Wrap Text
Kumba granted residual 21.4% mining right for Sishen mine
Anglo American plc
(Incorporated in England and Wales)
(Registration number: 3564138)
Registered office: 20 Carlton House Terrace, London, SW1Y 5AN
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
Kumba granted residual 21.4% mining right for Sishen mine
Anglo American plc draws attention to an announcement issued today by Kumba Iron Ore, the
text of which is set out below:
Kumba Iron Ore Limited (“Kumba”) is pleased to announce that the Department of Mineral
Resources (“DMR”) has, after taking all the relevant considerations into account, granted the
residual 21.4% undivided share of the mining right for the Sishen mine to Kumba’s subsidiary,
Sishen Iron Ore Company (Pty) Ltd ("SIOC") following the completion of an internal appeal
process, as prescribed by section 96 of the Minerals and Petroleum Resources Development
Act.
As a result of the grant of the residual 21.4% undivided share, SIOC is now the sole and
exclusive holder of the right to mine iron ore and quartzite at the Sishen mine. This residual
mining right will be incorporated into the 78.6% Sishen mining right that SIOC successfully
converted in 2009.
Themba Mkhwanazi, CEO of Kumba, said: “Kumba welcomes the news of being awarded the
residual right for the Sishen mine. As our track record shows clearly, Kumba is fully committed
to transformation and will continue contributing towards the achievement of South Africa’s
developmental objectives. We appreciate the work of the Department of Mineral Resources in
bringing this matter to a successful conclusion.”
The consent to amend SIOC’s mining right, by the inclusion of the residual 21.4% undivided
share, is subject to various conditions. The conditions, where applicable, will ultimately form
part of the conditions to the Sishen mining right. These include the requirement for the
continuation of the existing Export Parity Price (“EPP”) based supply agreement between SIOC
and ArcelorMittal SA Limited (“ArcelorMittal”) in its role as a strategic South African steel
producer, as well as SIOC’s continued support of skills development, research and
development and initiatives to enable preferential procurement.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Trevor Dyer
marcelo.esquivel@angloamerican.com trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8992
South Africa Sheena Jethwa
Pranill Ramchander sheena.jethwa@angloamerican.com
pranill.ramchander@angloamerican.com Tel: +44 (0)20 7968 8680
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
Notes to editors:
The Constitutional Court ruled on 12 December 2013 that the residual 21.4% undivided share
of the mining right in respect of SIOC’s Sishen mine remained available for allocation by the
DMR and that, based on the provisions of the Mineral and Petroleum Resources Development
Act, only SIOC could apply to be granted the residual right. SIOC subsequently applied to the
DMR in relation to the residual right.
The key terms of the supply agreement between Kumba and ArcelorMittal, as per the 6
November 2015 SENS announcement are as follows: The EPP will be calculated on the basis
of an international index (the “index price”) and, at certain index price levels, ArcelorMittal will
receive a discounted price, as follows: if the index price is between USD60/t and USD70/t,
ArcelorMittal will receive a 5% discount to the EPP; between USD70/t and USD80/t, a 6.25%
discount would apply and at an index price above USD80/t, a 7.5% discount would apply. If the
index price is below USD60, ArcelorMittal will pay the EPP.
Anglo American is a globally diversified mining business. Our portfolio of world-class
competitive mining operations and undeveloped resources provides the raw materials to meet
the growing consumer-driven demands of the world’s developed and maturing economies. Our
people are at the heart of our business. It is our people who use the latest technologies to find
new resources, plan and build our mines and who mine, process and move and market our
products – from diamonds (through De Beers) to platinum and other precious metals and
copper – to our customers around the world.
As a responsible miner, we are the custodians of those precious resources. We work together
with our key partners and stakeholders to unlock the long-term value that those resources
represent for our shareholders, but also for the communities and countries in which we operate
– creating sustainable value and making a real difference.
www.angloamerican.com
13 October 2016
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 13/10/2016 09:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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