COPPER gains at London-listed miner Anglo American have been offset by a sharp cut to its diamond output as demand still fails to pick up.

The company's De Beers division was left battered and bruised at the hands of a neartotal bottom-out in consumer demand for diamonds at the end of last year, causing a massive inventory over-supply.

In an effort to fight the glut, the company said it decreased diamond production through the first quarter by almost one quarter (23 per cent).

Anglo said that De Beers will now aim to produce 26m to 29m carats of diamonds this year, down from the previous target of up to 32m carats, and unit costs have been altered to $90 per carat (£72.81).

Copper production has risen by 11 per cent as the company's flagship Quellaveco mine picked up steam, while steel-making coal production leapt seven per cent and iron ore and nickel production were mostly flat.

"We are driving operational excellence across our assets," said Anglo-American chief executive Duncan Wanblad.

Shares closed down 2.27 per cent.

(c) 2024 City A.M., source Newspaper