Mining group Xstrata is to resume dividend payments despite reporting a drop in full-year profits.

The company said its pre-tax profits fell to $1.87bn (£1.2bn) in 2009, down from $6.05bn a year earlier.

Xstrata blamed the fall in profits on heavy one-off costs and lower commodity prices.

However, it said the medium-term outlook for commodity demand remained "very promising". A final dividend of 8 cents per share will be paid in May.

"Robust economic growth and demand for commodities from industrializing nations is likely to continue," chief executive Mick Davis said.

Asia would be the main driver of metals demand as the pace of recovery in rich nations was uncertain, the company said.

The results were released on the same day that Xstrata said it planned to lock workers out and shut operations at the Tahmoor coal mine in eastern Australia between 8 and 14 February in response to strikes and union wage demands.

In October last year, Swiss-based Xstrata scrapped plans to make a takeover offer for rival Anglo-American, after having approached the company in June with a view to a merger.

Anglo-American had rejected Xstrata's proposal, describing it as "totally unacceptable".