Anglo American Narrows Diamonds, Copper Iron Ore Guidance Toward Lower End of Range -- Commodity Comment
21 October 2021 - 6:14PM
Dow Jones News
By Jaime Llinares Taboada
Anglo American PLC on Thursday reported higher production for
the third quarter of the year, but narrowed guidance for diamonds,
copper and iron ore toward the lower end of the range. Here's what
the mining company had to say:
On 3Q production:
"Production is up 2% compared to Q3 of last year, with our
operating levels generally maintained at approximately 95% of
normal capacity."
"The increase in production is led by planned higher rough
diamond production at De Beers, increased production from our
Minas-Rio iron ore operation in Brazil, reflecting the planned
pipeline maintenance in Q3 2020, and improved plant performance at
our Kumba iron ore operations in South Africa."
"Copper production decreased by 6% due to planned maintenance at
Collahuasi, while total year to date production across all copper
operations increased marginally by 1% despite ongoing water
availability constraints caused by record drought conditions in
Chile."
"Platinum Group Metals (PGMs) operations delivered a 39%
increase in refined output, reflecting stable performance from the
ACP Phase A unit"
"Iron ore production increased by 15%, driven primarily by a 22%
uplift from Minas-Rio, reflecting the planned maintenance period in
Q3 2020 for routine internal scanning of the pipeline."
"Export metallurgical coal production decreased by 11% to 4.3
million [metric] tons due to operations at Moranbah being impacted
by challenging geological conditions for most of the quarter."
"Primary nickel production increased by 2% over the period and
by-product nickel from our PGMs business increased by 20% to 6,000
tons."
"Rough diamond production increased by 28% to 9.2 million
carats, reflecting planned higher production to meet stronger
demand for rough diamonds."
"Manganese ore production increased by 7% to 1,003,600 tons,
benefiting from improved productivity at the South African
operations."
On 2021 guidance:
"We are broadly on track to deliver our full year production
guidance across all products, while taking the opportunity to
tighten up the guidance for diamonds, copper and iron ore within
our current range as we approach the end of the year."
"[Diamonds] Production guidance is tightened to 32 million
carats (previously 32-33 million carats) (100% basis), due to
continuing operational challenges, subject to the extent of any
further Covid-19 related disruptions."
"[Copper] Production guidance is tightened to 650,000-660,000
tons (previously 650,000-680,000 tons), due to plant performance
challenges at Los Bronces, subject to water availability and the
extent of any Covid-19 related disruption."
"[Iron ore] Production guidance (wet basis) is tightened to 64.5
million tons (previously 64.5-66.5 million tons) (Kumba 40.5
million tons (previously 40.5-41.5 million tons) owing to rail in
South Africa performing below planned levels; Minas-Rio 24 million
tons (previously 24-25 million tons) owing to lower plant
availability). Both are subject to the extent of further Covid-19
related disruption and Kumba is subject to rail performance."
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
October 21, 2021 02:59 ET (06:59 GMT)
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