| Thu 20 Oct 2011, 8:00 | | KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and |
|
KIO
KIO
KIO - Kumba Iron Ore Limited - Kumba Iron Ore Limited production and
sales report for the quarter ended 30 September 2011
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 2011
Kumba Iron Ore Limited ("Kumba") today released its production and
sales report for the quarter ended 30 September 2011. Throughout this
report, production and sales volumes referred to are 100% attributable
to Kumba.
Overview:
- Sishen mine`s production increased by 4% year on year to 10.5Mt
(million metric tonnes) and by 3% quarter on quarter. Following an
18% increase in production in the second quarter of 2011 on the
first quarter, production has normalised after excessive rainfall
adversely affected production during the first quarter.
- Export sales volumes of 9.2Mt increased 11% year on year but
decreased 7% quarter on quarter due to the annual maintenance
shutdown of the iron ore export channel. Export sales volumes
remain unaffected by the lower production experienced in the first
quarter of 2011 as stock was used to supplement production.
- Domestic sales of 1.5Mt declined 0.6Mt year on year due to reduced
off take from ArcelorMittal South Africa Limited (AMSA) during the
September 2011 quarter.
- Thabazimbi mine`s production of 0.2Mt decreased 0.5Mt year on year
mainly as a result of AMSA taking less finished product during the
quarter, together with a planned decrease in production as the
mine nears the end of its life.
- The commissioning of Kolomela mine commenced successfully during
August 2011 with 0.3Mt of final product already produced during
the quarter. Kolomela mine remains on track to ramp-up to between
4Mt and 5Mt in 2012.
Production summary
`000 tonnes Quarter % Quarter % change
ended change ended
Sep Sep Sep Q11 Jun Sep Q11
2011 2010 vs 2011 vs
Sep Q10 Jun Q11
Total 10,953 10,744 2 10,359 6
- Sishen mine 10,450 10,055 4 10,098 3
DMS plant 6,938 6,567 6 6,589 5
Jig plant 3,512 3,488 1 3,509 -
- Kolomela mine 299 - - - -
- Thabazimbi mine 204 689 (70) 261 (22)
Sales summary
`000 tonnes Quarter % Quarter % change
ended change ended
Sep Sep Sep Q11 Jun Sep Q11
2011 2010 vs 2011 vs
Sep Q10 Jun Q10
Total 10,705 10,462 2 11,642 (8)
- Sishen mine 10,503 9,702 8 11,078 (5)
Export sales 9,167 8,292 11 9,806 (7)
Domestic sales 1,336 1,410 (5) 1,272 5
- Thabazimbi mine 202 760 (73) 564 (64)
Sishen mine`s production increased by 4% year on year to 10.5Mt
(million metric tonnes) and by 3% quarter on quarter. Following an 18%
increase in production in the second quarter of 2011 on the first
quarter, production has normalised after excessive rainfall affected
production during the first quarter. Whilst production from the DMS
plant increased 6% year on year and 5% quarter on quarter, the plant
continues to be impacted by mining feedstock constraints caused by the
excessive rainfall experienced in the first quarter of 2011. It is
therefore unlikely that the production shortfall from the first quarter
of 2011 will be made up. The Jig plant, where production of 3.5Mt per
quarter has been achieved for the past two quarters, continues to
operate above nameplate capacity.
Export sales volumes of 9.2 Mt increased 11% year on year but decreased
7% quarter on quarter due to the annual maintenance shutdown of the
iron ore export channel during August 2011. Export sales volumes remain
unaffected by the lower production experienced in the first quarter of
2011, as stock was used to supplement production.
Finished product stockpile levels amounted to 4.5Mt at Sishen mine,
Saldanha and Qingdao ports as at 30 September 2011.
South African domestic sales volumes of 1.5Mt declined 0.6Mt year on
year due to reduced off take from AMSA from Thabazimbi mine during the
quarter.
Production at Thabazimbi mine of 0.2Mt decreased 0.5Mt year on year
mainly as a result of AMSA taking less finished product from the mine
during the quarter coupled with a planned decrease in production as the
mine nears the end of its life, scheduled for 2016.
The commissioning of the Kolomela mine commenced during August 2011,
with 0.3Mt of final product produced as part of the hot commissioning
of the plant. Kolomela mine remains on track to produce between 4Mt and
5Mt whilst ramping up in 2012, before reaching design capacity of 9Mtpa
in 2013. The first empty wagons were transported under diesel
locomotive power to the mine during September 2011 to allow for the
commencement of the commissioning of the load out station during the
fourth quarter.
In the current uncertain economic environment, steel mills are facing
margin compression and are carefully managing raw material inventories.
While we believe that the medium to long term market fundamentals will
remain robust, this is expected to increase the volatility in short
term iron ore prices.
For further information, please contact:
Esha Brijmohan
Investor Relations
Tel: +27 (0)12 683 7257 / +27 (0) 83 488 9427
Email: Esha.brijmohan@angloamerican.com
Notes to editors:
Kumba, a member of the Anglo American plc group, is a leading value-
adding supplier of high quality iron ore to the global steel industry.
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. Kolomela mine is anticipated to produce between 4Mt and 5Mt
whilst ramping up in 2012, before reaching design capacity of 9Mtpa in
2013.
In 2010 Kumba exported 36.1Mt of iron ore to customers in a range of
geographical locations around the globe including China, Japan, Korea
and a number of countries in Europe and the Middle East.
www.angloamericankumba.com
Anglo American plc is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans bulk
commodities - iron ore and manganese, metallurgical coal and thermal
coal; base metals - copper and nickel; and precious metals and minerals
- in which it is a global leader in both platinum and diamonds.
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
20 October 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 20/10/2011 08:00:11 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
