Thursday, October 14, 2010

Rio Tinto : Third quarter 2010 operations review

14 October 2010  

Chief executive Tom Albanese said: “We have delivered consistently strong operating performance in 2010 and the third quarter was no exception. We continue to run our operations at close to or above capacity rates, taking advantage of strong prices for our products. This quarter we achieved record production in iron ore, alumina and coking coal. Our investment in organic growth is gathering momentum. We approved more than $4 billion of capital projects during the third quarter, including investment towards the expansion of our Pilbara iron ore operations to 330 million tonnes per annum. This takes our total approvals this year to $5.5 billion and is consistent with our capex guidance of $13 billion over the 18 months to December 2011.”

  • Rio Tinto’s attributable iron ore production set a new quarterly record across its global operations, with Hamersley benefiting from the ramp up of new replacement tonnes at Brockman 4 and Western Turner Syncline. Attributable production during the first nine months was 10 per cent higher than the same period of 2009. 
  • The Pilbara system operated in excess of its nameplate capacity during the quarter and matched the record third quarter 2009 production of 56.8 million tonnes (100 per cent basis).
  • Mined copper and gold were down 19 per cent and 33 per cent on the third quarter of 2009 primarily due to lower grades at Grasberg. Refined copper and gold were up six per cent and 46 per cent on the third quarter of 2009 reflecting greater efficiencies at the Kennecott Utah Copper smelter.
  • Bauxite production increased 17 per cent on the third quarter of 2009 in line with higher demand. Alumina production was a quarterly record, up six per cent on the third quarter of 2009. Aluminium production was down two per cent.
  • Australian hard coking coal production was a record 2.4 million tonnes, up 17 per cent on the third quarter of 2009 reflecting increased investment at the Queensland operations. Australian thermal coal production was down 14 per cent on the same period, mainly due to wet weather in the Hunter Valley.
  • The continued recovery in diamonds and minerals production reflected improving market fundamentals compared with the difficult conditions of 2009.
  • Rio Tinto approved capital projects totalling $4.2 billion during the third quarter, including $1.3 billion for the Pilbara iron ore expansions, $0.8 billion for the completion of the Argyle Diamonds underground mine and $1.6 billion for the development of the Hope Downs 4 iron ore mine in the Pilbara.

All currency figures in this report are US dollars, and comments refer to Rio Tinto’s share of production, unless otherwise stated 


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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