Anglo American soars to record

MINING giant Anglo American posted record underlying pre-tax profits of $1.3bn (£722m) for the first half today on the back of spiralling copper, nickel and zinc prices.

Finance director Tony Lea said the Chinese market is the 'single, most influential' factor driving prices.

'As long as the Chinese economy continues to grow at current levels, prices of base metals will continue to be robust in the balance of the year,' he said.

Long term,the group is taking a 'relatively conservative' pricing outlook, particularly amid efforts by the Chinese government to slow the growth of the domestic economy, and the rise in US interest rates, he added.

'We're not in a position to say whether prices have peaked or not. In the second quarter, prices have come off quite significantly due to concerns over China's growth rate,' he said.

Operations in South Africa continue to be hit by the strong rand, which resulted in a $216m hit on first half headline earnings, said Lea.

South Africa accounted for 29% of the group's earnings for the period.

Lea said the company has begun a review in an effort to identify which of its operations there is the 'most susceptible' to the exchange rate movements.

On the group's acquisition plans, Lea said future deals will mainly benefit its paper and packaging business, where it hopes to capture a 20%-25% share of the European market.

There would be no rush to make acquisitions. 'It's a question of value, not a matter of urgency,' he said.