BOSWA BA RONA - Anglo American

1 BOSWA ba Rona means Our Legacy in Tswana. Kumba Iron Ore making a difference leaving a positive legacy for the announcement of the final Envision Phase 1 payout were from the left Lesiba Seshoka (media spokesperson of NUM), Chris Griffith (Chief Executive of Kumba Iron Ore) and Louis Pretorius (National Organiser of Mining, Solidarity).KUMBA IRON OREBOSWA BA RONAMAKING A DIFFERENCE IN OUR COMMUNITIESISSUE 1 | 2012 CONTENTSAt Kumba Iron Ore our mines are producing much more than iron they are sources of hope and opportunity for our host communities and many others who have a stake in our Kumba we want to see the results of our mining success achieve tangible and lasting impacts throughout the communities in which we operate.

2 Mining sustainably and for the benefit of all South Africans is our goal, and this drives our social and community development plans. These plans aim to address issues such as rural poverty, skills and enterprise development, education and healthcare which are so important for the sustainable future all South Africans want and does Kumba contribute to South African society?We create jobs and ensure people of a sustainable income for themselves and their families. This we do in some of the poorest areas of our country where unemployment is employed 11,898 people at the end of December 2011, comprising 6,303 full-time employees and 5,595 full-time contractors.

3 A further 4,131 project contractors were also employed on our construction projects. Direct payments to employees (excluding contractors) amounted to R171 million, with a further billion paid out from Envision, our hugely successful employee share scheme. We completed the year without a fatality, and had an excellent safety performance overall, with a 33% decrease in our accident rate. Of this we are particularly proud as we believe our employees should go home safely to their families at the end of each working spent million ( of the total wage bill) on training and development, with each employee receiving an average of approximately 80 hours of training during the year.

4 A total of 953 employees, community members and others participated in our learnership, bursary, professionals-in-training and adult basic education and training contributed R191 million to expenditure on social and community development, largely in the communities surrounding our operations, including contributions to Anglo American plc s Zimele fund. (1% of the company s net profit after tax (NPAT) from 2010.)But these numbers do not tell the real story of Kumba. To discover that, you need to dig a little deeper and this we have done in the pages that follow, providing some insight for our stakeholders into our GRIFFITHC hief Executive.

5 Kumba Iron OreA FEW WORDS FROM THE FRONTRUNNERSBEE AND PREFERENTIAL PROCUREMENTAGRICULTURE AND ENVIRONMENTEDUCATIONBUSINESS DEVELOPMENT AND SUPPORT CENTRES AND Anglo American ZIMELE HUBHEALTHKOLOMELA MINETHABAZIMBI SPOTLIGHTWELFAREINFRASTRUCTUREENVISIONAW ARDSKIDS CORNER WORKING TOGETHER TO CREATE A LEGACY OF HOPEISSUE 1 | 2012 | MAKING A DIFFERENCE IN OUR COMMUNITIES2A FEW WORDS FROM THE FRONTRUNNERSKOLOMELASISHENTHABAZIMBIAART VAN DEN BRINK GM: Kolomela MineANDREW LOOTS GM: Sishen MineCORNELIA HOLTZHAUSEN GM: Thabazimbi MineWith seven years experience in the position of General Manager of a mine, and four years experience as the Kolomela Mine General Manager, I am more than pleased with the impact that the mining industry has had on the development of the Northern Cape.

6 I entered a career in the mining industry because it offered a great opportunity to receive a tertiary education and be part of an industry that can make a big contribution to the economy of the country. I am certain that with the cooperation of all stakeholders, we can make an even bigger difference to the community. Kolomela Mine employs approximately 800 Kumba employees, and utilizes 700 contactors and 400 construction workers, and we are committed to achieving our goal of zero harm for safety, health and environment because we have the commitment and support of all employees and contractors.

7 My hope for 2012 is that the presence of the Kolomela Mine will bring many new businesses to Postmasburg and create many new jobs that can help the community to earn a good living and provide the younger generation with a good education. Enthusiasm is very important in the management of a young mine. Being a fairly young workforce with limited Kumba years of service (when compared to the other mines), our people have realized that Kolomela s and Kumba s performance can be greatly influenced by them and if they do well, the company can do well.

8 I am positive that the levels of education can and will improve over the next five years due to the eagerness of the younger generation to further themselves. The opportunities that will become available due to partnerships between corporations, communities and the education departments will also enhance the quality of education that our next generation receives. My advice to the learners of today is to go for it! . The mining industry is evolving fast and new opportunities will always be there. Furthermore, the younger generation displays responsibility towards their communities and families.

9 This is evident in the manner in which the Kolomela workforce tackles education and social challenges like HIV/AIDS. Their attitudes are encouraging, as the younger group of our employees feels strongly about it. These young people are the future of the business and with the right attitude they can make a lasting difference in future. I believe that all the community members have the willpower to make a success of their social circumstances. There is a need within the communities and within Kolomela Mine to better the overall conditions in the communities.

10 I believe that with the collaboration of all stakeholders, Kolomela can provide the Tsantsabane community with sustainable systems and processed to achieve their development goals for a more secure my sixteen months as General Manager of Thabazimbi Mine, I feel honored to be part of such a dynamic partnership with the surrounding communities in the area. Thabazimbi Mine employs 831 permanent staff and 864 contractors. Our people are our most important asset, and we work hard to ensure that they are looked largest swell of pride has been to be involved in the Envision Scheme.