REG - Anglo American PLC - Anglo American Production Report Q1, 2017 <Origin Href="QuoteRef">AAL.L</Origin>

Anglo AmericanAnnouncement

24/04/2017 07:06

RNS Number : 0539D
Anglo American PLC
24 April 2017
NEWSRELEASE
24 April 2017
AngloAmerican plc
ProductionReport for thefirst quarterended 31 March 2017
http://www.rns-pdf.londonstockexchange.com/rns/0539D_-2017-4-21.pdf
Overview
Q1 2017
Q1 2016
% vs. Q1 2016
Diamonds (Mct)(1)
7.4
6.9
8%
Platinum (produced ounces) (koz)(2)
572
567
1%
Copper (t)(3)(4)
142,600
146,500
(3)%
Iron ore - Kumba (Mt)
10.5
8.9
17%
Iron ore - Minas-Rio (Mt)(5)
4.3
3.3
30%
Export metallurgical coal (Mt)
5.2
4.1
28%
Export thermal coal (Mt)(6)
6.8
6.5
6%
Nickel (t)(7)
9,900
11,200
(12)%
MarkCutifani,ChiefExecutive of AngloAmerican,said"A strong operational performance enhanced by the continued ramp-up of Gahcho Ku, Minas-Rio and Grosvenor delivered an 9% increase in production on a copper equivalent basis(8). The operating improvements at Sishen and ongoing portfolio refinements are further strengthening Anglo American's resilience and competitive position. De Beers' total sales volumes of 14.1 million carats reflected improved demand for lower value goods in stock at 31 December 2016."
Rough diamond productionincreasedby8%to7.4 millioncarats compared with Q1 2016. This reflected the contribution of Gahcho Ku in Canada, as well as increases in response to improved trading conditions.
Platinum production(metalinconcentrate)(2)was broadly flat at 572,000 ounces. With the sale of Rustenburg, production from that operation is now treated as purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by 26%). Refinedplatinumproduction increasedby 121%to 577,000 ounces as Q1 2016 was impacted by a Section 54 safety stoppage at the Precious Metals Refinery.
Copper production decreased by 3% to 142,600 tonnes. Continued strong performance at Collahuasi was offset by expected lower grades and increased ore hardness at Los Bronces, and the temporary suspension of mining operations at El Soldado which resulted in ~3,000 tonnes of lost production. 
Iron ore production from Kumba increased by 17% to 10.5 million tonnes due to improved mining productivity at Sishen, and higher throughput at Kolomela.
IronoreproductionfromMinas-Rio increased by 30%to4.3million tonnes (wet basis)asthe operationcontinuedto ramp-up.
Export metallurgical coal production increased by 28% to 5.2 million tonnes, primarily due to a longwall move at Moranbah in Q1 2016 and the ramp-upatGrosvenor.
Production of South African and Colombian export thermal coal increased by 6% to 6.8 million tonnes, driven by higher productivity across most of the South African mines.
Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces, impacting throughput.
(1)DeBeersproductionon100% basis except the Gahcho Ku joint venture which is on an attributable 51% basis;(2)Reflectsownmineproductionand purchasesofmetalinconcentrate;(3)CopperproductionfromtheCopperbusinessunit;(4)Copperproduction shownonacontained metalbasis; (5) Wetbasis; (6) Export thermal coal includes export primary production from South Africa and Colombia, and excludes secondary South African production that may be sold into either the export or domestic markets; (7)Nickelproductionfrom theNickelbusinessunit;(8)Copper equivalentproductionisnormalisedfor, Kimberley, Niobium & Phosphates, Foxleigh and Callide, andtoreflectSnapLakebeingplacedoncareandmaintenance, and the closure of Drayton.
DE BEERS
Q1 2017
Q1 2016
Q1 2017 vs. Q1 2016
Q4 2016
Q1 2017 vs. Q4 2016
Diamonds(1)
Debswana
000 carats
 5,191 
 5,328 
(3)%
 5,440 
(5)%
Namdeb Holdings
000 carats
 472 
 444 
6%
 428 
10%
DBCM
000 carats
 1,106 
 932 
19%
 1,387 
(20)%
De Beers Canada
000 carats
 631 
 162 
290%
 497 
27%
Total carats recovered
000 carats
 7,400 
 6,866 
8%
 7,752 
(5)%
DeBeers- Rough diamondproductionincreasedby8%to7.4 millioncarats, reflecting the contribution of Gahcho Ku in Canada, as well as increases in response to improved trading conditions.
Debswana's (Botswana) production decreased marginally to 5.2 million carats. Jwaneng's, production decreased by 8% due to expected lower grades, partly offset by Orapa, which increased by 5% due to expected higher grades.
Production at Namdeb Holdings (Namibia) increased by 6% to 0.5 million carats due to marginally higher grade at Namdeb.
In DBCM (South Africa), production increased by 19% to 1.1 million carats largely as a result of higher grades at Venetia. 
Production in Canada increased by 290% to 0.6 million carats due to the contribution of Gahcho Ku, which reached commercial production on 2 March 2017.
Total rough diamond sales volumes in Q1 2017 were 14.1 million carats (13.7 million carats on a consolidated basis(2)) from three Sights, compared with 8.1 million carats (7.6 million carats on a consolidated basis(2)) from two Sights in Q1 2016. In addition, this increase reflected stronger demand in Sight 1 2017, particularly for lower value goods in stock at 31 December 2016.
Full Year Guidance
Full year production guidance(1) remains unchanged at 31-33 million carats, subject to trading conditions.
(1) De Beers production is on a 100% basis, except for the Gahcho Ku joint venture which is on an attributable 51% basis.
(2) Consolidated sales volume excludes De Beers' JV partners' 50% proportionate share of sales to entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, and includes pre-commercial production sales volumes from Gahcho Ku.
De Beers
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017 
vs. 
Q1 2016
Q1 2017 vs. 
Q4 2016
Carats recovered 
(000 carats)
100% basis (unless otherwise stated)
 Orapa
 2,106 
 2,366 
 1,536 
 2,028
 2,001 
5%
(11)%
Letlhakane
 130 
 135 
 176 
 159 
 125 
4%
(4)%
Damtshaa(1)
 - 
 - 
 - 
 - 
 - 
-
-
Jwaneng
 2,955 
 2,939 
 2,837 
 2,997 
 3,202 
(8)%
1%
Debswana
 5,191 
 5,440 
 4,549 
 5,184 
 5,328 
(3)%
(5)%
Namdeb
 94 
 118 
 120 
 94 
 72 
31%
(20)%
Debmarine Namibia
 378 
 310 
 285 
 202 
 372 
2%
22%
Namdeb Holdings
 472 
 428 
 405 
 296 
 444 
6%
10%
Kimberley
 - 
 - 
 - 
 - 
 68 
(100)%
- 
Venetia
 939
 1,218 
 898 
 695 
 706 
33%
(23)%
Voorspoed
 167 
 169 
 196 
 126 
 158 
6%
(1)%
DBCM
 1,106 
 1,387 
 1,094 
 821 
 932 
19%
(20)%
Snap Lake
 - 
 - 
 - 
 - 
 3 
(100)%
- 
Victor
 189 
 148 
 142 
 147 
 159 
19%
28%
Gahcho Ku (51% basis)
 442 
 349 
 83 
 - 
 - 
- 
27%
De Beers Canada
 631 
 497 
 225 
 147 
 162 
290%
27%
Total carats recovered
7,400
7,752
6,273
6,448
6,866
8%
(5)%
Sales volumes
Total sales volume 
(100%) (Mct)(2)
14.1
8.0
5.7
10.2
8.1
74%
75%
Consolidated sales volume (Mct)(2)(3)
13.7
7.5
5.3
9.6
7.6
80%
82%
Number of Sights 
(sales cycles)
3
3
2
3
2
(1) Damtshaa (a satellite operation of Orapa) was placed on care and maintenance from 1 January 2016).
(2) Consolidated sales volumes exclude De Beers' JV partners' 50% proportionate share of sales to entities outside the De Beers Group of Companies from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volume. 
(3) Consolidated sales volume includes pre-commercial production sales volumes from Gahcho Ku. 
PLATINUM
Platinum
Q1 2017
Q1 2016
Q1 2017
vs.
Q1 2016
Q4 2016
Q1 2017
vs.
Q4 2016
Produced ounces
000 oz
572
567
1%
610
(6)%
 Own mined
000 oz
325
439
(26)%
387
(16)%
 Purchase of concentrate
000 oz
247
128
93%
223
11%
Refined
 Platinum
000 oz
577
261
121%
632
(9)%
 Palladium
000 oz
353
182
95%
397
(11)%
 Rhodium
000 oz
74
48
55%
92
(20)%
 Gold
000 oz
25
28
(11)%
34
(27)%
 Nickel 
t
5,100
5,700
(11)%
6,200
(18)%
 Copper 
t
3,200
3,300
(3)%
3,300
(3)%
Platinum-Platinum production(metalinconcentrate)was broadly flat at 572,000 ounces. With the sale of Rustenburg, which completed in November 2016, production from that operation is now treated as purchase of concentrate (which increased by 93%) rather than own mined production (which decreased by 26%).
Own mined production
Mogalakwenaproductionincreasedby 3%to 111,900ounces as a result of stronger plant recoveries and increased throughput. 
Amandelbult production decreased by 12% to 97,100 ounces primarily due to unusually heavy rainfall resulting in flooded open pits, which also impacted feed chutes to the concentrator plants, as well as minor industrial action which impacted production for two days.
Union increased production by 10% to 37,700 ounces due to improved crew efficiencies and mining closer to the shaft area in line with the optimised mine plan. The sale of Union to Siyanda Resources was announced on 15 February. The sale is expected to complete during 2017, after which Siyanda will sell concentrate produced by Union to Platinum for a period of seven years and thereafter Platinum will toll treat concentrate for the remaining life of Union. 
Mined production from independently managed operations decreased by 3% to 59,000 ounces primarily due to lower production at Kroondal following a two-day illegal strike, and lower grade at both Kroondal and Mototolo. This was partially offset by higher production at Modikwa due to improved plant recoveries.
Purchase of concentrate
Purchase of concentrate from independently managed operations was flat at 123,700 ounces as increased production at BRPM offset lower production at Bokoni following a fatality and subsequent Section 54 safety stoppage, as well as the 3% decrease from Modikwa, Mototolo and Kroondal described above. 
Purchase of concentrate from third parties increased by nearly 120,000 ounces largely due to the inclusion of concentrate from Rustenburg, following the sale of these operations to Sibanye in November 2016. 
Refined production
Refinedplatinumproduction increasedby 316,100 ouncesto 576,900ounces with Q1 2016 refined production having been materially impacted by a Section 54 safety stoppage at the Precious Metal Refinery.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in Q4 2016 and is now running at steady-state; the backlog of 65,000 ounces is expected to be processed during 2017. The Number 2 furnace underwent planned maintenance and has now been successfully rebuilt. It is ramping-up to full capacity, which is expected in Q2 2017.
Full Year Guidance
Full year production guidance of metal in concentrate remains unchanged at 2.35 - 2.40 million ounces.
Platinum
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Produced platinum 
(000 troy oz)
571.9
610.0
619.1
585.7
567.0
1%
(6)%
Owned mined
324.6
386.8
468.3
443.5
439.1
(26)%
(16)%
Mogalakwena
111.9
103.4
100.7
98.8
109.0
3%
8%
Amandelbult
97.1
121.1
128.3
106.2
110.9
(12)%
(20)%
Unki
18.9
19.9
18.2
17.8
18.6
2%
(5)%
Independently managed mines(1)
59.0
60.1
64.9
66.8
60.9
(3)%
(2)%
Union
37.7
38.1
37.7
41.2
34.3
10%
(1)%
 Rustenburg(2)
- 
44.2
118.1
110.8
104.3
(100)%
(100)%
Other(3)
-
-
0.4
1.9
1.1
(100)%
-
Purchase of concentrate
247.3
223.2
150.8
142.2
127.9
93%
11%
Independently managed mines(1)
123.7
129.3
142.2
136.4
124.2
-
(4)%
Third party purchase of concentrate(2)
123.6
93.9
8.6
5.8
3.7
3241%
32%
Refined production
Platinum (000 troy oz)
576.9
631.6
694.6
747.6
260.8
121%
(9)%
Palladium (000 troy oz)
353.4
397.4
412.9
472.3
181.6
95%
(11)%
Rhodium (000 troy oz)
73.7
92.2
86.8
90.7
47.7
55%
(20)%
Gold (000 troy oz)
24.7
33.9
24.1
22.3
27.9
(11)%
(27)%
Nickel (000 tonnes)
5.1
6.2
7.1
6.4
5.7
(11)%
(18)%
Copper (000 tonnes)
3.2
3.3
3.8
3.7
3.3
(3)%
(3)%
4E Built-up head grade (g/tonne milled)(4)
3.47
3.41
3.19
3.00
3.11
12%
2%
Platinum sales volumes - own mined and purchase of concentrate
518.8
606.5
588.0
808.4
412.8
26%
(14)%
(1) Independently managed mines include the joint venture operations, Mototolo, Modikwa and Kroondal and the associates, Bokoni and BRPM.
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016. From this date production from Rustenburg is included within third party purchase of concentrate (POC). 
(3) Other includes Twickenham.
(4) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
COPPER
Copper(1)
Q1 
2017
Q1 
2016
Q1 2017 
vs.
Q1 2016
Q4 
2016
Q1 2017
vs. 
Q4 2016
Collahuasi (44% share)
t
57,700
51,100
13%
58,600
(2)%
Los Bronces
t
75,800
85,200
(11)%
74,300
2%
El Soldado
t
9,100
10,200
(11)%
13,700
(34)%
Total Copper
t
142,600
146,500
(3)%
146,600
(3)%
(1) Copperproduction shown on acontained metalbasis.
Copper - Copper production decreased by 3% to 142,600 tonnes.
At Collahuasi, attributable production increased by 13% to 57,700 tonnes, driven by higher grades and continued improvements in plant performance. Adverse weather conditions impacted mining operations, however plant throughput levels were maintained through the feed of stockpiled material. 
Production from Los Bronces decreased by 11% to 75,800 tonnes, although 2% higher compared to the prior quarter, with expected lower grades and increased ore hardness affecting throughput. In addition, planned major maintenance took place at both processing plants in the quarter.
El Soldado production decreased by 11% to 9,100 tonnes driven by the temporary suspension of mining operations from 18 February following the regulator's decision to not approve the mine plan update, which resulted in ~3,000 tonnes of lost production in Q1 2017. Engagement continues with the authorities.
Full Year Guidance
Full year production guidance remains unchanged at 570,000 - 600,000 tonnes, of which El Soldado represents 50,000 - 60,000 tonnes.
Copper (tonnes) on a contained metal basis unless stated otherwise(1)
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Collahuasi 100% basis 
(Anglo American share 44%)
Ore mined
13,803,300
20,335,200
17,131,800
15,277,400
14,858,200
(7)%
(32)%
Ore processed - Sulphide
12,336,400
12,302,700
12,522,100
12,479,200
12,102,800
2%
-
Ore grade processed - Sulphide (% TCu)(2)
1.24
1.29
1.23
1.21
1.15
8%
(4)%
Production - Copper cathode
100
700
800
1,400
1,900
(95)%
(86)%
Production - Copper in concentrate
131,000
132,400
128,900
126,300
114,200
15%
(1)%
Total copper production for Collahuasi
131,100
133,100
129,700
127,700
116,100
13%
(2)%
Anglo American's share of copper production for Collahuasi(3)
57,700
58,600
57,000
56,200
51,100
13%
(2)%
Anglo American Sur 
84,900
88,000
82,800
88,000
95,400
(11)%
(4)%
Los Bronces mine(4)
75,800
74,300
72,100
75,600
85,200
(11)%
2%
Ore mined
13,448,400
13,196,500
13,947,400
13,477,900
10,487,900
28%
2%
Marginal ore mined
11,461,400
8,445,700
6,192,800
6,148,500
13,402,300
(14)%
36%
Ore processed - Sulphide
11,877,400
11,562,500
11,511,700
12,567,500
12,055,300
(1)%
3%
Ore grade processed - Sulphide (% TCu)
0.69
0.69
0.65
0.62
0.74
(7)%
(1)%
Production - Copper cathode
8,900
8,600
8,800
8,900
9,700
(8)%
3%
Production - Copper in concentrate
66,900
65,700
63,300
66,700
75,500
(11)%
2%
El Soldado mine(4)
9,100
13,700
10,700
12,400
10,200
(11)%
(34)%
Ore mined
905,500
2,069,800
1,678,300
2,143,000
1,448,000
(37)%
(56)%
Ore processed - Sulphide
1,797,600
1,833,900
1,553,200
1,741,200
1,836,100
(2)%
(2)%
Ore grade processed - Sulphide (% TCu)
0.65
0.90
0.86
0.89
0.75
(13)%
(28)%
Production - Copper in concentrate
9,100
13,700
10,700
12,400
10,200
(11)%
(34)%
Chagres Smelter(4)
Ore smelted
31,300
25,900
35,500
36,500
35,900
(13)%
21%
Production
30,300
25,400
34,700
35,500
35,200
(14)%
19%
Total Copper segment copper production
216,000
221,100
212,500
215,700
211,500
2%
(2)%
Total Attributable copper production(5)
142,600
146,600
139,800
144,200
146,500
(3)%
(3)%
Total Attributable payable copper production
137,500
141,300
135,000
139,200
141,600
(3)%
(3)%
Total Attributable sales volumes
115,300
161,400
135,400
143,500
137,500
(16)%
(29)%
Total Attributable payable sales volumes
111,200
155,700
130,700
138,500
133,000
(16)%
(29)%
Third party sales(6)
9,800
20,100
26,000
6,700
9,200
7%
(51)%
(1) Excludes Anglo American Platinum's copper production.
(2) TCu = total copper.
(3) Anglo American's share of Collahuasi production is 44%.
(4) Anglo American ownership interest of Anglo American Sur is 50.1%.Production is stated at 100% as Anglo American consolidates Anglo American Sur.
(5) Difference between total copper production and attributable copper production arises from Anglo American's 44% interest in Collahuasi.
(6) Relates to sales of copper not produced by Anglo American operations.
IRON OREANDMANGANESE
IronOre andManganese
Q1 
2017
Q1
2016
Q12017
vs.
Q12016
Q4
2016
Q12017
vs.
Q42016
Iron ore-Kumba
000 t
 10,473
8,925
 17%
 11,928
(12)%
Iron ore-Minas-Rio(1)
000 t
4,342 
3,349
30%
4,855
(11)%
Manganese ore(2)
000 t
823
776
6%
804
2%
Manganese alloys(3)
000 t
31
32
(2)%
37
(18)%
(1) Wet basis.
(2) Saleableproduction.
(3) Productionincludes mediumcarbon ferro-manganese.
KumbaIronOre-Ironoreproductionincreasedby17%to 10.5milliontonnes.
Sishenproduced7.7 million tonnes, a 31% increase driven by improved mining productivity resulting in higher plant throughput. As expected, production decreased by 10% compared to the previous quarter as Q4 2016 benefitted from greater access to low strip ratio ore. Waste removal of 33.9 million tonnes, in line with Q1 2016, was hampered by higher than expected rainfall during the quarter but the run rates improved in the latter part of Q1 2017 to levels required to meet full year guidance of 150-160 million tonnes.
Kolomela production increased by 3% to 2.8 million tonnes, due to higher throughput. Waste removal increased by 32% to 10.1 million tonnes in support of production growth. Going forward, waste removal run rates are expected to improve to meet full year guidance for 2017 of 50-55 million tonnes.
Export sales increased by 7% to 10.1 million tonnes. Total finished product stocks were 3.2 million tonnes, compared with 3.5 million tonnes at 31 December 2016, in line with optimum level of ~3 million tonnes.
Full Year Guidance
Full year production guidance remains unchanged at 40-42 million tonnes.
IronOreBrazil-Iron ore production from Minas-Rio increased by 30% to 4.3 million tonnes (wet basis) as the operation continued to ramp-up to its current operating capacity. Production decreased by 11% compared to Q4 2016 due to expected lower grades, and the impact of higher rainfall at the start of the rainy season. After the Step 3 licences have been secured, expected in late 2018, the operation is expected to be in a position to produce at its nameplate capacity of 26.5 million tonnes (wet basis) per year. 
Full Year Guidance
Full year production guidance remains unchanged at 16-18 million tonnes (wet basis).
Manganeseore-Manganese ore production increased by 6% to 823,000 tonnes, mainly as a result of opportunistic sales of South African concentrate and the use of trucking to access export opportunities in response to favourable market conditions. Ore production from the Australian operations was broadly in line with Q1 2016. 
Manganesealloy-Manganesealloyproduction was broadly in line with Q1 2016 at 31,000 tonnes. The South African Manganese operations continue to operate only one of four furnaces.
Iron Ore and Manganese (tonnes)
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Kumba Iron Ore
10,472,600
11,927,900
11,759,900
8,863,600
8,924,500
17%
(12)%
By product:
Lump
6,978,800
7,812,000
7,598,500
5,721,300
5,669,700
23%
(11)%
Fines
3,493,800
4,115,900
4,161,400
3,142,300
3,254,800
7%
(15)%
By mine:
Sishen
7,678,900
8,489,900
8,348,700
5,699,600
5,841,800
31%
(10)%
Kolomela
2,793,700
3,438,000
3,411,200
3,164,000
2,713,100
3%
(19)%
Thabazimbi
-
-
-
-
369,600
-
Kumba sales volumes
Export iron ore
10,053,000
10,611,400
10,343,200
8,729,700
9,376,100
7%
(5)%
Domestic iron ore
832,700
612,700
706,900
936,000
1,167,700
(29)%
36%
Minas-Rio production
Pellet feed (wet basis)
4,341,700
4,855,300
4,452,400
3,483,800
3,349,400
30%
(11)%
Minas-Rio sales volumes
Export - pellet feed 
(wet basis)
4,256,500
4,761,800
4,510,400
3,223,900
3,714,400
15%
(11)%
Samancor
Manganese ore(1)
823,100
804,200
761,700
791,300
775,900
6%
2%
Manganese alloys(1)(2)
31,500
37,100
38,900
29,700
32,100
(2)%
(15)%
Samancor sales volumes
Manganese ore(3)
836,000
805,000
757,400
813,300
850,700
(2)%
4%
Manganese alloys
34,400
31,600
49,200
46,400
42,800
(20)%
9%
(1) Saleable production.
(2) Production includes medium carbon ferro-manganese.
(3) Comparatives have been restated.
COAL
Coal
Q1
2017
Q1
2016
Q12017
vs.
Q12016
Q4
2016
Q12017
vs.
Q42016
Australia - excluding 2016 divestments(1)
Metallurgical - Export
000 t
5,242
4,098
28%
5,360
(2)%
Thermal-Export
000 t
479
805
(40)%
595
(20)%
SouthAfrica
Thermal export - Primary(2)
000 t
4,059
3,842
6%
4,229
(4)%
Thermal export and domestic - Secondary(3)
000 t
978
779
26%
927
6%
Thermal domestic - Eskom
000 t
6,374
6,392
-
7,515
(15)%
Thermal domestic - Isibonelo(4)
000 t
896
1,160
(23)%
1,038
(14)%
Colombia
Thermal-Export
000 t
2,782
2,610
7%
2,801
(1)%
(1) Excludes production from Foxleigh, which was sold on 30 August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export - Primary is export quality product. Comparatives have been restated to align with current presentation.
(3) Thermal export and domestic - Secondary is lower quality product that can be sold into either the export or domestic markets. Comparatives have been restated to align with current presentation. In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
Australia-Exportmetallurgicalcoalproduction increased by 28%to5.2milliontonnesdueto a longwall move at Moranbah in Q1 2016 and production ramping up at Grosvenor.
Australian export thermal coal production decreased by 40% to 0.5 million tonnes as Drayton ceased mining activities in October 2016 following the New South Wales Planning Assessment Commission's recommendation not to approve the Drayton South Project.
Production was impacted by Cyclone Debbie with production losses in the last week of March. Mining activities have now restarted at all operations. The impact on the rail network has been more material, and is still being assessed. It is expected that this will impact Q2 sales volumes.
SouthAfrica- Primary and secondary coalproduction increasedby 9%to5.0million tonnes due to productivity improvements at most mines.
The sale of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was announced on 10 April, and is expected to complete by the end of 2017. These mines produced5.7 million tonnes in Q1 2017.
Domestic - (Isibonelo) thermal coal production decreased by 23% to 0.9 million tonnes due to a dragline fire which occurred during Q4 2016.
Colombia-Production increased by 7% to 2.8 million tonnes, through productivity gains. 
Full Year Guidance
Full year production guidance for export metallurgical coal from Australia remains unchanged at19-21 million tonnes.
Full year production guidance for export thermal coal from South Africa and Colombia remains unchanged at 29-31 million tonnes.
Coal (tonnes)
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Australia (all export)(1)
5,721,400
5,955,100
5,923,500
5,935,700
4,902,200
17%
(4)%
Metallurgical - Coking
4,747,300
4,496,900
4,326,600
3,997,500
3,378,900
40%
6%
Metallurgical - PCI
495,100
862,900
741,300
923,300
718,800
(31)%
(43)%
Thermal
479,000
595,300
855,600
1,014,900
804,500
(40)%
(20)%
South Africa
12,307,300
13,708,600
14,690,700
13,188,800
12,171,800
1%
(10)%
Thermal export - Primary(2)
4,058,500
4,229,400
4,480,800
4,425,600
3,841,600
6%
(4)%
Thermal export and domestic - Secondary(3)
978,200
926,900
1,009,900
972,700
778,600
26%
6%
Thermal domestic - Eskom
6,374,300
7,514,700
8,083,900
6,708,700
6,392,000
-
(15)%
Thermal domestic - Isibonelo(4)
896,300
1,037,600
1,116,100
1,081,800
1,159,600
(23)%
(14)%
Colombia
Thermal - Export
2,781,700
2,800,600
2,927,800
2,329,500
2,610,000
7%
(1)%
Total coal production
20,810,400
22,464,300
23,542,000
21,454,000
19,684,000
6%
(7)%
Sales volumes
Australia
Metallurgical - Export(5)
4,947,400
4,926,900
5,223,100
4,836,700
4,228,900
17%
-
Thermal - Export
473,200
699,000
862,000
1,118,800
697,900
(32)%
(32)%
South Africa
Thermal - Export
4,693,300
5,825,200
4,159,300
4,744,000
4,343,200
8%
(19)%
Thermal - Other domestic
394,300
485,100
389,700
341,600
368,600
7%
(19)%
Thermal domestic - Eskom
6,359,200
7,288,500
7,871,900
6,577,500
6,246,400
2%
(13)%
Thermal domestic - Isibonelo
964,600
1,168,900
1,260,800
1,268,100
1,213,600
(21)%
(17)%
Third party sales
1,567,800
694,600
2,181,800
1,608,600
1,566,700
-
126%
Colombia
 Thermal - Export
2,646,300
2,722,300
2,905,100
2,843,800
2,339,000
13%
(3)%
(1) Comparatives have been restated to exclude production from Foxleigh, which was sold on 30 August 2016, and Callide, which was sold on 31 October 2016.
(2) Thermal export - Primary is export quality product. Comparatives have been restated to align with current presentation.
(3) Thermal export and domestic - Secondary is lower quality product that can be sold into either the export or domestic markets. Comparatives have been restated to align with current presentation. In 2016, ~60% of secondary production was sold into the export market.
(4) Restated to exclude domestic secondary coal production from mines other than Isibonelo.
(5) Includes both hard coking coal and PCI sales volumes.
Coal by mine (tonnes)
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Australia
Capcoal 
(incl. Grasstree)
1,785,400
1,230,200
1,637,300
2,205,400
1,760,000
1%
45%
Dawson
1,092,100
1,273,000
1,185,900
1,143,800
1,006,000
9%
(14)%
Drayton
-
82,300
317,100
418,200
349,900
(100)%
(100)%
Grosvenor
709,800
539,100
685,700
331,200
203,000
250%
32%
Jellinbah
718,000
882,100
820,200
821,600
758,400
(5)%
(19)%
Moranbah North
1,416,100
1,948,400
1,277,300
1,015,500
824,900
72%
(27)%
5,721,400
5,955,100
5,923,500
5,935,700
4,902,200
17%
(4)%
South Africa
Goedehoop
1,222,100
1,134,200
1,286,500
1,266,600
1,001,300
22%
8%
Greenside
1,004,800
1,036,900
1,111,400
990,700
806,300
25%
(3)%
Zibulo
1,439,400
1,407,200
1,571,800
1,638,600
1,390,000
4%
2%
Khwezela(1)
1,596,100
2,230,000
2,137,100
1,849,000
1,969,600
(19)%
(28)%
Mafube
441,400
435,400
506,000
438,500
379,100
16%
1%
New Vaal
3,414,300
3,994,800
4,350,500
4,027,700
3,521,800
(3)%
(15)%
New Denmark
954,400
773,200
777,300
392,600
604,300
58%
23%
Kriel
1,338,500
1,659,400
1,834,000
1,503,300
1,339,800
-
(19)%
Isibonelo
896,300
1,037,500
1,116,100
1,081,800
1,159,600
(23)%
(14)%
12,307,300
13,708,600
14,690,700
13,188,800
12,171,800
1%
(10)%
Colombia
Carbones del Cerrejn
2,781,700
2,800,600
2,927,800
2,329,500
2,610,000
7%
(1)%
Total Coal production
20,810,400
22,464,300
23,542,000
21,454,000
19,684,000
6%
(7)%
(1) The merger of Kleinkopje and Landau.
NICKEL
Nickel
Q1
2017
Q1
2016
Q1 2017
vs.
Q1 2016
Q4
2016
Q1 2017
vs.
Q4 2016
Nickel
t
9,900
11,200
(12)%
10,900
(9)%
Nickel-Nickel production decreased by 12% to 9,900 tonnes due to unplanned maintenance of Barro Alto's electric furnaces.
Full Year Guidance
As a consequence, full year production guidance has been revised to 43,000 - 45,000 tonnes(previously ~45,000 tonnes).
Nickel (tonnes)
unless stated otherwise(1)
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q1 2017
vs.
Q1 2016
Q1 2017
vs.
Q4 2016
Barro Alto
Ore mined
1,023,500
364,300
974,100
835,300
457,000
124%
181%
Ore processed
523,900
579,800
610,000
569,200
598,100
(12)%
(10)%
Ore grade processed - % Ni
1.70
1.77
1.76
1.76
1.77
(4)%
(4)%
Production
7,800
8,800
9,000
8,800
8,900
(12)%
(11)%
Codemin
Ore mined
-
-
-
6,800
-
-
-
Ore processed
143,600
142,900
144,000
151,300
151,400
(5)%
0%
Ore grade processed - % Ni
1.65
1.73
1.72
1.72
1.68
(2)%
(5)%
Production
2,100
2,100
2,300
2,300
2,300
(9)%
0%
Total Nickel segment nickel production
9,900
10,900
11,300
11,100
11,200
(12)%
(9)%
Sales volumes
10,400
11,400
11,600
11,100
10,800
(4)%
(9)%
(1) Excludes Anglo American Platinum's nickel production.
EXPLORATIONANDEVALUATION
Exploration andevaluation expenditure for the quarter increased by 9% to $50 million. Exploration expenditure forthequarterwas$20million,a 31% decrease, whilst evaluation expenditurewas$30million,a 76%increase.
NOTE
This Production Report for the first quarter ended 31 March 2017 is unaudited.
Note:
Productionfiguresaresometimes moreprecisethantheroundednumbersshowninthe commentary ofthisreport.Thepercentagechangewillreflectthepercentagechangeusingthe productionfiguresshownintheProductionSummaryofthisreport.
Forward-lookingstatements:
Thiscontainscertainforwardlookingstatementswhichinvolveriskanduncertainty becausethey relatetoeventsanddependoncircumstancesthatoccurinthefuture.Thereareanumberoffactors thatcouldcauseactualresultsordevelopmentstodiffermateriallyfromthoseexpressedorimplied bytheseforwardlookingstatements.
For further information, please contact:
Media
Investors
UK
James Wyatt-Tilby
james.wyatt-tilby@angloamerican.com
Tel: +44 (0)20 7968 8759
Marcelo Esquivel
marcelo.esquivel@angloamerican.com
Tel: +44 (0)20 7968 8891
South Africa
Pranill Ramchander
pranill.ramchander@angloamerican.com
Tel: +27 (0)11 638 2592
Ann Farndell
ann.farndell@angloamerican.com
Tel: +27 (0)11 638 2786
UK
Paul Galloway
paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8718
Trevor Dyer
trevor.dyer@angloamerican.com
Tel: +44 (0)20 7968 8992
Sheena Jethwa
sheena.jethwa@angloamerican.com
Tel: +44 (0)20 7968 8680
Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products to our customers around the world.
As a responsible miner - of diamonds (through De Beers), platinum and other precious metals, copper, nickel, iron ore and coal - we are the custodians of what are precious natural resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders and for the communities and countries in which we operate - creating sustainable value and making a real difference.
www.angloamerican.com

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