# Anglo American Q3 Copper Output Falls 5% Amid Severe Weather

- URL: https://stocks.freetheai.org/news/anglo-american-q3-copper-output-falls-5-amid-severe-weather-491ee8
- Published: 2026-10-20T06:00:03Z
- Category: company_news; sentiment: mixed; impact: medium
- Symbols: [LSE:AAL](https://stocks.freetheai.org/symbols/LSE-AAL)
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Anglo American plc (AAL) reported a 5% drop in copper production to 174,900 tonnes for the third quarter of 2026, largely impacted by extreme winter weather in Chile and the processing of lower-grade ore. Premium iron ore production also declined 4% to 13.8 million tonnes due to planned plant modifications, while rough diamond output fell 11% to 6.8 million carats. Conversely, steelmaking coal output surged 53% to 2.9 million tonnes following an operational ramp-up in Australia. Shares of the company traded down 4.05% at 3,883 GBX following the updates.

Despite weather-related disruptions in South America, the miner maintained its overall full-year 2026 production guidance across key commodities. Tight cost management and strong by-product credits enabled Anglo American to reduce unit cost guidance for its Peruvian copper operations to roughly 50 cents per pound, lowering overall copper unit cost guidance to approximately 139 cents per pound. In addition, diamond production targets were raised to between 25 million and 28 million carats for the full year.

Investors continue to track ongoing corporate changes, including the planned merger with Teck to create a copper-focused producer, which remains on schedule for completion by March 2027 pending final regulatory clearance in China. The company is also progressing toward closing the $3.875 billion cash sale of its Australian steelmaking coal business in early 2027.

## Key points

- Q3 copper output dropped 5% to 174,900 tonnes due to severe winter weather in Chile and lower-grade ore processing.
- Full-year 2026 production targets were reaffirmed across primary minerals, with copper unit cost guidance revised downward.
- Steelmaking coal output increased 53% to 2.9 million tonnes following operational ramp-ups in Australia.
- The merger with Teck remains scheduled for completion by March 2027, awaiting final regulatory approval in China.

## Questions and answers

### Why did Anglo American copper production fall in Q3 2026?

Copper production fell 5% to 174,900 tonnes primarily due to severe winter weather in Chile and processing lower-grade stockpile ore.

### What is the status of the Anglo American merger with Teck?

The merger remains on track for completion by March 2027, with China's antitrust review representing the final required regulatory milestone.

### Did Anglo American change its 2026 full-year production targets?

Full-year production guidance remains unchanged for main divisions, while diamond guidance was raised to 25-28 million carats and copper unit costs were reduced.