Anglo American shares rise on revised copper output estimate

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.

"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