Author: Paul Ploumis
16 Feb 2015 Last updated at 04:04:38 GMT
SEATTLE (Scrap Monster): The multinational mining firm Anglo American plc predicts the copper output for 2015 by the company to remain more or less stable at 2014 levels. The company’s copper output had totaled 748,000 mt during entire year 2014. The output remained subdued on account of low production volumes from Los Bronces, Chile operation during the first half of the year due to water supply issues. According to Anglo American, the output during 2015 is expected to remain in the range 720,000 to 750,000 mt.
Announcing the results for 2014, Anglo American noted that the copper operations generated an EBIT of $1.193 billion. The EBIT were down 31% over the previous year, mainly on account of sharp decline in ciopper prices during the year. Moreover, the sales volume by the company declined by 2% during 2014.
The operating costs during the year increased significantly due to inflation and higher treatment and refining charges. The mine development at Chile’s Los Bronces also added to the operating costs. However, weak Peso helped the company offset some of these operating losses.
Meanwhile, the company reduced the nickel production forecast for 2015 between 20,000 to 25,000 mt, almost 33-46% decline when compared with the total nickel production of 37,200 mt during 2014. The lower output forecast is primarily on account of the maintenance works at Barro Alto’s two furnaces. However, the rebuilding works at the furnaces is likely to lift the nickel production levels to 40,000 to 45,000 mt in 2016.
The company warned that it could not spot any improvement of market sentiment in the mining industry. Furthermore, the cost cutting measures, job cuts and realignment of asset portfolio are likely to continue in 2015 as well.