Anglo American’s Kumba Iron Ore is expected to end the year with output of between 35 and 36 million tonnes up from the previous target of 35 to 37 million tonnes.
It is also expecting sales of between 36 and 37 million tonnes from the initial target of 36 – 38 million tonnes.
“Beyond the mine gate, however, there is no escaping the fact that ongoing logistics constraints have continued to place significant pressure on our value chain, resulting in stock levels at the mines increasing to unsustainable levels,” said Kumba chief executive Mpumi Zikalala.
“We have therefore slowed down production and expect to end the year…”
She said Sishen’s production has reduced to about 25 million tonnes from the previous 26 million tonnes while Kolomela’s production guidance remained unchanged at about 10 million tonnes.
As a consequence of the reduced production volumes, Sishen’s unit cost is expected to increase to between R570 ($30) and R590 ($31) per tonne.
Kolomela’s unit cost is also projected to improve to between R480 ($25) and R500 ($26) per tonne due to lower waste mining, higher production volumes, and cost savings.
“Notwithstanding lower production at Sishen, our continued focus on cost improvements together with the benefit of a weaker currency, has contributed towards our improved C1 unit cost guidance of $42 per tonne (previously $43 per tonne),” said Zikalala.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
