Kumba Iron Ore (JSE:KIO)
Kumba Iron (JSE:KIO) produces a high-grade iron ore that is one of the minerals that society needs to develop and prosper. Iron ore is the key component in steel, the most widely used of all metals. It is used in the construction of buildings and bridges, and manufacturing of vehicles and many household appliances.
The company's production process consists of: exploration; planning and building; mining; processing and blending; shipping; marketing and selling.
The company's exploration in South Africa is focused in the Northern Cape, close to its existing operations. On and near-mine exploration and resource definition drilling is conducted to increase confidence in the geological models; these are updated annually in support of life of mine and long-term planning.
Planning and building
The company's geologists and engineers design its mines using virtual mine planning systems. Kumba Iron builds mines that are effective, cost-efficient and environmentally sound – mines that minimise the company's environmental footprint while safeguarding its cash resources.
The company extracts iron ore by mining the iron ore bodies within its mining leases using open pit methods. Kumba Iron is implementing a technology roadmap that aims to accelerate the adoption of technology to improve safety, quality, efficiency and resource utilisation.
The company uses dense-media and ultrahigh density media processing and jigging technologies to regulate the physical properties of the finished product, removing impurities and improving product quality. It also supports the South African government’s objectives to maximise the developmental impact of the minerals sector.
Processing and blending
Blending allows Kumba Iron to utilise products from its operations to provide niche specification products to its markets. Products are screened and sized to match customer requirements, and then transported through its outbound logistics chain.
Shipping, marketing and selling
The group sells iron ore domestically and internationally. Export customers are in a range of geographical locations around the globe, including China, Japan, India, South Korea and countries in Europe and MENA. Domestically, Kumba Iron sells ore to ArcelorMittal SA.