Kumba Iron Ore enters R1.6bn community-based joint venture

Kumba Iron Ore enters R1.6bn community-based joint venture

  • Kumba Iron Ore announced on Friday that a R1.6 billion mining contract to a black-owned, community-based joint venture its Kolomela Mine.
  • As an initial target, the joint venture will look to produce between 5 to 10 million tons of ore in its first year.
  • The joint venture will also comprise of four black community-owned companies.

Kumba Iron Ore announced on Friday that a R1.6 billion mining contract to a black-owned, community-based joint venture its Kolomela Mine.

As an initial target, the joint venture will look to produce between 5 to 10 million tons of ore in its first year.

The joint venture will also comprise of four black community-owned companies.

Kumba Iron Ore announced on Friday that a R1.6 billion mining contract to a black-owned, community-based joint venture its Kolomela Mine operation in the Northern Cape.

In a statement, Kumba said the joint venture represented a significant step forward in Kumba’s goal of developing sustainable communities and businesses contributing towards a transformed South African mining industry.

The Anglo American iron ore subsidiary in South Africa has been busy with a few projects in the Northern Cape, including spending R3.6 billion to extend the life of its Sishen operation to 2040.

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As an initial target, the joint venture will look to produce between 5 to 10 million tons of ore in its first year, as Kumba provides upskilling and support “to ensure quality and safety standards are met”.

Kumba Iron Ore CEO Themba Mkhwanazi said the contract with community-based miners was a demonstration of Kumba’s commitment to the economic inclusion of local suppliers from the Kolomela community.

“We’ve always seen mining as a catalyst for broad-based development. This contract goes far beyond philanthropy or corporate social responsibility. This is the business of mining, and it will help ensure host communities become direct participants in, and beneficiaries of, the mining operations that take place in their own back yards,” said Mkhwanazi.

The statement said the joint venture will comprise of four black community-owned companies. Joint venture spokesperson Kabelo Andreas said the contract was a step for transformation in the local mining industry.

“Now we will have iron ore under our fingernails and on our balance sheets. We want to be the proof that mining, through local models like this one, can deliver real value that can be shared by all stakeholders – from local businesses and our community,” said Andreas.

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