Anglo’s Quellaveco project in Peru first produced copper in 2022
M&R, a long-time contractor for de Beers’ Venetia mine in South Africa, has been particularly affected.
The engineering firm shook the market after recent news of De Beers reviewing its operational plans at Venetia, M&R’s contract, which represents over 50% of its South African mining business, is set to be significantly descoped.
This descaling has forced M&R to issue a warning about its interim earnings for the six months ending December 2024.
The company expects its 2025 financials to be at least 20% lower than the previous year.
Cautiously optimistic
The descaling of M&R’s contract with De Beers has effectively wiped out the gains the company made in 2024 when its subsidiary, Terra Nova Technologies (TNT), secured a $200m contract with a large copper producer for a mine in South America in April.
This contract, which was expected to be a significant contributor to M&R’s earnings, has been overshadowed by the loss of business at the Venetia mine.
Despite this setback, M&R remains committed to pursuing new opportunities in the global mining sector, including copper mines in Zambia, to offset the impact and regain its financial footing.
The copper frontier
Anglo American, De Beers’ parent company, has a strong vision for the South American copper mining industry, with an approach, known as FutureSmart Mining, aiming to unlock value-accretive and responsible production growth in future-enabling metals and minerals.
“Sustainability, innovation and operating responsibly are embedded into our strategy: from day-to-day operational decisions to portfolio choices,” said company CEO Duncan Wanblad in a recent statement.
“We believe this approach is a pre-requisite for sustainable value creation and is integral to our DNA as a company.”
Sustainable practices
This commitment is particularly relevant in South America, where many copper resources are undeveloped due to environmental and community constraints.
“Across our world-class copper portfolio, we continue to focus on delivering production as responsibly and as profitably as possible,” explained Patricio Hidalgo, CEO of Anglo American in Chile.
Sustainability considerations are embedded into our strategy and support our permitting track record – including with respect to water, which is the greatest sustainability challenge in our region.
Navigating the challenging landscape
As miners like Anglo adjust operations to address market challenges, companies like M&R are also adapting their strategies to ensure continued success.
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