Rio Tinto to increase production of iron ore, copper, bauxite and alumina

Diversified giant Rio Tinto has reported production increases for its iron-ore, copper, bauxite and alumina and coking coal operations during the second quarter ended June.

He noted that the quarter under review was influenced by the global economic conditions, and market sentiment, which dropped significantly during the period.

Iron-ore production in the first half of the year reached 120-million tons, while shipments reached 115-million tons, both 4% higher than the first half of the previous financial year.

Global iron-ore production for the three months to June was in line with the second quarter of 2011 at 62-million tons. During the quarter under review, Rio announced that it would some $2-billion over the next four years into the expansion if its iron-ore production capacity in the Pilbara region of Western Australia, taking capacity to 353-million tons a year by the first half of 2015. The miner also announced a further $1.7-billion of largely sustaining capital expenditure to extend the life of the Yandicoogina mine to 2021, and expand its nameplate capacity from 52-million tons a year to 56-million tons a year.

Meanwhile, copper production for the second quarter was 5% higher than the previous corresponding quarter, primarily driven by efficiencies and higher copper grades at the Escondida operation, in Chile.

Aluminium production during the three months under review was 12% lower than the second quarter of 2011, reflecting the lockout at the Alma operation, in Quebec, where two-thirds of the smelter’s capacity was curtailed throughout the quarter.

Bauxite production for the quarter was 9% higher, however, driven by increased third-party demand. Rio Tinto Alcan’s alumina production was also 8% higher than the previous corresponding quarter, driven by an improvement in the performance of Queensland Alumina, where floodings in early 2011 affected coal quality and impacted production. Rio said that in 2012, the miner’s share of bauxite, alumina and aluminium production would be 30.5-million tons, seven-million tons and 2.3-million tons respectively.