Wood Mackenzie: delay in production ramp-up at Minas Rio, a missed opportunity for Anglo American
Published by Claire Cuddihy,
Assistant Editor
Global Mining Review,
Alex Griffiths, Senior Research Analyst at Wood Mackenzie, has commented on Anglo American’s announcement yesterday of a delay in ramping up production at Minas Rio (Brazil) until 4Q18. He commented: “A mine that was due to produce 16 million t of iron ore this year will now produce just 3 million t.”
“The halt in production comes at a time when several iron ore producers have issued downward revisions to production guidance, tightening the market.”
“The iron ore that Minas Rio was producing – pellet feed – is a type that is currently in demand, with record price premiums achieved late last year.”
Griffiths added: “Minas Rio will now miss the opportunity to sell its product during the tail-end of these highs. And with the market tightening, we could see premia for quality ores stay higher for longer.”
“Whilst Minas Rio is not producing, the company is not able to fully demonstrate its ongoing commitments to the mining tenements. Therefore, this could potentially delay Minas Rio's ramp-up to its ultimate capacity of 26.5 million tpy.”
Read the article online at: https://www.globalminingreview.com/mining/25042018/wood-mackenzie-delay-in-production-ramp-up-at-minas-rio-a-missed-opportunity-for-anglo-american/
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