Anglo American’s thermal coal production decreased considerably in Q1
Thermal Coal, South Africa – Export thermal coal production decreased by 25% to 3.1 million tonnes as operations, which continue to operate at c.90% capacity due to Covid-19 measures to safeguard the workforce, were impacted by the second wave of Covid-19 in South Africa, as well as the Bokgoni pit at Khwezela being placed on care and maintenance.
Thermal Coal, Colombia – Attributable export thermal coal production decreased by 9% to 1.8 million tonnes owing to a controlled Covid-19-safe ramp-up following the three month strike which ended in December 2020.
The weighted average realised price for export thermal coal from South Africa and Colombia was $68/tonne (South Africa: $74/tonne; Colombia: $58/tonne). This was 16% lower than the weighted average quoted FOB price from South Africa and Colombia, largely due to energy content adjustments relative to the industry benchmark.
FULL YEAR GUIDANCE
Production guidance for export thermal coal is reduced to c.14 million tonnes (previously c.24 million tonnes) reflecting the proposed demerger of the South Africa thermal coal operations that, subject to shareholder approval, is expected on 4 June 2021 with the subsequent listing of the demerged business on 7 June 2021 (Export South Africa c.6 million tonnes for the period January to May (previously c.16 million tonnes for 2021); Colombia c.8 million tonnes (attributable share)), subject to the extent of further Covid-19-related disruption.
