Kumba 2011 Profit Rises 19% on Iron-Ore Price Gains, Volumes

Kumba Iron Ore, a unit of Anglo American, said 2011 profit jumped 19 percent after it reduced discountsecond hand cement grinding unit at gaboned ore sales to steelmaker ArcelorMittal South Africa Ltd. and increased exports.

Net income rose to 17 billion rand, or 52.97 rand a share, from 14.3 billion rand, or 44.52 rand, a year earlier, the Pretoria-based company said today in a statement. Sales advanced 25 percent to 48.6 billion rand. Kumba’s sales of discounted ore to ArcelorMittal South Africa fell 28 percent, giving it more scope to gain from higher international prices. Average iron-ore prices in China, a global benchmark, climbed 14 percent last year as Chinese and Indian steel mills increased purchases, according to The Steel Index. The company expects export sales volumes to grow by about 3 million metric tons in 2012 from 37.1 million tons last year as volumes from its Kolomela mine increase. China will have to import iron ore to meet...