Diversified miner Anglo American’s production for the third quarter ended September 30 increased by 16% quarter-on-quarter amid a challenging operating environment, driven by the ongoing ramp-up of its steelmaking coal longwall operations and a continued strong performance at De Beers, CEO Duncan Wanblad says in a production update for the period. 

“Our new world-class copper mine in Peru, Quellaveco, continues to ramp up production with shipments to customers now under way.

"Production in the third quarter was broadly flat compared to the same period in 2021, 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 our Kumba iron-ore business,” he points out.

Wanblad says that, moving into the final quarter of the year, Anglo is focused on maintaining this operational momentum to deliver its 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,” he outlines.

Rough diamond production increased by 4%, principally reflecting the treatment of higher-grade ore at Orapa, in Botswana, as well as a continued strong performance in Namibia.

Steelmaking coal production increased by 28%, reflecting the ongoing ramp-up of the longwall operations.

Copper production decreased by 6%, owing to planned lower grades at all of the group’s 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 the group’s South African platinum group metal (PGM) operations decreased by 6%, owing to the impact of State-owned utility Eskom’s loadshedding, infrastructure closures at Amandelbult and lower grades at Mogalakwena.

Iron-ore production decreased by 5% primarily owing to Anglo’s South African subsidiary Kumba Iron Ore, which was impacted by the slow ramp-up after the safety intervention in the second quarter and Eskom loadshedding, primarily in September, while production at Minas-Rio, in Brazil, was flat.

Nickel production decreased by 4%, primarily owing to lower grades.

Manganese ore production also decreased, by 3%, as a result of Covid-19-related absenteeism and some equipment reliability issues at the South African operations.

Wanblad also mentions that the group is continuing to make important progress towards its holistic sustainability commitments.

“With renewable electricity supply secured for all our South America operations, we have now formed our renewable energy partnership with EDF Renewables in South Africa.

“Our new jointly owned company, Envusa Energy, is developing its first phase of more than 600 MW of wind and solar projects, a major step towards our vision of a 3 GW to 5 GW renewable energy ecosystem in the region by 2030.

“The issuance of our first sustainability-linked bond, a first of its kind from a major diversified mining company, re-affirms our commitment to our targets to reduce greenhouse-gas emissions and fres water abstraction and to support job creation in the communities where we operate,” he highlights.