OUTLOOK

Demand for power station coal should remain similar to that experienced in the current reporting period.

The group expects similar levels of steam coal exports in the second half of 2009 albeit at lower international prices. However, such performance remains dependant on the availability of logistical infrastructure.

A significant decline in domestic steam and coking coal prices are anticipated in the second half of 2009 due to contractual pricing arrangements.

Demand for the mineral sands products will continue to be affected by the depressed economic environment combined with the additional downside of a possible strong Australian dollar to the US dollar in the Australian operations.

Zinc markets are expected to remain depressed with downward pressure on prices due to the expected oversupply of metal.

The equity-accounted contribution from SIOC will be impacted by the lower benchmark iron ore prices with effect from
1 April 2009.

Due to the continued lower economic activity and its impact on demand and prices, it is inevitable that earnings for the second half of 2009 will be adversely impacted. The relative strength of the local currency, and its volatility, will also impact on the results for the second half of 2009.

The financial information on which the outlook statement is based has not been reviewed or reported on by the company’s auditors.