July 30, 2010 –   * H1 EPS doubles to $1.84 vs $1.73 forecast in company poll

* Follows bumper Vale results

* Brazil iron ore project to be delayed; lack of approvals

* Announces reinstated dividend of 25 c/share

* Shares up 0.1 percent, outperforms rivals

(Adds shares, analyst comment, details)

By Eric Onstad

LONDON, July 30 (Reuters) - Anglo American became the latest global miner to benefit from a rebound in metals prices on Friday, after posting a doubling in half-year profits and reinstating its dividend, sending its shares higher.

Anglo's results follow Brazil's Vale, which posted a more than fourfold increase in second-quarter profit on Thursday, and caps a 12-month bull-run for miners following a demand crash during the global downturn.

In response, its London shares outperformed rivals to rise 0.1 percent to 2,543 pence by 0812 GMT, compared with a 1.3 percent fall for BHP Billiton stock and a 0.9 percent drop for Rio Tinto.

"Anglo American's strong rebound in earnings, return to the dividend lists and disposals of $2.2 billion of assets all look good," said analyst Charles Kernot at Evolution Securities.

He increased Anglo's target price to 2705 pence from 2400 pence and reiterated a "buy" rating in a note.

While Anglo confirmed its Minas Rio in Brazil, billed as one of Anglo's most important growth projects, would not start producing in 2012 as planned, analysts said the market had expected the news.

"A number of key approvals remain outstanding and these are on the critical path of the project, therefore impacting the time and cost to complete," the company said.

The group, the world's fourth-biggest iron ore producer, has secured 23 out of 33 licences for the project, so would only be able to start the project at the earliest by 2013, Chief Executive Cynthia Carroll told a conference call.

Costs to build the mine would likely rise by about $750 million from the existing estimate of $3.8 billion, which had been already hiked earlier in the year.

Anglo concluded deals in 2007 and 2008 to pay a total of $6.65 billion for Minas Rio and 69 percent of Amapa, another Brazilian iron ore mine.

The firm was being approached "on a continuous basis" by possible partners for Minas Rio, she added. "We will consider a partnership at the right time if we think it's appropriate and desirable."

NO HURRY ON DIVESTMENTS

While higher metals prices had underpinned the first-half gains -- with copper up 75 percent and nickel up 80 percent on the year -- Anglo said the short-term outlook was uncertain, although it was bullish on demand further out.

Underlying earnings per share increased to $1.84 from 91 cents last year. This was higher than a consensus of $1.73, based on 12 analysts' estimates gathered by the company.

Anglo, listed in London and Johannesburg, announced a half-year dividend of 25 cents per share after suspending payouts last year to conserve cash during the global downturn that hit metals demand and prices.

"I am pleased to announce the resumption of dividend payments... reflecting the group's improved operating performance and financial position, as well as progress on non-core asset sales and a supportive medium term outlook," Carroll said in a statement.

Anglo has sold $2.2 billion of divestments, including the sale in May of its zinc business for $1.3 billion to India's Vedanta Resources.

The group is in no hurry to complete selling the rest of its non-core assets, including building materials group Tarmac, and would wait for good prices, Carroll said. (Editing by Mike Nesbit and Simon Jessop)