London, England — 03 May 2012 – Swiss-based Xstrata “’ one of the world’s largest global diversified mining businesses which is currently moving into the final stages of a record tie-up with commodities trader Glencore International “’ posted a drop in first-quarter copper production as it prepares for the ramp up of key projects in the second half of the year.
Reuters reports that Xstrata, confirming that all its major projects were making good progress and remained on schedule, said quarterly copper output had dropped more than 18% year-on-year, after reaching the end of life of mines, including the Ernest Henry open pit in Australia while newer projects were still ramping up. It produced 171,121t of copper in the quarter.
Mined coal “’ a key earner for Xstrata along with copper “’ saw consolidated production increase by 9% year-on-year to 21.1Mt. Production was slightly down, however, on the fourth quarter of last year.
While iron ore has become the focus of operations at several of the largest diversified miners, copper and coal account for more than 70% of Xstrata’s profits and both are key elements of its growth strategy.
Xstrata agreed in February to a long-awaited US $37 billion all-share takeover by Glencore, its largest investor. The trader is offering 2.8 Glencore shares for every Xstrata share held.
Source: Reuters. For more information, click here.