Q3 2012 Production report

RNS Number : 4828P

Anglo American PLC

25 October 2012

 



25 October 2012

Anglo American plc Production Report for the third quarter ended 30 September 2012

Overview

·       Solid operational performance with production increases across five of the seven commodities

·       Kumba Iron Ore production increased by 14% to a record 12.5 million tonnes, driven by faster than planned ramp up of Kolomela mine. Kolomela is expected to produce at least 7 million tonnes in 2012

·       Export metallurgical coal production increased by 12% to 4.5 million tonnes

·       Export thermal coal production from South Africa increased by 10% to 4.6 million tonnes

·       Copper production⁽¹⁾ increased by 12% to 157,300 tonnes, reflecting the full ramp up of the Los Bronces expansion project

·       Nickel production⁽²⁾ increased by 38% to 9,000 tonnes, with production from Barro Alto offsetting the lack of production from  Loma de Níquel in Venezuela

·       Refined platinum production of 649,000 ounces was flat, while equivalent refined platinum production decreased by 6% to 626,300 ounces. Production and costs were adversely impacted by illegal industrial action which caused production loss of 42,000 ounces of equivalent refined platinum in the quarter

·       Diamond production decreased by 31% to 6.4 million carats, largely in response to market conditions and the Jwaneng slope failure

·       On 16 August 2012, Anglo American completed the acquisition of a 40% shareholding in De Beers from CHL Holdings Limited for a cash consideration of $5.2 billion

·       On 24 August 2012, Anglo American completed the sale of a 25.4% shareholding in Anglo American Sur to a Codelco and Mitsui joint venture company for a cash consideration of $2.0 billion

·       During the quarter, Anglo American issued corporate bonds with a US dollar equivalent value of $2.3 billion in the US and European markets

The Interim Management Statement for the third quarter ended 30 September 2012 is unaudited. Preliminary Results for the full year to 31 December 2012 will be announced on
15 February 2013. This report forms Anglo American plc's Interim Management Statement for the purpose of the UK Listing Authority's Disclosure and Transparency Rules.

(1)              Copper production from the Copper business unit

(2)              Nickel production from the Nickel business unit

IRON ORE & MANGANESE

Iron Ore and Manganese		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Iron ore	000 t	12,497	10,953	14%	11,449	9%	34,053	30,107	13%
Manganese ore	000 t	858	808	6%	826	4%	2,501	2,065	21%
Manganese alloys	000 t	52	78	(33%)	30	72%	137	223	(38%)

Iron Ore - Record quarterly Kumba Iron Ore production of 12.5 Mt was achieved, owing to faster than planned ramp up of Kolomela mine. Kolomela's production of 2.5 Mt was 44% higher than Q2 2012, with the mine reaching design capacity in July 2012, ahead of schedule. The mine is expected to produce at least 7 Mt in 2012, with full production of 9 Mtpa in 2013.  

Production from Sishen mine of 9.8 Mt declined by 7%, as mining feedstock and quality constraints continued to impact plant throughput. However, an improvement plan has been implemented and, as a result, production increased by 0.3 Mt quarter on quarter. 

In October 2012, Sishen mine's production was affected by an illegal strike. The strike started on 3 October, with production suspended on 4 October when striking miners blocked access to the pit, creating an unsafe environment for mining operations. The strikers were removed from the mine on 16 October and management regained possession of all the heavy mining equipment from the strikers. Following the removal of the strikers from the mine, production is being ramped up. As at 24 October, Sishen mine had lost approximately 2.2 Mt of finished product from the strike.

The Minas-Rio iron ore project is progressing and, during the quarter, two legal stoppages were lifted, allowing important activities to continue at the beneficiation plant site. If all the current impediments are cleared by the end of 2012 and there are no major unexpected interventions, it is anticipated that first ore on ship will be delivered in the second half of 2014. Capital expenditure for the completion of this project was expected to be approximately $5.8 billion, however the quantum of a further increase is currently under review.

Manganese Ore - Consistently strong operating performance and improved plant availability at GEMCO (Australia) contributed to record ore production in the quarter - a 6% increase to 858,000 tonnes.

Manganese Alloys - The resumption of production at TEMCO (Australia) in July 2012 led to a substantial increase in alloy production quarter on quarter to 52,000 tonnes. The year to date decline in alloy production reflected the permanent closure of energy-intensive silico-manganese production at Metalloys (South Africa) in January 2012.

 METALLURGICAL COAL

Metallurgical Coal		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Export metallurgical	000 t	4,496	4,015	12%	4,846	(7%)	13,084	10,129	29%
Thermal	000 t	3,399	3,978	(15%)	3,286	3%	9,256	10,068	(8%)

Metallurgical Coal - Production of metallurgical coal increased by 12% to 4.5 Mt. This was driven by productivity improvements and the timing of longwall moves (one move in the quarter versus two moves in Q3 2011) in Australia, and a 59% increase in production from Peace River in Canada. Production was 7% lower quarter on quarter due to the scheduled longwall move at Grasstree mine in Australia. 

Thermal coal production decreased by 15% to 3.4 Mt in response to weaker market conditions.

The brownfield Grosvenor metallurgical coal project in Queensland, Australia is progressing in line with current plan. Engineering is 60% complete, earthworks on site commenced in July and drift construction began in October. 

THERMAL COAL

Thermal Coal		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
RSA  export thermal	000 t	4,555	4,146	10%	4,224	8%	12,473	12,091	3%
Colombia export thermal	000 t	2,829	2,852	(1%)	3,105	(9%)	8,887	7,999	11%
RSA domestic - Eskom	000 t	9,057	8,751	3%	8,326	9%	25,146	25,809	(3%)
RSA domestic - other	000 t	1,531	1,129	36%	1,577	(3%)	4,699	3,690	27%

Thermal Coal - Export thermal coal production in South Africa increased by 10% to 4.6 Mt due to the ramp-up of Zibulo and the industrial action that affected operations in Q3 2011. This was partly offset by the planned closure of high-cost sections at Goedehoop and Greenside, as well as a pit closure at Kleinkopje. Cerrejón production was in line, despite the rescheduling of the annual shiploader maintenance carried out in the quarter.

COPPER

Copper		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Copper	t	157,300	139,900	12%	161,100	(2%)	486,800	429,000	13%

Copper - Production increased by 12% to 157,300 tonnes. Los Bronces production was 84% higher, despite continued lower ore grades and recoveries, with the Los Bronces expansion project contributing 48,900 tonnes. The new processing plant continues to ramp up and achieved design throughput capacity in August and September 2012. Production at Los Bronces is expected to continue to be impacted by higher waste stripping and lower ore grades.

Production at Collahuasi decreased by 40%. Output had been expected to decrease as a consequence of planned lower ore grades from current phases in the mine plan, but this was compounded by a combination of lower recoveries, an extended ball mill outage and a number of other plant reliability challenges. The joint shareholder intervention initiated in July 2012 to address these issues is expected to start delivering improvements from Q4 2012 onwards.

NICKEL

Nickel		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Nickel	t	9,000	6,500	38%	10,900	(17%)	31,900	19,200	66%

Nickel - Production increased by 38% to 9,000 tonnes due to the ramp-up of Barro Alto, partially offset by lower production at Loma de Níquel, which stopped production in September 2012.

Barro Alto delivered 4,700 tonnes in the quarter and 16,700 tonnes year to date. Production in the quarter was impacted by the planned shut-down of both kilns. On 15 October, Kiln 1's electric furnace experienced a sidewall collapse, which will impact the production outlook. Barro Alto remains in ramp-up phase and earnings therefore are capitalised.

Loma de Níquel's three remaining concessions (after cancellation of 13 other concessions) are due to expire on 10 November 2012 and, if there is no development in this situation in the coming weeks, then there will be no further production contribution from this operation. Anglo American is continuing to engage with stakeholders in Venezuela.

PLATINUM

Platinum		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Refined
Platinum	000 oz	649	647	-	623	4%	1,675	1,820	(8%)
Palladium	000 oz	392	376	4%	356	10%	983	1,038	(5%)
Rhodium	000 oz	91	75	20%	75	21%	220	241	(9%)
Copper	t	2,700	3,100	(13%)	3,300	(18%)	8,900	9,900	(10%)
Nickel	t	3,700	4,900	(24%)	5,400	(31%)	13,800	15,200	(9%)
Gold	000 oz	39	17	125%	24	60%	87	77	12%
Equivalent
Platinum	000 oz	626	667	(6%)	584	7%	1,803	1,827	(1%)

Platinum - Equivalent refined platinum production decreased by 6% owing to lower production at Union North and South, Mogalakwena, Tumela and Siphumelele mines. Production at Union North and South mines declined by 23% and 26% respectively due to lower grades caused by a decline in Merensky ore mined, a fall of ground and a shortage of stopeable face. Mogalakwena production was lower as a result of the breakdown of the primary crusher at the North concentrator and lower head grade.

Platinum production at Rustenburg (Bathopele, Khuseleka, Khomanani, Siphumelele and Thembelani mines) was 148,100 ounces for the quarter, a decrease of 0.3%, and up 2% quarter on quarter despite the loss of 42,000 ounces of platinum due to illegal strike action in July and September.

Anglo American Platinum has been experiencing illegal industrial strike action at its Rustenburg, Union and Amandelbult mining operations since 18 September 2012. This followed an initial safety suspension on 12 September. The strike was initially contained to the Rustenburg mining operations, but has since commenced at Union (North and South) and Amandelbult (Tumela and Dishaba) operations as of the first week of October.

As a result of the illegal industrial action and the initial safety suspension, equivalent refined platinum production losses, including from joint ventures and associates, amounted to 42,000 ounces in Q3 2012 and an additional 96,300 ounces from 1 to 24 October 2012. The production losses have also resulted in an additional 8% increase in unit costs for Q3 2012, due to the retained fixed cost base. The average loss of platinum production is 4,500 ounces per day (3,800 ounces for own mines). As a result, and dependent on the resolution of the illegal strike action, the expected refined platinum production for 2012 is reduced to between 2.2 and 2.4 million ounces. Given the retained fixed cost base, and as result of the reduction in production, the 2012 unit cost is expected to be R15,500 to R16,000 per equivalent refined platinum ounce. In line with the lower production levels and in light of continued adverse market conditions, planned total capital expenditure for 2012 has been reduced further to R6.5 billion.

Palladium, Rhodium and Nickel - Refined production of palladium and rhodium increased by 4% and 20% respectively, while nickel decreased by 24% due to technical challenges in the new tank house at the base metal refinery. Palladium and rhodium variances are a result of a different source mix from operations and different pipeline processing times for each metal.

DIAMONDS

Diamonds		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Diamonds	000 carats	6,375	9,305	(31%)	7,241	(12%)	19,824	24,839	(20%)

Diamonds - Production decreased by 31% to 6.4 million carats, largely in response to market conditions and the Jwaneng slope failure in June 2012 which temporarily prevented access to the main ore body. Market conditions reflect a combination of a softening in the polished diamond market and a credit constrained rough diamond market. The current operational focus is on maintenance, waste stripping and safety improvements, ensuring the mines are well positioned to respond to an increase in demand once market conditions improve.

OTHER MINERALS & INDUSTRIAL

Other Mining and Industrial		Q3 2012	Q3 2011	Q3 2012 vs. Q3 2011	Q2 2012	Q3 2012 vs. Q2 2012	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Phosphates	t	292,300	284,500	3%	271,500	8%	810,700	786,000	3%
Niobium	t	1,100	1,100	-	1,200	(8%)	3,400	2,900	17%
Amapá	000 t	1,530	1,230	25%	1,470	4%	4,570	3,550	29%

Phosphates - Production increased by 3% to 292,300 tonnes due to increased capacity of the plants through business improvements and change in product mix.

Niobium - Production was in line, though marginally lower than Q2 2012, owing to the lower quality of ore feed, which is expected to continue until the end of the year.

Amapá - Production increased by 25% to 1.5 Mt, primarily due to higher mass recovery in the beneficiation plant as a result of increased plant stability. Output was 4% higher than Q2 2012, principally driven by increased productivity following improved weather conditions from August 2012 onwards.

FINANCING

During the quarter, the Group issued corporate bonds with a US dollar equivalent value of $2.3 billion in the US and European markets. These comprised:

·      $750 million 2.625% senior notes due 2017

·      $600 million 4.125% senior notes due 2022

·      €750 million 2.500% guaranteed notes due 2018 issued under the Euro Medium Term Note (EMTN) programme

EXPLORATION & EVALUATION

Exploration and evaluation operating expenditure for the nine months ended 30 September 2012 was $526 million, 47% higher than the same period of 2011.

Exploration expenditure was $136 million for the nine months ended 30 September 2012 was 62% higher than the same period of 2011. Expenditure was primarily focused on opportunities in Australia, Brazil, Canada, Chile, Finland, Peru and several countries in Africa.

Evaluation expenditure was $390 million for the nine months ended 30 September 2012 reflected ongoing project and technical studies, particularly in the Metallurgical Coal, Copper and Iron Ore businesses. Metallurgical Coal expenditure was concentrated primarily at the Moranbah South and Grosvenor 2 brownfield projects in Australia. The Copper business' evaluation expenditure was focused on Michiquillay (Peru) and Pebble (Alaska) projects.

Anglo American recognises the longer term value of exploration and evaluation activities. However, in light of the current macro-economic environment and following recent successes, expenditure is being moderated in 2012 and 2013.

SIGNIFICANT TRANSACTIONS

On 16 August 2012, Anglo American completed the acquisition of a 40% shareholding in De Beers from CHL Holdings Limited (representing the Oppenheimer family interests), thereby increasing Anglo American's shareholding in De Beers to 85%. Under the terms of the November 2011 agreement between Anglo American and CHL, Anglo American paid a total cash consideration of $5.2 billion, comprising the agreed purchase price of $5.1 billion and a number of adjustments as provided for under the agreement.

On 24 August 2012, Anglo American completed the sale of a 25.4% shareholding in Anglo American Sur to a Codelco and Mitsui joint venture company controlled by Codelco for a combined total cash consideration of $2.0 billion.

PRODUCTION SUMMARY

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

						% Change				% Change
	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q3 2012 vs. Q2 2012	Q3 2012 vs. Q3 2011	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Iron Ore & Manganese segment (tonnes)
Kumba Iron Ore
Lump	7,689,900	7,045,500	6,294,100	6,914,800	6,745,900	9%	14%	21,029,500	18,530,300	13%
Fines	4,807,000	4,403,700	3,812,400	4,245,400	4,207,600	9%	14%	13,023,100	11,577,100	12%
Total Kumba production	12,496,900	11,449,200	10,106,500	11,160,200	10,953,500	9%	14%	34,052,600	30,107,400	13%
Kumba Sales volumes
RSA export iron ore	9,958,600	10,597,600	10,121,200	9,600,400	9,167,100	(6%)	9%	30,677,400	27,530,700	11%
RSA domestic iron ore	1,162,400	1,368,000	1,319,500	1,241,800	1,537,700	(15%)	(24%)	3,849,900	5,199,300	(26%)
Samancor
Manganese ore (1)	858,400	826,400	816,200	722,500	807,600	4%	6%	2,501,000	2,065,000	21%
Manganese alloys (1) (2)	52,000	30,200	55,000	78,000	77,600	72%	(33%)	137,000	223,000	(38%)
Samancor sales volumes
Manganese ore	702,400	883,200	794,400	691,600	782,000	(20%)	(10%)	2,380,000	2,255,000	6%
Manganese alloys	48,000	50,400	71,600	78,400	74,400	(5%)	(35%)	170,000	236,000	(28%)
Metallurgical Coal segment (tonnes) (3)
Export coking coal	3,095,300	3,234,300	2,145,000	2,702,900	2,761,800	(4%)	12%	8,474,600	7,523,800	13%
Export PCI	1,400,400	1,611,300	1,598,000	1,357,700	1,253,200	(13%)	12%	4,609,700	2,605,300	77%
Total export metallurgical (4)	4,495,700	4,845,600	3,743,000	4,060,600	4,015,000	(7%)	12%	13,084,300	10,129,100	29%
Thermal	3,398,900	3,286,300	2,570,600	3,358,700	3,978,000	3%	(15%)	9,255,800	10,067,800	(8%)
Weighted average achieved FOB prices (US$/t)
Export metallurgical	188	192	190	234	267	(2%)	(30%)	190	257	(26%)
Export thermal	96	94	113	103	98	2%	(2%)	100	101	-
Domestic thermal	36	35	39	34	35	3%	3%	36	35	6%
Sales volumes
Export metallurgical (5)	4,096,800	4,651,500	3,950,700	4,010,900	3,720,500	(12%)	10%	12,699,000	9,972,100	27%
Export thermal	1,776,300	1,525,400	1,222,100	1,849,900	1,877,500	16%	(5%)	4,523,800	4,424,500	2%
Domestic thermal	1,817,500	1,698,300	1,484,300	1,853,300	1,843,100	7%	(1%)	5,000,100	5,601,700	(11%)
Production by region: Australia
Export metallurgical	4,072,700	4,490,900	3,510,100	3,805,000	3,749,300	(9%)	9%	12,073,700	9,448,300	28%
Thermal	3,398,900	3,286,300	2,570,600	3,358,700	3,978,000	3%	(15%)	9,255,800	10,067,800	(8%)
Total Australia	7,471,600	7,777,200	6,080,700	7,163,700	7,727,300	(4%)	(3%)	21,329,500	19,516,100	9%
Canada
Export Metallurgical	423,000	354,700	232,900	255,600	265,700	19%	59%	1,010,600	680,800	48%

						% Change				% Change
	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q3 2012 vs. Q2 2012	Q3 2012 vs. Q3 2011	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Thermal Coal segment (tonnes) (6)
RSA export thermal	4,555,300	4,223,500	3,694,200	4,455,900	4,145,500	8%	10%	12,473,000	12,090,600	3%
Colombia export thermal	2,829,400	3,104,700	2,953,000	2,752,700	2,851,800	(9%)	(1%)	8,887,100	7,999,000	11%
RSA domestic - Eskom	9,056,900	8,326,200	7,762,700	9,487,000	8,751,400	9%	3%	25,145,800	25,809,000	(3%)
RSA domestic - other	1,530,500	1,560,900	1,533,200	1,390,100	1,052,900	(2%)	45%	4,624,600	3,451,500	34%
RSA domestic - metallurgical	-	15,700	58,400	84,500	75,600	(100%)	(100%)	74,100	238,900	(69%)
Weighted average achieved FOB prices (US$/t)
RSA export thermal	87	93	104	107	115	(6%)	(24%)	95	118	(19%)
Colombia export thermal	86	90	95	98	103	(4%)	(17%)	90	102	(12%)
RSA domestic thermal	20	21	22	19	22	(5%)	(9%)	21	22	(5%)
Sales volumes
RSA export thermal	4,400,800	3,720,100	4,518,700	5,146,400	4,605,000	18%	(4%)	12,639,600	11,385,700	11%
Colombia export thermal	2,630,300	2,959,600	2,634,000	2,783,700	2,900,600	(11%)	(9%)	8,223,900	7,900,900	4%
RSA domestic thermal	10,468,500	9,909,500	9,447,500	10,842,600	9,901,600	6%	6%	29,825,500	29,293,800	2%
Production by region: South Africa
Export thermal	4,555,300	4,223,500	3,694,200	4,455,900	4,145,500	8%	10%	12,473,000	12,090,600	3%
RSA domestic - Eskom	9,056,900	8,326,200	7,762,700	9,487,000	8,751,400	9%	3%	25,145,800	25,809,000	(3%)
RSA domestic - other	1,530,500	1,560,900	1,533,200	1,390,100	1,052,900	(2%)	45%	4,624,600	3,451,500	34%
RSA domestic - metallurgical	-	15,700	58,400	84,500	75,600	(100%)	(100%)	74,100	238,900	(69%)
Total South Africa	15,142,700	14,126,300	13,048,500	15,417,500	14,025,400	7%	8%	42,317,500	41,590,000	2%
Colombia
Export Thermal	2,829,400	3,104,700	2,953,000	2,752,700	2,851,800	(9%)	(1%)	8,887,100	7,999,000	11%
Coal production by commodity (tonnes)
Metallurgical	4,495,700	4,861,300	3,801,400	4,145,100	4,090,600	(8%)	10%	13,158,400	10,368,000	27%
Thermal excl. RSA domestic	10,783,600	10,614,500	9,217,800	10,567,300	10,975,300	2%	(2%)	30,615,900	30,157,400	2%
RSA domestic thermal	10,587,400	9,887,100	9,295,900	10,877,100	9,804,300	7%	8%	29,770,400	29,260,500	2%

						% Change				% Change
	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q3 2012 vs. Q2 2012	Q3 2012 vs. Q3 2011	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Copper segment (tonnes) (7)
Collahuasi total production	62,900	68,700	76,700	114,500	104,300	(8%)	(40%)	208,300	338,800	(39%)
Collahuasi attributable production (8)	27,700	30,200	33,700	50,500	45,900	(8%)	(40%)	91,600	149,100	(39%)
Avg sulphide ore grade (%)	0.7	0.8	0.8	1.0	1.0	(13%)	(30%)	0.8	1.0	(20%)
Los Bronces mine (9)	87,200	89,800	93,200	72,600	47,400	(3%)	84%	270,200	149,200	81%
Avg sulphide ore grade LB (%)	0.8	0.9	0.9	0.9	0.9	(11%)	(11%)	0.8	0.9	(11%)
Avg sulphide ore grade LBDP (%)	0.8	0.8	0.9	0.7	n/a	-	n/a	0.8	n/a	n/a
El Soldado mine (9)	12,500	12,700	13,400	15,400	13,600	(2%)	(8%)	38,600	31,400	23%
Avg sulphide ore grade (%)	0.7	0.8	0.9	0.9	0.9	(13%)	(22%)	0.8	0.8	-
Mantos Blancos mine	14,100	13,300	12,900	17,700	18,300	6%	(23%)	40,300	54,400	(26%)
Avg sulphide ore grade (%)	0.7	0.7	0.6	0.8	0.9	-	(22%)	0.7	1.0	(30%)
Mantoverde mine	15,800	15,100	15,200	13,800	14,700	5%	7%	46,100	44,900	3%
Avg oxide ore grade (%)	0.7	0.7	0.6	0.6	0.6	-	17%	0.6	0.6	-
Total copper production	192,500	199,600	211,400	234,000	198,300	(4%)	(3%)	603,500	618,700	(2%)
Attributable copper production (10)	157,300	161,100	168,400	170,000	139,900	(2%)	12%	486,800	429,000	13%
Attributable sales volumes	150,200	160,200	155,200	177,000	154,000	(6%)	(2%)	465,600	431,300	8%
Nickel segment (tonnes) (11)
Codemin	2,500	2,500	2,100	2,500	2,400	-	4%	7,100	6,900	3%
Loma de Niquel	1,800	3,000	3,300	3,300	3,000	(40%)	(40%)	8,100	10,100	(20%)
Barro Alto	4,700	5,400	6,600	4,100	1,100	(13%)	327%	16,700	2,200	659%
Total nickel production	9,000	10,900	12,000	9,900	6,500	(17%)	38%	31,900	19,200	66%
Sales volumes	7,600	12,600	10,800	6,400	7,000	(40%)	9%	31,000	19,100	62%
Platinum segment
Refined production
Platinum (troy oz)	649,000	623,000	402,800	710,000	646,500	4%	-	1,674,800	1,820,100	(8%)
Palladium (troy oz)	392,100	355,500	35,000	392,700	376,000	10%	4%	982,600	1,038,000	(5%)
Rhodium (troy oz)	90,500	75,100	53,900	96,800	75,200	21%	20%	219,500	240,800	(9%)
Copper (tonnes)	2,700	3,300	2,900	2,900	3,100	(18%)	(13%)	8,900	9,900	(10%)
Nickel (tonnes)	3,700	5,400	4,700	5,100	4,900	(31%)	(24%)	13,800	15,200	(9%)
Gold (troy oz)	38,500	24,100	24,000	28,000	17,100	60%	125%	86,600	77,100	12%
Equivalent refined
Platinum (troy oz)	626,300	583,600	93,200	583,200	666,800	7%	(6%)	1,803,100	1,826,900	(1%)
4E Built-up head grade (g/tonne milled)	3.32	3.09	3.20	3.27	3.35	7%	(1%)	3.20	3.23	(1%)
Diamonds segment (diamonds recovered - carats) (12)
Debswana	4,385,000	5,345,000	4,949,000	4,643,000	6,927,000	(18%)	(37%)	14,679,000	18,247,000	(20%)
Namdeb	419,000	460,000	318,000	429,000	309,000	(9%)	36%	1,197,000	908,000	32%
De Beers Consolidated Mines	1,247,000	964,000	674,000	913,000	1,732,000	29%	(28%)	2,885,000	4,530,000	(36%)
De Beers Canada	324,000	472,000	267,000	506,000	337,000	(31%)	(4%)	1,063,000	1,154,000	(8%)
Total diamonds production	6,375,000	7,241,000	6,208,000	6,491,000	9,305,000	(12%)	(31%)	19,824,000	24,839,000	(20%)

						% Change				% Change
	Q3 2012	Q2 2012	Q1 2012	Q4 2011	Q3 2011	Q3 2012 vs. Q2 2012	Q3 2012 vs. Q3 2011	YTD 2012	YTD 2011	YTD 2012 vs. YTD 2011
Other Mining and Industrial segment (tonnes) (13)
Phosphates
Copebrás	292,300	271,500	246,900	274,900	284,500	8%	3%	810,700	786,000	3%
Niobium
Catalão	1,100	1,200	1,100	1,000	1,100	(8%)	-	3,400	2,900	17%
Amapá (14)
Sinter feed	519,300	536,700	508,000	404,900	354,500	(3%)	46%	1,564,000	996,100	57%
Pellet feed	607,800	514,800	560,300	495,300	514,000	18%	18%	1,682,900	1,453,000	16%
Spiral concentrates	407,200	416,500	503,700	366,900	360,900	(2%)	13%	1,327,400	1,105,300	20%
Total Amapá production	1,534,300	1,468,000	1,572,000	1,267,100	1,229,400	5%	25%	4,574,300	3.554.400	29%
Amapá sales volumes	1,422,700	1,278,800	1,443,500	1,374,000	1,452,000	11%	(2%)	4,145,000	3,425,400	21%

(1)              Saleable production

(2)              Production includes medium carbon ferro-manganese

(3)              Includes Peace River Coal, which was reclassified from Other Mining and Industrial to Metallurgical Coal in 2011 to align with internal management reporting. Comparatives have been reclassified to align with current presentation

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

(5)              Includes both hard coking coal and PCI product sales volumes

(6)              Includes capitalised Zibulo sales of 1,580,700 (export) and 632,200 (domestic) tonnes for the nine months ended 30 September 2012 (Q3 2011: 701,700 (export) and 276,400 (domestic) tonnes)

(7)              Excludes Platinum copper production

(8)              Anglo American share of attributable production is 44% of total production

(9)              Anglo American previously held 74.5% of AA Sur but, as of 24 August 2012, now holds 50.06%. Production is stated at 100% as Anglo American continues to consolidate AA Sur

(10)            Difference between total copper production and attributable copper production is Anglo American's 44% interest in Collahuasi

(11)            Excludes Anglo American Platinum's nickel production

(12)            On 16 August 2012 Anglo American completed its acquisition of an additional 40% interest in De Beers increasing Anglo American's total shareholding to 85%. Production data is disclosed on a 100% basis. Post completion of the acquisition, De Beers Consolidated Mines and De Beers Canada are fully consolidated subsidiaries and Debswana and Namdeb are joint ventures proportionately consolidated at 19.2% (post implied taxes) and 50% respectively. The Diamond Trading Company and Diamdel sell a significant portion of total production on behalf of operations based on contractual agreements in place

(13)            Excludes Tarmac and Scaw Metals

(14)            Amapá was reclassified from Iron Ore Brazil to Other Mining and Industrial in H1 2012 to align with internal management reporting. Comparatives have been reclassified to align with current presentation

Note:

Production figures are sometimes more precise than the rounded numbers shown in this report. The percentage change will reflect the percentage change using the unrounded production figures shown in 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 Tel: [phone]		UK Leng Lau Tel: [phone]
		Caroline Crampton Tel: [phone]
		Sarah McNally 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. Anglo American's portfolio of mining businesses spans bulk commodities - iron ore and manganese, metallurgical coal and thermal coal; base metals - copper and nickel; and precious metals and minerals - in which it is a global leader in both platinum and diamonds.  Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company's mining operations, extensive 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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