Kumba's shares slump more than 35%

Kumba's share price has fallen by 35% this year largely due to production issues at Sishen (Above). Image: Kumba

Like many of its mining peers‚ Kumba‚ which is 70% owned by Anglo American has been under pressure from falling iron ore prices‚ exchange rate volatility and investor uncertainty regarding China's ability to sustain a growth rate above 7.5%. China is the largest steel producer and consumer of iron ore in the world.

In its latest production report‚ the diversified mining company reported that production at its flagship Sishen mine had fallen by a third because of increased waste materials‚ issues around pit constraints and the effects from last year's strikes.

According to Business Day‚ Kumba management‚ with assistance from Anglo American specialists‚ are formulating a plan to resolve the problems at Sishen and are developing a longer-term operating strategy.

The plan and strategy should be ready by December when Anglo presents the findings of a review of its global businesses to the market.

Kumba‚ which supplies high quality iron ore to the global steel industry‚ recently settled a long-running dispute with ArcelorMittal SA‚ the country's largest steel maker‚ over a pricing arrangement for ore.

Source: Business Day via I-Net Bridge