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KUMBA IRON ORE LIMITED - Kumbas commitment to safety, health and sustainability creates shared value for its stakeholders

Release Date: 11/11/2020 08:00
Code(s): KIO     PDF:  
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Kumba’s commitment to safety, health and sustainability creates shared value for its stakeholders

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’s commitment to safety, health and sustainability creates shared value for its stakeholders

Following the annual publication of its sustainability report, Kumba is today presenting its sustainability performance
for the first time. Themba Mkhwanazi, Kumba’s Chief Executive, said: "Sustainability is at the heart of who we are at
Kumba and core to what we do. We recognise that a sustainability mindset, including our non-negotiable commitment
to safety and health, makes us better at our business of producing high quality iron ore. It makes us more resilient,
agile and efficient. There are many highlights, but I am proud that for the fourth year in a row, we have achieved zero
fatalities and have had no major environmental incidents.

"We continue to embed sustainable mining practices into our operations through our Sustainable Mining Plan which
is aligned to the United Nations Sustainable Development Goals. We launched the plan in 2018 and it is built on three
key pillars, aligned with E, S and G:

    -   E: Healthy environment – recognising that biodiversity, energy and water all lie within our stewardship;
    -   S: Thriving communities – building communities with better health, education and levels of employment; and
    -   G: Trusted corporate leader - developing trust, providing ethical value chains and improved accountability.

"Our commitment to sustainability is underpinned by our board structure and governance framework, where
sustainability is represented by a number of internal and external engagement forums, including our Social, Ethics
and Transformation Committee. Furthermore, our executive’s long-term incentives map directly to Kumba
sustainability performance through six metrics namely:

    -   total recordable case frequency rate;
    -   level 3 to 5 environmental incidents;
    -   PM10 dust control;
    -   financial provision provided for rehabilitation and mine closure;
    -   attributable free cash flow; and
    -   attributable return on capital employed

"Kumba has adopted the Anglo American Social Way, a best practice integrated social performance management
system which defines our social performance standard s and governing framework. This guides our approach to
community engagement and development as well as cultural heritage, all of which are essential to our social license
to operate and innovate. The Social Way was leveraged to develop Kumba’s Covid-19 WeCare Community response
plans, providing much needed support for our host communities. This year, for example, we spent R2.4 billion with
more than 300 businesses in our host communities, directly and positively impacting the lives of well over 16 000
people."

Climate change is one of the biggest environmental challenges facing the world. Kumba’s environmental management
efforts are focused on moving the business towards operating carbon neutral and less water intensive mines.

    -   Kumba has a critical role to play in the transition to a low carbon world, both by becoming carbon neutral at
        our operations and by providing high-quality iron ore that allows customers to reduce their carbon emissions
        in the process of steel production.
    -   We are targeting a 30% reduction in greenhouse gas emissions and a 30% improvement in energy intensity
        against our 2016 baseline by 2030. Together with the broader Anglo American group, we are developing
        solar renewable energy generation and investigating green hydrogen as a renewable energy source for
        mining activities.
    -   Kumba revised its water strategy during 2020 and we are targeting a more than 14% reduction in water usage
        by 2025. Water efficiency projects such as the reduction of water usage in dust suppression are being
        implemented.
    -   Kumba’s integrated approach to managing social and climate change risks, recognises the importance of
        cross-disciplinary collaboration for effective risk management through integrated water, energy and carbon
        management.

"To successfully deliver on our purpose to re-imagine mining to improve people's lives, we need to change the way
we mine. We need to earn our social license to innovate. Our FutureSmart Mining(TM) approach which includes our
Sustainable Mining Plan, is focused on technology, digitisation and sustainability working to ensure safer, more
efficient and precise mining with an optimised footprint.

"We are continually improving our business model using new technology and strategies that create a safer, greener
and sustainably profitable business. This provides more control over our destiny such that we can meet all of our
sustainability commitments and create value f or all of our stakeholders."

Following Kumba’s Sustainability Performance presentation, a full recording will be available at the link below
https://www.angloamericankumba.com/investors/investor-presentations/2020

Centurion
11 November 2020

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

For further information, please contact:

Company Secretary
Fazila Patel
f azila.patel@angloamerican.com
Tel: +27 12 683 7060
Mobile: +27 83 297 2293

Investors                                             Media
Penny Himlok                                          Sinah Phochana
penny.himlok@angloamerican.com                        sinah.phochana@angloamerican.com
Tel: +27 12 622 8324                                  Tel: +27 12 683 7019
Mobile: +27 82 781 1888                               Mobile: +27 76 066 0655

Notes to editors:

Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality
iron ore to the global steel industry. Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the
Northern Cape Province. Kumba exports iron ore to customers in a range of geographical locations around the globe
including China, Japan, Korea and a number of countries in Europe and the Middle East.
www.angloamericankumba.com

Anglo American is a leading global mining company and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world -class competitive operations, development projects and undeveloped
resources, provides many of the metals and minerals that enable a cleaner, greener, more sustainable world and that
meet the fast growing consumer-driven demands of developed and maturing economies. With our people at the heart
of our business, we use innovative practices and the latest technologies to mine, process, move and market our
products to our customers – and to discover new resources – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the steelmaking
ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in development and thermal coal
operations planned for divestment – we are committed to being carbon neutral across our operations by 2040. We
work together with our business partners and diverse stakeholders to unlock sustainable value from precious natural
resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.

www.angloamerican.com

Date: 11-11-2020 08:00:00
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