Kumba’s iron ore production increased by 6% to 18.8 million tonnes (Mt) in the first half of 2023 compared to the previous year’s 17.8 Mt, underpinned by Kolomela’s recovery.
Kolomela’s production rose by 22% to 6 Mt, reflecting the benefit of improved ore feedstock availability at the mine.
Sishen's production was broadly flat at 12.8 Mt from the previous year’s 12.9 Mt in the first half of 2022, owing to a decrease of 9% in the second quarter due to a build-up of finished stock at the mine due to logistics constraints.
However, multiple disruptions, including derailments and cable theft on the Transnet rail line, resulted in ore shipments to Saldanha Bay Port decreasing by 3% as of June 30, 2023.
With lower finished stock levels at Saldanha Port, sales decreased by 4% to 18.9 (Mt) in the first half of 2023 compared to 19.7 Mt in the corresponding period last year, reflecting South Africa’s Transnet logistics challenges and low finished stock levels at Saldanha Bay Port.
Company chief executive Mpumi Zikalala said Kumba achieved an average realised price of $106 per wet metric tonne (wmt) relative to the benchmark price of $102/wmt.
"We continued to see good demand for our high-quality iron ore products, with 30% of the AngloAmerican group’s iron ore customers, including Kumba (based on sales volumes), covered by partnerships to develop decarbonisation technology," she said.
Zikalala said China's pace of economic growth and steel demand slowed in the second quarter following a strong start to the year, while global economic weakness in key markets outside of China persisted. However, iron ore prices are supported as stock at mills in China is at a five-year low and supply remains tightly balanced, she said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
