Global miner Anglo American PLC (LON:AAL) has kept its full-year production guidance for all its metals, aside from nickel, unchanged in a quarterly update which showed a decline in copper but strong growth in iron ore production.
In a production report for the first quarter ended 31 March 2017, the FTSE 100-listed firm said its copper production decreased by 3% to 142,600 tonne as a continued strong performance at its Collahuasi project was offset by expected lower grades and increased ore hardness at Los Bronces, and the temporary suspension of mining operations at El Soldado.
The group said its full year production guidance for copper remains unchanged at 570,000-600,000 tonnes, of which El Soldado represents 50,000-60,000 tonnes.
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Iron ore production from its Kumba project, however, increased by 17% to 10.5mln tonnes thanks to improved mining productivity at Sishen, and higher throughput at Kolomela.
And iron ore production from Minas-Rio increased by 30% to 4.3mln tonnes as the operation continued to ramp-up.
In the statement, Mark Cutifani, Anglo American’s chief executive, said: "A strong operational performance enhanced by the continued ramp-up of Gahcho Kué, Minas-Rio and Grosvenor delivered an 9% increase in production on a copper equivalent basis.
“The operating improvements at Sishen and ongoing portfolio refinements are further strengthening Anglo American's resilience and competitive position. “
Rough diamond production increased by 8%
The group said rough diamond production at its De Beers business increased by 8% to 7.4mln carats compared with the first quarter of 2016, with full year production guidance unchanged at 31-33mln carats, subject to trading conditions.
Cutifani added: “De Beers' total sales volumes of 14.1 million carats reflected improved demand for lower value goods in stock at 31 December 2016."
Anglo American said its export metallurgical coal production increased by 28% to 5.2mln tonnes, with production of South African and Colombian export thermal coal increased by 6% to 6.8mln.
But nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces, impacting throughput.