The iron-ore supply-demand balance 
indicated a potential seaborne iron-ore shortage in 2013 when the new Sishen South project would come into full production, Kumba Iron Ore CEO Chris Griffith said last week.

Griffith told Mining Weekly that Kumba was poised to expand its participation in seaborne iron-ore at that key time of expected market tightness.

Mining Weekly formed part of a large contingent of journalists on a visit to Kumba’s new R8,5-million, nine-million-ton-a-year Sishen South project, now called Kolomela, 70 km south of the existing high-performing Sishen mine, near Postmasburg, in the Northern Cape.

Kolomela’s nine-million-ton production would be direct shipping ore for export and State-owned rail transport provider Transnet was in the process of building a rail link from the proposed new mine to the Sishen–Saldanha rail line.

Kumba is the world’s fourth-largest supplier of seaborne iron-ore and exported more than 24-million tons of iron-ore in 2008.

The company is poised to export 34-million tons in 2009 as production increases and 
domestic offtake lowers.

Kumba has secured 44-million tons a year of Transnet’s 60-million-ton-a-year rail capacity as part of the State enterprise’s 1C expansion. The nine-million tons from Sishen South is included in the 44-million tons.

There was potential for expansion at the new mine, where first production would begin in the first half of 2012, Kumba executive project head Francois Louw said.

The greenfield Kolomela’s first shipment of iron-ore is expected to leave Saldanha for 
export markets in that year. 
The operation will produce 64,5% fine ore and 64% lump ore.

Griffith said that China’s domestic supply of iron-ore was declining in product grades, 
effectively reducing the iron content to the steel mills, as well as declining in quantity, following the closure of high-cost mines.

The new 20-year-life operation would produce nine-million tons of iron-ore each year once the project is complete.

Kolomela, which will employ 750 people, will use about 20% of the capacity of the 
861-km Sishen–Saldanha railway line, which is ultimately expected to facilitate the export of more than 60-million tons of iron-ore a year and, in time, also carry manganese.

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