The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAnglo American Share News (AAL)

Share Price Information for Anglo American (AAL)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 2,539.00
Bid: 2,539.00
Ask: 2,540.00
Change: -21.00 (-0.82%)
Spread: 1.00 (0.039%)
Open: 2,540.00
High: 2,563.50
Low: 2,518.50
Prev. Close: 2,560.00
AAL Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Miners' profits face an unusual foe: extreme weather

Fri, 29th Jul 2022 17:01

July 29 (Reuters) - Heavy rainfalls, withering droughts and other extreme weather patterns across the globe are denting miners' profits and crimping supply of iron ore, copper and other widely-used minerals as climate change roils yet another industry.

It is an unusual situation for companies that have experience operating anywhere in the world, include miles underground and at the tops of mountains and in places where temperatures often range from 100 degrees Fahrenheit (38°C) to 0F (minus 18°C).

But the first part of 2022 saw the mining industry - parts of which have long faced criticism for how coal production affects climate patterns - contend with a raft of weather-related incidents entirely outside its playbook. Executives detailed their weather-related troubles in earnings reports this week and warned they are likely to continue.

"We are reviewing a few different scenarios to adjust to the likelihood that there are further strange weather patterns," said Lundin Mining Corp Chief Executive Peter Rockandel.

Lundin cut its 2022 copper production forecast after heavy rains dented production at its Chapada mine in Brazil, a facility that as recently as 2019 was contending with drought.

Anglo American Plc slashed its dividend nL1N2Z90D4 after torrid rains hurt its iron ore production in Brazil during the first half of the year, coal mining in Australia and platinum mining in South Africa.

"The extremes that we saw in quarter one of this year outpaced all reasonable forecasting ability that we had," said Anglo CEO Duncan Wanbald.

Rio Tinto Ltd's iron ore shipments from Australia's Pilbara region fell 2% in the first half of the year nL4N2Z819P compared with the same period in 2021, partly due to "significantly higher than average rainfall in May."

Rio also said titanium dioxide production slipped in Madagascar amid one of the worst cyclone seasons in that country since 2008.

With inflation and high energy costs already biting into companies' cash reserves, the disruptions caused by extreme weather are even more evident.

"When markets are tight, these things just become a lot more material ... but there is not a lot you can do," analyst Ben Davis at broker Liberum said.

The cost of weather extremes is also measured in human lives. In Burkina Faso, unexpectedly heavy rains during the dry season caused flash floods at Trevali Mining Corp's zinc mine in April nL1N2Y71IL, killing eight miners who were trapped underground.

Brazil's Vale SA, one of the world's largest iron ore miners, said its output nL1N2Z93CO of the steel-producing mineral dropped in the first three months of the year due to torrential rains. Glencore warned nL1N2ZA0CB that flooding could dent its Australian coal production this year.

Sibanye Stillwater Ltd shuttered its Montana platinum mines last month after mountain snow rapidly melted amid unusually warm weather, causing runoff that took out several key roads and bridges.

ArcelorMittal SA said steel production at its South Africa's unit fell nearly a third during the first half after severe flooding in the KwaZulu-Natal province damaged rail lines.

DROUGHT

In Chile, the world's largest copper producer, miners have faced an ongoing water crisis due to historic drought that has lasted more than a decade and only grown worse this year. Antofagasta Plc, one of the country's largest copper miners, expects its production of the red metal to fall this year due to that drought.

Water is essential in copper production, used abundantly to separate the mineral from its ore and in subsequent steps. To counter water shortages, many mining companies desalinate ocean water and use it in their processes.

Earthworks, an environmental group that tracks the mining industry, said mining companies must do more to fund infrastructure improvements amid the changing climate.

"Mining companies have been prioritizing their bottom line over investing in safety and resiliency for too long," said Jan Morrill of Earthworks.

More News
Today 09:45

Stocks face worst month since September, yen swings after BoJ

Global stocks down 3.3% for the month

*

Read more
Today 09:14

LONDON MARKET OPEN: Thoma Bravo snaps up Darktrace for USD5 billion

(Alliance News) - Stock prices in London opened higher on Friday, as investors shook off nerves ahead of US inflation data this afternoon.

Read more
Today 08:14

Anglo American Platinum appoints Naidoo as CFO

April 26 (Reuters) - Anglo American Platinum (Amplats) has appointed Sayurie Naidoo as chief financial officer with effect from May 1, the company announced on Friday.

Read more
Today 07:43

LONDON BRIEFING: Anglo American rejects BHP takeover offer

(Alliance News) - Stocks in London are called to open higher on Friday, ahead of key US inflation data

Read more
Today 07:37

TOP NEWS: Anglo American rejects "opportunistic" BHP takeover offer

(Alliance News) - Anglo American PLC on Friday said its board has "unanimously" rejected an "opportunistic" offer from larger peer BHP Group Ltd, on grounds that it "significantly undervalues" the London-based miner.

Read more
Today 07:25

Anglo American rejects BHP's $39 bln takeover proposal

April 26 (Reuters) - Anglo American rejected rival miner BHP Group's 31.1 billion pound ($38.88 billion) takeover proposal on Friday, saying the bid significantly undervalued the London-listed miner and its future prospects.

Read more
Today 07:04

Anglo-American rejects £31bn BHP offer

(Sharecast News) - Anglo American on Friday rejected an "opportunistic" £31bn bid from rival miner BHP, saying it significantly undervalued the company.

Read more
25 Apr 2024 20:04

Equities fall amid earnings gloom, as persistent inflation lifts Treasury yields

Interest rate markets digest slowdown in US GDP growth rate

*

Read more
25 Apr 2024 18:58

South Africa scrutinises BHP bid for Anglo weeks before election

April 25 (Reuters) - South Africa's government is scrutinising BHP Group's proposed deal to buy Anglo American, a spokesperson said, with the deal likely to concern officials the coming weeks before a general election where the governing party's majority is at risk.

Read more
25 Apr 2024 18:31

BHP bids $39 bln for Anglo American as miners chase copper

Anglo's shares up 16% after BHP confirms offer

*

Read more
25 Apr 2024 17:51

Anglo American share spike before bid raises questions about leaks

LONDON, April 25 (Reuters) - Anglo American's London-listed shares spiked in late UK trade on Wednesday, hours before the miner announced a $39 billion bid by rival BHP Group , raising questions from some lawyers, investors and commentators about possible leaks.

Read more
25 Apr 2024 17:06

European stocks retreat on earnings gloom, weak US economic data

Hermes quarterly sales jump 17% on strong China demand

*

Read more
25 Apr 2024 16:57

LONDON MARKET CLOSE: FTSE 100 shakes off red-hot US inflation gauge

(Alliance News) - London's FTSE 100 outperformed on Thursday, enjoying a solid rise on largely well-received corporate earnings and a share price jump for miner Anglo American after it received a takeover bid from peer BHP.

Read more
25 Apr 2024 16:44

Mexican peso leads Latam FX down as US inflation data bolsters Fed rate worries

*
US economic growth slows in first quarter; inflation surges

Read more
25 Apr 2024 16:35

Tepid economic data weighs on equities; yen sinks to fresh lows

Interest rate markets digest slowdown in US GDP growth rate

*

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account