Kumba Iron Ore Announces 18% Drop In H1 Earnings

VENTURES AFRICA – Kumba Iron Ore has announced a fall in its first-half earnings by 18 percent. The drop it said is as a result of sharp fall in prices.

Kumba is the latest subsidiary of Anglo American that will be reporting or predicting profit reductions.

Kumba is the continent’s largest producer of iron ore which is the raw material for steel production. In the report, the company declared an interim dividend of 19.20 rand ($2.36) a share.

The company’s production rate increased by 13 percent in the half-year to end June to 21.6 million tonnes, with export sales up by the same amount to 20.7 million tonnes.

In a related news, Kumba Iron Ore also announced the depature plan of its chief executive Chris Griffith to head the parent company-owned Anglo American Platinum.