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Anglo Oct-Dec export thermal coal output falls 21% on-year to 7.7 mil mt

Increase font size  Decrease font size Date:2016-02-01   Views:408
Anglo American produced 7.7 million mt of export thermal coal over the October-December quarter, falling 21% on the year, due to strikes in South Africa and weather-related issues at Cerrejon in Colombia.

This brought its export thermal coal production for the whole of 2015 to 33.8 million mt, dropping 2% on the year.

The miner's South African operations produced 3.9 million mt of export thermal coal during the December quarter, decreasing 19% on the year, with the volume for 2015 at 17.4 million mt, down 4% from 2014.

Anglo said that the South African export coal operations had been affected during Q4 by strikes over wage negotiations impacting 6 million mt of output, as well as the planned closure of a section at the Goedehoop mine and transitioning to new reserves at Mafube.

Colombian export thermal coal output for the October-December also slid 12% on the year to 2.6 million mt, as a suspension of operations caused by high dust levels caused by dry weather impacted about 1 million mt of production.

For the whole of 2015, the Colombian operation produced 11.1 million mt of export thermal coal, dropping 1% on the year.

Lower production from the Drayton mine as it neared the end of its mine life resulted in Australian and Canadian export thermal coal production for the quarter falling 38% year-on-year to 1.15 million mt.

Australian and Canadian export thermal coal output for 2015 totaled 5.3 million mt, up 2% from the previous year.

In the domestic thermal coal markets, Anglo's South African operations produced 5.5 million mt of material during the quarter for state utility Eskom, down 26% year-on-year. Anglo attributed the fall to reduced Eskom demand and safety stoppages at the New Denmark mine in November.

However, quarterly domestic production for non-Eskom customers rose 3% on the year to 1.8 million mt.

For the 2015 calendar year, domestic thermal coal production for Eskom fell 16% to 26 million mt, while output for other domestic customers rose 4% from 2014 to 6.8 million mt.

In Australia, 2 million mt of domestic thermal coal was mined during the October-December quarter, steady on the year. This brought the annual volume to 7 million mt, edging 1% lower compared to 2014.

OCT-DEC EXPORT THERMAL COAL SALES FALL 11% ON-YEAR

Anglo sold 9.1 million mt of export thermal coal during the December-ending quarter, dropping 11% on the year.

For the 2015 calendar year, the miner sold 37 million mt of export thermal coal, 6% higher than the volume sold in 2014.

Anglo's South African export thermal coal sales for the quarter edged up 1% on-year to 5.2 million mt. Annual South African export coal sales for 2015 were 13% higher on the year at 19.9 million mt, although the average selling price fell 21% on the year to $55/mt FOB.

Colombian export thermal coal sales for the October-December period totaled 2.6 million mt, down 6% on the year. The annual volume of Colombian export material fell 1% on the year to 11.2 million mt, with the coal sold at an average price of $55/mt FOB, down 17% from 2014.

The miner sold 1.3 million mt of Australian export thermal coal during the three-month period, a year-on-year decrease of 43% on the year. Australian export thermal coal sales for 2015 edge 1% lower on the year to 5.9 million mt, with the average FOB selling price down 24% to $55/mt.

Q4 MET COAL PRODUCTION CLIMBS 11% ON-YEAR

Anglo's export metallurgical coal production for the October-December quarter rose 11% year-on-year to 5.5 million mt, which Anglo attributed to strong operational performances at Grasstree and Moranbah.

Output for the 2015 calendar year edged up 1% on the year to 21.2 million.

Anglo's quarterly export met coal sales from Australia and Canada rose 7% on the year to 5.4 million mt.

For the 12-month period, 21.1 million mt of export met coal was sold, a 3% increase on the year. The material was sold at a weighted average FOB price of $90/mt, down from $111/mt FOB in 2014.
 
 
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