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|Anglo American Resumes Minas-Rio Operation, Revises Up Outlook|
|= The production guidance for 2019 now stands at 18-20 mil tons =|
Anglo American plc ("Anglo American") announced on 21 December the resumption of operations at its Minas-Rio iron ore operation in Brazil after a nine-month suspension. The restart of the integrated iron ore operation follows a thorough technical inspection of the 529 km pipeline that carries the iron ore in slurry form from the mine to the port, which has been suspended operation since 29 March 2018 after two leaks were found.|
During the time, Anglo American replaced a 4 km stretch of pipeline where the two leaks of non-hazardous material had occurred, as well as a small number of individual sections of pipe where minor anomalies were detected.
Anglo American has also shortened the intervals for future inspections from five years to two years to ensure the long-term integrity of the pipeline, while also fitting a fiber-optic system of acoustic, temperature and vibration sensors along critical sections of the pipeline to monitor its performance.
The company also announced the receipt of regulatory approval relating to the Step 3 license area of the Minas-Rio operation. Access to the Step 3 area provides it greater operational flexibility and access to higher grade iron ore, which helps to increase the production of the operation towards its full design capacity of 26.5 million tons per year.
As a result of this regulatory approval, production guidance for 2019 has been increased to 18-20 mil tons (wet basis), from the previous guidance of 16-19 million tons (wet basis). Unit cost guidance for Minas-Rio is lowered to $28-31 per ton (FOB, wet basis), from the previous guidance of $30-33 per ton.
|last modified : Mon 07 Jan, 2019 [11:28]|