Export metallurgical coal production, dominated by its Australian mines, reached 12.62 million tonnes, 4% down from 2008, while export thermal coal production was also 4% lower to 14.05Mt.

Anglo noted the impact of weaker demand from steel customers, lower energy prices and weaker European power demand.

Implementing a wave of job cuts last year, the global miner said the headcount of its met coal division had been reduced by 20% since late 2008.

Anglo’s much publicised announcement a year ago to cut a total of 19,000 jobs globally was exceeded with 23,400 positions axed in 2009.

Further, significant reductions in maintenance and supply costs were achieved in the met coal division.

“These initiatives resulted in significantly lower unit costs, by more than $10 per tonne, compared with the cost base in the second half of 2008, and in a 24 per cent productivity increase over 2008,” Anglo said.

From a logistical view, the company is also in a better position to respond to returning demand thanks to the completion of the Dalrymple Bay Coal Terminal expansion, while the track expansion is expected to be finished next month.

The last of the rolling stock will be delivered by mid-2010.

Adding substance to rumours Dartbrook will be reopened, Anglo said it was progressing studies for major greenfield projects at Dartbrook, Moranbah South and Grosvenor.

A major announcement for the Grosvenor underground coal project north of Moranbah in Queensland’s Bowen Basin is expected to be made this year.

Targeting 4.3 million tonnes per annum of met coal, first production is scheduled for 2013.

“The positive trend seen from the steel industry in both China and the traditional markets during the second half of 2009 is expected to continue in 2010, with a return to 2008 steel production levels providing positive momentum for metallurgical coal prices,” Anglo said in its outlook for the commodity.

Most of Anglo’s commodities generated lower returns in 2009 with the exception of its copper business, which gained 6% to $2.01 billion of operating profit.

Anglo chief executive Cynthia Carroll said the long-term outlook for the mining industry remained strong.

“In order to sustain its growth potential, we anticipate that China will continue to upgrade and develop its infrastructure, while the longer term potential of India and Brazil is expected to provide further support,” she said.

Anglo had a $3.27 billion cash position at the end of 2009 and aims to spend $6 billion in capital expenditure investment this year.