Duncan Wanblad, Chief Executive of Anglo American, has said group had a strong start to the year in copper and iron ore, with both businesses performing in line with guidance.
“In copper, Quellaveco and Los Bronces (in Chile) are both performing well, helping to offset the expected lower grades and variability in recoveries at Collahuasi (in Chile).
In iron ore, Kumba (South Africa) posted another solid quarter and increased iron ore sales as Transnet saw better rail logistics performance, and Minas-Rio had another excellent quarter. Our focus on operational excellence is delivering valuable stability to our simplified portfolio which provides a strong base for the rest of the year,” said Wanblad.
He added that the group is making good progress with its portfolio simplification as the company prepare to complete the transactions through which we will exit our PGMs, steel making coal and nickel businesses.
The demerger of Anglo American Platinum is expected to be effective from 31 May, subject to shareholder approval on 30 April.
Wanblad said the sale of its steelmaking coal business to Peabody Energy and the sale of its nickel business to MMG Singapore Resources continue to target completion by the third quarter of 2025.
“In the first quarter we finalised a new long-term diamond sales agreement with the Government of Botswana and we continue to pursue a dual track process to divest our interest in De Beers, which we are committed to completing at the right time and when market conditions allow.”
He said 2025 is undoubtedly a year of portfolio and organisational transition for Anglo American and said the company will emerge as a highly differentiated, sustainably higher margin and higher return on capital employed investment proposition, well positioned for its next phase of growth and value delivery.
“While the impact of tariffs on the global economy is uncertain in the short-term, we have conviction in the strong longer-term outlook for our products, which have scope to become even more important to the changing global economy in coming years. Our restructuring and cost savings programme remains on track, giving us confidence that we are well on our way to reshaping our business and embedding far greater resilience, both through the cycle and in the current volatile macro environment.”
Wanblad said looking ahead, the group working at pace with Codelco of Chile to secure definitive agreements later this year to develop a joint mine plan for its respective Los Bronces and Andina copper mines.
“We are also advancing our considerable pipeline of organic growth options, with the recent designation of our polymetallic Sakatti project in Finland as a ‘Strategic Project’ by the European Commission further increasing confidence in our growth path to oe million tonnes of annual copper production.” -www.jse.co.za
