Anglo American (LSE:AAL) said second-quarter copper production held flat at 173,200 tonnes, with higher output at Los Bronces offset by lower grades at Collahuasi and Quellaveco.
The London and Johannesburg-listed miner cut its 2026 unit cost guidance for Copper Chile to around 210 US cents per pound, down from around 230 cents, and for Copper Peru to around 65 cents, down from around 100 cents.
Overall copper unit cost guidance now stands at around 145 cents per pound, down from around 172 cents, helped by strong by-product credits and cost control that offset inflationary pressure on fuel and consumables linked to Middle East conflict volatility.
Chief executive Duncan Wanblad said the restart of the second plant at Los Bronces "continues to provide incremental profitable production", while Collahuasi and Quellaveco both increased output versus the first quarter.
Premium iron ore production fell 3% to 15.4 million tonnes on planned maintenance at Kumba and lower grades at Minas-Rio.
The company is progressing its portfolio overhaul, having agreed in May to sell its Australian steelmaking coal business to Dhilmar for up to $3.875 billion, with completion expected by the first quarter of 2027.
It continues to run a sale process for De Beers and await European Commission antitrust clearance for its agreed nickel disposal.
Anglo American's merger with Teck remains on track for completion between September 2026 and March 2027, with Chinese antitrust approval now the last outstanding regulatory hurdle.
News Intelligence what this means for the company
Anglo American held copper output flat at 173,200 tonnes in Q2 while cutting its 2026 unit cost guidance across all three copper regions—Copper Chile down to 210 cents/lb from 230, Copper Peru to 65 cents from 100, and overall copper to 145 cents from 172. The cuts reflect strong by-product credits and cost control offsetting fuel and consumable inflation tied to Middle East volatility. The company is on track with its portfolio overhaul (coal sale to Dhilmar for up to $3.875bn, De Beers sale process ongoing, nickel disposal awaiting EU clearance) and its merger with Teck, now pending only Chinese antitrust approval.
Flat copper production despite Los Bronces restart suggests grade headwinds at other assets are offsetting growth, but the material cut to unit cost guidance—down 16% on overall copper to 145 cents/lb—improves cash generation per tonne and supports the company's ability to fund the Teck merger and special dividend pledge while completing disposals. The timing of Chinese antitrust clearance remains the key execution risk to the merger close.
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