Site Visit to Sishen Mine 14 April 2010 Summary: Kumba Iron Ore - PDF document

Site Visit to Sishen Mine 14 April 2010

Summary: Kumba Iron Ore • Large hematite ore body: ± 14km x 3.2km x 400m: 2.4bt resource � 1.6bt reserve • Hard ore: 60:40 lump to fine ratio • Mining started in 1953; First ore exported in 1976 • Highly mechanized, continuous blending mining operation • Entire Run-of-Mine (ROM) beneficiated – Dense medium separation (DMS) - drums and cyclones – JIG gravity separation – Coarse, medium and fine jigs • Products – 25mm 66% Fe lump – 25mm 64% Fe lump – 27 and 20mm 66% Fe lump – niche products – 8mm 65% Fe course sinter – niche product – 6.3mm 64% Fe fines • Consistent product quality is ensured through final product blending and reclaiming at Sishen before dispatch to customers • Export ore is transported via the Sishen-Saldanha Iron Ore Export Channel (IOEC) to Saldanha port 2

Sishen Mine Management Team Andrew Loots General Manager Hannes Lambert Hannecke Gerhard Brits Susan Howard Supply Cronje Mostert Nico Smit Retief Louw Da Silva Anel Marais Projects Bezuidenhout Nicholas Manager Mining Engineering Plant Manager Manager BI Manager Manager SD Manager SHE Manager Manager HR Vacant Manager Manager Finance

Safety: LTIFR Sishen and Safety Achievements 2009 LTIFR – Sishen Mine – 2010 – YTD LTIFR - SISHEN MINE - 2010 - YTD 0.9 0.85 • LTIFR = 0.09, the best ever. 0.8 • TRCFR = 1.32, the best ever. • LTIs for the year 2009 = 9, the best ever. 0.7 • Man hours worked without LTI = 5 443 746, the best ever. 0.6 • Safe days = 102, the best ever. 0.51 • Fatalities = 0, the first year since 2004 without a fatal. 0.48 0.5 0.4 0.29 0.3 0.22 0.23 0.2 0.14 2010 - Sishen Target - 0.06 0.09 0.1 0.06 0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- 2002 2003 2004 2005 2006 2007 2008 2009 10 10 10 10 10 10 10 10 10 10 10 10 0.85 0.48 0.51 0.29 0.22 0.23 0.14 0.09 HISTORY 0 0.13 0.17 0 0 0 0 0 0 0 0 0 ACTUAL 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 SISHEN TARGET 4

View of ore body 5

Summary of Production trends 2006 2007 2008 2009 Total Tons Handled (Including Contractors) 108,146,936 122,223,344 128,852,640 152,961,734 ROM to Crusher Production 32,252,855 32,965,188 44,282,717 52,169,049 Expit Waste 59,081,159 65,696,664 64,207,926 81,266,739 Expit Stripping Ratio 1.902 1.713 1.440 1.758 Resource (Mt) 691.5 1,316.00 1,565.30 1,362.10 Reserve (Mt) 1,053.80 1,032.50 956.9 911.5 Truck Fleet (Primary Equipment) 55 55 62 Shovel Fleet (Primary Equipment) 15 14 16 Production 2006 2007 2008 2009 DMS 28,691,977 29,550,673 28,394,804 28,957,233 JIG 172,928 4,746,532 10,430,445 Additional 897,270 Total Production 28,691,977 29,723,601 34,038,606 39,387,678 6

Jig Plant Flow Diagram TERTIARY Feed Crusher & SEP SEP 3981 tph Bunkers Screening ROM ROM 5451 FEED 3331 tph FEED 21.7Mtpa hpa Bed 1 Bed 2 6500 hpa 3179 tph 6825 hpa BENEFICIATION 8-Modules -8mm Coarse JIG dewatering nr 1 1998 tph Blending beds Medium JIG Fine JIG nr 1 nr 1 Final Products Lump Fine 7,9 5,1 Mtpa Mtpa

Average Monthly Yield Monthly Jig Plant Yield 10 20 30 40 50 60 70 0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 Monthly Jig Plant Yield May-09 Jun-09 Month Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

DMS Plant Flow Diagram PRIMARY & TERTIARY SECONDARY Crusher Medium Coarse Washing & Fine Coarse Crusher Up Current Drum Drum Screening Cyclone Cyclone Classifier DRS IN-PIT Screening Crusher Blending beds Final Products Lump DRS DR C.S. Fine Quaternary Quaternary Ore Ore Ore Ore Ore Screening Crushing

Average Yield DMS 2005 to 2009 2010 YTD 2009 2008 2007 2006 2005 90% 88% 86% 84% 82% 80% 78% 76% 74%

Asset Optimisation Project Bokamoso: Initial achievements February 2010 % improvement vs. KPIs Baseline performance baseline Trucks and Daily tonnes Shovels handled 218kt 305kt +40 OEE 51% 64.8% +27 Mean time to repair (shovels) 2.39 hours 1.7 hours -29 Drilling and Daily metres Blasting drilled 1558m 2454m +57 OEE 39% 48.1% +23 Daily ROM Jig Plant stacked 58kt 61kt +5 11

Asset Optimisation Project Bokamoso: Initial achievements 330000 310000 290000 270000 250000 230000 210000 190000 170000 150000 Baseline Oct Mar Apr Jun Jul Aug Sep Nov Dec Jan Feb May TTH Baseline 2 per. Mov. Avg. (TTH) 12

Social and Community Development Initiatives Education Multipurpose Skills • Whole school development Training Centre • Teacher development • Enterprise development: • Integration of SD into HR training, mentoring, support Health interventions • Various skills programmes • Rural libraries • Community access (rural) • Early Childhood Development 2010: Priorities SLP SIOC Community Small business Start-up Hubs • Delivering long term Development Trust • Expand Sishen Hub sustainable value • Alignment • New business hubs at • Partnerships Thabazimbi and Kolomela • Resourcing the hubs