12th Nov 2019 08:04
(Alliance News) - Anglo American PLC on Tuesday updated its production guidance for its iron ore and metallurgical coal operations over the next three years, as it prepares to host an investor visit during the week in Queensland, Australia.
For 2019, Anglo expects iron ore production from its Minas-Rio operations in Brazil to reach 23 million tonnes, up from its previous guidance of 20 to 22 million tonnes.
This would reflect a sharp increase from 3.4 million tonnes in 2018. Iron ore production was restarted at Minas-Rio in Brazil in December 2018 since being suspended in March the year before due to pipe leakages.
Iron ore output from Johannesburg-listed subsidiary Kumba Iron Ore Ltd remained in the range of 42 to 43 million tonnes, reflecting a 0.2% to 2.6% dip from 43.1 million tonnes the prior year.
Metallurgical coal production guidance was also left alone, remaining at 22 to 24 million tonnes, marking a 0.9% to 10% rise from 21.8 million tonnes in 2018.
Looking further ahead, Anglo increased its guidance for Minas Rio, expecting 2020 production in the range of 22 to 24 million tonnes, 24 to 26 million tonnes for 2021 and new guidance for 2022 set between 23 and 25 million tonnes.
Previous guidance for Minas Rio was 21 to 23 million tonnes for 2020, and 22 to 24 million tonnes for 2021.
Kumba Iron Ore Ltd's output guidance from 2020 to 2022 was 43 to 44 million tonnes for each year.
For 2020 and 2021, this is a lowered guidance from 43 to 45 million tonnes.
Finally, for metallurgical coal, Anglo expects 2020 production in the range of 22 to 24 million tonnes, 23 to 25 million tonnes for 2021, and 26 to 28 million tonnes for 2022.
2020's previous guidance was 23 to 25 million tonnes, and 2021's prior expectations was between 25 to 27 million tonnes.
Anglo said its planned increase in metallurgical coal production was pushed back by a year, due to the phasing of the wash plant expansion at the Moranbah-Grosvenor complex in Australia.
"We are today upgrading our 2019 production guidance for Minas-Rio by a further 10% - with a proportionate decrease in unit costs - while also providing volume guidance for the next three financial years, as well as long term volume and unit cost potential," said Seamus French, chief executive officer of Bulk Commodities.
"Looking forwards, we have a disciplined approach to growth within our portfolio, with numerous debottlenecking and life extension opportunities in the medium term across our iron ore and met coal assets," French added.
Shares in Anglo American were up 0.6% at ZAR386.42 on Tuesday in Johannesburg, while Kumba Iron Ore shares were 3.0% higher at ZAR370.66.
Anglo American is headquartered in London, and Kumba Iron Ore in Gauteng, South Africa.
By Dayo Laniyan; [email protected]
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