Kumba to expand iron ore railway capacity
South Africa's largest iron ore producer Kumba Resources Limited and South African national transport company Transnet Limited (Transnet) agreed in principle to expand the transport and handling of iron ore from mines in Northern Cape to the port of Saldanha via the Sishen-Saldanha railway. The parties had been negotiating since September 2004 in order to come to terms on a pricing mechanism. With the Heads of Agreement inked, the results of the negotiations saw both parties agree on a rand-based tariff instead of a dollar-based one. The railway will help facilitate Kumba's current growth plans to increase iron ore exports. Kumba is looking to expand its Sishen mine in Northern Cape which requires an extra railway capacity. Kumba is the world's fourth largest exporter of iron ore. The company accounts for roughly 80% of SA's iron ore exports and 4% of the world's iron ore seaborne trade.