South African iron-ore producer Kumba Iron Ore (KIO) increased its year-on-year output by 12%, to 11,3-million tons, during the third quarter of the year, remaining on schedule to meet its target of increasing production by an overall 10% in the 2009 financial year.

The 11,3-million tons produced in the quarter ended September 30, 2009, was 
15% higher than the 9,8-million tons produced in the June quarter.

Production at the Sishen mine, in the Northern Cape, was 1,3-million tons higher, at 10,7-million tons, with the 2,9-million tons produced 
by the jig plant accounting 
for 27% of the mine’s out-
put.

The jig plant, the world’s largest and which formed part of KIO’s Sishen Expansion Project, produced 995 902 t of iron-ore in September, which equated to an annualised production rate of 12-million tons.


The ramp-up of the plant to full production of 13-million tons a year remained on track for the fourth quarter of the year, the Anglo American subsidiary said.


While export sales had dropped to 9,4-million tons in the third quarter, down from the record 11,1-million tons exported in the June quarter, this was the second-highest export sales volumes achieved in the company’s history.


The iron-ore-miner, led by CEO Chris Griffith, noted in a statement that it had continued to successfully redirect lost export contract volumes from Europe and Japan to China.

However, production increases and restocking by the steel industry in the European, Japanese and Korean markets had boosted demand for iron-ore, as these markets have started recovering.


As a result, the export volumes to China declined 
to 69% of total export sales in the third quarter, compared with 87% in the previous quarter.

The company has settled prices with its European, Japanese and Korean customers, but continues to sell iron-ore to its contract customers in China at provisional prices.

KIO increased its finished product stockpiles at the
Sishen mine, as well as at 
the Saldanha and Qingdao ports to five-million tons of iron-ore, 2,1-million tons higher than the base operating level.

The miner was able to boost its stockpiles, primarily as a result of Transnet Freight Rail’s maintenance of the iron-ore export channel rail during the third quarter.


Meanwhile, stockpiles at the Thabazimbi mine increased to 800 000 t during the third quarter of the year, as lower domestic demand led to a higher build-up of finished product stock.

Output at the mine increased by 40%, to 700 000 t, during the quarter, while 500 000 t of iron-ore was sold to ArcelorMittal South Africa.

Domestic sales volumes to the local steelmaking company in 2009 would likely be lower than the 8,2-million tons sold in 2008, the iron-ore-miner said.

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