Kumba Iron Ore Limited production and sales report the quarter ended 31 March 2010
22 April, 2010
Kumba Iron Ore Limited ("Kumba") today released its production report for the quarter ended 31 March 2010. Throughout this report, production and sales volumes referred to are 100% attributable to Kumba.
FIRST QUARTER OVERVIEW
- 23% increase in total production year-on-year, to 11.5Mt (million metric tonnes), as production from the Jig plant continues to ramp up, increasing by 7% from the fourth quarter of 2009 to 3.3Mt, and reaching levels above nameplate capacity during the quarter. The jig plant remains set to deliver name plate capacity for the full year 2010.
- Export sales volumes of 9.3Mt in the first quarter increased by 21% from 7.7Mt in the fourth quarter of 2009, growing 54% year on year.
- Domestic sales volumes of 1.6Mt increased by 7% or 0.1Mt quarter-onquarter and by 10% year-on-year.
- Finished product stockpile levels at Sishen Mine, Saldanha and Qingdao ports were 7.2Mt at 31 March 2010.
| Production summary Quarter % Quarter | |||||
| Ended | change | ended | % change | ||
| ‘000 tonnes | Mar | Mar | Mar Q10 | Dec | Mar Q10 |
| 2010 | 2009 | vs Mar Q09 | 2009 | vs Dec Q09 | |
| Total | 11,489 | 9,323 | 23 | 11,466 | - |
| –Sishen Mine | 11,006 | 8,693 | 27 | 10,705 | 3 |
| DMS plant | 7,678 | 6,653 | 15 | 7,586 | 1 |
| Jig plant | 3,328 | 2,040 | 63 | 3,119 | 7 |
| –Thabazimbi | |||||
| Mine | 483 | 630 | (23) | 761 | (37) |
| Sales summary | |||||
| Quarter | % | Quarter | |||
| Ended | change | ended | % change | ||
| ‘000 tonnes | Mar 2010 | Mar 2009 | Mar Q10 vs Mar Q09 | Dec 2009 | Mar Q10 vs Dec Q09 |
| Total | 10,932 | 7,523 | 45 | 9,247 | 18 |
| –Sishen Mine | 10,464 | 7,096 | 47 | 8,818 | 19 |
| Export sales | 9,315 | 6,056 | 54 | 7,729 | 21 |
| Domestic sales | 1,149 | 1,040 | 10 | 1,089 | 6 |
| –Thabazimbi | |||||
| Mine | 468 | 427 | 10 | 429 | 9 |
In the first quarter of 2010 total production increased by 23% year-on-year to 11.5Mt, remaining stable when compared to production in the fourth quarter of 2009. Sishen Mine's production increased by 0.3Mt from the fourth quarter of 2009 to 11.0Mt for the quarter ended 31 March 2010. The 3.3Mt produced by the jig plant accounted for 30% of Sishen Mine's production.
Production from the jig plant increased by 7% or 0.2Mt in the first quarter of 2010 compared with the fourth quarter of 2009. The ramp up of the jig plant to produce 12.5-13Mt during 2010 continues as planned.
Demand continues to recover in Europe, Japan and Korea, coupled with continuing strong demand for ore in China. Kumba's export sales in the quarter were 9.3Mt, an increase of 21% from 4Q09, and an increase of 54% compared with the first quarter of 2009, which saw a depressed level of export sales due to the global economic downturn.
Finished product stockpiles at Sishen Mine, Saldanha and Qingdao ports increased to 7.2Mt as at 31 March 2010, an increase of 0.5Mt from the 6.7Mt stockpiled at 31 December 2009, due primarily to an increase in finished stock at Sishen Mine and lower domestic offtake.
Production from Thabazimbi Mine decreased by 23% compared with production in the fourth quarter of last year, to 0.5Mt. Sales from Thabazimbi Mine of 0.5Mt were impacted by demand from ArcelorMittal SA and logistics constraints.
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.
For further information contact:
Anna Mulholland
Investor Relations
(011) 373 6683
[email protected]
22 April 2010