KIO - Kumba Iron Ore Limited - Market update on capital expenditure and

KIO - Kumba Iron Ore Limited - Market update on capital expenditure and         
production                                                                      
Kumba Iron Ore Limited                                                          
A member of the Anglo American plc group                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 2005/015852/06)                                            
JSE Share code: KIO                                                             
ISIN: ZAE000085346                                                              
("Kumba")                                                                       
MARKET UPDATE ON CAPITAL EXPENDITURE AND PRODUCTION                             
The uncertainties and challenges faced by the global economy have led to a      
period of unprecedented volatility and rapid decreases in commodity prices. The 
Kumba board wishes to advise its shareholders on its planned response to the    
challenges:                                                                     
-    2009 capital expenditure has been reduced by some 20% to $425m. We will    
continue to review capital expenditure and costs against market conditions. 
-    Planned 2009 capital expenditure at Sishen South has been optimized along  
    the critical path and first production remains scheduled for H1 2012.       
-    2009 production is expected to increase by approximately 10% vs. 2008 as   
the Sishen jig plant continues to ramp up.                                  
-    Kumba Iron Ore`s high quality products are produced at low cost on a       
    delivered basis and are thus well placed to survive the current market      
    volatility.                                                                 
-    Due to the volatility of the market, Kumba`s Sishen Mine will look to      
    secure export volumes in the short term by focusing on increasing the       
    quality of products to its customers, albeit with the effect of marginally  
    reducing the Q4 2008 volumes produced by the Mine.                          
Kumba remains confident that the iron ore market fundamentals remain robust in  
the long term.                                                                  
For further information please contact:                                         
Tebello Chabana                                                                 
Tel.: +27 (0)12 683 7067                                                        
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 17/12/2008 09:00:20 Supplied by www.sharenet.co.za                     
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