BrandWikiReturn

Kumba Iron Ore

Kumba Iron Ore is an iron-ore mining company in South Africa. It is the fifth largest iron-ore producer in the world and the largest in Africa.[5][6]

History

Kumba Iron Ore is a successor of Kumba Resources, which was listed on the Johannesburg Securities Exchange in 2001. Kumba Resources was reorganized in November 2006 when heavy minerals operations were spun off to the newly created company Kumba Iron Ore and coal to Exxaro Resources.[7]

Kumba Iron Ore Ltd. listed on the JSE in November 2006 with a market capitalization of R36 billion.[8]

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.[9]

Mining Operations

Sishen Mine is situated in Kathu in the Northern Cape Province. It is one of the largest open pit mines in the world.[10] 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.[11] 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.[12]

Thabazimbi mine

Located close to Thabazimbi in the Limpopo Province, mining operations started in 1931.[13] 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.[14] However, in February 2015, Kumba announced that the Thabazimbi mine was no longer economically viable.[15]

Kolomela mine

Kolomela mine is located at Postmasburg in the Northern Cape Province. Mining operations started in 2011,[16] and the company has reported a 25-year mine lifespan.[17][18] 2019 iron ore production: 13.2 MT.

Controversy

In 2010, Kumba Iron Ore started legal proceedings against Imperial Crown Trading 289[19] 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.[20] This led to the assets reverting to the State, which then awarded the licence to a previously unknown company, Imperial Crown Trading 289.[21][22]

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%)[23]

Carbon footprint

Kumba Iron Ore reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 910 Kt (-90 /-9% y-o-y).[24]

External links

References

  1. Executive committee angloamericankumba.com, retrieved 30 March 2021^
  2. Kumba Iron Ore's annual results for the twelve months ended 31 December 2020 angloamericankumba.com, retrieved 30 March 2021^
  3. AUDITED ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020 Angloamerican Kumba, Kumba Iron Ore Limited, retrieved 30 March 2021^
  4. Integrated Report 2014 angloamericankumba.com, retrieved 19 August 2015^
  5. An MBendi Profile – Organisation: Exxaro Resources Limited retrieved 2009-04-02^
  6. Eric Onstad. Anglo American names new chairman Reuters, 10 July 2009, retrieved 1 August 2009^
  7. Kumba, Eyesizwe venture wins new coal rights Reuters, 13 November 2006, retrieved 1 August 2009^
  8. Anglo American subsidiary, Kumba Iron Ore, lists on the JSE angloamerican.com, retrieved 1 September 2016^
  9. The Investment Case – Kumba Iron Ore 2010-11-23, retrieved 2016-09-01^
  10. The world's biggest iron ore mines Mining Technology, 19 February 2014, retrieved 2016-09-01^
  11. Sishen Mine, Northern Cape Mining Technology, retrieved 2016-09-01^
  12. Kumba Iron Ore halves production at Sishen and cuts workforce Business Day Live, retrieved 2016-09-01^
  13. Thabazimbi mining-atlas.com, retrieved 2016-09-01^
  14. Thalia Holmes. Kumba, ArcelorMittal deal will revive Thabazimbi mine 5 November 2013, retrieved 2016-09-01^
  15. Megan van Wyngaardt. Kumba could close, sell Thabazimbi mine retrieved 2016-09-01^
  16. Kolomela Mine is situated near Postmasburg town in the Northern Cape Province of South Africa. - Image - Mining Technology mining-technology.com, retrieved 2016-09-01^
  17. Operations angloamericankumba.com, retrieved 2016-09-01^
  18. Kolomela Iron Ore Mine, Northern Cape Mining Technology, retrieved 2016-09-01^
  19. Imperial Crown Trading 289 (Pty) Ltd.: Private Company Information - Businessweek Bloomberg L.P., retrieved 2016-09-01^
  20. Staff Reporters. Everything you wanted to know about the Sishen row 18 August 2011, retrieved 2016-09-01^
  21. Terence Creamer. S Africa's mines department reviews controversial issuance of iron-ore right retrieved 2016-09-01^
  22. Sishen: the plot sickens retrieved 2016-09-01^
  23. Anglo American - Kumba Iron Ore - Our business kumba-online.co.za, retrieved 2016-09-01^
  24. Alt URL Kumba Iron Ore's Universal Registration Document for 2020Q4^
  25. Alt URL Kumba Iron Ore's Universal Registration Document for 2020Q4^