JOHANNESBURG - Anglo American plc, the global diversified mining company, has lowered its expectation for South Africa’s iron ore production and export thermal coal due to the 21-day national lockdown.
The group said on Friday that Kumba Iron Ore, who previously announced 2020 production guidance of between 41.5million tonnes and 42.5million would likely be 3million tonnes lower after the workforce was scaled down.
Kumba chief executive, Themba Mkhwanazi, said the iron ore producer had halved its workforce in line with lockdown regulations aimed at arresting the spread of the coronavirus that has infected more than 1000 South Africans.
“Based on the 21-day lockdown period and allowing for a safe ramp-up of operations, thereafter, we expect a 2020 production volume impact of between 2million and 3million tonnes based on the 50percent reduction in the workforce,” said the group.
Mkhwanazi said the iron ore producer expected the rail and port logistics infrastructure to support the export of iron to continue to service the operations.
He said that Kumba would also continue to provide a number of essential services, including community water supply.
“We are wholly committed to supporting the country’s effort to combat Covid-19, including continuity of such services, and will continue to work with the government and across the industry to provide all possible support,” Mkhwanazi said.
Anglo said the production in its export thermal coal would be impacted by between 1.5million and 2million tonnes.
In terms of platinum, the group said that its Anglo American Platinum’s open-pit Mogalakwena mine and the mechanised Mototolo mine would continue mining on a reduced basis.
It also said critical care and maintenance work would continue at all operations including the ongoing repair of the Anglo Converter Plant (ACP) Phase B unit, to ensure the integrity of the assets, and prepare for a safe operational ramp-up.
“All required parts and equipment for the Phase B repair are on site and the estimated time for repair work remains 80 days, ending around 25 May 2020,” said the group.\