Anglo American Slashed Guidance After Notable Dip in Output
Mining News | 2022-04-22 12:38:07
The copper production recorded a decline by 13% during Q1 2022, primarily due to planned lower grades.
By Paul Ploumis
SEATTLE (Scrap Monster): Anglo American plc. declared production report for the first quarter ended 31st March, 2022.
The production during the first quarter was 10% lower than the same period in 2021, mainly on account of Covid-19-related disruptions, impact of heavy rainfall on South Africa and Brazil operations and operational challenges at its metallurgical coal and iron ore operations. Consequently, the company has updated the platinum group metals, iron ore and metallurgical coal volume guidance for the full year.
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The copper production recorded a decline by 13% during Q1 2022, primarily due to planned lower grades. The high rainfall and plant issues that affected both Kumba and Minas-Rio resulted in 19% dip in iron ore production. The production of metallurgical coal was down by 32%.
On the other hand, rough diamond production surged higher by 25%, owing to a strong operational performance and lower rainfall impact, primarily in Botswana. The recently commissioned Benguela Gem diamond recovery vessel is expected to add an additional 500,000 carats per year of high value diamonds to the company’s total production.
Anglo American raised the full-year cost guidance by 9%. The iron ore production guidance for the full year was revised downwards from 63-67 million tonnes to 60-64 million tonnes.
