By Jaime Llinares Taboada


Anglo American PLC said Thursday that it has raised its cost guidance for 2022 by 9%, reflecting stronger currencies in commodity-producing countries, inflationary pressures and lower expected production volumes.

The FTSE 100 diversified mining group is facing a hit from higher diesel prices, and has raised cost guidance for all major commodity operations except diamonds.

Cost guidance has increased 5.0% for copper, 10% for nickel, 7.8% for platinum group metals, 14% for iron ore and 24% for metallurgical coal.

In addition, the company downgraded 2022 production expectations for platinum group metals to 3.9 million-4.3 million ounces from 4.1 million-4.5 million, iron ore to 60 million-64 million metric tons from 63 million-67 million, and metallurgical coal to 17 million-19 million tons from 20 million-22 million.

Production was hurt by heavy rainfall in South Africa and Brazil, where platinum group metals and iron ore mines are located. In addition, the Moranbah coal operation in Australia was suspended following a fatal underground incident.

In the first quarter, Anglo American said its platinum group metals production fell 6% to 956,000 ounces compared with a year earlier. Iron ore output dropped 19% to 13.2 million tons, and copper declined 13% to 140,000 tons.

Diamond production jumped 25% to 8.9 million carats, but nickel fell 8% to 9,300 tons, metallurgical coal plunged 32% to 2.2 million tons, and manganese ore fell 11% to 804,000 tons in the first three months of the year.

"Production in the normally slower first quarter was 10% lower than the same period in 2021, impacted by peak Covid-related absenteeism, high rainfall affecting operations in South Africa and Brazil, and safety and other operational challenges at metallurgical coal and iron ore operations," Chief Executive Mark Cutifani said.


Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT


(END) Dow Jones Newswires

04-21-22 0311ET