Q4 2020 Production Report
28 January, 2021
Anglo American plc Production Report for the fourth quarter ended 31 December 2020
Mark Cutifani, Chief Executive of Anglo American, said: “The strong performance recovery in the second half continued through the fourth quarter, following the Covid-19 disruptions earlier in the year. As expected, second half production returned to 95%(1) of 2019 rates, benefiting from strong performances in copper at Los Bronces in Chile and in iron ore at Minas-Rio in Brazil. The recovery was all the more credible given planned maintenance at both the Collahuasi copper and Kumba iron ore operations and the suspension of operations at the Grosvenor metallurgical coal mine.
“As we begin 2021, we are continuing to see positive demand for rough diamonds, supported by consumer demand for diamond jewellery in the holiday selling season. While it is still too early to signal a strong and sustained recovery, the resilience in demand in spite of ongoing Covid-19 impacts is very encouraging.
“While many jurisdictions are experiencing a new wave of Covid-19 infections, our extensive health measures and revised operating procedures have helped keep our people safe and healthy, while supporting solid production and cost management efforts across our global operations.”
Q4 highlights
- Copper production increased by 6% as Los Bronces secured access to industrial water for processing, while Collahuasi delivered record production for the 12 month period, which more than offset planned maintenance in the quarter.
- Iron ore production at Minas-Rio in Brazil increased by 5% to a record 6.5 million tonnes for the quarter.
- PGMs' ACP Phase A unit rebuild and restart completed ahead of schedule in November, and performing strongly to begin processing the build-up of inventory.
- Rough diamond sales continued to improve, with midstream demand supported by an encouraging holiday selling season for diamond jewellery.
Q4 2020 | Q4 2019 | % vs. Q4 2019 | 2020 | 2019 | % vs. 2019 | |
---|---|---|---|---|---|---|
Diamonds (Mct)(2) | 6.7 | 7.8 | (14)% | 25.1 | 30.8 | (18)% |
Copper (kt)(3) | 168 | 159 | 6% | 647 | 638 | 1% |
Platinum group metals (koz)(4) | 1,076 | 1,153 | (7)% | 3,809 | 4,441 | (14)% |
Iron ore (Mt)(5) | 16.0 | 18.0 | (11)% | 61.1 | 65.5 | (7)% |
Metallurgical coal (Mt) | 4.2 | 6.3 | (33)% | 16.8 | 22.9 | (26)% |
Thermal coal (Mt)(6) | 4.4 | 6.8 | (35)% | 20.6 | 26.4 | (22)% |
Nickel (kt)(7) | 11.7 | 11.7 | 0% | 43.5 | 42.6 | 2% |
Manganese ore (kt) | 942 | 903 | 4% | 3,520 | 3,513 | 0% |
(1) Excludes the impact of the Cerrejón strike. Q4 year-on-year copper equivalent production decreased 5% excluding the impact of the Grosvenor suspension and Cerrejón strike. Including the impact of Grosvenor and Cerrejón, copper equivalent production decreased 2% compared to Q3 2020 and decreased 10% compared to Q4 2019.
(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. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine production and purchase of concentrate.
(5) Total iron ore is the sum of Kumba (dry basis) and Minas-Rio (wet basis, as product is shipped with ~9% moisture).
(6) Reflects export primary production, secondary production sold into export markets and production sold domestically at export parity pricing from South Africa, and attributable export production (33.3%) from Colombia (Cerrejón).
(7) Reflects nickel production from the Nickel business unit only (excludes nickel production from the Platinum Group Metals business unit).
NOTES
- This Production Report for the quarter ended 31 December 2020 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
- Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each product’s volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any impact for movements in price.
- Please refer to page 18 for information on forward-looking statements.
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