24th Apr 2025 08:43
(Alliance News) - Anglo American PLC on Thursday said it is making "good" progress in its efforts to simplify its portfolio of mining operations, as copper and iron ore businesses started 2025 on a "strong" note.
The London-based miner will be left with copper, iron ore and manganese units after offloading platinum, coal, nickel and diamond businesses.
In its production report on Thursday, Anglo American said copper production was 169,000 tonnes for the first quarter of 2025, down 15% from 198,000 a year before, owing to the planned lower production in Chile. But production in Peru was higher.
Iron ore output was 15.4 million tonnes in the first quarter, up 1.9% from 15.1 million a year before, thanks to a strong first quarter performance from Minas-Rio iron ore operation in Brazil.
Separately on Thursday, Kumba Iron Ore Ltd said iron ore production fell 3.1% to 8.99 million tonnes in the first quarter from 9.27 million a year before.
Anglo American said manganese ore production plunged 60% to 317,000 tonnes from 784,000 a year before, as a result of the continued suspension of Australian operations following damage caused by a tropical cyclone in March 2024.
Anglo American expects export sales to resume in the second quarter.
Anglo American said platinum group metal production was down 17% to 696,000 ounces in the first quarter from 834,000 a year before.
This PGM output is from Anglo American Platinum Ltd, Anglo America's subsidiary.
In a separate filing on Thursday, Anglo American Platinum Chief Executive Officer Craig Miller said he is excited about the next phase of the company's journey.
As part of the work towards the demerger from Anglo American, Miller said the platinum producer has applied for a secondary listing on the London Stock Exchange to make it easier for many Anglo American's existing UK-based shareholders to continue to hold shares in the company after the demerger.
Anglo American Platinum will keep primary listing on the Johannesburg Stock Exchange. It plans to rename itself to Valterra Platinum Ltd.
Elsewhere, Anglo American said steelmaking coal production slumped 41% to 2.2 million tonnes in the first quarter from 3.8 million a year before.
But nickel output was up 3.1% to 9,800 tonnes from 9,500, while diamond production was 6.1 million carats, down 11% from 6.9 million.
Anglo American Chief Executive Duncan Wanblad said the group had had a "strong" start to 2025 in copper and iron ore, with both businesses performing in line with guidance.
Wanblad said Kumba posted another "solid" production performance in the first quarter and increased iron ore sales as South African government-owned Transnet SOC Ltd saw better rail logistics performance, and Minas-Rio had another excellent quarter.
The chief executive said the group is making good progress with its portfolio simplification, preparing to complete the transactions to exit PGMs, steelmaking coal and nickel businesses.
The demerger of Anglo American Platinum is expected to be effective from May 31. Anglo American shareholders will vote on this demerger on April 30.
The sale of Anglo America's steelmaking coal business to Peabody Energy Corp and the sale of its nickel business to MMG Singapore Resources Pte Ltd continue to target completion by the third quarter of 2025.
In the first quarter, Anglo American said the miner is finalising a new long-term diamond sales agreement with the government of Botswana. it said it continues to pursue a dual-track process to divest its interest in De Beers, which it is committed to complete at the right time and when market conditions allow.
"2025 is undoubtedly a year of portfolio and organisational transition for Anglo American and we will emerge as a highly differentiated, sustainably higher margin and higher return on capital employed investment proposition, well positioned for our next phase of growth and value delivery," Wanblad said.
Anglo American shares were down 1.1% at 2,076.00 pence on Thursday morning in London, and they were down 0.7% to ZAR521.34 in Johannesburg. Kumba was down 0.5% to ZAR320.30. Anglo American Platinum was down 0.9% to ZAR629.62.
By Artwell Dlamini, Alliance News reporter
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