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ANGLO AMERICAN PLC - Anglo American plc Production Report for the third quarter ended 30 September 2012

Release Date: 25/10/2012 08:20
Code(s): AGL     PDF:  
Wrap Text
Anglo American plc Production Report for the third quarter ended 30 September 2012

    Anglo American plc (“the Company”)
    Incorporated in the United Kingdom
    (Registration number: 3564138)
    Short name: Anglo
    Share code: AGL
    ISIN number: GB00B1XZS820


    25 October 2012


    Anglo American plc
    Production Report for the third quarter ended 30 September 2012


    Overview

    -     Solid operational performance with production increases across five of the seven
          commodities
    -     Kumba Iron Ore production increased by 14% to a record 12.5 million tonnes, driven by faster
          than planned ramp up of Kolomela mine. Kolomela is expected to produce at least
          7 million tonnes in 2012
    -     Export metallurgical coal production increased by 12% to 4.5 million tonnes
    -     Export thermal coal production from South Africa increased by 10% to 4.6 million tonnes
    -     Copper production(1) increased by 12% to 157,300 tonnes, reflecting the full ramp up of the
          Los Bronces expansion project
    -     Nickel production(2) increased by 38% to 9,000 tonnes, with production from Barro Alto
          offsetting the lack of production from Loma de Níquel in Venezuela
    -     Refined platinum production of 649,000 ounces was flat, while equivalent refined platinum
          production decreased by 6% to 626,300 ounces. Production and costs were adversely
          impacted by illegal industrial action which caused production loss of 42,000 ounces of
          equivalent refined platinum in the quarter
    -     Diamond production decreased by 31% to 6.4 million carats, largely in response to market
          conditions and the Jwaneng slope failure
    -     On 16 August 2012, Anglo American completed the acquisition of a 40% shareholding in De
          Beers from CHL Holdings Limited for a cash consideration of $5.2 billion
    -     On 24 August 2012, Anglo American completed the sale of a 25.4% shareholding in Anglo
          American Sur to a Codelco and Mitsui joint venture company for a cash consideration of $2.0
          billion
    -     During the quarter, Anglo American issued corporate bonds with a US dollar equivalent value
          of $2.3 billion in the US and European markets

    The Interim Management Statement for the third quarter ended 30 September 2012 is
    unaudited. Preliminary Results for the full year to 31 December 2012 will be announced on
    15 February 2013. This report forms Anglo American plc’s Interim Management Statement for
    the purpose of the UK Listing Authority’s Disclosure and Transparency Rules.

    (1)     Copper production from the Copper business unit
    (2)     Nickel production from the Nickel business unit


IRON ORE & MANGANESE

                                                    Q3 2012            Q3 2012                     YTD 2012
                                    Q3       Q3                 Q2                YTD      YTD
 Iron Ore and Manganese                               vs.                vs.                         vs.
                                   2012     2011               2012               2012     2011
                                                    Q3 2011            Q2 2012                     YTD 2011

 Iron ore                 000 t   12,497   10,953     14%     11,449      9%     34,053   30,107      13%
 Manganese ore            000 t     858      808       6%       826       4%      2,501    2,065      21%
 Manganese alloys         000 t      52       78     (33%)       30      72%       137      223      (38%)


Iron Ore – Record quarterly Kumba Iron Ore production of 12.5 Mt was achieved, owing to faster
than planned ramp up of Kolomela mine. Kolomela’s production of 2.5 Mt was 44% higher than
Q2 2012, with the mine reaching design capacity in July 2012, ahead of schedule. The mine is
expected to produce at least 7 Mt in 2012, with full production of 9 Mtpa in 2013.

Production from Sishen mine of 9.8 Mt declined by 7%, as mining feedstock and quality
constraints continued to impact plant throughput. However, an improvement plan has been
implemented and, as a result, production increased by 0.3 Mt quarter on quarter.

In October 2012, Sishen mine’s production was affected by an illegal strike. The strike started on
3 October, with production suspended on 4 October when striking miners blocked access to the
pit, creating an unsafe environment for mining operations. The strikers were removed from the
mine on 16 October and management regained possession of all the heavy mining equipment
from the strikers. Following the removal of the strikers from the mine, production is being ramped
up. As at 24 October, Sishen mine had lost approximately 2.2 Mt of finished product from the
strike.

The Minas-Rio iron ore project is progressing and, during the quarter, two legal stoppages were
lifted, allowing important activities to continue at the beneficiation plant site. If all the current
impediments are cleared by the end of 2012 and there are no major unexpected interventions, it
is anticipated that first ore on ship will be delivered in the second half of 2014. Capital
expenditure for the completion of this project was expected to be approximately $5.8 billion,
however the quantum of a further increase is currently under review.

Manganese Ore – Consistently strong operating performance and improved plant availability at
GEMCO (Australia) contributed to record ore production in the quarter – a 6% increase to
858,000 tonnes.

Manganese Alloys – The resumption of production at TEMCO (Australia) in July 2012 led to a
substantial increase in alloy production quarter on quarter to 52,000 tonnes. The year to date
decline in alloy production reflected the permanent closure of energy-intensive silico-manganese
production at Metalloys (South Africa) in January 2012.




                                                                                                         2
METALLURGICAL COAL

                                                Q3 2012           Q3 2012                     YTD 2012
                                 Q3      Q3                Q2               YTD      YTD
 Metallurgical Coal                               vs.               vs.                         vs.
                                2012    2011              2012              2012     2011
                                                Q3 2011           Q2 2012                     YTD 2011

 Export metallurgical   000 t   4,496   4,015     12%     4,846     (7%)    13,084   10,129      29%
 Thermal                000 t   3,399   3,978    (15%)    3,286      3%      9,256   10,068      (8%)


Metallurgical Coal – Production of metallurgical coal increased by 12% to 4.5 Mt. This was driven
by productivity improvements and the timing of longwall moves (one move in the quarter versus
two moves in Q3 2011) in Australia, and a 59% increase in production from Peace River in Canada.
Production was 7% lower quarter on quarter due to the scheduled longwall move at Grasstree
mine in Australia.

Thermal coal production decreased by 15% to 3.4 Mt in response to weaker market conditions.

The brownfield Grosvenor metallurgical coal project in Queensland, Australia is progressing in
line with current plan. Engineering is 60% complete, earthworks on site commenced in July and
drift construction began in October.



THERMAL COAL

                                                Q3 2012           Q3 2012                     YTD 2012
                                 Q3      Q3                Q2               YTD      YTD
 Thermal Coal                                     vs.               vs.                         vs.
                                2012    2011              2012              2012     2011
                                                Q3 2011           Q2 2012                     YTD 2011

RSA export thermal      000 t   4,555   4,146      10%    4,224      8%     12,473   12,091       3%
Colombia export thermal 000 t   2,829   2,852     (1%)    3,105     (9%)     8,887    7,999      11%
RSA domestic - Eskom    000 t   9,057   8,751       3%    8,326      9%     25,146   25,809      (3%)
RSA domestic - other    000 t   1,531   1,129      36%    1,577     (3%)     4,699    3,690      27%


Thermal Coal – Export thermal coal production in South Africa increased by 10% to 4.6 Mt due
to the ramp-up of Zibulo and the industrial action that affected operations in Q3 2011. This was
partly offset by the planned closure of high-cost sections at Goedehoop and Greenside, as well
as a pit closure at Kleinkopje. Cerrejón production was in line, despite the rescheduling of the
annual shiploader maintenance carried out in the quarter.




                                                                                                    3
COPPER

                                                  Q3 2012             Q3 2012                       YTD 2012
                                Q3       Q3                   Q2                 YTD       YTD
 Copper                                             vs.                 vs.                           vs.
                               2012     2011                 2012                2012      2011
                                                  Q3 2011             Q2 2012                       YTD 2011

 Copper                 t     157,300   139,900      12%    161,100      (2%)   486,800   429,000        13%


Copper – Production increased by 12% to 157,300 tonnes. Los Bronces production was 84%
higher, despite continued lower ore grades and recoveries, with the Los Bronces expansion
project contributing 48,900 tonnes. The new processing plant continues to ramp up and achieved
design throughput capacity in August and September 2012. Production at Los Bronces is
expected to continue to be impacted by higher waste stripping and lower ore grades.

Production at Collahuasi decreased by 40%. Output had been expected to decrease as a
consequence of planned lower ore grades from current phases in the mine plan, but this was
compounded by a combination of lower recoveries, an extended ball mill outage and a number of
other plant reliability challenges. The joint shareholder intervention initiated in July 2012 to
address these issues is expected to start delivering improvements from Q4 2012 onwards.



NICKEL

                                                  Q3 2012             Q3 2012                       YTD 2012
                                Q3        Q3                 Q2                  YTD       YTD
 Nickel                                             vs.                 vs.                           vs.
                               2012      2011               2012                 2012      2011
                                                  Q3 2011             Q2 2012                       YTD 2011

 Nickel                 t       9,000    6,500      38%     10,900     (17%)    31,900    19,200        66%


Nickel – Production increased by 38% to 9,000 tonnes due to the ramp-up of Barro Alto, partially
offset by lower production at Loma de Níquel, which stopped production in September 2012.

Barro Alto delivered 4,700 tonnes in the quarter and 16,700 tonnes year to date. Production in
the quarter was impacted by the planned shut-down of both kilns. On 15 October, Kiln 1’s electric
furnace experienced a sidewall collapse, which will impact the production outlook. Barro Alto
remains in ramp-up phase and earnings therefore are capitalised.

Loma de Níquel’s three remaining concessions (after cancellation of 13 other concessions) are
due to expire on 10 November 2012 and, if there is no development in this situation in the
coming weeks, then there will be no further production contribution from this operation. Anglo
American is continuing to engage with stakeholders in Venezuela.




                                                                                                          4
PLATINUM

                                                Q3 2012           Q3 2012                     YTD 2012
                                Q3       Q3                Q2                YTD      YTD
 Platinum                                         vs.               vs.                         vs.
                               2012     2011              2012               2012     2011
                                                Q3 2011           Q2 2012                     YTD 2011
 Refined
 Platinum            000 oz     649      647         -     623       4%      1,675    1,820      (8%)
 Palladium           000 oz     392      376       4%      356      10%       983     1,038      (5%)
 Rhodium             000 oz      91       75      20%       75      21%       220      241       (9%)
 Copper                   t    2,700    3,100   (13%)     3,300   (18%)      8,900    9,900     (10%)
 Nickel                   t    3,700    4,900   (24%)     5,400   (31%)     13,800   15,200      (9%)
 Gold                000 oz      39       17     125%       24      60%        87       77       12%
 Equivalent
 Platinum            000 oz     626      667     (6%)      584       7%      1,803    1,827      (1%)


Platinum – Equivalent refined platinum production decreased by 6% owing to lower production
at Union North and South, Mogalakwena, Tumela and Siphumelele mines. Production at Union
North and South mines declined by 23% and 26% respectively due to lower grades caused by a
decline in Merensky ore mined, a fall of ground and a shortage of stopeable face. Mogalakwena
production was lower as a result of the breakdown of the primary crusher at the North
concentrator and lower head grade.

Platinum production at Rustenburg (Bathopele, Khuseleka, Khomanani, Siphumelele and
Thembelani mines) was 148,100 ounces for the quarter, a decrease of 0.3%, and up 2% quarter
on quarter despite the loss of 42,000 ounces of platinum due to illegal strike action in July and
September.

Anglo American Platinum has been experiencing illegal industrial strike action at its Rustenburg,
Union and Amandelbult mining operations since 18 September 2012. This followed an initial
safety suspension on 12 September. The strike was initially contained to the Rustenburg mining
operations, but has since commenced at Union (North and South) and Amandelbult (Tumela and
Dishaba) operations as of the first week of October.

As a result of the illegal industrial action and the initial safety suspension, equivalent refined
platinum production losses, including from joint ventures and associates, amounted to 42,000
ounces in Q3 2012 and an additional 96,300 ounces from 1 to 24 October 2012. The production
losses have also resulted in an additional 8% increase in unit costs for Q3 2012, due to the
retained fixed cost base. The average loss of platinum production is 4,500 ounces per day (3,800
ounces for own mines). As a result, and dependent on the resolution of the illegal strike action,
the expected refined platinum production for 2012 is reduced to between 2.2 and 2.4 million
ounces. Given the retained fixed cost base, and as result of the reduction in production, the 2012
unit cost is expected to be R15,500 to R16,000 per equivalent refined platinum ounce. In line
with the lower production levels and in light of continued adverse market conditions, planned total
capital expenditure for 2012 has been reduced further to R6.5 billion.

Palladium, Rhodium and Nickel – Refined production of palladium and rhodium increased by
4% and 20% respectively, while nickel decreased by 24% due to technical challenges in the new
tank house at the base metal refinery. Palladium and rhodium variances are a result of a different
source mix from operations and different pipeline processing times for each metal.




                                                                                                  5
DIAMONDS

                                                       Q3 2012           Q3 2012                    YTD 2012
                                     Q3       Q3                  Q2               YTD     YTD
 Diamonds                                                vs.               vs.                        vs.
                                    2012     2011                2012              2012    2011
                                                       Q3 2011           Q2 2012                    YTD 2011

 Diamonds           000 carats       6,375    9,305      (31%)   7,241    (12%) 19,824     24,839     (20%)

Diamonds – Production decreased by 31% to 6.4 million carats, largely in response to market
conditions and the Jwaneng slope failure in June 2012 which temporarily prevented access to
the main ore body. Market conditions reflect a combination of a softening in the polished
diamond market and a credit constrained rough diamond market. The current operational focus is
on maintenance, waste stripping and safety improvements, ensuring the mines are well
positioned to respond to an increase in demand once market conditions improve.



OTHER MINERALS & INDUSTRIAL

                                                       Q3 2012           Q3 2012                    YTD 2012
                                     Q3        Q3                 Q2               YTD     YTD
 Other Mining and Industrial                             vs.               vs.                        vs.
                                    2012      2011               2012              2012    2011
                                                       Q3 2011           Q2 2012                    YTD 2011

 Phosphates                    t   292,300   284,500      3% 271,500         8% 810,700 786,000          3%
 Niobium                       t     1,100     1,100         -   1,200      (8%)   3,400    2,900       17%
 Amapá                   000 t       1,530     1,230     25%     1,470       4%    4,570    3,550       29%


Phosphates – Production increased by 3% to 292,300 tonnes due to increased capacity of the
plants through business improvements and change in product mix.

Niobium – Production was in line, though marginally lower than Q2 2012, owing to the lower
quality of ore feed, which is expected to continue until the end of the year.

Amapá – Production increased by 25% to 1.5 Mt, primarily due to higher mass recovery in the
beneficiation plant as a result of increased plant stability. Output was 4% higher than Q2 2012,
principally driven by increased productivity following improved weather conditions from August
2012 onwards.




                                                                                                          6
FINANCING

During the quarter, the Group issued corporate bonds with a US dollar equivalent value of $2.3
billion in the US and European markets. These comprised:

     ?   $750 million 2.625% senior notes due 2017
     ?   $600 million 4.125% senior notes due 2022
     ?   €750 million 2.500% guaranteed notes due 2018 issued under the Euro Medium Term
         Note (EMTN) programme


EXPLORATION & EVALUATION

Exploration and evaluation operating expenditure for the nine months ended 30 September 2012
was $526 million, 47% higher than the same period of 2011.

Exploration expenditure was $136 million for the nine months ended 30 September 2012 was
62% higher than the same period of 2011. Expenditure was primarily focused on opportunities in
Australia, Brazil, Canada, Chile, Finland, Peru and several countries in Africa.

Evaluation expenditure was $390 million for the nine months ended 30 September 2012 reflected
ongoing project and technical studies, particularly in the Metallurgical Coal, Copper and Iron Ore
businesses. Metallurgical Coal expenditure was concentrated primarily at the Moranbah South
and Grosvenor 2 brownfield projects in Australia. The Copper business’ evaluation expenditure
was focused on Michiquillay (Peru) and Pebble (Alaska) projects.

Anglo American recognises the longer term value of exploration and evaluation activities.
However, in light of the current macro-economic environment and following recent successes,
expenditure is being moderated in 2012 and 2013.


SIGNIFICANT TRANSACTIONS

On 16 August 2012, Anglo American completed the acquisition of a 40% shareholding in De
Beers from CHL Holdings Limited (representing the Oppenheimer family interests), thereby
increasing Anglo American’s shareholding in De Beers to 85%. Under the terms of the November
2011 agreement between Anglo American and CHL, Anglo American paid a total cash
consideration of $5.2 billion, comprising the agreed purchase price of $5.1 billion and a number
of adjustments as provided for under the agreement.

On 24 August 2012, Anglo American completed the sale of a 25.4% shareholding in Anglo
American Sur to a Codelco and Mitsui joint venture company controlled by Codelco for a
combined total cash consideration of $2.0 billion.




                                                                                                7
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’
joint ventures which are quoted on a 100% basis.


                                                                                                       % Change                                   % Change
                                                                                                  Q3 2012    Q3 2012                              YTD 2012
                                 Q3 2012      Q2 2012      Q1 2012      Q4 2011      Q3 2011        vs.        vs.      YTD 2012     YTD 2011        vs.
                                                                                                  Q2 2012    Q3 2011                              YTD 2011

Iron Ore & Manganese segment (tonnes)

Kumba Iron Ore

Lump                              7,689,900    7,045,500    6,294,100    6,914,800    6,745,900        9%        14%    21,029,500   18,530,300        13%

Fines                             4,807,000    4,403,700    3,812,400    4,245,400    4,207,600        9%        14%    13,023,100   11,577,100        12%

Total Kumba production           12,496,900   11,449,200   10,106,500   11,160,200   10,953,500        9%        14%    34,052,600   30,107,400        13%

Kumba Sales volumes

RSA export iron ore               9,958,600   10,597,600   10,121,200    9,600,400    9,167,100       (6%)        9%    30,677,400   27,530,700        11%

RSA domestic iron ore             1,162,400    1,368,000    1,319,500    1,241,800    1,537,700      (15%)      (24%)    3,849,900    5,199,300       (26%)

Samancor

Manganese ore (1)                  858,400      826,400      816,200      722,500      807,600         4%         6%     2,501,000    2,065,000        21%

Manganese alloys (1) (2)            52,000       30,200       55,000       78,000       77,600        72%       (33%)     137,000      223,000        (38%)

Samancor sales volumes

Manganese ore                      702,400      883,200      794,400      691,600      782,000       (20%)      (10%)    2,380,000    2,255,000         6%

Manganese alloys                    48,000       50,400       71,600       78,400       74,400        (5%)      (35%)     170,000      236,000        (28%)

Metallurgical Coal segment (tonnes) (3)

Export coking coal                3,095,300    3,234,300    2,145,000    2,702,900    2,761,800       (4%)       12%     8,474,600    7,523,800        13%

Export PCI                        1,400,400    1,611,300    1,598,000    1,357,700    1,253,200      (13%)       12%     4,609,700    2,605,300        77%

Total export metallurgical (4)    4,495,700    4,845,600    3,743,000    4,060,600    4,015,000       (7%)       12%    13,084,300   10,129,100        29%

Thermal                           3,398,900    3,286,300    2,570,600    3,358,700    3,978,000        3%       (15%)    9,255,800   10,067,800        (8%)
Weighted average
achieved FOB prices
(US$/t)

Export metallurgical                   188          192          190          234          267        (2%)      (30%)         190          257        (26%)

Export thermal                          96           94          113          103           98         2%        (2%)         100          101               -

Domestic thermal                        36           35           39           34           35         3%         3%           36           35          6%

Sales volumes

Export metallurgical (5)          4,096,800    4,651,500    3,950,700    4,010,900    3,720,500      (12%)       10%    12,699,000    9,972,100        27%

Export thermal                    1,776,300    1,525,400    1,222,100    1,849,900    1,877,500       16%        (5%)    4,523,800    4,424,500         2%

Domestic thermal                  1,817,500    1,698,300    1,484,300    1,853,300    1,843,100        7%        (1%)    5,000,100    5,601,700       (11%)
Production by region:
Australia

Export metallurgical              4,072,700    4,490,900    3,510,100    3,805,000    3,749,300       (9%)        9%    12,073,700    9,448,300        28%

Thermal                           3,398,900    3,286,300    2,570,600    3,358,700    3,978,000        3%       (15%)    9,255,800   10,067,800        (8%)

Total Australia                   7,471,600    7,777,200    6,080,700    7,163,700    7,727,300       (4%)       (3%)   21,329,500   19,516,100         9%

Canada

Export Metallurgical               423,000      354,700      232,900      255,600      265,700        19%        59%     1,010,600     680,800         48%




                                                                                                                                                      8
                                                                                                  % Change                                   % Change
                                                                                             Q3 2012    Q3 2012                              YTD 2012
                           Q3 2012       Q2 2012      Q1 2012      Q4 2011      Q3 2011        vs.        vs.      YTD 2012     YTD 2011        vs.
                                                                                             Q2 2012    Q3 2011                              YTD 2011

Thermal Coal segment (tonnes) (6)

RSA export thermal          4,555,300     4,223,500    3,694,200    4,455,900    4,145,500        8%        10%    12,473,000   12,090,600         3%

Colombia export thermal     2,829,400     3,104,700    2,953,000    2,752,700    2,851,800       (9%)       (1%)    8,887,100    7,999,000        11%

RSA domestic – Eskom        9,056,900     8,326,200    7,762,700    9,487,000    8,751,400        9%         3%    25,145,800   25,809,000        (3%)

RSA domestic – other        1,530,500     1,560,900    1,533,200    1,390,100    1,052,900       (2%)       45%     4,624,600    3,451,500        34%
RSA domestic –
metallurgical                        -      15,700       58,400       84,500       75,600      (100%)     (100%)      74,100      238,900        (69%)
Weighted average
achieved FOB prices
(US$/t)

RSA export thermal                  87          93          104          107          115        (6%)      (24%)          95          118        (19%)

Colombia export thermal             86          90           95           98          103        (4%)      (17%)          90          102        (12%)

RSA domestic thermal                20          21           22           19           22        (5%)       (9%)          21           22         (5%)

Sales volumes

RSA export thermal          4,400,800     3,720,100    4,518,700    5,146,400    4,605,000       18%        (4%)   12,639,600   11,385,700        11%

Colombia export thermal     2,630,300     2,959,600    2,634,000    2,783,700    2,900,600      (11%)       (9%)    8,223,900    7,900,900         4%

RSA domestic thermal       10,468,500     9,909,500    9,447,500   10,842,600    9,901,600        6%         6%    29,825,500   29,293,800         2%
Production by region:
South Africa

Export thermal              4,555,300     4,223,500    3,694,200    4,455,900    4,145,500        8%        10%    12,473,000   12,090,600         3%

RSA domestic - Eskom        9,056,900     8,326,200    7,762,700    9,487,000    8,751,400        9%         3%    25,145,800   25,809,000        (3%)

RSA domestic – other        1,530,500     1,560,900    1,533,200    1,390,100    1,052,900       (2%)       45%     4,624,600    3,451,500        34%
RSA domestic –
metallurgical                        -      15,700       58,400       84,500       75,600      (100%)     (100%)      74,100      238,900        (69%)

Total South Africa         15,142,700    14,126,300   13,048,500   15,417,500   14,025,400        7%         8%    42,317,500   41,590,000         2%

Colombia

Export Thermal              2,829,400     3,104,700    2,953,000    2,752,700    2,851,800       (9%)       (1%)    8,887,100    7,999,000        11%

Coal production by commodity (tonnes)

Metallurgical               4,495,700     4,861,300    3,801,400    4,145,100    4,090,600       (8%)       10%    13,158,400   10,368,000        27%
Thermal excl. RSA
domestic                   10,783,600    10,614,500    9,217,800   10,567,300   10,975,300        2%        (2%)   30,615,900   30,157,400         2%

RSA domestic thermal       10,587,400     9,887,100    9,295,900   10,877,100    9,804,300        7%         8%    29,770,400   29,260,500         2%




                                                                                                                                                  9
                                                                                                       % Change                                      % Change
                                                                                                  Q3 2012    Q3 2012                                 YTD 2012
                               Q3 2012     Q2 2012            Q1 2012     Q4 2011     Q3 2011       vs.        vs.         YTD 2012     YTD 2011        vs.
                                                                                                  Q2 2012    Q3 2011                                 YTD 2011

Copper segment (tonnes) (7)

Collahuasi total production       62,900      68,700             76,700     114,500     104,300       (8%)      (40%)        208,300      338,800        (39%)

Collahuasi attributable
                                  27,700      30,200             33,700      50,500      45,900       (8%)      (40%)         91,600      149,100        (39%)
production (8)
Avg sulphide ore grade
(%)                                  0.7         0.8                0.8         1.0         1.0      (13%)      (30%)             0.8          1.0       (20%)
                     (9)
Los Bronces mine                  87,200      89,800             93,200      72,600      47,400       (3%)       84%         270,200      149,200         81%
Avg sulphide ore grade LB
(%)                                  0.8         0.9                0.9         0.9         0.9      (11%)      (11%)             0.8          0.9       (11%)
Avg sulphide ore grade
LBDP (%)                             0.8         0.8                0.9         0.7         n/a          -         n/a            0.8          n/a         n/a

El Soldado mine (9)               12,500      12,700             13,400      15,400      13,600       (2%)       (8%)         38,600       31,400         23%
Avg sulphide ore grade
(%)                                  0.7         0.8                0.9         0.9         0.9      (13%)      (22%)             0.8          0.8              -

Mantos Blancos mine               14,100      13,300             12,900      17,700      18,300        6%       (23%)         40,300       54,400        (26%)
Avg sulphide ore grade
(%)                                  0.7         0.7                0.6         0.8         0.9          -      (22%)             0.7          1.0       (30%)

Mantoverde mine                   15,800      15,100             15,200      13,800      14,700        5%         7%          46,100       44,900          3%

Avg oxide ore grade (%)              0.7         0.7                0.6         0.6         0.6          -       17%              0.6          0.6              -

Total copper production          192,500     199,600            211,400     234,000     198,300       (4%)       (3%)        603,500      618,700         (2%)
Attributable copper
production (10)                  157,300     161,100            168,400     170,000     139,900       (2%)       12%         486,800      429,000         13%
Attributable sales
volumes                          150,200     160,200            155,200     177,000     154,000       (6%)       (2%)        465,600      431,300          8%

Nickel segment (tonnes) (11)

Codemin                            2,500       2,500              2,100       2,500       2,400          -        4%            7,100        6,900         3%

Loma de Niquel                     1,800       3,000              3,300       3,300       3,000      (40%)      (40%)           8,100      10,100        (20%)

Barro Alto                         4,700       5,400              6,600       4,100       1,100      (13%)      327%          16,700         2,200       659%

Total nickel production            9,000      10,900             12,000       9,900       6,500      (17%)       38%          31,900       19,200         66%

Sales volumes                      7,600      12,600             10,800       6,400       7,000      (40%)        9%          31,000       19,100         62%

Platinum segment

Refined production

Platinum (troy oz)               649,000     623,000            402,800     710,000     646,500        4%              -    1,674,800    1,820,100        (8%)

Palladium (troy oz)              392,100     355,500             35,000     392,700     376,000       10%         4%         982,600     1,038,000        (5%)

Rhodium (troy oz)                 90,500      75,100             53,900      96,800      75,200       21%        20%         219,500      240,800         (9%)

Copper (tonnes)                    2,700       3,300              2,900       2,900      3,100       (18%)      (13%)           8,900        9,900       (10%)

Nickel (tonnes)                    3,700       5,400              4,700       5,100       4,900      (31%)      (24%)         13,800       15,200         (9%)

Gold (troy oz)                    38,500      24,100             24,000      28,000      17,100       60%       125%          86,600       77,100         12%

Equivalent refined

Platinum (troy oz)               626,300     583,600             93,200     583,200     666,800        7%        (6%)       1,803,100    1,826,900        (1%)
4E Built-up head grade
(g/tonne milled)                    3.32        3.09               3.20        3.27        3.35        7%        (1%)            3.20         3.23        (1%)

                                                       (12)
Diamonds segment (diamonds recovered – carats)

Debswana                       4,385,000   5,345,000          4,949,000   4,643,000   6,927,000      (18%)      (37%)      14,679,000   18,247,000       (20%)

Namdeb                           419,000     460,000            318,000     429,000     309,000       (9%)       36%        1,197,000     908,000         32%
De Beers Consolidated
Mines                          1,247,000     964,000            674,000     913,000   1,732,000       29%       (28%)       2,885,000    4,530,000       (36%)

De Beers Canada                  324,000     472,000            267,000     506,000     337,000      (31%)       (4%)       1,063,000    1,154,000        (8%)
Total diamonds
production                     6,375,000   7,241,000          6,208,000   6,491,000   9,305,000      (12%)      (31%)      19,824,000   24,839,000       (20%)




                                                                                                                                                        10
                                                                                                         % Change                                       % Change
                                                                                                    Q3 2012    Q3 2012                                  YTD 2012
                                 Q3 2012      Q2 2012       Q1 2012       Q4 2011       Q3 2011       vs.        vs.          YTD 2012     YTD 2011        vs.
                                                                                                    Q2 2012    Q3 2011                                  YTD 2011

Other Mining and Industrial segment (tonnes) (13)

Phosphates

Copebrás                           292,300      271,500       246,900       274,900       284,500         8%           3%       810,700      786,000          3%

Niobium

Catalão                              1,100         1,200          1,100       1,000         1,100       (8%)              -       3,400        2,900         17%

Amapá (14)

Sinter feed                        519,300      536,700       508,000       404,900       354,500       (3%)          46%      1,564,000     996,100         57%

Pellet feed                        607,800      514,800       560,300       495,300       514,000       18%           18%      1,682,900    1,453,000        16%

Spiral concentrates                407,200      416,500       503,700       366,900       360,900       (2%)          13%      1,327,400    1,105,300        20%

Total Amapá production           1,534,300    1,468,000     1,572,000     1,267,100     1,229,400         5%          25%      4,574,300    3.554.400        29%

Amapá sales volumes              1,422,700    1,278,800     1,443,500     1,374,000     1,452,000       11%           (2%)     4,145,000    3,425,400        21%




(1)        Saleable production
(2)        Production includes medium carbon ferro-manganese
(3)        Includes Peace River Coal, which was reclassified from Other Mining and Industrial to Metallurgical Coal in 2011 to align with internal management
           reporting. Comparatives have been reclassified to align with current presentation
(4)        Within export coking and export PCI coals there are different grades of coal with different weighted average prices compared to benchmark
(5)        Includes both hard coking coal and PCI product sales volumes
(6)        Includes capitalised Zibulo sales of 1,580,700 (export) and 632,200 (domestic) tonnes for the nine months ended 30 September 2012 (Q3 2011:
           701,700 (export) and 276,400 (domestic) tonnes)
(7)        Excludes Platinum copper production
(8)        Anglo American share of attributable production is 44% of total production
(9)        Anglo American previously held 74.5% of AA Sur but, as of 24 August 2012, now holds 50.06%. Production is stated at 100% as Anglo American
           continues to consolidate AA Sur
(10)       Difference between total copper production and attributable copper production is Anglo American’s 44% interest in Collahuasi
(11)       Excludes Anglo American Platinum’s nickel production
(12)       On 16 August 2012 Anglo American completed its acquisition of an additional 40% interest in De Beers increasing Anglo American’s total shareholding
           to 85%. Production data is disclosed on a 100% basis. Post completion of the acquisition, De Beers Consolidated Mines and De Beers Canada are
           fully consolidated subsidiaries and Debswana and Namdeb are joint ventures proportionately consolidated at 19.2% (post implied taxes) and 50%
           respectively. The Diamond Trading Company and Diamdel sell a significant portion of total production on behalf of operations based on contractual
           agreements in place
(13)       Excludes Tarmac and Scaw Metals
(14)       Amapá was reclassified from Iron Ore Brazil to Other Mining and Industrial in H1 2012 to align with internal management reporting. Comparatives have
           been reclassified to align with current presentation




Note:

Production figures are sometimes more precise than the rounded numbers shown in this report.
The percentage change will reflect the percentage change using the unrounded production
figures shown in this report.




                                                                                                                                                           11
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                                                     Investors

 UK                                                        UK
 James Wyatt-Tilby                                         Leng Lau
 Tel: +44 (0)20 7968 8759                                  Tel: +44 (0)20 7968 8540

                                                           Caroline Crampton
                                                           Tel: +44 (0)20 7968 2192

                                                           Sarah McNally
                                                           Tel: +44 (0)20 7968 8747



Sponsor: UBS South Africa (Pty) Ltd


Notes to editors:
Anglo American 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 bulk commodities – iron ore and manganese, metallurgical coal and thermal
coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global
leader in both platinum and diamonds. 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, extensive pipeline of growth projects and exploration activities span southern Africa,
South America, Australia, North America, Asia and Europe. www.angloamerican.com




                                                                                               12

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