Media releases

10 December 2007

Richards Bay Terminal slows down Transnet

The article that appears in today’s business report entitled “ Richards Bay terminal slows down Transnet” refers.

As part of the Phase V construction work, an upgrade of the signalling system on RBCT’s rail tracks was planned and TFR was duly informed of this planned work beforehand. This upgrade involved the switching off of electronic signalling system to using the manual signalling system. It was anticipated that this would cause delays in offloading of trains but with very minimal impact on train handling.

Richards Bay Coal Terminal wishes to put the following facts on record:

• On 4 December 2007, at 03h55, Transnet Freight Rail made an unauthorized move on RBCT rail line after they had been informed of the planned upgrade on the line. This unauthorized move resulted in a derailment from TFR’s side, of which TFR has said an investigation is being conducted but no feedback has been given to RBCT as yet.

• On 4 December at 15h55, 2 RBCT locomotives derailed and were put back on the lines on the same day. There was no major impact on RBCT’s train handling.

• On 5 December a 4- hour stoppage for ALSTOM to carry out urgent work on the rail tracks.

As a result of the 2 incidents mentioned above, TFR informed RBCT that 24 trains have been cancelled against RBCT. It is important to note that on average, RBCT receives and offloads 27 trains per day. Below is the number of trains received by RBCT between 4 —7 December 2007.

• 4 /12/2007 at 6am to 5/12/2007 at 05:59am — 25 trains were offloaded
• 5/12/2007 at 6am to 6/12/2007 at 05:59am — 17 trains were offloaded

• 6/12/2007 at 6am to 7/12/2007 at 05:59am — 27 trains were offloaded

Based on the information above, it is therefore not possible that 24 trains could have been cancelled as a result of these 2 events. A reasonable explanation would be for at least 8 or 10 trains to have been cancelled against RBCT. It is of concern to us for TFR to declare that a few hours stoppage resulted in the loss of 24 hours worth of business. The matter is being taken up between RBCT and TFR senior management.

TFR is an important partner in the coal export chain and therefore accountability and taking responsibility of one’s action is crucial. Where there have been operational challenges from TFR’s side, ownership and corrective action should be taken in an effort to serve the SA coal export industry.

It is also important to note that TFR is intending to cease train movements to RBCT as from 27 to 31 December, despite RBCT shareholders disapproval of this decision.

December is a busy month for coal exports and RBCT operations will continue as usual.

Planned maintenance

This weeks’ planned maintenance on 2 tipplers (train offloading machines) should not have any major impacts on train handling. The other 2 machines will be fully operational. TFR were informed in writing of this planned maintenance. Normal operation should resume on 12 December 2007.

For further information contact: Zama Luthuli

Cell: 083 399 3111

Zluthuli@rbct.co.za