Kumba Iron Ore Ltd., Africa’s largest producer of the steelmaking-ingredient, sank the most in a more than a week in Johannesburg trading as output declined and it prepared to close a mine.
Kumba fell 5.6 percent, the most since July 7, to close at 125 rand. The stock sank 48 percent this year, the most of any in the FTSE/JSE Top40 Index tracking the largest companies in South Africa, as an iron-ore glut pushed prices down 29 percent.
The company’s output in the three months to June fell 9 percent from a year earlier to 10.4 million metric tons, Pretoria-based Kumba said in a statement Thursday. Kumba will also close its Thabazimbi mine, which produced 328,000 tons in the period, it said separately. That will affect about 800 employees and 360 contractors, the company said.
Kumba has cut dividends, capital spending and jobs as the collapse in iron ore prices shrank profit margins.