Transnet’s poor service cost Kumba Iron Ore R10bn in earnings last year
Net profit of the Anglo American subsidiary and the largest iron ore producer in SA plunged 55% to R19.7bn from R43.7bn in 2021, while headline earnings per share fell 46% to about R56 for the year to end-December 2022.
“Just in the fourth quarter the impact was about R6.5bn. For the year the impact was over R10bn,” she said. Zikala said that while rail performance on the iron ore line declined, the company is pleased with the collaboration announced by the Minerals Council SA and the Transnet board to work together on the recovery plan for all heavy haul lines. “We are seeing greater quality collaboration, but there is clearly more work that needs to be done,” she said.
Global iron ore prices dropped 27% to $100/tonne as commodity markets came under pressure. In steel markets, this was driven by the secondary effects of the extended Covid-19 lockdown in China and Europe’s energy crisis.
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