15 April 2009
Chief executive Tom Albanese said: "First quarter production was in line with reduced market demand and iron ore was further affected by heavy rains. We have acted swiftly where necessary to reduce costs and conserve cash. Markets remain volatile and the timing of global economic recovery uncertain. We made good progress on divestments in the quarter with sales of $2.5 billion agreed. We remain committed to delivering the Chinalco transaction and our focus is on successfully navigating the regulatory processes before putting it to a shareholder vote.”
Rio Tinto’s first quarter global production of iron ore down 15 per cent on the first quarter of 2008 but in line with the previous quarter. Global iron ore guidance for 2009 remains around 200 million tonnes (100 per cent basis) with an expected recovery in Chinese steel demand in the second half of 2009.
Pilbara iron ore production of 36 million tonnes (29 million tonnes on an attributable basis), down 15 per cent on the first quarter of 2008 but stable compared with the prior quarter, was adversely impacted by severe weather conditions. Pilbara iron ore shipments of 39 million tonnes (100 per cent basis), down nine per cent on 2008.
Bauxite production down 19 per cent, alumina down two per cent and aluminium down six per cent, compared with the first quarter of 2008 following production cutbacks in response to the sharp fall in demand.
Mined copper production up nine per cent on the first quarter of 2008, following significant recovery in copper grades at Kennecott Utah Copper and Grasberg, partly offset by a further decline in copper grades and continued operational difficulties at Escondida.
Refined copper production up 33 per cent on the first quarter of 2008 resulting from improved performance and higher concentrate grades at Kennecott Utah Copper and higher throughput at Escondida.
Australian hard coking coal up 32 per cent on the first quarter of 2008. Australian thermal coal production was down two per cent on the same period.
Uranium production steady at 3.4 million pounds.
Minerals production contracted in line with market demand with borates and titanium dioxide feedstock down 27 per cent and nine per cent, respectively.
During the first quarter, Rio Tinto announced divestments totalling $2.5 billion, including $850 million for the undeveloped potash assets in Argentina and Canada, $750 million for the Corumbá iron ore operation in Brazil, $761 million for the Jacobs Ranch coal mine in the United States and $125 million for the Ningxia aluminium smelter in China. The Corumbá and Jacobs Ranch divestments remain subject to regulatory approval.
The Group’s financial position is consistent with the fourth quarter with no significant movement in net debt.
All currency figures in this report are US dollars, and comments refer to Rio Tinto’s share, unless otherwise stated.
The full release is in PDF format at the top of this email.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
Chief executive Tom Albanese said: "First quarter production was in line with reduced market demand and iron ore was further affected by heavy rains. We have acted swiftly where necessary to reduce costs and conserve cash. Markets remain volatile and the timing of global economic recovery uncertain. We made good progress on divestments in the quarter with sales of $2.5 billion agreed. We remain committed to delivering the Chinalco transaction and our focus is on successfully navigating the regulatory processes before putting it to a shareholder vote.”
Rio Tinto’s first quarter global production of iron ore down 15 per cent on the first quarter of 2008 but in line with the previous quarter. Global iron ore guidance for 2009 remains around 200 million tonnes (100 per cent basis) with an expected recovery in Chinese steel demand in the second half of 2009.
Pilbara iron ore production of 36 million tonnes (29 million tonnes on an attributable basis), down 15 per cent on the first quarter of 2008 but stable compared with the prior quarter, was adversely impacted by severe weather conditions. Pilbara iron ore shipments of 39 million tonnes (100 per cent basis), down nine per cent on 2008.
Bauxite production down 19 per cent, alumina down two per cent and aluminium down six per cent, compared with the first quarter of 2008 following production cutbacks in response to the sharp fall in demand.
Mined copper production up nine per cent on the first quarter of 2008, following significant recovery in copper grades at Kennecott Utah Copper and Grasberg, partly offset by a further decline in copper grades and continued operational difficulties at Escondida.
Refined copper production up 33 per cent on the first quarter of 2008 resulting from improved performance and higher concentrate grades at Kennecott Utah Copper and higher throughput at Escondida.
Australian hard coking coal up 32 per cent on the first quarter of 2008. Australian thermal coal production was down two per cent on the same period.
Uranium production steady at 3.4 million pounds.
Minerals production contracted in line with market demand with borates and titanium dioxide feedstock down 27 per cent and nine per cent, respectively.
During the first quarter, Rio Tinto announced divestments totalling $2.5 billion, including $850 million for the undeveloped potash assets in Argentina and Canada, $750 million for the Corumbá iron ore operation in Brazil, $761 million for the Jacobs Ranch coal mine in the United States and $125 million for the Ningxia aluminium smelter in China. The Corumbá and Jacobs Ranch divestments remain subject to regulatory approval.
The Group’s financial position is consistent with the fourth quarter with no significant movement in net debt.
All currency figures in this report are US dollars, and comments refer to Rio Tinto’s share, unless otherwise stated.
The full release is in PDF format at the top of this email.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
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