Anglo American 2Q De Beers Production Drops 14%, Cuts Fiscal Year Diamond Output
July 18 2019 - 03:01AM
Dow Jones News
By Oliver Griffin
Anglo American PLC (AAL.LN) said on Thursday that second-quarter
diamond production from its majority-owned De Beers business fell
14% as it follows a strategy of producing to market demand, and
revised its diamond-production guidance downwards.
The diversified miner said that while overall second-quarter
production rose 2% on a copper-equivalent basis, De Beers
production in the three months ended June 30 fell to 7.7 million
carats, down from 9 million carats in the year-earlier period.
Overall production on a copper-equivalent basis was boosted by
the ramp-up of operations at the company's Minas Rio iron-ore
operation in Brazil. Anglo American said Minas Rio, which produced
5.9 million metric tons of iron ore in the second quarter,
continues to ramp-up ahead of schedule.
Removing the impact of operations at Minas Rio, Anglo American
said its second-quarter production fell 4% on a copper-equivalent
basis.
Copper production in the second quarter of the year rose 1% to
159,100 due to strong performances at the Los Bronces and
Collahuasi mines. Platinum production rose 3% to 520,300 ounces and
palladium decreased by 1% to 347,200 ounces, due to a change in mix
of production, the company said.
In South Africa, Anglo American's Kumba iron-ore operation fell
9% to 10.5 million tons due to unscheduled plant maintenance.
Anglo American revised its diamond production outlook down to
around 31 million carats for the full year, the lower end of its
previous guidance range. The company also cut the outlook for
production of iron ore at its Kumba operations to a range of 42
million to 43 million tons for the year.
However, it wasn't all bas news as the company raised its Minas
Rio guidance to a range of 19 million to 21 million tons, from a
previous range of 18 million to 20 million tons.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
July 18, 2019 02:46 ET (06:46 GMT)
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