KUMBA IRON ORE LIMITED - Kumba Iron Ore Limited Production And Sales Report For The Quarter Ended 30 September 2012

Kumba Iron Ore Limited Production And Sales Report For The Quarter Ended 30 September 2012

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: KIO
ISIN: ZAE000085346

KUMBA IRON ORE LIMITED PRODUCTION AND SALES REPORT FOR THE QUARTER
ENDED 30 SEPTEMBER 2012

Kumba Iron Ore Limited (“Kumba” or “the Company”) today released
its production and sales report for the quarter ended 30 September
2012. Throughout this report, production and sales volumes
referred to are 100%, attributable to shareholders of Kumba as
well as the non-controlling interests in Sishen Iron Ore Company
(Pty) Limited.

Overview:

- Total production of 12.5Mt (million metric tonnes) represented
increases of 14% year on year and 9% quarter on quarter.
- Ramp up of production at Kolomela mine ahead of schedule, with
2.5Mt produced during the quarter.
- Total export sales volumes of 10.0Mt - an increase of 9% year on
year.


Production summary
                             Quarter         %   Quarter
                               ended    change     ended   % change
                                       Sep Q12              Sep Q12
                Sep
                                 Sep        vs       Jun         vs
                2012
‘000 tonnes                     2011   Sep Q11      2012    Jun Q12
Total             12,497      10,953        14    11,449          9
- Sishen mine      9,756      10,450       (7)     9,448          3
DMS plant          6,610       6,938       (5)     6,720        (2)
Jig plant          3,146       3,512      (10)     2,728         15
- Kolomela
mine                 2,500       299       736     1,739         44
- Thabazimbi
mine                   241       204        18       262        (8)

Sales summary
                             Quarter         % Quarter
                               ended    change   ended     % change
                                       Sep Q12              Sep Q12
                     Sep         Sep        vs     Jun           vs
‘000 tonnes         2012        2011   Sep Q11    2012      Jun Q12
Total             11,122      10,705         4  11,966          (7)
 - Export
sales                9,959     9,167         9    10,598        (6)
- Domestic
sales                1,163     1,538      (24)     1,368       (15)
Sishen mine         854    1,336     (36)     981      (13)
Thabazimbi
mine                309      202       53     387      (20)

Sishen mine’s production increased by 0.3Mt or 3% quarter on
quarter to 9.8Mt, driven by the implementation of a production
improvement plan. However, Sishen mine’s production declined by 7%
year on year, as mining feedstock and quality constraints
continued to impact plant throughput.

Kolomela mine continues to ramp up well and remains within its
capital expenditure budget. Production of 2.5Mt from Kolomela mine
was 44% higher than the second quarter. The mine reached monthly
design capacity in July 2012 and sustained these levels during the
third quarter. Kolomela mine should produce at least 7Mt whilst
ramping up in 2012, before reaching design capacity of 9Mtpa in
2013.

Production at Thabazimbi mine increased by 18% year on year to
0.2Mt, mainly as a result of the implementation of mining and
production improvement plans. However, production decreased by 8%
quarter on quarter due to pit complexities as the mine nears the
end of its life.

Total export sales volumes increased by 9% year on year to 10.0Mt,
but decreased by 6% quarter on quarter. Destocking by steel mills
during the beginning of the quarter saw a decline in the demand
for seaborne iron ore and consequently weaker index iron ore
prices. The market has since recovered somewhat, with steel mills
returning to the market, which is reflected in the increase in
index iron ore prices.

Finished product stockpile levels amounted to 5.2Mt at Sishen and
Kolomela mines, Saldanha and Qingdao ports as at 30 September 2012.

Domestic sales volumes of 1.2Mt declined 0.4Mt year on year due to
reduced off-take by ArcelorMittal South Africa Limited during the
quarter.

During October 2012, production was impacted when less than 300
employees embarked on an illegal strike on Wednesday, 3 October
2012 at Sishen mine. Production was suspended on Thursday, 4
October 2012, when the miners blocked access to the pit, creating
an unsafe environment for mining operations. The illegal strikers
were removed by the police on the morning of 16 October 2012. The
Company regained possession of all the heavy mining equipment
which was held by the illegal strikers. However, production
continues to be impacted during the process to ramp-up production
again at the mine, as attendance rates in the mining production
area are on average still lower than 50%, with incidences of
intimidation being reported. As at Wednesday, 24 October 2012,
Kumba lost approximately 2.2Mt of finished product at Sishen mine.
The Company will provide further updates as appropriate.

For further information, please contact:

Esha Mansingh
Investor Relations
Tel: +27(0)12 683 7257/+27(0)83 488 9427
Email: esha.mansingh@angloamerican.com

Centurion
25 October 2012

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


Notes to editors:
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
should produce at least 7Mt 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

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