Kumba closes Thabazimbi mine

[Seriously]

http://www.iol.co.za/business/companies/kumba-closes-thabazimbi-mine-1.1886084

Sad! What's next.

The coal miner, a business unit of the Anglo American group, says its decision “follows an extensive review of the Thabazimbi mine and is in response to a combination of factors that have affected the mine’s economic viability”.

Kumba explains these factors include that the mine is more than 80 years old and has, over the past 15 years, had its closure postponed 6 times through a number of mine life extension plans.

In addition, says Kumba, it faces difficult mining conditions due to the inherent geo-technical complexities, which are now exacerbated by a limited remaining iron ore resource.

The mine also has very high operating costs because of high waste stripping requirements and experienced a slope failure on 6 June 2015, which has rendered the iron ore resources in the one remaining pit uneconomic to mine.

Closing the mine will affect about 800 employees and 360 contractors, with whom Kumba is conducting extensive consultations.

 

[The_Unbeliever]

Eina

 

[rza]

I worked for this okes many years ago, and it was the best company in the country by a long mile. I never thought they will ever struggle like this. Sad to see. I still have friends who work there.

 

[R13...]

Iron ore prices have been on a downward trend for a long time now, so an expensive mine is probably something you can't keep online at such prices.

 

[Pitbull]

I worked for this okes many years ago, and it was the best company in the country by a long mile. I never thought they will ever struggle like this. Sad to see. I still have friends who work there.

Iscor/Kumba has never had it easy. Amazing company to work for but the pits dry up, rand weakens and so it goes. The odds of them ever closing Sishen in our lifetime though is extremely slim Thabazimbi has been struggling for a long time.

 

[dlk001]

Iscor/Kumba has never had it easy. Amazing company to work for but the pits dry up, rand weakens and so it goes. The odds of them ever closing Sishen in our lifetime though is extremely slim Thabazimbi has been struggling for a long time.

Sishen will have to significantly restructure to lower operating costs. If BHP, Rio Tinto and Vale continue to oversupply the market, China demand drops further, then Sishen will be in trouble.

 

[dlk001]

The coal miner, a business unit of the Anglo American group, says its decision “follows an extensive review of the Thabazimbi mine and is in response to a combination of factors that have affected the mine’s economic viability”.

Its an Iron Ore Mine....mistake there

 

[rph72]

What will happen to the shares? Inherited a few recently.

 

[rza]

What will happen to the shares? Inherited a few recently.

Share price used to be close to R600 two years ago, and now it's just over R100, so if you inherited the shares two years ago then you made massive losses.

 

[rph72]

Share price used to be close to R600 two years ago, and now it's just over R100, so if you inherited the shares two years ago then you made massive losses.

Only got them transferred to me last month. Got the same amount of shares in Exxaro.

Over the last 12 months Exxaro lost about 50% & Kumba 70%.

Fortunately those 2 only amount to 8% of my portfolio. The other shares are performing much better.

 

[rza]

Only got them transferred to me last month. Got the same amount of shares in Exxaro.

Over the last 12 months Exxaro lost about 50% & Kumba 70%.

Fortunately those 2 only amount to 8% of my portfolio. The other shares are performing much better.

You got them at a good price, but both of them are dependent (especially Kumba) on factors they can't control, i.e China's demand for steel and the oversupply of iron-ore. If I were you I'd sell them both and stay away from miners and buy a more consistent share like Aspen, Naspers, Coronation, etc.

 

[rph72]

You got them at a good price, but both of them are dependent (especially Kumba) on factors they can't control, i.e China's demand for steel and the oversupply of iron-ore. If I were you I'd sell them both and stay away from miners and buy a more consistent share like Aspen, Naspers, Coronation, etc.

Thanks, as they only amount to 8% of my portfolio, I will stick with them a while longer.

 

[LazyLion]

The entire metals industry is under pressure... even the (legit) scrap dealers...
http://www.fin24.com/Companies/Industrial/South-Africas-steel-industry-is-on-the-ropes-20150726

 

[atomcrusher]

Its an Iron Ore Mine....mistake there

Oh, the Irony!