Anglo American (LSE:AAL) reported broadly stable third-quarter production compared with the previous year, despite lower copper and premium iron ore output, while continuing its portfolio restructuring and planned merger with Teck.
Copper production declined 5% to 174,900 tonnes, with operations affected by extreme winter weather in Chile. Premium iron ore production fell 4%, while manganese ore output increased 6%, nickel production rose 3% and steelmaking coal production climbed 53%.
Despite the mixed performance across commodities, Anglo American maintained its 2026 production guidance. The company also lowered its unit cost targets for Copper Peru and its De Beers diamond business.
The operational update comes as Anglo American continues to reorganise its portfolio around copper and premium iron ore. The group is progressing plans to exit its steelmaking coal and nickel businesses while pursuing a transaction involving De Beers amid subdued conditions in the diamond market.
Anglo American is also advancing its planned merger with Teck, which is expected to be completed by March 2027. The proposed combination forms part of the group’s strategy to increase its exposure to copper and concentrate its operations on selected metals and minerals.
The company operates copper assets in Chile and Peru, alongside premium iron ore operations at Kumba in South Africa and Minas-Rio in Brazil. Its existing portfolio also includes manganese, diamonds, steelmaking coal and nickel.
Anglo American’s restructuring strategy includes portfolio optimisation and cost management, with the company seeking to improve operating efficiency as it reduces its exposure to businesses outside its principal areas of focus.
The group has also identified copper prices and by-product credits as factors relevant to its financial performance, while energy and freight market volatility remain considerations for operating costs.
For investors, the next developments include progress on the planned Teck merger, completion of the proposed business disposals and the company’s performance against its unchanged 2026 production guidance.
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