23rd Oct 2014 07:08
LONDON (Alliance News) - Anglo American PLC Thursday reported increases in diamond, nickel and iron ore production during the third quarter whilst copper, platinum and thermal coal production declined.
The company reported a 37% increase in iron ore production to 13 million tonnes for the third quarter ended September 30, compared to 9.5 million tonnes a year earlier. The increase was due to its implementation of its production recovery plan at its Sishen mine and record output from its Kolomela mine, both in South Africa. Iron ore production for the year is expected to reach up to 46 million tonnes, compared to the previous target of 44 million tonnes.
It also reported an increase in diamond production to 8.2 million carats in the quarter compared to 7.7 million carats in the third quarter of 2013. The increase is due to higher production from its Debswana and Jwaneng mines in Botswana. Diamond production expectations for the full year remain unchanged at 32 million carats.
Nickel production also rose to 10,700 tonnes from 9,500 tonnes driven by continued improvements at its Barro Alto mine in Brazil, as it plans to commence rebuilding two furnaces at the mine in October. The company's full-year target for nickel has increased to 37,000 tonnes from 35,000 tonnes.
Anglo American saw production of copper, platinum and thermal coal drop.
Copper production was down 15% to 176,900 tonnes from 207,300 tonnes a year earlier as grades declined at its Los Broncos and Collahuasi mines in Chile. The company's copper production guidance has increased to 745,000 tonnes for the full year, up from the previous target of 740,000 tonnes.
Platinum production dropped to 533 tonnes in the third quarter from 623 tonnes due to mines being affected by strikes earlier in the year. The mines are now running at a normal production rate, Anglo American said, but the strikes have affected the company's full year production guidance. Full year production for platinum is expected to fall to 1.8 million ounces, it said, compared to its previous target of 2.1 million ounces.
Thermal coal dropped to 9 million tonnes, 4% lower than the 9.4 million tonnes reported a year earlier due to adverse weather conditions in Colombia. Anglo American's coal production target for the full year remains unchanged at 29 million tonnes. Production for the full year remains unchanged at 29 million tonnes.
At the end of the third quarter, the company has revised its production guidance for the full year.
Anglo American shares were quoted at 1,334.00 pence per share at the open Thursday, down 1.7%.
By Joshua Warner; [email protected]; @JoshAlliance
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