Anglo American: copper production down 21% due to lower grades and water shortages

Anglo American, a leading global mining company, reported Thursday that its Q2 2022 copper production decreased by 21% y-o-y to 134 ktonnes due to planned lower grades and water availability.
The company’s rough diamond production decreased by 4% to 7.9 Mct, reflecting lower grades in Canada and Botswana, while production guidance is increased to 32–34 million carats (previously 30-33 million carats) due to robust demand and strong year-to-date operational performance.

Metal in concentrate production from Anglo American’s platinum group metals (PGMs) operations was broadly flat at 1,032 koz, with strong performances at Unki and Mototolo offsetting planned lower grades at Mogalakwena.

Iron ore production decreased by 8% after a safety intervention at Kumba’s Kolomela mine, as well as planned maintenance at Minas-Rio.

Steelmaking coal production decreased by 12% as the replacement Aquila longwall ramped up following the planned end of production from Grasstree, as well as high rainfall impacting the open pit operations.

The company said that its full-year 2022 production guidance is unchanged for PGMs, copper and iron ore, increased for diamonds and decreased for steelmaking coal due to longwall ramp-up timing.

Importantly, according to a press-release, Anglo American’s newly commissioned Quellaveco project in Peru is expected to add around 10% to the company’s global output once fully operational.

Anglo American is a leading global mining company which producing diamonds (through De Beers), copper, platinum group metals, the steelmaking ingredients of iron ore and metallurgical coal, and nickel – with crop nutrients in development and thermal coal operations planned for divestment.

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