In an environment characterised by global economic uncertainty and market volatility, South Africa’s high-flying Kumba Iron Ore is very well positioned to continue delivering stakeholder value amid its latest declaration of a R5.3-billion dividend on half-year free cash flow of R7.9-billion.

This exemplary Johannesburg Stock Exchange-listed Anglo American group entity, headed by impressive CE Mpumi Zikalala, not only has the ability to earn additional price premiums considerably above benchmark prices on the quality lump ore given to the Northern Cape by nature, but also through a special technology that turns waste into wealth through human ingenuity.

Progress on Sishen’s value-adding ultra-high, dense medium separation (UHDMS) project is under way.

All major construction packages have been awarded, and the first module conversion remains on track for completion during the fourth quarter of this year, with full capacity expected at the end of 2028.

The modular substation is under construction and preparation is progressing for the completion of the conversion of the first fines and coarse modules in the fourth quarter.

UHDMS technology is a game changer and a critical enabler for Kumba’s long-term success.

“We’re all absolutely excited about the scale and the innovation that this project presents,” Zikalala told journalists.

Continued investment in UHDMS technology will also assist with reducing unit cost, particularly looking at the reduction of waste mining at Sishen, and it will secure life-of-mine extension position and ensure the optimal use of available logistics capacity.

Carbon-Light Steel

The world needs steel to build, grow and develop and FERROUS METALS is the key steelmaking ingredient.

Kumba’s distinctive lump iron-ore products play an above-normal role in the manufacturing of carbon-light steel products, allowing the company to earn $7/t more than benchmark in the half-year.

Kumba standard and premium products are very well suited for the blast furnace group, with some of its premium-based products used in direct reduced iron (DRI) production. Together blast furnace and DRI production make up 60% of the global production effort.

The UHDMS project will provide scale and flexibility to meet growing demand as the industries evolve.

On the logistics front, the collaborative partnership with government, the ore users’ forum and Transnet is “valued” by Kumba.

Described as pleasing is the stabilisation of Transnet’s logistics performance under the ore corridor restoration programme, along with the finalisation of the mutual cooperation agreement to expedite critical maintenance.

Kumba is also encouraged by the pace of logistics reform through the private sector partnership process being undertaken by the Department of Transport.

At the end of May, along with the ore users’ forum, a submission to government was made by Kumba in response to a request for information.

The request for proposal process is expected later in the year.

Renewable Energy

The planned 63 MW solar photovoltaic plant at Sishen will reduce scope 2 carbon emissions by 33%, a 15% saving on Sishen’s total scope 1 and 2 carbon emissions in the first phase. Wheeled wind will be delivered in the second phase, once the grid capacity has been increased in the Northern Cape.

Bulk earthworks for the photovoltaic plant have been completed at the Sishen site, which is ready for project construction to commence.

Financial close and site establishment are anticipated in the second half of the year, with construction expected to be completed by the end of 2026.

At Kolomela, renewable electricity, powered by a combination of Envusa’s wind and solar projects wheeled on the Eskom electricity grid, is expected to reduce scope 2 emissions by more than 95%, representing a 32% saving on Kolomela’s total carbon emissions.

Envusa Energy is Anglo American’s jointly owned renewable energy venture with EDF Power Solutions – a global renewable energy technology company – to develop and supply wind and solar energy solutions at scale in South Africa.

Kumba is continuing to work towards its 2030 carbon emission reduction targets in line with Envusa’s first renewable power project.

The commissioning of three projects – two wind and one solar – will provide Kolomela with 11 MW of power.

Water Stewardship

Water is a fundamental resource for operations and surrounding communities. Kumba plays a critical role in alleviating water shortages by providing excess clean groundwater into the Vaal Gamagara pipeline to support the Vaal Central Water (formerly Sedibeng) regional water supply.

Overall, Kumba supplied 8 514 megalitres (ML) of water to the broader Northern Cape region. Freshwater withdrawals decreased to 3 092 ML.

Dewatering at Sishen has improved and stabilised. However, powerline trips, electrical faults, the Vaal Gamagara pipeline constraints and tie-in of the new Kapstevel South (KSS) booster pump station resulted in low dewatering rates at Kolomela.

The commissioning of the new KSS booster pump is expected to alleviate hydraulic pressure and improve dewatering pump efficiency. In line with commitment to overcoming these challenges, Kumba progressed updating the regional water balance during the period and will continue the work on the Khumani water transfer project which seeks to divert surplus stormwater to a neighbouring mine.Work on stormwater mitigation measures is also continuing.