Xstrata reported lower mined copper output but higher coal production in the H1 of the year compared with the same period 12 months ago and said 10 major growth projects would be commissioned in 2012.

The Anglo Swiss miner, which is seeking shareholder and regulatory approval to merge with mining titan Glencore International, said mined copper output dropped 18% to 354,612 tonnes while consolidated coal production rose 13% to 43.4 MT.

In 2011, copper accounted for 42% of earnings before interest, tax, depreciation and amortisation while coal contributed 33% of Xstrata's ebitda. H1 total mined copper production fell due to lower output from the Ernest Henry mine in Australia as it is converted for underground mining. Copper output from the Chilean Collahuasi mine in which Xstrata owns a 44% stake dropped due to lower grades and weather disruptions.

Consolidated coal output rose due to increased thermal coal volumes across every division. Nickel output rose 2.6% to 52,783 tonnes while zinc metal output was down 0.4% at 364,833 tonnes. Production of nickel accounted for 11% of last year's operating ebitda while zinc metal stood for 10%.

Source - The Australian.com

(www.steelguru.com)