Kumba reports 23% dip in production

Flooding of the Crocodile River near Thabazimbi, and the wettest March recorded at Sishen leads to drop in production

April21, 2011 09:25:55 AM
ByDES LATHAM

Kumba Iron Ore has reported a 23% drop in the quarter ending March 2011, and blamed the dip on web pit conditions that have hampered production.

Kumba says steel output amounted to 8,8 million metric tonnes compared with 11,5 million tonnes last year this time.

The company says total sales of 10.4 Mt decreased by only 5% as the reduction in saleable production during the quarter was supplemented by sales from finished product stockpiles.

Export sales volumes dropped by 8% mainly as a result of shipments being impacted by lower production volumes.

Kumba's operating performance during Q1 2011 was impacted by excessive rainfall at Sishen, Kolomela and Thabazimbi Mines which it is says resulted in conditions that hampered "mining activities and plant throughput".

Twice the annual rainfall was recorded in the areas mined during the first two months of 2011.

Production at Sishen Mine of 8.5Mt declined by 2.5Mt when compared with Q1 2010.

Sishen Mine's DMS and Jig plants' production were down 1.9Mt and 0.5Mt respectively, due to the inability of the mining equipment to safely access the mining areas and wet feedstock material that caused blockages in the plants.

The Crocodile River flooded near Thabazimbi Mine and led to a dip of production to 246Kt (kilotonnes), a large decrease of 237Kt. (sourced Busines Day)