Mpumi Zikalala, Kumba’s Chief Executive, said; Against the backdrop of an uncertain global macro environment, our strategic focus on operational excellence and cost optimisation is even more relevant. The successful reconfiguration of our business in 2024 significantly improved our resilience in a tougher operating environment. Pleasingly, we have continued to unlock value through our high-quality iron ore products, achieving an average realised price 11% above benchmark prices.
Our commitment to operational excellence is demonstrated by production of 9.0 million tonnes (Mt), in line with sales of 9.0 Mt. The 5% uplift in Transnet’s rail performance, which supported a 6% increase in sales volumes, is encouraging. Following this positive start to the year, we are maintaining our production and sales guidance of 35 – 37 million wet metric tonnes (wmt) and our C1 unit cost guidance of ~US$39 per tonne.
Protecting the safety and wellbeing of our workforce and communities where our mines operate is our first value. Our total recordable injury frequency rate (TRIFR) of 0.92 increased as a result of low energy incidents (slips, trips and falls). We are actively addressing this through an integrated set of safety initiatives. Notably Sishen has now achieved nine years, and Kolomela more than two years of fatality free production.
The ultra-high-dense-medium-separation technology project at Sishen that will treble the proportion of premium grade iron ore products, is well on schedule. Conversion of the first coarse module is underway, and the engineering design and fabrication are progressing ahead of plans.
Kumba continues to work closely with Transnet and the Ore User’s Forum (OUF) to prioritise the maintenance related to the independent technical assessment. As part of the OUF, we are also working through the Department of Transport’s request for information, due for submission on 9 May 2025, which will be followed by the request for proposals later in the year.
