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Kumba Iron Ore Limited production and sales report for the quarter ended 30 June 2013

18 July, 2013

Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 30 June 2013. 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:

  • Total production of 11.3 Mt decreased by 1% compared to Q2 2012 but increased by 9% compared to the previous quarter mainly due to continued improvement in production rates at Sishen mine (quarter on quarter) following the unprotected strike in Q4 2012, together with the exceptional performance of Kolomela mine.
  • Total export sales volumes were 10.2 Mt for the quarter, a decrease of 4% compared to Q2 2012 and an increase of 2% compared to the previous quarter.
Unaudited production summary
‘000 tonnes Quarter
%
change
Quarter
%
change
Q2 2013 Q2 2012 Q2 2013
vs
Q2 2012
Q1 2013 Q2 2013
vs
Q1 2013
Total 11,278 10,106 (1) 10,335 9
– Sishen Mine 8,562 8,455 (9) 7,552 13
DMS plant 5,829 6,720 (13) 4,888 19
Jig plant 2,733 2,728 - 2,664 3
– Kolomela mine 2,584 1,739 49 2,680 (4)
– Thabazimbi Mine 132 262 (50) 103 (28)

Unaudited sales summary
‘000 tonnes Quarter
%
change
Quarter
%
change
Q2 2013 Q2 2012 Q2 2013
vs
Q2 2012
Q1 2013 Q2 2013
vs
Q1 2013
Total 11,310 11,966 (5) 10,827 4
– Export sales 10,178 10,598 (4) 9,945 2
– Domestic sales 1,132 1,368 (17) 882 28
Sishen mine 960 981 (2) 751 28
Thabazimbi mine 172 387 (56) 131 31

Sishen mine’s production decreased by 9% compared to Q2 2012 to 8.6Mt, impacted by the availability of material supplied to the mine’s plants and recovery from the unprotected strike in Q4 2012.

Production at Sishen mine increased by 13% compared to the previous quarter as production rates continued to improve, following the unprotected strike.

Kolomela mine, which was successfully ramped up in 2012, produced 2.6 Mt for the quarter, an increase of 49% compared to Q2 2012 and a decrease of 4% on the previous quarter.

Production at Thabazimbi mine decreased by 50% compared to Q2 2012 but increased by 28% compared to the previous quarter to 0.1 Mt, in line with ArcelorMittal South Africa Limited’s (“AMSA”) requirements, while pit complexities and geotechnical challenges continue as the mine approaches the end of its life in terms of its current life of mine plan.

Total export sales volumes decreased by 4% compared to Q2 2012 but increased by 2% compared to the previous quarter to 10.2 Mt, which was as expected mainly due to lower production following the unprotected strike at Sishen mine in Q4 2012.

Domestic sales volumes decreased by 17% compared to Q2 2012, due to reduced off-take by AMSA, but increased by 28% on the previous quarter to 1.1 Mt.

Total finished product stockpile levels amounted to 3.3 Mt as at 30 June 2013.