Mining giant Rio Tinto Plc (RTNTF.PK,RIO: Quote,RIO.L,RTPPF.PK) Tuesday reported a slight increase in iron ore production in the fourth quarter, while production of mined copper, Bauxite and alumina grew at double digit rates. Looking ahead, the company said the business continues to perform well, even though the markets remain volatile. Rio Tinto is also taking actions to roll back unsustainable cost increases to further enhances its resilience and competitive edge as it enters 2013.
For the fourth quarter, global iron ore production increased 2 percent from last year to 66 million tonnes. Of these, Rio Tinto share was 51.97 million tonnes, 1 percent higher. Iron ore accounts for roughly two-thirds of the profit of Rio Tinto. Pilbara mine’s fourth-quarter sales were 63 million tonnes, two percent higher than that of 2011.
The company’s unit Iron Ore Company of Canada’s saleable iron ore production increased 13 percent due to operating improvements and increased capacity from the first phase of the Concentrate Expansion Projects.
In the quarter, total mined copper production climbed 20 percent, while refined copper production grew 7 percent.
Bauxite and alumina production were 13 percent and 11 percent higher, respectively, than 2011. Rio Tinto Alcan’s alumina production climbed 23 percent as greater alumina refining capacity at Yarwun came online from July 2012.
Meanwhile, fourth-quarter production of aluminium fell 6 percent, and Rio Tinto Alcan’s aluminium production dropped 2 percent largely due to the impact of the Alma lockout, where ramp-up in production continues following the agreement reached in July 2012.
In the quarter, thermal coal production climbed 40 percent, and production of coal – semi-soft coking grew 29 percent. Meanwhile, hard coking coal’s production went down 27 percent mainly due to the impact of dragline maintenance at Hail Creek Mine and a major preparation plant shutdown at Kestrel Mine as part of its mine expansion project. Production of mined gold and Molybdenum also declined 53 percent each.
Rio Tinto said it is actively reducing controllable costs in its coal business in response to lower coal prices, a high Australian dollar and high input costs impacting the coal industry in Australia.
In the year 2012, global iron ore production increased 4 percent to 253 million tonnes. Rio Tinto share also grew 4 percent. Global iron ore shipments were 247 million tonnes, despite severe weather disruptions and a significant maintenance shut-down during the year.
Rio Tinto chief executive Tom Albanese said, “This was another year of strong operational performance across the Group. We achieved record annual iron ore production and shipments as our expansion programme continues on schedule, delivering industry leading returns for our shareholders.”
In Australia, Rio Tinto shares closed today’s trading at A$65.90, down A$0.09 or 0.14 percent.
On the NYSE, Rio Tinto shares closed Monday’s trading at $55.81, up $0.16 or 0.29 percent.
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by RTT Staff Writer
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