UPDATE 2-Kumba FY headline EPS up 43 pct as demand booms

(Adds details from CEO interview, shares)

JOHANNESBURG, Feb 14 (Reuters) - Kumba Iron Ore (KIOJ.J: Quote, Profile, Research, Stock Buzz), Africa's biggest iron ore producer, posted a 43 percent leap in full-year headline earnings per share as prices and demand soared last year and it predicted an equally profitable 2008.

Kumba shares jumped more than 4 percent on the results and after Chief Executive Ras Myburgh said the company expected to raise 2008 production by 20 percent to 38.9 million tonnes, despite a domestic power crisis.

"The economies of China and the rest of Asia are expected to continue growing on the back of strong domestic demand and high levels of domestic fixed investment, providing continued strong growth in the demand for iron ore," Kumba said in a statement.

"As a result, prices are expected to increase substantially in the current iron ore year and remain firm in the medium term."

Myburgh said Kumba would plug energy gaps with diesel, helping it to improve on 2007's record production of 32.4 million tonnes. Increased production from its Sishen project is expected to add 13 million tonnes in 2009.

South Africa has asked miners to reduce electricity consumption by 10 percent to help ease pressure on the country's strained power grid.

Myburgh said even if the restrictions lasted until 2012 as reported, Kumba was prepared to limit the impact on production.

"If the crisis doesn't deepen and we only have to reduce (power consumption) by 10 percent, we believe the impact won't be significant," he told Reuters.