Name of the Project
Sishen Ultrahigh Dense-Media Separation (UHDMS) Project.

Location
Northern Cape, South Africa.

Project Owner/s
Anglo American subsidiary Kumba Iron Ore.

Project Description
Kumba Iron Ore is upgrading its existing dense-media separation plant at the Sishen mine to UHDMS technology.

The project is aligned with Kumba’s strategy of pursuing value over volume, and is expected to improve flexibility in meeting customer specifications. This margin-enhancing investment will enable the processing of a broader range of ore grades and densities, using specialised ferrosilicon.

The project will follow a modular approach over five years to ensure safety and operational stability. Six of eight coarse modules and five of seven fines modules will be converted to UHDMS.

The UHDMS upgrade is expected to treble the proportion of premium iron-ore in Sishen’s production mix – from about 18% currently to about 55%. Premium-grade ore is increasingly in demand owing to its ability to lower carbon emissions in steelmaking, and this shift supports higher product premiums and improved returns. 

The UHDMS process will reduce the mine's cutoff grade from 48% to 40% iron, improving the waste stripping ratio from 3.9 to 3.3 and reducing waste mining volumes by about 15-million tonnes a year. This will lower mining costs by an average of $2.50/t to $3/t, while maintaining Sishen’s 70:30 lump:fine product ratio and an average iron content of 64%. 

The upgrade also provides a pathway to potentially extend the life-of-mine from 2040 to 2044.

Potential Job Creation
Not disclosed.

Net Present Value/Internal Rate of Return
The project is expected to deliver an internal rate of return exceeding 30%, with full payback projected by the end of 2029. 

Capital Expenditure
Following a full technical review, Kumba announced an additional investment of R7.6-billion in August 2024, bringing the total project investment to R11.2-billion. The initial R3.6-billion was approved in February 2021.

Planned Start/End Date
Project execution resumed in November 2024 following the additional capital approval. The main plant tie-in is scheduled for 2026, with full production capacity expected by the end of 2028. During the transition, unconverted modules and the JIG plant will continue to operate, supplemented by product stockpiles.

Latest Developments
As of the quarter ended December 31, 2024, construction activities have started and are progressing according to schedule.

Key Contracts, Suppliers and Consultants
To be confirmed.

Contact Details for Project Information
Kumba Iron Ore head of communications – South Africa Nevashnee Naicker, tel +27 11 638 3189 or email nevashnee.naicker@angloamerican.com.