Anglo American output dampened by strikes in Q4

Strikes held back production of platinum and iron ore at Anglo American in the fourth quarter of 2012, though most other commodity classes delivered 'solid' increases in output.

Strikes held back production of platinum and iron ore at Anglo American in the fourth quarter of 2012, though most other commodity classes delivered 'solid' increases in output.

Iron ore output through its Kumba operations in South Africa dropped by 19% year-on-year in the three months to December 31st due to illegal industrial action at the Sishen mine, which resulted in around five million tonnes of production being lost. This was partly offset by better-than-expected production at the Kolomela project. Meanwhile, manganese ore production increased by 17% year-on-year in the fourth quarter.

Together, the iron ore and manganese division accounted for nearly half of Anglo's operating profit in the first half.

Meanwhile, the firm's platinum division (Anglo American Platinum, or Amplats) in South Africa was hit be strikes at its Rustenberg, Amandelbult and Union mines, causing production to decline by 29%.

Amplats announced last week that it would undergo a massive restructuring programme, which would include the closure and sale of several assets and the loss of up to 14,000 jobs. This unsurprisingly drew the harsh criticism from politicians and labour unions.

Anglo also said on Friday that nickel production decreased by 25%, though this was largely due to the expiry of Loma de Niquel mining concessions in Venezuela in November.

"Solid increases"Elsewhere, Anglo said that copper production, which accounted for a fourth of operating profit in the first half, increased by 2% over the year before, as a 31% increase at Los Bronces was offset by a 36% fall at Collahuasi.

Metallurgical coal production rose by 13% during the period, while thermal coal in South Africa increased by 5%. Diamond output rose 24%.

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021