Kumba Iron Ore : agrees settlement with SARS

Kumba had already provided for an amount of R1.5 billion in its annual financial statements for the tax years up to 2015, and an additional R1.0 billion will be accounted for in 2016 in respect of this settlement agreement. The settlement will be paid in full in Q1 2017, with appropriate adjustments made for current advance payments held on account.

As a responsible corporate citizen, our policy is to be tax compliant in all jurisdictions in which we operate.

Themba Mkhwanazi, CEO of Kumba, said: 'I am pleased that we have reached this important settlement with SARS, providing clarity for all and enabling us to focus our efforts on ensuring that Kumba continues to operate at the optimal level and furthers its position as a major economic and social contributor to the South African economy.'

Kumba generates substantial value for all its stakeholders and is fully committed to the transformation of the South African mining industry and to the wider societal and economic benefits that the Company brings; for example in 2015 alone, a year during which the iron ore price fell sharply, Kumba contributed R900 million in corporate taxes and mineral royalties, R4.7 billion in salaries and wages, R15.2 billion in local procurement, R6.8 billion of capital reinvested in the business and R174 million in social investment in health, housing, education and small business development.

Centurion
[February] 2017

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