24th Oct 2024 08:56
(Alliance News) - Anglo American PLC said on Thursday it was making progress in its "portfolio simplification" as the diversified miner characterised its production performance for the first nine months of 2024 as "stable".
The London-based diversified miner in May launched a new strategy aimed at divesting some assets, including Anglo American Platinum Ltd and De Beers.
For the first nine months to September 30, copper production fell 3.5% to 575,000 tonnes from 596,000 tonnes a year earlier. For the third quarter, output dropped 13% to 181,000 tonnes from 209,000 tonnes in the same quarter in 2023, due to the planned closure of the smaller and more costly Los Bronces plant, partially offset by higher grades at El Soldado mines in Chile.
But Anglo American said it is on track to meet full-year copper production guidance, and expects production at Quellaveco in Peru to increase in the fourth quarter as grades and recoveries improve.
Annual copper production guidance is between 730,000 tonnes and 790,000 tonnes, compared to the 826,000 tonnes achieved in 2023.
Platinum group metal production for nine months as down 6.8% to 2.67 million ounces from 2.87 million ounces. PGM production was 10% lower at 922,000 ounces for the third quarter from 1.03 million ounces.
In a separate filing, Anglo American Platinum Chief Executive Officer Craig Miller said the decrease in total PGM production for the third quarter was mainly due to the breakdown at the primary mill at the Mogalakwena North Concentrator in South Africa on July 1.
That resulted in a four-week downtime and a loss of 45,000 ounces, although partly offset by improved performance at the South Concentrator, Miller said.
The other main driver was the self-imposed safety stoppages at Amandelbult in South Africa, which resulted in a loss of 20,000 ounces following the two tragic fatalities in June.
Anglo American also said iron ore production was up slightly, by 0.8%, to 46.5 million tonnes for nine months from 46.1 million tonnes. Iron ore output for the third quarter increased 1.9% to 15.7 million tonnes from 15.4 million tonnes.
Kumba Iron Ore Ltd, in which Anglo American owns a 70% stake, reported separately that its iron ore production was up 2.0% to 27.9 million tonnes for nine months from 28.5 million tonnes. But output for the third quarter fell 3.1% to 9.4 million tonnes from 9.7 million tonnes.
Over the nine months, diamond production declined 21% to 18.9 million carats, compared to 23.9 million carats, and output for the third quarter fell 24% to 5.6 million carats from 7.4 million carats.
Steelmaking coal production rose 8% to 12.1 million tonnes for nine months from 11.2 million tonnes, while third-quarter production fell 6.8% to 4.1 million tonnes from 4.4 million tonnes, primarily driven by the cessation of mining at Grosvenor following the underground fire in June 2024.
Anglo American plans to sell Grosvenor steelmaking coal mine in Queensland, Australia.
"Steelmaking Coal sale process continues to see significant competition for this world-class set of assets, with a final round of bidders in place, and we expect to announce execution of a sale agreement in the coming months," Anglo American said.
Nine-month manganese ore production slumped 46% to 1.5 million tonnes from 2.8 million tonnes, and output for the third quarter plunged 60% to 406,000 tonnes from 1.0 million tonnes.
On the overall performance, Anglo American Chief Executive Officer Duncan Wanblad said the group's consistent focus on operational excellence continued to deliver stable production in line with its expectations.
Anglo American shares were up 3.7% to 2,408.50 pence each in London on Thursday morning. They were up 2.9% at ZAR553.38 in Johannesburg.
Kumba shares rose 0.8% to ZA335.27 in Johannesburg, while Anglo American Platinum jumped 7.2% to ZAR706.12.
By Artwell Dlamini, Alliance News reporter
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