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Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2017
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 30 June 2017
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the
quarter ended 30 June 2017. 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:
- Sishen production up 38% to 7.9Mt due to improved mining productivity.
- Export sales up 8% to 9.4Mt on the back of a 28% increase in total production.
Production summary
Quarter % Quarter %
'000 tonnes ended change ended change
Q2 Q2 vs Q2 Q1 vs
2017 2016 2016 2017 Q1 2017
Total 11,382 8,864 28 10,473 9
- Sishen Mine 7,872 5,700 38 7,679 3
DMS Plant 4,909 3,395 37 4,795 2
Jig Plant 2,963 2,305 40 2,884 3
- Kolomela Mine 3,510 3,164 11 2,794 26
Sales summary
Quarter
ended % Quarter %
'000 tonnes change ended change
Q2 Q2 vs Q2 Q1 vs
2017 2016 2016 2017 Q1 2017
Total 10,348 9,666 7 10,886 (5)
- Export sales 9,423 8,730 8 10,053 (6)
- Domestic sales 925 936 (1) 833 11
Sishen mine 925 699 32 833 11
Thabazimbi mine - 237 (100) - -
Sishen production increased by 38% to 7.9Mt due to improved mining productivity as a result of
fleet efficiencies and higher plant yields. Waste removal increased by 38% to 42.7Mt, compared
to 31.1Mt in Q2 2016 (H1 2017: 76.6Mt). Sishen’s solid and consistent performance and
ongoing improvements since the restructuring have resulted in guidance being revised. Sishen
is expected to produce between 28-29Mt of iron ore in 2017 and 155-165Mt of waste.
Kolomela production increased to 3.5Mt, up 11% compared to Q2 2016, due to productivity
improvements. Waste mined increased by 22% to 15.3Mt through ongoing improvements in
operational efficiency. Kolomela is on track to meet full year production and waste guidance for
2017 of 13-14Mt and 50-55Mt respectively.
Export sales increased by 8% to 9.4Mt compared to Q2 2016. Total finished product stocks
were 4.4Mt, compared to 3.5Mt at year end. Sales volumes were delayed to H2 due to
unfavourable weather at Saldanha port. Full year sales guidance has been increased to 41-
43Mt.
For further information, please contact:
Media Investors
Yvonne Mfolo Anne Dunn
yvonne.mfolo2@angloamerican.com anne.dunn@vodamail.co.za
Tel: +27 12 683 7067 Mobile: +27 82 448 2684
Mobile: +27 83 469 4566
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. 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 a globally diversified mining business. Our portfolio of world-class
competitive mining operations and undeveloped resources provides the raw materials to meet
the growing consumer-driven demands of the world’s developed and maturing economies. Our
people are at the heart of our business. It is our people who use the latest technologies to find
new resources, plan and build our mines and who mine, process and move and market our
products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), platinum and other precious metals,
copper, nickel, iron ore and coal - we are the custodians of what are precious natural resources.
We work together with our key partners and stakeholders to unlock the long-term value that
those resources represent for our shareholders and for the communities and countries in which
we operate – creating sustainable value and making a real difference.
www.angloamerican.com
20 July 2017
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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