Q2 2020 Production Report
16 July, 2020
Anglo American plc Production Report for the second quarter ended 30 June 2020
Mark Cutifani, Chief Executive of Anglo American, said: “Anglo American has shown resilience in addressing the challenges posed by Covid-19, acting quickly to help safeguard the lives and livelihoods of our workforce and host communities. Our comprehensive response supported the continuity of the majority of our operations during varying degrees of lockdown in different jurisdictions, albeit at reduced capacity in many cases. Continued strong performances from our Minas-Rio iron ore operation in Brazil and the Collahuasi copper operation in Chile helped mitigate our overall decrease in production to 18%(1), as we also addressed operational issues at our metallurgical coal and PGM operations. Building up from a production level of around 60%(1) of total capacity in April, we continue to increase and had reached about 90%(1) of production capacity by the end of June.
"Beyond the current business imperatives, we continue to ensure that our business is well positioned for the long term, including the nature of our portfolio evolution and societal responsibilities. During the quarter, we have confirmed our plans to work towards an exit from our remaining thermal coal operations in South Africa, in line with our overall trajectory towards later cycle products. And, benefiting from the ongoing transformation of our physical processes through our FutureSmart Mining™ programme, we set out our clear aim of achieving carbon neutrality across our operations by 2040 – an ambitious and important commitment for us as a business, for our employees and our diverse stakeholders."
Q2 Highlights
- Minas-Rio in Brazil continued its strong operational performance, with 6.2 million tonnes of high quality iron ore production, reflecting ongoing P101 productivity improvements.
- Collahuasi in Chile increased copper production by 38% due to strong performance.
- Metallurgical coal production decreased by 32% to 4.0 million tonnes due to two incidents underground, at Moranbah and Grosvenor, as well as longwall moves at Grosvenor and Grasstree.
- Covid-19 lockdowns across southern Africa affected De Beers, PGMs, Kumba and Thermal Coal, with lower refined PGMs production due to the repairs and ramp-up of the ACP.
Production Summary
Q2 2020 | Q2 2019 | % vs. Q2 2019 | H1 2020 | H1 2019 | % vs. H1 2019 | |
---|---|---|---|---|---|---|
Diamonds (Mct)(2) | 3.5 | 7.7 | (54)% | 11.3 | 15.6 | (27)% |
Copper (kt)(3) | 167 | 159 | 5% | 314 | 320 | (2)% |
Platinum (koz)(4) | 307 | 520 | (41)% | 748 | 992 | (25)% |
Palladium (koz)(4) | 228 | 347 | (34)% | 532 | 674 | (21)% |
Iron ore – Kumba (Mt) | 8.5 | 10.5 | (20)% | 17.9 | 20.1 | (11)% |
Iron ore – Minas-Rio (Mt)(5) | 6.2 | 5.9 | 5% | 12.6 | 10.8 | 17% |
Metallurgical coal (Mt) | 4.0 | 5.8 | (32)% | 7.8 | 10.0 | (22)% |
Thermal coal (Mt)(6) | 4.4 | 6.6 | (34)% | 10.5 | 13.2 | (20)% |
Nickel (Kt)(7) | 10.8 | 9.8 | 10% | 21.7 | 19.6 | 11% |
Manganese ore (kt) | 796 | 826 | (4)% | 1,639 | 1,700 | (4)% |
This Production Report for the second quarter ended 30 June 2020 is unaudited.
(1) Copper equivalent production is normalised to reflect closure of Victor (De Beers) and Sibanye-Stillwater Rustenburg material that has transitioned to a tolling arrangement (Platinum Group Metals).
(2) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(3) Contained metal basis. Reflects copper production from the Copper business unit only (excludes copper production from the Platinum Group Metals business unit).
(4) Produced ounces of metal in concentrate. Reflects own mine production and purchases.
(5) Volumes are reported as wet metric tonnes. Product is shipped with ~8-9% moisture.
(6) Reflects export production from South Africa and attributable export production (33.3%) from Colombia.
(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).
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