KIO - Kumba Iron Ore Limited - Market update on capital expenditure and
KIO
KIO
KIO - Kumba Iron Ore Limited - Market update on capital expenditure and
production
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
("Kumba")
MARKET UPDATE ON CAPITAL EXPENDITURE AND PRODUCTION
The uncertainties and challenges faced by the global economy have led to a
period of unprecedented volatility and rapid decreases in commodity prices. The
Kumba board wishes to advise its shareholders on its planned response to the
challenges:
- 2009 capital expenditure has been reduced by some 20% to $425m. We will
continue to review capital expenditure and costs against market conditions.
- Planned 2009 capital expenditure at Sishen South has been optimized along
the critical path and first production remains scheduled for H1 2012.
- 2009 production is expected to increase by approximately 10% vs. 2008 as
the Sishen jig plant continues to ramp up.
- Kumba Iron Ore`s high quality products are produced at low cost on a
delivered basis and are thus well placed to survive the current market
volatility.
- Due to the volatility of the market, Kumba`s Sishen Mine will look to
secure export volumes in the short term by focusing on increasing the
quality of products to its customers, albeit with the effect of marginally
reducing the Q4 2008 volumes produced by the Mine.
Kumba remains confident that the iron ore market fundamentals remain robust in
the long term.
For further information please contact:
Tebello Chabana
Tel.: +27 (0)12 683 7067
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/12/2008 09:00:20 Produced by the JSE SENS Department.
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