Kumba’s Sishen mine on stable path

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Kumba Iron Ore said its Sishen Mine continues to perform well against its operational plan and remains on track to increase production.

The mine is set to increase production to 35 million tonnes (Mt) in 2014, 36 Mt in 2015 and 37 Mt from 2016.

Kolomela Mine’s production capacity it set to grow over 11 million tonnes per annum (Mtpa) from 2015 while studies are in progress to increase production further to 12 Mt in 2016 and to 13 Mtpa from 2017.

Sishen’s operating model was implemented in August 2014 at the ore and internal waste mining operations at North mine, and is already yielding results such as a 50 per cent reduction in waiting time on shovels and 23 per cent efficiency improvement in total tonnes handled since June 2014.  

(READ MORE: Kumba’s Sishen mine sees increase in Q3 production)

In 2015, [DATA KIO:Kumba Iron Ore LTD.] said the operating model is set to be rolled out to the pre-stripping operations at Sishen to meet ramp-up requirements, and to the Kolomela plant to increase throughput to 13 Mtpa in the medium term.

Kumba anticipates total iron ore production to be 47 Mt in 2014, 47-48 Mt in 2015, 48-50 Mt in 2016 and 48-50 in 2017.

In the current low price environment, Kumba said it will be reviewing all aspects of its business such as optimising its production portfolio, reviewing capital expenditure requirements and costs and reducing exploration, technical and product studies expenditure by 50 per cent.