Anglo American expects increasing production through to 2021

Anglo American is set to beat its expectations for production in 2018 and will see its output continue to grow through to 2021, according to a new company report.

The global miner expects total production for the year to be 2% higher than its previous guidance and this will be coupled with a 5% costs reduction, in a strong end to the year for the company.

“We are also confident about the outlook, with production expected to increase by 3% in 2019, with cost inflation fully absorbed by our productivity and cost improvements,” said chief executive Mark Cutifani.

The South Africa-based firm also expects a further 5% production boost in 2020 and 2021. “In the next five years, we’re basically growing the business around 20%,” Cutifani added.

In October, Anglo raised its platinum and palladium targets for 2019 and last month increased its 2018 copper guidance from its Chilean operations to 660,000 tonnes. Meanwhile, rival miners BHP and Rio Tinto signalled lower copper output from October.

However, completed and planned expansions of some of its mines, including aging copper operations in Chile, will push total capital expenditure up to between US$2.8-3.1 billion on average after 2021.