Anglo American reports solid Q2 2015 production performanceStaff writer ▼ | July 17, 2015
Anglo American plc published its production report for the second quarter ended June 30, 2015. The company reported solid Q2 2015 production performance, broadly in line with Anglo American expectations.
Anglo American Export metallurgical coal production increased by 9%
Minas-Rio produced 1.8 million tonnes (wet basis) of iron ore, a 55% increase compared to Q1 2015, reflecting the ongoing ramp up of the operation.
Export metallurgical coal production increased by 9% to 5.3 million tonnes with higher production from Moranbah, due to a longwall move in Q2 2014, and development coal from the Grosvenor project.
Export thermal coal production increased by 5% to 8.6 million tonnes, primarily due to higher production in Australia largely the result of a change in mix.
Copper production decreased by 5% to 184,500 tonnes, as expected and mainly due to the temporary shutdowns of the processing plants at Los Bronces to manage water reserve levels and plant stability issues at Collahuasi.
Nickel production decreased by 41% to 6,300 tonnes as expected, due to the planned Barro Alto furnace rebuilds.
Equivalent refined platinum production increased by 60% to 572,000 ounces benefitting from reduced industrial stoppages compared to 2014.
Diamond production decreased by 6% to 8.0 million carats, mainly due to lower grades and reduced plant availability at Orapa. In addition, operational flexibility at the Venetia and Jwaneng tailings treatment plants was utilised to reduce production marginally, in response to softer trading conditions.
The first six months of 2015 have seen significant further weakness and ongoing volatility in the prices of the bulk commodities, particularly iron ore and metallurgical coal.
Anglo American has therefore reviewed its near and longer term commodity price assumptions at the mid-year, while also noting the gradual and ongoing reduction of consensus prices within what remains a wide range of forecasts.
As a result, Anglo American expects to record non-cash impairments within special items at June 30, 2015 relating to Minas-Rio and certain Australian coal assets of approximately $3 – 4 billion on a post-tax basis. ■