Minas-Rio lifts Anglo's production


Minas-Rio lifts Anglo's production

Published Date: 2019-07-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

Minas-Rio lifts Anglo's production

The diversified miner says it's on track to meet this year's production target as Minas-Rio ramps up production ahead of schedule.

Anglo American has reported a small rise in second-quarter production after Minas-Rio continued to rebuild production following last year's pipeline leaks at the Brazilian iron ore mine. The diversified mining group also reported a strong performance from its metallurgical coal business, offsetting weaker production at Kumba Iron Ore and De Beers.

Anglo resumed production at Minas-Rio in December after a nine-month stoppage due to a leak in the pipeline that carried iron ore slurry from the mine to the export terminal in Rio de Janeiro. Regulators also expanded the mine's licence.

The Brazilian mine produced 5.9 million tonnes of iron ore in the three months to end-June as its ramp-up continued ahead of schedule. Although Kumba reported a 9% decline in production due to plant maintenance, it said it continued to improve following challenges in the first quarter of the year. Metallurgical coal benefited from longwall moves and a plant upgrade in the first quarter, lifting production by 11%. But thermal coal production declined by 8%, primarily due to local drought conditions at Cerrejón in Colombia. Copper production increased by 1% due to strong performances at its Los Bronces and Collahuasi operations in Chile.

De Beers' diamond production fell by 15% to 7.7 million carats in the quarter as the group continued to produce to market demand and as its Venetia mine in Limpopo transitions from open pit to underground mining.

Anglo American Platinum produced 3% more platinum but palladium production decreased by 1% due to a change in the mix of production from each operation.

On a copper equivalent basis, group production rose 2% for the quarter.

Anglo American declined by 0.6% to R378.97 yesterday, while Amplats rose 3.4% to R810 and Kumba gained 1.8% to R483.27.

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