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KUMBA IRON ORE LIMITED - Kumba approves Kapstevel South project at Kolomela

Release Date: 28/07/2020 07:15
Code(s): KIO     PDF:  
Wrap Text
Kumba approves Kapstevel South project at Kolomela

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 approves Kapstevel South project at Kolomela

Kumba is pleased to announce the approval of its Kapstevel South project at its Kolomela mine by both the Company
and Anglo American’s boards.

The total capital cost of the project will be approximately R7 billion, including pre-stripping. It is anticipated that the
addition of the Kapstevel South pit will deliver an after-tax internal rate of return of ~25% and allow Kolomela to
maintain an estimated EBITDA margin of >35% in the long-term.

The project entails the development of a new pit, Kapstevel South and associated infrastructure at Kolomela. The pit
is a conventional truck and shovel operation producing high quality direct shipping ore (DSO). Whilst the pit is included
in the current life of mine, it contributes significantly to sustaining production of ~13Mt for the remaining life of mine.
Pit establishment and waste stripping will commence this year with first ore expected in 2024.

Themba Mkhwanazi, CEO of Kumba, said: “The approval of this project, at a time when the global and South African
economies face the challenges of Covid-19, underscores Kumba’s positive longer-term outlook for demand for its
high-quality product. It also demonstrates our commitment to extend the lives of our mines and continue providing
much-needed jobs and livelihoods in the Northern Cape region.”

The operational and financial forecasts provided in this announcement are estimates and the financial information
has not been reviewed and reported on by the Company's external auditors.

28 July 2020

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

For further information, please contact:
Company Secretary
Fazila Patel
Tel: +27 12 683 7060
Mobile: +27 83 297 2293

Investors                                              Media
Penny Himlok                                           Sinah Phochana               
Tel: +27 12 622 8324                                   Tel: +27 12 683 7019
Mobile: +27 82 781 1888                                Mobile: +27 76 066 0655

Notes to editors:

Such forward-looking statements are based on numerous assumptions regarding Kumba’s present and future
business strategies and the environment in which Kumba will operate in the future. Important factors that could cause
Kumba’s actual results, performance or achievements to differ materially from those in the forward-looking statements
include, among others, levels of actual production during any period, levels of global demand and commodity market
prices, mineral resource exploration and development capabilities, recovery rates and other operational capabilities,
the effects of global pandemics and outbreaks of infectious diseases, the availability of mining and processing
equipment, the ability to produce and transport products profitably, the availability of transport infrastructure, the
impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit,
the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as permitting and changes in taxation or safety, health,
environmental or other types of regulation in the countries where Kumba operates, conflicts over land and resource
ownership rights and such other risk factors identified in Kumba’s most recent Integrated Report.

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.

Notes to editors:

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.

Date: 28-07-2020 07:15:00
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