Anglo American profits grow 46%

Anglo American, the world's third-largest mining firm, is returning $3bn (£1.5bn) to shareholders after reporting a 46% rise in annual profits.

Net profit was $5.5bn in 2006, compared with $3.7bn in 2005, but that was still at the lower end of expectations.

The $3bn share buyback is on top of the $7.5bn that it bought in 2005.

Anglo American added that it had received approval from South African authorities for a separate listing for its Mondi packaging and paper business.

Chief executive Tony Trahar, who steps down from the job at the end of this month, predicted that strong demand for metals from China and India will largely make up for slowing orders from the US.

"Continued growth in these regions in 2007 is likely to largely offset weaker US growth and thus the decline in global growth from the strong level achieved in 2006 should be fairly modest," he said.

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