Q3 2014 Interim Management Statement

RNS Number : 0627V

Anglo American PLC

23 October 2014

 



23 October 2014

Anglo American plc

Interim Management Statement for the third quarter ended 30 September 2014

Overview

	Q3 2014	Q3 2013	% vs. Q3 2013
Iron ore (Mt)	13.0	9.5	37%
Export metallurgical coal (Mt)	5.1	4.9	4%
Export thermal coal (Mt)	9.0	9.4	(4)%
Copper (t)(1)	176,900	207,300	(15)%
Nickel (t)(2)	10,700	9,500	13%
Platinum (equivalent refined) (koz)(3)	533	623	(14)%
Diamonds (Mct)(4)	8.2	7.7	6%

·       Kumba Iron Ore production increased by 37% to 13 million tonnes following implementation of the production recovery plan at Sishen and record output at Kolomela. Waste removal at Sishen continues to be the operational focus

·       Export metallurgical coal production increased by 4% to 5.1 million tonnes. Moranbah recovered from the geotechnical issues reported in Q2 2014

·       Export thermal coal production decreased by 4% to 9.0 million tonnes owing to adverse weather conditions in Colombia, partly offset by operational improvements in South Africa

·       Copper production decreased by 15% to 176,900 tonnes, with expected grade declines at
Los Bronces and Collahuasi being partially offset by improved throughput at Los Bronces

·       Nickel production increased by 13% to 10,700 tonnes driven by continued improved operational stability at Barro Alto prior to the planned rebuild of the two furnaces, with the first commencing at the beginning of October

·       Platinum ramp up at strike-affected mines (Rustenburg, Amandelbult and Union mines) was completed, with normal production resumed by September. Platinum equivalent refined production decreased by 14% to 532,800 ounces as a result of the post-strike ramp-up and planned lower production at both Rustenburg and Union following the 2013 restructuring

·       Diamond production increased by 6% to 8.2 million carats, with higher production at Debswana due to a strong performance at Jwaneng. This was partially offset by lower production at operations in South Africa and Canada

(1)              Copper production from the Copper business unit

(2)              Nickel production from the Nickel business unit

(3)              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

(4)              De Beers production on 100% basis

IRON ORE AND MANGANESE

Iron Ore and Manganese		Q3 2014		Q3 2013		Q3 2014 vs. Q3 2013		Q2 2014		Q3 2014 vs. Q2 2014		YTD 2014		YTD 2013		YTD 2014 vs. YTD 2013
Iron ore	000 t		12,972		9,474		37%		11,465		13%		35,765		31,087		15%
Manganese ore	000 t		866		788		10%		868		-		2,427		2,455		(1)%
Manganese alloys	000 t		68		55		25%		73		(6)%		206		185		11%

Iron Ore - Production from Kumba Iron Ore increased by 37% to 13 million tonnes, due to implementation of the redesign plan at Sishen to alleviate current pit constraints. Sishen production was 9.3 million tonnes for the quarter, an increase of 44% and 11% compared with the previous quarter. Waste removal increased by 14% and by 4% compared with the previous quarter. Waste removal run rates are currently meeting targets. Additional contractor capacity has been secured and the waste backlog from H1 2014 is expected to be caught up during Q4 2014 and Q1 2015. Waste mining at Sishen is anticipated to be between 190 million tonnes and 200 million tonnes for the year.

Anglo American Operating Model went live at Sishen in August. The aim of the model is to reduce variation and improve stability through focus on planning and execution effectiveness within the operating environment to ensure expected outputs are improved, delivered and sustainable.

Kolomela mine increased production by 20% to 3.4 million tonnes due to a continued strong operational performance.

Export sales decreased by 4% to 9.1 million tonnes following annual Transnet maintenance shutdown in August and a slow start up thereafter. The logistics system is back to operating at normal run rates. Domestic sales decreased by 14% to 1.1 million tonnes owing to reduced offtake by ArcelorMittal S.A.

Total finished product stocks increased to 6.5 million tonnes as at 30 September 2014 compared with 3.6 million tonnes at 30 June 2014 and 2.4 million tonnes at 30 September 2013, due to production ramp-up and logistics constraints mentioned earlier.

Full-year production guidance for iron ore has been increased to 45 million - 46 million tonnes (previously 44 million - 46 million tonnes).

Manganese ore - Manganese ore production increased 10% driven by improved ore recovery and increased plant availability, in South Africa.

Manganese alloy - Manganese alloy production increased by 25% owing to improved smelter stability at Metalloys and higher furnace availability, in Australia.

Iron Ore Brazil - Work on the Minas-Rio project continues, with significant progress made to deliver FOOS (first ore on ship) within the $8.8 billion budget. Commissioning and testing activities are ongoing, ore stockpiles are being built at the Port of Açu and first ore loading has begun.

COAL

Coal		Q3 2014		Q3 2013	Q3 2014 vs. Q3 2013		Q2 2014	Q3 2014 vs. Q2 2014	YTD 2014		YTD 2013		YTD 2014 vs.   YTD 2013
Australia & Canada
Metallurgical - Export	000 t	5,090	4,912		4%	4,831		5%	15,974	13,922		15%
Thermal - Export	000 t	1,575	1,672		(6)%	958		64%	3,302	4,679		(29)%
Thermal - Domestic	000 t	2,074	1,752		18%	1,846		12%	5,148	4,551		13%
South Africa
Thermal - Export	000 t	5,008	4,505		11%	4,274		17%	13,430	12,429		8%
Thermal - Domestic (Eskom)	000 t	8,000	9,053		(12)%	8,147		(2)%	23,554	25,950		(9)%
Thermal - Domestic  (Non-Eskom)	000 t	1,863	1,665		12%	1,611		16%	4,834	4,758		2%
Colombia
Thermal - Export	000 t	2,369	3,185		(26)%	2,908		(19)%	8,225	7,711		7%

Australia and Canada - Export metallurgical coal production increased by 4% to 5.1 million tonnes. Grasstree completed a planned longwall move and Moranbah recovered from geotechnical issues reported last quarter.

Australian export thermal coal production decreased by 6% to 1.6 million tonnes owing to lower production from Drayton as the mine nears the end of its life.

Early September, Anglo American announced that Peace River Coal operations in Canada would be placed on care and maintenance from the end of 2014 owing to weak market conditions.

Construction of the greenfield Grosvenor metallurgical coal project in Queensland is progressing on schedule with first development coal cut in September. Longwall production remains on schedule to commence at the end of 2016.

Full-year production guidance for export metallurgical coking coal has increased to

20 million - 21 million tonnes (previously ~20 million tonnes).

South Africa - Export thermal coal production increased by 11% to 5.0 million tonnes, with increases across the majority of export operations, including export product quality optimisation, productivity improvements at Greenside and favourable mining conditions at Zibulo.

Eskom production was 12% lower at 8.0 million tonnes owing to the New Denmark longwall move and municipal protest action temporarily impacting production at Kriel. Domestic
non-Eskom production increased by 12% to 1.9 million tonnes as a result of higher production at Zibulo.

Colombia - Cerrejón's production decreased by 26% to 2.4 million tonnes, as a result of heavy rainfall in August and September.

Full-year production guidance remains unchanged for export thermal coal from South Africa and Cerrejón operations at 28 million - 29 million tonnes.

BASE METALS AND MINERALS - COPPER

Copper		Q3 2014		Q3 2013		Q3 2014 vs. Q3 2013		Q2 2014		Q3 2014 vs. Q2 2014		YTD 2014		YTD 2013		YTD 2014 vs.   YTD 2013
Copper	t		176,900		207,300		(15)%		194,400		(9)%		573,300		560,600		2%

Copper - Copper production decreased by 15% to 176,900 tonnes.

Production from Los Bronces decreased by 10% to 95,700 tonnes, with the continued throughput improvements at both plants being more than offset by the expected lower grades. Lower grades are also expected in the fourth quarter, as mining moves to the southern areas of the Donoso pit.

At Collahuasi, production decreased by 24% to 48,500 tonnes. This was attributable to expected lower grades, as well as reduced throughput due to planned maintenance stoppages.

El Soldado's production decreased by 29% to 6,700 tonnes following expected lower grades arising from the previously reported intersection with a geological fault.

Production from Mantos Blancos and Mantoverde decreased by a combined 6% to a total of 26,000 tonnes, with both operations experiencing a decline in grades, as well as lower recoveries at the Mantos Blancos dump leaching operations.

Full year production guidance for copper has increased to 730,000 - 745,000 tonnes

(previously 725,000 - 740,000 tonnes).

BASE METALS AND MINERALS - NICKEL, NIOBIUM AND PHOSPHATES

NICKEL

Nickel			Q3 2014		Q3 2013		Q3 2014 vs. Q3 2013		Q2 2014		Q3 2014 vs. Q2 2014		YTD 2014		YTD 2013		YTD 2014 vs.    YTD 2013
Nickel	t	10,700		9,500		13%		10,600		1%		30,500		24,200		26%

Nickel - Nickel production increased by 13% to 10,700 tonnes, driven by continued improved operational stability at Barro Alto prior to the planned rebuild of the two furnaces.

Production from Barro Alto increased by 17% to 8,300 tonnes, reflecting this continued operational stability as well as the impact of the Q3 2013 unplanned stoppages. The line 2 furnace rebuild is under way and is scheduled for completion in Q2 2015.

Production from Codemin remained broadly flat at 2,400 tonnes.

Full-year production guidance for nickel has increased to 35,000 - 37,000 tonnes

(previously 32,000 - 35,000 tonnes).

NIOBIUM

Niobium			Q3 2014		Q3 2013		Q3 2014 vs. Q3 2013		Q2 2014		Q3 2014 vs. Q2 2014		YTD 2014		YTD 2013		YTD 2014 vs.   YTD 2013
Niobium	t	1,200		1,100		9%		1,100		9%		3,400		3,300		3%

Niobium - Production of niobium increased 9% to 1,200 tonnes.

Boa Vista Fresh Rock project construction has been completed and commissioning is well advanced. First production is expected during Q4 2014.

PHOSPHATES

Phosphates		Q3 2014	Q3 2013	Q3 2014 vs. Q3 2013	Q2 2014	Q3 2014 vs. Q2 2014	YTD 2014	YTD 2013	YTD 2014 vs.   YTD 2013
Phosphates
Concentrate	t	362,700	355,000	2%	349,500	4%	1,060,100	1,052,900	1%
Phosphoric Acid	t	81,300	79,500	2%	81,300	-	216,400	239,100	(9)%
Fertiliser	t	284,700	326,300	(13)%	275,700	3%	827,600	900,000	(8)%
Dicalcium phosphate (DCP)	t	44,100	43,100	2%	43,600	1%	119,300	121,000	(1)%

Phosphates - Concentrate, phosphoric acid and dicalcium phosphate were broadly flat. Fertiliser production decreased by 13% as a result of planned plant maintenance, operational constraints and product mix changes to optimise margins.

PLATINUM

Platinum		Q3 2014	Q3 2013	Q3 2014 vs. Q3 2013	Q2 2014	Q3 2014 vs. Q2 2014	YTD 2014	YTD 2013	YTD 2014 vs.   YTD 2013
Refined
Platinum	000 oz	460	666	(31)%	421	9%	1,316	1,687	(22)%
Palladium	000 oz	316	369	(14)%	295	7%	868	953	(9)%
Rhodium	000 oz	48	85	(43)%	49	(1)%	158	211	(25)%
Copper(1) - Refined	t	2,800	2,600	8%	3,900	(28)%	9,900	6,500	52%
Copper(1) - Matte	t	1,300	300	333%	2,300	(43)%	4,800	4,400	9%
Nickel(1) - Refined	t	5,200	4,900	6%	5,600	(7)%	15,700	11,600	35%
Nickel(1) - Matte	t	1,800	300	500%	2,700	(33)%	5,900	5,700	4%
Gold	000 oz	15	34	(57)%	27	(45)%	67	73	(9)%
Equivalent refined
Platinum	000 oz	533	623	(14)%	358	49%	1,248	1,800	(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 Q2 2013 from 2012 and 2013 production stockpile

Platinum - Equivalent refined platinum production decreased by 14% to 532,800 ounces.  The principal reasons for this were the strike-affected mines being in ramp-up phase following industrial action which concluded on 24 June, planned lower production from Rustenburg and Union following the restructuring in August 2013, and two fatal incidents at Thembelani and Dishaba in August and September respectively.

In the quarter platinum ounces lost due to the post-strike ramp-up was 92,000 ounces (total lost production during the industrial action was 424,000 ounces, with a further 108,000 ounces lost during the ramp-up of operations). The strike affected mines had completed ramp-up to normal production levels by September.

The industrial action did not affect production at the Mogalakwena and Unki mines, nor at the majority of the joint operations and associates. Mogalakwena mine's production increased by 5% to 86,900 ounces, due to higher achieved head grade and increased concentrator throughput, supported by mining productivity improvement programmes. Unki production remained constant.

The joint venture and associate portfolio increased platinum production by 2% to 204,000 ounces. 

Refined platinum production decreased by 31% to 460,000 ounces, due to lower mined supply and the build-up in pipeline inventory following the drawdown on inventories during the first half of 2014.

Full-year production guidance for refined platinum has decreased to 1.75 million - 1.8 million ounces whilst sales guidance remains unchanged at 2.0 million - 2.1 million ounces.

As part of the on-going repositioning of Anglo American Platinum, significant progress has been made in the execution of the Union mine optimisation plan. Preparations for the sale of Union mine and concentrator have been finalised and the sale process has commenced.

Palladium, Rhodium and Nickel - Refined palladium production decreased by 14%, while refined production of rhodium decreased by 43%, reflecting the change in mix of metals during the ramp-up. Refined nickel production increased by 6% to 5,200 tonnes. Nickel and copper matte production in Q3 2014 includes previously stockpiled nickel and copper matte delivered to third parties for processing.

DIAMONDS

Diamonds (100% basis)		Q3 2014		Q3 2013		Q3 2014 vs. Q3 2013		Q2 2014		Q3 2014 vs. Q2 2014		YTD 2014		YTD 2013	YTD 2014 vs.   YTD 2013
Diamonds	000 carats	8,193	7,732		6%		8,515		(4)%		24,239		22,027		10%

De Beers - Diamond production increased by 6% to 8.2 million carats. The increase was primarily due to a strong performance at Jwaneng, where higher grade material was accessed.  This was partially offset by slightly lower production across operations in Canada and South Africa, including Voorspoed, where a focus on waste movement to clear an area of unstable ground resulted in lower output.  In addition, a planned plant upgrade at Venetia and a 19-day strike at Namdeb Land negatively impacted production volumes.

The Gahcho Kué project in Canada is progressing successfully through permitting and licensing, recently securing the Land Use Permit and Ministerial approval of the Water Licence. First production is expected in H2 2016, with full commercial production expected in 2017.

Full-year production guidance for diamonds has increased to ~32 million carats

(previously 31 - 32 million carats).

EXPLORATION AND EVALUATION

Exploration and Evaluation expenditure for Q3 2014 totalled $106 million, a decrease of 19%. Exploration expenditure in Q3 2014 was $43 million, a decrease of $7 million compared with Q3 2013, mainly attributable to metallurgical coal and diamonds. Evaluation expenditure for the quarter was $63 million, down by 21%. It was primarily focused on the Copper and Iron Ore businesses.

SIGNIFICANT TRANSACTIONS

As disclosed in the 30 June 2014 Interim Press Release as an event occurring after the period end the Group reached a binding agreement on 24 July 2014 to sell its 50% ownership interest in Lafarge Tarmac Holdings Limited (Lafarge Tarmac) (included in the Corporate and other segment) to Lafarge SA (Lafarge) for a minimum value of £885 million (approximately $1.5 billion) in cash, on a debt and cash free basis and subject to other customary working capital adjustments. The sale will be subject to a number of conditions, including the completion of the proposed merger of Lafarge and Holcim Limited, the divestment of Lafarge Tarmac being accepted as a suitable remedy for the UK market in respect of the merger, and approval of this sale transaction by the necessary regulators.

In the event that a subsequent divestment of Lafarge Tarmac is agreed within 18 months of this sale being completed, then Anglo American will participate in a minority proportion of the upside beyond a small premium to the terms of this transaction.

NOTE

This Interim Management Statement for the third quarter ended 30 September 2014 is unaudited. Financial Results for the year to 31 December 2014 will be announced on 13 February 2015. 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.

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Kumba Iron Ore
Lump	8,235,700	7,480,100	7,505,000	7,369,500	5,990,000	10%	37%	23,220,800	19,717,100	18%
Fines	4,736,400	3,984,900	3,822,800	3,916,200	3,484,600	19%	36%	12,544,100	11,370,300	10%
Total Kumba production	12,972,100	11,465,000	11,327,800	11,285,700	9,474,600	13%	37%	35,764,900	31,087,400	15%
Sishen	9,260,200	8,336,600	8,657,500	8,395,000	6,429,100	11%	44%	26,254,300	22,543,400	16%
Kolomela	3,379,000	2,948,400	2,512,900	2,739,500	2,806,100	15%	20%	8,840,300	8,069,300	10%
Thabazimbi	332,900	180,000	157,400	151,200	239,400	85%	39%	670,300	474,700	41%
Total Kumba production	12,972,100	11,465,000	11,327,800	11,285,700	9,474,600	13%	37%	35,764,900	31,087,400	15%
Kumba sales volumes
RSA export iron ore	9,058,800	10,287,200	9,422,700	9,530,200	9,422,400	(12)%	(4)%	28,768,700	29,545,800	(3)%
RSA domestic iron ore	1,129,200	1,374,000	1,414,800	1,305,700	1,312,200	(18)%	(14)%	3,918,000	3,325,700	18%
Samancor
Manganese ore(1)	866,000	868,300	692,200	846,000	788,100	-	10%	2,426,500	2,455,000	(1)%
Manganese alloys(1)(2)	68,400	72,500	64,800	66,200	54,800	(6)%	25%	205,700	185,000	11%
Samancor sales volumes
Manganese ore	853,000	854,100	833,900	837,900	766,100	-	11%	2,541,000	2,424,200	5%
Manganese alloys	68,400	74,400	79,200	60,400	56,800	(8)%	20%	222,000	188,300	18%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Australia
Metallurgical - Export Coking	3,196,200	2,917,700	3,964,000	3,133,900	3,053,000	10%	5%	10,077,900	8,577,700	17%
Metallurgical - Export PCI	1,493,900	1,441,800	1,659,300	1,241,900	1,444,700	4%	3%	4,595,000	4,018,300	14%
	4,690,100	4,359,500	5,623,300	4,375,800	4,497,700	8%	4%	14,672,900	12,596,000	16%
Thermal - Export	1,574,600	958,400	769,300	1,584,700	1,672,400	64%	(6)%	3,302,300	4,679,300	(29)%
Thermal - Domestic	2,074,400	1,846,000	1,227,900	1,688,800	1,752,300	12%	18%	5,148,300	4,550,500	13%
	3,649,000	2,804,400	1,997,200	3,273,500	3,424,700	30%	7%	8,450,600	9,229,800	(8)%
Canada
Metallurgical - Export Coking	385,000	439,200	409,200	339,300	412,500	(12)%	(7)%	1,233,400	1,324,500	(7)%
Metallurgical - Export PCI	15,000	32,000	20,800	18,300	1,700	(53)%	782%	67,800	1,700	3,888%
	400,000	471,200	430,000	357,600	414,200	(15)%	(3)%	1,301,200	1,326,200	(2)%
South Africa
Thermal - Export	5,007,600	4,273,600	4,149,100	4,602,000	4,504,900	17%	11%	13,430,400	12,429,300	8%
Thermal - Domestic (Eskom)	8,000,200	8,146,800	7,406,900	7,617,800	9,053,200	(2)%	(12)%	23,553,900	25,949,600	(9)%
Thermal - Domestic (Non-Eskom)	1,862,800	1,611,200	1,359,500	1,234,100	1,665,300	16%	12%	4,833,500	4,757,900	2%
	14,870,600	14,031,600	12,915,500	13,453,900	15,223,400	6%	(2)%	41,817,800	43,136,800	(3)%
Colombia
Thermal - Export	2,368,800	2,907,700	2,948,200	3,290,300	3,184,900	(19)%	(26)%	8,224,700	7,711,200	7%
	2,368,800	2,907,700	2,948,200	3,290,300	3,184,900	(19)%	(26)%	8,224,700	7,711,200	7%
Total Metallurgical coal production	5,090,100	4,830,700	6,053,300	4,733,400	4,911,900	5%	4%	15,974,100	13,922,200	15%
Total Export Thermal coal production	8,951,000	8,139,700	7,866,600	9,477,000	9,362,200	10%	(4)%	24,957,400	24,819,800	1%
Total Domestic Thermal coal production	11,937,400	11,604,000	9,994,300	10,540,700	12,470,800	3%	(4)%	33,535,700	35,258,000	(5)%
Total Coal production	25,978,500	24,574,400	23,914,200	24,751,100	26,744,900	6%	(3)%	74,467,200	74,000,000	1 %
Weighted average achieved FOB prices
Australia and Canada
Metallurgical - Export(3) US$/t	105	109	124	133	129	(4)%	(19)%	113	142	(20)%
Thermal - Export US$/t	73	82	79	78	82	(11)%	(11)%	77	86	(10)%
Thermal - Domestic US$/t	34	35	40	40	39	(3)%	(13)%	36	39	(8)%
South Africa
Thermal - Export US$/t	70	73	77	76	74	(4)%	(5)%	73	78	(6)%
Thermal - Domestic US$/t	19	19	18	21	18	1%	10%	19	19	-
Colombia
Thermal - Export US$/t	67	67	68	72	70	-	(4)%	67	73	(8)%
Sales volumes
Australia and Canada
Metallurgical - Export(4)	5,003,800	5,152,600	5,386,200	5,182,200	4,859,000	(3)%	3%	15,542,600	13,862,300	12%
Thermal - Export	1,703,800	897,300	1,019,700	1,881,800	1,477,900	90%	15%	3,620,800	4,489,800	(19)%
Thermal - Domestic	2,102,300	1,870,000	1,331,400	1,632,000	1,684,300	12%	25%	5,303,700	4,493,400	18%
South Africa
Thermal - Export	4,473,700	3,982,500	3,977,300	4,660,200	4,877,600	12%	(8)%	12,433,500	12,841,600	(3)%
Thermal - Domestic	9,690,900	9,677,500	9,078,500	8,805,800	10,429,100	-	(7)%	28,447,000	30,238,300	(6)%
Colombia
Thermal - Export	3,076,800	2,858,100	2,647,100	3,067,000	3,154,800	8%	(2)%	8,582,100	8,085,400	6%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Australia
Callide	2,318,500	1,844,600	1,229,200	1,688,800	1,752,300	26%	32%	5,392,300	4,628,900	16%
Capcoal (incl. Grasstree)	1,816,300	1,847,500	1,904,700	1,578,800	1,606,000	(2)%	13%	5,568,500	4,482,600	24%
Dawson	1,041,400	1,101,200	1,022,800	1,162,700	993,300	(5)%	5%	3,165,400	2,823,100	12%
Drayton	817,000	708,500	659,100	976,400	1,055,900	15%	(23)%	2,184,600	2,734,200	(20)%
Foxleigh	551,200	471,200	432,900	421,900	541,000	17%	2%	1,455,300	1,544,700	(6)%
Jellinbah	732,800	756,300	677,500	755,900	673,400	(3)%	9%	2,166,600	1,760,600	23%
Moranbah North	1,061,900	434,600	1,694,300	1,064,800	1,300,500	144%	(18)%	3,190,800	3,851,700	(17)%
	8,339,100	7,163,900	7,620,500	7,649,300	7,922,400	16%	5%	23,123,500	21,825,800	6%
Canada
Peace River Coal	400,000	471,200	430,000	357,600	414,200	(15)%	(3)%	1,301,200	1,326,200	(2)%
	400,000	471,200	430,000	357,600	414,200	(15)%	(3)%	1,301,200	1,326,200	(2)%
South Africa
Goedehoop	1,210,200	1,177,200	1,138,400	1,228,300	1,194,600	3%	1%	3,525,800	3,452,500	2%
Greenside	1,003,400	806,500	803,500	923,700	862,800	24%	16%	2,613,500	2,345,900	11%
Isibonelo	1,380,100	1,329,100	1,248,900	1,139,700	1,421,600	4%	(3)%	3,958,100	3,927,000	1%
Kleinkopje	1,011,500	1,142,700	807,500	935,600	1,106,900	(11)%	(9)%	2,961,600	3,061,600	(3)%
Kriel	1,614,000	1,756,200	2,045,500	1,962,500	2,189,800	(8)%	(26)%	5,415,600	6,140,100	(12)%
Landau	1,195,900	870,900	902800	1,079,800	1,065,800	37%	12%	2,969,600	3,004,500	(1)%
Mafube	525,400	413,500	321,800	416,200	475,400	27%	11%	1,260,700	1,409,200	(11)%
New Denmark	724,900	1,091,800	638,800	569,200	817,200	(34)%	(11)%	2,455,500	3,017,700	(19)%
New Vaal	4,755,200	4,321,200	3,895,000	3,905,200	4,797,400	10%	(1)%	12,971,500	13,200,400	(2)%
Zibulo	1,450,000	1,122,500	1,113,400	1,293,700	1,291,900	29%	12%	3,685,900	3,577,900	3%
	14,870,600	14,031,600	12,915,500	13,453,900	15,223,400	6%	(2)%	41,817,800	43,136,800	(3)%
Colombia
Carbones del Cerrejón	2,368,800	2,907,700	2,948,200	3,290,300	3,184,900	(19)%	(26)%	8,224,700	7,711,200	7%
	2,368,800	2,907,700	2,948,200	3,290,300	3,184,900	(19)%	(26)%	8,224,700	7,711,200	7%
Total Coal production	25,978,500	24,574,400	23,914,200	24,751,100	26,744,900	6%	(3)%	74,467,200	74,000,000	1%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Collahuasi 100% basis (Anglo American share 44%)
Ore mined	16,442,500	16,248,500	17,560,100	23,120,000	19,421,500	1%	(15)%	50,251,100	57,835,400	(13)%
Ore processed - Oxide	1,744,800	1,659,900	1,700,500	1,481,600	1,594,100	5%	9%	5,105,200	5,547,200	(8)%
Ore processed - Sulphide	11,689,600	13,194,500	12,060,400	14,019,700	13,467,600	(11)%	(13)%	36,944,500	33,539,200	10%
Ore grade processed - Oxide (% ASCu)(6)	0.78	0.72	0.71	0.71	0.75	8%	3%	0.74	0.84	(12)%
Ore grade processed - Sulphide (% TCu)(7)	1.12	1.03	1.09	1.23	1.21	9%	(7)%	1.08	1.01	7%
Production - Copper cathode	6,200	4,400	5,300	5,500	6,900	41%	(10)%	15,900	22,900	(31)%
Production - Copper in concentrate	104,000	117,400	113,600	141,700	137,800	(11)%	(25)%	335,000	297,200	22%
Total copper production for Collahuasi	110,200	121,800	118,900	147,200	144,700	(10)%	(24)%	350,900	297,200	18%
Anglo American's share of copper production for Collahuasi(8)	48,500	53,600	52,300	64,800	63,700	(10)%	(24)%	154,400	130,800	18%
Anglo American Sur
Los Bronces mine(9)
Ore mined	14,215,400	15,483,900	12,311,300	14,502,400	13,243,600	(8)%	7%	42,010,600	42,435,800	(1)%
Marginal ore mined	7,012,900	4,949,400	5,280,400	5,261,100	3,903,800	42%	80%	17,242,700	11,960,200	44%
Ore processed - Sulphide	14,202,100	13,911,500	13,295,100	12,940,500	13,168,200	2%	8%	41,408,700	39,020,000	6%
Ore grade processed - Sulphide (% TCu)	0.71	0.81	0.88	0.87	0.83	(13)%	(15)%	0.79	0.81	(2)%
Production - Copper cathode	9,100	8,900	9,900	9,900	8,600	2%	6%	27,900	27,800	-
Production - Copper in sulphate	-	-	-	-	-	-	-	-	600	-
Production - Copper in concentrate	86,600	97,100	105,700	100,000	97,900	(11)%	(12)%	289,400	278,000	4%
Production total	95,700	106,000	115,600	109,900	106,500	(10)%	(10)%	317,300	306,400	4%
El Soldado mine(9)
Ore mined	210,700	450,300	1,893,500	2,001,200	1,910,600	(53)%	(89)%	2,554,500	6,575,500	(61)%
Ore processed - Sulphide	1,806,600	1,777,400	1,856,900	1,852,400	1,730,200	2%	4%	5,440,900	5,460,000	-
Ore grade processed - Sulphide (% TCu)	0.53	0.58	0.67	0.90	0.65	(9)%	(19)%	0.59	0.87	(32)%
Production - Copper cathode	300	300	200	300	200	-	50%	800	900	(11)%
Production - Copper in concentrate	6,400	8,100	9,700	12,300	9,200	(21)%	(30)%	24,200	38,100	(36)%
Production total	6,700	8,400	9,900	12,600	9,400	(20)%	(29)%	25,000	39,000	(36)%
Chagres Smelter(9)
Ore smelted	33,300	33,200	36,700	39,900	38,100	-	(13)%	103,200	109,900	(6)%
Production	32,300	32,400	35,500	38,700	36,800	-	(12)%	100,200	106,500	(6)%
Total copper production for Anglo American Sur	102,400	114,400	125,500	122,500	115,900	(10)%	(12)%	342,300	345,400	(1)%
Anglo American Norte
Mantos Blancos mine
Ore processed  - Sulphide	1,156,100	1,109,000	1,078,000	1,099,500	1,073,300	4%	8%	3,343,100	3,230,100	3%
Ore grade processed - Sulphide (% ICu) (10)	0.62	0.60	0.69	0.69	0.69	3%	(10)%	0.62	0.64	(3)%
Production - Copper cathode	6,500	7,900	5,000	6,700	7,500	(18)%	(13)%	19,400	22,800	(15)%
Production - Copper in concentrate	6,500	6,300	6,100	6,700	6,100	3%	7%	18,900	18,400	3%
Production total	13,000	14,200	11,100	13,400	13,600	(8)%	(4)%	38,300	41,200	(7)%
Mantoverde mine
Ore processed - Oxide	2,634,100	2,566,100	2,530,500	2,473,500	2,708,500	3%	(3)%	7,730,700	7,911,700	(2)%
Ore processed - Marginal ore	2,077,300	2,189,100	2,105,200	1,729,100	2,179,000	(5)%	(5)%	6,371,600	6,551,300	(3)%
Ore grade processed - Oxide (% ASCu )	0.47	0.48	0.50	0.52	0.55	(2)%	(15)%	0.48	0.58	(17)%
Ore grade processed - Marginal ore (% ASCu )	0.23	0.23	0.24	0.23	0.24	(1)%	(5)%	0.23	0.25	(8)%
Production - Copper cathode	13,000	12,200	13,100	13,600	14,100	7%	(8)%	38,300	43,200	(11)%
Total copper production for Anglo American Norte	26,000	26,400	24,200	27,000	27,700	(2)%	(6)%	76,600	84,400	(9)%
Total Copper segment copper production	238,600	262,600	268,600	296,700	288,300	(9)%	(17)%	769,800	727,000	6%
Total Attributable copper production(11)	176,900	194,400	202,000	214,300	207,300	(9)%	(15)%	573,300	560,600	2%
Attributable sales volumes	179,300	180,800	207,600	214,500	216,700	(1)%	(17)%	567,700	553,700	3%

(12)	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Barro Alto
Ore mined	1,019,300	736,600	354,000	321,300	885,200	38%	15%	2,109,900	1,677,600	26%
Ore processed	531,900	555,500	464,000	487,800	444,400	(4)%	20%	1,551,400	1,128,400	37%
Ore grade processed - %Ni	1.86	1.78	1.78	1.82	1.87	4%	(1)%	1.81	1.82	-
Production	8,300	8,600	6,900	7,800	7,100	(3)%	17%	23,800	17,300	38%
Codemin
Ore mined	-	6,800	-	-	-	-	-	6,800	6,800	-
Ore processed	154,100	140,800	147,200	151,700	157,000	9%	(2)%	442,100	450,700	(2)%
Ore grade processed - %Ni	1.67	1.67	1.67	1.72	1.70	-	(2)%	1.67	1.70	(2)%
Production	2,400	2,000	2,300	2,400	2,400	20%	-	6,700	6,900	(3)%
Total Nickel segment nickel production	10,700	10,600	9,200	10,200	9,500	1%	13%	30,500	24,200	26%
Sales volumes	8,800	8,900	10,000	11,200	9,200	(1)%	(4)%	27,700	22,600	23%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Niobium
Ore mined	424,900	356,200	38,500	457,100	407,500	19%	4%	819,600	771,700	6%
Ore processed	237,900	238,700	229,700	224,400	239,900	-	(1)%	706,300	738,700	(4)%
Ore grade processed - %Nb	1.08	1.10	0.92	1.16	1.19	(2)%	(9)%	1.04	1.17	(11)%
Production	1,200	1,100	1,100	1,200	1,100	9%	9%	3,400	3,300	3%
Sales volumes	1,200	1,200	1,100	1,200	1,200	9%	9%	3,500	3,500	-

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Phosphates
Concentrate	362,700	349,500	347,900	353,400	355,000	4%	2%	1,060,100	1,052,900	1%
Concentrate grade - %P2O5	37.3	37.1	36.8	36.7	37.1	1%	1%	37.1	37.3	(1)%
Phosphoric acid	81,300	81,300	53,800	78,000	79,500	-	2%	216,400	239,100	(9)%
Fertiliser(13)	284,700	275,700	267,200	299,000	326,300	3%	(13)%	827,600	900,000	(8)%
High analysis fertiliser	60,200	44,200	30,100	44,400	61,300	36%	(2)%	134,500	165,000	(18)%
Low analysis fertiliser	224,500	231,500	237,100	254,600	265,000	(3)%	(15)%	693,100	735,100	(6)%
Dicalcium phosphate (DCP)	44,100	43,600	31,600	38,700	43,100	1%	2%	119,300	121,000	(1)%
Fertiliser sales volumes	311,700	241,000	266,500	340,100	280,300	29%	11%	819,200	823,200	(0)%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Refined production
Platinum (troy oz)	460,000	420,600	435,200	692,100	666,400	9%	(31)%	1,315,800	1,687,400	(22)%
Palladium (troy oz)	316,400	294,600	256,700	428,200	369,300	7%	(14)%	867,700	952,600	(9)%
Rhodium (troy oz)	48,400	48,700	60,600	83,500	84,900	(1)%	(43)%	157,700	211,200	(25)%
Copper  refined (tonnes)(14)	2,800	3,900	3,200	1,800	2,600	(28)%	8%	9,900	6,500	52%
Copper  matte (tonnes)(14)	1,300	2,300	1,200	1,400	300	(43)%	333%	4,800	4,400	9%
Nickel refined (tonnes)(14)	5,200	5,600	4,900	5,200	4,900	(7)%	6%	15,700	11,600	35%
Nickel matte (tonnes)(14)	1,800	2,700	1,400	100	300	(33)%	500%	5,900	5,700	4%
Gold (troy oz)	14,600	26,700	25,400	26,700	33,700	(45)%	(57)%	66,700	73,300	(9)%
Equivalent refined
Platinum (troy oz)	532,800	358,200	357,000	520,300	622,600	49%	(14)%	1,248,000	1,800,100	(31)%
4E built-up head grade (g/tonne milled)(15)	3.06	2.77	2.86	3.19	3.36	10%	(9)%	2.92	3.28	(11)%

	Q3 2014	Q2 2014	Q1 2014	Q4 2013	Q3 2013	Q3 2014 vs. Q2 2014	Q3 2014 vs. Q3 2013	YTD 2014	YTD 2013	YTD 2014  vs. YTD 2013
Carats recovered (100% basis)
Orapa	2,651,000	3,487,000	3,204,000	3,516,000	2,644,000	(24)%	-	9,342,000	7,859,000	19%
Letlhakane	157,000	177,000	131,000	164,000	132,000	(11)%	19%	465,000	518,000	(10)%
Damtshaa	83,000	70,000	56,000	102,000	55,000	19%	51%	209,000	162,000	29%
Jwaneng	3,333,000	2,532,000	2,367,000	2,575,000	2,615,000	32%	27%	8,232,000	7,811,000	5%
Debswana	6,224,000	6,266,000	5,758,000	6,357,000	5,446,000	(1)%	14%	18,248,000	16,350,000	12%
Land	156,000	199,000	137,000	148,000	161,000	(22)%	(3)%	492,000	454,000	8%
Marine	293,000	310,000	295,000	317,000	284,000	(5)%	3%	898,000	843,000	7%
Namdeb Holdings	449,000	509,000	432,000	465,000	445,000	(12)%	1%	1,390,000	1,297,000	7%
Kimberley	207,000	154,000	159,000	147,000	224,000	34%	(8)%	520,000	668,000	(22)%
Venetia	776,000	834,000	531,000	1,403,000	891,000	(7)%	(13)%	2,141,000	1,789,000	20%
Voorspoed	143,000	186,000	242,000	178,000	240,000	(23)%	(40)%	571,000	539,000	6%
DBCM	1,126,000	1,174,000	932,000	1,728,000	1,355,000	(4)%	(17)%	3,232,000	2,996,000	8%
Snap Lake	253,000	379,000	268,000	397,000	315,000	(33)%	(20)%	900,000	915,000	(2)%
Victor	141,000	187,000	141,000	185,000	171,000	(25)%	(18)%	469,000	469,000	-
De Beers Canada	394,000	566,000	409,000	582,000	486,000	(30)%	(19)%	1,369,000	1,384,000	(1)%
Total carats recovered	8,193,000	8,515,000	7,531,000	9,132,000	7,732,000	(4)%	6%	24,239,000	22,027,000	10%

(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 Q2 2013 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	Edward Kite
Tel: [phone]	Tel: [phone]
South Africa	Sarah McNally
Pranill Ramchander	Tel: [phone]
Tel: [phone] Shamiela Letsoalo 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

 

END

 

 

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