Sustainable development

Report of the independent assurers

Introduction

We have been engaged by Kumba Iron Ore Limited to conduct an assurance engagement on selected key performance indicators (KPIs) reported in Kumba Iron Ore Limited’s sustainable development section of the annual report 2007, for the purposes of expressing a statement of independent assurance, for the year ended 31 December 2007. This assurance report is made solely to Kumba Iron Ore Limited in accordance with the terms of our engagement.

The following KPIs were selected for an expression of reasonable assurance:

• Total CO₂ emissions from electricity purchased, from fossil fuels purchased, and from processes
• Total energy used
• Total work-related fatal injuries
• Total amount of corporate social investment (CSI) spend

The following KPIs were selected for an expression of limited assurance:

• Water used for primary activities
• Total number of level 2 & 3 environmental incidents
• Lost-time injury frequency rate (LTIFR)
• New cases of noise induced hearing loss (NIHL)
• New cases of occupational diseases (NCOD)
• HIV prevalence rate
• Number of employees participating in voluntary counselling and testing (VCT)
• Number of employees participating in antiretroviral treatment (ART)
• Number of HIV positive employees enrolled in HIV disease management programmes
• Implementation of the reporting requirements of the broad-based socio-economic empowerment charter for the mining sector (the “mining charter” and the “scorecard”)
• GRI application level.

The evidence gathering procedures for limited assurance are more restricted than for reasonable assurance and therefore less assurance is obtained with limited assurance than for reasonable assurance.

Directors’ responsibility

Kumba Iron Ore Limited’s directors are responsible for the preparation and presentation of the identified selected KPIs in accordance with internal corporate policies and procedures, and the Global Reporting Initiative’s (GRI) new generation (G3) guidelines.

Auditors’ responsibility

Our responsibility is to express to the directors an opinion on the selected KPIs contained in the sustainable development Section of the annual report, for the year ended 31 December 2007, based on our assurance engagement.

Work performed

We conducted our engagement in accordance with the International Standards for Assurance Engagements 3000, “Assurance Engagements other than audits or reviews of historical financial information” (ISAE 3000) issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain either reasonable or limited assurance on the selected KPIs as per our terms of engagement.

Except for the self declaration of GRI application level, Kumba Iron Ore Limited’s internal corporate policies and procedures, as available from Kumba Iron Ore Limited on request, were used as criteria to evaluate the selected KPIs. In terms of evaluating the ‘C+’ application level, the specific application level criteria as stipulated by the GRI’s new generation (G3) guidelines have been used.

Our work consisted of:

• obtaining an understanding of the systems used to generate, aggregate and report data at the Sishen and Thabazimbi operations and at the corporate head office
• conducting interviews with management at the sampled operations
• applying the assurance criteria in evaluating the data generation and reporting processes
• performing a controls walkthrough for limited assurance, and further key controls testing for reasonable assurance
• testing the accuracy of data reported on a sample basis for reasonable assurance.

Inherent limitations

Non-financial data is subject to more inherent limitations than financial data, given both the nature and the methods used for determining, calculating, sampling or estimating such data. We have not carried out any work on data reported for prior reporting periods, nor in respect of future projections and targets. We have not conducted any work outside of the agreed scope and therefore restrict our opinion to the agreed KPIs.

Conclusion - Reasonable Assurance

On the basis of our reasonable assurance procedures, the KPIs selected for reasonable assurance for the year ended 31 December 2007, have been compiled in accordance with corporate policies and procedures and are free from material misstatements.

Conclusion - Reasonable Assurance

On the basis of our reasonable assurance procedures, the KPIs selected for reasonable assurance for the year ended 31 December 2007, have been compiled in accordance with corporate policies and procedures and are free from material misstatements.

PricewaterhouseCoopers Inc.
Carmen le Grange
Director
Registered Auditor
Johannesburg
04 April 2008