Anglo American (LON:AAL) is this week hosting an analyst and investor visit to Queensland, Australia to provide a detailed update on Anglo American’s Bulks businesses. The update will cover Anglo American’s world-class steelmaking ingredient businesses of Kumba Iron Ore, Minas-Rio, and the Metallurgical Coal operations in Australia, as well as its nickel and export thermal coal operations.
Seamus French, CEO of Bulk Commodities at Anglo American, said: “The high quality and significantly improved operational performance of Anglo American’s Bulks businesses continue to deliver very attractive margins and returns. We are today upgrading our 2019 production guidance for Minas-Rio by a further 10% – with a proportionate decrease in unit costs – while also providing volume guidance for the next three financial years, as well as long term volume and unit cost potential.
“We believe our iron ore, met coal and nickel businesses are well set to meet future demand trends, particularly in relation to the high quality of their products. Through attractive resource characteristics, beneficiation and blending, we offer our customers a reliable supply of niche steelmaking products with low levels of contaminants, thereby helping steel plants meet ever tighter emissions standards. For example, in the first half of 2019 our iron ore saw an average Fe content of more than 65%, above any of the other major producers, contributing towards the sustained price premia we realise for our products.
“Looking forwards, we have a disciplined approach to growth within our portfolio, with numerous debottlenecking and life extension opportunities in the medium term across our iron ore and met coal assets. Combined with our ongoing focus on setting new operational performance benchmarks and the introduction of step-change technologies aimed at safety, productivity and a smaller environmental footprint, we see only a strengthening of our position and ability to generate leading and sustainable returns.”
Anglo American is today providing updated 2019-2021 production guidance for its Bulks businesses, as well as new guidance for 2022. In addition to the changes noted above, the planned increase in metallurgical coal production is pushed back by one year due to phasing of the wash plant expansion at Moranbah-Grosvenor.
The presentations that will be made during the visit will be available on the Anglo American website http://www.angloamerican.com/investors/investor-presentations/2019.