Copper prices surged almost 40% during 2006

The group said net profits for 2006 rose 119% to $4.89bn (£2.54bn), which included the results of three major acquisitions it made last year.

The Swiss-based, London-listed firm said growing demand and rising copper and nickel prices also lifted profits.

But it declined to comment on rumours it may get involved in the possible break up of rival Anglo-American.

The mining sector has undergone a wave of consolidation in recent months in an effort to make the most of surging commodity prices triggered, in particular, by strong economic growth in China.

Over the past year, the firm has made three big acquisitions - Canada's Falconbridge, a third of the coal operations of Columbia's Cerrejon and the Tintaya copper mine in Peru.

In the coming year, Xstrata said it would decide whether to sell the aluminium assets inherited from Falconbridge.