London- and Johannesburg- listed Anglo American last week reported mixed second-quarter production results, with copper output beating expectations for the first half, while its iron-ore production dipped.

Weaker The diversified major said production from its Kumba Iron Ore subsidiary decreased marginally with production from the Kolomela mine offsetting weaker output from Sishen, which is still recovering from lower stockpiles and production after an unprotected strike late last year.

The South Africa-based unit recorded a 1% decline in iron-ore production, from 11.45-million tonnes in the second quarter of 2012, to 11.3-million tonnes during the quarter under review.

Iron-ore exports fell 4% during the period to 10.8-million tonnes, while domestic demand declined 17% to 1.1-million tonnes.

Anglo American’s second-quarter copper production increased by 14% to 182 900 t, boosted by a 13% increase from the Los Bronces mine and a 25% increase at Collahuasi, both in Chile.

Liberum Capital commented that the half-year copper production figure of 353 300 t had exceeded market expectations for the six months.

Anglo American kept its copper production guidance of 680 000 t for 2013 against the backdrop of continued caution around the operating performance recovery and stability, particularly at Collahuasi.

Meanwhile, the dual-listed mining company reported a 5% decrease in export thermal coal production from South Africa and a 9% decrease in export metallurgical coal production to 4.4-million tonnes, owing to strategic production cuts last year.

The weaker second-quarter export thermal coal output from South Africa of four-million tonnes was attributed to poorer- than-planned geology at the Goedehoop operations. Longwall Production The decline in export thermal production was offset by a 5% rise in domestic production for Eskom to 8.8-million tonnes, owing to improved machine availability and higher longwall production at New Denmark.

The group reported a marginal rise in non-Eskom thermal coal, from 1.56-million tonnes in the second quarter of 2012, to 1.57-million tonnes during the three months to June.

Anglo American said it had also produced 581 800 oz of platinum during the quarter under review, compared with the 623 000 t recorded in the second quarter of 2012.

Equivalent refined platinum production rose 2% to 594 000 oz, with Anglo America’s own operations accounting for 397 000 oz of production.

Refined production of palladium and rhodium decreased by 10% and 7% to 319 700 oz and 69 800 oz respectively during the period under review.

Anglo American also recorded a 22% fall in nickel production to 8 500 t, while manganese ore and manganese alloy increased 5% and 141% to 900 000 t and 73 000 t respectively.

Commenting on the production figures, Liberum stated that issues in iron-ore stockpiles should be ironed out in the second half of the year and that strategic cuts in metallurgical coal production would likely continue, given the weak price environment.

Anglo American would publish its interim results on July 26.