Kumba Iron Ore says the export sales routes to its markets in Asia and Europe remain open and have not been affected by shipping disruptions caused by the conflict in the Middle East.
The group benefited from increased sales in the March quarter, though production was lower as the group managed its mine stockpiles to accommodate Transnet’s planned logistics maintenance shutdown in May.
Kumba said on Tuesday sales increased by 3% to 9.3-million tonnes (Mt) in the quarter ended March, on the back of improved finished stock levels and equipment availability at Saldanha Bay Port.
Ore railed to port by Transnet decreased by 1% as adverse weather conditions led to a rail washaway in February, affecting 0.4Mt of iron ore rail volumes. Despite this, high port stock volumes and improved port equipment performance resulted in higher sales.
Total production of 8.8Mt was 2% lower, reflecting a 15% decrease at Kolomela to 2.6Mt due to a planned drawdown of finished stock to accommodate production that will continue during the scheduled 10-day Transnet maintenance shutdown in May. Sishen’s production increased by 5% to 6.3Mt thanks to improved feedstock quality and plant performance.
Kumba said the iron ore market fundamentals remain supported by demand from China, other parts of Asia and Europe, while supply was constrained by seasonal weather disruptions in the southern hemisphere towards the end of the first quarter.
Iron ore prices and lump premium, which were initially under pressure due to weak steel mill margins in China, recovered in March on restocking and increased blast furnace use rates, it added.
“In terms of our strategic priorities, as we position for a sustainable future, construction of Sishen’s ultra-high-density media separation (UHDMS) project continues, with preparations under way for the main plant tie-in scheduled for the second half of 2026,” said CEO Mpumi Zikalala.
She added that Kolomela received its first wheeled renewable electricity from Envusa Energy, a joint venture between Anglo American and EDF Renewables, achieving a 72% reduction in scope 2 carbon emissions in March.
“Our supply chains have been secured for the remainder of this year, and we continue to closely monitor developments and manage potential associated risks, including cost inflation,” she said.
Kumba has maintained its full-year 2026 guidance of total sales of 35Mt-37Mt and production of 31Mt-33Mt. Sishen’s production will be weighted to the first half, due to the tie-in of the UHDMS project in the second half, with sales not expected to be affected owing to the planned drawdown of finished stock.
Capital expenditure for the year is seen at R13.2bn-R14.2bn.
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