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Total mined copper production rose by 7%, thanks to the commissioning of the Antamina expansion, though volumes for the six months to June 30 were down by 18% to 354,612 tonnes.
Higher volumes at Antamina partially offset planned lower production at Ernest Henry and lower grades, recovery, weather issues and safety stoppages at Collahuasi.
Copper production is set to increase in the second half as the Antapaccay, Lomas Bayas and Mount Margaret growth projects ramp up.
Gold production decreased by 28% to 197,139 ounces in the first half of 2012 compared to the previous year, mainly due to lower volumes and grades at Ernest Henry and Tintaya and lower grades at Alumbrera.
The average price received for copper during the half dropped to $US8087 per tonne from $9399/t last year, while the average gold price increased to $1651 per ounce from $1444/oz.
Mined nickel and ferro-nickel production rose by 5% during the first half to 31,142t, with improved volumes and higher grades in Canada contributing.
The average price plummeted to $18,438/t from $25,565/t in the same period of 2011.
Thermal coal volumes increased across all regions and total coal production grew by 13% to 43.4 million tonnes.
Australian coking coal production increased by 6% to 3.3Mt.
The Ravensworth North and Ulan open cut coal projects will be commissioned before the end of the year, increasing output.
Lead production increased by 11%, while zinc output was steady.
The Lady Loretta and George Fisher growth projects are due to come online in the second half, boosting zinc production.
Ferrochrome production dropped by 21% due to the rescheduling of maintenance programs in response to a comparatively soft market and South Africa’s national electricity supplier Eskom buying back power to counter electricity shortages.
Other projects to be commissioned before the end of the year include the Koniambo nickel project and the Tswelopele ferrochrome pelletising plant.
“The commissioning of tier one growth projects will reduce overall operating costs and improve the quality and robustness of our portfolio throughout the commodity cycle,” Xstrata said.
Xstrata and Glencore shareholders will vote next month on the companies’ $A9 billion merger.
This article first appeared in ILN's sister publication MiningNews.net.
