Steel and mining group Arrium is targeting further earnings growth after lifting its full year profit 83 per cent.

Arrium, formerly known as OneSteel, made an underlying net profit of

$296 million for the year to June 30, up from $162 million a year ago.

Statutory net profit was $205 million, up from a loss $701 million, which was the result of restructuring costs.

The profit increase was due to growth in the company’s mining business, which offset weakness in its steel making operations.

Arrium cut 120 jobs from its Newcastle steel-making operations in May and June, due to reduced demand for its products from the mining industry.

The company sold 12.5 million tonnes of iron ore during the year, but expects to reach 13 million tonnes in 2014/15 after doubling capacity at its Whyalla Port.

Arrium said it expected iron ore prices to improve in 2014/15 and is targeting higher earnings from its mining consumables business.

It said earnings from its steel business would remain under pressure during the first half due to weakness in international and domestic markets but expects to benefit from an increase sales volumes.

The company announced an unfranked final dividend of three cents per share, which takes the full year dividend to nine cents, up from five cents a year ago.