29th Jan 2014 08:15
LONDON (Alliance News) - Anglo American PLC Wednesday said it has increased production in its fourth quarter for all of its major metals.
The major mining company said its Kumba Iron Ore Production in South Africa increased by 25% to 11.3 million tonnes in the three months ending 2013, compared from the previous year, mainly due to a strike in the fourth quarter of 2012 which slowed operations.
The company said export metallurgical coal production increased 3% to 4.7 million tonnes with record full-year production of 18.7 million tonnes, due to sustained longwall productivity improvements, particularly at its Moranbah and Foxleigh sites in Australia, and Peace River Coal in Canada.
Anglo American said its export thermal coal production increased 8% to 7.9 million tonnes during the quarter, as a 1% fall in production from its South African operations was offset by a 24% increase in production from its Mt Cerrejon site in Colombia.
The company said its copper production increased 24% to 214,400 tonnes, driven mainly be strong performance at its Los Bronces site in Chile and higher grades from its Collahuasi site, also in Chile.
Anglo American said nickel production increased by 38% to 10,200 tonnes during the quarter, due to improved operational stability of the furnaces at its Barro Alto site in Brazil.
The company also said its niobium production increased by 20% to 1,200 tonnes, and its fertiliser production rose 2% during the three months, compared from the previous year.
Anglo said its platinum equivalent refined production increased by 25% to 520,300 ounces as a result of an increase in production from its Mogalakwena in South Africa and the normalisation of production from other South African sites, following industrial action in the fourth quarter 2012.
In South Africa, further strike action at the company's subsidiary Anglo American Platinum Ltd was announced in January and low attendance was recorded at the company's South African mines, with Anglo American saying earlier this month that its production will be impacted by the action.
The South African Association of Mineworkers and Construction Union announced its plans to strike on January 20, demanding a ZAR12,500 minimum wage for entry-level workers and better working conditions.
Anglo American said its diamond production increased by 13% to 9.1 carats, primarily due to increased output from its Jwaweng site in Botswana, following a recovery after slope failures in June 2012, together with higher grades from other sites.
Anglo American also noted that its exploration and evaluation expenditure for the fourth quarter 2013 totalled USD166 million, a 19% decrease on the previous year, and its total expenditure for 2013 equalled USD533 million, a decrease of 27% on the previous year.
The company announced in December that it is expecting USD300 million in impairments on a post-tax basis from its recent exit of the Pebble copper project in Alaska.
Anglo American shares were up 4.6% to 1,405.50 pence, putting it top of the FTSE 100 movers in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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