Kumba Iron Ore Limited ("Kumba or "the Company) announces that the Company's board has approved the plan to relocate the Dingleton community to Kathu to facilitate the expansion of its Sishen mine to the west. This follows Kumba's completion of a comprehensive feasibility study and an extensive consultation process with interested and affected parties including the community and the relevant government departments. The resettlement is expected to cost an estimated R4.2 billion capex (nominal) over a 4 - 6 year period.

Kumba will build more than 500 new homes in Kathu and the town's educational structures will be improved with additional facilities for the schools, new sports facilities and public libraries. Any existing businesses or livelihoods directly affected by the resettlement will also be addressed as a part of the process.

The vast majority of Dingleton residents have already indicated their support for the resettlement, which will be carried out in accordance with the International Finance Corporation (IFC)'s standards. These require that families and communities not be worse off as a consequence of the resettlement.

The move to Kathu will be beneficial to the community as the town offers them an increase in property value, newer and more modern infrastructure, better facilities and easier access to social services, as well as enhanced employment opportunities. All relocation and property transfer costs will be paid by Kumba. The Company will also pay the difference in property taxes and rates for 25 years, as well as all capital gains tax that private property owners might incur as a result of the resettlement.

Commenting on the project, CEO of Kumba Norman Mbazima said: "Kumba is committed to operating in a way that takes into account not only the financial implications of business decisions, but also the social and environmental impact it has on the community. A hallmark of this project is the extent of participation and positive contribution by the provincial and local government and community representatives - with an extensive consultation at every step of the process.



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