Kumba production decreased by 3%, sales volumes down by 1%
Kumba Iron Ore Limited has reported in its production and sales report for the six months ended 30 June 2026 that its high iron ore quality products continued to support its premium pricing. It achieved an average realised price of US$90 per wet metric tonne (wmt), 8% above the Fastmarkets 62% iron (Fe) free-on-board (FOB) equivalent price, benefitting from resilient iron ore market prices and a recovery in lump premium from the lows seen earlier in the year production and sales report.
Kumba’s Chief Executive, Mpumi Zikalala, said: “Total production decreased by 3% compared to the first half of 2025, reflecting a softer contribution from Kolomela, partly offset by solid operating performance at Sishen. Sales volumes were 1% lower, largely due to the first of two planned 10-day Transnet logistics maintenance shutdown in May 2026. Notwithstanding this, improving momentum in operational and logistics performance supports our expectation of delivering the full year production and sales guidance of 31 – 33 Mt and 35 – 37 Mt, respectively.
“Importantly, we remain focused on what matters most – the safety of our people. We improved our total recordable injury frequency rate (TRIFR) to 0.80 from 1.18 in the comparative 2025 period, demonstrating continued progress in reducing serious injuries and our unwavering commitment to eliminating fatalities across our operations.
“Our dollar denominated C1 unit cost in the first half was impacted by a stronger rand and above inflation increases in key mining input costs compared to the prior period, largely reflecting the effects of the Middle East conflict. In response, we are progressing a range of initiatives to enhance operational efficiency and optimise our operating and capital cost base.
“To better reflect prevailing market conditions, the exchange rate assumptions underpinning our C1 unit cost guidance of ~US$45/wmt has been revised from R16.00 to R16.50 to the US dollar. While the underlying rand-based unit cost guidance for Sishen (R530–R560/dmt) and Kolomela (R430–R460/dmt) remains unchanged, we expect Sishen’s unit cost to move towards the upper end of its range and Kolomela towards the middle of the range. We note that the cost environment remains volatile, with heightened risk associated with ongoing developments in the Middle East.
“At the same time, we continue to invest in the long-term value and competitiveness of our business. At Sishen, the first Ultra-high dense media separation (UHDMS) modules are in the first phase of commissioning, and pre-shutdown work is on track for the main plant tie-in starting in August 2026. In parallel, we are strengthening our energy resilience and supporting lower energy costs and a lower-carbon steel value chain through the integration of wheeled renewable electricity into our Kolomela operations.”
Overview:
– Total production of 17.7 Mt (H1 2025: 18.2 Mt) decreased by 3%, driven by Kolomela and partially offset by increased production at Sishen.
– Total sales were 18.6 Mt (H1 2025:18.7 Mt), marginally down by 1%, due to Transnet’s planned logistics maintenance shutdown impacting port throughput in May.
– Total finished stock of 7.0 Mt (31 December 2025: 7.5 Mt) comprised of 4.8 Mt (31 December 2025: 5.7 Mt) at the mines and 2.2 Mt (31 December 2025: 1.8 Mt) at Saldanha Bay Port.
– Kumba achieved an average realised FOB export iron ore price of US$90/wmt (H1 2025: US$91/wmt), 8% above the Fastmarkets 62% Fe FOB equivalent price of US$83/wmt (H1 2025: US$84/wmt).
