Anglo American Sees Lower Production; Targets to Cut Cost by $1 Billion Next Year -- Update
08 December 2023 - 7:15PM
Dow Jones News
By Christian Moess Laursen
Anglo American said it expects lower production next year amid
near-term constraints and volatile market conditions, and that it
plans to lower costs by $1 billion.
The multinational diversified miner said Friday its output for
2023 increased by around 3% on year, driven by a ramp-up of
operations at its Peruvian copper project Quellaveco and solid iron
ore production, which offset lower platinum metals and diamonds
production.
However, for the year ahead, the mining giant expects production
to decrease by around 4%, including reducing production at its
Kumba iron ore operations in South Africa.
In a response to continuing market volatility, especially seen
in the platinum metals market, Anglo American expects to reduce
costs by $1 billion in 2024.
As a result, the miner expects to deliver lower cost per unit in
2024 and $1.8 billion lower capital expenditure in 2023-26.
"We are focused on what we can control - safety, operational
discipline and capital allocation," Chief Executive Duncan Wanblad
in a preleased statement ahead of the investor briefing later
today.
"Looking ahead, the fundamental supply and demand picture for
many metals and minerals is ever more attractive," Wanblad
added.
Anglo American's majority-owned platinum-miner Anglo American
Platinum said in a separate statement that it expects to deploy a
series measures to reduce costs annually by around 5 billion South
African rand ($266.5 million) amid a price rout ripping through the
world's top platinum-producing country and persistent cost
inflation.
Anglo American Platinum said these include embedding
efficiencies, stepping up cost-saving initiatives and
re-prioritizing its capital allocation.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
December 08, 2023 03:00 ET (08:00 GMT)
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