South Africa: Anglo American's iron ore output falls 2% y-o-y in Q1CY'26

• Logistical hurdles in South Africa impact evacuation from Kumba
  
  
• CY'26 iron ore production guidance maintained at 55-59 mnt
  
  

Anglo American, a major global iron ore miner, has announced its operational results for the first quarter of 2026. The company's total iron ore production stood at 15.2 million tonnes (mnt) in Q1CY'26, down 1.6% y-o-y from 15.45 mnt in Q1CY'25 and 0.7% lower q-o-q compared to 15.11 mnt in Q4CY'25. The decline was driven by softer output from both Kumba and Minas-Rio, reflecting persistent logistics constraints in South Africa and sequential normalisation in Brazil following stronger Q4 performance.

Kumba iron ore output improves q-o-q; slightly lower y-o-y

Kumba's iron ore production stood at 8.84 mnt in Q1CY'26, down 1.7% y-o-y from 8.99 mnt in Q1CY'25, but up 2.9% q-o-q from 8.59 mnt in Q4CY'25.

While mining activity remained stable, output continued to be capped by rail and port capacity limitations, which constrained evacuation.

Kumba's export sales rose to 9.14 mnt, up 2.2% y-o-y from 8.94 mnt and 2.2% q-o-q from 8.94 mnt in Q4CY'25, supported by improved shipments and inventory drawdowns.

Minas-Rio pellet feed output stable y-o-y

Minas-Rio produced 6.36 mnt of pellet feed in Q1CY'26, down 1.5% y-o-y from 6.46 mnt in Q1CY'25. Moreover, the figures were 2.5% lower q-o-q against 6.52 mnt in Q4CY'25.

The sequential moderation follows normalisation after stronger Q4 volumes, when output benefited from improved operational performance following the completion of the pipeline inspection earlier in 2025. With operations stabilised, Minas-Rio returned to steady-state production levels in Q1CY26.

Pellet feed sales stood at 5.70 mnt, up 1.2% y-o-y from 5.63 mnt, but significantly down 21.1% q-o-q from 7.22 mnt in Q4CY'25, when shipments were elevated due to inventory drawdowns and smoother pipeline utilisation.

Operational trends remain mixed

Performance across regions remained uneven, with Brazil operations maintaining steady throughput, while South African output continued to be influenced by logistics bottlenecks. Sales trends, however, remained relatively resilient, supported by shipment improvements at Kumba and balanced inventory levels at Minas-Rio. However, the price realisations fell by around 5% y-o-y to $91/t FOB in Q1 CY'26 against $96/t FOB levels in the same period last year.

Production guidance maintained for CY'26

The company has retained its CY'26 production guidance at 55-59 mnt (Kumba: 31-33 mnt; Minas-Rio: 24-26 mnt), indicating a steady supply outlook despite ongoing logistics constraints in South Africa.

Anglo American's iron ore output is expected to remain largely stable in the near term, with Kumba's performance continuing to depend on rail and port efficiencies. Minas-Rio is likely to maintain steady throughput, supporting overall supply stability.