KUMBA IRON ORE

8 downloads 178 Views 4MB Size Report
giants. The new model was developed jointly over a five year period by the supplier .... the group's profitability against a 40% fall in benchmark iron ore prices,.
KUMBA IRON ORE About this review This review serves as an introduction to our Annual Financial Statements and should be read with it. A seperate Sustainable Development Report is produced, which, together with this review and Annual Financial Statements, comprise our Annual Report. By reading all three of these documents, the reader will be provided with a comprehensive understanding of the results and state of affairs of the Kumba group.

Cover: At Kumba’s new Kolomela Mine, the pit is starting to emerge as waste is moved to expose the ore body. In 2009, 4.0Mt of waste material was moved as the mine prepares for first production in 2012 and full production of 9Mtpa in 2013. The mine is on schedule and on budget and will produce direct-shipping ore for export.

CONTENTS OVERVIEW



PERFORMANCE REVIEW



OPERATIONAL REVIEW

 

RESOURCES AND RESERVES



SUSTAINABLE DEVELOPMENT REVIEW  



OVERVIEW

UÊ7 7i «ÕÌ Ã>viÌÞ wÀÃÌ ˆ˜ iÛiÀÞ̅ˆ˜} Üi `œ UÊ7 7i “>Ži Ã>viÌÞ > Ü>Þ œvv ˆvvi] ˆ˜Ãˆ`i >˜` œÕÌȈ`i ̅ …i ܜÀŽ«>Vi UÊ7 7i ÅœÜ }i˜Õˆ˜i Vœ˜ViÀ˜ >˜` Ì>Ži Ài뜘ÈLˆˆÌÞ vœÀ œÕÀ œÜ˜ Ã>viÌÞ >˜` ̅>Ì œv œÌ…iÀà UÊ7 7i ÌÀÕ ÕÞ Þ LiˆiÛi ̅>Ì  ˆ˜ÕÀˆià >Ài «ÀiÛi˜Ì>L Li UÊ7 7i Vœ˜Ìˆ˜Õ>Þ Ài>ÃÃiÃà ÀˆÃŽÃà >˜` Vœ“«Þ ܈̅ ÀՏià >˜` «ÀœVi`ÕÀiÃ

Sishen Mine’s custom-built new haul trucks come with a host of unique safety features. These include safety bumpers, something not normally seen on these giants. The new model was developed jointly over a five year period by the supplier and Kumba. The unique design incorporates a pantograph support structure that is fully integrated into the chassis, an automatic anti-rollback feature and an improved braking system comprising combined electric braking and wet disc brakes.

OVERVIEW Safety is of paramount importance to Kumba and comes first in everything we do. We strive to achieve Zero Harm throughout the group and this year managed to deliver an exceptional improvement in our safety performance. Only 10 lost-time injuries were recorded. Thabazimbi Mine completed its second year without a single lost-time injury; in 2009 both Sishen Mine and Thabazimbi Mine were fatality free the whole year, in the case of Sishen Mine, for the first time in five years; and Kolomela Mine has achieved 4,3 million lost-time injury free man-hours to date. Notwithstanding this improvement, tragically we suffered one fatality when Tebogo David Marope, a 23-year old contractor of Concor, was fatally injured during road construction at Kolomela Mine in January 2009.

LOST-TIME INJURY FREQUENCY RATE

Reduced by

to

42% 0.07

SISHEN MINE

Fatality free during 2009 for the first time in five years THABAZIMBI MINE

LTI free for the last

two years KOLOMELA MINE

14 months LTI free LTIFR 1 0.8

* 0.85

0.6

*

0.4

0.48

0.51 *

0.2

0.29

*

*

0.22

0.22

* 0.12

0 2002

2003

2004

2005

2006

2007

2008

* 0.07

2009

* Fatality

PAGE 3

Group structure Industrial Development Corporation

Anglo American plc group

Minorities



 



Kumba Iron Ore



26% BEE ownership Sishen Iron Ore Company Exxaro Resources Limited



SIOC Community Development SPV



SIOC Employee Share Participation Scheme (Envision)



Operations s 3ISHEN-INE s 4HABAZIMBI-INE s +OLOMELA-INE

OVERVIEW

s 3ALDANHA0ORT/PERATIONS

Locality map Thabazimbi Mine Corporate Office

Sishen Mine

Kolomela Mine #$!

Sishen Mine s !NNUALPRODUCTION 39.4Mt (2009) s ,IFEOFMINEYEARS

Saldanha Bay Port

 "

!"

s /RERESERVES-T

 

Thabazimbi Mine s !NNUALPRODUCTION 2.5Mt (2009) 





s ,IFEOFMINEYEARS s /RERESERVES-T

 

Kolomela Mine s &ULLPRODUCTION  9Mtpa s ,IFEOFMINEYEARS  

 

s /RERESERVES-T

Iron Ore Marketing and Logistics offices s

,UXEMBOURG

s

#HINA(ONG+ONG

s

3OUTH!FRICA

PAGE 5

OVERVIEW

Board of directors % #&$!  $!'( )

-#OM $#OMHC



,AZARUS:IMISTHECHAIRMANOF-VELAPHANDA Resources, Northern Platinum and Afripalm 2ESOURCES0REVIOUSLY ,AZARUSWASCHIEFEXECUTIVE of Anglo American South Africa and managing director of MTN International.

*+, $,$-. , $ -, / 0$1 ,-.0 ,2345

"%NG-INING (ONS 0R%NG



#HRISWASPREVIOUSLYTHEEXECUTIVEHEADOFJOINT VENTURESFOR!NGLO0LATINUM,IMITED#HRISHAS OVERYEARSOFMINEMANAGEMENTEXPERIENCE (EWASPREVIOUSLYGENERALMANAGEROF!NGLO Platinum’s Amandebult Platinum Mine and Bafokeng Rasimone Platinum Mine.

% 6$0 7  , $ -,.0$,-.0 ,2385

"#OM #4! #!3!



6INCENTHASYEARSEXPERIENCEINCORPORATE finance, many of these gained with the Anglo American plc group where he was involved INANUMBEROFDIVERSEANDCOMPLEXLOCALAND international transactions.

(% $$9!::   / 0$1 ;$ 0' )

"#OM ,," ($IP4AX,AW



0HILIPWASCHIEFEXECUTIVEOFlCEROF!NGLO American’s Ferrous Metals and Industries DIVISION(EWASAMEMBEROF!NGLO!MERICAN PLCSEXECUTIVECOMMITTEE/THERDIRECTORSHIPS INCLUDE-INAS2)/ 4ONGAAT (ULETT (ULAMINAND Samancor Manganese.

%   "  % ?@ A"  Ài …œ˜iÃÌ] v>ˆÀ] i̅ˆV V> >˜` ÌÀ>˜Ã« «>Ài˜Ì UÊ7 7i >Ài ܈ˆ˜} ̜ `œ ̅i Àˆ}…Ì ̅ˆ˜} iÛi˜ ˆv ˆÌ “i>˜Ã À՘˜ˆ˜} ̅i ÀˆÃŽ œv Liˆ˜} ՘«œ«Õ>À UÊ7 7i ¼Ü>Ž ̅i Ì>Ž½ q œÕÀ >V̈œ˜Ã >Ài Vœ˜ÃˆÃÌi˜Ì ܈̅ œÕÀ ܜÀ`à UÊ 7i `i> ܈̅ «iœ«i >˜` ˆÃÃÕi ià `ˆÀiVÌÞ >˜` >ۜˆ` …ˆ``i˜ >}i˜`>à UÊ 7i ëi>Ž Õ« ܅i˜ ܓi̅ …ˆ˜} ˆÃà ˜œÌ Àˆ}…Ì

An operator controls the process in the Jig plant at Sishen Mine. Every moment of every day Kumba employees are taking decisions, and doing so with integrity, in the knowledge that these decisions could have far-reaching consequences.

OPERATIONAL REVIEW Sishen Mine achieved a remarkable 16% growth in production in 2009. The Jig plant continued to ramp up during the year and reached 10.4Mt for 2009, a 121% increase. The dense medium separation (DMS) plant increased production by 2% to 29Mt, above the nameplate capacity of 28.4Mt achieved in 2008. This was achieved despite the increasing geological complexity of the pit. Thabazimbi Mine production declined in line with reduced demand from ArcelorMittal. A revised life of mine plan has increased the life of mine from 2014 to 2016.

SISHEN MINE PRODUCTION

Up

to

16% 39.4Mt

SISHEN WASTE MINED

Up

to

28% 82.1Mt

EXPORT SALES

The development of Kolomela Mine is on track and on budget. The first blast took place on 17 September 2009 and full production of 9Mtpa will be achieved in 2013. A variety of other projects are all focused on achieving the group’s production potential of 70Mt by 2019.

Up

to

37% 34.2Mt

THABAZIMBI MINE PRODUCTION

2.5Mt and sales of1.8Mt KOLOMELA MINE

4.0Mt waste material mined KOLOMELA MINE

Development on time and on budget

PAGE 21

SISHEN MINE it’s in the figures Mt

TOTAL TONNES MINED (Mt)

Total tonnes mined – ROM production – Waste mined Final product – DMS – Jig – Additional initiatives Stripping ratio (times) Cost per tonne – Total cost (R/tonne) – Cash cost (R/tonne) Total sales – Export – Domestic Safety – Lost-time injury frequency rate – Fatalities

FINAL PRODUCT (Mt)

JIG

N

N1

UCTIO

PROD

0.4

D 82.1

MINE

.0

29

E WAST

TIO

UC

OD

PR

ROM 46.2

2008

2007

108.8 44.6 64.2 34.0 28.4 4.7 0.9

104.4 38.9 65.5 29.7 29.5 0.2 –

1.8

1.4

1.7

111.1 98.8 38.2 34.2 4.0

110.8 101.9 30.5 24.9 5.6

79.9 74.3 30.5 24.0 6.5

0.09 –

0.12 1

0.23 1

OPERATIONAL REVIEW

ION

CT

DU

RO

SP

DM

2009

128.3 46.2 82.1 39.4 29.0 10.4 –

1

2

3

4

5

6

7

UNIT COST

STRIPPING RATIO

MANAGEMENT TEAM

cash cost

stripping ratio

 !NDREW,OOTS General manager (43) BEng (Mech), MBA

R98.83/tonne

1.78

SAFETY

FATALITIES 0

0.09

lost-time injury frequency rate

 2ETIEF,OUW Manager business improvement (45) BEng (Electrical), Diploma Datametrie, NEM 3. Kobus Meyer -ANAGERHUMANRESOURCES -#OM)NDUSTRIAL0SYCHOLOGY 3-0 4. Anel Marais -ANAGERSUSTAINABLEDEVELOPMENT "0RIM%D -0HIL#OMMUNITY$EVELOPMENT 5. Nico Smit Manager plant (35) BEng (Met) and MBA (cum laude)  (ANNECKEDA3ILVA Acting manager finance (32) #!3!  (ANNES#RONJE -ANAGERMINING "%NG-INING -"! --##  (UGO3CHREUDER Strategic commodity manager material (45) .($IP-ECHANICAL%NGINEERING '## -"!  (OWARD.ICHOLAS Manager safety, health, environment and quality 3(%1 NDip Safety Management NADSAM 'ERRIT"RITS 3ISHENHEADOFPROJECTS "3C%NG#IVIL ,AMBERT-OSTERT Manager engineering (53) .$)0AND'##%LECTRICAL

8

9

10

11

PAGE 23

OPERATIONAL REVIEW

3ISHEN-INESPRODUCTIONINCREASEDBY YEAR ON YEARTO-T AFOURTHCONSECUTIVE YEAROFRECORD BREAKINGOUTPUT4HISWAS achieved due to increased tonnage mined ANDINCREASEDlNALPRODUCTFROMTHE*IG plant and dense medium separation (DMS) plant. Particularly pleasing was the growth in PRODUCTIONFROMTHE*IGPLANTWHICHMORETHAN DOUBLEDTO-T"YTHEENDOFTHEYEARTHE *IGPLANTWASOPERATINGATDESIGNCAPACITY Sishen Mine achieved a record safety PERFORMANCEWITHALOST TIMEINJURYFREQUENCY ,4)&2 RATEOF AIMPROVEMENTON LASTYEARSRATEOF4HATTRANSLATESINTO MILLIONHOURSWORKEDWITHOUTANINJURY 3ISHEN-INEHADZEROFATALITIESDURINGTHE year for the first time in five years. This is a substantial improvement in the mine’s progress TOWARDS:ERO(ARM 4OTALTONNESMINEDINCREASEDBYTO -TWITHRUN OF MINEPRODUCTIONINCREASING BYTO-T4HEWASTEMINEDINCREASEDBY TO-T INLINEWITHPLANNEDVOLUMES The increased waste mined is due to the ore body becoming deeper and the pit wider.

Dense medium separation plant

Sales

The DMS plant performed well, with output MARGINALLYIMPROVEDTO-T/UTPUTWAS slightly affected by increasing geological COMPLEXITYINTHEPIT4HEFOCUSDURINGTHE year was on maintaining the quality of product in current market conditions.

4OTALSALESFORTHEYEAROF-TAGAINSTTOTAL production of 39.4Mt resulted in some stock accumulation at Sishen Mine. At Saldanha, stock levels were reduced with 34.2Mt sold TOTHEEXPORTMARKETAGAINST-TRAILED TOTHEPORT/VERALLSTOCKLEVELSINCREASEDTO -TCOMPAREDTO-TATTHECLOSEOF 4HEEXPORTSALESREPRESENTEDASIGNIlCANT INCREASEOVERlGURES4HISWAS FACILITATEDBYAINCREASEINORERAILEDTO the port with a satisfactory improvement in Transnet’s rail performance.

!NOTHERRECORDYEARWASACHIEVEDINRUN OF mine material fed into the plant, although the YIELDACHIEVEDBYTHEPLANTWAS4HISWAS as a result of improved beneficiation. The aim is to maintain the production volumes FROMTHE$-3PLANTATAROUND-T REQUIRING AFEED RATEOFAPPROXIMATELY-TTOTHE PLANTATAYIELDOF

Weaker domestic demand led to a decline in SALESOFTO-T

Jig plant The ramp up of the plant was ahead of schedule, REACHING-TFORTHEYEAR WHICHACCOUNTED FOROF3ISHEN-INESPRODUCTION4HIS COMPAREDTO-TIN ISINCREASE !VERAGEYIELDFORTHEYEARWASCOMPAREDTO IN4HEPLANTHADREACHEDNAMEPLATE capacity by the end of the year and is on track to PRODUCEBETWEENTO-TIN

!DDITIONALHIGHER COSTPRODUCTION USING temporary crushing capacity, was discontinued during the year as the mine focused on quality.

Left: Kumba is the only haematite ore producer in the world to fully beneficiate its product. This is made possible through dense medium separation (DMS) and jig technology. At Sishen Mine the ore from the pit is trucked to the DMS plant where it is crushed, washed and separated into coarse, medium and fine material by wet screening.

PAGE 25

THABAZIMBI MINE it’s in the figures TOTAL TONNES MINED (Mt)

M

RO .1

N3

TIO

UC

OD

PR .4

16

TE

S WA

2009

2008

2007

Total tonnes mined – ROM production – Waste mined Final product Stripping ratio (times) Sales to ArcelorMittal Cost per tonne – Total cost (R/tonne) – Cash cost (R/tonne) Safety – Lost-time injury frequency rate – Fatalities

19.5 3.1 16.4 2.5

12.2 3.2 9.0 2.7

22.2 3.3 18.9 2.7

5.3

2.8

5.8

1.8

2.5

2.4

302.9 262.8

269.7 236.3

249.1 204.5

0.00 –

0.00 –

0.12 –

OPERATIONAL REVIEW

D

NE

MI

Mt

1

2

3

4

5

UNIT COST

STRIPPING RATIO

MANAGEMENT TEAM

cash cost

stripping ratio

 %MMY,EEKA General manager (40) BSc Eng (Metallurgy)

R262.8/tonne

5.3

 ,ESEGO-ATABOGE -ANAGERHUMANRESOURCES "! 0OSTGRADUATE$IPLOMAIN(UMAN2ESOURCES

SAFETY

FATALITIES 0 lost-time injury frequency rate

zero

3. Sabelo Gumede -ANAGERSAFETYANDSUSTAINABLEDEVELOPMENT "3C(ONS -3C 4. Dries Burger Manager finance (55) "#OM .$IP-ANAGEMENT  #ORNELIA(OLTZHAUSEN -ANAGERASSETOPTIMISATIONANDPROJECTS BSc (Metallurgical Eng), MBA  0IETER,ATEGAN Manager mining (43) BSc (Mechanical Eng), BSc (Mining Eng)  0IETER0IETERSE -ANAGERPLANTACTING  .$IP!NALYTICAL#HEMISTRY  'ERHARD4HERON -ANAGERENGINEERING BEng (Electrical), BEng (Mechanical) 9. Kenneth Kgomo -ANAGERSUPPLYCHAIN "#OM

6

7

8

9

PAGE 27

OPERATIONAL REVIEW

4OTALTONNESMINEDINCREASEDBYTO -T ALTHOUGHTHISWASLARGELYDUETO INCREASEDWASTEMINED2UN OF MINEPRODUCTION DECLINEDBYWHILESALESDECLINEDBYIN line with declining demand from ArcelorMittal and poor logistics performance. The increase INWASTEMINEDWASDUETOTHEPRE STRIPPING required as a new pit is opened.

4HE4HABAZIMBI-INEASSETOPTIMISATION and business improvement programme, Tswelopele, has had a significant impact on costs at the mine during 2009, with 2MILLIONSAVED7EWILLBEDRIVINGTHE PROGRAMMEFORWARDIN

A particular achievement for the year was on THESAFETYFRONT WITHNOTASINGLELOST TIME INJURYDURINGTHEYEAR BRINGINGTHEMINES LOST TIME INJURYFREEPERIODTOMONTHS 4HABAZIMBIHASBEENFATALITY FREEFOROVER seven years. The mine was one of four Anglo OPERATIONSAWARDEDTHEh4HEMOSTIMPROVED OPERATIONvAWARDINSAFETY 4HELOWBASESETINMEANTTHATTHEAMOUNT OFWASTEMINEDALMOSTDOUBLEDTO-T 7ITHAFALLINRUN OF MINEPRODUCTION THE stripping ratio increased significantly to 5.3Mt. This is mainly due to the revised mine plan that requires the opening of a new pit. The new PIT WHICHHASNOWBEENSTRIPPED EXTENDS THELIFEOFMINEBEYOND ANDAPROCESSIS under way to convert resources into reserves at 4HABAZIMBI-INE !FURTHEROPPORTUNITYFORGROWTHEXISTSINTHE 0HOENIXPROJECTWHICHISNOWTHESUBJECTOFA FEASIBILITYSTUDY4HEOBJECTIVEOFTHEPROJECT ISTOEXTEND4HABAZIMBI-INESLIFEOFMINETO OVERYEARSPRODUCINGAT-T4HEPROJECT DEPENDSONAFEASIBLEPROJECTPLANBEING finalised and preliminary results looks attractive.

,EFT!SHOVELISAWAITINGTHESTARTOFTHEPRODUCTIONSHIFTAT4HABAZIMBI-INEIN,IMPOPO DWARFEDBYTHE towering walls of the pit carved from the mountainside.

PAGE 29

KOLOMELA MINE it’s in the figures PROJECT PROGRESS

s /N TIME AND ON BUDGET s -T WASTE MATERIAL MINED s 0ROJECT  COMPLETE s &IRST PRODUCTION SCHEDULED FOR (  s 2 BILLION CAPITAL SPENT TO DATE

OPERATIONAL REVIEW

s 2 BILLION CONTRACTUALLY COMMITTED

1

2

3

4

5

6

SAFETY

MANAGEMENT TEAM

FATALITIES 1

 !ARTVANDEN"RINK 'ENERALMANAGER MSc Mining Eng

lost-time injury frequency rate LTI-free hours 3.8 million for 2009

2. Gerhard Brand Manager mining (43) "%NG-ECH -",

zero

 -IKE#ARNEY -ANAGERMINERALRESOURCEMANAGEMENT "3C(ONS 'EOLOGY 4. Gert Ferris -ANAGEROPERATIONSSUPPLYCHAIN $IPLOMA4ELECOMS"0ROC,,",,-!DVANCE 3UPPLY#HAIN 5. Analine Fielding Manager finance (34) "#OM"USINESS-ANAGEMENT  2ITA'OPALKISTA Manager safety, health, environmental and QUALITY3(%1  "#UR  4HEO+LEINHANS -ANAGERPLANT "3C(ONS -3C -",  +OBUS+RUGER Manager human resources (42) "#OM(ONS(2 $IP,ABOUR2ELATIONS 9. Anesan Naidoo Manager engineering (32) "3C%NG-ECH -"! 0R%NG '## 'EORGE"ENJAMIN -ANAGERSUSTAINABLEDEVELOPMENT .$IP(OTELAND4OURISM-ANAGEMENT

7

8

9

10

PAGE 31

OPERATIONAL REVIEW

During the year the new mine was renamed Kolomela Mine, which means to seek deeper or further, to persevere. 4HE3ISHEN3OUTHPROJECT TODEVELOPTHE +OLOMELA-INE MADEMAJORSTRIDESFORWARD DURING4HEPROJECTCONTINUESONTIME and on budget. The first blast took place on 3EPTEMBERANDATOTALOF-TOF waste material was mined during the year. 4HEPROJECTISSCHEDULEDFORlRSTPRODUCTION FROMTHEMINEDURINGTHElRSTHALFOF ramping up to full capacity of 9.0Mtpa of DIRECT SHIPPINGOREFOREXPORTIN 4HEPROJECTHASSOFARHADANEXCEPTIONAL SAFETYPERFORMANCE HAVINGGONEMONTHS WITHOUTALOST TIMEINJURY4HISISPLEASINGFOR ANEWPROJECTWITHMANYNEWSTAFFMEMBERS working with large equipment and substantial civil works. 4HEPROJECTHASALIFEOFMINEOFYEARS WITHTHEPOSSIBLEEXTENSIONTOABENElCIATED product thereafter. Total mineral resource is -TATA&ECUT OFFAND-TATA &ECUT OFF4HEMINEWILLBEASTANDARD truck and shovel operation with all mining done in house. It will consist of three different pits and will be a full dry crush and screen OPERATIONWITHALUMPTOlNERATIOOF

4OTALCAPEXISEXPECTEDTOBE2BILLION Significant progress has been made with the construction of the primary, secondary and TERTIARYCRUSHERSASWELLASTHEKM4RANSNET railway line linking the mine to the Saldanha line. -AJOREARTHWORKSHAVEBEENCONCLUDEDAND OFTHECIVILWORKHASBEENCOMPLETED,ONG lead time equipment has been manufactured and is in the process of being delivered. A full operations team has been appointed under general manager Aart van den Brink ANDAHAND OVERPROCESSISNOWUNDERWAY WITHTHEPROJECTTEAM #ONSTRUCTIONOFHOUSESISPLANNEDIN two phases around Postmasburg, the nearest settlement to the mine. The first phase WILLCONSISTOFHOUSESANDTHESECOND HOUSES ATANESTIMATEDTOTALCOSTOF 2MILLION#ONSTRUCTIONOFCIVILANDELECTRICAL services was undertaken during 2009 and HOUSINGCONSTRUCTIONBEGANIN&EBRUARY +UMBAHASALSOINVESTEDINVARIOUSPROJECTSIN THELOCALAREA INCLUDINGSTORMWATERPROJECTS upgrading of local transport facilities and VARIOUSBUSINESSDEVELOPMENTPROJECTS

Left: Albertus Hanekom (left), Shift Foreman, and Marius Strydom, Senior Production Geologist, at the new Kolomela Mine discuss the waste removal programme in the newly created pit.

PAGE 33

OPERATIONAL REVIEW

0ROJECT0HOENIXAIMSTOMINEBANDEDIRONFORMATIONSINTHE4HABAZIMBI Mountains. The material will be beneficiated through a jig plant to produce about about 3.4Mtpa of saleable product.

PROJECTS

PAGE 35

Projects !TTHEENDOFTHE+UMBA0ROJECTS Department was formalised to coordinate +UMBASPROJECTDEVELOPMENTWORK4HE intention is to achieve the Kumba potential OFPRODUCINGABOUT-TOFOREAYEARBY  WITHAMEDIUM TERMPRODUCTIONGOAL OF-TBY )NSUPPORTOFTHISGOAL AROBUSTPROJECT PIPELINEISUNFOLDING s 3ISHEN-INES*IGPLANTISRAMPINGUPTO nameplate capacity and should reach full PRODUCTIONOFABOUT-TPAIN s +OLOMELA3ISHEN3OUTH ISONSCHEDULETO STARTPRODUCTIONINANDRAMPUPTOA -TPAIN s 5PWARDSOF-TPAOFFURTHERPROJECTS being studied could potentially progress INTOACTUALPRODUCTIONUNITSBY

OPERATIONAL REVIEW

DR/DRS 4HEAIMOFTHISPROJECTISTOUNLOCKECONOMIC value in the DR/DRS (direct reduction/ direct reduction sinter) market by increasing the capacity of the production plant and downstream product handling facilities in order TOSCREENALL&E MMLUMPOREINTO $2MM AND$23MM NICHEPRODUCTS It is envisaged to make an investment decision ONTHISPROJECTIN1

SEP1B

Thabazimbi Phoenix

4HISPROJECTSAIMISTOBENElCIATETHE

 MMFRACTIONOFTHE*IGPLANT2/- feed currently being discarded. This fraction was previously deemed to be waste due to technical risks associated with the BENElCIATIONANDDE WATERINGOFTHEMATERIAL These technical risks have been mitigated. 4HEPROJECTAIMSTOPRODUCE-TPAADDITIONAL fines product, and has the potential to increase THEJIGPLANTPRODUCTYIELDBYABOUT

,ARGEVOLUMESOFBANDEDIRONFORMATIONS ")& EXISTINTHE4HABAZIMBIMOUNTAIN range. This ore body was previously mined BYUNDERGROUNDMININGMETHODS TOEXTRACT high grade haematite. In addition to the BIF, significant volumes of this high grade HAEMATITE WHICHCOULDNOTBEEXTRACTEDBY the underground mining methods previously, still remain in the mountain.

SEP2 4HEAIMOFTHE3%0PROJECTISTOINCREASE 3ISHEN-INESPRODUCTIONBYAPPROXIMATELY -TPA UTILISINGTHEADDITIONALMATERIAL available in the definition of the larger optimised pit shell, supplemented by the material that became available with the refinement of the Sishen product range. The increased mining activity required to mine the larger pit will in part be utilised by beneficiating the low Fe grade portion of the material resulting in some of the waste being reclassified as ore.

Kolomela Beneficiation The 9Mtpa mine under development consists of a direct shipping ore configuration without beneficiation. An opportunity of introducing beneficiation, utilising the lower grade ore in the mine, is currently being studied. This opportunity could add an additional 3Mtpa of product, and will be pursued after ramp up PHASEOFTHECURRENTPROJECT

0HOENIXAIMSTOMINETHE")&ANDHAEMATITE WITHOPEN PITMININGMETHODSANDTO beneficiate the material with a newly constructed plant. The BIF material will be LIBERATEDBYCRUSHINGDOWNTOMMTOPSIZE ANDBENElCIATINGITTHROUGHAJIGPLANT )TISENVISAGEDTHAT0HOENIXWILLPRODUCE about 3.4Mtpa.

Zandrivierspoort The new order prospecting rights were APPROVEDFOR:ANDRIVIERSPOORT SOMEKM NORTHOF0OLOKWANEINTHE,IMPOPO0ROVINCEIN .OVEMBER 4HE:ANDRIVIERSPOORTPROJECTAIMSTO establish an open pit mining operation PRODUCINGBETWEENAND-TPAMAGNETITE CONCENTRATEPRODUCTMICRONS THROUGH a new processing plant and other related infrastructure facilities. The plant will incorporate a crushing and grinding section, a beneficiation plant, slimes and coarse tailings disposal sections and final product stockpiling ANDLOAD OUTFACILITIESLINKEDBYRAILTOTHE railway line at Solomondale.

Sishen Concentrates 3ISHEN-INECURRENTLYPRODUCESAPPROXIMATELY 3.5Mtpa (from dense medium separation ANDJIGPLANTS OFULTRAlNEMATERIALTHATIS discarded to the tailings dam. Based on the initial test work results conducted during the PROJECTSOPPORTUNITYPHASETHISMATERIALHAS ARELATIVELYHIGHPERCENTAGEOFIRON&E that could be upgraded to produce a high grade concentrate with a minimum Fe grade OF4HECONCENTRATECANBEUSEDASAN IRON MAKINGFEEDSTOCKORBLENDEDWITHlNE iron ore product. It is envisaged to complete the concept study BY(AND DEPENDANTONTHEVIABILITY PROGRESSTHESTUDYINTOAPRE FEASIBILITYSTAGE 4HEMAINDELIVERABLEOFTHEPROJECTWOULD be to establish a standalone concentrate production facility designed to process the ultra fine material profitably. 4HETIMINGOFTHISPORTFOLIOOFPROJECTSWILLBE carefully assessed against prevailing market fundamentals, the viability of individual PROJECTSANDRAILANDPORTEXPANSIONS

PAGE 37



MINING RESOURCES

UÊ7 7i Ì>Ži œÜ˜iÀň« œv œÕÀ `iVˆÃˆœ˜Ã] >V̈œ˜Ã >˜` ` ÀiÃՏÌà À>̅iÀ ̅>˜ L>“i œÌ…iÀà UÊ7 7i `iˆˆÛiÀ œ˜ œÕÀ «Àœ“ˆÃià >˜` œÜ˜ œÕÀ œÕÌVœ“ià q LœÌ… }œœ` >˜` L>` UÊ7 7i …>Ûi > V>˜‡ `œ >Ì̈ÌÕ`i] …ˆ}… «iÀvœÀ“>˜Vi iÝ«iVÌ>̈œ œ˜Ã >˜` > Lˆ>à vœÀ >V̈œ˜ UÊ7 7i œ«i˜Þ >VŽ˜œÜi`}i >˜` i>À˜ vÀœ“ œÕÀ “ˆÃÌ>Žià UÊ7 7i }œ Liޜ˜` ̅i Ài i뜘ÈLˆˆÌˆià œv œÕÀ Àœi ̜ Li˜iwÌ Ì…i Vœ“«>˜Þ ­> >LœÛi >˜` Liޜ˜` ̅i V> œv `ÕÌÞ® UÊ 7i …œ` œÌ…iÀà >VVœÕ˜ÌÌ>Li Sustainability is at the heart of Kumba’s operating philosophy. This recognises that the company is a custodian of the country’s mineral wealth, in partnership with government, local communities, employees, and a host of other stakeholders. The rehabilitation of slopes is one example of how the company acts accountably in trying to preserve the environment as best possible.

RESOURCES AND RESERVES Kumba, through its long-term planning processes, not only strives to maximise economic value through the mining of its high-grade haematite mineral resources (in situ Fe * 60%), but also considers sustainable development through the mining and planned mining of lower-grade haematite material (40% ) in situ Fe < 60%) to maximise resource utilisation.

PAGE 39

Review of Kumba’s mineral resources and ore reserves Kumba is a dedicated iron ore supplier that has access to its South African iron ore resources ANDRESERVESTHROUGH3ISHEN)RON/RE#OMPANY 3)/# )NSUPPORTOFTHECOMPANYSVISIONTO BEALEADINGVALUE ADDINGIRONORESUPPLIER to the global steel industry, continuous effort goes into the sound management of its iron ore mineral assets. Technical specialists and competent persons within the company and FROMMAJOREXTERNALCONSULTINGlRMSINCASES WHENSUFlCIENTEXPERIENCEORCOMPETENCEWAS NOTAVAILABLEINTERNALLY HAVE s DElNEDREASONABLYANDEVENTUALLY EXTRACTABLEMINERALRESOURCES s CONVERTEDMINERALRESOURCESINTOPRACTICALLY and safely mineable and economically viable ore reserves, and

MINING RESOURCES

s PROCESSEDTHEORERESERVESINTOMARKET required saleable product. +UMBA THROUGHITSLONG TERMPLANNING PROCESSES NOTONLYSTRIVESTOMAXIMISE economic value through the mining of its HIGH GRADEHAEMATITEMINERALRESOURCESin situ Fe * BUTALSOCONSIDERSSUSTAINABLE development through the mining and planned MININGOFLOWER GRADEHAEMATITEMATERIAL ) in situ&E TOMAXIMISERESOURCE UTILISATION4HE:ANDRIVIERSPOORTMINERAL resources quoted in this document are mostly magnetite, with some surfacial haematite ANDTHECUT OFFAPPLIEDISin situ Fe. This PROJECTIS+UMBASlRSTVENTUREINTOPOTENTIAL LOW GRADEIRONORERESOURCEEXPLOITATION

Mines and Projects Sishen Mine The bulk of Kumba’s iron ore production comes from Sishen Mine, located in the .ORTHERN#APE0ROVINCENEARTHEMININGTOWN of Kathu (Figure 1). Production at Sishen Mine is ramping up to the INSTALLEDCAPACITYOFMILLIONTONNESPERANNUM INANDTHEMINEPRODUCEDMILLION tonnes saleable product in 2009. Most of Sishen -INESIRONOREISEXPORTEDHOWEVER MILLION tonnes of its annual production is supplied to ArcelorMittal South Africa (ArcelorMittal) in TERMSOFASUPPLYAGREEMENTCONCLUDEDIN !LLMININGAT3ISHEN-INEISDONEBYOPEN CAST methods. The current mining process entails topsoil removal and stockpiling, followed by drilling and then blasting of waste and ore. /VERBURDENISBACKlLLEDINTHEPITORHAULEDTO waste rock dumps on the edges of the pit. The iron ore is loaded according to blend (grade) requirements from blasted blocks within the PITANDORFROMRUN OF MINESTOCKPILESAND transported to the beneficiation plants, where it is crushed, screened and beneficiated. %ACHSIZEFRACTIONISSEPARATEDANDBENElCIATED USINGAFERROSILICONMEDIUMORJIGGINGPROCESS before stockpiling on the various product beds. Plant slimes are then pumped to evaporation dams and the plant discard material stacked on a separate discard dump. Seven iron ore products (conforming to different chemical and physical specifications) are produced from Sishen Mine ore. The ores are reclaimed from the product beds and loaded into trains for transport to local STEELMILLSAND3ALDANHA"AYFOREXPORTTO international markets.

)NTHEVICINITYOF3ISHEN-INE HIGH GRADE haematite iron ore is found in the upper parts of A,AKE3UPERIOR TYPEBANDEDIRONFORMATIONOF the Griqualand West Supergroup; the Transvaal Supergroup as it is known where it occurs in the .ORTHERN#APE0ROVINCEOF3OUTH!FRICA$UETO the long geological time interval between the deposition of the oldest rocks of the Griqualand 7EST3UPERGROUP THE#AMPBELLRAND$OLOMITE and the youngest rocks in the area, the Kalahari Group sands, a number of uplift and erosion cycles and deformational events are recorded in the rock record. The iron ore deposits mined at Sishen Mine are located on the western flank of the Maremane !NTICLINE WHICHSTRIKESNORTH SOUTHANDDIPS SHALLOWLY^ª WEST,OCALSTRUCTURESINTHE mine area are, however, very complicated and the interplay between the various tectonic events and associated geological structures were critical to the formation and preservation OFTHEORE)NGENERAL THEHIGH GRADE laminated and massive ore is preserved in SYNCLINALANDPSEUDO GRABENSTRUCTURES WHICH are the result of multiple deformation events. -EDIUM ANDLOWER GRADECONGLOMERATICAND brecciated ores are preserved within deep PALAEO SINKHOLESTRUCTURESINTHESOUTHERN portions of the deposit, where these structures are the result of karstification of the underlying dolomites during periods of uplift and erosion. 4HABAZIMBI-INE 4HABAZIMBI-INE LOCATEDINTHE,IMPOPO0ROVINCE CLOSETOTHETOWNOF4HABAZIMBI WASRESPONSIBLE FORTHEREMAINDER OFTHEPRODUCTIONOFTHE company’s iron ore for 2009 (Figure 1). The mine is a captive operation that produces PRIMARILYHIGH GRADE&E HAEMATITEORE

Annual beneficiated production for 2009 from THETHREEACTIVEPITSISMILLIONTONNES which equates to an average 220 000 tonnes per month. The iron ore product, transported mostly by rail and minor road haulage, is sold EXCLUSIVELYTO!RCELOR-ITTALFORDOMESTICUSEAT ITS6ANDERBIJLPARKAND.EWCASTLESTEELWORKSON ACOSTPLUSMANAGEMENTFEEBASIS 4HABAZIMBI-INEHASREACHEDAVERYMATURE STAGEAFTERMININGFORMORETHANYEARSAND THEREMAININGLIFEOFMINEISAPPROXIMATELY SIXYEARS PENDINGTHEMARKETREQUIREMENTS of ArcelorMittal.

Thabazimbi Mine Sishen Mine

Kolomela Mine #$!

)RONOREFROMTHE4HABAZIMBI-INEISEXTRACTED VIATHECONVENTIONALOPEN CASTMININGMETHODS of drilling and blasting followed by loading and hauling using a truck and shovel fleet. The mining is conducted in multiple pits that are geographically separated from one another. 2UN OF MINEMATERIALISBENElCIATEDTHROUGHA dense medium separation plant and where pits are far removed from the plant, ore is trucked to crushers located closer to the pits. The crushed material is then transported via conveyor belt to a stockpile that feeds the plant. After beneficiation the saleable product is stockpiled on product beds reclaimed and transported to the relevant ArcelorMittal operation. 4HEOPERATIONEXTRACTSHAEMATITEIRONORE mainly occurring as basal units within the Penge Formation, a banded iron formation of the lower Transvaal Supergroup. The Penge Formation crops out locally as a series of east/ WEST STRIKING SOUTH DIPPINGª HILLSTHAT represent the remnant strata triplicated by thrust faulting associated with the intrusion OFTHE"USHVELD)GNEOUS#OMPLEXAND0ALAEO 0ROTEROZOICTECTONISM

Zandrivierspoort Project

 "

!"

 







 

 

 

Figure 1: Locality map of Kumba Iron Ore’s operations and projects

PAGE 41

Mineralisation is the result of primary chemical sedimentation followed by secondary metamorphic and later supergene iron enrichment processes. Initially chert units within the primary banded iron formation was replaced by secondary haematite to produce MOSTLYHIGH GRADELAMINATEDIRONOREBY the later stages of ferruginisation. At depth, THEHAEMATITE RICHROCKGRADESINTOCALCITE HAEMATITEANDTALC HAEMATITEROCK The occurrence of iron ore is structurally controlled, with faults serving firstly as conduits FORIRON RICHmUIDSANDLATERASMECHANISMS FORDISPLACINGANDORDUPLICATING OREZONES ,OCALKARSTICCOLLAPSESTRUCTURESWITHINTHE underlying dolomites produced brecciated ZONES WHICHWERETHENlLLEDBYIRON RICHmUIDS to preserve brecciated iron ore where higher degrees of ferruginsation are usually associated with the higher degrees of brecciation. A regional network of diabase sills and dykes served as trapping mechanisms for mineralising fluids in the lower section of the banded iron formation, which resulted in an ENRICHEDLOWERSECTIONANDALESS ENRICHED upper section of the Penge Formation.

Griqualand West Supergroup that also hosts the Sishen deposit towards the north. The Kolomela Mine has been designed as a direct shipping ore operation, where conventional OPEN PITDRILLINGANDBLASTINGSHOVEL AND TRUCK loading and hauling mining processes will be used to mine the haematite ore from three DIFFERENTPITS!COMBINATIONOFRUN OF MINE buffer and product stockpile blending on site, as well as further blending with product from Sishen Mine, will be used to ensure that the product adheres to the required client specifications. 0RODUCTSIZEWILLBECONTROLLEDVIAACRUSHINGAND SCREENINGPLANTFORALLBUFFERSTOCKPILEANDPITRUN OF MINEMATERIAL 0RE STRIPPINGOFWASTECOMMENCEDIN (OT COMMISSIONINGOFTHECRUSHINGAND screening facility is scheduled for February ANDlRSTPRODUCTIONOFSALEABLEPRODUCT ISANTICIPATEDIN TOREACHFULLCAPACITYOF MILLIONTONNESPERANNUMIN The iron ore will be transported to the 3ALDANHAEXPORTHARBOURVIATHE/REXIRONORE EXPORTLINEANDMARKETEDTO+UMBASCURRENT overseas client base as part of the Kumba Iron /REMARKETINGSTRATEGY

MINING RESOURCES

Kolomela Mine 4HE3ISHEN3OUTHADVANCEDPROJECT ASIT WASKNOWNANDREPORTEDONIN HAS been added to the Kumba portfolio of mines in 2009 and will henceforth be known as Kolomela Mine. The mine, which is currently under construction, ISLOCATEDINTHE.ORTHERN#APE0ROVINCENEAR Postmasburg (Figure 1) and is situated on THESOUTHERNTIPOFTHENARROWNORTH SOUTH TRENDINGBELTOFIRON BEARINGLITHOLOGIESOFTHE

Similarly to Sishen Mine, haematite iron ore at Kolomela Mine is preserved in the chemical ANDCLASTICSEDIMENTSOFTHE0ROTEROZOIC Griqualand West Supergroup, which defines THEWESTERNMARGINOFTHE+AAPVAAL#RATON INTHE.ORTHERN#APE0ROVINCE,OCALLY THE stratigraphy has been deformed by thrusting FROMTHEWESTANDHASUNDERGONEEXTENSIVE karstification. The thrusting has produced ASERIESOFOPEN NORTHSOUTH PLUNGING anticlines, synclines and grabens. Furthermore,

karstification was responsible for the DEVELOPMENTOFDEEPPALAEO SINKHOLESANDTHE iron ore at Kolomela has been preserved from erosion within these geological structures. :ANDRIVIERSPOORT0ROJECT 4HE:ANDRIVIERSPOORT0ROJECT LOCATED APPROXIMATELYKMNORTHEASTOF0OLOKWANE INTHE,IMPOPO0ROVINCEFigure 1), is a LOW GRADEMAGNETITEOCCURRENCEINTHE 0ALAEOPROTEROZOIC2HENOSTERKOPPIES Greenstone Belt, or Rhenosterkoppies Fragment, which occurs northwest of THEMAIN NORTHEAST TRENDING0IETERSBURG 'REENSTONE"ELT4HELOWER GRADE&E IRONORECOMPRISES!RCHAEAN AGED metamorphosed banded iron formation THATHASBEENEXPOSEDTOATLEASTTHREE deformational events, which resulted in recumbent isoclinal folding. These deformational events controlled the ore FORMATIONAT:ANDRIVIERSPOORTANDDEFORMED THEFORESEENOREZONEINTOATHICKMAGNETITE QUARTZITESEQUENCETHATCANBESEPARATEDINTO SEVERALPRACTICABLYMINEABLEHORIZONS 4HE:ANDRIVIERSPOORT0ROJECTISCURRENTLY in the prefeasibility stage of investigation, where several options in terms of the product specification and product types are BEINGREVIEWED4HEPROJECTISAJOINT VENTUREBETWEEN3)/#AND!RCELOR-ITTAL ANDITISCURRENTLYASSUMEDTHATAHIGH GRADE concentrate product could partially support ArcelorMittal’s domestic demand for raw material input to the steel works.

General statement on estimation and reporting The following summary of the ore reserves and mineral resources attributed to Kumba Iron /RESCURRENTMININGOPERATIONSANDGROWTH PROJECTSAREREPORTEDASTHOSEREMAININGAT $ECEMBERTables 1 and 2). This summary is derived from a comprehensive ore reserve and mineral resource statement that +UMBA)RON/REPREPARESONANANNUALBASIS The ore reserve and mineral resource estimates as reported are in essence a summary of detailed estimation processes conducted or supervised by competent persons for each of the Kumba )RON/REMININGOPERATIONSANDPROJECTS!LL competent persons have been duly appointed and made aware of their responsibility towards unbiased ore reserve and/or mineral resource ESTIMATIONONANOPERATIONALORPROJECTLEVEL 4HEYHAVESUFlCIENTRELEVANTEXPERIENCEINTHE style of mineralisation, type of deposit and mining method as well as in the activity for which they have taken responsibility to qualify ASA@COMPETENTPERSON ASDElNEDBYTHE 3!-2%##ODE. The ore reserve and mineral RESOURCEESTIMATESHAVEBEENSIGNED OFFBYTHE relevant competent persons, who consent to the inclusion of the information in this report in the FORMANDCONTEXTINWHICHITAPPEARS!LISTOF +UMBA)RON/RESCOMPETENTPERSONSISAVAILABLE from the company secretary upon request. 4HEVARIOUSMININGOPERATIONANDPROJECT competent person reports have been compiled TOCOMPLYWITHTHE3!-2%##ODE AS WELLASREGULATIONSSETBYTHE*3%

3!-2%##ODEnTHE3OUTH!FRICAN#ODEFORTHE2EPORTINGOF %XPLORATION2ESULTS -INERAL2ESOURCESAND-INERAL2ESERVES

4HElGURESREPORTEDREmECTOFTHEORE reserves and mineral resources, irrespective of Kumba’s attributable ownership, which is detailed in the relevant tables below. /RERESERVESESTIMATESFORTHEMINING operations have been updated within two months of the date of this statement. Mineral resource estimates are reported in addition to ore reserves. They are reported according to the latest available geological models, WHICHARETYPICALLYUPDATEDTHREETOSIX months prior to the end of the year of REPORTING&ORPROJECTS UPDATEDESTIMATES are produced as required by business feasibility investigations or when primary business case assumptions have changed. The Kolomela Mine ore reserves and mineral resources have remained unchanged since 4HEPRIMARYREASONBEINGTHAT consistency in mine planning schedules was REQUIREDWITHTHEPROJECTBEINGHANDED OVERFROMTHEPROJECTTEAMTOTHEMINE management team before waste stripping commenced in 2009. All ore reserve and in situ mineral resource tonnages are quoted in dry metric tonnes, where tonnes are the result of volumes multiplied by SPATIALLY ASSOCIATEDRELATIVEDENSITIES /RERESERVE&EGRADESREPRESENTTHEWEIGHTED AVERAGEGRADEOFTHEPLANTFEEDORRUN OF MINE material and take into account all applicable MODIFYINGFACTORS4HEAVERAGE&EGRADEAND tonnage estimates of ‘saleable product’ are also reported to demonstrate that the total mining value chain has been considered. Mineral RESOURCE&EGRADESWEIGHTEDAVERAGEABOVE CUT OFF AREREPORTEDin situ.

Security of tenure In South Africa, the Minerals and Petroleum 2ESOURCES$EVELOPMENT!CT OF -02$! WASIMPLEMENTEDON-AY and effectively transferred custodianship of the previously privately held mineral rights to the State. Mining companies were given up to two years to apply for prospecting permit conversions and five years to apply for mining LICENCECONVERSIONSFOREXISTINGOPERATIONS! prospecting right is a new order right that is valid for up to five years, with the possibility OFAFURTHEREXTENSIONOFTHREEYEARS WHICH can be obtained either by the conversion of ANEXISTINGOLDORDERPROSPECTINGPERMITOR through a new application. A mining right is a new order right valid for up to 30 years and is obtained either by the conversion of an old order mining licence, as a new ORDERRIGHTPURSUANTTOTHEEXERCISINGOFTHE EXCLUSIVERIGHTOFTHEHOLDEROFANEWORDER prospecting right or through a new mining right application. +UMBA)RON/RESPROSPECTINGRIGHTPORTFOLIO associated with ore reserves and mineral resources comprises eight new order prospecting RIGHTS7ITHTHEEXCEPTIONOFTWORECENTLY GRANTEDPROSPECTINGRIGHTSADJACENTTOTHE 4HABAZIMBIMININGRIGHTAREA WHERERIGHTS HAVEBEENGRANTEDFORTHREEYEARS ALL3)/# PROSPECTINGRIGHTSGRANTEDSINCEHAVEBEEN GRANTEDFORlVE YEARPERIODS4HElRSTOFTHENEW ORDERPROSPECTINGRIGHTSEXPIRESIN

PAGE 43

Mining rights have been granted and EXECUTEDFOR3ISHEN-INE 4HABAZIMBI-INE and Kolomela Mine, however, only Kolomela’s right and one of the two mining rights ASSOCIATEDWITH4HABAZIMBI-INEHAVEBEEN registered. The finalisation of the registration of OUTSTANDINGRIGHTSISANTICIPATEDFOREARLY The 2009 ore reserves quoted by Kumba )RON/REAREALLCONTAINEDWITHINGRANTEDAND EXECUTEDNEWORDERMININGRIGHTTENEMENTS (Table 3), where Kumba has ensured that life of mine schedules support the production from which the subsequent saleable product estimates have been derived. Similarly, all mineral resources stated for 2009 are contained WITHINGRANTEDANDEXECUTEDNEWORDERMINING right or prospecting right areas (Table 3).

MINING RESOURCES

Mineral resource estimates "ASEDONTHE3!-2%#DElNITIONOFMINERAL RESOURCES +UMBA)RON/RESMINERALRESOURCES are established on the premise that they are iron ore occurrences under consideration that are of economic interest and have reasonable and realistic prospects for eventual economic EXTRACTION4HISDElNITIONOFAMINERALRESOURCE IMPLIESTHATAPRELIMINARYJUDGEMENTHASTO be made, by the competent person, regarding the technical and economic factors likely to influence the prospect in terms of eventual ECONOMICEXTRACTION INCLUDINGTHEAPPROXIMATE mining and beneficiation parameters.

For 2009, the following assumptions have been VERIlEDFORTHEREPORTEDMINERALRESOURCES i) there is sufficient mineralisation present for mining to take place; ii)

appropriate mining and beneficiation METHODSEXISTTOEXTRACTTHE@FUTURE economic portions’ of the mineralisation;

iii) there is a market for the envisaged product; and iv) there is security of tenure. The ‘reasonable and realistic’ part of the definition considers whether the mineralisation under consideration could be mined in future given defendable economic factors. Thus, +UMBA)RON/RESMINERALRESOURCESARE not an inventory of all mineral occurrences DRILLEDORSAMPLEDREGARDLESSOFCUT OFFGRADE likely dimensions, location or continuity. Instead they are a realistic record of those, WHICHUNDERASSUMEDANDJUSTIlABLETECHNICAL and economic conditions, may be economically EXTRACTABLEINFUTURE !SPERTHE3!-2%#DElNITION THELOCATION quantity, quality, continuity (grade and geology) and other geological characteristics of mineral resources are known with varying degrees of confidence. In this regard, these CRITERIAAREESTABLISHEDTHROUGHEXPLORATION activities (e.g. mapping and geophysical surveys) and sampling (mainly drilling), where appropriate quality assurance and quality control measures are in place to ensure that sample collection and preparation are as precise and accurate as possible to provide representative and validated data.

Mineral resources are classified according to the degree of confidence placed on the estimates (tonnes and grades), where this confidence is established as a function of SEVERALASPECTS+UMBA)RON/RESMINING OPERATIONSANDPROJECTSPRIMARILYUSESITE specific geostatistical parameters, which DESCRIBEHOWWELLTHEEXISTINGSAMPLESPACING caters for the established variability and continuity, to derive an initial confidence classification for the continuity and variability of geological characteristics such as grade, LITHOLOGYANDSPECIlCGRAVITY#ONlDENCEINTHE estimates is further evaluated by considering THESTRUCTURALANDDIMENSIONALCOMPLEXITYOF the orebody in relation to the host rock; where QUANTITATIVECOMPLEXITYPARAMETERSMAYLEAD to a lowering in confidence and in such cases, initial classifications may be downgraded to derive the final mineral resource classification.

Ore reserve estimates /RERESERVESINTHECONTEXTOFTHISREPORTHAVE the same meaning as ‘mineral reserves’ as DElNEDBYTHE3!-2%##ODE ANDTHETERM is used throughout the document. The term ‘ore reserves’ is preferred because it emphasises the difference between these and mineral resources. )NACCORDANCEWITHTHE3!-2%##ODE +UMBA )RON/REDERIVESTHEORERESERVEESTIMATES REPORTEDFOREACHOPERATIONORPROJECTBY applying mining, metallurgical, economic, marketing, legal, environmental, social and governmental ‘modifying factors’ to the reported mineral resource estimates.

Initially mineral resource grades and tonnages are discounted by the application of mining modifying factors such as dilution, mining losses and mining recoveries, to develop a SO CALLEDMININGMODEL WHICHFORMSTHEBASIS for the life of mine scheduling and resulting ore reserve estimates. Protocols ensure that +UMBA)RON/RESOPERATIONSCONSIDEREXPECTED LONG TERMREVENUESVERSUSOPERATINGAND production costs associated with mining and beneficiation as well as legislative, environmental and social costs, in determining whether or not a mineral resource could be ECONOMICALLYEXTRACTEDANDCONVERTEDTOAN ore reserve. This is performed by conducting ANOPEN PITOPTIMISATIONPROCESSONTHE mining model to derive an optimal pit shell for the given technical and economic inputs. This optimal pit shell is then iteratively converted to a practical pit layout by applying detailed geotechnical slope stability parameters and haul road and ramp designs, legal restrictions, etc., with safety being one OFTHEMOSTCONSIDEREDPARAMETERS/NCE a practical pit layout has been established the material within the pit is scheduled over time to achieve client specifications and thus a life of mine schedule is produced. 4HEPLANTFEED ORRUN OF MINE DERIVEDFROM such a schedule represents the ore reserves. The product derived via the application of metallurgical factors in the mining model and subsequent scheduling represents what is referred to as saleable product.

4HE3!-2%##ODEAPPROACHISADOPTEDFOR ore reserve classification, whereby measured mineral resources occurring within the practical pit are converted to proved ore reserves and indicated mineral resources are converted to probable ore reserves. Thereafter the competent person may downgrade the CLASSIlCATIONSHOULDCERTAINMINING RELATED legal, environmental, governmental and social aspects warrant it. Inferred mineral resources occurring within the life of mine plan are reported as, ‘mineral resources considered for life of mine and have NOTBEENADJUSTEDTOCONSIDERMODIFYINGFACTORS

The estimates reported here have been REVIEWEDANDAREENDORSEDBY$R6,ICKFOLD THEPERSONWITHIN+UMBA)RON/REDESIGNATED to take corporate responsibility for ore reserves ANDMINERALRESOURCES4HE#HIEFEXECUTIVE OFlCEROF+UMBA)RON/RE #HRIS'RIFlTH ALSO endorses the estimates presented in this report.

Vanessa Lickfold (Pr Sci Nat 400099/94) (EADOF'EOSCIENCES &EBRUARY

Audit and review process +UMBAAPPLIESARIGOROUSTHREE YEARROLLING INTERNALANDEXTERNALAUDITPROCESSTOITS mineral resource and ore reserve estimates. !SPARTOFTHEEXTERNALINDEPENDENTREVIEW process conducted at Kumba’s operations ANDPROJECTSSINCE 'OLDER!SSOCIATES !FRICA0TY ,TDAUDITEDTHE+OLOMELA-INE mineral resource and ore reserve estimation and reporting processes in 2009. Financial provision has been made for a similar DETAILEDINDEPENDENTEXTERNALREVIEWOF THE:ANDRIVIERSPOORT0ROJECTESTIMATIONAND REPORTINGPROCESSESIN4HABAZIMBIWAS AUDITEDINAND3ISHENIN

Chris Griffith #%/ +UMBA)RON/RE &EBRUARY

PAGE 45

Comment +UMBASORERESERVESDECREASEDBY-T OR FROM-ININGPRODUCTIONOF -TAT3ISHENAND4HABAZIMBIMINES WASOFF SETBYA-TINCREASEDUETOTHE conversion of mineral resources to ore reserves AT4HABAZIMBI-INE WHICHWASTHERESULTOFA TOTALRE ENGINEERINGOFTHEPITDESIGNSANDLIFE OFMINEPLANOF4HABAZIMBI-INEIN Minor additional increases in the ore reserves AT3ISHEN-INE-T AREATTRIBUTEDTOn 2009 production reconciliation and improved ore reserve utilisation based on a refinement of THESCHEDULINGPROCESS!T4HABAZIMBI-INE A NETMINORDECREASE -T INTHEORERESERVE estimate is the result of model refinements off set by stockpile movement (0.5Mt).

MINING RESOURCES

Mineral resources in addition to ore reserves DECREASEDBY OR-T WHEN COMPARING+UMBASESTIMATESTOTHOSE OF4HISCOMPRISESALOSSOF-T MEASUREDAND-TINFERREDMINERAL RESOURCESANDGAINOF-TINDICATED mineral resources. Model refinement and the addition of new INFORMATIONRESULTEDINA-TLOSSOF Sishen Mine’s mineral resources; however, this was marginally negated by a 9.4Mt increased due to pit volume RECONCILIATIONBETWEENAND

The net decrease in mineral resources for 4HABAZIMBI -T ISACOMBINATIONOF CONVERSIONTOORERESERVES -T PARTLYOFF set by increased mineral resources as the result of model refinement based on new information ANDMINORCHANGESINTHESIZEOFTHEOPTIMISTIC pit, which is used to delineate the mineral RESOURCEBOUNDARY4HE:ANDRIVIERSPOORT 0ROJECTLOST-TOFITSMINERALRESOURCESAS the result of geological model revisions and NEWINFORMATION-T ASWELLASSLIGHTLY modified economic parameters used to DELINEATETHEOPTIMISTICPIT-T  Despite the losses in mineral resources, the current ore reserves remain robust at Kumba’s three mining operations. Kumba fully supports the significant effort being put into continually improving the information and models used as a basis for mineral resource and ore reserve estimation.

Mining rights Area of interest

Mines

Farm/land

Right

Granted

Executed

Expiry date

Sishen Mine

-AY

.OVEMBER

.OVEMBER

4HABAZIMBI-INE

*UNE

/CTOBER

/CTOBER

Sishen South Mine (Kolomela Mine)

*UNE

3EPTEMBER

3EPTEMBER

:ANDRIVIERSPOORT

/CTOBER

.OVEMBER

.OVEMBER

Mooivallei

*UNE

2 September 2009

3EPTEMBER

Kwaggashoek

*UNE

2 September 2009

3EPTEMBER

Farm Sishen Prospect

*UNE

.OVEMBER

.OVEMBER

Farm Sishen (Dingleton Prospect)

3EPTEMBER

&EBRUARY

&EBRUARY

Parson

!PRIL

*ULY

*ULY

Gamagara

!PRIL

*ULY

*ULY

Prospects

4HABAZIMBI

Sishen

4HE3ISHEN3OUTHMININGRIGHTHASBEENEXECUTEDUNDERTHENAME3ISHEN3OUTH BUT+UMBANOWREFERSTOTHE3ISHEN3OUTH-INEASTHE+OLOMELA-INE

#OMPLETE

PAGE 47

Ore reserves

Sishen Mine

4HABAZIMBI-INE2

Kolomela Mine4

+UMBA)RON/REn4OTAL

/PENPIT

/PENPIT

/PENPIT

/PENPIT

(AEMATITE

(AEMATITE

(AEMATITE

(AEMATITE

to Kumba

% attributable

Ore type

Operation/project

Mining method

2009







Ore reserves

Reserve category

MINING RESOURCES

Grade &E Average

Grade &E #UT OFF

Proved Probable

 203.9

59.2 59.2

40.0 40.0

Subtotal

911.5

59.2

40.0

Proved Probable

9.5 

 

59.23 59.23

Subtotal

14.2

61.5

59.2

Proved Probable

 

 

 

Subtotal

214.1

64.1

51.0

Proved Probable

 

 

1,139.8

60.2

Total

s 4HEORERESERVEANDSALEABLEPRODUCTTONNAGESARE quoted in dry metric tonnes and million tonnes is abbreviated as Mt. s 2OUNDINGOFlGURESMAYCAUSECOMPUTATIONAL discrepancies. s /RERESERVElGURESREPORTEDATIRRESPECTIVE OFPERCENTAGEATTRIBUTABLETO+UMBA)RON/RE s "LACKFONTDENOTESCHANGE; /RANGEFONTDENOTESCHANGE)

Tonnage (Mt)

 4HEOVERALL-TDECREASEINTHE3ISHEN-INE ORERESERVESFROMISMAINLYTHERESULTOF THERUN OF MINEPRODUCTIONESTIMATEDAT -T NEGATEDBYA-TCORRECTIONMADEFOR OVER ESTIMATIONOFORERESERVEDEPLETIONIN as well as a 0.5Mt increase based on a revised scheduling process that allowed for a slight improvement in resource utilisation.

Reserve life Years

21

6

28

2. The primary reason for the 9.4Mt net increase in THE4HABAZIMBI-INEORERESERVESISACOMPLETE revision of the conversion of mineral resources INTOORERESERVESIN RESULTINGINA-T gain. The conversion gain was offset by mining depletion of 2.9Mt; a 0.2Mt correction made for THEUNDER ESTIMATIONOFPRODUCTIONINAND THEDOWNGRADINGOF-TPROBABLEORERESERVESTO inferred mineral resources considered for the life of mine plan due to an associated geotechnical risk.

2008

2009

2008

Ore reserves

Saleable product

Saleable product

Grade &E Average

Grade &E #UT OFF

 

 59.3

40.0 40.0

956.9

59.6

40.0

 

 

55.0 55.0

4.9

64.6

55.0

 

 

 

214.1

64.1

51.0

 339.5 1,175.9

Tonnage (Mt)

#HANGE 

Tonnage (Mt)

Grade &E Average

Tonnage (Mt)

Grade &E Average

#HANGE 

0 

530.9 

 

 

 

 

(5)

684.7

65.3

722.8

65.0

(5)

 

 4.2

 

3.9 

 

 

100

12.3

63.1

4.7

65.0

100

0 0

 

 

 

 

0 0

0

213.6

64.0

213.6

64.0

0

 

0 

 

 

 

 

0 

60.4

(3)

910.6

64.9

941.1

64.8

(3)

Reserve life Years

19

3

28

Geological block model updates in 2009 resulted in a further addition of 0.3Mt ore reserves.  4HECUT OFFGRADEUSEDFORTHE4HABAZIMBI-INE life of mine scheduling is a saleable product &ECUT OFFGRADEANDALLMATERIALTHATCOULDBE BENElCIATEDTOATLEASTTHISCUT OFFVALUEWAS INCLUDEDINTHESCHEDULEASRUN OF MINEMATERIAL

4. Kumba has named the latest addition to its portfolio of mines the Kolomela Mine; it was REFERREDTOASTHE3ISHEN3OUTHADVANCEDPROJECTIN 

PAGE 49

Mineral resources

Mining operations

4HABAZIMBI-INE

Projects

:ANDRIVIERSPOORT4

Company

(AEMATITE

to Kumba

% attributable



Grade &E Average

Grade &E #UT OFF

   

  59.4 

40 40 40 40

1 438.5

57.1

40

9.5 2.4 2.3 

   

55 55 55 55

Total

15.5

62.9

55

Measured Indicated )NFERREDOUTSIDE,O- )NFERREDCONSIDEREDFOR,O-

49.5   35.4

   

50 50 50 50

Total

153.2

64.3

50

Measured Indicated )NFERREDOUTSIDE,O- )NFERREDCONSIDEREDFOR,O-

   0.0

34.5 34.2 34.3 0.0

30 30 30

Total

347.4

34.4

30

Measured Indicated )NFERREDOUTSIDE,O- )NFERREDCONSIDEREDFOR,O-

   40.5

  53.5 

1 954.6

53.7

Resource category Measured Indicated )NFERREDOUTSIDE,O- )NFERREDCONSIDEREDFOR,O- Total

2

Kolomela Mine3

MINING RESOURCES

/PENPIT

Ore type

Operation/project Sishen Mine

Mining method

2009

+UMBA)RON/RE

/PENPIT

/PENPIT

(AEMATITE

(AEMATITE

Magnetite







Measured Indicated )NFERREDOUTSIDE,O- )NFERREDCONSIDEREDFOR,O-

Grand total

Tonnage (Mt)

s 4HEin situ tonnages are quoted in dry metric tonnes and million tonnes is abbreviated as Mt.

2008

s 2OUNDINGOFlGURESMAYCAUSECOMPUTATIONALDISCREPANCIES s -INERALRESOURCElGURESREPORTEDATIRRESPECTIVEOFPERCENTAGE ATTRIBUTABLETO+UMBA)RON/RE s ,IFEOFMINEISABBREVIATEDTO,O-INTHETABLE

Grade &E Average

Grade &E #UT OFF

#HANGE 

   

54.9  59.2 

40 40 40 40

(22) (3)  

1 628.5

56.4

40

(12)

 4.9  0.3

   

55 55 55 55

(49) (50)  

26.5

62.6

55

(41)

49.5   35.4

   

50 50 50 50

0 0 0 0

153.2

64.3

50

0

0.0 42.5  0.0

0.0   0.0

30 30 30

   0

421.9

35.1

30

(18)

   

   

  (54) 2

2,230.0

53.0

(12)

Tonnage (Mt)

s "LACKFONTDENOTESCHANGE; /RANGEFONTDENOTESCHANGE) s 4HETERMINFERREDOUTSIDELIFEOFMINE REFERSTOTHATPORTIONOFTHEINFERRED mineral resources not utilised in the life of mine plan of the specific mining operation. s 4HETERMINFERREDCONSIDEREDFORLIFEOFMINE REFERSTOTHATPORTIONOFTHE inferred mineral resources utilised in the life of mine plan of the specific mining operation; reported without the application of any modifying factors.  4HEDECREASEINTHE3ISHEN-INEMINERALRESOURCESISPRIMARILYTHERESULTOFA DOWNWARDADJUSTMENTOFTHEin situ&EGRADEESTIMATEOFLOW GRADEMATERIAL BASEDONNEWINFORMATION4HISDECREASEIN&EGRADERESULTEDINPREVIOUSLY defined ore material being reclassified as waste. The loss is not in the current life of mine plan.  4HABAZIMBIMINERALRESOURCESDECREASEDPRIMARILYDUETOTHECONVERSIONTOORE reserves in 2009. 3. Kumba has named the latest addition to its portfolio of mines the Kolomela -INEITWASREFERREDTOASTHE3ISHEN3OUTHADVANCEDPROJECTIN  4HEGEOLOGICALMODELRElNEMENTREQUIREDTOELIMINATEANEXTRAPOLATEDPORTION OFTHELOWERMAGNETITEZONE WHICHHADINCORRECTLYBEENINCORPORATEDINTO THEESTIMATE ISTHEREASONFOR-TOFTHETOTAL-TDECREASE The remaining decrease in the mineral resources is due to updated geology based on new information and a slightly smaller optimistic pit that was used to delineate the mineral resource boundary.

PAGE 51



SUSTAINABLE DEVELOPMENT REVIEW

UÊ7iʓ “>ŽiÊ` `iVˆˆÃˆœ˜ÃÊ L>Ãi` `ʜ˜ÊÜ Ü…> >ÌÊ ˆÃÊ}œœ œ`Êvœ œÀÊ̅ …iÊ Vœ“« «>˜ÞÞ]ʘ ˜œÌʜ œÕÀ œÜ˜ÊÃÃiv‡‡ˆ˜ÌÌiÀÀiÃÌ U 7iÊÜ ÜœÀŽ ŽÊÌ̜}i̅iÀ ̜Ê} }iÌÊ̅ …ˆ˜ ˜}ÃÊ` `œ˜iÊ >VÀœÃÃÊÌ̅iÊ܅œi œÀ}>˜ˆÃÃ>Ì̈œ˜ U 7i iÊV Vœ““Õ˜ˆV>ÌiÊ iÝ«i iVÌ>̈œ˜ÃÊ> >˜`Ê «ÀœÛۈ`iÊ« «iœ«iÊÜ ÜˆÌ…Ê Ì…i iʈˆ˜vœÀ“> >̈œ˜Ê ̅iÞʘii`ÊÌ̜Ê` `œÊÌ̅iˆÀÊ œLÃÊi ivviV̈ÛiÞ U 7iÊ> >««ÀiVˆ>ÌiÊ Ì…iÊi ivvœÀÌÃÊ> >˜`Ê Vœ˜ÌÀˆLṎœ œ˜Ã œvʜ̅iÀà U 7iÊ>Ài iʜ œ˜iÊ Vœ“ “«>˜Þ]Ê> >VÌÊ ˆ˜VÕÈÛiÞÊ>VÀœÃÃÊ }ÀœÕ«ÃÊ> >˜`Ê> >ÀiÊ Õ˜ˆÌi`Ê> >}>ˆ˜ÃÌ Ì… …iÊVœ œ“«ï̈œ˜ ­¼Õ ÕýÊÛÛiÀÃÕÃʼ¼Ì…i“½®® Polishing a tyre at BLJ Carwash, Kagung, a small enterprise supported by Kumba.

SUSTAINABLE DEVELOPMENT REVIEW Safety and occupational health Safety and occupational health, human resources, employment equity, community development, and limiting the company’s environmental impact are at the heart of Kumba’s approach to enabling sustainable development.

Fatalities and LTIFR Kumba’s safety record is improving rapidly. Sishen Mine did not record a fatality for the entire year, the first time this has been achieved in five years. Not to be outdone, Thabazimbi Mine remains fatality-free for seven years, and free of lost time injuries for two years. Sadly, Tebogo David Marope was killed in an accident at Kolomela Mine. The 42% improvement in LTIFR points to a marked improvement in Kumba’s safety management, evidenced by the data shown below. Kumba is confident that its approach to safety will result in a fatality-free year, especially with the intensive focus on Zero Harm days and monitoring high performance incidents.

FATALITIES

ONE LTIFR

0.07 NIHL CASES

TEN HIV PREVALENCE

7.6 percent

Occupational health Kumba did not meet its target of zero new cases of occupational health diseases. During 2009 ten new cases of noise-induced hearing loss (NIHL) were recorded. Of these, seven were accepted and three are being evaluated. NIHL is the most pressing occupational disease that Kumba and its employees face. The management of HIV/Aids continues to form part of the company’s focus. Key statistics which bear out Kumba’s approach are shown to the right. For 2010, Kumba aims to reduce the HIV infection rate to zero, improve enrolment on its wellness programme by 10% and ensure that 90% of employees participate in its voluntary counselling and testing (VCT) programme.

HIV+ EMPLOYEES ON WELLNESS PROGRAMME

442 VCT UPTAKE 2009

91 percent PAGE 53

Human resources and employment equity

Community development

Kumba’s strategy with regard to employees is two-pronged: the first requirement is to make sure that the company has the requisite employee complement; the second is that the employee demographic is representative of South Africa.

Central to enhancing Kumba’s impact in society are its development and procurement initiatives.

Attract, recruit and retain

Key data (%) in this regard are shown below:

FEMALE AND MALE EMPLOYEES

M

55

.6

.8

7

3 78.17 HDSA

7F

W 21

FEMALES AND MALES IN MANAGEMENT

22 .6

M

A workforce composition in line with South Africa’s demographic profile remains a key focus of our recruitment practice. Kumba is guided in its approach by the targets (exceeded) contained in its social and labour plans.

73

W

HDSA AND WHITE MALES IN MANAGEMENT

Equity

F

HDSA AND WHITE MALES

Training spend per employee was R16,061 (excluding contractors); R7,852 when contractors are included. The spend on training as a percentage of the total payroll was 5.3% (national average: 3%).

13.

SUSTAINABLE DEVELOPMENT REVIEW

Fortunately for Kumba it did not have to retrench employees during 2009. The company focused on ensuring that its required skills base remained intact. Kumba’s approach to maintaining its skills base centred on attracting the right employees, recruiting them, and then keeping them. Kumba is proud of the reputation it has amongst its own and potential employees, undoubtedly founded on the benefits enjoyed, training provided and the team spirit fostered throughout the company.

In 2009, Kumba recruited 233 people (2008: 724) and 483 employees left the company (2008: 258). Total staff complement, including contractors, was 12,228 (2008: 10,260).

44.33 HDSA

M 86.27

M 77.33

Development Kumba’s role in development includes interventions designed to alleviate poverty, build infrastructure and support community development. Development programmes are guided by Kumba’s social and labour plans, company policies and strategies, and interaction with all levels of government and community representatives. Sishen Mine’s small business start-up hub in Kathu received a Nedbank Capital Green Mining award in the socio-economic category for the assistance it provides to small and medium-sized entrepreneurs.

DEVELOPMENT SPEND

R41 million

Environmental management The award recognised the commitment and dedication of the hub’s team in guaranteeing the entrepreneurs’ success.

Environmental management at Kumba encompasses six aspects: water, energy, land, air quality, waste and legal compliance.

HDSA procurement

Energy and greenhouse gas emissions

For 2009 Kumba committed to spending 36% of its discretionary spend with blackowned and black-empowered vendors. This target was met – the company spend was 36.85% with these businesses.

Energy consumption decreased slightly against the adjusted baseline figure (5,509,194 GJ). The target consumption of 5,096,005 GJ, 1.5% less than the previous year, was not achieved with total consumption of 5,063,745 GJ.

This translates into payments amounting to R3,160 billion (2008: R2,154 billion) out of a total of R8,577 billion discretionary spend. Total procurement by the company for 2009 was R12,535 billion.

EXPENDITURE WITH BLACK-OWNED AND BLACK EMPOWERED COMPANIES AS A % OF DISCRETIONARY SPEND

Product intensity expressed as gigajoule of energy per tonne of ore produced increased to 0.120 (2008: 0.118).

Water consumption Against the baseline consumption set in 2004, Kumba recorded a 14% decrease in water consumption in 2009 (7.5 x 106 m3 in 2009 vs 8.7 x 106 m3 in 2004). Kumba’s performance is based on the total volume of water used by Sishen and Thabazimbi mines to produce iron ore. Production intensities for both mines in 2009 were 210 litres/tonne ore (2008: 214) and 560 litres/tonne ore (2008: 556) respectively. Land management

Greenhouse gas emissions increased slightly against the adjusted baseline figure (719,870 tonnes CO2 equivalent). The emissions target of 683,876 tonnes was not met, with 701,250 tonnes emitted.

Key elements in Kumba’s land management strategy include the rehabilitation of waste rock dumps and the clean-up of polluted sites. Sishen Mine’s rehabilitation strategy was approved by the authority. Kumba completed a strategy to maximise the use and value of the land it owns, especially in regards the farms owned by the company.

ENERGY SAVING AS A % OF THE ADJUSTED BASELINE FIGURE

GREENHOUSE EMISSIONS AS A % OF THE ADJUSTED BASELINE FIGURE

36.85 91.91 97.41 target 36

target 92.50

target 97.00

PAGE 55



UÊ7i V…>i˜}i ¼Ì…i Ü>Þ ˆÌ …>à >Ü>Þà Lii˜ `œ˜i½ ­ÃÌ>ÌÕà µÕœ® UÊ7i >Ài ۈÈLÞ œ«i˜ ̜ i>À˜ˆ˜} ˜iÜ >««Àœ>V…ià >˜` ̜ i˜VœÕÀ>}ˆ˜} ˜iÜ Ü>Þà œv ̅ˆ˜Žˆ˜} UÊ7i w˜` ˜iÜ Ü>Þà ̜ `À>“>̈V>Þ ˆ“«ÀœÛi LÕȘiÃà >˜` ̜ ÕÃi ÀiÜÕÀVià “œÀi ivwVˆi˜ÌÞ >˜` ivvviV̈ÛÛiÞ UÊ7 7i Ãi iiŽŽ >˜` >««Þ i i>À˜ˆ˜} vÀœ“ œÕÀ œÜ˜ iÝ«i iÀˆi˜Vi >˜` ̅>Ì œv œÌ… …iÀà UÊ7 7i >V̈ÛiÞ `iÛiœ« vÕÌÕÀi‡œÀˆi˜ ˜Ì>Ìi` ܏Ṏœ˜Ã

4HABAZIMBI-INEWASTHElRSTINTHEWORLDTOOPERATIONALLYDEPLOYANEW84 SERIES Slope Stability Radar (SSR) unit. The SSR unit was acquired as part of the mine’s drive towards Zero Harm and to improve operational efficiency. Since its deployment, a number of threatening slope failures have been detected early, enabling the mine to evacuate staff and equipment before the actual failure occurred.

Kumba Iron Ore Limited administration Secretary and registered office

Sponsor

VF Malie

Rand Merchant Bank

#ENTURION'ATEn"UILDING

!DIVISIONOF&IRST2AND"ANK,IMITED

#ORNER*OHN6ORSTERAND!KKERBOOM3TREET

2EGISTRATIONNUMBER

:WARTKOP%XTENSION

-ERCHANT0LACE

#ENTURION 0RETORIA 

#ORNER2IVONIA2OADAND&REDMAN$RIVE

Republic of South Africa

3ANDTON 

4EL 

South Africa

&AX 

0/"OX 3ANDTON 

#OMPANYREGISTRATIONNUMBER

Corporate law advisors



$ENEYS2EITZ)NC

*3%SHARECODE +)/

-AUDE3TREET 3ANDTON  South Africa

)3).CODE

0/"OX 3ANDTON 

:!%

United States ADR Depository

Auditors Deloitte & Touche #HARTERED!CCOUNTANTS3!

The Bank of New York !$2$EPARTMENT "ARCLAY3TREET .EW9ORK .9 United States of America

Registered Auditors Deloitte Place, The Woodlands

Transfer secretaries

7OODLANDS$RIVE 7OODMEAD 

#OMPUTERSHARE)NVESTOR3ERVICES0TY ,IMITED

South Africa

-ARSHALL3TREET

0RIVATE"AG8 'ALLO-ANOR 

*OHANNESBURG  South Africa 0/"OX -ARSHALLTOWN