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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")
SISHEN SUPPLY AGREEMENT
Shareholders were previously advised that the Sishen Iron Ore Company (Pty) Ltd
(“SIOC”) and ArcelorMittal South Africa Limited (“AMSA”) were engaging with each
other, under the guidance of a mediation process facilitated by the Department
of Trade and Industry, with respect to the terms and conditions on which SIOC
would sell iron ore to AMSA after 31 December 2012 and until the finalisation of
the arbitration between the parties regarding the status of the 2001 Sishen
Supply Agreement.
SIOC and AMSA have reached agreement on the basis of the new interim pricing
agreement which will govern the terms and conditions on which SIOC will sell
iron ore to AMSA from the Sishen Mine with effect from 1 January 2013(“the new
interim pricing agreement”) and have agreed that SIOC will supply a maximum
annual volume of 4.8 million tonnes of iron ore to AMSA at a weighted average
price of US$65 per tonne (calculated on a FOR ex Sishen Mine gate basis). The
lump: fine ratio which has been agreed is 60:40 and the iron ore specifications
to be sold are the same as those which were contained in interim pricing
agreement which had been agreed for the period 1 August 2012 to 31 December 2012
(“the August 2012 interim pricing agreement”). The other terms and conditions
on which iron ore is sold to AMSA from the Sishen Mine will be on materially the
same terms as those contained in the August 2012 interim pricing agreement.
The new interim pricing agreement will be definitive of the parties’ rights in
relation to the supply of iron ore to AMSA from the Sishen Mine for the duration
of the new interim agreement. The new interim pricing agreement will endure for
a period of 12 months (until 31 December 2013) or until the conclusion of the
legal processes in relation to the 2001 Sishen Supply Agreement (whichever is
the sooner).
Shareholders will be informed of further developments in this regard.
Media and investor queries: Anne Dunn: 082 448 2684
Pretoria
13 December 2012
Sponsor to Kumba
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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