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Restructuring of Sishen Mine and commencement of Section 189 process
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”)
RESTRUCTURING OF SISHEN MINE AND COMMENCEMENT OF SECTION 189 PROCESS
Sishen Iron Ore Company (Pty) Ltd (“SIOC”), an operating company of Kumba Iron Ore Limited, today
commenced a consultation process in terms of section 189 and 189A of the Labour Relations Act. Kumba
Iron Ore Limited is a business unit of Anglo American.
The consultation about workforce reductions follows a decision to restructure Sishen Mine to a lower cost
pit configuration. This was necessitated by sharply lower iron ore prices and both increased capital costs
and increased operating expenses due to the current high waste stripping requirements. The new mine
plan will exclude areas with high strip ratios, resulting in less waste needing to be mined as well as a
decreased level of iron ore production. The new Sishen mine plan significantly reduces mining and
production activities and necessitates a re-evaluation of the equipment and workforce needed to support
a smaller, more focused operation.
The restructuring of the mine will impact approximately 2,633 Kumba employees. Contractors at the mine
have commenced with their restructuring process and approximately 1,300 contractors will be affected.
SIOC is conducting extensive consultations with all stakeholders.
Norman Mbazima, CEO, stated: ‘This has been an extremely difficult decision but, after exhausting all
other avenues and doing all we could have done to reduce costs, we have no choice but to take more
significant steps to preserve the viability of the mine. We are mindful of the sensitivity that this situation
demands, and are committed to supporting all our employees at Sishen, as we have done throughout the
other restructuring processes at Kumba. We aim to ensure that our people are treated with the same care
and respect throughout this difficult process.’
Kumba will engage and update all stakeholders as necessary.
Centurion
28 January 2016
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
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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