Anglo American PLC (LSE:AAL) has set out its production and capex plans for 2022 to 2025 with a rebound in production expected in 2023 and 2024 after a fall this year.
The FTSE 100-listed mining group said 2022 production would be down by around 3%, with the Quellaveco copper ramp-up and strong diamond production offset by ore grades in Chile and lower production from Kumba and platinum group metals.
Unit costs are forecast to be 16% higher while capex of c.$5.7bn was lower due to supply chain disruptions and forex impacts.
Duncan Wanblad, chief executive of Anglo American, said: “As we have built operational momentum in the second half, we have also moderated our near-term production growth plans with a clear priority to deliver a stable platform from which to build strengthened and repeatable performance.“
Looking ahead, the group forecast production increases of 5% in 2023 and 2024, with 2025 levels seen similar to 2024.
Capex is forecast of $6bn to $6.5bn in 2023, $5.5bn to $6bn in 2024 and $5bn to $5.5bn in 2025.
"The fundamental demand picture for mined metals and minerals is ever stronger as most of the world's major economies accelerate their decarbonisation efforts and as the global population increases and continues to urbanise.
“We aim to keep growing our business into that demand, drawing on the range of margin-enhancing organic options within our business," Wanblad said.