Wrap Text
Interim Management Statement for the first quarter ended 31 March 2013
Anglo American plc (“the Company”)
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
19 April 2013
Anglo American plc
Interim Management Statement for the first quarter ended 31 March 2013
Overview
* Kumba Iron Ore production increased by 2% to 10.3 Mt, reflecting higher production at
Kolomela
* Metallurgical Coal achieved record first quarter export metallurgical coal production,
which increased by 23% to 4.6 Mt, as productivity improvements more than offset
the impact of excessive rainfall
* Export thermal coal production from South Africa increased by 6% to 3.9 Mt. Cerrejón
production decreased by 49% to 1.5 Mt owing to the strike during the quarter
* Copper production(1) increased by 1% to 170,400 tonnes, with increased production at
Los Bronces offset by lower production at Collahuasi due to a planned shutdown
* Nickel production(2) decreased by 48% to 6,200 tonnes owing to the permanent
cessation of production and mining activities at Loma de Níquel at the end of 2012
and stoppages at Barro Alto
* Platinum equivalent refined production decreased by 2% to 583,000 ounces following
intermittent strike action
* Diamond production increased by 3% to 6.4 million carats due to favourable ore grade,
offset by lower production from Orapa due to maintenance
* Phosphates production increased by 15% to 284,400 tonnes driven by a significant
increase in productivity
This Interim Management Statement for the first quarter ended 31 March 2013 is
unaudited. Interim Results for the six months to 30 June 2013 will be announced on 26
July 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 AND MANGANESE
Q1 2013 Q1 2013
Q1 Q1 Q4
Iron Ore and Manganese vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Iron ore 000 t 10,335 10,106 2% 9,013 15%
Manganese ore 000 t 803 816 (2)% 847 (5)%
Manganese alloys 000 t 57 55 4% 61 (6)%
Iron Ore – Production from Kumba Iron Ore increased by 2% to 10.3 Mt due to a strong
performance at Kolomela. Output increased by 15% compared to the previous quarter as
production rates at Sishen continued to recover following the unprotected strike in the fourth
quarter of 2012, in addition to higher output from Kolomela. Kolomela, which is on track to
produce at annual design capacity of 9 Mt in 2013, produced 2.7 Mt for the quarter, an increase
of 77%.
Export sales volumes for the quarter decreased by 2% to 9.9 Mt, as a result of lower stockpiles
due to the unprotected strike in the fourth quarter of 2012. Finished product stockpile levels
amounted to 3.3 Mt, a decrease of 15% compared to Q1 2012.
The Minas-Rio iron ore project in Brazil continued to progress in line with the target of achieving
first ore on ship by the end of 2014. During the quarter, two further authorisations were obtained
relating to the archaeological survey at the tailings dam and the works necessary for the
commencement of pre-stripping at the mine site. Activities at the beneficiation plant, pipeline,
filtration plant and port continued as planned.
Manganese ore – Production decreased by 2% to 0.8 Mt, whilst marginally lower than the prior
year the quarter benefited from an improvement in plant availability at GEMCO in Australia.
Manganese alloy – Production increased by 4% to 57,300 tonnes due to higher production from
South Africa.
METALLURGICAL COAL
Q1 2013 Q1 2013
Q1 Q1 Q4
Metallurgical Coal vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Metallurgical – Export 000 t 4,615 3,743 23% 4,580 1%
Thermal – Export 000 t 1,494 983 52% 1,690 (12)%
Thermal – Domestic 000 t 1,073 1,588 (32)% 2,025 (47)%
Metallurgical Coal – Metallurgical Coal achieved record first quarter production of 7.2 Mt due to
record export metallurgical coal production which increased by 23% to 4.6 Mt. Moranbah,
Foxleigh and Peace River Coal achieved record production through productivity improvements.
This was partially offset by excessive rainfall causing flooding throughout the quarter which had a
significant impact on production and waste removal at the Australian open cut operations,
Dawson and Callide operations were the worst affected, as rain also caused the 43 day closure
of the Moura rail line, affecting shipments from the Port of Gladstone. The floods and rail closure
are expected to put pressure on production and unit costs for the remainder of the year.
Export thermal coal production increased by 52% driven by a number of productivity
improvements at the Drayton operation in New South Wales, Australia.
The greenfield Grosvenor metallurgical coal project in Queensland, Australia continues to
progress, with all permits and licences in place. Construction has commenced on site, with the
access road complete and bulk earthworks under way. Longwall production is expected to be
achieved in 2016.
THERMAL COAL
Q1 2013 Q1 2013
Q1 Q1 Q4
Thermal Coal vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
South Africa
Thermal - Export 000 t 3,909 3,694 6% 4,659 (16)%
Thermal - Domestic (Eskom) 000 t 8,130 7,763 5% 8,561 (5)%
Thermal - Domestic (non-Eskom) 000 t 1,519 1,533 (1)% 1,595 (5)%
Colombia
Thermal – Export 000 t 1,512 2,953 (49)% 2,662 (43)%
Thermal Coal – Export thermal coal production in South Africa increased by 6% to 3.9 Mt due to
higher production at Zibulo after a reconfiguration of the wash plant to produce additional higher
margin export coal, as well as improved machine availability at Mafube.
Domestic thermal coal production increased by 4% to 9.6 Mt, owing to improved longwall
production at New Denmark.
Cerrejón’s production decreased by 49%, largely due to a 32 day strike in February and March
that preceded a successful resolution of a new three year wage agreement.
COPPER
Q1 2013 Q1 2013
Q1 Q1 Q4
Copper vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Copper t 170,400 168,400 1% 172,900 (1)%
Copper – Copper production increased by 1% to 170,400 tonnes. Production from Los Bronces
increased by 5% to 98,300 tonnes, with higher throughput at both plants offset by expected lower
ore grades. This higher throughput also resulted in a 3% production increase compared to Q4
2012.
Collahuasi’s production decreased by 13%, owing to lower grades and the commencement of a
45 day planned shutdown of SAG Mill 3 on 21 March. During the quarter, SAG Mill 3 operated at
reduced capacity ahead of the planned shutdown. This mill is responsible for approximately 70%
of plant throughput at Collahuasi.
Production at El Soldado increased by 16%, as a result of expected higher grades and improved
recoveries.
NICKEL
Q1 2013 Q1 2013
Q1 Q1 Q4
Nickel vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Nickel t 6,200 12,000 (48)% 7,400 (16)%
Nickel – Production decreased by 48% to 6,200 tonnes, mainly owing to the permanent cessation
of production and mining activities at Loma de Níquel in Venezuela in November 2012. Loma de
Níquel produced 3,300 tonnes in Q1 2012. Barro Alto produced 4,100 tonnes, a decrease of 38%,
driven by the planned stoppage of line 2 for the electric furnace sidewall rebuild and the
subsequent heat-up being impacted by a metal run-out. This has now been repaired and heat-up is
nearing completion. Line 1 has been operating around nominal capacity since late March 2013.
Full run rate is targeted during 2013.
Anglo American ceased production at Loma de Níquel in early September 2012, and the three
remaining mining concessions expired in November 2012.
PLATINUM
Q1 2013 Q1 2013
Q1 Q1 Q4
Platinum vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Refined
Platinum 000 oz 439 403 9% 704 (38)%
Palladium 000 oz 264 235 12% 413 (36)%
Rhodium 000 oz 57 54 5% 91 (38)%
Copper t 2,000 2,900 (31)% 2,500 (20)%
Nickel t 3,300 4,700 (30)% 3,900 (15)%
Gold 000 oz 23 24 (3)% 19 25%
Equivalent
Platinum 000 oz 583 593 (2)% 416 40%
Platinum – Equivalent refined platinum production decreased by 2% to 583,000 ounces, largely
owing to the intermittent illegal strike action at the underground mines in South Africa, lower
production at Unki in Zimbabwe and the suspension of the non-managed pooled and shared
Marikana operation in Q2 2012.
Equivalent refined platinum production at the Rustenburg mines was flat, while Amandelbult and
Union reported decreases in output of 15%. Production at Unki decreased by 19% as a result of
lower head grade and a decline in tonnes milled due to a depletion of pre-production stockpiles.
This was partly offset by a 31% increase in production at the Western Limb Tailings Retreatment
plant largely driven by improved head grades and recoveries. At Mogalakwena, output increased
by 1% to 87,000 ounces because of increased throughput at the concentrators.
Refined platinum production increased by 9% to 439,000 ounces owing to the impact of the
prolonged shutdown at the converting plant in the first quarter of 2012.
Palladium, Rhodium and Nickel – Refined production of palladium and rhodium increased by
12% and 6% respectively, while nickel decreased by 30%. Palladium and rhodium variances are
a result of a different source mix from operations and different pipeline processing times for each
metal. Nickel production was affected by ensuing technical challenges following the failure of
titanium cathode strips in the new nickel tank house during the second half of 2012. In addition,
delays were experienced in starting nickelic hydroxide production following an extended
shutdown in February 2013. The base metals refinery was running steadily by the end of the
quarter.
DIAMONDS
Q1 2013 Q1 2013
Q1 Q1 Q4
Diamonds vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Diamonds 000 carats 6,365 6,208 3% 8,051 (21)%
Diamonds – Production increased by 3% to 6.4 million carats, largely reflecting improved grades,
offset by lower production due to planned plant maintenance at Orapa in Botswana.
Production decreased by 21% compared with the prior quarter, with Venetia in South Africa
disrupted by excessive rainfall causing flooding in the pit. The impact was partially mitigated
through the processing of ore stockpiles, with the shortfall expected to be recovered in H2 2013.
Jwaneng in Botswana is continuing to recover from the impact of its slope failure incident in June
2012 and excessive rainfall at the end of 2012.
OTHER MINING AND INDUSTRIAL
Q1 2013 Q1 2013
Q1 Q1 Q4
Other Mining and Industrial vs. vs.
2013 2012 2012
Q1 2012 Q4 2012
Phosphates t 284,400 246,900 15% 302,300 (6)%
Niobium t 1,100 1,100 - 1,000 10%
Phosphates – Production increased by 15% due to improved performance following optimised
maintenance scheduling, increased plant availability and enhanced performance at the
acidulation and granulation plants.
Niobium – Production was flat at 1,100 tonnes, with declining ore quality offset by improvements
to both throughput and recoveries. Development of the Fresh Rock project to extend the life of
Boa Vista, is on-going and on schedule.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for Q1 2013 totalled $103 million, a decrease of 26%.
Exploration expenditure in Q1 2013 was $48 million, an increase of $16, million largely driven by
the inclusion of fully consolidated De Beers exploration costs following the acquisition of an
additional 40% interest in De Beers in the second half of 2012. Expenditure was primarily
focused on opportunities in Argentina, Australia, Brazil, Canada, Chile, Finland (Sakatti deposit),
Indonesia and several countries in Africa.
Evaluation expenditure for the quarter was $55 million, a decrease of 48%. Evaluation
expenditure is mainly focused on iron ore, metallurgical coal, copper and diamonds.
SIGNIFICANT TRANSACTIONS
On 28 March 2013 Anglo American announced its decision not to proceed with the acquisition of
a 58.9% interest in the Revuboè metallurgical coal project in Mozambique. As announced on 24
July 2012, the transaction was subject to a number of conditions. Those conditions were not
satisfied and Anglo American decided not to proceed with the transaction. Anglo American
expects to continue with its objective of establishing a position in the emerging metallurgical coal
basin in Mozambique.
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
Q1 2013 Q1 2013
Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 vs. vs.
Q4 2012 Q1 2012
Iron Ore & Manganese segment (tonnes)
Kumba Iron Ore
Lump 6,190,300 5,551,000 7,689,900 7,045,500 6,294,100 12% (2)%
Fines 4,144,700 3,461,500 4,807,000 4,403,700 3,812,400 20% 9%
Total Kumba production 10,335,000 9,012,500 12,496,900 11,449,200 10,106,500 15% 2%
Kumba sales volumes
RSA export iron ore 9,945,100 8,979,600 9,958,600 10,597,600 10,121,200 11% (2)%
RSA domestic iron ore 882,000 833,100 1,162,400 1,368,000 1,319,500 6% (33)%
Samancor
Manganese ore (1) 803,400 846,800 858,400 826,400 816,200 (5)% (2)%
Manganese alloys (1) (2) 57,300 61,200 52,000 30,200 55,000 (6)% 4%
Samancor sales volumes
Manganese ore 864,300 714,800 820,000 883,200 794,400 21% 9%
Manganese alloys 63,100 65,600 48,000 50,800 71,600 (4)% (12)%
Metallurgical Coal segment (tonnes)
Metallurgical - Export coking coal 3,324,800 3,387,000 3,095,300 3,234,300 2,145,000 (2)% 55%
Metallurgical - Export PCI 1,289,800 1,193,000 1,400,400 1,611,300 1,598,000 8% (19)%
Total Metallurgical – Export(3) 4,614,600 4,580,000 4,495,700 4,845,600 3,743,000 1% 23%
Thermal 2,566,800 3,714,700 3,398,900 3,286,300 2,570,600 (31)% -
Weighted average achieved FOB prices
(US$/t)
Metallurgical – Export 148 146 188 192 190 1% (23)%
Thermal – Export 90 83 96 94 113 8% (20)%
Thermal – Domestic 37 37 36 35 39 - (5)%
Sales volumes
Metallurgical - Export (4) 4,336,200 4,714,000 4,096,800 4,651,500 3,950,700 (8)% 10%
Thermal – Export 1,506,600 1,518,800 1,776,300 1,525,400 1,222,100 (1)% 23%
Thermal – Domestic 1,109,100 1,920,800 1,817,500 1,698,300 1,484,300 (42)% (25)%
Production by region:
Australia
Metallurgical – Export 4,151,100 4,213,700 4,072,700 4,490,900 3,510,100 (1)% 18%
Thermal 2,566,800 3,714,700 3,398,900 3,286,300 2,570,600 (31)% -
Total Australia 6,717,900 7,928,400 7,471,600 7,777,200 6,080,700 (15)% 10%
Canada
Metallurgical – Export 463,500 366,300 423,000 354,700 232,900 27% 99%
% Change
Q1 2013 Q1 2013
Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 vs. vs.
Q4 2012 Q1 2012
Thermal Coal segment (tonnes)
South Africa
Thermal - Export 3,909,200 4,659,100 4,555,300 4,223,500 3,694,200 (16)% 6%
Thermal - Domestic (Eskom) 8,129,800 8,560,600 9,056,900 8,326,200 7,762,700 (5)% 5%
Thermal - Domestic (Non-Eskom) 1,518,800 1,594,500 1,530,500 1,560,900 1,533,200 (5)% (1)%
Metallurgical - Domestic - - - 15,700 58,400 - (100)%
Colombia
Thermal - Export 1,512,000 2,661,700 2,829,400 3,104,700 2,953,000 (43)% (49)%
Weighted average achieved FOB prices
(US$/t)
South Africa
Thermal - Export 83 84 87 93 104 (1)% (20)%
Thermal - Domestic 20 21 20 21 22 (5)% (9)%
Colombia
Thermal - Export 77 84 86 90 95 (8)% (19)%
Sales volumes
South Africa
Thermal - Export 3,914,900 4,511,000 4,400,800 3,720,100 4,518,700 (13)% (13)%
Thermal - Domestic 9,565,800 10,192,500 10,468,500 9,909,500 9,447,500 (6)% 1%
Colombia
Thermal - Export 1,773,500 2,701,700 2,630,300 2,959,600 2,634,000 (34)% (33)%
Production by region:
South Africa
Thermal - Export 3,909,200 4,659,100 4,555,300 4,223,500 3,694,200 (16)% 6%
Thermal – Domestic (Eskom) 8,129,800 8,560,600 9,056,900 8,326,200 7,762,700 (5)% 5%
Thermal – Domestic (non-Eskom) 1,518,800 1,594,500 1,530,500 1,560,900 1,533,200 (5)% (1)%
Metallurgical - Domestic - - - 15,700 58,400 - (100)%
Total South Africa 13,557,800 14,814,200 15,142,700 14,126,300 13,048,500 (8)% 4%
Colombia
Thermal - Export 1,512,000 2,661,700 2,829,400 3,104,700 2,953,000 (43)% (49)%
% Change
Q1 2013 Q1 2013
Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 vs. vs.
Q4 2012 Q1 2012
Copper segment (tonnes) (5)
Collahuasi total production 66,900 73,800 62,900 68,700 76,700 (9)% (13)%
(6) (13)%
Collahuasi attributable production 29,400 32,500 27,700 30,200 33,700 (10)%
Avg sulphide grade (%TCu) (7) 0.75 0.74 0.70 0.79 0.80 1% (6)%
5%
Los Bronces mine (8) 98,300 95,100 87,200 89,800 93,200 3%
Avg sulphide grade LB (%TCu) 0.80 0.85 0.79 0.86 0.89 (6)% (10)%
Avg sulphide grade LBDP (%TCu) 0.79 0.83 0.79 0.83 0.90 (5)% (12)%
(8) 16%
El Soldado mine 15,600 15,200 12,500 12,700 13,400 3%
Avg sulphide grade (% TCu) 1.03 0.94 0.72 0.78 0.89 10% 16%
Mantos Blancos mine 12,400 13,900 14,100 13,300 12,900 (11)% (4)%
(9)
Avg sulphide grade (% ICu) 0.54 0.59 0.71 0.69 0.58 (8)% (7)%
Mantoverde mine 14,700 16,200 15,800 15,100 15,200 (9)% (3)%
Avg oxide grade (% ASCu) (10) 0.61 0.63 0.65 0.68 0.58 (3)% 5%
Total copper production 207,900 214,200 192,500 199,600 211,400 (3)% (2)%
(11)
Attributable copper production 170,400 172,900 157,300 161,100 168,400 (1)% 1%
Attributable sales volumes 160,300 177,900 150,200 160,200 155,200 (10)% 3%
Nickel segment (tonnes) (12)
Codemin 2,100 2,500 2,500 2,500 2,100 (16)% -
Loma de Niquel - - 1,800 3,000 3,300 - (100)%
Barro Alto 4,100 4,900 4,700 5,400 6,600 (16)% (38)%
Total nickel production 6,200 7,400 9,000 10,900 12,000 (16)% (48)%
Sales volumes 7,100 9,000 7,600 12,600 10,800 (21)% (34)%
Platinum segment
Refined production
Platinum (troy oz) 439,200 703,800 649,000 623,000 402,800 (38)% 9%
Palladium (troy oz) 263,600 413,300 392,100 355,500 235,000 (36)% 12%
Rhodium (troy oz) 56,500 91,200 90,500 75,100 53,900 (38)% 5%
Copper (tonnes) 2,000 2,500 2,700 3,300 2,900 (20)% (31)%
Nickel (tonnes) 3,300 3,900 3,700 5,400 4,700 (15)% (30)%
Gold (troy oz) 23,300 18,600 38,500 24,100 24,000 25% (3)%
Equivalent refined
Platinum (troy oz) 583,000 416,000 626,300 583,600 593,200 40% (2)%
4E built-up head grade (g/tonne milled 3.22 3.22 3.32 3.09 3.20 - 1%
(13)
Diamonds segment (diamonds recovered – carats)
Debswana 4,535,000 5,537,000 4,385,000 5,345,000 4,949,000 (18)% (8)%
Namdeb 429,000 470,000 419,000 460,000 318,000 (9)% 35%
De Beers Consolidated Mines 1,002,000 1,547,000 1,247,000 964,000 674,000 (35)% 49%
De Beers Canada 398,000 497,000 324,000 472,000 267,000 (20)% 49%
Total diamonds production 6,364,000 8,051,000 6,375,000 7,241,000 6,208,000 (21)% 3%
% Change
Q1 2013 Q1 2013
Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 vs. vs.
Q4 2012 Q1 2012
Other Mining and Industrial segment (tonnes) (14)
Phosphates 284,400 302,300 292,300 271,500 246,900 (6)% 15%
Niobium 1,100 1,000 1,100 1,200 1,100 10% -
(1) Saleable production
(2) Production includes medium carbon ferro-manganese
(3) Within export coking and export PCI coals there are different grades of coal with different weighted average prices compared to benchmark
(4) Includes both hard coking coal and PCI product sales volumes
(5) Excludes Anglo American Platinum’s copper production
(6) Anglo American share of attributable Collahuasi production is 44% of total production
(7) TCu = total copper
(8) Anglo American previously held 74.5% of AA Sur, as of 24 August 2012, holds 50.1%. Production is stated at 100% as Anglo American continues to
consolidate AA Sur
(9) ICu = insoluble copper (total copper less acid soluble copper)
(10) ASCu = acid soluble copper
(11) Difference between total copper production and attributable copper production is Anglo American’s 44% interest in Collahuasi
(12) Excludes Anglo American Platinum’s nickel production
(13) Production data for De Beers is disclosed on a 100% basis
(14) Excludes Amapá, Tarmac and Scaw Metals
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 Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8540
Emily Blyth Caroline Crampton
Tel: +44 (0)20 7968 8481 Tel: +44 (0)20 7968 2192
South Africa Sarah McNally
Pranill Ramchander Tel: +44 (0)20 7968 8747
Tel: +27 (0)11 638 2592
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
Sponsor: UBS South Africa (Pty) Ltd
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