[miningmx.com] – KUMBA Iron Ore, the Johannesburg-listed firm in which Anglo American has a 70% stake, may be forced into more production cuts as prices for the mineral head lower, said Bloomberg News in an article republished by BDLive.
“You’re going to see some more attempts at cost cutting,” Des Kilalea, an analyst at RBC Capital Markets told the newswire. “I’m not sure where it will come from, but there has to be further scope,” he said.
Kumba CEO Norman Mbazima said in July that the compoany may have to relook at its business if prices fell below $40 a ton in the near term. Iron ore is currently trading at below Kumba’s $45/t break-even, said Bloomberg News.
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