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Mining industry

Xstrata Reports Strong Momentum in Coal, Copper, and Nickel Volumes

Strategic Insights

— 1 min read

Xstrata PLC, a UK-based mining company, has reported a fall in third quarter copper cathode and consolidated coal output compared to the same period last year due to mine and smelter closures, planned maintenance, and adverse weather conditions. However, the company experienced strong momentum for coal, copper, and nickel volumes in the third quarter over the previous quarter. Xstrata also announced the discovery of a significant inferred resource base of 750 million metric tons at its West Wall copper project in Chile, which is expected to contribute to the company's project development pipeline in the country.

Key Takeaways:

  • Xstrata reported a 4.8% decline in consolidated coal production to 21.9 million metric tons in the third quarter, primarily due to reorganization of its coal operations in Australia, wet weather in Colombia and South Africa, and the closure of two mines.
  • Mined copper output rose 10.2% to 238,464 tons in the third quarter, driven by improved mining rates and recoveries rates.
  • Copper cathode output fell 5.5% to 171,397 tons in the third quarter due to the closure of the Canadian Kidd smelter and refinery, and an extended maintenance shutdown at the Canadian Horne smelter.
  • Commodity prices for most of Xstrata's products increased in the third quarter compared to the same period last year, driven by rising demand in emerging markets.
  • Xstrata's coal division reported a smaller percentage decline in coal production compared to Rio Tinto's coal division.
  • The company's nickel output rose 21% to a record 16,174 tons due to higher volume and grades at Nickel Rim South.

Statistics:

  • 750 million metric tons: inferred resource base discovered at Xstrata's West Wall copper project in Chile.
  • 21,900,000 metric tons: consolidated coal production (down 4.8% from the same period last year).
  • 238,464 tons: mined copper output (up 10.2% from the same period last year).
  • 171,397 tons: copper cathode output (down 5.5% from the same period last year).
  • 23,259 tons: refined nickel production (down 1% from the same period last year).
  • 12%: share of EBITDA accounted for by zinc in 2009.
  • 6%: share of EBITDA accounted for by nickel in 2009.

Sources:

  • Dow Jones Commodities News Select via Comtex
  • DOW JONES NEWSWIRES
  • Xstrata PLC

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