(Reuters) -South Africa’s Kumba Iron Ore’s mineral sales rose 3% during the first half of the year, helping to offset inflation-related cost increases, following an improvement in rail freight and port operations, it said on Thursday.
In a trading update ahead of the release of its half-year results on July 29, the Anglo American unit said its sales for the six months to June 30 were 18.7 million metric tons, up from 18.1 million metric tons during the same period last year.
Kumba, Africa’s biggest iron ore miner, expects headline earnings to be between 6.841 billion rand and 7.341 billion rand ($389.40 million-$417.86 million) in the six months, compared to 7.148 billion previously.
The company kept its full-year production and sales forecast within the range of 35 million to 37 million metric tons.
Commodity exporters have provided technical and equipment assistance to South Africa’s state-owned freight rail and ports operator Transnet.
It has for years struggled to provide adequate services, blaming equipment shortages, cable theft and vandalism. Companies, including Kumba, have been forced to cut output to match the limited logistics capacity.
“Overall, the collaborative partnership between the ore users’ forum and Transnet on the ore corridor restoration programme is starting to deliver positive outcomes in terms of logistics performance,” Kumba said.
Its increased sales followed a 4% increase in ore transported by rail to Saldanha Bay, as well as improved equipment availability at the port over the first half of the year.
Kumba has previously suggested that private investors should run the 861 kilometre (535 miles) rail line from its mines to the port to enhance efficiency. It is unclear whether that could happen.
($1 = 17.5681 rand)
(Reporting by Nelson Banya; editing by Barbara Lewis)
