Driving change, defining our future

The global mining industry is undergoing a fundamental transformation and this has been a particularly turbulent and challenging year for Kumba. Find out how we are defining our operating context and approaching the issues impacting value creation at Kumba Iron Ore.

Our operating context

  • Responding to a period of intense change for the industry

Negative commodity sentiment

Low iron ore prices fuelled by increasing global supply and China’s economic slowdown.

In response to these conditions, we are structuring our operations to ensure sustainability, a cash breakeven price of below US$40/tonne for 2016.

Our operating context

  • Responding to a period of intense change for the industry

A flattening of the cost curve globally

A flattening of the global cost curve across the sector, has shifted Kumba’s position on the curve.

To remain competitive, we have shifted our strategic focus off volume to minimising unit cost, minimising capital expenditure and maximising cash generation.

Our operating context

  • Responding to a period of intense change for the industry

Increasing socio-political pressures

Increasing socio-political pressures, and heightened stakeholder expectations.

We engage regularly with our stakeholders to identify and address their interests and concerns. These interests inform our stakeholder issues, which are prioritised according to their impact on our business strategy, and are linked to our risks.

Our operating context

  • Responding to a period of intense change for the industry

The changing regulatory and policy environment

More stringent regulatory measures accompanied by continuing high levels of policy uncertainty.

Ensuring responsible environmental management through the life-cycle stages of an operation can influence our future access to land and capital, improve resource security, and reduce operational costs and closure liabilities.

Our operating context

  • Responding to a period of intense change for the industry

Organisational restructuring activities

Organisational restructuring activities across the sector, including specifically within Anglo American plc and Kumba.

The profound challenges of the current economic climate have required Kumba to create a significantly leaner and more efficient organisation to ensure a resilient business. We have had to prioritise the work we will continue doing, and create an organisation “Fit for Purpose”. To deliver on our objectives we need to ensure we have a culture of high performance with a highly effective and engaged workforce.

Our operating context

  • Responding to a period of intense change for the industry

Life of asset

Nature of iron ore reserves and life of asset.

Access to quality iron ore reserves forms the foundation for our ability to generate revenue.

Real Mining. Real People. Real Difference.
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Kumba Iron Ore