April 23, 2020 / 6:54 AM / a month ago

UPDATE 1-Anglo American says cuts capex on coronavirus as it posts lower Q1 production

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LONDON, April 23 (Reuters) - Global miner Anglo American said on Thursday slashed its capital expenditure guidance for the year by about $1 billion and warned of delays some projects due to coronavirus.

The London-listed miner said overall production in its first quarter fell by 4% mainly due to lockdown measures in South Africa which hurt platinum, iron ore and diamond output.

The miner said it had identified costs savings of about half a billion dollars in addition to benefitting from weaker producer currencies and low oil prices.

Capital expenditure will be reduced by about $1 billion to $4-$4.5 billion, Anglo said, adding that the lower revisions this year may impact spending in future years.

Anglo's South African operations, which account for about 50% of the group's core profit, were now operating at 50% capacity despite an extension of lockdown.

The miner revised down its 2020 output for thermal coal, platinum, palladium and iron ore and diamonds. (Reporting by Zandi Shabalala; Editing by Toby Chopra)

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