Kumba Iron Ore Implements UHDMS Technology to Boost Premium Output

Kumba Iron Ore is implementing ultra-high dense media separation (UHDMS) technology at the Sishen mine to increase the volume of premium iron ore from 18% to 55% of production. The company has invested R5.2-billion of an approved R11.2-billion budget for the project, which is currently 45% complete. A planned tie-in next month will temporarily lower production at Sishen, contributing to a 2026 full-year production guidance of 31-million to 33-million tons. Output is forecast to rise by 12% to 13% in 2027.

CEO Mpumi Zikalala reported that high-grade lump iron ore demand is increasing due to global decarbonization efforts, such as Europe's Carbon Border Adjustment Mechanism. In the first half of the year, South African iron ore achieved an average realized export price of $90 per wet metric tonne, including a $7 per ton premium driven by exports to Japan, South Korea, and Europe.

Kumba is also deploying an AI strategy to improve safety and value chain efficiency, with total 2026 capital expenditure projected between R13.2-billion and R14.2-billion. Regarding logistics, Zikalala noted that state-owned Transnet has replaced approximately 170 km of rail, though an independent assessment suggests over 500 km requires replacement to optimize the ore corridor.