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ANGLO AMERICAN PLC - Anglo American re Kumba Iron Ore

Release Date: 08/10/2012 16:45
Code(s): AGL     PDF:  
Wrap Text
Anglo American re Kumba Iron Ore

Anglo American plc (“the Company”)
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820

Date: 8 October 2012

Anglo American re Kumba Iron Ore

Anglo American draws your attention to the announcement by Kumba Iron Ore, set out below:



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.


Sponsor: UBS South Africa (Pty) Ltd

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