JOHANNESBURG (miningweekly.com) – JSE-listed Kumba Iron Ore on Friday reported a 19% year-on-year drop in fourth-quarter output to nine-million tons, mainly as a result of an illegal strike at the Sishen mine.

Fourth-quarter output was also 28% lower than that of the third quarter of 2012.

The Sishen mine’s production for the quarter fell by 38% year-on-year to six-million tons, with around five-million tons of production lost as a result of the prolonged impact on the production ramp-up following the illegal strike.

Low attendance in the mining section subsequent to the strike action also hampered output at Sishen in the latter part of 2012, but was somewhat compensated for by a strong showing at the Kolomela operation, which increased year-on year output by 139% to yield a record 2.8-million tons in the quarter.

“The faster-than-planned ramp-up of the Kolomela mine contributed to offsetting the negative impact on production at Sishen mine,” the company said in a statement.

Kolomela was on track to produce at design capacity of nine-million tons a year in 2013. 

Production at the Thabazimbi mine decreased by 5% year-on-year and by 24% quarter-on-quarter to 200 000 t, mainly owing to pit complexities as the mine neared the end of its life.

Meanwhile, total export sales volumes amounted to nine-million tons – a decrease of 6% year-on-year and 10% quarter on quarter – owing principally to the impact of the strike. Sales volumes were, however, partially supplemented by production from Kolomela and sales from finished product stockpiles.

“Destocking by steel mills during the beginning of the quarter saw a decline in the demand for seaborne iron-ore and consequently weaker index iron-ore prices,” said Kumba.

It added that the market had since recovered, with steel mills returning to the market, which was reflected in the increase in index iron-ore prices. 

Domestic sales volumes fell by 33% year-on-year and 28% quarter-on-quarter to 800 000 t owing to reduced off-take by ArcelorMittal South Africa.

Total finished product stockpile levels amounted to 3.7-million tons at December 31.