Anglo American's diamond, copper production falls in second quarter amid De Beers sale

Anglo American saw generally lower production of its metals and minerals in the second quarter as it advances the sale of the diamond group De Beers as part of a substantial portfolio simplification strategy.

The global mining group said in a production report on Thursday for the second quarter to June 30 that rough diamond production fell 36%, while copper production fell 11% during the three months due to sluggish demand.

The group is restructuring its portfolio to focus on copper, as it is a key metal in the burgeoning demand for electric vehicles and renewable energy infrastructure. The group is also focused on iron ore. The changes follow an attempt by BHP to take it over last year.

Anglo American directors said Thursday that the demerger of its platinum business on May 31, 2025, had been a success, but that the sale of its nickel and coking coal assets had not yet been completed. Platinum is not used to a great extent in renewable energy infrastructure.

Group CEO Duncan Wanblad said in a statement: "I am pleased to report another solid quarter in Copper and Iron Ore, with both businesses tracking to guidance. In Copper, we benefited from strong performance at both Quellaveco and Los Bronces, while Collahuasi improved from its first quarter.

"In Iron Ore, our focus is to drive the right results with another excellent quarter of delivery from both Minas-Rio and Kumba,” he said.

"Our reorganisation and cost reduction programs are on track. The demerger of Valterra Platinum at the end of May 2025 has been a great success, with considerable value unlocked for shareholders,” he said.

In Steelmaking Coal, good progress had been made at Moranbah following the methane event on March 31, with a full restart expected in due course. “On this basis, we continue to believe this event does not constitute a material adverse change under our agreements with Peabody,” he said.

"Looking beyond this transitionary year, we will emerge as a highly differentiated, higher margin, and more cash-generative business,” he said.

During the quarter, copper production fell 11% to 173 kt over the same period a year before. Diamond production was 36% lower at 4.1 McT. Steelmaking coal was 51% lower at 2.1 Mt. Nickel was 5% lower at 9.5 kt. Manganese ore was 109% higher at 746 kt.

Copper production reflected higher production from Quellaveco in Peru as a result of higher plant throughput, offset by planned lower production in Chile, which resulted in an 11% decrease year-on-year.

Manganese ore production increased by 109% primarily due to the resumption of mining at the Australian operations following the damage caused by a tropical cyclone in March 2024. Export sales resumed progressively from the second half of May.

The lower rough diamond production reflected the continued production response to the prolonged period of lower demand. In contrast to the ongoing challenging trading conditions, consumer demand for diamond jewellery remained broadly stable in the first half of the year, the group said.

Steelmaking coal production fell primarily due to the suspension of Grosvenor since June 2024, the sale of Jellinbah in November 2024, and the event at Moranbah in March 2024.

Anglo American’s share price was up 0.69% to R558.28 on Thursday morning on the JSE. A year before, the volatile share price was at R530.32.

BUSINESS REPORT