JOHANNESBURG (miningweekly.com) – The capital intensity of mining has risen well ahead of inflation and mining project development timelines are continuing to extend, Anglo American CEO Duncan Wanblad pointed out on July 30 when he reported $2.9-billion half-year copper earnings at a 60% margin.
Accentuated by Wanblad is the ability of Anglo to provide capital efficient growth in a tightening copper market. (Also watch attached Creamer Media video.)
“We’re of the view that the formation of Anglo Teck can only be positive for the increasing of global copper supply,” said Wanblad of the merged entity that he will lead this year or early next year. (Also watch attached Creamer Media video.)
Anglo’s copper business produced 344 000 t of production in the six months to June 30 and is on track to meet full-year guidance of 700 000 t to 760 000 t.
Bringing new copper online is becoming ever more expensive. The rate of inflation for capital intensity is running at almost double the increase in consumer price index (CPI) terms, Wanblad explained during the presentation of half-year results covered by Mining Weekly.
