Lower iron-ore sales to steel producer ArcelorMittal South Africa (AMSA) in the third quarter have prompted Kumba Iron Ore to lower its full-year sales guidance to between 42-million and 43-million tonnes of iron-ore, compared with the previously expected 43-million to 44-million tonnes.
The iron-ore miner, which is an Anglo American subsidiary, on Tuesday, reported a 3% year-on-year decrease in sales volumes to 10.2-million tonnes in the third quarter, mainly as a result of a 36% year-on-year decrease in domestic sales to AMSA.
Export sales remained flat at about 9.7-million tonnes.
Meanwhile, production of 10.5-million tonnes of iron-ore was similar to that produced in the third quarter of 2018. The Sishen mine achieved a 2% year-on-year increase in output to 7.2-million tonnes, but output at the Kolomela mine decreased by 3% to 3.4-million tonnes as a result of the upgrade of the mine’s dense media separation plant during the quarter.
Kumba expects to meet its full-year production guidance of 42-million to 43-million tonnes.