22nd Oct 2019 07:21
(Alliance News) - Drought in Chile has hampered Anglo American PLC's copper production, the bluechip miner said Tuesday, and problems could continue into next year.
Anglo produced 159,000 tonnes of copper in the three months to September, 8% lower than a year before. The year-to-date figure is down 1%.
The company said this was due to "unprecedented" drought conditions affecting the Los Bronces mine in central Chile. Anglo American said the drought is the longest-ever recorded in the region.
For 2019, Anglo has narrowed copper production guidance to 630,000 tonnes to 650,000 tonnes, lowering the top end of the range, having previously had a range of 630,000 tonnes to 660,0000 tonnes.
On top of this, the miner has warned the drought in Chile "remains a risk for 2020 production".
A positive for Anglo was metallurgical coal, production of which increased by 22% to 6.6 million tonnes due to a strong operational performance. Minas Rio, which was closed the prior year due to pipeline leakages, delivered 6.1 million tonnes of iron ore.
Kumba Iron Ore Ltd, Anglo's Johannesburg-listed subsidiary, reported flat production at 10.5 million tonnes. Iron ore guidance for Kumba was held at 42 million to 43 million tonnes, and for Minas Rio it was increased to 20 million to 22 million tonnes from 19 million to 21 million tonnes before.
Anglo American Platinum Ltd, Anglo's other Johannesburg-listed business, reported a 1% drop in platinum output to 526,800 ounces with palladium production flat at 351,000 ounces. Guidance has been held for both commodities, Amplats said.
Anglo's diamond business De Beers reported a 14% fall in production to 7.4 million carats, though this was due to planned mine reductions in South Africa and Canada amid a weakening diamond market.
"Production is up 4% for the quarter, driven by the continued successful ramp-up at Minas-Rio and strong performance at metallurgical coal. De Beers production is lower, as expected, with the Victor mine now at the end of its life and the transition of Venetia to underground," said Chief Executive Mark Cutifani.
"We remain broadly on track to deliver within our full-year production targets, with an increase in production guidance at Minas-Rio. We expect to deliver to our production guidance for copper and thermal coal, albeit at the lower end of their ranges; with copper working to mitigate the effect of drought conditions in central Chile."
By George Collard; [email protected]
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