| Thu 26 Jan 2012, 9:53 | | AGL - Anglo American plc - Production Report for the fourth quarter ended 31 |
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AGL
ANAAL
AGL - Anglo American plc - Production Report for the fourth quarter ended 31
December 2011
Anglo American plc ("the Company")
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American plc
Production Report for the fourth quarter ended 31 December 2011
Overview
* Iron ore production increased by 5% to 12.4 million tonnes mainly due to
initial production from Kolomela mine and a continued improvement in
performance at Amapa
* 9 Mtpa Kolomela mine commissioned five months ahead of schedule, with
first shipment from Saldanha port in December 2011
* Production ramp up schedule for Kolomela mine of 4-5 million tonnes in
2012
* Metallurgical Coal delivered record production from its Australian open cut
metallurgical coal operations, resulting in a 4% increase in metallurgical
coal production to 4.1 million tonnes
* Export thermal coal production from South Africa and Colombia increased by
5% to 8.6 million tonnes
* Copper production increased by 10% to 170,000 tonnes, and by 22% compared
to Q3 2011, due to the commissioning of the Los Bronces expansion and
higher ore grades at Los Bronces, Collahuasi and El Soldado
* Nickel(1) production increased by 125% to 9,900 tonnes, and by 52% compared
to Q3 2011, as production from Barro Alto continued to ramp up
* Platinum refined production decreased by 19% to 710,000 ounces, mainly due
to a greater number of safety stoppages resulting in lower mine production
and increased processing of lower grade surface stockpiles. Equivalent
refined platinum production declined by 9% to 583,200 ounces, due to a
higher number of safety stoppages. This was offset by a strong performance
at Mogalakwena`s North pit and full ramp up at Unki mine
* Diamond production decreased by 24% to 6.5 million carats. This reduction
mainly reflects De Beers` deliberate focus on increasing waste stripping,
as well as scheduled maintenance at the Debswana and DBCM operations in
recognition of short-term global macro-economic volatility
This Production Report for the fourth quarter ended 31 December 2011 is
unaudited.
Preliminary Results for the full year to 31 December 2011 will be announced on
17 February 2012.
(1) Nickel production from the Nickel business unit
Iron Ore and Manganese Q4 Q4 Q4 2011 Q3 Q4 2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3 2011
Iron ore 000 t 12,427 11,808 5% 12,183 2%
Manganese ore 000 t 722 732 (1)% 808 (11)%
Manganese alloys 000 t 78 77 2% 78 1%
Attributable sales
volumes
RSA export iron ore 000 t 9,600 8,977 7% 9,167 5%
RSA domestic iron ore 000 t 1,242 1,722 (28)% 1,538 (19)%
South American export 000 t 1,374 1,254 10% 1,452 (5)%
iron ore
Iron Ore - Excellent progress was made at Kolomela mine, which was brought into
production ahead of schedule. The plant was successfully commissioned during
2011, delivering production of 1.2 Mt during the fourth quarter, bringing total
production for 2011 to 1.5 Mt. Sishen mine`s production decreased by 4% year on
year to 9.8 Mt and by 6% quarter on quarter. Production from the mine`s dense
media separation plant was hampered by mining feedstock constraints. Sishen mine
proactively supplemented the production by temporarily adjusting the jig plant
ore quality in order to operate at above design capacity.
In Brazil, total production of 1.3 Mt was 15% higher compared to Q4 2010 and 3%
higher than Q3 2011. The increase in Q4 production was driven by the Pellet Feed
Production which was 32% higher compared to Q4 2010 (Q4 2011:495 kt vs. Q4
2010:376 kt) following a process improvement throughout 2011.
Manganese Ore - Production was lower than Q3 2011 as planned maintenance at
Hotazel Manganese Mines (South Africa) and lower plant availability due to wet
weather at GEMCO (Australia) impacted performance.
Manganese Alloys - Alloy production was in line with prior periods.
Metallurgical Coal(1) Q4 Q4 Q4 2011 Q3 Q4
2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3
2011
Production
Export metallurgical 000 t 4,061 3,892 4% 4,015 1%
Thermal 000 t 3,359 3,728 (10)% 3,978 (16)%
Weighted average
achieved FOB prices
Export metallurgical US$/t 234 201 16% 267 (12)%
Export thermal US$/t 103 90 14% 98 5%
Domestic thermal US$/t 34 32 6% 35 (3)%
Attributable sales
volumes
Export metallurgical 000 t 4,010 3,704 8% 3,721 8%
Export thermal 000 t 1,850 1,602 15% 1,878 (1)%
Domestic thermal 000 t 1,853 2,250 (18)% 1,843 1%
(1) In 2011 the Group decided to retain Peace River Coal and to manage it
within the Metallurgical Coal business unit. Information presented includes
Peace River Coal and comparatives have been reclassified.
Metallurgical Coal - The Australian open cut metallurgical coal operations
delivered a record quarterly performance for Q4 2011, as flood recovery actions
initiated in the first half of 2011, increased production by 57% compared to Q4
2010. The increase was in part offset by unplanned interruption at the Moranbah
underground operation.
Thermal Coal Q4 Q4 Q4 2011 Q3 Q4
2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3
2011
Production
RSA thermal (non-Eskom) 000 t 5,846 5,885 (1)% 5,198 12%
Eskom 000 t 9,487 9,485 - 8,751 8%
RSA metallurgical 000 t 84 103 (18)% 76 12%
Colombia export thermal 000 t 2,753 2,316 19% 2,852 (3)%
Weighted average
achieved FOB prices
RSA export thermal US$/t 107 84 27% 115 (7)%
RSA domestic thermal US$/t 20 20 - 22 (9)%
Colombia export thermal US$/t 98 79 24% 103 (5)%
Attributable sales
volumes
RSA export thermal 000 t 5,146 4,358 18% 4,605 12%
RSA domestic thermal 000 t 10,842 10,546 3% 9,901 10%
Colombia export thermal 000 t 2,784 2,672 4% 2,901 (4)%
Thermal Coal - Production in South Africa was in line with Q4 2010, and improved
compared to Q3 2011, mainly due to the recovery from industrial action which
occurred in Q3 2011. Zibulo commenced commercial production in October 2011.
Cerrejon, in Colombia, delivered a strong performance, benefiting from a
reduction in weather related stoppages compared to 2010. This performance
enabled Cerrejon to exceed, for the first time, its theoretical annual
production capacity of 32 Mtpa.
Export sales volumes in South Africa increased 18% on Q4 2010 due to high stock
level availability as well as optimised load out efficiencies on the operations
complemented by improved Transnet Freight Rail performance.
Copper Q4 Q4 Q4 2011 Q3 Q4 2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3 2011
Copper t 170,000 154,400 10% 139,900 22%
Copper - Production of 170,000 tonnes increased by 10%, primarily due to the
ramp-up of production from the expansion at Los Bronces following its
commissioning in October and higher ore grades at Los Bronces, Collahuasi and El
Soldado. The Los Bronces expansion produced 19,000 tonnes during the quarter,
this was partly offset by production interruptions at Collahuasi owing to
adverse weather conditions in December 2011 and a safety stoppage at Los Bronces
after a fatal accident in September 2011.
As at the end of 2011, Anglo American had 138,400 tonnes of copper provisionally
priced at 345 c/lb. Provisional pricing of copper sales resulted in a negative
operating profit adjustment of $278 million for 2011, versus a positive
operating profit adjustment of $195 million in the prior year.
Nickel Q4 Q4 Q4 Q3 Q4
2011 2011
2011 2010 vs. 2011 vs.
Q4 Q3
2010 2011
Nickel t 9,900 4,400 125% 6,500 52%
Nickel - Production increased by 125% to 9,900 tonnes reflecting the
contribution of Barro Alto which delivered 4,100 tonnes in Q4 2011. At Loma de
Niquel, production was 13% higher due to improved equipment availability and
increased reliability of power supply for the furnaces. Production at Codemin
was 75% higher due to the relining of an electric furnace during Q4 2010.
Platinum Q4 Q4 Q4 2011 Q3 Q4 2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3 2011
Refined
Platinum 000 oz 710 872 (19)% 647 10%
Palladium 000 oz 393 503 (22)% 376 4%
Rhodium 000 oz 97 111 (13)% 75 29%
Nickel t 5,100 5,000 2% 4,900 4%
Equivalent refined
Platinum 000 oz 583 640 (9)% 667 (13)%
Platinum - Equivalent refined platinum production was 9% lower mainly due to a
higher number of safety stoppages resulting in lower production from Tumela,
Dishaba, Union and Rustenburg and increased processing of lower grade surface
stockpiles. This was partly offset by a strong performance at Mogalakwena`s
North pit and ramp up at Unki mine. Mogalakwena`s head grade and recoveries
improved by 7% and 4% year on year respectively during the fourth quarter of
2011. Unki mine reached steady state during the fourth quarter of 2011, which is
a year ahead of schedule. There were 32 safety stoppages during the fourth
quarter of 2011 compared with 14 during the fourth quarter of 2010 and 16 during
the third quarter of 2011. Refined production decreased by 19% year on year
primarily due to lower mine output.
Palladium, Rhodium & Nickel - Refined production of palladium and rhodium
decreased by 22% and 13% respectively, while nickel increased by 2%. These
variances are due to a different source mix from operations and different
pipeline processing times for each metal.
Diamonds Q4 Q4 Q4 2011 Q3 Q4
2011
2011 2010 vs. 2011 vs.
Q4 2010 Q3
2011
Diamonds 000 6,489 8,532 (24)% 9,305 (30)%
carats
Diamonds - Carats recovered decreased 24% to 6.5 million carats, and 30%
compared to Q3 2011, primarily reflecting a deliberate focus by De Beers to
increase waste stripping, as well as scheduled maintenance at the Debswana and
DBCM operations in recognition of short-term global macro-economic volatility.
Other Mining and Q4 Q4 Q4 2011 Q3 Q4 2011
Industrial - Core(1)
2011 2010 vs. 2011 vs.
Q4 2010 Q3 2011
Phosphates t 274,900 270,900 1% 284,500 (3)%
Niobium t 1,000 1,200 (17)% 1,100 (9)%
(1) Assets originally identified for divestment as part of the restructuring
programme announced in October 2009, are managed as a separate business unit,
Other Mining and Industrial. In 2011 the Group decided to retain Copebras and
Catalao.
Phosphates - Phosphates production was in line with Q4 2010, however, the
production mix was varied in response to changes in market demand. Production
decreased by 3% to 274,900 tonnes compared to Q3 2011, reflecting softening
demand.
Niobium - Niobium production decreased by 17% as a result of the significant
change in production profile at Boa Vista, as the mine advanced further into the
transition ore between weathered material and unoxidised ore, resulting in lower
niobium recoveries. Niobium ore grades from the Copebras mine were also lower
leading to a decreasing niobium output from the tailings plant.
Production summary
The figures below include the entire output of consolidated entities and the
Group`s attributable share of joint ventures, joint arrangements and associates
where applicable, except for De Beers which is quoted on a 100% basis.
% Change
Q4 Q4
2011 2011
Q4 Q3 Q2 Q1 Q4 vs. vs.
2011 2011 2011 2011 2010 Q3 Q4
2011 2010
Iron Ore and
Manganese
segment
(tonnes)
Iron ore 12,427 12,18 11,53 9,944 11,80 2% 5%
,300 2,900 4,100 ,800 7,700
Manganese 722,50 807,6 716,1 540,6 731,6 (11)% (1)%
ore(1) 0 00 00 00 00
Manganese 78,000 77,60 76,10 68,80 76,80 1% 2%
alloys(1)(2) 0 0 0 0
Metallurgical
Coal segment
(tonnes)(3)
Export 4,060, 4,015 3,949 2,164 3,891 1% 4%
metallurgical 600 ,000 ,400 ,700 ,500
Thermal 3,358, 3,978 3,087 3,002 3,727 (16)% (10)%
700 ,000 ,500 ,300 ,500
Thermal Coal
segment
(tonnes)
RSA thermal 5,846, 5,198 5,264 5,079 5,885 12% (1)%
(non-Eskom) 000 ,400 ,400 ,300 ,000
Eskom 9,487, 8,751 8,782 8,275 9,484 8% -
000 ,400 ,600 ,000 ,800
RSA 84,500 75,60 83,80 79,50 103,0 12% (18)%
metallurgical 0 0 0 00
Colombia export 2,752, 2,851 2,537 2,609 2,315 (3)% 19%
thermal 700 ,800 ,700 ,500 ,700
Copper segment 170,00 139,9 150,3 138,8 154,4 22% 10%
(tonnes)(4) 0 00 00 00 00
Nickel segment 9,900 6,500 6,600 6,100 4,400 52% 125%
(tonnes)(5)
Platinum
segment
Platinum (troy 710,00 646,5 640,7 532,9 872,4 10% (19)%
ounces) 0 00 00 00 00
Palladium (troy 392,70 376,0 373,8 288,2 502,6 4% (22)%
ounces) 0 00 00 00 00
Rhodium (troy 96,800 75,20 79,90 85,70 111,4 29% (13)%
ounces) 0 0 0 00
Nickel (tonnes) 5,100 4,900 5,500 4,800 5,000 4% 2%
Equivalent
refined
Platinum (troy 583,20 666,8 592,5 567,6 640,1 (13)% (9)%
ounces) 0 00 00 00 00
Diamonds
segment (De
Beers)
(diamonds
recovered -
carats)
Total diamonds 6,489, 9,305 8,138 7,396 8,532 (30)% (24)%
production for 000 ,000 ,000 ,000 ,000
De Beers
Anglo 2,920, 4,187 3,662 3,328 3,839 (30)% (24)%
American`s 000 ,000 ,000 ,000 ,000
share of
diamonds
production for
De Beers
Other Mining
and Industrial
segment
(tonnes)(6)
Phosphates 274,90 284,5 260,7 240,8 270,9 (3)% 1%
0 00 00 00 00
Niobium 1,000 1,100 900 900 1,200 (9)% (17)%
South Africa 163,10 158,0 183,1 173,2 151,0 3% 8%
Steel Products 0 00 00 00 00
Coal production
by commodity
(tonnes)
Metallurgical 4,145, 4,090 4,033 2,244 3,994 1% 4%
100 ,600 ,200 ,200 ,500
Thermal 11,957 12,02 10,88 10,69 11,92 (1)% -
,400 8,200 9,600 1,100 8,200
Eskom 9,487, 8,751 8,782 8,275 9,484 8% -
000 ,400 ,600 ,000 ,800
(1) Saleable production.
(2) Production includes Medium Carbon Ferro Manganese.
(3) Includes Peace River Coal which in 2011 was reclassified from Other Mining
and Industrial to Metallurgical Coal to align with internal management
reporting. Comparatives have been reclassified to align with current year
presentation.
(4) Excludes Platinum and Black Mountain mine copper production.
(5) Excludes Platinum nickel production.
(6) Excludes Tarmac.
Exploration and evaluation expenditure
Anglo American continued to progress with its strong exploration and evaluation
programme during 2011. Exploration and evaluation operating expenditure for 2011
across all business units was $539 million, an increase of 51% compared to 2010.
This was driven primarily by the advancement of prioritised expansion project
studies in Australian Metallurgical Coal, Copper and Nickel, including
Quellaveco, Michiquillay, Pebble and Jacare, and increased exploration
expenditure in Metallurgical Coal and Copper.
Production figures are sometimes more precise than the rounded numbers shown in
this report. The percentage change will reflect the percentage change using the
unrounded production figures shown in this report.
Forward looking statements:
This 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:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968
8540
Emily Blyth Caroline Crampton (nee
Tel: +44 (0)20 7968 8481 Metcalfe)
Tel: +44 (0)20 7968
2192
South Africa Leisha Wemyss
Pranill Ramchander Tel: +44 (0)20 7968
Tel: +27 (0)11 638 2592 8607
Notes to editors:
Anglo American is one of the world`s largest mining companies, is headquartered
in the UK and listed on the London and Johannesburg stock exchanges. Anglo
American`s portfolio of mining businesses spans bulk commodities - iron ore and
manganese, metallurgical coal and thermal coal; base metals - copper and nickel;
and precious metals and minerals - in which it is a global leader in both
platinum and diamonds. Anglo American is committed to the highest standards of
safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around its
operations. The company`s mining operations, extensive pipeline of growth
projects and exploration activities span southern Africa, South America,
Australia, North America, Asia and Europe. www.angloamerican.com
26 January 2012
Sponsor: UBS South Africa (Pty) Ltd
Date: 26/01/2012 09:53:00 Produced by the JSE SENS Department.
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