Anglo American reported a 5% drop in copper production in the third quarter. The cause was extreme winter conditions in Chile that disrupted mine operations. Despite this, the company kept its annual guidance and expects to improve performance in the fourth quarter thanks to higher ore grades.
In the three months to September 30, Anglo American produced 174,900 tonnes of copper, versus 183,500 tonnes a year earlier. In Chile, output fell 6% to 94,200 tonnes due to record snowfall and declining grades at Collahuasi and El Soldado. In Peru, production decreased 3% to 80,700 tonnes.
CEO Duncan Wanblad called the results resilient: despite the weather disruptions, the company remains within its annual guidance. Improvement is expected from richer ore at Collahuasi and Quellaveco in the fourth quarter.
Over nine months, Anglo American produced 518,500 tonnes of copper, 1% less than a year earlier. The annual target remains unchanged at 700,000 to 760,000 tonnes. The company also lowered its copper unit cost guidance to about 139 cents per pound from 145 cents, thanks to high by-product prices and cost control, particularly in Peru.
Other segments showed mixed performance. Premium iron ore fell 4% to 13.8 million tonnes due to planned modernization at the Kumba assets in South Africa. Manganese production was up 6% at 1.03 million tonnes. Metallurgical coal output rose 53% to 2.9 million tonnes.
Anglo American continues to sell its Australian coal assets to Dhilmar for up to $3.9 billion. The nickel deal remains under review by European regulators.
The diamond business remains the most challenging. De Beers’ rough diamond production fell 11% to 6.8 million carats. In Botswana, output dropped 20% due to planned maintenance at Orapa, and in South Africa by 37% as the Venetia mine prepares for a two-year pause. Further decline is expected in the fourth quarter because of maintenance at Jwaneng.
The average realized price over nine months fell 37% to $97 per carat. In the third quarter, 9.8 million carats were sold, bringing in $731 million versus $700 million a year earlier. Volume growth did not offset the price decline. De Beers raised its 2026 production guidance to 25–28 million carats following the consolidation of Canada’s Gahcho Kué mine.
Background
Weakness in the diamond market has devalued De Beers. Over three years, Anglo American has written down $6.8 billion on this business, including $1.6 billion in 2023, $2.9 billion in 2024, and $2.3 billion in 2025. The company is selling its 85% stake, valuing the business at roughly $1 billion, although in 2012 it paid $5.1 billion for an additional 40%. The deal is planned to close in the fourth quarter of 2026, but it must take into account the interests of Botswana, which owns 15% and holds pre-emption rights.
Anglo American is consistently restructuring its portfolio around copper, premium iron ore, and fertilizers. The sale of De Beers remains the last major obstacle on this path. Whether a new owner can restore the diamond business to its former value is an open question.
Source: MINING.COM
Image: Anglo American
