An­glo pro­duc­tion quo­tas in­crease by 8%

The Star Early Edition - - BUSINESS REPORT - Di­neo Faku

AN­GLO Amer­i­can, the JSE-listed global di­ver­si­fied min­ing giant, said yes­ter­day that pro­duc­tion had in­creased 8per­cent in the sec­ond quar­ter on the back of sig­nif­i­cant per­for­mances from its De Beers and Kumba iron ore units.

The pro­duc­tion surge re­sulted in An­glo leav­ing its pro­duc­tion guid­ance for the year un­changed and also in­creas­ing the tar­get at Kumba to be­tween 41mil­lion tons and 43 mil­lion tons on the back of strong per­for­mance at the Sishen Mine in the North­ern Cape.

An­glo said vol­umes at Sishen were 7.9mil­lion tons and 38per­cent higher than the pre­vi­ous com­pa­ra­ble pe­riod af­ter some im­prove­ment in min­ing pro­duc­tiv­ity, driven by fleet ef­fi­cien­cies and higher plant yields.

Sishen im­ple­mented a re­vised mine plan last year in a bid to cut costs fol­low­ing the sharp de­cline in iron ore prices that has re­sulted in lower vol­umes and a 31 per­cent re­duc­tion of the work­force.

Kumba’s waste re­moval also in­creased to 43mil­lion tons com­pared to 31mil­lion tons in the sec­ond quar­ter of last year.

Pro­duc­tion at the Kolomela Mine was up 11per­cent to 3.5mil­lion tons, un­der­pinned by pro­duc­tiv­ity im­prove­ments. Waste re­moval in­creased by 22per­cent to 15 mil­lion tons.

In terms of di­a­mond out­put, South African pro­duc­tion in­creased by 71per­cent to 1.4mil­lion carats, largely as a re­sult of higher grades at the Vene­tia Mine in Lim­popo.

It said rough di­a­mond pro­duc­tion in­creased by 36 per­cent to 8.7mil­lion carats in line with the higher pro­duc­tion fore­cast for this year, on the back of sta­ble trad­ing con­di­tions and the con­tri­bu­tion from the ramp-up of Gah­cho Kué mine in Canada.

In Botswana pro­duc­tion was 14per­cent higher to 5.9mil­lion carats. Orapa’s pro­duc­tion in­creased by 44 per­cent driven by the ramp-up of Plant 1, which was pre­vi­ously on par­tial care and main­te­nance in re­sponse to trad­ing con­di­tions in late 2015.

Im­prove­ments

An­glo chief ex­ec­u­tive Mark Cu­ti­fani said the com­pany had de­liv­ered an­other strong pro­duc­tion quar­ter across most of our busi­nesses.

“Through the im­prove­ments we have made to our port­fo­lio and the ef­fi­cien­cies we are driv­ing, we con­tinue to un­lock the po­ten­tial of our world class as­sets… We have in­creased the full-year pro­duc­tion guid­ance for Kumba and are on track to de­liver full-year guid­ance across the rest of our prod­ucts,” said Cu­ti­fani.

Percy Takunda, an an­a­lyst at Mo­men­tum Se­cu­ri­ties said An­glo’s pro­duc­tion re­sults were not sur­pris­ing and this was be­cause the com­pany had ben­e­fited from the firm­ing in com­mod­ity prices. “If you com­pare the first half of 2016 and the first half 2017 com­mod­ity prices im­proved sig­nif­i­cantly,” he said.

There had been a 26per­cent in­crease in cop­per prices, while hard cok­ing was 100per­cent higher in the first half of last year com­pared with the first half of this year.

Plat­inum’s Mo­galak­wena mine pro­duc­tion in­creased by 15per­cent due to higher grades and in­creased through­put.

In terms of cop­per, pro­duc­tion from Los Bronces in Chile was 4per­cent higher to 79000 tons.

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