Coal output fallen by 6 Percent for miner Xstrata

XStrata - High Commodity Price Will Compensate Fall in Production

XStrata – High Commodity Price Will Compensate Fall in Production

Severe weather conditions prevalent in December and the first quarter of 2010 have affected the output thermal coal causing total coal output of miner Xstrata to fall by 6 percent.

Although the Anglo-Swiss miner managed to set production record for coking and semi-soft coking coal, overall consolidated production fell to 79.9 million tones.

The mining giant’s latest production report didn’t mention about its operations in Queensland in Australia after the state faced its worst floods in decades. Xstrata mines zinc, copper and coal in Queensland State.

Despite facing challenging conditions at its South American operations, total Copper production was up 0.7 percent to 913,500 tonnes.

Copper and Coal contribute most towards the company’s profitability.

The world’s biggest miner BHP Billiton had announced on Jan 20 that coal output of the company has fallen almost by one third in the last quarter and it will take at least six months before production returned to normal at its Australian operations.

Xstrata derives one third of its core profits from coal although BHP Billiton is the world’s biggest miner of coal.

Analysts expect the Anglo-Swiss miner to nearly double its net profit to $5.23 billion, according to a poll conducted by Thomson Reuters of 18 analysts.

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