Wrap Text
KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited Production Report for the
Quarter Ended 30 September 2009
Kumba Iron Ore Limited
A member of the Anglo American plc group
Incorporated in the Republic of South Africa)
Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
KUMBA IRON ORE LIMITED PRODUCTION REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2009
Kumba Iron Ore Limited (Kumba) today released its production report for the
quarter ended 30 September 2009. Throughout this report, production volumes
refer to 100% attributable to Kumba.
THIRD QUARTER OVERVIEW
- 12% increase in total production year-on-year as production from the Jig plant
continues to ramp up, increasing 22% from the second quarter to 2.9Mt (million
metric tonnes)
- Year to end September export sales volumes of 26.5Mt, an increase of 39%
compared with the year to September 2008
- Export sales in the third quarter second highest ever achieved at 9.4Mt, after
the record 11.1Mt sold during the second quarter of 2009
- Domestic sales of 1.4Mt were stable quarter-on-quarter, but down 39% or 0.9Mt
year-on-year
- Finished product stockpile levels at Sishen Mine, Saldanha and Qingdao ports
have increased from 4.6Mt at 30 June 2009 to 5.0Mt at 30 September 2009
PRODUCTION REPORT
Kumba - production summary
`000 tonnes Quarter % Quarter % change
Ended change ended
Sep Sep Sep Q09 Jun Sep Q09
2009 2008 vs 2009 vs
Sep Q08 Jun Q09
Total 11,330 10,084 12 9,824 15
- Lump 6,839 5,965 15 6,076 13
- Fines 4,491 4,119 9 3,748 20
Kumba - production summary
`000 tonnes Quarter % Quarter % change
Ended change ended
Sep Sep Sep Q09 Jun Sep Q09
2009 2008 vs 2009 vs
Sep Q08 Jun Q09
Total 11,330 10,084 12 9,824 15
- Sishen Mine 10,651 9,394 13 9,339 14
DMS plant 7,755 7,356 6 6,964 11
Jig plant 2,896 1,808 60 2,375 22
Other - 240 - - -
- Thabazimbi 679 690 (2) 485 40
Mine
In the third quarter of 2009 total production increased 12% year-on-year to
11.3Mt, which is 15% or 1.5 Mt higher than production in the second quarter of
2009. Sishen Mine`s production increased by 1.3 Mt from the second quarter of
2009 to 10.7 Mt for the quarter ended 30 September 2009. The 2.9 Mt produced by
the jig plant accounted for 27% of Sishen Mine`s production.
Production from the jig plant increased by 22% or 0.5Mt in the third quarter of
2009 compared with the second quarter. Production of 995 902t was achieved in
September equating to annualised production of 12Mtpa. The ramp up of the jig
plant to an annualised rate of 13Mtpa during the fourth quarter continues as
planned.
Finished product stockpiles at Sishen Mine, Saldanha and Qingdao ports increased
to 5.0Mt as at 30 September 2009 which is an increase of 0.4Mt from the 4.6Mt
stockpiled at 30 June 2009, due primarily to Transnet`s maintenance of the Iron
Ore Export Channel rail during the quarter. Stockpiles are currently 2.1Mt in
excess of base operating levels.
Production from Thabazimbi Mine increased by 40% compared with production in the
second quarter of the year, to 0.7Mt, with sales of 0.5Mt in line with demand
from ArcelorMittal SA. The decrease in domestic demand continues to result in a
build up of finished product stock at Thabazimbi Mine - with stockpiles growing
0.2Mt during the quarter to 0.8Mt as at 30 September 2009.
During the third quarter, Kumba continued to successfully redirect lost export
contract volumes from Europe and Japan to China. As demand from European,
Japanese and Korean customers increased during the third quarter compared to the
first half of 2009, export sales volumes into China decreased from 87% in the
second quarter to 69% of total export sales volumes during the third quarter of
2009.
Kumba remains on track with its targeted 10% annual increase in production
volumes. The European, Japanese and Korean markets have started to recover and
an improvement in iron ore demand has been seen during the third quarter due to
some production increases and restocking by the steel industry. Although the
sustainability of China`s increasing appetite for imported iron ore is
uncertain, Kumba remains cautiously optimistic on its continued ability to
redirect its export sales volumes into China where necessary. Domestic sales
volumes to ArcelorMittal SA are likely to be lower in 2009 than the 8.2Mt sold
in 2008.
Kumba has settled prices with its European, Japanese and Korean customers. In
China, it continues to sell at provisional prices to its contract customers,
while new customers pay appropriately adjusted index prices.
For further information contact:
Anna Poulter on (011) 638 2079
22 October 2009
Centurion
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 22/10/2009 08:00:18 Supplied by www.sharenet.co.za
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