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Anglo American copper, diamond output down in Q3, 2024 guidance unchanged

Published 24/10/2024, 05:12 pm
© Reuters. FILE PHOTO: A worker is seen at Anglo American's Los Bronces copper mine in Chile, obtained by Reuters on April 26, 2024.  Anglo American/Handout via REUTERS/ File Photo
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LONDON (Reuters) -Global miner Anglo American (JO:AGLJ) on Thursday posted double-digit falls in its third-quarter copper and diamond production but maintained its 2024 guidance for the commodities.

Anglo said its copper output fell 13% in the July to September quarter, while rough diamond production decreased by 25% on cuts due to prolonged lower demand.

Its De Beers diamonds unit is exploring options for further output cuts in future, Anglo said.

For the first nine months of 2024, copper output fell 4% to 575,000 tons and diamond production was down 21% at 18.9 million carats.

Anglo still expects to produce 730,000-790,000 tons of copper and 23-26 million carats of rough diamonds this year, even as it assesses additional production cuts going forward.

Its shares, which have risen around 18% this year, opened up 2.2%.

The mining giant is restructuring its business to mainly focus on energy transition metal copper after fending off a $49 billion takeover offer from bigger rival BHP (ASX:BHP) Group in May.

Copper will make up 60% of Anglo's business after it sells its Australian steelmaking coal assets and nickel mines in Brazil, as well as divesting De Beers and its platinum business Amplats in South Africa.

Apart from its copper assets in Chile, Anglo will also retain iron ore mines in South Africa and Brazil, as well as the Woodsmith fertiliser project in the United Kingdom, which it has now slowed down.

Anglo said steelmaking coal's production fell by 6% in the third quarter after shutting its Grosvenor mine in Queensland due to an underground fire.

© Reuters. FILE PHOTO: A worker is seen at Anglo American's Los Bronces copper mine in Chile, obtained by Reuters on April 26, 2024.  Anglo American/Handout via REUTERS/ File Photo

The London-listed miner, the world's third-largest exporter of metallurgical coal, lowered its yearly production guidance to 14-15.5 million tons from a previous forecast of 15-17 million.

Anglo said the final round of bidders for the coal assets was in place and it expected to announce the sale agreement within months.

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