Anglo American Iron Ore Output Up 5%, Copper Up 10% Post Projects

Globally diversified miner Anglo American PLC (AAL.LN) Thursday reported higher iron ore, copper and nickel output in the fourth quarter after completing three major projects in 2011, but reported lower platinum and diamond output during the same period.

Iron ore output rose 5% on the year to 12.4 million metric tons in the three months ending Dec. 31 while copper output rose 10% on the year to 170,000 tons during the fourth quarter due to the start up of additional production capacity at its Chilean Los Bronces mine.

Iron ore accounted for around 42% of Anglo's first-half operating profit before special items while the copper division accounted for about 24% of its first-half operating profit before special items.

Anglo American completed the expansion of its Chilean Los Bronces copper mine in November and started its new 9-million-ton-a-year South African Kolomela iron ore mine in December. It also completed its Brazilian Barro Alto nickel project in March and is now working to complete its Brazilian Minas Rio iron ore project in the second half of 2013.

Fourth quarter export thermal coal production from South Africa and Colombia increased 5% on year to 8.6 million tons. Australian metallurgical coal output rose 4% on year to 4.06 million tons but Australian thermal coal output fell 10% on year to 3.36 million tons.

Thermal coal and total Australian coal output, also known as the metallurgical coal division, accounted for 9% and 8% respectively of first half operating profit before special items.

The miner's Anglo Platinum Ltd. (AMS.JO) subsidiary saw platinum refined output fall 19% to 710,000 troy ounces due to a greater number of safety stoppages that resulted in lower mined production.

Diamond output from De Beers S.A. meanwhile fell 24% to 6.49 million carats. Anglo is the process of increasing its stake in gemstone miner to 85% from 45%.

Platinum and diamonds contributed 9% and 8% of operating profit before special items in the first half.

Anglo American's shares have risen 11.6% since the beginning of 2012, resulting in a market capitalization of GBP35.6 billion but the company's shares are still down 13.7% over the past 12 months as concerns about the global economy continue to weigh on the mining sector.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; [e-mail]