By Christian Moess Laursen

Anglo American said it expects lower production next year amid near-term constraints and volatile market conditions, and that it plans to lower costs by $1 billion.

The multinational diversified miner said Friday its output for 2023 increased by around 3% on year, driven by a ramp-up of operations at its Peruvian copper project Quellaveco and solid iron ore production, which offset lower platinum metals and diamonds production.

However, for the year ahead, the mining giant expects production to decrease by around 4%, including reducing production at its Kumba iron ore operations in South Africa.

In a response to continuing market volatility, especially seen in the platinum metals market, Anglo American expects to reduce costs by $1 billion in 2024.

As a result, the miner expects to deliver lower cost per unit in 2024 and $1.8 billion lower capital expenditure in 2023-26.

"We are focused on what we can control - safety, operational discipline and capital allocation," Chief Executive Duncan Wanblad in a preleased statement ahead of the investor briefing later today.

"Looking ahead, the fundamental supply and demand picture for many metals and minerals is ever more attractive," Wanblad added.

Anglo American's majority-owned platinum-miner Anglo American Platinum said in a separate statement that it expects to deploy a series measures to reduce costs annually by around 5 billion South African rand ($266.5 million) amid a price rout ripping through the world's top platinum-producing country and persistent cost inflation.

Anglo American Platinum said these include embedding efficiencies, stepping up cost-saving initiatives and re-prioritizing its capital allocation.

Write to Christian Moess Laursen at

(END) Dow Jones Newswires

12-08-23 0300ET