Anglo sticks to copper forecast after snow in Chile hits quarter

By Reuters News

LONDON, Oct 20 (Reuters) - Anglo American AAL.L reported a 5% fall in third-quarter copper production on Tuesday after record snowfall in Chile, but maintained its 2026 forecast for the metal and raised its diamond production outlook.

The miner produced 174,900 metric tons in the July-September quarter, compared to 183,500 tons in the same period a year earlier. For the first nine months, copper output was down 1% to 519,000 tons from 526,000 in 2025.

Anglo maintained its 2026 copper production forecast at 700,000 tons to 760,000 tons on higher grades at its Collahuasi and Quellaveco mines.

A sweeping overhaul of the company has so far yielded one major completed transaction, the 2025 demerger of its South African platinum business, while exits from coal and nickel and the planned sale of diamonds unit De Beers remain under way.

The miner's $53 billion all-stock merger with Teck Resources TECKb.TO is awaiting final approval from China.

"Expected completion timing by March 2027 remains unchanged," said Anglo CEO Duncan Wanblad.

SIGNS OF ROUGH DIAMOND TRADING STABILISING

Anglo raised its diamonds estimate to between 25 and 28 million carats from 21 million to 26 million previously, after taking full ownership of Gahcho Kue mine in Canada.

Rough diamond output was 21.7 million carats in the first nine months, compared to 17.9 million carats a year earlier.

Anglo said rough diamond trading conditions showed signs of stabilising as demand improved in the United States and India and supply and demand became more balanced, but competition from lab-grown stones continued to weigh.

Losses and writedowns at De Beers, which Anglo is in the process of selling, have become a growing drag on its earnings and balance sheet during a prolonged diamond market downturn.

"At De Beers, we continue to work towards a transaction in a challenging market," Wanblad said.

A consortium led by former De Beers CEO Gareth Penny and backed by Cartier-owner Richemont CFR.S, alongside others, is the preferred bidder.

Anglo is also negotiating with Botswana, which owns 15% of De Beers and is looking to increase its stake.

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