Anglo American's shares rose Monday as the miner reported it would produce three per cent more copper this year than the last.
The revised forecast was driven in part as the troubled Collahuasi mine turns around after a tough 2012. Operational difficulties, labour unrest and a harsh Andean climate has impacted the copper mine. Last year its output fell to 282,100 tonnes from 453,300 tonnes in 2011.
However, the company said a mill change on March 20th could help boost production by May.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Our expectation for this year's output is 680,000 tonnes of copper for Anglo American," Copper Chief Executive Officer, John MacKenzie, told Reuters.
"At the end of the year we're going to reach a rhythm of 400,000 tons."
It is part of the company's expansion plans to increase annual production to between 800,000 tons and 1,000,000 tonnes which is expected to be achieved once the mine stabilises.
Meanwhile, copper prices are set to advance further Tuesday as Chilean miners strike for 24 hours at Codelco, Anglo and BHP mines, according to Investec.
RD
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
