BUSINESS DAY TV: Can the rally in the iron ore price be sustained in 2017?
Themba Mkhwanazi, CEO of Kumba Iron Ore, speaks about how the recovery in metal prices is benefiting its margins and what 2017 is likely to hold
Themba Mkhwanazi is CEO of Kumba Iron Ore BUSINESS DAY TV: December 2015 was a much grimmer time for Kumba Iron Ore thanks to plunging metal prices, and in February it was one of the assets put up for sale by parent Anglo American. But a remarkable recovery in the commodity has taken place since and, as a result, Kumba says that earnings for the full year could be at least 20% higher. But can the rally in the iron ore price be sustained in 2017? Joining us on News Leader to discuss this further is Themba Mkhwanazi, CEO of Kumba Iron Ore. The second aspect which has contributed to this is probably a tempered supply growth. We’ve clearly had the issue with Samancor which took out 30-million tons, and, as you know, the mergers of Rio Tinto, Vale and BHP [Billiton] in terms of their recent market guidance have guided 25-million tons less of volume into the market. And then the third aspect which has been in play has been the real speculative activity on the Dalian Commodity Exchange. BD...
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