[miningmx.com] — XSTRATA posted a 6% increase in copper output during the second quarter, as volumes in Chile and from its Australian operations helped offset lower grades and the impact of a weather-battered start to the year.
Xstrata, the fourth-largest global diversified miner, had reported a drop in copper output in the first quarter, hit by severe weather conditions at its Collahuasi mine in Chile. But it said on Tuesday that mined copper production in the first half totalled 434,046 tonnes, broadly in line with a year ago.
Xstrata Coal also reported output in the first half flat on the year-ago at 38.5 million tonnes, as the miner recovered in the second quarter from heavy rains and flooding in Queensland and Western Australia, as well as freak weather in Colombia and South Africa.
Australian thermal coal production increased by 9% in the first half, bolstered by the start of operations at the Mangoola open cut mine ahead of schedule.
Rivals BHP Billiton and Rio Tinto have also reported a recovery in production after Australian floods, though BHP said last week it would take the rest of 2011 to return to full production.
Xstrata said that despite a rapid recovery from the Queensland floods, delays in repairing infrastructure prevented sales from its Rolleston operation, while recovery work at the Blakefield South mine will continue to the end of the year.
Copper made up around half percent of Xstrata’s earnings last year, while coal was just under 30%. Xstrata is due to post interim financial results on Augustus 2.
Xstrata said separately on Tuesday that it would start developing the high-grade zinc-lead-silver Lady Loretta deposit in northwest Queensland, Australia, a $239 million project.
