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Anglo American Iron-Ore Output Rises 5%; Copper Advances 10%

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By Carli Lourens

Anglo American Plc (AAL), the third- largest copper producer, said iron-ore output rose 5 percent in the fourth quarter, while copper volumes gained 10 percent.

Iron-ore production climbed to 12.4 million metric tons and copper increased to 170,000 tons, London-based Anglo said today in a statement. Manganese alloys advanced 1 percent. Iron ore, manganese and copper accounted for 65 percent of the company’s operating profit in 2010.

Anglo, like competitors BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO), is expanding mines and studying acquisitions to boost output of iron ore, copper, coal and other materials as demand expands in Asia. Anglo said last year it may spend $85 billion to raise production at 100 projects over the decade.

In 2011, the company started operating the Barro Alto nickel project in Brazil and expanded output at the Los Bronces copper mine in Chile and the Kolomela iron-ore deposit in South Africa. It also bid $5.1 billion to take control of De Beers, the largest diamond miner by sales, in its biggest acquisition since buying Brazil’s Minas Rio iron-ore venture for about $5.5 billion in 2008, according to data compiled by Bloomberg.

Anglo lost 29 percent in London trading last year as metal prices declined, less than the 35 percent slump of Xstrata Plc, a rival of similar size. BHP, the largest mining company, fell 26 percent. Twenty-three out of 32 analysts tracking Anglo recommend buying the stock, according to a Bloomberg survey.

BHP’s quarterly iron-ore output rose 22 percent to a record 41.1 million tons, the Melbourne-based company said Jan. 18. BHP’s copper production dropped 7 percent, while coking coal from Australia rose 9 percent.

Anglo gained 0.6 percent to 332 rand as of 9:24 a.m. in Johannesburg trading.