The UHDMS expertise is anticipated to extend the amount of premium iron ore to about 55% of its flagship Sishen mine’s manufacturing, up from the present ranges round 18%, boosting margins, Kumba mentioned in an announcement.
With 1.8 billion rand having been spent on the engineering design, earthworks and a technical evaluate, the remaining 9.4 billion rand will probably be invested between the second half of 2024 and the top of 2028, when the challenge is anticipated to achieve full capability.
CEO Mpumi Zikalala mentioned the funding confirmed Kumba was specializing in “worth over quantity”.
“Premium iron ore is more and more extremely valued by our clients as a result of it reduces carbon emissions from the steelmaking course of and so performs a key function in inexperienced metal manufacturing,” she mentioned within the assertion.
Kumba, Africa’s prime iron ore producer, has needed to curtail its manufacturing because it seeks to match output to South Africa’s freight rail firm Transnet’s constrained capability to move minerals to port.
Transnet is struggling to offer ample freight rail and port companies because of gear shortages and upkeep backlogs after years of under-investment. It is usually battling cable theft and vandalism of its infrastructure.
Kumba expects to export 36-38 million tons of iron ore this 12 months, after transport 18.1 million tons throughout the first six months of 2024.
($1 = 17.7448 rand)
(By Nelson Banya; Enhancing by Mark Potter)