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KUMBA IRON ORE LIMITED - Extension of cautionary and update on Sishen Mine's 21.4% mining right

Release Date: 15/12/2015 15:10
Code(s): KIO     PDF:  
Wrap Text
Extension of cautionary and update on Sishen Mine's 21.4% mining right

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
ISIN: ZAE000085346
("Kumba" or the "Company")

Extension of cautionary and update on Sishen Mine's 21.4% mining right

On 3 November 2015, Kumba advised shareholders that it had received notice from the Department of
Mineral Resources ("DMR") that the Director General of the DMR had consented to the amendment of
Sishen Iron Ore Company (Pty) Ltd's ("SIOC") mining right in respect of the Sishen Mine to include the
residual 21.4% undivided share of the mining right for the Sishen mine, subject to certain conditions
(which are described by the DMR as "proposals").

Until the legal and practical implications of the proposed conditions have been clarified with the DMR,
SIOC is unable to accept the conditions. Section 96 of the Mineral & Petroleum Resources Development
Act ("MPRDA") allows for an internal appeal to the Minister of Mineral Resources. Kumba therefore
submitted an internal appeal to the Minister as per the requirements of the MPRDA.

In the interim, Kumba continues to engage with the Minister of Mineral Resources in relation to the
proposed conditions in order to achieve a mutually beneficial solution.

The conditions contained in the Letter of Grant relate substantively to domestic supply, support for skills
development, research & development, and procurement.

Shareholders will be updated as appropriate and are hereby advised to continue exercising caution when
dealing in the Company's shares and securities, until a further announcement is made.

Note to Editors:
The Constitutional Court ruled on 12 December 2013 that the residual 21.4% undivided share of the
mining right in respect of Kumba's Sishen mine, which is owned by Kumba's subsidiary SIOC, remained
available for allocation by the DMR and that, based on the provisions of the MPRDA, only SIOC could
apply to be granted the residual right. SIOC subsequently applied to the DMR in relation to the residual
right.


Centurion
15 December 2015

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

For further information, please contact:

Media                                                     Investors
Nikki Wetzlar                                             Nerina Bodasing
Tel: +27 (0)12 683 7019                                   Tel: +27 (0)12 622 8324
Mobile: +27 (0) 82 561 7407                               Mobile: +27 (0) 82 940 7505

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