Anglo American to begin copper shipments from Quellaveco

Anglo American announces the start of commercial copper operations at its Quellaveco project in Peru, following the successful testing of operations and final regulatory clearance. Quellaveco is expected to produce 300,000 tonnes per year of copper equivalent volume on average over its first ten years.

Duncan Wanblad, Chief Executive of Anglo American, said: “Our delivery of Quellaveco, a major new world class copper mine, is testament to the incredible efforts of our workforce and our commitment to our stakeholders in Peru over many years. Quellaveco alone is expected to lift our total global output by 10% in copper equivalent terms and take our total copper production close to 1 million tonnes per year. At a highly competitive operating cost, Quellaveco exemplifies the asset and return profile that is central to our portfolio quality and our ability to provide customers with a reliable and sustainable supply of future-enabling metals.”

Ruben Fernandes, CEO of Anglo American’s Base Metals business, added: “We designed Quellaveco as one of Anglo American’s and South America’s most technologically advanced mines, incorporating autonomous drilling and haulage fleets – a first in Peru – a remote operations centre, as well as a number of Anglo American’s digital and advanced processing technologies. Drawing its electricity supply entirely from renewables, Quellaveco is setting an example of a low emission mine producing a critical metal for decarbonising the global economy – copper. In Quellaveco, we can see FutureSmart Mining™ in action.”

Anglo American expects that Quellaveco will ramp up fully over the next 9-12 months. Following a thorough commissioning and testing period, and receipt of final regulatory clearance, production guidance for Quellaveco in 2022 is revised to 80,000-100,000 tonnes of copper (previously 100,000- 150,000) at a C1 unit cost of c.150c/lb, previously c.135c/lb. Production guidance for Quellaveco in 2023n and 2024 is unchanged at 320,000-370,000 tonnes of copper.

Guidance update – copper (Chile)

Production guidance for Chile is tightened to 560,000-580,000 tonnes of copper (previously 560,000- 600,000 tonnes) due to lower throughput at Los Bronces caused by a combination of water restrictions and a change in ore characteristics. 2022 C1 unit cost guidance is revised to c.160c/lb (previously c.150c/lb), reflecting the impact of lower volumes and inflation.

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