Kumba to invest additional R7.6bn in technology to triple output of high-quality iron ore

Anglo American and its stable of companies are always keen on cutting-edge science and technology, and Kumba’s latest announcement follows this pattern. 

The technology involved is a mouthful rather than a term of art – ultra-high-dense-media-separation (UHDMS) processing – and the bottom line is that it promises to significantly boost the production of premium-quality iron ore at Kumba’s Sishen mine in the Northern Cape. 

Premium-quality iron ore fetches a higher price than the run-of-the-mill standard version and Kumba reckons it will add $2 to $3 per tonne to its sales from the technology. 

“Kumba has now completed a full technical review of its ultra-high-dense-media-separation processing technology project at its Sishen mine… Following this review Kumba is pleased to announce board approval for a further R7.6-billion investment in the project, in addition to the R3.6-billion previously approved in February 2021, bringing the total capital investment to R11.2-billion,” the company said. 

Kumba says the application of this processing technology will triple the proportion of premium-quality production volume at Sishen mine to 55% from the current 18%. 

Premium iron ore is more efficient in the steelmaking process and has a lower carbon footprint, which is crucial as the industry seeks to decarbonise in the face of regulatory measures and customer demands. 

This is also in line with Anglo American’s decarbonisation agenda and its drive to lift profits in the assets it intends to keep as it embarks on a major restructuring.

“This investment demonstrates our focus on value over volume. Through utilising UHDMS processing technology, we can treble the proportion of premium iron ore product from our world-class Sishen mine. Premium iron ore is increasingly highly valued by our customers because it reduces carbon emissions from the steelmaking process and so plays a key role in green steel production,” said Kumba CEO Mpumi Zikalala. 

“Notwithstanding this, our work continues with Transnet, the Ore User’s Forum and government through the National Logistics Crisis Committee to improve the logistics performance. We are encouraged by the policy reforms and the value that this will bring to the turnaround of the performance of the logistics network.”

The technology also has the potential to extend the life of Sishen mine to 2044 from 2038 and Kumba expects the investment to pay for itself by 2029. DM