Antofagasta forges ahead despite rising costs

Antofagasta, the mining group based in Chile but listed in London, has reported a 15% rise in profits in the six months to the end of June, to $1.7 billion.

Turnover rose 24% on the first half of 2007, to $2.4 billion, and while production costs more than doubled during the first half of this year, the rise was offset by booming commodity prices.

Production of copper rose to 233,600 tonnes and Antofagasta says it expects demand for the metal to remain strong well into 2009.

The group operates three mines in South America and in addition to supplying copper to the worldwide construction industry, produces molybdenum, a by-product of both copper and tungsten.

The silvery-white metal, which is very hard, is used in the manufacture of aircraft components and industrial motors, and its price has been rising along with other commodities.

Antofagasta has a number of new projects in Chile and will also shortly begin exploration in Africa, having recently secured an agreement with the Zambian government.