KUMBA IRON ORE LIMITED - Kumba to vigorously defend SARS tax assessment

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" or "the Company")

Kumba to vigorously defend SARS tax assessment


Kumba announces the receipt by its 73.9% owned subsidiary, Sishen Iron Ore Company
("SIOC") of a tax assessment from the South African Revenue Service ("SARS") in relation
to the tax years 2006 to 2010, for the amount of ZAR5.5 billion (US$345 million). This
amount includes ZAR3.7 billion (US$230 million) in interest and penalties.


SIOC has cooperated fully with SARS during the course of the audit, but, supported by its
specialist tax and legal advisors, disagrees with SARS' audit findings. SIOC is therefore in
the process of preparing an objection to the assessment, together with an application to the
Commissioner of SARS for a suspension of payment until the matter is resolved.


Norman Mbazima, CEO of the Company, said: "As a responsible corporate citizen, Kumba
and its subsidiaries believe that all taxes owed under South African tax legislation have been
paid and that we comply with all applicable tax laws in all jurisdictions in which we operate."


"Kumba generates substantial value for all its stakeholders and is fully committed to the
transformation of the South African mining industry and to the wider societal and economic
benefits that we bring; for example in 2015 alone, a year during which the iron ore price fell
sharply, our business contributed R900 million in corporate taxes and mineral
royalties, R4.7 billion in salaries and wages, R15.2 billion in local procurement, R6.8 billion
of capital reinvested in the business and R174 million in social investment in health, housing,
education and small business development."

Centurion
29 February 2016

Sponsor

RAND MERCHANT BANK (A division of FirstRand Bank Limited)


For further information, please contact:


Media                                               Investors

Nikki Wetzlar:                                      Nerina Bodasing

Tel: +27 12 683 7019                                Tel: +27 12 622 8324



Notes to editors:

Kumba's contribution to South Africa


Kumba is a responsible corporate citizen and a major contributor to the South African
economy and the communities around its operations. For example, Kumba has paid R30
billion in taxes and royalties over the last five years and an additional R4.4 billion when you
include taxes that we generate (payroll taxes).


Date: 29/02/2016 07:05:00 Supplied by www.sharenet.co.za                     
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