Global mining company Anglo American has reported its production report for the first quarter ended 31 March 2016 (1Q16).

At its Australian operations, export metallurgical coal production decreased by 9% to 4.5 million t. The company indicated that this was a result of planned longwall moves in the quarter at both Moranbah and Grasstree, partially offset by strong operational performance at Capcoal opencast mine, as well as the delivery of development coal from Grosvenor. In 1Q15 Dawson was impacted by a maintenance shutdown at the coal preparation plant.

Australian export thermal coal production decreased by 26% to 1.1 million t due to expected lower production from Drayton as it goes through a phased closure following the rejection of the Drayton South project by the New South Wales government.

On 20 January 2016, the agreement to sell the Callide thermal coal mine to Batchfire Resources was announced and remains subject to a number of conditions.

On 4 April 2016, the sale of Foxleigh opencast mine in Australia to Taurus Funds Management was announced. The sale is subject to conditions.

The mining giant’s South African export thermal coal production also saw declines, decreasing by 8% to 4 million t. This is reported to be driven in part by mix at Landau (producing more domestic coal, which, at current prices, results in a higher margin).

Anglo American indicated that Goedehoop production was impacted by unfavourable geology and Greenside experienced some temporary power outage issues.

Eskom production decreased by 8% to 6.4 million t due to a planned longwall move at New Denmark and planned production reductions at Kriel.

In Colombia, Cerrejón’s production decreased by 12% to 2.6 million t, due to planned production cuts to take out the highest cost capacity in response to market conditions.

Full year guidance

Anglo’s full year production guidance remains unchanged at 21 – 22 million t for export metallurgical coal and 28 – 30 million t for export thermal coal from South Africa and Colombia.

Edited from press release by Harleigh Hobbs