* Miner says overall Q2 output falls 18%
* Says ramping up output to hit FY targets set in April
* Says targets dependent on how coronavirus pans out (Adds Chile drought, coal, analyst)By Zandi ShabalalaLONDON, July 16 (Reuters) - Global miner Anglo American is ramping up metals and diamond production to hitfull-year targets it set in spring, it said on Thursday, as itreported a sharp slump in second quarter output caused by thecoronavirus.The firm said the targets were dependent on the course takenby the pandemic, which is spreading fast in South Africa whereit make around half of its profits, while a drought in Chileaffecting its largest copper mine shows little sign of ending.In the three months to June, overall production fell 18%,with diamonds, platinum, palladium, iron ore, coal and manganeseall falling, while copper and nickel rose. Anglo said it was ramping up production and operating atabout 90% total capacity by the end of June from around 60% inApril, and maintained its 2020 outlook for all products apartfrom coal.It had cut capital expenditure and trimmed many of its fullyear output targets in April. Anglo said government lockdowns in Botswana, Namibia andSouth Africa hit second quarter output of diamonds, platinumgroup metals, iron ore and coal.Activity has since picked up in South Africa, where thegovernment exempted mines during the quarter from curbsimplemented to contain an outbreak that crossed the threshold of300,000 cases on Wednesday. In addition to coronavirus-related shutdowns, Anglo AmericanPlatinum was hurt by repairs and ramp-up of a converterplant. Second quarter copper output rose 5% to 167,000 tonnes yearon year, driven by a 38% rise at the Collahuasi mine in Chile.But output at Anglo's largest mine in Chile, Los Bronces,fell 12% and continues to be impacted by severe drought.
A gas explosion at the Grosvenor metallurgical coal mine inAustralia hit coal output, Anglo said. Australia launched aninquiry into the blast, which injured five workers. "With expectations relatively low heading into the quarter,this result will likely be taken relatively positively," saidRBC Capital Markets analyst Tyler Broda.Anglo's shares were down 1% at 1130 GMT, compared to a 0.3%fall of an index of its mining peers (Reporting by Zandi Shabalala; Editing by Edmund Blair and JohnStonestreet)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.