* Increases volumes in copper, iron ore; platinum flat
* Impact of S.African stoppages to be seen in Q4
* Strikes revive criticism of management
By Clara Ferreira-Marques
LONDON, Oct 25 (Reuters) – Miner Anglo American
posted increased production in five of its seven key commodities
including copper, as it braces for the full impact of crippling
South African strikes that have ratcheted up pressure on a
management team already under fire.
Anglo’s labour woes – compounded by nagging concerns over
its Minas Rio iron ore project in Brazil and operational trouble
in Chilean copper – have revived long-standing worries among
some investors over the group’s exposure to South Africa, and
over a share price that has lagged its peers.
Third-quarter production, outlined on Thursday, was still
cushioned from the effect of platinum and iron ore stoppages.
But Anglo did little to ease worries over its big-ticket
projects, specifically Minas Rio, where a planned spend of at
least $5.8 billion is still under review.
Analysts estimate fresh delays could take the price tag to
some $8 billion.
Another new mine, the $1.9 billion Barro Alto nickel mine in
Brazil which began producing last year, has been hit by
operational setbacks and is still below full capacity. Analysts
at Morgan Stanley said the repairs could take up to a year.
Continued…
