Name and Location
Khumani iron-ore mine expansion project, Northern Cape, South Africa.

Client
Assmang, a 50:50 joint venture (JV) between Assore and African Rainbow Minerals (ARM).

Project Description
The Khumani project involved the development of a greenfield iron-ore export mine on the Bruce, King, and Mokaning farms near Kathu, in the Northern Cape.

The first phase of the project involved the development of a ten-million-ton-a-year iron-ore export mine.

The Khumani expansion project entails the expansion of the mine from ten-million tons a year to 16-million tons a year, which will include the development of a new mining area to exploit additional orebodies. To service the new mining area, the primary and secondary crushers will be duplicated, while a new overland conveyor will be constructed.

The existing washing, screening and beneficiation plant will be expanded to allow for the increased capacity.

Storage areas for run-of-mine materials and product will also need to be expanded, as will the primary thickener and paste plant.

A new rail loop, load-out station will be built and direct rail link to the local line will be built.

The six-million-ton expansion, will entail the export of four-million tons and the possible supply of two-million to the domestic market. Assmang has received a commitment from Transnet to extend the current iron-ore export allocation from ten-million tons a year to 14-million tons a year, increasing Assmang's export capacity accordingly. This will dovetail with the iron-ore channel expansion from 47-million tons a year to 58-million tons a year.

Value
Phase 1 and phase 1A expansions to ten-million tons a year cost R4.5-billion.

The estimated total capital expenditure (capex) for the proposed Khumani expansion project is R6.7-billion.

Duration
Phase 1A has been completed and the mine is ramping up to ten-million tons a year.

A feasibility study on the second phase of the project was completed in June 2009. Production ramp-up was expected to begin in January 2012, with full production in the 2013 financial year.

Latest Developments.
The Khumani mine is ramping up ahead of schedule.

The mine is ramping up production and stripping overburden to allow more flexibility for improved optimisation of mining. The iron-ore production volume of 7.7-million tons is a 14% increase from 2012 and the plant is at steady-state production.

The Khumani expansion project is complete and the mine is fully operational at steady state.

The wet high intensity magnetic separation project, which will extract more value from the ore by recovering high-grade fines from the discard stream, is ahead of schedule and will be commissioned in May 2013.

Key Contracts and Suppliers
For the Khumani mine expansion:
Africon (consulting services for detailed earthworks design for King & Parsons); Alliance Cost Management Services (consulting services for quantity surveying (Civils & SMP)); Alstom (signal construction at local siding - Parson); Alstom, Megatron, ABB, Siemens (design, fabricate, supply and MV switchgear for King); ATC (supply and delivery of cable); B & W lnstrumentation (installation of the 22 kV reticulation ring and installation of ID tags for the 22-kV overhead); B&W (supply of and erection of construction power for King & Parsons); Benja Trading (domestic waste bins and removal of waste); Bosworth (manufacture and supply of conveyor pulleys and bearings for King); Brelko (supply of conveyor belt scrapers for King); Bulk Solids Flow (consulting services); Burgess & Burger (fabricate, supply and erect of King infrastructure - SMP package 1); Charles Corbett Photography (photographic services); Concor (civil and earthworks works); Control Lab (civil and earthwork quality surveillance); Cosira lMS (supply and installation tunnel vacuum cleaner - King); Crane Load Tech, Terex, MMS (supply of mobile cranes - King); IDesSoft (supply of instrumentation and electrical design software package - King and Parsons); Desta Power, Alstom, Steelcor, Zest (design, fabricate and supply of distribution transformers for King); IDesta Power, Alstom, Steelcor, Zest (design, fabricate and supply of distribution transformers for Parsons); DRA (engineering, procurement and construction management early works contract C2917); ECE (design, fabricate, supply and erect pressurisation systems for crushers); Eclipse (supply of control-room computer equipment - King); ECMP (design, fabricate, supply and erect compartmentalisation of tails dam - King); Eisen (supply of impact idlers for King); ER Signs & Safety (supply of safety and construction signage); Fabricated Steel (supply and erect temporary mobile construction offices and ablutions - King and Parsons); FLSmidth (design, fabricate and supply of cyclones - Parsons); FPS (fabricate, supply and erection of piping at PE rail crossing - King); FSM (supply and erect permanent prefabricated buildings/offices - King and Parsons); Hatch (consulting services); Humboldt Wedag (Supply lumpy and fines jigs); lnkjet Technology Supplies (fleet vehicle signage); Ivuzi (consulting services); Joest (design, fabricate and supply of screens and vibrating feeders for King and Parsons); KPMG (consulting services for escalation variables); Lilliput (Installation of Lilliput SBC 6000 - King); M&J Engineering (design, fabricate and supply of WEBA chutes for King); Malvern (design, fabricate and supply of conveyor belt magnets - King); Matador (supply of conveyor belting for King); Matthee Furniture Removals (transportation of goods); Metso (supply of secondary and tertiary crushers [long-lead items] - King & Parsona, supply of centrifugal, spillage and clean water pumps - King & Parsons, and supply of primary crusher [long-lead items]); Moody International (consulting services); Morris Materials (design, fabricate and supply of EOT cranes for King); Office Furniture Suppliers (supply of construction office furniture for King and Parsons); Osborn (design, fabricate and supply of apron feeders for King); Qfinsoft (consulting services); Rufco (fabricate, supply and erect King overland conveyors - SMP package 213); Saco Systems (supply and erect access control/time and attendance - King, Parsons and local siding); Sandvik (design, fabricate, supply and erect run-of-mine stackers and reclaimers - Parsons); Scaw Metals Eclipse East Foundry (supply of manganese liners - King and Parsons); Sectional Poles (design, fabricate, supply and erect high-mast lighting - King & Parsons); Siemens (supply of conveyor drives for King); Smart Words Editing Services (editing of the KEP feasibility); SMEI (fabricate, supply and erect King structures and conveyors - SMP package 2A); Snowden Mining (mine planning services); SRK Consulting Engineers (consulting services for geotechnical drilling at King and Parsons); Sunglide 28 (design, supply and install construction water - King & Parsons); Swift Flite (charter flights to Sishen); Vivo-Tech Engineering (consulting services); Vuleka (consulting services); WEC (supply and erect sewage plant - King and Parsons); Westech (design, fabricate, supply and erect primary thickener mechanism and rails - King and Parsons); Wilichem (consulting services).

For the Khumani mine:
Africon (detailed earthworks and design for King and Parsons); SRK Consulting Engineers (geotechnical drilling); DRA (engineering, procurement and construction management [EPCM] contractor); Metso (primary, secondary and tertiary crushers); Murray & Roberts Construction, part of the BKM Civils JV with Grinaker-LTA (lead contractor); Voest-Alpine Materials Handling (stackers and reclaimers); Barloworld (mining equipment); Osborn (apron feeders); Polysius (high-pressure roller crushers); Humboldt Wedag (lumpy and fines jigs); Joest (screens and vibrating feeders); Concor Holdings (earthworks and civil contracts ); Rockwell Automation (PLC equipment); Warman Africa (pumps); Zest Electric Motors (LV motors); Shaw Controls (frame agreement); ScanMin (Geoscan online analysers); M&J Engineering (Weba chutes); VAE (rail material supply); R&H Railway Consultants (rail and road consultant); Edison Jehamo Power (overhead lines and construction power); VVB Construction (haul roads); Bateman (rapid-rail load-out station and primary thickener); Matador (steel-cord conveyor belting); Alstom (MW switchgear); ECMP (paste disposal); Sandvik (run-of-mine and product yard conveyors); Life Occupational Health (occupational health services); Ivusi (environmental management programme); Matomo (sample preparation plant); Aberdare Cables (electrical cable); Cosira Tubular JV (subcontractor management plan (SMP) for A & B); Roymec (plant product and waste discard conveyors SMP); Crane Load Tech (mobile cranes - 120 t); Charles Corbett Photography (aerial and surface photography); B&W and Brand Engineering South Africa (electrical and instrumentation installation); Shelela Foods (contractors' camp); Eclipse Networks (computer equipment for JD Edwards Solutions); Shaw Controls (motor control centres); Goodyear (conveyor belting); SA Fence & Gate (security fencing); Fabricated Steel Manufacturers (buildings and prefab infrastructure); Botes & Kennedy Manyano (small works, culverts and crossings); Elan Civils CC (small works and stockpile extension civils); Rufco Engineering (process-plant expansion SMP); Lennings (rail installation), Tanstank (rail refuelling station); Siemens (siding signalling system); VAE (supply of rails and turnouts); Swift Flite (charter flights to and from Sishen); and Bearings International (copper split rings).

On Budget and on Time?
The expansion project was handed over to the mine about one year ahead of schedule and well below budget.

Contact Details for Project Information
ARM corporate development and head of investor relations, Jongisa Klaas, tel +27 11 779 1507 or email jongisa.klaas@arm.co.za.

For the Khumani mine expansion:
Africon, tel +27 12 427 2200 or fax +27 12 427 2010.
Alstom, tel +27 11 871 6600 or fax +27 11 871 6868.
Alstom, Megatron, ABB, Siemens, tel +27 11 820 5111 or fax +27 11 823 9047.
ATC, tel +27 16 430 6136 or fax +27 16 423 6103.
B&W Instrumentation, tel +27 907 1663 or fax +27 11 907 1957.
Benja Trading, tel +27 76 545 5212.
Bosworth, tel +27 11 864 1643 or +27 11 908 5728.
Brand Engineering South Africa, tel +27 21 550 9100, fax +27 21 550 9108 or email info@brandsa.com.
Brelko, tel +27 11 838 2991 or fax +27 836 7124.
Bulk Solids Flow, tel +27 11 979 4770 or fax +27 11 979 4775.
Burgess & Burger, tel +27 11 894 3271 or fax +27 11 894 6227.
Charles Corbett Photography, tel +27 11 704 6876.
Concor Civils, tel +27 11 495 2222 or fax +27 11 495 2226.
Concor Roads, tel +27 11 495 2222 or fax +27 11 495 2496.
Control Lab, tel +27 43 722 5420 or fax +27 43 743 9942.
Cosira IMS, tel +27 11 794 9955 or fax +27 86 665 7879.
Crane Load Tech, Terex, MMS, tel +27 11 21 9181 or fax +27 86 546 8478.
DesSoft, tel +27 12 654 7516 or fax +27 12 654 7520.
Desta Power, Alstom, Steelcor, Zest, tel +27 11 820 5111 or fax +27 11 820 5295.
DRA, tel +27 11 202 8600 or fax +27 11 202 8924.
ECE, tel +27 11 791 2950 or fax +27 11 791 2955.
Eclipse, tel +27 51 410 4660 or fax +27 51 447 3597.
ECMP, tel +27 11 705 1111 or fax +27 11 705 1908.
Eisen, tel +27 11 900 1821 or fax +27 11 300 4213.
ER Signs & Safety, tel +27 11 881 8080 or fax +27 11 811 1068.
Fabricated Steel, tel +27 11 821 5600 or fax +27 11 873 0890.
FLSmidth, tel +27 11 474 8875 or fax +27 11 474 7347.
FPS, tel +27 11 828 4388 or fax +27 11 858 2147.
FMS, tel +27 11 821 5600 or fax +27 11 873 0890.
Hatch, tel +27 11 239 5609 or fax +27 11 239 5795.
Humboldt Wedag, tel +27 11 397 4660 or fax +27 11 397 4411.
Inkjet Technology Supplies, tel +27 86 684 9674 or fax +27 11 452 1911.
Ivuzi, tel +27 11 807 8925.
Joest, tel +27 11 923 9000 or fax +27 11 923 9011.
KPMG, tel +27 11 647 7111 or fax +27 11 647 8000.
Lilliput, tel +27 31 783 4276 or fax +27 31 783 4074.
M&J Engineering, tel +27 11 827 9372 or fax +27 11 827 6132.
Malvern, tel +27 11 873 9010 or fax +27 11 873 9596.
Matador, tel +27 32 946 1210 or fax +27 32 946 1576.
Matthee Furniture Removals, tel +27 53 313 1432 or fax +27 53 313 1761.
McLachlan du Plooy Gauteng, tel +27 12 803 3620 or fax +27 12 803 3634.
Melco Conveyor, tel +27 11 255 1600 or fax +27 825 3592.
Metso, tel +27 11 961 1111 or fax +27 11 397 5960.
Moody International, tel +27 16 422 2870 or fax +27 16 421 2036.
Morris Materials, tel +27 11 748 1000 or fax +27 11 748 1079.
OD Trading, tel +27 82 850 3940.
Office Furniture Supplies, tel =27 41 582 1520 or fax +27 51 586 2367.
Osborn, tel +27 11 820 7600 or fax +27 11 388 1136.
Qfinsoft, tel +27 12 345 1917 or fax +27 12 345 2526.
Rufco, tel +27 53 313 1651 or fax +27 53 313 2081.
Safco Systems, tel +27 11 652 5555 or fax +27 11 805 5507.
Sandvik, tel +27 11 455 5581 or fax+27 11 455 5512.
Scaw Metals Eclipse East Foundry, tel +27 747 5000 or fax +27 422 2706.
Sectional poles, tel +27 12 348 8660 or fax +27 12 348 9195.
Siemens, tel +27 11 571 2000 or fax +27 11 392 2434.
Smart Words Editing Services, tel +27 11 476 1766.
SMEI, tel +27 11 914 4101 or fax +27 11 914 4108.
Snowden Mining, tel +27 618 923 9213 or fax +27 618 932 2576.
SRK Consulting Enegineers, tel +27 11 441 111i or fax +27 11 880 8086.
Sunglide 28, tel +27 53 723 2319 or fax +27 53 723 1733.
Swift Flite, tel +27 11 701 3298 or fax +27 11 701 3529.
Vivi-Tech, tel +27 79 876 1351.
Vuleka, tel +27 11 782 1643 or fax +27 11 782 1645.
WEC, tel +27 11 745 5500 or fax +27 11 464 2977.
Westech, tel +27 11 791 5526 or fax +27 11 791 5524.
Willchem, tel +27 11 462 6052 or fax +27 11 704 4593.

For the Khumani mine:
SRK Consulting Engineers, Adriaan Meintjes, tel +27 11 441 1111
or fax +27 11 880 8086.
DRA, Leon Uys, tel +27 11 202 8600 or fax +27 11 202 8808.
Metso, Roy Hazell, tel +27 11 961 4085 or fax +27 11 961 4033.
Barloworld, Gerhard Voster, cell +27 83 676 1630, fax +27 83 676 1630
or email jliebenb1@barloworld-equipment.com.
Osborn, Stephen Ireland, tel +27 11 820 7600 or fax +27 11 388 1136.
Polysius, Gerhard Sauermann, tel +27 11 236 1176.
Humboldt Wedag, tel +27 11 397 4660.
Joest, Mark Moss, tel +27 11 923 9000, fax +27 11 923 9001.
Concor Holdings, Chris Botha, tel +27 11 495 2136, fax +27 11 495 2301
or email cbotha@concor.co.za.
Warman Africa, Rob Fawcett, tel +27 11 617 0700 or fax +27 11 617 0791.
Zest Electric Motors, Trevor Naudé, tel +27 11 723 6000, fax +27 11 723 6004 or email trevorn@zets.co.za.
Shaw Controls, Bevan Richard, tel +27 680 4534 or fax +27 11 433 3569.
ScanMin, Keith Buttemer, tel +27 11 472 3000 or fax +27 11 472 3012.
M&J Engineering, Mark Baller, tel +27 11 827 9372 or fax +27 11 837 6132.
VAE, Rupert Hill, tel +27 11 928 3700 or fax +27 11 928 3900.
R&H Railway Consultants, tel +27 11 886 6951 or fax +27 11 886 7792.
Edison Jehamo Power, tel +27 11 578 1700 or fax +27 11 974 5586.
VVB Construction, PJ van der Merwe, tel +27 11 310 2253
or fax +27 11 310 2252.
Bateman, Ian McTurk, tel +27 11 201 2399 or fax +27 11 455 4547.
Matador, tel +27 32 946 1210 or fax +27 32 946 1576.
Murray & Roberts/Grinaker-LTA, tel +27 11 923 5121 or fax +27 11 923 5222.
Alstom, Rudi Dreyer, tel +27 11 820 5363 or fax +27 823 9047.
Sandvik, Jan Detlof-Wismer, tel +27 11 455 5581 or fax +27 11 455 5512.
Life Occupational Health, Pippa Jenkin, tel +27 11 449 4999
or fax +27 11 886 0009.
Ivusi, Andrew Johnstone, tel +27 11 807 8925 or fax +27 11 803 5745.
Aberdare Cables, tel +27 11 456 4200 or fax +27 11 609 4739.
Cosira Tubular JV, Tony Trindade, tel +27 11 605 2547 or fax +27 626 2917.
Roymec, Malcolm Royal, tel +27 11 804 5123 or fax +27 11 804 5185.
Crane Load Tech, Freddie Golombick, tel +27 11 626 1337
or fax +27 11 626 1338.
Charles Corbett Photography, Charles Corbett, tel +27 11 465 1665.
B&W, Ken Nel, tel +27 11 907 1663 or fax +27 11 907 1957.
Shelela Foods, John Duthie, cell +27 83 377 9161.
Eclipse Networks, Gerhard Horn, tel +27 82 522 7207
or fax +27 13 656 5183.
Shaw Controls, Bevan Richard, tel +27 11 680 4534 or fax +27 11 433 3569.
Goodyear, Craig Rouhana, tel +27 11 248 9300 or fax +27 11 248 9380.
SA Fence & Gate, Mike Erasmus, tel +27 51 400 7400
or fax +27 51 400 7444.
Fabricated Steel Manufacturers, Thys Kloppers, tel +27 11 821 5600
or fax +27 11 873 0890.
Botes & Kennedy Manyano, Morne van der Merwe, tel +27 21 712 1144
or fax +27 21 712 1580.
Rufco Engineering, Orfeo Ruffini, tel +27 53 313 1651
or fax +27 53 313 2081.
Swift Flite, Nola Kropman, tel +27 11 701 3298 or fax +27 11 701 3529.