Xstrata plans to increase spending on new mines by about 50% next year to USD 6.8 billion as the mining group keeps its main focus on organic growth rather than acquisitions.

The London listed group said that its total spending on new mining operations is due to reach USD 23 billion over the next six years.

Xstrata in its early years grew quickly through a series of takeovers, but last year switched its focus to expanding existing operations and building new projects.

Mr Mick Davis CEO of Xstrata said that "Together with opportunistic M&A where we can extract value, our focus on organic growth means that Xstrata's path to value is clear and is in the hands of our management teams.”

The Anglo-Swiss group said it was on track to meet its targets set last year to boost volumes by 50% and cut costs by 20% by 2014.

Xstrata the world's biggest exporter of thermal coal for power plants said that it now aimed to add a further 30% volume growth by 2016.

Next year's planned spending for new mines of USD 6.8 billion will be mainly for coal, copper and nickel projects. It compares with USD 4.6 billion estimated in August for 2010.

(Sourced from Reuters)