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ANGLO AMERICAN PLC - Kumba Iron Ore approves Kapstevel South project at Kolomela

Release Date: 28/07/2020 08:00
Code(s): AGL     PDF:  
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Kumba Iron Ore approves Kapstevel South project at Kolomela

Anglo American plc (the “Company”)
Registered office: 20 Carlton House Terrace, London SW1Y 5AN
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
JSE Share Code: AGL
NSX Share Code: ANM

28 July 2020

Kumba Iron Ore approves Kapstevel South project at Kolomela

Anglo American notes the announcement made by Kumba Iron Ore this morning, the text of
which appears below.

Kumba is pleased to announce the approval of its Kapstevel South project at its Kolomela mine
by both the Company’s and Anglo American’s boards.

The total capital cost of the project will be approximately R7 billion, including pre-stripping. It is
anticipated that the addition of the Kapstevel South pit will deliver an after-tax internal rate of
return of ~25% and allow Kolomela to maintain an estimated EBITDA margin of >35% in the long-

The project entails the development of a new pit, Kapstevel South and associated infrastructure
at Kolomela. The pit is a conventional truck and shovel operation producing high quality direct
shipping ore (DSO). Whilst the pit is included in the current life of mine, it contributes significantly
to sustaining production of ~13Mt for the remaining life of mine. Pit establishment and waste
stripping will commence this year with first ore expected in 2024.

Themba Mkhwanazi, CEO of Kumba, said: “The approval of this project, at a time when the global
and South African economies face the challenges of Covid-19, underscores Kumba’s positive
longer-term outlook for demand for its high-quality product. It also demonstrates our commitment
to extend the lives of our mines and continue providing much-needed jobs and livelihoods in the
Northern Cape region.”

The operational and financial forecasts provided in this announcement are estimates and the
financial information has not been reviewed and reported on by the Company's external auditors.

For further information, please contact:

Media                                                                       Investors
UK                                                                          UK
James Wyatt-Tilby                                                           Paul Galloway                               
Tel: +44 (0)20 7968 8759                                                    Tel: +44 (0)20 7968 8718

Marcelo Esquivel                                                            Robert Greenberg                                
Tel: +44 (0)20 7968 8891                                                    Tel: +44 (0)20 7968 2124

Katie Ryall                                                                 Emma Waterworth                                     
Tel: +44 (0)20 7968 8935                                                    Tel: +44 (0)20 7968 8574

South Africa
Pranill Ramchander
Tel: +27 (0)11 638 2592

Sibusiso Tshabalala
Tel: +27 (0)11 638 2175

Notes to editors:
Anglo American is a leading global mining company and our products are the essential
ingredients in almost every aspect of modern life. Our portfolio of world-class competitive
operations, development projects and undeveloped resources, provides many of the metals and
minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing
consumer-driven demands of developed and maturing economies. With our people at the heart
of our business, we use innovative practices and the latest technologies to mine, process, move
and market our products to our customers – and to discover new resources – safely and

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, the
steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in
development and thermal coal operations planned for divestment – we are committed to being
carbon neutral across our operations by 2040. We work together with our business partners and
diverse stakeholders to unlock sustainable value from precious natural resources for the benefit
of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people’s lives.

Forward-looking statements:
This announcement includes forward-looking statements. All statements other than statements of historical
facts included in this announcement, including, without limitation, those regarding Anglo American’s
financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and objectives relating to Anglo American’s
products, production forecasts and Ore Reserves and Mineral Resource estimates), are forward-looking
statements. By their nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Anglo
American, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American’s present
and future business strategies and the environment in which Anglo American will operate in the future.
Important factors that could cause Anglo American’s actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others, levels of actual production
during any period, levels of global demand and commodity market prices, mineral resource exploration and
development capabilities, recovery rates and other operational capabilities, the effects of global pandemics
and outbreaks of infectious diseases, the availability of mining and processing equipment, the ability to
produce and transport products profitably, the availability of transport infrastructure, the impact of foreign
currency exchange rates on market prices and operating costs, the availability of sufficient credit, the effects
of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as permitting and changes in taxation or safety,
health, environmental or other types of regulation in the countries where Anglo American operates, conflicts
over land and resource ownership rights and such other risk factors identified in Anglo American’s most
recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk
factors and undue reliance should not be placed on forward-looking statements.

These forward-looking statements speak only as of the date of this announcement. Anglo American
expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on
Takeovers and Mergers (the “Takeover Code”), the UK Listing Rules, the Disclosure and Transparency
Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE
Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock
Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-
looking statement contained herein to reflect any change in Anglo American’s expectations with regard
thereto or any change in events, conditions or circumstances on which any such statement is based. Nothing
in this announcement should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share.

Certain statistical and other information about Anglo American included in this announcement is sourced
from publicly available third-party sources. As such, it has not been independently verified and presents the
views of those third parties, though these may not necessarily correspond to the views held by
Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such
third-party information.

Legal Entity Identifier: 549300S9XF92D1X8ME43

The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange
and the SIX Swiss Exchange.

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 28-07-2020 08:00:00
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