LONDON (Reuters) - Anglo American () on Thursday said the ramp-up of iron ore at Minas Rio in Brazil and higher volumes of coking coal had offset reduced diamond production, raising second-quarter output by 2% and keeping the company on track to meet its 2019 targets.
Prices of iron ore, used with coking coal to make steel, have outperformed other base metals, reaching five-year highs, after a Vale () dam disaster in Brazil led to production shut-ins.
CEO Mark Cutifani said Anglo American’s production had been boosted following the ramp-up of Minas Rio and a strong performance from coking coal after plant upgrade work in the first quarter.
“We remain broadly on track overall to deliver this full year’s production targets,” he said in a statement.
De Beers’ diamond production fell by 14% year on year as work goes on at Venetia in South Africa to move to underground mining from open pit and against a backdrop of weaker demand.
Citing “prevailing market conditions,” Cutifani said De Beers will continue to produce in response to demand for the year.
Copper production increased by 1% and platinum rose 3% year on year.
Minas Rio’s iron ore production climbed to 5.9 million tonnes. Anglo American restarted operations there in December after receiving regulatory approval to step up production following a prolonged outage because of a leak.
Metallurgical, or coking, coal production increased by 11% following site improvements, while thermal coal, used for power, fell by 8% because of a lack of water.