Sishen-saldanha iron ore line open

RAILWAY activities on the Saldanha iron ore export line have resumed after state-owned Transnet restored a railway bridge on South Africa’s critical Sishen-saldanha iron ore line.

Transnet said yesterday that the line, which exports iron ore from mines in the Northern Cape to the port of Saldanha Bay in the Western Cape, had resumed after a reconstruction programme aimed at preventing mining houses from incurring losses.

Group chief business development officer Gert de Beer said yesterday that Transnet had worked closely with its customers to ensure the line resumed urgently.

“When the incident took place, the first people involved were our customers. Our engagement meant that we gave updates on all the developments in getting the line reopened and operational,” he said.

Transnet halted the railway line and declared force majeure after a truck carrying an abnormal load that exceeded the bridge height had collided into a railway bridge causing structural damage to the bridge and the railway on November 28.

It also said yesterday that the newly-constructed temporary bridge had passed all technical assessments and was now open for business.

The tests were first carried out on an empty train last Friday, followed by a heavy-laden train the same day.

In May it was reported that Kumba, the biggest iron ore producer in sub-saharan Africa, had been forced to declare a force majeure to its customers – its first in five years – after a series of derailments on the iron ore export channel.

Kumba’s chief executive, Themba Mkhwanazi commended Transnet on their swift response, which ensured that the iron ore export channel line was restored earlier than planned.

Kumba expects to meet the lower end of the 2018 guidance of between 43 million tons and 44 million tons for total production and 42 million tons and 44 million tons for total sales, he said.

Meanwhile Afrimat, the listed open-pit mining group and industrial minerals and construction materials supplier, has thanked Transnet for its prompt response.

Afrimat said last month that it would not be in a position to export its full iron ore production for the month of December because of the force majeure on the line.

The group said in 2015 that it was seeking to increase its revenue from outside South Africa from almost zero to 50 percent in the next five to seven years to reduce the country risk in South Africa.

In the six months to August this year, bulk commodities contributed 25 percent of the group’s profits and Afrimat chief executive Andries van Heerden said it expected bulk commodities to eventually become the biggest contributor to group profits.