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Anglo American met coal production grows strongly in Q2 2014

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World Coal,

Anglo American’s Peace River Coal mines metallurgical coal in British Columbia, Canada. Image courtesy of Anglo American via flikr.

Following rival Rio Tinto, Anglo American became the second of the majors to announce Q2 production with a sharp increase in metallurgical coal production from its Canadian and Australian mines in Q2 compared to the same period last year. Output rose 10% to 4.8 million t for the quarter and 21% to 10.9 million t across the first six months of the year compared to H1 2013.

The mining giant attributed the rise in production to “productivity improvements” most notably from the Dawson opencast and Grasstree underground mines in Queensland, Australia.

On the thermal side, the company increased production of export thermal coal from its South African mines by 6% to 4.3 million t for the quarter, as well as thermal coal for non-Eskom domestic users by 2%. Overall, however, thermal coal production for domestic customers was down almost 6% for the quarter as lower production from the Kriel coal mine, which supplies Eskom, dropped as the mine neared depletion of its reserves.

Australian and Colombian thermal coal production also dropped with output Down Under falling by 37% for the quarter and 43% for the half-year to June as the Drayton mine in New South Wales nears the end of its life. In Colombia, dust emission constraints brought on by extended drought conditions caused a production fall of 4%.

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