Independent assurance report to the Directors of Kumba Resources on the sustainability sections of the Annual Report for 2004

INTRODUCTION
We have performed our assurance engagement of Kumba Resources’ sustainability sections of the Annual Report (the Report) set out in the 2004 Annual Report, with respect to the following areas:

• Selected 2004 sustainability performance indicators at selected sites for the 18-month period from 1 July 2003 to 31 December 2004
  
• Whether the Report complies with the ‘in accordance with’ requirements of the 2002 Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (the Guidelines).

RESPONSIBILITIES OF DIRECTORS
The Directors of Kumba Resources are responsible for the preparation and presentation of the Report for 2004 and the information and assessments contained within it; for determining the company and the group’s objectives in respect of sustainability performance and development of appropriate sustainability indicators. This responsibility includes designing, implementing and maintaining appropriate performance management and internal control systems to record, monitor and improve the accuracy, completeness and reliability of financial, operational, safety, health, environmental and social management information from which the reported information is derived.

RESPONSIBILITY OF THE ASSURANCE PROVIDER
Our responsibility is to express our conclusions based on our independent assurance engagement, performed in accordance with the International Standard on Assurance Engagements 3000 (Revised): Assurance engagements other than audits or reviews of historical financial information issued by the International Auditing and Assurance Standards Board. These standards require us to comply with ethical requirements and to plan and perform the assurance engagement to obtain reasonable or limited assurance expressed below, regarding the subject matter of the engagement. This engagement does not constitute an audit or review performed in accordance with International Standards on Auditing or International Standards on Review Engagements and consequently an audit or review opinion is not expressed. Any reference to the term “audit” contained elsewhere in the body of the Report does not relate to the assurance engagement performed by us.

• The selected 2004 sustainability performance indicators at the selected site, together with the associated statements
  
• The Report’s compliance with the “in accordance with” requirements of the (GRI) Guidelines.

We believe that the evidence that we have obtained is sufficient and appropriate to provide a basis for our conclusions, expressed below, for each of the areas that were the subject of our assurance engagement.

The subject matter, criteria and limitations for each aspect of the assurance engagement, the work performed and conclusions are detailed separately below.

SELECTED 2004 SUSTAINABILITY PERFORMANCE INDICATORS
The sustainability performance indicators selected by Kumba, in conjunction with KPMG, to be the subject of the assurance engagement were determined by considering Kumba’s key sustainability risks, identifying those sustainability indicators most relevant to management and stakeholder decision-making processes, and our experience of the associated sustainability reporting systems and processes. These indicators are collectively referred to as the “selected 2004 sustainability performance indicators”.

• The 2004 sustainability performance indicator selected for purposes of expressing reasonable assurance was: total fatalities.
  
• The 2004 sustainability performance indicators selected for purposes of expressing limited assurance were: lost-day injury frequency rate (LDIFR); total new cases of occupational disease (“suspected”); water used for primary activities; total electricity consumed; total diesel consumed; and total value of HDSA procurement.

There are no generally accepted standards for reporting sustainability performance information. Kumba has developed its own set of Safety, Health and Environment (SHE) Reporting Guidelines for reporting sustainability performance indicators. The reliability of sustainability performance indicators is subject to inherent limitations given their nature and methods for determining, calculating or estimating such data. No assurance is expressed in relation to the remaining sustainability performance indicators not covered by our work performed, or at sites not visited during our assurance engagement.

In addition to the internally developed Kumba SHE Reporting Guidelines, the GRI Guidelines relating to accuracy and consistency of information were used as the criteria for assessing the selected sustainability performance indicators.

Our work performed with respect to the selected 2004 sustainability performance indicators consisted of:

• Conducting three site visits (Sishen mine, Grootegeluk mine and Zincor refinery) to review the selected 2004 sustainability performance indicator management systems and the associated reliability of the selected 2004 sustainability performance indicators. These three sites are collectively referred to as “the selected sites”
  
• Assessing the systems and processes the selected sites have in place to meet the requirements of Kumba’s SHE Reporting Guidelines to generate, aggregate and report the selected 2004 sustainability performance indicators at the selected sites
  
• Conducting interviews with management at head office to further investigate the accuracy and consistency of the sustainability performance data, including systems and controls

• Reviewing the consistency between the selected 2004 sustainability performance indicators and associated statements in the Report, in light of the findings from the site visits and the analytical review.
  

We believe that our work performed provides an appropriate basis for our conclusion.

In our opinion, except for the limitations indicated above, and based on our work described above, total fatalities for the 18-month period ending 31 December 2004 at the three sites reviewed, is fairly stated based on Kumba’s SHE Reporting Guidelines.

We draw attention to the Safety, Health and Environment report and social summary (respectively) of the Report regarding material inaccuracies affecting the reporting of LDIFR and HDSA Procurement information, arising from incorrect interpretations of definitions applied at the selected sites.

Except for the limitations indicated above, and based on our work described above, and subject to the effect of any changes that might have been necessary to the LDIFR and HDSA Procurement information arising from the matter reported in the preceding paragraph, nothing has come to our attention that causes us to believe that the information included in the Report regarding the following performance indicators: total new cases of occupational disease (“suspected”); water used for primary activities; total electricity consumed; and total diesel consumed for the 18-month period ending 31 December 2004 at the selected sites is materially misstated based on Kumba sustainability internal reporting guidance.

COMPLIANCE WITH THE 2002 GRI GUIDELINES
Our assurance engagement was to determine whether the Report complies with the “in accordance with” requirements of the 2002 GRI Guidelines.

Our work performed consisted of:

• Conducting a review of the Report
  
• Considering whether the Report has met the requirements for stating that it is “in accordance with” the 2002 GRI Guidelines, namely that:
  – Kumba adequately reports on the 44 numbered elements in
     Sections 1 to 3 of Part C of the GRI Guidelines
  – The Report includes a GRI Content Index
  – A response has been given to each core indicator in Section 5 of
     Part C of the GRI Guidelines
  – The Report is consistent with the principles in Part B of the GRI Guidelines
  – The Report includes a GRI “in accordance with” statement signed by
     either the board or CEO.

We believe that our assurance engagement provides an appropriate basis for our conclusion.

In our opinion, based on the work performed, the Report demonstrates progress toward compliance with the ‘in accordance with’ requirements of the 2002 GRI Guidelines, but does not fully meet these requirements.

KPMG Services (Pty) Limited
Johannesburg
4 March 2005