Johannesburg — DIVERSIFIED global miner Xstrata posted record coal output for the year to December, boosted by acquisition as well as organic growth, the company said yesterday.
The Anglo-Swiss miner, the largest exporter of thermal coal which is used mostly to fire power stations, said total consolidated coal production increased 11% to 95,2-million tons last year, with thermal and semisoft coal up 13% and 17% respectively compared with the previous year.
Total thermal coal volumes rose to 82,6-million tons, as a result of the inclusion of 10,5-million tons from the Colombian Prodeco operations, which the company acquired for 2bn last March. Increased volumes at "highly productive" Newlands Northern underground mine in Queensland, Australia, as a result of improved geological conditions, also played a part in the overall production increase.
The company said construction of the Goedgevonden open-pit thermal coal mine in SA had been completed during the year and was increasing to full production of 7-million tons a year next year. However, despite additional tons from Goedgevonden, production from the South African operations fell 8% compared with the previous year, due to the planned shutdown of Impunzi and reduced demand for unwashed coal in the domestic and export Atlantic market. Lower demand for export thermal coal in the Atlantic coal market also constrained Colombian production.
The company also reported that the production of lead, nickel and zinc in concentrate also reached new highs for the 12 months to December.
Meanwhile, reports in Australia said Xstrata was investigating a big expansion of thermal coal mining in Australia's northeast, where the company is believed to have earmarked 13bn to produce 110-million tons of coal a year.
Semisoft coking coal production increased 17% year on year due to the New South Wales operations switching from thermal production to higher- priced semisoft production in order to maximise margins.
Production of Australian coking coal decreased 7% for the full year, as the suspension of long-wall operations at Oaky No1 for the first half of last year - in response to weak market conditions and industrial action at Tahmoor - were only partly offset by increased productivity at Oaky North.
Mined copper output at Xstrata, the fourth-largest producer of the metal, fell 5% to 906898 tons on lower shipments from the Mt Henry, Alumbrera and Antamina mines.
Nickel output gained 5% to 57052 tons on higher volumes from Raglan and Xstrata Nickel Australasia mines, according to the company.
Zinc in concentrate, an intermediate product shipped to smelters, rose 20% to 1,03-million tons.
Chrome output fell 30% to 786000 tons after Xstrata's venture with Merafe Resources suspended 17 of 20 furnaces in the first half-year due to weak demand. The venture raised capacity usage to 60% in July and to 85% at the year-end.
With Bloomberg
