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Kapstevel South project, South Africa – update

Images of mining truck at the Kolomela iron-ore mine

Photo by Kumba Iron Ore

3rd March 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Kapstevel South (KSS) project.

Location
About 22 km from Postmasburg, in the Northern Cape, South Africa.

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

Project Description
KSS is a four-million-tonne-a-year high grade iron-ore replacement project.

The project entails the development of a new pit ­– KSS – and associated infrastructure at Kolomela to sustain output of about 12-million tonnes a year and extend the remaining life-of-mine to 2034.

The pit is a conventional truck-and-shovel operation producing high-quality direct shipping ore. 

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 is estimated at R7-billion.

Planned Start/End Date
The project was approved in July 2020. Pit establishment and waste stripping started in 2021, with first ore expected in 2024.

Latest Developments
Good progress has been made.

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.             

Edited by Creamer Media Reporter

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