JOHANNESBURG, July 26 (Reuters) – Kumba Iron Ore said on Tuesday that Themba Mkhwanazi would take the helm as chief executive from Sept 1, replacing Norman Mbazima, who is stepping down to focus on his role as deputy chairman of Anglo American South Africa.
- Mkhwanazi, a former Rio Tinto manager, has been chief executive officer of Anglo American’s Coal South Africa business since May 2014.
- Kumba’s first-half results came in as expected, with the Anglo American unit posting a 20 percent rise in headline earnings per share to 9.41 rand.
- Kumba had flagged to the market that it expected first-half profit to increase between 14 and 23 percent because of a deferred tax asset in the comparative period.
Anglo’s Mkhwanazi Becomes Kumba CEO as Iron Company Profit Rises
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(Bloomberg) —Â Anglo American Plc named Themba Mkhwanazi as chief executive officer of Kumba Iron Ore Ltd., switching him from the same role at its South African coal unit, as the steelmaking ingredient producer reported a 20 percent increase in first-half profit.
Mkhwanazi takes over on Sept. 1 from Norman Mbazima, who’s stepping down after four years and will remain deputy chairman of Anglo American’s South African division, the London-based company said in a statement Tuesday. July Ndlovu replaces Mkhwanazi as head of Anglo’s South African coal division, moving from head of processing at Anglo American Platinum Ltd.
Kumba, Africa’s biggest producer of iron ore, reported first-half headline earnings of 3 billion rand ($210 million), up 20 percent on the previous year, driven by cost-cutting at its Sishen mine in South Africa. Output dropped by 21 percent, in line with the mine’s revised plan.
#MiningIndaba Anglo American's Coal CEO, Themba Mkhwanazi says coal will remain a key player as an energy source for the foreseeable future.
— EWN Reporter (@ewnreporter) February 9, 2016
Like many miners, Kumba has been hit hard by the 70 percent plunge in iron-ore prices over the past five years as a supply glut fed by Rio Tinto Group, BHP Billiton Ltd. and Vale SA met a slowing Chinese economy, the biggest consumer of the metal. One of the Johannesburg Stock Exchange’s biggest dividend payers in the early 2010s, Kumba axed the payout last year and is halving the amount of ore it mines, cutting its workforce by a third and selling off stockpiles of the metal.
Cash Improvement
Kumba’s net cash position was 548 million rand at June 30 compared with net debt of 4.6 billion rand on Dec. 31, but it won’t yet resume paying dividends, it said. The company is on course to achieve its full-year production forecast of about 39 million tons.
Majority owner Anglo American is planning to offload its stake in Kumba, either through a spinoff or sale. Anglo instead wants to focus on copper, platinum and diamonds.
Kumba shares have tripled this year to 126.50 rand at yesterday’s close, boosted by a 31 percent increase in iron-ore prices over the same period.