BEIJING - China Minmetals Corp's profit rose 98.5 percent last year to 12.8 billion yuan ($2.03 billion), breaking through 10 billion yuan for the first time.

Zhou Zhongshu, president of China Minmetals, the nation's largest metals trader, said the company's performance outstripped that of its peers despite the slow global economic recovery and the ongoing European debt crisis.

China Minmetals, which generated revenue of 355.2 billion yuan last year, is expected to develop into a large global enterprise with stronger influence on the industry within 10 years, Zhou told the company's annual work conference on Thursday.

Global economic conditions were harsh in 2011. China's demand for metals slid, as did raw materials prices, which challenged the company's businesses including metals, finance and real estate, Zhou said.

However, the company's key businesses still fared well. It sold 28.8 million tons of steel.

It also set two volume records: 53.9 million tons for iron sand and 4.99 million tons for iron ore production.

The company ranked first in the world in its production capacities for antimonic oxide (used as a flame retardant and pigment), medium-heavy rare earths (used in magnets) and hard metals (also known as cemented carbides and often used for cutting tools).

It held onto first place for domestic production capacities of lead and zinc smelt.

"The company has been working on its overseas business structure and completing key production lines, especially in the rare earth sector, which has expanded to upstream exploration from downstream applications," said Zhou.

"The integration of the rare earth business reached a new level in 2011."

Minmetals last year won exploration rights at one rare earth mine in Yongzhou, Central China's Hunan province, and another in the northeastern part of Guangdong province.

Zhou said the company would start prospecting in Guangdong this year, part of an overall effort to bolster its rare earth resources.

Rare earths, a group consisting of 17 elements, are widely used in industrial products, from hybrid cars to missile-guidance systems.

The company will boost preliminary work at the Dugald River lead and zinc mine, which is being conducted by its overseas subsidiary, Minerals and Metals Group, in Australia and a copper project in Peru.

"Compared with the global mining giants, we need to strengthen our fore-end industrial chain and complete our resources layout, which will help diversify our sources of resources," Zhou said.

He said that profits for China's iron and steel industry hit a record low because of falling steel prices and stagnant demand, which will both influence the business of China Minmetals this year.

Soaring costs for power, commodities, labor and logistics would make it tougher for the company to control production costs, he said.

The company has said that it will accelerate its restructuring and prepare for an IPO this year.

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