Anglo American's second-quarter output rises 2%, Minas Rio ramps up
Anglo American (AAL.L) on Thursday said the ramp-up of iron ore at Minas Rio in Brazil and higher volumes of coking coal had offset reduced diamond production, raising second-quarter output by 2% and keeping the company on track to meet its 2019 targets, reports Trend citing to Reuters.
Prices of iron ore, used with coking coal to make steel, have outperformed other base metals, reaching five-year highs, after a Vale (VALE3.SA) dam disaster in Brazil led to production shut-ins.
CEO Mark Cutifani said Anglo American’s production had been boosted following the ramp-up of Minas Rio and a strong performance from coking coal after plant upgrade work in the first quarter.
“We remain broadly on track overall to deliver this full year’s production targets,” he said in a statement.
De Beers’ diamond production fell by 14% year on year as work goes on at Venetia in South Africa to move to underground mining from open pit and against a backdrop of weaker demand.
Citing “prevailing market conditions,” Cutifani said De Beers will continue to produce in response to demand for the year.
Copper production increased by 1% and platinum rose 3% year on year.
Minas Rio’s iron ore production climbed to 5.9 million tonnes. Anglo American restarted operations there in December after receiving regulatory approval to step up production following a prolonged outage because of a leak.
Metallurgical, or coking, coal production increased by 11% following site improvements, while thermal coal, used for power, fell by 8% because of a lack of water.