Assmang Limited – Khumani Iron Ore Mine

7 May 2007

17 May 2007
Assmang which is jointly owned and controlled by ARM and Assore Limited (Assore) announced on 26 January 2006 the construction of an 8,4 million tonne per annum (mtpa) export mine – the Khumani Iron Ore Mine – near Kathu in the Northern Cape Province. It is anticipated that the Khumani Mine will be commissioned by July 2008.

Assmang has reached principal agreement on a 20 year contract with Transnet for the export of 10 mtpa of iron ore from Khumani through the Orex rail link and Saldanha Iron Ore Export Terminal. During the 2009 financial year, 7,2 million tonnes will be exported from Khumani and an additional 1,2 mtpa will be exported from the existing Beeshoek Mine. From the 2010 financial year, the total tonnage exported from Khumani will be 10 mtpa. The Beeshoek Mine will continue to supply the local market and feasibility work on the life of mine is continuing.

The Board of Directors has approved a total capital expenditure of R4.0 billion to construct the Khumani Mine which includes anticipated escalation costs and incorporates capital required for the 10mtpa export operation.

Assmang in consultation with Transnet is continuing to investigate the viability of expanding the capacity of the Transnet export channel beyond the currently planned 47mtpa. This could facilitate a further increase in the export capacity for Assmang.

For further details contact:
Pieter Rörich
Executive Director
African Rainbow Minerals Limited
Phone: 27 11 779 1476
Mobile: +27(0)82 570 5064