JOHANNESBURG (miningweekly.com) – Diversified mining company Anglo American said on Thursday that it is making “excellent” portfolio simplification progress to create an investment proposition focused on copper, premium iron-ore and crop nutrients assets.

“This highly cash generative and much higher margin portfolio will offer greater resilience through cycles,” Anglo CEO Duncan Wanblad stated in a release to Mining Weekly on third-quarter production.

Sequenced growth options include a path to increase copper production to more than one-million tonnes a year by the early 2030s. Production at the Quellaveco copper operation in Peru is expected to increase in the fourth quarter as grades and recoveries improve.

Minas-Rio iron-ore mine in Brazil reported a second successive record quarter and platinum group metals (PGMs) and nickel upped their production guidance forecasts.

Nickel production increased by 6% in the third quarter owing largely to operational improvements at Barro Alto.

PGMs production fell 10% compared with the third quarter of last year owing to lower metal-in-concentrate production.

The PGMs demerger is reportedly heading for completion by the middle of next year and the execution of the sale of the steelmaking coal business is expected “in the coming months”.

Excluding the impacts of Grosvenor, steelmaking coal production increased by 3% on higher production from the Dawson opencast operation and the Moranbah longwall operation.

Rough diamond production fell 25%, reflecting a production response to the prolonged period of lower demand, higher than normal levels of inventory in the midstream and a continued focus on managing working capital. The expectation remains for a drawn-out recovery.

Being developed on the crop nutrients front is the Woodsmith project in the north east of England to access a polyhalite deposit, which will be extracted through two 1.6 km deep mine shafts and transported to Teesside by an underground conveyor belt in a 37 km tunnel.

COPPER

Group copper production continues to track to guidance in Chile and Peru, with the operations progressing on the reset mine plans implemented at the end of 2023. Total production of 181 300 t reflects the reconfiguration of the Los Bronces mine and lower grades and recoveries at Quellaveco.

In Peru, Quellaveco production fell to 68 700 t as the mine moves through a lower grade area. The year-to-date average realised copper price of 414c/lb includes 53 000 t of copper provisionally priced at an average of 427c/lb.

In Chile, copper production fell 7% to 112 600 t. The ongoing characteristics of lower grade and ore hardness will continue to impact operations until the next phase of the mine, where grades are expected to be higher and the ore softer from early 2027.

The year-to-date average realised price of 426c/lb includes 56 400 t of copper provisionally priced at an average of 443c/lb.

Production guidance for 2024 is unchanged at 730 000 t to 790 000 t with unit cost guidance unchanged at 157c/lb, with the weaker Chilean peso having provided a tailwind year-to-date.

IRON-ORE

Group iron-ore production was 15.7-million tonnes, made up of 3%-lower Kumba Iron Ore production of 9.4-million tonnes, and the 11%-higher 6.3-million tonnes of production at Minas-Rio.

Kumba's iron content averaged 64.1% and the year-to-date average realised price of $94/t was 4% higher than the 62% iron benchmark price of $90/t.

Minas-Rio’s year-to-date average realised price of $85/t was 3% lower than the Metal Bulletin 65 price of $88/t.

Production guidance for 2024 is unchanged at 58-million to 62-million tonnes, with unit cost guidance remaining $37/t, with Kumba coming in at $38/t and Minas-Rio at $35/t.

PLATINUM GROUP METALS

Own mined metal-in-concentrate production fell 17% to 552 000 oz on mainly the disposal of Kroondal.

Excluding Kroondal, production decreased by 9% on lower output at Mogalakwena and Amandelbult.

Mogalakwena's production of 217 800 oz was impacted in July by downtime and repairs caused by an electrical failure in the north concentrator's primary mill, and a 45 000 oz lowering of output that was partially offset by improved performance at the south concentrator.

In response to the double fatality that occurred at Amandelbult in June, production decreased by 14% to 158 200 oz owing to stoppages in July aimed at resetting safety performance.

Sales volumes increased by 16% to 1 102 200 oz, supported by higher refined production.

The year-to-date average realised basket price of $1 455/PGM oz was 18% lower, owing mainly to a 37% decrease in rhodium prices and a 30% decrease in palladium prices. Unit cost guidance for 2024 is unchanged at $920/PGM oz.

DIAMONDS

Rough diamond production decreased by 25% to 5.6-million carats.

In South Africa, production increased by 41% to 0.5-million carats, as Venetia underground ramped up.

In Botswana, production fell by 32% to four-million carats, as actions to lower production at Jwaneng were delivered.

Production in Namibia decreased by 14% to 0.5-million carats, reflecting intentional action to lower production at Debmarine Namibia, partially offset by planned higher-grade mining and better recoveries at Namdeb.

Production in Canada decreased by 11% to 0.6-million carats owing to the treatment of lower-grade ore.

Third-quarter trading conditions were hit by the prolonged period of depressed consumer demand in China.

The year-to-date consolidated average realised price increased by 4% to $160/ct, reflecting a larger proportion of higher-value rough diamonds being sold.

De Beers Jewellers benefited from growth in design-led pieces, while bridal and solitaire demand remained challenged by macroeconomic headwinds and slower Chinese recovery. Forevermark's global operations ramped down, consistent with the strategy to focus the brand on India.

New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned. The collaborations focus on driving long-term desirability for natural diamonds in two of the world's leading consumer countries for natural diamonds. The collaborations will also benefit from promotional messages being amplified through the wide reach of these leading retail businesses.

De Beers also announced the introduction of DiamondProof™, a new device to be used on the jewellery retail counter for rapidly distinguishing between natural diamonds and lab-grown diamonds, supporting retailers in communicating the attributes of natural diamonds, providing customers with enhanced confidence in the authenticity of their natural diamond purchase and deterring undisclosed lab-grown diamonds from entering the natural supply chain.

Production guidance for 2024 is unchanged at 23-million carats to 26-million carats amid De Beers assessing options with partners to reduce production going forward. Unit cost guidance for 2024 is unchanged at $95/ct.

STEELMAKING COAL

Steelmaking coal production decreased by 6% to 4.1-million tonnes and sales volumes were down 7% in line with lower production.

The year-to-date average realised price for hard coking coal was $253/t. Production guidance for 2024 is unchanged at 14-million to15.5-million tonnes with unit cost guidance unchanged at $130/t to $140/t.

NICKEL

Production increased by 6% to 9 900 t with production guidance for 2024 being revised, lifted to 38 000 t to 39 000 t. Unit cost guidance has been revised down to 530c/lb owing to higher production volumes.

MANGANESE

Manganese ore production decreased by 60% to 405 500 t, primarily owing to the impact of a tropical cyclone, which damaged critical infrastructure including a bridge connecting the northern mining pits and the primary concentrator.

EXPLORATION

Third-quarter exploration expenditure decreased by 24% to $29-million owing to less spent on iron-ore and diamonds exploration. Evaluation expenditure fell 19% to $42-million, mainly owing to a decrease in spending in PGMs, steelmaking coal and diamonds.