Top Africa Iron Ore Producer Adds 20 Years to Life of Giant Mine

(Bloomberg) -- Anglo American Plc’s South African iron ore unit said it plans to spend 3.6 billion rand ($246 million) to extend the life of its giant Sishen open pit by two decades.

The Sishen operation would be extended to 2040 through the optimization of current mining activities and investing in a high-density media separation project, Themba Mkhwanazi, chief executive officer of Kumba Iron Ore Ltd., said in a statement Tuesday as the company announced full-year results. The miner is also developing Kapstevel South mine and Kolomela as earnings continue to soar due to a rally in prices for the steelmaking raw material.

Kumba increased its final dividend payout to 86% of headline earnings from 75% a year earlier. Net income for 2020 rose even as Covid-19 disruptions reduced iron-ore production, the company said.

Kumba’s shares have advanced 7.3% in Johannesburg this year, trailing the 13% gain in South Africa’s benchmark FTSE/JSE Africa All Share Index.