28 July 2020 |
Kumba Iron Ore approves Kapstevel South project at Kolomela
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Anglo American notes the announcement made by Kumba Iron Ore this morning, the text of which appears below.
Kumba is pleased to announce the approval of its Kapstevel South project at its Kolomela mine by both the Company's and Anglo American's boards.
The total capital cost of the project will be approximately R7 billion, including pre-stripping. It is anticipated that the addition of the Kapstevel South pit will deliver an after-tax internal rate of return of ~25% and allow Kolomela to maintain an estimated EBITDA margin of >35% in the long-term.
The project entails the development of a new pit, Kapstevel South and associated infrastructure at Kolomela. The pit is a conventional truck and shovel operation producing high quality direct shipping ore (DSO). Whilst the pit is included in the current life of mine, it contributes significantly to sustaining production of ~13Mt for the remaining life of mine. Pit establishment and waste stripping will commence this year with first ore expected in 2024.
Themba Mkhwanazi, CEO of Kumba, said: "The approval of this project, at a time when the global and South African economies face the challenges of Covid-19, underscores Kumba's positive longer-term outlook for demand for its high-quality product. It also demonstrates our commitment to extend the lives of our mines and continue providing much-needed jobs and livelihoods in the Northern Cape region."
The operational and financial forecasts provided in this announcement are estimates and the financial information has not been reviewed and reported on by the Company's external auditors.
For further information, please contact:
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Investors |
UK James Wyatt-Tilby james.wyatt-tilby@angloamerican.com Tel: +44 (0)20 7968 8759
Marcelo Esquivel marcelo.esquivel@angloamerican.com Tel: +44 (0)20 7968 8891
Katie Ryall katie.ryall@angloamerican.com Tel: +44 (0)20 7968 8935
South Africa Pranill Ramchander pranill.ramchander@angloamerican.com Tel: +27 (0)11 638 2592
Sibusiso Tshabalala sibusiso.tshabalala@angloamerican.com Tel: +27 (0)11 638 2175 |
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UK Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718
Robert Greenberg robert.greenberg@angloamerican.com Tel: +44 (0)20 7968 2124
Emma Waterworth emma.waterworth@angloamerican.com Tel: +44 (0)20 7968 8574 |
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Notes to editors:
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Forward-looking statements:
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