Western Mining net profit drops 67%

Western Mining, China's second-largest lead miner, said on Tuesday its net profit plunged 67% in 2008 to US$83.4 million, Reuters reported. In a statement to the Shanghai Stock Exchange, the company blamed the collapse in nonferrous metal prices which caused a sharp fall in the company's profit, despite its trading business pushing revenues up by 45% in 2008. The average price of zinc concentrate, for example, fell 55% from a year earlier, and prices of copper concentrate were down 10%, the company said. Western Mining, in which Goldman Sachs holds a 3.1% stake, plans to triple production of crude and electrolytic lead in 2009. It also plans to produce 35,000 tons of copper cathode and 98,000 tons of primary aluminium this year.

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