The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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: 2,693.50
Bid: 2,680.50
Ask: 2,684.00
Change: 0.00 (0.00%)
Spread: 3.50 (0.131%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 2,693.50
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
5 Apr 2024 14:03

IN BRIEF: Anglo American unit issues bonds worth USD1.50 billion

Anglo American PLC - London-based mining company - Says its subsidiary, Anglo American Capital PLC, issues USD1.00 billion 5.750% senior notes due 2034 and the USD500.0 million 6.000% senior notes due 2054. Says the UK Financial Conduct Authority has approved issuance.

Read more
4 Apr 2024 18:31

TRADING UPDATES: Shanta Gold takeover approved; Experian to buy illion

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

Read more
4 Apr 2024 16:55

LONDON MARKET CLOSE: US initial jobless claims hotter than expected

(Alliance News) - Stock prices in London closed up on Thursday, as investors first digested words from US Federal Reserve Chair Jerome Powell overnight, before reacting to hotter-than-expected US initial jobless claims.

Read more
4 Apr 2024 15:58

London close: Stocks manage gains ahead of US payrolls report

(Sharecast News) - London markets closed higher on Thursday, driven by a robust showing from the mining sector and as investors contemplated the UK services sector's latest figures.

Read more
4 Apr 2024 11:58

LONDON MARKET MIDDAY: Stocks up as Fed chair calms some rate nerves

(Alliance News) - Stock prices in London were in the green on Thursday afternoon, with mining stocks powering the FTSE 100 higher, as investors digested words from Federal Reserve Chair Jerome Powell.

Read more
4 Apr 2024 09:43

LONDON BROKER RATINGS: Berenberg likes 4imprint; Numis cuts CMC

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and Wednesday:

Read more
2 Apr 2024 16:57

LONDON MARKET CLOSE: Europe down after Easter holiday weekend

(Alliance News) - The FTSE 100 took a hit on Tuesday, after a boost from London's miners and oil firms were not enough to lift the index.

Read more
2 Apr 2024 15:22

London close: Stocks turn red on return from Easter break

(Sharecast News) - UK stocks experienced a downturn by the end of trading on Tuesday, as investors resumed activity following the extended weekend, with initial gains reversed by the close ahead of a week marked by a number of key economic data releases.

Read more
2 Apr 2024 11:50

LONDON MARKET MIDDAY: FTSE 100 buoyed by UK manufacturing growth

(Alliance News) - The FTSE 100 in London was up at midday on Tuesday, reacting to the UK manufacturing sector returning growth and further PMI data across the globe.

Read more
30 Mar 2024 10:00

Canada's mild winter disrupts key ice road to remote Arctic diamond mines

TORONTO, March 30 (Reuters) - An unusually warm winter in Canada this year has delayed the opening of a 400-kilometer (250-mile) ice road that is rebuilt every year as the main conduit for Rio Tinto, Burgundy Mines, and De Beers to access their diamond mines in the remote Arctic region.

Read more
28 Mar 2024 17:34

Russia confirms deal to buy part of diamond producer Alrosa's output

MOSCOW, March 28 (Reuters) -

Read more
26 Mar 2024 12:02

LONDON MARKET MIDDAY: FTSE 100 flat amid China-West tension

(Alliance News) - The FTSE 100 recovered slightly from a tricky morning on Tuesday to trade flat heading into the afternoon, though simmering global tensions have kept a lid on its progress in the early part of the week.

Read more
14 Mar 2024 16:33

London close: Stocks fall as US inflation tops forecasts

(Sharecast News) - London's equity markets finished in negative territory on Thursday, driven by a flurry of stocks going ex-dividend and investor reactions to the latest US producer inflation and jobless data.

Read more
14 Mar 2024 12:09

LONDON MARKET MIDDAY: FTSE 100 trades flat but European peers rise

(Alliance News) - London's FTSE 100 underwhelmed on Thursday, weighed down by some of its stocks going ex-dividend, though trade was more confident in Paris and Frankfurt ahead of the afternoon's US data.

Read more
13 Mar 2024 17:05

REPEAT: LONDON MARKET CLOSE: FTSE 100 in green as UK economy rebounds

(Correcting error in article lede.)

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

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