JOHANNESBURG (miningweekly.com) – As planned, the iron-ore production of Kumba Iron Ore in the three months to September 30 was lower, largely owing to the ultrahigh-dense-media-separation (UHDMS) project tie-in at Sishen, but third-quarter sales were supported by the drawdown of finished stock lifting sales to a 3%-higher ten-million tons.

Market conditions softened through the quarter as weaker Chinese steel production, compressed mill margins and strong seaborne supply weighed on prices, but despite these headwinds, Kumba continued to realise a premium to benchmark prices, underpinned by the quality of its lump iron-ore products and its diversified customer base.

Additionally, Kumba is progressing its full potential programme aimed at unlocking value, underpinned by disciplined cost and capital management.

The average free-on-board export price of $86 per wet metric ton (wmt) was 9% above the average benchmark price of $79/wmt.

The main UHDMS project tie-in remains on track for completion before the end of 2026.

Full-year guidance of 31-million to 33-million tons of production and 35-million to 37-million tons sales remain on track.

Following commissioning, the converted UHDMS modules will operate in parallel with the existing dense media separation modules, providing processing flexibility and supporting production and sales guidance.

The final conversion of the modules is expected in 2028.

Overall progress of the execution of the Sishen UHDMS project has reached the 60% mark and construction has reached the halfway mark.

Capital expenditure (capex) remains within the 2026 guidance of R3-billion to R3.2-billion, with UHDMS project capex unchanged at R11.2-billion.

“We delivered a resilient third-quarter performance, supported by safe and focused operational and project execution,” Kumba CE Mpumi Zikalala stated in a release to Mining Weekly.

Zikalala described investment in the UHDMS project as remaining a key driver of Kumba’s long-term competitiveness.

“The main tie-in is progressing safely and according to plan, with completion expected before the end of 2026 and capex remaining within guidance.

“Once the final conversion of the modules is completed as planned in 2028, UHDMS will increase the proportion of Sishen’s premium-grade iron-ore products, improve resource utilisation, reduce waste mining and extend Sishen’s mine life,” Zikalala pointed out.

Total third-quarter production decreased by 19% to 7.5-million tons, while finished stock of 4.8-million tons was made up of 2.9-million tons of on-mine stock and 1.9-million tons at the Port of Saldanha Bay, reflecting the planned drawdown needed to supplement sales during the Sishen DMS plant shutdown.

RENEWABLE POWER

Regarding the offtake agreement with Envusa to receive renewable energy from a 63 MW solar PV plant at Sishen, project execution is on track with the first structures for the solar panels expected to be delivered for construction before the end of the year. On project completion in 2028, together with Kolomela's wheeled energy supply, Kumba's total renewable-energy penetration is expected to increase to 45%.

In light of the current trading environment, the heavy mining fleet recapitalisation programme is continuing to be assessed through a risk-based, life cycle extension programme, informed by condition assessments and refurbishment capitalisation.

“This approach ensures that critical equipment is replaced where life extensions are not economically viable, and redundancy risk has been confirmed by the original-equipment manufacturer. Detailed technical engineering work is underway on automation and decarbonisation benefits as part of the overall value-based decision criteria,” the company stated.