Anglo American becomes latest miner to warn on production


Anglo American Plc said production across its operations will be lower than expected in the next couple of years, the latest big miner to warn on its ability to hit output goals.

Anglo, which will provide more details on its outlook later Friday, said in a statement that it has moderated its near-term production growth plans.

While the biggest miners continue to reap bumper profits from high commodity prices, the industry is also struggling to hit production targets. Anglo’s operations have been hit by everything from logistical problems and extreme weather to fallout from the pandemic.

Glencore earlier this week also lowered its forecasts for 2023 for most of the commodities it mines.

The mining industry’s inability to hit output goals is exacerbating already tight supplies as the world struggles to adapt to Russia’s increasing exclusion from the global economy and disruptions from Covid-19.

Anglo, which expects total production to grow 5% next year and again in 2024, also said costs will continue to rise as inflation hits the global mining industry. It also said it could take a writedown on a potash mine its developing in the north of England.

© 2022 Bloomberg

Source link

Related Articles