Q3 Kumba iron ore output up to 11.3mln t

Oct. 26 MetalBiz--South Africa iron ore producer, Kunma's iron ore production in the third quarter was 11.3mln tons, up by 12% year on year, up by 15% than last quarter's 9.8mln tons, reaching the its 2009 fiscal year's goal of a 10% increase.

In the third quarter, its subsidiary Sishen, whose production rose by 1.3mln tons to 10.7mln tons, among them, jig mill's output was 2.9mln tons, accounting for 27%, jig's yield in September was 996,000 tons, that is yearly output of 12mln tons. It is said that the mill will probably operate with the full capacity in the fourth quarter, that is the yearly production of 13mln tons.

Kumba also increases its inventory level in Sishen, the stockpiles in Saldanha and Qingdao jump to 5mln tons and 2.1mln tons respectively, higher than the basic operating level. In the meantime, due to weak domestic demand in the third quarter, its inventory in Thabazimbi has grown to 800,000 tons, and Thabazimbi's production in the third quarter went up by 40% to 700,000 tons. Among them, 500,000 tons are dispatched to ArcelorMittal. Kumba expected that the domestic sales volume will be lower than 2008's 8.2mln tons.

Although Kumba's exports in the third quarter decreased to 9.4mln tons compared to the second quarter's 11.1mln tons, but it is still the company's second-highest exports so far. Because Europe, Japan and S. Korea's steel manufacturers increased steel production and supplement the inventory, to promote iron ore demand, but its iron ore exports to China in the third quarter took up 69% of the total exports, lower than last quarter's 87%.