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Kumba Q3 output 12% lower y/y

22nd October 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Kumba Iron Ore’s production fell 12% year-on-year to 11.4-million tonnes in the third quarter of the year.

Production was, however, 10% higher than that produced in the second quarter.

The year-on-year decrease in production was owing to a temporary lack of sufficient exposed high-quality ore for blending purposes at Kumba’s Sishen mine, in the Northern Cape, and adjustments to the mine plan and schedule as it transitioned to the lower-cost pit configuration.

The mine produced 7.7-million tonnes, a decrease of 17% year-on-year.

While Kumba expected to see improvements in production in the fourth quarter, it revised its full-year production guidance for Sishen downwards to 31-million tonnes, compared with the previous guidance of 33-million tonnes.

Waste mining activities were currently at 230-million tonnes a year and were expected to be maintained at this rate until 2016 to ensure adequate levels of exposed ore. This compared to previous guidance of 200-million tonnes a year.

At Kolomela, also in the Northern Cape, revised mining plans, including the deferral of mining at one of three pits, was implemented, which resulted in efficiencies and throughput at the plant continuing to improve.

Output for the third quarter reached 3.3-million tonnes, while production guidance for the full-year was revised upwards to 12-million tonnes from the previously expected 11-million tonnes.

Waste mining at Kolomela would be increased to between 44-million and 45-million tonnes, from the previous guidance of 35-million to 38-million tonnes.

Kumba noted that mining had ceased at its Thabazimbi operations at the end of September, but that some processing of previously mined material through the plant would continue until 2016.

Export sales volumes, meanwhile, increased to 9.8-million tonnes, 9% higher year-on-year, but 16% lower quarter-on-quarter.

The iron-ore miner also reported a 16% quarter-on-quarter drop in sales, as two derailments had occurred on the Sishen–Saldanha line, reducing railings to port by 1.6-million tonnes.

Further, the yearly Transnet maintenance shutdown, which was usually scheduled for August, had been postponed to early October.  Export sales were, nevertheless, expected to exceed 43-million tonnes for the full year.

Total finished product stock was at 4.7-million tonnes at September 30, compared with 6.5-million tonnes at year end.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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