Diviersfied miner Anglo American, which is set to merge with Teck Resources, has achieved a "solid quarter in copper and iron-ore", CEO Duncan Wanblad says, adding that the group is well positioned to meet its 2025 full-year guidance.

The group has also raised the full-year production guidance for its Minas-Rio iron-ore mine, in Brazil, to between 23-million and 25-million tonnes, from the 22-million to 24-million tonnes previously guided, on the back of a strong operational performance so far this year, as well as the successful completion of a five-yearly pipeline inspection at the operation.

Anglo's copper production for the quarter ended September 30 increased by 1% year-on-year to 183 500 t. "Strong operational momentum and higher grades at both Quellaveco and Los Bronces underpinned performance, offsetting the current lower production phase at Collahuasi, which is expected to recover by the end of 2026," Wanblad points out.

At Collahuasi, in Chile, the group's attributable share of copper production decreased by 27% year-on-year to 47 400 t as a result of the anticipated lower ore grades and a higher-than-expected level of oxidisation in the stockpiles impacting copper recovery.

Production at the mine is expected to benefit from higher grades in the final quarter of this year, while plant throughput has sequentially improved this quarter as a result of improved water availability, as Collahuasi started receiving ultra-filtered sea water through the pipeline infrastructure of the new desalination plant. The desalination plant is expected to be fully operational during the first half of 2026.

Production at the Los Bronces mine, in Chile, meanwhile, increased by 14% year-on-year to 41 800 t in the September quarter, reflecting a high level of compliance to the mine plan, the benefit of higher grades and improved plant performance and recoveries.

Mining flexibility at Los Bronces continues to improve as the Donoso 2 development is progressing ahead of schedule, with this phase now allowing wider access to higher-grade, softer ore. Full development of Donoso 2 is expected to be completed by early 2027, Anglo reports.

Further, the El Soldado mine, in Chile, recorded a 3% year-on-year decrease in output to 11 000 t of copper for the third quarter as a result of planned lower ore grades from the processing of lower-grade stockpiles.

In Peru, Anglo's Quellaveco mine increased its output by 21% year-on-year to 83 300 t for the September quarter, benefiting from a strong plant performance, which enabled higher recoveries and higher throughput.

Meanwhile, Anglo's overall iron-ore production decreased by 9% year-on-year to 14.3-million tonnes for the third quarter. Production at Minas-Rio decreased by 19% year-on-year to 5.1-million tonnes, mainly as a result of a 23-day planned shutdown in August for pipeline inspection activities, which were completed ahead of schedule.

In South Africa, Anglo's Kumba Iron Ore subsidiary produced 9.2-million tonnes of iron-ore for the quarter – a 2% year-on-year decrease.

The group's manganese production, meanwhile, increased by 140% year-on-year to 972 800 t for the third quarter, reflecting more normalised production levels following the impact of the temporary suspension at the Australian operations as a result of tropical cyclone Megan in March 2024.

COAL, DIAMONDS & NICKEL
Reporting on the business units it is exiting, Anglo noted that its steelmaking coal production decreased by 54% year-on-year to 1.9-million tonnes, while diamond production increased by 38% year-on-year to 7.7-million carats and nickel production increased by 2% year-on-year to 10 100 t.

Steelmaking coal production was mainly impacted on by the fire incident at Moranbah North in March, and the sale of Anglo's minority interest in Jellinbah which was completed in January.

US-based Peabody Energy, which in November 2024 agreed to buy Anglo's steelmaking coal business in Australia has terminated its plans to acquire the business following the fire at Moranbah North. Anglo has started an arbitration process in this regard.

"We are committed to exiting the steelmaking coal business and preparations are under way to restart the formal sales process in the coming months," the group says.

Anglo's nickel business is set to be acquired by MMG Singapore Resources subject to relevant approvals.

"We made further progress with our portfolio simplification, successfully divesting our residual 19.9% interest in Valterra Platinum, raising cash proceeds of about $2.5-billion. We continue to work through the regulatory approvals for the nickel transaction and, for De Beers, we are making good progress with the dual track separation and a structured sale process is currently under way," comments Wanblad.

OUTLOOK
"Looking ahead, and building on the substantial value we have already unlocked through our own portfolio transformation, our agreement to merge with Teck represents our next major strategic step to accelerate value-accretive growth, with the combined company forming a global critical minerals champion offering more than 70% copper exposure.

"Our recent agreement with Codelco to implement a joint mine plan for the adjacent Los Bronces and Andina operations in Chile serves as another example of delivering compelling industrial synergies as a means to drive our copper growth ambitions," adds Wanblad.

Anglo's copper production guidance for the full-year remains unchanged at between 690 000 t and 750 000 t, while the iron-ore production guidance has increased to between 58-million and 62-million tonnes, as a result of the higher expected output at Minas-Rio.

The group's diamond production guidance for the full-year remains unchanged at 20-million to 23-million carats, as challenging rough diamond trading conditions persist.