(Alliance News) - Anglo American PLC on Thursday reported solid increases in production in the first quarter in most area, while production of coal shrank and guidance for coal output was cut as the miner unpacks some of its coal assets.
Looking at production on an annual basis, the Anglo American said diamond production in the first quarter fell 7.7% to 7.2 million carats from 7.8 million a year prior.
Copper, platinum group metals and manganese ore all saw some increases in production.
Copper output rose 8.8% to 160,000 tonnes from 147,000 tonnes, PGMs increased 6.9% to 1.0 million ounces from 955,000 ounces, and manganese ore jumped 7.4% to 905,000 tonnes from 843,000.
Iron ore production was largely flat at 16.2 million tonnes, from 16.0 million.
Coal saw significant falls in output, with metallurgical coal down 14% to 3.3 million tonnes from 3.8 million and thermal coal down 20% to 4.9 million tonnes from 6.2 million.
The company noted its progress towards "future-enabling metals and minerals" with the demerger of its coal operations in South Africa, which is subject to shareholder approval on May 5.
"[First quarter] production was at 95% of normal capacity, meeting strong customer demand despite some limited constraints at certain operations due to Covid-19. Production increased by 3% driven by strong performances at the copper operations in Chile, and PGMs and iron ore in South Africa, more than offsetting plant maintenance downtime at Minas-Rio iron ore in Brazil and the temporary suspension at the Moranbah metallurgical coal operation in Australia," said Chief Executive Mark Cutifani.
Looking ahead, coal production guidance for 2021 has been cut, with metallurgical coal now set at between 14 million tonnes and 16 million, down from between 18 million and 20 million.
Thermal coal production is seen at around 14 million tonnes, down from 24 million previously, reflecting the proposed demerger in South Africa.
All other guidance was unchanged.
Anglo American shares were up 0.6% at 3,087.50 pence each in London on Thursday morning but was down 0.1% at ZAR609.67 each in Johannesburg.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Anglo American (AAL)