Anglo American Cuts Kumba Iron Ore Production Guidance for 2020

Anglo American has recently announced reduction in Kumba iron ore production for the year 2020 by 2-3 MnT. The drop in guidance is due to 50% reduction in workforce at the Sishen and Kolomela mines during the lockdown period amid precautionary measure to avoid spread of pandemic COVID 19.

The President of the Republic of South Africa on 23 March declared a 21-day nationwide lockdown that took effect at midnight on Thursday 26 March, in order to help curb the spread of COVID-19 in South Africa.

Anglo American Kumba iron ore production for Q4 CY19 witnessed at 11.8 MnT, up sharply by 12% as against 10.5 MnT in Q3 CY19 amid improved run rates post maintainence earlier in CY19. The production at Sishen iron ore mine increased to 8.3 MnT (up 19% Q-o-Q) as a result of improved operational performance in Q4 2019. Also, Kolomela output picked up 10% to 3.5 MnT .

In CY19, the total iron ore output recorded at 42.4 MnT, down slightly as against 43.1 MnT in CY18.