South Africa’s, Kumba Iron Ore plans to start developing the Kapstevel pit at its Kolomela iron ore mine in Postmasburg, South Africa.
The Anglo American subsidy noted in a press release on July 28 that it had approved an investment of ZAR7bn ($423mn), to develop the open pit. The amount includes the cost of pre-stripping.
Themba Mkhwanazi, chief executive of Kumba, said that the move will help the company sustain its level of production from Kolomela, which currently has an estimated 13mn mt high-quality iron ore reserve that can be mined over the remainder of its life.
Mkhwanazi added that the approval was attributed to Kumba’s positive long-term demand outlook for its iron ore shipments despite the current global situation caused by the COVID-19 pandemic. The company estimates a 25pc profitability from using the pit in the coming months.