Mining giant Anglo American PLC (LON:AAL) remains “broadly on track” to meet full-year production targets.
In a production report covering the third quarter, the FTSE 100 firm said diamond production at its De Beers unit fell by 14% quarter-on-quarter to 7.7mln carats, reflecting declining demand in the market and the transition from open pit to underground operations at Venetia.
READ Anglo American production slips in first quarter, but still 'on track'
“De Beers, in view of prevailing market conditions, will continue to produce to demand for the year,” said Mark Cutifani, the chief executive officer (CEO) of Anglo American.
Iron ore production at Kumba fell by 9% to 10.5mln tonnes, due to plant maintenance, while iron ore production at Minas-Rio hit 5.9mln tonnes, with the ramp-up in production running ahead of schedule.
Metallurgical coal production increased by 11% to 5.8mln tonnes but thermal coal production decreased by 8% to 6.6mln million tonnes, primarily due to local drought conditions at Cerrejón.
Copper production increased by 1% to 159,100 tonnes due to a strong performance at Los Bronces and Collahuasi.
Platinum production increased by 3% to 520,300 ounces and palladium decreased by 1% to 347,200 ounces, due to a change in the mix of production from each operation.
“Production is up 2% for the quarter, due to the successful ramp-up at Minas-Rio and strong performance at Metallurgical Coal following the longwall moves and plant upgrade work in Q1,” said CEO Mark Cutifani.
“Kumba Iron Ore continues to improve following Q1 production challenges.
“We remain broadly on track overall to deliver this full year's production targets, with an increase to Minas-Rio guidance offsetting two reductions at De Beers and Kumba Iron Ore," Cutifani added.
Shares in Anglo were down 0.8% at 2,185p in early deals.