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Anglo American sees solid Q1

Anglo American sees solid Q1

Photo by Reuters

23rd April 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Global miner Anglo American on Thursday reported that its first quarter for the year delivered a solid production performance, in line with expectations.

Although its South African iron-ore mines were facing some challenges, compounded by a weak iron-price, the company reported a 71% quarter-on-quarter production increase, to 1.2-million tonnes, at its Minas-Rio mine, in Brazil.

The full-year production guidance for the mine remained unchanged at between 11-million and 14-million tonnes, while the miner expected to reach nameplate capacity during the second quarter of 2016, with production of 24-million to 26.5-million tonnes (wet basis) expected.

Its manganese operations achieved a 14% year-on-year increase in production, with good performances across both regions. “South Africa benefited from improved ore recovery and increased plant availability while Australia benefited from higher plant use and favourable ore grades at Gemco,” it said.

Manganese alloy production increased by 12% year-on-year, owing to improved furnace stability and availability at Metalloys in South Africa.

COAL
Anglo American reported that its export metallurgical coal production had decreased by 17% year-on-year, as the Peace River Coal operation, in Canada, had been put on care and maintenance in 2014, paired with lower Australian production.

Export metallurgical coal production from Australia decreased by 11% year-on-year to five-million tonnes, owing to tropical cyclone Marcia impacting output at the Dawson operation and railings, with the closure of the Moura rail line.

The Dawson coal preparation plant maintenance shutdown was brought forward to partially mitigate the impact on full-year production. Production at Moranbah was impacted by ongoing equipment design issues, which should be rectified during the longwall move planned for the third quarter.

The company’s Grasstree operation had continued its strong performance, delivering record production. 

However, export thermal coal production in Australia increased by 86% to 1.4-million tonnes, owing to changes in product mix and improved productivity.

In South Africa, export thermal coal production increased by 5% to 4.3-million tonnes, owing to productivity improvements across all export operations.

Coal production for sale to power utility Eskom decreased by 6% year-on-year to seven-million tonnes, mainly because of reduced demand for New Vaal coal and planned reductions at Kriel prior to the move to the new mining areas.

Domestic non-Eskom production increased by 25% year-on-year to 1.7-million tonnes, resulting from increased domestic production at the Zibulo and Greenside operations.

In Colombia, Cerrejón’s production was broadly unchanged at three-million tonnes.

BASE METALS
Copper production decreased by 15% year-on-year to 171 800 t. This was in part attributable to production at the Los Bronces operation, in Chile, having decreased by 18% to 94 700 t, following the planned shutdown of the smaller of the two processing plants for 51 days to manage water reserve levels, partially offset by higher ore grades.

The expected water supply constraints formed part of the mining and processing plans for the year, which included actively managing the use of the two processing plants. Additional water efficiency and supply projects were implemented during the period and longer-term initiatives were progressing. Production levels were, therefore, expected to increase over the remainder of the year as plant operating times improved.

At Collahuasi, in Chile, attributable production decreased by 12% year-on-year to 46 000 t, primarily as a result of planned maintenance on the mine’s primary crusher and semiautogenous grinding 3 mill, as well as unplanned stoppages caused by adverse weather conditions and recent regional flooding.

A third Chilean operation, El Soldado, saw production fall by 38% year-on-year to 6 100 t, owing to expected lower ore availability arising from the previously reported intersection with a geological fault.

Production from Mantos Blancos, in the country’s Antofagasta region, and Mantoverde, in the Atacama region, increased by 3% in aggregate to 25 000 t, despite the impact from heavy rainfall and floods interrupting operations during the last week of March.

The full-year copper production guidance remained unchanged at 720 000 t to 750 000 t.

Nickel production, meanwhile, decreased by 27% year-on-year to 6 700 t, as a result of the planned Line 2 furnace rebuild at Barro Alto, in Brazil. The rebuild had been concluded ahead of schedule, with first metal tapped on April 2 and production now ramping up.

The Line 1 rebuild started ahead of schedule given the successful completion of the Line 2 rebuild and was scheduled for completion in the fourth quarter.

At the Codemin operation, in Brazil, production was unchanged at 2 300 t.

Anglo American expected its full-year nickel output to reach 20 000 t to 25 000 t.

DIAMONDS
Diamond production increased by 2% year-on-year to 7.7-million carats, driven primarily by higher grades at De Beers’ Venetia mine in South Africa.

Production at the De Beers Consolidated Mines increased by 14% year-on-year to 1.1-million carats. This was as a result of higher overall grade at Venetia, owing to the commissioning of the red area tailings treatment (RATT) plant in mid-2014. The RATT processed higher average grade, lower-value material than run-of-mine ore from the pit.

However, Debswana’s production fell by 2% year-on-year to 5.6-million carats owing to a decline in grade at Orapa, which was largely offset by an increase in throughput at both Jwaneng and Orapa.

Production from Anglo American’s Canadian diamond mines increased by 25% year-on-year, bolstered by productivity improvement initiatives at Snap Lake and Victor.

Overall, diamond production had decreased by 8% quarter-on-quarter, as a result of a planned change in mining area at Venetia, along with a focus on waste mining at Jwaneng.

The full-year diamond production guidance had been reduced from between 32-million carats and 34-million carats to between 30-million and 32-million carats, in light of current trading conditions.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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