Anglo American Reports 3Q Decline in Copper Output but Revises Nickel and PGM Guidance Upwards

Anglo American

Anglo American, the UK-South African mining giant, experienced a 13% year-on-year decline in copper production during the third quarter of 2024, with output falling to 181,000 tons. The decrease was primarily attributed to reduced production at its mines in Chile and Peru.

Copper Production Highlights

• Peru’s Quellaveco Mine: Output fell 21% to 68,700 tons due to lower grades and recoveries. Production is expected to rebound in the fourth quarter.
• Chilean Operations: Output dropped 7% to 112,600 tons, driven by the planned closure of the Los Bronces plant in July, where production fell 20%. However, higher grades at El Soldado boosted output by 16%, partially offsetting the losses.

Total copper production for the year to date reached 575,000 tons, down 4% year-on-year. The company remains on track to meet its full-year production guidance of 730,000-790,000 tons, split between 430,000-460,000 tons from Chile and 300,000-330,000 tons from Peru.

Platinum Group Metals (PGMs) Performance

• PGMs in Concentrate: Production dropped 10% to 922,000 ounces due to lower output at South Africa’s Mogalakwena and Amandelbult mines. Higher production at Zimbabwe’s Unki mine partially offset these declines.
• Refined PGMs: Production rose 22% to 1.11 million ounces, supported by stability in processing operations.

Anglo American revised its full-year refined PGM production guidance upward to 3.7-3.9 million ounces, from the earlier estimate of 3.3-3.7 million ounces.

Nickel Production Trends

Nickel output increased 6% to 9,900 tons during the quarter, driven by operational improvements at the Barro Alto plant in Brazil. Year-to-date nickel production reached 28,900 tons, up 2%.

The company raised its full-year nickel production guidance to 38,000-39,000 tons, up from its earlier range of 36,000-38,000 tons.

Outlook

Anglo American’s diversified portfolio continues to offset challenges in copper production with strong performance in nickel and PGMs. While facing difficulties in its copper operations, the upward revisions in nickel and PGM guidance underscore the company’s adaptability and operational resilience.