Metals demand boosts Anglo profit

Rising commodity prices are helping to lift Anglo's profits

Mining group Anglo American has seen its profits jump thanks to soaring demand in China for commodities such as iron ore, zinc and platinum.

Underlying earnings for 2005 rose to $3.7bn (£2.1bn), up 39% on 2004.

Anglo American saw record profits from its iron ore, coal and platinum divisions on the back of higher prices and increased production.

It said it had cut costs by $730m during the year and had nearly $4bn worth of new mining projects underway.

Anglo American is expanding its coal, iron ore and platinum mining operations as it expects prices and demand to continue growing through 2006.

"The outlook for the global economy is encouraging, with leading indicators showing signs of continuing global growth and strong underlying demand for our products," said chief executive Tony Trahar.

Anglo American also announced plans to sell off part of its stake in South African gold producer AngloGold Ashanti through a secondary public offering in the coming months.