Kumba Iron Ore - Statement of compliance

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	Statement of compliance
	Role of the board
	Board composition
	Directors’ attendance
	Frequency and attendance of meetings
	Board evaluation
	Induction and training
	Company secretary
	Committees of the board
	Risk Management
	Statement of internal control

Corporate governance

In Kumba, risk management is a well-defined, logical and methodical process. Instilling a risk-conscious culture throughout our group is a continual focus as we strive to reach our goal of maximising opportunities and minimising exposures to risk.

Statement of compliance

Kumba is committed to the highest standards of corporate governance. In 2007, the company complied fully with the provisions of the Companies Act of 1973 and materially with the Code of Corporate Practices and Conduct (the code) recommended by the King II report on Corporate Governance. The area of non-compliance with the code was the independence of the chairman of the board. Lazarus Zim was previously chief executive officer of Anglo American South Africa. He resigned from that role on 30 April 2006. The board is satisfied that he acts independently in his role as chairman of the Kumba board.

The board has also considered the provisions of the Corporate Laws Amendment Act which was passed into law on 14 December 2007. Subsequent to the promulgation of this act, the chairman of the audit and risk committee, Gert Gouws (employed by the Industrial Development Corporation, a significant shareholder in Kumba) resigned his position on this committee. His replacement is being sought by the human resources, remuneration and nominations committee (Remco). Gert remains a non-executive member of the Kumba board.