Kumba Iron Ore continues shipments from mines and stocks

Kumba Iron Ore continues shipments from mines and stocks

2020-03-27 02:17:00 PM

Kumba Iron Ore continues shipments from mines and stocks

It also had 6.4-million tonnes of processed ore stockpiled by the end of 2019 as domestic demand dried up

Allan SeccombeThemba Mkhwanazi. Picture: ELAINE BANISTER / BUSINESS DAYKumba Iron Ore, Africa's largest supplier of the steelmaking mineral, will continue mining, railing and shipping of its products, tapping into its stockpiles at the Saldanha port to supply customers.

Reopening of schools: Angie Motshekga’s vinegar approach grates WRAP: Coronavirus cases now at 25 937, family shares heartache, shortage in testing kits Govt was not pressured to allow religious gatherings: Mthembu

Kumba, which is a JSE-listed subsidiary of Anglo American, operates the Sishen and Kolomela mines in the Northern Cape. It is linked to the port via a 860km railway line.Kumba had advised the market to expect full-year production of between 41.5-million and 42.5-million tonnes of ore for 2020, but it lowered this forecast by up to three-million tonnes.

It had 6.4-million tonnes of processed ore stockpiled by the end of 2019 as domestic demand dried up because of the closure of ArcelorMittal's Saldanha steel mill.This is because the mines will operate with half of normal staffing levels to meet the SA government's order for a 21-day national lockdown to combat the spread of Covid-19, which has claimed the first two lives in SA and infected more than 1,000 people.

The department of minerals and energy has granted permission to certain mines and smelters to continue operations with reduced staffing levels. Mines that are labour intensive, such as gold mines, have been temporarily closed.Kumba has received permission from the department to continue mining, but with a 50% reduction in staffing levels, while Transnet Freight Rail has agreed to provide trains and port facilities to move ore out of SA.

To put Kumba in context, the global seaborne iron ore market is about 1.5-billion tonnes a year. However, Kumba does sell, as highly sought after lumpy iron ore, which is fist-sized rocks of iron-bearing ore, as opposed to the fine, sand-like ore other miners about the world produce.

Lumpy ore fetches a premium in the market.According to S&P Global, supply disruptions in India, SA and Canada could take 120-million tonnes of ore out of the global market. Australia and Brazil are the two largest suppliers.Reports from China, the epicentre of the Covid-19 pandemic, are that industry is restarting. China is the largest steel maker and imports more than one-billion tonnes of ore a year.

Prices of ore with a 62% iron content have increased and are now about $84/tonne, with contracts for May deliveries to China rising above $93/tonne.Kumba would continue to supply its nearby communities with water and other services, including healthcare and emergency medical services, under its social and labour plans that underpin its mining rights, said CEO Themba Mkhwanazi.

WC premier says parts of province should be Level 1 Zionist Church wants COVID-19 compensation Mystery after NDZ cancels two national addresses this week

“We also have a clear responsibility to protect the integrity of our business and assets so that we are ready to restart and ramp up any affected operations safely and as quickly as possible once permitted to do so,” he said. Read more: Business Day »

Typical SA! Last-minute queues everywhereFREE TO READ | Traffic queues, booze queues, shopping queues. SA’s streets were a hive of activity on Thursday as the nation prepared for an unprecedented 21-day lockdown, which may be extended. Last minute? You probably think everyone in SA has money lying around neh! Mxm

‘Shootout’ at Giyani mine leaves three deadThe three men were certified dead at the scene and the motive for the shootings is not clear.

Lockdown: No inmates to be transported to courtLamola said the Master's Office, however, would continue with essential services. No need to explain the obvious, already in court we use videos calls for other inmates. I told you RonaldLamola is stupid, what is lock down, clearly he did not see communication from Chief Justice today. Where did you get this guy.

SUMMARY: Ministers respond to COVID-19 lockdownThe ministers of mining, public services and administration, arts, culture, and sports, and communications briefed the media on Wednesday.

Glencore closes some operations in four countries over coronavirus curbs - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Glencore PLC on Thursday halted a number of smaller mines due to government restrictions to curb the spread of the coronavirus, but added its larger operations were not materially impacted SABCNews

Hantavirus: What is it and why it is trending?Amid the global pandemic and lockdown announcements in several countries because of Covid-19, another virus in China is creating worldwide worry all over the world. Cori already calling for back up😕