Global miner, Anglo American on Friday reported that its net profit slumped 31% to £1.2 billion in the first half of 2010, a result skewed by volatility in the mining sector.
However, the London-based BSE, JSE and LSE listed mining giant declared an interim dividend of 25 cents per share citing improvement in underlying earnings for the year ended June 2010.
During the first half of 2009, Anglo American had earned more than one billion dollars from the sale of its interest in AngloGold Ashanti. Anglo American said operating profit more than doubled to US2.2 billion in the first half of 2010, while revenues shot up more than a third to US9.6 billion.
“Strong demand for steel raw materials, driven by Chinese-led consumption, resulted in favourable demand environments,” Anglo American said in its statement.
“Earnings were further supported by a resurgence of demand and prices for base metals, most notably in the copper market, where Anglo American’s portfolio of world class assets delivered substantial earnings.”
The group expressed optimism that demand for materials will increase to feed industrialisation and urbanisation in China, India and Brazil.