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Anglo American starts ops at Peru mine, lowers Chile output guidance

By Frank Prenesti

Date: Monday 26 Sep 2022

Anglo American starts ops at Peru mine, lowers Chile output guidance

(Sharecast News) - Mining giant Anglo American said it had started commercial copper operations at its Peruvian Quellaveco project and also lowered Chilean production guidance.
The mine is expected to produce 300,000 tonnes per year of copper equivalent volume on average over its first 10 years, Anglo said on Monday.

"Quellaveco alone is expected to lift our total global output by 10% in copper equivalent terms and take our total copper production close to 1 million tonnes per year," said chief executive Duncan Wanblad.

"At a highly competitive operating cost, Quellaveco exemplifies the asset and return profile that is central to our portfolio quality and our ability to provide customers with a reliable and sustainable supply of future-enabling metals."

Anglo American said it expected Quellaveco will ramp up fully over the next nine-to-12 months. Production guidance for 2022 has been lowered to 80,000-100,000 tonnes from 100,000-150,000) at a C1 unit cost of c.150c/lb, previously c.135c/lb. Production guidance for Quellaveco in 2023 and 2024 is unchanged at 320,000-370,000 tonnes of copper.

The company also lowered production guidance for Chile to 560,000-580,000 tonnes from 560,000-600,000 tonnes due to lower throughput at Los Bronces caused by a combination of water restrictions and a change in ore characteristics. 2022 C1 unit cost guidance is revised to c.160c/lb (previously c.150c/lb), reflecting the impact of lower volumes and inflation.

Reporting by Frank Prenesti at Sharecast.com


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