Anglo American demonstrated high operational results in copper and iron ore mining in the second quarter, which was reflected in a 5.2% rise in its shares on Thursday following the publication of the second-quarter report.
Anglo American demonstrated high operational results in copper and iron ore mining in the second quarter, which was reflected in a 5.2% rise in its shares on Thursday following the publication of the second-quarter report.
CEO Duncan Van Blader noted that in the copper segment, the company's Collahuasi and Quellaveco operations increased production volumes, while the restart of the second plant in Los Bronces continues to provide additional profitable output. Regarding premium iron ore, Kumba and Minas-Rio maintained stable operational characteristics.
The company faced some inflationary trends caused by rising fuel prices and other mining consumables, linked to the ongoing conflict in the Middle East and global market volatility. Despite this, the company's supply chain is managing raw material costs, and strong revenue from copper byproducts allowed it to lower the forecast for unit costs for Copper Chile to 210 cents per pound sterling (down from approximately 230 cents per pound sterling previously) and for Copper Peru to 65 cents per pound sterling (down from previously around 100 cents per pound sterling).
The group's portfolio optimization process is gaining momentum. In May, an agreement was reached to sell the coking coal business in Australia to Dhilmar for up to US$3.88 billion in cash. The sale of De Beers was also progressing, and optimization opportunities were used to minimize the impact of the complex diamond market.
Work continued on obtaining antitrust approval from the European Commission for the nickel business sale. Furthermore, the merger deal between Anglo American and Teck, aimed at creating a global leader in metals and minerals with a focus on copper, remains on schedule, with an expected completion date between September 2026 and March 2027.
Van Blader emphasized that the company is nearing the completion of the deal, with the final regulatory hurdle being antitrust approval from China. Integration planning is advanced and focused on ensuring the company is ready to realize the identified tangible value and synergies from Anglo Teck after the deal closes.
Copper production volume remained unchanged at 173,200 tonnes for the reporting period. This was mainly due to increased throughput at Los Bronces, which was offset by processing low-grade ore from the Collahuasi stockpile and expected lower grades at Quellaveco.
Premium iron ore production decreased by 3%, totaling 15.4 million tonnes. This was attributed to planned maintenance at Kumba, as well as the influence of lower ore grades and reduced mass recovery at Minas-Rio.
Manganese ore production increased by 22%, reaching 908,300 tonnes. This growth reflects higher operating levels following the impact of a tropical cyclone in Australia, which affected the comparative period.
Rough diamond production increased by 88%, reaching 7.8 million carats. The main driver was the extended maintenance period at Orapa, which impacted the previous quarter, as well as planned extraction of higher-quality ore at Jwaneng and Gahcho Kue.
Overall, the forecast for unit copper costs was revised downwards to 145 cents per pound sterling (compared to the previous 172 cents per pound sterling). Premium iron ore production of 15.4 million tonnes was 3% below the same period, due to reduced production at both Kumba and Minas-Rio.
Production at Kumba decreased by 4%, amounting to 8.8 million tonnes. This was due to a 16% reduction in production at Kolomela to 2.4 million tonnes following a planned plant shutdown coinciding with scheduled railway track repairs. However, this was partially offset by a 1% increase in production at Sishen to 6.5 million tonnes due to improved feedstock supply and increased plant availability, despite challenging conditions with some of the heaviest rainfall in many decades in the second quarter.
Total sales volume decreased by 4% to 9.4 million tonnes due to a 10-day third-party logistics shutdown in May. The iron ore production forecast for 2026 remained unchanged.
Rough diamond production rose by 88% to 7.8 million carats, linked to the extended maintenance period at Orapa in Botswana during the comparative period, as well as planned extraction of higher-quality ore at Jwaneng in Botswana and Gahcho Kue in Canada. Planned plant maintenance at Orapa and Jwaneng in the second half of the year is expected to significantly reduce production levels compared to current rates.
In South Africa, production at Venetia increased to 0.7 million carats, largely due to the processing of large volumes of underground ore. Venetia production will be suspended in the second half of the year.
BHP Group reported achieving record levels in copper and iron ore production for the fiscal year ending June 30, 2026. The company managed to strengthen its growth plans and maintain strict cost control.
In an operational review published on Thursday, the global mining and resources group noted that strong results were achieved against the backdrop of rising prices for copper and iron ore. The price of copper increased by approximately 35 percent compared to the previous year.
Total copper production decreased by 3%, amounting to 1,953 thousand tonnes. It is projected that copper production in the 2027 fiscal year will be in the range of 1,650 to 1,800 thousand tonnes, mainly due to the expected decline in ore quality at the Escondida mine.
The company demonstrated effective cost control, and it is expected that all assets will meet target unit cost metrics despite challenges posed by inflation, rising diesel fuel prices, and global supply chain issues. BHP CEO, Brandon Craig, stated in a statement: 'We enter the new year with momentum and significant opportunities to accelerate improvements in safety, productivity, and reliability through our operating system and technology implementation. The broader economic picture remains resilient amid recent commodity market volatility.'
During the reporting period, applications for the restart of the Cerro Colorado mine in Chile advanced, and development trajectories were defined for Copper South Australia, Escondida, and Spence. Furthermore, future copper options in the US expanded due to progress on the Resolution project, and investments in Faraday increased.
In Canada, the Jansen project was set to begin producing potash fertilizers next year, which will add a new product and further diversify the portfolio. Craig added: 'We continue to see strength in the US and China, even as the global economy adapts to changing trade dynamics. We remain confident in the demand for our core commodities, which is supported by long-term trends shaping the world, including industrialization, urbanization, digitalization, energy transition, population growth, and food security.'
Copper production throughout the year was driven by high performance at Escondida. At the Antamina mine, copper production reached an annual record of 152 thousand tonnes thanks to improved feed grade and enhanced operational characteristics. Zinc production fell to 96 thousand tonnes due to lower raw material quality. For 2027, copper production is forecast to be in the range of 120 to 140 thousand tonnes, and zinc—from 35 to 55 thousand tonnes, linked to planned reductions in raw material quality.
At Escondida, production decreased by 3% to 1,261 thousand tonnes due to a planned reduction in concentrate grade to 0.90% (vs. 1.02% in FY25). However, this decrease was partially offset by continuous operational improvements and productivity gains, including record material mined, record concentrator throughput, and increased recovery, resulting from operational enhancements. The 2027 production forecast remained unchanged—between 1,000 and 1,100 thousand tonnes.
Regarding iron ore, WAIO achieved a record extraction volume, BMA delivered the largest volume extracted in five years, and NSWEC exceeded the upper limit of its production plan.
Unit costs for the 2026 fiscal year are expected to be at the lower end of the guidance range for all copper assets, within the range for WAIO, and closer to the upper end for BMA, demonstrating 'cost management, resilience in a complex macroeconomic environment, and benefits from byproduct contributions.' The 2027 fiscal year production forecast remains 'strong, underpinned by the world's largest copper portfolio and continued growth in steelmaking inputs,' according to Craig.
In June, Vicuña received approval to include the Josemaria and Filo del Sol deposits under Argentina's Investment Regime for Large Investments (RIGI) as part of designated Long-Term Strategic Export Projects (PEELP). Vicuña became the first mining project to receive RIGI PEELP status, guaranteeing the stability of the fiscal base upon which Vicuña will operate for 40 years.
BHP also advanced its copper growth options in Chile by submitting an Environmental Impact Assessment (EIA) for the potential resumption of Cerro Colorado operations. In July, BHP signed definitive agreements for the previously announced deal whereby Faraday Copper Corp (Faraday) will acquire the aging BHP San Manuel asset in Arizona, USA, in exchange for a 30% equity stake in Faraday on a fully diluted basis. Additionally, Spence signed a Memorandum of Understanding (MOU) with Sierra Gorda SCM to explore commercial cooperation opportunities aimed at enhancing the efficiency and long-term competitiveness of these two neighboring operations.
