Anglo adds to iron ore pain

Headlines today for iron ore are for less next year courtesy of Anglo:

Anglo American has trimmed its production forecasts for iron ore, diamonds and coal for the next two years, the mining company said in an update for investors on Tuesday.

Anglo American lowered its forecast for its Kumba Iron Ore business from 42-43 metric tonnes (Mt) from 43-44 Mt, cut its diamond production outlook for 2020 and 2021, and lowered its 2020 metallurgical coal production outlook to 21-23 Mt from 22-24 Mt.

However, this is a redcution in expected expansion. Anglo also said:

In a presentation, Anglo confirmed guidance of 23Mt in 2019 at a cost of US$24/t FOB at Minas-Rio, where operations were suspended for most of 2018 following two leaks in a pipeline.

For 2020, Anglo expects 22-24Mt at US$26/t FOB cost at the Brazil mine and for 2021, 24-26Mt. The company did not unveil cost estimates for 2021.

Anglo said the complex’s ramp-up to 26.5Mt/y nameplate capacity is under way, but warned that the current guidance assumes receipt of a final tailings license by end-2019.

And it targeting 75mt in the next few years, up 10mt.

This adds to what is now a second round of iron ore expansion and resumption that adds another 120mt roughly spread over the next two years.

David Llewellyn-Smith
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