On Tuesday, Anglo American, the global miner, downgraded its production guidance for copper due to constraints at its Chilean operations, even as its output of the metal rose over the third quarter by 42%.

The company now forecasts it will produce between 830,000 and 870,000 metric tons of copper in 2023, down from the previous prediction of 840,000 to 930,000.

In the first nine months of 2023, copper output at Anglo rose to 596,000 tons from 420,000 tons one year earlier, underpinned by the ramp-up of its Peruvian Quellaveco mining operation.

It is expected that as the world transitions toward more green forms of energy and electrification, the demand for copper, for use in the manufacture of technologies such as solar panels and electric cars, will increase sharply.

Anglo’s share price, which was down by 37% this year, was up 1.6% at the open in London.

Tyler Broda at RBC Capital Markets said, “Anglo shares have been very weak versus peers recently and we continue to see the portfolio, bolstered by the Quellaveco cash flow flip as the mine ramps up and potentially less downside from PGMs (platinum group metals) and diamond prices from here.”

The company, listed out of London, reported that steelmaking coal and diamond output for the quarter ended September 30th, suffered a double digit decline.

Rough diamond production was down 23% year over year, to 7.4 million carats. Meanwhile the demand for diamonds in China, a major consumer, has fallen this year as the economic downturn in the country has blunted the demand for luxury items.

Anglo reported that its production of iron ore declined by 4% in the third quarter, while the sales at the Kumba unit in South Africa are being weighed down by the absence of a rail option to ship its materials out to ports.

Stockpiles held at Kumba increase to 9 million tons in the three months to September. In the same quarter in 2022, the unit only had 4.6 million tons of stockpiles.