Anglo American's Q1 met coal, iron ore output dips sharply on year

Miner Anglo American produced 2.2 million mt of metallurgical coal in the first quarter of 2022, down 32% on the year, as the company postponed longwall move at Moranbah and production was ceased at Grasstree, the producer said in its quarterly report April 21.

In mid-February, the company restarted operations at the Grosvenor mine and Aquila life-extension project, Anglo American said.

Operations at the Grosvenor mine in Australia were halted following a gas incident in 2020, while the new Aquila mine extended the life of Anglo American's existing Capcoal underground operations by seven years.

Meanwhile, in late March, a fatal underground accident suspended operations at the Moranbah mine in Central Queensland, Australia, the company said.

As a result, Anglo American has cut its 2022 full-year met goal guidance to 17 million-19 million mt, down from the previous 20 million-22 million mt.

The new guidance factors in operational disruptions linked with the coronavirus pandemic and the resumption schedule of Moranbah longwall mining operations, the company said.

Iron ore

The company reported a 19% year-on-year drop in its Q1 iron ore production to 13.2 million mt, citing high rainfall and plant issues affecting both Kumba and Minas-Rio.

Due to the production impact, Anglo American revised its full-year 2022 guidance to 60 million-64 million mt of iron ore, compared with 63 million-67 million mt announced previously.

The Kumba mine is located in South Africa, while the Minas-Rio mining operations are located in Brazil.

The company said FOB Kumba and Minas-Rio iron ore prices in Q1 were at $169/wmt and $166/wmt, respectively.

Nonferrous

Anglo American's Q1 copper output was 140,000 mt, down 13% year on year, mainly on planned lower grades, its data showed.

The company's nickel production in Q1 was 93,000 mt, down 8% year on year, while manganese ore output was 804,000 mt, down 11% year on year, its data showed.

Anglo American reported Q1 realized prices for copper at 462 cents/lb, up 10% on the year, while Q1 nickel price was $1.085/lb, up 45% on the year.