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Kumba Iron Ore Limited production and sales report for the quarter ended 31 December 2013
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
2013
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 31 December 2013. Throughout this report, production and sales volumes
referred to are 100% of Sishen Iron Ore Company Proprietary Limited (“SIOC”), and
attributable to shareholders of Kumba as well as the non-controlling interests in SIOC.
Overview:
- Total production increased by 25% compared to Q4 2012 and by 19% compared to the
previous quarter to 11.3 Mt, as Sishen mine’s production recovered following the impact of
the unprotected strike in Q4 2012, section 54 regulatory safety stoppages in August 2013
and ongoing pit constraints.
- Outstanding performance at Kolomela mine continued with 2.7 Mt produced for the quarter,
although a decrease of 2% compared to Q4 2012 and 2% compared to the previous
quarter.
- Total export sales volumes increased by 6% compared to Q4 2012 and by 1% compared to
the previous quarter to 9.5 Mt.
Unaudited production summary
Quarter % change Quarter % change % change
‘000 tonnes Q4 2013 Q4 2013 FY13
Q4 2013 Q4 2012 vs Q3 2013 vs FY13 FY12 vs
Q4 2012 Q3 2013 FY12
Total 11,286 9,013 25 9,474 19 42, 373 43, 066 (2)
- Sishen mine 8,395 6,038 39 6,429 31 30, 938 33, 697 (8)
DMS plant 5,778 3,976 45 3,880 49 20, 374 23, 083 (12)
Jig plant 2,617 2,062 27 2,549 3 10, 564 10, 614 -
- Kolomela mine 2,740 2,793 (2) 2,806 (2) 10, 809 8, 545 26
- Thabazimbi mine 151 182 (17) 239 (37) 626 824 (24)
Unaudited sales summary
Quarter % change Quarter % change % change
‘000 tonnes Q4 2013 Q4 2013 FY13
Q4 2013 Q4 2012 vs Q3 2013 vs FY13 FY12 vs
Q4 2012 Q3 2013 FY12
Total 10,836 9,813 10 10,734 1 43, 708 44, 340 (1)
- Export sales 9,530 8,980 6 9,422 1 39, 076 39, 657 (1)
- Domestic sales 1,306 833 57 1,312 - 4, 632 4, 683 (1)
Sishen mine 1,118 581 92 1,099 2 3, 927 3, 436 14
Thabazimbi mine 188 252 (25) 213 (12) 705 1, 247 (43)
Sishen mine’s production increased by 39% compared to Q4 2012 and by 31% compared to
the previous quarter to 8.4 Mt as production recovered following the impact of the unprotected
strike in Q4 2012, section 54 regulatory safety stoppages in August 2013 and ongoing pit
constraints. The Sishen pit remains constrained, which impacts availability of material supplied
to the processing plants. A production recovery plan to address the current pit constraints and a
longer term operational optimisation strategy is being implemented.
Kolomela mine continued with its excellent quarterly performance despite a planned
maintenance stoppage at the mine. The mine produced 2.7 Mt for the quarter, a marginal
decrease of 2% compared to Q4 2012 and 2% on the previous quarter. Production exceeded
monthly design capacity for most of the year, and reached a new record level during October
2013. Technical studies have confirmed the mine’s capacity to sustain production at 10 Mtpa
for the life of mine, 1 Mtpa above its original design capacity.
Production at Thabazimbi mine decreased by 17% compared to Q4 2012 and by 37%
compared to the previous quarter to 0.2 Mt. An agreement regulating the sale and purchase of
iron ore between SIOC and ArcelorMittal South Africa Limited (“ArcelorMittal S.A.”), which is
effective from 1 January 2014, may enable the extension of the life of Thabazimbi mine through
the introduction of low grade beneficiation technologies.
Total export sales volumes of 9.5 Mt increased by 6% compared to Q4 2012 and by 1%
compared to the previous quarter, mainly due to the recovery in Sishen mine’s production.
Domestic sales volumes increased by 57% compared to Q4 2012 to 1.3 Mt due to increased
off-take by ArcelorMittal S.A., but remained largely unchanged compared to the previous
quarter.
Total finished product stockpile levels amounted to 2.8 Mt as at 31 December 2013 compared
to 3.7 Mt as at 31 December 2012 and 2.2 Mt as at 30 September 2013.
For further information, please contact:
Media Investors and analysts
Gert Schoeman Esha Mansingh
Tel: +27 (0)12 683 7019 Tel: +27 (0)12 683 7257
Centurion
29 January 2014
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 and Kolomela mines in the Northern Cape Province, and at Thabazimbi
mine in the Limpopo Province. 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
Notes to editors:
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. Our portfolio of mining businesses
meets our customers’ changing needs and spans bulk commodities – iron ore and manganese,
metallurgical coal and thermal coal; base metals and minerals – copper, nickel, niobium and
phosphates; and precious metals and minerals – in which we are a global leader in both
platinum and diamonds. At Anglo American, we are committed to working together with our
stakeholders – our investors, our partners and our employees – to create sustainable value that
makes a real difference, while upholding the highest standards of safety and responsibility
across all our businesses and geographies. The company’s mining operations, 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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