The project aims to extend the mine's operational life until 2044 by increasing the yield of high-quality iron ore. The UHDMS technology is expected to triple the proportion of premium iron ore produced, from 18% to 55% of total production. This change is significant as steelmakers increasingly seek premium iron ore to reduce carbon emissions.
Kumba estimates that this upgrade could bring a price premium of $2 to $3 per tonne over current lump iron ore prices. The project has faced delays due to a review initiated by Kumba's majority shareholder Anglo American, which aims to address the complexities associated with upgrading the existing processing plant. To date, R1.8 billion has been spent on preliminary studies. Total investment in UHDMS is expected to reach R11.2 billion over the next four years, with full operational capacity expected to be achieved by the end of 2028.
Kumba CEO Mpumi Zikalala highlighted that this investment reflects the company's commitment to prioritize value over volume and supports the company's long-term strategy in South African mining while benefiting local communities. The UHDMS technology will not only improve recovery rates, but will also reduce mining costs by reducing the boundary grade from 48 to 40%, resulting in a reduction of 15 million tons of waste per year. This strategic move positions Kumba to meet future customer demands and increases its operational flexibility while contributing positively to environmental goals in steel production.
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