LONDON: Anglo American beat expectations on Thursday with a 5 per cent increase in production in 2017, driven by increases in diamond and iron ore output, while base metal copper stagnated.

Many miners have struggled to maintain output as ore bodies have aged and exploration budgets collapsed as a result of the commodity markets downturn of 2015-16.

Copper is particularly in demand because of its use for both old and new technology, such as electric vehicles.

Anglo’s Platinum and palladium, iron ore and coking coal output fell between 4 and 8 per cent in the fourth quarter and were flat or higher for the full year.

But the ramp-up of its Gahcho Kue mine in Canada increased Anglo’s diamond production by 22 per cent.

Anglo Chief Executive Mark Cutifani said in a statement the rise in overall output “was achieved despite the removal of unprofitable and higher cost platinum and metallurgical coal”.

BMO Capital Markets in a note said the results were solid and it expected the company to continue focusing on incremental improvements to drive productivity.

South Africa, Anglo’s central focus, has had particular issues with efficiency at deep, old mines and platinum prices have suffered from falling demand because of the shift away from diesel cars, which use the metal to reduce emissions.

Anglo mothballed its Bokoni mine, which contributed to a 4 per cent fall in platinum output in the last quarter.

Reuters