Name of the Project
Sishen ultrahigh dense-media separation (UHDMS) project.

Location
Northern Cape, South Africa.

Project Owner/s
Anglo American subsidiary Kumba Iron Ore.

Project Description
The project is aligned with Kumba’s strategy of pursuing value over volume, and is expected to improve flexibility in meeting customer specifications.

Kumba Iron Ore is upgrading its existing dense-media separation plant at the Sishen mine to UHDMS technology. This margin-enhancing investment will allow for the processing of a broader range of ore grades and densities using specialised ferrosilicon.

The project is being implemented using a modular approach. Six UHDMS coarse modules and five fines modules will be converted in the existing plant. During implementation, the dense-media separation (DMS) modules not under construction, as well as the jig plant, will continue to run, with production supplemented by finished product stock.

The UHDMS upgrade is expected to treble the proportion of premium iron-ore in Sishen’s production mix – from about 18% currently to about 55%. Premium-grade ore is increasingly in demand, owing to its ability to lower carbon emissions in steelmaking, and this shift supports higher product premiums and improved returns. 

The UHDMS process will reduce the mine's cutoff grade from 48% to 40% iron, improving the waste stripping ratio from 3.9 to 3.3 and reducing waste mining volumes by about 15-million tonnes a year. This will lower mining costs by an average of $2.50/t to $3/t, while maintaining Sishen’s 70:30 lump:fine product ratio and an average iron content of 64%. 

The upgrade is expected to extend Sishen’s life-of-asset by six years, with the option for another extension.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The project is expected to deliver an internal rate of return exceeding 30%, with full payback projected by the end of 2029. 

Capital Expenditure
Following a full technical review, Kumba announced an additional investment of R7.6-billion in August 2024, bringing the total project investment to R11.2-billion. The initial R3.6-billion was approved in February 2021. Kumba expects to spend R3-billion to R3.2-billion on the project in 2026. The total approved capital remains R11.2-billion, with the remaining expenditure phased at R2-billion in 2027, R900-million in 2028 and R1.1-billion in 2029.

Planned Start/End Date
Project execution resumed in November 2024 following the additional capital approval. The main tie-in of the Sishen DMS plant is scheduled to start in August 2026. The plant is expected to reach full capacity by the end of 2028.

Latest Developments
As at June 30, 2026, overall project progress was about 45%, with 96% of detailed engineering completed. Structural steel installation was progressing well, with 28% installed; a further 47% is planned for the second half of 2026, with the balance due by the end of 2028.

Conversion of the first coarse and fines modules is complete. Commissioning of these modules, together with the new modular substations and associated electrical infrastructure, is under way, although technical modifications required within the existing plant have extended commissioning. Construction of the second coarse module, which started in the first quarter of 2026, was 40% complete and had reached the structural and mechanical installation phases.

Pre-shutdown mechanical and electrical work for the main tie-in is progressing to plan, including the installation of preassembled transfer towers and conveyor gantries. The tie-in is scheduled to start in August 2026 and will include the construction of new product and discard conveyors, and the rerouting of existing transfer conveyors to connect to the converted UHDMS modules.

The shutdown execution sequence comprises dismantling and demolition, structural and mechanical installation, electrical and instrumentation work, as well as final conveyor commissioning. The jig plant will continue operating during the tie-in, with finished product stock supplementing production.

All components, including key long-lead capital items, have been secured, with no supply-chain disruption reported from the Middle East conflict. An additional work shift has been introduced to accelerate construction and support the main shutdown.

Key Contracts, Suppliers and Consultants
All major construction packages have been awarded. 

Contact Details for Project Information
Kumba Iron Ore, tel +27 12 683 7000 or email investorrelations.kumba@angloamerican.com.