By Alex MacDonald
LONDON --Anglo-Swiss miner Xstrata PLC (XTA.LN) Tuesday reported
lower mined copper output but higher coal output in the first half
of the year compared with a year earlier and said ten major growth
projects will reach commissioning in 2012.
Xstrata, which is seeking shareholder and regulatory approval to
merge with mining titan Glencore International PLC (GLEN.LN), said
mined copper output dropped 18% on year, to 354,612 metric tons,
while consolidated coal production rose 13%, to 43.4 million
tons.
Copper and coal are the main earnings drivers for Xstrata,
accounting for 42% and 33% respectively of 2011 operating earnings
before interest, taxes, depreciation and amortization, or
Ebitda.
First-half total mined copper production fell due to lower
output from the Ernest Henry mine in Australia as it transitions to
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, the company said.
Nickel output rose 2.6% on year, to 52,783 tons, while zinc
metal output was down 0.4%, at 364,833 tons. Production of nickel
and zinc metal accounted for 11% and 10% of last year's operating
Ebitda.
Xstrata's shares closed Monday up 2.6% at 844 pence, resulting
in a market capitalization of GBP23.36 billion. Xstrata's shares
are down 13.7% since the beginning of the year.
Xstrata is due to report is half year financial results Aug
7.
Write to Alex MacDonald at alex.macdonald@dowjones.com
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