Wrap Text
KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and sales
report for the quarter ended 31 March 2012
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
MARCH 2012
Kumba Iron Ore Limited ("Kumba") today released its production and sales
report for the quarter ended 31 March 2012. Throughout this report, production
and sales volumes referred to are 100%, attributable to shareholders of Kumba
as well as the non-controlling interests in Sishen Iron Ore Company (Pty)
Limited.
Overview:
- Total production increased by 15% year on year to 10.1Mt, as the ramp-up of
Kolomela mine continues.
- Total export sales volumes of 10.1Mt increased by 18% year on year.
- Domestic sales of 1.3Mt increased by 6% quarter on quarter but were
substantially lower year on year mainly due to reduced off take from
ArcelorMittal South Africa Limited ("AMSA").
Production summary
`000 tonnes Quarter % Quarter % change
ended change ended
Mar Mar Mar Q12 Dec Mar Q12
2012 2011 vs 2011 vs
Mar Q11 Dec Q11
Total 10,106 8,794 15 11,160 (9)
- Sishen 8,455 8,548 (1) 9,802 (14)
mine
DMS plant 5,777 5,741 1 6,091 (5)
Jig plant 2,678 2,807 (5) 3,711 (28)
- Kolomela 1,513 - - 1,167 30
mine
- Thabazimbi 138 246 (44) 191 (28)
mine
Sales summary
`000 tonnes Quarter % Quarter % change
ended change ended
Mar Mar Mar Q12 Dec Mar Q12
2012 2011 vs 2011 vs
Mar Q11 Dec Q11
Total 11,441 10,383 10 10,842 6
- Export 10,121 8,557 18 9,600 5
sales
- Domestic 1,320 1,826 (28) 1,242 6
sales
Sishen mine 1,021 1,264 (19) 1,211 (16)
Thabazimbi 299 562 (47) 31 865
mine
Following the successful commissioning of Kolomela mine, the mine continues to
ramp-up well with 1.5Mt produced during the quarter, 30% more than the 1.2Mt
produced in Q4 2011. During the quarter, 1.7Mt was railed from Kolomela mine
to the Port of Saldanha. Should the current ramp-up performance be sustained,
the mine should comfortably meet the 4 to 5Mt production target for 2012,
ramping up to 9Mtpa design capacity in 2013.
Sishen mine`s production of 8.5Mt was in line with Q1 2011, however decreased
by 14% compared with Q4 2011. As expected, production was impacted by the
planned increase in waste stripping activity. However, during the first two
months of 2012, the availability of material supplied to the mine`s dense
media separation ("DMS") plant and Jig plant was impacted by wet pit
conditions resulting from heavy rainfall, and poor operator attendance.
Production run rates recovered in March 2012 as the ramp-up in waste mining
continued to improve.
Production at Thabazimbi mine of 0.1Mt is in line with the planned decrease in
production as the mine nears the end of its life, scheduled for 2016, coupled
with mining feedstock and quality constraints experienced during the quarter.
Total export sales volume of 10.1Mt increased by 18% year on year aided by the
ramp-up of Kolomela mine, and further supplemented from finished product
stockpiles at Sishen mine and Qingdao port.
Finished product stockpile levels at Sishen and Kolomela mines, and Saldanha
and Qingdao ports were 4.2Mt as at 31 March 2012, down 1.0Mt from 5.2Mt at 31
December 2011.
Domestic sales volumes of 1.3Mt increased by 6% quarter on quarter but
declined 28% year on year mainly due to reduced off take from AMSA from Sishen
and Thabazimbi mines during the quarter.
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
Centurion
19 April 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Notes to editors:
Kumba Iron Ore Limited, 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. Should the
current ramp-up performance be sustained, the mine should comfortably meet the
4 to 5Mt production target for 2012, ramping up to 9Mtpa design capacity 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.
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: 19/04/2012 08:00:02 Supplied by www.sharenet.co.za
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