Xstrata Q3 output rises
Xstrata, target of a $32.5 billion takeover bid by Glencore International, said third-quarter output of the fuel used in power plants rose 6 per cent as mines restarted.
Thermal-coal volumes climbed to 21.2 million metric tons from 20 million tons a year earlier, the Switzerland-based company said today in a statement.
Total output, including semi-soft coal, advanced to 24 million tons from 23.6 million tons.
Xstrata has restarted operations at the Blakefield South mine in New South Wales, it said in the statement.
Early stage production volumes from the Ulan and Ravensworth North open-cut projects during the period also contributed to the increase in coal output, it said.
The Mangoola thermal-coal mine in New South Wales and the Goedgevonden project in South Africa started up this year.
Xstrata, seeking to boost production by 50 per cent through 2014, on October 1 recommended shareholders vote in favour of a sweetened Glencore offer after Qatar Holding, with a 12 per cent stake, said an original proposal was too low.
Glencore raised its bid to 3.05 of its own shares for each one in Xstrata, up from 2.8. Xstrata gave no update on the deal today.
Third-quarter mined-copper output declined to 187,849 tons from 223,606 tons a year earlier.
Output of copper cathode, a finished form of the metal, slid to 156,864 tons from 163,683 tons.
Shareholders with a combined stake of as little 16.5 per cent of Xstrata would be able to block the deal.
UK takeover rules prevent Glencore from voting its 34 per cent Xstrata stake to approve the deal, which requires 75 per cent consent.
Xstrata has still to set a date for the vote, postponed on September 7 when Glencore, the world's biggest publicly traded commodities supplier, increased its offer.