UK-based mining giant Anglo American has issued its financial results for the full year 2012, reporting a net loss amounting to $1.5 billion, compared to a net profit of $6.17 billion in the previous year. Revenues for the period decreased 10 percent year on year to $32.8 billion. EBITDA was $8.7 billion, down 35 percent compared to 2011. Anglo American's operating profit fell to $6.16 billion, decreasing by 44 percent compared to 2011. The decrease was attributed to lower prices and higher costs in certain business units with the exception of the metallurgical coal unit where costs decreased.
During 2012, iron ore production from Anglo American's South African subsidiary Kumba Iron Ore reached 43.1 million mt, up four percent year on year, due to the ramp-up at Kolomela, partially offset by the impact of the strike which resulted in lost production of approximately 5 million mt. Meanwhile, metallurgical coal production for exports increased by 24 percent to 17.7 million mt, with record production in the second half and the full year.
Additionally, Anglo American announced a probable ore reserve totaling 1.45 billion mt for the Serra do Sapo area of the Minas Rio project in Brazil, equivalent to 685 million mt of saleable product at an average grade of 67.5 percent Fe content. Phase 1 of the project is expected to deliver 26.5 million mt per year of iron ore production, with the first ore shipment scheduled for the end of 2014.
