Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Anglo American said on Thursday its third-quarter output was broadly in line with last year, as a drop in copper production offset a ramp up in coal operations and strong performance at its De Beers diamond unit.
In the quarter that ended Sept. 30, production of rough diamonds rose 4% year-on-year to 9.6 million carats, supported by higher grades in Botswana, while copper production dipped 6% on lower grades at the group’s operations in Chile.
Steel-making coal production jumped 28% to 5.5 million tonnes as the group ramped up longwall operations at its underground mines in Grosvenor and Aquila.
Demand for rough diamonds has risen this year as gold and diamonds from Russia went off-limits due to western sanctions against Russian companies, including Alrosa, the world’s largest producer of rough diamonds that competes with Anglo American unit De Beers.
Anglo American’s quarterly output grew 16% from the previous three months led by the robust coal and diamond operations.
The group reiterated its annual production outlook for diamonds but flagged that sales in the fourth quarter could be hit by the closure of cutting and polishing factories for holidays in India.
(By Muhammed Husain; Editing by Sherry Jacob-Phillips and Dhanya Ann Thoppil)
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