Copper production jumps 28pc at Anglo American

Multinational mining giant Anglo American reported a 28% rise in copper production in its first quarter on Tuesday, primarily due to the ramp-up of production from the new Quellaveco copper mine in Peru.

The FTSE 100 company said production from its operations in Chile, however, decreased by 15% for the three months ended 31 March, mainly due to planned lower grades at Los Bronces and Collahuasi.

Steelmaking coal production increased 59%, which the firm put down to all three underground longwall operations running during the quarter.

Additionally, iron ore production increased by 15%, driven by improved operational performance at both Kumba and Minas-Rio, as well as improved rain readiness plans.

Nickel production increased 4% as a result of improved operational performance.

Rough diamond production was flat, as the planned higher grade ore and strong operational performance across most assets were offset by the planned completion of Venetia's open pit in December, as it transitions to underground operations during 2023.

Metal in concentrate production from the company's platinum group metals (PGMs) operations, meanwhile, decreased 6% due to the impact of unplanned plant maintenance and lower grades at Mogalakwena, as well as planned infrastructure closures at Amandelbult in the fourth quarter of 2022.

Anglo American said it had partnered with H2 Green Steel, a Swedish hydrogen and steel producer, to study and trial the use of premium quality iron ore products from Kumba and Minas-Rio as feedstock for H2 Green Steel's direct reduced iron production process.

The board confirmed that its 2023 production and unit cost guidance remained unchanged across all of its business units.

“Our production in the first quarter increased by 9% compared to the same period in 2022, driven by the ramp-up of copper production from our new Quellaveco mine in Peru,” said chief executive officer Duncan Wanblad.

“Performance also benefited from the ongoing improvement at our Steelmaking Coal longwall operations, as well as at Kumba and Minas-Rio, our iron ore businesses.

“These were offset by planned lower copper grades in Chile, lower PGMs production and the transition of De Beers' Venetia mine from open pit to the new underground section, which results in temporary lower production until the underground operation fully ramps up.”

Wanblad put the improved performance down to the company’s focus on “safe and stable operational momentum” through the seasonally-slower first quarter of the year, which also coincided with the wet season in much of the southern hemisphere.

“We continue to make progress towards our suite of sustainability ambitions and organic growth options in future-enabling products and we welcome the recent approval of the environmental permit application for our Los Bronces Integrated Project, which sets up the next phase of development for one of the world's largest copper mines.”

Reporting by Josh White for Sharecast.com.