Kumba’s revenue increased by 10% to
R23.4 billion on the back of a 37% increase in
export sales volumes driven by strong demand
from China. The increase in revenue from higher
volumes more than offset the average 40%
reduction in benchmark iron ore export prices.
Revenue generated from the sale of iron
ore increased by 6% from R18.9 billion
to R20.0 billion, with R18.7 billion
(2008: R17.5 billion) from export sales.
Revenue from shipping services increased
by 41% from R2.5 billion to R3.4 billion.
The group increased total sales volumes
by 21% from 33.0Mt in 2008 to 40.0Mt.
Export sales volumes from Sishen Mine for
the year increased by 9.3Mt or 37% from
24.9Mt in 2008 to 34.2Mt on the back of
increasing volumes from the Jig plant, the
successful introduction of a new blended
fines product and an increase in demand from
China. Export sales volumes to China totalled
75% (2008: 43%) of total export volumes
for the year. Total domestic sales volumes of
5.8Mt were down by 28% or 2.3Mt due to
lower demand from ArcelorMittal.
The 10% increase in revenue over last year
was principally as a result of:
- Increased export sales volumes, contributed
R6.6 billion to revenue, offset by the
year-on-year decrease in export iron ore
prices, reducing revenue by R5.4 billion,
and lower domestic sales volumes due to
the decline in domestic demand, which
reduced revenue by R377 million. The net
effect of these factors on revenue was a
net increase of R822 million.