Minas Rio ramp up boosts Anglo American

Anglo American said fourth quarter production across all operations rose 4%, driven by a ramp-up of operations at its Minas-Rio iron ore mine in Brazil as it maintained all guidance for 2020.

The company added that increased production of metallurgical coal in Australia was offset by the drought in Chile impacting water availability at the Los Bronces copper mine, as well as anticipated lower diamond production from De Beers.

Anglo's South Africa Venetia diamond mine is moving to underground operations and the Victor operation in Canada reached the end of its life.

Minas-Rio produced 6.2m tonnes of high grade iron ore production during the quarter after being hit by delays and waits for permits following a pipeline leak in March 2018.

Anglo in December received the final operating licence it needs to boost production at the mine to full capacity of 26.5m tonnes a year. Production guidance for 2020 is unchanged at 22-24 Mt, which includes a one-month production stoppage in Q2 to carry out routine internal scanning of the pipeline.

Kumba iron ore production rose 16% quarter on quarter to 11.8m million tonnes reflecting improved run-rates following maintenance earlier in the year. Production guidance for 2020 was unchanged at 42m - 43m tonnes.

Metallurgical coal production increased by 11% to 6.3m tonnes due to the timing of longwall moves, as well as improved wash plant throughput and equipment efficiency, Anglo said.

Rough diamond production fell by 15% to 7.8m carats, driven by lower production levels in South Africa and Botswana. While trading conditions had improved since the third quarter, production was reduced in response to softer rough diamond demand conditions experienced in the year.

Production guidance for 2020 remained unchanged at 32m - 34m carats, subject to trading conditions. The higher production anticipated an improvement in trading conditions compared with 2019, driven by an expected increase in production from Venetia.

Copper production fell by 13% to 158,800 tonnes, largely impacted by a reduction at Los Bronces, driven by the continued drought conditions in central Chile, partially offset by continued strong plant performance at Collahuasi. Production guidance for 2020 was unchanged at 620,000 -670,000 tonnes, subject to water availability.