Sharenet Sites 
Sharenet Sites
KIO/ACL - Kumba Iron Ore /ArcelorMittal South Africa - Sishen Supply Agreement 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 ISN: ZAE000085346 ("Kumba") ArcelorMittal South Africa Limited (Incorporated in the Republic of South Africa) Registration number: 1989/002164/06 Share code: ACL ISIN: ZAE000134961 ("AMSA") SISHEN SUPPLY AGREEMENT Following mediation by the Department of Trade and Industry, Kumba and AMSA are pleased to announce that Sishen Iron Ore Company (Pty) Ltd ("SIOC") and AMSA have reached an interim pricing agreement ("the interim agreement") in respect of the supply of iron ore to AMSA from the Sishen Mine on the following basis: i) the duration of the interim agreement will be retrospective to 1 March 2010, and will endure until 31 July 2011 ("the interim period"). ii) AMSA will pay to SIOC a fixed price of $50 per ton of iron ore (Lump material) deliverable to AMSA`s Saldanha Steel plant (for use in the plant), which price is calculated on an FOR ex Sishen mine gate basis, and $70 per ton of iron ore (both Lump and Fine material), deliverable to AMSA`s inland plants (for use in the plants), which price is calculated on an FOR ex Sishen mine gate basis. It should be noted that there will be no escalation in the prices agreed to for the duration of the interim period and that the timing and conditions of payment will be historic terms. iii) As it currently does, AMSA will pay to SIOC the freight costs to transport the iron ore to the Saldanha Steel plant and will be responsible to arrange the transport of the iron ore at its cost to its inland plants. iv) AMSA will be entitled to purchase a maximum of 520 000t of iron ore from the Sishen mine per month ("the maximum monthly amount"), in terms of the interim agreement, on the basis of a Lump: Fine ratio of 73% / 27%. In respect of this maximum monthly amount, deliveries to AMSA`s Saldanha Steel plant will be limited to a maximum of 125 000t of iron ore per month. v) Any iron ore not delivered to AMSA in a specific month as a result of logistics constraints, will be available to AMSA after it has taken 520 000t per month in each of August 2011, September 2011 and October 2011. vi) Any iron ore in addition to the maximum monthly amount will be purchased by AMSA at the then prevailing spot calculated EPP based price. vii) The interim agreement will be definitive of the rights and obligations of the parties regarding the sale of iron ore to AMSA from the Sishen mine during the interim period. This interim arrangement will allow the continuation of current operations at the Saldanha Steel plant with the existing employee complement. AMSA`s export order programme will continue with the viability thereof depending largely on steel prices and exchange rate variations, which will be monitored on a continuous basis. Pretoria 22 July 2010 Sponsor to Kumba RAND MERCHANT BANK (A division of FirstRand Bank Limited) Sponsor to AMSA Deutsche Securities (SA) (Proprietary) Limited Date: 22/07/2010 08:00:04 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
