Annual financial statements 2008
 
 
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Resources and reserves tables

                2008
              Ore reserves        
                       
                       
          Reserve       Grade (% Fe)   Grade (% Fe)
    Operation/project     category   Tonnes (Mt)   Average   Cut-off
    Sishen Mine1   58.2   Proved   709.2   59.7   40
    – DMS and Jig plant   Probable   247.7   59.3   40
            Subtotal   956.9   59.6    
    Thabazimbi Mine2   74.0   Proved   4.1   64.5   55
  – Within pit layouts   Probable   0.8   64.9   55
          Subtotal   4.9   64.6    
  Kumba       Proved   713.4   59.7    
  – Mining operations       Probable   248.5   59.3    
          Total   961.9   59.6    
    Sishen South3   74.0   Proved   123.1   64.2   51
    – Within pit layouts   Probable   91.0   63.9   51
            Subtotal   214.1   64.1    
    Kumba   74.0   Proved   123.1   64.2   51
    – Advanced projects   Probable   91.0   63.9   51
            Total   214.1   64.1    
    Kumba       Proved   836.5   60.3    
    – Total       Probable   339.5   60.6    
            Total   1,175.9   60.4    

Table 1: Kumba’s ore reserves for 2008 and 2007

The tonnages are quoted in metric tonnes and million tonnes is abbreviated as Mt.

Rounding of figures may cause computational discrepancies.

Ore reserve figures reported at 100% irrespective of percentage attributable to Kumba.

Black font denotes % change >10%

Grey font denotes % change = 10%

1. New information incorporated into the geological models (-15.2Mt), a reconciliation between predicted versus actual 31/12/2007 pit boundaries (-4.9Mt), an increase in the material remaining unutilised after scheduling (-14.9Mt) and an increase in the buffer stockpile and floor stock in the mine (+4.6Mt), together with annual production (-45.2Mt) account for the change in ore reserves.

 

      2007   2008 2007  
    Ore reserves       Saleable        
            product       %
          % ore         saleable
      Grade (% Fe) Grade (% Fe) reserve   Grade (% Fe)   Grade (% Fe) product
  Operation/project Tonnes (Mt) Average Cut-off change Tonnes (Mt) Average Tonnes (Mt) Average change
    Sishen Mine1 805.3 59.9 Variable (12) 535.7 65.0 597.9 65.2 (10)
    – DMS and Jig plant 227.2 60.0 Variable 9 187.1 65.1 174.1 65.3 7
      1,032.5 59.6 Variable (7) 722.8 65.0 772.0 65.2 (6)
    Thabazimbi Mine2 7.8 62.9 55 (47) 3.9 64.9 6.6 63.5 (41)
    – Within pit layouts 1.5 62.7 55 (46) 0.8 65.1 1.2 63.1 (37)
      9.3 62.9 55 (47) 4.7 65.0 7.9 63.4 (41)
    Kumba 813.1 59.6   (12) 539.6 65.0 604.5 65.2 (11)
    – Mining operations 228.7 60.1   9 187.8 65.1 175.4 65.2 7
      1,041.8 59.7   (8) 727.5 65.0 779.8 65.2 (7)
    Sishen South3 97.7 64.7 60 26 122.9 64.1 97.5 64.7 26
    – Within pit layouts 78.2 63.6 60 16 90.8 63.9 78.0 63.6 16
      175.9 64.2 60 22 213.6 64.0 175.5 64.2 22
    Kumba 97.7 64.7 60 26 122.9 64.1 97.5 64.7 26
    – Advanced projects 78.2 63.6 60 16 90.8 63.9 78.0 63.6 16
      175.9 64.2 60 22 213.6 64.0 175.5 64.2 22
    Kumba 910.8 60.1   (8) 662.5 64.9 702.0 65.1 (6)
    – Total 306.9 61.0   11 278.6 64.7 253.4 64.7 10
      1,217.7 60.3   (3) 941.1 64.8 955.3 65.5 (1)

 

2. Mining production (-3.5Mt), a reclassification of ore reserves to mineral resources (-0.2Mt) as a result of the closure of one of the four pits (Donkerpoort West) due to geotechnical risk and a combination of geological model adjustments based on new information and pit layout changes (-0.7Mt) account for the decrease in ore reserves.
   
3. The increase in ore reserves is the result of an increase in the forward-looking free-on-rail iron ore price (+24.2Mt), a revision of the geological models to incorporate the new structural model for the deposits (+16.2Mt) and an increase in the run-of-mine material remaining unutilised after scheduling in the life-of-mine plan (-2.2Mt).

 

                2008
                         
                         
                         
                    Grade (% Fe)   Grade (% Fe)
    Operation/project       Reserve category   Tonnes (Mt)   Average   Cut-off
    Sishen Mine   58.2   Measured   44.8   59.5   40
    – mineral resources   Indicated   14.5   57.5   40
       within practical   Inferred (outside LoM)   3.5   54.3   40
       pit layouts   Inferred (considered for LoM)   4.1   61.8   40
            Subtotal   67.0   59.0   40
    Sishen Mine   58.2   Measured   713.9   54.6   40
    – mineral resources   Indicated   701.0   57.4   40
       outside pits   Inferred (outside LoM)   146.6   59.4   40
            Subtotal   1,561.5   56.3   40
        58.2   Measured   758.7   54.9   40
    Sishen Mine1   Indicated   715.5   57.4   40
    – total mineral resources   Inferred (outside LoM)   150.2   59.2   40
        Inferred (considered for LoM)   4.1   61.8   40
            Total   1,628.5   56.4   40
    Thabazimbi Mine   74.0   Measured   0.7   61.0   55
    – mineral resources   Indicated   0.0   61.8   55
       within practical   Inferred (outside LoM)   0.0   58.4   55
       pit layouts   Inferred (considered for LoM)   0.3   61.8   55
            Subtotal   1.0   61.2   55
    Thabazimbi Mine   74.0   Measured   18.0   62.4   55
    – mineral resources   Indicated   4.8   63.4   55
       outside pits   Inferred (outside LoM)   2.6   63.5   55
            Subtotal   25.5   62.7   55
        74.0   Measured   18.7   62.3   55
    Thabazimbi Mine2   Indicated   4.9   63.   55
    – total mineral resources   Inferred (outside LoM)   2.6   63.4   55
        Inferred (considered for LoM)   0.3   61.8   55
            Total   26.5   62.8   55
            Measured   777.4   55.1    
    Kumba       Indicated   720.3   57.5    
    – total mineral resources       Inferred (outside LoM)   152.8   59.3    
            Inferred (considered for LoM)   4.4   61.8    
            Grand Total   1,654.9   56.5    

Table 2: Kumba’s mineral resources in addition to ore reserves for 2008 and 2007 (continued)

                2007    
                             
                             
                             
            Reserve       Grade (% Fe)   Grade (% Fe)   %
    Operation/project       category   Tonnes (Mt)   Average   Cut-off   change
    Sishen Mine   58.2   Measured   31.2   60.7   40   44
    – mineral resources   Indicated   23.2   59.7   40   (38)
       within practical   Inferred (outside LoM)   5.1   56.0   40   (30)
       pit layouts   Inferred (considered for LoM)   4.9   62.4   40   (15)
            Subtotal   64.4   60.1   40   4
    Sishen Mine   58.2   Measured   617.8   55.2   40   16
    – mineral resources   Indicated   588.5   58.6   40   19
       outside pits   Inferred (outside LoM)   109.7   61.0   40   34
            Subtotal   1,316.0   57.2   40   19
        58.2   Measured   649.1   55.4   40   17
    Sishen Mine1   Indicated   611.7   58.7   40   17
    – total mineral resources   Inferred (outside LoM)   114.7   60.8   40   31
        Inferred (considered for LoM)   4.9   62.4   40   (15)
            Total   1,380.3   57.3   40   18
    Thabazimbi Mine   74.0   Measured   0.5   62.3   55   48
    – mineral resources   Indicated   0.1   61.6   55   (46)
       within practical   Inferred (outside LoM)   0.0   61.3   55   (55)
       pit layouts   Inferred (considered for LoM)   0.3   61.6   55   (21)
            Subtotal   0.9   62.0   55   12
    Thabazimbi Mine   74.0   Measured   18.1   62.4   55   0
    – mineral resources   Indicated   4.9   63.4   55   (2)
       outside pits   Inferred (outside LoM)   2.7   63.4   55   (3)
            Subtotal   25.7   62.7   55   (1)
        74.0   Measured   18.6   62.4   55   1
    Thabazimbi Mine2   Indicated   5.0   63.4   55   (2)
    – total mineral resources   Inferred (outside LoM)   2.7   63.4   55   (4)
        Inferred (considered for LoM)   0.3   61.6   55   (21)
            Total   26.6   62.6   55   0
            Measured   667.6   56.6       16
    Kumba     Indicated   616.7   58.7       17
    – total mineral resources     Inferred (outside LoM)   117.4   60.8       30
          Inferred (considered for LoM)   5.2   62.4       (15)
            Grand Total   1,406.9   57.4       18

The tonnages are quoted in metric tonnes and million tonnes is abbreviated as Mt.

Rounding of figures may cause computational discrepancies.

Mineral resource figures reported at 100% irrespective of percentage attributable to Kumba.

Black font denotes % change > 10%

Grey font denotes % change = 10%

1. In-fill drilling and the subsequent adjustment of the geological models is the main contributor to this net increase in mineral resources.
   
2. Although not evident in the figures, a 0.2Mt increase in the mineral resources is a reclassification from ore reserves due to the closure of the Donkerpoort West pit late in 2008.


                2008
                         
                         
                         
            Reserve       Grade (% Fe)   Grade (% Fe)
    Operation/project       category   Tonnes (Mt)   Average   Cut-off
    Sishen South   74.0   Measured   0.9   61.1   50
    – mineral resources   Indicated   0.8   61.6   50
       within practical   Inferred (outside LoM)   0.3   56.1   50
       pit layouts   Inferred (considered for LoM)   35.4   65.5   50
            Subtotal   37.4   65.3   50
    Sishen South   74.0   Measured   48.6   65.1   50
    – mineral resources   Indicated   20.0   65.0   50
       outside pits   Inferred (outside LoM)   47.1   62.5   50
            Subtotal   115.7   64.0   50
        74.0   Measured   49.5   65.0   50
    Sishen South3   Indicated   20.8   64.9   50
    – total mineral resources   Inferred (outside LoM)   47.4   62.5   50
        Inferred (considered for LoM)   35.4   65.5   50
            Total   153.2   64.3   50
        74.0   Measured   49.5   65.0   50
    Kumba   Indicated   20.8   64.9   50
    – total mineral resources   Inferred (outside LoM)   47.4   62.5   50
        Inferred (considered for LoM)   35.4   65.5   50
            Grand Total   153.2   64.3   50
    Zandrivierspoort4   37.0   Measured   0.0   0.0   30
    – mineral resources   Indicated   42.5   34.8   30
       outside pits   Inferred (outside LoM)   379.3   35.1   30
            Total   421.9   35.1   30
        37.0   Measured   0.0   0.0   30
    Kumba     Indicated   42.5   34.8   30
    – total mineral resources     Inferred (outside LoM)   379.9   35.1   30
            Grand total   421.9   35.1   30
            Measured   726.9   55.7    
    Kumba     Indicated   783.7   56.4    
    – total mineral resources     Inferred (outside LoM)   579.5   43.7    
          Inferred (considered for LoM)   39.8   65.1    
            Grand total   2,230.0   53.0    

Table 2: Kumba’s mineral resources in addition to ore reserves for 2008 and 2007 (continued)

                2007    
                             
                             
                             
            Reserve       Grade (% Fe)   Grade (% Fe)   %
    Operation/project       category   Tonnes (Mt)   Average   Cut-off   change
    Sishen South   74.0   Measured   0.0   0.0       100
    – mineral resources   Indicated   0.0   0.0       100
       within practical   Inferred (outside LoM)   0.0   0.0       100
       pit layouts   Inferred (considered for LoM)   0.0   0.0       100
            Subtotal   0.0   0.0       100
    Sishen South   74.0   Measured   31.3   65.6   50   56
    – mineral resources   Indicated   55.6   64.3   50   (64)
       outside pits   Inferred (outside LoM)   10.1   63.4   50   100
            Subtotal   96.9   64.6   50   19
        74.0   Measured   31.3   65.6   50   58
    Sishen South3   Indicated   55.6   64.3   50   (64)
    – total mineral resources   Inferred (outside LoM)   10.1   63.4   50   100
        Inferred (considered for LoM)   0.0   0.0   50   100
            Total   96.9   64.6   50   58
        74.0   Measured   31.3   65.6   50   58
    Kumba   Indicated   55.6   64.3   50   (64)
    – total mineral resources   Inferred (outside LoM)   10.1   63.4   50   100
        Inferred (considered for LoM)   0.0   0.0   50   100
            Grand Total   96.9   64.6   50   58
    Zandrivierspoort4   37.0   Measured   0.0   0.0   Variable   0
    – mineral resources   Indicated   447.0   34.9   Variable   (90)
       outside pits   Inferred (outside LoM)   0.0   0.0   Variable   100
            Total   447.0   34.9   Variable   (6)
        37.0   Measured   0.0   0.0   Variable   0
    Kumba     Indicated   447.0   34.9   Variable   (90)
    – total mineral resources     Inferred (outside LoM)   0.0   0.0   Variable   100
            Grand Total   447.0   34.9   Variable   (6)
    Kumba       Measured   698.9   56.1       18
    – total mineral resources     Indicated   1,119.3   49.5       (30)
          Inferred (outside LoM)   127.5   61.0       100
          Inferred (considered for LoM)   5.2   62.4       100
            Grand Total   1,950.9   52.6       14

The tonnages are quoted in metric tonnes and million tonnes is abbreviated as Mt.

Rounding of figures may cause computational discrepancies.

Mineral resources figures reported at 100% irrespective of percentage attributable to Kumba.

Black font denotes % change > 10%

Grey font denotes % change ≤ 10%

3. A combination of additional drilling information, increased optimistic pit layouts and revised classification procedures account for the change in mineral resources.
   
4. Revised geological models accommodating the new structural model for the deposit and improved reclassification procedures account for the mineral resource changes.

 
 
 
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