KUMBA IRON ORE LIMITED - Kumba receives SARS letter of findings for 2011 tax year

Kumba receives SARS letter of findings for 2011 tax year

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 receives SARS letter of findings for 2011 tax year

Shareholders are referred to the announcement released on the Stock Exchange News Service
on 29 February 2016 regarding the receipt of a tax assessment from the South African Revenue
Service (“SARS”) by Kumba’s 73.9% owned subsidiary, Sishen Iron Ore Company (“SIOC”), in
relation to the tax years 2006 to 2010. SIOC subsequently submitted an objection to the
assessment as well as an application for the suspension of payment in relation to the
assessment and is awaiting a response from the Commissioner of SARS on both matters.

Kumba has now received a similar letter of findings from SARS in relation to the 2011 tax year,
indicating potential adjustments to the Company’s taxable income which would result in an
additional tax liability of approximately R1.0 billion, excluding any potential interest and
penalties, should Kumba ultimately be assessed on this basis. 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 and will respond to the letter accordingly and within the
prescribed period.

Themba Mkhwanazi, CEO of Kumba, 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.”
 
As previously disclosed, the field audit for the 2012 and 2013 tax years is in progress. Kumba
will update shareholders as appropriate.  


Centurion
13 September 2016

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