Anglo American Q3 production up 1% on copper equivalent

Mining giant Anglo American said third quarter total production increased 1% year-on-year on a copper equivalent basis, excluding the stoppage at its Minas-Rio iron ore operation.

Copper production increased by 17% to 171,800 tonnes reflecting continued strong operational performance across all operations and planned higher grades, the company said in a trading update.

De Beers diamond production fell 5% to 8.7m carats due to expected lower grades at Jwaneng and lower volumes at Venetia, due to a shutdown to upgrade its processing plant ahead of its transition from open cut to underground operations.

Platinum and palladium production increased by 4% to 649,000 ounces and 1% to 411,000 ounces respectively driven by an improved performance at Amandelbult and the joint venture operations.

Kumba's iron ore production decreased by 9% to 10.5m tonnes as planned, to offset elevated stock levels arising from Transnet rail constraints in the first half of the year.

There was no production at the Brazilian Minas-Rio operation after operations were suspended in March due to two leaks in the iron ore slurry pipeline.

"The detailed pipeline inspection work is on track, as well as the precautionary replacement of a 4 kilometre section of the pipeline where the leaks occurred. Both the inspection and replacement work are expected to be completed in Q4 2018, followed by the restart of the operation, subject to required clearance from the authorities," the company said, reiterating that underlying earnings would be hit by $300m - $400m. .

Metallurgical coal production decreased by 3% to 5.4m tonnes with the timing of longwall moves. Thermal coal export production increased by 13% to 7.7m tonnes reflecting solid operational improvements.

"Our focus on driving efficiency and productivity across the business resulted in another strong quarter, with volumes 1% higher than the solid operational performance seen in the third quarter of 2017,” said chief executive Mark Cutifani.

Looking ahead, Anglo American affirmed its full year diamond production guidance at 34m - 36m carats, adding that it was expected to be at the higher end of the range.

The company also affirmed its full year copper production guidance at 630,000 - 660,000 tonnes.

Platinum production guidance was revised upwards to a range of 2.45m - to 2.50m ounces from the previous 2.40m - to 2.45m ounces.

Full-year iron ore production guidance for Kumba was unchanged at 43m – 44m tonnes.