Stronger second half on key commodities for Xstrata

Production and Markets

Publishing Date: 01 Feb 2010 11:17am GMT
Author: Mining Journal

Xstrata plc says it experienced stronger second half production numbers for key commodities, while restructuring and operational improvements were showing results.

The company had a better second half in chrome, platinum, copper, semi-soft and coking coal, while there was a significant increase in fourth-quarter volumes across almost all commodities, when compared with the September quarter.

For the full year to end-December total coal production increased by 11% to 95.2Mt in 2009, largely due to the inclusion of the 10.5Mt from the Prodeco operations in Colombia, acquired from Glencore during the year.

Copper production fell 5% to 906,898t, mainly due to a 75,000t reduction in copper output at Ernest Henry (attributed to increased waste stripping) and lower production at Alumbrera and Antamina.

In December 2009, as part of a rationalisation of Canadian operations, the company announced that the Kidd metallurgical plant would permanently cease operations in June 2010. Kidd was temporarily suspended during 2009, contributing to the 10% decline in copper cathode production during the year.

Total mined nickel production at 57,052t was 5% higher than 2008. The improvement was attributed to increased head grade and volumes from Raglan, higher volumes from Xstrata Nickel Australasia and to initial feed from the Nickel Rim South operation. This offset the impact of restructuring of the Sudbury operations.