Joint press release by Assmang and Spoornet
11 March 2005
Assmang to expand iron ore exports
Spoornet and Assmang, the iron ore miner and exporter in the Northern Cape, have concluded negotiations regarding export capacity on the Orex rail line to Saldanha Bay, and announce jointly that the company’s iron ore export allocation is to increase substantially by 2009/10.
Transnet announced in the past week that the capacity on the Orex rail line would increase from the current 29 million to about 41 million tons per annum by 2009/10, which will be adequate to cope with Assmang’s envisaged expansion. Assmang is currently exporting about 6 million tons per annum, and it plans to increase exports of its iron ore to about 10 m tons per annum by 2010.
Assmang is conducting a feasibility study to expand its iron ore export capacity by establishing a new mine, at an estimated cost of R1,5 to R2,0 billion, on the farms Bruce, King and Mokaning (�BKM Mine�) adjacent to Kumba’s Sishen Mine. The BKM mine will substantially replace its current Beeshoek Mine near Postmasburg. The BKM Mine is scheduled to export about 10 million tons per annum by 2010 and an increase to an estimated 15 million tons per annum is envisaged by 2015. This latter phase of the expected increase in export volumes from 10 to 15 million tons per annum is the subject of a current feasibility study by Transnet to increase the Orex capacity beyond 41 million tons per annum.
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Forward Looking Statements Certain statements in this presentation constitute �forward looking statements� within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange A ct of 1934. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of commodities; hazards associated with underground and surface mining; labor disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macroeconomic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of publication of these pages.
The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of publication of these pages or to reflect the occurrence of unanticipated events.