Anglo American Q3 2016 Production Report | RNS | Ticker

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Anglo American Q3 2016 Production Report

RNS Announcement

RNS Number : 3364N

Anglo American PLC

25 October 2016

NEWS RELEASE

25 October 2016

Anglo American plc

Production Report for the third quarter ended 30 September 2016

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Overview

	Q3 2016	Q3 2015	% vs. Q3 2015	YTD 2016	YTD 2015	% vs. YTD 2015
Diamonds (Mct)⁽¹⁾	6.3	6.0	4%	19.6	21.6	(9)%
Platinum (produced ounces) (koz)⁽²⁾	619	614	1%	1,772	1,739	2%
Copper retained operations (t)^(3)(4)(5)	139,800	153,100	(9)%	430,500	456,600	(6)%
Nickel (t)⁽⁶⁾	11,300	6,800	66%	33,600	19,800	70%
Iron ore - Kumba (Mt)	11.8	11.4	3%	29.5	33.9	(13)%
Iron ore - Minas-Rio (Mt)⁽⁷⁾	4.5	2.9	53%	11.3	5.9	91%
Export metallurgical coal (Mt)	5.5	5.5	1%	15.5	15.7	(1)%
Export thermal coal (Mt)⁽⁸⁾	8.8	8.8	0%	24.5	26.1	(6)%

Mark Cutifani, Anglo American Chief Executive, said "Operational improvements continue across the portfolio, delivering a 4% production increase on a copper equivalent basis⁽⁹⁾ in the third quarter, and a 12% increase compared to Q2 2016. The latter increase is largely due to the strong recovery at Kumba's Sishen mine, a 46% production increase, following the successful completion of its restructuring. In our diamond and platinum businesses we continue to maintain discipline on volumes by mining to demand, whilst the ramp-ups at Minas-Rio and Grosvenor are progressing well, and Barro Alto has now reached nameplate capacity. The modestly higher production at De Beers is reflective of improved market conditions relative to Q3 2015, but we maintain a cautious outlook."

· Diamond production increased by 4% to 6.3 million carats compared with Q3 2015 when production was reduced in response to the prevailing trading conditions.

· Platinum production (expressed as metal in concentrate)(2) was broadly unchanged, increasing by 1% to 619,000 ounces. Refined platinum production increased by 14% to 694,700 ounces, following recovery at the Precious Metals Refinery.

· Copper production from the retained operations decreased by 9% to 139,800 tonnes. Expected lower grades at Los Bronces and the impact of strikes at Los Bronces and El Soldado, were partly offset by strong plant performance and higher grades at Collahuasi.

· Nickel production increased by 66% to 11,300 tonnes following the successful completion of the Barro Alto furnace rebuilds in 2015.

· Iron ore production from Kumba increased by 3% (33% vs. Q2 2016) to 11.8 million tonnes due to productivity improvements at Sishen following its restructuring.

· Iron ore production from Minas-Rio increased by 53% to 4.5 million tonnes (wet basis) as the operation continues to ramp-up.

· Export metallurgical coal production was broadly unchanged, increasing by 1% to 5.5 million tonnes due to the ramp-up at Grosvenor and a longwall move at Moranbah in Q3 2015, offsetting geological issues at Grasstree and the sale of Foxleigh, which completed on 30 August 2016.

· Export thermal coal production remained flat at 8.8 million tonnes. An increase in production at Cerrejón was offset by a ramp-down at Drayton where mining activities will cease in Q4 2016.

(1) De Beers production on 100% basis except the Gahcho Kué joint venture which is on an attributable 51% basis; (2) Reflects own mine production and purchases of metal in concentrate. (3) Copper production from the Copper business unit; (4) Copper production shown on a contained metal basis; (5) 2015 Copper production normalised for the sale of Anglo American Norte; (6) Nickel production from the Nickel business unit; (7) Wet basis; (8) Export thermal coal includes production from Australia, South Africa and Colombia; (9) Copper equivalent production is normalised for the sale of Anglo American Norte and the Kimberley mine, and to reflect Snap Lake being placed on care and maintenance..

DE BEERS

Diamonds⁽¹⁾		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Debswana	000 carats	4,549	4,074	12%	5,184	(12)%	15,061	15,619	(4)%
Namdeb Holdings	000 carats	405	466	(13)%	296	37%	1,145	1,359	(16)%
DBCM	000 carats	1,094	1,036	6%	821	33%	2,847	3,214	(11)%
De Beers Canada	000 carats	225	436	(48)%	147	53%	534	1,448	(63)%
Total carats recovered	000 carats	6,273	6,012	4%	6,448	(3)%	19,587	21,640	(9)%

⁽¹⁾ De Beers production is on a 100% basis, except for the Gahcho Kué joint venture which is on an attributable 51% basis.

De Beers -Diamond production increased by 4% to 6.3 million carats compared with Q3 2015 when production was reduced in response to the prevailing trading conditions.

At Debswana (Botswana), production increased by 12% to 4.5 million carats with production at Jwaneng increasing by 47% as a result of planned maintenance in Q3 2015 being prioritised in light of trading conditions. This was partly offset by a planned 22% decrease at Orapa to align aggregate production to trading conditions.

Production at DBCM (South Africa) increased by 6% to 1.1 million carats largely as a result of processing higher grades at Venetia and increased throughput at Voorspoed. This was partly offset by the early completion of the sale of Kimberley Mines in January 2016.

Production at Namdeb Holdings (Namibia) decreased by 13% to 0.4 million carats with lower grades at Namdeb Land, and the Debmar Pacific vessel being in port for planned maintenance in Q3 2016 at Debmarine Namibia.

Production in Canada decreased by 48% to 0.2 million carats due to Snap Lake being placed on care and maintenance in December 2015. This was partially offset by first production at Gahcho Kué. Gahcho Kué was officially opened on 20 September 2016 and ramp-up is progressing well.

Consolidated rough diamond sales in Q3 2016 increased by 77% to 5.3 million carats. This increase reflected improved trading conditions from those experienced in Q3 2015, when higher pipeline stock impacted midstream demand.

Full Year Guidance

Full year production guidance remains unchanged at 26-28 million carats, subject to trading conditions.

PLATINUM

Platinum		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Produced ounces⁽¹⁾
Platinum	000 oz	619	614	1%	586	6%	1,772	1,739	2%
Refined
Platinum	000 oz	695	611	14%	748	(7)%	1,703	1,714	(1)%
Palladium	000 oz	413	391	6%	472	(13)%	1,067	1,127	(5)%
Rhodium	000 oz	87	78	12%	91	(4)%	225	220	3%
Copper - Refined	t	3,800	4,200	(10)%	3,700	3%	10,800	12,100	(11)%
Copper - Matte⁽²⁾	t	0	0	0%	0	0%	0	300	(100)%
Nickel - Refined	t	7,100	6,400	11%	6,400	11%	19,200	18,100	6%
Nickel - Matte⁽²⁾	t	0	0	0%	0	0%	0	400	(100)%
Gold	000 oz	24	23	5%	22	8%	74	84	(11)%

(1) Reflects own mine production and purchases of metal in concentrate.

(2) Copper and nickel refined through third parties is shown as production of copper matte and nickel matte.

Platinum - Production (metal in concentrate) was broadly unchanged, increasing by 1% to 619,100 ounces.

Mogalakwena production increased by 12% to 100,700 ounces. This was driven by a 19% increase in tonnes milled due to increased plant efficiencies and throughput, though Q3 2015 was impacted by community disruption. The increase is partially offset by a return to normalised grades of 2.92g/t, with normalised grades ranging between 2.8g/t to 3.0g/t.

Amandelbult production was broadly unchanged, increasing by 1% to 128,300 ounces.

Unki production increased by 16% to 18,200 ounces. Improved underground mining efficiencies resulted in a 5% increase in tonnes milled, complemented by a 9% increase in grade.

Independently managed production (mined and purchased, but excluding third party purchase of concentrate) was broadly unchanged, decreasing by 1% to 207,100 ounces, driven primarily by Bokoni due to the closure of two shafts in Q4 2015. This was offset by strong performance at Modikwa, Kroondal and BRPM.

Production from Rustenburg operations including the Western Limb Tailings Retreatment decreased by 3% to 120,900 ounces. Production was impacted by two fatalities in Q3 2016.

Following the restructuring at Union, the mine continued to perform in line with its optimised mine plan, maintaining production at 37,700 ounces, despite a reduction in labour.

Refined platinum production increased by 14% to 694,600 ounces as a result of processing additional matte material that had built-up after a Section 54 safety stoppage in Q1 2016 at the Precious Metals Refinery.

As announced by Anglo American Platinum on 13 September 2016, following the run-out Platinum's Waterval Smelter on 10 September 2016, the furnace rebuild has been brought forward from the planned date in 2018, and will proceed in Q4 2016. This has impacted Q3 2016 refined production by c.6,000 ounces and is now estimated to impact full year refined production by c.75,000 (previously 70,000-100,000) ounces. The furnace rebuild will result in a build-up of concentrate ahead of being smelted, however this will be processed in full by the end of 2017. Mining and concentrating activities are unaffected, therefore there is no change to the full year production guidance.

Full Year Guidance

Full year production guidance (metal in concentrate) remains unchanged at between 2.3-2.4 million ounces.

COPPER

Copper⁽¹⁾		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Collahuasi (44% share)	t	57,000	43,500	31%	56,200	1%	164,300	138,800	18%
Los Bronces mine	t	72,100	98,600	(27)%	75,600	(5)%	232,900	290,700	(20)%
Copper retained operations⁽²⁾	t	139,800	153,100	(9)%	144,200	(3)%	430,500	456,600	(6)%
Total attributable copper production	t	139,800	171,100	(18)%	144,200	(3)%	430,500	527,400	(18)%

(1) Copper production shown on a contained metal basis

(2) Anglo American Norte excluded for all periods

Copper - Copper production from the retained operations (excluding AA Norte assets sold effective

1 September 2015) decreased by 9% to 139,800 tonnes and by 3% compared to Q2 2016.

Production from Los Bronces decreased by 27% to 72,100 tonnes due to expected lower grades (0.65% vs 0.87%) mainly as a consequence of lower mine development in higher grade areas in H1 following severe weather, as previously reported. In addition, operations were disrupted by a seven day strike in September (c.7kt impact on production).

At Collahuasi, attributable production increased by 31% to 57,000 tonnes due to higher grades (1.23% vs. 1.09%) and continued strong plant performance. Significant maintenance to the SAG lines also took place in Q3 2015.

El Soldado production decreased by 3% to 10,700 tonnes due largely to the impact of a 13-day strike that took place in July (c.4kt impact on production).

Full Year Guidance

Full year guidance for 2016 remains at 570,000 - 600,000 tonnes.

NICKEL

Nickel

2016

2015

Q3 2016 vs.

Q3 2015

2016

Q3 2016 vs.

Q2 2016

YTD

2016

YTD

2015

YTD 2016 vs.

YTD 2015

Nickel

11,300

6,800

66%

11,100

33,600

19,800

70%

Nickel - Nickel production increased by 66% to 11,300 tonnes following the successful rebuild of both Barro Alto furnaces, which are now producing at nameplate capacity. Production from Codemin increased by 10% to 2,300 tonnes.

Full Year Guidance

Full year production guidance remains unchanged at 45,000 - 47,000 tonnes.

NIOBIUM

Niobium

2016

2015

Q3 2016 vs.

Q3 2015

2016

Q3 2016 vs.

Q2 2016

YTD

2016

YTD

2015

YTD 2016 vs.

YTD 2015

Niobium

2,100

1,800

17%

1,200

75%

4,700

Niobium - Niobium production increased by 17% to 2,100 tonnes reflecting the continued ramp-up of the BVFR plant, with record production achieved in July.

The sale of the Niobium and Phosphates businesses completed as at the end of 30 September 2016.

PHOSPHATES

Phosphates		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015		Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Phosphates
Concentrate	t	342,400	363,100	(6)%	358,000		(4)%	1,033,400	985,700	5%
Phosphoric acid	t	80,900	75,600	7%	73,600		10%	233,600	201,200	16%
Fertiliser	t	303,500	294,400	3%	285,900		6%	864,300	807,400	7%
Dicalcium phosphate (DCP)	t	40,900	33,700	21%	41,500		(1)%	113,900	108,600	5%

Phosphates - Production of concentrate, phosphoric acid and fertiliser was largely unchanged. DCP production increased by 21%, driven by improved operational stability and increased phosphoric acid availability (due to both higher production and product mix optimisation).

The sale of the Niobium and Phosphates businesses completed as at the end of 30 September 2016.

IRON ORE AND MANGANESE

Iron Ore and Manganese		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Iron ore - Kumba	000 t	11,760	11,391	3%	8,864	33%	29,548	33,943	(13)%
Iron ore - Minas-Rio(1)	000 t	4,452	2,919	53%	3,484	28%	11,286	5,922	91%
Manganese ore(2)	000 t	762	923	(17)%	791	(4)%	2,329	2,516	(7)%
Manganese alloys(3)	000 t	39	44	(11)%	30	31%	101	170	(41)%

(1) Wet basis

(2) Saleable production

(3) Production includes medium carbon ferro-manganese

Kumba Iron Ore - Iron ore production increased by 3% to 11.8 million tonnes.

Sishen production increased by 9% (46% against Q2 2016) to 8.3 million tonnes underpinned by higher quality feedstock material and improved plant yields. The restructuring has been completed and the mine successfully transitioned to a 3-shift roster system in September 2016 which is expected to result in further improvements in equipment efficiencies over the medium term. Consistent with the mine's lower cost pit configuration, waste removal decreased to 35 million tonnes compared to 60 million tonnes in Q3 2015. Waste run rates remain in line with the full year guidance.

Kolomela production was broadly unchanged at 3.4 million tonnes.

Export sales increased by 5% to 10.3 million tonnes reflecting higher production. Total finished product stocks were 3.1 million tonnes, compared with 2.3 million tonnes at 30 June 2016.

Full Year Guidance

Full year production guidance for Sishen remains unchanged at ~27 million tonnes and waste volumes of between 135-150 million tonnes. Kolomela is expected to marginally exceed its full year guided production of ~12 million tonnes, with a commensurate increase in waste, which has previously been guided at 46-48 million tonnes.

Iron Ore Brazil - Iron ore production from Minas-Rio increased to 4.5 million tonnes (wet basis) during Q3 2016, a 28% increase compared to Q2 2016, as the operation continues its ramp-up.

In July 2016, a provisional licence approval was granted and allowed immediate access to the next tranche of reserves, which brought forward an increase in availability and reduction in variability of run-of-mine material, leading to overall improved operational performance in Q3 2016. The final approval of this licence was obtained in October 2016.

Full Year guidance

Full year production guidance for Iron Ore Brazil remains unchanged at 15-17 million tonnes (wet basis).

Manganese ore - Manganese ore production decreased by 17% from Q3 2015 due to revised production levels in response to market conditions. The mines are now running at the optimised rate following the decision to stop work at the South African Wessels underground mine following a fatality in June 2016.

Manganese alloy - Manganese alloy production decreased by 11% as the South African Manganese operations continue to only operate one of its four furnaces due to market conditions.

COAL

Coal		Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Australia
Metallurgical - Export	000 t	5,507	5,476	1%	5,483	0%	15,516	15,724	(1)%
Thermal - Export	000 t	1,113	1,366	(19)%	1,107	1%	3,286	4,126	(20)%
Thermal - Domestic	000 t	1,682	1,801	(7)%	1,717	(2)%	4,892	5,073	(4)%
South Africa
Thermal - Export	000 t	4,751	4,887	(3)%	4,656	2%	13,383	13,526	(1)%
Thermal - Domestic (Eskom)	000 t	8,084	6,763	20%	6,709	20%	21,185	20,488	3%
Thermal - Domestic (Non- Eskom)	000 t	1,856	1,730	7%	1,824	2%	5,484	5,022	9%
Colombia
Thermal - Export	000 t	2,928	2,527	16%	2,330	26%	7,867	8,446	(7)%

Australia - Export metallurgical coal production was broadly unchanged, increasing by 1% to 5.5 million tonnes due to production ramping up at Grosvenor and a Q3 2015 longwall move at Moranbah, offset by the sale of the Foxleigh open cut mine (completed on 30 August 2016) and geological issues at Grasstree ahead of the planned longwall move.

Australian export thermal coal production decreased by 19% to 1.1 million tonnes as Drayton continues to ramp down to a full cessation of mining activities in Q4 2016.

South Africa - Export thermal coal production decreased by 3% to 4.8 million tonnes. This is primarily due to Landau and Zibulo export production being re-directed into the domestic market for value.

Eskom related production increased by 20% due to increased demand from Eskom and increased Eskom production at Kleinkopje.

Colombia - Cerrejón's attributable production increased by 16% to 2.9 million tonnes due to improved productivity and favourable weather conditions.

Full Year Guidance

Full year production guidance for export metallurgical coal has been reduced to 20.5-21.5 million tonnes (previously 21-22 million tonnes) due to the completion of the Foxleigh sale on 30 August 2016.

Full year production guidance for export thermal coal from South Africa and Colombia remains unchanged at 28-30 million tonnes.

EXPLORATION AND EVALUATION

Exploration and Evaluation expenditure for the quarter totaled $51 million, a decrease of 27%.

Exploration expenditure for the quarter totaled $26 million, a decrease of 19%.

Evaluation expenditure for the quarter totaled $25 million, a decrease of 34%.

NOTE

This Production Report for the third quarter ended 30 September 2016 is unaudited.

PRODUCTION SUMMARY

The figures below include the entire output of consolidated entities and the Group's attributable share of joint operations, associates and joint ventures where applicable, except for De Beers' joint ventures which are quoted on a 100% basis unless otherwise stated.

De Beers	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015		YTD 2016 vs. YTD 2015
Carats recovered
100% basis (unless otherwise stated)
Orapa	1,536,000	2,028,000	2,001,000	2,516,000	1,959,000	(24)%	(22)%	5,565,000		7,361,000		(24)%
Letlhakane	176,000	159,000	125,000	73,000	134,000	11%	31%	460,000		433,000		6%
Damtshaa	-	-	-	59,000	45,000	-	(100)%	-		162,000		(100)%
Jwaneng	2,837,000	2,997,000	3,202,000	2,101,000	1,936,000	(5)%	47%	9,036,000		7,663,000		18%
Debswana	4,549,000	5,184,000	5,328,000	4,749,000	4,074,000	(12)%	12%	15,061,000		15,619,000		(4)%

Namdeb	120,000	94,000	72,000	119,000	148,000	28%	(19)%	286,000		375,000		(24)%
Debmarine Namibia	285,000	202,000	372,000	286,000	318,000	41%	(10)%	859,000		984,000		(13)%
Namdeb Holdings	405,000	296,000	444,000	405,000	466,000	37%	(13)%	1,145,000		1,359,000		(16)%

Kimberley	-	-	68,000	242,000	192,000	-	(100)%	68,000		595,000		(89)%
Venetia	898,000	695,000	706,000	1,033,000	712,000	29%	26%	2,299,000		2,099,000		10%
Voorspoed	196,000	126,000	158,000	184,000	132,000	56%	48%	480,000		520,000		(8)%
DBCM	1,094,000	821,000	932,000	1,459,000	1,036,000	33%	6%	2,847,000		3,214,000		(11)%

Snap Lake	-	-	3,000	280,000	283,000	-	(100)%	3,000		963,000		(100)%
Victor	142,000	147,000	159,000	159,000	153,000	(3)%	(7)%	448,000		485,000		(8)%
Gahcho Kué (51% basis)	83,000	-	-	-	-	-	-	83,000		-		-
De Beers Canada	225,000	147,000	162,000	439,000	436,000	53%	(48)%	534,000		1,448,000		(63)%
Total carats recovered	6,273,000	6,448,000	6,866,000	7,052,000	6,012,000	(3)%	4%	19,587,000		21,640,000		(9)%
Sales volumes ⁽¹⁾
Total sales volume - carats (100%) (Mct)	5.7	10.2	8.1	3.6	3.0	(44)%	90%	24.0		17.0		41%
Consolidated sales volume - carats (Mct)	5.3	9.6	7.6	3.6	3.0	(45)%	77%	22.6		16.3		39%

Platinum	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Refined production
Platinum (troy oz)	694,600	747,600	260,800	744,900	610,900	(7)%	14%	1,703,100	1,713,900	(1)%
Palladium (troy oz)	412,900	472,300	181,600	468,400	390,700	(13)%	6%	1,066,800	1,126,500	(5)%
Rhodium (troy oz)	86,800	90,700	47,700	85,700	77,600	(4)%	12%	225,200	219,500	3%
Copper refined (tonnes)⁽²⁾	3,800	3,700	3,300	4,700	4,200	3%	(10)%	10,800	12,100	(11)%
Copper matte (tonnes)⁽²⁾	-	-	-	-	-	0%	0%	-	300	(100)%
Nickel refined (tonnes)⁽²⁾	7,100	6,400	5,700	7,300	6,400	11%	11%	19,200	18,100	6%
Nickel matte (tonnes)⁽²⁾	-	-	-	-	-	0%	0%	-	400	(100)%
Gold (troy oz)	24,100	22,300	27,900	29,500	23,000	8%	5%	74,300	83,500	(11)%
Mogalakwena (troy oz)	100,700	98,800	109,000	98,500	89,700	2%	12%	308,500	294,000	5%
Amandelbult (troy oz)	128,300	106,200	110,900	120,900	127,600	21%	1%	345,400	316,600	9%
Unki (troy oz)	18,200	17,800	18,600	18,600	15,700	2%	16%	54,600	47,900	14%
Independently managed (troy oz)	207,100	203,200	185,100	199,100	209,000	2%	(1)%	595,400	569,300	5%
Rustenburg (troy oz)	120,900	112,300	106,400	117,800	124,000	8%	(3)%	339,500	367,600	(8)%
Union (troy oz)	37,700	41,200	34,300	38,000	37,700	(8)%	0%	113,200	103,200	10%
Other⁽³⁾ (troy oz)	6,200	6,200	2,700	5,100	10,500	0%	(41)%	15,100	40,700	(63)%
Produced ounces Platinum (troy oz)	619,100	585,700	567,000	598,000	614,300	6%	1%	1,771,700	1,739,300	2%
4E built-up head grade (g/tonne milled)⁽⁴⁾	3.19	3.00	3.11	3.24	3.27	6%	(2)%	3.10	3.23	(4)%
Platinum sales volumes	588,000	808,400	412,800	621,800	690,100	(27)%	(15)%	1,809,200	1,849,500	(2)%

Copper (tonnes) on a contained metal basis unless stated otherwise⁽⁵⁾	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Collahuasi 100% basis (Anglo American share 44%)
Ore mined	17,131,800	15,277,400	14,858,200	22,468,800	18,879,300	12%	(9)%	47,267,400	57,104,700	(17)%
Ore processed - Oxide	-	-	-	-	1,484,900	-	(100)%	-	4,653,900	(100)%
Ore processed - Sulphide	12,522,100	12,479,200	12,102,800	12,801,300	9,464,800	0%	32%	37,104,100	30,989,300	20%
Ore grade processed - Oxide (% ASCu)⁽⁶⁾	-	-	-	-	0.63	-	-	-	0.63	-
Ore grade processed - Sulphide (% TCu)⁽⁷⁾	1.23	1.21	1.15	1.25	1.09	2%	13%	1.20	1.11	8%
Production - Copper cathode	800	1,400	1,900	3,100	6,000	(43)%	(87)%	4,100	19,100	(79)%
Production - Copper in concentrate	128,900	126,300	114,200	136,800	92,800	2%	39%	369,400	296,300	25%
Total copper production for Collahuasi	129,700	127,700	116,100	139,900	98,800	2%	31%	373,500	315,400	18%
Anglo American's share of copper production for Collahuasi⁽⁸⁾	57,000	56,200	51,100	61,500	43,500	1%	31%	164,300	138,800	18%
Anglo American Sur
Los Bronces mine⁽⁹⁾
Ore mined	13,947,400	13,477,900	10,487,900	13,252,200	10,112,600	3%	38%	37,913,200	37,006,300	2%
Marginal ore mined	6,192,800	6,148,500	13,402,300	11,673,100	7,733,600	1%	(20)%	25,743,600	27,579,500	(7)%
Ore processed - Sulphide	11,511,700	12,567,500	12,055,300	14,115,200	11,584,300	(8)%	(1)%	36,134,500	31,281,700	16%
Ore grade processed - Sulphide (% TCu)	0.65	0.62	0.74	0.83	0.87	5%	(25)%	0.67	0.97	(31)%
Production - Copper cathode	8,800	8,900	9,700	9,700	8,500	(1)%	4%	27,400	25,300	9%
Production - Copper in concentrate	63,300	66,700	75,500	101,300	90,100	(5)%	(30)%	205,500	265,400	(23)%
Production total	72,100	75,600	85,200	111,000	98,600	(5)%	(27)%	232,900	290,700	(20)%
El Soldado mine⁽⁹⁾
Ore mined	1,678,300	2,143,000	1,448,000	1,280,000	951,600	(22)%	76%	5,269,300	3,928,100	34%
Ore processed - Sulphide	1,553,200	1,741,200	1,836,100	1,557,500	1,441,800	(11)%	8%	5,130,500	4,407,900	16%
Ore grade processed - Sulphide (% TCu)	0.86	0.89	0.75	0.79	0.90	(3)%	(4)%	0.83	0.76	9%
Production - Copper cathode	-	-	-	-	-	-	-	-	200	(100)%
Production - Copper in concentrate	10,700	12,400	10,200	8,900	11,000	(14)%	(3)%	33,300	26,900	23%
Production total	10,700	12,400	10,200	8,900	11,000	(14)%	(3)%	33,300	27,100	22%
Chagres Smelter⁽⁹⁾
Ore smelted	35,500	36,500	35,900	35,900	39,900	(3)%	(11)%	107,900	113,200	(5)%
Production	34,700	35,500	35,200	34,900	38,900	(2)%	(11)%	105,400	110,200	(4)%
Total copper production for Anglo American Sur	82,800	88,000	95,400	119,900	109,600	(6)%	(24)%	266,200	317,800	(16)%
Anglo American Norte
Mantos Blancos mine
Ore processed - Sulphide	-	-	-	-	718,400	-	(100)%	-	2,835,500	(100)%
Ore grade processed - Sulphide (% TCu)	-	-	-	-	0.75	-	-	-	0.76	-
Production - Copper cathode	-	-	-	-	5,000	-	(100)%	-	20,400	(100)%
Production - Copper in concentrate	-	-	-	-	4,500	-	(100)%	-	18,100	(100)%
Production total	-	-	-	-	9,500	-	(100)%	-	38,500	(100)%
Mantoverde mine
Ore processed - Oxide	-	-	-	-	1,838,000	-	(100)%	-	6,605,300	(100)%
Ore processed - Marginal ore	-	-	-	-	1,658,000	-	(100)%	-	5,944,800	(100)%
Ore grade processed - Oxide (% ASCu)	-	-	-	-	0.51	-	-	-	0.52	-
Ore grade processed - Marginal ore (% ASCu)	-	-	-	-	0.20	-	-	-	0.21	-
Production - Copper cathode	-	-	-	-	8,500	-	(100)%	-	32,300	(100)%
Total copper production for Anglo American Norte	-	-	-	-	18,000	-	(100)%	-	70,800	(100)%
Total Copper segment copper production	212,500	215,700	211,500	259,800	226,400	(1)%	(6)%	639,700	704,000	(9)%
Total Attributable copper production⁽¹⁰⁾	139,800	144,200	146,500	181,400	171,100	(3)%	(18)%	430,500	527,400	(18)%
Total Attributable payable copper production	135,000	139,200	141,600	175,300	165,800	(3)%	(19)%	415,800	511,600	(19)%
Total Attributable sales volumes	135,400	143,500	137,500	183,000	178,400	(6)%	(24)%	416,400	522,600	(20)%
Total Attributable payable sales volumes	130,700	138,500	133,000	176,700	172,900	(6)%	(24)%	402,200	506,800	(21)%
Third party sales⁽¹¹⁾	26,000	6,700	9,200	41,400	-	288%	100%	41,900	-	100%

Nickel (tonnes) unless stated otherwise⁽¹²⁾	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Barro Alto
Ore mined	974,100	835,300	457,000	453,200	1,351,700	17%	(28)%	2,266,400	2,490,400	(9)%
Ore processed	610,000	569,200	598,100	566,400	330,700	7%	84%	1,777,300	906,400	96%
Ore grade processed - % Ni	1.76	1.76	1.77	1.77	1.79	0%	(1)%	1.76	1.79	(2)%
Production	9,000	8,800	8,900	8,100	4,700	2%	91%	26,700	13,100	104%
Codemin
Ore mined	-	7,600	-	-	-	n.m.	n.m	7,600	8,600	(12)%
Ore processed	144,000	151,300	151,400	154,000	140,000	(5)%	3%	446,700	437,100	2%
Ore grade processed - % Ni	1.72	1.72	1.68	1.69	1.70	0%	1%	1.70	1.69	1%
Production	2,300	2,300	2,300	2,400	2,100	0%	10%	6,900	6,700	3%
Total Nickel segment nickel production	11,300	11,100	11,200	10,500	6,800	2%	66%	33,600	19,800	70%
Sales volumes	11,600	11,100	10,800	9,500	6,400	5%	81%	33,500	22,500	49%

Niobium (tonnes) unless stated otherwise	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Niobium
Ore mined	877,800	661,000	690,300	637,700	597,300	33%	47%	2,229,100	1,494,000	49%
Ore processed	594,700	601,100	484,800	580,700	578,400	(1)%	3%	1,680,600	1,650,600	2%
Ore grade processed - %Nb	1.06	0.95	0.91	1.00	0.93	12%	14%	0.98	0.94	4%
Production	2,100	1,200	1,400	1,600	1,800	75%	17%	4,700	4,700	0%
Sales volumes	1,600	1,900	1,100	800	1,400	(16)%	14%	4,600	4,300	7%

Phosphates (tonnes) unless stated otherwise	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Phosphates
Concentrate	342,400	358,000	333,100	355,700	363,100	(4)%	(6)%	1,033,400	985,700	5%
Concentrate grade - %P₂O₅	37.1	37.1	36.6	36.7	36.8	0%	1%	36.9	36.8	0%
Phosphoric acid	80,900	73,600	79,100	63,900	75,600	10%	7%	233,600	201,200	16%
Fertiliser	303,500	285,900	274,900	303,400	294,400	6%	3%	864,300	807,400	7%
High analysis fertiliser	56,200	53,600	47,800	36,700	42,400	5%	33%	157,600	136,000	16%
Low analysis fertiliser	247,300	232,300	227,100	266,700	252,000	6%	(2)%	706,700	671,300	5%
Dicalcium phosphate (DCP)	40,900	41,500	31,500	38,700	33,700	(1)%	21%	113,900	108,600	5%
Fertiliser sales volumes	363,100	362,300	247,300	194,400	339,600	0%	7%	972,700	865,600	12%

Iron Ore and Manganese (tonnes)	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Kumba Iron Ore
Lump	7,598,500	5,721,300	5,669,700	7,029,100	7,322,300	33%	4%	18,989,600	21,974,100	(14)%
Fines	4,161,400	3,142,300	3,254,800	3,906,100	4,068,600	32%	2%	10,558,500	11,968,900	(12)%
Total Kumba production	11,759,900	8,863,600	8,924,500	10,935,200	11,390,900	33%	3%	29,548,100	33,943,000	(13)%
Sishen	8,348,700	5,699,600	5,841,800	7,661,300	7,669,800	46%	9%	19,890,100	23,731,600	(16)%
Kolomela	3,411,200	3,164,000	2,713,100	2,853,800	3,347,800	8%	2%	9,288,300	9,200,600	1%
Thabazimbi	-	-	369,600	420,100	373,300	0%	(100)%	369,600	1,010,800	(63)%
Total Kumba production	11,759,900	8,863,600	8,924,500	10,935,200	11,390,900	33%	3%	29,548,000	33,943,000	(13)%
Kumba sales volumes
RSA export iron ore	10,343,200	8,729,700	9,376,100	10,509,300	9,846,500	18%	5%	28,449,000	33,050,700	(14)%
RSA domestic iron ore	706,900	936,000	1,167,700	533,500	960,700	(24)%	(26)%	2,809,600	3,743,300	(25)%
Minas-Rio production
Pellet feed (wet basis)	4,452,400	3,483,800	3,349,400	3,252,500	2,918,800	28%	53%	11,285,600	5,921,700	91%
Minas-Rio sales volumes
Export - pellet feed (wet basis)	4,510,400	3,223,900	3,714,400	3,035,000	2,793,900	40%	61%	11,448,700	5,432,600	111%
Samancor
Manganese ore⁽¹³⁾	761,700	791,300	775,900	596,000	923,200	(4)%	(17)%	2,328,900	2,515,600	(7)%
Manganese alloys^(13)(14)	38,900	29,700	32,100	43,500	43,700	31%	(11)%	100,700	170,100	(41)%
Samancor sales volumes
Manganese ore	761,800	833,500	870,900	720,200	813,900	(9)%	(6)%	2,466,200	2,364,500	4%
Manganese alloys	49,200	46,400	42,800	42,000	42,400	6%	16%	138,400	178,800	(23)%

Coal (tonnes)	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Australia
Metallurgical - Export Coking	4,326,600	3,997,500	3,378,900	4,302,100	4,115,000	8%	5%	11,703,000	11,605,700	1%
Metallurgical - Export PCI	1,180,000	1,485,800	1,147,200	1,182,200	1,360,500	(21)%	(13)%	3,813,000	4,118,000	(7)%
	5,506,600	5,483,300	4,526,100	5,484,300	5,475,500	0%	1%	15,516,000	15,723,800	(1)%
Thermal - Export	1,112,700	1,107,000	1,065,900	1,154,300	1,366,400	1%	(19)%	3,285,600	4,126,200	(20)%
Thermal - Domestic	1,682,000	1,716,700	1,492,900	1,978,800	1,800,500	(2)%	(7)%	4,891,600	5,072,800	(4)%
	2,794,700	2,823,700	2,558,800	3,133,100	3,166,900	(1)%	(12)%	8,177,200	9,199,000	(11)%
South Africa
Thermal - Export	4,750,900	4,655,800	3,976,000	3,878,000	4,887,200	2%	(3)%	13,382,700	13,525,600	(1)%
Thermal - Domestic (Eskom)	8,083,900	6,708,700	6,392,000	5,533,500	6,763,000	20%	20%	21,184,600	20,487,700	3%
Thermal - Domestic (Non-Eskom)	1,855,900	1,824,300	1,803,800	1,821,500	1,730,400	2%	7%	5,484,000	5,022,400	9%
	14,690,700	13,188,800	12,171,800	11,233,000	13,380,600	11%	10%	40,051,300	39,035,700	3%
Colombia
Thermal - Export	2,927,800	2,329,500	2,610,000	2,628,100	2,526,800	26%	16%	7,867,300	8,446,200	(7)%
Total Metallurgical coal production	5,506,600	5,483,300	4,526,100	5,484,300	5,475,500	0%	1%	15,516,000	15,723,800	(1)%
Total Export Thermal coal production	8,791,400	8,092,300	7,651,900	7,660,400	8,780,400	9%	0%	24,535,600	26,098,000	(6)%
Total Domestic Thermal coal production	11,621,800	10,249,700	9,688,700	9,333,800	10,293,900	13%	13%	31,560,200	30,582,900	3%
Total Coal production	25,919,800	23,825,300	21,866,700	22,478,500	24,549,800	9%	6%	71,611,800	72,404,700	(1)%
Sales volumes (own mined)
Australia
Metallurgical - Export⁽¹⁵⁾	5,512,700	5,403,200	4,815,800	5,396,000	5,480,900	2%	1%	15,731,700	15,697,400	0%
Thermal - Export	1,123,100	1,151,900	1,173,000	1,341,700	1,638,600	(3)%	(31)%	3,448,000	4,562,500	(24)%
Thermal - Domestic	1,604,000	1,653,400	1,506,800	1,915,800	1,871,900	(3)%	(14)%	4,764,200	5,133,400	(7)%
South Africa
Thermal - Export	4,159,300	4,744,000	4,343,200	5,188,700	4,568,600	(12)%	(9)%	13,246,500	14,731,100	(10)%
Thermal - Domestic	9,522,400	8,187,200	7,828,600	6,763,300	7,977,800	16%	19%	25,538,200	24,928,300	2%
Colombia
Thermal - Export	2,905,100	2,843,800	2,339,000	2,565,100	2,853,400	2%	2%	8,087,900	8,624,200	(6)%

Coal by mine (tonnes)	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q3 2016 vs. Q2 2016	Q3 2016 vs. Q3 2015	YTD 2016	YTD 2015	YTD 2016 vs. YTD 2015
Australia
Callide	1,938,900	1,805,300	1,748,200	2,295,200	1,988,900	7%	(3)%	5,492,400	5,635,200	(3)%
Capcoal (incl. Grasstree)	1,637,300	2,205,400	1,760,000	2,283,800	2,353,300	(26)%	(30)%	5,602,700	6,405,900	(13)%
Dawson	1,185,900	1,143,800	1,006,000	1,025,800	1,249,400	4%	(5)%	3,335,700	3,288,700	1%
Drayton	317,100	418,200	349,900	351,300	600,400	(24)%	(47)%	1,085,200	1,770,700	(39)%
Foxleigh	438,900	566,000	434,500	376,300	494,800	(22)%	(11)%	1,439,400	1,484,300	(3)%
Grosvenor	685,700	331,200	203,000	179,100	147,300	107%	366%	1,219,900	320,700	280%
Jellinbah	820,200	821,600	758,400	872,700	798,400	0%	3%	2,400,200	2,328,700	3%
Moranbah North	1,277,300	1,015,500	824,900	1,233,200	1,009,900	26%	26%	3,117,700	3,688,600	(15)%
	8,301,300	8,307,000	7,084,900	8,617,400	8,642,400	0%	(4)%	23,693,200	24,922,800	(5)%
South Africa
Goedehoop	1,286,500	1,266,600	1,001,300	896,000	1,151,200	2%	12%	3,554,400	3,391,100	5%
Greenside	1,111,400	990,700	806,300	897,200	1,059,600	12%	5%	2,908,400	2,979,400	(2)%
Zibulo	1,571,800	1,638,600	1,390,000	1,306,400	1,592,500	(4)%	(1)%	4,600,400	4,258,500	8%
Kleinkopje	1,166,800	757,100	966,400	824,900	895,200	54%	30%	2,890,300	2,327,500	24%
Landau	970,300	1,091,900	1,003,200	1,079,200	1,144,600	(11)%	(15)%	3,065,400	3,189,500	(4)%
Mafube	506,000	438,500	379,100	366,500	370,100	15%	37%	1,323,600	1,076,000	23%
New Vaal	4,350,500	4,027,700	3,521,800	2,811,500	3,576,700	8%	22%	11,900,000	11,336,600	5%
New Denmark	777,300	392,600	604,300	643,000	881,600	98%	(12)%	1,774,200	2,195,300	(19)%
Kriel	1,834,000	1,503,300	1,339,800	1,185,900	1,613,000	22%	14%	4,677,100	4,972,300	(6)%
Isibonelo	1,116,100	1,081,800	1,159,600	1,222,400	1,096,100	3%	2%	3,357,500	3,309,500	1%
	14,690,700	13,188,800	12,171,800	11,233,000	13,380,600	11%	10%	40,051,300	39,035,700	3%
Colombia
Carbones del Cerrejón	2,927,800	2,329,500	2,610,000	2,628,100	2,526,800	26%	16%	7,867,300	8,446,200	(7)%
Total Coal production	25,919,800	23,825,300	21,866,700	22,478,500	24,549,800	9%	6%	71,611,800	72,404,700	(1)%

(1) Number of Sights (sales cycles) in each quarter as follows: Q3 2016: 2; Q2 2016: 3; Q1 2016: 2; Q4 2015: 3; Q3 2015: 2; Q2 2015; 2; Q1 2015: 3

(2) Copper and nickel refined through third parties is shown as production of copper matte and nickel matte

(3) Includes third party purchases and Twickenham

(4) 4E: the grade measured as the combined content of the four most valuable precious metals: platinum, palladium, rhodium and gold

(5) Excludes Anglo American Platinum's copper production

(6) ASCu = acid soluble copper

(7) TCu = total copper

(8) Anglo American's share of Collahuasi production is 44%

(9) Anglo American ownership interest of Anglo American Sur is 50.1%. Production is stated at 100% as Anglo American consolidates Anglo American Sur

(10) Difference between total copper production and attributable copper production arises from Anglo American's 44% interest in Collahuasi

(11) Relates to sales of copper not produced by Anglo American operations

(12) Excludes Anglo American Platinum's nickel production

(13) Saleable production

(14) Production includes medium carbon ferro-manganese

(15) Includes both hard coking coal and PCI sales volumes

Note:

Production figures are sometimes more precise than the rounded numbers shown in the commentary of this report. The percentage change will reflect the percentage change using the production figures shown in the Production Summary of this report.

Forward-looking statements:

This contains certain forward looking statements which involve risk and uncertainty because they relate to events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.

For further information, please contact:

Media

Investors

James Wyatt-Tilby

[email protected]

Tel: +44 (0)20 7968 8759

Marcelo Esquivel

[email protected]

Tel: +44 (0)20 7968 8891

Paul Galloway

[email protected]

Tel: +44 (0)20 7968 8718

Trevor Dyer

[email protected]

Tel: +44 (0)20 7968 8992

South Africa

Pranill Ramchander

[email protected]

Tel: +27 (0)11 638 2592

Ann Farndell

[email protected]

Tel: +27 (0)11 638 2786

Sheena Jethwa

[email protected]

Tel: +44 (0)20 7968 8680

Notes to editors:

Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products - from diamonds (through De Beers) to platinum and other precious metals and copper - to our customers around the world.

As a responsible miner, we are the custodians of those precious resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders, but also for the communities and countries in which we operate - creating sustainable value and making a real difference.

www.angloamerican.com

This information is provided by RNS

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END

TSTPGGRPUUPQGRC

RNS metadata

Title: Anglo American Q3 2016 Production Report
Time: 08:00:05
Date: 25 Oct 2016
Category: Trading updates
ID: 3364N