Mining Group Xstrata Posts 11% Rise First-Half Production Of Coal
July 31st, 2009
Mining group Xstrata Plc posted an 11% rise in first-half production of coal, its most profitable commodity, while copper output added 1%.
Xstrata, the world’s fifth biggest diversified mining group by market value, said today coal production during the 6 months to end June increased to 43,8 million tons from 39,6 million in the same period last year.
The group, the world’s largest exporter of coal for power plants, said stronger output of coal in Australia more than compensated for weaker production in South Africa due to the planned closure of the Impunzi underground mine and strikes.
Coal accounted for 49% of 2008 operating profit and copper made up 32%, while the alloys division, which makes ferrochrome, was responsible for 14%.
Mined copper output rose 1% in the first half to 447 509 tons while ferrochrome production shed 60% to 244 000 tons after the group suspended 80% of capacity late last year due to low prices.
Mined nickel output rose 7% to 28 505 tons and zinc in concentrate production jumped 30% to 493 808 tons due to the restructuring and expansion of the Mount Isa operations in Australia.
Last month, Xstrata made public a “merger of equals” proposal to rival Anglo American Plc, which rejected the approach.
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