Anglo American 1Q Production Dampened by Coal Performance -- Commodity Comment
By Jaime Llinares Taboada
Anglo American PLC on Thursday reported higher copper, platinum
metals and iron ore production for the first quarter compared with
a year earlier, but said coal output plummeted and cut 2021
guidance for the commodity. Here's what the FTSE 100 miner had to
"Copper production increased by 9% to 160,300 tonnes, due to
strong operational performance at both Los Bronces and
On platinum group metals:
"Platinum group metals production increased by 7%, with
Mogalakwena production increasing by 17% due to higher throughput
"The average realised basket price of $2,219 per PGM ounce
reflects strong prices, particularly for rhodium and the minor
metals, partly offset by higher than normal sales of lower priced
"Sales volumes increased by 66%, driven by higher refined
production, supplemented by the drawdown of minor metals from
"Production guidance (metal in concentrate) is unchanged at
4.2-4.6 million ounces."
On iron ore:
"Iron ore production increased by 1% to 16.2 million tonnes,
driven by a 10% increase at Kumba partly offset by a 13% decrease
"The average realised price of $170/tonne (FOB Brazil, wet
basis) was higher than the Metal Bulletin 66 price of $154/tonne
(FOB Brazil, adjusted for freight and moisture), reflecting product
quality, including higher (67%) Fe content, and timing on
provisionally priced volumes."
"Iron ore production guidance (wet basis) is unchanged at
64.5-67.5 million tonnes (Kumba 40.5-41.5 million tonnes; Minas-Rio
24-26 million tonnes), subject to the extent of further
Covid-19-related disruption, as well as rail performance for
"In Botswana, production decreased by 12% to 5.0 million carats,
driven by a 24% reduction at Orapa due to a lower grade feed to the
plant in response to heavy rainfall and operational issues,
including continued power supply disruptions."
"Demand for rough diamonds in the first quarter of 2021
recovered to pre-Covid-19 levels reflecting the replenishment of
the depleted midstream, and renewed confidence by the midstream in
response to the return of consumer demand for diamond jewellery in
the U.S. and China in the second half of 2020."
On metallurgical coal:
"Export metallurgical coal production decreased by 14% to 3.3
million tonnes, due to the continued suspension of operations at
Grosvenor following the underground gas incident in May 2020."
"Open cut operations have been scaled back at Dawson and Capcoal
since mid-2020 in response to reduced demand for lower quality
"The average realised price for hard coking coal was $113/tonne,
which was lower than the benchmark price of $127/tonne as sales
consisted of a lower proportion of premium quality hard coking coal
from Moranbah North and Grosvenor."
"Production guidance for metallurgical coal is revised to 14-16
million tonnes (previously 18-20 million tonnes), impacted by the
suspension at Moranbah North as well as geotechnical conditions and
delayed access to Grosvenor, subject to the extent of any
On 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
"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."
"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...
subject to the extent of further Covid-19-related disruption."
Write to Jaime Llinares Taboada at firstname.lastname@example.org;
(END) Dow Jones Newswires
April 22, 2021 03:47 ET (07:47 GMT)
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