Assmang Limited recently announced that the 10 million tons per annum (“mtpa”) Khumani Iron Ore Mine (“Khumani”) has been completed on time and within budget.
The ARM and Assore Board of Directors have approved additional capital expenditure of R5.5 billion for the completion of the Khumani Expansion Project, to increase Khumani’s capacity from the current level of 10 mtpa to 16 mtpa. Of the 6 mtpa expansion, 4 mtpa is intended for the export market and 2 mtpa for the domestic market.
Assmang has received a commitment from Transnet to extend the current Iron Ore Export allocation on the Sishen/Saldanha export channel from 10 mtpa to 14 mtpa, increasing Assmang’s export capacity accordingly. This dovetails with the Iron Ore channel expansion from 47 mtpa to 60 mtpa.