Anglo American raised its production forecast this year for the Minas-Rio mine in Brazil, citing continued strong performance since the operation restarted late last year.
- Minas-Rio output is seen at 20 million to 22 million tons, compared with a previous forecast of 19 million to 21 million tons.
- Minas Rio is starting to deliver for Anglo after years of problems. The project, which cost $14 billion to buy and build, almost sank the miner after years of delays and cost overruns. It was then shuttered for most of last year after leaks on a pipeline that carried the iron ore.
- Anglo’s De Beers unit held its full-year production guidance at about 31 million carats despite sales falling sharply so far this year. De Beers has been struggling to sell diamonds in recent months as polishers and traders refuse to buy stones when they can’t make a profit.
- Anglo trimmed its expectations for copper output as a drought in Chile impacted its mines. Thermal coal output will be at the lower end of earlier range as it mined less at the Cerrejon operation that it owns with Glencore and BHP Group.
Production goals for metallurgical coal, its Kumba Iron Ore unit and platinum were unchanged.
© 2019 Bloomberg L.P.