On February 18, London-based diversified mining giant Anglo American Plc's South Africa-based Kumba Iron Ore Ltd unit announced its operational and financial results for the year ended 31 December 2009, reporting that the company "delivered an exceptional safety, operational, sales and financial performance in 2009."
Kumba posted an operating profit of ZAR 12.9 billion ($1.69 billion) in 2009, down five percent compared with a net profit of $13.5 million in 2008. When the same years are compared, the company's sales revenues increased 10 percent from ZAR 21.4 billion to ZAR 23.4 billion ($3.06 billion).
The company's export sales volumes were up 37 percent from 24.8 million mt in 2008 to 34.2 million in 2009, with a 130 percent increase in sales to China, corresponding to 75 percent of total export sales.
Kumba's total iron ore production increased by 14 percent from 36.7 million mt in 2008 to 41.9 million mt in 2009.
Regarding the outlook for 2010, CEO Chris Griffith said, "Global steel demand in 2010 is forecast to grow in excess of five percent per annum over the next three years, leading to increasing iron ore demand. We expect demand for iron ore to rise further during 2010 as Chinese domestic iron ore production falls and a further recovery in steel markets outside of China, in our traditional markets, starts to take hold."