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Anglo American reports coal production results for 4Q16

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World Coal,

Anglo American has reported its production report for 4Q16 (quarter ending 31 December 2016).

Mark Cutifani, Anglo American Chief Executive, said: "Operational improvements across the portfolio delivered a 4% production increase on a copper equivalent basis in Q4 2016. De Beers saw continued production increases, reflecting improved trading conditions relative to Q4 2015, while the successful restructuring at Kumba's Sishen mine resulted in an 11% production increase. Similarly, Barro Alto's nickel production increased by 9% after reaching nameplate capacity in Q3 2016. At Platinum, we continue to maintain discipline by mining to demand. Together with positive contributions from ongoing ramp-ups at Minas-Rio, Grosvenor and Gahcho Kué, we will be reporting a 2% increase in copper equivalent production volumes for 2016 as a whole."

Anglo’s Australia export metallurgical coal production, excluding the impact of the divestment of Foxleigh, increased by 5% to 5.4 million t due to production ramping up at Grosvenor, increased cutting hours and rates at Moranbah and productivity gains at Dawson. These increases have been partially offset by geological issues and a subsequent longwall move at Grasstree in 4Q16.


However Australian export thermal coal production, excluding the impact of the Callide divestment,  decreased by 28% to 0.6 million t as Drayton ceased mining activities in October 2016 following the NSW Planning Assessment Commission recommendation not to approve the Drayton South Project.


Australian domestic thermal coal production decreased by 67% to 0.7 million t due to the sale of Callide which completed on 31 October 2016.


The mining giant’s South African export thermal coal production increased by 16% to 4.5 million t. Production increased at all the export mines driven by productivity improvements following the roll-out of the Anglo Operating Model. Goedehoop also benefitted from plant modifications that enabled the production of an export product from previously discarded coal. Export sales volumes at 5.8 million t exceeded export production as coal produced for the domestic market was sold in the export market for enhanced value when conditions allowed.


Eskom related production increased by 36% with New Vaal dragline maintenance impacting production in Q4 2015, improved performance from Kriel's underground operations and increased delivery against the domestic supply contract at Kleinkopje.


In Colombia, Cerrejón's attributable production increased by 7% to 2.8 million t due to improved productivity and favourable weather conditions.


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