Transnet's rail improvements usher in sales growth for Kumba Iron Ore

JSE-LISTED commodity exporter Kumba Iron Ore has reported a significant uptick in sales volumes, with a 6% increase recorded during the quarter ending 31 March 2025.

- TAWANDA KAROMBO

This boost comes on the heels of enhanced rail performance by Transnet, marking a promising recovery for the South African bulk commodity sector, which has been grappling with operational inefficiencies over the past few years.

Kumba Iron Ore’s CEO, Mpumi Zikalala, on Thursday said that Transnet’s capacity has improved in the first quarter of the year. “The 5% uplift in Transnet’s rail performance, which supported a 6% increase in sales volumes, is encouraging,” said Zikalala.

Kumba’s production for the quarter period dropped by 3% to 9 million tons despite Kolomela's production increasing by 12% to 3.0 million tons. Sales volumes for the period also amounted to 9 million tons.

“Following this positive start to the year, we are maintaining our production and sales guidance of 35 - 37 million wet metric tons and our unit cost guidance of $39 per ton,” said the company.