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

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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


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SLIDE 1

Site Visit to Sishen Mine

14 April 2010

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SLIDE 2
  • 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

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Summary: Kumba Iron Ore

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SLIDE 3

Sishen Mine Management Team

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

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SLIDE 4

LTIFR - SISHEN MINE - 2010 - YTD

0.85 0.48 0.51 0.29 0.22 0.23 0.14 0.09 0.06 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 HISTORY 0.85 0.48 0.51 0.29 0.22 0.23 0.14 0.09 ACTUAL 0.13 0.17 SISHEN TARGET 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 2002 2003 2004 2005 2006 2007 2008 2009 Jan- 10 Feb- 10 Mar- 10 Apr- 10 May- 10 Jun- 10 Jul- 10 Aug- 10 Sep- 10 Oct- 10 Nov- 10 Dec- 10 2010 - Sishen Target - 0.06

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Safety: LTIFR Sishen and Safety Achievements 2009

  • LTIFR = 0.09, the best ever.
  • TRCFR = 1.32, the best ever.
  • LTIs for the year 2009 = 9, the best ever.
  • Man hours worked without LTI = 5 443 746, the best ever.
  • Safe days = 102, the best ever.
  • Fatalities = 0, the first year since 2004 without a fatal.

LTIFR – Sishen Mine – 2010 – YTD

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SLIDE 5

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View of ore body

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SLIDE 6

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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 39,387,678 34,038,606 29,723,601 28,691,977 Total Production 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

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SLIDE 7

BENEFICIATION 8-Modules Feed Bunkers 3331 tph

6500 hpa

Coarse JIG nr 1 Fine JIG nr 1 Medium JIG nr 1

SEP ROM FEED Bed 1

SEP ROM FEED Bed 2

TERTIARY Crusher & Screening

21.7Mtpa 3179 tph

6825 hpa

3981 tph

5451 hpa

Lump Fine 7,9 Mtpa 5,1 Mtpa Blending beds Final Products

  • 8mm

dewatering 1998 tph

Jig Plant Flow Diagram

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SLIDE 8

Monthly Jig Plant Yield

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

Monthly Jig Plant Yield

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SLIDE 9

PRIMARY & SECONDARY Crusher

Quaternary Crushing

Washing & Screening Fine Cyclone Coarse Cyclone Medium Drum Coarse Drum

DRS Screening

TERTIARY Crusher IN-PIT Crusher

Quaternary Screening

Blending beds Lump DRS DR C.S. Fine Ore Ore Ore Ore Final Products

Up Current Classifier

Ore

DMS Plant Flow Diagram

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SLIDE 10

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

Average Yield DMS 2005 to 2009

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Asset Optimisation

Project Bokamoso: Initial achievements

+5 61kt 58kt Daily ROM stacked Jig Plant +23 48.1% 39% OEE +57 2454m 1558m Daily metres drilled Drilling and Blasting

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1.7 hours 2.39 hours Mean time to repair (shovels) +27 64.8% 51% OEE +40 305kt 218kt Daily tonnes handled Trucks and Shovels % improvement vs. baseline February 2010 performance Baseline KPIs

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SLIDE 12

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Asset Optimisation

Project Bokamoso: Initial achievements

150000 170000 190000 210000 230000 250000 270000 290000 310000 330000 Baseline Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb TTH Baseline 2 per. Mov. Avg. (TTH)

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SLIDE 13

Education

  • Whole school development
  • Teacher development
  • Integration of SD into HR

interventions

  • Rural libraries
  • Early Childhood

Development Multipurpose Skills Training Centre

  • Enterprise development:

training, mentoring, support

  • Various skills programmes
  • Community access (rural)

Health SLP

  • Delivering long term

sustainable value SIOC Community Development Trust

  • Alignment
  • Partnerships

Small business Start-up Hubs

  • Expand Sishen Hub
  • New business hubs at

Thabazimbi and Kolomela

  • Resourcing the hubs

2010: Priorities

Social and Community Development Initiatives