Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

South Africa’s, Kumba Iron Ore plans to start developing the Kapstevel pit at its Kolomela iron ore mine in Postmasburg, South Africa. 


The Anglo American subsidy noted in a press release on July 28 that it had approved an investment of ZAR7bn ($423mn), to develop the open pit. The amount includes the cost of pre-stripping. 


Themba Mkhwanazi, chief executive of Kumba, said that the move will help the company sustain its level of production from Kolomela, which currently has an estimated 13mn mt high-quality iron ore reserve that can be mined over the remainder of its life. 


Mkhwanazi added that the approval was attributed to Kumba’s positive long-term demand outlook for its iron ore shipments despite the current global situation caused by the COVID-19 pandemic. The company estimates a 25pc profitability from using the pit in the coming months. 

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