Rio Tinto first quarter 2007 operations review

Posted by Daniel Gleeson on 19th April 2007

Rio Tinto’s production results were mixed, but led by a massive increase in iron ore output. Energy minerals showed mixed fortunes, while refined copper was up very significantly. Alumina production efficiency was greatly improved. Diavik diamond mine showed a massive gain.

  • Rio’s share of iron ore production increased by 12% compared with the first quarter of 2006, reflecting continued production growth from the Group’s $5 billion iron expansion programme in Western Australia. There was some impact on production in the first quarter from a succession of cyclones in the Pilbara region.
  • Mined copper production decreased by 3% compared with the first quarter of 2006, mainly due to lower grades and recoveries at Kennecott Utah Copper.
  • Refined copper production increased by 19% compared with the first quarter of 2006 mostly due to higher production at the Escondida leach plant. The Kennecott Utah Copper smelter operated at targeted levels during the quarter following the scheduled maintenance shutdown in the fourth quarter of 2006.
  • The Yarwun alumina refinery increased production by 15% compared with the first quarter of 2006 although Rio Tinto’s total share of alumina production decreased by 15% quarter on quarter following the sale of its interest in Eurallumina in the fourth quarter of 2006. Aluminium metal production rose by 2% compared with the first quarter of 2006.
  • Hard coking coal production increased by 28% compared with the first quarter of 2006, in line with an improvement in market conditions. But Australian thermal coal production declined by 8% compared with the first quarter of 2006 as a result of shipping congestion at the ports.
  • Uranium production increased by 3% at Rössing compared with the same quarter of 2006 but overall the Group’s share of production decreased by 16% following high rainfall which impeded operations at the Ranger mine and plant.
  • Diamond production at Diavik increased by 45% compared with the first quarter of 2006 from access to higher grade ore, whilst Group production was 20% lower attributable to low feed grade at Argyle.