With iron ore prices down by around 40 per cent through 2014, news comes that Anglo American (AAL) has delivered its first iron ore shipment from its huge Minas-Rio mining development in Brazil. It's obviously a relief for investors as Minas-Rio has been plagued by project delays and cost over-runs. But investor relief will be tempered in the knowledge that prices for the key steel making input continue to loll around a five-year low. The good news is that production from Minas-Rio will sit at the lower-end of the global cost curve.
In addition to the news on Minas-Rio, Anglo also revealed that it was lifting production guidance across most of its key divisions, with strong performances expected from its coking coal and nickel businesses, while output from Kumba iron ore is surging ahead - up 37 per cent year-on-year. Production from the De Beers diamond subsidiary is up by 6 per cent through the year, largely due to a strong performance at Jwaneng.
