JOHANNESBURG (miningweekly.com) – Diversified mining company Anglo American on Thursday emphasised its embedding of operational resourcefulness across its asset base and highlighted its second-quarter performance as being strong.

Moreover, the strategy reviewing Johannesburg- and London-listed centenarian described its copper production as “tracking well to the full-year plan” and its asset divestment execution work as proceeding at pace.

"We’ve delivered a strong second-quarter performance as we continue to embed operational excellence across the asset base,” was the comment of Anglo CE Duncan Wanblad.

Minas-Rio in Brazil achieved record second-quarter performance on the iron-ore front, steelmaking coal production increased by 26%, total Kumba Iron Ore sales increased by 3%, attributable share of Collahuasi copper production increased by 5%, output at Anglo American Platinum’s Amandelbult platinum group metals (PGM) mine increased by 7%, refined PGM production increased by 7%, PGM sales volumes increased by 14%, and in South Africa, diamond production increased by 8% as the Venetia mine transitions underground.

“Our copper operations in Chile and Peru both performed well against our plans. We are focused on continuing to deliver our strategic priority of operational excellence - improving performance stability is driving increased confidence in operational plans, including production volumes and unit costs.

"De Beers' diamond production reflects the lower revised guidance announced in our first-quarter production report. Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued.

“With higher-than-normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are therefore actively assessing options with our partners to further reduce production to manage our working capital and preserve cash,” said Wanblad in a release to Mining Weekly.

At the end of June, the Grosvenor steelmaking coal mine in Australia experienced an underground fire and as a result of the incident, the operation is suspended and Grosvenor's production is excluded from steelmaking coal guidance for the second half of the year.

"In May, we announced our plan to accelerate our strategy by simplifying the portfolio and focusing on our world-class assets in copper, premium iron-ore and crop nutrients.

In working to execute on the asset divestments, including steelmaking coal, it is intent on minimising frictional costs, mitigating execution risks, and enabling the delivery of sustainable cost savings.

“Work is progressing with the aim of substantively completing this transformation by the end of 2025," Wanblad added.

Iron-ore production guidance for 2024 is unchanged at 58-million to 62-million tonnes (Kumba 35-million to 37-million tonnes; Minas-Rio 23-million to 25-million tonnes). Kumba is subject to third-party rail and port availability and performance.

Iron-ore unit cost guidance for 2024 is unchanged at $37/t, with Kumba at $38/t and Minas-Rio at $35/t.

PGM production guidance for 2024 for metal-in-concentrate and refined production is unchanged at 3.3-million to 3.7-million ounces.

Production remains subject to the impact of Eskom load-curtailment, of which there was none in the second quarter. Unit cost guidance for 2024 is unchanged at $920/PGM oz.

The disposal of the 50% interest in Kroondal has resulted in Kroondal moving to a 100% third-party purchase of concentrate arrangement with a transition to a toll arrangement in the second half of this year.

Rough diamond production decreased by 15% to 6.4-million carats, primarily reflecting the lower production guidance announced in the first-quarter production report in response to the higher-than-normal levels of inventory in the midstream, and the expectation of a protracted recovery in demand.

Demand for rough diamonds recovered slightly at the start of 2024 following the cessation of the voluntary moratorium on rough diamond imports into India in late 2023, and improved demand for diamond jewellery in the US year-end retail selling season. However, with midstream polished inventories remaining higher than normal and continued cautious restocking from retailers, demand for rough diamonds deteriorated in the second quarter of the year. Market conditions are expected to reflect a protracted recovery in demand.

Consequently, second-quarter rough diamond sales totalled 7.8-million from three sights, compared with 7.6-million carats from two sights in the second quarter of last year.

Half-year consolidated average realised price remained broadly flat at $164/ct.

Rough diamond sight sale announcements will cease from now on as De Beers will report this information on a quarterly basis.

Production guidance for 2024 is unchanged at 26-million to 29-million carats and cost guidance is unchanged at $90/ct.

Manganese ore production decreased by 63% to 356 000 t, primarily owing to the impact of tropical cyclone Megan in mid-March, which temporarily suspended the Australian operations.

The weather event caused widespread flooding and significant damage to critical infrastructure.

Operational recovery has focused on re-establishing critical services, dewatering targeted mining pits, and in June a phased return to mining activities has commenced. Engineering studies are under way on the infrastructure restoration.

Second-quarter exploration and evaluation expenditure decreased by 9% to $82-million, with exploration expenditure falling to $32-million and evaluation expenditure to $50-million, primarily owing to a decrease in spend at PGMs and diamonds, partially offset by higher spend in copper and iron-ore.

JOHANNESBURG COMMITMENT

Demonstrating its broad commitment to education, entrepreneurship and leaving a positive legacy in the Johannesburg central business district (CBD), Anglo on June 28 celebrated the official handover of its building at 47 Main street, in Johannesburg, to Wits Business School (WBS).

This showcases the company’s commitment to working with partners, including inner-city stakeholders, academia, small, medium-sized and microenterprises, civic organisations and residents, to rejuvenate the CBD and surrounds.

The eight-floor,15 000 m² building, will allow WBS to launch the ‘Wits Crucible’ a state-of-the-art Centre for Entrepreneurship and New Venture Creation, providing crucial business education, incubation and acceleration services for youth and entrepreneurs in the Johannesburg inner-city.

Bridging the gap between academic learning and real-world entrepreneurial experience, the Wits Crucible will provide four key units of entrepreneurship development support for the youth, student entrepreneurs and Wits graduates.

A development unit will provide aspiring entrepreneurs with the skills to launch and grow a successful business.

The Crucible will also have a venture screening and selection unit that will focus on the feasibility of business ideas to drive innovation and digital technology integration.

It will also boast an incubation unit for selected business ventures and an acceleration unit to offer intensive growth support to top-performing ventures. 

“Today, we stand on a threshold of an exciting chapter in our partnership. This Crucible, the Centre for Entrepreneurship and the New Venture Creation, represents a beacon of hope,” added Wits vice-chancellor Professor Zeblon Vilakazi.

Further, Anglo last year handed over its 45 Main street building, also in the Johannesburg CBD, to the Maharishi Invincibility Institute, supporting education outcomes for underprivileged youth, while De Beers transferred ownership of the historic Harry Oppenheimer House building, in Kimberley, to the Sol Plaatje University.