Name of the Project
Kapstevel South (KSS) project.

Location
The project is located 22 km from Postmasburg, in the Northern Cape, in South Africa.

Project Owner/s
Anglo American subsidiary Kumba Iron-Ore.

Project Description
The project entails the development of a new pit ­– KSS – and associated infrastructure at Kolomela. The pit is a conventional truck-and-shovel operation producing high-quality direct shipping ore. 

While the pit is included in Kolomela’s current life-of-mine (LoM), it contributes significantly to sustaining production of about 13-million tonnes for the remainder of the mine’s life of 13 years. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
It is expected that the addition of the KSS pit will deliver an after-tax internal rate of return of about 25% and earnings before interest, taxes, depreciation and amortisation margin of more than 35%.

Capital Expenditure
Capital expenditure (capex) is estimated at R7-billion.

Planned Start/End Date
Kumba Iron Ore announced the approval of the project on July 28, 2020.

First ore is expected in the second half of 2023. 

Latest Developments
Kumba has further developed the KSS pit, with waste of 23.6-million tonnes mined to date.

The company has also increased Kolomela’s reserve life from 2031 to 2034, with a clear pathway to 2040 through the addition of the Kapstevel South project, which is more than 35% complete, and development of the Ploegfontein and Heuningkranz orebodies.

Construction on the workshops and infrastructure is in progress and Kumba’s exploration work continues on high-potential Northern Cape targets, with more than R1.5-billion spent on exploration over the past ten years.

Expansion capital expenditure of between R5.1-billion and R5.6-billion has largely been allocated to develop the KSS pit and the Sishen ultra-high, dense-media separation project.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Anglo American (media), Sinah Phochana, tel +27 12 683 7019 or email sinah.phochana@angloamerican.com.
Anglo American (investors), Penny Himlok, tel +27 12 622 8324 or email penny.himlok@angloamerican.com.