Kumba Iron Ore CEO Mpumi Zikalala
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Kumba Iron Ore has declared a cash dividend of R7.90 per share for the six months to June 30, 52% lower than the half year payout last year, as the group is focused on cost optimisation, capital allocation discipline, and enhancing cash generation.
"Kumba's first-half performance reflects the impact of a challenging external environment and difficult operating conditions. Despite these headwinds, we delivered EBITDA of R10.9 billion and an EBITDA margin of 35%," said Mpumi Zikalala, the chief executive of the Anglo American subsidiary that mines premium iron ore in the Northern Cape.
She said the strength of their balance sheet and cash generated from operations of R10.1bn, together with the group’s confidence in the long-term fundamentals of the business, had enabled the board to declare an interim dividend of R2.5bn, of which the empowerment partners would receive R800m.
“Our sustainability commitments remain integral to value creation, and we delivered R24bn of enduring shared value to our stakeholders," she said.
“Across our asset portfolio, resource development activity is progressing, and we continue to invest in sustaining life of mine, maximising the value of existing infrastructure, and enhancing our asset quality,” she said.
At Sishen, the ultra-high dense media separation (UHDMS) project is advancing, with overall progress at 45%, engineering substantially completed at 96%, and structural steel installation progressing well. Pre-shutdown mechanical and electrical works for the main tie-in remain on track, supporting the next phase of execution.
At Kolomela, the Ploegfontein concept study has been completed, and pre-feasibility studies have commenced.
In parallel, energy resilience was being strengthened to support lower energy costs and a lower-carbon steel value chain.
“We have entered into an offtake agreement with Envusa to receive renewable energy from a 63 megawatt (MW) solar photovoltaic (PV) plant that will be constructed at Sishen and is expected to displace around 35% of Sishen’s current scope 2 emissions at steady state.”
The plant will be built on a disused waste dump, reducing rehabilitation requirements at closure. Completion of Sishen's solar PV plant in 2028, together with Kolomela’s 11 MW of wheeled renewable energy, is expected to lift Kumba’s renewable energy penetration to 45%, she said.
In March, Kolomela began receiving renewable energy as part of the 11 MW offtake agreement with Envusa Energy, a joint venture between Kumba's ultimate holding company, Anglo American plc, and EDF Power Solutions. Renewable energy is powered by a combination of wind and solar projects, which has reduced Kolomela’s scope 2 emissions by 84%.
“As we move through the second half of 2026, we will continue advancing our UHDMS project and strengthening logistics performance through our strategic partnerships. We will maintain a consistent, disciplined approach to capital management, balancing investment in safe and sustainable operations with margin-enhancing, life extension opportunities to create long-term stakeholder value,” she said.
The business value of the UHDMS technology includes: lowering the cut-off grade from 48% to 40%, which reduces the stripping ratio, increasing the volume of premium grade products from less than 20% to above 50%, and increasing Sishen's life of asset by six years, with the option to further extend the life of the asset.
Kumba’s share price was unchanged at R258.74 on Tuesday morning, a price 16.5% down from R310.02 a year ago.
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