Higher commodities prices helped Anglo American increase pre-tax profits 19 per cent in the first half, with its iron ore, coal and copper divisions performing particularly well.

Cynthia Carroll, chief executive, gave an upbeat assessment of the outlook for commodity prices and said that demand from China and other emerging markets would outweigh slower demand from the US and Europe.

“China continues to be the key engine of growth in demand for industrial minerals,” she said, adding that by 2017 China would consume about two-thirds of the world’s copper and sea-borne iron ore supplies.

Ms Carroll said that urbanisation and industrialisation in China, India and other developing countries would underpin strong demand for metals, coal and iron ore. “These countries are due to spend $21,000bn on infrastructure by 2017.”

But Ms Carroll said Anglo could not rely on rising prices forever. “In the next 12 months we will see an increase in production across the group.”

Anglo’s revenues for the first half rose 13 per cent to $14.5bn (£7.3bn), from $12.9bn in the first half of 2007. Pre-tax profits rose 19 per cent to a record $5.6bn, from $4.7bn last time, as the impact of higher commodities prices more than cancelled out a drop in production volumes and a rise in operating costs.

Basic earnings per share rose to 3.56 cents, compared with 2.41 cents, and the interim dividend is lifted 16 per cent to 44 cents.

Anglo’s base metals division, which includes copper, nickel and zinc, was the biggest contributor, generating $2.5bn of operating profits, followed by platinum at $1.5bn.

The platinum division saw a slight drop in profits after production volumes were hit by floods and power cuts at the group’s South African mines.

The only other division to record a drop in profits was industrial minerals, which includes Tarmac, where operating profits fell 22 per cent to $163m. The slowdown in the UK housing market had hit the homebuilding sector and demand for Tarmac’s products, Anglo said.

Tarmac has been for sale since last year but the credit crunch has caused the number of potential buyers to dwindle.

Anglo American shares rose 11p to £29.21 on Thursday.

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