23rd Jul 2026 08:54
(Alliance News) - Anglo American PLC said on Thursday it had delivered what it called "strong" production performance in the second quarter of 2026, but warned that it had started to see cost linked to the Middle East conflict creep in.
The London-based diversified miner noted that it was beginning to see some inflationary pressures mainly through higher fuel and other mining consumables, as the Gulf turmoil continued to cause global market volatility.
Despite the US-Iran tensions, Anglo American said the performance during the second quarter across both copper and iron ore tracked well to plan.
Copper production for the first half that ended June 30 inched up 0.4% to 343,600 tonnes from vs 342,200 tonnes a year earlier.
For the second quarter, copper output was flat at 173,000 tonnes, compared to the same quarter a prior year, but rose 1.8% from 170,000 tonnes in the first quarter to March 31.
In copper operations, both Collahuasi in Chile and Quellaveco in Peru increased production from the first quarter, while the restart of the second plant at Los Bronces in Chile continued to provide incremental profitable production, Anglo American said.
Premium iron ore production fell 2.5% to 30.6 million tonnes in the first half from 31.4 million tonnes. Output for the second quarter slipped 3.1% to 15.4 million tonnes year-on-year from 15.9 million tonnes, and was down 1.3% from 15.2 in the first quarter.
Kumba Iron Ore Ltd in South Africa and Minas-Rio iron ore operation in Brazil maintained stable operational performances, Anglo American said.
In a separate filing, Kumba reported that its iron ore production declined 2.7% to 17.7 million tonnes for the six months that ended June 30, from 18.2 million tonnes a year before, reflecting a softer contribution from Kolomela, partly offset by solid operating performance at Sishen.
Iron ore output for the second quarter dropped 5.4% to 8.8 million tonnes year-on-year from 9.3 million tonnes, but was steady from 8.8 million tonnes on-quarter, Kumba said.
Kumba maintained its 2026 production guidance at between 31 million tonnes and 33 million tonnes, compared to 36.1 million tonnes in 2025.
In other operations, Anglo American said manganese ore production surged 52% in the first half to 1.7 million tonnes from 1.1 million tonnes on-year. Output for the second quarter was up 22% to 908,000 tonnes year-on-year from 746,000 tonnes, and was 20% higher from 759,000 tonnes on-quarter.
Diamonds production for the first half rose 46% to 14.9 million carats from 10.2 million carats. Production for the second quarter was 7.8 million carats year-on-year, up 90% from 4.1 million carats and was up 9.8% from 7.1 million carats on-quarter.
Steelmaking coal production fell 17% in the first half to 3.6 million tonnes from 4.3 million tonnes. Production for the second quarter was down 4.8% to 2.0 million tonnes year-on-year from 2.1 million tonnes, and slumped 33% from 1.5 million tonnes on-quarter.
Anglo American said its portfolio optimisation gained further momentum during the second quarter.
In May, it announced an agreement to sell its steelmaking coal business in Australia to Dhilmar Ltd for up to USD3.88 billion in cash, with completion expected by the first quarter of 2027.
The group said it is also progressing the sale process for De Beers, while advancing streamlining opportunities to improve cost performance.
For the proposed sale of its nickel business, Anglo American said it continues to work through the European Commission's antitrust approval process.
Nickel production for the first half fell 5.7% to 18,200 tonnes from 19,300 tonnes. Outpout for the second quarter declined 4.25 to 9,100 tonnes on-year from 9,500 tonnes, but was flat at 9,100 tonnes on-quarter.
Anglo American also said its merger with Teck Resources Ltd is on track, with the expected completion window of September 2026 to March 2027 unchanged.
In September last year, Anglo American and Teck announced they have agreed to combine their respective businesses in what they bill as a "merger of equals" to form Anglo Teck.
Looking ahead, Anglo American kept its annual copper production guidance of between 700,000 tonnes and 760,000 tonnes in 2026, from 695,000 tonnes in 2025.
Premium iron ore guidance also remains unchanged at between 55 million tonnes and 59 million tonnes in 2026, from 60.8 million tonnes in 2025.
Shares in Anglo American were up 4.7% to ZAR810.00 on Thursday morning in Johannesburg. They were up 4.7% to 3,696.00 pence in London. But shares in Kumba were marginally lower at ZAR252.25 in Johannesburg.
By Artwell Dlamini, Alliance News senior reporter South Africa
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