* Kumba says tax disputes go back a decade
* Company has said it expects 2016 profits to double
* Shares fall over 7 percent
JOHANNESBURG, Feb 3 South Africa's Kumba Iron
Ore, a unit of Anglo American, will pay 2.5
billion rand ($186 million) to settle a tax dispute with local
authorities, the company said on Friday, sending its share price
over 7 percent lower.
The disputes relate to assessments from 2006 to 2010 "and
the tax treatment of the relevant issues in the years 2011 to
2015," the company said.
"Kumba had already provided for an amount of 1.5 billion
rand in its annual financial statements for the tax years up to
2015, and an additional 1.0 billion rand will be accounted for
in 2016 in respect of this settlement agreement," the company
"The settlement will be paid in full in Q1 2017, with
appropriate adjustments made for current advance payments held
Kumba, which Anglo American has signalled it may sell as it
pivots its focus to platinum, diamonds and copper, said last
month it expected 2016 profits to more than double from a dismal
2015, setting it up to outstrip forecasts when it reports
earnings on Feb 14.
($1 = 13.4080 rand)
(Reporting by Tiisetso Motsoeneng and Ed Stoddard; Editing by