Anglo Boosts Iron Ore Output Goal Again at Giant Brazil Mine

(Bloomberg) --

Anglo American Plc raised its production forecast for its Brazilian iron ore operations for the second time in less than a month.

Anglo said the giant Minas-Rio project will now produce about 23 million tons of iron ore this year, compared with a forecast of 20 million to 22 million tons that the company made just last month.

Minas-Rio is starting to deliver for Anglo after years of problems. The project, which cost $14 billion to buy and build, almost sank the miner after years of delays and cost overruns. It was then shuttered for most of last year after leaks on a pipeline that carried the iron ore.

The project has also allowed Anglo to cash in on a jump in prices for high-quality iron ore, after a dam collapse in Brazil early this year cut millions of tons of production.

Anglo also increased its production expectations for 2020 and 2021 for Minas-Rio, saying output could hit 26 million tons in two years time.

Anglo provided operational updates Tuesday in a slew of presentations. The miner said the ramp up in production at its nickel and coking coal operations will be slower than originally expected.

Nickel production is seen at between 42,000 tons and 44,000 tons by 2021, slightly lower than its previous goal of 45,000 tons. Coking coal will be 23 million tons to 25 million tons in 2021, lower than its previously touted target of 25 million tons to 27 million tons.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net

To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel Hill

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