JOHANNESBURG (miningweekly.com) - Xstrata-pursued Anglo American's first-half earnings fell 68,5% and operating profit fell 66% with the company expecting demand for its products to remain "soft" in the near term.

Anglo, headed by CEO Cynthia Carroll, said that it had made significant progress towards its $2-billion cost-cutting target and procurement initiatives, delivering more than $45- million in the first half, with the expectation of more than $1-billion for the full year 2009.

The resumption of the payment of a dividend to shareholders remained a key priority for the board.

First-half underlying earnings were $1,1-billion, down 68,5% from $3,5-billion in the first half of 2008 and operating profit of $2,1 billion was down 66% from $6,2 billion, owing to a significant decline in realised prices and lower global demand.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.