Mining giant Anglo American reported a 4% y/y decline in premium iron ore production in the third quarter of 2026 – to 13.8 million tonnes. Compared to the previous quarter, the figure decreased by 10%.
The main reason for the decline was a planned production cut at the South African Kumba operation, which was only partially offset by higher output at the Brazilian Minas-Rio complex.
Key drivers and performance by business unit:
- Decline at Kumba. Production fell by 19% y/y – to 7.5 million tonnes. This was due to planned shutdowns at the Sishen processing plant to tie in a new technological project (UHDMS), as well as a shortage of feedstock at the Kolomela mine. Nevertheless, Kumba’s sales increased by 9% y/y (to 15.75 million tonnes) thanks to active drawdown of accumulated stockpiles.
- Growth at Minas-Rio. Iron ore concentrate production at the Brazilian asset increased by 24% y/y – to 6.3 million tonnes. The improvement was supported by high equipment availability following last year’s pipeline inspections. The unit’s export sales also grew by 21% – to 6.05 million tonnes.
Anglo American’s average realized price for premium ore in the third quarter fell by 11% y/y to $82/t (FOB). In particular, Kumba’s products were sold at $86/t, and Minas-Rio’s at $77/t. Minas-Rio prices were positively affected by the high iron content (~67%), but this effect was partially offset by the rerouting of logistics flows away from the conflict zone in the Middle East.
The company confirmed its 2026 production guidance in the range of 55–59 million tonnes (31–33 million tonnes at Kumba and 24–26 million tonnes at Minas-Rio). Meeting the full-year sales targets will depend on the stable operation of third-party rail and port infrastructure.
As GMK Center reported earlier, in the first half of the year Anglo American increased iron ore sales by 1.9% y/y – to 31.6 million tonnes. Sales in the second quarter rose by 1.8% y/y to 16.7 million tonnes. Over six months, total iron ore production reached 30.6 million tonnes, which is 2.4% lower than a year earlier.
Source:GMK Center
