| Thu 22 Oct 2009, 8:01 | | AGL - Anglo American plc Interim Management Statement Production Report for the |
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AGL
ANAAL
AGL - Anglo American plc Interim Management Statement Production Report for the
third quarter ended 30 September 2009
Anglo American plc
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
("Anglo American plc" or "the company")
News Release
22 October 2009
Anglo American plc Interim Management Statement Production Report for the
third quarter ended 30 September 2009
Overview
- Copper production increased 13.4% to 168,500 tonnes, compared to the third
quarter of 2008, due to higher throughput and recoveries at Los Bronces and
improved grades, recoveries and performance at Collahuasi
- Iron ore production increased 15.7% to 11.9 million tonnes as the Sishen
jig plant continued to ramp up to full production. The jig plant achieved
production of 996kt in September, equating to annualised production of
12Mtpa, on track to achieve its planned annualised rate of 13Mtpa during
the fourth quarter
- Platinum refined production increased 15.8% to 629koz, on track to meet
full year target of 2.4 million ounces.
- Two additional high cost shafts placed on care and maintenance
- Labour reduction of 11,715, exceeding full year plan
- Further 4% productivity improvement achieved since June 2009
- Thermal coal production declined by 1.0% and metallurgical coal production
declined by 2.6%, as production was matched to demand in export markets.
Coal production at Eskom mines improved, with demand increasing by 7.3%
- Continued improvement in the demand for rough diamonds. Third quarter
production 43% higher than second quarter and on track for full year
production at 50% of 2008 levels
- Further strategic progress to focus on core mining portfolio:
- $671 million raised in the third quarter:
- Tongaat Hulett stake sold for total consideration of $523 million
- Hulamin stake sold for total consideration of $148 million
- Undrawn committed bank facilities and cash increased to over $10 billion
Results for the full year to 31 December 2009 will be announced on 19 February
2010.
This report forms Anglo American plc`s Interim Management Statement for the
purpose of the UK Listing Authority`s Disclosure and Transparency Rules.
PLATINUM Q3 Sep Q3 2009 Sep YTD 09
2009 2009 vs. vs.
YTD Q3 2008 Sep YTD 08
Refined
Platinum 000 oz 629 1,686 15.8% 9.2%
Palladium 000 oz 338 934 5.0% 7.6%
Rhodium 000 oz 92 256 22.7% 33.3%
Nickel t 5,500 14,200 37.5% 24.6%
Equivalent refined
Platinum 000 oz 617 1,860 -9.9% 2.6%
Platinum - Refined production of 629,000 ounces increased by 15.8% compared to
Q3 2008. Production levels achieved their target for the quarter, whereas prior
year production was impacted by planned maintenance at the Waterval smelter.
Anglo Platinum continues to target full year production of 2.4 million ounces of
refined platinum.
Equivalent refined platinum ounces from mining and purchase of concentrate
activities attributable to Anglo Platinum decreased 9.9% to 617,000 ounces
compared to Q3 2008, primarily due to the placing of three high-cost shafts onto
care and maintenance (Bleskop, Brakspruit and Boschfontein shafts).
Palladium, Rhodium & Nickel - Refined production of palladium, rhodium and
nickel was higher than Q3 2008. The increases vary due to a different source mix
from operations and different pipeline processing times per metal.
Anglo Platinum is taking action to mitigate the effect of wage and electricity
price escalations through:
- labour reduction - 11,715 reductions achieved in the year-to-date,
compared with the original plan for 10,000 by year end;
- productivity improvements - a further 4% improvement (following a 12%
improvement at the half year) was achieved in Q3 2009 of 6.28m2 mined
per employee per month; and
- energy efficiency.
In addition, any overhead costs not associated with keeping the Bleskop,
Brakspruit and Boschfontein shafts on care and maintenance are being removed.
BASE METALS Q3 Sep Q3 2009 Sep YTD 09
2009 2009 vs. vs.
YTD Q3 2008 Sep YTD 08
Copper t 168,500 485,500 13.4% 3.5%
Nickel t 4,900 14,900 -12.5% -2.0%
Zinc t 94,000 263,900 8.7% 2.4%
Copper - Production for the quarter was 13.4% higher than Q3 2008 following
increased production at Collahuasi as a result of improved grades and
recoveries, resolving pipeline and port filter plant constraints, higher
operational stability at the concentrator plant and improved SAG mill
utilisation. Higher production at Los Bronces was due to increased throughput
resulting from lower ore hardness, and improved recoveries.
Nickel - Production for the quarter was 12.5% lower than Q3 2008 due to a break-
out at furnace No.2 at Loma de Niquel earlier in the year which has resulted in
only furnace No.1 presently being operational.
Zinc - Production was 8.7% higher than Q3 2008 due to improved grades and
operational practices at Lisheen.
FERROUS METALS Q3 Sep Q3 2009 Sep YTD 09
2009 2009 vs. vs.
YTD Q3 2008 Sep YTD 08
Iron ore 000 t 11,861 32,190 15.7% 17.9%
Manganese Ore 000 t 462 955 -36.9% -55.4%
Manganese Alloys 000 t 25 77 -69.1% -67.1%
Scaw Metals
South Africa products 000 t 183 526 -14.5% -16.6%
International products 000 t 164 541 -28.7% -18.5%
Iron ore - Total iron ore production increased 15.7% to 11.9Mt in the third
quarter compared to the previous year. This was mainly due to the additional
production delivered by the Sishen Mine`s jig plant, which continues to ramp up
to full production.
The jig plant achieved production of 996kt in September, equating to annualised
production of 12Mtpa. The ramp up of the jig plant to an annualised rate of
13Mtpa during the fourth quarter continues as planned.
Manganese Ore - Production increased by 131% versus Q2 2009, as market
conditions progressively recovered during the quarter. However, Q3 2009
production was limited due to larger than optimal stockpiles at the start of the
quarter. As a result of the improved demand and depletion of stockpiles,
Samancor expects its manganese ore business to be operating near full capacity
towards the end of the fourth quarter.
Manganese Alloy - Production increased by 150% versus Q2 2009, as demand
conditions improved, stockpiles were drawn down and furnaces were restarted
during the quarter. Samancor expects its manganese alloy business to be
operating at about 65% of capacity towards the end of the fourth quarter.
Scaw Metals - Production of South African steel products decreased 14.5%
compared to Q3 2008 due to lower demand for rolled, cast and wire rod products,
though increased 11.6% versus Q2 2009. Production of International steel
products decreased 28.7% versus Q3 2008 and increased 3.8% versus Q2 2009.
COAL Q3 Sep Q3 2009 Sep YTD 09
2009 2009 vs. vs.
YTD Q3 2008 Sep YTD 08
Total
Eskom 000 t 10,400 27,777 7.3% 4.1%
Thermal 000 t 12,260 35,668 -1.0% -1.4%
Metallurgical 000 t 3,537 9,929 -2.6% -9.5%
South Africa
Eskom 000 t 10,400 27,777 7.3% 4.1%
Thermal 000 t 5,806 16,613 -4.7% 0.2%
Metallurgical 000 t 224 616 -20.0% -17.1%
Australia
Thermal 000 t 3,614 10,564 12.2% -0.8%
Metallurgical 000 t 3,148 8,817 -0.3% -9.4%
South America
Thermal 000 t 2,840 8,491 -7.4% -3.9%
Canada
Metallurgical 000 t 165 496 -15.0% 0.0%
Coal - Following the global economic slowdown earlier in the year, demand for
metallurgical coal and thermal coal in the Indo-Pacific market improved during
Q3 2009 and production was accordingly matched to demand. Improvements in
production were achieved through the ongoing asset optimisation programme. In
Australia, rail constraints limited further production and sales opportunities
in Q3 2009.
Eskom coal - Production was 7.3% higher than Q3 2008, with increased production
from the Kriel and New Vaal collieries, in line with Eskom demand.
Thermal coal - Production was 1.0% lower than Q3 2008. In South Africa, Q3 2009
was lower than Q3 2008 due to less favourable geological conditions and lower
yields at the Goedehoop and Kleinkopje collieries, partially offset by a strong
build up at Mafube. Lower market demand from European and North American
customers was due to high customer stock levels and low coal burn rates which
affected primarily the South American coals but also displaced South African
production into the growing Indian thermal market. Production at Venezuela`s
Carbones del Guasare continues to be adversely impacted by operational, foreign
exchange and labour related issues. Australian production was 12.2% higher,
reflecting the relative strength of Indo-Pacific thermal coal markets. The ramp-
up of production commenced on schedule at the Zibulo (previously known as
Zondagsfontein) open cast coal mine at the end of the third quarter.
Metallurgical coal - Production was 2.6% lower than Q3 2008 as a result of lower
production from South Africa and Canada. Lower production in South Africa was
due to the low ash coal product reserve being fully depleted during Q2 2009. In
Canada, mine phasing and geotechnical issues constrained coal release.
Australian metallurgical coal production was only marginally lower than the
comparative period, benefiting from favourable metallurgical coal demand from
Indo-Pacific customers.
DIAMONDS - Carats Q3 Sep Q3 2009 Sep YTD 09
recovered
2009 2009 vs. vs.
YTD Q3 2008 Sep YTD 08
Total 000 Carats 7,885 14,476 -39.9% -61.2%
Diamonds - In Q1 2009, in light of lower market demand, De Beers reduced
production at all of its mines through a combination of production holidays and
shift reductions.
Since Q2 2009, production has restarted at Orapa and Jwaneng in Botswana and
operations have resumed in South Africa. Production from the Canadian operations
was impacted in Q3 2009 as a result of a production holiday taken in August.
Overall, Q3 2009 production is trending up from the first and second quarter of
2009 in line with stabilising market demand.
Production summary
The figures below include the entire output of consolidated entities and the
Group`s share of joint ventures, joint arrangements and associates where
applicable, except for De Beers, which is quoted on a 100% basis.
Quarter Year to % Change
date
Q3 YTD
09 09
Q3 Q2 Q1 Q4 Q3 Sep Sep vs. vs.
2009 200 200 200 200 200 200 Q3 YTD
9 9 8 8 9 8 08 08
Platinum 000 oz 629 652 404 842 543 1,6 1,5 15.8 9.2
(refined) 86 44 % %
Platinum 000 oz 617 630 613 653 685 1,8 1,8 - 2.6
(eq. 60 13 9.9% %
refined)
(1)
Palladium 000 oz 338 362 235 451 322 934 868 5.0% 7.6
%
Rhodium 000 oz 92 90 74 107 75 256 192 22.7 33.
% 3%
Nickel 000 t 5.5 5.4 3.3 4.1 4.0 14. 11. 37.5 24.
(Platinum) 2 4 % 6%
Coal - 000 t 10,400 8,9 8,4 9,4 9,6 27, 26, 7.3% 4.1
Eskom 38 38 66 92 777 692 %
Thermal - 000 t 5,806 5,6 5,1 5,7 6,0 16, 16, - 0.2
South 96 11 07 90 613 580 4.7% %
Africa
Thermal - 000 t 2,840 2,9 2,7 2,6 3,0 8,4 8,8 - -
South 03 48 52 66 91 33 7.4% 3.9
America %
Thermal - 000 t 3,614 3,7 3,2 4,0 3,2 10, 10, 12.2 -
Australia 39 12 51 22 564 646 % 0.8
%
Coal - 000 t 12,260 11, 12, 12, 35, 36, - -
Total 12, 071 427 378 668 181 1.0% 1.4
Thermal 337 %
(2)
Metallurgi 000 t 3,148 3,3 2,3 3,4 3,1 8,8 9,7 - -
cal - 54 15 11 58 17 34 0.3% 9.4
Australia %
Metallurgi 000 t 224 172 220 229 280 616 743 - -
cal - 20.0 17.
South % 1%
Africa
Coal - 000 t 3,537 3,6 2,7 3,7 3,6 9,9 10, - -
Total 79 13 76 32 29 973 2.6% 9.5
Metallurgi %
cal (2)
Copper 000 t 168.5 151 172 148 485 469 13.4 3.5
165 .0 .0 .6 .5 .3 % %
.9
Nickel 000 t 4.9 5.6 4.5 4.8 5.6 14. 15. - -
9 2 12.5 2.0
% %
Zinc 000 t 94.0 87. 82. 82. 86. 263 257 8.7% 2.4
1 8 9 5 .9 .6 %
Lead 000 t 18.4 16. 14. 14. 16. 49. 48. 10.2 1.9
4 6 4 7 4 5 % %
Iron Ore 000 t 11,861 10, 9,9 10, 10, 32, 27, 15.7 17.
(3) 336 92 098 250 190 313 % 9%
Manganese 000 t 462 200 293 565 732 955 2,1 - -
Ore (4) 39 36.9 55.
% 4%
Manganese 000 t 25 10 42 72 81 77 234 - -
Alloys (4) 69.1 67.
(5) % 1%
South 000 t 183 164 179 167 214 526 631 - -
Africa 14.5 16.
Steel % 6%
products
Internatio 000 t 164 158 219 215 230 541 664 - -
nal 28.7 18.
Steel % 5%
products
Diamonds 000 7,885 5,5 1,0 10, 13, 14, 37, - -
recovered cts 09 82 795 111 476 337 39.9 61.
% 2%
(1) Equivalent refined platinum production.
(2) Coal type by region may not equal total coal production by type due to other
production.
(3) Includes contribution of production from Amapa iron ore system in Brazil of
531,000t in Q3 2009, 512,000t in Q2 2009, 669,000t in Q1 2009, 546,000t in Q4
2008 & 166,000t in Q3 2008.
(4) Saleable production.
(5) Production includes Medium Carbon Ferro manganese.
As production figures are sometimes more precise than the rounded numbers shown
in this report, small differences may arise throughout the report between the
summation of quarters and the year to date totals. The percentage change will
reflect the percentage change in the rounded production figures shown in this
report.
Forward looking statements:
This Interim Management Statement contains certain forward looking statements
which involve risk and uncertainty because they relate to events and depend on
circumstances that occur in the future. There are a number of factors that
could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements.
For further information, please contact:
United Kingdom
James Wyatt-Tilby, Media Relations
Tel: +44 (0)20 7968 8759
Caroline Metcalfe, Investor Relations
Tel: +44 (0)20 7968 2192
Leisha Wemyss, Investor Relations
Tel: +44 (0)20 7968 8607
South Africa
Anna Poulter, Investor Relations
Tel: +27 (0)11 638 2079
Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592
Notes to Editors:
Anglo American plc is one of the world`s largest mining groups. With its
subsidiaries, joint ventures and associates, it is a global leader in platinum
group metals and diamonds, with significant interests in coal, base and ferrous
metals, as well as an industrial minerals business. The Group is geographically
diverse, with operations in Africa, Europe, South and North America, Australia
and Asia.
(www.angloamerican.co.uk)
Sponsor: UBS South Africa (Pty) Ltd
Date: 22/10/2009 08:01:02 Produced by the JSE SENS Department.
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