Iron-ore export lower as Kumba production falls 12%

JOHANNESBURG (miningweekly.com) – The export of iron-ore by JSE-listed Kumba fell 10% in the three months to December 31 on the back of 12% lower production in the same period.

The Anglo American group company said on Thursday that export sales volumes fell to 10.5-million tonnes and production to 10.9-million tonnes - 10% lower than Q4 2014 but 7% higher than the previous quarter.

As expected, full-year production totalled 44.9-million tonnes.

The Sishen iron-ore mine produced a 17% lower 7.7-million tonnes, impacted by a lack of sufficient exposed high quality ore for blending as the mine transitions to a lower cost pit configuration.

Full-year Sishen production was in line with the revised targeted production of 31-million tonnes as indicated in the third-quarter production statement.

Waste mined for the quarter was 10% down at 54.3-million tonnes, in line with the revised full-year guidance of 230-million tonnes.

At the nearby Kolomela mine, efficiencies and plant throughput continued to improve, partially offset by planned plant maintenance during October, resulting in production of 2.9-million tonnes for the three months to December 31, an increase of 5%, with waste mining volumes remaining at 9.7-million tonnes.

Finished product stocks were 4.7-million tonnes, compared with 6.5-million tonnes in the final quarter of 2014 as stocks were drawn down to optimal levels.

Extension of Cautionary

In the same statement, Kumba extended its cautionary relating to its Sishen mining right to include the residual 21.4% undivided share, which relates to a Department of Mineral Resources' notice that it had consented to an amendment of Sishen Iron Ore Company.

Kumba advised shareholders to continue to exercise caution when dealing in its shares until a further announcement is made.