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Following the reconfiguration of our business in 2024, aimed at aligning production more closely with the constrained logistics capacity of Transnet’s rail and port network, our focus this year has been on driving operational excellence, securing additional cost efficiencies and strengthening stability at Transnet, while upholding our first value, the safety of our people. It is pleasing to report that because of our sustained commitment to workplace safety, we have now been fatality-free at Sishen for more than nine years and more than two years at Kolomela.
Thanks to the dedication of our teams across our operations total waste stripped was up 6% to 165.6 Mt. Total production for the year increased by 1% to 36.1 Mt. Sishen’s production was down 2% to 25.3 Mt, because of a planned drawdown of high levels of finished stock, as well as plant maintenance on the dense media separation and Jig plants being brought forward in preparation for the main tie-in of our Ultra-high dense media separation technology in the second half of 2026. At Kolomela, production was up 7% to10.8 Mt, contributing to our overall increase in production year on year.
We saw a 6% improvement in ore railed to Saldanha Bay port, to 37.6 Mt for the year, despite four derailments over the period. This uplift in performance reflects the progress that has been made through the strong collaboration between the Ore User’s Forum and the Transnet operational teams in ensuring successful completion of the annual maintenance programme and in driving implementation of the Ore Corridor Restoration programme. As a result of these network improvements, sales were up 2% to 37.0 Mt.
Attributable free cash flow
Total cash dividend per share
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Delivering on our strategic objectives
Our resilient operational and financial performance was achieved through effective execution on each of our three strategic objectives.
Unlocking the full potential of the core
Our first strategic objective and immediate priority is to unlock our full potential and enhance our competitiveness by delivering operational excellence, driving cost competitiveness and embedding a culture of accountability, safety and performance. In addition to maintaining fatality-free production, a priority outcome is to drive margin improvement and reduce our break-even price. Given the volatile market and supply chain environment, and our relative position on the global cost curve, there is a critical need to drive and sustain cost efficiencies and ensure disciplined capital allocation.
This year, despite some challenges, we secured R673 million in cost savings and combined with the R4.4 billion achieved in 2024, we delivered R5.1 billion of cumulative savings. With cost reduction initiatives remaining a top priority, I am confident we will continue to make progress in our cost optimisation efforts. Our focus is on driving incremental operational efficiency by improving asset reliability through our heavy mobile equipment recapitalisation programme and enhancing our procurement and sourcing model. Our aim is to maintain cost discipline without heavy capital spend, focusing on operational efficiencies that rely mostly on internal management efforts, balancing cost control while sustaining output and quality.
Our ability to unlock our full potential is contingent on restoring the Ore Export Channel’s performance to its design capacity. There have been recent improvements in the performance of the logistics network, as well as progress in the government’s reform process aimed at allowing private sector participation on the network. While these improvements are encouraging, given the complexity of the ambitious reform process and Transnet’s deep structural challenges, we remain optimistic regarding the timeframe to fully restore the country’s rail and port network.
Positioning for a sustainable future
Our second strategic pillar seeks to position Kumba for the future by maintaining our relevance in a highly dynamic operating environment, where changing societal expectations and growing climate and nature-related risks are having an increasingly material impact on businesses. Our priorities are to maximise the product premium through improved product quality, realise our ambitions in terms of promoting low-carbon steelmaking technologies, and generate increased societal value by delivering on the commitments in our recently updated sustainability strategy.
Through disciplined capital allocation, we seek to strike a critical balance between enhancing Kumba’s long-term resilience and creating enduring value for all stakeholders, without compromising our short-term competitiveness and sustaining dividends in line with our policy. Global volatility and the strategic imperative to grow the business require a focus on discretionary growth capital options, supported by a strong balance sheet, to position the business for a sustainable future.
Our most significant recent capital investment is the R11.2 billion Ultra-high dense media separation processing project at Sishen that will significantly increase the volume of premium-grade products from the mine, and secure Sishen’s life-of-asset to 2041, with further life extension optionality, delivering significant economic benefit to local communities. We have made pleasing progress on the project, with 37% of the overall project completed and 90% of all engineering work completed, and achieving our critical milestones for the main tie-in of the bulk materials handling system scheduled for the second half of 2026.
As part of our commitment to developing low-carbon steelmaking technologies, we are working with an Anglo American team – and with industry bodies, suppliers and academia – to research and pilot suitable feed strategies for lower-carbon steel technologies and to develop a portfolio of innovative solutions to support businesses in reducing their emissions. Together with the valuable work we are doing to decarbonise our own activities, minimise our environmental footprint and invest in thriving host communities, these activities will strengthen Kumba’s resilience and position us well for a sustainable future.
Developing new avenues for growth
Our third pillar speaks about our ambition to unlock longer-term value by developing growth opportunities that fit well within our current activities, enhance our operational resilience and expand the business beyond its existing asset base. We are assessing various “close to core” adjacencies, including opportunities for downstream beneficiation aimed at securing Kumba’s position in the green steel market.
