25th Apr 2019 07:38
LONDON (Alliance News) - Diversified miner Anglo American PLC said Thursday first quarter production fell primarily due to weakness in coal output, though emphasised output guidance for the full-year remains on track after a ramp-up towards the end of the period.
"Production is 6% lower in the quarter, with two planned longwall moves at Metallurgical Coal accounting for 80% of the reduction," Anglo American Chief Executive Officer Mark Cutifani said.
For the three months ended March, metallurgical coal output fell 25% to 4.2 million tonnes from 5.5 million tonnes a year prior. This was due to two longwall moves being undertaken in the first quarter of 2019 compared to just one a year before.
Thermal coal, however, fell a more modest 2% to 6.6 million tonnes.
"Isolated production issues at Venetia (De Beers), Kumba Iron Ore and Platinum Group Metals made up the balance, mitigated by stronger operational performance from copper, with a 4% production increase, and the ramp-up at Minas-Rio, which is ahead of plan following the restart of operations in December 2018," Cutifani added.
Majority-owned and Johannesburg-listed Kumba Iron Ore Ltd reported that iron ore production fell 12% to 9.5 million tonnes from 10.9 million tonnes a year before. Iron ore production from Minas-Rio, however, surged 61% to 4.9 million tonnes from 3.0 million tonnes a year before.
Another majority-owned subsidiary, Anglo American Platinum Ltd, reported platinum group metal production fell to 998,900 ounces in the first quarter of 2019 from 1.1 million ounces a year prior.
Diamond miner De Beers saw output fall 8% to 7.9 million carats of the precious gem, down from 8.5 million tonnes a year before.
Copper production, however, rose 4% to 161,000 tonnes from 155,000 tonnes a year before.
Cutifani continued: "By the end of the quarter we had increased our production run-rate, are on track to deliver this year's production targets and our guidance is unchanged."
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