Anglo American's Q3CY'24 iron ore output from Kumba hits 1-year high

• Minas-Rio also posts record Q3 performance
  
  
• CY'24 production guidance remains stable
  
  

Anglo American, a major global iron ore miner, recently announced its operational results for the third quarter of 2024 (Q3CY'24). The miner achieved its highest iron ore production from Kumba in a year, with Q3CY'24 output at 9.45 million tonnes (mnt), a marginal increase of 3% from 9.18 mnt in Q2CY'24. The spike in production comes in the wake of greater operational stability at the mines.

However, on a y-o-y basis, Kumba's iron ore production decreased by around 3% compared to 9.74 mnt in Q3CY'23. Meanwhile, in 9MCY'24 (January-September 2024), iron ore production fell by 2% to 27.91 mnt as against 28.48 mnt in the same period last year.

Kumba iron ore sales down 9% in Q3CY'24

Sales volume from the Kumba mines decreased by 9% q-o-q to 8.82 mnt in Q3CY'24 as compared to 9.71 mnt in Q2CY'24.

Kumba Iron Ore's sales were impacted by multiple logistical challenges. Inclement weather conditions disrupted port operations in July, while constraints in third-party rail and port performance restricted sales. Additionally, the annual rail and port maintenance shutdown by Transnet, which commenced in early October, compounded the situation, limiting sales performance during the period.

Meanwhile, sales went down marginally by 1% y-o-y as compared to 8.87 mnt in Q3CY'23. Sales volume decreased by 3% to 26.91 mnt in 9MCY'24 as against 27.83 mnt in 9MCY'23.

Minas-Rio pellet production falls by 2% in Q3CY'24

Minas-Rio mines' pellet production in Q3CY'24 was at 6.30 mnt (wet tonne basis), down marginally by 2% from 6.40 mnt in Q2CY'24. Notably, Minas-Rio achieved a record third-quarter performance in Q3CY'24, with production going up by 11% y-o-y as compared to 5.66 mnt in Q3CY'23.

Additionally, production volume increased by 5% to 18.56 mnt in 9MCY'24 as against 17.64 mnt in 9MCY'23.

Production increased y-o-y amid strategic actions to secure the volume and quality of the ore feed, along with operational enhancements at the beneficiation plant, which boosted mass recovery.

Minas-Rio's pellet sales drop in Q3CY'24

Minas-Rio's pellet sales were recorded at 6.36 mnt (wet tonne basis) in Q3CY'24, registering a decline of 7% q-o-q as compared to 6.80 mnt in Q2CY'24.

However, on a y-o-y basis, sales rose by 8% compared to 5.88 mnt in Q3CY'23. Meanwhile, in 9MCY'24, the sales volume increased by 3% y-o-y to 17.78 mnt as compared to 17.25 mnt in 9MCY'23.

Production guidance remains stable

The iron ore production guidance for CY'24 remained unchanged at 58-62 mnt (Kumba at 35-37 mnt and Minas-Rio at 23-25 mnt). Kumba is subject to third-party rail and port availability and performance.