KUMBA TO EXPAND SISHEN OUTPUT BY 10 MILLION TONNES
KUMBA TO EXPAND SISHEN OUTPUT BY 10 MILLION TONNES PER ANNUM
KUMBA RESOURCES LIMITED
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: KMB
ISIN Number: ZAE000034310
(`Kumba`)
KUMBA TO EXPAND SISHEN OUTPUT BY 10 MILLION TONNES PER ANNUM
Telephone : + 27 (12) 307 4843 P.O. Box 9229
Telefax : + 27 (12) 307 4080 PRETORIA 0001
7 March 2005
KUMBA TO EXPAND SISHEN OUTPUT BY 10 MILLION TONNES PER ANNUM
Diversified metals and mining company Kumba Resources Limited (Kumba) today
announced a major expansion project at its Sishen iron ore mine in South
Africa`s Northern Cape province. The Sishen Expansion Project (SEP) will
increase Sishen`s production from the current 28 million tonnes per annum (Mtpa)
to 38Mtpa by 2009. Construction will start in mid 2005, with production ramp-up
to commence by mid 2007.
The additional 10Mtpa in sales production will be exported via the 860km Sishen-
Saldanha railway line and the port of Saldanha on the country`s west coast.
National transport company Transnet Limited also announced today that it will,
simultaneously with the SEP, embark on an expansion project of the rail and port
facilities. Kumba and Transnet have agreed on Kumba`s additional logistical
capacity and tariff structures.
`The SEP project is a significant step in our strategy to grow iron ore sales
volumes and enhance shareholder value,` said Dr Con Fauconnier, Kumba`s chief
executive. `The low operating cost of the project improves Sishen`s competitive
position in the global iron ore industry.`
`The SEP project utilises breakthrough developments in application of jig
technology to beneficiate iron ore products from a portion of mined material
previously discarded as waste.` said Matie von Wielligh, General Manager, Iron
Ore business at Kumba.
The SEP product range, with an iron content of between 63% and 64%, will
supplement current Sishen products. `Commitments from current Sishen customers
significantly outstrip production,` added Von Wielligh.
The mining, plant and infrastructure expansions amount to a capital expenditure
of R2.96bn, which will be funded from Kumba`s cash flow and lending facilities.
The project will make a meaningful contribution to the Northern Cape and South
African economy with 1800 direct construction jobs and more than 300 direct and
600 indirect long-term jobs being created through the expanded operations. The
project will contribute about US$250 million per year additionally to South
Africa`s foreign exchange receipts when full production is achieved and will,
through direct and indirect tax payments, contribute significantly towards the
South African fiscus.
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, coal, heavy minerals,
base metals and industrial minerals. www.kumbaresources.com
Enquiries:
Matie von Wielligh
General Manager: Kumba Iron Ore
Tel: 012 - 307-4913
Trevor Arran
General Manager: Corporate Affairs & Investor Relations
Tel: 012 - 307-3292
Mobile: 083 609 1444
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