One of world’s major miner – Anglo American announced reduction in its Kumba iron ore production guidance for 2020,2021 and 2022. The production guidance has been trimmed to 42-43 MnT for each year against being 43-44 MnT set previously. However, the output estimate for 2019 remains intact at 42-43 MnT. Also, no change has been made to Minas rio output estimates.
Anglo said that achieving the output targets would be “subject to rail performance”, adding that “domestic offtake volumes” had led the company to decrease its guidance for 2020 forward from the previous range.
Towards mid of Nov’19, Anglo American had announced a rise in its Minas Rio iron ore production guidance for the year to 23 MnT against previously set guidance at 20-22 MnT, with proportionate decrease in unit cost. The miner upgraded production guidance estimates at Minas Rio for 2020 to 22-24 MnT (against previous guidance at 21-23 MnT) and for 2021 to 24-26 MnT (against previous set at 22-24 MnT).
Anglo American Kumba iron ore production for Q3 CY19 witnessed stable at 10.5 MnT as increased production at Sishen mines was offset by lower production due to plant upgrade at Kolomela mines. The Kumba iron ore exports in Q3 CY’19 dropped slightly to 9.7 MnT as against 9.8 MnT in last quarter.The Kumba iron ore domestic sales dropped sharply by 32% to 0.5 MnT against 0.72 MnT in Q2 CY19.
Minas Rio mines, pellet production for the quarter Q3 CY19 witnessed at 6.1 MnT (wet MT basis), up against 5.9 MnT in Q2 CY19 amid ramp-up at mines.
| Iron Ore Mines | Revised Production Guidance Estimate | Previous Production Guidance Estimate | ||||||
| 2019 | 2020 | 2021 | 2022 | 2019 | 2020 | 2021 | 2022 | |
| Kumba | 42-43 | 42-43 | 42-43 | 42-43 | 42-43 | 43-44 | 43-44 | 43-44 |
| Minas Rio | 23 | 22-24 | 24-26 | 23-25 | 23 | 22-24 | 24-26 | 23-25 |
Qty in MnT
Source: Company Reports
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