Anglo American’s Kumba iron ore project delivered a strong operational performance in H1 2020 and has given a positive long-term outlook on the mine’s operations and capacities.
Themba Mkhwanazi, chief executive of Anglo American’s Kumba project, said that the firm adapted quickly to meet operational challenges caused by the COVID-19 pandemic, which helped it to stay on track with the reduced guidance during the period.
Iron ore output from the Kumba mine in Northern Cape, South Africa fell 12.2pc to 17.9mn mt in H1 2020, compared with the first six months of 2019. Sales of the material decreased by 15pc to 18.6mn mt in the same period.
The average realized price of iron ore shipped from Kumba during the period was $93/mt as the company benefitted from positive market prices and weakness of the South African Rand.
Mkhwanazi added that the project met its new production targets for the period and that the company returned to its pre-pandemic operational rates in June. The company delivered a projected 55pc rate of profitability with an EBITDA of ZAR17.4bn ($1.05bn).