Rio Tinto achieves record aluminium output in 2016, production target for 2017 set at 3.7 MT

<p>The leading global mining and metals group Rio Tinto reported strong operational performance in Aluminium with production soaring high across all three verticals (bauxite, alumina, and aluminium) in comparison to that recorded in 2015. Annual production record for primary aluminium was set in all smelters, including the recently reopened Kitimat aluminium smelter in British Columbia. Rio Tinto produced a total volume of 3,646,000 tonnes (3.64 million tonnes) of aluminium in 2016, up 10 per cent from the previous year. <br /><br />The group's total underlying earnings was estimated at US$947 million, down 15 per cent from 2015. Rio Tinto attributed the decline primarily to the commodity market downturn and lower prices, which together weighed on earnings by US$507 million. <br /><br />However, through a better strategized cash outflow reduction, productivity improvements and substantial volume increases, the group was able to partly offset this impact and generated an EBITDA margin from integrated operations of 28 per cent against EBITDA margin of 31 per cent in 2015. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Rio.jpg" alt="News" width="517" height="226" /><br />Rio Tinto generated strong operating cash flow estimated at US$8.5 billion and underlying earnings of US$5.1 billion for the full year ended 31 December 2016. Further, it was able to strengthen the balance sheet with net debt reduced to US$9.6 billion. <br /><br />The consolidated sales revenues for the past year, however, was lower by US$1.0 billion at US$33.8 billion, which the company attributed to the lower market premia for aluminium and lower average commodity prices. <br /><br />Aluminium prices started 2016 below US$1,500 per tonne and ended the year 20 per cent higher. Margins remained under pressure, however, as energy and alumina costs offset the price increase. <br /><br />{googleAdsense}<br /><br />Commenting on the results Rio Tinto chief executive J-S Jacques said: &ldquo;...We strengthened the portfolio and advanced our high-value growth projects as we look to the future... We enter 2017 in good shape. Our team will deliver $5 billion of extra free cash flow over the next five years from our productivity programme. Our value over volume approach, coupled with a robust balance sheet and world-class assets, places us in a strong position to deliver superior shareholder returns through the cycle.&rdquo; <br /><br />The company expects to finish the year having produced 3.5 to 3.7 million metric tonnes of primary aluminium.</p>