Q4 2021 Production Report
27 January, 2022
Anglo American plc Production Report for the fourth quarter ended 31 December 2021
Mark Cutifani, Chief Executive of Anglo American, said: “Our production was broadly flat compared to Q4 of 2020, with our operating levels at approximately 95%(1) of normal capacity through the year, largely due to the ongoing Covid related effects on the operating environment. Production in the fourth quarter benefited from higher rough diamond production at De Beers, a return to pre-Covid production levels at our open cut metallurgical coal mines and improved mining performance at Amandelbult which resulted in higher metal in concentrate production from our PGMs business. At our copper operations, Collahuasi's production increased as a result of strong plant performance and planned maintenance in the comparable period of 2020.
"As we move into 2022, we are pleased with the construction progress at Quellaveco, our new copper mine in Peru. We are on track and within budget, we mined our first ore in October 2021, and we are expecting our first production of copper concentrate in the middle of this year. In the first quartile of the cost curve, we expect Quellaveco to produce 120,000-160,000 tonnes of copper production in 2022 and to average 300,000 tonnes per year for the first ten years at full production."
Q4 2021 highlights
- Rough diamond production increased by 15%, principally from Jwaneng in Botswana as well as in Namibia, reflecting planned higher production in response to strong consumer demand.
- Our Platinum Group Metals (PGMs) operations more than doubled refined production in the quarter, and resulted in a record full year refined production of 5.1Moz. This has substantially reduced work-in-progress inventory, and resulted in a 62% increase in co-product nickel production for the full year to 22,300 tonnes. Together with our primary nickel output, group total nickel production reached 64,000 tonnes in 2021, a 12% increase year-on-year.
- Metallurgical coal production increased by 5%, reflecting an increase in production at the Dawson open cut operation, partially offset by Moranbah which continues to be affected by areas of challenging geology.
- Our copper operations' full year production was in line with the prior year, mitigating the ongoing water challenges from the severe drought conditions.
- Full year iron ore production increased by 3%, although lower in the quarter, despite unplanned maintenance at Minas-Rio and third party rail performing below planned levels affecting Kumba's production for the year.
- Our 2021 Climate Change Report was published in October, setting out clear pathways to carbon neutral operations by 2040 and our ambition to reduce Scope 3 emissions by 50%, also by 2040.
- Completed sale of our 33% interest in Cerrejón on 11 January 2022: final stage of our exit from thermal coal operations.
Production | Q4 2021 | Q4 2020 | % vs. Q4 2020 | 2021 | 2020 | % vs. 2020 |
---|---|---|---|---|---|---|
Diamonds (Mct)(2) | 7.7 | 6.7 | 15% | 32.3 | 25.1 | 29% |
Copper (kt)(3) | 161 | 168 | (4)% | 647 | 647 | 0% |
Platinum group metals (koz)(4) | 1,103 | 1,076 | 3% | 4,299 | 3,809 | 13% |
Iron ore (Mt)(5) | 15.1 | 16.2 | (7)% | 63.8 | 61.7 | 3% |
Metallurgical coal (Mt) | 4.4 | 4.2 | 5% | 14.9 | 16.8 | (11)% |
Nickel (kt)(6) | 10.6 | 11.7 | (9)% | 41.7 | 43.5 | (4)% |
Manganese ore (kt) | 835 | 942 | (11)% | 3,683 | 3,520 | 5% |
(1) Production capacity excludes Grosvenor. Q4 year-on-year copper equivalent production decreased 1%, this is normalised to reflect the demerger of the South Africa thermal coal operations, the sale of our interest in Cerrejón and the closure of the manganese alloy operations.
(2) De Beers Group 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 operations in Chile 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) Wet basis.
(6) Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).
NOTES
- This Production Report for the quarter ended 31 December 2021 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 16 for information on forward-looking statements.
View full PDF of this press release (309 KB, opens in a new window)
View Anglo American Q4 2021 production tables (149 KB, opens in a new window)