SÃO PAULO Anglo American Plcs Barro Alto nickel project in Brazil is likely to fall short of meeting its planned average capacity this year following problems in two furnaces.
The London-based company projects Barro Alto will have an average annual output capacity of 36,000 tonnes by 2016, with output for this year landing between 20,000 and 25,000 tonnes, according to a report by Brazilian news agency Agência Estado.
A year earlier, the plan was to reach 36,000 tonnes in the first quarter of 2013.
"The ramp-up process was delayed and that will have some effect on this years output. It is an adjustment of the project," a source close to the company told AMM sister publication Metal Bulletin.
One of the furnaces will be halted for six to eight months in 2014, and the other will be shut for maintenance in 2015, according to Agência Estado.
"Codemin (another nickel operation owned by Anglo in Brazil) is operating at average pace," the source added.
In the second quarter of 2013, Barro Alto produced 6,100 tonnes, while Codemins output stood at 2,400 tonnes.
A version of this article was first published in AMM sister publication Metal Bulletin.