TIDMAAL
RNS Number : 5231A
Anglo American PLC
26 September 2022
26 September 2022
Anglo American to begin copper shipments from Quellaveco
Anglo American plc ("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(TM) 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. 150 c/lb, previously c.135c/lb. Production
guidance for Quellaveco in 2023 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.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Emma Waterworth
marcelo.esquivel@angloamerican.com Emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0) 20 7968
8574
South Africa
Nevashnee Naicker Michelle Jarman
nevashnee.naicker@angloamerican.com michelle.jarman @angloamerican.com
Tel: +27 (0)11 638 3189 Tel: +44 (0)20 7968 1494
Sibusiso Tshabalala sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Notes to editors:
Quellaveco is an open pit copper mine located in the Moquegua
region in the south of Peru. Construction started in 2018, with
estimated total capex of $5.5 billion, which includes the $0.6
billion additional cost of managing the impacts of the Covid-19
pandemic since 2020. In 2021, Anglo American also approved the
construction of a Coarse Particle Recovery plant to allow
retreatment of coarse particles from flotation tailings to further
enhance copper recovery rates.
Quellaveco is expected to produce 300,000 tonnes of copper
equivalent per year on average over the first 10 years of
operation, with a competitive C1 unit cost position.
The support of local communities is paramount in both the
success of developing the project and its operational phase. Such
support is underpinned by a successful 18-month "Dialogue Table"
consultation with local authorities and community representatives
from the Moquegua region that took place in 2011. A total of 26
commitments were made, spanning water to environmental protection
and social development. One of the major such commitments delivered
is the construction of the Vizcachas Dam which brings net positive
water benefits to local communities by delivering supply of
high-quality water for agriculture, among other uses, while the
Quellaveco operation will predominantly utilise water that is unfit
for such uses.
Quellaveco has an estimated 1.7 billion tonnes of Ore Reserves,
8.9 million tonnes of contained copper at 0.53% TCu, and a 36-year
Reserve Life, with potential for further expansion given its
estimated additional Mineral Resources at 1.6 billion tonnes,
containing 6.1 million tonnes copper (at 0.38% TCu). [1]
Following final regulatory clearance, shipments of copper
concentrate can now begin, with revenue and associated costs being
recognised within underlying EBITDA. The operation Is expected to
ramp up fully over the next 9-12 months. Once the mine reaches
commercial production, depreciation of the mine will commence,
borrowing costs will no longer be capitalised and interest on the
Mitsubishi shareholder facility will be expensed in finance
costs.
Quellaveco is owned 60:40 between Anglo American and Mitsubishi
Corporation.
Anglo American is a leading global mining company and our
products are the essential ingredients in almost every aspect of
modern life. Our portfolio of world-class competitive operations,
with a broad range of future development options, provides many of
the future-enabling metals and minerals for a cleaner, greener,
more sustainable world and that meet the fast growing every day
demands of billions of consumers. With our people at the heart of
our business, we use innovative practices and the latest
technologies to discover new resources and to mine, process, move
and market our products to our customers - safely and
sustainably.
As a responsible producer of diamonds (through De Beers),
copper, platinum group metals, premium quality iron ore and
metallurgical coal for steelmaking, and nickel - with crop
nutrients in development - we are committed to being carbon neutral
across our operations by 2040. More broadly, our Sustainable Mining
Plan commits us to a series of stretching goals to ensure we work
towards a healthy environment, creating thriving communities and
building trust as a corporate leader. We work together with our
business partners and diverse stakeholders to unlock enduring value
from precious natural resources for the benefit of the communities
and countries in which we operate, for society as a whole, and for
our shareholders. Anglo American is re-imagining mining to improve
people's lives.
www.angloamerican.com
Forward-looking statements:
This document includes forward-looking statements. All
statements other than statements of historical facts included in
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American's financial position, business, acquisition and divestment
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Legal Entity Identifier: 549300S9XF92D1X8ME43
[1] Estimates as at 31 December 2021. Please refer to the Anglo
American Ore Reserves and Mineral Resources Report 2021 for further
information. TCu = total copper
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