Copper miner Antofagasta (ANTO.L) has reported a 54.3 per cent year-on-year increase in net earnings during the first half of the year.

Net earnings to 30 June 2011 were reported to be $696.2 million compared with $451.2 million during the prior-year period.

Marcelo Awad, chief executive officer of Antofagasta, said, 'The first half of 2011 has been a very significant period for the Antofagasta Group, with the first production and shipments from Esperanza taking place at the start of the year.

'The commissioning of Esperanza represents a major step in the growth of the Antofagasta group.'

He added, 'Recent events have shown the volatility of commodity prices, and the industry is also continuing to see relatively strong cost pressures.

'However, I believe that Antofagasta, with its low average net cost position, is well placed to deal with these challenges.

'While markets are likely to remain volatile, especially in the near-term, we remain confident that copper fundamentals will remain supportive of a strong pricing environment.'

The company also raised its interim dividend to 8 cents, a 100 per cent increase on last year's interim dividend.

The FTSE 100-listed mining group said first half copper production had increased by 14.1 per cent to 288,500 tonnes compared with 2010, with increased production attributed to the ramping-up of its Esperanza project.

Its 2011 gold production is also expected to increase greatly, thanks to the Esperanza project, with estimates of between 200,000 and 215,000 ounces compared with 35,100 ounces in 2010.

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