By: Esmarie Swanepoel
17th July 2012
PERTH (miningweekly.com) - Diversified giant Rio Tinto has reported production increases for its iron-ore, copper, bauxite and alumina and coking coal operations during the second quarter ended June.
“The second quarter was strong across most of the portfolio,” said CEO Tom Albanese on Tuesday.
He noted that the quarter under review was influenced by the global economic conditions, and market sentiment, which dropped significantly during the period.
“We are keeping a close eye on the pace of the US recovery, the continuing eurozone crisis and the impact of efforts to stimulate the Chinese economy on the market that we serve,” Albanese said.
“Our investment programme remains resilient to this market volatility, as our tier-one projects are robust under any probable macroeconomic scenario.”
Iron-ore production in the first half of the year reached 120-million tons, while shipments reached 115-million tons, both 4% higher than the first half of the previous financial year.
Global iron-ore production for the three months to June was in line with the second quarter of 2011 at 62-million tons.
During the quarter under review, Rio announced that it would some $2-billion over the next four years into the expansion if its iron-ore production capacity in the Pilbara region of Western Australia, taking capacity to 353-million tons a year by the first half of 2015. The miner also announced a further $1.7-billion of largely sustaining capital expenditure to extend the life of the Yandicoogina mine to 2021, and expand its nameplate capacity from 52-million tons a year to 56-million tons a year.
Meanwhile, copper production for the second quarter was 5% higher than the previous corresponding quarter, primarily driven by efficiencies and higher copper grades at the Escondida operation, in Chile.
Rio reported that milled production of copper increased by 50% at Escondida, while mined copper increased by 49%, compared with the second quarter of 2011, owing to higher copper grades and an increase in ore delivered to the concentrator.
At the Kennecott Utah copper project, Rio reported that production of both copper and gold concentrates were lower during the first half of the year, as mining progressed through lower grade areas of the openpit.
Higher copper ore grades were expected to return during the second half of 2012.
Initial production at the multi-billion dollar Oyu Tolgoi copper project was also set to start in the second half of 2012, with commercial production of copper concentrate expected in the first half of 2013.
Rio said that it expected to produce 580 000 t of mined and 300 000 t of refined copper for the full year.
Aluminium production during the three months under review was 12% lower than the second quarter of 2011, reflecting the lockout at the Alma operation, in Quebec, where two-third’s of the smelter’s capacity was curtailed throughout the quarter.
Bauxite production for the quarter was 9% higher, however, driven by increased third-party demand. Rio Tinto Alcan’s alumina production was also 8% higher than the previous corresponding quarter, driven by an improvement in the performance of Queensland Alumina, where floodings in early 2011 affected coal quality and impacted production.
Rio said that in 2012, the miner’s share of bauxite, alumina and aluminium production would be 30.5-million tons, seven-million tons and 2.3-million tons respectively.
Meanwhile, coking coal production was 13% higher in the June quarter, as a combination of wet weather events and dragline maintenance issues at the Hail Creek operation offset by increased production from the Kestrel operation.
Thermal coal production was consistent with the second quarter of 2011, and 15% higher than the first quarter of this year, owing primarily to increased production at the Claremont operation, which offset the negative impacts of wet weather events affecting a number of other Queensland mines.
For the full year, Rio was expecting to produce some 8.5-million tons of hard coking coal, 3.5-million tons of soft coking coal, and 19.5-million tons of thermal coal.
Edited by: Mariaan Webb
17th July 2012
PERTH (miningweekly.com) - Diversified giant Rio Tinto has reported production increases for its iron-ore, copper, bauxite and alumina and coking coal operations during the second quarter ended June.
“The second quarter was strong across most of the portfolio,” said CEO Tom Albanese on Tuesday.
He noted that the quarter under review was influenced by the global economic conditions, and market sentiment, which dropped significantly during the period.
“We are keeping a close eye on the pace of the US recovery, the continuing eurozone crisis and the impact of efforts to stimulate the Chinese economy on the market that we serve,” Albanese said.
“Our investment programme remains resilient to this market volatility, as our tier-one projects are robust under any probable macroeconomic scenario.”
Iron-ore production in the first half of the year reached 120-million tons, while shipments reached 115-million tons, both 4% higher than the first half of the previous financial year.
Global iron-ore production for the three months to June was in line with the second quarter of 2011 at 62-million tons.
During the quarter under review, Rio announced that it would some $2-billion over the next four years into the expansion if its iron-ore production capacity in the Pilbara region of Western Australia, taking capacity to 353-million tons a year by the first half of 2015. The miner also announced a further $1.7-billion of largely sustaining capital expenditure to extend the life of the Yandicoogina mine to 2021, and expand its nameplate capacity from 52-million tons a year to 56-million tons a year.
Meanwhile, copper production for the second quarter was 5% higher than the previous corresponding quarter, primarily driven by efficiencies and higher copper grades at the Escondida operation, in Chile.
Rio reported that milled production of copper increased by 50% at Escondida, while mined copper increased by 49%, compared with the second quarter of 2011, owing to higher copper grades and an increase in ore delivered to the concentrator.
At the Kennecott Utah copper project, Rio reported that production of both copper and gold concentrates were lower during the first half of the year, as mining progressed through lower grade areas of the openpit.
Higher copper ore grades were expected to return during the second half of 2012.
Initial production at the multi-billion dollar Oyu Tolgoi copper project was also set to start in the second half of 2012, with commercial production of copper concentrate expected in the first half of 2013.
Rio said that it expected to produce 580 000 t of mined and 300 000 t of refined copper for the full year.
Aluminium production during the three months under review was 12% lower than the second quarter of 2011, reflecting the lockout at the Alma operation, in Quebec, where two-third’s of the smelter’s capacity was curtailed throughout the quarter.
Bauxite production for the quarter was 9% higher, however, driven by increased third-party demand. Rio Tinto Alcan’s alumina production was also 8% higher than the previous corresponding quarter, driven by an improvement in the performance of Queensland Alumina, where floodings in early 2011 affected coal quality and impacted production.
Rio said that in 2012, the miner’s share of bauxite, alumina and aluminium production would be 30.5-million tons, seven-million tons and 2.3-million tons respectively.
Meanwhile, coking coal production was 13% higher in the June quarter, as a combination of wet weather events and dragline maintenance issues at the Hail Creek operation offset by increased production from the Kestrel operation.
Thermal coal production was consistent with the second quarter of 2011, and 15% higher than the first quarter of this year, owing primarily to increased production at the Claremont operation, which offset the negative impacts of wet weather events affecting a number of other Queensland mines.
For the full year, Rio was expecting to produce some 8.5-million tons of hard coking coal, 3.5-million tons of soft coking coal, and 19.5-million tons of thermal coal.
Edited by: Mariaan Webb
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