The unit of Anglo American said reversal, net of tax and non-controlling interest, was 2.6 billion rand and would be included in its basic earnings.
Kumba Iron Ore Mining News
The company beat expectations on Thursday with a 5% increase in 2017 production.
Shareholders hadn’t received dividends since 2015, when iron ore fell below $40 a tonne amid a global crash in commodity prices.
Kumba Iron Ore Limited today announces the appointment of Mr Bothwell Mazarura as Chief Financial Officer and Executive Director, effective 1 September 2017.
China bulls kick iron ore price 6.5% higher.
Stuart Chambers, 61 and former chairman of UK chip designer Arm, will join Anglo as a non-executive director in September, replacing Parker in November.
Both iron ore and diamond output rose in the first quarter thanks to a continued ramping-up of the company's Minas Rio mine in Brazil and improvements in the gem market.
Along with other changes, Zarina Bassa has informed Kumba of her intention to step down as an independent non- executive director at the Company’s forthcoming AGM on 11 May 2017, after serving eight years.
The world's number five diversified miner posted its first annual net profit in five years.
The Anglo American's unit logged earnings of $607 million for 2016, basically double the $304 million it recorded in 2015.
While iron ore prices have climbed 90% in the last year to over $80 a tonne, the sale of Kumba would prove prudent for Anglo's long-term outlook, given its high debt load, BMI analysts say.
The miner, Africa's largest iron ore producer, will pay R2.5 billion, considerably less than the original R6.5 billion it had been asked to cough up.
The company, Africa's largest iron ore producer, expects profits to more than double this year on the back of higher iron ore prices and a weak rand.
While the miner is not longer being pressed to include its platinum assets in the divestment plan, the issue of how to package mines and which ones to include, remains a bone of contention.
Kumba is pleased to announce the appointments of Ms Nonkululeko Dlamini (nee Veleti) and Mr Seamus French as non-executive directors to the Board, with effect from 1 November 2016.
South Africa has granted the miner, a unit of Anglo American, previously disputed mining rights at the operation, ending a seven-year dispute.
South Africa's Public Investment Corporation (PIC), which owns 14.5% of Anglo, believes the mining giant may not realize the full value of its assets.
The company however is still debating whether to sell or spin off its majority stake in Kumba Iron Ore Ltd, Africa's top producer of the commodity.
The miner shed over 3.7% after two of its business divisions — Amplats and Kumba — warned they expected full-year earnings to shrink more than previously flagged.
While final results will be released on July 22, Kumba Iron Ore expects first-half profit to slide by as much as 19%.
The deal, effective Jan. 1, marks the end of all existing legal battles between the two companies.
Global credit rating firm Standard and Poor's (S&P) downgraded Wednesday its outlook on Anglo American PLC (LON:AAL) to negative from stable as a result of growing concerns about the effects of South Africa’s mining strikes on the company's mining operations and on the wider economy.
Increased sales and higher export prices were behind a likely doubling of full year profits, the South African iron ore miner said on Monday.
The announcement comes after Kumba iron ore appealed against the decision last week