Anglo American is evaluating further expansion of its Quellaveco copper mine in Peru, with the group saying it is well on course to achieve 1-million tonnes per annum copper production by the early 2030s.
The company said demand for copper remained “robust”.
Quellaveco, which is 60% owned by Anglo, is considered Peru’s fourth-largest producer.
Anglo’s vast copper assets caused Australia’s largest company, BHP, to launch two bids to buy the group earlier this year, with another bid not ruled out before year’s end.
Anglo CEO Duncan Wanblad said the group aimed to add additional value from its world-class copper endowments through a holistic approach to sustainability and innovation.
“Sustainability, innovation and operating responsibly are embedded into our strategy: from day-to-day operational decisions to portfolio choices. We believe this approach is a prerequisite for sustainable value creation and is integral to our DNA as a company,” Wanblad said.
“Our aim is to reliably and responsibly provide metals and minerals that are required to decarbonise our planet and that are also the building blocks of modern life — from housing to food — for ever more people.”
As copper is a key metal to the green energy transition, BHP approached Anglo with two multibillion-rand proposals to buy the Johannesburg and London-listed company. The offers were rebuffed.
Standstill period
The Financial Times a few weeks ago reported that BHP CEO Mike Henry and other to executives were in SA wooing Anglo investors.
BHP’s standstill period for a third bid for Anglo lapses at end-November.
Anglo last week said copper production was on track to meet full-year guidance, decreasing 13% in the third quarter of the 2024 financial year as expected vs the comparative period in 2023, due to the planned closure of the smaller, more costly Los Bronces plant, partially offset by higher grades at El Soldado. Production at Quellaveco is expected to increase in the fourth quarter as grades and recoveries improve.
Patricio Hidalgo, CEO of Anglo American in Chile, said the company continued to focus on delivering a “world-class copper portfolio” as responsibly and as profitably as possible.
“Sustainability considerations are embedded into our strategy and support our permitting track record — including with respect to water, which is the greatest sustainability challenge in our region,” Hidalgo said.
“With this in mind, we are pulling together all our accumulated expertise to deliver innovative water solutions, such as our Integrated Water Security Project at Los Bronces and the rollout of our patented Hydraulic Dewatered Stacking (HDS) technology at El Soldado.”
“Both are critical to our licence to operate, while we expect HDS has the potential to transform the nature of tailings and land rehabilitation in our industry, demonstrating to shareholders, communities, governments and customers what responsible mining really can look like.”
Quellaveco completed its ramp-up in 2023, producing 319,000 tonnes of copper last year, up from 102,300 tonnes the previous year.
Helena Nonka, Anglo American’s strategy & sustainability director, said the group’s approach to sustainability reduced operational risk, delivered direct financial value for the business and supported their ability to access future resource development opportunities.
“With many of the world’s undeveloped copper resources sterilised due to environmental and community constraints, we continue to find innovative ways to unlock those and other opportunities for all stakeholders,” Nonka said.
“While each undeveloped resource has its own physical and social characteristics, we have shown what can be achieved when genuine dialogue, collaboration and trust are combined with the required technical and sustainability competencies built up over time to deliver profitable outcomes and enduring value for — stakeholders.”
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