Kumba Iron Ore

Kumba Iron Ore is an iron-ore mining company in South Africa. It is the fourth largest iron-ore producer in the world and the largest in Africa.[2][3]

Kumba Iron Ore
TypePublic
JSE: KIO
IndustryMining
HeadquartersCenturion, Gauteng, South Africa
Key people
Norman Mbazima (CEO), Frikkie Kotzee (CFO)
ProductsIron Ore
RevenueR 47,957 million (2014)
R 14,148 million (2014)
Number of employees
14,040 (2014)[1]
Websitewww.angloamericankumba.com

History

Kumba Iron Ore is a successor of Kumba Resources. Kumba Resources was listed on the JSE in 2001. Kumba Resources was reorganized in November 2006 when coal and heavy minerals operations were spun off to newly created companies Kumba Iron Ore (Heavy minerals) and Exxaro Resources(Coal).[4]

Kumba Iron Ore Ltd. listed on the JSE in November 2006 with a market capitalization of R36 billion.[5]

Operations

Kumba Iron Ore owns 74% in Sishen Iron Ore Company (SIOC). Rest of SIOC is owned by Exxaro, SIOC Employee Share Participation Scheme and the SIOC Community Development Trust. Through the SIOC, Kumba Iron Ore owns Thabazimbi, Sishen and Kolomela iron ore mines.

In 2010, Kumba Iron Ore was one of the more successful divisions of Anglo American plc, continuing to pay dividends to shareholders while Anglo American and Anglo Platinum had suspended dividends in 2008.[6]

Mining Operations
Sishen Mine

Sishen Mine is situated in Kathu in the Northern Cape Province. It is one of the largest open pit mines in the world[7] Kumba Iron Ore has reported that Sishen Mine has reserves for a 19-year life of mine. Mining methods at Sishen are opencast mining. Ore is transported to the beneficiation and jig plant.[8] The Sishen mine jig plant is the largest of its kind in the world.

By July 2016, production had been halved and workforce cut by 31%, in response to the slump in global iron ore prices.[9]

Thabazimbi Mine

Located close to Thabazimbi in the Limpopo Province, mining operations started in 1931.[10] Mining is by opencast methods. In a deal brokered in 2013, the high-grade haematite ore produced at Thabazimbi mine would be sold only to ArcelorMittal SA, while Kumba Iron Ore managed operations.[11] However, in February 2015, Kumba announced that the Thabazimbi mine was no longer economically viable.[12]

Kolomela Mine

Kolomela mine is located at Postmasburg in the Northern Cape Province. Mining operations started in 2011,[13] and the company has reported a 25-year mine lifespan.[14][15] 2019 iron ore production: 13.2 MT.

Controversy

In 2010, Kumba Iron Ore started legal proceedings against Imperial Crown Trading 289[16] and the Ministry of Mines for the issuance of a mining licence after ArcelorMittal SA did not complete paperwork by the due date and failed to convert their 21.4% undivided share.[17] This led to the assets reverting to the State, which then awarded the licence to a previously unknown company, Imperial Crown Trading 289.[18][19]

Ownership

Shareholders of Kumba Iron Ore are:

  • Anglo American plc (63.4%)
  • Industrial Development Corporation of South Africa Ltd (13.1%)
  • Minority shareholders (23.5%)[20]

References
  1. "Integrated Report 2014" (PDF). angloamericankumba.com. Retrieved 19 August 2015.
  2. "An MBendi Profile – Organisation: Exxaro Resources Limited". Retrieved 2 April 2009.
  3. Onstad, Eric (10 July 2009). "Anglo American names new chairman". Reuters. Retrieved 1 August 2009.
  4. "Kumba, Eyesizwe venture wins new coal rights". Reuters. 13 November 2006. Retrieved 1 August 2009.
  5. "Anglo American subsidiary, Kumba Iron Ore, lists on the JSE". www.angloamerican.com. Retrieved 1 September 2016.
  6. "The Investment Case – Kumba Iron Ore". 23 November 2010. Retrieved 1 September 2016.
  7. "The world's biggest iron ore mines". Mining Technology. Retrieved 1 September 2016.
  8. "Sishen Mine, Northern Cape". Mining Technology. Retrieved 1 September 2016.
  9. "Kumba Iron Ore halves production at Sishen and cuts workforce". Business Day Live. Retrieved 1 September 2016.
  10. "Thabazimbi". mining-atlas.com. Retrieved 1 September 2016.
  11. Holmes, Thalia. "Kumba, ArcelorMittal deal will revive Thabazimbi mine". Retrieved 1 September 2016.
  12. Wyngaardt, Megan van. "Kumba could close, sell Thabazimbi mine". Retrieved 1 September 2016.
  13. "Kolomela Mine is situated near Postmasburg town in the Northern Cape Province of South Africa. - Image - Mining Technology". www.mining-technology.com. Retrieved 1 September 2016.
  14. "Operations". www.angloamericankumba.com. Retrieved 1 September 2016.
  15. "Kolomela Iron Ore Mine, Northern Cape". Mining Technology. Retrieved 1 September 2016.
  16. "Imperial Crown Trading 289 (Pty) Ltd.: Private Company Information - Businessweek". www.bloomberg.com. Retrieved 1 September 2016.
  17. Staff Reporters. "Everything you wanted to know about the Sishen row". Retrieved 1 September 2016.
  18. Creamer, Terence. "S Africa's mines department reviews controversial issuance of iron-ore right". Retrieved 1 September 2016.
  19. "Sishen: the plot sickens". Retrieved 1 September 2016.
  20. "Anglo American - Kumba Iron Ore - Our business". www.kumba-online.co.za. Retrieved 1 September 2016.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.