With the global steel industry’s transition toward lower-carbon production placing a premium on high-grade iron-ore, South African iron-ore major Kumba Iron Ore’s product, with an average iron content of 64% and a 67% lump ratio, is “uniquely positioned” to support cleaner steelmaking, says Kumba Iron Ore communications head Melangini Pillay.

With operations in the Northern Cape, Kumba delivers premium-quality iron-ore to global markets, while driving transformation, sustainability and shared value for stakeholders, she says.

“Every 1% increase in iron content reduces carbon emissions by 2% to 3% on average, and lump ore enables more efficient blast furnace operations, cutting emissions by a further 10% on average,” explains Pillay.

In this vein, Kumba’s R11.2-billion investment in ultrahigh dense media separation (UHDMS) technology at the miner’s Sishen mine is a flagship beneficiation initiative, aiming to unlock previously uneconomical ore by tripling the proportion of premium-grade volumes and extending the mine’s life to 2040.

“This positions Kumba as a key enabler of low carbon steelmaking supply chains and demonstrates our focus on value over volume,” she says.

The UHDMS project is a “great example” of beneficiation, states Pillay.

“It enhances product quality and also creates local value by extending mine life and supporting employment.

“While domestic beneficiation faces challenges such as inefficient steel technology, high logistics costs and limited downstream demand, Kumba remains committed to supporting local industry where feasible. The company’s partnerships with junior miners, industry peers, government, Transnet logistics and inclusive procurement frameworks are fostering broader participation in the mining value chain,” she adds.

In this vein, Pillay says infrastructure remains a critical enabler for the sector.

“Kumba has played a leading role in collaborative efforts to restore and optimise rail and port logistics, working closely with Transnet, the Ore Users’ Forum and the National Logistics Crisis Committee.

“The company advocates for a fit-for-purpose regulatory regime that balances stakeholder interests and supports long-term investment. Recent improvements in rail performance and ongoing policy reforms are encouraging, but sustained progress will require continued partnership and innovation,” she says.

Investment Trends, Policy Developments

Pillay points out that while iron-ore prices are supported by China’s steel exports and stable iron-ore supply from the majors, long-term strength will depend on population and economic growth and the transition to low carbon emissions steelmaking, according to analyst predications.

“The startup of new projects like Simandou may impact the pricing of iron-ore fines products, but Kumba’s focus on premium lump ore provides a competitive edge,” she adds.

However, Pillay adds that regulatory and policy certainty, dependable infrastructure along with investment in infrastructure and beneficiation incentives are important to attract capital and unlock Africa’s mineral potential.

“Kumba’s investments in beneficiation, market diversification and sustainable mining positions the company as a key player in Africa’s iron-ore future.

“By tackling global decarbonisation pressures, adapting to shifting iron-ore demand and prioritising local value addition, Kumba secures its own future while contributing to the broader transformation of the sector,” says Pillay.

As policy reforms and infrastructure improvements gather pace, she notes that Kumba’s collaborative approach and commitment to shared value will be central to unlocking long-term opportunities for South Africa and the African continent.