Swiss mining firm Xstrata has reported a rise of nine per cent in its coal output during the third quarter, following its acquisition of two Colombian mines earlier this year.
Total output of coal, XstrataÔÇÖs most profitable product, rose nine per cent in the three months to the end of September, with total production reaching 25.6 million tonnes.
Xstrata is the worldÔÇÖs biggest exporter of thermal coal used in power plants, with Australian thermal coal responsible for 43 per cent of the companyÔÇÖs total output.
Coal was the largest contributor to XstrataÔÇÖs first half operating profit, accounting for 72 per cent of the total.
Xstrata purchased two Colombian mines in MarchÔÇöthe Prodeco coal assetsÔÇöfrom their largest shareholder, Glencore International, for $2 billion (Ôé¼1.3 billion). The mines contributed five million tonnes to total production in the first halfÔÇöthough Glencore has an option to buy back Prodeco from the company within a 12 month period.
Copper was the next most important product; however, mined copper production was down 10 per cent from the same period last year, to 212,173 tonnes. This was due in part to less metal being recovered from ore at the companyÔÇÖs Argentinean, Peruvian and Australian mines.
However, Xstrata, which is the worldÔÇÖs fourth-largest copper producer, has already announced an investment of $293 million (Ôé¼196 million) to expand its Lomas Bayas II copper project in Chile, as well as an additional spend of $407 million (Ôé¼272 million) on the ATCOM East coal project in South Africa.
The company said in July that its copper output would rise in the second half compared with the first.
Platinum group metals (PGMs), refined nickel, zinc in concentrate and lead metal all saw an increase compared to the third quarter of 2008.
ÔÇ£XstrataÔÇÖs operating and financial performance continues to be strong and the companyÔÇÖs financial position remains robust,ÔÇØ the Zug, Switzerland-based company said in a statement.
Last week, Xstrata pulled out of its proposed takeover of UK-based rival Anglo American, in response to a deadline set by the UK Takeover Panel. It must now make no further approaches to Anglo for a period of at least six months.
Xstrata shuttered some of its Canadian and Australian mines in the first half of the year and made spending cuts after global demand for commodities fell.
The company operates across 19 countries worldwide.
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