Diamonds sparkle as Anglo heads for higher 2017 production

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Diamonds sparkle as Anglo heads for higher 2017 production

Published Date: 2017-10-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Diamonds sparkle as Anglo heads for higher 2017 production

Total production for the first nine months is 8% higher than last year

Anglo American has had a strong third quarter, growing production of copper and diamonds. It's lowered its guidance for platinum, however, after Anglo American Platinum closed unprofitable production at its joint-venture Bokoni mine. Production of metallurgical coal is up, but thermal coal production fell 15% due to operating challenges at its Khwezela colliery at Witbank, safety stoppages across all its South African coal operations in August and weather-related stoppages at Cerrejón in Colombia.

The mining group said stable trading conditions supported an increase in rough diamond production over the quarter, driven principally by Debswana in Botswana and the ramp-up of the Gahcho Kué Mine, a joint venture with Mountain Province Diamonds in Canada. Copper production increased by 5% from a year ago, reflecting strong mine extraction and higher associated grades. While iron ore is down on the third quarter of 2016, year to date its up strongly.

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"We have further increased production guidance at Kumba Iron Ore as we continue to improve our broader productivity performance," CEO Mark Cutifani said in a statement. "In Platinum, we have taken necessary steps to remove unprofitable ounces from production as we focus on value over volume."

Overall, the group says total production is up 6% on a copper equivalent basis for the third quarter compared to the same period last year. For the first nine months of the year, copper equivalent production has increased by 8%.

Anglo American declined 0.5% to end the day at R260.51.



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