"We are focused on continuing to deliver our strategic priority of operational excellence – improving performance stability is driving increased confidence in operational plans, including production volumes and unit costs," said CEO Duncan Wanblad in a media release.
The multinational miner also announced plans to accelerate its strategy by simplifying its portfolio and focusing on world-class assets in copper, premium iron ore, and crop nutrients.
Anglo aims to complete this transformation by the end of 2025, with a focus on optimising value for shareholders and achieving significant cost savings.
Despite the overall positive performance, there were significant challenges in its diamond business due to subdued Chinese consumer demand.
The company is actively assessing options to reduce production and manage working capital.
Elsewhere in the business an underground fire at the Grosvenor mine led to its suspension, impacting steelmaking coal production guidance for the second half of the year.
The statement also outlines a renewed commitment to its sustainability goals and the ambition to be carbon neutral across all operations by 2040.
This is captured in the Sustainable Mining Plan which outlines stretching goals to ensure a healthy environment, thriving communities, and trust as a corporate leader.
Copper: 2% higher than the first half of 2023, driven by record throughput at Collahuasi
Iron ore: Flat year-on-year, with record second quarter production at Minas-Rio offset by a planned decrease at Kumba
PGMs: 2% lower, reflecting lower volumes from Kroondal and other mines
Diamonds: 15% decrease due to proactive inventory management and subdued Chinese demand
Steelmaking coal: 26% increase (excluding Grosvenor), driven by higher production at Grosvenor and Dawson
Nickel: Broadly flat, reflecting operational stability
In May 2024 Anglo announced plans to unbundle and divest some of its assets while fighting off BHP takeover advances.
Amplats, De Beers, the steelmaking coal and nickel businesses were all on the chopping block.
At the time Wanblad said that he was “conscious of the impacts of making such far-reaching changes, particularly on our employees”.
By implementing these portfolio changes ourselves, we will be able to do so in a manner that is respectful of our employees, host communities and countries, including ensuring that in South Africa in particular Anglo American continues to play its role as a responsible business leader to support the country’s national priorities
The cuts that would lead to the “radically simpler business” Wanblad proposed then is reflected in the drags on the current production report.
Anglo also explained that it is reviewing the carrying value of its Woodsmith polyhalite fertiliser project due to a decision to re-phase development.
Overall, the Q2 2024 production report demonstrates a commitment to operational excellence and strategic transformation, positioning the company for continued growth and success in the mining industry.
