Anglo American, a multinational diversified miner, has announced its expectations for lower production next year due to near-term constraints and volatile market conditions. However, the company plans to counter this with a cost reduction of $1 billion.
For the year 2023, Anglo American has seen an increase of approximately 3% in its output, driven by the ramp-up of operations at its Peruvian copper project Quellaveco and solid iron ore production. These positive factors have offset the lower production of platinum metals and diamonds.
Looking ahead to the next year, the mining giant anticipates a decrease in production of around 4%, primarily by reducing production at its Kumba iron ore operations in South Africa.
To navigate through the ongoing market volatility, particularly in the platinum metals market, Anglo American aims to lower its costs by $1 billion in 2024.
As a result of these efforts, the company expects to achieve a lower cost per unit in 2024 and reduce capital expenditure by $1.8 billion between 2023 and 2026.
Chief Executive Duncan Wanblad emphasized the company’s focus on safety, operational discipline, and capital allocation as key areas under their control.