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KUMBA IRON ORE LIMITED - Kumba Iron Ore Update

Release Date: 08/10/2012 14:22
Code(s): KIO     PDF:  
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Kumba Iron Ore Update

Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code:
ISIN: ZAE000085346

KUMBA IRON ORE UPDATE

Kumba Iron Ore (Kumba) confirms that engagement is continuing with
the less than 300 employees who embarked on an illegal strike on
Wednesday, 3 October 2012, at the Company’s Sishen Mine in the
Northern Cape. The strikers are demanding a monthly salary
increase of R15 000 for all Kumba employees over and above what
they are already earning.

The Company’s engagement with the strikers is focused on
encouraging them to leave the mine property, securing all mining
equipment and to resume safe mining operations as soon as
possible.

Production was suspended on Thursday, 4 October 2012, when the
strikers blocked access to the pit, creating an unsafe environment
for mining operations. The Company is losing approximately 120 000
tonnes per day of finished product due to the illegal strike.
However, Kumba currently estimates that it will have sufficient
production from its other mines and stockpiles of finished product
at Sishen Mine and Saldanha to continue supplying its customers
until mid-October. The loading operations at Sishen Mine have also
been affected by the illegal strike and therefore not all load-out
stations are operating at full capacity.

The strikers are all permanent employees belonging to the
Company’s recognised unions, but are acting on their own without
union representation. Sishen Mine employs approximately 12,700
workers.

- Kumba concluded a two-year wage agreement with organised labour
two months ago that makes provision for an increase of between 9%
and 12% (total cost to Company), which is well above the rate of
inflation. Permanent staff below management level also benefit
from Envision, an employee share scheme, that paid out R2.7
billion to 6 209 members at its first maturity date in December
2011. Each Envision scheme member who has been employed by the
Company since its market listing in 2006 received a pre-tax cash
payout of approximately R570 000 at the time. Envision scheme
members also receive dividends twice a year which amounted to R33
675 (pre-tax) per member in August 2012.

The Company will provide further updates as appropriate.

For further information, please contact:
Gert Schoeman
Manager Communication and Branding
gert.schoeman@angloamerican.com
+27 (0)12 683 7019
+27 (0)83 259 6843

Kumba Iron Ore Limited, a member of the Anglo American plc group,
is a leading value-adding supplier of high quality iron ore to the
global steel industry. Kumba produces iron ore in South Africa at
Sishen mine and its new Kolomela mine in the Northern Cape
Province, and at Thabazimbi mine in the Limpopo Province. Kolomela
mine, which was delivered five months ahead of schedule and within
budget, produced approximately 1.5Mt by the end of 2011. The mine
is anticipated to produce at least 6Mt while ramping up in 2012,
before reaching design capacity of 9Mtpa in 2013.Kumba exports
iron ore to customers in a range of geographical locations around
the globe including China, Japan, Korea and a number of countries
in Europe and the Middle East.
www.angloamericankumba.com

Anglo American plc is one of the world’s largest mining companies,
is headquartered in the UK and listed on the London and
Johannesburg stock exchanges. Anglo American’s portfolio of mining
businesses spans bulk commodities – iron ore and manganese,
metallurgical coal and thermal coal; base metals – copper and
nickel; and precious metals and minerals – in which it is a global
leader in both platinum and diamonds. Anglo American is committed
to the highest standards of safety and responsibility across all
its businesses and geographies and to making a sustainable
difference in the development of the communities around its
operations. The company’s mining operations, extensive pipeline of
growth projects and exploration activities span southern Africa,
South America, Australia, North America, Asia and Europe.
www.angloamerican.com

Centurion
8 October 2012

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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