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Kumba Iron Ore Limited Production And Sales Report For The Quarter Ended 31 December 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
ISN: ZAE000085346
KUMBA IRON ORE LIMITED PRODUCTION AND SALES REPORT FOR THE QUARTER ENDED 31
DECEMBER 2012
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 31
December 2012. Throughout this report, production and sales volumes referred to are 100% of Sishen Iron
Ore Company (Pty) Limited (SIOC), and attributable to both shareholders of Kumba as well as the non-
controlling interests in SIOC.
Overview:
- An exceptional performance from Kolomela mine, with 2.8 Mt (million metric tonnes) produced during the
quarter.
- Total production of 9.0 Mt represented decreases of 19% year on year and 28% quarter on quarter mainly
due to the impact of an illegal strike at Sishen mine during the quarter.
- Total export sales volumes were 9.0 Mt for the quarter, a decrease of 6% year on year and 10% quarter on
quarter.
Production summary
Quarter % Quarter
ended change ended % change
‘000 tonnes Dec Q12 Dec Q12
Dec Dec Sep
vs vs
2012 2011 2012
Dec Q11 Sep Q12
Total 9,013 11,160 (19%) 12,497 (28%)
- Sishen mine 6,038 9,802 (38%) 9,756 (38%)
DMS plant 3,976 6,091 (35%) 6,610 (40%)
Jig plant 2,062 3,711 (44%) 3,146 (34%)
- Kolomela mine 2,793 1,167 139% 2,500 12%
- Thabazimbi mine 182 191 (5%) 241 (24%)
Sales summary
Quarter Quarter
ended % change ended % change
‘000 tonnes Dec Q12 Dec Q12
Dec Dec Sep
vs vs
2012 2011 2012
Dec Q11 Sep Q12
Total 9,813 10,842 (9%) 11,122 (12%)
- Export sales 8,980 9,600 (6%) 9,959 (10%)
- Domestic sales 833 1,242 (33%) 1,163 (28%)
Sishen mine 581 1,211 (52%) 854 (32%)
Thabazimbi mine 252 31 713% 309 (18%)
Sishen mine’s production decreased by 38% year on year and quarter on quarter to 6.0 Mt, owing principally
to the impact of an illegal strike during the fourth quarter, and low attendance in the mining section
subsequent to the strike action. As at 31 December 2012, around 5 Mt of production was lost at Sishen mine
as a result of the prolonged impact on the production ramp up following the illegal strike. Production rates
continue to improve.
The faster than planned ramp up of Kolomela mine contributed to offsetting the negative impact on
production at Sishen mine. Kolomela mine exceeded monthly design capacity since July 2012 and reached
record levels in the fourth quarter. The mine, which produced 2.8 Mt for the quarter, is on track to produce at
design capacity of 9 Mt per annum in 2013.
Production at Thabazimbi mine decreased by 5% year on year and by 24% quarter on quarter to 0.2 Mt,
mainly due to pit complexities as the mine nears the end of its life.
Total export sales volumes decreased by 6% year on year and by 10% quarter on quarter to 9.0 Mt,
impacted by the illegal strike at Sishen mine, but partially supplemented by production from Kolomela mine
and sales from finished product stockpiles. Destocking by steel mills during the beginning of the quarter saw
a decline in the demand for seaborne iron ore and consequently weaker index iron ore prices. The market
has since recovered with steel mills returning to the market, which is reflected in the increase in index iron
ore prices.
Domestic sales volumes decreased by 33% year on year and by 28% quarter on quarter to 0.8 Mt due to
reduced off-take by ArcelorMittal South Africa Limited.
Total finished product stockpile levels amounted to 3.7 Mt as at 31 December 2012.
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
25 January 2013
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 is on track to produce at 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.
www.angloamericankumba.com
Anglo American plc 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
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