Diversified miner Anglo American's copper and iron-ore operations delivered a good performance for the fourth quarter of 2024, as well as for the full-year, in line with the group's growing focus on these commodities.

"Our focus on operational excellence is bringing far greater efficiency, underpinning our solid production performance in 2024. We are simplifying our portfolio at pace to focus on copper, premium iron-ore and crop nutrients, offering a highly attractive and differentiated investment proposition with a structurally lower cost base. 

"This higher-margin and more cash generative Anglo American will offer greater resilience through the cycle and possesses outstanding value-accretive growth optionality in each of our businesses," says CEO Duncan Wanblad.

Although the group reported a 6% year-on-year decrease in copper production to 772 700 t for the 2024 full-year, output was at the top end of the group's guidance of 730 000 t to 790 000 t.

The Quellaveco mine, in Peru, also delivered its strongest quarter yet in the fourth quarter of 2024, while the reshaped Los Bronces mine, in Chile, continued to perform well.

Quellaveco produced 90 200 t of copper for the fourth quarter, a 4% year-on-year decrease owing to lower recoveries and anticipated lower grades, but a 31% quarter-on-quarter improvement.

In 2025, the mine is expected, as planned, to average similar grades as in 2024, while opening up and developing the next phases, which will enable more flexibility in the medium to longer term, says Anglo.

Optimising the coarse particle recovery plant remains a priority going into 2025 and a continued improvement in recoveries is expected progressively through the year, the miner notes.

Further, fourth-quarter copper output in Chile was negatively impacted on by the planned shutdown of the Los Bronces plant, which was put on care and maintenance in July 2024, and anticipated lower grades at Collahuasi, which resulted in a 21% decrease year-on-year to 107 300 t.

Production for the full year of 466 400 t was, however, higher than market guidance of 430 000 t to 460 000 t.

At Collahuasi, Anglo American’s attributable share of copper production decreased by 22% to 56 100 t, owing to anticipated lower ore grades as well as lower copper recovery. As the mine transitions between different phases, the processing of lower-grade stockpiles is expected to continue this year.

Production from Los Bronces decreased by 32% to 38 700 t for the fourth quarter. The ongoing characteristics of lower grade and ore hardness as a result of the current mine phase will continue to impact operations until the next phase of the mine, where grades are expected to be higher and the ore softer. 

"As previously stated, development work for this phase is under way and is expected to benefit production from 2027," Anglo notes.

The miner has set its production guidance for copper at between 690 000 t and 750 000 t for 2025 and at between 760 000 t and 820 000 t for 2026 and 2027.

"Our forward production guidance is unchanged in copper, with growth in 2026 driven by higher grades in Chile, with this production level then maintained in 2027. We continue to set up the copper business for growth in subsequent years with the resumption of the smaller plant at Los Bronces and through debottlenecking at Collahuasi," says Wanblad.

IRON-ORE
Iron-ore production for the fourth quarter of 2024 increased by 4% year-on-year to 14.3-million tonnes, while production for the full-year was 1% higher year-on-year at 60.8-million tonnes – in line with guidance of 58-million to 62-million tonnes.

The Minas-Rio mine, in Brazil, produced a record 25-million tonnes of iron-ore for the year, while Kumba Iron Ore, in South Africa, delivered 35.7-million tonnes – in line with output for 2023.

Kumba announced in August 2024 that it would invest a further R7.6-billion in the ultrahigh dense media separation (UHDMS) project, at the Sishen mine, in the Northern Cape. 

The UHDMS project will convert the current dense media separation processing plant at Sishen to UHDMS technology, which uses specialised ferrosilicon in the processing plant to separate valuable iron-ore from waste. This will provide Kumba with greater flexibility to process a wider range of iron grades and densities.

The miner expects the project to reach full production in 2028. Mine stock levels are expected to remain elevated over the next few years to assist with the tie-in of the UHDMS modules.

Anglo has set its iron-ore production guidance for this year at between 57-million and 61-million tonnes, with Kumba expected to deliver 35-million to 37-million tonnes, subject to third-party rail and port availability and performance; and Minas-Rio 22-million to 24-million tonnes, taking into consideration a pipeline inspection (that occurs every five years) that is planned for the second half of the year.

The group's iron-ore production guidance for 2026 has been set at 54-million to 58-million tonnes for 2026 and at between 59-million and 63-million tonnes for 2027.

Meanwhile, Wanblad says the group is making "excellent progress" with its portfolio simplification.

"In November, we announced agreements to sell our steelmaking coal business for up to $4.9-billion in aggregate gross cash proceeds, with the Peabody transaction expected to complete by the third quarter of 2025. 

"We also completed a second bookbuild offering of our Anglo American Platinum (Amplats) shares, which in combination with the prior placing generated $900-million. This has increased the free float of Amplats by more than 50%, helping to mitigate flowback when we demerge the business, expected by the middle of 2025. 

"The sales process of our nickel business is well progressed and we continue to prepare the De Beers business for separation," he points out.