Anglo cuts coal output forecast after fire at Australian mine
Adds share price in paragraph 4, analyst note in paragraphs 10,11
LONDON July 18 (Reuters) -Anglo American AAL.L said its copper output was almost flat in the first half, while it curbed this year's output forecast for coking coal, which is likely to weigh on earnings just months after it rebuffed a takeover bid from rival BHP Group BHP.AX.
Copper production rose 2% to 393,800 metric tons in the six months through June and is on track to meet full-year guidance, Anglo said in a statement.
Copper demand is expected to rise sharply in coming years for use in applications ranging from solar panels and electric cars to data centres for artificial intelligence.
Anglo's share price was up 1.4% by 0709 GMT.
Anglo cut its output guidance for steelmaking coal to between 14 million tons to 15.5 million tons from 15 to 17 million tons previously, as it battles an underground fire at its Grosvenor coal mine in Australia that started on June 29.
Anglo has put its five operating coal mines, development projects and joint ventures in Australia up for sale, as part of a wider plan to divest less profitable assets and focus on expanding copper output after BHP's failed attempt to take over the company. But analysts say the timing and value of a planned sale of coal assets are now uncertain.
"The mine has been stabilised and we are re-establishing comprehensive underground gas monitoring, prior to being able to assess the steps towards a safe re-entry into the mine," Anglo said in a statement on Thursday.
Assessment of the damage and re-opening is likely to take several months, the company said.
Iron ore production was also flat at around 31 million tons in the first half, while platinum group metals (PGM) output fell 5% and rough diamond production dropped 19%.
"An expected recovery in PGM and diamond prices could help sentiment while a renewed approach from BHP cannot be ruled out," analyst Marina Calero at RBC Capital Markets said.
"However, we view the outlook for Anglo as more balanced in the near term as the sale of the steelmaking coal assets gets more complicated at a time when we expect iron ore prices to roll in H2 24," she added.
Reporting by Clara Denina and Felix Njini; editing by Jason Neely and Sharon Singleton
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