27th Jan 2022 09:30
(Alliance News) - Anglo American PLC reported on Thursday its fourth-quarter production was broadly flat as the Covid-19 pandemic continued to take its toll on the diversified miner that owns commodities ranging from platinum to iron ore, diamond and coal.
Metallurgical coal production rose by 4.8% to 4.4 million tonnes in the fourth quarter from 4.2 million tonnes previously, reflecting an increase in production at the Dawson open cut operation, partially offset by Moranbah which continues to face areas of challenging geology.
In its copper unit, production in the final quarter fell by 4.2% to 161,000 tonnes from 168,000 tonnes in the prior year.
Full-year production was in line with the prior year, staying at 647,000 tonnes, mitigating the ongoing water challenges from the severe drought conditions.
For the fourth quarter, iron ore output dropped by 6.8% to 15.1 million tonnes from 16.2 million tonnes.
Full-year iron ore production increased by 3.4% to 63.8 million tonnes from 61.7 million tonnes, despite unplanned maintenance at Minas-Rio and third party rail performing below planned levels affecting Kumba's production for the year.
Rough diamond production increased by 15% to 7.7 million carats from 6.7 million carats, principally from Jwaneng in Botswana as well as in Namibia, reflecting planned higher production in response to strong consumer demand.
Nickel production declined by 9.4% to 10,600 tonnes in the fourth quarter from 11,700 tonnes previously, while output shrank by 4.1% to 41,700 tonnes in 2021 from 43,500 tonnes in 2020.
On the quarter, manganese ore output decreased by 11% to 835,000 tonnes from 942,000 tonnes. But full-year production expanded by 5% to 3.6 million tonnes from 3.5 million.
Exploration and evaluation expenditure increased by 26% to USD102 million, driven by increased activity in copper, nickel, PGMs and iron ore, and increased spend in PGMs and metallurgical coal.
"Our production was broadly flat compared to Q4 of 2020, with our operating levels at approximately 95% of normal capacity through the year, largely due to the ongoing Covid related effects on the operating environment," Anglo American Chief Executive Mark Cutifani.
In a separate filing, Anglo American Platinum Ltd, a subsidiary of Anglo, said total PGMs production was up 3% to 1.1 million ounces for the fourth quarter ended December 31 from 1.0 million ounces in the same quarter in 2020.
The PGMs operations more than doubled refined production in the quarter, and resulted in a record full-year refined production of 5.1 million ounces.
The platinum producer ramped up full-year production to 4.2 million ounces in 2021 from 3.8 million ounces in 2020.
Total sales volume, including production and trading, jumped 38% to 1.5 million ounces in the fourth quarter from 1.1 million ounces in the last quarter in 2020. Sales volume for the full year soared 48% to 5.9 million ounces from 4.0 million ounces.
Anglo American Platinum Chief Executive Natascha Viljoen said: "Operating in a Covid-19 environment continues to bring challenges, such as increased levels of absenteeism for recovery from the virus."
Meanwhile, Kumba Iron Ore Ltd, in which Anglo American has a 65% stake, also announced on Thursday that its fourth-quarter production was flat at 9.7 million tonnes, while its annual output rose by 9% to 40.9 million tonnes from 37.6 million tonnes.
Kumba's total sales were up 3% to 10.7 million tonnes in the fourth quarter from 10.3 million tonnes in the same quarter in 2020. Full-year sales remained unchanged at 40.3 million tonnes.
By Artwell Dlamini; [email protected]
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