Anglo American (AAUK-Q, AAL-L) says it can double copper production to 1.2 million tonnes by 2017 through the development of its project pipeline.
Last year the global miner produced 669,800 tonnes of copper and expects output to be similar this year. By 2013Anglo plans to boost copper production by a third.
In Chile, Anglo American holds a 44% joint-venture interest in the Collahuasi copper mine and has a 100% interest in Los Bronces, El Soldado, Mantos Blancos and Mantoverde copper mines, as well as the Chagres smelter.
According to Anglo American’s website, following an expansion project at Collahuasi, total production will increase to about 510,000 tonnes copper per year plus molybdenum and silver byproducts. The company notes that the operation is in “the bottom end of the industry cost curve” and has a life of mine of 30 years.
Its Los Bronces project has a life-of-mine of more than 30years and will move into full production in the fourth quarter of 2012.
In Peru Anglo American holds controlling interests in the Quellaveco and Michiquillay projects. Early stage exploration work is underway at Michiquillay and the company believes the project has the potential to produce up to 155,000 tonnes of copper per year plus molybdenum, gold and silver byproducts.
Quellaveco is a greenfield project in southern Peru at the feasibility stage with potential start up in 2014 and full production in 2015. Production is forecast at 225,000tonnes copper per year, with molybdenum and silver byproducts. At full capacity, Anglo American believes Quellaveco will be “in the lower half of the cost curve.”
Like many other mining companies, Anglo American suffered from the financial crisis last year. The global miner recently reported a 53% drop in full-year profit to US$2.43 billion, down from US$5.22 billion in 2008.
Underlying earnings from continuing operations was US$2.14a share. Net debt as of Dec. 31 stood at US$11 billion. Anglo American failed to declare a dividend for the second consecutive year.
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