Iron-ore miner Kumba Iron Ore has lowered its manufacturing steering for this 12 months to 37-million tonnes, from the 38-million to 40-million tonnes beforehand guided.
CE Mpumi Zikalala says rail constraints all year long have led to a big build-up of iron-ore stockpiles on the firm’s mines, which has necessitated a lower in manufacturing, given the dearth of accessible cupboard space.
Kumba’s gross sales steering has been maintained at 36-million to 37-million tonnes for the full-year.
“Following a troublesome first half operationally, manufacturing and gross sales have been disrupted in October by the two-week wage strike at Transnet, with the next delay and prolonged shutdown for the annual logistics upkeep programme including additional constraints.
“Whereas the iron-ore export channel has reopened, ongoing operational challenges have resulted in decrease throughput than anticipated,” Zikalala explains.
She notes that, regardless of the lower in manufacturing, Kumba’s on-mine and C1 unit prices steering have been maintained for the full-year.
The unit price steering for Sishen is R500 /t to R530/t and for Kolomela R505/t to R525/t. The C1 unit price stays unchanged at $44/t.
“Kumba has sustained its six-year fatality-free document and continues to prioritise the security and well being of our individuals, our contractors and the communities through which we function,” Zikalala says.
Additional, Kumba has revised its manufacturing steering to be in keeping with anticipated rail efficiency over the following three years.
For 2023, it expects to provide 35-million to 37-million tonnes, in contrast with the 39-million to 41-million tonnes beforehand anticipated, with the C1 unit price remaining flat at $44/t, reflecting the good thing about anticipated decrease diesel costs and forex depreciation.
“Our focus in 2023 is to cut back the excessive ranges of iron-ore shares and rebalance the worth chain to make sure secure and resilient operational efficiency in addition to improved completed inventory ranges at Saldanha Port to facilitate our gross sales steering of 37-million to 39-million tonnes.
“Rail capability is anticipated to step up following the complete execution of this 12 months’s main annual upkeep programme and the good thing about an additional set of trains, in addition to the removing of velocity restrictions and the implementation of weather-related mitigations.
“This, mixed with ongoing enhancements in rail efficiency helps our manufacturing outlook of 37-million to 39-million tonnes in 2024 and 39-million to 41-million tonnes in 2025,” Zikalala outlines.
“By way of our tasks, we’re making good progress at our Kapstevel South pit following the security reset earlier within the 12 months at Kolomela. First ore is anticipated to be delivered in quarter one 2024 (beforehand half two 2023),” Zikalala notes.
“At Sishen, the ultrahigh dense media separation (UHDMS) venture entails the conversion of the prevailing Sishen dense media separation plant to a UHDMS plant. As we’ve progressed the extent of detailed design work, we’ve recognized extra complexities related to working in an working plant.
“We’re enterprise a full assessment of the venture plan and anticipate that the tie-in and commissioning of the venture won’t happen in 2023. The assessment consists of work to acquire readability on the complete extent of the affect on the general venture schedule. As soon as the assessment has been accomplished, an replace can be supplied,” Zikalala outlines.
“Total, we’re assured that the UHDMS expertise represents a big worth creation alternative for Kumba and can play a vital position within the transition to a low carbon future. The worth drivers for the expertise proceed to be the decreasing of the cut-off grade, rising product high quality and increasing the lifetime of mine,” she provides.
Kumba’s manufacturing and gross sales report for the fourth quarter and 12 months ended December 31, can be launched on February 2.