Miner Anglo American posted a 14% rise in first-half underlying profit on Thursday on higher output and prices, at the top end of estimates, and forecast a strong second half.
The firm said despite an uncertain economic outlook due to a slowdown in many developed economies, commodities continued to see strong demand, especially from China.
”We expect a strong second half to the year driven by increased production, further improvements in our operational performance and robust pricing,” chief executive Cynthia Carroll said in a statement.
Anglo, the world’s fourth-biggest mining group by market value, said underlying profit for the first six months of 2008 rose to $3,48-billion from $3,06-billion in 2007.
Operating profit grew 30% to $5,97-billion as production increased in copper, iron ore, manganese ore, coal and phosphates.
The base metals division — including copper, zinc and nickel — was the biggest contributor to group operating profit, accounting for 41%, followed by the Anglo Platinum unit, making up 25%.
Anglo said its $45-billion pipeline of new and expansion projects included $15-billion of approved projects, up $3-billion since February.
The firm said it was still exploring options to sell its United Kingdom-based aggregates and asphalt company Tarmac. Anglo said in February it was delaying the planned disposal until the credit crisis improved.
Anglo announced the sale of Tarmac a year ago, saying it was the group’s last major piece of restructuring as it moves to focus on its metals and minerals businesses. Analysts estimated that Tarmac could fetch more than $6-billion. — Reuters