Diversified miner Anglo American said yesterday that for the third quarter, production was broadly flat amid a challenging environment.
This as higher production from Quellaveco, Steelmaking Coal, and De Beers was offset primarily by expected lower copper ore grades in Chile and some operational challenges at its Kumba iron ore business.
In its production report for the third quarter ended September 30, 2022, the group said its performance stepped up 16% quarter-on-quarter amid a challenging operating environment, driven by the ongoing ramp-up of its Steelmaking Coal longwall operations, and continued strong performance at De Beers.
“Our new world-class copper mine in Peru, Quellaveco, continues to ramp-up production with shipments to customers now underway," it said.
Rough diamond production increased by 4%, principally reflecting the treatment of higher-grade ore at Orapa, Botswana, as well as continued strong performance in Namibia.
“Steelmaking coal production increased by 28%, reflecting the ongoing ramp-up of the longwall operations. Continuing to do so in a safe and stable way is our first priority,” it said.
Copper production decreased by 6%, due to planned lower grades at all our operations in Chile, as well as unfavourable ore characteristics at Los Bronces, partly offset by the first production of copper from Quellaveco in Peru.
“Metal in concentrate production from our platinum group metals (PGMs) operations decreased by 6%, due to the impact of Eskom load-shedding (power outages) primarily in September, infrastructure closures at Amandelbult, and lower grade at Mogalakwena,” the miner said.
Iron ore production decreased by 5% primarily due to Kumba, which was impacted by the slow ramp-up after the safety intervention in the second quarter and Eskom load shedding, primarily in September, while production at Minas-Rio was flat.
Nickel production decreased by 4%, primarily due to lower grades.
Anglo American CEO Duncan Wanblad CEO said: “As we move through the final quarter, we are focused on maintaining this operational momentum to deliver our full-year guidance. The continued safe ramp-up of our steelmaking coal operations, as well as further performance improvements at our iron ore businesses, are priorities to set the platform for delivery into next year.
“We do continue to feel the effects of dislocations in the global economy on our business - in energy and across supply chains and labour markets - and are planning accordingly for 2023, confident in the strategic position of our business.”
Demand for rough diamonds remained steady, with rough diamond sales totalling 9.1 million carats. While consumer demand for natural diamonds continues to be robust, a deterioration of global economic conditions, reduced consumer spending and continued Chinese Covid-19 lockdowns had the potential to impact demand for diamond jewellery.
“Namibia production increased by 33% to 0.5 million carats, primarily driven by a continued strong performance from the Benguela Gem vessel,” the miner said.
South African production increased by 5% to 1.7 million carats, driven by the treatment of higher-grade ore and the benefit of plant upgrades," it said.
“Production in Canada decreased by 7% to 0.7 million carats, due to the treatment of lower-grade ore and the impact of tight labour markets,” Anglo American said.
BUSINESS REPORT