On Tuesday 19 February 2018, Kumba Iron Ore released the company’s year-end financial results for the twelve months ended 31 December 2018.

Of significance, is the value the company continues to share with its stakeholders.

Themba Mkhwanazi, Kumba CEO said “For us, long-term success can only be possible if we have mutually beneficial partnerships with our employees and contractors, our customers, shareholders, government, suppliers, and the communities where we operate. Our people are at the heart of our business and investing in them not only rewards them for their hard work, but it also strengthens our business.”

For the duration of 2018, Kumba supported its employees and their families with R4.6-billion in salaries and benefits.

The company continues to enjoy strong, long-term relationships with its customers – some of which have been their partners for over 40 years. By improving the quality of their products, they believe they are better able to serve the needs of their customers.”

For their shareholders, including their employees, and their empowerment partners, Kumba created R12.7-billion of value in dividends. 

The South African fiscus also benefitted from their consistent performance, receiving around R4-billion in income tax, and royalties of close to R1-billion. 

Kumba continued to promote BEE suppliers with procurement of close to R12-billion of products and services. Of this, R1.4-billion was spent with 267 host community businesses, up from 162 in 2017 and 40% above what was targeted for 2018. In line with their aspiration to create 3 jobs for every 1 permanent onsite job by 2025, these businesses created around 2700 new jobs and provided income for over 16 000 people.

Communities in the Northern Cape have benefitted from social investment projects amounting to R124-million. We have several programmes that support and develop the local community in a sustainable manner. This has been evident in the new community of Siyathemba, the new purpose-built suburb in Kathu for the community members relocated from Dingleton.

Kumba undertook the project in line with world-class, socially-aligned and environmentally-conscious principles, guided by local legislation and statutory requirements, as well as the best-practice codes of the International Finance Corporation.

According to the Kumba’s Sustainable Development Report of the last four years – 2014 to 2018 – huge progress has been made. So far, Kumba has invested in excess of R300-million – a total of R313 461 670 to be exact – towards sustainable development in Siyathemba. The investment has gone to support a range of community development projects and entrepreneurs, including business development training, procuring goods and services from small medium and micro enterprises (SMMEs) based within Siyathemba, as well as youth training and development. Local businesses that have benefitted from providing services under the Siyathemba resettlement programme include:

Vikele Construction – specialising in construction and landscaping services ;

Louisque 703 and Jan Saal – specialising in electrical, demolition, landscaping and fencing services ; Colren Trading – a women-led small business specialising in light scale construction ; Mocwagole Passenger Transport – specialising in transport services; and Dingleton Skoonmaakdienste – a women-led small business specialising in cleaning services.

These business opportunities have boosted the local economy through local jobs, as SMMEs in Siyathemba employ people from the area and sub-contract other service providers to assist them to deliver their contracts.

In addition, most SMMEs were also given training and development to boost their entrepreneurial skills and confidence, to grow their businesses maturity and their understanding of tender processes. This improves their chances of doing further business with the mining company and in other sectors.

“All these highlight the value that Kumba has delivered to our stakeholders, including employees and host communities on inclusive growth in the areas where we operate, and demonstrates our commitment to President Ramaphosa’s 10-point challenge to the mining industry,” Mr Mkhwanazi concluded.