Archive - 2008

Sishen South mine is located 80km south of the Sishen mine, near Postmasburg in the Northern Cape. The new mine is scheduled to start production in the first half of 2012, ramping up to full capacity of 9Mtpa in 2013.

It will have in excess of 20 years life and produce Direct Shipping Ore ("DSO") with product qualities of 64% Fe lump and 63.5% Fe fine ore for the export market. The ore will be transported on the main Sishen-Saldanha rail line to the port of Saldanha Bay via a rail link to be built from Sishen South mine.

Chris Griffith, CEO of Kumba, said:

"This is another exciting achievement for Kumba, and one that demonstrates our commitment to deliver on a strong project pipeline. The development forms part of Kumba's expansion strategy to grow Iron Ore Export Channel ("IOEC") volumes to 44Mtpa by 2013. Including current domestic production of 9Mtpa, this increases Kumba's total production to well over 50Mtpa. The project pipeline remains robust with a potential to deliver 70 Mtpa by 2015.

This milestone has been made possible by the recent granting of Sishen South's new order mining rights, the issuing of its Integrated Water Use Licence, and the positive conclusion to the negotiations with Transnet regarding the additional capacity on the Sishen-Saldana iron ore export channel. Eskom has also committed to honour the supply contract for electricity to the Sishen South mine.

An experienced project team has been secured and we have ensured that the people and skills deployed in the Sishen Expansion Project ("SEP") were retained for the development of the Sishen South mine. Orders have also been placed on long lead equipment, which means that we are in a strong position to ramp up swiftly to full capacity."

Approximately 750 people will be employed by the mine, with a further 2000 jobs created at the peak of the construction phase. Indirect job creation is estimated to be in the region of 4000 jobs. The mine will have a positive impact on the economy of the Northern Cape.

Kumba is committed to its high standards of environmental responsibility and safety in the development of this mine. An Environmental Impact Assessment, Environmental Management Plan and Social and Labour Plan were submitted to and accepted by the Department of Minerals and Energy. This will result in the immediate implementation of the local economic development projects as agreed to with key stakeholders.

Kumba expects the iron ore market to remain attractive for some time and customers are very excited about Sishen South coming on line. Kumba is delivering this additional capacity into a market of favourable iron ore prices and strong demand.

For further information please contact:

Tebello Chabana
Tel.: +27 (0)12 683 7067 / +27 (0)82 920 9229

Please contact Angela Parsons on +27 11 502 7300 or [email protected] with any queries.