Archive - 2010

• Kumba's underlines its commitment to transformation

Since inception Kumba has shown an immense commitment to both broad based black economic empowerment and wider health and educational transformation schemes. This commitment has involved employees, local communities and specific social investment projects. One such success story is the SIOC Community Development Trust (or "the Trust"). The Trust was established in 2006 as a 3% shareholder in Sishen Iron Ore Company ("SIOC") as a broad-based socio-economic empowerment ownership initiative.

Less than four years after its establishment, using the SIOC dividends paid to date, the Trust will soon be in a position to redeem in full the R458 million in preference shares issued to pay for its Sishen Iron Ore Company ("SIOC") shares. This is well ahead of the original projections. Once the redemption process is complete this will free up substantial funds more each year to fund numerous new community development projects.

Kumba is a proud to be associated with the Trust and has played an active role in a number of its charitable activities since its listing in 2006. Kumba, via its shareholding in SIOC is represented on the Board of the Trust and actively contributes to assisting the Trust in reaching its objectives Aside from redeeming a substantial amount of preference shares and declaring preference dividends to Kumba, out of the R570 million dividends received from SIOC since 2006, the Trust has also invested R22,.5 million in community development projects up to the end of 2009, and is expected to contribute an additional R8,5 million to the communities in 2010.

Commenting on the news Kumba CEO, Chris Griffith said: "This is an exciting  achievement, particularly taken in the context of the current worldwide economic malaise. It is evidence that broad based BEE can and does work! We are delighted that the steady stream of Kumba dividends has enabled the Trust to reach this position so quickly after its establishment. It reaffirms our mission at Kumba; of people making a difference, in a company making a difference."."

Alongside Kumba's work with the Trust, the Company has made immense strides to empower employees and build a varied skills development programme. Kumba's employees also benefit from the broad-based employee share participation scheme or "Envision" which received R189 million in dividends from the 2009 final dividend paid by SIOC. Since 2006 Envision has received R593 million in dividends from SIOC, and employees (through Envision) have received R125 million, with R468 million used to date to repay funding and interest. This striking success in less than four years has had a vast impact on the empowerment of Kumba's black employees.

For further details please visit www.kumba.co.za or contact:Kumba Iron Ore

Tebello Chabana
Tel: +27 (0)12 683 7067
Executive Head of Public Affairs: [email protected]

Gert Schoeman
Tel: +27 (0)12 683 7019
Media Relations: [email protected]

Brunswick South Africa on behalf of Kumba Iron Ore on behalf of Kumba Iron Ore

Anne Dunn
Tel: +27 (0)82 448 2684
[email protected]

Clemmie Raynsford
Tel: +27 (0)82 887 4593
[email protected]

Notes to Editors

Further evidence of Kumba's commitment to transformation in South Africa:

Kumba's sustainability report was judged "excellent" in the 2009 Ernst & Young Excellence in Sustainable Reporting Awards while the Sishen Mine Anglo Zimele small business hub was joint winner in the socio-economic category of the Nedbank Green Mining Awards.

The company continually invests in the training and skills enhancement of employees, spending 5.3% of payroll in 2009 on such programmes.

In the 2009 Financial Mail Top Empowerment Companies survey Kumba came eighth overall for skills development.

Kumba made significant strides in its HIV voluntary testing and counselling programme with over 90% of our staff having gone through the programme in 2009, 10% higher than 2008.

Testing indicated that Kumba's staff has an HIV prevalence rate of 7.6%, which is three to four percentage points below the averages in the provinces in which Kumba operates.

Kumba continues with this comprehensive programme to ensure that all staff benefit from it. In 2010 Kumba is planning to roll out the HIV voluntary testing and counselling programme to contractors and the family of members of staff.

Kumba also has a wide-ranging employee wellness programme which promotes healthy lifestyles and behaviour.