Anglo American 1Q Production Drops 6% on Fall in Metallurgical Coal Output

By Oliver Griffin

Anglo American PLC (AAL.LN) Thursday reported that total production on a copper-equivalent basis fell 6% in the first quarter of 2019 after two planned longwall moves saw a 25% fall in metallurgical coal production.

The diversified mining company said metallurgical coal production fell to 4.2 million metric tons in the three months ended March 31, from 5.5 million tons in the year-earlier period. The reduction in metallurgical coal output accounted for 80% of the decline in total production, Anglo American said.

Copper output in the quarter rose 4% to 161,100 tons on the back of strong plant performance and planned higher grades. Rough diamond production from Anglo American's majority-owned diamond producer De Beers fell 8% to 7.9 million carats, due to lower production at the Venetia mine as it transitions to underground mining.

Production from the company's Minas-Rio iron-ore project in Brazil rose 61% to 4.9 million tons as the ramp up of operations progressed. Production at the Kumba iron-ore project in South Africa dropper 12 % due to plant maintenance.

Anglo American Platinum Ltd. (AMS.JO), the company's majority-owned platinum mining business, said that total platinum-group metal production--which includes platinum and palladium and material supplied by Sibanye-Stillwater Ltd. (SBGL)--fell 20% to 1.03 million ounces.

Anglo American Chief Executive Mark Cutifani said the company is on track to deliver this year's production targets and added that guidance is unchanged.

Write to Oliver Griffin at [e-mail]; @OliGGriffin

(END) Dow Jones Newswires

April 25, 2019 02:42 ET (06:42 GMT)

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