Anglo American expects '22 iron ore output at 63-67 mn t

London-headquartered miner Anglo American has set its iron ore production guidance for 2022 calendar year at 63-67 million tonnes, with that for its Kumba iron ore asset in South Africa at 39-41 million wet tonnes and that for its Minas-Rio operation in Brazil at 24-26 million wet tonnes, according to the company's latest quarterly report released on January 27.

But the miner cautioned that its full-year guidance is "subject to the extent of further COVID-19 related disruption". It also noted that Kumba's guidance is "subject to the third-party rail and port performance".

During the year to last December, Anglo American produced a total of 63.8 million wet tonnes of iron ore, the report shows. Though the volume was up 3% on year, the total nonetheless still fell short of the miner's previously tightened output guidance of around 64.5 million wet tonnes. The company's total ore sales in 2021 were around 63.3 million wet tonnes, down by a slight 1% on year, according to the report.

During last year, several issues prompted Anglo American to adjust its 2021 production guidance lower, as reported. That for Kumba had been tweaked to around 40.5 million wet tonnes as rail operations in South Africa had performed below planned levels, while that for Minas-Rio was reduced to around 24 million wet tonnes because plant availability in Minas-Rio was low throughout the year.

In detail, actual production in Kumba approximated 40.9 million wet tonnes in 2021, or up 9% on year, while actual output in Minas-Rio was 22.9 million wet tonnes, down 5% on year.

For the last quarter of 2021, Kumba's iron ore output totaled 9.7 million wet tonnes, down 10% on quarter but flat on year. Anglo American said production was "limited by higher stock levels at the mines as a result of the third-party rail performing below planned levels earlier in the year", as well as "the impact of the Q4 annual shut-down for rail and port maintenance".

Iron ore sales from Kumba during the October-December quarter, nevertheless, increased by 7% on quarter or 4% on year to 10.7 million wet tonnes, due to the improved equipment reliability and throughput at the Saldanha port in South Africa's southwest.

Kumba produces mainly 64%-65% Fe ferrous content lumps and fines, with lump accounting for around 69% of total output for full-year 2021.

As for Minas-Rio, the Brazilian mine produced around 5.3 million wet tonnes of iron ore over October-December, down 12% on quarter or 17% on year, mainly due to lower plant availability, impacted by unplanned maintenance and heavy rainfall experienced during the quarter. However, sales of Minas-Rio iron ore grew by 4% on quarter, albeit that the volume was still 4% lower on year.

Minas-Rio mainly produces the 67% Fe grade pellet feeds with low contaminants, according to Anglo American.

Elsewhere, Anglo American's full-year average realized price for Kumba iron ore was $161/wmt FOB South Africa, and that for its Minas-Rio product was $150/wmt FOB Brazil.