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Kumba Iron Ore Limited production and sales report for the quarter ended 31 March 2016
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
(“Kumba” or “the Company”)
Kumba Iron Ore Limited production and sales report for the quarter ended 31 March
2016
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 31 March 2016. 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 from Kumba decreased to 8.9 Mt as Sishen transitioned to a lower cost
pit configuration. This is 27% less than Q1 2015 and 18% lower compared to Q4 2015.
- Total export sales volumes decreased by 18% compared to Q1 2015 and by 11%
compared to the previous quarter at 9.4 Mt.
Quarter % change Quarter % change
‘000 tonnes Q1 2016 Q1 2016
Q1 2016 Q1 2015 vs Q4 2015 vs
Q1 2015 Q4 2015
Total 8,925 12,167 (27) 10,935 (18)
- Sishen mine 5,842 8,885 (34) 7,661 (24)
DMS plant 3,550 5,758 (38) 5,124 (31)
Jig plant 2,292 3,127 (27) 2,537 (10)
- Kolomela mine 2,713 2,973 (9) 2,854 (5)
- Thabazimbi mine 370 309 19 420 (12)
Quarter % change Quarter % change
‘000 tonnes Q1 2016 Q1 2016
Q1 2016 Q1 2015 vs Q4 2015 vs
Q1 2015 Q4 2015
Total 10,544 12,906 (18) 11,043 (5)
- Export sales 9,376 11,472 (18) 10,509 (11)
- Domestic sales 1,168 1,434 (19) 534 119
Sishen mine 717 1,114 (36) 280 156
Thabazimbi mine 451 320 41 254 78
Sishen mine produced 5.8 Mt, a decrease of 34% compared to Q1 2015 and 24% lower than
Q4 2015. Waste removal was lower at 33.9 Mt versus 49.3 Mt in Q1 2015. The reduction in
production and waste volumes was in line with the mine’s lower cost pit configuration.
Sishen continues to experience feedstock constraints which have been exacerbated by
higher levels of rainfall experienced during the quarter. Solutions are being implemented to
increase mine flexibility. Guidance for the full year remains unchanged at ~27 Mt of
production. As previously indicated, detailed work to refine the Sishen life of mine plan based
on the revised pit configuration is ongoing and will be finalised during 2016.
The Section 189 process is on track with consultations on the organisational structures
completed. The material changes, due to the revised pit configuration and related
restructuring require significant management focus to ensure that productivity continues to
improve and safety is maintained.
Kolomela produced 2.7 Mt for the quarter, a decrease of 9% on Q1 2015 and 5% on Q4
2015, due to a section 54 stoppage as a result of a fatality that occurred on-mine in January
2016. Run rates have improved subsequently and the mine remains on track to produce 12
Mt.
Export sales of 9.4 Mt decreased by 18% relative to Q1 2015 and 11% to Q4 2015, due to
lower production. Total finished product stocks were 3.2 Mt, compared to 4.7 Mt at the end of
2015 as stocks were drawn-down to more optimal levels. Export sales guidance remains at
~40 Mt for 2016.
Domestic sales volumes decreased by 19% relative to Q1 2015 and doubled compared to
Q4 2015 to 1.2 Mt, based on customer requirements.
At Thabazimbi, mining activities ceased on 30 September 2015 and processing activities
ceased on 31 March 2016. Closure of the mine is proceeding according to plan.
For further information, please contact:
Investors and analysts
Nerina Bodasing
Tel: +27 12 622 8324
Centurion
21 April 2016
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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