- Planned maintenance at Kumba, lower grades at Minas-Rio weigh on production
- Premium iron ore guidance kept unchanged despite maintenance-led decline
Anglo American, one of the world’s leading iron ore producers, reported premium iron ore production of 15.39 million tonnes (mnt) in Q2CY’26, down 3% y-o-y from 15.94 mnt in Q2CY’25, but 1% higher q-o-q compared with 15.21 mnt in Q1CY’26. The decline was mainly due to planned plant maintenance at Kumba in South Africa and lower ore grades and mass recovery at Brazil’s Minas-Rio operation.
Kumba output declines on planned maintenance
Kumba’s iron ore production stood at 8.84 mnt in Q2CY’26, down 4% y-o-y from 9.26 mnt in the corresponding quarter last year, while remaining largely unchanged q-o-q.
The decline was primarily driven by a 16% drop in Kolomela’s output to 2.37 mnt, following a planned plant maintenance shutdown carried out alongside scheduled rail maintenance. However, this was partly offset by a 1% increase in Sishen’s production to 6.48 mnt, supported by improved plant feedstock and higher plant availability despite heavy rainfall during the quarter.
Kumba’s sales declined 4% y-o-y to 9.42 mnt, impacted by a 10-day third-party logistics maintenance shutdown in May. Q-o-q, however, sales improved 3%, aided by lower port inventories. Finished stock stood at 7.0 mnt at the end of June, compared with 7.3 mnt in Q1CY’26.
Minas-Rio production dips; sales recover q-o-q
Minas-Rio’s pellet feed production stood at 6.55 mnt in Q2CY’26, down 2% y-o-y from 6.68 mnt, but up 3% q-o-q from 6.37 mnt.
Production was affected by lower ore grades and reduced mass recovery, although improved plant performance and more stable ore feed supported sequential growth.
Pellet feed export sales rose to 7.30 mnt, up 10% y-o-y from 6.64 mnt and 28% q-o-q from 5.70 mnt, supported by stronger shipment volumes during the quarter.
Operational trends remain mixed
Premium iron ore production moderated during the quarter as maintenance activities and lower ore quality impacted operations across both business units. However, sales remained resilient, supported by inventory drawdowns at Kumba and improved exports from Minas-Rio.
For H1CY’26, Anglo American realised an average premium iron ore price of $87/wmt FOB, down 2% y-o-y. Kumba’s realised price averaged $90/wmt FOB, while Minas-Rio realised $82/wmt FOB, reflecting continued premiums for higher-grade products despite lower benchmark prices.
Production guidance maintained for CY’26
The company has retained its CY’26 premium iron ore production guidance at 55-59 mnt, comprising 31-33 mnt from Kumba and 24-26 mnt from Minas-Rio.
The company expects Kumba’s production to remain weighted towards the first half due to the planned Ultra-High-Dense-Media-Separation (UHDMS) project tie-in in H2CY’26, while sales are expected to remain unaffected through inventory drawdowns. Kumba’s performance will continue to depend on third-party rail and port availability.
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