Kumba Iron Ore Limited production and sales report for the quarter ended 31 December 2016
26 January, 2017
Kumba Iron Ore Limited ("Kumba") today released its production and sales report for the quarter ended 31 December 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:
- Sishen production for the full year of 28.4Mt, exceeding guidance target of 27Mt
- Record full year production of 12.7 Mt achieved at Kolomela
| '000 tonnes | Quarter | % change | Quarter | % change | |
|---|---|---|---|---|---|
| Q4 2016 | Q4 2015 | Q4 2016 vs Q4 2015 | Q3 2016 | Q4 2016 vs Q3 2016 | |
| Total | 11,928 | 10,935 | 9 | 11,760 | 1 |
| - Sishen mine | 8,490 | 7,661 | 11 | 8,349 | 2 |
| DMS plant | 5,379 | 5,124 | 5 | 5,325 | 1 |
| Jig plant | 3,111 | 2,537 | 23 | 3,024 | 3 |
| - Kolomela mine | 3,438 | 2,854 | 20 | 3,411 | 1 |
| - Thabazimbi mine | - | 420 | (100) | - | - |
| '000 tonnes | Quarter | % change | Quarter | % change | |
|---|---|---|---|---|---|
| Q4 2016 | Q4 2015 | Q4 2016 vs Q4 2015 | Q3 2016 | Q4 2016 vs Q3 2016 | |
| Total | 11,224 | 11,043 | 2 | 11,050 | 2 |
| - Export sales | 10,611 | 10,509 | 1 | 10,343 | 3 |
| - Domestic sales | 613 | 534 | 15 | 707 | (13) |
| Sishen mine | 613 | 280 | 119 | 707 | (13) |
| Thabazimbi mine | - | 254 | (100) | - | - |
Sishen produced 8.5Mt up 11% on 4Q15. Run rates during the quarter were in line with the considerable improvement realised in Q3 2016 following the successful completion of its restructuring to a lower cost pit shell. Full year production was 28.4Mt exceeding the guided target of 27Mt. The higher production was attributable to improved mining productivity as well as access to low strip ratio ore and higher plant yields during the second half of the year. Waste removal, as planned, was 32% lower at 37Mt compared to 4Q15.
Kolomela production rose by 20% to 3.4Mt compared to Q4 2015, with the mine exceeding its full year target of 12Mt to 12.7Mt. The improvement in production was driven by higher levels of throughput as a result of further debottlenecking and optimization of the plant. Waste mined was 59% higher than the corresponding period in 2015 at 15.4Mt in line with higher production levels.
Export sales increased marginally compared to both 3Q16 and 4Q15 to 10.6Mt. Total finished product stocks were 3.5Mt, compared to 3.1Mt at 30 September 2016.