Xstrata has revealed that its pgm production edged up slightly in the first half of 2010.

The diversified Swiss miner announced that output rose by two per cent on a year-on-year basis, mainly as a result of an improved performance at the Mototolo joint venture.

In addition, ferrochrome production reached 608,000 tonnes, representing a rise of 149 per cent in comparison to the equivalent six-month period last year.

Xstrata Coal's consolidated production and Australian thermal coal output remained roughly the same, while Australian coking coal production rose by 1.6 million tonnes (73 per cent).

Chief Executive Mick Davies explained that the firm is "very confident in the buoyant outlook" for its commodities in the medium term.

However, he also predicted that macro-economic conditions will be mixed in the short term, with only Germany managing to reach historical growth rates in the EU.

He said: "The US is likely to continue to provide an important base of demand for exports from developing countries and directly for commodities as its economic recovery continues.

"However, the developing economies, led by China, Brazil and India, are set to continue to provide the main driver of demand growth for our products."

Xstrata has operations in 18 countries and also owns a 24.9 per cent stake in Lonmin, which is the world's third-largest platinum producer.

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Xstrata reports leap in earnings (03/08/10)

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