Kumba Iron Ore lifts sales amid improved logistics, steady operations

Kumba Iron Ore, the Anglo American–owned iron ore producer, has reported improved logistics stability and operational efficiency despite slightly lower output for the third quarter of 2025.

Chief executive Mpumi Zikalala said on Tuesday that the company’s performance benefited from enhanced equipment efficiency and operating stability, even as total production for the quarter to end-September declined by 2% year-on-year to 9.2 million tons.

Zikalala said performance was driven by a combination of the business reconfiguration impact in 2024 and improved equipment efficiency and operating times in the third quarter of 2025.

Parent company Anglo American’s quarterly iron ore production dipped by 9% to 14.3 million tons, weighed down by lower output from Kumba as well as from its Minas-Rio operation in Brazil.

Over the period under review, total waste mining increased by 12% to 44.2 million tons compared to 39.4 million tons in the previous contrasting period, underpinned by an 8% increase at Sishen and a 39% increase at Kolomela.

The 2% plunge in production for Kumba was driven by a 6% decrease in Sishen’s production to 6.3 million tons, partly mitigated by an 8% increase in Kolomela production to 2.9 million tons.

“The decrease in production at Sishen relates to plant maintenance interventions brought forward in preparation for the main tie-in of our UHDMS technology in 2026,” Zikalala said.

“Relative to the second quarter of this year, total production was consistent, demonstrating an ongoing focus on operational stability and capability.”

Although production was lower for the September quarter, Kumba raised total sales by 7% to 9.6 million tons, a reflection of the “improved rail performance” although the company closed the quarter with broadly flat finished stock at 7.3 million tons.

About 5.5 million tons of this is on-mine material while 1.8 million tons is at Saldanha Bay Port.

Kumba’s average year to date realised FOB export iron ore price of $94 per wet metric ton was 12% above the average benchmark price of $84 per wet metric ton.

Sishen’s unit costs are expected to end the year within guidance of between R510 – 540 per ton. At Kolomela, the increase in production could however potentially result in the unit cost improving to below the full year guidance of between R430 – 460/ton.

Kumba is has maintained its C1 unit cost target at $39 per ton based on a foreign exchange rate of R18.60/$.

Anglo American’s other iron ore operation, Minas Rio was affected by lower production the planned pipeline inspection in August, which is carried out every five years. 

Duncan Walnbald, CEO of Anglo American said the company had now increased its 2025 production guidance for Minas Rio to 23-25 million tons “on the back of strong operational performance and following the successful completion of the 5-yearly pipeline” inspection.

Production from Minas Rio decreased by 19% to 5.1 million tons during the period under review.

Iron ore prices for the period  were supported by improved profitability in China, due to lower raw material input costs, Kumba Iron Ore said.

“Improved demand for steel was largely driven by infrastructure, and exports from China, particularly in the auto and manufacturing sector, whilst the property market remained subdued. Steel production in markets outside of China came under pressure from robust Chinese exports,” said Zikalala.

However, iron ore supply has remained relatively flat with growth in Brazil offset by a 40% reduction in supply from India, providing further price support, she added.

BUSINESS REPORT