Anglo American IMS Q1 2014

RNS Number : 3715F

Anglo American PLC

24 April 2014

 



24 April 2014

Anglo American plc

Interim Management Statement for the first quarter ended 31 March 2014

Overview

	Q1 2014	Q1 2013	% vs. Q1 2013
Iron ore (Mt)	11.3	10.3	+10%
Export metallurgical coal (Mt)	6.1	4.6	+31%
Export thermal coal (Mt)	7.9	6.9	+14%
Copper (t)	202,000	170,500	+18%
Nickel (t)	9,200	6,200	+48%
Platinum (equivalent refined)(1) (koz)	357	583	(39)%
Diamonds (Mct)	7.5	6.4	+18%

·       Kumba Iron Ore production increased by 10% to 11.3 million tonnes, following solid performances at both Sishen and Kolomela. Q1 2013 was impacted by lower than planned production at Sishen following the unprotected strike in Q4 2012

·       Export metallurgical coal production increased by 31% to 6.1 million tonnes, a record quarter, primarily as a result of continuing productivity improvements

·       Export thermal coal production from South Africa increased by 6% to 4.1 million tonnes. Cerrejón's production increased by 95% reflecting the strike affected Q1 2013 period

·       Copper production⁽²⁾ increased by 18% to 202,000 tonnes, with improved performance from Los Bronces and Collahuasi, primarily the result of higher ore grades. Production guidance for FY 2014 has been revised upwards to 710,000 - 730,000 tonnes (previously 700,000 - 720,000 tonnes)

·       Nickel production⁽³⁾ increased by 48% to 9,200 tonnes driven by improved operational stability at Barro Alto

·       Niobium production  was flat at 1,100 tonnes as higher recoveries were offset by lower ore grade

·       Phosphates concentrate production was flat at 347,900 tonnes. Fertiliser production decreased by 2% due to unplanned maintenance stoppage and throughput constraints

·       Platinum equivalent refined production decreased by 39% to 357,000 ounces as a result of the industrial action at Rustenburg, Amandelbult and Union mines in South Africa. As a consequence of the ongoing industrial action FY 2014 production guidance has been revised downwards to approximately 2.1 million ounces (previously 2.3 - 2.4 million ounces)

·       Diamond production increased by 18% to 7.5 million carats, largely due to the impact of planned plant maintenance at Orapa in Q1 2013 and recovery from the 2012 sidewall failure at Jwaneng

(1)              Equivalent refined is the mines' production and purchases of metal in concentrate, secondary metals and other metals converted to equivalent refined production using Anglo American Platinum Limited's standard smelting  and refining recoveries

(2)              Copper production from the Copper business unit

(3)              Nickel production from the Nickel business unit

IRON ORE AND MANGANESE

Iron Ore and Manganese		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Iron ore	000 t	11,328	10,335	10%	11,286	0%
Manganese ore	000 t	692	803	(14)%	846	(18)%
Manganese alloys	000 t	65	57	13%	66	(2)%

Iron Ore - Production from Kumba Iron Ore increased by 10% to 11.3 million tonnes. Sishen production increased by 15% to 8.7 million tonnes due to increased plant throughput and the recovery from lower than expected production in Q1 2013 following the unprotected strike in Q4 2012. Implementation of the production recovery plan at Sishen continued during the quarter, although this was hampered by heavy rainfall that affected waste removal. Waste removal, however, increased by 3.4% compared to Q1 2013.

Kolomela mine produced 2.5 million tonnes, which is in line with the name plate capacity of 10 million tonnes.

Maintenance on a reclaimer at Kolomela, which suffered structural damage, affected export sales volumes resulting in a decrease of 5% to 9.4 million tonnes.

FY 2014 production guidance for Sishen and Kolomela mines remains unchanged at 44 - 46 million tonnes.

The Minas-Rio iron ore project in Brazil continued to progress in line with the target of achieving first ore on ship by the end of 2014 and with total capex unchanged at $8.8 billion. Activities at the beneficiation plant, pipeline, filtration plant and port continued as planned and the project was 88% completed at the end of Q1 2014.

Manganese ore- Production decreased by 14% to 692,200 tonnes, due to higher than usual rainfall in Australia, which impacted feed rates and yields, and planned maintenance in South Africa. 

Manganese alloy - Production increased by 13% to 64,800 tonnes due to process optimisation at Temco in Australia and additional capacity from the M14 furnace at Metalloys in South Africa.

COAL

Coal		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Australia & Canada
Metallurgical - Export	000 t	6,053	4,615	31%	4,733	28%
Thermal - Export	000 t	769	1,494	(49)%	1,585	(51)%
Thermal - Domestic	000 t	1,228	1,073	14%	1,689	(27)%
South Africa
Thermal - Export	000 t	4,149	3,909	6%	4,602	(10)%
Thermal - Domestic (Eskom)	000 t	7,407	8,130	(9)%	7,618	(3)%
Thermal - Domestic (Non-Eskom)	000 t	1,360	1,519	(10)%	1,234	10%
Colombia
Thermal - Export	000 t	2,948	1,512	95%	3,290	(10)%

Australia & Canada - Export metallurgical coal production increased by 31% to 6.1 million tonnes due to record production from the underground operations, with longwall cutting hours at Grasstree (Capcoal underground) and Moranbah improving by 63% and 33%, respectively.

Australian export thermal coal production decreased by 49% to 0.8 million tonnes, due to a product mix change with an increase in metallurgical coal production, while lower production from Drayton was due to the mine nearing the end of its life.

Construction work on the greenfield Grosvenor metallurgical coal project in Queensland is nearing 50% completion. Critical engineering and procurement activities have been completed and the majority of the project budget has been contracted and committed. Longwall production remains scheduled to commence at the end of 2016 and within budget of $1.95 billion.

South Africa - Export thermal coal production increased by 6% to 4.1 million tonnes due to improved operational performance at Greenside and mine ramp up at Zibulo.

Production to Eskom was 9% lower at 7.4 million tonnes due to excessive rainfall at New Vaal and a delayed start-up post the longwall move at New Denmark.

Domestic non-Eskom production decreased by 10% to 1.4 million tonnes due to excessive rainfall at Landau.

Colombia - Cerrejón's production increased by 95% predominantly due to the effect of a 32 day strike during Q1 2013.

Export metallurgical coal FY 2014 production guidance for Australia and Canada remains unchanged at 18 - 20 million tonnes. Export thermal coal FY 2014 production guidance for South Africa and Colombia remains unchanged at 29 - 30 million tonnes.

BASE METALS AND MINERALS - COPPER

Copper		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Copper	t	202,000	170,500	18%	214,300	(6)%

Copper - Copper production increased by 19% to 202,000 tonnes. Los Bronces' production  increased by 17% to 115,600 tonnes, with higher grades and continued throughput improvement at both plants. Higher grades reflect adjustments to the sequencing of extraction from the mine which sees higher grade areas being mined sooner. As the year progresses, lower grades are expected to offset these early gains.

Collahuasi's production increased by 78% due to continuing higher grades and the SAG Mill 3 shutdown in Q1 2013. Higher grades reflect the current phase of mining and the accelerated ore extraction of the phase to maximise productivity. Lower grades are expected later in the year as ore supply increases from the next phase.

Production at El Soldado decreased by 37% to 9,900 tonnes. As previously reported, the intersection with a geological fault has delayed the development of the next major phase of ore supply resulting in lower ore availability and grades.

The recent earthquake in the northern region of Chile had minimal impact on copper operations.

Production guidance for FY 2014 has been revised upwards to 710,000 - 730,000 tonnes from 700,000 - 720,000 tonnes, reflecting the mining of higher grade phases at Los Bronces and Collahuasi at the beginning of 2014.

BASE METALS AND MINERALS - NICKEL

Nickel		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Nickel	t	9,200	6,200	48%	10,200	(10)%

Nickel - Production increased by 48% to 9,200 tonnes, despite a decrease in ore grades. Barro Alto produced 6,900 tonnes of nickel, an increase of 68%, reflecting continued operational stability as well as the impact from the Q1 2013 planned stoppage of Line 2 for the electric furnace sidewall rebuild, followed by the metal run-out during the start-up. The first full furnace rebuild at Barro Alto is expected to start, as planned, in late 2014.

Codemin's production increased by 10% to 2,300 tonnes, mainly due to rephasing of annual maintenance from Q1 to Q2 2014.

Production guidance for FY 2014 remains unchanged at 30,000 - 35,000 tonnes.

BASE METALS AND MINERALS - NIOBIUM & PHOSPHATES

Niobium & Phosphates		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Niobium
Production	t	1,100	1,100	0%	1,200	(8)%
Phosphates
Concentrate	t	347,900	348,000	0%	353,400	(2)%
Phosphoric Acid	t	53,800	77,500	(31)%	78,000	(31)%
Fertiliser	t	267,200	273,200	(2)%	299,000	(11)%
Dicalcium phosphate (DCP)	t	31,600	38,300	(17)%	38,700	(18)%

Niobium - Production of niobium was flat at 1,100 tonnes as recovery and process improvements offset lower ore grades.

Development of the Fresh Rock project to extend the life of the Boa Vista mine is ongoing, reaching 85% completion and is expected to achieve first production during the second half of 2014.

Phosphates - Concentrate production was flat at 347,900 tonnes. Fertiliser production decreased by 2%, owing to an unplanned maintenance stoppage and throughput constraints. Phosphoric acid production decreased by 31% to 53,800 tonnes and DCP production decreased by 17% to 31,600 tonnes, due to a bi-annual maintenance stoppage at Catalão.

PLATINUM

Platinum		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Refined
Platinum	000 oz	435	439	(1)%	692	(37)%
Palladium	000 oz	257	264	(3)%	428	(40)%
Rhodium	000 oz	61	57	7%	84	(27)%
Copper(1) - Refined	t	3,200	2,000	60%	1,800	78%
Copper(1) - Matte	t	1,200	-	-	1,400	(14)%
Nickel(1) - Refined	t	4,900	3,300	48%	5,200	(6)%
Nickel(1) - Matte	t	1,400	-	-	100	1300%
Gold	000 oz	25	23	9%	27	(5)%
Equivalent
Platinum	000 oz	357	583	(39)%	520	(31)%

(1)       Nickel and copper refined through third parties is shown as production of nickel matte and copper matte. Nickel and copper matte, per the table, reflects matte sold to a third party in Q1 2014 from 2012 and 2013 production stockpile

Platinum - Equivalent refined platinum production decreased by 39% to 357,000 ounces, primarily due to the ongoing industrial action, which began on 23 January 2014, affecting the Rustenburg, Amandelbult and Union mines in South Africa. Total platinum ounces lost due to the industrial action in Q1 2014 was 185,000 ounces. In addition, the impact of placing Khomanani Mine, Khuseleka 2 shaft and Union North Mine declines on long term care and maintenance in August 2013, resulted in a decrease in production of 43,000 ounces.

The industrial action has not impacted production at the Mogalakwena and Unki mines or the majority of the joint operations and associates. Mogalakwena's production increased by 3% due to higher achieved 4E⁽¹⁵⁾ built-up head grade and through the mining productivity improvement programmes introduced during 2013. The Unki mine had record production performance, increasing by 4%, due to improvement in volumes delivered to the concentrator and throughput at the mills.  

Production from joint operations and associates increased by 5% to 183,000 ounces due to increased production at Kroondal and Bokoni mines, partially offset by a decrease in production following a week-long industrial action at Modikwa mine.

Processing operations have not been affected by the industrial action. Refined platinum production totalled 435,000 ounces, in line with production in Q1 2013. However, as mined production reduced, total refined production was supplemented by a drawdown of pipeline inventory. As a result, sales to both contractual and non-contractual (spot) customers have continued at normal levels, supplemented by refined platinum stock.

Palladium, Rhodium and Nickel - Refined production of palladium decreased by 3%, while refined production of rhodium increased by 7%. This variance was due to a different source of feed as certain mines' supply was impacted by the industrial action and the different processing times of the metals. Nickel production increased by 48% as production in Q1 2013 was impacted by technical challenges and good progress was made with the ramp up of production in the nickel tank house.

Production guidance for FY 2014 has been reduced to approximately 2.1 million ounces (previously 2.3 - 2.4 million ounces) of equivalent refined platinum, with further downside revisions possible as a result of the ongoing industrial action.

DIAMONDS

Diamonds		Q1 2014	Q1 2013	Q1 2014 vs. Q1 2013	Q4 2013	Q1 2014 vs. Q4 2013
Diamonds	000 carats	7,531	6,364	18%	9,132	(18)%

Diamonds - Diamond production increased by 18% to 7.5 million carats due largely to production in Q1 2013 being impacted by planned plant maintenance at Orapa and the clean-up of the June 2012 sidewall failure in the Jwaneng pit.

Southern African operations were again hampered by heavy rainfall, resulting in lower production than in Q4 2013. However, improved preparedness in Q1 2014 meant the impact was lower than in Q1 2013.

Production guidance for FY 2014 remains unchanged at 30 - 32 million carats.

Please note that diamond production disclosure has increased and is now provided on a mine by mine basis in the Production Summary table.

EXPLORATION AND EVALUATION

Exploration and Evaluation expenditure for Q1 2014 totalled $82 million, a decrease of 21%.

Exploration expenditure in Q1 2014 was $35 million, a decrease of $13 million, spread across all commodities but particularly metallurgical coal and diamonds.

Evaluation expenditure for the quarter was $47 million, a decrease of 15%. Evaluation expenditure in Q1 2014 was primarily focused on the Copper business.

NOTE

This Interim Management Statement for the first quarter ended 31 March 2014 is unaudited.

Interim Financial Results for the six months to 30 June 2014 will be announced on 25 July 2014.

This report forms Anglo American plc's Interim Management Statement for the purpose of the UK Listing Authority's Disclosure and Transparency Rules.

PRODUCTION SUMMARY

The figures below include the entire output of consolidated entities and the Group's attributable share of joint operations, associates and joint ventures where applicable, except for De Beers' joint ventures which are quoted on a 100% basis.

Iron Ore (tonnes)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Kumba Iron Ore
Lump	6,979,200	6,825,200	5,614,100	6,866,400	6,190,300	2%	13%
Fines	4,348,600	4,460,500	3,860,500	4,411,400	4,144,700	(3)%	5%
Total Kumba production	11,327,800	11,285,700	9,474,600	11,277,800	10,335,000	0%	10%
Sishen	8,657,500	8,395,000	6,429,100	8,562,100	7,552,300	3%	15%
Kolomela	2,512,900	2,739,500	2,806,100	2,583,600	2,679,500	(8)%	(6)%
Thabazimbi	157,400	151,200	239,400	132,100	103,200	4%	53%
Total Kumba production	11,327,800	11,285,700	9,474,600	11,277,800	10,335,000	0%	10%
Kumba sales volumes
RSA export iron ore	9,422,700	9,530,200	9,422,400	10,178,300	9,945,100	(1)%	(5)%
RSA domestic iron ore	1,414,800	1,305,700	1,312,200	1,131,500	882,000	8%	60%
Samancor
Manganese ore(1)	692,200	846,000	788,100	864,200	803,400	(18)%	(14)%
Manganese alloys(1)(2)	64,800	66,200	54,800	72,800	57,300	(2)%	13%
Samancor sales volumes
Manganese ore	833,900	837,900	766,100	793,800	864,300	0%	(4)%
Manganese alloys	79,200	60,400	56,800	68,400	63,100	31%	26%

Coal segment (tonnes)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Australia & Canada Australia
Metallurgical - Export Coking	3,964,000	3,133,900	3,053,000	2,663,400	2,861,300	26%	39%
Metallurgical - Export PCI	1,659,300	1,241,900	1,444,700	1,283,800	1,289,800	34%	29%
	5,623,300	4,375,800	4,497,700	3,947,200	4,151,100	29%	35%
Thermal - Export	769,300	1,584,700	1,672,400	1,513,100	1,493,800	(51)%	(49)%
Thermal - Domestic	1,227,900	1,688,800	1,752,300	1,725,300	1,073,000	(27)%	14%
	1,997,200	3,273,500	3,424,700	3,238,400	2,566,800	(39)%	(22)%
Canada
Metallurgical - Export Coking	409,200	339,300	412,500	448,500	463,500	21%	(12)%
Metallurgical - Export PCI	20,800	18,300	1,700	-	-	14%	-
	430,000	357,600	414,200	448,500	463,500	20%	(7)%
South Africa
Thermal - Export	4,149,100	4,602,000	4,504,900	4,015,200	3,909,200	(10)%	6%
Thermal - Domestic (Eskom)	7,406,900	7,617,800	9,053,200	8,766,600	8,129,800	(3)%	(9)%
Thermal - Domestic (Other)	1,359,500	1,234,100	1,665,300	1,573,800	1,518,800	10%	(10)%
	12,915,500	13,453,900	15,223,400	14,355,600	13,557,800	(4)%	(5)%
Colombia
Thermal - Export	2,948,200	3,290,300	3,184,900	3,014,300	1,512,000	(10)%	95%
	2,948,200	3,290,300	3,184,900	3,014,300	1,512,000	(10)%	95%
Total Metallurgical coal production	6,053,300	4,733,400	4,911,900	4,395,700	4,614,600	28%	31%
Total Export Thermal coal production	7,866,600	9,477,000	9,362,200	8,542,600	6,915,000	(17)%	14%
Total Domestic Thermal coal production	9,994,300	10,540,700	12,470,800	12,065,700	10,721,600	(5)%	(7)%
Total Coal production	23,914,200	24,751,100	26,744,900	25,004,000	22,251,200	(3)%	7%
Weighted average achieved FOB prices
Australia and Canada
Metallurgical - Export(3) US$/t	124	133	129	153	148	(7)%	(16)%
Thermal - Export US$/t	79	78	82	84	90	1%	(12)%
Thermal - Domestic US$/t	40	40	39	40	37	0%	8%
South Africa
Thermal - Export US$/t	77	76	74	76	83	1%	(7)%
Thermal - Domestic US$/t	18	21	18	19	20	(14)%	(10)%
Colombia
Thermal - Export US$/t	68	72	70	75	77	(6)%	(12)%
Sales volumes
Australia and Canada
Metallurgical - Export(4)	5,386,200	5,182,200	4,859,000	4,667,100	4,336,200	4%	24%
Thermal - Export	1,019,700	1,881,800	1,477,900	1,505,300	1,506,600	(46)%	(32)%
Thermal - Domestic	1,331,400	1,632,000	1,684,300	1,700,000	1,109,100	(18)%	20%
South Africa
Thermal - Export	3,977,300	4,660,200	4,877,600	4,049,100	3,914,900	(15)%	2%
Thermal - Domestic	9,078,500	8,805,800	10,429,100	10,243,400	9,565,800	3%	(5)%
Colombia
Thermal - Export	2,647,200	3,067,100	3,154,800	3,157,100	1,773,500	(14)%	49%

Coal by mine (tonnes)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Australia & Canada Australia
Callide	1,229,200	1,688,800	1,752,300	1,725,300	1,151,400	(27)%	7%
Capcoal (incl. Grasstree)	1,904,700	1,578,800	1,606,000	1,461,100	1,415,500	21%	35%
Dawson	1,022,800	1,162,700	993,300	1,077,100	752,600	(12)%	36%
Drayton	659,100	976,400	1,055,900	785,000	893,400	(32)%	(26)%
Foxleigh	432,900	421,900	541,000	475,700	528,000	3%	(18)%
Jellinbah	677,500	755,900	673,400	610,000	477,200	(10)%	42%
Moranbah North	1,694,300	1,064,800	1,300,500	1,051,400	1,499,800	59%	13%
	7,620,500	7,649,300	7,922,400	7,185,600	6,717,900	0%	13%
Canada
Peace River Coal	430,000	357,600	414,200	448,500	463,500	20%	(7)%
	430,000	357,600	414,200	448,500	463,500	20%	(7)%
South Africa
Goedehoop	1,138,400	1,228,300	1,194,600	1,143,200	1,114,700	(7)%	2%
Greenside	803,500	923,700	862,800	792,500	690,500	(13)%	16%
Isibonelo	1,248,900	1,139,700	1,421,700	1,259,500	1,245,900	10%	0%
Kleinkopje	807,500	935,600	1,106,900	973,800	980,900	(14)%	(18)%
Kriel	2,045,500	1,962,500	2,189,900	2,056,200	1,894,100	4%	8%
Landau	902,700	1,079,800	1,065,800	939,100	999,300	(16)%	(10)%
Mafube	321,800	416,200	475,400	437,000	496,800	(23)%	(35)%
New Denmark	638,800	569,200	817,100	1,203,700	996,900	12%	(36)%
New Vaal	3,895,000	3,905,200	4,797,300	4,321,200	4,082,000	0%	(5)%
Zibulo	1,113,400	1,293,700	1,291,900	1,229,400	1,056,700	(14)%	5%
	12,915,500	13,453,900	15,223,400	14,355,600	13,557,800	(4)%	(5)%
Colombia
Carbones del Cerrejón	2,948,200	3,290,300	3,184,900	3,014,300	1,512,000	(10%)	95%
	2,948,200	3,290,300	3,184,900	3,014,300	1,512,000	(10)%	95%
Total Coal production	23,914,200	24,751,100	26,744,900	25,004,000	22,251,200	(3)%	7%

Copper segment (tonnes) unless stated otherwise(5)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Collahuasi 100% basis (Anglo American share 44%)
Ore mined	17,560,100	23,120,000	19,421,500	19,526,000	18,888,000	(24)%	(7)%
Ore processed - Oxide	1,700,500	1,481,600	1,594,100	2,024,300	1,928,800	15%	(12)%
Ore processed - Sulphide	12,060,400	14,019,700	13,467,600	9,972,800	10,098,900	(14)%	19%
Ore grade processed - Oxide (% ASCu)(6)	0.71	0.71	0.75	0.89	0.86	0%	(17)%
Ore grade processed - Sulphide (% TCu)(7)	1.09	1.23	1.21	1.00	0.75	(11)%	45%
Production - Copper cathode	5,300	5,500	6,900	8,400	7,700	(4)%	(31)%
Production - Copper in concentrate	113,600	141,700	137,800	77,400	59,200	(20)%	92%
Total copper production for Collahuasi	118,900	147,200	144,700	85,800	66,900	(19)%	78%
Anglo American's share of copper production for Collahuasi(8)	52,300	64,800	63,700	37,800	29,400	(19)%	78%
Anglo American Sur
Los Bronces mine(9)
Ore mined	12,311,300	14,502,400	13,243,600	14,991,700	14,200,500	(15)%	(13)%
Marginal ore mined	5,280,400	5,261,100	3,903,800	4,551,100	3,505,300	0%	51%
Ore processed - Sulphide	13,295,100	12,940,500	13,168,200	12,960,600	12,891,300	3%	3%
Ore grade processed - Sulphide (% TCu)	0.88	0.87	0.83	0.81	0.80	1%	10%
Production - Copper cathode	9,900	9,900	8,600	9,300	10,000	0%	(1)%
Production - Copper in sulphate	-	-	-	200	400	-	-
Production - Copper in concentrate	105,700	100,000	97,900	92,200	88,000	6%	20%
Production total	115,600	109,900	106,500	101,700	98,400	5%	17%
El Soldado mine(9)
Ore mined	1,893,500	2,001,200	1,910,600	2,439,800	2,225,100	(5)%	(15)%
Ore processed - Sulphide	1,856,900	1,852,400	1,730,200	1,870,600	1,859,200	0%	0%
Ore grade processed - Sulphide (% TCu)	0.67	0.90	0.65	0.91	1.03	(26)%	(35)%
Production - Copper cathode	200	300	200	300	400	(33)%	(50)%
Production - Copper in concentrate	9,700	12,300	9,200	13,600	15,200	(21)%	(36)%
Production total	9,900	12,600	9,400	13,900	15,600	(21)%	(37)%
Chagres Smelter(9)
Ore smelted	36,700	39,900	38,100	35,800	36,000	(8)%	2%
Production	35,500	38,700	36,800	34,900	34,800	(8)%	2%
Total copper production for Anglo American Sur	125,500	122,500	115,900	115,600	114,000	2%	10%
Anglo American Norte
Mantos Blancos mine
Ore processed  - Sulphide	1,078,000	1,099,500	1,073,300	1,059,400	1,097,400	(2)%	(2)%
Ore grade processed - Sulphide (% ICu) (10)	0.69	0.69	0.69	0.69	0.54	0%	28%
Production - Copper cathode	5,000	6,700	7,500	8,000	7,300	(25)%	(32)%
Production - Copper in concentrate	6,100	6,700	6,100	7,200	5,100	(9)%	20%
Production total	11,100	13,400	13,600	15,200	12,400	(17)%	(10)%
Mantoverde mine
Ore processed - Oxide	2,530,500	2,473,500	2,708,500	2,544,800	2,658,500	2%	(5)%
Ore processed - Marginal ore	2,105,200	1,729,100	2,179,000	2,235,800	2,136,400	22%	(1)%
Ore grade processed - Oxide (% ASCu )	0.50	0.52	0.55	0.58	0.61	(4)%	(18)%
Ore grade processed - Marginal ore (% ASCu )	0.24	0.23	0.24	0.26	0.26	4%	(8)%
Production - Copper cathode	13,100	13,600	14,100	14,400	14,700	(4)%	(11)%
Total copper production for Anglo American Norte	24,200	27,000	27,700	29,600	27,100	(10)%	(11)%
Total Copper segment copper production	268,600	296,700	288,300	231,000	208,000	(9)%	29%
Total Attributable copper production(11)	202,000	214,300	207,300	183,000	170,500	(6)%	18%
Attributable sales volumes	207,600	214,500	216,700	176,700	160,300	(3)%	30%

Nickel segment (tonnes) unless stated otherwise(12)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Barro Alto
Ore mined	354,000	321,300	885,200	510,300	282,200	10%	25%
Ore processed	464,000	487,800	444,400	412,700	271,400	(5)%	71%
Ore grade processed - %Ni	1.78	1.82	1.87	1.74	1.84	(2)%	(3)%
Production	6,900	7,800	7,100	6,100	4,100	(12)%	68%
Codemin
Ore mined	-	-	-	6,800	-	-	-
Ore processed	147,200	151,700	157,000	157,900	135,800	(3)%	8%
Ore grade processed - %Ni	1.67	1.72	1.70	1.68	1.72	(3)%	(3)%
Production	2,300	2,400	2,400	2,400	2,100	(4)%	10%
Total Nickel segment nickel production	9,200	10,200	9,500	8,500	6,200	(10)%	48%
Sales volumes	10,000	11,200	9,200	6,300	7,100	(11)%	41%

Niobium and Phosphates segment (tonnes) unless otherwise stated	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Niobium
Ore mined	38,500	457,100	407,500	314,500	49,700	(92)%	(23)%
Ore processed	229,700	224,400	239,900	249,700	249,100	2%	(8)%
Ore grade processed - %Nb	0.92	1.16	1.19	1.11	1.22	(21)%	(25)%
Production	1,100	1,200	1,100	1,100	1,100	(8)%	0%
Phosphates
Concentrate	347,900	353,400	355,000	349,900	348,000	(2)%	0%
Concentrate grade - %P2O5	36.8	36.7	37.1	37.4	37.4	0%	(2)%
Phosphoric acid	53,800	78,000	79,500	82,100	77,500	(31)%	(31)%
Fertiliser(13)	267,200	299,000	326,300	300,500	273,200	(11)%	(2)%
High analysis fertiliser	30,100	44,400	61,300	53,000	50,600	(32)%	(41)%
Low analysis fertiliser	237,100	254,600	265,000	247,500	222,600	(7)%	7%
Dicalcium phosphate (DCP)	31,600	38,700	43,100	39,500	38,300	(18)%	(17)%

Platinum segment	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Refined production
Platinum (troy oz)	435,200	692,100	666,400	581,800	439,200	(37)%	(1)%
Palladium (troy oz)	256,700	428,200	369,300	319,700	263,600	(40)%	(3)%
Rhodium (troy oz)	60,600	83,500	84,900	69,800	56,500	(27)%	7%
Copper  refined (tonnes)(14)	3,200	1,800	2,600	1,900	2,000	78%	60%
Copper  matte (tonnes)(14)	1,200	1,400	300	4,100	-	(14)%	-
Nickel refined (tonnes)(14)	4,900	5,200	4,900	3,400	3,300	(6)%	48%
Nickel matte (tonnes)(14)	1,400	100	300	5,400	-	1300%	-
Gold (troy oz)	25,400	26,700	33,700	16,300	23,300	(5)%	9%
Equivalent refined
Platinum (troy oz)	357,000	520,300	622,600	594,500	583,000	(31)%	(39)%
4E built-up head grade (g/tonne milled)(15)	2.86	3.19	3.36	3.24	3.22	(10)%	(11)%

Diamonds segment  (De Beers)	Q1 2014	Q4 2013	Q3  2013	Q2 2013	Q1 2013	Q1 2014 vs. Q4 2013	Q1 2014 vs.  Q1 2013
Carats recovered 100% basis
Orapa	3,204,000	3,516,000	2,644,000	3,132,000	2,083,000	(9)%	54%
Letlhakane	131,000	164,000	132,000	257,000	129,000	(20)%	2%
Damtshaa	56,000	102,000	55,000	58,000	49,000	(45)%	14%
Jwaneng	2,367,000	2,575,000	2,615,000	2,922,000	2,274,000	(8)%	4%
Debswana	5,758,000	6,357,000	5,446,000	6,369,000	4,535,000	(9)%	27%
Terrestrial	137,000	148,000	161,000	137,000	156,000	(7)%	(12)%
Marine	295,000	317,000	284,000	286,000	273,000	(7)%	8%
Namdeb Holdings	432,000	465,000	445,000	423,000	429,000	(7)%	1%
Kimberley	159,000	147,000	224,000	223,000	221,000	8%	(28)%
Venetia	531,000	1,403,000	891,000	258,000	640,000	(62)%	(17)%
Voorspoed	242,000	178,000	240,000	158,000	141,000	36%	72%
DBCM	932,000	1,728,000	1,355,000	639,000	1,002,000	(46)%	(7)%
Snap Lake	268,000	397,000	315,000	328,000	272,000	(32)%	(1)%
Victor	141,000	185,000	171,000	172,000	126,000	(24)%	12%
De Beers Canada	409,000	582,000	486,000	500,000	398,000	(30)%	3%
Total carats recovered	7,531,000	9,132,000	7,732,000	7,931,000	6,364,000	(18)%	18%

(1)              Saleable production

(2)              Production includes medium carbon ferro-manganese

(3)              Within export coking and export PCI coals there are different grades of coal with different weighted average prices compared to benchmark

(4)              Includes both hard coking coal and PCI sales volumes

(5)              Excludes Anglo American Platinum's copper production

(6)              ASCu = acid soluble copper

(7)              TCu = total copper

(8)              Anglo American's share of Collahuasi production is 44%

(9)              Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at 100% as Anglo American consolidates Anglo American Sur

(10)            ICu = insoluble copper (total copper less acid soluble copper)

(11)            Difference between total copper production and attributable copper production arises from Anglo American's 44% interest in Collahuasi

(12)            Excludes Anglo American Platinum's nickel production

(13)            2013 fertiliser includes updated  production quantification methodology in the acidulation plant at Cubatão

(14)            Nickel and copper refined through third parties is now shown as production of nickel matte and copper matte. Nickel and copper matte, per the table, reflect matte sold to a third party in Q1 2014 from 2012 and 2013 production stockpiles

(15)            4E: the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold.

Note:

Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report. The percentage change will reflect the percentage change using the production figures shown in the Production Summary of this report.

Forward-looking statements:

This contains certain forward looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.

For further information, please contact:

Media	Investors
UK	UK
James Wyatt-Tilby	Paul Galloway
Tel: [phone]	Tel: [phone]
Emily Blyth	Caroline Crampton
Tel: [phone]	Tel: [phone]
South Africa	Sarah McNally
Pranill Ramchander	Tel: [phone]
Tel: [phone]

Notes to editors:

Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses meets our customers' changing needs and spans bulk commodities - iron ore and manganese, metallurgical coal and thermal coal; base metals and minerals - copper, nickel, niobium and phosphates; and precious metals and minerals - in which we are a global leader in both platinum and diamonds.  At Anglo American, we are committed to working together with our stakeholders - our investors, our partners and our employees - to create sustainable value that makes a real difference, while upholding the highest standards of safety and responsibility across all our businesses and geographies. The company's mining operations, pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.

www.angloamerican.com

 

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