By Joe Hoppe

 

Anglo American PLC said Monday that its majority-owned subsidiary Kumba Iron Ore Ltd. mining company has received notice of force majeure from Transnet SOC Ltd., due to strike action by the latter's unions, hitting expected production.

The diversified mining company said Kumba--which it holds a 69.7% stake in--has implemented contingency plans to safeguard assets and minimize operations, but it expects a hit to production due to disruption to Transnet's rail and port services.

The estimated hit is around 50,000 metric tons per day for the first seven days, and around 90,000 tons a day thereafter. Export sales will be hit by around 120,000 tons a day.

In the third quarter last year, Kumba produced 10.8 million tons of product, and sold 10.1 million tons.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

October 10, 2022 02:35 ET (06:35 GMT)

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