Kumba hails “stabilisation” of Transnet logistics chain

KUMBA Iron Ore CEO Mpumi Zikalala on Tuesday said there were signs of a “stabilisation” in the performance of Transnet Freight Rail (TFR), the South African government’s ports and rail utility.Amid a 4% increase in ore railed from Kumba’s mines in the Northern Cape to Saldanha Port in the Western Cape (to 18.9 million tons from 18.1Mt previously) in the six months ended June, Zikalala said the improvement “demonstrates the progress made” through public/private efforts – the Ore Corridor Restoration (OCR) programme and the Ore Users Forum (OUF).Equipment availability at Saldanha Bay port also improved helping Kumba achieve a 3% increase in sales to 18.7Mt for the six months ended June (8% higher in the second quarter).Transnet is hardly out of the woods as demonstrated by two train derailments during the period and an unscheduled shut to repair a stacker-reclaimer at Saldanha Port.Financially, the company appears stricken. The government this week approved another R94.8bn in guarantee support for ailing state-owned utility Transnet. The approval of more state aid comes after the entity was put on credit watch in recent months, elevating concerns about its unsustainable debt burden.However, Zikalala said the OCR “is starting to deliver positive outcomes in terms of logistics performance”.She also said the government was moving forward on reforms to introduce private sector participation in the logistics network. Kumba had lodged its interest via a Request for Information (RFI) issued by Government in March ahead of a Request for Proposal (RFP), set to be in August.“The finalisation of the Mutual Cooperation Agreement further strengthens the partnership and will enable urgent maintenance work to be executed more timeously, efficiently and effectively,” said Zikalala.Increased iron ore sales combined with decent prices achieved – an average iron ore price of $91/t which was above the benchmark for the six months of $84 (met metric tons) – resulted in flat interim profit and headline earnings year-on-year of R9.3bn (2024: R9.4bn) and R22.17 per share (2024: R22.27/share) respectively.Second quarter production at Sishen declined by 3% year-on-year to 6.4Mt (6.6Mt) while production at Kolomela was 11% higher at 2.8Mt (2.5Mt).For the half-year total finished stock was broadly flat at 7.4Mt (2024: 7.5Mt), with mine stock levels at 6.4Mt (6.9 Mt), and stock at Saldanha Bay port at one million tons (2024: 0.5Mt). Kumba said it was sticking to full-year production and sales guidance at between 35Mt and 37 Mt for both.The post Kumba’s Zikalala hails “stabilisation” of Transnet logistics chain appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com