Anglo American cranks up coal output MATHEW MURPHY August 14, 2010
THE rapid industrialisation of China and India and their demand for steel has boosted Anglo American to a record half-year production of its Australian metallurgical coal.
Anglo is supplying more of the steel-making ingredient than ever before. The company posted a 25 per cent increase in metallurgical coal output, from 5.7 million tonnes in the six months to June 30, 2009, to 7.1 million tonnes a year later.
It helped Anglo reach record production across its metallurgical and thermal coal divisions of 14.4 million tonnes to June 30, up from 12.6 million tonnes.
Seamus French, Anglo's chief of metallurgical coal, said that while the result was pleasing he expected an even stronger second half.
"These results deliver on our strategic objectives in Australia of doubling the size of the metallurgical coal business in the next 10 years by developing high quality and high margin long life assets," he said.
"Our strategy is paying off, but we are aiming for more I expect production volumes to increase in the second half as our asset optimisation programs ramp up and we take advantage of continuing firm demand from China and India.''
Mr French said Anglo was on track to deliver new projects at Grosvenor and Moranbah South in the northern Bowen Basin in Queensland and Drayton South and Dartbrook in NSW in a bid to keep pace with demand.
"We are making progress with the first stage of our 8.6 million tonnes per annum Grosvenor project and expect to submit it for board approval in late 2011,'' he said.
"Grosvenor will be delivered in two stages and increase our metallurgical coal production in Australia by more than 60 per cent on 2009 levels."
