BUSINESS MAVERICK: Life after the pandemic: Kumba approves R7bn mine expansion project

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Even amid the Covid-19 pandemic and global economic turbulence, companies are allocating capital to expansion projects. Kumba Iron Ore, a unit of Anglo American, has announced approval of funding for its R7-billion Kapstevel South project at the Kolomela mine in the Northern Cape province. This underscores Anglo’s commitment to South Africa.

Kumba Iron Ore made the announcement on Tuesday, 28 July along with its interim results, which reflected a decent performance, given the challenges presented by the Covid-19 pandemic.

Headline earnings declined 16% to R8.4-billion and the board declared an interim cash dividend of R19.60 per share, representing 75% of headline earnings. The company ended the period with net cash of R15.7-billion. “While our focus for the first six months of 2020 has been on responding to the Covid-19 pandemic, we remain committed to our strategic ambition of margin enhancement and extending our life of mine to 2040. Our strategy protects our margin, and we are currently more resilient and better positioned than we were in previous down-cycles.

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