Anglo American one of FTSE’s biggest fallers as iron production drops
This morning, Anglo American saw the second biggest fall on the FTSE100 this morning as it announced iron ore production was down 24 per cent in the third quarter, year-on-year. The company withdrew from the Pebble copper project and sold its Amapa iron ore company in Brazil to miner Zamin.
Kumba iron ore production fell to 9.5m tonnes after weaker production at Sishen mine, although this was in part offset by a stronger performance at Kolomela.
Copper production was up 32 per cent in the period – to 207,300 tonnes and nickel increased seven per cent to 9,700 tonnes. Alastair McCraig, market analyst at IG says, "fortuitously copper prices have been given support today from the encouraging economic data out of China, although in 2014 supply could increase."
Diamond production increased by 21 per cent to 7.7m carats, which was primarily down to the recovery of the Jwaneng mine after the slope failure in June 2012.
Meanwhile, coal saw a nine per cent increase to a record 4.9m tonnes, more than offsetting the planned closure at the Aquila mine. Thermal coal was flat at 4.5m tonnes.
Anglo American shares are down 2.03 per cent, at 1,521.50.