Rio reports nine per cent production growth in Bauxite in Q2 2016

Rio Tinto releases its second quarter production results on July 19 2016 reporting growth in all verticals of its aluminium business.

Rio reports nine per cent production growth in Bauxite in comparison to the first half of 2015. This was primarily due to the three per cent improved production rate in Weipa, up 23 per cent Gove and up 22 per cent in Sangaredi in Guinea. The collective performances from all these mines delivered 13 per cent higher production in second quarter than the same quarter of 2015. Such higher volume of bauxite production accounted for the third party sales of 13.9 million tonnes which registered a five per cent growth over the first half of 2015.

In November 2015, Rio Tinto approved US$1.9 billion Amrun (South of Embley) bauxite project. The project includes the construction of a bauxite mine, a processing plant and port facilities on the Cape York Peninsula in north Queensland. The project is developing at a faster pace in construction and engineering. The construction of the river terminals is advancing and 40 kilometre access road has been cleared. The project plans an initial output of 22.8 million tons per year. The project will extend mining activities on part of Rio Tinto’s existing mining lease between Weipa and Aurukun. The project expects to commence production and shipping in the first half of 2019.

Due to the increased production of bauxite, alumina production increased by six per cent compared to H1 2015. A strong second quarter from Yarwun with 18 per cent higher production than the same quarter in 2015 accounted for the major part of it.

The expected production share of Rio Tinto remains stable at 45 million tonnes of bauxite and 7.8 million tonnes of alumina.

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