|
Key highlights
1.
Minas-Rio continued its strong operational performance, with 6.2 million
tonnes of high grade iron ore production in Q4. The tailings dam raise
operating licence was received in December 2019.
2.
Kumba iron ore production of 11.8 million tonnes reflected improved
run-rates following maintenance earlier in the year.
Kumba
- Total production volumes increased by 16% to 11.8 million tonnes, due to
higher production at both Sishen and Kolomela.
Sishen’s
production increased by 19% to 8.3 million tonnes as a result of improved
operational performance in Q4 2019.
Kolomela’s
production increased by 10% to 3.5 million tonnes, reflecting the ramp-up
in production following the temporary closure of the DMS plant for an
infrastructure upgrade in Q1 2019 and its subsequent re-opening, on
schedule, in Q4 2019.
Total
sales decreased by 10% to 10.5 million tonnes, driven by a 73% decline in
domestic sales to 0.2 million tonnes due to lower domestic customer
off-take with the winding down of the Saldanha Steel plant. Export sales
were 5% lower at 10.2 million tonnes.
Total
finished stock increased to 6.6 million tonnes(1) at Q4 2019 from 5.1
million tonnes at Q3 2019, as a result of lower domestic sales. Rail
performance improved significantly in 2019, with port stock levels well
set for Q1 2020.
In
the fourth quarter, the average lump to fines ratio in the Kumba product
was 66:34 (full year: 67:33), while the Fe content averaged 64.1% (full
year: 64.2%).
The
full year FOB realised price was $97/tonne, reflecting the reversal,
driven by price movements, of gains from provisionally priced sales that
supported the first half realised price of $108/tonne.
Minas-Rio
- Production of 6.2 million tonnes was driven by continued strong
operational performance, stability due to higher grade ore from the Step 3
mine area and productivity initiatives.
The
construction of the tailings dam raise was completed in August 2019 and
approval for the conversion of the installation licence to an operating
licence was announced on 23 December.
The
full year FOB realised price was $79/tonne, reflecting the reversal,
driven by price movements, of gains from provisionally priced sales that
supported the first half realised price of $92/tonne.
2020 Production Guidance
Kumba
production guidance for 2020 is unchanged at 42-43 million tonnes.
Minas-Rio
production guidance for 2020 is unchanged at 22-24 Mt, which includes a
one-month production stoppage in Q2 to carry out routine internal scanning
of the pipeline.
T1: Overview
|
|
Q4
2019
|
Q4
2018
|
Q4
2019 vs. Q4 2018
|
Q3
2019
|
Q4
2019 vs. Q3 2019
|
2019
|
2018
|
2019
VS 2018
|
|
Iron
ore – Kumba (000t)
|
11,806
|
10,170
|
16%
|
10,521
|
12%
|
42,388
|
43,106
|
-2%
|
|
Iron
ore – Minas-Rio (000t)(wet basis)
|
6,164
|
227
|
n/a
|
6,126
|
1%
|
23,115
|
3,382
|
n/a
|
T2: Iron Ore Production by Mines
|
Iron
Ore(tonnes)
|
Q4
2019
|
Q3
2019
|
Q2
2019
|
Q1
2019
|
Q4
2018
|
Q4
2019 vs. Q3 2019
|
Q4
2019 vs. Q4 2018
|
2019
|
2018
|
2019
VS 2018
|
|
Kumba
Iron Ore
|
11,806,100
|
10,521,300
|
10,544,000
|
9,516,300
|
10,170,200
|
12%
|
16%
|
42,387,700
|
43,105,700
|
-2%
|
|
Lump
|
7,898,500
|
6,955,500
|
7,111,400
|
6,544,600
|
6,878,600
|
14%
|
15%
|
28,510,100
|
29,171,500
|
-2%
|
|
Fines
|
3,907,600
|
3,565,800
|
3,432,600
|
2,971,700
|
3,291,600
|
10%
|
19%
|
13,877,600
|
13,934,200
|
0%
|
|
By
mine:
|
|
|
|
|
|
|
|
|
|
|
|
Sishen
|
8,263,900
|
7,153,500
|
7,310,400
|
6,446,600
|
6,960,500
|
16%
|
19%
|
29,174,400
|
29,246,000
|
0%
|
|
Kolomela
|
3,542,200
|
3,367,800
|
3,233,600
|
3,069,700
|
3,209,700
|
5%
|
10%
|
13,213,300
|
13,859,700
|
-5%
|
|
Kumba
sales volumes
|
10,469,400
|
10,153,800
|
10,471,900
|
10,878,600
|
11,591,400
|
3%
|
-10%
|
41,973,700
|
43,256,800
|
-3%
|
|
Export
iron ore
|
10,237,100
|
9,670,200
|
9,755,600
|
10,130,600
|
10,723,200
|
6%
|
-5%
|
39,793,500
|
39,965,700
|
0%
|
|
Domestic
iron ore
|
232,300
|
483,600
|
716,300
|
748,000
|
868,200
|
-52%
|
-73%
|
2,180,200
|
3,291,100
|
-34%
|
|
Minas-Rio
production
|
|
|
|
|
|
|
|
|
|
|
|
Pellet
feed (wet basis)
|
6,163,600
|
6,126,100
|
5,915,500
|
4,909,700
|
226,700
|
1%
|
n/a
|
23,114,900
|
3,382,000
|
n/a
|
|
Minas-Rio
sales volumes
|
|
|
|
|
|
|
|
|
|
|
|
Export
– pellet feed (wet basis)
|
6,570,700
|
5,734,500
|
6,590,400
|
4,031,400
|
—
|
15%
|
n/a
|
22,927,000
|
3,216,800
|
n/a
|
Related Link: Official
Announcement |
