By Jaime Llinares Taboada

 

Anglo American PLC on Thursday downgraded its 2022 steelmaking coal guidance, raised the production outlook for diamonds and improved forecasts on dollar-denominated platinum group metal costs.

The FTSE 100 multinational mining company cut 2022 coal production guidance to 15 million to 17 million metric tons from 17 million to 19 million tons, and increased cost expectations to $110 a ton from $105 a ton, reflecting the timing of a ramp-up in longwall mining.

In addition, Anglo American raised its 2022 production guidance for diamonds to 32 million-34 million carats from 30 million-33 million previously, due to robust demand and strong year-to-date operational performance.

The group also trimmed unit cost guidance for its platinum group metals operations to $950 an ounce from $970 on the back of a weaker South African rand.

Full-year guidance for copper, nickel and iron ore remains unchanged.

"Overall for the second quarter, production was 9% lower compared with the same quarter in 2021, primarily due to expected lower grades and water availability in copper, ramp-up of the Aquila longwall in steelmaking coal and planned maintenance at the Minas-Rio iron ore operation," Chief Executive Duncan Wanblad said.

Copper production fell 21% in the second quarter to 134,000 tons, coal output dropped 12% to 2.6 million tons and iron ore was 8% lower at 14.4 million tons. Production also fell 4% to 7.9 million carats for diamonds, 3% to 10,300 tons for nickel and 2% to 1.03 million ounces for platinum group metals. Manganese ore was 4% higher at 980,000 tons.

"Our production performance started to pick up in the second quarter of 2022, with operational momentum and our focus on asset resilience positioning us well for a stronger second half of the year," Mr. Wanblad said.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

July 21, 2022 03:15 ET (07:15 GMT)

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