To view the PDF file, sign up for a MySharenet subscription.

KUMBA IRON ORE LIMITED - Kumba agrees settlement with SARS

Release Date: 03/02/2017 09:09
Code(s): KIO     PDF:  
Wrap Text
Kumba agrees settlement with SARS

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 agrees settlement with SARS

Kumba announces its agreement with the South African Revenue Service (“SARS”) to settle a
dispute relating to assessments received for the years 2006 to 2010 inclusive, and the tax
treatment of the relevant issues in the years 2011 to 2015 inclusive, for a full and final total
settlement amount of R2.5 billion (approximately $185 million). Shareholders are referred to the
announcements released on the Stock Exchange News Service of the JSE Limited on 29
February 2016 and 13 September 2016 regarding the tax discussions between Sishen Iron Ore
Company (“SIOC”), a 76.3% subsidiary of Kumba, and SARS.

Kumba had already provided for an amount of R1.5 billion in its annual financial statements for
the tax years up to 2015, and an additional R1.0 billion will be accounted for in 2016 in respect
of this settlement agreement. The settlement will be paid in full in Q1 2017, with appropriate
adjustments made for current advance payments held on account.

As a responsible corporate citizen, our policy is to be tax compliant in all jurisdictions in which
we operate.

Themba Mkhwanazi, CEO of Kumba, said: “I am pleased that we have reached this important
settlement with SARS, providing clarity for all and enabling us to focus our efforts on ensuring
that Kumba continues to operate at the optimal level and furthers its position as a major
economic and social contributor to the South African economy.”

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 the Company brings; for example in 2015 alone, a year during which the iron ore
price fell sharply, Kumba 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
3 February 2017

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

For further information, please contact:

Media                                                 Investors
Yvonne Mfolo:                                         Nerina Bodasing
Tel: +27 12 683 7067                                  Tel: +27 12 622 8324

Date: 03/02/2017 09:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story