BHP Billiton and Anglo American, two of the world’s biggest mining companies, have reported a surge in profits.

BHP’s half-year profits were $3.24bn (£2.6bn), up from $412m a year earlier.

Anglo American reported full-year profits of $1.6bn, a significant improvement from its $5.6bn loss in 2015.

The rise in commodity prices, in part driven by increased demand from China, has contributed to both company’s success.

Iron ore prices have risen by more than 80 percent in the last year and coal has almost doubled in price.

The price of copper bounced back above $6,000 a tonne on Monday, as a dispute affecting production at the world’s second-biggest copper mine worsened.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Andrew MacKenzie, BHP’s chief executive, said the mining giant’s five-year plan allowed the company to “take full advantage in a period of higher prices”.

However, MacKenzie added that although demand in China has helped push up growth, it is the scarcity of production elsewhere which played a key role in generating profit for BHP.

“China’s improved a little bit but I would say much of what’s going on in terms of the iron ore price is down to less production of iron ore elsewhere and companies like us have been able to fill that gap.”

In its statement BHP said China’s economic growth could cool off in the coming year, adding that mining sector exports “may be challenged by the rising threat of protectionism”.

Protectionism is likely to take hold in the US given president Donald Trump’s increasingly isolationist stance.

Commenting on Anglo American’s results, chief executive Mark Cutifani said:

“The high quality assets across our De Beers, platinum group metals and copper businesses underpin our positions in those respective markets and are the cornerstone of a more resilient and competitive Anglo American, through the economic and commodity price cycle.”

“In addition, we continue to benefit from the performance of a number of other world class assets across the bulk commodities of iron ore and coal, as well as nickel.”