Wrap Text
Production Report for the third quarter ended 30 September 2021
Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street London EC1N 6RA United Kingdom
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
NEWS RELEASE
21 October 2021
Production Report for the third quarter ended 30 September 2021
Mark Cutifani, Chief Executive of Anglo American, said: "Production is up 2%(1) compared to Q3 of last year, with our
operating levels generally maintained at approximately 95%(2) of normal capacity. The increase in production is led by
planned higher rough diamond production at De Beers, increased production from our Minas-Rio iron ore operation in
Brazil, reflecting the planned pipeline maintenance in Q3 2020, and improved plant performance at our Kumba iron ore
operations in South Africa.
"We are broadly on track to deliver our full year production guidance across all products, while taking the opportunity to tighten up
the guidance for diamonds, copper and iron ore within our current range as we approach the end of the year. Our copper operations
in Chile continue to work hard on mitigating the risk of water availability due to the challenges presented by the longest drought on
record for the region, including through sourcing water that is not suitable for use elsewhere and further increasing water recycling."
Q3 2021 highlights
- Rough diamond production increased by 28%, principally from the Jwaneng and Venetia mines, reflecting planned
higher production in response to the ongoing consumer demand recovery led by the key US and China markets.
- Copper production decreased by 6% due to planned maintenance at Collahuasi, while total year to date production
across all copper operations increased marginally by 1% despite ongoing water availability constraints caused by
record drought conditions in Chile.
- Our Platinum Group Metals (PGMs) operations delivered a 39% increase in refined output, reflecting stable
performance from the ACP Phase A unit.
- Iron ore production increased by 15%, driven primarily by a 22% uplift from Minas-Rio, reflecting the planned
maintenance period in Q3 2020 for routine internal scanning of the pipeline. Kumba production also performed
strongly, increasing by 11% due to improved plant performance.
- At our longwall metallurgical coal operations in Australia, Moranbah has steadily improved as they mined through
challenging geological zones this quarter, and development work at Grosvenor continues to progress, with longwall
mining expected to restart towards the end of the year.
- Primary nickel production increased by 2% over the period and by-product nickel from our PGMs business increased by
20% to 6,000 tonnes.
Production Q3 2021 Q3 2020 % vs. Q3 2020 YTD 2021 YTD 2020 % vs. YTD 2020
Diamonds (Mct)(3) 9.2 7.2 28% 24.6 18.4 33%
Copper (kt)(4) 157 166 (6)% 487 480 1%
Platinum group metals (koz)(5) 1,116 1,113 0% 3,195 2,733 17%
Iron ore (Mt)(6) 16.9 14.7 15% 48.8 45.5 7%
Metallurgical coal (Mt) 4.3 4.8 (11)% 10.5 12.6 (17)%
Nickel (kt)(7) 10.4 10.2 2% 31.1 31.9 (3)%
Manganese ore (kt) 1,004 939 7% 2,849 2,578 11%
(1) Copper equivalent production is normalised to reflect the demerger of the South Africa thermal coal operations, the announced
sale of our interest in Cerrejon and the closure of the manganese alloy operations.
(2) Production capacity excludes Grosvenor.
(3) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(4) Contained metal basis. Reflects copper production from the Copper operations in Chile only (excludes copper production from the
Platinum Group Metals business unit).
(5) Produced ounces of metal in concentrate. 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold). Reflects own mine
production and purchase of concentrate.
(6) Wet basis.
(7) Reflects nickel production from the Nickel operations in Brazil only (excludes nickel production from the Platinum Group Metals business unit).
Production Outlook Summary
2021 production guidance is summarised as follows:
2021 production guidance(1)
Diamonds(2) ~32 Mct
(previously 32-33Mct)
Copper(3) 650-660 kt
(previously 650-680kt)
Platinum Group Metals(4) 4.2-4.4 Moz
Iron Ore(5) ~64.5 Mt
(previously 64.5-66.5Mt)
Metallurgical Coal(6) 14-16 Mt
Nickel(7) 42-44 kt
(1) Subject to the extent of further Covid-19 related disruption.
(2) On a 100% basis, except for the Gahcho Kue joint venture, which is on an attributable 51% basis.
(3) Copper operations in Chile only. On a contained-metal basis.
(4) 5E + gold produced metal in concentrate ounces. Includes own mined production (~65%) and purchased concentrate volumes (~35%). The split of metals
differs for own mined and purchased concentrate, refer to FY2019 results presentation slide 30 for indicative split of own mined volumes. FY2021 metal
in concentrate production is expected to be 1.9-2.0 million ounces of platinum,
1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of other PGMs and gold.
(5) Wet basis.
(6) Excludes thermal coal by-product from Australia.
(7) Nickel operations in Brazil only.
Realised Prices
Q3 YTD 2021 vs.
Q3 YTD 2021 Q3 YTD 2020 Q3 YTD 2020
Copper (USc/lb)(1) 434 273 59%
Platinum Group Metals
Platinum (US$/oz) 1,118 876 28%
Palladium (US$/oz) 2,582 2,143 20%
Rhodium (US$/oz) 22,009 9,465 133%
Basket price (US$/PGM oz)(2) 2,868 1,869 53%
Iron Ore - FOB prices(3) 176 99 78%
Kumba Export (US$/wmt)(4) 181 101 79%
Minas-Rio (US$/wmt)(5) 167 96 74%
Metallurgical Coal - HCC (US$/t)(6) 149 114 31%
Nickel (USc/lb) 748 531 41%
(1) The realised price for Copper excludes third party sales volumes.
(2) Price for a basket of goods per PGM oz. The dollar basket price is the net sales revenue from all metals (PGMs, base metals and other metals),
excluding trading, per 5E + gold sold ounces (own mined and purchased concentrate).
(3) Average realised total iron ore price is a weighted average of the Kumba and Minas-Rio realised prices. The comparative has been restated as
Kumba previously reported on a dry basis.
(4) Average realised export basket price (FOB Saldanha) (wet basis as product is shipped with ~1.6% moisture). The comparative has been restated
as Kumba previously reported on a dry basis. The realised prices differ to Kumba's standalone results due to sales to other Group companies.
Average realised export basket price (FOB Saldanha) on a dry basis is $184/t (Q3 2020: $103/t) and this was higher than the dry 62% Fe benchmark
price of $157/t (FOB South Africa, adjusted for freight).
(5) Average realised export basket price (FOB Acu) (wet basis as product is shipped with ~9% moisture).
(6) Weighted average coal sales price achieved at managed operations. Metallurgical Coal PCI (US$/t) Q3 2021 was US$138/t and Q3 2020 was US$90/t,
resulting in a 53% YTD movement. Thermal Coal Australia (US$/t) Q3 2021 was US$105/t and Q3 2020 was US$56/t, resulting in a 88% YTD movement.
De Beers
Q3 2021 Q3 2021 YTD 2021
De Beers(1) (000 carats) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Botswana 6,403 4,827 33% 5,727 12% 17,090 12,296 39%
Namibia 399 242 65% 338 18% 1,075 1,111 (3)%
South Africa 1,577 1,178 34% 1,276 24% 4,014 2,484 62%
Canada 797 915 (13)% 899 (11)% 2,406 2,548 (6)%
Total carats recovered 9,176 7,162 28% 8,240 11% 24,585 18,439 33%
Rough diamond production increased by 28% to 9.2 million carats, reflecting planned higher production to meet stronger
demand for rough diamonds.
In Botswana, production increased by 33% to 6.4 million carats primarily driven by to the planned treatment of higher
grade ore at Jwaneng, partly offset by lower production at Orapa due to the planned closure of Plant 1.
Namibia production increased by 65% to 0.4 million carats reflecting the suspension of the marine fleet during Q3 2020,
as part of the response to lower demand at that time.
South Africa production increased by 34% to 1.6 million carats due to planned treatment of higher grade ore from the
final cut of the Venetia open pit and an improvement in plant performance.
Production in Canada decreased by 13% to 0.8 million carats due to lower grade ore being processed.
Demand for rough diamonds continued to be robust, with positive midstream sentiment reflecting strong demand for
polished diamond jewellery, particularly in the key markets of the US and China. Rough diamond sales totalled 7.8 million
carats (7.0 million carats on a consolidated basis)(2) from two Sights, compared with 6.6 million carats (6.5 million carats
on a consolidated basis)(2) from three Sights in Q3 2020, and 7.3 million carats (6.5 million carats on a consolidated
basis)(2) from two Sights in Q2 2021(3).
Full Year Guidance
Production guidance(1) is tightened to ~32 million carats (previously 32-33 million carats) (100% basis), due to continuing
operational challenges, subject to the extent of any further Covid-19 related disruptions.
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(2) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group
from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(3) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight was extended beyond its normal week-long
duration. As a result, 0.2Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.
Q3 2021 Q3 2021 YTD 2021
De Beers(1) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Carats recovered (000 carats)
100% basis (unless stated)
Jwaneng 3,954 3,169 3,091 1,452 1,748 126% 25% 10,214 6,086 68%
Orapa(2) 2,449 2,558 1,869 2,811 3,079 (20)% (4)% 6,876 6,210 11%
Total Botswana 6,403 5,727 4,960 4,263 4,827 33% 12% 17,090 12,296 39%
Debmarine Namibia 309 249 249 256 147 110% 24% 807 869 (7)%
Namdeb (land operations) 90 89 89 81 95 (5)% 1% 268 242 11%
Total Namibia 399 338 338 337 242 65% 18% 1,075 1,111 (3)%
Venetia 1,577 1,276 1,161 1,287 1,178 34% 24% 4,014 2,484 62%
Total South Africa 1,577 1,276 1,161 1,287 1,178 34% 24% 4,014 2,484 62%
Gahcho Kue (51% basis) 797 899 710 776 915 (13)% (11)% 2,406 2,548 (6)%
Total Canada 797 899 710 776 915 (13)% (11)% 2,406 2,548 (6)%
Total carats recovered 9,176 8,240 7,169 6,663 7,162 28% 11% 24,585 18,439 33%
Sales volumes
Total sales volume (100)% (Mct)(3) 7.8 7.3(4) 13.5(4) 6.9 6.6 18% 7% 28.6 15.8 81%
Consolidated sales volume (Mct)(3) 7.0 6.5(4) 12.7(4) 6.4 6.5 8% 8% 26.2 15.0 75%
Number of Sights (sales cycles) 2 2(4) 3(4) 2 3 7(4) 7(5)
(1) De Beers Group production is on a 100% basis, except for the Gahcho Kue joint venture which is on an attributable 51% basis.
(2) Orapa constitutes the Orapa Regime which includes Orapa, Letlhakane and Damtshaa.
(3) Consolidated sales volumes exclude De Beers Group's JV partners' 50% proportionate share of sales to entities outside De Beers Group from the
Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume (100% basis).
(4) Due to ongoing travel restrictions and the timing of Sight 3 at the end of Q1 2021, the Sight event was extended beyond its normal week-long
duration. As a result, 0.2 Mct (total sales volume, 100% and consolidated basis) from Sight 3 were recognised in Q2 2021.
(5) Sight 3 in Q2 2020 was cancelled due to Covid-19 related restrictions on the movement of people and product.
Copper
Q3 2021 Q3 2021 YTD 2021
Copper(1) (tonnes) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Los Bronces 79,600 79,400 0% 84,400 (6)% 242,800 228,800 6%
Collahuasi (44% share) 65,300 75,500 (14)% 74,300 (12)% 211,200 217,600 (3)%
El Soldado 11,600 10,800 7% 11,000 5% 32,500 33,100 (2)%
Total Copper 156,500 165,700 (6)% 169,700 (8)% 486,500 479,500 1%
(1) Copper production shown on a contained metal basis. Reflects copper production from the Copper operations in Chile only
(excludes copper production from the Platinum Group Metals business unit).
Copper production decreased by 6% to 156,500 tonnes due to planned plant maintenance at Collahuasi.
Production from Los Bronces of 79,600 tonnes was in line with prior year. An increase in plant throughput was fully offset
by planned lower grade (0.70% vs 0.73%) and lower copper recovery (79.7% vs 80.9%).
At Collahuasi, attributable production decreased by 14% to 65,300 tonnes due to planned major plant maintenance.
Production from El Soldado increased by 7% to 11,600 tonnes reflecting strong plant performance, partially offset by
planned lower grade (0.73% vs. 0.78%).
The year to date average realised price of 434c/lb, includes 171,661 tonnes of copper that as at 30 September was
provisionally priced at an average price of 413c/lb.
Chile´s central zone continues to face challenging climate conditions with a continuation of the longest drought recorded.
These conditions are placing significant pressure on water availability and pose an ongoing risk to production at Los
Bronces in Q4 2021 and 2022.
Full Year Guidance
Production guidance is tightened to 650,000-660,000 tonnes (previously 650,000-680,000 tonnes), due to plant
performance challenges at Los Bronces, subject to water availability and the extent of any Covid-19 related disruption.
Q3 2021 Q3 2021 YTD 2021
Copper(1) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Los Bronces mine(2)
Ore mined 10,512,600 11,403,100 10,812,400 11,546,300 8,414,600 25% (8)% 32,728,100 27,665,000 18%
Ore processed - Sulphide 12,715,400 13,168,200 11,520,400 13,031,300 11,956,800 6% (3)% 37,404,000 29,003,500 29%
Ore grade processed
Sulphide (% TCu)(3) 0.70 0.68 0.72 0.77 0.73 (4)% 3% 0.70 0.83 (16)%
Production - Copper cathode 9,800 9,800 9,900 10,200 9,300 5% 0% 29,500 29,100 1%
Production - Copper in concentrate 69,800 74,600 68,900 85,700 70,100 0% (6)% 213,300 199,700 7%
Total production 79,600 84,400 78,800 95,900 79,400 0% (6)% 242,800 228,800 6%
Collahuasi 100% basis
(Anglo American share 44%)
Ore mined 30,327,200 26,943,000 21,220,300 18,110,000 16,412,100 85% 13% 78,490,500 53,849,200 46%
Ore processed - Sulphide 12,926,400 14,334,300 14,441,600 12,928,700 14,612,300 (12)% (10)% 41,702,300 42,902,900 (3)%
Ore grade proce ssed
Sulphide (% TCu)(3) 1.28 1.29 1.26 1.18 1.27 1% (1)% 1.27 1.26 1%
Production - Copper in concentrate 148,300 168,800 162,800 134,600 171,500 (14)% (12)% 479,900 494,500 (3)%
Anglo American's 44% sh are o
copper production for Collahuasi 65,300 74,300 71,600 59,200 75,500 (14)% (12)% 211,200 217,600 (3)%
El Soldado mine(2)
Ore mined 1,697,800 1,796,600 1,708,600 1,982,000 1,885,100 (10)% (5)% 5,203,000 5,178,500 0%
Ore processed - Sulphide 1,952,000 1,834,800 1,755,100 1,902,500 1,788,700 9% 6% 5,541,900 5,019,100 10%
Ore grade proce ssed
Sulphide (% TCu)(3) 0.73 0.75 0.70 0.84 0.78 (6)% (3)% 0.73 0.84 (13)%
Production - Copper in concentrate 11,600 11,000 9,900 12,700 10,800 7% 5% 32,500 33,100 (2)%
Chagres Smelter(2)
Ore smelted(4) 30,200 25,400 23,200 29,800 26,700 13% 19% 78,800 81,800 (4)%
Production 29,200 24,600 22,600 29,000 26,000 12% 19% 76,400 79,700 (4)%
Total copper production(5) 156,500 169,700 160,300 167,800 165,700 (6)% (8)% 486,500 479,500 1%
Total payable copper production 150,100 162,600 154,300 161,200 159,200 (6)% (8)% 467,000 461,100 1%
Total sales volumes 162,300 157,700 147,700 178,600 176,100 (8)% 3% 467,700 469,800 0%
Total payable sales volumes 153,900 149,200 143,200 172,600 167,900 (8)% 3% 446,300 450,400 (1)%
Third party sales(6) 136,200 82,800 74,000 133,400 112,600 21% 64% 293,000 319,700 (8)%
(1) Excludes copper production from the Platinum Group Metals business unit. Units shown are tonnes unless stated otherwise.
(2) Anglo American ownership interest of Los Bronces, El Soldado and the Chagres Smelter is 50.1%. Production is stated at 100% as Anglo American consolidates
these operations.
(3) TCu = total copper.
(4) Copper contained basis.
(5) Total copper production includes Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
Platinum Group Metals (PGMs)
Q3 2021 Q3 2021 YTD 2021
PGMs (000 oz)(1) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Metal in concentrate production 1,116 1,113 0% 1,058 6% 3,195 2,733 17%
Own mined(2) 720 747 (4)% 709 2% 2,124 1,832 16%
Purchase of concentrate (POC)(3) 396 366 8% 349 14% 1,071 901 19%
Refined production(4) 1,420 1,021 39% 1,354 5% 3,747 2,040 84%
(1) Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) Includes managed operations and 50% of joint operation production.
(3) Includes the other 50% of joint operation production, as well as the purchase of concentrate from third parties.
(4) Refined production excludes toll refined material.
Metal in concentrate production
Own mined production decreased by 4% to 720,000 ounces, mainly due to a decrease of 12% at Mogalakwena from
planned maintenance at the Mogalakwena North concentrator and lower grade material. In addition, there was planned
concentrator downtime at Unki following the completion of debottlenecking projects. This was partly offset by higher
production at Amandelbult of 7% to 218,300 ounces, reflecting the implementation of improvement plans, as well as the
19% increase at joint operations to 113,700 ounces, as a result of the year-on-year recovery from Covid-19.
Purchase of concentrate increased by 8% to 396,200 ounces, also largely due to the year-on-year recovery from
Covid-19.
Refined production
Refined production increased by 39% to 1,420,400 ounces, reflecting continued strong performance from the ACP
Phase A unit following its successful start-up in November 2020. The ACP Phase B rebuild is on schedule for completion
in Q4 2021.
Sales
Sales volumes increased by 54%, driven by higher refined production.
The year to date average realised basket price of $2,868/PGM ounce reflects strong prices for rhodium and the minor
metals, partly offset by higher than normal sales volumes of lower priced ruthenium.
Full Year Guidance
Production guidance (metal in concentrate) is unchanged at 4.2-4.4 million ounces(1). Refined production guidance is
unchanged at 4.8-5.0 million ounces(2), subject to the potential impact of Eskom load-shedding. Both are subject to the
extent of further Covid-19 related disruption.
(1) Metal in concentrate production is expected to be 1.9-2.0 million ounces of platinum, 1.35-1.40 million ounces of palladium and 0.95-1.0 million ounces of
other PGMs and gold.
(2) Refined production is expected to be 2.2-2.3 million ounces of platinum, 1.55-1.60 million ounces of palladium and 1.05-1.1 million ounces of other PGMs
and gold.
Q3 2021 Q3 2021 YTD 2021
Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
M&C PGMs production (000 oz)(1) 1,116.2 1,057.9 1,021.2 1,076.1 1,112.8 0% 6% 3,195.3 2,732.8 17%
Own mined 720.0 709.2 694.9 716.9 747.3 (4)% 2% 2,124.1 1,832.1 16%
Mogalakwena 276.4 308.3 329.1 306.7 315.0 (12)% (10)% 913.8 874.9 4%
Amandelbult 218.3 185.3 156.0 185.5 204.8 7% 18% 559.6 422.6 32%
Unki 42.6 47.9 50.9 55.8 60.0 (29)% (11)% 141.4 140.3 1%
Mototolo 69.0 59.9 58.6 69.8 72.2 (4)% 15% 187.5 153.8 22%
Joint operations(2) 113.7 107.8 100.3 99.1 95.3 19% 5% 321.8 240.5 34%
Purchase of concentrate 396.2 348.7 326.3 359.2 365.5 8% 14% 1,071.2 900.7 19%
Joint operations(2) 113.7 107.8 100.3 99.0 95.3 19% 5% 321.8 240.5 34%
Third parties 282.5 240.9 226.0 260.2 270.2 5% 17% 749.4 660.2 14%
Refined PGMs production (000 oz)(1)(3) 1,420.4 1,353.7 973.0 673.1 1,020.7 39% 5% 3,747.1 2,039.9 84%
By metal:
Platinum 662.9 625.7 457.8 296.4 503.8 32% 6% 1,746.4 904.7 93%
Palladium 459.8 427.5 317.0 206.8 354.1 30% 8% 1,204.3 698.6 72%
Rhodium 92.2 94.3 63.0 47.1 48.9 89% (2)% 249.5 126.8 97%
Other PGMs and gold 205.5 206.2 135.2 122.8 113.9 80% 0% 546.9 309.8 77%
Nickel (tonnes) 6,000 5,800 4,800 3,700 5,000 20% 3% 16,600 10,100 64%
Tolled material (000 oz)(4) 164.5 153.8 175.9 146.5 129.4 27% 7% 494.2 357.0 38%
PGMs sales from production (000 oz)(1)(5) 1,361.0 1,437.1 1,131.1 754.3 884.9 54% (5)% 3,929.2 2,114.2 86%
Third party PGMs sales (000 oz)(1)(6) 160.1 116.1 221.5 370.8 341.0 (53)% 38% 497.7 800.2 (38)%
4E head grade (g/t milled)(7) 3.47 3.48 3.54 3.67 3.65 (5)% 0% 3.50 3.52 (1)%
(1) M&C refers to metal in concentrate. Ounces refer to troy ounces. PGMs is 5E+Au (platinum, palladium, rhodium, ruthenium and iridium plus gold).
(2) The joint operations are Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the
remaining 50% of production, which is presented under 'Purchase of concentrate'.
(3) Refined production excludes toll material.
(4) Ounces refer to troy ounces. Tolled volume measured as the combined content of: platinum, palladium, rhodium and gold, reflecting the tolling agreements
in place.
(5) PGMs sales volumes from production are generally ~65% own mined and ~35% purchases of concentrate though this may vary from quarter to quarter.
(6) Relates to sales of metal not produced by Anglo American operations.
(7) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold, excludes tolled material. Minor metals are excluded due to variability.
Iron Ore
Q3 2021 Q3 2021 YTD 2021
Iron Ore (000 t) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Iron Ore(1) 16,888 14,677 15% 15,695 8% 48,757 45,519 7%
Kumba(2) 10,789 9,684 11% 9,818 10% 31,161 27,903 12%
Minas-Rio(3) 6,100 4,994 22% 5,878 4% 17,596 17,616 0%
(1) Total iron ore is the sum of Kumba and Minas-Rio.
(2) Volumes are reported as wet metric tonnes. Product is shipped with ~1.6% moisture.
(3) Volumes are reported as wet metric tonnes. Product is shipped with ~9% moisture.
Iron ore production increased by 15% to 16.9 million tonnes, due to a 22% increase at Minas-Rio and an 11% increase at
Kumba.
Kumba - Total production increased by 11% to 10.8 million tonnes, due to an increase at Sishen of 14% to 7.5 million
tonnes and 6% at Kolomela to 3.3 million tonnes. The increase reflects improved processing plant availability and
reliability.
Total sales of 10.0 million tonnes(1) decreased by 10% due to unplanned maintenance and weather-related delays at the
Saldanha port.
Year to date, Kumba product iron (Fe) content averaged 64.1% (YTD Q3 2020: 64.3%), while the average lump:fines
ratio was 69:31 (YTD Q3 2020: 67:33).
The year to date average realised price of $181/tonne (FOB South Africa, wet basis) was higher than the 62% Fe
benchmark price of $154/tonne (FOB South Africa, adjusted for freight and moisture) due to the lump and Fe content
quality premiums that the Kumba products attract, partially offset by the timing on provisionally priced volumes.
Minas-Rio - Production increased by 22% to 6.1 million tonnes reflecting the planned stoppage in Q3 2020, when routine
internal scanning of the pipeline was carried out.
The year to date average realised price of $167/tonne (FOB Brazil, wet basis) was higher than the Metal Bulletin 66 price
of $159/tonne (FOB Brazil, adjusted for freight and moisture), reflecting the premium quality of the product, including
higher (~67%) Fe content, partially offset by the timing on provisionally priced volumes.
Full Year Guidance
Production guidance (wet basis) is tightened to ~64.5 million tonnes (previously 64.5 - 66.5 million tonnes) (Kumba ~40.5
million tonnes (previously 40.5 - 41.5 million tonnes) owing to rail in South Africa performing below planned levels; Minas-
Rio ~24 million tonnes (previously 24 - 25 million tonnes) owing to lower plant availability). Both are subject to the extent
of further Covid-19 related disruption and Kumba is subject to rail performance.
(1) Sales volumes are reported on a wet basis and differ to Kumba's standalone results due to sales to other Group companies.
Q3 2021 Q3 2021 YTD 2021
Iron Ore (tonnes) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Iron Ore production(1) 16,888,100 15,695,300 16,173,400 16,183,200 14,677,400 15% 8% 48,756,800 45,518,900 7%
Iron Ore sales(1) 15,818,800 14,973,600 15,716,400 16,600,200 15,861,400 0% 6% 46,508,800 47,640,900 (2)%
Kumba production 10,788,600 9,817,600 10,554,700 9,717,600 9,683,600 11% 10% 31,160,900 27,903,000 12%
Lump 7,252,800 6,723,700 7,156,100 6,589,100 6,592,200 10% 8% 21,132,600 18,889,200 12%
Fines 3,535,800 3,093,900 3,398,600 3,128,500 3,091,400 14% 14% 10,028,300 9,013,800 11%
Kumba production by mine
Sishen 7,528,300 6,876,800 7,071,200 6,583,400 6,615,300 14% 9% 21,476,300 19,180,600 12%
Kolomela 3,260,300 2,940,800 3,483,500 3,134,200 3,068,300 6% 11% 9,684,600 8,722,400 11%
Kumba sales volumes(2) 9,965,700 9,406,000 10,230,200 10,285,700 11,076,800 (10)% 6% 29,601,900 30,163,500 (2)%
Export iron ore(2) 9,965,700 9,406,000 10,123,100 10,285,700 11,076,800 (10)% 6% 29,494,800 29,805,800 (1)%
Domestic iron ore - - 107,100 - - n/a n/a 107,100 357,700 (70)%
Minas-Rio production
Pellet feed (wet basis) 6,099,500 5,877,700 5,618,700 6,465,600 4,993,800 22% 4% 17,595,900 17,615,900 0%
Minas-Rio sales volumes
Export - pellet feed (wet basis) 5,853,100 5,567,600 5,486,200 6,314,500 4,784,600 22% 5% 16,906,900 17,477,400 (3)%
(1) Total iron ore is the sum of Kumba and Minas-Rio and reported in wet metric tonnes. Kumba product is shipped with ~1.6% moisture and Minas-Rio product
is shipped with ~9% moisture.
(2) Sales volumes differ to Kumba's standalone results due to sales to other Group companies.
Metallurgical Coal
Q3 2021 Q3 2021 YTD 2021
Metallurgical Coal(1) (000 t) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Metallurgical Coal (Australia) 4,289 4,836 (11)% 2,969 44% 10,536 12,640 (17)%
(1) Anglo American's attributable share of production.
Export metallurgical coal production decreased by 11% to 4.3 million tonnes due to operations at Moranbah being
impacted by challenging geological conditions for most of the quarter. This was partly offset by Dawson and Capcoal
increasing production levels after having scaled back production volumes since mid-2020 in response to reduced
demand for their particular products.
Development activities at Grosvenor continue as part of the mine's staged approach to restarting longwall mining
operations towards the end of 2021, subject to the approval of the Queensland Mines Inspectorate, with the first
development coal washed in September.
The ratio of hard coking coal production to PCI/semi-soft coking coal was 83:17, slightly higher than in Q3 2020 (82:18),
due to solid performance at Grasstree and the mine sequence at Dawson and Capcoal.
The year to date average realised price for hard coking coal was $149/tonne, lower than the benchmark price of $177/
tonne as sales for the year have consisted of a lower proportion of premium quality hard coking coal from Moranbah and
Grosvenor.
Full Year Guidance
Production guidance is unchanged at 14-16 million tonnes, subject to the extent of any Covid-19 related disruption.
Q3 2021 Q3 2021 YTD 2021
Coal, by product (tonnes)(1) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Production volumes
Metallurgical Coal 4,288,500 2,968,600 3,278,500 4,182,400 4,836,100 (11)% 44% 10,535,600 12,639,500 (17)%
Hard Coking Coal 3,567,400 2,319,500 2,511,200 3,221,200 3,969,100 (10)% 54% 8,398,100 10,202,800 (18)%
PCI / SSCC 721,100 649,100 767,300 961,200 867,000 (17)% 11% 2,137,500 2,436,700 (12)%
Export thermal Coal 443,800 519,000 372,400 562,300 587,000 (24)% (14)% 1,335,200 1,458,200 (8)%
Sales volumes
Metallurgical Coal 3,985,800 2,856,300 3,112,300 4,318,300 4,818,000 (17)% 40% 9,954,400 12,569,600 (21)%
Hard Coking Coal 3,293,600 2,246,200 2,462,100 3,536,900 4,130,000 (20)% 47% 8,001,900 10,302,400 (22)%
PCI / SSCC 692,200 610,100 650,200 781,400 688,000 1% 13% 1,952,500 2,267,200 (14)%
Export thermal Coal 560,400 572,000 492,000 725,800 500,100 12% (2)% 1,624,400 1,559,000 4%
(1) Anglo American's attributable share of production.
Metallurgical coal, by Q3 2021 Q3 2021 YTD 2021
operation (tonnes)(1) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Metallurgical Coal 4,288,500 2,968,600 3,278,500 4,182,400 4,836,100 (11)% 44% 10,535,600 12,639,500 (17)%
Moranbah 1,314,700 56,600 595,100 1,209,200 2,008,500 (35)% n/a 1,966,400 3,221,100 (39)%
Grosvenor 19,500 - - - 4,500 n/a n/a 19,500 1,106,300 (98)%
Capcoal (incl. Grasstree) 1,503,500 1,554,100 1,346,600 1,680,900 1,328,800 13% (3)% 4,404,200 3,934,000 12%
Dawson 659,200 569,800 600,600 461,200 588,300 12% 16% 1,829,600 1,967,900 (7)%
Jellinbah 791,600 788,100 736,200 831,100 906,000 (13)% 0% 2,315,900 2,410,200 (4)%
(1) Anglo American's attributable share of production.
Nickel
Q3 2021 Q3 2021 YTD 2021
Nickel (tonnes) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Nickel 10,400 10,200 2% 10,600 (2)% 31,100 31,900 (3)%
Nickel production increased by 2% to 10,400 tonnes, reflecting the planned annual maintenance at Codemin in Q3
2020, partially offset by planned lower ore grade.
Full Year Guidance
Production guidance is unchanged at 42,000-44,000 tonnes, subject to the extent of further Covid-19 related disruption.
Q3 2021 Q3 2021 YTD 2021
Nickel (tonnes) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Barro Alto
Ore mined 1,190,900 976,200 628,500 1,001,600 1,712,200 (30)% 22% 2,795,600 3,196,400 (13)%
Ore processed 564,400 641,500 616,700 628,000 536,600 5% (12)% 1,822,600 1,772,600 3%
Ore grade processed - %Ni 1.64 1.56 1.53 1.71 1.72 (5)% 5% 1.57 1.63 (4)%
Production 8,300 8,800 8,200 9,500 8,000 4% (6)% 25,300 25,500 (1)%
Codemin
Ore mined - - - - 3,200 n/a n/a - 3,200 n/a
Ore processed 146,800 136,400 136,600 147,600 142,100 3% 8% 419,800 433,700 (3)%
Ore grade processed - %Ni 1.60 1.52 1.51 1.71 1.71 (6)% 5% 1.55 1.64 (5)%
Production 2,100 1,800 1,900 2,200 2,200 (5)% 17% 5,800 6,400 (9)%
Total Nickel production(1) 10,400 10,600 10,100 11,700 10,200 2% (2)% 31,100 31,900 (3)%
Sales volumes 11,700 9,800 10,200 11,700 10,900 7% 19% 31,700 31,300 1%
(1) Excludes nickel production from the Platinum Group Metals business unit.
Manganese
Q3 2021 Q3 2021 YTD 2021
Manganese (000 t) Q3 Q3 vs. Q2 vs. YTD YTD vs.
2021 2020 Q3 2020 2021 Q2 2021 2021 2020 YTD 2020
Manganese ore(1) 1,004 939 7% 941 7% 2,849 2,578 11%
Manganese alloys(1)(2) - 18 n/a - n/a - 66 n/a
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Manganese ore production increased by 7% to 1,003,600 tonnes, benefiting from improved productivity at the South
African operations.
There was no manganese alloy production as the South African smelter has been on care and maintenance since the
Covid-19 lockdown.
Q3 2021 Q3 2021 YTD 2021
Manganese (tonnes) Q3 Q2 Q1 Q4 Q3 vs. vs. YTD YTD vs.
2021 2021 2021 2020 2020 Q3 2020 Q2 2021 2021 2020 YTD 2020
Samancor production
Manganese ore(1) 1,003,600 940,500 904,500 942,400 938,700 7% 7% 2,848,600 2,577,600 11%
Manganese alloys(1)(2) - - - 14,600 18,300 n/a n/a - 65,900 n/a
Samancor sales
volumes
Manganese ore 947,200 980,200 878,200 936,800 976,200 (3)% (3)% 2,805,600 2,592,300 8%
Manganese alloys - - 670 24,500 22,700 n/a n/a 670 78,900 n/a
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
Exploration and evaluation
Exploration and evaluation expenditure increased by 22% to $72 million. Exploration expenditure increased by 42% to
$37 million driven by increased activity in copper and PGMs, reflecting the impact of Covid-19 in Q3 2020. Evaluation
expenditure increased by 6% to $35 million, with increased spend in PGMs and diamonds.
Corporate and other activities
On the 28 June 2021, the sale of Anglo American's 33% interest in Cerrejon was announced and is expected to complete
in H1 2022, subject to regulatory approvals. The agreement is effective on the 31 December 2020 and, therefore,
economic benefits from 1 January 2021 onwards will not accrue to Anglo American should the transaction complete.(1)
Going forward we will not be reporting on the production and sales volumes for Cerrejon. Anglo American's share of
income from Cerrejon for H2 2021 will be reported in Special items and remeasurements (Note 8 in the Annual Report),
rather than underlying earnings, and dividends received from Cerrejon will continue to be reported in "Dividends from
associates and joint ventures". Furthermore, the purchase consideration for our interest in Cerrejon is subject to
completion adjustments, which include an adjustment for dividends paid by Cerrejon to Anglo American during the
period after the 31 December 2020 to completion of the sale.
(1) As previously reported at 30 June 2021, Anglo American's attributable share of Cerrejon production for H1 2021 was 3,579kt,
which was up by 30% on H1 2020 (2,745kt).
For more information on Anglo American's announcements during the period (excluding our 2021 Interim results), please find the
link to our Press Releases below:
https://www.angloamerican.com/media/press-releases/2021
Notes
- This Production Report for the quarter ended 30 September 2021 is unaudited.
- Production figures are sometimes more precise than the rounded numbers shown in this Production Report.
- Copper equivalent production shows changes in underlying production volume. It is calculated by expressing each
product's volume as revenue, subsequently converting the revenue into copper equivalent units by dividing by the
copper price (per tonne). Long-term forecast prices are used, in order that period-on-period comparisons exclude any
impact for movements in price.
- Please refer below for information on forward-looking statements.
In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to
refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not
necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only,
and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled.
Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but
not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of
Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces
group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American
Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute
prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and
procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their
specific businesses.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Juliet Newth
marcelo.esquivel@angloamerican.com juliet.newth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 8830
Katie Ryall Michelle Jarman
katie.ryall@angloamerican.com michelle.jarman@angloamerican.com
Tel: +44 (0)20 7968 8935 Tel: +44 (0)20 7968 1494
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development
options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and
that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we
use innovative practices and the latest technologies to discover new resources and to mine, process, move and market
our products to our customers - safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and
metallurgical coal for steelmaking, and nickel - with crop nutrients in development - we are committed to being carbon
neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching
goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate
leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious
natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our
shareholders. Anglo American is re-imagining mining to improve people's lives.
Forward-looking statements and third-party information:
This announcement includes forward-looking statements. All statements other than statements of historical facts included in this
announcement, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment
strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives
relating to Anglo American's products, production forecasts and Ore Reserves and Mineral Resource estimates) and environmental,
social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of Anglo American, or industry results, to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business
strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo
American's actual results, performance or achievements to differ materially from those in the forward-looking statements include,
among others, levels of actual production during any period, levels of global demand and commodity market prices, mineral resource
exploration and development capabilities, recovery rates and other operational capabilities, safety, health or environmental incidents,
the effects of global pandemics and outbreaks of infectious diseases, the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to produce and transport products profitably, the availability of
transportation infrastructure, the impact of foreign currency exchange rates on market prices and operating costs, the availability of
sufficient credit, the effects of inflation, political uncertainty and economic conditions in relevant areas of the world, the actions of
competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines
and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or
other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such
other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be
construed in light of such risk factors and undue reliance should not be placed on forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Anglo American expressly disclaims any obligation
or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure and
Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South
Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable
regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in
Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement
is based. Nothing in this announcement should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share.
Certain statistical and other information about Anglo American included in this announcement is sourced from publicly available third-
party sources. As such, it has not been independently verified and presents the views of those third parties, though these may not
necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in
respect of, such information.
Legal Entity Identifier: 549300S9XF92D1X8ME43
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary listings on the Johannesburg Stock Exchange,
the Botswana Stock Exchange, the Namibia Stock Exchange and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
21 October 2021
Date: 21-10-2021 08:00:00
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