On October 18, Australian coal producer Xstrata announced its production results for the third quarter of 2011. Accordingly, Xstrata's total consolidated coal production in the given quarter rose by 1.7 million mt compared to the corresponding quarter of 2010 to 23.6 million mt, hitting a quarterly production record. The Australian company's thermal production in the third quarter this year, including semi-soft, was 13 percent or 1.6 million mt higher than the same period in 2010, mainly due to the successful commencement of operations at the Mangoola open-cut mine ahead of schedule in February 2011.
Xstrata posted a 26 percent increase in coking coal production in the third quarter of the year, primarily due to full production from the Tahmoor underground mine in New South Wales compared to the same period last year when industrial action significantly impacted production.
Meanwhile, Xstrata's total nickel production in the third quarter of 2011 increased to 26,738 mt, 15 percent higher than the same period last year. This increase was driven by the successful ramp-up of the Falcondo ferronickel complex in the Dominican Republic to exceed the planned annualized run-rate of 14,000 mt of nickel in ferronickel, 50 percentof its installed capacity. Falcondo contributed 3,708 mt in the third quarter, six percent above the planned run-rate and representing an annualized run-rate of close to 15,000 mt of nickel in ferronickel.
In response to weaker market conditions, scheduled maintenance programs at the furnaces during the high-electricity-tariff South African winter were extended, resulting in reduced operating capacity utilization of 52 percent. Consequently, ferrochrome production was 18 percent lower in the third quarter of 2011 compared to the same period in 2010.
According to the statement, Xstrata's base metal and coal operations remain on track to deliver a stronger second half performance compared to the first half of 2011.