Kumba Iron Ore has reported lower production for the first half, but has kept its annual production guidance unchanged at between 31- and 33-million tonnes (Mt).Total production decreased by 3% to 17.7Mt compared with the first half of 2025, reflecting a softer contribution from Kolomela, partly offset by a solid operating performance at Sishen, CEO Mpumi Zikalala said in a production and sales report for the six months ended June. Sales volumes were 1% lower at 18.6Mt, largely due to the first of two planned 10-day Transnet logistics maintenance shutdown in May, she said. “Notwithstanding this, improving momentum in operational and logistics performance supports our expectation of delivering the full year production and sales guidance of 31–33Mt and 35–37Mt, respectively,“ she said.“Our high-iron-ore-quality products continue to support our premium pricing. We achieved an average realised price of $90 per wet metric tonne (wmt), 8% above the Fastmarkets 62% iron (Fe) free-on-board (FOB) equivalent price, benefitting from resilient iron ore market prices and a recovery in lump premium from the lows seen earlier in the year.” The group’s dollar-denominated C1 unit cost in the first half was impacted by a stronger rand and above-inflation increases in key mining input costs compared to the prior period, largely reflecting the effects of the Middle East conflict. We note that the cost environment remains volatile, with heightened risk associated with ongoing developments in the Middle East— Kumba Iron Ore“In response, we are progressing a range of initiatives to enhance operational efficiency and optimise our operating and capital cost base,” Zikalala said.To better reflect prevailing market conditions, the exchange rate assumptions underpinning the C1 unit cost guidance of about $45/wmt has been revised from R16.00 to R16.50 to the US dollar. The group said unit costs for the year are expected to remain within guidance of R530–R560/dry metric tonne (dmt) for Sishen and R430–460/dmt for Kolomela. However, it expects Sishen’s unit cost to move towards the upper end of its range and Kolomela towards the middle of the range.“We note that the cost environment remains volatile, with heightened risk associated with ongoing developments in the Middle East.”Kumba said overall, rail performance has stabilised with less derailments experienced in the first half. “In addition, proactive logistics maintenance was undertaken in May 2026 as part of the Ore Corridor Restoration programme to address the maintenance backlog and performance turnaround of the Ore Export Channel (OEC),” it said.We are strengthening our energy resilience and supporting lower energy costs and a lower carbon-steel value chain through the integration of wheeled renewable electricity into our Kolomela operations— Mpumi Zikalala, CEOThe maintenance included replacing 101km of rail, enabling speed restrictions to be lifted on 26km of the Export Corridor. At Saldanha Bay Port, critical port equipment was refurbished, and Tippler 3 was cold-commissioned. Throughput rates are expected to improve following finalisation of the commissioning later this year. Due to this, ore-railed to Saldanha Bay Port decreased by 8% in the second quarter to 8.9 Mt. The group said Sishen’s production will be weighted to the first half, due to the tie-in of the ultra-high-density media separation (UHDMS) project in the second half.Sales are not expected to be impacted owing to the planned drawdown of finished stock during the tie-in, it said.Kumba is investing in UHDMS technology at Sishen to boost the quality of iron ore and extend the mine’s operational life. It expects its new UHDMS technology to triple the proportion of premium quality ore production at Sishen, Business Day reported previously.Zikalala said the first UHDMS modules are in the first phase of commissioning, and pre-shutdown work is on track for the main plant tie-in starting in August.“In parallel, we are strengthening our energy resilience and supporting lower energy costs and a lower carbon-steel value chain through the integration of wheeled renewable electricity into our Kolomela operations,” she said.Business Day