Kumba Iron Ore, Anglo American’s African subsidiary will invest ZAR3.6bn ($248mn) to extend the life of its Sishen mine by four years.
According to the company’s annual earnings release, it plans to install an ultra-dense media separation plant at Sishen to increase ore grade recovery and ore quality from the mine and increase its life until 2039 instead of 2035 as estimated previously.
In the full year 2020, the mine produced 25.3mn mt of iron ore, down by 13pc from 2019 due to heavy rains and rail and port maintenance. Production at the Kokomela mine also fell by 12pc to 11.6mn mt. Total sales declined by 6pc to 39.6mn mt in 2020 from a year ago.
The South African miner’s revenue increased by 25pc in 2020 to ZAR80bn from ZAR64bn in 2019. The company posted an EBITDA of ZAR45.8bn in 2020, up by 37pc from the ZAR33.4bn in the prior year.
($1=ZAR14.54)