Kumba plagued by problems

[miningmx.com] — Kumba Iron Ore’s total production in the third quarter declined by 5% while export sales volumes fell 12%, dragged down by logistical problems.

Kumba, a unit of global miner Anglo American Plc and the world’s tenth largest producer of iron ore, said it produced 10.7 million tonnes of iron ore in the three months to end September.

It said export sales were 8.3 million tonnes in the quarter under review, a 12% decrease on the same period a year ago and a 13% decline compared to the second quarter.

“Demand for Kumba’s ore continues to be strong in China and our traditional markets of Japan, Korea and Europe,” the company said in a statement.

Kumba reiterated that it aimed to increased output at its Sishen Mine by 5% in 2010 but said export sales volumes in the second half of the year were expected to be lower than the 18.8 million tonnes in the first six months of the year.

The group said it expected to export at least 35 million tonnes for the full year.