FTSE 100-listed mining firm Anglo American (JO:AGLJ) reported a significant 42% surge in Q3 copper output, primarily attributed to the Quellaveco mine in Peru. This increase has helped offset decreases in diamond and coal production. However, due to an electrical substation fire and other issues at the Los Bronces and El Soldado mines in Chile, the company experienced a 4% dip in Chilean copper output. As a result, Anglo American has revised its full-year copper targets downward to between 830,000 and 870,000 tons.
The price of copper has risen by 3%, reaching 387 U.S. cents per pound, a significant point considering the metal's crucial role in the global energy transition. Despite a 2% drop in production, Anglo American Platinum reported a 2% sales increase due to refined stock drawdown.
The company also reported sharp falls in rough diamond and steelmaking coal production by 23% and 21% respectively. Meanwhile, nickel and iron ore production decreased by 7% and 4%. On the positive side, manganese ore output rose by 4%.
CEO Duncan Wanblad stressed the company's commitment to achieving its full-year production guidance for all metals, excluding copper. The company also confirmed its full-year costs guidance for all metals.
The Quellaveco mine in Peru remains on track to meet its target of producing between 310,000 to 350,000 tons of copper in 2023. The mine's success has played a vital role in boosting Anglo American's Q3 copper output despite challenges faced at other mining locations.
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