 Rising prices should boost business, says chief executive Mick Davis |
Profits at global mining group Xstrata have been slashed to $164.2m (�98.8m) from $423.9m a year ago. The London-listed firm blamed the slump on depressed commodity prices earlier in the year and the weak dollar.
However, despite the slide, the firm was upbeat about the future amid a "resurgence in commodity prices" and increased speculation in the sector.
It also announced a new joint venture in South Africa and the launch of a new coal mining project in Australia.
New deals
Chief executive Mick Davis said it had forged a new chrome joint venture with SA Chrome would see the two firms combine their South African chrome and ferrochrome assets.
The move also helps Xstrata meet a key requirement of the country's black empowerment obligations, under which mining companies must have 15% black ownership.
Looking ahead, rising coal prices are expected to give the firm a boost - with Xstrata announcing it expected to agree a supply deal with Japanese steel mills in excess of the price $58 per tonne deal recently struck by rival BHP Billiton.
Mining analysts are forecasting net profits will almost quadruple on the back of higher prices, especially for copper and coal.
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