INATIONAL mining firm Anglo American has warned that due to the weakened commodities market it is likely to incur a number of one-off charges in the 2014 financial year.
The company’s share price increased by 2.3 per cent yesterday, after it reported increased production of iron ore, platinum and coal, although copper, nickel and diamonds all fell. Kumba iron ore production went up by 10 per cent, which the firm attributed to a production recovery plan.
Copper declined by 18 per cent, which the company stated was due to expected grade declines at its Los Bronces and Collahuasi operations, and nickel fell by 34 per cent as a result of a furnace rebuild.
Anglo American stated: “Given the sharply lower commodity price environment, particularly for the bulk commodities, Anglo American expects to record certain non-cash impairment charges as special items for the 2014 financial year.”