Joint media statement by Transnet & Assmang

Assmang Limited (Assmang), jointly controlled by ARM and Assore Limited, have reached agreement with Transnet Limited (Transnet) on Assmang’s export iron ore tonnage allocation and tariff through the Port of Saldanha. Transnet representing its operating divisions of Spoornet, South Africa Port Operations Saldanha and National Port Authority Saldanha has approved the capital expenditure to increase the channel throughput capacity from 41 million tonnes per annum to 47 million tonnes per annum.

Assmang export tonnages will build up from the existing allocation of 6 million tonnes per annum to 10 million tonnes per annum by January 2010. These tonnages will be supplied from the existing Beeshoek mine and from the Khumani mine which is currently under construction and will ramp up to 16,8 million tonnes per annum, pending approval of the Assmang Board and Transnet’s future tonnage allocation.

Transnet is presently carrying out a feasibility study into a further expansion to 67 million tonnes per annum. This study should be completed by March 2007.

Negotiations into a long-term Agreement between Assmang and Transnet have now commenced.

For more information contact:
ARM

Jan Steenkamp
Chief Executive
ARM Ferrous
Tel: +27 11 779 1106
jan.steenkamp@arm.co.za

Pieter R�rich
Executive Director: Investor Relations / New Business Development
Tel: +27 11 779 1476
pieter.rorich@arm.co.za

Assore

Phil Crous
Technical and Operations Director
Tel: +27 11 770 6909
philcrous@assore.com