| Thu 23 Oct 2008, 8:00 | | KIO - Kumba Iron Ore Limited - Third quarter overview |
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KIO
KIO
KIO - Kumba Iron Ore Limited - Third quarter overview
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
Registration number: 2005/015852/06
Share code: KIO & ISIN: ZAE000085346
("Kumba" or "the Company")
THIRD QUARTER OVERVIEW
* Strong quarterly production underpinned by the steady ramp up of production
from the jig plant.
* Stock build up at Sishen Mine due to logistics delays.
* The 9 Mtpa Sishen South project approved for development, with first
production in 2012; logistics agreement concluded with Transnet.
* Benchmark iron ore price negotiations with export customers concluded for
the 2008/2009 iron ore year at an average increase between 100% - 110% on a
Rand per tonne basis.
* Results for the full year to 31 December 2008 will be announced on 16
February 2009.
PRODUCTION REPORT
Kumba - production summary
`000 tonnes Quarter % change Quarter % change
Ended ended
Sep Sep Sep Q08 Jun Sep Q08
2008 2007 vs 2008 vs
Sep Q07 Jun Q08
Total 10,084 7,813 29 8,873 14
- Lump 5,965 4,661 28 5,292 13
- Fines 4,119 3,152 31 3,581 15
Kumba - production summary
`000 tonnes Quarter % change Quarter % change
Ended ended
Sep Sep Sep Q08 Jun Sep Q08
2008 2007 vs 2008 vs
Sep Q07 Jun Q08
Total 10,084 7,813 29 8,873 14
- Sishen Mine 9,394 7,210 30 8,247 14
DMS plant 7,346 7,210 2 7,088 4
Jig plant 1,808 - N/A 908 99
Other 240 - N/A 251 (4)
- Thabazimbi 690 603 14 626 10
Mine
In the third quarter total production increased 29% from a year earlier to 10.1
Mt (million metric tonnes), which is 14% or 1.2 Mt, higher than production in
the second quarter of 2008. Sishen Mine production increased by 1.1 Mt from the
previous quarter to 9.4 Mt for the quarter ended 30 September 2008. The 1.8 Mt
produced by the jig plant accounted for 19% of Sishen Mine`s production. This
quarter`s production brings the total production from the jig plant for the year
to 30 September 2008 to 3.1 Mt. The ramp up of production from the jig plant has
seen a steady increase during the quarter as the technical issues are addressed.
The continued steady ramp up of the jig plant should yield production of some
5Mt in 2008. Full production on an annualised basis is anticipated in the second
half of 2009. Production from the DMS plant at Sishen Mine and from Thabazimbi
Mine was stable during the quarter.
In July 2008 investment in the Sishen South project was approved and an
agreement was concluded with Transnet in respect of the expansion of the Sishen-
Saldanha export line. An experienced project team has been mobilised for the
development of the mine. First production is anticipated in 2012.
23 October 2008
Centurion
Sponsor to Kumba
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Contact:
T Chabana
Tel: (012) 683 7067
Date: 23/10/2008 08:00:10 Produced by the JSE SENS Department.
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