Name of the Project
Kapstevel South (KSS) project.
Location
About 22 km from Postmasburg, in the Northern Cape, South Africa.
Project Owner/s
Anglo American subsidiary Kumba Iron-Ore.
Project Description
KSS is a four-million-tonne-a-year, high-grade iron-ore replacement project.
It entails the development of a new pit – KSS – and associated infrastructure at Kolomela to sustain output of about 12-million tonnes a year and extend the remaining life-of-mine to 2034. The pit is a conventional truck-and-shovel operation producing high-quality direct shipping ore.
Potential Job Creation
The project will enable Kolomela to sustain the current workforce until 2034 and, therefore, avoid the job losses that would have started from 2027 if the project was not approved and executed.
Net Present Value/Internal Rate of Return
It is expected that the addition of the KSS pit will deliver an after-tax, internal rate of return of about 25%, and an earnings before interest, taxes, depreciation and amortisation margin of more than 35%.
Capital Expenditure
Capital expenditure for the project is estimated at R7-billion.
Planned Start/End Date
The project was approved in July 2020. Pit establishment and waste stripping started in 2021. The infrastructure construction is on track and will be completed by the fourth quarter of 2023. First ore is expected to be delivered in the first half of 2024.
Latest Developments
The project is more than 70% complete, with the first ore on track for delivery in the first half of 2024.
Kumba reports in its interim results for the six months ended June 30, 2023, that it has rephased a portion of the waste stripping at KSS as it optimises the mine plan because of the rail challenges to date. This has resulted in Kolomela’s waste guidance being reduced from 60-million to 70-million tonnes to between 45-million and 55-million tonnes. The total waste guidance has also been revised down to between 195-million tonnes and 225-million, compared with the previous guidance of between 210-million tonnes and 240-million tonnes.
Key Contracts, Suppliers and Consultants
In support of Anglo American’s drive to develop local communities, the project has allocated more than R1.7-billion to host community contractors involved in the construction and mining scope of the project.
Contact Details for Project Information
Anglo American (media), Sinah Phochana, tel +27 12 683 7019 or email sinah.phochana@angloamerican.com.
Anglo American (investors), Penny Himlok, tel +27 12 622 8324 or email penny.himlok@angloamerican.com.