London - Anglo American cut its full-year copper-production target after bad weather hit its operations in Chile.
Copper production will be 570 000 metric tons to 600 000 tons this year, compared with an earlier target of as much as 630 000 tons, the London-based company said in a statement on Wednesday.
The company said severe winter weather limited its ability to mine at higher altitudes at its Los Bronces mines in the South American nation. The company also trimmed its production target for Brazilian iron ore.
Anglo said second-quarter copper output from retained operations fell 8 percent to 144 200 tons from a year earlier. Diamond production fell 19 percent in the three months through June as the De Beers owner sought to tighten supply after prices dropped the most since the 2008 financial crisis. Anglo mined 6.4 million carats in the quarter compared with 8 million carats a year earlier.
The century-old company is trying to engineer a turnaround after a slump in commodity prices sent its stock plummeting 75 percent last year. The producer plans to sell more than half its mines and wants to exit the iron-ore and coal business to focus on its best assets - diamonds, platinum and copper. It’s the best performer in the FTSE 100 index so far this year, advancing 172 percent.
The miner, which is scheduled to report earnings next week, is seeking to raise at least $3 billion in asset sales to help reduce debt. In April, the company agreed to sell its Brazilian niobium and phosphate unit to China Molybdenum Company for $1.5 billion and is currently in discussions to offload coal mines in Australia.
Anglo’s platinum production rose 1 percent to 586 000 ounces, while nickel output surged 76 percent to 11 100 tons. It maintained its full-year production goals for all its other commodities.
BLOOMBERG