the completion of the Khumani       
  Expansion Project, to increase Khumani`s capacity from the current            
  level of 10 mtpa to 16 mtpa.                                                  
The estimated total capex for the proposed Khumani Expansion Project is R6.7    
billion based on the feasibility study completed in June 2009, which compares   
favourably to the previous estimate in September 2008 of R7.2 billion.          
Expenditure of R1.2 billion has already been approved in September 2008 for     
early works and long lead items, hence the outstanding capital requirement for  
the completion of the Khumani Expansion Project comes to R5.5 billion.          
Of the 6 mtpa expansion, 4 mtpa is intended for the export market and 2 mtpa for
the domestic market. Assmang has received a commitment from Transnet to extend  
the current Iron Ore Export allocation on the Sishen/Saldanha export channel    
from 10 mtpa to 14 mtpa, increasing Assmang`s export capacity accordingly. This 
dovetails with the Iron Ore channel expansion from 47 mtpa to 60 mtpa.          
Assmang will fund the completion of the Khumani Expansion Project utilizing     
existing cash resources, operational cashflows and existing borrowing           
facilities. The Khumani Expansion Project has robust returns and the high grade 
iron ore resource, with an excellent stripping ratio of 1.7 over the life of    
mining operations, ensures competitive mining costs.                            
ENDS                                                                            
For more information please contact:                                            
Monique Swartz                                                                  
Corporate Development and Head of Investor Relations                            
Office: +27 11 779 1507                                                         
Mobile: +27(0) 83 4112881                                                       
E-mail: monique.swartz@arm.co.za                                                
Jan Steenkamp                                                                   
Chief Executive : ARM Ferrous                                                   
Office: +27 82 492 6948                                                         
E-mail: jan.steenkamp@arm.co.za                                                 
Johannesburg                                                                    
12 August 2009                                                                  
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited               
Date: 12/08/2009 14:11:03 Supplied by www.sharenet.co.za                     
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