Anglo American 3Q iron ore output up, met coal down

UK-South African mining firm Anglo American boosted iron ore production on the quarter and year in July-September, driven by record output from Brazil's Minas-Rio facility.

But coking coal output was down after a fire at Australia's 5mn t/yr Grosvenor mine in late June.

Anglo American's 2024 iron ore production guidance is unchanged at 58mn-62mn t.

Overall Anglo American iron ore output increased by 2pc on the year, as an 11pc rise at Minas-Rio offset a 3pc decline at South Africa's Kumba site. The drop at Kumba was attributed to a change in a third party's logistical capacity.

Realised prices were 3pc below the market benchmark at Minas-Rio, which the firm attributes to a large volume of sales being priced on a provisional basis. Iron ore from Kumba averaged a 64pc Fe content and priced 4pc above a 62pc Fe fines benchmark.

Anglo American's 2024 coking coal production guidance remains 14mn-15.5m t, after July's downward adjustment. Third-quarter output was down by 6pc on the year, at 4.1mn t, after the fire at Grosvenor in June. Third-quarter production at other sites rose by 3pc on the year. January-September output was 8pc up on the year, at 11.2mn t.

Coking coal sales fell by 7pc to 4mn t following the drop in production. Pricing was comparable to index levels at $253/t, the company said, an improvement from the 93pc year-to-date price realisation.

Damage at Grosvenor was less severe than expected, Anglo American said, and the firm aims to sign an agreement covering the sale of its coking coal assets in the next few months. Australian coal producer New Hope, Chinese-owned Australian producer Yancoal and Australia's M Resources are among those interested in Anglo American's five Queensland coking coal mines.

By Austin Barnes