UPDATE 1-Anglo American Q4 iron ore output rises, copper hits record

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LONDON, Jan 29 (Reuters) - Anglo American's AAL.L iron ore production rose more than expected in the fourth quarter, recovering from trouble at the division's largest mine while copper output hit a new quarterly record.

Iron ore was the largest contributor to Anglo's profit in 2012 and production of the steel ingredient at its key Kumba Iron Ore KIOJ.J unit rose by 25 percent to 11.3 million tonnes in the fourth quarter from the same period a year earlier, when it was hit by a strike.

It was also an improvement on the third quarter, when production dropped due to pit constraints at the Sishen mine and regulatory safety stoppages in August.

The Sishen pit still remains constrained by waste material, however, which reduces the availability of material supplied to the processing plants, the company said, adding that it is implementing a plan to address the problem.

Copper, the second largest contributor to Anglo's profit, also provided good news with production up 24 percent year-on-year to a quarterly record of 214,400 tonnes, driven by strong output at the Los Bronces mine and higher grades at Collahuasi offsetting an output decline at the El Soldado mine.

Helped by higher production from the Mogalakwena mine, equivalent refined platinum production increased by 25 percent to 520,300 ounces in the fourth quarter from the same period last year, when it was heavily impacted by a strike.

An ongoing strike of platinum miners in South Africa is costing the company about 4,000 ounces of platinum production a day resulting in 100 million rand ($9.11 million) of lost daily revenue.

In platinum, Anglo is battling labour trouble but also a margins squeeze due to higher costs and lower prices.

Anglo, the fifth-largest diversified mining group, is wrestling with a turnaround effort under Chief Executive Mark Cutifani, after years of sector-lagging returns.

(Reporting by Silvia Antonioli; editing by Stephen Eisenhammer)

((silvia.antonioli@thomsonreuters.com)(+44)(0)(20 7542 1755)(Reuters Messaging: silvia.antonioli.reuters.com@reuters.net))

Keywords: ANGLOAMERICAN PRODUCTION