Diversified mining company Anglo American has reported robust results for the second quarter, highlighting significant achievements and strategic progress across its operations.
Anglo American CEO Duncan Wanblad stated, “We’ve delivered a strong second-quarter performance as we continue to embed operational excellence across the asset base.”
Key milestones include record performance at Minas-Rio in Brazil, a 26% increase in steelmaking coal production, and a 3% rise in total Kumba Iron Ore sales. Additionally, Collahuasi copper production saw a 5% increase, while the Amandelbult platinum group metals (PGM) mine’s output grew by 7%. Refined PGM production also rose by 7%, with sales volumes increasing by 14%. In South Africa, diamond production climbed by 8% as the Venetia mine transitions underground.
“Our copper operations in Chile and Peru performed well against our plans. We are focused on continuing to deliver our strategic priority of operational excellence, improving performance stability and driving increased confidence in our operational plans, including production volumes and unit costs,” Wanblad said.
De Beers’ diamond production reflected the lower revised guidance announced earlier, facing challenges due to subdued Chinese consumer demand. Wanblad added, “With higher-than-normal levels of inventory in the midstream and an expectation for a protracted recovery, we are actively assessing options with our partners to reduce production to manage working capital and preserve cash.”
At the end of June, an underground fire at the Grosvenor steelmaking coal mine in Australia led to a suspension of operations, excluding Grosvenor’s production from the second half’s guidance.
In May, Anglo American announced plans to simplify its portfolio, focusing on world-class assets in copper, premium iron ore, and crop nutrients. Wanblad noted that efforts to execute asset divestments, including steelmaking coal, aim to minimize costs, mitigate risks, and deliver sustainable savings. “Work is progressing with the aim of completing this transformation by the end of 2025,” he said.
Iron ore production guidance for 2024 remains at 58-62 million tonnes, with Kumba at 35-37 million tonnes and Minas-Rio at 23-25 million tonnes. Unit cost guidance is unchanged at $37 per tonne, with Kumba at $38 per tonne and Minas-Rio at $35 per tonne. PGM production guidance for 2024 is also unchanged at 3.3-3.7 million ounces.
Rough diamond production decreased by 15% to 6.4 million carats, reflecting lower production guidance and a protracted recovery in demand. Despite a slight recovery in early 2024, demand for rough diamonds deteriorated in the second quarter. Consequently, second-quarter rough diamond sales totaled 7.8 million carats, compared with 7.6 million carats in the same period last year.
Manganese ore production decreased by 63% to 356,000 tonnes due to the impact of tropical cyclone Megan in mid-March, which temporarily suspended Australian operations. Recovery efforts are focusing on re-establishing critical services and mining activities.
Second-quarter exploration and evaluation expenditure decreased by 9% to $82 million, with exploration spending falling to $32 million and evaluation spending to $50 million. This was mainly due to decreased spending in PGMs and diamonds, partially offset by higher spending in copper and iron ore.
On June 28, Anglo American celebrated the official handover of its building at 47 Main Street in Johannesburg to Wits Business School (WBS). This event demonstrates the company’s commitment to education, entrepreneurship, and revitalizing the Johannesburg central business district (CBD).
The eight-floor, 15,000-square-meter building will enable WBS to launch the Wits Crucible, a state-of-the-art Center for Entrepreneurship and New Venture Creation. This center aims to provide essential business education, incubation, and acceleration services for youth and entrepreneurs in Johannesburg.
The Wits Crucible will bridge the gap between academic learning and real-world entrepreneurial experience, offering four key units of entrepreneurship development support. These include a development unit to help aspiring entrepreneurs launch and grow businesses, a venture screening and selection unit focusing on business idea feasibility, an incubation unit for selected ventures, and an acceleration unit providing intensive growth support for top-performing ventures.
“Today, we stand on the threshold of an exciting chapter in our partnership. This Crucible, the Center for Entrepreneurship and New Venture Creation, represents a beacon of hope,” said Wits Vice-Chancellor Professor Zeblon Vilakazi.
Anglo American’s commitment to education and community development is further highlighted by last year’s handover of its 45 Main Street building to the Maharishi Invincibility Institute and De Beers’ transfer of the historic Harry Oppenheimer House in Kimberley to Sol Plaatje University.
Source: Mining Weekly
