JSE-listed Kumba Iron Ore is finishing 2020 in good shape, despite the unique challenges of Covid-19, CEO Themba Mkhwanazi said on Friday, announcing an updated guidance for South Africa’s largest iron-ore producer.
Mkhwanazi indicated that to ensure the value chain was balanced, and finished stock was maintained at optimal levels, production would be closer to the lower end of the guidance range.
The miner expects its 2020 production to be about 37-million tons, from the previous guidance range of 37-million to 39-million tons. Its sales would amount to about 39-million tons, which is in line with its previous guidance of 38-million to 40-million tons.
The on-mine unit cost guidance for the Sishen mine has decreased to between R380/t and R390/t from R385/t to 395/t, while the Kolomela mine has increased to between R290/t and R300/t from R280/t to 290/t.
The company’s Kumba C1 unit cost guidance for production of about $32/t is unchanged.
"2020 has presented a unique set of challenges and it is pleasing to see the strong commitment across our operations to produce responsibly and ensure that we end the year in good shape and are well positioned for 2021 and the longer term,” said Mkhwanazi.