Anglo American's R11.2 billion ultrahigh dense-media separation upgrade at Kumba's Sishen mine in South Africa commenced construction in November 2024, with execution now at 45% as of mid-2026. The project will triple premium ore output to 55% of production by 2028, reshaping procurement demand across SADC mining and manufacturing corridors.

Energy & Mining 1 September 2026 • 4 min read

Premium iron ore from Sishen will command higher margins in steelmaking because it reduces carbon emissions in the blast furnace. That market dynamic, combined with a 15-million-tonne annual reduction in waste mining, is triggering a major reshaping of South African mineral logistics and industrial procurement across the SADC region.

What Sishen UHDMS actually does

The UHDMS project will convert the current dense media separation processing plant at Sishen to UHDMS technology, which uses specialised ferrosilicon in the processing plant to separate valuable iron-ore from waste. The main tie-in of the Sishen DMS plant is scheduled to start in August 2026. As at June 30, 2026, overall project progress was about 45%, with 96% of detailed engineering completed. Structural steel installation was progressing well, with 28% installed; a further 47% is planned for the second half of 2026, with the balance due by the end of 2028. The technology is not new to mining, but applying it at Sishen's scale makes this one of the largest processing plant conversions underway in the African minerals sector.

The production numbers that matter

UHDMS technology is expected to increase the volume of premium iron ore to roughly 55% of Sishen's production, up from the current roughly 18%. The UHDMS process will reduce the mine's cutoff grade from 48% to 40% iron, improving the waste stripping ratio from 3.9 to 3.3 and reducing waste mining volumes by about 15-million tonnes a year. This will lower mining costs by an average of $2.50/t to $3/t, while maintaining Sishen's 70:30 lump:fine product ratio and an average iron content of 64%. Those cost reductions compound across the supply chain because less waste means lighter load trains, less rail congestion, and more efficient Saldanha port operations.

Why green steelmaking drives the premium

Premium iron ore is increasingly highly valued by customers because it reduces carbon emissions from the steelmaking process and so plays a key role in green steel production. Global steelmakers face tightening environmental regulations, particularly in Europe and East Asia, which are driving demand for higher-purity ore that lowers furnace fuel consumption. Sishen produces iron-ore at an average iron-content quality of about 64% and an average lump:fine ratio of 70:30. That spec already exceeds most global benchmarks, and the UHDMS upgrade allows Kumba to concentrate even more of its output in the premium band, commanding a pricing premium on world markets.

Saldanha port and rail logistics implications

Kumba Iron Ore said Transnet's performance at Saldanha Bay Port reflects better equipment availability relative to the comparative 2024 period, and as a result its sales increased by 8% in the second quarter to June 30, 2025. In 2025, the National Department of Transport launched an extensive Request for Information (RFI) process aimed at enabling private sector participation in critical rail and port corridors, including the Northern Cape-Saldanha Bulk Minerals Corridor, which handles significant manganese and iron ore export volumes. The RFI attracted 51 formal submissions specifically for the iron ore and manganese corridor, reflecting strong market interest in improving the efficiency and competitiveness of this route. As Sishen shifts its product mix toward premium ore, the 861-kilometre Sishen-Saldanha rail corridor will see higher-value tonnages moving through, intensifying pressure on rail and port operators to maintain uptime and reduce derailment rates.

Extended mine life and regional supply security

This project also creates the potential to extend Sishen's life-of-mine until 2044. That extension matters for SADC industrial planning because Sishen accounts for a significant share of Southern Africa's iron ore exports, which supply steelmakers across the region, particularly in South Africa but also indirectly supporting manufacturing in Namibia, Zambia, and Botswana through cross-border trade. Overall, the R11.2 billion total investment in the UHDMS technology is expected to result in an EBITDA margin of more than 50% and an IRR of over 30%. That financial profile signals confidence in the project's returns, and suggests that Anglo American and Kumba will continue to invest in the region's mining infrastructure.

About the Author
	Andre Klynsmith Co-Shareholder · Technology & Operations Andre's expertise spans technology, e-commerce, AI integration, and industrial procurement systems, driving Marine Ropes' digital transformation across Southern Africa. salesdesk@marine-ropes.com | marine-ropes.com