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UPDATE 1-Anglo American expects South African lockdown to hit iron ore and coal

Fri, 27th Mar 2020 08:29

(Adds detail)

LONDON, March 27 (Reuters) - Anglo American expects
output at its Kumba Iron Ore mine in South Africa to
fall by up to 3 million tonnes in 2020 because of a 21-day
lockdown and coal export production to be up to 2 million tonnes
lower, it said on Friday.

The London-listed miner also lowered output of platinum and
diamonds in South Africa, extended a slowdown in construction at
its Quellaveco copper project in Peru and paused work in its
Woodsmith polyhalite project in Britain.

Governments are stepping up measures to contain the
coronavirus including restricting movement and shutting down
non-essential businesses such as mining.

Anglo American said its workforce across different minerals
in South Africa would be cut by 50% to 75% during the country's
21-day lockdown, adding that major operations in other countries
had so far not been materially impacted.

The company had previously expected output this year of 41.5
million to 42.5 million tonnes at Kumba and to mine about 26
million tonnes of coal for export in South Africa and Colombia.
(Reporting by Zandi Shabalala; Editing by Edmund Blair and
David Clarke)

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