JOHANNESBURG, July 22 (Reuters) – Kumba Iron Ore (KIOJ.J), a unit of global miner Anglo American (AAL.L) reported a 10 percent rise in exports sales volumes and said it remained committed to raising annual production volumes.
South Africa’s Kumba said export sales volumes rose to 18.8 million tonnes, while its operating profit was up 64 percent to 11.2 billion rand ($1.49 billion). It said there was uncertainty over future iron ore pricing mechanism.
Kumba said attributable and headline earnings for the period were 20.27 rand and 20.28 rand respectively.
“Export sales volumes into China are expected to normalise at around 60 percent of the geographical sales mix,” the company said in a statement.
China is the world’s largest iron ore buyer and consumes more than half of the world’s traded ore.
Kumba said export sales for the second quarter of 2010 at 9.5 million tonnes was 14 percent lower than a year earlier.
Kumba, currently involved in an iron ore supply dispute with ArceloMittal’s South African unit (ACLJ.J)(MT.N)(ISPA.AS), said domestic sales volumes from Thabazimbi mine remain dependent on the off-take requirements from the Arcelormittal unit. (Reporting by Shapi Shacinda; Editing by Stella Mapenzauswa)