Coal production up but copper drops at Xstrata

Mining giant Xstrata reported record output from its Australian thermal coal operations in 2011, as its new Mangoola mine helped offset flooding at the beginning of 2011.

But copper production fell 3% as several mines approach the end of their operating life, the company said.

Xtrata produced 85.3m tonnes of coal on a consolidated basis in 2011, an increase of 7% compared to 2010.

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This was helped by a 12% increase in Australian thermal coal production to 49.8m tonnes, primarily due to the successful commissioning of the Mangoola mine ahead of schedule and on budget in February.

Australian output offset a 3% fall in South African operations, which suffered from industrial action as well as a move away from underground sites to three open cut mines.

Copper and coal make up more than two-thirds of Xstrata's bottom line and are key to its future growth strategy.

The firm also reported production of a record 105,925 tonnes of nickel in 2011, 15% more than the previous year.

Its Falcondo ferronickel operation in the Dominican Republic was responsible for the majority of this increase.