REG - Anglo American PLC - Anglo American Q2 Production Report 2017 <Origin Href="QuoteRef">AAL.L</Origin> - Part 1

Anglo AmericanAnnouncement

20/07/2017 07:06

RNS Number : 5656L
Anglo American PLC
20 July 2017
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/5656L_-2017-7-19.pdf
20 July 2017
Anglo American plc
Production Report for the second quarter ended 30 June 2017
Anglo American reports an 8% increase in copper equivalent production in the second quarter of 2017, compared to the same period of 2016. For the half year as a whole, copper equivalent production increased by 9%.
Mark Cutifani, Anglo American Chief Executive, said: "We have delivered another strong production quarter across most of our businesses. Through the improvements we have made to our portfolio and the efficiencies we are driving, we continue to unlock the potential of our world class assets. The production ramps at Gahcho Ku, Minas-Rio and Grosvenor are also contributing to these ongoing positive performance trends. We have increased the full year production guidance for Kumba Iron Ore and are on track to deliver full year guidance across the rest of our products."
Highlights
At De Beers, the ramp-up of Gahcho Ku and stable trading conditions supported a 36% increase in rough diamond production.
Copper production, while broadly unchanged, was impacted by the temporary mine stoppage at El Soldado, partially offset by higher production at Los Bronces.
Platinum's Mogalakwena mine production increased by 15% due to higher grades and increasedthroughput.
Iron ore volumes from Sishen increased by 38% due to operational improvements.
 Metallurgical coal production from Australia was impacted by Cyclone Debbie, two longwall moves in Q2 and the ongoing geological issues at Grosvenor; improvements are expected in H2.
Production Summary
Q2 2017
Q2 2016
% vs. Q2 2016
H1 2017
H1 2016
% vs. H1 2016
Diamonds (Mct)(1)
8.7
6.4
36%
16.1
13.3
21%
Copper (t)(2)(3)
140,800
144,200
(2)%
283,400
290,700
(3)%
Platinum (produced ounces) (koz)(4)
617
586
5%
1,189
1,153
3%
Iron ore - Kumba (Mt)
11.4
8.9
28%
21.9
17.8
23%
Iron ore - Minas-Rio (Mt)(5)
4.3
3.5
24%
8.7
6.8
27%
Export metallurgical coal (Mt)
4.0
4.9
(19)%
9.2
9.0
2%
Export thermal coal (Mt)(6)
6.5
6.8
(4)%
13.4
13.2
1%
Nickel (t)(7)
11,300
11,100
2%
21,200
22,300
(5)%
(1) De Beers production on 100% basis except the Gahcho Ku joint venture which is on an attributable 51% basis; (2) Copper production from the Copper business unit; (3) Copper production shown on a contained metal basis; (4) Reflects own mine production and purchases of metal in concentrate; (5) Wet basis; (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) Nickel production from the Nickel business unit; (8) Copper equivalent production is normalised for, Kimberley, Niobium & Phosphates, Foxleigh and Callide, and to reflect Snap Lake being placed on care and maintenance, and the closure of Drayton.

DE BEERS
Diamonds(1)
Q2
2017
Q2
2016
Q2 2017
vs.
Q2 2016
Q1
2017
Q2 2017
vs.
Q1 2017
H1
2017
H1
2016
H1 2017 vs. 
H1 2016
Debswana
000 carats
5,933
5,184
14%
5,191
14%
11,124
10,512
6%
Namdeb Holdings
000 carats
391
296
32%
472
(17)%
863
740
17%
DBCM
000 carats
1,405
821
71%
1,106
27%
2,511
1,753
43%
De Beers Canada
000 carats
1,013
147
nm
631
61%
1,644
309
nm
Total carats recovered
000 carats
8,742
6,448
36%
7,400
18%
16,142
13,314
21%
De Beers - Rough diamond production increased by 36% to 8.7 million carats in line with the higher production forecast for 2017, reflecting stable trading conditions as well as the contribution from the ramp-up of Gahcho Ku in Canada.
Debswana (Botswana) production increased by 14% to 5.9 million carats. Orapa's production increased by 44% driven by the ramp-up of Plant 1 which was previously on partial care and maintenance in response to trading conditions in late 2015. This was marginally offset by Jwaneng where production decreased by 3%.
Namdeb Holdings (Namibia) production increased by 32% to 0.4 million carats as a result of Debmarine Namibia's Mafuta vessel being on planned extended in-port maintenance in Q2 2016.
DBCM (South Africa) production increased by 71% to 1.4 million carats largely as a result of higher grades at Venetia.
Production in Canada increased almost six-fold to 1.0 million carats due to the ramp-up of Gahcho Ku to nameplate capacity.
Consolidated rough diamond sales volumes(2) in Q2 2017 were 5.4 million carats (5.9 million carats on a total 100% basis) from two Sights, compared with 9.6 million carats (10.2 million carats on a total 100% basis) from three Sights in Q2 2016. Apart from the additional Sight in Q2 2016, the decrease was expected given the strong levels of midstream restocking in H1 2016.
For H1 2017, consolidated sales volumes(2) were 19.1 million carats (20.0 million carats on a total 100% basis), compared with 17.2 million carats (18.3 million carats on a total 100% basis) in H1 2016.
The average realised price of $156/ct in H1 2017 was 12% lower than in H1 2016. This reflected strong demand in Sight 1 2017 for lower value goods held in stock at 31 December 2016, following a recovery from the initial impact of India's demonetisation programme in late 2016. The lower value mix was partially offset by a higher average rough price index, up 4%.
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
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017 
vs.
Q1 2017
Q2 2017 
vs. 
Q2 2016
H1 2017
H1 2016
H1 2017 
vs. 
H1 2016
Carats recovered 
(000 carats)
100% basis 
(unless otherwise stated)
Orapa
2,918
2,106
2,366
1,536
2,028
39%
44%
5,024
4,029
25%
Letlhakane
102
130
135
176
159
(22)%
(36)%
232
284
(18)%
Jwaneng
2,913
2,955
2,939
2,837
2,997
(1)%
(3)%
5,868
6,199
(5)%
Debswana
5,933
5,191
5,440
4,549
5,184
14%
14%
11,124
10,512
6%
Namdeb
72
94
118
120
94
(23)%
(23)%
166
166
-
Debmarine Namibia
319
378
310
285
202
(16)%
58%
697
574
21%
Namdeb Holdings
391
472
428
405
296
(17)%
32%
863
740
17%
Kimberley(1)
-
-
-
-
-
-
-
-
68
(100)%
Venetia
1,239
939
1,218
898
695
32%
78%
2,178
1,401
55%
Voorspoed
166
167
169
196
126
(1)%
32%
333
284
17%
DBCM
1,405
1,106
1,387
1,094
821
27%
71%
2,511
1,753
43%
Snap Lake(1)
-
-
-
-
-
-
-
-
3
(100)%
Victor
182
189
148
142
147
(4)%
24%
371
306
21%
Gahcho Ku 
(51% basis)
831
442
349
83
-
88%
-
1,273
-
-
De Beers Canada
1,013
631
497
225
147
61%
589%
1,644
309
432%
Total carats recovered
 8,742 
 7,400 
 7,752 
 6,273 
6,448 
18%
36%
16,142 
13,314 
21%
Sales volumes
Total sales volume 
(100%) (Mct)(2)
5.9
14.1
8.0
5.7
10.2
(58)%
(42)%
20.0
18.3
9%
Consolidated sales volume (Mct)(2)(3)
5.4
13.7
7.5
5.3
9.6
(61)%
(44)%
19.1
17.2
11%
Number of Sights
(sales cycles)
2
3
3
2
3
5
5
(1) Snap Lake was placed on care and maintenance from December 2015. Kimberley mines was sold in 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. Excluding Gahcho Ku's capitalised pre-commercial production sales volumes results in a consolidated sales volume of 18.4Mct for H1 2017. 
COPPER
Copper(1)
Q2
2017
Q2
2016
Q2 2017
vs.
Q2 2016
Q1
2017
Q2 2017
vs.
Q1 2017
H1
2017
H1
2016
H1 2017 vs. 
H1 2016
Los Bronces
t
79,000
75,600
4%
75,800
4%
154,800
160,800
(4)%
Collahuasi (44% share)
t
51,000
56,200
(9)%
57,700
(12)%
108,700
107,300
1%
El Soldado
t
10,800
12,400
(13)%
9,100
19%
19,900
22,600
(12)%
Total Copper
t
140,800
144,200
(2)%
142,600
(1)%
283,400
290,700
(3)%
(1) Copperproduction shown on acontained metalbasis.
Copperproduction decreased by 2% to 140,800 tonnes.
Production from Los Bronces increased by 4% to 79,000 tonnes. Production benefited from higher ore grades (0.70% vs. 0.62%) and strong plant performance, partly offset by an expected increase in ore hardness.
At Collahuasi, attributable production decreased by 9% to 51,000 tonnes. Higher ore grades were offset by lower throughput driven by the planned electrical overhaul of Line 1 of the processing plant, lasting 65 days and successfully completed in June. 
El Soldado production decreased by 13% to 10,800 tonnes, reflecting the temporary suspension of mine operations from 18 February, which restarted on 28 April following approval of the updated mine plan. Production during the mine stoppage was sustained by feeding low-grade stockpile material to the plant, however the delay in receiving the mine plan permit resulted in ~6,000 tonnes of lost production in H1 2017 (of which ~3,000 tonnes were in Q2 2017).
Sales volumes in H1 2017 were impacted by temporary port closures in Chile due to poor weather conditions and heavy tidal swells limiting vessel availability, as well as by higher arsenic content in copper concentrate from Collahuasi which restricted sales into China. At the end of H1 2017, Anglo American had 105,000 tonnes of copper provisionally priced at 269c/lb.
Full Year Guidance
Full year production guidance remains unchanged at 570,000 - 600,000 tonnes.
Copper (tonnes) on a contained metal basis unless stated otherwise(1)
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017
vs.
Q1 2017
Q2 2017
vs.
Q2 2016
H1
2017
H1
2016
H1 2017 vs.
H1 2016
Collahuasi 100% basis 
(Anglo American share 44%)
Ore mined
14,984,100
13,803,300
20,335,200
17,131,800
15,277,400
9%
(2)%
28,787,400
30,135,600
(4)%
Ore processed - Sulphide
10,807,100
12,336,400
12,302,700
12,522,100
12,479,200
(12)%
(13)%
23,143,500
24,582,000
(6)%
Ore grade processed - Sulphide (% TCu)(2)
1.27
1.24
1.29
1.23
1.21
3%
5%
1.25
1.18
6%
Production - Copper cathode
-
100
700
800
1,400
(100)%
(100)%
100
3,300
(97)%
Production - Copper in concentrate
115,900
131,000
132,400
128,900
126,300
(12)%
(8)%
246,900
240,500
3%
Total copper production for Collahuasi
115,900
131,100
133,100
129,700
127,700
(12)%
(9)%
247,000
243,800
1%
Anglo American's share of copper production for Collahuasi(3)
51,000
57,700
58,600
57,000
56,200
(12)%
(9)%
108,700
107,300
1%
Anglo American Sur 
89,800
84,900
88,000
82,800
88,000
6%
2%
174,700
183,400
(5)%
Los Bronces mine(4)
79,000
75,800
74,300
72,100
75,600
4%
4%
154,800
160,800
(4)%
Ore mined
11,630,200
13,448,400
13,196,500
13,947,400
13,477,900
(14)%
(14)%
25,078,600
23,965,800
5%
Marginal ore mined
7,764,700
11,461,400
8,445,700
6,192,800
6,148,500
(32)%
26%
19,226,100
19,550,800
(2)%
Ore processed - Sulphide
11,876,300
11,877,400
11,562,500
11,511,700
12,567,500
(0)%
(5)%
23,753,700
24,622,800
(4)%
Ore grade processed - Sulphide (% TCu)
0.70
0.69
0.69
0.65
0.62
2%
13%
0.69
0.68
2%
Production - Copper cathode
9,800
8,900
8,600
8,800
8,900
10%
10%
18,700
18,600
1%
Production - Copper in concentrate
69,200
66,900
65,700
63,300
66,700
3%
4%
136,100
142,200
(4)%
El Soldado mine(4)
10,800
9,100
13,700
10,700
12,400
19%
(13)%
19,900
22,600
(12)%
Ore mined
1,272,200
905,500
2,069,800
1,678,300
2,143,000
40%
(41)%
2,177,700
3,591,000
(39)%
Ore processed - Sulphide
1,899,200
1,797,600
1,833,900
1,553,200
1,741,200
6%
9%
3,696,800
3,577,300
3%
Ore grade processed - Sulphide (% TCu)
0.72
0.65
0.90
0.86
0.89
11%
(19)%
0.69
0.82
(16)%
Production - Copper in concentrate
10,800
9,100
13,700
10,700
12,400
19%
(13)%
19,900
22,600
(12)%
Chagres Smelter(4)
Ore smelted
31,500
31,300
25,900
35,500
36,500
1%
(14)%
62,800
72,400
(13)%
Production
30,600
30,300
25,400
34,700
35,500
1%
(14)%
60,900
70,700
(14)%
Total Copper segment copper production
205,700
216,000
221,100
212,500
215,700
(5)%
(5)%
421,700
427,200
(1)%
Total Attributable copper production(5)
140,800
142,600
146,600
139,800
144,200
(1)%
(2)%
283,400
290,700
(3)%
Total Attributable payable copper production
135,800
137,500
141,300
135,000
139,200
(1)%
(2)%
273,300
280,800
(3)%
Total Attributable sales volumes
144,100
115,300
161,400
135,400
143,500
25%
-
259,400
281,000
(8)%
Total Attributable payable sales volumes
138,900
111,200
155,700
130,700
138,500
25%
-
250,100
271,500
(8)%
Third party sales(6)
27,400
9,800
20,100
26,000
6,700
180%
309%
37,200
15,900
134%
(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.
PLATINUM
Platinum
Q2
2017
Q2
2016
Q2 2017
vs.
Q2 2016
Q1
2017
Q2 2017
vs.
Q1 2017
H1
2017
H1
2016
H1 2017 vs.
H1 2016
Produced ounces
000 oz
617
586
5%
572
8%
1,189
1,153
3%
 Own mined production
000 oz
348
444
(22)%
325
7%
673
883
(24)%
 Managed
000 oz
284
377
(25)%
266
7%
549
755
(27)%
 Joint ventures(1)
000 oz
64
67
(4)%
59
9%
123
128
(3)%
 Purchase of concentrate
000 oz
269
142
89%
247
9%
516
270
91%
 Joint ventures(1)
000 oz
64
67
(4)%
59
9%
123
128
(3)%
 Associates(2)
000 oz
72
70
4%
65
12%
137
133
3%
 Third party
000 oz
132
6
nm
124
7%
256
9
nm
Refined
 Platinum
000 oz
529
748
(29)%
577
(8)%
1,106
1,008
10%
 Palladium
000 oz
373
472
(21)%
353
6%
726
654
11%
 Rhodium
000 oz
83
91
(9)%
74
12%
156
138
13%
 Gold
000 oz
29
22
31%
25
19%
54
50
8%
Nickel
t
6,000
6,400
(6)%
5,100
17%
11,200
12,100
(8)%
 Copper 
t
3,500
3,700
(6)%
3,200
7%
6,700
7,000
(4)%
(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of each of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'.
(2) Associates are Platinum's 49% interest in Bokoni and 33% interest in BPRM. 
Platinum-Platinum production (metal in concentrate) increased by 5% to 617,100 ounces.
Own mined production from managed mines
Own mined production from managed mines decreased by 25% to 283,700 ounces primarily due to the sale of Rustenburg in November 2016, which has subsequently been reported as purchase of concentrate from third parties. Excluding Rustenburg, own mined production increased by 7%.
Mogalakwena mine production increased by 15% to 113,900 ounces due to a 7% increase in grade in line with the mine plan,and a 9% increase in concentrator throughput due to North Concentrator Plant optimisations which increased the run-time. 
Amandelbult mine production increased by 4% to 110,500ounces due to improved plant recoveries and increased throughput.
Production from Unki mine in Zimbabwe increased by 10% to 19,500 ounces, as efforts continued to improve mining height control, which has reduced mining waste and increased grade resulting in higher production.
Union mine production decreased by 3% to 39,800 ounces due to lower grade. The sale of Union to Siyanda Resources was announced on 15 February 2017 and is expected to complete in H2 2017, after which production from Union will be treated as purchase of concentrate from third parties.
Joint venture own mined production and purchase of concentrate
Total joint venture production of 128,600 ounces (of which 64,300 ounces is own mined and 64,300 ounces is purchase of concentrate) decreased by 4%. Mototolo decreased by 7% to 29,500 ounces as a result of lower grade. Kroondal decreased by 5% to 67,100 ounces primarily due to lower grade and a plant shutdown which impacted production for seven days. This was partly offset by Modikwa which increased by 2% to 32,000 ounces due to productivity improvements.
Purchase of concentrate from associates
Purchase of concentrate from associates increased by 4% to 72,500 ounces. Production from BRPM increased by 10% to 52,900 ounces from project ramp-ups, but was partly offset by Bokoni which decreased by 10% to 19,500 ounces as a result of the closure of the opencast operations.
Purchase of concentrate from third parties
Purchase of concentrate from third parties increased by 126,400 ounces to 132,300 ounces mainly due to the inclusion of Rustenburg, which has been reported as third party purchase of concentrate since November 2016.
Refined production
Refined platinum production decreased by 29% to 528,700 ounces primarily due to the Waterval smelter run-out and a high pressure water leak at the Converter Plant.
Following the Waterval smelter run-out in Q3 2016, the Number 1 furnace was successfully rebuilt in Q4 2016 and is running at steady-state. The Number 2 furnace underwent planned maintenance and has successfully ramped up to steady-state. The backlog in processing pipeline material of 65,000 platinum ounces following the run-out in 2016 is expected to be made up during H2 2017.
In addition, a high pressure water leak at the Converter Plant ("ACP") on 4 June 2017 impacted a converter plant. The second converter plant was heated up and began steady-state production on 14 June 2017. The total impact on refined platinum production of c.90,000 ounces was deferred from Q2 2017 into H2 2017.
Full Year Guidance
Production guidance (metal in concentrate) remains unchanged at 2.35 - 2.40 million ounces.
Platinum
Q2 2017
Q1 
2017
Q4 
2016
Q3 
2016
Q2 
2016
Q2 2017
vs.
Q1 2017
Q2 2017
vs.
Q2 2016
H1
2017
H1
2016
H1 2017 vs.
H1 2016
Produced platinum 
(000 troy oz)
617.1
571.9
610.0
619.1
585.7
8%
5%
1,189.1
1,152.7
3%
Owned mined
348.0
324.6
386.8
468.3
443.5
7%
(22)%
672.7
882.6
(24)%
Mogalakwena
113.9
111.9
103.4
100.7
98.8
2%
15%
225.8
207.8
9%
Amandelbult
110.5
97.1
121.1
128.3
106.2
14%
4%
207.7
217.1
(4)%
Unki
19.5
18.9
19.9
18.2
17.8
3%
10%
38.4
36.4
5%
Joint ventures(1)
64.3
59.0
60.1
64.9
66.8
9%
(4)%
123.3
127.7
(3)%
Union
39.8
37.7
38.1
37.7
41.2
6%
(3)%
77.5
75.5
3%
Rustenburg(2)
-
- 
44.2
118.1
110.8
nm
nm
-
215.1
nm
Other(3)
-
-
-
0.4
1.9
nm
nm
-
3.0
nm
Purchase of concentrate
269.1
247.3
223.2
150.8
142.3
9%
89%
516.4
270.1
91%
Joint ventures(1)
64.3
59.0
60.1
65.0
66.8
9%
(4)%
123.3
127.7
(3)%
Associates(4)
72.5
64.7
69.2
77.2
69.6
12%
4%
137.2
132.9
3%
Third party purchase of concentrate(2)
132.3
123.6
93.9
8.6
5.8
7%
nm
255.9
9.5
nm
Refined production
Platinum (000 troy oz)
528.7
576.9
631.6
694.6
747.6
(8)%
(29)%
1,105.6
1,008.4
10%
Palladium (000 troy oz)
373.1
353.4
397.4
412.9
472.3
6%
(21)%
726.5
653.9
11%
Rhodium (000 troy oz)
82.8
73.7
92.2
86.8
90.7
12%
(9)%
156.4
138.4
13%
Gold (000 troy oz)
29.3
24.7
33.9
24.1
22.3
19%
31%
54.0
50.2
8%
Nickel (000 tonnes)
6.0
5.1
6.2
7.1
6.4
17%
(6)%
11.2
12.1
(8)%
Copper (000 tonnes)
3.5
3.2
3.3
3.8
3.7
7%
(6)%
6.7
7.0
(4)%
4E Head grade 
(g/tonne milled)(5)
3.41
3.47
3.41
3.19
3.00
(2)%
14%
3.44
3.05
13%
Platinum sales volumes - own mined and purchase of concentrate
600.5
518.8
606.5
588.0
808.4
16%
(26)%
1,119.3
1,221.2
(8)%
(1) The joint venture operations are Mototolo, Modikwa and Kroondal. Platinum owns 50% of these operations, which is presented under 'Own mined' production, and purchases the remaining 50% of production, which is presented under 'Purchase of concentrate'. 
(2) Sale of Rustenburg to Sibanye completed on 1 November 2016, after which production from Rustenburg is included within third party purchase of concentrate. 
(3) Other includes Twickenham.
(4) Associates are Platinum's 49% interest in Bokoni and 33% interest in BRPM.
(5) 4E: the grade measured as the combined content of: platinum, palladium, rhodium and gold.
IRON ORE AND MANGANESE
Iron Ore and Manganese 
Q2
2017
Q2
2016
Q2 2017
vs.
Q2 2016
Q1
2017
Q2 2017
vs.
Q1 2017
H1
2017
H1
2016
H1 2017 vs. 
H1 2016
Iron ore - Kumba
000 t
11,382
8,864
28%
 10,473
9%
21,854
17,788
23%
Iron ore - Minas-Rio(1)
000 t
4,324
3,484
24%
4,342 
0%
8,666
6,833
27%
Iron ore - Total
000 t
15,706
12,348
27%
14,815
6%
30,520
24,621
24%
Manganese ore(2)
000 t
843
791
7%
823
2%
1,666
1,567
6%
Manganese alloys(3)
000 t
39
30
32%
31
25%
71
62
15%
(1) Wet basis
(2) Saleable production 
(3) Production includes medium carbon ferro-manganese
Kumba Iron Ore - Iron ore production increased by 28% to 11.4 million tonnes.
Sishen production increased by 38% to 7.9 million tonnes as a result of improved mining productivity, driven by fleet efficiencies and higher plant yields. Waste removal increased to 43 million tonnes compared to 31 million tonnes in Q2 2016 (H1 2017: 77 million tonnes).
Kolomela production increased by 11% to 3.5 million tonnes, underpinned by productivity improvements. Waste removal increased by 22% to 15 million tonnes (H1 2017: 25 million tonnes).
Export sales increased by 8% to 9.4 million tonnes. Total finished product stocks were 4.4 million tonnes (3.5 million tonnes at 31 December 2016) as a result of higher production at Sishen and sales volumes delayed to H2 2017 due to unfavourable weather conditions at Saldanha port.
Full Year Guidance
Full year production guidance has been increased to 41 - 43 million tonnes (previously 40 - 42 million tonnes) as a result of the improved performance at Sishen.
Iron Ore Brazil - Iron ore production from Minas-Rio increased by 24% to 4.3 million tonnes as the operation continued to ramp-up to its current operating capacity.
The focus remains obtaining the Step 3 licences required for the operation to access the full range of run-of-mine grades and target the operation's nameplate capacity of 26.5 Mt (wet basis).
Full Year Guidance
Full year production guidance remains unchanged at 16-18 million tonnes (wet basis).
Manganese ore - Manganese ore production increased by 7% to 843,300 tonnes. Production from the Australian operations increased by 5% and by 9% from the South African operations.
Manganese alloy - Manganese alloy production increased by 32% to 39,300 tonnes. The South African Manganese operations continue to operate only one of four furnaces.
Iron Ore and Manganese (tonnes)
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017
vs.
Q1 2017
Q2 2017
vs.
Q2 2016
H1
2017
H1
2016
H1 2017 vs.
H1 2016
Kumba Iron Ore
11,381,600
10,472,600
11,927,900
11,759,900
8,863,600
9%
28%
21,584,200
17,788,100
23%
By product:
Lump
7,504,200
6,978,800
7,812,000
7,598,500
5,721,300
8%
31%
14,483,000
11,391,000
27%
Fines
3,877,400
3,493,800
4,115,900
4,161,400
3,142,300
11%
23%
7,371,200
6,397,100
15%
By mine:
Sishen
7,871,900
7,678,900
8,489,900
8,348,700
5,699,600
3%
38%
15,550,800
11,541,400
35%
Kolomela
3,509,700
2,793,700
3,438,000
3,411,200
3,164,000
26%
11%
6,303,400
5,877,100
7%
Thabazimbi
-
-
-
-
-
-
-
-
369,600
(100)%
Kumba sales volumes
Export iron ore
9,423,600
10,053,000
10,611,400
10,343,200
8,729,700
(6)%
8%
19,476,600
18,105,800
8%
Domestic iron ore
924,600
832,700
612,700
706,900
936,000
11%
(1)%
1,757,300
2,103,700
(16)%
Minas-Rio production
Pellet feed (wet basis)
4,324,100
4,341,700
4,855,300
4,452,400
3,483,800
0%
24%
8,665,900
6,833,200
27%
Minas-Rio sales volumes
Export - pellet feed 
(wet basis)
4,371,000
4,256,500
4,761,800
4,510,400
3,223,900
3%
36%
8,627,500
6,938,300
24%
Samancor
Manganese ore(1)
843,300
823,100
804,200
761,700
791,300
2%
7%
1,666,400
1,567,200
6%
Manganese alloys(1)(2)
39,300
31,500
37,100
38,900
29,700
25%
32%
70,800
61,800
15%
Samancor sales volumes
Manganese ore(3)
887,600
836,000
805,000
757,400
813,300
6%
9%
1,723,600
1,664,000
4%
Manganese alloys
37,200
34,400
31,600
49,200
46,400
8%
(20)%
71,600
89,200
(20)%
COAL
Coal 
Q2
Q2
Q2 2017
Q1
Q2 2017
H1
H1
H1 2017
2017
2016
vs.
2017
vs.
2017
2016
vs
Q2 2016
Q1 2017
H1 2016
Met Coal (Australia) - 
excl. 2016 divestments(1)
Metallurgical - Export
000 t
3,964
4,921
(19)%
5,242
(24)%
9,206
9,019
2%
Thermal - Export
000 t
305
1,015
(70)%
479
(36)%
784
1,820
(57)%
South Africa
Thermal export - Primary(2)
000 t
4,064
4,426
(8)%
4,059
-
8,123
8,268
(2)%
Thermal export and domestic - Secondary(3)
000 t
1,023
973
5%
978
5%
2,001
1,752
14%
Thermal domestic - Eskom
000 t
6,889
6,709
3%
6,374
8%
13,263
13,101
1%
Thermal domestic - Isibonelo(4)
000 t
1,052
1,082
(3)%
896
17%
1,948
2,242
(13)%
Cerrejn
Thermal - Export
000 t
2,450
2,330
5%
2,782
(12)%
5,231
4,940
6%
Thermal Export South Africa and Cerrejn
6,514
6,756
(4)%
6,841
(5)%
13,354
13,208
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.
Metallurgical Coal (Australia) - Export metallurgical coal production decreased by 19% to 4.0 million tonnes. Longwall moves took place at both Moranbah and Grasstree during the quarter. The impact of Cyclone Debbie on the Queensland rail network resulted in operational delays with a net impact on saleable production of ~0.6 million tonnes in the quarter. Run-of-mine production was not materially impacted and the stock build continues to be unwound in H2 2017. 
Grosvenor production continues to be affected by geological issues, which are typically more challenging for the first longwall panel. In addition, a major belt tear occurred in the main conveyor drift.The focus remains on managing geological issues to deliver improved operational performance and stability.
Export thermal coal production decreased by 70% to 0.3 million tonnes following the cessation of mining activities at Drayton. Furthermore, in reaction to the rail outage in Q2 2017, thermal coal volumes were substituted for higher margin metallurgical coal production at Capcoal (Grasstree).
South Africa - Primary export thermal coal production decreased by 8% to 4.1 million tonnes, due to operational challenges at Khwezela associated with the integration of the Kleinkopje and Landau mines. In addition, there was an expected and temporary reduction at Mafube as the mine transitions to a new pit. 
Eskom related production increased by 3% to 6.9 million tonnes, with higher production at New Denmark due to a longwall move in Q2 2016. The sale of the Eskom-tied operating mines (New Vaal, New Denmark and Kriel) to Seriti Resources was announced on 10 April 2017, and is expected to complete by the end of 2017.
Cerrejn - Cerrejn's attributable production increased by 5% to 2.4 million tonnes, reflecting productivity gains.
Full Year Guidance
Full year production guidance for export metallurgical coal remains unchanged at 19 - 21 million tonnes, but is expected to be at the lower end of this range due to the geological issues at Grosvenor.
Full year production guidance for export thermal coal from South Africa and Cerrejnremains unchanged at 29 - 31 million tonnes, but is expected to be at the lower end of this range primarily due to the operational challenges at Khwezela.
Coal (tonnes)
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017
Q2 2017
H1
H1
H1 2017
vs.
vs.
2017
2016
vs.
Q1 2017
Q2 2016
H1 2016
Met Coal (Australia)(1)
4,268,200
5,721,400
5,955,100
5,923,500
5,935,700
(25)%
(28)%
9,989,600
10,837,900
(8)%
Metallurgical export - Coking
3,237,000
4,747,300
4,496,900
4,326,600
3,997,500
(32)%
(19)%
7,984,300
7,376,400
8%
Metallurgical export - PCI
726,500
495,100
862,900
741,300
923,300
47%
(21)%
1,221,600
1,642,100
(26)%
Thermal export
304,700
479,000
595,300
855,600
1,014,900
(36)%
(70)%
783,700
1,819,400
(57)%
South Africa
13,028,200
12,307,300
13,708,600
14,690,700
13,188,800
6%
(1)%
25,335,500
25,360,600
-
Thermal export - Primary(2)
4,064,100
4,058,500
4,229,400
4,480,800
4,425,600
0%
(8)%
8,122,600
8,267,200
(2)%
Thermal export and domestic - Secondary(3)
1,022,600
978,200
926,900
1,009,900
972,700
5%
5%
2,000,800
1,751,300
14%
Thermal domestic - Eskom
6,889,100
6,374,300
7,514,700
8,083,900
6,708,700
8%
3%
13,263,400
13,100,700
1%
Thermal domestic - Isibonelo(4)
1,052,400
896,300
1,037,600
1,116,100
1,081,800
17%
(3)%
1,948,700
2,241,400
(13)%
Colombia
Thermal - Export
2,449,600
2,781,700
2,800,600
2,927,800
2,329,500
(12)%
5%
5,231,300
4,939,500
6%
Total coal production
19,746,000
20,810,400
22,464,300
23,542,000
21,454,000
(5)%
(8)%
40,556,400
41,138,000
(1)%
Sales volumes
Met Coal (Australia)
Metallurgical - Export(5)
4,155,000
4,947,400
4,926,900
5,223,100
4,836,700
(16)%
(14)%
9,102,400
9,065,600
-
Thermal - Export
422,800
473,200
699,000
862,000
1,118,800
(11)%
(62)%
896,000
1,816,700
(51)%
South Africa
Thermal - Export
4,153,900
4,693,300
5,825,200
4,159,300
4,744,000
(11)%
(12)%
8,847,200
9,087,200
(3)%
Thermal - Other domestic
513,700
394,300
485,100
389,700
341,600
30%
50%
908,000
710,100
28%
Thermal domestic - Eskom
6,841,100
6,359,200
7,288,500
7,871,900
6,577,500
8%
4%
13,200,300
12,823,900
3%
Thermal domestic - Isibonelo
1,030,600
964,600
1,168,900
1,260,800
1,268,100
7%
(19)%
1,995,200
2,481,700
(20)%
Third party sales
1,835,400
1,567,800
694,600
2,181,800
1,608,600
17%
14%
3,403,200
3,175,400
7%
Cerrejn
 Thermal - Export
2,770,500
2,646,300
2,722,300
2,905,100
2,843,800
5%
(3)%
5,416,800
5,182,800
5%
(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)
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017
Q2 2017
H1
H1
H1 2017
vs.
vs.
2017
2016
vs.
Q1 2017
Q2 2016
H1 2016
Met Coal (Australia)
Capcoal 
1,508,900
1,785,400
1,230,200
1,637,300
2,205,400
(15)%
(32)%
3,294,300
3,965,400
(17)%
(incl. Grasstree)
Dawson
1,046,800
1,092,100
1,273,000
1,185,900
1,143,800
(4)%
(8)%
2,138,900
2,149,800
(1)%
Drayton
-
-
82,300
317,100
418,200
n/a
n/a
-
768,100
n/a
Grosvenor
183,600
709,800
539,100
685,700
331,200
(74)%
(45)%
893,400
534,200
67%
Jellinbah
840,300
718,000
882,100
820,200
821,600
17%
2%
1,558,300
1,580,000
(1)%
Moranbah North
688,600
1,416,100
1,948,400
1,277,300
1,015,500
(51)%
(32)%
2,104,700
1,840,400
14%
4,268,200
5,721,400
5,955,100
5,923,500
5,935,700
(25)%
(28)%
9,989,600
10,837,900
(8%)
South Africa
Goedehoop
1,230,800
1,222,100
1,134,200
1,286,500
1,266,600
1%
(3)%
2,452,900
2,267,900
8%
Greenside
877,700
1,004,800
1,036,900
1,111,400
990,700
(13)%
(11)%
1,882,500
1,797,000
5%
Zibulo
1,672,900
1,439,400
1,407,200
1,571,800
1,638,600
16%
2%
3,112,300
3,028,600
3%
Khwezela(1)
1,475,000
1,596,100
2,230,000
2,137,100
1,849,000
(8)%
(20)%
3,071,100
3,818,600
(20)%
Mafube
407,600
441,400
435,400
506,000
438,500
(8)%
(7)%
849,000
817,600
4%
New Vaal
4,121,900
3,414,300
3,994,800
4,350,500
4,027,700
21%
2%
7,536,200
7,549,500
0%
New Denmark
769,600
954,400
773,200
777,300
392,600
(19)%
96%
1,724,000
996,900
73%
Kriel
1,420,300
1,338,500
1,659,400
1,834,000
1,503,300
6%
(6)%
2,758,800
2,843,100
(3)%
Isibonelo
1,052,400
896,300
1,037,500
1,116,100
1,081,800
17%
(3)%
1,948,700
2,241,400
(13)%
13,028,200
12,307,300
13,708,600
14,690,700
13,188,800
6%
(1)%
25,335,500
25,360,600
-
Cerrejn
Carbones del Cerrejn
2,449,600
2,781,700
2,800,600
2,927,800
2,329,500
(12)%
5%
5,231,300
4,939,500
6%
Total Coal production
19,746,000
20,810,400
22,464,300
23,542,000
21,454,000
(5)%
(8)%
40,556,400
41,138,000
(1)%
(1) The merger of Kleinkopje and Landau.
NICKEL
Nickel
Q2
2017
Q2
2016
Q2 2017
vs.
Q2 2016
Q1
2017
Q2 2017
vs.
Q1 2017
H1
2017
H1
2016
H1 2017 vs. 
H1 2016
Nickel
t
11,300
11,100
2%
9,900
14%
21,200
22,300
(5)%
Nickel production increased by 2% as result of a stable performance in both smelting operations at Barro Alto, running slightly above nominal capacity during the second quarter. Productionfrom Codemin decreased by 4% to 2,200 tonnes due to maintenance in May 2017.
Full Year Guidance
Full year production guidance remains unchanged at 43,000 - 45,000 tonnes.
Nickel (tonnes)
unless stated otherwise(1)
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q2 2017
vs.
Q1 2017
Q2 2017
vs.
Q2 2016
H1
2017
H1
2016
H1 2017 vs.
H1 2016
Barro Alto
Ore mined
2,375,700
1,023,500
364,300
974,100
835,300
132%
184%
3,399,200
1,292,300
163%
Ore processed
615,700
523,900
579,800
610,000
569,200
18%
8%
1,139,600
1,167,300
(2)%
Ore grade processed - %Ni
1.71
1.70
1.77
1.76
1.76
1%
(3)%
1.71
1.76
(3)%
Production
9,100
7,800
8,800
9,000
8,800
17%
3%
16,900
17,700
(5)%
Codemin
Ore mined
7,500
-
-
-
6,800
-
10%
7,500
6,800
10%
Ore processed
144,000
143,600
142,900
144,000
151,300
-
(5)%
287,600
302,700
(5)%
Ore grade processed - %Ni
1.69
1.65
1.73
1.72
1.72
2%
(2)%
1.67
1.70
(2)%
Production
2,200
2,100
2,100
2,300
2,300
5%
(4)%
4,300
4,600
(7)%
Total Nickel segment nickel production
11,300
9,900
10,900
11,300
11,100
14%
2%
21,200
22,300
(5)%
Sales volumes
10,400
10,400
11,400
11,600
11,100
-
(6)%
20,800
21,900
(5)%
(1) Excludes Anglo American Platinum's nickel production.
EXPLORATION AND EVALUATION
Exploration and Evaluation expenditure for the quarter totalled $52 million, an increase of 17%. Exploration expenditure for the quarter totalled $23 million, an increase of 2%. Evaluation expenditure for the quarter totalled $29 million, an increase of 31%.
NOTE
This Production Report for the second quarter ended 30 June 2017 is unaudited.
AVERAGE REALISED PRICES SUMMARY
Average realised prices
H1 2017
H2 2016
H1 2016
FY 2016
H1 2017
vs.
H2 2016
H1 2017
vs.
H1 2016
De Beers
 Total sales volume (100%) (Mct)
20.0
13.7
18.3
32.0
46%
9%
Consolidated sales volume (Mct)(1)
19.1
12.8
17.2
30.0
49%
11%
Consolidated average realised price ($/ct)(2)
156
201
177
187
(22)%
(12)%
Average price index(3)
121
119
117
118
2%
4%
Copper (USc/lb)
264
235
215
225
12%
23%
PGMs 
Platinum (US$/oz)
957
1,015
971
993
(6)%
(1)%
Palladium (US$/oz)
780
670
551
610
16%
42%
Rhodium (US$/oz)
911
682
679
680
34%
34%
Basket price (US$/oz)
1,843
 1,877 
 1,632 
1,753
(2)%
13%
Basket price (ZAR/oz)
24,400
 26,209 
 25,100 
25,649
(7)%
(3)%
Iron Ore - FOB prices
Kumba Export (US$/dmt)(4)
71
67
55
64
6%
29%
Minas-Rio (US$/wmt)(5)
66
61
44
54
8%
50%
Coal
Metallurgical Coal
Metallurgical - Export (U$/t)(6)
195
153
79
119
27%
147%
Metallurgical - PCI (US/t) (6)
124
102
70
77
22%
82%
Thermal - Export (U$/t)
87
65
47
55
34%
85%
South Africa
Thermal - Export (U$/t)(8)
72
69
50
60
Thermal - Domestic (U$/t, FOR)
20
17
16
17
Cerrejn
Thermal - Export (U$/t)(7)
71
65
47
56
9%
51%
Nickel (USc/lb)
442
474
387
431
(7)%
14%
(1) 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. Excluding Gahcho Ku's capitalised pre-commercial production sales volumes results in a consolidated sales volume of 18.4Mct for H1 2017.
(2) Consolidated average realised price based on 100% selling value post-aggregation and excludes pre-commercial production sales from Gahcho Ku.
(3) Average of the De Beers price index for the Sights within the six month period. The De Beers price index is relative to 100 as at December 2006.
(4) Average realised export basket price (FOB Saldanha).
(5) Average realised export basket price (FOB Au) (wet basis).
(6) Weighted average metallurgical coal sales price achieved.
(7) Weighted average export thermal coal price achieved.
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), copper, platinum and other precious metals, iron ore, coal and nickel - 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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