Anglo American’s Coal Output Drops, Revises Full Year Guidance for Thermal Coal

The British multinational company Anglo American headquartered in Johannesburg, South Africa has released its first quarter (Jan-Mar) results and its guidance for the ongoing year 2020.

While the company’s metallurgical coal production decreased by 8% to 3.8 MnT due to the timing of longwall moves, the start of a COVID-19 lockdown in South Africa and various social distancing measures in other countries resulted in its thermal coal output to drop by 7% y-o-y basis in Q1 CY20 to 6.6 MnT.

Thermal Coal South Africa – Export thermal coal production reduced by 5% y-o-y to 4.2 MnT as sections at Goedehoop approach their end of life, as well as a limited initial impact from the COVID-19 lockdown in South Africa. Whereas domestic thermal coal production surged by 9% q-o-q basis from 2.3 MnT in Q1 CY19 to 2.5 MnT in Q1 CY20.

Thermal Coal Colombia – Attributable export thermal coal production decreased by 10% to 2 MnT as a result of planned lower production in response to weak market conditions and the initial impact of COVID19.

Metallurgical Coal – Export metallurgical coal production decreased by 8% to 3.8 million tonnes primarily due to a longwall move at Grosvenor. Production at Moranbah increased, despite a roof collapse on 30 January during a long wall move, because of its extended longwall move in Q1 2019; the operation is on track for restart at the beginning of June.

The ratio of hard coking coal production to PCI/semi-soft coking coal was 79:21 (Q1 2019: 79:21).

Full-Year Guidance

Production guidance for metallurgical coal is unchanged at 19-21 million tonnes, subject to the extent of further COVID-19-related disruptions.

Production guidance for export thermal coal based on the current lockdown measures in South Africa and Colombia has been revised to 22 million tonnes (previously 26 million tonnes), subject to the extent of further COVID-19-related disruptions.