Anglo American Production Report Q1, 2017
NEWS RELEASE
24 April 2017
Anglo American plc
Production Report for the first quarter ended 31 March 2017
http://www.rns-pdf.londonstockexchange.com/rns/0539D_-2017-4-21.pdf
Overview
|
|
Q1 2017 |
Q1 2016 |
% vs. Q1 2016 |
|
Diamonds (Mct)(1) |
7.4 |
6.9 |
8% |
|
Platinum (produced ounces) (koz)(2) |
572 |
567 |
1% |
|
Copper (t)(3)(4) |
142,600 |
146,500 |
(3)% |
|
Iron ore - Kumba (Mt) |
10.5 |
8.9 |
17% |
|
Iron ore - Minas-Rio (Mt)(5) |
4.3 |
3.3 |
30% |
|
Export metallurgical coal (Mt) |
5.2 |
4.1 |
28% |
|
Export thermal coal (Mt)(6) |
6.8 |
6.5 |
6% |
|
Nickel (t)(7) |
9,900 |
11,200 |
(12)% |
Mark Cutifani, Chief Executive of Anglo American, said "A strong operational performance enhanced by the continued ramp-up of Gahcho Kué, Minas-Rio and Grosvenor delivered an 9% increase in production on a copper equivalent basis(8). The operating improvements at Sishen and ongoing portfolio refinements are further strengthening Anglo American's resilience and competitive position. De Beers' total sales volumes of 14.1 million carats reflected improved demand for lower value goods in stock at 31 December 2016."
- Rough diamond production increased by 8% to 7.4 million carats compared with Q1 2016. This reflected the contribution of Gahcho Kué in Canada, as well as increases in response to improved trading conditions.
- Platinum production (metal in concentrate)(2) was broadly flat at 572,000 ounces. With the sale of Rustenburg, production from that operation is now treated as purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by 26%). Refined platinum production increased by 121% to 577,000 ounces as Q1 2016 was impacted by a Section 54 safety stoppage at the Precious Metals Refinery.
- Copper production decreased by 3% to 142,600 tonnes. Continued strong performance at Collahuasi was offset by expected lower grades and increased ore hardness at Los Bronces, and the temporary suspension of mining operations at El Soldado which resulted in ~3,000 tonnes of lost production.
- Iron ore production from Kumba increased by 17% to 10.5 million tonnes due to improved mining productivity at Sishen, and higher throughput at Kolomela.
- Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis) as the operation continued to ramp-up.
- Export metallurgical coal production increased by 28% to 5.2 million tonnes, primarily due to a longwall move at Moranbah in Q1 2016 and the ramp-up at Grosvenor.
- Production of South African and Colombian export thermal coal increased by 6% to 6.8 million tonnes, driven by higher productivity across most of the South African mines.
- Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces, impacting throughput.
(1) De Beers production on 100% basis except the Gahcho Kué joint venture which is on an attributable 51% basis; (2) Reflects own mine production and purchases of metal in concentrate; (3) Copper production from the Copper business unit; (4) Copper production shown on a contained metal basis; (5) Wet basis; (6) Export thermal coal includes export primary production from South Africa and Colombia, and excludes secondary South African production that may be sold into either the export or domestic markets; (7) Nickel production from the Nickel business unit; (8) Copper equivalent production is normalised for, Kimberley, Niobium & Phosphates, Foxleigh and Callide, and to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton.
DE BEERS
|
|
|
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
Diamonds(1) |
|
|||||
|
|
|
|||||
|
Debswana |
000 carats |
5,191 |
5,328 |
(3)% |
5,440 |
(5)% |
|
Namdeb Holdings |
000 carats |
472 |
444 |
6% |
428 |
10% |
|
DBCM |
000 carats |
1,106 |
932 |
19% |
1,387 |
(20)% |
|
De Beers Canada |
000 carats |
631 |
162 |
290% |
497 |
27% |
|
Total carats recovered |
000 carats |
7,400 |
6,866 |
8% |
7,752 |
(5)% |
De Beers - Rough diamond production increased by 8% to 7.4 million carats, reflecting the contribution of Gahcho Kué in Canada, as well as increases in response to improved trading conditions.
Debswana's (Botswana) production decreased marginally to 5.2 million carats. Jwaneng's, production decreased by 8% due to expected lower grades, partly offset by Orapa, which increased by 5% due to expected higher grades.
Production at Namdeb Holdings (Namibia) increased by 6% to 0.5 million carats due to marginally higher grade at Namdeb.
In DBCM (South Africa), production increased by 19% to 1.1 million carats largely as a result of higher grades at Venetia.
Production in Canada increased by 290% to 0.6 million carats due to the contribution of Gahcho Kué, which reached commercial production on 2 March 2017.
Total rough diamond sales volumes in Q1 2017 were 14.1 million carats (13.7 million carats on a consolidated basis(2)) from three Sights, compared with 8.1 million carats (7.6 million carats on a consolidated basis(2)) from two Sights in Q1 2016. In addition, this increase reflected stronger demand in Sight 1 2017, particularly for lower value goods in stock at 31 December 2016.
Full Year Guidance
Full year production guidance(1) remains unchanged at 31-33 million carats, subject to trading conditions.
(1) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.
(2) Consolidated sales volume excludes De Beers' JV partners' 50% proportionate share of sales to entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, and includes pre-commercial production sales volumes from Gahcho Kué.
|
De Beers |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Carats recovered (000 carats) |
|
|
|
|
|
|
|
|
100% basis (unless otherwise stated) |
|
|
|
|
|
|
|
|
Orapa |
2,106 |
2,366 |
1,536 |
2,028 |
2,001 |
5% |
(11)% |
|
Letlhakane |
130 |
135 |
176 |
159 |
125 |
4% |
(4)% |
|
Damtshaa(1) |
- |
- |
- |
- |
- |
- |
- |
|
Jwaneng |
2,955 |
2,939 |
2,837 |
2,997 |
3,202 |
(8)% |
1% |
|
Debswana |
5,191 |
5,440 |
4,549 |
5,184 |
5,328 |
(3)% |
(5)% |
|
|
|
|
|
|
|
|
|
|
Namdeb |
94 |
118 |
120 |
94 |
72 |
31% |
(20)% |
|
Debmarine Namibia |
378 |
310 |
285 |
202 |
372 |
2% |
22% |
|
Namdeb Holdings |
472 |
428 |
405 |
296 |
444 |
6% |
10% |
|
|
|
|
|
|
|
|
|
|
Kimberley |
- |
- |
- |
- |
68 |
(100)% |
- |
|
Venetia |
939 |
1,218 |
898 |
695 |
706 |
33% |
(23)% |
|
Voorspoed |
167 |
169 |
196 |
126 |
158 |
6% |
(1)% |
|
DBCM |
1,106 |
1,387 |
1,094 |
821 |
932 |
19% |
(20)% |
|
|
|
|
|
|
|
|
|
|
Snap Lake |
- |
- |
- |
- |
3 |
(100)% |
- |
|
Victor |
189 |
148 |
142 |
147 |
159 |
19% |
28% |
|
Gahcho Kué (51% basis) |
442 |
349 |
83 |
- |
- |
- |
27% |
|
De Beers Canada |
631 |
497 |
225 |
147 |
162 |
290% |
27% |
|
Total carats recovered |
7,400 |
7,752 |
6,273 |
6,448 |
6,866 |
8% |
(5)% |
|
Sales volumes |
|
|
|
|
|
|
|
|
Total sales volume (100%) (Mct)(2) |
14.1 |
8.0 |
5.7 |
10.2 |
8.1 |
74% |
75% |
|
Consolidated sales volume (Mct)(2)(3) |
13.7 |
7.5 |
5.3 |
9.6 |
7.6 |
80% |
82% |
|
Number of Sights (sales cycles) |
3 |
3 |
2 |
3 |
2 |
|
|
(1) Damtshaa (a satellite operation of Orapa) was placed on care and maintenance from 1 January 2016).
(2) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume.
(3) Consolidated sales volume includes pre-commercial production sales volumes from Gahcho Kué.
PLATINUM
|
Platinum |
|
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
Produced ounces |
000 oz |
572 |
567 |
1% |
610 |
(6)% |
|
Own mined |
000 oz |
325 |
439 |
(26)% |
387 |
(16)% |
|
Purchase of concentrate |
000 oz |
247 |
128 |
93% |
223 |
11% |
|
Refined |
|
|
|
|
|
|
|
Platinum |
000 oz |
577 |
261 |
121% |
632 |
(9)% |
|
Palladium |
000 oz |
353 |
182 |
95% |
397 |
(11)% |
|
Rhodium |
000 oz |
74 |
48 |
55% |
92 |
(20)% |
|
Gold |
000 oz |
25 |
28 |
(11)% |
34 |
(27)% |
|
Nickel |
t |
5,100 |
5,700 |
(11)% |
6,200 |
(18)% |
|
Copper |
t |
3,200 |
3,300 |
(3)% |
3,300 |
(3)% |
Platinum - Platinum production (metal in concentrate) was broadly flat at 572,000 ounces. With the sale of Rustenburg, which completed in November 2016, production from that operation is now treated as purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by 26%).
Own mined production
Mogalakwena production increased by 3% to 111,900 ounces as a result of stronger plant recoveries and increased throughput.
Amandelbult production decreased by 12% to 97,100 ounces primarily due to unusually heavy rainfall resulting in flooded open pits, which also impacted feed chutes to the concentrator plants, as well as minor industrial action which impacted production for two days.
Union increased production by 10% to 37,700 ounces due to improved crew efficiencies and mining closer to the shaft area in line with the optimised mine plan. The sale of Union to Siyanda Resources was announced on 15 February. The sale is expected to complete during 2017, after which Siyanda will sell concentrate produced by Union to Platinum for a period of seven years and thereafter Platinum will toll treat concentrate for the remaining life of Union.
Mined production from independently managed operations decreased by 3% to 59,000 ounces primarily due to lower production at Kroondal following a two-day illegal strike, and lower grade at both Kroondal and Mototolo. This was partially offset by higher production at Modikwa due to improved plant recoveries.
Purchase of concentrate
Purchase of concentrate from independently managed operations was flat at 123,700 ounces as increased production at BRPM offset lower production at Bokoni following a fatality and subsequent Section 54 safety stoppage, as well as the 3% decrease from Modikwa, Mototolo and Kroondal described above.
Purchase of concentrate from third parties increased by nearly 120,000 ounces largely due to the inclusion of concentrate from Rustenburg, following the sale of these operations to Sibanye in November 2016.
Refined production
Refined platinum production increased by 316,100 ounces to 576,900 ounces with Q1 2016 refined production having been materially impacted by a Section 54 safety stoppage at the Precious Metal Refinery.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in Q4 2016 and is now running at steady-state; the backlog of 65,000 ounces is expected to be processed during 2017. The Number 2 furnace underwent planned maintenance and has now been successfully rebuilt. It is ramping-up to full capacity, which is expected in Q2 2017.
Full Year Guidance
Full year production guidance of metal in concentrate remains unchanged at 2.35 - 2.40 million ounces.
|
Platinum |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Produced platinum (000 troy oz) |
571.9 |
610.0 |
619.1 |
585.7 |
567.0 |
1% |
(6)% |
|
Owned mined |
324.6 |
386.8 |
468.3 |
443.5 |
439.1 |
(26)% |
(16)% |
|
Mogalakwena |
111.9 |
103.4 |
100.7 |
98.8 |
109.0 |
3% |
8% |
|
Amandelbult |
97.1 |
121.1 |
128.3 |
106.2 |
110.9 |
(12)% |
(20)% |
|
Unki |
18.9 |
19.9 |
18.2 |
17.8 |
18.6 |
2% |
(5)% |
|
Independently managed mines(1) |
59.0 |
60.1 |
64.9 |
66.8 |
60.9 |
(3)% |
(2)% |
|
Union |
37.7 |
38.1 |
37.7 |
41.2 |
34.3 |
10% |
(1)% |
|
Rustenburg(2) |
- |
44.2 |
118.1 |
110.8 |
104.3 |
(100)% |
(100)% |
|
Other(3) |
- |
- |
0.4 |
1.9 |
1.1 |
(100)% |
- |
|
Purchase of concentrate |
247.3 |
223.2 |
150.8 |
142.2 |
127.9 |
93% |
11% |
|
Independently managed mines(1) |
123.7 |
129.3 |
142.2 |
136.4 |
124.2 |
- |
(4)% |
|
Third party purchase of concentrate(2) |
123.6 |
93.9 |
8.6 |
5.8 |
3.7 |
3241% |
32% |
|
|
|
|
|
|
|
|
|
|
Refined production |
|
|
|
|
|
|
|
|
Platinum (000 troy oz) |
576.9 |
631.6 |
694.6 |
747.6 |
260.8 |
121% |
(9)% |
|
Palladium (000 troy oz) |
353.4 |
397.4 |
412.9 |
472.3 |
181.6 |
95% |
(11)% |
|
Rhodium (000 troy oz) |
73.7 |
92.2 |
86.8 |
90.7 |
47.7 |
55% |
(20)% |
|
Gold (000 troy oz) |
24.7 |
33.9 |
24.1 |
22.3 |
27.9 |
(11)% |
(27)% |
|
Nickel (000 tonnes) |
5.1 |
6.2 |
7.1 |
6.4 |
5.7 |
(11)% |
(18)% |
|
Copper (000 tonnes) |
3.2 |
3.3 |
3.8 |
3.7 |
3.3 |
(3)% |
(3)% |
|
4E Built-up head grade (g/tonne milled)(4) |
3.47 |
3.41 |
3.19 |
3.00 |
3.11 |
12% |
2% |
|
Platinum sales volumes - own mined and purchase of concentrate |
518.8 |
606.5 |
588.0 |
808.4 |
412.8 |
26% |
(14)% |
(1) Independently managed mines include the joint venture operations, Mototolo, Modikwa and Kroondal and the associates, Bokoni and BRPM.
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016. From this date production from Rustenburg is included within third party purchase of concentrate (POC).
(3) Other includes Twickenham.
(4) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
COPPER
|
Copper(1) |
|
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
Collahuasi (44% share) |
t |
57,700 |
51,100 |
13% |
58,600 |
(2)% |
|
Los Bronces |
t |
75,800 |
85,200 |
(11)% |
74,300 |
2% |
|
El Soldado |
t |
9,100 |
10,200 |
(11)% |
13,700 |
(34)% |
|
Total Copper |
t |
142,600 |
146,500 |
(3)% |
146,600 |
(3)% |
(1) Copper production shown on a contained metal basis.
Copper - Copper production decreased by 3% to 142,600 tonnes.
At Collahuasi, attributable production increased by 13% to 57,700 tonnes, driven by higher grades and continued improvements in plant performance. Adverse weather conditions impacted mining operations, however plant throughput levels were maintained through the feed of stockpiled material.
Production from Los Bronces decreased by 11% to 75,800 tonnes, although 2% higher compared to the prior quarter, with expected lower grades and increased ore hardness affecting throughput. In addition, planned major maintenance took place at both processing plants in the quarter.
El Soldado production decreased by 11% to 9,100 tonnes driven by the temporary suspension of mining operations from 18 February following the regulator's decision to not approve the mine plan update, which resulted in ~3,000 tonnes of lost production in Q1 2017. Engagement continues with the authorities.
Full Year Guidance
Full year production guidance remains unchanged at 570,000 - 600,000 tonnes, of which El Soldado represents 50,000 - 60,000 tonnes.
|
Copper (tonnes) on a contained metal basis unless stated otherwise(1) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Collahuasi 100% basis (Anglo American share 44%) |
|
|
|
|
|
|
|
|
Ore mined |
13,803,300 |
20,335,200 |
17,131,800 |
15,277,400 |
14,858,200 |
(7)% |
(32)% |
|
Ore processed - Sulphide |
12,336,400 |
12,302,700 |
12,522,100 |
12,479,200 |
12,102,800 |
2% |
- |
|
Ore grade processed - Sulphide (% TCu)(2) |
1.24 |
1.29 |
1.23 |
1.21 |
1.15 |
8% |
(4)% |
|
Production - Copper cathode |
100 |
700 |
800 |
1,400 |
1,900 |
(95)% |
(86)% |
|
Production - Copper in concentrate |
131,000 |
132,400 |
128,900 |
126,300 |
114,200 |
15% |
(1)% |
|
Total copper production for Collahuasi |
131,100 |
133,100 |
129,700 |
127,700 |
116,100 |
13% |
(2)% |
|
Anglo American's share of copper production for Collahuasi(3) |
57,700 |
58,600 |
57,000 |
56,200 |
51,100 |
13% |
(2)% |
|
Anglo American Sur |
84,900 |
88,000 |
82,800 |
88,000 |
95,400 |
(11)% |
(4)% |
|
Los Bronces mine(4) |
75,800 |
74,300 |
72,100 |
75,600 |
85,200 |
(11)% |
2% |
|
Ore mined |
13,448,400 |
13,196,500 |
13,947,400 |
13,477,900 |
10,487,900 |
28% |
2% |
|
Marginal ore mined |
11,461,400 |
8,445,700 |
6,192,800 |
6,148,500 |
13,402,300 |
(14)% |
36% |
|
Ore processed - Sulphide |
11,877,400 |
11,562,500 |
11,511,700 |
12,567,500 |
12,055,300 |
(1)% |
3% |
|
Ore grade processed - Sulphide (% TCu) |
0.69 |
0.69 |
0.65 |
0.62 |
0.74 |
(7)% |
(1)% |
|
Production - Copper cathode |
8,900 |
8,600 |
8,800 |
8,900 |
9,700 |
(8)% |
3% |
|
Production - Copper in concentrate |
66,900 |
65,700 |
63,300 |
66,700 |
75,500 |
(11)% |
2% |
|
El Soldado mine(4) |
9,100 |
13,700 |
10,700 |
12,400 |
10,200 |
(11)% |
(34)% |
|
Ore mined |
905,500 |
2,069,800 |
1,678,300 |
2,143,000 |
1,448,000 |
(37)% |
(56)% |
|
Ore processed - Sulphide |
1,797,600 |
1,833,900 |
1,553,200 |
1,741,200 |
1,836,100 |
(2)% |
(2)% |
|
Ore grade processed - Sulphide (% TCu) |
0.65 |
0.90 |
0.86 |
0.89 |
0.75 |
(13)% |
(28)% |
|
Production - Copper in concentrate |
9,100 |
13,700 |
10,700 |
12,400 |
10,200 |
(11)% |
(34)% |
|
Chagres Smelter(4) |
|
|
|
|
|
|
|
|
Ore smelted |
31,300 |
25,900 |
35,500 |
36,500 |
35,900 |
(13)% |
21% |
|
Production |
30,300 |
25,400 |
34,700 |
35,500 |
35,200 |
(14)% |
19% |
|
Total Copper segment copper production |
216,000 |
221,100 |
212,500 |
215,700 |
211,500 |
2% |
(2)% |
|
Total Attributable copper production(5) |
142,600 |
146,600 |
139,800 |
144,200 |
146,500 |
(3)% |
(3)% |
|
Total Attributable payable copper production |
137,500 |
141,300 |
135,000 |
139,200 |
141,600 |
(3)% |
(3)% |
|
Total Attributable sales volumes |
115,300 |
161,400 |
135,400 |
143,500 |
137,500 |
(16)% |
(29)% |
|
Total Attributable payable sales volumes |
111,200 |
155,700 |
130,700 |
138,500 |
133,000 |
(16)% |
(29)% |
|
Third party sales(6) |
9,800 |
20,100 |
26,000 |
6,700 |
9,200 |
7% |
(51)% |
(1) Excludes Anglo American Platinum's copper production.
(2) TCu = total copper.
(3) Anglo American's share of Collahuasi production is 44%.
(4) Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at 100% as Anglo American consolidates Anglo American Sur.
(5) Difference between total copper production and attributable copper production arises from Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
IRON ORE AND MANGANESE
|
Iron Ore and Manganese |
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
|
Iron ore - Kumba |
000 t |
10,473 |
8,925 |
17% |
11,928 |
(12)% |
|
Iron ore - Minas-Rio(1) |
000 t |
4,342 |
3,349 |
30% |
4,855 |
(11)% |
|
Manganese ore(2) |
000 t |
823 |
776 |
6% |
804 |
2% |
|
Manganese alloys(3) |
000 t |
31 |
32 |
(2)% |
37 |
(18)% |
(1) Wet basis.
(2) Saleable production.
(3) Production includes medium carbon ferro-manganese.
Kumba Iron Ore - Iron ore production increased by 17% to 10.5 million tonnes.
Sishen produced 7.7 million tonnes, a 31% increase driven by improved mining productivity resulting in higher plant throughput. As expected, production decreased by 10% compared to the previous quarter as Q4 2016 benefitted from greater access to low strip ratio ore. Waste removal of 33.9 million tonnes, in line with Q1 2016, was hampered by higher than expected rainfall during the quarter but the run rates improved in the latter part of Q1 2017 to levels required to meet full year guidance of 150-160 million tonnes.
Kolomela production increased by 3% to 2.8 million tonnes, due to higher throughput. Waste removal increased by 32% to 10.1 million tonnes in support of production growth. Going forward, waste removal run rates are expected to improve to meet full year guidance for 2017 of 50-55 million tonnes.
Export sales increased by 7% to 10.1 million tonnes. Total finished product stocks were 3.2 million tonnes, compared with 3.5 million tonnes at 31 December 2016, in line with optimum level of ~3 million tonnes.
Full Year Guidance
Full year production guidance remains unchanged at 40-42 million tonnes.
Iron Ore Brazil - Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis) as the operation continued to ramp-up to its current operating capacity. Production decreased by 11% compared to Q4 2016 due to expected lower grades, and the impact of higher rainfall at the start of the rainy season. After the Step 3 licences have been secured, expected in late 2018, the operation is expected to be in a position to produce at its nameplate capacity of 26.5 million tonnes (wet basis) per year.
Full Year Guidance
Full year production guidance remains unchanged at 16-18 million tonnes (wet basis).
Manganese ore - Manganese ore production increased by 6% to 823,000 tonnes, mainly as a result of opportunistic sales of South African concentrate and the use of trucking to access export opportunities in response to favourable market conditions. Ore production from the Australian operations was broadly in line with Q1 2016.
Manganese alloy - Manganese alloy production was broadly in line with Q1 2016 at 31,000 tonnes. The South African Manganese operations continue to operate only one of four furnaces.
|
Iron Ore and Manganese (tonnes) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Kumba Iron Ore |
10,472,600 |
11,927,900 |
11,759,900 |
8,863,600 |
8,924,500 |
17% |
(12)% |
|
By product: |
|
|
|
|
|
|
|
|
Lump |
6,978,800 |
7,812,000 |
7,598,500 |
5,721,300 |
5,669,700 |
23% |
(11)% |
|
Fines |
3,493,800 |
4,115,900 |
4,161,400 |
3,142,300 |
3,254,800 |
7% |
(15)% |
|
By mine: |
|
|
|
|
|
|
|
|
Sishen |
7,678,900 |
8,489,900 |
8,348,700 |
5,699,600 |
5,841,800 |
31% |
(10)% |
|
Kolomela |
2,793,700 |
3,438,000 |
3,411,200 |
3,164,000 |
2,713,100 |
3% |
(19)% |
|
Thabazimbi |
- |
- |
- |
- |
369,600 |
|
- |
|
Kumba sales volumes |
|
|
|
|
|
|
|
|
Export iron ore |
10,053,000 |
10,611,400 |
10,343,200 |
8,729,700 |
9,376,100 |
7% |
(5)% |
|
Domestic iron ore |
832,700 |
612,700 |
706,900 |
936,000 |
1,167,700 |
(29)% |
36% |
|
Minas-Rio production |
|
|
|
|
|
|
|
|
Pellet feed (wet basis) |
4,341,700 |
4,855,300 |
4,452,400 |
3,483,800 |
3,349,400 |
30% |
(11)% |
|
Minas-Rio sales volumes |
|
|
|
|
|
|
|
|
Export - pellet feed (wet basis) |
4,256,500 |
4,761,800 |
4,510,400 |
3,223,900 |
3,714,400 |
15% |
(11)% |
|
Samancor |
|
|
|
|
|
|
|
|
Manganese ore(1) |
823,100 |
804,200 |
761,700 |
791,300 |
775,900 |
6% |
2% |
|
Manganese alloys(1)(2) |
31,500 |
37,100 |
38,900 |
29,700 |
32,100 |
(2)% |
(15)% |
|
Samancor sales volumes |
|
|
|
|
|
|
|
|
Manganese ore(3) |
836,000 |
805,000 |
757,400 |
813,300 |
850,700 |
(2)% |
4% |
|
Manganese alloys |
34,400 |
31,600 |
49,200 |
46,400 |
42,800 |
(20)% |
9% |
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
(3) Comparatives have been restated.
COAL
|
Coal |
|
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
Australia - excluding 2016 divestments(1) |
|
|
|
|
|
|
|
Metallurgical - Export |
000 t |
5,242 |
4,098 |
28% |
5,360 |
(2)% |
|
Thermal - Export |
000 t |
479 |
805 |
(40)% |
595 |
(20)% |
|
South Africa |
|
|
|
|
|
|
|
Thermal export - Primary(2) |
000 t |
4,059 |
3,842 |
6% |
4,229 |
(4)% |
|
Thermal export and domestic - Secondary(3) |
000 t |
978 |
779 |
26% |
927 |
6% |
|
Thermal domestic - Eskom |
000 t |
6,374 |
6,392 |
- |
7,515 |
(15)% |
|
Thermal domestic - Isibonelo(4) |
000 t |
896 |
1,160 |
(23)% |
1,038 |
(14)% |
|
Colombia |
|
|
|
|
|
|
|
Thermal - Export |
000 t |
2,782 |
2,610 |
7% |
2,801 |
(1)% |
(1) Excludes production from Foxleigh, which was sold on 30 August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export - Primary is export quality product. Comparatives have been restated to align with current presentation.
(3) Thermal export and domestic - Secondary is lower quality product that can be sold into either the export or domestic markets. Comparatives have been restated to align with current presentation. In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
Australia - Export metallurgical coal production increased by 28% to 5.2 million tonnes due to a longwall move at Moranbah in Q1 2016 and production ramping up at Grosvenor.
Australian export thermal coal production decreased by 40% to 0.5 million tonnes as Drayton ceased mining activities in October 2016 following the New South Wales Planning Assessment Commission's recommendation not to approve the Drayton South Project.
Production was impacted by Cyclone Debbie with production losses in the last week of March. Mining activities have now restarted at all operations. The impact on the rail network has been more material, and is still being assessed. It is expected that this will impact Q2 sales volumes.
South Africa - Primary and secondary coal production increased by 9% to 5.0 million tonnes due to productivity improvements at most mines.
The sale of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was announced on 10 April, and is expected to complete by the end of 2017. These mines produced 5.7 million tonnes in Q1 2017.
Domestic - (Isibonelo) thermal coal production decreased by 23% to 0.9 million tonnes due to a dragline fire which occurred during Q4 2016.
Colombia - Production increased by 7% to 2.8 million tonnes, through productivity gains.
Full Year Guidance
Full year production guidance for export metallurgical coal from Australia remains unchanged at 19-21 million tonnes.
Full year production guidance for export thermal coal from South Africa and Colombia remains unchanged at 29-31 million tonnes.
|
Coal (tonnes) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Australia (all export)(1) |
5,721,400 |
5,955,100 |
5,923,500 |
5,935,700 |
4,902,200 |
17% |
(4)% |
|
Metallurgical - Coking |
4,747,300 |
4,496,900 |
4,326,600 |
3,997,500 |
3,378,900 |
40% |
6% |
|
Metallurgical - PCI |
495,100 |
862,900 |
741,300 |
923,300 |
718,800 |
(31)% |
(43)% |
|
Thermal |
479,000 |
595,300 |
855,600 |
1,014,900 |
804,500 |
(40)% |
(20)% |
|
South Africa |
12,307,300 |
13,708,600 |
14,690,700 |
13,188,800 |
12,171,800 |
1% |
(10)% |
|
Thermal export - Primary(2) |
4,058,500 |
4,229,400 |
4,480,800 |
4,425,600 |
3,841,600 |
6% |
(4)% |
|
Thermal export and domestic - Secondary(3) |
978,200 |
926,900 |
1,009,900 |
972,700 |
778,600 |
26% |
6% |
|
Thermal domestic - Eskom |
6,374,300 |
7,514,700 |
8,083,900 |
6,708,700 |
6,392,000 |
- |
(15)% |
|
Thermal domestic - Isibonelo(4) |
896,300 |
1,037,600 |
1,116,100 |
1,081,800 |
1,159,600 |
(23)% |
(14)% |
|
Colombia |
|
|
|
|
|
|
|
|
Thermal - Export |
2,781,700 |
2,800,600 |
2,927,800 |
2,329,500 |
2,610,000 |
7% |
(1)% |
|
Total coal production |
20,810,400 |
22,464,300 |
23,542,000 |
21,454,000 |
19,684,000 |
6% |
(7)% |
|
Sales volumes |
|
|
|
|
|
|
|
|
Australia |
|
|
|
|
|
|
|
|
Metallurgical - Export(5) |
4,947,400 |
4,926,900 |
5,223,100 |
4,836,700 |
4,228,900 |
17% |
- |
|
Thermal - Export |
473,200 |
699,000 |
862,000 |
1,118,800 |
697,900 |
(32)% |
(32)% |
|
South Africa |
|
|
|
|
|
|
|
|
Thermal - Export |
4,693,300 |
5,825,200 |
4,159,300 |
4,744,000 |
4,343,200 |
8% |
(19)% |
|
Thermal - Other domestic |
394,300 |
485,100 |
389,700 |
341,600 |
368,600 |
7% |
(19)% |
|
Thermal domestic - Eskom |
6,359,200 |
7,288,500 |
7,871,900 |
6,577,500 |
6,246,400 |
2% |
(13)% |
|
Thermal domestic - Isibonelo |
964,600 |
1,168,900 |
1,260,800 |
1,268,100 |
1,213,600 |
(21)% |
(17)% |
|
Third party sales |
1,567,800 |
694,600 |
2,181,800 |
1,608,600 |
1,566,700 |
- |
126% |
|
Colombia |
|
|
|
|
|
|
|
|
Thermal - Export |
2,646,300 |
2,722,300 |
2,905,100 |
2,843,800 |
2,339,000 |
13% |
(3)% |
(1) Comparatives have been restated to exclude production from Foxleigh, which was sold on 30 August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export - Primary is export quality product. Comparatives have been restated to align with current presentation.
(3) Thermal export and domestic - Secondary is lower quality product that can be sold into either the export or domestic markets. Comparatives have been restated to align with current presentation. In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(5) Includes both hard coking coal and PCI sales volumes.
|
Coal by mine (tonnes) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Australia |
|
|
|
|
|
|
|
|
Capcoal (incl. Grasstree) |
1,785,400 |
1,230,200 |
1,637,300 |
2,205,400 |
1,760,000 |
1% |
45% |
|
Dawson |
1,092,100 |
1,273,000 |
1,185,900 |
1,143,800 |
1,006,000 |
9% |
(14)% |
|
Drayton |
- |
82,300 |
317,100 |
418,200 |
349,900 |
(100)% |
(100)% |
|
Grosvenor |
709,800 |
539,100 |
685,700 |
331,200 |
203,000 |
250% |
32% |
|
Jellinbah |
718,000 |
882,100 |
820,200 |
821,600 |
758,400 |
(5)% |
(19)% |
|
Moranbah North |
1,416,100 |
1,948,400 |
1,277,300 |
1,015,500 |
824,900 |
72% |
(27)% |
|
|
5,721,400 |
5,955,100 |
5,923,500 |
5,935,700 |
4,902,200 |
17% |
(4)% |
|
South Africa |
|
|
|
|
|
|
|
|
Goedehoop |
1,222,100 |
1,134,200 |
1,286,500 |
1,266,600 |
1,001,300 |
22% |
8% |
|
Greenside |
1,004,800 |
1,036,900 |
1,111,400 |
990,700 |
806,300 |
25% |
(3)% |
|
Zibulo |
1,439,400 |
1,407,200 |
1,571,800 |
1,638,600 |
1,390,000 |
4% |
2% |
|
Khwezela(1) |
1,596,100 |
2,230,000 |
2,137,100 |
1,849,000 |
1,969,600 |
(19)% |
(28)% |
|
Mafube |
441,400 |
435,400 |
506,000 |
438,500 |
379,100 |
16% |
1% |
|
New Vaal |
3,414,300 |
3,994,800 |
4,350,500 |
4,027,700 |
3,521,800 |
(3)% |
(15)% |
|
New Denmark |
954,400 |
773,200 |
777,300 |
392,600 |
604,300 |
58% |
23% |
|
Kriel |
1,338,500 |
1,659,400 |
1,834,000 |
1,503,300 |
1,339,800 |
- |
(19)% |
|
Isibonelo |
896,300 |
1,037,500 |
1,116,100 |
1,081,800 |
1,159,600 |
(23)% |
(14)% |
|
|
12,307,300 |
13,708,600 |
14,690,700 |
13,188,800 |
12,171,800 |
1% |
(10)% |
|
Colombia |
|
|
|
|
|
|
|
|
Carbones del Cerrejón |
2,781,700 |
2,800,600 |
2,927,800 |
2,329,500 |
2,610,000 |
7% |
(1)% |
|
Total Coal production |
20,810,400 |
22,464,300 |
23,542,000 |
21,454,000 |
19,684,000 |
6% |
(7)% |
(1) The merger of Kleinkopje and Landau.
NICKEL
|
Nickel |
|
Q1 2017 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q4 2016 |
Q1 2017 vs. Q4 2016 |
|
Nickel |
t |
9,900 |
11,200 |
(12)% |
10,900 |
(9)% |
Nickel - Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces.
Full Year Guidance
As a consequence, full year production guidance has been revised to 43,000 - 45,000 tonnes (previously ~45,000 tonnes).
|
Nickel (tonnes) unless stated otherwise(1) |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Q1 2017 vs. Q1 2016 |
Q1 2017 vs. Q4 2016 |
|
Barro Alto |
|
|
|
|
|
|
|
|
Ore mined |
1,023,500 |
364,300 |
974,100 |
835,300 |
457,000 |
124% |
181% |
|
Ore processed |
523,900 |
579,800 |
610,000 |
569,200 |
598,100 |
(12)% |
(10)% |
|
Ore grade processed - % Ni |
1.70 |
1.77 |
1.76 |
1.76 |
1.77 |
(4)% |
(4)% |
|
Production |
7,800 |
8,800 |
9,000 |
8,800 |
8,900 |
(12)% |
(11)% |
|
Codemin |
|
|
|
|
|
|
|
|
Ore mined |
- |
- |
- |
6,800 |
- |
- |
- |
|
Ore processed |
143,600 |
142,900 |
144,000 |
151,300 |
151,400 |
(5)% |
0% |
|
Ore grade processed - % Ni |
1.65 |
1.73 |
1.72 |
1.72 |
1.68 |
(2)% |
(5)% |
|
Production |
2,100 |
2,100 |
2,300 |
2,300 |
2,300 |
(9)% |
0% |
|
Total Nickel segment nickel production |
9,900 |
10,900 |
11,300 |
11,100 |
11,200 |
(12)% |
(9)% |
|
Sales volumes |
10,400 |
11,400 |
11,600 |
11,100 |
10,800 |
(4)% |
(9)% |
(1) Excludes Anglo American Platinum's nickel production.
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure for the quarter increased by 9% to $50 million. Exploration expenditure for the quarter was $20 million, a 31% decrease, whilst evaluation expenditure was $30 million, a 76% increase.
NOTE
This Production Report for the first quarter ended 31 March 2017 is unaudited.
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 James Wyatt-Tilby james.wyatt-tilby@angloamerican.com Tel: +44 (0)20 7968 8759
Marcelo Esquivel marcelo.esquivel@angloamerican.com Tel: +44 (0)20 7968 8891
South Africa Pranill Ramchander pranill.ramchander@angloamerican.com Tel: +27 (0)11 638 2592
Ann Farndell ann.farndell@angloamerican.com Tel: +27 (0)11 638 2786 |
|
UK Paul Galloway paul.galloway@angloamerican.com Tel: +44 (0)20 7968 8718
Trevor Dyer Tel: +44 (0)20 7968 8992
Sheena Jethwa sheena.jethwa@angloamerican.com Tel: +44 (0)20 7968 8680 |
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), platinum and other precious metals, copper, nickel, iron ore and coal - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders and for the communities and countries in which we operate - creating sustainable value and making a real difference.
This information is provided by RNS
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