Global mining giant Anglo American plans to exit its thermal coal business by mid-2023 and increase the production of copper and metallurgical coal by 20-25pc by 2025.
In its 2020 annual report, the company noted that it expects copper production to increase by 20-25pc in the coming years, owing to the first production from its Quellaveco mine in 2022. The mine lies in the Moquegua region of Peru and is expected to produce 300,000mt of copper annually in the first 10 years of production. Anglo American owns 60pc of the mine while Mitsubishi Materials has a 40pc stake.
The miner is also expanding production at its Collahuasi mine in Pica, Chile by 20pc and considering a ramp-up at the Los Bronces mine in the Andes region of the South American country.
The company plans to dispose of its South African and Colombian thermal coal mines in favor of metallurgical coal as steel demand rises. In the long term, the company plans to produce 30mn mt of met coal and 75mn mt of iron ore, rising from 17mn mt and 61mnt in 2020, respectively. Anglo American expects higher mining EBITDA margins of 45-50pc, betting strong copper and iron ore prices in the coming years.