Kumba Iron Ore Limited production and sales report for the quarter ended 31 December 2013
29 January, 2014
Kumba Iron Ore Limited (“Kumba”) today released its production and sales report for the quarter ended 31 December 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 increased by 25% compared to Q4 2012 and by 19% compared to the previous quarter to 11.3 Mt, as Sishen mine’s production recovered following the impact of the unprotected strike in Q4 2012, section 54 regulatory safety stoppages in August 2013 and ongoing pit constraints.
- Outstanding performance at Kolomela mine continued with 2.7 Mt produced for the quarter, although a decrease of 2% compared to Q4 2012 and 2% compared to the previous quarter.
- Total export sales volumes increased by 6% compared to Q4 2012 and by 1% compared to the previous quarter to 9.5 Mt.
| Unaudited production summary | ||||||||
| ‘000 tonnes |
Quarter |
% change |
Quarter |
% change | % change | |||
| Q4 2013 | Q4 2012 |
Q4 2013 vs Q4 2012 |
Q3 2013 |
Q4 2013 vs Q3 2013 |
FY13 | FY12 |
FY13 vs FY12 |
|
| Total | 11,286 | 9,013 | 25 | 9,474 | 19 | 42, 373 | 43, 066 | (2) |
| – Sishen Mine | 8,395 | 6,038 | 39 | 6,429 | 31 | 30, 938 | 33, 697 | (8) |
| DMS plant | 5,778 | 3,976 | 45 | 3,880 | 49 | 20, 374 | 23, 083 | (12) |
| Jig plant | 2,617 | 2,062 | 27 | 2,549 | 3 | 10, 564 | 10, 614 | - |
| – Kolomela mine | 2,740 | 2,793 | (2) | 2,806 | (2) | 10, 809 | 8, 545 | 26 |
| – Thabazimbi Mine | 151 | 182 | (17) | 239 | (37) | 626 | 824 | (24) |
| Unaudited sales summary | ||||||||
| ‘000 tonnes |
Quarter |
% change |
Quarter |
% change | % change | |||
| Q4 2013 | Q4 2012 |
Q4 2013 vs Q4 2012 |
Q3 2013 |
Q4 2013 vs Q3 2013 |
FY13 | FY12 |
FY13 vs FY12 |
|
| Total | 10,836 | 9,813 | 10 | 10,734 | 1 | 43, 708 | 43, 708 | (1) |
| – Export sales | 9,530 | 8,980 | 6 | 9,422 | 1 | 39, 076 | 39, 657 | (1) |
| – Domestic sales | 1,306 | 833 | 57 | 1,312 | - | 4, 632 | 4, 683 | (1) |
| Sishen mine | 1,118 | 581 | 92 | 1,099 | 2 | 3, 927 | 3, 436 | 14 |
| Thabazimbi mine | 188 | 252 | (25) | 213 | (12) | 705 | 1, 247 | (43) |
Sishen mine’s production increased by 39% compared to Q4 2012 and by 31% compared to the previous quarter to 8.4 Mt as production recovered following the impact of the unprotected strike in Q4 2012, section 54 regulatory safety stoppages in August 2013 and ongoing pit constraints. The Sishen pit remains constrained, which impacts availability of material supplied to the processing plants. A production recovery plan to address the current pit constraints and a longer term operational optimisation strategy is being implemented.
Kolomela mine continued with its excellent quarterly performance despite a planned maintenance stoppage at the mine. The mine produced 2.7 Mt for the quarter, a marginal decrease of 2% compared to Q4 2012 and 2% on the previous quarter. Production exceeded monthly design capacity for most of the year, and reached a new record level during October 2013. Technical studies have confirmed the mine’s capacity to sustain production at 10 Mtpa for the life of mine, 1 Mtpa above its original design capacity.
Production at Thabazimbi mine decreased by 17% compared to Q4 2012 and by 37% compared to the previous quarter to 0.2 Mt. An agreement regulating the sale and purchase of iron ore between SIOC and ArcelorMittal South Africa Limited (“ArcelorMittal S.A.”), which is effective from 1 January 2014, may enable the extension of the life of Thabazimbi mine through the introduction of low grade beneficiation technologies.
Total export sales volumes of 9.5 Mt increased by 6% compared to Q4 2012 and by 1% compared to the previous quarter, mainly due to the recovery in Sishen mine’s production.
Domestic sales volumes increased by 57% compared to Q4 2012 to 1.3 Mt due to increased off-take by ArcelorMittal S.A., but remained largely unchanged compared to the previous quarter.
Total finished product stockpile levels amounted to 2.8 Mt as at 31 December 2013 compared to 3.7 Mt as at 31 December 2012 and 2.2 Mt as at 30 September 2013.