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AGL - Anglo American plc - Interim Management Statement - Production Report
for the first quarter ended 31 March 2011
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Interim Management Statement
Production Report for the first quarter ended 31 March 2011
Overview
- Platinum refined production increased by 19% to 532,900 ounces, while
equivalent refined production decreased by 5%
- Nickel (1) production increased by 27% to 6,100 tonnes
- Copper production decreased by 14% to 138,800 tonnes, mainly due to
abnormally high rainfall and expected lower grades at Collahuasi, and
scheduled maintenance and expected lower grades at Los Bronces
- Full year production expected to be marginally higher than 2010,
based on the commissioning of the Los Bronces expansion project in
Q4
- Thermal coal production from South Africa and Colombia increased by 2% to
16.0 million tonnes
- Metallurgical coal production from the Australian operations decreased by
37% to 2.1 million tonnes, due to severe flooding in Queensland
- Iron ore production decreased by 19% to 9.9 million tonnes mainly due to
mining constraints caused by wet pit conditions, resulting from excessive
rainfall at all of Kumba`s operations
- Diamond production increased by 5% to 7.4 million carats
- Barro Alto nickel project produced first metal on schedule in March 2011
- 41,000 tpa average over first five years of full production
- Los Bronces expansion project on track to deliver first production in Q4
2011
- Increased production to average 400 ktpa over first 10 years (490
ktpa over first three years)
- Minas-Rio iron ore project commenced civil works for the beneficiation
plant
- 26.5 Mtpa production, with first ore on ship expected in second half
of 2013
- Sales of Lisheen and Black Mountain Mining zinc interests completed in
February 2011
- Announcement to combine UK businesses of Tarmac and Lafarge to leading UK
construction materials company
Interim Results for the half year to 30 June 2011 will be announced on
29 July 2011
This report forms Anglo American plc`s Interim Management Statement
for the purpose of the UK Listing Authority`s Disclosure and
Transparency Rules.
Platinum Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 Vs 2010 Vs
Q1 2010 Q4 2010
Refined
Platinum 000 oz 532,900 446,700 19% 872,400 (39)%
Palladium 000 oz 288,200 247,000 17% 502,600 (43)%
Rhodium 000 oz 85,700 61,600 39% 111,400 (23)%
Nickel t 4,800 4,400 9% 5,000 (4)%
Equivalent
refined
Platinum 000 oz 567,600 594,700 (5)% 640,100 (11)%
Platinum - Refined production increased by 19% to 532,900 ounces, despite
lower input from mining operations. Equivalent refined platinum production
from mining and purchasing activities was 5% lower at 567,600 ounces. The
reduction was mainly due to lower production at Platinum`s own mines,
particularly Bathopele, Tumela and Dishaba, resulting from a number of safety
related stoppages, and lower production at JV mines. This was partly offset by
production from Unki, which continues to ramp up, and Khuseleka 2 shaft, which
was reopened during Q1 2011 following care and maintenance closure in 2009.
Palladium, Rhodium & Nickel - Refined production of palladium, rhodium and
nickel increased by 17%, 39% and 9% respectively. The increases vary due to a
different source mix from operations and different pipeline processing times
for each metal.
Copper Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Copper t 138,800 160,800 (14)% 154,400 (10)%
Copper - Production decreased by 14% to 138,800 tonnes mainly due to
abnormally high rainfall in the quarter and expected lower grades at
Collahuasi. Production at Los Bronces was also impacted by anticipated lower
ore grades and scheduled plant maintenance in March, although partly offset by
improved mill throughput resulting from processing softer ore.
The Los Bronces expansion project remains on schedule for first production in
Q4 2011. The expected capital expenditure for the project has been revised to
$2.8 billion, mainly due to the impact of the earthquake in 2010 and
geotechnical difficulties encountered.
At Collahuasi, the phase 2 expansion project to increase concentrator
throughput to 160,000 tonnes of ore per day, an annual average production
increment of 20,000 tonnes per year of copper over the estimated life of mine,
was approved in March 2011. The expansion is expected to be commissioned in
the first half of 2013.
Nickel Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Nickel t 6,100 4,800 27% 4,400 39%
Nickel - Production increased by 27% to 6,100 tonnes, primarily due to an
increase in production at Loma de Niquel which operated with only one furnace
for part of Q1 2010 and was also constrained by power rationing imposed by the
Venezuelan government in 2010.
First metal from the $1.9 billion Barro Alto nickel project was produced on
schedule in March 2011. The new nickel plant will reach full production
capacity in the second half of 2012 and will average 41,000 tpa over its first
five years of full production.
Iron Ore and Manganese Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Iron ore 000 t 9,945 12,329 (19)% 11,808 (16)%
Manganese ore 000 t 541 684 (21)% 732 (26)%
Manganese alloys 000 t 69 68 1% 77 (10)%
Attributable sales volumes
RSA export iron ore 000 t 8,557 9,315 (8)% 8,977 (5)%
RSA domestic iron ore 000 t 1,826 1,617 13% 1,722 6%
South American export iron ore 000 t 1,063 1,019 4% 1,254 (15)%
Iron ore - Total production of 9.9 Mt was 19% lower than Q1 2010 and 16% lower
than Q4 2010.
Sishen Mine`s production was 8.5 Mt, a decrease of 22%, mainly due to
excessive rainfall in the quarter, with twice the annual rainfall recorded
during the first two months of 2011. Production decreased by 25% or 1.9 Mt
from the Dense Medium Separation plant and 16% or 0.5 Mt from the Jig plant,
as mining equipment was unable to safely access the mining areas and wet
feedstock material caused blockages in the plant.
Production from Thabazimbi Mine decreased by 49% to 0.2 Mt, mainly due to the
heavy rainfall which hampered access to the main pit and planned reductions as
the mine nears the end of its life, while supply to ArcelorMittal SA was
supplemented from finished product stockpiles.
Export sales volumes from Sishen Mine reached 8.6 Mt during the quarter, a
decrease of 0.8 Mt. The export sales performance has been maintained by
depleting higher brought forward stock levels. Volumes railed on the Sishen-
Saldanha Iron Ore Export Channel, which included finished product stock at
Sishen Mine, increased by 3% to 9.7 Mt.
Kumba`s 2011 production is expected to be flat compared with 2010 levels, as
previously indicated. Despite the decline in operational performance during
the first quarter, focused plans are in place to recover the shortfall in
production by the end of 2011.
The 9 Mtpa Kolomela iron ore project remains on budget and on schedule to
achieve initial production at the end of the first half of 2012, ramping up to
full capacity in 2013.
In Brazil, record daily pellet feed production of 9.1 kt was achieved at Amapa
in the quarter, following a review and revision of production processes.
The Minas-Rio iron ore project commenced civil works for the beneficiation
plant and mobilised the contractor for tailings dam construction in March
2011. Completion and commissioning of the mine and plant is expected to take
between 27 and 30 months, with first ore on ship forecast in the second half
of 2013.
Manganese Ore - Production decreased by 21% due to a voluntary shut down of
the Wessels and Mamatwan mines in South Africa for four weeks following a
fatality at Wessels mine in February, and concentrator down time at Gemco in
Australia that lasted for four days.
Manganese Alloys - Production was in line with Q1 2010 but decreased by 10%
compared to Q4 2010 due to lower steel demand and higher alloy stockpiles in
China.
Metallurgical Coal Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Production
Export metallurgical 000 t 2,056 3,282 (37)% 3,651 (44)%
Thermal 000 t 3,002 3,350 (10)% 3,728 (19)%
Weighted average
achieved FOB prices
Export metallurgical US$/t 210 131 60% 201 4%
Export thermal US$/t 102 79 29% 90 13%
Domestic thermal US$/t 35 31 13% 32 9%
Attributable sales
volumes
Export metallurgical 000 t 2,056 3,257 (37)% 3,501 (41)%
Export thermal 000 t 947 1,317 (28)% 1,602 (41)%
Domestic thermal 000 t 1,892 1,949 (3)% 2,250 (16)%
Metallurgical Coal - Production of metallurgical coal decreased by 37% to 2.1
Mt due to the record rainfall and subsequent flooding events experienced at
the Queensland operations in late 2010 and during the first quarter.
Production of thermal coal from mines in Australia was also impacted by the
adverse weather conditions and decreased by 10%.
All operations are producing again with a ramp-up to full production expected
in the second quarter. A number of initiatives are in progress for the
remainder of 2011 to mitigate the production shortfall from Q1.
Thermal Coal Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Production
Thermal 000 t 7,689 7,418 4% 8,201 (6)%
Eskom 000 t 8,275 8,212 1% 9,485 (13)%
Metallurgical 000 t 80 111 (28)% 103 (22)%
Weighted average
achieved FOB prices
RSA export thermal US$/t 117 78 50% 84 39%
RSA domestic thermal US$/t 22 18 22% 20 10%
Cerrejon export thermal US$/t 98 69 42% 79 24%
Attributable sales
volumes
RSA export thermal 000 t 3,568 3,932 (9)% 4,358 (18)%
RSA domestic thermal 000 t 1,083 1,190 (9)% 1,316 (18)%
Cerrejon export thermal 000 t 2,147 2,425 (11)% 2,672 (20)%
Thermal Coal - Production of thermal coal, from the Group`s South African and
Colombian operations, increased mainly due to the continuing ramp up of the
Zibulo and Mafube operations. Cerrejon delivered a strong production
performance despite disruptions due to labour negotiations and planned
maintenance.
Weighted average RSA export thermal prices achieved were markedly stronger
reflecting favourable market conditions and Thermal Coal`s move towards full
price indexation.
Sales volumes were impacted by low stock levels at Richards Bay Coal Terminal
as a consequence of Transnet Freight Rail`s performance, with multiple
derailments affecting stock build up.
Diamonds Q1 Q1 Q1 2011 Q4 Q1 2011
2011 2010 vs. 2010 vs.
Q1 2010 Q4 2010
Diamond 7,396 7,012 5% 8,532 (13)%
s 000 Carats
Diamonds - Production increased 5% to 7.4 million carats while, compared to Q4
2010, production was 13% lower due to production constraints, including
seasonal rainfall which disrupted operations in southern Africa, and grade
variability.
Production summary
The figures below include the entire output of consolidated entities and the
Group`s attributable share of joint ventures, joint arrangements and
associates where applicable, except for De Beers which is quoted on a 100%
basis.
% Change
Q1 Q1
2011 2011
Q1 Q4 Q3 Q2 Q1 vs. vs.
2011 2010 2010 2010 2010 Q4 Q1
2010 2010
Platinum
segment
Platinum (troy 532,90 872,4 697,0 553,8 446,7 (39)% 19%
ounces) 0 00 00 00 00
Palladium (troy 288,20 502,6 404,5 294,4 247,0 (43)% 17%
ounces) 0 00 00 00 00
Rhodium (troy 85,700 111,4 88,60 67,30 61,60 (23)% 39%
ounces) 00 0 0 0
Nickel (tonnes) 4,800 5,000 4,300 4,800 4,400 (4)% 9%
Equivalent
refined
Platinum (troy 567,60 640,1 648,3 600,9 594,7 (11)% (5)%
ounces) 0 00 00 00 00
Diamonds
segment (De
Beers)
(diamonds
recovered - 000
carats)
Total diamonds 7,396 8,532 9,033 8,420 7,012 (13)% 5%
production for
De Beers
Anglo 3,328 3,839 4,065 3,789 3,155 (13)% 5%
American`s
share of
diamonds
production for
De Beers
Copper segment 138,80 154,4 153,4 154,7 160,8 (10)% (14)%
(tonnes)(1) 0 00 00 00 00
Nickel segment 6,100 4,400 5,700 5,300 4,800 39% 27%
(tonnes)(2)
Iron Ore and
Manganese
segment
(tonnes)
Iron ore 9,944, 11,80 11,81 11,45 12,32 (16)% (19)%
800 7,700 9,200 8,700 8,700
Manganese ore 540,60 731,6 848,8 688,4 684,0 (26)% (21)%
(3) 0 00 00 00 00
Manganese 68,800 76,80 79,60 87,20 68,40 (10)% 1%
alloys (3)(4) 0 0 0 0
Metallurgical
Coal segment
(tonnes)
Metallurgical 2,056, 3,651 3,971 (44)% (37)%
300 ,300 ,000 3,797 3,281
,900 ,600
Thermal 3,002, 3,727 3,413 3,970 3,349 (19)% (10)%
300 ,500 ,000 ,200 ,800
Thermal Coal
segment
(tonnes)(5)
Thermal 7,688, 8,200 8,240 7,813 7,418 (6)% 4%
800 ,700 ,300 ,000 ,100
Eskom 8,275, 9,484 10,43 8,275 8,212 (13)% 1%
000 ,800 1,300 ,300 ,000
Metallurgical 79,500 103,0 111,7 110,4 111,4 (22)% (28)%
00 00 00 00
Other Mining
and Industrial
segment
(tonnes)(6)
Metallurgical 108,40 240,2 226,4 206,7 194,7 (55)% (44)%
coal 0 00 00 00 00
Zinc (7) 22,500 77,30 93,70 91,00 87,70 (71)% (74)%
0 0 0 0
Lead (7) 8,300 18,20 22,20 15,40 15,40 (54)% (46)%
0 0 0 0
South Africa 173,20 151,0 180,0 197,0 182,0 15% (5)%
Steel Products 0 00 00 00 00
Coal production
by commodity
(tonnes)(5)
Metallurgical 2,244, 3,994 4,309 4,115 3,587 (44)% (37)%
200 ,500 ,100 ,000 ,700
Thermal 10,691 11,92 11,65 11,78 10,76 (10)% (1)%
,100 8,200 3,300 3,200 7,900
Eskom 8,275, 9,484 10,43 8,275 8,212 (13)% 1%
000 ,800 1,300 ,300 ,000
(1) Excludes Platinum copper production.
(2) Excludes Platinum nickel production.
(3) Saleable production.
(4) Production includes Medium Carbon Ferro Manganese.
(5) Includes 598 kt (Q4 2010: 726 kt) of capitalised production from Zibulo
(previously Zondagsfontein). The 598 kt includes export thermal coal
production of 427 kt (Q4 2010: 465 kt) and Eskom coal production of 171 kt (Q4
2010: 261 kt). Excludes thermal coal production within the Other Mining and
Industrial segment.
(6) Excludes Tarmac, Copebras and Catalao.
(7) Zinc and lead production related to the Group`s portfolio of zinc assets,
the sales of which completed in December 2010, in respect of Skorpion mine,
and February 2011, in respect of Lisheen mine and Black Mountain Mining
(Proprietary) Limited.
As production figures are sometimes more precise than the rounded numbers
shown in this report, small differences may arise throughout the report
between the summation of quarters and the year to date totals. The percentage
change will reflect the percentage change in the rounded production figures
shown in this report.
Forward looking statements:
This Interim Management Statement 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:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to editors:
Anglo American plc is one of the world`s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Anglo American`s portfolio of mining businesses spans precious
metals and minerals - in which it is a global leader in both platinum and
diamonds; base metals - copper and nickel; and bulk commodities - iron ore,
metallurgical coal and thermal coal. Anglo American is committed to the
highest standards of safety and responsibility across all its businesses and
geographies and to making a sustainable difference in the development of the
communities around its operations. The company`s mining operations and
extensive pipeline of growth projects are located in southern Africa, South
America, Australia, North America and Asia.
www.angloamerican.com
21 April 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 21/04/2011 08:00:25 Supplied by www.sharenet.co.za
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