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Transnet holds key to Kumba's Sishen South project

By unknown | Jul 30, 2007 | COMMENTS [ 0 ]

Sherilee Bridge

Sherilee Bridge

South African iron producer Kumba Iron Ore said on Friday that its Sishen South project in the Northern Cape had been delayed pending a Transnet decision to increase the rail capacity on the dedicated iron-ore export line between Sishen and Saldanha Bay.

Reporting its interim earnings, Kumba said it was in talks with the rail utility to increase the line's approved total capacity expansion from the 47million tons to 60million tons a year.

The rail line between Kumba's Sishen mine and the port at Saldanha Bay is currently running at a total capacity of 30million tons a year but it has already agreed to increase this to 41million a year by 2009 and to 47million tons a year by 2010.

Kumba, which is using 80percent of the existing total capacity, plans to increase its haulage to 35million tons a year by 2009.

This planned increase is in line with higher production from the R5,1billion Sishen Expansion Project, which will increase annual production from the Sishen Mine to 42million tons a year from its existing 28,7million tons a year production by the first half of 2009.

The second phase of the Sishen Expansion Project is under consideration with a pre-feasibility study scheduled to be completed this year.


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