Kumba Iron Ore Limited ("Kumba") today released its production and sales report for the quarter ended 31 December 2011. Throughout this report, production and sales volumes referred to are 100%, attributable to Kumba as well as non-controlling interests in Sishen Iron Ore Company (Pty) Limited.
Overview:
- Kolomela mine commissioned five months ahead of schedule, with first shipment from the Port of Saldanha in December 2011.
- Total production increased by 4% year on year to 11.2Mt as a result of first production from Kolomela mine, offset by a decline in production from Sishen mine due to feedstock constraints at the mine's dense media separation ("DMS") plant.
- Total export sales volume of 9.6Mt for the quarter increased by 7% year on year with 37.1Mt sold during 2011.
- Domestic sales of 1.2Mt declined by 28% year on year due to reduced off take from ArcelorMittal South Africa Limited ("AMSA").Production summary ‘000 tonnesQuarter
Excellent progress was made at Kolomela mine, which was brought into production five months ahead of schedule. The plant delivered 1.2Mt during the fourth quarter, bringing total production for 2011 to 1.5Mt, with first ore shipped from the Port of Saldanha in December 2011. Kolomela mine is ramping up well and is on track to produce between 4Mt and 5Mt in 2012 before producing at full design capacity of 9Mtpa in 2013.
Sishen mine's production decreased by 4% year on year to 9.8Mt and by 6% quarter on quarter. Production from the mine's DMS plant was impacted by mining feedstock constraints. Sishen mine proactively supplemented the production by temporarily adjusting the jig plant ore quality in order to operate at above design capacity.
Total export sales volume of 9.6Mt increased by 7% year on year as Sishen mine's stock was used to supplement production.
Finished product stockpile levels as at 31 December 2011 was 5.2Mt at Sishen mine, Kolomela mine, and Saldanha and Qingdao ports, up 0.7Mt from 4.5Mt at 30 September 2011.
South African domestic sales volumes of 1.2Mt declined 0.5Mt year on year due to reduced off take from AMSA from Thabazimbi mine during the quarter. Production at Thabazimbi mine of 0.2Mt is in line with planned decrease in production as the mine nears the end of its life, scheduled for 2016.
