Xstrata’s coal, nickel, platinum output up, copper slips
miningweekly.com
By: Creamer Media Reporter
5th May 2009
JOHANNESBURG (miningweekly.com) – Swiss-based diversified miner Xstrata increased its year-on-year thermal coal, coking coal, nickel, platinum-group metals (PGMs), zinc-in -concentrate and lead metal production volumes in the first quarter of the year.
The company told shareholders in a statement on Tuesday that the PGMs volumes, produced by its alloys division, had increased by 18% to 53 797 oz in the quarter ended March 31, 2009, compared with the 45 467 oz of PGMs produced in the first quarter of 2008.
This was mainly as a result to the increased supply of upper ground two (UG2) ore to the mill and an improved feed grade at the Eland mine, which resulted in higher recoveries, said the miner.
However, heavy rainfall had halted production at the Eland operation, in South Africa, for a number of days, while adverse ground conditions at its Mototolo operation, also in South Africa, had negatively impacted on PGMs production in the quarter.
Meanwhile, the company’s coal division had increased its total consolidated production in the quarter by 7,7% or 1,4-million tons of coal to 19,9-million tons of coal, compared with 18,5-million tons produced the year before.
Its newly acquired Colombian thermal coal operation, Prodeco, had contributed 2,4-million tons of coal, partially offsetting lower volumes from the group’s South African operations, where production was down 15% year-on-year.
Production from Xstrata Coal’s Australian operations and the Cerrejón operation, in Colombia, had been consistent with that of the first quarter in 2008, the group reported.
Coking coal volumes, meanwhile, had increased by 20% to 1,2-million tons year-on-year.
The group’s nickel division, Xstrata Nickel, had increased its production volumes by 29% year-on-year in the quarter, owing to higher volumes from its Australasian operations, improved volumes and grades at the Raglan operation, in Canada, and high-grade ores from its initial production at the Nickel Rim South project, in Sudbury, in Canada.
Mined nickel production at the Sudbury operations had increased by 10%, while higher volumes and head grades had contributed to a 22% increase in nickel in concentrate production at the Raglan operation.
Meanwhile, zinc-in-concentrate production by Xstrata Zinc increased by 21% year-on-year, owing to the inclusion of the Perseverance mine, in Canada, and improved volumes at the majority of its other zinc operations, stated the group.
The total zinc metals production was, however, down 7% in the quarter, owing to reduced production volumes at the Kidd smelter, in Canada.
COPPER OUTPUT DOWN
The group’s total mined copper production was marginally lower at 217 092 t in the quarter, compared with the 219 978 t of the previous year, the group reported.
Production had declined significantly at the Ernest Henry openpit operation, in North Queensland, Australia, owing to the mine reaching an anticipated lower-grade zone, as well as heavy rain in the region of the operation during the quarter.
Production at its Tintaya operation was also down, while all its other operations had increased output.
Copper cathode production was down 9% in the quarter to 186 555 t, compared with 204 808 t the year before, owing to flooding in North Queensland, in Australia, which led to transport delays.
Total gold production had also declined by 18% in the quarter, as a result of the lower production at the Ernest Henry operation. |
