Assmang Limited – Assmang’s new Iron Ore Mine

Assmang’s New Iron Ore Mine

Johannesburg, 26 January 2006: Shareholders are advised that the Board of Assmang has approved the first phase construction of a new export iron ore mine on its Bruce, King, Mokaning properties (“BKM mine”), adjacent to Kumba’s Sishenmine, near Kathu in the Northern Cape Province of South Africa.

Construction of the BKM mine will commence during the early part of calendar 2006 with the first phase resulting in a new 8.4 million ton per annum export iron ore mine at an estimated total capital cost of R3,2 billion. First production is expected during the first half of calendar 2008.

A second phase expansion of the BKM mine to increase production volumes from the initial 8,4 million tons per annum to 16,0 million tons per annum export capacity forms part of the current design and some of the capital spent for the first phase is to incorporate this expansion.

The second phase expansion, which would require Assmang Board approval prior to commencement, will require a further estimated R1.8 billion to increase the capacity to 16,0 million tons per annum export capacity. This second phase expansion is, however, dependant on further increases in the capacity of Transnet’s Sishen/Saldanha export channel.

For further details, contact
Jan Steenkamp
Director
Phone: (+27 11) 7791106
Mobile: 082 492 6948

Phil Crous
Director
Phone: (+27 11) 7791106
Mobile: 082 492 6948