Rio Tinto's Q4 2016 aluminium production grows +7% YoY; yearly metal production reaches 3.6 MT

Leading mining and minerals development company Rio Tinto released its fourth quarter production results today. Aluminium production logged a ten per cent year-over-year growth, with record per annum metal production at ten of its smelters. The recently modernised and expanded Kitimat smelter, which has been producing at its nameplate capacity since April 2016, yielded significant production results in the period under review.

The quarterly production results at seven of its smelters accounted for a seven per cent rise in production vis-à-vis the production reached in the corresponding period previous year.

Rio produced 925,000 tonnes of aluminium in Q4 2016, which is more than seven per cent higher than the production reached in the same period of previous year. The total aluminium production in the year 2016 was estimated at 3.64 million tonnes, higher by +10 per cent from that recorded in 2015.

Rio reached an agreement to sell assets at its Lochaber aluminium smelter in Scotland to SIMEC, in November last year, for a total consideration of US$410 million. The sale, finalised on December 16, 2016, will be closed with the receipt of proceeds by February 28, 2017.

{googleAdsense}

Rio Tinto, in its official release, said it expects its share of aluminium production to reach 3.5 to 3.7 million tonnes in 2017, supported by rising global demand for the metal across various end user industries.

Commenting on the production results, Rio chief executive J-S Jacques said “We have delivered a strong operational performance in 2016, underpinned by our drive for efficiency and maximising cash flow. Our disciplined approach remains in place in 2017, with the continued focus on productivity, cost reduction and commercial excellence. This will ensure that we continue to deliver value for our shareholders.”