Xstrata Ferrochrome Production Falls 60%

Miner Xstrata said ferrochrome production was 60% lower in the first half of 2009 compared with the same period last year.

But the group saw increased production volumes of copper, thermal coal, mined nickel and zinc compared to the first half of 2008.

Ferrochrome production was down due to the temporary suspension of up to 80% of production capacity through late 2008 and early 2009, it said.

Overall PGM volumes increased marginally compared to the same period last year, despite production being adversely affected by a combination of above average rainfall.

Thermal coal production increased by 18%, due to higher production at the Newlands complex in Australia and the contribution of the acquired Prodeco operations in Colombia

Increased output from Mount Isa zinc and McArthur River expansions, together with growth from the new Perseverance mine, resulted in a 30% increase in zinc in concentrate.

Mined copper production increased by 1%, while total mined nickel production increased 7% in the first half of 2009 due to increased production and higher grades from Raglan and Xstrata Nickel Australasia (XNA)

Xstrata Coal's production volumes for the six months increased by 4.2 million tonnes or 11%, while by-product gold production decreased by 11% due to the weather issues at Ernest Henry, partially offset by higher gold production at Tintaya.


Source: Sharecast