Anglo American unit Kumba Iron Ore said on Thursday that it planned to invest an additional R7.6-billion in a processing technology that it says will treble the proportion of high-quality iron ore it produces and lift its earnings.
Anglo American and its stable of companies are always keen on cutting-edge science and technology, and Kumba’s latest announcement follows this pattern.
The technology involved is a mouthful rather than a term of art – ultra-high-dense-media-separation (UHDMS) processing – and the bottom line is that it promises to significantly boost the production of premium-quality iron ore at Kumba’s Sishen mine in the Northern Cape.
Premium-quality iron ore fetches a higher price than the run-of-the-mill standard version and Kumba reckons it will add $2 to $3 per tonne to its sales from the technology.
“Kumba has now completed a full technical review of its ultra-high-dense-media-separation processing technology project at its Sishen mine… Following this review Kumba is pleased to announce board approval for a further R7.6-billion investment in the project, in addition to the R3.6-billion previously approved in February 2021, bringing the total capital investment to R11.2-billion,” the company said.
Kumba says the application of this processing technology will triple the proportion of premium-quality production volume at Sishen mine to 55% from the current 18%.
Premium iron ore is more efficient in the steelmaking process and has a lower carbon footprint, which is crucial as the industry seeks to decarbonise in…
