Metals

Anglo American sees iron ore stockpiles

CBCIE Time:Jul 27, 2023 09:42 Source:mining-technology

UK-based diversified miner Anglo American’s South African Kumba Iron Ore subsidiary is experiencing transport issues that have caused a 17% fall in profits over the past six months, Reuters reported.

Issues with securing reliable and consistent rail transport have seen growing stockpiling of iron ore at its projects. Kumba Iron Ore stated that it has 7.1 million tonnes (t) of iron ore stockpiled at its mines, an increase of almost 100,000t since December 2022.

Locust swarms, cable thefts and derailments, among other infrastructural issues, have forced Kumba and other mines to stockpile ore awaiting reliable transport. A Bank of America Securities analyst told Reuters: “Given complex and deep-rooted issues with South Africa’s rail network, we think that a more permanent solution could be unfruitful for some time yet.”

Kumba CEO Mpumi Zikalala stated her belief that partnership between the government and private actors can help resolve the crisis. “We have been collaborating with Transnet and we had some successes around tamping and locust spraying and a whole lot of other things,” Zikalala said. However, she added that the further problems of derailments and breakdowns must still be addressed.

Kumba is the top producer of iron ore in Africa, but state-owned rail operator Transnet has been beset with issues that have caused stockpiling at mines beyond just iron ore. Transnet’s 850km rail line transports several critical minerals to ports across the country. Platinum mining in South Africa, which Anglo American contributes to, has been beset by transport infrastructure issues that have led to a predicted undersupply for 2023.

In October, Transnet staff went on strike, forcing the company to declare force majeure on its transport links to the Kumba sites. Anglo American estimated that the 11-day strike alone impacted exports by around 120,000t per day. The subsequent stockpile cost the company $540m. Transnet is also the country’s port operator and manages all mining exports in the country.

All articles, pictures, reports and other original works on the website that are attributed to CBCIE are non-public information, only for members. No one may reproduce or otherwise use the original content of this website without our permission. If you need to use it, please call
+86 18135172048 to apply for authorisation. CBCIE reserves the right to pursue any infringement and citation contrary to the original intent.

Disclaimer:CBCIE is committed to building a comprehensive and authoritative metal information platform, and strives to provide a full range of data and information services and decision-making support for metal industry researchers and practitioners. However, the information on this website is for reference only and is not intended as direct advice for investors' decision-making. Any investment, purchase, sale or operation based on the information on this website should be at your own risk and is not related to CBCIE.

CBC Iron Ore Product Navigation

Contact us

Contact us for more CBC information and services.

Get in touch
CBC专家咨询 关闭
2025-2030年报预订 关闭
close
WeCom

CS Manager:
Zizhen Zhang

+86 18135172048