The largest South African iron ore producer Kumba Iron Ore Company (KIO), a subsidiary of Anglo American Plc, has announced that it expects earnings for the year ending December 2012 to be at least 20 percent lower compared to the previous year.
The miner foresees that its net income for 2012 will decrease from ZAR 17 billion ($1.9 billion) in 2011, adding that the decrease in earnings is largely attributable to a decrease in export iron ore prices in the period as well as the impact on production following the illegal strike at its Sishen mine.
As SteelOrbis previously announced, on October 4 Kumba suspended production at its Sishen mine where approximately 300 striking employees were blocking access to the pit. The occupation of the Sishen mine was brought to an end by police who removed the strikers on Tuesday, October 16, with production recommencing on October 20 on a limited basis.