Anglo American, a leading global mining company, carrying out its coal operations in Australia, South Africa and Colombia, has lowered production guidance for export thermal coal.
The company has said thermal coal production entitled for exports would be at the lower end of the earlier set guidance range of 26-28 MnT, following dismal performance at its Cerrejón mine in Colombia.
Apparently, coal output recorded from Colombia has fallen 20% Y-o-Y to 6.27 MnT in the first 9 months of CY19 (Jan-Sep’19), which has eventually pulled down Anglo American’s total production by 9% in the period.
It is pertaining to note that Anglo American’s thermal coal production is chiefly envisaged for exports, but part of the output procured from its South African coal asset is also entitled for sales in the domestic market.
In the 9-month period of CY19, company’s coal production has reached 28.11 MnT, of which 20.57 MnT coal was mined specifically for exports.
During the third quarter of CY19 (Jul-Sep’19), Anglo American’s thermal coal production was down 13% Y-o-Y to 9.4 MnT as against 10.82 MnT noted in Q3 CY18. The company stated that export thermal coal production from South Africa fell 15% Y-o-Y to 4.29 MnT in accordance with the planned decrease in output as certain sections near their end of life. While production from Colombia dropped 23% due to weather related impacts.
| Grade/Origin | Q3 CY19 | Q3 CY18 | % Change |
| Metallurgical Coal (Australia) | |||
| Hard Coking Coal | 5.62 | 4.55 | 24% |
| PCI/SCC | 0.95 | 0.84 | 14% |
| Total | 6.57 | 5.38 | 22% |
| Thermal Coal | |||
| Australia | 0.44 | 0.46 | -4% |
| South Africa (Export) | 4.29 | 5.05 | -15% |
| South Africa (Domestic) | 2.62 | 2.65 | -1% |
| Colombia | 2.06 | 2.66 | -23% |
| Total | 9.40 | 10.82 | -13% |
| Grand Total | 15.97 | 16.20 | -1% |
Source: Anglo American
Quantity in MnT
Guidance for Metallurgical Coal Production Unchanged:
Anglo America has kept the same metallurgical coal production guidance, affixed at 22-24 MnT for CY19.
During the third quarter, metallurgical coal increased by 22% to 6.6 MnT due to improvements in wash plant throughput and equipment productivity as well as the timing of long wall moves. However, the company had stated that significant impact on production is expected from long wall moves in the fourth quarter.
In the first 9-months of CY19, Anglo American’s metallurgical coal production has reached 16.57 MnT, up 2% Y-o-Y from 16.18 MnT noted in the year-ago period.
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