Anglo American achieves strong Q1 operational performance

JOHANNESBURG (miningweekly.com) – Diversified major Anglo American, led by CEO Mark Cutifani, posted a strong operational performance in the quarter ended March 31, with higher output achieved for most of its products, except copper and nickel.

South African coal production increased 9% to five-million tonnes in the first quarter of this year, boosted by productivity improvements at most mines. the miner noted that its outlook remained unchanged at 29-million tonnes to 31-million tonnes for the full year.

The Eskom-tied operating mines – New Vaal, New Denmark and Kriel – which are in the process of being sold to Mike Teke-owned Seriti Resources, contributed 5.7-million tonnes during the quarter.

Thermal coal production at Isibonelo, however, decreased by 23% to 900 000 t as a result of a dragline fire in the fourth quarter of 2016.

In Australia, export metallurgical coal production increased by 28% to 5.2-million tonnes owing to a longwall move at the Moranbah operations in the first quarter of 2016 and production ramping up at Grosvenor.

Export thermal coal production decreased by 40% to 500 000 t, as a result of the Drayton operations ceasing mining activities in October, 2016, following the New South Wales Planning Assessment Commission’s recommendation not to approve the Drayton South project.

Production was also impacted on by Cyclone Debbie, with production losses in the last week of March. Mining activities have now restarted at all operations. 

“The impact on the rail network has been more material, and is still being assessed. It is expected that this will impact our second-quarter sales volumes,” the company pointed out.

Thermal coal output in Columbia, meanwhile, increased by 7% to 2.8-million tonnes.

Anglo maintains its full-year production guidance for export metallurgical coal from Australia at 19-million to 21-million tonnes and its guidance for export thermal coal from South Africa and Colombia at 29-million to 31-million tonnes.

BASE METALS
Anglo’s copper business saw a 3% decrease in production to 142 600 t.

Attributable production at Collahuasi rose 13% to 57 700 t, driven by higher grades and continued improvements in plant performance, despite the impact of adverse weather on mining operations. Plant throughput levels were maintained through the feed of stockpiled material.

Production at Los Bronces decreased by 11% to 75 800 t, with expected lower grades and increased ore hardness affecting throughput. In addition, planned major maintenance took place at both processing plants in the quarter.

Production at El Soldado also decreased by 11% to 9 100 t driven by the temporary suspension of mining operations from February 18, following the regulator’s decision to not approve the mine plan update, resulting in 3 000 t of lost production. Anglo continues to engage with authorities on the matter.

Full-year copper guidance also remains unchanged at 570 000 t to 600 000 t.

The miner has, however, revised its full-year production guidance for its nickel operations downwards to between 43 000 t and 45 000 t. This follows a 12% decrease in production at its Barro Alto operation to 9 900 t in the first quarter as a result of unplanned maintenance of the operation’s electric furnaces.

Meanwhile, Anglo’s diamond output for the quarter was up 8%, while its platinum production rose 1%.

Its Kumba Iron Ore subsidiary, in South Africa, posted a 17% increase in first-quarter output, while its Minas-Rio operation, in Brazil, increased production by 30% year-on-year to 4.3-million tonnes.

Further, Anglo’s manganese ore production rose 6% to 823 000 t, while manganese alloy production was in line with the first quarter of 2016 at 31 000 t.