Anglo American copper output falls 5%, annual guidance unchanged
Key Facts
Anglo American's copper production fell 5% year on year in the third quarter of 2026 to 174,900 tonnes, while the company maintained its annual production forecast. The group announced the results in its production report published on 20 October 2026, as record snowfall affected its operations in Chile, according to Reuters coverage. Copper production in the first nine months of the year totalled 519,000 tonnes, compared with 526,000 tonnes in the corresponding period of 2025. The company's shares closed up 0.44% at 3,900 pence on the day the report was published, according to historical data published by Investing.com. The shares then fell 5.60% to 3,625 pence in the 22 October 2026 session.
The decline in third-quarter copper production was spread across operations in Chile and Peru, with different factors affecting each. In Chile, production fell 6% year on year to 94,200 tonnes, according to Investing.com, amid weather conditions Reuters described as "record snowfall in Chile". In Peru, production fell 3% to 80,700 tonnes because of lower ore grades, according to Investing.com's coverage. On costs, Anglo American lowered its 2026 copper unit cost guidance in Peru to about 50 US cents per pound, compared with previous guidance of about 65 cents per pound. The company attributed the improvement to by-product credits and cost control, alongside lower production volumes at its Peruvian operations.
In high-quality iron ore, Anglo American reported a 4% year-on-year decline in third-quarter production to 13.8 million tonnes, while total production for the first nine months reached 44.4 million tonnes. Production was affected by tie-in work on the new separation unit at Kumba, partially offset by improved plant availability at Minas-Rio, according to the company's report. Kumba recorded a 19% year-on-year decline in production to 7.5 million tonnes in the third quarter. The report attributed this to the shutdown of the dense media separation plant at Sishen for major tie-in work on the ultra-high dense media separation project. By contrast, Kumba's sales reported in the group's report rose 3% to 9.7 million tonnes over the same period. Anglo American said a planned inventory drawdown supported these sales, which rose while the tie-in work affected production.
In diamonds, Anglo American raised its annual production guidance for 2026 to a range of 25 to 28 million carats. The company had previously expected production of between 21 and 26 million carats during the year, according to its report. The revised forecast followed the transfer of full ownership of the Gahcho Kué mine to De Beers, according to Reuters coverage. The mine is in Canada, and the increase in guidance is linked to the completion of the acquisition of full ownership. The group's revised operational forecasts thus included a higher diamond production range, alongside lower copper cost guidance in Peru supported by by-products and cost control.
For 2026, Anglo American maintained its copper production guidance at a range of 700 to 760 thousand tonnes, despite lower production in Chile and Peru during the third quarter. It also held its high-quality iron ore production forecast at between 55 and 59 million tonnes, after tie-in work on the new separation unit affected Kumba's output. On its merger with Teck, the company said it was targeting completion by March 2027. Chinese antitrust approval remains the final outstanding regulatory step, according to the group's statement. This target date for completing the merger falls after the year covered by the current production guidance for copper, iron ore and diamonds.