JOHANNESBURG (miningweekly.com) –  Most of Anglo American’s mining sites around the world are continuing to operate, with appropriate health, hygiene and distancing measures.

The diversified mining company said on Thursday that it was taking all necessary steps to ensure the security and integrity of its assets for the long term and preserving its ability to return affected operations swiftly to normal levels of production when appropriate.

Mining Weekly can report that the London- and Johannesburg-listed company is also implementing a number of cash improvement measures. These include operating cost reductions of $0.5-billion and a $1-billion reduction to 2020 capital expenditure guidance.

“This further builds on our already robust current liquidity position of $14.5-billion,” Anglo American CE Mark Cutifani stated.

Anglo has a portfolio of growth options spanning different products and time horizons and is acting to protect its optionality through this uncertain Covid-19 period and has taken steps to de-densify is workforce, screen health rigorously and isolate where needed.

At its platinum group metals (PGM) operations in South Africa, the Mogalakwena mine is operating with 50% of the workforce. The joint venture (JV) mines of Amandelbult and Mototolo and the Mortimer and Waterval smelters are on temporary care and maintenance. Polokwane smelter is continuing to operate. Repair of the Anglo Converter Plant is on track to start up by May 25 and full PGMs production is expected by year-end.

At its export thermal coal operations in South Africa, operations are continuing with 50% of the workforce and production is expected to increase through May and June.

At its Cerrejón thermal coal JV in Colombia, temporary care and maintenance has been implemented.

At its Kumba iron-ore operations in South Africa, it is functioning with half the workforce and production is expected to progressively increase through May and June.

At its iron-ore operation in Brazil, Minas-Rio is operating at normal levels with appropriate safety protocols in place to ensure physical distancing. The scheduled one-month production stoppage to carry out routine internal scanning of the pipeline has been deferred to the second half of the year.

At its diamond subsidiary De Beers, lockdown measures have significantly impacted diamond production in Southern Africa, manufacturing in India and retail operations in the US, while consumer demand has returned to the Chinese market. Production guidance for 2020 has been reduced in line with anticipated demand by seven-million carats to 25-million to 27-million carats, with lower volumes at all operations.

At its copper operations in Chile, copper production at the Los Bronces and Collahuasi mines is at normal levels, despite the workforce being halved at Los Bronces and reduced by 40% at Collahuasi, to ensure adequate de-densification and health screening measures. At its metallurgical coal operations in Australia, normal levels are being maintained despite revised rotations being implemented to manage physical distancing and the impact of interstate travel restrictions.

At its nickel operation in Brazil, the Barro Alto operation is continuing at normal levels with appropriate protocols in place to ensure physical distancing.

Anglo stated that prevailing measures to deal with Covid-19 and economic uncertainty are likely to result in delays to both project approvals and commissioning of certain in-progress projects.

In Peru, where strict national quarantine measures are in place, Anglo withdrew most of its 15 000-strong workforce from its Quellaveco copper project site in mid-March and non-critical works have been suspended for up to three months.

An extensive health awareness and support programme called “WeCare” has been implemented and operational colleagues with Covid-19 symptoms are being reported via the company’s ‘Engage’ app that triggers medical assistance.