Q3 2018 Production Report
23 October, 2018
Anglo American reports a 1% increase in total production on a copper equivalent basis in the third quarter of 2018, compared to the same period of 2017, excluding the Minas-Rio stoppage(1).
Mark Cutifani, Chief Executive of Anglo American, said: “Our focus on driving efficiency and productivity across the business resulted in another strong quarter, with volumes 1% higher than the solid operational performance seen in Q3 2017. Production per employee has increased by 5% in 2018, compared to 2017, as we maintain relentless discipline on controllable costs. Strong operational performance at our Copper assets delivered a 17% increase in production, more than offsetting planned lower volumes at De Beers and the impact of rail infrastructure constraints at Kumba in the first half of the year.”
Highlights
- De Beers production decreased by 5% to 8.7 million carats due to expected lower grades at Jwaneng and lower volumes at Venetia, due to a shutdown to upgrade its processing plant ahead of its transition from open cut to underground operations.
- Copper production increased by 17% to 171,800 tonnes reflecting continued strong operational performance across all operations and planned higher grades.
- Platinum and palladium production increased by 4% to 649,000 ounces and 1% to 411,000 ounces respectively driven by an improved performance at Amandelbult and the joint venture operations.
- Kumba’s iron ore production decreased by 9% to 10.5 million tonnes as planned, to offset elevated stock levels arising from Transnet rail constraints in H1 2018.
- Metallurgical coal production decreased by 3% to 5.4 million tonnes with the timing of longwall moves.
- Thermal coal export production increased by 13% to 7.7 million tonnes reflecting solid operational improvements at our coal assets.
| Q3 2018 | Q3 2017 | % vs. Q3 2017 | YTD 2018 | YTD 2017 | % vs. YTD 2017 | |
|---|---|---|---|---|---|---|
| Diamonds (Mct)(2) | 8.7 | 9.2 | (5)% | 26.2 | 25.3 | 3% |
| Copper (kt)(3) | 172 | 147 | 17% | 485 | 431 | 13% |
| Platinum (koz)(4) | 649 | 621 | 4% | 1,882 | 1,810 | 4% |
| Palladium (koz)(4) | 411 | 408 | 1% | 1,224 | 1,183 | 4% |
| Iron ore – Kumba (Mt) | 10.5 | 11.5 | (9)% | 32.9 | 33.3 | (1)% |
| Iron ore – Minas-Rio (Mt)(5) | - | 4.2 | - | 3.2 | 12.8 | (75)% |
| Metallurgical coal (Mt) | 5.4 | 5.5 | (3)% | 16.2 | 14.7 | 10% |
| Thermal coal (Mt)(6) | 7.7 | 6.8 | 13% | 21.7 | 21.7 | - |
| Nickel (kt)(7) | 11.5 | 11.2 | 3% | 30.9 | 32.4 | (5)% |
| Manganese ore (kt) | 888 | 840 | 6% | 2,635 | 2,506 | 5% |
This Production Report for the third quarter ended 30 September 2018 is unaudited
(1) Copper equivalent production is normalised for Bokoni being placed on care and maintenance in Q3 2017 and the Minas-Rio production stoppage in 2018. Including the Minas-Rio stoppage, production decreased by 3% compared to Q3 2017.
(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. Reflects own mine production and purchases of metal in concentrate.
(5) Wet basis.
(6) Reflects export production from South Africa and Colombia.
(7) Reflects nickel production from the Nickel business unit only (i.e. excludes nickel production from the Platinum Group Metals business unit).