Anglo American-a globally diversified miner, carrying out its coal business in Australia, South Africa and Colombia, has reported a 14% increase in coal production during the June-end quarter, however output volumes remained flat from the year-ago period.
Coal production in Q2 CY19 (Apr-Jun’19) stood 15.3 MnT, rising 14% Q-o-Q from 13.4 MnT in Q1 CY19, but had fell 1% Y-o-Y from 15.53 MnT in Q2 CY18.
The company stated that growth recorded in coal production was attributed to long-wall moves and plant upgrade work in the previous quarter.
Anglo American’s production from its South African coal assets accounted for the major share in total output, but its Australian coal mines achieved larger boost Q-o-Q noted at 35% noted in Q2 CY19.
Total output from its coal operations in Australia was marked at 6.09 MnT during Q2 CY19 against 4.49 MnT in Q1 CY19, which was also 10% higher on the year from 5.55 MnT in Q2 CY18.
Output from South African mines increased 7% Q-o-Q to 7.2 MnT in Q2 CY19, but had recorded slight decline from 7.22 MnT recorded in year-ago quarter.
A grade-wise break of coal production indicates that metallurgical coal output sourced entirely from its Australian operations rose 41% Q-o-Q to 5.84 MnT in Q2 CY19, where most of the maintenance work was carried out. Output figures were also 11% higher on the year from 5.26 MnT in Q2 CY18.
Thermal coal production witnessed a fall of 8% Y-o-Y to 9.46 MnT in Q2 CY19, following weaker market conditions and a steep decline in coal output in Colombia.
The company highlighted a subdued export pricing from all its thermal coal markets, wherein average price realization for Australian coal was USD 88/MT (down 11% Y-o-Y), for South African coal it was USD 64/MT (down 27% Y-o-Y), and for Colombian coal was USD 62/MT (down 22% Y-o-Y), assessed in the first half period of CY19.
Output from Colombian mine was marked lower both on the quarterly and yearly basis, noted at 2.02 MnT in Q2 CY19.
Besides, it was informed that coal production entitled for domestic market in South Africa had decreased by 6% Y-o-Y to 2.6 MnT as coal from mineral residue deposits became less economic at prevailing prices.
| Coal Production, by grades | Q2 CY19 | Q1 CY19 | Q2 CY18 | H1 CY19 | H1 CY18 |
| Metallurgical Coal | 5.84 | 4.16 | 5.26 | 10.00 | 10.80 |
| Thermal Coal | |||||
| Australia | 0.25 | 0.34 | 0.29 | 0.58 | 0.50 |
| South Africa (Export) | 4.58 | 4.42 | 4.44 | 8.99 | 8.77 |
| South Africa (Domestic) | 2.62 | 2.29 | 2.78 | 4.91 | 7.75 |
| Colombia | 2.02 | 2.20 | 2.76 | 4.22 | 5.21 |
| Total Thermal Coal | 9.46 | 9.25 | 10.27 | 18.71 | 22.22 |
| Grand Total | 15.30 | 13.40 | 15.53 | 28.71 | 33.02 |
Source: Anglo American
Quantity in MnT
During the first half period of CY19 (Jan-Jun’19), Anglo American’s net coal production totaled 28.71 MnT, down 13% Y-o-Y from 33.02 MnT in corresponding half year period of CY18.
The company has set production guidance for metallurgical coal at between 22-24 MnT for CY19, while target for thermal coal earmarked for exports was marked at 26-28 MnT.
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