Kumba Iron Ore – An Anglo American Company
Kumba Iron Ore Company South Africa, produces high-quality iron ore. It’s the world’s fourth-largest iron-producing company. It was included in the list of JSE in 2001. High-quality iron ore is one of the minerals necessary for social development and prosperity. Iron ore is a primary constituent of steel and is the most widely used metal.
The existing projects of Kumba are mainly operating in the North Pole of South Africa. Exploration and definition drilling of near-ground and near-ground resources were carried out to increase confidence in the geological model; this data is updated annually to support the longevity and long-term plan of the mine.
The production process of Kumba includes exploration, planning and construction, processing and blending, mining, marketing, and sales.
In November 2006, Kumba announced that a 64.7% tributary of Anglo Americans had been listed on the Johannesburg Stock Exchange (JSE).
When the company acquired 67% of Kumba Resources, it decided to create a new solution that could add shareholder value and provide the future with its support. Kumba Iron Ore shares were initially listed at 11,500c, bringing the company’s market value to R36 billion.
Image source: Bloomberg.com
Kumba is a significant iron ore producer, and 73% of its products are exported to 30 major customers worldwide. From industries primarily running in South Africa, Kumba is the most leading supplier of iron ore. 64.9% iron ore of Kumba is owned by Anglo-Americans. Anglo-Americans can affect an economic interest of 48% in SIOC and an indirect interest of 3% via Anglo Equity. American Airlines has a stake hold of 19% in Exaro.
The Sishen mine is located in Kathu, North Cape. It is included in the largest coal mines in the world. Kumba Iron Ore reported that the Tin Shen mine has 19 years of mineral reserves. Sishen’s mining method is surface mining. The ore is transported to the enrichment and fixation plant. Most of the iron ore it produces comes from the Sishen mine, and most of it is exported. They extract by surface mining and then transport the ore to the concentrator for crushing, screening, and upgrading. This plant is the largest in the world. In Sishen, they produce iron ore products of different characteristics based on customers’ desires.
The Port of Saldanha Bay is the only dedicated facility for exporting iron ore to South Africa, which is greater than the sum of the country’s other four major sports. The Saldanha ore terminal has two berths, and two 310,000 dwt vessels can be tied to the iron ore terminal at the same time. The terminal operates 24/7 and can unload 10,000 tonnes of freight per hour. An ore ship carrying 170,000 tonnes of ore will remain in Saldanha Bay for only 24 hours from arrival to departure.
The Kolomela mine is located near Postmasburg in the North Cape. The literal meaning of Kolomela is “deep digging” or “persistence.” Since its successful production in 2011, Kolomela’s team members burnt midnight oils to increase and maintain production. Its products are in significant need because it provides high-quality ores. Kolomela has a span of about 14 years. Kumba uses the donation to the North Cape to extend Sishen and Kolomela’s lifespan to over 20 years.
Kumba Business Strategy
Kumba Business Strategy is different from other companies. It invests in leading other companies. The complementary elements of their strategy will actively change the way stakeholders experience their business locally and globally. The system is based on many vital foundations. This industry uses a lot of water and energy, so it faces many challenges regarding productivity and safety. The number of consumers around the world has skyrocketed. Because minerals and metals are in much demand, but this advanced era demands more than high-quality stuff. The mining industry affects socio-economic development positively and also reduces its environmental footprint, and supports biodiversity.
Talking about one of the projects, Themba Mkhwanazi said:
“As the global and South African economies grapple with the challenges of COVID-19, the approval of this project highlights Kumba’s optimistic long-term outlook for demand for high-quality products.”
“It also shows that we are committed to extending the life of our mines and continuing to provide much-needed jobs and livelihoods in the North Cape.”
The construction of this project was started in 2020 and might be completed in 2024.
Kumba Stock Analysis
The financial overview of Kumba Iron Ore Ltd. (KIO), the company listed on the JSE, includes information about the company’s stock, stock price history, price data (such as market cap, consensus forecast, company news, SENS announcements, contact details, exchanges of directors, etc.)
JSE: KIO is currently trading at 614.55 ZAR. It was trading at its highest at the start of May 2021, at 717.38 ZAR. It declined in December 2020 at 525.94 ZAR.
Iron is the most important and widely-used metal of all the metals that make this advanced life possible. Iron ore is also utilized in medicinal drug, cosmetics, engineering science, building, paint and an entire range of additional products we utilize in our daily lives. And technology is stringent, increasingly elegant forms of steel.
We endeavour to cope with our products with our client’s demands. By heeding to our customers’ requirements, we can build up and deliver superior products that fortify our customer relationships and centum our attitude in the international market.
Geologists and engineers of Kumba’s team use the virtual mine planning system to design mines. Kumba is building efficient, profitable, and environmentally friendly mines to minimize our environmental footprint while protecting cash flow. The company mines iron ore by mining iron ore deposits in mining leases using surface mining. It is implementing a technology roadmap to accelerate technology adoption to improve safety, quality, efficiency, and resources.
Table of Contents
Heinrich is a forex and CFD enthusiast with a passion for writing good informative quality content. He strives to showcase the best forex brokers in Africa. Join him on his Journey!
Content Writer | Market Analyst
What is the Stock Market?
[top_three_brokers] With US stocks trending higher with barely a hiccup for more than a decade,…
JSE All Share Index and the Johannesburg Stock Exchange
[top_three_brokers] The FTSE JSE All Share Index is a South African equity index comprising the…
Absa Group – One of Africa’s Largest Banks
[top_three_brokers] Absa (JSE: ABG) is an African group among the world's largest diversified financial services…
Remgro – Investment Holding Company Portfolio
[top_three_brokers] Remgro (JSE: REM) is an investment holding company that creates sustainable and valuable stakes.…
Amplats – Anglo American Platinum
[top_three_brokers] Amplats (JSE: AMS) is the world's largest primary producer of platinum, accounting for 38%…
MTN Group Ltd – Taking Africa by Storm
[top_three_brokers] MTN Group Ltd (MTN) (JSE: MTN) is a South African mobile telecommunications company operating…
Aspen Pharmacare Holdings Limited – Pharmaceutical Company
[top_three_brokers] With a 160-year legacy, Aspen (JSE: APN) is a worldwide forte and marked global…
Bidvest – The Bidvest Group Limited
[top_three_brokers] The Bidvest Group Limited (also known as the Bidvest Group or simply Bidvest) is…
Stanbank – Standard Bank Limited
[top_three_brokers] Standard Bank Limited is a South African financial services conglomerate that is Africa's largest…
Exxaro Resources Limited – Company With A Diverse Portfolio
[top_three_brokers] Exxaro is one of South Africa's largest diversified resource firms, with coal, titanium dioxide,…