Reuters reported that Xstrata posted record output from its Australian thermal coal operations in 2011 as the newly commissioned Mangoola mine helped offset a flood hit start to 2011 helping to lift total coal production by 7%.

Copper, however dipped as several mines approach the end of their operating life though new production at mines including Antapaccay in Peru does not start until later in 2012.

Consolidated coal production totalled 85.3 million tonnes helped by 12% increase in Australian thermal coal production to 49.8 million tonnes helping to offset a dip in South African operations following strikes. Coking coal output was flat at 7.6 million tonnes. Total mined copper production was almost 3% lower at 888,979 tonnes.

Copper and coal account for more than two thirds of Xstrata's bottom line and both commodities are key planks of Xstrata's growth strategy with supply issues expected to hold up copper prices while Chinese and Indian demand for seaborne coal is expected to support thermal coal prices.

(Sourced from Reuters)