Kumba Iron Ore Delivers Stable Output Amid Improved Rail Logistics

Anglo American’s Kumba Iron Ore division delivered a stable operational performance in the third quarter of 2025, demonstrating resilience amid a dynamic logistics and market environment. Despite a modest 2% decline in production to 9.2 million tonnes (Mt), primarily due to scheduled maintenance at the Sishen mine, Kumba benefited from improved rail logistics and flexible mine planning, which enabled higher sales and strong stock management. These operational improvements underline the company’s ongoing efforts to optimize supply chain reliability and sustain export volumes from South Africa’s Northern Cape region.

Production at the Kolomela mine increased by 8%, reflecting agile operational management and effective utilization of processing capacity. Total sales rose 6% to 9.4 Mt, largely supported by improved rail performance through Transnet, South Africa’s state logistics operator. Finished iron ore stock levels remained stable at 7.3 Mt, with higher port inventories ensuring steady export flows and customer delivery consistency. Kumba’s average realized iron ore price stood at US$94 per tonne, representing a 12% premium over the 62% Fe benchmark, reaffirming the continued demand for its high-grade ore and product quality advantages.

Anglo American’s broader iron ore portfolio also saw positive developments, particularly at the Minas-Rio mine in Brazil. Following a successful inspection of its 529 km slurry pipeline, the company raised Minas-Rio’s 2025 production guidance to 23–25 Mt, signaling confidence in operational reliability and long-term output stability. Consequently, Anglo American has lifted its group iron ore production guidance to 58–62 Mt for 2025 while maintaining its unit cost guidance at approximately US$36 per tonne. These metrics highlight both operational discipline and efficiency across the company’s global assets.

Beyond operational updates, Anglo American continues to advance its portfolio optimization strategy, which includes divestments in non-core assets and progress on restarting coal operations. A key focus remains the merger with Teck Resources, expected to create a leading global producer of critical minerals with a strong 70% exposure to copper, a metal central to the global energy transition. CEO Duncan Wanblad described Kumba’s quarter as solid, emphasizing the success of improved rail sales and Minas-Rio’s upward production revision as evidence of the group’s balanced, performance-driven approach.

Looking ahead, Kumba Iron Ore remains well-positioned to meet its 2025 operational targets, supported by robust logistics coordination, disciplined cost control, and consistent delivery of premium-grade ore. The division’s performance reinforces South Africa’s strategic role in the global iron ore market while contributing to Anglo American’s broader ambition of reshaping its portfolio toward critical minerals essential for decarbonization and sustainable industrial growth.

Mini-Glossary

• Fe Benchmark (62% Fe): The standard global reference grade for iron ore pricing, representing ore with 62% iron content.
• Transnet: South Africa’s state-owned freight transport and logistics company managing key rail and port infrastructure.
• Unit Cost: The total cost incurred to produce one tonne of iron ore, reflecting operational efficiency.
• Slurry Pipeline: A pipeline used to transport mineral concentrate mixed with water from a mine to a processing or export facility.
• Critical Minerals: Raw materials essential for modern technologies and the energy transition, such as copper, lithium, and nickel.