Wrap Text
KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and sales
report for the quarter ended 31 December 2011
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 AND SALES REPORT FOR THE QUARTER ENDED 31
DECEMBER 2011
Kumba Iron Ore Limited ("Kumba") today released its production and sales report
for the quarter ended 31 December 2011. Throughout this report, production and
sales volumes referred to are 100%, attributable to Kumba as well as non-
controlling interests in Sishen Iron Ore Company (Pty) Limited.
Overview:
- Kolomela mine commissioned five months ahead of schedule, with first
shipment from the Port of Saldanha in December 2011.
- Total production increased by 4% year on year to 11.2Mt as a result of
first production from Kolomela mine, offset by a decline in production from
Sishen mine due to feedstock constraints at the mine`s dense media
separation ("DMS") plant.
- Total export sales volume of 9.6Mt for the quarter increased by 7% year on
year with 37.1Mt sold during 2011.
- Domestic sales of 1.2Mt declined by 28% year on year due to reduced off
take from ArcelorMittal South Africa Limited ("AMSA").
Production summary
`000 tonnes Quarter % change Quarter % change
ended ended
Dec Dec Dec Q11 Sep Dec Q11
2011 2010 vs 2011 vs
Dec Q10 Sep Q11
Total 11,160 10,706 4 10,953 2
- Sishen mine 9,802 10,206 (4) 10,450 (6)
DMS plant 6,091 6,833 (11) 6,938 (12)
Jig plant 3,711 3,373 10 3,512 6
- Kolomela 1,167 - 100 299 290
mine
- Thabazimbi 191 500 (62) 204 (6)
mine
Sales summary
`000 tonnes Quarter % change Quarter % change
ended ended
Dec Dec Dec Q11 Sep Dec Q11
2011 2010 vs 2011 vs
Dec Q10 Sep Q11
Total 10,842 10,701 1 10,705 1
- Export sales 9,600 8,978 7 9,167 5
- Domestic 1,242 1,723 (28) 1,538 (19)
sales
Sishen mine 1,211 1,384 (13) 1,336 (9)
Thabazimbi mine 31 339 (91) 202 (85)
Excellent progress was made at Kolomela mine, which was brought into production
five months ahead of schedule. The plant delivered 1.2Mt during the fourth
quarter, bringing total production for 2011 to 1.5Mt, with first ore shipped
from the Port of Saldanha in December 2011. Kolomela mine is ramping up well and
is on track to produce between 4Mt and 5Mt in 2012 before producing at full
design capacity of 9Mtpa in 2013.
Sishen mine`s production decreased by 4% year on year to 9.8Mt and by 6% quarter
on quarter. Production from the mine`s DMS plant was impacted by mining
feedstock constraints. Sishen mine proactively supplemented the production by
temporarily adjusting the jig plant ore quality in order to operate at above
design capacity.
Total export sales volume of 9.6Mt increased by 7% year on year as Sishen mine`s
stock was used to supplement production.
Finished product stockpile levels as at 31 December 2011 was 5.2Mt at Sishen
mine, Kolomela mine, and Saldanha and Qingdao ports, up 0.7Mt from 4.5Mt at 30
September 2011.
South African domestic sales volumes of 1.2Mt declined 0.5Mt year on year due to
reduced off take from AMSA from Thabazimbi mine during the quarter. Production
at Thabazimbi mine of 0.2Mt is in line with planned decrease in production as
the mine nears the end of its life, scheduled for 2016.
For further information, please contact:
Esha Mansingh
Investor Relations
Tel: +27 (0)12 683 7257 / +27 (0) 83 488 9427
Email: esha.mansingh@angloamerican.com
Pretoria
26 January 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Notes to editors:
Kumba, a member of the Anglo American plc group, is a leading value-adding
supplier of high quality iron ore to the global steel industry. Kumba produces
iron ore in South Africa at Sishen mine and its new Kolomela mine in the
Northern Cape Province, and at Thabazimbi mine in the Limpopo Province. Kolomela
mine, which was delivered five months ahead of schedule and within budget,
produced approximately 1.5Mt by the end of 2011 and remains on track to produce
between 4Mt and 5Mt while ramping up in 2012, before reaching design capacity of
9Mtpa in 2013.
Kumba exports iron ore to customers in a range of geographical locations around
the globe including China, Japan, Korea and a number of countries in Europe and
the Middle East.
In line with Anglo American`s new reporting practice, Kumba will be reporting
its sales and production performance on a quarterly basis going forward.
www.angloamericankumba.com
Anglo American is one of the world`s largest mining companies, is headquartered
in the UK and listed on the London and Johannesburg stock exchanges. Anglo
American`s portfolio of mining businesses spans bulk commodities - iron ore and
manganese, metallurgical coal and thermal coal; base metals - copper and nickel;
and precious metals and minerals - in which it is a global leader in both
platinum and diamonds. Anglo American is committed to the highest standards of
safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around its
operations. The company`s mining operations, extensive pipeline of growth
projects and exploration activities span southern Africa, South America,
Australia, North America, Asia and Europe.
www.angloamerican.com
Date: 26/01/2012 09:00:13 Supplied by www.sharenet.co.za
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