KUMBA IRON ORE LIMITED - Kumba institutes closing procedures for Thabazimbi mine

Kumba institutes closing procedures for Thabazimbi mine

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")

Kumba institutes closing procedures for Thabazimbi mine

Kumba Iron Ore Limited ("Kumba"), a business unit of the Anglo American group, has today commenced a
consultation process in terms of section 189 of the Labour Relations Act, through its subsidiary Sishen Iron Ore
Company (Pty) Ltd, as part of closure procedures at its Thabazimbi mine in Limpopo Province, South Africa.
Kumba’s decision to close the operation follows an extensive review of the Thabazimbi mine and is in response
to a combination of factors that have affected the mine’s economic viability. These include the following:

    -   the mine is more than 80 years old, and has over the past 15 years had its closure postponed 6 times
        through a number of mine life extension plans;
    -   difficult mining conditions due to the inherent geo-technical complexities are now exacerbated by a
        limited remaining iron ore resource;
    -   very high operating costs which are due to high waste stripping requirements; and
    -   a slope failure on 6 June 2015 which has rendered the iron ore resources in the one remaining pit
        uneconomic to mine.

The closure of the mine will impact approximately 800 employees and 360 contractors. Kumba is conducting
extensive consultations and this will continue throughout the process.

Norman Mbazima, CEO of Kumba Iron Ore, explained: "These are challenging times for the iron ore industry and
difficult times for our employees and the mine’s contractors. We are however taking the steps necessary to
ensure we have a viable and resilient business for the long term. Closing a mine is a difficult and painful process
and its impact cannot be taken lightly. We have looked at all options to further sustain the mine, having already
extended its life several times in recent years, and have come to the inevitable conclusion that this mine has
now come to the end of its life."

"We are committed to supporting all our employees and treating them with care and respect through this difficult
process, mindful of the sensitivity the situation demands."

Guided by global best practice, the Anglo American Closure Standards and the applicable statutes, Kumba will
strive to conclude the process as soon as possible, taking employees, the environment, Thabazimbi town and its
community into consideration throughout.

For further information, please contact:                  Investors
Media
Yvonne Mfolo                                              Nerina Bodasing
Tel: +27 (0)12 683 7067                                   Tel: +27 (0)12 622 8324
Mobile: +27 (0)83 469 4566                                Mobile: +27 (0)82 940 7505


16 July 2015

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

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