| Fri 13 Feb 2004, 16:10 | | EXPORT RAIL LINES IMPACT POSITIVELY ON SA"S ECONOM |
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KUMBA RESOURCES LIMITED - EXPORT RAIL LINES IMPACT POSITIVELY ON SA"S ECONOMIC
DEVELOPMENT
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number 2000/011076/06)
Share code: KMB
ISIN No: ZAE000034310
("Kumba")
KUMBA RESOURCES LIMITED
NEWS RELEASE
13 February 2004
EXPORT RAIL LINES IMPACT POSITIVELY ON SA"S ECONOMIC DEVELOPMENT
The export rail lines linking the Northern Cape iron ore industry to port
facilities at Saldanha Bay, and the Waterberg coalfields in Limpopo province to
Richards Bay, have impacted positively on economic development in South Africa.
Speaking at the Investing in African Mining Conference in Cape Town this week,
Kumba Resources chief executive, Dr Con Fauconnier, said that these rail
facilities are examples of how infrastructure related to bulk mining is able to
support sustainable economic growth in developing countries.
The establishment of transport - and accompanying energy - infrastructure linked
to bulk mining operations not only leads to the direct establishment of
employment opportunities and foreign exchange revenues, but also to the
establishment of regional development hubs, as has been the case with the
Saldanha and Richards Bay port developments.
"These South African infrastructure examples can be emulated in other African
countries rich in bulk minerals, notably Senegal, Guinea, Gabon, DRC and
Mozambique," said Dr Fauconnier.
He commended the government"s recent announcement to spend an additional R100
billion on road, rail and other transport as well as telecommunications and
energy infrastructure. "From a mining point of view, such funds would not be
invested better than in the expansion of the capacity on the Sishen-Saldanha
Orex line and upgrading of the existing line to the new port at Coega. This
would enable the country to fully realise the enormous potential for ferrous
mineral mining in the Northern Cape," he said.
In addition, the extension of the Richards Bay Coallink line to the Waterberg
coalfields would unlock one of the greatest relatively underdeveloped resources
remaining in South Africa.
"Kumba is extremely satisfied with the performance of the Orex rail line run by
Transnet and it has been benchmarked against other long-distance heavy-haul rail
lines around the world and proven to be competitive.
"Working closely with Transnet, we are in agreement on expanding export
infrastructure and iron ore production as fast as possible to limit loss of
global iron ore market share to competitors in Australia and Brazil. The iron
ore market is growing at an unprecedented rate, largely as a result of the
industrial boom in China," said Dr Fauconnier.
"We enjoy a good working relationship with the Department of Public Enterprises
and Transnet, and I have met with Minister Jeff Radebe and senior Transnet
management to discuss their plans to upgrade the line to transport additional
iron ore. Kumba expects to increase Northern Cape iron ore production from the
current 27Mtpa to 28Mtpa by the end of this year and to 47Mtpa by 2008 and we
have the full support of the Department and Transnet in meeting these
ambitions," he added.
ends
Note
Kumba Resources Limited, one of the largest South African-based mining companies
listed on the JSE Securities Exchange, is a focused metals and mining company
with a diverse commodity portfolio consisting of iron ore, heavy minerals, coal,
base metals and industrial minerals. www.kumbaresources.com
Dr Con Fauconnier
Chief Executive
Tel: 012 - 307 4314
Mobile: 083 609 1245
For media relations enquiries contact:
Pat Mdoda
General Manager: Corporate Affairs
Tel: 012 - 307-4552
Mobile: 083 609 1204
For investor relations enquiries contact:
Trevor Arran
General Manager: Investor Relations
Tel: 012 - 307-3292
Mobile: 083 609 1444
Date: 13/02/2004 04:07:04 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
