Saldanha steelworks closure to hit Kumba

In a statement on Tuesday morning, Kumba cut its sales forecast for the year following the news that ArcelorMittal SA will shut down its Saldanha steel plant.

Kumba sells iron ore to ArcelorMittal SA, which uses its product to produce steel.

Kumba has reduced its 2019 total sales guidance to 41.5 to 42.5m tonnes from 42 to 43mt. The production guidance for the full year 2019 is unchanged at 42 to 43mt.

But Kumba said that export sales still contribute 94% towards the company’s total sales. “Kumba’s high-quality iron ore products are well-positioned in global markets with ongoing customer demand and a stable export order book,” the company said.

AMSA is still reviewing its remaining SA operations, and Kumba said it will continue to assess the effect of this review.