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Anglo starts Quellaveco, lowers guidance

Anglo American has begun commercial operations at its Quellaveco copper project in Peru, which is expected to produce an average 300,000 tonnes per year of CuEq over its first 10 years.
Anglo starts Quellaveco, lowers guidance Anglo starts Quellaveco, lowers guidance Anglo starts Quellaveco, lowers guidance Anglo starts Quellaveco, lowers guidance Anglo starts Quellaveco, lowers guidance

Guidance for 2023 and 2024 is unchanged at 320,000-370,000t.

The company has lowered production guidance for Quellaveco in 2022 to 80,000-100,000t, from 100,000-150,000t, at a C1 unit cost of about 150c/lb, previously 135c/lb.

Anglo said the decision to lower production guidance was made following the commissioning and testing period, and receipt of final regulatory clearance.

Guidance for 2023 and 2024 is unchanged at 320,000-370,000t.

Anglo also tightened its production guidance for Chile to 560,000-580,000t of copper, from 560,000-600,000t, due to lower throughput at Los Bronces caused by a combination of water restrictions and a change in ore characteristics.

C1 unit cost guidance has been revised to 160c/lb, from 150c/lb, which reflects the impact of lower volumes and inflation.

CEO of Anglo's base metals business, Ruben Fernandes, said Quellaveco is the company's and South America's "most technologically advanced mines", with it incorporating autonomous drilling and haulage fleets - which is a first in Peru - and a remote operations centre.

The operation draws its electricity entirely from renewables, he said.

The mine is expected to lift Anglo's total global output by 10% in CuEq to take total copper production close to 1 million t, Anglo CEO Duncan Wanblad said.

Anglo's share price dropped 6% day on day on 23 September to close the session at £26.70 (US$27.76).

The Quellaveco announcement was made 26 September.