Archive - 2010

Third quarter overview:

• 5% decrease in total production year on year to 10.7Mt (million metric tonnes)
• Production from the DMS plant decreased by 15% year on year due to unplanned primary crusher maintenance and the shut down of the plant due to full finished product stockpiles
• Production from the Jig plant continues to ramp up, increasing by 20% year on year to 3.5Mt. The Jig plant remains set to deliver name plate capacity for its first full year in 2010.
• Export sales volumes of 8.3Mt in the third quarter decreased by 12% year on year as performance was hampered by a number of separate logistics difficulties.
• Total domestic sales volumes of 2.2Mt increased by 57% or 0.8Mt year on year
• Finished product stockpile levels amounted to 7.1Mt at Sishen Mine, Saldanha and Qingdao ports as at 30 September 2010.

The 3.5Mt produced by the Jig plant now accounts for 35% of Sishen Mine’s production and the ramp up of the Jig plant to produce 12.5 –13Mt during 2010 continues as planned.

Demand for Kumba’s ore continues to be strong in China and our traditional markets of Japan, Korea and Europe. However, Kumba’s overall export sales in the quarter were 8.3Mt, a decrease of 13% from the second quarter of 2010, and a decrease of 12% year on year, largely as a result of less volume shipped due to logistics difficulties.

During the quarter, three separate derailments occurred on the Sishen/Saldanha freight line operated by Transnet. Transnet has established a Board of Enquiry to investigate each of these incidents. The derailments hampered Kumba’s delivery of ore to the Saldanha port, and as a result export volumes were 2.1Mt lower than planned. Transnet also carried out its planned annual maintenance in August, shutting the freight line for 10 days. As a result of this planned maintenance and the shutdowns related to the derailments, finished product stockpiles at Sishen Mine increased from 4.9Mt at the end of June to 6.1Mt at the end of September 2010 and stockpiles at Saldanha port have remained at 0.9Mt as 30 September, the same level as at 30 June.

Stocks at Qingdao port were 0.1Mt at 30 September, up from 0 Mt as at 30 June.

Production from Thabazimbi Mine increased by 84% compared with production in the second quarter of 2010 to reach 0.7Mt. Sales from Thabazimbi Mine of 0.8Mt have increased by 81% from the second quarter of 2010 on the back of improved demand from ArcelorMittal SA.

Kumba reiterates its target of delivering a 5% increase in production volumes from Sishen Mine in 2010, as the Jig plant ramps up to its full capacity of 12.5-13.0Mt. Export sales volumes in the second half of 2010 are expected to be lower than the 18.8Mt achieved in 1H10; however, Transnet has improved its performance markedly since the last derailment incident and Kumba therefore remains on target to export at least 35Mt for the full year.

For further information, please contact:
Anna Mulholland
Tel: +27 (0)11 373 6683
[email protected]