ARCELORMITTAL SOUTH AFRICA LIMITED - ArcelorMittal South Africa/Kumba Iron Ore - Joint Thabazimbi mine to be transferred to ArcelorMittal South Africa

ArcelorMittal South Africa/Kumba Iron Ore - Joint Thabazimbi mine to be transferred to ArcelorMittal South Africa

Kumba Iron Ore Limited                                  ArcelorMittal South Africa Limited
A member of the Anglo American plc group                (Registration number 1989/002164/06)
(“Anglo American”)                                      Share code: ACL
(Incorporated in the Republic of South Africa)          ISIN: ZAE 000134961
(Registration number 2005/015852/06)                    (“ArcelorMittal South Africa”, “the Company” or
Share code: KIO                                         “the Group”)
ISIN: ZAE000085346
(“Kumba” or “the Company”)


Joint announcement - Thabazimbi mine to be transferred to ArcelorMittal South Africa Ltd

Sishen Iron Ore Company Proprietary Limited (“SIOC”), a subsidiary of Kumba Iron Ore Limited
(“Kumba”), and ArcelorMittal South Africa Limited (“AMSA”) are pleased to announce that they have
entered into an agreement to transfer Thabazimbi mine (“the Mine”) to AMSA (“the Transfer”).

Until 2014 Thabazimbi was a captive mine owned and run by SIOC, but supplying ore exclusively to and
funded by AMSA. As a result AMSA is accountable for 96% of the Mine’s current rehabilitation liability,
with SIOC responsible for the site’s management and the remaining liability. The transfer would simplify
this arrangement by making AMSA solely responsible for Thabazimbi’s closure and rehabilitation.

Mining operations at Thabazimbi ceased on 1 September 2016. The identified assets and liabilities of the
Mine will be transferred at a purchase consideration of R1 plus the assumed liabilities. The remaining 63
SIOC employees currently engaged in mine rehabilitation and the preparation and finalisation of the
Mine closure plan will transfer to AMSA on comparable terms, conditions and benefits.

The needs of the Thabazimbi community were identified and have been incorporated into the Mine’s
social closure plan. AMSA, as part of its current financial obligation, will take over the entire social
closure plan and will be responsible for the execution, implementation and funding of these identified
projects while SIOC will retain a right of oversight.

The transfer is dependent on certain conditions being met, most notably: competition authority approval,
cession of the Thabazimbi mining rights in terms of section 11 of the Mineral and Petroleum Resources
Development Act (“MPRDA”), and a satisfactory due diligence investigation by AMSA. On fulfilment of
these conditions, the employees, assets and liabilities will transfer to AMSA. If the conditions are not
satisfied by 28 April 2017 (or a later date agreed to by the companies), the agreement will lapse and
SIOC will proceed with the closure of the Mine.

“In line with our strategy to manage our costs more efficiently in what is a particularly difficult time for the
local steel industry, this agreement allows us to take full management control of the processes and costs
related to the rehabilitation liability at the Thabazimbi mine. In addition we will investigate the feasibility
of different options to possibly restart operations at the mine in order to supplement the company’s
sources of iron ore and with the potential of job creation” said Wim De Klerk, CEO of ArcelorMittal South
Africa.

Themba Mkhwanazi, CEO of Kumba, said, “A transfer of the Thabazimbi mine to AMSA demonstrates
Kumba’s continued support for local beneficiation. This also simplifies the contractual relationship
between the parties around the effective management of rehabilitation. We are pleased with this
development as it would be to the benefit of both companies and stakeholders.”

The transfer is below the JSE transaction thresholds for both companies and this announcement is for
information purposes only.

Centurion and Vanderbijlpark

9 February 2017
Sponsor for Kumba Iron Ore Limited: RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Sponsor for ArcelorMittal South Africa Limited: J.P. Morgan Equities South Africa Proprietary Limited


For further information, please contact:


For Kumba Iron Ore

Media                                               Investors
Ghrethna Kruger                                     Nerina Bodasing
Tel: +27 12 683 7279                                Tel: +27 12 622 8324


For ArcelorMittal South Africa

Manager: Corporate Communications and
Branding
Themba Sepotokele
Tel: (016) 889 2425

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