Mining group Xstrata said its financial performance was strong in the third quarter as it posted a 9 per cent rise in third quarter production of coal, its most profitable product, while copper output fell 10 per cent.
"Xstrata's operating and financial performance continues to be strong and the company's financial position remains robust," the firm said in a statement.
Xstrata - the world's biggest exporter of "thermal" coal used in power plants - said today total coal production for the three months to end September was 25.6 million tonnes and mined copper output was 212,173 tonnes.
Coal was responsible for 72 per cent of first half operating profit, copper was the next most important while the nickel and alloys units made losses.
The average selling prices for coal in the third quarter were largely lower with prices for Australian thermal coal falling 31 per cent to $73.8 per tonne. Australian thermal coal accounted for 43 per cent of Xstrata's total coal output.
Xstrata - the world's largest zinc producer - said mined zinc in concentrate production fell 10 per cent, mined nickel output was largely flat and ferrochrome production 20 per cent.
"The strong (South African) rand has resulted in margins remaining under pressure and subsequently ferrochrome producers have achieved a 16 per cent increase in pricing," it said.
Xstrata made no comments about its view of commodity markets in its production report, but in August when the firm released interim results it warned that hopes of a quick recovery could be premature.
Last week, Xstrata gave up its pursuit of rival Anglo American, dropping a "merger of equals" proposal after refusing demands from Anglo shareholders that it pay a premium.
Reuters