JOHANNESBURG (miningweekly.com) – Diversified mining company Anglo American upped South African export coal production in the three months to June 30, when local diamond and iron-ore output fall appreciably.

While Eskom-related production remained broadly unchanged in the second quarter, export coal production rose 8% to 4.7-million tonnes on productivity improvements across most mines.

Domestic non-Eskom production increased by 15% to 1.8-million tonnes mainly on the redirecting of Zibulo and Landau export coal to the domestic market, where it generated a higher margin.

South African diamond production at De Beers Consolidated Mines plummeted 26% to 0.8-million carats mainly on the completion of the sale of Kimberley Mines and overall diamond production went down 19% to 6.4-million carats on the decision to reduce production to match last year’s poor prevailing trading conditions.

De Beers' average realised price of $177/ct in the first half of this year was 14% lower than in the first half of last year.

Action taken by De Beers last year led to more normal diamond trading conditions and increased sales in the first half of 2016.

“But we maintain a cautious outlook,” Anglo American CE Mark Cutifani said in a release to Creamer Media’s Mining Weekly Online.

Iron-ore production from Kumba Iron Ore, which Anglo is taking steps to sell, fell 15% to 8.9-million tonnes as the Sishen operation downsized and transitioned the operations to a lower-cost pit configuration; export sales decreased by 26% to 8.7-million tonnes on lower production.

Platinum production expressed as metal-in-concentrate nosed up 1% to 585 700 oz and refined platinum production surged 33% higher to 747 600 oz owing to a post-stocktake recovery at the Precious Metals Refinery, where there was a first-quarter safety stoppage.

Cutifani noted that Anglo’s demonstration of supply discipline extended to platinum, where the focus is now on higher-margin and lower-cost assets.

The company is building on the improving first-quarter operational trend as it recoups refined platinum production and continues to ramp up its Minas-Rio iron-ore mine in Brazil – which saw a 91% second-quarter output rise to 3.5-million wet tonnes.

In Australia, export metallurgical coal production increased by 4% to 5.5-million tonnes on longwall production at Grosvenor and Grasstree, but overall group thermal coal production decreased by 6% to 8.1-million tonnes on Drayton’s descent into closure and planned production cuts at Colombia’s Cerrejon, partly offset by higher production at most South African export mines.

At Debswana in Botswana, diamond production fell 12% to 5.2-million carats, the Orapa diamond mine’s output tumbling 27% and the Damtshaa mine being placed on care and maintenance.

Diamond production at Namdeb in Namibia fell 31% to 0.3-million carats with reduced production at Debmarine Namibia owing to extended planned in-port maintenance of the Mafuta vessel and lower grades at Namdeb’s land operations.

Production in Canada collapsed 71% to 0.1-million carats on the closure of the Snap Lake mine, with in-line production ongoing at Victor.

Consolidated second-quarter rough diamond sales of 9.6-million carats from three Sights, compared with 4.9-million carats from two Sights in the corresponding period last year.

Consolidated first-half diamond sales totalled 17.2-million carats, compared with 13.3-million carats from five Sights in the first half of last year.

Full year production guidance remains unchanged at 26-million carats to 28-million carats, subject to trading conditions.

While second-quarter platinum production at the high-margin Mogalakwena mine in Limpopo decreased by 3% to 98 800 oz and by 8% to 112 300 oz at Rustenburg, Amandelbult production was 1% better at 106 200 oz and Unki production in Zimbabwe 2% better at 17 800 oz.

Independently managed production was 9% higher at 203 200 oz on strong production performances at Mototolo, Modikwa, Bafokeng Rasimone and Kroondal.

Union, which is up for sale, produced 31% more platinum at 41 200 oz on improved mining efficiencies and increased concentrator plant stability.

Full year platinum production guidance remains unchanged at between 2.3-million ounces and 2.4-million ounces.

Copper production fell 8% to 144 200 t after going down 22% to 75 600 t at Los Bronces in Chile, where Collahuasi’s attributable production rose 14% to 56 200 t and El Soldado production escalated 24% to 12 400 t.

At June 30, Anglo American had 155 300 t of copper provisionally priced at 220c/lb and a first-half realised price of 215c/lb.

Owing to the severe winter weather experienced at Los Bronces, full year production guidance has been revised down to 570 000 t to 600 000 t for 2016.

Manganese alloy production decreased by 45% following the downsizing of South Africa Manganese and the operational suspension of three of the four furnaces at Metalloys, in Vereeniging.

Nickel production soared 76% higher to 11 100 t and output from Codemin remained at 2 300 t.

Full year production guidance remains unchanged at 45 000 t to 47 000 t.

Niobium production fell 25% to 1 200 t and phosphates production increased by 18%.