| Thu 21 Oct 2010, 8:00 | | KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and sales |
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KIO
KIO
KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and sales
report for the quarter ended 30 September 2010
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
JSE Share code: KIO
ISIN: ZAE000085346
KUMBA IRON ORE LIMITED PRODUCTION AND SALES REPORT FOR THE QUARTER ENDED 30
SEPTEMBER 2010
Kumba Iron Ore Limited ("Kumba") today released its production and sales
report for the quarter ended 30 September 2010. Throughout this report,
production and sales volumes referred to are 100% attributable to Kumba.
Third quarter overview:
- 5% decrease in total production year on year to 10.7Mt (million metric
tonnes)
- Production from the DMS plant decreased by 15% year on year due to unplanned
primary crusher maintenance and the shut down of the plant due to full
finished product stockpiles
- Production from the Jig plant continues to ramp up, increasing by 20% year
on year to 3.5Mt. The Jig plant remains set to deliver name plate capacity
for its first full year in 2010.
- Export sales volumes of 8.3Mt in the third quarter decreased by 12% year on
year as performance was hampered by a number of separate logistics
difficulties.
- Total domestic sales volumes of 2.2Mt increased by 57% or 0.8Mt year on year
- Finished product stockpile levels amounted to 7.1Mt at Sishen Mine, Saldanha
and Qingdao ports as at 30 September 2010.
Production summary
`000 tonnes Quarter % Quarter % change
ended change ended
Sep Sep Sep Q10 Jun Sep Q10
2010 2009 vs 2010 vs
Sep Q09 Jun Q10
Total 10,744 11,330 (5) 10,446 3
- Sishen Mine 10,055 10,651 (6) 10,072 -
DMS plant 6,567 7,755 (15) 6,977 (6)
Jig plant 3,488 2,896 20 3,095 13
- Thabazimbi Mine 689 679 1 374 84
Sales summary
`000 tonnes Quarter % Quarter % change
ended change ended
Sep Sep Sep Q10 Jun Sep Q10
2010 2009 vs 2010 vs
Sep Q09 Jun Q10
Total 10,462 10,800 (3) 11,014 (5)
- Sishen Mine 9,702 10,271 (6) 10,595 (8)
Export sales 8,292 9,416 (12) 9,502 (13)
Domestic sales 1,410 855 65 1,093 29
- Thabazimbi Mine 760 529 44 419 81
The 3.5Mt produced by the Jig plant now accounts for 35% of Sishen Mine`s
production and the ramp up of the Jig plant to produce 12.5 - 13Mt during 2010
continues as planned.
Demand for Kumba`s ore continues to be strong in China and our traditional
markets of Japan, Korea and Europe. However, Kumba`s overall export sales in
the quarter were 8.3Mt, a decrease of 13% from the second quarter of 2010, and
a decrease of 12% year on year, largely as a result of less volume shipped due
to logistics difficulties.
During the quarter, three separate derailments occurred on the Sishen/Saldanha
freight line operated by Transnet. Transnet has established a Board of Enquiry
to investigate each of these incidents. The derailments hampered Kumba`s
delivery of ore to the Saldanha port, and as a result export volumes were
2.1Mt lower than planned. Transnet also carried out its planned annual
maintenance in August, shutting the freight line for 10 days. As a result of
this planned maintenance and the shutdowns related to the derailments,
finished product stockpiles at Sishen Mine increased from 4.9Mt at the end of
June to 6.1Mt at the end of September 2010 and stockpiles at Saldanha port
have remained at 0.9Mt as 30 September, the same level as at 30 June.
Stocks at Qingdao port were 0.1Mt at 30 September, up from 0 Mt as at 30 June.
Production from Thabazimbi Mine increased by 84% compared with production in
the second quarter of 2010 to reach 0.7Mt. Sales from Thabazimbi Mine of
0.8Mt have increased by 81% from the second quarter of 2010 on the back of
improved demand from ArcelorMittal SA.
Kumba reiterates its target of delivering a 5% increase in production volumes
from Sishen Mine in 2010, as the Jig plant ramps up to its full capacity of
12.5-13.0Mt. Export sales volumes in the second half of 2010 are expected to
be lower than the 18.8Mt achieved in 1H10; however, Transnet has improved its
performance markedly since the last derailment incident and Kumba therefore
remains on target to export at least 35Mt for the full year.
For further information, please contact:
Anna Mulholland
Tel: +27 (0)11 373 6683
amulholland@angloamerican.co.uk
21 October 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Limited)
Notes to editors:
Kumba is a mining group of companies focusing on the exploration, extraction,
beneficiation and marketing, sale and shipping of iron ore. Kumba produces
iron ore in South Africa at Sishen Mine in the Northern Cape Province and at
Thabazimbi Mine in the Limpopo Province, and is currently developing a new
mine, Kolomela Mine in the Northern Cape Province.
Kumba Iron Ore Ltd, a business unit of the global Anglo American plc group, is
a leading supplier of seaborne iron ore. In 2009 Kumba exported over 34Mt of
iron ore to customers in a range of geographical locations around the globe;
from China, Japan and Korea to a number of countries in Europe.
www.angloamericankumba.com
Anglo American plc, one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Its portfolio of mining businesses spans precious metals and
minerals - in which it is a global leader in both platinum and diamonds; base
metals - copper and nickel; and bulk commodities - iron ore, metallurgical
coal and thermal coal. Anglo American is committed to the highest standards of
safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around
its operations. The company`s mining operations and extensive pipeline of
growth projects are located in southern Africa, South America, Australia,
North America and Asia.
www.angloamerican.com
Date: 21/10/2010 08:00:06 Produced by the JSE SENS Department.
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