Anglo American Slashes Kumba Iron Ore Production Guidance

The Anglo American total iron ore and pellet production (Kumba and Minas Rio) recorded at 11.7 MnT in Q2 CY’18 , down 25% as against 15.7 MnT in Q2 CY’17. On quarterly basis production witnessed 16% decline as against Q1 CY’18 at 13.85 MnT.

The Anglo American Kumba iron ore production for Q2 CY’18 increased 7% on quarterly basis to 11.6 MnT as against 10.8 MnT in last quarter. On yearly basis, the production stood 2% above as against Q2 CY’17 production at 11.4 MnT.

The Kumba iron ore domestic sales in Q2 CY’18 reduced by 12% to 0.78 MnT as against 0.89 MnT, a quarter before. The sales recorded 15% fall as against Q2 CY’17 sales at 0.92 MnT.

• The increase in Kumba iron ore production for the quarter is attributed to strong operational performance at Kolomela. The production increased to 3.6 MnT, up by 4% compared to Q2 CY’17, supported by ramp-up of modular plants. However, waste removal decreased by 15% to 13.1 MnT due to high rainfall.

• Kumba iron ore exports have improved to 9.6 MnT in Q2 CY’18 against 9.4 MnT Q2 CY’17 owing to rail improvements. However few rail constraints still persist and have resulted in increased finished stock from 4.3 MnT in Q4 CY’17 to 6.2 MnT in Q2 CY’18.

• The production at Sishen remained stable at 7.9 MnT compared to Q2 CY’17 production.

Minas-Rio pellet feed production fell sharply in Q2 CY’18-

Minas Rio mines, witnessed sharp decline in production in Q2 CY’18 to 0.1 MnT as compared to Q1 CY’18 at 3.05 MnT. The fall is due to suspension of mines owing to pipeline leakage, resulting in operation halt at mines since Mar’18. The mine is expected to resume in Q3 CY’18.

However, the total sales (export of pellet feed) from Minas-Rio mines recorded at 0.32 MnT in Q2 CY’18, down 89% as against 2.9 MnT in Q1 CY’18. The Y-o-Y sales depicted fall of 93% as against Q2 CY’17 at 4.37 MnT.

Anglo American: 2018 Guidance

• The 2018 guidance for Kumba iron ore reduced to 43-44 MnT against 44-45 MnT previously. This is owing to rail availability issues.

• Minas Rio production pellet feed guidance for 2018 remains intact at 3 MnT