Anglo lowers production, export forecast

JOHANNESBURG – Anglo American plc, the global diversified mining company, has lowered its expectation for South Africa’s iron ore production and export thermal coal due to the 21-day national lockdown.

The group said on Friday that Kumba Iron Ore, who previously announced 2020 production guidance of between 41.5million tonnes and 42.5million would likely be 3million tonnes lower after the workforce was scaled down.

Kumba chief executive, Themba Mkhwanazi, said the iron ore producer had halved its workforce in line with lockdown regulations aimed at arresting the spread of the coronavirus that has infected more than 1000 South Africans.

“Based on the 21-day lockdown period and allowing for a safe ramp-up of operations, thereafter, we expect a 2020 production volume impact of between 2million and 3million tonnes based on the 50percent reduction in the workforce,” said the group.

Mkhwanazi said the iron ore producer expected the rail and port logistics infrastructure to support the export of iron to continue to service the operations.