Anglo American has announced it expects production to increase by 3% in 2019. The mining giant also confirmed that 2018 is set to close on a high with production above previous guidance by 2% and costs down 5%.
Mark Cutifani, Chief Executive Officer at Anglo American, commented: “We have completely transformed the quality of our asset portfolio and our performance as a whole over the last five years. We have created a highly competitive business, with Anglo American amongst the very best in the industry in terms of margin. We see considerable further opportunity ahead and continue to target $3-4 bn of incremental annual EBITDA by 2022.
“This will come from a combination of meeting or surpassing industry best-practice equipment performance across our operations; volume growth from existing and new operations, such as Quellaveco; and the deployment of our FutureSmart Mining™ technologies and digitalisation. It is these technologies that will transform how we mine, process and market our products, providing the next step change in our performance.”
Cutifani highlighted expected further 5% production increase in both 2020 and 2021. He noted that during the last three years, the company has reduced net debt by more than $9bn and paid nearly $2bn in dividends to shareholders in the past 18 months. He stated Anglo American, which has mining operations in Australia, North and South American and Southern Africa, is now well positioned to drive enhanced returns through its capital allocation options, maintaining a strong balance sheet while delivering attractive shareholder returns and value-adding disciplined growth.
He added: “Anglo American’s portfolio spans the products and product qualities that will supply the needs of a cleaner, more electrified and richer world. We have a well sequenced range of high returning, quick payback growth options, from life extensions in diamonds and metallurgical coal, to growth across our copper, diamonds and met coal businesses in particular. Combined with our multi-stakeholder focus to create a truly sustainable business, we believe we are set to keep delivering on all fronts.”
News of Anglo’s ramped outlook for 2019 follows raised platinum and palladium targets for next year and increased 2018 copper guidance announced in the past two months. Allied to this the company expects to resume operations at its Brazil-based iron ore mine Minas-Rio by year end.