Anglo reports declines in Australian coal production

Anglo’s export Australian metallurgical coal production decreased by 19% to 4 million t. Longwall moves took place at both Moranbah and Grasstree during the quarter. The impact of Cyclone Debbie on the Queensland rail network resulted in operational delays with a net impact on saleable production of ~0.6 million t in the quarter. ROM production was not materially impacted and the stock build continues to be unwound in 2H17.  

Grosvenor production continues to be affected by geological issues, which are typically more challenging for the first longwall panel. In addition, a major belt tear occurred in the main conveyor drift. The focus remains on managing geological issues to deliver improved operational performance and stability.

Australian export thermal coal production decreased by 70% to 0.3 million t following the cessation of mining activities at Drayton.  Furthermore, in reaction to the rail outage in 2Q17, thermal coal volumes were substituted for higher margin metallurgical coal production at Capcoal (Grasstree).

 For Anglo’s South African operations, primary export thermal coal production decreased by 8% to 4.1 million t, due to operational challenges at Khwezela associated with the integration of the Kleinkopje and Landau mines. In addition, there was an expected and temporary reduction at Mafube as the mine transitions to a new pit.

Eskom related production increased by 3% to 6.9 million t, with higher production at New Denmark due to a longwall move in 2Q16. The sale of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was announced on 10 April 2017, and is expected to complete by the end of 2017.

Cerrejón's attributable production increased by 5% to 2.4 million t, reflecting productivity gains.

The mining giant’s full-year production guidance for export metallurgical coal remains unchanged at 19 - 21 million t, but is expected to be at the lower end of this range due to the geological issues at Grosvenor.

Full-year production guidance for export thermal coal from South Africa and Cerrejón remains unchanged at 29 - 31 million t, but is expected to be at the lower end of this range primarily due to the operational challenges at Khwezela.

Mark Cutifani, Anglo American Chief Executive, said: "We have delivered another strong production quarter across most of our businesses. Through the improvements, we have made to our portfolio and the efficiencies we are driving, we continue to unlock the potential of our world class assets. The production ramps at Gahcho Kué, Minas-Rio and Grosvenor are also contributing to these ongoing positive performance trends. We have increased the full year production guidance for Kumba Iron Ore and are on track to deliver full year guidance across the rest of our products."

Read the article online at: https://www.worldcoal.com/coal/20072017/anglo-reports-declines-in-australian-coal-production/