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Total production improves at Anglo American despite Minas Rio shutdown
(WebFG News) - Anglo American reported a 4% year-on-year increase in total production on a copper-equivalent basis in its first quarter on Tuesday, as it issued its production report for the period to 31 March.
The FTSE 100 mining group said production at its De Beers division improved 15%, reflecting a ramp-up in production in response to sustained healthy trading conditions and the inclusion of production from Gahcho Kué.
Copper production was ahead 9% to 154,900 tonnes, with strong operational performance and higher grade reported at Los Bronces and improved plant performance at Collahuasi.
Platinum production rose 7%, and palladium was up 9%, which the board put down to improved operational performances across the portfolio.
The sale of Union mine was completed on 1 February, it added.
Kumba Iron Ore production increased 4% to 10.9 million tonnes, which was apparently driven by improved productivity at Kolomela.
Minas-Rio production decreased by 30% to 3.0 million tonnes, primarily as a result of the suspension of the operation following a leak in the pipeline that carries iron ore slurry from the mine to the port.
Metallurgical coal production increased 6%, due to performance improvements at Moranbah and the continued ramp-up of Grosvenor.
"Our operations have made a solid start to 2018, delivering a 4% increase in total production," said Anglo American chief executive Mark Cutifani.
"This reflects our consistent focus on driving efficiency across our portfolio and continuing our strong performance of Q4 2017 despite the suspension of operations at Minas-Rio."
The company also updated the market on the suspension at Minas Rio on Tuesday, warning investors that it was preparing to take a hit of up to $400m to its earnings as the inspection of the pipeline continued.