IRON ORE: Anglo American produces 60.8 million tonnes in 2024
Anglo American iron ore production for 2024 was 60.8 million tonnes, towards the upper end of our guidance range. During the fourth quarter, iron ore production was 14.3 million tonnes, 4% higher than the comparative period, reflecting steady operational performance from Kumba, despite third-party rail underperformance.
Kumba – Total production of 7.8 million tonnes, up 8%, reflected the decision in Q4 2023 to reduce production to align to lower third-party rail capacity. Kumba continues to proactively manage stock levels as necessary.
Total sales were broadly flat at 9.3 million tonnes. Total finished stock was 7.5 million tonnes, lower than Q3 2024 (8.6 million tonnes). Stock at the mines decreased to 6.9 million tonnes, while stock at the port stands at 0.5 million tonnes. Additional investment in the ultra-high-dense-media-separation (UHDMS) project at Sishen was announced by Kumba in August 2024 and mine stock levels are expected to remain elevated over the next few years to assist with the tie in of the UHDMS modules.
For the full year, Kumba’s iron (Fe) content averaged 64.1% (2023: 63.7%), while the average lump:fines ratio was 66:34 (2023: 66:34).
The full year average realised price of $92/tonne(1) (FOB South Africa, wet basis) was 3% higher than the 62% Fe benchmark price of $89/tonne(1) (FOB South Africa, adjusted for freight and moisture). The premiums for higher iron content and lump product were partially offset by the impact of provisionally priced sales volumes.
Minas-Rio – Production of 6.5 million tonnes was broadly in line with the comparative period, demonstrating good preparations for accessing the mine in the rainy season, despite rainfall levels 2.5x higher than Q4 2023.
As a result of robust plans through the year which helped secure the volume and quality of the ore feed for the plant, in conjunction with good plant stability, Minas-Rio achieved its best 12-month operational performance ever.
The full year average realised price of $84/tonne (FOB Brazil, wet basis) was 3% lower than the Metal Bulletin 65 price of $87/tonne (FOB Brazil, adjusted for freight and moisture), impacted by provisionally priced sales volumes which more than offset the premium for its high quality product, including higher (~67%) Fe content.
2025 Guidance
Production guidance for 2025 is unchanged at 57-61 million tonnes (Kumba 35-37 million tonnes; Minas-Rio 22-24 million tonnes).
Kumba is subject to third-party rail and port availability and performance. Minas-Rio’s 2025 production guidance reflects a pipeline inspection (that occurs every five years) planned for the second half of the year.
Production and sales volumes, stock and realised price are reported on a wet basis. At Q4 2023, total finished stock was 7.1 million tonnes, stock at the mines was 6.5 million tonnes and stock at the port was 0.6 million tonnes. At Q3 2024, total finished stock was 8.6 million tonnes; stock at the mines was 7.5 million tonnes and stock at the port was 1.1 million tonnes.
