Anglo American eyes lower copper equivalent output in 2024-2025
Anglo American, one of the world’s largest mining companies, said today that on a copper equivalent basis, its 2023 production is expected to increase by c.3% due to Quellaveco copper ramp-up and “solid” iron ore production, with unit costs up c.5%.
In 2024, the company’s production is expected to decrease by c.4% due to reschedule of production to enhance value and reduce unit costs. Unit costs are expected to decrease by c.2% as cost discipline more than offsets inflation.
In 2025, Anglo American’s production is expected to decrease by a further c.3% due to production changes to enhance value and reduce unit costs, and scheduled maintenance.
However, in 2026, the company’s production is expected to increase by c.4%, benefiting from higher volumes in copper, iron ore, steelmaking coal and diamonds.
CEO Duncan Wanblad said, “Operationally, we are improving cost performance and cash generation by reconfiguring a number of our assets to adjust the production profile to near term constraints and market conditions, and thereby also protect longer term value.
“This includes reducing production at Kumba in line with prolonged logistics constraints, focusing on higher margin own-production through our PGMs processing facilities, and moving to one plant at the Los Bronces copper operation in Chile.
“As a result of such initiatives, we expect to deliver lower unit costs in 2024, despite high inflation, and $1.8 billion lower capital expenditure in the 2023 to 2026 period.”
Looking ahead, Wanblad said the fundamental supply and demand picture for many metals and minerals is “ever more” attractive.
“Many of the world’s major economies are focusing their resources on meeting global decarbonisation timelines and, as the global population grows, continues to urbanise and demands higher living standards, we expect unprecedented demand for responsibly produced raw materials,” he said.
Anglo American is a producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and steelmaking coal, and nickel, – with crop nutrients in development. The company is committed to being carbon neutral across its operations by 2040.
