Anglo American Posts Lower First-Quarter Copper Output

SEATTLE (Scrap Monster): Anglo American on Thursday reported a 15% fall in its copper production for the first quarter of the year and said timing on the completion of its diamonds business divestment depends on market conditions.

The London-listed miner said copper production fell to 169,000 metric tons in the first three months of the year, citing lower production at its operations in Chile.

It still expects 2025 copper production to be between 690,000 and 750,000 tons.

The metal's use for electric vehicles and renewable infrastructure is expected to increase as the world moves towards cleaner energy sources. But worries about global trade tensions have weighed on prices for most industrial metals this year.

Anglo's shares opened 1.6% higher in London.

Iron ore production increased by 2% to 15.4 million tons in the first quarter.

Anglo, which in February booked a $3.8 billion impairment, mostly related to diamond unit De Beers, kept its yearly guidance to 20 million to 23 million carats, after an 11% fall in production in the first quarter. Global economic weakness has lowered the demand outlook for diamonds, traditionally seen as luxury items.

The miner is restructuring its business to mainly focus on energy transition metal copper, as well as iron ore, after BHP Group's failed takeover attempt last year.

It aims to sell or spin off De Beers, having agreed the sale of its coal and nickel assets and the spinout of the platinum unit.

"We continue to pursue a dual track process to divest our interest in De Beers, which we are committed to completing at the right time and when market conditions allow," it said in a statement on Thursday. It had previously said the process would accelerate in the second half of the year.

It now sees the impact of U.S. tariffs likely resulting in "cautious" contract purchases from diamantaires in the near term.

It still targets completion for its coal assets sale by the third quarter, even after a fire halted production at a mine included in the $3.78 billion deal with Peabody Energy earlier this month.

"Restructuring in theory remains on track but there are market concerns on how Peabody can afford to refinance its bridge loan for the acquisition," RBC Capital Markets analysts said in a note.

Courtesy: www.tradingview.com