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Kumba lowers full-year sales guidance as sales to AMSA fall

1st November 2019

By: Tasneem Bulbulia

Deputy Editor Online

     

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Lower iron-ore sales to ArcelorMittal South Africa (AMSA) in the third quarter have prompted Kumba Iron Ore to lower its full-year sales guidance to between 42-million and 43-million tonnes of iron-ore, compared with the previously expected 43-million to 44-million tonnes.

The iron-ore miner, an Anglo American subsidiary, last week reported a 3% year-on-year decrease in sales volumes to 10.2-million tonnes in the third quarter, mainly as a result of a 36% year-on-year decrease in domestic sales to AMSA.

Export sales remained flat at about 9.7-million tonnes.

Meanwhile, production of 10.5-million tonnes of iron-ore was similar to that of the third quarter of 2018. The Sishen mine increased output 2% year-on-year to 7.2-million tonnes, but Kolomela posted a 3% decrease to 3.4-million tonnes, owing to an upgrade of the mine’s dense- media separation plant.

Kumba expects to meet its full- year output guidance of 42-million to 43-million tonnes.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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