Wrap Text
Production Report for the first quarter ended 31 March 2017
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
JSE Share code: AGL
NSX Share code: ANM
ISIN number: GB00B1XZS820
24 April 2017
Anglo American plc
PRODUCTION REPORT FOR THE FIRST QUARTER ENDED 31 MARCH 2017
Overview
% vs.
Q1 2017 Q1 2016 Q1 2016
Diamonds (Mct)(1) 7.4 6.9 8%
Platinum (produced ounces) (koz)(2) 572 567 1%
Copper (t)(3)(4) 142,600 146,500 (3)%
Iron ore - Kumba (Mt) 10.5 8.9 17%
Iron ore - Minas-Rio (Mt)(5) 4.3 3.3 30%
Export metallurgical coal (Mt) 5.2 4.1 28%
Export thermal coal (Mt)(6) 6.8 6.5 6%
Nickel (t)(7) 9,900 11,200 (12)%
Mark Cutifani, Chief Executive of Anglo American, said "A strong operational performance enhanced by the
continued ramp-up of Gahcho Kué, Minas-Rio and Grosvenor delivered an 9% increase in production on a
copper equivalent basis(8). The operating improvements at Sishen and ongoing portfolio refinements are
further strengthening Anglo American’s resilience and competitive position. De Beers’ total sales
volumes of 14.1 million carats reflected improved demand for lower value goods in stock at 31 December
2016."
- Rough diamond production increased by 8% to 7.4 million carats compared with Q1 2016. This reflected the
contribution of Gahcho Kué in Canada, as well as increases in response to improved trading conditions.
- Platinum production (metal in concentrate)(2) was broadly flat at 572,000 ounces. With the sale of
Rustenburg, production from that operation is now treated as purchase of concentrate (which increased by
93%) rather than own mined production (which decreased by 26%). Refined platinum production increased by
121% to 577,000 ounces as Q1 2016 was impacted by a Section 54 safety stoppage at the Precious Metals
Refinery.
- Copper production decreased by 3% to 142,600 tonnes. Continued strong performance at Collahuasi was
offset by expected lower grades and increased ore hardness at Los Bronces, and the temporary suspension
of mining operations at El Soldado which resulted in ~3,000 tonnes of lost production.
- Iron ore production from Kumba increased by 17% to 10.5 million tonnes due to improved mining
productivity at Sishen, and higher throughput at Kolomela.
- Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis) as the operation
continued to ramp-up.
- Export metallurgical coal production increased by 28% to 5.2 million tonnes, primarily due to a longwall
move at Moranbah in Q1 2016 and the ramp-up at Grosvenor.
- Production of South African and Colombian export thermal coal increased by 6% to 6.8 million tonnes,
driven by higher productivity across most of the South African mines.
- Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto’s electric
furnaces, impacting throughput.
(1) De Beers production on 100% basis except the Gahcho Kué joint venture which is on an attributable
51% basis;
(2) Reflects own mine production and purchases of metal in concentrate;
(3) Copper production from the Copper business unit;
(4) Copper production shown on a contained metal basis;
(5) Wet basis;
(6) Export thermal coal includes export primary production from South Africa and Colombia, and excludes
secondary South African production that may be sold into either the export or domestic markets;
(7) Nickel production from the Nickel business unit;
(8) Copper equivalent production is normalised for, Kimberley, Niobium & Phosphates, Foxleigh and
Callide, and to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton.
DE BEERS
Q1 2017 Q1 2017
vs. vs.
Diamonds(1) Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Debswana 000 carats 5,191 5,328 (3)% 5,440 (5)%
Namdeb Holdings 000 carats 472 444 6% 428 10%
DBCM 000 carats 1,106 932 19% 1,387 (20)%
De Beers Canada 000 carats 631 162 290% 497 27%
Total carats recovered 000 carats 7,400 6,866 8% 7,752 (5)%
De Beers – Rough diamond production increased by 8% to 7.4 million carats, reflecting the contribution
of Gahcho Kué in Canada, as well as increases in response to improved trading conditions.
Debswana’s (Botswana) production decreased marginally to 5.2 million carats. Jwaneng’s, production
decreased by 8% due to expected lower grades, partly offset by Orapa, which increased by 5% due to
expected higher grades.
Production at Namdeb Holdings (Namibia) increased by 6% to 0.5 million carats due to marginally higher
grade at Namdeb.
In DBCM (South Africa), production increased by 19% to 1.1 million carats largely as a result of higher
grades at Venetia.
Production in Canada increased by 290% to 0.6 million carats due to the contribution of Gahcho Kué,
which reached commercial production on 2 March 2017.
Total rough diamond sales volumes in Q1 2017 were 14.1 million carats (13.7 million carats on a
consolidated basis(2)) from three Sights, compared with 8.1 million carats (7.6 million carats on a
consolidated basis(2)) from two Sights in Q1 2016. In addition, this increase reflected stronger demand
in Sight 1 2017, particularly for lower value goods in stock at 31 December 2016.
Full Year Guidance
Full year production guidance(1) remains unchanged at 31-33 million carats, subject to trading
conditions.
(1) De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an
attributable 51% basis.
(2) Consolidated sales volume excludes De Beers’ JV partners’ 50% proportionate share of sales to
entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the
Namibia Diamond Trading Company, and includes pre-commercial production sales volumes from Gahcho
Kué.
Q1 2017 Q1 2017
vs. vs.
De Beers Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Carats recovered
(000 carats)
100% basis
(unless otherwise stated)
Orapa 2,106 2,366 1,536 2,028 2,001 5% (11)%
Letlhakane 130 135 176 159 125 4% (4)%
Damtshaa(1) - - - - - - -
Jwaneng 2,955 2,939 2,837 2,997 3,202 (8)% 1%
Debswana 5,191 5,440 4,549 5,184 5,328 (3)% (5)%
Namdeb 94 118 120 94 72 31% (20)%
Debmarine Namibia 378 310 285 202 372 2% 22%
Namdeb Holdings 472 428 405 296 444 6% 10%
Kimberley - - - - 68 (100)% -
Venetia 939 1,218 898 695 706 33% (23)%
Voorspoed 167 169 196 126 158 6% (1)%
DBCM 1,106 1,387 1,094 821 932 19% (20)%
Snap Lake - - - - 3 (100)% -
Victor 189 148 142 147 159 19% 28%
Gahcho Kué (51% basis) 442 349 83 - - - 27%
De Beers Canada 631 497 225 147 162 290% 27%
Total carats recovered 7,400 7,752 6,273 6,448 6,866 8% (5)%
Sales volumes
Total sales volume
(100%) (Mct)(2) 14.1 8.0 5.7 10.2 8.1 74% 75%
Consolidated sales
volume (Mct)(2)(3) 13.7 7.5 5.3 9.6 7.6 80% 82%
Number of Sights
(sales cycles) 3 3 2 3 2
(1) Damtshaa (a satellite operation of Orapa) was placed on care and maintenance from 1 January 2016).
(2) Consolidated sales volumes exclude De Beers’ JV partners’ 50% proportionate share of sales to
entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the
Namibia Diamond Trading Company, which are included in total sales volume.
(3) Consolidated sales volume includes pre-commercial production sales volumes from Gahcho Kué.
PLATINUM
Q1 2017 Q1 2017
vs. vs.
Platinum Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Produced ounces 000 oz 572 567 1% 610 (6)%
Own mined 000 oz 325 439 (26)% 387 (16)%
Purchase of concentrate 000 oz 247 128 93% 223 11%
Refined
Platinum 000 oz 577 261 121% 632 (9)%
Palladium 000 oz 353 182 95% 397 (11)%
Rhodium 000 oz 74 48 55% 92 (20)%
Gold 000 oz 25 28 (11)% 34 (27)%
Nickel t 5,100 5,700 (11)% 6,200 (18)%
Copper t 3,200 3,300 (3)% 3,300 (3)%
Platinum – Platinum production (metal in concentrate) was broadly flat at 572,000 ounces. With the sale
of Rustenburg, which completed in November 2016, production from that operation is now treated as
purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by
26%).
Own mined production
Mogalakwena production increased by 3% to 111,900 ounces as a result of stronger plant recoveries and
increased throughput.
Amandelbult production decreased by 12% to 97,100 ounces primarily due to unusually heavy rainfall
resulting in flooded open pits, which also impacted feed chutes to the concentrator plants, as well as
minor industrial action which impacted production for two days.
Union increased production by 10% to 37,700 ounces due to improved crew efficiencies and mining closer
to the shaft area in line with the optimised mine plan. The sale of Union to Siyanda Resources was
announced on 15 February. The sale is expected to complete during 2017, after which Siyanda will sell
concentrate produced by Union to Platinum for a period of seven years and thereafter Platinum will toll
treat concentrate for the remaining life of Union.
Mined production from independently managed operations decreased by 3% to 59,000 ounces primarily due to
lower production at Kroondal following a two-day illegal strike, and lower grade at both Kroondal and
Mototolo. This was partially offset by higher production at Modikwa due to improved plant recoveries.
Purchase of concentrate
Purchase of concentrate from independently managed operations was flat at 123,700 ounces as increased
production at BRPM offset lower production at Bokoni following a fatality and subsequent Section 54
safety stoppage, as well as the 3% decrease from Modikwa, Mototolo and Kroondal described above.
Purchase of concentrate from third parties increased by nearly 120,000 ounces largely due to the
inclusion of concentrate from Rustenburg, following the sale of these operations to Sibanye in
November 2016.
Refined production
Refined platinum production increased by 316,100 ounces to 576,900 ounces with Q1 2016 refined
production having been materially impacted by a Section 54 safety stoppage at the Precious Metal
Refinery.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in
Q4 2016 and is now running at steady-state; the backlog of 65,000 ounces is expected to be processed
during 2017. The Number 2 furnace underwent planned maintenance and has now been successfully rebuilt.
It is ramping-up to full capacity, which is expected in Q2 2017.
Full Year Guidance
Full year production guidance of metal in concentrate remains unchanged at 2.35 – 2.40 million ounces.
Q1 2017 Q1 2017
vs. vs.
Platinum Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Produced platinum
(000 troy oz) 571.9 610.0 619.1 585.7 567.0 1% (6)%
Owned mined 324.6 386.8 468.3 443.5 439.1 (26)% (16)%
Mogalakwena 111.9 103.4 100.7 98.8 109.0 3% 8%
Amandelbult 97.1 121.1 128.3 106.2 110.9 (12)% (20)%
Unki 18.9 19.9 18.2 17.8 18.6 2% (5)%
Independently
managed mines(1) 59.0 60.1 64.9 66.8 60.9 (3)% (2)%
Union 37.7 38.1 37.7 41.2 34.3 10% (1)%
Rustenburg(2) - 44.2 118.1 110.8 104.3 (100)% (100)%
Other(3) - - 0.4 1.9 1.1 (100)% -
Purchase of concentrate 247.3 223.2 150.8 142.2 127.9 93% 11%
Independently
managed mines(1) 123.7 129.3 142.2 136.4 124.2 - (4)%
Third party
purchase of
concentrate(2) 123.6 93.9 8.6 5.8 3.7 3241% 32%
Refined production
Platinum (000 troy oz) 576.9 631.6 694.6 747.6 260.8 121% (9)%
Palladium (000 troy oz) 353.4 397.4 412.9 472.3 181.6 95% (11)%
Rhodium (000 troy oz) 73.7 92.2 86.8 90.7 47.7 55% (20)%
Gold (000 troy oz) 24.7 33.9 24.1 22.3 27.9 (11)% (27)%
Nickel (000 tonnes) 5.1 6.2 7.1 6.4 5.7 (11)% (18)%
Copper (000 tonnes) 3.2 3.3 3.8 3.7 3.3 (3)% (3)%
4E Built-up head grade
(g/tonne milled)(4) 3.47 3.41 3.19 3.00 3.11 12% 2%
Platinum sales volumes -
own mined and purchase
of concentrate 518.8 606.5 588.0 808.4 412.8 26% (14)%
(1) Independently managed mines include the joint venture operations, Mototolo, Modikwa and Kroondal
and the associates, Bokoni and BRPM.
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016. From this date production from
Rustenburg is included within third party purchase of concentrate (POC).
(3) Other includes Twickenham.
(4) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
COPPER
Q1 2017 Q1 2017
vs. vs.
Copper Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Collahuasi (44% share) t 57,700 51,100 13% 58,600 (2)%
Los Bronces t 75,800 85,200 (11)% 74,300 2%
El Soldado t 9,100 10,200 (11)% 13,700 (34)%
Total Copper t 142,600 146,500 (3)% 146,600 (3)%
(1) Copper production shown on a contained metal basis.
Copper – Copper production decreased by 3% to 142,600 tonnes.
At Collahuasi, attributable production increased by 13% to 57,700 tonnes, driven by higher grades and
continued improvements in plant performance. Adverse weather conditions impacted mining operations,
however plant throughput levels were maintained through the feed of stockpiled material.
Production from Los Bronces decreased by 11% to 75,800 tonnes, although 2% higher compared to the prior
quarter, with expected lower grades and increased ore hardness affecting throughput. In addition,
planned major maintenance took place at both processing plants in the quarter.
El Soldado production decreased by 11% to 9,100 tonnes driven by the temporary suspension of mining
operations from 18 February following the regulator’s decision to not approve the mine plan update,
which resulted in ~3,000 tonnes of lost production in Q1 2017. Engagement continues with the
authorities.
Full Year Guidance
Full year production guidance remains unchanged at 570,000 – 600,000 tonnes, of which El Soldado
represents 50,000 – 60,000 tonnes.
Copper (tonnes) on a Q1 2017 Q1 2017
contained metal basis vs. vs.
unless stated otherwise(1) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 13,803,300 20,335,200 17,131,800 15,277,400 14,858,200 (7)% (32)%
Ore processed - Sulphide 12,336,400 12,302,700 12,522,100 12,479,200 12,102,800 2% -
Ore grade processed - Sulphide
(% TCu)(2) 1.24 1.29 1.23 1.21 1.15 8% (4)%
Production - Copper cathode 100 700 800 1,400 1,900 (95)% (86)%
Production - Copper in concentrate 131,000 132,400 128,900 126,300 114,200 15% (1)%
Total copper production for Collahuasi 131,100 133,100 129,700 127,700 116,100 13% (2)%
Anglo American’s share of copper
production for Collahuasi(3) 57,700 58,600 57,000 56,200 51,100 13% (2)%
Anglo American Sur 84,900 88,000 82,800 88,000 95,400 (11)% (4)%
Los Bronces mine(4) 75,800 74,300 72,100 75,600 85,200 (11)% 2%
Ore mined 13,448,400 13,196,500 13,947,400 13,477,900 10,487,900 28% 2%
Marginal ore mined 11,461,400 8,445,700 6,192,800 6,148,500 13,402,300 (14)% 36%
Ore processed – Sulphide 11,877,400 11,562,500 11,511,700 12,567,500 12,055,300 (1)% 3%
Ore grade processed - Sulphide (% TCu) 0.69 0.69 0.65 0.62 0.74 (7)% (1)%
Production - Copper cathode 8,900 8,600 8,800 8,900 9,700 (8)% 3%
Production - Copper in concentrate 66,900 65,700 63,300 66,700 75,500 (11)% 2%
El Soldado mine(4) 9,100 13,700 10,700 12,400 10,200 (11)% (34)%
Ore mined 905,500 2,069,800 1,678,300 2,143,000 1,448,000 (37)% (56)%
Ore processed - Sulphide 1,797,600 1,833,900 1,553,200 1,741,200 1,836,100 (2)% (2)%
Ore grade processed - Sulphide (% TCu) 0.65 0.90 0.86 0.89 0.75 (13)% (28)%
Production - Copper in concentrate 9,100 13,700 10,700 12,400 10,200 (11)% (34)%
Chagres Smelter(4)
Ore smelted 31,300 25,900 35,500 36,500 35,900 (13)% 21%
Production 30,300 25,400 34,700 35,500 35,200 (14)% 19%
Total Copper segment copper production 216,000 221,100 212,500 215,700 211,500 2% (2)%
Total Attributable copper production(5) 142,600 146,600 139,800 144,200 146,500 (3)% (3)%
Total Attributable payable copper production 137,500 141,300 135,000 139,200 141,600 (3)% (3)%
Total Attributable sales volumes 115,300 161,400 135,400 143,500 137,500 (16)% (29)%
Total Attributable payable sales volumes 111,200 155,700 130,700 138,500 133,000 (16)% (29)%
Third party sales(6) 9,800 20,100 26,000 6,700 9,200 7% (51)%
(1) Excludes Anglo American Platinum’s copper production.
(2) TCu = total copper.
(3) Anglo American’s share of Collahuasi production is 44%.
(4) Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at 100% as
Anglo American consolidates Anglo American Sur.
(5) Difference between total copper production and attributable copper production arises from
Anglo American’s 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
IRON ORE AND MANGANESE
Q1 2017 Q1 2017
vs. vs.
Iron Ore and Magnesium Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Iron ore – Kumba 000 t 10,473 8,925 17% 11,928 (12)%
Iron ore – Minas-Rio(1) 000 t 4,342 3,349 30% 4,855 (11)%
Manganese ore(2) 000 t 823 776 6% 804 2%
Manganese alloys(3) 000 t 31 32 (2)% 37 (18)%
(1) Wet basis.
(2) Saleable production.
(3) Production includes medium carbon ferro-manganese.
Kumba Iron Ore – Iron ore production increased by 17% to 10.5 million tonnes.
Sishen produced 7.7 million tonnes, a 31% increase driven by improved mining productivity resulting in
higher plant throughput. As expected, production decreased by 10% compared to the previous quarter as
Q4 2016 benefitted from greater access to low strip ratio ore. Waste removal of 33.9 million tonnes, in
line with Q1 2016, was hampered by higher than expected rainfall during the quarter but the run rates
improved in the latter part of Q1 2017 to levels required to meet full year guidance of 150-160 million
tonnes.
Kolomela production increased by 3% to 2.8 million tonnes, due to higher throughput. Waste removal
increased by 32% to 10.1 million tonnes in support of production growth. Going forward, waste removal
run rates are expected to improve to meet full year guidance for 2017 of 50-55 million tonnes.
Export sales increased by 7% to 10.1 million tonnes. Total finished product stocks were
3.2 million tonnes, compared with 3.5 million tonnes at 31 December 2016, in line with optimum level
of ~3 million tonnes.
Full Year Guidance
Full year production guidance remains unchanged at 40 – 42 million tonnes.
Iron Ore Brazil – Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis)
as the operation continued to ramp-up to its current operating capacity. Production decreased by 11%
compared to Q4 2016 due to expected lower grades, and the impact of higher rainfall at the start of the
rainy season. After the Step 3 licences have been secured, expected in late 2018, the operation is
expected to be in a position to produce at its nameplate capacity of 26.5 million tonnes (wet basis)
per year.
Full Year Guidance
Full year production guidance remains unchanged at 16-18 million tonnes (wet basis).
Manganese ore – Manganese ore production increased by 6% to 823,000 tonnes, mainly as a result of
opportunistic sales of South African concentrate and the use of trucking to access export opportunities
in response to favourable market conditions. Ore production from the Australian operations was broadly
in line with Q1 2016.
Manganese alloy – Manganese alloy production was broadly in line with Q1 2016 at 31,000 tonnes.
The South African Manganese operations continue to operate only one of four furnaces.
Q1 2017 Q1 2017
vs. vs.
Iron Ore and Manganese (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Kumba Iron Ore 10,472,600 11,927,900 11,759,900 8,863,600 8,924,500 17% (12)%
By product:
Lump 6,978,800 7,812,000 7,598,500 5,721,300 5,669,700 23% (11)%
Fines 3,493,800 4,115,900 4,161,400 3,142,300 3,254,800 7% (15)%
By mine:
Sishen 7,678,900 8,489,900 8,348,700 5,699,600 5,841,800 31% (10)%
Kolomela 2,793,700 3,438,000 3,411,200 3,164,000 2,713,100 3% (19)%
Thabazimbi - - - - 369,600 - -
Kumba sales volumes
Export iron ore 10,053,000 10,611,400 10,343,200 8,729,700 9,376,100 7% (5)%
Domestic iron ore 832,700 612,700 706,900 936,000 1,167,700 (29)% 36%
Minas-Rio production
Pellet feed (wet basis) 4,341,700 4,855,300 4,452,400 3,483,800 3,349,400 30% (11)%
Minas-Rio sales volumes
Export – pellet feed (wet basis) 4,256,500 4,761,800 4,510,400 3,223,900 3,714,400 15% (11)%
Samancor
Manganese ore(1) 823,100 804,200 761,700 791,300 775,900 6% 2%
Manganese alloys(1)(2) 31,500 37,100 38,900 29,700 32,100 (2)% (15)%
Samancor sales volumes
Manganese ore(3) 836,000 805,000 757,400 813,300 850,700 (2)% 4%
Manganese alloys 34,400 31,600 49,200 46,400 42,800 (20)% 9%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
(3) Comparatives have been restated.
COAL
Q1 2017 Q1 2017
vs. vs.
Coal Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Australia – excluding 2016 divestments(1)
Metallurgical – Export 000 t 5,242 4,098 28% 5,360 (2)%
Thermal – Export 000 t 479 805 (40)% 595 (20)%
South Africa
Thermal export – Primary(2) 000 t 4,059 3,842 6% 4,229 (4)%
Thermal export and domestic –
Secondary(3) 000 t 978 779 26% 927 6%
Thermal domestic – Eskom 000 t 6,374 6,392 - 7,515 (15)%
Thermal domestic – Isibonelo(4) 000 t 896 1,160 (23)% 1,038 (14)%
Colombia
Thermal - Export 000 t 2,782 2,610 7% 2,801 (1)%
(1) Excludes production from Foxleigh, which was sold on 30 August 2016, and Callide, which was sold
on 31 October 2016.
(2) Thermal export – Primary is export quality product. Comparatives have been restated to align with
current presentation.
(3) Thermal export and domestic – Secondary is lower quality product that can be sold into either the
export or domestic markets. Comparatives have been restated to align with current presentation.
In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
Australia – Export metallurgical coal production increased by 28% to 5.2 million tonnes due to a
longwall move at Moranbah in Q1 2016 and production ramping up at Grosvenor.
Australian export thermal coal production decreased by 40% to 0.5 million tonnes as Drayton ceased
mining activities in October 2016 following the New South Wales Planning Assessment Commission’s
recommendation not to approve the Drayton South Project.
Production was impacted by Cyclone Debbie with production losses in the last week of March. Mining
activities have now restarted at all operations. The impact on the rail network has been more material,
and is still being assessed. It is expected that this will impact Q2 sales volumes.
South Africa – Primary and secondary coal production increased by 9% to 5.0 million tonnes due to
productivity improvements at most mines.
The sale of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was
announced on 10 April, and is expected to complete by the end of 2017. These mines produced
5.7 million tonnes in Q1 2017.
Domestic – (Isibonelo) thermal coal production decreased by 23% to 0.9 million tonnes due to a dragline
fire which occurred during Q4 2016.
Colombia – Production increased by 7% to 2.8 million tonnes, through productivity gains.
Full Year Guidance
Full year production guidance for export metallurgical coal from Australia remains unchanged at
19 - 21 million tonnes.
Full year production guidance for export thermal coal from South Africa and Colombia remains unchanged
at 29 - 31 million tonnes.
Q1 2017 Q1 2017
vs. vs.
Coal (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Australia (all export)(1) 5,721,400 5,955,100 5,923,500 5,935,700 4,902,200 17% (4)%
Metallurgical – Coking 4,747,300 4,496,900 4,326,600 3,997,500 3,378,900 40% 6%
Metallurgical – PCI 495,100 862,900 741,300 923,300 718,800 (31)% (43)%
Thermal 479,000 595,300 855,600 1,014,900 804,500 (40)% (20)%
South Africa 12,307,300 13,708,600 14,690,700 13,188,800 12,171,800 1% (10)%
Thermal export – Primary(2) 4,058,500 4,229,400 4,480,800 4,425,600 3,841,600 6% (4)%
Thermal export and domestic –
Secondary(3) 978,200 926,900 1,009,900 972,700 778,600 26% 6%
Thermal domestic – Eskom 6,374,300 7,514,700 8,083,900 6,708,700 6,392,000 - (15)%
Thermal domestic – Isibonelo(4) 896,300 1,037,600 1,116,100 1,081,800 1,159,600 (23)% (14)%
Colombia
Thermal – Export 2,781,700 2,800,600 2,927,800 2,329,500 2,610,000 7% (1)%
Total coal production 20,810,400 22,464,300 23,542,000 21,454,000 19,684,000 6% (7)%
Sales volumes
Australia
Metallurgical – Export(5) 4,947,400 4,926,900 5,223,100 4,836,700 4,228,900 17% -
Thermal – Export 473,200 699,000 862,000 1,118,800 697,900 (32)% (32)%
South Africa
Thermal – Export 4,693,300 5,825,200 4,159,300 4,744,000 4,343,200 8% (19)%
Thermal – Other domestic 394,300 485,100 389,700 341,600 368,600 7% (19)%
Thermal domestic – Eskom 6,359,200 7,288,500 7,871,900 6,577,500 6,246,400 2% (13)%
Thermal domestic - Isibonelo 964,600 1,168,900 1,260,800 1,268,100 1,213,600 (21)% (17)%
Third party sales 1,567,800 694,600 2,181,800 1,608,600 1,566,700 - 126%
Colombia
Thermal - Export 2,646,300 2,722,300 2,905,100 2,843,800 2,339,000 13% (3)%
(1) Comparatives have been restated to exclude production from Foxleigh, which was sold on
30 August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export – Primary is export quality product. Comparatives have been restated to align with
current presentation.
(3) Thermal export and domestic – Secondary is lower quality product that can be sold into either the
export or domestic markets. Comparatives have been restated to align with current presentation.
In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(5) Includes both hard coking coal and PCI sales volumes.
Q1 2017 Q1 2017
vs. vs.
Coal by mine (tonnes) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Australia
Capcoal (incl. Grasstree) 1,785,400 1,230,200 1,637,300 2,205,400 1,760,000 1% 45%
Dawson 1,092,100 1,273,000 1,185,900 1,143,800 1,006,000 9% (14)%
Drayton - 82,300 317,100 418,200 349,900 (100)% (100)%
Grosvenor 709,800 539,100 685,700 331,200 203,000 250% 32%
Jellinbah 718,000 882,100 820,200 821,600 758,400 (5)% (19)%
Moranbah North 1,416,100 1,948,400 1,277,300 1,015,500 824,900 72% (27)%
5,721,400 5,955,100 5,923,500 5,935,700 4,902,200 17% (4)%
South Africa
Goedehoop 1,222,100 1,134,200 1,286,500 1,266,600 1,001,300 22% 8%
Greenside 1,004,800 1,036,900 1,111,400 990,700 806,300 25% (3)%
Zibulo 1,439,400 1,407,200 1,571,800 1,638,600 1,390,000 4% 2%
Khwezela(1) 1,596,100 2,230,000 2,137,100 1,849,000 1,969,600 (19)% (28)%
Mafube 441,400 435,400 506,000 438,500 379,100 16% 1%
New Vaal 3,414,300 3,994,800 4,350,500 4,027,700 3,521,800 (3)% (15)%
New Denmark 954,400 773,200 777,300 392,600 604,300 58% 23%
Kriel 1,338,500 1,659,400 1,834,000 1,503,300 1,339,800 - (19)%
Isibonelo 896,300 1,037,500 1,116,100 1,081,800 1,159,600 (23)% (14)%
12,307,300 13,708,600 14,690,700 13,188,800 12,171,800 1% (10)%
Colombia
Carbones del Cerrejón 2,781,700 2,800,600 2,927,800 2,329,500 2,610,000 7% (1)%
Total Coal production 20,810,400 22,464,300 23,542,000 21,454,000 19,684,000 6% (7)%
(1) The merger of Kleinkopje and Landau.
NICKEL
Q1 2017 Q1 2017
vs. vs.
Nickel Q1 2017 Q1 2016 Q1 2016 Q4 2016 Q4 2016
Nickel t 9,900 11,200 (12)% 10,900 (9)%
Nickel – Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto’s electric furnaces.
Full Year Guidance
As a consequence, full year production guidance has been revised to 43,000 – 45,000 tonnes (previously ~45,000 tonnes).
Q1 2017 Q1 2017
Nickel (tonnes) vs. vs.
unless stated otherwise(1) Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q1 2016 Q4 2016
Barro Alto
Ore mined 1,023,500 364,300 974,100 835,300 457,000 124% 181%
Ore processed 523,900 579,800 610,000 569,200 598,100 (12)% (10)%
Ore grade processed - % Ni 1.70 1.77 1.76 1.76 1.77 (4)% (4)%
Production 7,800 8,800 9,000 8,800 8,900 (12)% (11)%
Codemin
Ore mined - - - 6,800 - - -
Ore processed 143,600 142,900 144,000 151,300 151,400 (5)% 0%
Ore grade processed - % Ni 1.65 1.73 1.72 1.72 1.68 (2)% (5)%
Production 2,100 2,100 2,300 2,300 2,300 (9)% 0%
Total Nickel segment nickel production 9,900 10,900 11,300 11,100 11,200 (12)% (9)%
Sales volumes 10,400 11,400 11,600 11,100 10,800 (4)% (9)%
(1) Excludes Anglo American Platinum’s nickel production.
EXPLORATION AND EVALUATION
Exploration and evaluation expenditure for the quarter increased by 9% to $50 million. Exploration
expenditure for the quarter was $20 million, a 31% decrease, whilst evaluation expenditure was
$30 million, a 76% increase.
NOTE
This Production Report for the first quarter ended 31 March 2017 is unaudited.
Note:
Production figures are sometimes more precise than the rounded numbers shown in the commentary of this
report. The percentage change will reflect the percentage change using the production figures shown in
the Production Summary of this report.
Forward-looking statements:
This contains certain forward looking statements which involve risk and uncertainty because they relate
to events and depend on circumstances that occur in the future. There are a number of factors that could
cause actual results or developments to differ materially from those expressed or implied by these
forward looking statements.
For further information, please contact:
Media
UK
James Wyatt-Tilby
james.wyatt-tilby@angloamerican.com
Tel: +44 (0)20 7968 8759
Marcelo Esquivel
marcelo.esquivel@angloamerican.com
Tel: +44 (0)20 7968 8891
South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
Investors
UK
Paul Galloway
paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8718
Trevor Dyer
trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8992
Sheena Jethwa
sheena.jethwa@angloamerican.com
Tel: +44 (0)20 7968 8680
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive
mining operations and undeveloped resources provides the raw materials to meet the growing consumer-
driven demands of the world’s developed and maturing economies. Our people are at the heart of our
business. It is our people who use the latest technologies to find new resources, plan and build our
mines and who mine, process and move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), platinum and other precious metals, copper,
nickel, iron ore and coal - we are the custodians of what are precious natural resources. We work
together with our key partners and stakeholders to unlock the long-term value that those resources
represent for our shareholders and for the communities and countries in which we operate – creating
sustainable value and making a real difference.
www.angloamerican.com
Registered office UK Registrars South African Transfer Secretaries
20 Carlton House Terrace Equiniti Link Market Services South Africa (Pty) Limited
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England Lancing Braamfontein 2001
West Sussex South Africa
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England
Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
24 April 2017
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