Anglo American sees higher iron ore output in Q4

Thursday, 23 January 2020 17:12:49 (GMT+3)   |   Istanbul
       

UK-based mining giant Anglo American has announced that it produced 6.2 million mt iron ore at its Minas-Rio project in the fourth quarter last year, much higher compared to 200,000 mt in the same quarter of the previous year. The reason for the low production volume in the fourth quarter of 2018 was the production suspension at the site during the given year due to two bursts at the slurry pipeline. In January last year, Anglo American resumed production, expecting to reach full capacity by 2020. For the full year, miner’s iron ore production at Minas-Gerais amounted to 23.1 million mt, compared to 3.4 million mt in 2018.

In the last quarter of 2019, the company’s iron ore production at Kumba increased by 16 percent year on year to 11.8 million mt, due to higher production at both Sishen and Kolomela. Iron ore sales from Kumba mine decreased by 10 percent to 10.5 million mt, driven by a 73 percent decline in domestic sales to 200,000 mt due to lower domestic customer off-take with the shutdown of ArcelorMittal’s Saldanha plant. On the other hand, exports from Kumba mine dropped by five percent to 10.2 million mt in the fourth quarter compared to the third quarter. Anglo recorded 42.4 million mt of iron ore production at Kumba in the full year of 2019, falling by two percent year on year.

Additionally, Anglo American’s metallurgical coal production amounted to 6.3 million mt in the fourth quarter of 2019, rising by 11 percent compared to the last quarter of 2018, while it produced 22.9 million mt metallurgical coal for the full year, five percent higher compared to the previous year.

2020 production guidance for its Kumba iron ore mining subsidiary in South Africa and for the Minas-Rio project remains unchanged at 42-43 million mt and 22-24 million mt, respectively. The Minas-Rio figure includes a one-month production stoppage in the second quarter. Moreover, metallurgical coal production guidance for 2020 is unchanged at 21-23 million mt, reflecting the sale of a 12 percent interest in the Grosvenor mine.


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