In its released production and sales report for the quarter ended 30 June 2013, Kumba Iron Ore shows a decrease in total production and total export sales volumes.

However while total production of 11.3 Mt decreased by 1% compared to Q2 2012 it increased by 9% compared to the previous quarter. This is 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, but again this was an increase compared to the previous quarter (i.e. of 2%).

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.

olomela 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.

NOTE: 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.



Additional Reading?

Request Free Copy